Document:

exv10w41

 

Exhibit
10.41

PRIVATE & CONFIDENTIAL

DBCN/CR/2003/0169 (KLM:bkm)

10 May 2005

TRIO-TECH INTERNATIONAL PTE LTD

1008 Toa Payoh North

#03-09

Toa Payoh Industrial Estate

Singapore 318996

Attn: Mr Victor Ting/Ms Wong Yung Sung

Dear Sirs

BANKING FACILITIES

1 We refer to the various discussions between your Company and our officers and are
pleased to offer to your Company the following facilities:-

	 	 	 	 	 
	 	 	Existing	 	Revised
	Facilities	 	Limits	 	Limits
	Import Line comprising (Sight/Usance) Letters of
Credit, Trust Receipts, Bills Receivable Purchase
(Import), Shipping Guarantees and Airway
Guarantees
	 	S$1,000,000	 	S$1,000,000
	 
	 	 	 	 
	Bills Receivable Sales
	 	 US$3,000,000	 	 US$3,000,000
	 
	 	 	 	 
	Term Loan I (original limit)
	 	S$797,627-60	 	S$797,627-60
	 
	 	 	 	 
	Term Loan III (original limit)
	 	S$l,000,000	 	S$l,000,000
	 
	 	 	 	 
	Term Loan IV
	 	—	 	S$1,000,000
	 
	 	 	 	 
	Term Loan V
	 	—	 	S$1,000,000
	 
	 	 	 	 
	Foreign Exchange Line
	 	S$3,000,000	 	S$3,000,000

2 The
above offer is subject to the following terms and conditions:-

	 	(a)	 	Purpose

	 	(i)	 	Term Loan IV

To part finance the purchase/installation of one (1) unit of heat-dissipating system (hereinafter
called “Equipment 1”).

	 	 	 	 	 
	 

	 	DBS Bank Ltd
	 	Tel: 65.67671555
	 

	 	DBS Business Centre (North) Enterprise Banking
	 	Fax: 65.6764 2725
	 

	 	900 South Woodlands Drive #05-01
	 	Telex: RS 24455
	 

	 	Woodlands Civic Centre
	 	SWIFT Dest: DBSSSGSG
	 

	 	Singapore 730900
	 	www.dbs.com

1

 

TRIO-TECH INTERNATIONAL PTE LTD

Banking Facilities

10 May 2005

	 	(ii)	 	Term Loan V
	 
	 	 	 	To part finance the purchase/installation of one (1) unit of heat-dissipating system
(hereinafter called “Equipment 2”).

	 	(b)	 	Interest Rate for Term Loans IV and V
	 
	 	 	 	1.00% per annum above the prevailing DBS Bank Prime rate or such other rate(s) as may be determined
by us from time to time. Interest shall be calculated on daily rest basis based on a 365/366-day
year.
	 
	 	 	 	The monthly instalment will be calculated based on the respective amount disbursed, over the
original duration of Term Loan IV and V respectively.
	 
	 	 	 	The prevailing DBS Bank Prime rate is 4.25% per annum.
	 
	 	(c)	 	Financing Quantum
	 
	 	 	 	Term Loans IV and V shall be capped at S$1,000,000/- each.
	 
	 	(d)	 	Financing Period

	 	(i)	 	The duration for Term Loan IV shall be three (3) years.
	 
	 	(ii)	 	The duration for Term Loan V shall be three (3) years

	 	(e)	 	Conditions governing use of Term Loans IV and V

	 	(i)	 	Term Loans IV and V shall be disbursed progressively upon your submission of:

	 	(a)	 	vendors’/suppliers’ invoices of installation works done/materials purchased for
Equipment I and 2 respectively; and
	 
	 	(b)	 	documentary evidence acceptable to DBS Bank that your Company has met the Goods and
Services Tax (GST) and the first 10% of the cost of Equipment I and 2 respectively under the
aforementioned invoices.

