Document:

Shenzhen Development Bank Loan dated June 30, 2006

 EXHIBIT 10.7 
 Shenzhen Development Bank Co., Ltd. 
 Contract for Comprehensive Line of Credit 
 Shenzhen Development Bank Co., Ltd. 

 Contract for Comprehensive Line of Credit 
 Contract #: Shen Fa Jin Xin Zong Zi No. 00060630001-2 
 Party A: Xinhua
Subbranch, Tianjin Branch, Shenzhen Development Bank Co., Ltd. 
 Add.: No.166, Xinhua Road, Heping District, Tianjin 
 Tel: 23535000                Fax: 
 Person in charge: Jia
Chun                            Position: President 
 Party B: Pemstar (Tianjin) Enterprise Co., Ltd. 
 Add.: Yat-sen Scientific
Industrial Park, Tianjin, China 
 Tel: 82172083                 Fax: 82110486

 Legal Representative*: Roy A.
Bauer                            Position*: 
 (*leave blank if Party B is an individual) 
 Whereas 
 Party B has applied to Party A for and Party A has agreed to grant Party B a Comprehensive Line of Credit 
 Now therefore the two parties now enter into this Contract through negotiation in accordance with relevant laws and regulation and both parties are willing to observe all provisions herein. 
 Article I Content of the Comprehensive Credit 
 1. Amount of
Comprehensive Credit: (converted into) RMB            (in words) RMB TWENTY-FIVE MILLION ONLY. 
 2. Term of Comprehensive Line of Credit shall be 12 months from              to              during which the
Comprehensive Line of Credit may be used cyclically for multiple times and the method of use, the amount and time limit shall be agreed between Party A and Party B each time; however, the balance of the different use of the Line shall not exceed the
amount of the Comprehensive Credit. 
 The starting time of each business under the Line shall be within the term of the Line and whether the closing time
shall be within the term of the Line shall be stipulated in the contract of the specific business. 
 Article II Manners of the Extension of
Comprehensive Credit 
 The manners of the extension of comprehensive credit include without limitation: 
 Loan (including individual consumptive loan, individual operational loan), letter of credit, import documentary credit, packaged loan, export documentary
credit, discount, acceptance, letter of guarantee, guarantee, etc. 
 The specific manner of extension of credit shall be decided in the
specific business contracts signed between the parties. 
 Article III The Use of the Comprehensive Line of Credit 
 When Party B intends to use the Comprehensive Line of Credit, he shall apply to Party A and the parties shall signed corresponding business contract after Party A has
examined and approved. 
 Article IV Manner of Guarantee for the Comprehensive Line of Credit (put “ü” in the box chosen) 
  ̈ credit, not requiring Party B to provide guarantee 
 þ the guarantee for the
Comprehensive Line of Credit shall adopt manner 4 of the following: 
 1. 

 2. 
 3. 
 4. Provide factoring service for Party B’s receivables from Motorola (China) Co., Ltd. 
 Article V Commitment Fee for the Comprehensive Line of Credit 
 Party B shall pay Party A a
Comprehensive Line of Credit commitment fee of         ‰ monthly of the part of the Comprehensive Line of Credit that Party B has not applied for use. 
 Article VI Party A Representations and Warranties 
 Party A is legally qualified to sign and perform this Contract and the signing and performance of this Contract has obtained full authorization from Party A’s board of directors and any other competent authorities (if authorization is
required). 
 Party B warrants that the application documents he submit to Party A are authentic, legal and valid, containing no major error
and without omission of any major fact. 
 Party B warrants to give Party A notice of any change in company name, legal representative
(principal), residence, scope of business, registered capital, etc. taking place during the term hereof within 10 days after such changes take place; Party B shall immediately notify Party A of any such changes takes place at the time when Party B
is applying for a specific business under the Line. 
 Party B has fully acquainted himself with and understood the content of all the
articles hereof and the signing hereof is the true indication of intention of Party B. 
 Article VII Special Provisions on the Credit Extension to
Group Customers and Associated Transactions 
 An enterprise or undertaking as legal person having any of the following attributes:

