Document:

Consulting Agreement dated April 12, 2004

  
 EXHIBIT 10.5

  
 ADVISOR CONSULTING AGREEMENT 
  
 This Advisor Consulting Agreement (this “Agreement”) is
effective as of April 12, 2004 (the “Effective Date”), by and between Multi-Fineline Electronix, Inc. (the “Company”) and David Hsu, M.D. (“Consultant”). 
  
 RECITALS 
  
 A. The Company is engaged in the business of designing and manufacturing flexible printed circuits and assemblies (the
“Business”). 
  
 B. The Company desires to retain
Consultant to serve, and Consultant desires to serve, as a consultant to the Company to assist the Company with the development and operation of the Business. 
  

NOW, THEREFORE, in consideration of their respective promises and covenants contained herein, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
  
 1.
Retention as Consultant. Subject to each of the terms, conditions and provisions of this Agreement, the Company hereby retains Consultant to serve, and Consultant hereby agrees to serve, as a consultant to the Company. In addition, Consultant
hereby agrees to serve as “Chairman Emeritus” of the Company’s Board of Directors. In his capacity as Consultant, Consultant shall provide advisory and related services to the Company as reasonably requested by the Chief Executive
Officer of the Company, subject to Consultant’s prior commitments and provided adequate notice has been given, but in no event shall Consultant be obligated to devote more than forty (40) hours per month in performing services to
the Company under this Agreement (the “Consulting Services”). Such Consulting Services shall include financial planning, marketing and strategic advice. In his capacity as Chairman Emeritus, Consultant shall attend meetings of the
Board of Directors in a non-voting capacity. 
  
 2.
Compensation. In consideration for the Consulting Services to be rendered pursuant to this Agreement, the Company shall pay Consultant Nine Thousand Dollars ($9,000.00) per month. 
  
 3. Relationship of the Parties. Except as may be expressly provided
elsewhere in this Agreement, Consultant shall act solely as an independent contractor and not as an employee of the Company. Consultant shall have authority only to act as a consultant and advisor to the Company and, in his capacity as such,
Consultant shall have no authority to enter into any agreement or to make any representation, commitment or warranty binding upon the Company or to obtain or incur any right, obligation or liability on behalf of the Company. Consultant agrees to
defend, indemnify and hold the Company harmless from any and all claims, damages, liability, attorneys’ fees and expenses arising from any action taken by Consultant in contravention of this Section 3. 

 4. Inventions. To the extent that Consultant is not precluded from doing so by a pre-existing
employment or consulting agreement or otherwise, and if, during any period of the term of this Agreement as a result of Consultant’s interaction with the Company, Consultant conceives, makes or develops any inventions relating in any way to the
Company’s business or that of its subsidiaries or affiliates, Consultant will: (i) give notice thereof to the Company; (ii) assign to the Company all of Consultant’s rights therein; and (iii) execute and deliver any necessary documents and
otherwise reasonably cooperate with the Company in the securing of patents or other intellectual property protections on such inventions. Consultant’s obligations under this Section 4 shall continue beyond the termination of this
Agreement, and the Company shall compensate Consultant at a reasonable rate commensurate with rates paid for comparable services for time spent furthering the intent of this Section 4 after the termination of this Agreement. 
  
 5. Confidentiality. Consultant recognizes that the Company and its
subsidiaries and affiliated corporations, and its customers, corporate partners or others (herein collectively referred to as “Related Parties”), own certain confidential information, including, but not limited to, secret or confidential
data, proprietary information, trade secrets, technology, formulae, processes, procedures, scientific studies, regulatory submissions, business plans, information and the like, whether all of the same be in writing or not (all of which is referred
to as “Confidential Information”). Consultant acknowledges that the Company has disclosed or may disclose to Consultant portions of Confidential Information of the Company or Related Parties, and agrees to maintain the confidential
status of such Confidential Information. Consultant further agrees not to use such Confidential Information except in pursuit of Consultant’s duties hereunder or to disclose the same to persons not authorized in writing by the Company to
receive such Confidential Information. Consultant will not make, and will take all reasonable steps necessary to prevent unauthorized parties from making, any copies, abstracts or summaries of any of the Confidential Information except in pursuit of
Consultant’s duties hereunder and for the sole use and account of the Company. 
  