	 	 	 	 	 
	 

	 	DBS Bank Ltd
	 	Tel: 65.67671555
	 

	 	DBS Business Centre (North) Enterprise Banking
	 	Fax: 65.6764 2725
	 

	 	900 South Woodlands Drive #05-01
	 	Telex: RS 24455
	 

	 	Woodlands Civic Centre
	 	SWIFT Dest: DBSSSGSG
	 

	 	Singapore 730900
	 	www.dbs.com

2

 

TRIO-TECH INTERNATIONAL PTE LTD

Banking Facilities

10 May 2005

	 	(ii)	 	DBS Bank shall reimburse your Company the amount paid to the vendors/suppliers’ in respect of
clause 2(e)(i)(a) above subject to:

	 	(a)	 	your submission of documentary evidence satisfactory to the Bank; and
	 
	 	(b)	 	your Company meeting the requirements stipulated in our letter of offer herein.

	 	(f)	 	Availability
	 
	 	 	 	Term Loans IV and V shall be available for drawdown within one (1) year from
the date of this letter of offer.
	 
	 	(g)	 	Repayment

	 	(i)	 	Term Loans IV and V shall be repaid in thirty-six (36) monthly instalments to be determined
upon each drawdown respectively. The first of such instalments shall be paid one (1) month from the
date of its respective first disbursements. Subsequent monthly instalments shall be paid on the
corresponding day of succeeding months.
	 
	 	(ii)	 	In the event the interest rate applicable on Term Loan IV and/or Term Loan V is/are revised,
you shall pay such increased or reduced monthly instalments based on the new interest rate to
enable the respective loans to be completely repaid within the agreed period of three (3) years
each.

	 	(h)	 	Security
	 
	 	 	 	The above banking facilities together with all monies and liabilities which may be owing or
becoming owing by you to DBS Bank from time to time shall be secured by the existing charge on
fixed deposit(s) of not less than S$800,000/- in aggregate or its equivalent in other acceptable
currencies and renewal(s) thereof shall continue to be placed with DBS Bank to be used to offset
all monies and liabilities owing by you to DBS Bank. In this connection, the existing Charge on
Specific Fixed Deposit(s) dated 20 Jan 2004 executed by you in favour of DBS Bank shall continue to
apply.
	 
	 	(i)	 	Financial Covenants

	 	(i)	 	Your Company shall at all times maintain a minimum net worth of not less than S$10,000,000/-.
In this connection, net worth shall be defined as the sum of paid-up capital, revenue reserve and
capital reserve.

	 	 	 	 	 
	 

	 	DBS Bank Ltd
	 	Tel: 65.67671555
	 

	 	DBS Business Centre (North) Enterprise Banking
	 	Fax: 65.67642725
	 

	 	900 South Woodlands Drive #05-01
	 	Telex: RS 24455
	 

	 	Woodlands Civic Centre
	 	SWIFT Dest: DBSSSGSG
	 

	 	Singapore 730900
	 	www.dbs.com

3

 

TRIO-TECH INTERNATIONAL PTE LTD

Banking Facilities

10 May 2005

	 	(ii)	 	Your company shall maintain a gearing ratio (defined as total liabilities over shareholders’
funds including shareholders’ loans, if any) of not more than 250% at all times.
	 
	 	(iii)	 	Your Company shall not create any charge, mortgage, pledge or lien in respect of any of your
properties and assets nor factor or assign any of your account receivables, save for the equipment
financed under the Hire Purchase agreements, without the prior consent of DBS Bank in writing, such
consent not to be unreasonably withheld.

	 	(j)	 	Pre-Condition for Disbursement
	 
	 	 	 	Upon completion of legal documentation as required by DBS Bank.
	 
	 	(k)	 	Disbursement
	 
	 	 	 	Term Loans IV and V shall be available for progressive drawdown against documents acceptable to DBS
Bank.
	 
	 	(I)	 	Right of Review
	 
	 	 	 	In conformity with normal banking practice, DBS Bank reserves the right to review the banking
facilities from time to time at its discretion. Upon the review of the facilities, DBS Bank shall
have the right to vary, reduce, or terminate the facilities (whether actual or contingent).
	 
	 	(m)	 	Standard Conditions
	 
	 	 	 	The attached Standard Conditions governing Singapore Dollar and/or Non-Singapore Dollar Credit
Facilities granted by DBS Bank shall apply.