 1. directly or indirectly control any other enterprise or undertaking as legal person or controlled by any other enterprise or undertaking as legal person
in terms of stocks rights or operation; 
 2. jointly controlled by a third enterprise or undertaking as legal person 
 3. directly or indirectly and jointly controlled by major individual investor, key managerial person or family members of close relation therewith (including lineal
relatives within three generations and collateral relatives within two generations); 
 4. any other relation which may result in transfer of assets and
profit not on the basis of publicly accepted prices shall be regarded as a group customer in the management of credit management. 
 Where
any associated transaction more than 10% of the net assets takes place with a group customer of which Party B is a member, Party B shall provide Party A a written report stating the associated relation between the parties of the transaction and
item, nature, amount, proportion of pricing policy of the transaction (including transaction without amount or with only symbolic amount) within 10 days after it takes place. 
 Article VIII 
 This Contract has been entered into under and shall be governed by the laws of the People’s Republic of China. Any disputes arising from or in connection with the performance hereof shall be settled through consultation or mediation;
if no settlement can be reached through consultation or mediation, the disputes shall be settled in manner 1 of the following: 
 1. Institute legal
proceedings in the people’s court of the place where Party A is located. 

 Article IX Effectiveness of the Contract (put “ü” in the
box chosen) 
 þ As this Line of Credit is guaranteed, this Contract shall come into effect only when the following
conditions are simultaneously met: 
 3. This Contract has been signed and affixed seals by both parties; 
 4. The related guarantee contract (containing “guarantee money” clause and “warranty of guarantee” clause) has been signed and the necessary
registration formalities have been completed. 
  

	
	 Article X Other Matters Agreed between the Parties:
                            

	
	  
	  
	  
	  
	  
	  

 Article XI 
 This Contract is made in triplicate having equal legal effect, of which Party A holds two and Party B holds one. 
 Seal of Party A: Xinhua Subbranch, Tianjin Branch, Shenzhen Development Bank Co., Ltd. 
 Signature of person in charge or proxy: 
 Seal of Party B: Pemstar (Tianjin) Enterprise Co., Ltd. 
 Signature of legal representative or proxy: 

 LOAN AGREEMENT NUMBER 
 ShenFaJinXinBaoZiDi200606300001-2 
 Sub-document 5(1) 
 FACTORING APPROVAL DOCUMENT 
 Agreement number: 20060630001-2 
 To: Pemstar Tianjin Enterprise Co,.Ltd 
 After audit, we agree to accept the above mentioned entity’s Accounts Receivable pledge. The below table is the agreed listing of the Accounts Receivable (AR).

  

																					
	No.	 	Customer	 	Contract
Amount	 	Paid	 	Advance	 	Discount	 	AR Amount	 	Method
of
payment	 	Amount
paid for
AR
pledge	 	Contract
expiry	 	Remark
		 	MOTOROLA	 		 		 		 		 		 		 		 		 	
											
		 	TRADING	 		 		 		 		 		 		 		 		 	
											
		 	CENTER	 		 		 		 		 		 		 		 		 	
											
	Total	 		 		 		 		 		 	$3,933,744.30	 		 		 		 	

  

	 	•	 	Our bank will provide your company RMB 25,000,000.00, the commencement date as 30-Jun- 2006 and expiry date as 12-Aug- 2006. 

  

	 	•	 	Our bank will reserve all rights on liability. 

  

	 	•	 	Bank charges will be charged at RMB62937.57 

  

	 	•	 	For all remittance, your company has to go to Tianjin branch XinHua Sub-branch to submit the following factoring approval document. 

 Approving bank (stamp) 
 Legal Representative: 
 Date: 
  

 Selling party: Our company has received agreement number: 20060630001-2 (Agreement number) (Factoring Agreement) has agreed to the above statement and guarantee
20060508001 (China Banking Agreement) to fulfill the relevant responsibilities. 
 Selling party (stamp) 
 Legal Representative: 
 Date:Bank of Communications Loan dated July 3, 2006

 Exhibit 10.1 
 A101A06048 
 LOAN CONTRACT 
 Bank of Communications 

 No.: A101A06048 
 Loan Contract 
 Important Hint 
 The Borrower is requested to read the whole text of this Contract carefully, especially articles marked with DD. In case of any doubt, ask the Loaner for explanation. 
 Borrower: Pemstar (TianJin) Enterprise Co, Ltd 
 Legal Representative (Principal):
                                        
