Document:

Line of Credit Extension Agreement

 Exhibit 10.13 
  
 Line of Credit Extension Agreement 
 No.: Wu Zhong Yin Shou Zi No. 0461175 
  
 Party A:
Bank of China Suzhou City Wuzhong Branch 
  
 Legal representative or person in
charge: Liu Li 
  
 Residence: No. 110 Dongwu North Road, Suzhou 
  
 Method of contact: 65272848 
  
 Party B: Multi-Fineline Electronix (Suzhou No. 2) Co. Ltd. 
  
 Legal entity business license No.: 011598 
  
 Legal representative: Xu Jiading 
  
 Residence: Dongwu Industrial Park, Wuzhong Economic Development Zone 
  
 Method of contact: 65638146 
  
 In order to develop a friendly and mutually beneficial cooperation relationship, Party A and Party B have hereby reached the following agreement through negotiations in accordance with the principle of free will,
equality, mutual benefit and integrity. 
  
 Provision One        Type and Cash Amount for Line of Credit Extension 
  
 Party A agrees to provide Party B with the following lines of credit extension: 
  

	(I)	RMB 30 million yuan for short-term loans; 

  

	(II)	RMB 10 million yuan for establishment of letter of credit. 

  
 Provision Two        Use of the Line of Credit Extension 
  
 Within the operating life for the line of credit extension, Party B may use in a revolving
way the corresponding line at Party A under the condition that the line of each individual type of credit extension as stipulated in the previous provision is not exceeded. 
  
 If Party B must adjust the use of the lines of individual credit extensions as stipulated in the previous provision, a written notice shall
be submitted to Party A, and it is subject to Party A to decide whether or not the adjustment shall be made and to take specific procedures to process the business in accordance with its internal requirements. 
  
 The line of credit extension as used by the foreign currency business provided by Party A to
Party B within the line of credit extension shall be calculated by being converted to RMB first in accordance with the internal conversion rate of Party A on the day when such line of credit extension is used. 
  

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 Provision Three        Operating Life for the
Line of Credit Extension 
  
 The operating life for the line of credit extension
under this agreement begins from October 20, 2004 and remains effective through October 19, 2005. Before the operating life for the line of credit extension expires, Party A and Party B may extend it in writing through negotiations.

  
 Before the extension goes into effect for the period of credit extension,
Party A and Party B shall cooperate with each other and jointly process the issue of post-extension guarantee for the credit extension agreement. 
  
 The individual credit extensions as have actually occurred between Party A and Party B in accordance with this agreement shall continue to be implemented according to the
relevant individual agreement(s), and shall not be affected due to the expiration of the period of credit extension. 
  
 Provision Four        Obligations of Party A 
  
 Party A has the following obligations: 
  
 (I) When Party A accepts, examines and approves, and processes the various applications from
Party B for credit extensions, Party A has the obligation to provide considerate and high-quality services; 
  
 (II) Party A shall pay great attention to the monitoring, inquiry and criticism that comes from Party B and will take quick actions so as to process such issues properly. 
  
 Provision
Five        Obligations of Party B 
  
 Party B has the following obligations: 
  
 (I) Party B shall use the
capital obtained in accordance with this agreement and individual agreement(s) for stipulated purposes, and may not misappropriate such capital; 
  
 (II) Party B shall submit its financial statements (including but not limited to annual statement, quarterly statement and monthly statement) and other relevant data to
Party A periodically, and shall guarantee their authenticity and validity; 
  
 (III) Party B shall issue a notice in a timely way on major events that affects or may affect its business operation or financial status, including but not limited to the major changes of management and calculation procedures, the changes
of property right system, and the job changes for senior personnel such as the legal representative and finance chief; 
  
 (IV) Party B shall allow Party A to examine and monitor its use of the line of credit extension as well as the relevant production, operation and financial activities and
shall cooperate with Party A in such examination and monitoring; 
  
 (V) Party B
shall implement its obligations for payment or repayment, including: 
  
 1. Party B shall repay in entirety the principal, interest and expenses for all the loans and the funds raised through financing in accordance with the time and cash amount as stipulated between the two parties; 
  