3 All other terms and conditions as stipulated in our previous letter(s) of offer and/or
letter(s) of variation shall remain unchanged.

4 Should the above offer meet with your acceptance, please submit to DBS Bank two (2)
certified copies of the Resolution passed by your Board of Directors accepting the same on all the
terms and conditions contained herein and furnish to DBS Bank the name(s) of the person(s)
authorised to contract the foreign exchange transactions, together with the duplicate of this
letter of offer duly signed.

5 This
offer shall lapse if it is not accepted within fourteen (14) days from the date of
this letter unless an extension is requested for and agreed to by DBS Bank.

	 	 	 	 	 
	 

	 	DBS Bank Ltd
	 	Tel: 65.67671555
	 

	 	DBS Business Centre (North) Enterprise Banking
	 	Fax: 65.6764 2725
	 

	 	900 South Woodlands Drive #05-01
	 	Telex: RS 24455
	 

	 	Woodlands Civic Centre
	 	SWIFT Dest: DBSSSGSG
	 

	 	Singapore 730900
	 	www.dbs.com

4

 

TRIO-TECH INTERNATIONAL PTE LTD

Banking Facilities

10 May 2005

6 Should you have any enquiries pertaining to this letter of offer, please do not hesitate
to contact Ms Tan Li Peng at 6767 1557.

Yours faithfully

/s/
Loi Kai
Cheow

LOI KAI CHEOW

VICE PRESIDENT

DBS BUSINESS CENTRE (NORTH)

ENTERPRISE BANKING

We hereby confirm acceptance of the above terms and conditions and authorise you to debit our
account (no: 005-006110-5) with your (Toa Payoh Branch) Branch for the monthly instalments payable as well as interest, fees, expenses or such other sum(s)
that may be payable in connection with the facility(ies) offered herein.

For and on
behalf of Trio-Tech International Pte Ltd

	 	 	 
	/s/ Yong Siew Wai
 

Authorised Signatory(ies) Yong Siew Wai

	 	 
	(Company’s stamp to be affixed if required)
	 	 
	Date:
	 	 

	 	 	 	 	 
	 

	 	DBS Bank Ltd
	 	Tel: 65.6767,1555
	 

	 	DBS Business Centre (North) Enterprise Banking
	 	Fax: 65.6764 2725
	 

	 	900 South Woodlands Drive #05-01
	 	Telex: RS 24455
	 

	 	Woodlands Civic Centre
	 	SWIFT Dest: DBSSSGSG
	 

	 	Singapore 730900
	 	www.dbs.com

5exv10w42

 

1

Exhibit
10.42

Please quote our reference when replying 

Our Ref: JTC(L) 3729/15A Temp

	 	 	 	 	 
	5 July 2005

	 	 	 	JTC Corporation
	 

	 	 	 	The JTC Summit
	 

	 	 	 	8 Jurong Town Hall Road
	 

	 	 	 	Singapore 609434
	 
	UNIVERSAL (FAR EAST) PTE. LTD.

	 	 	 	customer
      1800 568 7000
	 1008 TOA PAYOH NORTH

	 	 	 	service hotline
	#03-09

	SINGAPORE(318996)	 	 	 	main line       (65) 6560 0056
	 
	(Attention : YONG SIEW WAI )

	 	 	 	facsimile       (65) 6565 5301
	 	By Local Urgent Mail	 	 
	 
	 	 	 	 	website       www.jtc.gov.sg

Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

	1	 	We are pleased to offer a tenancy of the Premises subject to the covenants,
terms and conditions in the annexed Memorandum of Tenancy No. 27.09 (“the
MT”) and in this letter (collectively called “the Offer”).

	2	2.1 	 	 The Premises :
	 
	 	 	 	Private Lot A0958201 also known as Unit #01-15/16 (“the
Premises”) in BLK 1008 TOA PAYOH NORTH (“the Building”) in
the TOA PAYOH NORTH INDUSTRIAL ESTATE SINGAPORE 318996 as
delineated and edged in red on the plan attached to the Offer.
	 