             
 Registered Address:
                                        
                                        
   
 Correspondence Address:
                                        
                                 
 Loaner: TianJin Branch (Subbranch), Bank of Communications 
 Legal Representative (Principal):
                                        
             
 Registered Address:
                                        
                                        

 Correspondence Address:
                                        
                                 
 Whereas Borrower has applied for a loan from Loaner, the two parties hereby enter this Contract through consultation in order to clarify respective
rights and obligations. 
 Article I. The Loan 
 1.1 Currency: RMB. 
 1.2 Amount (in words): 40,000,000. 
 1.3 The Loan under this Contract shall only be used for buy materials. 
 1.4 Term: From Jul-03-2006 to Jan-02-2007. 
 Article II. Interest Rate and Calculation and Payment of Interest

 2.1 Interest rate: 4.86 % (x year  ̈ month). Daily interest rate = monthly interest rate/30, monthly interest rate = annual interest rate/12. 
 2.2 Calculation of Interest 
 2.2.1 Normal
interest = interest rate stipulated herein × amount of loan × number of days of holding. The number of days of holding is calculated from the day when the Loan is made to the day of expiration of the Loan. 
 2.2.2 The penalty interest on any part of the Loan overdue or loan diverted to any use other than that specified herein shall be calculation on the basis
of actual number of days and amount overdue or diverted. Where the loan is in RMB, the penalty interest rate on overdue loan shall be 50% in excess of the interest rate stipulated herein and the penalty interest rate on any part of the Loan diverted
to other use shall be 100% in excess of the interest rate stipulated herein. 
 2.3 The interest of the Loan hereunder shall be settled in
manner (1) of the following. The interest shall be paid together with the principal upon expiration of the term of the Loan. The interest payment day shall be the interest settlement day: 
 (1) The 20th day of
the last month of each quarter; 
 (2) The 20th day of each month. 
 Article III. Extending and Repayment of the Loan 
 3.1 The Borrower shall handle related procedures at least 3 days in advance of the day when he intends to draw loan and in accordance with the following
loan schedule: 
  

									
	 Loan Date
                        
	 	 	 	 Amount of Loan

		 	  
	 		 	  
	 	(in words)
		 	  
	 		 	  
	 	(in words)
		 	  
	 		 	  
	 	(in words)
		 	  
	 		 	  
	 	(in words)

 DD 3.2 The Loaner shall have the right to refuse to extend loan before all the following conditions are satisfied: 
 (1) The Borrower has obtained all statutory procedures including governmental permits, approvals, registrations, etc. and all other procedures as the
Loaner requires and the said permits, approvals, registrations, etc. are continuously valid; 
 (2) The Guarantee Contract hereunder (if any)
has come into effect and is continuously valid; 
 (3) No material adverse changes have taken place in the operational and financial status
of the Borrower; 
 (4) The Borrower has not committed any breach to this Contract. 
 3.3 The actual dates of loan and amounts of loan shall be as is recorded on the Loan Note. 
 3.4 The Borrower shall repay the Loan in accordance with the maturity date stipulated in Article 1.4 and the following schedule; where the maturity date
recorded on the Loan Note is not the same as is stipulated herein, the former shall prevail. 
  

							
	 Maturity Date
	 	 	 	 Amount of Repayment
	  	 
	  
	 		 	  
	  	(in words)
	  
	 		 	  
	  	(in words)
	  
	 		 	  
	  	(in words)
	  
	 		 	  
	  	(in words)

