{"id":40940,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/contract-on-multi-purpose-loan-finisar-shanghai-inc.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"contract-on-multi-purpose-loan-finisar-shanghai-inc","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/finance\/contract-on-multi-purpose-loan-finisar-shanghai-inc.html","title":{"rendered":"Contract on Multi-Purpose Loan – Finisar Shanghai Inc."},"content":{"rendered":"<\/p>\n

XIAMEN INTERNATIONAL BANK SHANGHAI BRANCH<\/strong>\n<\/p>\n

CONTRACT ON MULTI-PURPOSE LOAN<\/strong><\/p>\n

No.: GAS09012<\/strong><\/p>\n

Party A (Loanee): FINISAR SHANGHAI INC.<\/p>\n

Address: 66 Huiqing Road, East Area, Zhangjiang Hi-Tech Park, Shanghai<\/p>\n

Party B (Loaner): Xiamen International Bank Shanghai Branch<\/p>\n

Address: Unit A, 4\/F, Yonghua Tower, 138 Pudong Avenue, Shanghai<\/p>\n

Whereas,<\/p>\n\n\n\n
<\/td>\n<\/td>\n\n

After a bilateral consultation by the parties concerned, Party B has agreed
\nto grant the following loan for use by Party A, and the Contract is hereby
\nformulated to clarify their respective economic responsibilities:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

1.<\/p>\n<\/td>\n

<\/td>\n\n

Amount of Loan:<\/p>\n<\/td>\n

<\/td>\n\n

Five Million Five Hundred Thousand USD Only (USD5,500,000.00).<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

2.<\/p>\n<\/td>\n

<\/td>\n\n

Valid Term of Loan:<\/p>\n<\/td>\n

<\/td>\n\n

Commencing on January 7, 2010 and concluding on January 6, 2013. Upon the
\ntermination of the valid term, the unused loan amount shall automatically cease
\nto be effective.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

3.<\/p>\n<\/td>\n

<\/td>\n\n

Interest Rate of Loan and Calculation of Interest:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n
<\/td>\n\n

3.1<\/p>\n<\/td>\n

<\/td>\n\n

Interest Rate of Loan:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n\n

The London Inter-Bank Offered Rate (LIBOR) for USD (loan currency): (3-month
\nterm) LIBOR + 2.3% (annual interest rate). The LIBOR value at the time of the
\nwithdrawal of the loan amount shall be based on that as published by Reuters at
\nthe LIBOR upon the date of withdrawal of the loan amount granted when the loan
\ninterest is beginning to be calculated, with an adjustment to be made once every
\nthree months. The interest rate, once adjusted, shall be promptly executed.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

3.2<\/p>\n<\/td>\n

<\/td>\n\n

Calculation of Interest<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
<\/td>\n\n

3.2.1<\/p>\n<\/td>\n

<\/td>\n\n

If the interest starts to be calculated on the date of the actual withdrawal
\nby Party A, the interest payable shall be: the loan amount<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n\n

withdrawn loan interest rate (annual interest rate) the number of<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n\n

days when the loan amount is used – 360.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
<\/td>\n\n

3.2.2<\/p>\n<\/td>\n

<\/td>\n\n

Settlement of Interest:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n\n

Within the valid period of this Contract, Party B shall charge loan interest
\non quarterly basis, the settlement date being the last banking day at the end of
\neach three months (one day earlier in case of a legal holiday). Party A shall
\nrepay the interest as due on the day of settlement of interest. The first day
\nfor repayment of interest shall be the first day of settlement of interest after
\nthe issuance of the loan amount.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
\n

4.<\/p>\n<\/td>\n

<\/td>\n\n

Purpose of Loan<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

The loan under this Contract shall be used for turnover of current capital.\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

5.<\/p>\n<\/td>\n

<\/td>\n\n

Application of Loan Amount<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n
<\/td>\n\n

5.1<\/p>\n<\/td>\n

<\/td>\n\n

Within the valid loan period, Party A shall make a written application to
\nParty B in two banking days in advance before his withdrawal of each loan amount
\nfor use. Party B has the right to unilaterally decide if the loan amount should
\nbe granted to Party A. With the approval by Party B after a due examination
\nprocedure, Party A may proceed to the use of the loan amount.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

5.2<\/p>\n<\/td>\n

<\/td>\n\n

Within the valid loan period, the amount, duration and purpose of each loan
\namount for use shall be based on the corresponding business vouchers (including
\nbut not limited to debit notes).<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