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 2. Party B shall remit the obligation under the letter of credit to the account as specified by Party A
in accordance with the time and cash amount as stipulated between the two parties; 
  
 3. Party B shall make timely payment for the principal, interest and expenses of the funds under the letter of guarantee in accordance with the conditions as stipulated in the letter of guarantee when Party A
exercises its right of recourse; 
  
 4. Other payment or repayment
obligations in accordance with the stipulations; 
  
 (VI) Party B agrees that
Party A may, without prior approval from Party B, directly deduct and collect in full amount the payables of Party B under this agreement and individual agreement(s) from the account(s) Party B has opened at Party A and other organizations of Bank
of China; 
  
 (VII) The currency type as used by Party B in its implementation of
payment or repayment obligations shall be the same as the currency that Party A uses for valuation. When Party A deducts fund from the account(s) of Party B in accordance with this agreement and individual agreement(s), if the currency type of the
account is different from the currency for valuation, conversion will be based on the exchange rate as announced by Party A. 
  
 Provisions Six        Prerequisites for Use of the Line of Credit Extension 
  
 When Party B fails to meet any of the following conditions, Party A has the right to refuse
its use of the line of credit extension under this agreement: 
  
 (I) Party B
opens at Party A account(s) that is or are in line with the requirements of Party A; 
  
 (II) Party B uses Bank of China for RMB and foreign currency settlement, deposit and other relevant business, and the volume of business meets the requirements of Party A; 
  
 (III) Relevant individual agreement(s) already goes or go into effect, and the basic documents as required for processing credit extension
are ready; 
  
 (IV) The guarantee agreement as the condition for this agreement to
be effective already goes into effect; 
  
 (V) The situation as described in
Provision Eight does not occur; 
  
 (VI) The application for credit extension
business meets the conformity examination condition of Party A. 
  
 Provision Seven        Statement and Promise 
  
 Party B presents the following statements: 
  
 (I). Party B is a business entity that is established and exists in accordance with the law, possesses all necessary rights and is able to implement the obligations of
this agreement under its own name; 
  
 (II). The signature and implementation of
this agreement are based on the expression of the true meaning of Party B, and have obtained sufficient and legal authorization; 
  
 (III). All the documents, financial statements, and other data as provided by Party B to Party A under this agreement are true, complete, accurate and valid; 

 

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 (IV) Party B does not conceal from Party A any event that may affect its financial status and ability for debt
redemption. 
  
 Party B presents the following promises: 
  
 (I) Party B will allow Party A to examine and monitor its use of the credit extension as
well as the relevant production, operation and financial activities and will cooperate with Party A in such examination and monitoring; 
  
 (II) If following incidents occur to Party B or its guarantor, Party B shall notify Party A of such in the quickest way and without any hesitation. 
  
 1. Major leaders are involved in events of principle and law violations;

  
 2. Events of contract violations occur under this contract and
any other contract; 
  
 3. Relationship of affiliations has
changed, senior management personnel have changed, articles of association have been modified, and internal organizations have been adjusted; 
  
 4. Operation has experienced serious difficulties and the financial status has deteriorated; 
  
 5. Party B or its guarantor is involved in events such as lawsuit and arbitration; 
  
 6. There are major changes to the internal management or financial
calculation procedures; 
  
 7. Any contract or agreement has been
signed that may harm or affect the rights and interests of Party A under this agreement; 
  
 8. There are other situations that are sufficient enough to affect the ability of Party B for making repayment or the rights and interests of Party A under this agreement. 
  
 (III) Party B shall get approval from Party A first before Party B takes the following
actions: 
  
 1. Party B reduces the registered capital or is
engaged in any form of reorganization or change of modes of business operation such as separation, combination, joint venture and contracting; 
  
 2. Party B disposes assets by way of lease, sale, contracting or transfer; 
  
 3. Party B provides guarantee for the interest of a third party or assumes any responsibility for the debt of a third party;

  
 4. There are other activities that affect the security for the
right of credit of Party A. 
  
 (IV) Party B agrees that the issues not described
in this agreement shall be processed in accordance with the relevant requirements of Party A. 
  