 DD 3.5 The Borrower shall not repay any part of the Loan ahead of schedule without the Loaner’s written consent. 
 DD Article IV. The Borrower’s Representations and Warranties 
 4.1 The Borrower is an independent civil subject duly established and legally existing, having all necessary rights and capacities to perform his
obligations hereunder and undertake civil liabilities in his own name. 
 4.2 The signing and performance hereof are the true indication of
the Borrower’s intention and have obtained all necessary consents, approvals and authorizations, having no legal defects. 
 4.3 All the
documents, statements, reports, data and information submitted to the Loaner by the Borrower in the course of the signing and performance hereof are true, accurate, complete and valid without concealing from the Loaner any information that may
affect the financial status and the ability to repay of the Borrower. 
 Article V The Loaner’s Rights and Obligations 
 5.1 The Loaner shall have the right to recover the principal and interest of the Loan (including compound interest, overdue and diversion penalty
interest, if any) and collect charges receivable in accordance with the provisions hereof and exercise other rights provided by law or stipulated herein. 
 5.2 The Loaner shall keep secret of the financial and operational data and other confidential information provided by the Borrower except otherwise provided by law or stipulated herein. 
 Article VI. The Borrower’s Obligations 
 6.1 The Borrower shall pay the interest on the Loan hereunder in accordance with the time, amount and kind of currency stipulated herein. 
 6.2 The Borrower shall not divert any amount of the Loan hereunder to any other use. 
 DD 6.3 The Borrower shall bear the expenditure and costs hereunder including without
limitation the notarization fee, verification fee, evaluation fee and registration fee. 
 DD The Borrower shall observe operational rules and usual practices of the Loaner related
to the Loan business, including without limitation the requirement to coordinate with the Loaner in the supervision 

 
and inspection on the use of the Loan and the operational situations of the Borrower, to timely provide all financial statements and other data and
information requested by the Loaner and to guarantee that all such documents, data and information are true, complete and accurate. 
 DD 6.5 In case any of the following events
shall happen to the Borrower, he shall give at least 30 days’ prior notice to the Loaner and shall not take any action before clearing up the Loan and interest hereunder or providing a repayment plan agreed by the Loaner: 
 (1) Sell, donate, lease, lend, transfer, mortgage, pledge of otherwise dispose of his important assets, the whole or major part of his assets; 

(2) Any major changes has happened or may happen in the operational system or property right organizational form, including without limitation
undertaking a contract, lease, pooling, transformation of corporate system, transformation of cooperative shares system, sales, merger (annexation), joint venture (cooperation), schism, affiliation, transfer of property right and decrease of
capital, etc. 
 DD 6.6 The Borrower shall notify the Loaner in writing within 7 days in case any of the following events has happened or may happen: 
 (1) Amendment to the Articles of Association, change of industrial and commercial registration items including enterprise name, legal representative
(Principal), residence, correspondence address or business scope, etc. and making decisions having substantial influence the financial and personnel affairs. 
 (2) The Borrower or the Guarantor has applied for bankruptcy or may be applied for bankruptcy by creditor; 
 (3) Involved in major lawsuit or arbitration or any mandatory measure such as attachment is taken on important assets or the guaranty hereunder; 
 (4) Providing of guarantee to a third party and hence producing major adverse influence on the Borrower’s financial status or ability to perform his obligations hereunder; 
 (5) Signing of any contract that have material influence on his operational and financial status; 
 (6) The Borrower or the Guarantor has stopped operation, withdrawn from business, dissolved, stopped operation for rectification or is cancelled or his
business license is revoked; 
 (7) The Borrower, his legal representative (principal) or major managerial personnel is involved in unlawful
activities; 
 (8) Serious difficulties arise in the operation, the financial status is deteriorated or any other event that have adverse
influence on the financial status or solvency of the Borrower has happened. 
 DD 6.7 In case any change adverse to the creditor’s right of the Loaner has taken
place with the Guaranty hereunder, the Borrower shall timely provide other guaranty approved by the Loaner in accordance with the Loaner’s requirement. 
 For the purpose of this article, “change” shall include without limitation the Guarantor has stopped operation, withdrawn from business, dissolved, stopped operation for rectification or is cancelled or his
business license is revoked or has applied or is applied for bankruptcy; any material change has taken place in the operational or financial status of the Guarantor; the Guarantor is involved in major lawsuit or arbitration; the decrease or possible
decrease in the value of the Guaranty or any mandatory measure such as attachment has been taken on the Guaranty; the Guarantor has committed any breach under the Guarantee Contract; any dispute has arisen between the Guarantor and the Borrower; the
Guarantor has demanded to cancel the Guarantee Contract; the Guarantee Contract fails to come into effect or has been revoked; the Guaranty is false or invalid; or any other event that may influence the safety of the creditor’s right.