5.3<\/p>\n<\/td>\n

<\/td>\n\n

The balance total under the use items of each of the sub-items of the loan
\nshall not exceed the total of the loan amount under this Contract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

5.4<\/p>\n<\/td>\n

<\/td>\n\n

Within the valid loan period, Party A may use the loan amount cyclically.\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

6.<\/p>\n<\/td>\n

<\/td>\n\n

Repayment of Principal and Interest<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
<\/td>\n\n

6.1<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall repay as due the principal and interest as specified in this
\nContract. When repayment of the loan amount is made, the interest corresponding
\nto the loan amount shall be cleared up in full. The repayment of the principal
\nand interest amount shall be made all in the same currency as the original.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

6.2<\/p>\n<\/td>\n

<\/td>\n\n

Party A, who has presented his notice on premature repayment, may also<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

2<\/p>\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/p>\n

make premature repayment of all or part of the loan amount yet to be due.\n<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

6.3<\/p>\n<\/td>\n

<\/td>\n\n

In case the repayment of the principal or interest is due or overdue, Party A
\nshall have the right to deduct the amount from the account of Party A to cover
\nthe principal, the penalty interest for overdue repayment, and the compound
\ninterest. Party A, however, should give Party B a notice to that effect in
\nadvance.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

7.<\/p>\n<\/td>\n

<\/td>\n\n

Guarantee:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

8.<\/p>\n<\/td>\n

<\/td>\n\n

Business Contact:<\/p>\n<\/td>\n

<\/td>\n\n

(Tick your appropriate option selected in the corresponding box according to
\nthe examination and approval requirements.)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

o<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8.1<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

The recovered amount from the sales or business income of Party A is to be
\ntransferred into the deposit account of Party A established with Party B. The
\nsaid recovered amount does not include the amount that is intended by Party A
\nfor repayment of the loan amount to Party B and that has been transferred into
\nthe said deposit account.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

o<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8.2<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Businesses on the part of Party A with regard to settlement, sales and
\nremittance as well as buying and selling transactions of foreign exchange are to
\nbe conducted through Party B.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

o<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8.3<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Import and export settlement businesses on the part of Party A are to be
\nconducted through Party B.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

o<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

8.4<\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Others:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

9.<\/p>\n<\/td>\n

<\/td>\n\n

Other Terms and Conditions:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

9.<\/p>\n<\/td>\n

\n

1<\/p>\n<\/td>\n

\n

Party A shall also abide by the following provisions:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
<\/td>\n\n

9.1.1<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall observe the restrained targets as set by Party B for the
\nfinancial affairs.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

9.1.2<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall keep Party B informed of his external guarantee regularly, and
\nguarantee that the information and the amount of the external guarantee as
\nprovided for Party B are complete, true and accurate.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

3<\/p>\n\n\n\n\n\n
<\/td>\n<\/p>\n

9.1.3<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall report truthfully to Party B on the use of each loan amount,
\nand promise that the loan amount borrowed from Party B will not be used in any
\nform in the stock exchange market or the futures market, nor will it be used in
\nthe investment of an equity nature or in any other activity in violation of the
\nlegal restriction or ban on the use of the loan.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

9.1.4<\/p>\n<\/td>\n

<\/td>\n\n

Party B shall not make any of the executive business assets as part of an
\nexternal guarantee, unless consented to in writing by Party B.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n\n

9.2<\/p>\n<\/td>\n

<\/td>\n\n

Party A may draw out the amount of not more than USD4,500,000 under this loan
\ncontract, and Party B shall decide, depending on the business status and
\nbusiness transactions of Party A after a six-month contact by Party B with Party
\nA, as to whether the remaining amount of USD1,000,000 shall be granted.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

9.3<\/p>\n<\/td>\n

<\/td>\n\n

Party B has the right to make an adjustment each year to the loan interest
\nrate under this Contract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

9.4<\/p>\n<\/td>\n

<\/td>\n\n

The time for withdrawal of the amount under this loan contract shall not
\nexceed the annual inspection day as undertaken in the Letter of Commitment on
\nAnnual Inspection.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

9.5<\/p>\n<\/td>\n

<\/td>\n\n

Within the valid loan period, the scale of the international settlement of
\nParty A at Party B shall not be lower than USD12,000,000, and shall not be lower
\nthan USD3,000,000 for each three months, which shall be placed under inspection
\non quarterly basis.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