	 	2.2	 	Term of Tenancy :
	 
	 	 	 	3 years (“the Term”) with effect from 1 October
2005 (“the Commencement Date”).
	 
	 	2.3	 	Tenancy :

	 	(a)	 	Your due acceptance of the Offer in accordance with Clause 3 of
this letter shall, together with the Offer, constitute a binding
tenancy agreement (“the Tenancy”).
	 
	 	(b)	 	In the event of any inconsistency or conflict between
any covenant, term or condition of this letter and the MT, the
relevant covenant, term or condition in this letter shall prevail.

        

 

2

	 	2.4	 	Area :
	 
	 	 	 	Approximately 130.1 square metres (“the Area”).
	 
	 	2.5	 	Rent :
	 
	 	 	 	$12.85 per square metre per month (“Rent”) on the Area, to be paid
without demand and in advance without deduction on the 1st day of each month of the
year (i.e. 1st of January, February, March, etc.). After your first payment is made
in accordance with Clause 3 of this letter and the attached Payment Table, the next
payment shall be made on 01 November 2005.
	 
	 	2.6	 	Service Charge :
	 
	 	 	 	$2.25 per square metre per month (“Service Charge”) on the Area as
charges for services rendered by us, payable by way of additional and further rent
without demand on the same date and in the same manner as the Rent, subject to our
revision from time to time.
	 
	 	2.7	 	Security Deposit/Banker’s Guarantee :
	 
	 	 	 	Ordinarily we would require a tenant to lodge with us a security deposit
equivalent to three (3) months’ rent and service charge. However, as an off-budget
measure and as payment by GIRO has been made a condition with which you must comply
under clause 3 of this letter, you shall, at the time of your acceptance of the
Offer, be required to place with us a deposit equivalent to one (1) month’s Rent and
Service Charge (“Security Deposit”) as security against any breach of the
covenants, terms and conditions in the Tenancy, as follows:

	 	(a)	 	The Security Deposit may be in the form of cash or acceptable
Banker’s Guarantee in the form attached (effective from 1 August 2005 to 30
December 2008 , or such other form of security as we may in our absolute
discretion permit or accept.
	 
	 	(b)	 	The Security Deposit shall be maintained at the same sum
throughout the Term and shall be repayable to you without interest, or returned
to you for cancellation, after the termination of the Term (by expiry or
otherwise) or expiry of the Banker’s Guarantee, as the case may be, subject to
appropriate deductions or payment to us for damages or other sums due under the
Tenancy.

 

3

	 	(c)	 	If the Service Charge is increased or any deductions are made from
the Security Deposit, you shall immediately pay the amount of such increase
or make good the deductions so that the Security Deposit shall at all times
be equal to one (1) month’s Rent and Service Charge.
	 
	 	(d)	 	If at any time during the Term, your GIRO payment is
discontinued, then you shall place with us, within two (2) weeks of the date of
discontinuance of your GIRO payment, the additional sum equivalent to two (2)
months’ Rent and Service Charge, so that the Security Deposit shall at all
times be equal to three (3) months’ Rent and Service Charge for the remaining
period of the Term.
	 
	 	(e)	 	If at any time during the Term the off-budget measure is
withdrawn you shall, if required in writing by us, also pay to us the
additional sum equivalent to two (2) months’ Rent and Service Charge, so that
the Security Deposit shall at all times be equal to three (3) months’ Rent and
Service Charge for the remaining period of the Term.

	 	2.8	 	Mode of Payment :

	 	(a)	 	Your first payment to be made with your letter of acceptance in
accordance with Clause 3 of this letter and the attached Payment Table shall be
by non-cash mode (eg, Cashier’s Order, cheque).
	 
	 	(b)	 	Thereafter during the Term, you shall pay Rent, Service Charge
and GST by interbank GIRO or any other mode to be determined by us.
	 
	 	(c)	 	We enclose the GIRO authorization form for your completion.

	 	2.9	 	Authorised Use :
	 
	 	 	 	You shall use the Premises for the purpose of semiconductor machinery
vibration lab testing (R&D) only and for no other purpose whatsoever
(“the Authorised Use”).
	 