 Article VII. Other Matters Agreed upon between the Parties 
  

	
	  

	  

	  

 DD Article VIII. Premature Expiration of the Term of Loan

 The Loaner shall be entitled to stop to extend the part of the Loan not yet used by the Borrower, to unilaterally declare the
premature expiration of the term of the principal part of or the entire Loan that has been extended hereunder and to require the Borrower to immediately repay all mature principals of the Loan and clear the interest thereon: 
 (1) Any part of the representations and warranties under Article IV is false; 
 (2) The Borrower has breached any stipulations herein; 
 (3) Any of the events listed in Article 6.6 has actually happened which according to the Loaner’s judgment will damage the safety of his creditor’s rights; 
 (4) The Borrower has committed any breach in performing any other contracts between him and the Loaner such delay of the performance of contract and has
failed to correct such breaches after the Loaner’s press for correction. 
 DD Article IX.
Breach 
 9.1 In case the Borrower fails to repay principal or pay the interest in full according to schedule, or fails to use the
Loan in accordance with the purpose stipulated herein, the Loaner shall have the right to calculate and collect the interest at the penalty interest rate on overdue loan or on diverted loan and collect compound interest on overdue interest.

 9.2 In case the Borrower fails to repay principal or pay the interest in full according to schedule, he shall bear the cost arising from
the activities for the realization of creditor’s right including without limitation the cost for press for payment, legal cost (or arbitration cost), cost of preservation, announcement fee, enforcement fee, lawyer’s fee and travel cost.

 9.3 In case of the Borrower’s evasion from the Loaner’s supervision, arrears in the payment of the principal and interest of the
Loan, evasion of debts and similar, the Loaner shall have the right to inform related parties and announce such conducts on news media. 
 DD Article X
Stipulations on Payment by Deduction  
 10.1 In case the Borrower has matured principal, interest, penalty interest, compound
interest or any other payables, it shall authorize the Loaner to deduct such amount from any of the Borrower’s account in the Bank of Communications for payment. 
 10.2 After payment by deduction, the Loaner shall notify the Borrower of the number of the account, number of the loan contract, number of the Loan Note, the deducted amount and amount of the balance of debt.

 10.3 In case the amount from the deduction does not cover all the debts of the Borrower, such amount shall be first used to pay the
matured unpaid costs, the balance remained thereafter shall be first used to pay the matured unpaid interest or penalty interest and compound interest before paying for the matured unpaid principal where the principal and interest are less than 90
days past due but shall be first used to pay the matured unpaid principal before paying matured unpaid interest or penalty interest and compound interest where the principal or interest is more than 90 days past due. 
 10.4 Where the amount from the payment by deduction is not in the same currency as the debt to be paid, conversion shall be made at the exchange rate
published by the Bank of Communications on the date of the payment by deduction. 

 Article XI. Settlement of Disputes 
 All disputes arising hereunder shall be settlement in manner (1) of the following. During the term of a dispute, the parties hereto shall
continue to perform articles not involved in the dispute. 
 (1) All disputes arising hereunder shall be submitted to the court having
jurisdiction over the place where the Loaner is located. 
 (2) All disputes shall be submitted to the
             Arbitration Committee for arbitration in accordance with the rules of arbitration current at the time of the application for arbitration. The arbitration award shall be
final and binding on all parties hereto. 
 Article XII. Other Clauses 
 12.1 The Loan Note hereunder and related documents and materials confirmed by both parties shall be indivisible integral part hereof. 
 12.2 This Contract shall come into effect immediately it is signed (or affixed personal seals) by the legal representatives (Principals) or authorized
proxies of both parties and affixed official seals. 
 12.3 This Contract shall be executed in triplicate of which the two parties hereto and
the Warrantor shall respectively hold one. (No text hereafter) 
 The Borrower hereby acknowledges that he has read all the above articles, that the Loaner
has given corresponding explanations at Borrower’s request and that the Borrower has no objection to all the content hereof. 
  

			
	The Borrower (official seal)	  	The Loaner (official seal)
		
	 Legal Representative (Principal) or authorized proxy
 (signature or seal)
	  	 Legal Representative (Principal) or authorized proxy
 (signature or seal)

		
	Date:	  	Date:

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