 Provision Eight        Adjustment or Cancellation of the Line of Credit Extension 
  
 Within the operating life for the credit extension, if any of the following situations
arises, Party A has the right to adjust or cancel at any time the line of credit extension for Party B: 
  
 (I) Party B fails to implement its obligations for making payment or repayment in accordance with the stipulations; 
  
 (II) Party B will be unable to implement its obligations for making repayment due to the deterioration of its financial status; 
  
 (III) The object of pledge in the mortgage contract is lost, damaged or obviously reduced in
value so that it is not sufficient to provide guarantee for the cash amount of the line of credit extension; 
  

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 (IV) Party B violates the statements and promises as presented in Provision Seven; 
  
 (V) Party B or its guarantor has any of the following situations: 
  

	 	1.	Events such as dismissal, closedown, cancellation, and bankruptcy have taken place; 

  

	 	2.	Party B or its guarantor is engaged in activities that violate the law; 

  

	 	3.	Events of contract violations have occurred under its other contract(s) with Party A; 

  

	 	4.	Party B or its guarantor is involved in a major lawsuit or arbitration case; 

  

	 	5.	Party B or its guarantor transfers the assets and spirits its money away so as to evade debt payment; 

  

	 	6.	Party B or its guarantor has lost its business reputation; 

  

	 	7.	Members in the board of directors or in the board of supervisors or senior management personnel are involved in major corruption, bribery or illegal operation cases.

  
 Provision
Nine        Reservation of Rights 
  
 If
Party A does not exercise part of the rights under this agreement, or does not ask Party B to implement part of the obligations, the inaction does not constitute a waiver by Party A of such right or an exemption of Party B from such obligation, nor
does it constitute a waiver by Party A of other rights in this agreement or an exemption of Party B from other obligations. 
  
 Any tolerance, grace or delayed implementation of the rights under this agreement as offered by Party A to Party B does not affect any right as possessed by Party A in
accordance with this agreement and the relevant laws and regulations, nor may it be deemed as a waiver of the above rights by Party A. 
  
 Provision Ten        Change and Cancellation 
  
 With written approval from both Party A and Party B, this agreement may be modified,
supplemented or cancelled. Any modification or supplement to this agreement shall constitute an inseparable part of this agreement. 
  
 Provision Eleven        Individual Agreements 
  
 The individual agreements of this agreement include: 
  
 (I) Other written agreement(s) as reached between Party A and Party B for implementation of
this agreement; 
  

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 (II) Applications, promises or guarantees as submitted or provided by Party B to Party A in specific credit extension
business with their effectiveness confirmed by Party A. 
  
 Individual agreement
constitutes a part of this agreement, and has the same force as this agreement. If there is a conflict between an individual agreement and this agreement, the individual agreement shall take control. 
  
 Provision
Twelve        Validation of Agreement 
  
 This agreement will go into effect when the following conditions are met: 
  
 (I) Authorized persons for signature have signed on it and marked it with seal. 
  
 (II) Relevant guarantee contract(s) has/have gone into effect. 
  
 Provision Thirteen        Settlement of Dispute 
  
 All the disputes as generated in the implementation of this agreement or as related to this
agreement may be negotiated between the two parties for a solution. If negotiations do not work, either party may resort to a solution by way of filing a lawsuit directly at the people’s court where Party A is in accordance with the law.

  
 Provision
Fourteen        Other 
  
 This agreement
has three identical original copies, out of which Party A, Party B and the guarantor hold one copy respectively, and the three copies have the same force. 
  

			
	 Party A: Bank of China __________ Branch (Official Seal)
  
 (Round seal: Bank of China Suzhou City Wuzhong Branch)
	 	Party B: ___________ Company (Official Seal)
		
	 Legal representative or authorized person for signature:
  
 [signature:] Xiao Xiaohua
  
 Bank of China Wuzhong Branch, October 20, 2004
	 	 Legal representative or authorized person for signature:
  
 [illegible signature]

  

 6Guarantee Contract (Line of Credit Extension)

 Exhibit 10.14 
  
 Guarantee Contract (Line of Credit Extension) 
 No.: Wu Zhong Yin Bao Zi No.: 0461175 
  
 Guarantor (Party A): Multi-Fineline Electronix (Suzhou) Co., Ltd. 
  