 6. Trade Secrets. During the term of this Agreement, Consultant will have access to and become acquainted with various trade secrets (which may consist, without limitation, of manuals, methods, formulas,
processes, techniques, lists or other identification of customers or suppliers and compilations of information and records (the “Trade Secrets”)) which are owned by the Company. Consultant shall not, except with prior written
authorization of the Company, disclose any of the Trade Secrets, directly or indirectly, or use them in any way, either during the term of this Agreement or at any time thereafter, except as required in the performance of services hereunder;
provided, however, that Consultant shall not be obligated to keep in confidence or incur any liability for disclosure of any information received which (i) was within the public domain without any breach of this Agreement; (ii) is
released into the public domain without any breach of this Agreement; or (iii) is required to be disclosed by a court or governmental agency. All files, records, documents, manuals, brochures and similar items relating to the Company’s
business, whether prepared by Consultant or otherwise and coming into Consultant’s possession in the course and scope of this Agreement, shall remain the exclusive property of the Company. 
  
 7. Conflict of Interest. Consultant agrees that, during the term of
this Agreement, Consultant will not, without the Company’s prior written consent, engage in any employment or 

 
activity (whether as a consultant, advisor or otherwise) in any business competitive with the Company. 
  
 8. Termination. This Agreement shall terminate two (2) years from the
date of the completion of the Company’s initial public offering of its common stock; provided, however, that this Agreement may be terminated at an earlier date (i) by either party in the event that the other party materially breaches this
Agreement and fails to cure such material breach within thirty (30) days or (ii) upon the parties’ mutual written agreement. 
  
 9. Notices and Communications. All communications relating to the activities necessary to render the Consulting Services shall be exchanged between
Consultant and the applicable representatives of the Company. All other notices, demands and communications required or permitted hereunder shall be in writing and shall be delivered personally to the respective representatives of the Company and
Consultant set forth below or shall be mailed by registered mail, postage prepaid, return receipt requested. Notices, demands and communications hereunder shall be effective: (i) if delivered personally, on delivery; or (ii) if mailed, five
(5) days after deposit thereof in the United States mail addressed to the party to whom such notice, demand, or communication is given. Until changed by written notice, all such notices, demands and communications shall be addressed as
follows: 
  

							
	 	 	To the Company:	  	 Multi-Fineline Electronix, Inc.
 3140 E.
Coronado Street, Suite A
 Anaheim, California 92806
 Attn: Philip
A. Harding

			
	 	 	With a copy to:	  	 Pillsbury Winthrop, LLP
 11682 El Camino
Real, Suite 200
 San Diego, California 92130
 Attn: Christopher
M. Forrester, Esq.

				
	 	 	If to Consultant:	  	David Hsu, M.D.	  	 
	 	 	 	  	 	  	 
	 	 	 	 	
	 	 
	 	 	 	  	 	  	 
	 	 	 	 	
	 	 

  
 10. Assignments;
Binding Effect. This Agreement and the services contemplated hereunder are personal to Consultant and Consultant shall not have the right or ability to assign, transfer or subcontract any obligations under this Agreement without the prior
written consent of the Company. Subject to the foregoing, all terms and conditions contained herein shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, personal representatives, successors and
assigns. 
  
 11. Limitation of Liability; Indemnity. Except
as provided in Section 3 above, Consultant shall have no liability to the Company on account of any Consulting Services rendered to the Company, provided Consultant believed in good faith that such advice was useful or beneficial to the
Company at the time it was rendered. The Company shall indemnify and hold harmless Consultant from and against any actual or threatened claims, lawsuits, actions or liabilities (including the fees and expenses of counsel and other litigation costs)
of any kind or nature, arising as a result of or in connection with this Agreement and his services, activities and decisions hereunder, except that the Company will not be obligated to so indemnify Consultant if, and to the extent that, such
claims, lawsuits, actions or liabilities against Consultant directly result from his own gross negligence or willful misconduct, as admitted in any settlement or held 

 
in any final, non-appealable judicial or administrative decision. In connection with such indemnification, the Company shall promptly remit or pay to
Consultant any amounts which Consultant certifies to it in writing are payable to Consultant. 
  
 12. Applicable Law; Severability. This document shall be governed by the laws of the State of California, without regard to the conflicts of laws provisions thereof. Nothing contained herein shall be construed
so as to require the commission of any act contrary to law, and wherever there is any conflict between any provisions contained herein and any contrary present or future statute, law, ordinance or regulation, the latter shall prevail, but the
provision of this document which is affected shall be eliminated or limited only to the extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable. 
  
 13. Further Assurances. Each of the parties hereto shall execute and
deliver any and all additional papers, documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent of the parties hereto.