	 	2.10	 	Approvals :
	 
	 	 	 	The Tenancy is subject to approvals being obtained from the relevant
governmental and statutory authorities.

 

 4 

2.11 Possession of Premises :

	 	(a)	 	Subject to your acceptance of the Offer, keys to the Premises
shall be made available to you within the period of two (2)
months prior to the Commencement Date.
	 
	 	(b)	 	From the date you accept the keys to the Premises
(“Possession Date”) until the Commencement Date, you shall
be deemed a licensee upon the same covenants, terms and
conditions as in the Tenancy.
	 
	 	(c)	 	If you proceed with the Tenancy after the Commencement
Date, the licence fee payable from the Possession Date to the
Commencement Date shall be waived (“Rent-Free Period”).
Should you fail to so proceed, you shall:

	 	(c1)	 	remove everything installed by you;
	 
	 	(c2)	 	reinstate the Premises to its original state and condition;
and
	 
	 	(c3)	 	pay us a sum equal to the prevailing market rent payable
for the period from the Possession Date up to the date
the installations are removed and reinstatement
completed to our satisfaction,

without prejudice to any other rights and remedies we may have against you
under the Tenancy or at law.

2.12 Loading Capacity:

	 	(a)	 	Normal (Ground & Non-ground) Floor Premises :

You shall comply and ensure compliance with the following restrictions :

	 	(a1)	 	maximum loading capacity of the goods
lifts in the Building; and
	 
	 	(a2)	 	maximum floor loading capacity of 15 kiloNewtons
per square metre of the Premises on the 01 storey of the Building
PROVIDED THAT any such permitted load shall be evenly distributed.

 

 

 5  

     2.13 Option for Renewal of Tenancy :

	 	(a)	 	You may within 3 months before the expiry of the Term make a
written request to us for a further term of tenancy.
	 
	 	(b)	 	We may grant you a further term of tenancy of the Premises
subject to the following :

	 	(b1)	 	there shall be no breach of your obligations at
the time you make your request for a further term, and at the expiry of
the Term;
	 
	 	(b2)	 	the duration of the further term shall be
mutually agreed upon;
	 
	 	(b3)	 	the rent payable shall be at a revised rate to be
determined by us, having regard to the market rent of the Premises at
the time of granting the further term. Our determination of the rent
shall be final and conclusive; and
	 
	 	(b4)	 	the tenancy for the further term shall be upon
the same covenants, terms and conditions except for the duration, rent,
security deposit (which shall be equivalent to three (3) month’s rent
and service charge instead of two (2) months), and excluding a covenant
for renewal of tenancy.

3 Mode of Due Acceptance :

The Offer shall lapse if we do not receive the following by 19 July 2005 :

	 	(a)	 	Duly signed letter of acceptance (in duplicate) of the Offer, in the
form set out in the Letter of Acceptance attached. (Please date as
required in your letter of acceptance)
	 
	 	(b)	 	Payment of the sum set out in the Payment Table attached.
	 
	 	(c)	 	Duly completed GIRO authorization form.

 

 

 6 

	 	 	 
	4
	 	Please note that payments made prior to your giving us the
other items listed above may be cleared by and credited by
us upon receipt. However, if those other items are not
forthcoming from you within the time stipulated herein, the
Offer shall lapse and there shall be no contract between
you and us arising hereunder. Any payments received shall
then be refunded to you without interest and you shall have
no claim of whatsoever nature against us.

	 	 	 

	5
	 	Rent-Free Period:

	 	 	 

	 	 	As the Commencement Date will not be deferred, we advise
you to accept the Offer as soon as possible and to
collect the keys to the Premises on the scheduled date in
order to maximize the Rent-Free Period referred to in
Clause 2.11(c) of this letter.

	 	 	 

	6
	 	Variation to the Tenancy:

	 	 	 

	 	 	Any variation, modification, amendment, deletion, addition
or otherwise of the Offer shall not be enforceable unless
agreed by both parties and reduced in writing by us. No
terms or representation or otherwise, whether expressed or
implied, shall form part of the Offer other than what is
contained herein.