 Legal entity business license No.: 005874 
  
 Legal representative: Xu
Jiading 
  
 Residence: Suning Industrial District, Wuzhong Economic Development
Zone 
  
 Method of contact: 65638146 
  
 Creditor (Party B): Bank of China Suzhou City Wuzhong Branch 
  
 Legal representative or person in charge: Liu Li 
  
 Residence: No. 110 Dongwu North Road, Suzhou 
  
 Method of contact: 65272848 
  
 Debtor (warrantee): Multi-Fineline Electronix (Suzhou No. 2) Co. Ltd. 
  
 Legal entity business license No.: 011598 
  
 Legal representative: Xu Jiading 
  
 Residence: Dongwu Industrial Park, Wuzhong Economic Development Zone 
  
 Method of contact: 65638146 
  
 In order to make sure that the debtor obligations under the line of credit extension agreement (referred to as “Master Contract” hereinafter) are effectively implemented as signed by and between the debtor
and Party B on October 20, 2004 with the agreement number as Wu Zhong Yin Bao Zi No.: 0461175, Party A is willing to provide security of guaranty to Party B. For the purpose of clarifying the rights and obligations between the two parties,
Party A and Party B have concluded the Contract by reaching an agreement through equal negotiations in accordance with the requirements as described in contract laws, security law and other relevant laws and regulations. 
  
 Provision
One        Statement and Guarantee 
  
 Party A presents the following statement and guarantee: 
  

	1.	In accordance with the laws of China, Party A is eligible to be a guarantor and may provide security of guaranty to external parties. 

  

	2.	Party A has the ability to bear the responsibility of guarantee, and such responsibility of guarantee may not be reduced or waived due to any administrative instructions, changes of
financial conditions, and any agreements as signed with any organizations. 

  

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	3.	Party A fully understands how the debtor in the Master Contract will use the capital from credit extensions, is entirely of its own free will to provide guarantee for the debtor in
the Master Contract, and has genuinely expressed its full meanings in this contract. The signature of the legal representative or the authorized agent is genuine, and has been legally authorized. 

  

	4.	Party A fully understands the intendment of law of its statement and promise as made in the guarantee contract. 

  

	5.	All the documents, data, statements and reports, and evidence provided by Party A to Party B are accurate, real, complete and effective. 

  

	6.	The counter guarantee agreement as signed by and between Party B and the debtor or the agreement as signed by and between Party A and other party may not harm the rights of Party B
under this agreement. Without approval from Party B, Party A may not ask the debtor to set up counter guarantee in the form of pledge or hypothecation with regard to the obligations of Party A under this guarantee agreement.

  

	7.	Party A shall notify Party B in advance of any forms of property right changes or operational adjustments as occur in the period of guarantee. If Party B asks for increase or change
of guarantor, Party A shall implement it. 

  

	8.	Party A shall immediately notify Party B of any of its establishment, change, and cancellation of registration as conducted at the state industrial and commercial and administrative
authorities. 

  
 Provision
Two        Relationship Between Guarantee Contract and Master Contract 
  

	1.	This guarantee contract is an independent guarantee. If the Master Contract becomes invalid or revocable due to any reason, such does not affect the effectiveness of the guarantee
contract, and the guarantee contract shall remain effective, and Party A shall remain responsible to Party B for the guarantee. 

  

	2.	If Party B cancels the Master Contract or makes the Master Contract expire ahead of schedule in accordance with the law or the stipulations as described in the Master Contract,
Party A shall assume the responsibility of guarantee for the losses that the debtor of the Master Contract should have undertaken for the sake of Party B (including the cancellation or earlier expiration of specific credit extension agreement).