  
 14. Attorneys’ Fees and Costs; Mediation. The
prevailing party in any proceeding brought to enforce or interpret any provision of this Agreement shall be entitled to recover its reasonable attorneys’ fees, costs and disbursements incurred in connection with such proceeding, including, but
not limited to, the reasonable costs of experts, accountants and consultants and all other reasonable costs and services related to the proceeding, including those incurred in any appeal, jointly and severally, from the nonprevailing party or
parties. Prior to initiating a lawsuit against the other party, each party shall submit to non-binding mediation in the event of a dispute under this Agreement. 
  

15. Headings. The headings used in this Agreement are for convenience of reference only and are not to be considered in construing or
interpreting this Agreement. 
  
 16. Modifications or
Amendments. No amendment, change or modification of this document shall be valid unless it is in writing and signed by all the parties hereto and expressly states that it is an amendment, change or modification of this Agreement is intended.

  
 17. Separate Counterparts. This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 18. Entire Agreement. This Agreement shall constitute the entire understanding and agreement between the parties hereto and shall supersede any and
all written or oral agreements or letters of intent pertaining to the subject matter of this Agreement. 
  
 [Remainder of Page Intentionally Left Blank] 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 
  

			
	MULTI-FINELINE ELECTRONIX, INC.
		
	By:	 	 /s/ Philip A. Harding

	 	 	

	 	 	 Philip A. Harding
 Chief Executive Officer

  

			
	CONSULTANT
		
	 	 	 /s/ Kar Ding David Hsu

	 	 	

	 	 	 David Hsu, M.D.

  
 [SIGNATURE
PAGE TO ADVISOR CONSULTING AGREEMENT]Consolidated Loan Agreement dated February 25, 2003

 EXHIBIT 10.6 
  
 LETTER OF CREDIT AGREEMENT 
  
 Wu, Bank of China, Authorization No. 0361031 
  
 Party A: Wu Zhong Branch, Suzhou Bank of China 
 Legal Representative or
Person in Charge: LIU, Li 
 Address: 110 N. Dong Wu Road, Suzhou City 
 Phone: 65272848 
  
 Party B: (Wei Xun) M-FLEX Circuit Boards (Suzhou) Co.
Ltd. 
 Business License No. of Legal Representative: 005874 
 Legal Representative: HSU, Kar Ding 
 Address: Su Ning Industrial Park, Wu Zhong Development Zone 
 Phone: 65638146 
  
 To promote a good and mutually beneficial relationship, after negotiations, Party A and Party B have hereby agreed on the following terms and conditions based on the voluntary, equal, mutually beneficial and
good-faith principle: 
  
 CLAUSE I 
  
 TYPE & AMOUNT OF CONSOLIDATED LOAN 
  
 Party A agreed to provide Party B with a loan totaling RMB 60,000,000. The types of loan
are: 
  

	(I)	 	Short-Term Loan at RMB 45,000,000 

  

	(II)	 	L/C or L/G at RMB 5,000,000 

  

	(III)	 	Banker’s Acceptance at RMB 10,000,000 

  

	(IV)	 	Business Types Other Than the Above 

  
 CLAUSE II 
  
 USE OF CONSOLIDATED LOAN 
  
 Within the
valid period of the loan, Party B may repeatedly use the loan from Party A in any amount provided that Party B shall not go beyond the amount of any loan type specified in CLAUSE I. 

 Should Party B wish to adjust the amount of any loan type specified in CLAUSE I, Party B must submit a written request to
Party A. Party A will decide if such an adjustment shall be made based on its internal regulations and make the adjustment accordingly. 
  
 The loan in foreign currency within the specified amount that Party A provides for Party B shall be converted into RMB based on the Party A’s internal exchange rate
on the day Party B is to receive the money. 
  
 CLAUSE III 
  
 VALID PERIOD OF CONSOLIDATED LOAN 
  
 Under this Agreement, the valid period of the loan is from February 25, 2003 to February 24,
2004. The valid loan period will start on February 25, 2003 and end on February 24, 2004. Before the expiration date of the loan, Party A and Party B may, through negotiations, extend the valid period in writing. 
  
 Before the extended period of the loan becomes effective, Party A and Party B hereto shall
cooperate and work on guarantees of the fulfillment of the terms and conditions of the loan agreement after the extension. 
  
 Actual single loan business under this Agreement entered into by Party A and Party B hereto shall continue to be implemented based on the single-item agreement hereto.
Such business shall not be affected by the expiration of the valid period of loan. 
  