	 	 	 

	7
	 	Car-Parking Scheme:

	 	 	 

	 	 	The carpark for BLK 1008 TOA PAYOH NORTH is currently
managed by WILSON PARKING (SINGAPORE) PTE LTD and you will
have to observe and be bound by all the rules and
regulations governing the use and operation of the carpark.
You are requested to contact:

32 SULTAN GATE

SINGAPORE 198480

	 	 	 
	 	 	on your use of the carpark.

	 	 	 

	8
	 	Electricity Connection:

	 	 	 

	 	 	Upon your acceptance of the Offer, you are advised to
proceed expeditiously to engage a registered electrical
consultant to submit two sets each of electrical
single-line diagrams and electrical layout plans to and in
accordance with the requirements of our Facilities
Management Section, Operations Support Department of our
Customer Services Group, for endorsement before an
application is made to SP Services Ltd to open an account
for electricity connection.

 

 

 7 

	 	 	 
	 	 	Please contact the Facilities Management
Section at Blk 25 Kallang Avenue #05-02 Kallang
Basin Industrial Estate Singapore 339416 for their
requirements.

	 	 	 

	9
	 	To guide and assist you, we enclose a
Schedule of Statutory Controls for Flatted Factory
Occupants.

	 	 	 
	Yours faithfully
	 	 
	 
	 	 
	/s/ Choon Hwai Yap
	 	 
	 	 	 
	Choon Hwai Yap
	 	 
	INDUSTRIAL DEVELOPMENT (HIGH-RISE) DEPARTMENT
	INDUSTRIAL PARKS DEVELOPMENT GROUP
	JTC CORPORATION
	 	 
	DID: 68833436
	 	 
	FAX: 68855900
	 	 
	Email: yapch@jtc.gov.sg
	 	 

ENCS:

	 	 	 	 	 
	[x] Payment Table

	 	[x] GIRO Form(s)
	 	[x] Specimen BG Plan
	[x] Specimen Acceptance Form

	 	[x] MT No. 27.09	 	 
	[x] Schedule of Statutory Controls (SC2)]	 	 

 

 

8

PAYMENT TABLE

PREMISES : PRIVATE LOT A0958201 UNIT #01-15/16  BLK 1008 TOA PAYOH NORTH TOA PAYOH NORTH
INDUSTRIAL ESTATE SINGAPORE 318996

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount	 	 	+5% GST	 
	Rent at $12.85 per
square metre per
month on 130.1
square metres for
the period 1
October 2005 to 31
October 2005
	 	$	1671.79	 	 	 	 	 	 	$	83.59	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	$2.25 per
square metre per
month on 130.1
square metres for
the period 1
October 2005 to 31
October 2005
	 	$	292.73	 	 	 	 	 	 	$	14.64	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Rent
Payable (inclusive
of Service
Charge)
	 	 	 	 	 	$	1964.52	 	 	$	98.23	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Security
Deposit equivalent
to three (3)
months’ Rent and
Service Charge (in
cash or Banker’s
Guarantee provided
in accordance with
Clause 2.7 of this
letter)
	 	$	5893.56	 	 	 	 	 	 	 	 	 
	 
	Less:
	 	 	 	 	 	 	 	 	 	 	 	 
	Equivalent of
two (2) month’s
Rent and Service
Charge (re
Off-budget Measure
and GIRO)
	 	$	3929.04	 	 	$	1964.52	 	 	 	 	 

 

9

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount	 	 	+5% GST	 
	Stamp fee payable
on Letter of Acceptance
(which we will stamp on your
behalf)
Note: If the Letter is not
returned to us within 14 days
of the date of the Letter,
you will have to pay penalty
on the stamp duty which is
imposed by Stamp Duty Office
of IRAS.
	 	 	 	 	 	$	192.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Sub-Total Payable
	 	 	 	 	 	$	4121.04	 	 	$	98.23	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Add: GST@ 5%
	 	 	 	 	 	$	98.23	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Payable inclusive of GST
	 	 	 	 	 	$	4219.27

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