  

	3.	When the two parties of the Master Contract negotiate changes to the Master Contract (including supplementary agreements), except for the extension of the period for credit
extension application or for the increase of the total amount for credit extension, it is not necessary to get approval from Party A, and Party A shall remain responsible for the guarantee. 

  
 If the period for credit extension application is extended for the Master
Contract without approval from Party A, Party A shall still bear the responsibility of guarantee within the original period of guarantee. If the total amount for credit extension is increased for the Master Contract without approval from Party A,
Party A shall still bear the responsibility of guarantee within the cash amount for the credit extension as originally secured. 
  
 If the debtor changes the purpose for the capital from credit extension without authorization, withdraws money earlier or later than the scheduled date,
makes repayment or pays interest earlier or later than the scheduled date, and increases or decreases the withdrawal amount within the scope of the total amount for credit extension without approval from Party B, such may not be deemed as changes to
the Master Contract, and Party A shall remain responsible for the guarantee within the original scope and period of the guarantee. 
  

	4.	Without approval from Party A, Party B may transfer the Master Contract to a third party within the valid period of this contract, and Party A shall remain responsible for the
guarantee within the original scope of the guarantee. 

  

	5.	With written approval from both Party A and Party B, the debtor may transfer the debt under the Master Contract to a third Party within the valid period of this contract, and Party
A shall remain responsible for the debt after the transfer. 

  
 Provision Three        Cash Amount and Scope of Guarantee 
  
 The principal rights of credit as secured in this contract are the principal balance and interest (including legal interest, contract interest, compound interest, and
penalty interest), penalty, compensation, expenses for rights of credit realization (including costs of the action, attorney fee, notarial fee, and execution fee) and all other expenses payable, which may not exceed RMB 40 million yuan, as
generated in accordance with the Master Contract between Party B and the debtor beginning from October 20, 2004 to October 19, 2005. 
  
 If, due to business needs, different types of credit extension business are adjusted for use with agreement as reached between Party B and the debtor through negotiations
and on the premise that the line of credit extension is not exceeded for the Master Contract, or the letter of guarantee and letter of credit under the Master Contract are reissued (including re-issuance for many 

  

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times) or issued instead by the bank of the creditor with higher authorities or by an overseas branch of Bank of China or an overseas bank, such may not
affect Party A in taking joint liability for guarantee with regard to the actual debt of the debtor. 
  
 Provision Four        Form of Guarantee 
  

	1.	The form of guarantee for this guarantee contract is joint liability security 

  

	2.	If there are several persons as the guarantor, all such persons and the debtor shall take the joint liability for guarantee together towards Party B. 

  
 Provision
Five        Period of Guarantee 
  

	1.	The period of guarantee for this contract is: two years from the date on which the debt the debtor owes to Party B matures (including maturity by installments) under each specific
credit extension business agreement. 

  

	2.	If Party B cancels the Master Contract or makes the Master Contract expire ahead of schedule in accordance with the law or the stipulations as described in the Master Contract, the
period of guarantee is two years from the date on which Party B announces or notifies the debtor of the cancellation of the Master Contract or the Master Contract expires ahead of schedule (including the cancellation or the expiration ahead of
schedule of specific credit extension business agreements). 

  
 Provision Six        Continuity of Security of Guaranty 
  
 Before the entire obligations under this guarantee contract are fully implemented, if Party A (including, but not limited to, its successor, assignee, and receiver) has
any property right changes or operational adjustments, Party B shall be notified of such in writing. Any property right changes or operational adjustments (including, but not limited to, signing joint-venture and cooperative business operation
agreements with overseas merchants as well as with Hong Kong, Macao and Taiwan merchants; cancellation, closure, suspension of production and changing the line of production; separation, combination, merger, and being merged; reorganization,
establishment or reconstruction into a joint-stock company; becoming a shareholder or making investment in a joint-stock company or investment company with fixed assets such as building and machinery equipment or with intangible assets such as
trademark, patent, proprietary technology and land use right; and engagement in property right and management right transaction by way of lease, contracting, joint operation, trusteeship and other procedures) as conducted by Party A or by the debtor
(including the upper-level organizations of the hypothecator or borrower) do not affect the continuity of the security obligations of Party A under this contract. 
  