 CLAUSE IV 
  
 PARTY A’S OBLIGATIONS 
  
 Party A shall bear obligations as follows: 
  

	(I)	 	Party A shall provide civilized and superior service when Party B submits its loan requests for verification and processing; 

  

	(II)	 	Party A shall give priority to any supervision, questioning and criticism from Party B and take immediate measure to resolve any problems. 

 CLAUSE V 
  
 PARTY B’S OBLIGATIONS 
  
 Party B shall bear obligations as follows: 
  

	(I)	 	Party B shall use the capital solely for the specific purposes stated in this Agreement and the single-item agreement herein; the capital cannot be used for any other purposes;

  

	(II)	 	Party B shall submit financial reports (including, but not limited to annual reports, quarterly reports and monthly reports) and other relevant documents on a regular basis and make
sure all reports and documentation are true and valid; 

  

	(III)	 	Party B shall notify Party A of any important events which affect or may affect Party A’s production and operation, management or financial conditions, including but not
limited to important changes on management, accounting, ownership and any position changes in senior management such as legal representatives or financial directors in a timely manner; 

  

	(IV)	 	Obligations of making payments or repayments, including: 

  

	 	i.	 	Pay off all loans or principals, interests accrued and costs of financing in specific amount and time agreed to by both parties hereto; 

  

	 	ii.	 	According to the terms and conditions of the L/G, when Party A exercises its recourse, Party B shall pay off all principals, interests accrued and costs of financing under the L/G;

  

	 	iii.	 	Other obligations of making payment or repayments as set forth in this Agreement; 

  

	(V)	 	It is understood by Party B that Party A may deduct any amount owed by Party B as set forth in this Agreement and the single-item agreement herein in full from Party B’s
accounts with Party A or other institutions of the Bank of China without obtaining Party B’s prior consent; 

  

	(VI)	 	 When Party B fulfills its obligations on making payments or repayments, the currency used shall be the same as the currency that Party A operates its business in.
When Party 

	 	 
A, in its discretion, deducts money from Party B’s account based on this Agreement and the single-item agreement hereto, if the currency of Party
B’s account is not the same as the currency that Party A operates its business in, the deducted amount shall be converted at an exchange rate prescribed by Party A. 

  
 CLAUSE VI 
  
 CONDITIONS OF LOAN USE 
  
 If Party B does not meet any of the following conditions, Party A shall have the right to deny Party B the use of the loan as set forth in this Agreement: 
  

	(I)	 	The transaction amount and deposits in RMB and foreign currency that Party B makes at the Bank of China shall meet the requirement of Party A; 

  

	(II)	 	The relevant single-item agreement herein has taken effect and fundamental documents required by loan business are in place; 

  

	(III)	 	None of the situations as set forth in CLAUSE VIII of this Agreement has occurred; 

  
 CLAUSE VII 
  
 STATEMENT AND PROMISSORY NOTES 
  
 Party B states as follows: 
  

	(I)	 	Party B is a legal representative for the business which was duly established and is operated and will be operated in accordance with laws and regulations. Party B has all the
necessary rights and can fulfill all the obligations as set forth in this Agreement under its name; 

  

	(II)	 	Signing and fulfilling this Agreement is based on Party B’s genuine intent and Party B has been granted complete and lawful authorization; 

  

	(III)	 	All the documents, financial reports and other information provided by Party B under this Agreement to Party A are true, complete, accurate and valid; 

  

	(IV)	 	Party B is not withholding any event which may affect its financial situations and loan repayment ability from Party A; 

  
 Party B promises as follows: 
  

	(I)	 	Party B accepts and cooperates with Party A when Party A conducts reviews and supervision on the use of loan and related production, operation and financial activities;

  

	(II)	 	Party B shall notify Party A as soon as practical without any delay when any of the following situations occurs: 

  

	 	i.	 	Senior management is involved in violations of regulations or laws; 

	 	ii.	 	Breach of this Agreement and any other agreements occurs; 

  

	 	iii.	 	Changes in ownership, senior management and amendments to the company’s by-laws or adjustments of internal organizational structure are made; 

  

	 	iv.	 	Major operation difficulties and financial hardships arise; 

  

	 	v.	 	Party B is involved in lawsuit(s) and/or arbitration(s); 

  

	 	vi.	 	Important changes in internal management or accounting systems; 

  

	 	vii.	 	Party B enters into any contract or agreement which may harm or affect Party A’s rights granted hereunder 

  

	 	viii.	 	Other situations which are significant enough to affect Party B’s repayment ability or Party A’s rights granted hereunder occur; 

  

	(III)	 	Party B shall obtain Party A’s consent prior to taking any of the following actions: 

  

	 	i.	 	Reduction of registered capital or implementation any reorganization in any form, such as separation, merger, joint-operation and contracted operation, etc., or change of operating
system; 

  

	 	ii.	 	Division of capital by means of renting out, selling, contracting to and transferring; 

  

	 	iii.	 	Guarantee of a third party’s benefits or sharing any responsibility for a third party’s debt 

  

	 	iv.	 	Any behaviors which affect the security of Party A’s rights as a debtor; 

  

	(IV)	 	Party B agrees that any matters that are not specified herein shall be governed by Party A’s regulations. 

  
 CLAUSE VIII 
  
 ADJUSTMENT OR CANCELLATION OF LOAN 
  
 During the valid loan period, Party A shall have the right to adjust or cancel the loan extended to Party B at any time when any of the following events occurs:

  

	(I)	 	Party B defaults on payments; 

  

	(II)	 	Party B suffers financial hardships and is unable to fulfill its obligations of making payments or repayments; 

  

	(III)	 	Party B fails to honor its statements and promises made in CLAUSE VII; 

  

	(IV)	 	Party B is involved in any of the following situations: 

  

	 	(i)	 	Dissolution, closing down, revocation, bankruptcy, etc.; 

  

	 	(ii)	 	Illegal activities; 

  

	 	(iii)	 	Breach of other contracts entered into with Party A; 

	 	(iv)	 	Major lawsuit(s) or arbitration(s); 

  

	 	(v)	 	Transfer of capital, or absconding with capital to evade debts; 

  

	 	(vi)	 	Loss of business good will; 

  

	 	(vii)	 	Members of the Board of Directors or Supervisory Board or senior management are involved in major embezzlement, bribery or illegal business activities. 

  
 CLAUSE IX 
  
 RIGHTS RESERVED 
  
 When Party A does not exercise part of its rights as set forth in this Agreement or does not ask Party B to fulfill part of its obligations, it neither means that Party A
has abandoned or waived the rights or obligations nor does it mean that Party A has abandoned its other rights or waived Party B’s other obligations. 
  
 Any leniency, or forbearance period extended by Party A to Party B or Party A’s delay in exercising its rights as set forth in this Agreement shall neither affect
any rights that Party A has hereunder and governing laws and regulations, nor be considered as the abandonment of the rights by Party A. 
  
 CLAUSE X 
  
 MODIFICATION AND CANCELLATION 
  
 Upon the
written consent from Party A and Party B hereto, this Agreement may be modified, added to and cancelled. Any modifications or addition made to this Agreement shall be inseparable from this Agreement. 
  
 CLAUSE XI 
  
 SINGLE-ITEM AGREEMENT 
  
 The single-item agreement of this Agreement includes: 
  

	(I)	 	Any other written agreements entered into by both Party A and Party B so as to implement this Agreement; 

  

	(II)	 	Any request, promises and guarantees submitted or made by Party B to Party A whose validity has been confirmed by Party A in the course of conducting actual loan business. This
single-item agreement herein is a part of this Agreement and has the same effect as this Agreement. In case of any discrepancy between this single-item agreement and this Agreement, this single-item agreement shall govern. 

 CLAUSE XII 
  
 EFFECTIVE TERMS 
  
 This Agreement shall not take effect until authorized representatives from both parties hereto have signed and stamped on this Agreement. 
  
 CLAUSE XIII 
  
 RESOLUTION OF DISPUTE 
  
 Any controversy or dispute arising from this Agreement or fulfillment of this Agreement shall be resolved through negotiations by both parties hereto. If the controversy and dispute cannot be resolved through
negotiations, any of the parties hereto may file with the People’s Court where Party A is located directly in accordance with governing laws. 
  
 CLAUSE XIIII 
  
 OTHERS 
  
 This Agreement has three
copies. Party A has two copies and Party B one copy. The copies have the same binding force. 
  
 Party A: Bank of China [illegible] Branch (OFFICIAL STAMP) 
  

	
	 (STAMPED)

	
	 /s/ [illegible]

	

	 Legal Representative or Authorized Signor (SIGNED)

	
	 February 25, 2003

  
 Party B: Multi-Fineline
Electronix (Suzhou) Co. Ltd. (OFFICIAL STAMP) 
  

	
	 (STAMPED)

	
	 /s/ Kar Ding Hsu

	

	 Legal Representative or Authorized Signor (SIGNED)

	
	 February 25, 2003

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