 Provision Seven        Responsibility for Breach of Contract

  

	I.	The following conditions constitute the breach of contract on the part of Party A under this contract: 

  

	1.	Party A violates the requirements as described in Provision One of this contract by making false statement or announcement. 

  

	2.	Party A fails to settle debt of the debtor in a timely way in accordance with the requirements as described in this guarantee contract. 

  

	3.	This contract becomes invalid because of Party A. 

  

	II.	If Party A violates the contract, Party B has the right to take one or more of the following actions: 

  

	1.	Ask Party A to implement the obligations as stipulated in the contract. 

  

	2.	Cancel other business contract(s) with Party A or announce that other business contract(s) expire(s) ahead of schedule. 

  

	3.	Ask Party A to pay penalty in a total amount equivalent to 10% of the entire debt as secured under this contract. 

  

	4.	Ask Party A to compensate Party B for all direct or indirect losses as suffered by Party B due to breach of contract by the debtor (including, but not limited to, the losses as
suffered by Party B for failure to recover the full amount of the principal, interest and expenses of credit extension capital under the Master Contract or the supplementary agreements). 

  

	5.	Only by notification, Party B has the right to offset the secured right of credit by using the matured capital in any account of Party A at Party B or its branch organizations or
upper-level organizations of the same legal entity (if the capital in the account is not mature yet, Party A agrees that the capital immediately matures ahead of schedule, and Party B is authorized to exercise its right to offset).

  

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 Provision Eight        Waiver of Rights

  

	1.	Under this contract, Party A shall make full payment for the debt within the scope of guarantee, and may not make a proposal to offset. 

  

	2.	Any tolerance, grace and favorable conditions as offered by Party B to Party A or the delayed implementation of the rights under this contract do not affect, harm or restrict any
right of Party B as acquired in accordance with this contract and relevant laws, may not be deemed as the waiver of right and interest under this contract by Party B, and do not affect any obligations that Party A shall undertake under this
contract. 

  
 Provision
Nine        Modification, Supplementation and Interpretation to or of Guarantee Contract 
  

	1.	With written approval from both Party A and Party B, this guarantee contract may be modified and supplemented; any modification and supplementation to the contract all constitute an
inseparable part of the contract. 

  

	2.	The remaining issues of this contract shall be explained or processed in accordance with the relevant provisions of the Master Contract as secured under this contract and the
relevant requirements of Bank of China. 

  
 Provision Ten        Settlement of Dispute, Application of Law and Competent Court 
  

	1.	The laws of the People’s Republic of China apply to the conclusion, force, interpretation and implementation of this contract and to the settlement of dispute. During the
implementation of this contract, all the disputes as generated in the implementation of this contract shall be settled through friendly negotiations between the two parties. When negotiations do not work, either party in concern may directly file a
lawsuit at the people’s court for a settlement through legal procedures. 

  

	2.	The competent court for the dispute under this contract is the local people’s court where Party B is. 

  

	3.	Party A shall be responsible for all the expenses related to the lawsuit except otherwise determined by the people’s court. 

  
 Provision
Eleven        Validation of Contract 
  
 This contract and its modifications and supplements will go into effect once signed and marked with seals by the legal representatives or agents of the two parties and marked with official seals (including contract specific seals).

  
 This contract has two identical original copies, Party A and Party B hold one
copy each respectively, and the two copies have the same legal effect. 
  

			
	 Guarantor (Party A):
  
 [round seal:] Multi-Fineline Electronix (Suzhou) Co., Ltd.
  
 Legal representative or agent: (Signature and seal)
  
 [illegible signature]
	 	 Creditor (Party B):
  
 [round seal:] Bank of China Suzhou City Wuzhong Branch
  
 Legal representative or agent: (Signature and seal)
  
 [signature:] Xiao Xiaohua

  
 Time and site: Bank of China Wuzong
Branch on October 20, 2004 
  

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