9.6<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall enjoy the right of priority in placing any pledge under the
\nmortgage of Party B.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

10.<\/p>\n<\/td>\n

<\/td>\n\n

Declaration and Commitment:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n
<\/td>\n\n

10.1<\/p>\n<\/td>\n

<\/td>\n\n

Party A has carefully read this Contract and has fully understood and
\naccepted the content of this Contract. Party A has signed and promised to
\nperform this Contract of his own free will, and has truly expressed his
\nmeanings.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.2<\/p>\n<\/td>\n

<\/td>\n\n

Party A guarantees to use the loan for a purpose which is proper and lawful,
\nand to abide by laws in his business operation.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.3<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall provide Party B, on quarterly basis, with information about his
\nfinancial and accounting status, production and business status, and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

4<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/p>\n

other relevant written explanatory statements. Party A shall actively
\ncooperate Party B in and conscientiously accept the inspection and surveillance
\nof Party B over his production and business operation, his financial activities,
\nand the use of the loan amount under this Contract. All the documents,
\nmaterials, statements and vouchers provided by Party A under this Contract are
\ntrue, complete, correct and effective.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.4<\/p>\n<\/td>\n

<\/td>\n\n

Party A, during the valid period of the loan, shall promptly keep Party B
\ninformed of any change in the name, the legal representative (chief), address
\nand business scope of Party A.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.5<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall give Party B a 30-day written notice and demand a proper
\nperformance of settlement of and guarantee for the debt, in case of an
\noccurrence to Party A, during the valid period of the loan, that may
\nsufficiently affect the realization of the creditor153s right of Party B,
\nincluding decrease in registered capital, contracting, lease, stock system
\nreformation, cooperated business operation, re-grouping, merge, branching, joint
\nventure, application for suspension of business for rehabilitation, application
\nfor dissolution of business, and application for bankruptcy.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.6<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall give Party B an immediate written notice and demand a proper
\nperformance of settlement of and guarantee for the debt, in case of an
\noccurrence to Party A, during the valid period of the loan, that may cause a
\nsignificant unfavorable impact on the his ability to clear up his debt,
\nincluding suspension of production, close-down of business, cancellation of
\nregistration, withdrawal of business license, engagement of the board director,
\nstockholder, authorized representative or business chief in an illegal activity
\nor involvement in major procedural activity, serious frustration in business,
\nand worsening of financial status.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.7<\/p>\n<\/td>\n

<\/td>\n\n

Party A, who intends to provide guarantee, mortgage, hypothecation or any
\nother form of guarantee that may affect the creditor153s claim of Party B, shall
\nask Party B first for consent in writing.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

10.8<\/p>\n<\/td>\n

<\/td>\n\n

Party A shall undertake the expenses involved in this Contract, including
\nattorney fee, insurance fee, appraisal fee, registration fee, care-taking
\nservice charge, verification fee and notarization fee.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

11.<\/p>\n<\/td>\n

<\/td>\n\n

Breach Incident:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

11.1<\/p>\n<\/td>\n

<\/td>\n\n

Party A has violated the provisions of this Contract, or has acted against
\nhis declaration and commitment to Party B.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

5<\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/p>\n

11.2<\/p>\n<\/td>\n

<\/td>\n\n

Cross-Violation Provisions:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n\n

Party A, who has violated an agreement of a financing nature with Party B, or
\nhas been involved in a major legal procedure or arbitral procedure, or in some
\nother legal dispute that may affect or impair or has affected or impaired the
\nright and interest under this Contract, shall be regarded as having committed an
\nact of breach against this Contract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

11.3<\/p>\n<\/td>\n

<\/td>\n\n

The indexes indicating Party A153s credit degree, earning capacity, asset
\nliability rate, and net cash circulation in business activities are no longer
\nable to meet the requirements of Party B for grant of loan, or there has been a
\nmajor change in the production and business or in the financial status of Party
\nB, which has brought about a serious negative impact on the security of this
\nloan.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

11.4<\/p>\n<\/td>\n

<\/td>\n\n

Any other instance that Party B deems as sufficient to influence the
\nperformance by Party A of his obligations.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n
\n

12.<\/p>\n<\/td>\n

<\/td>\n\n

Settlement of Dispute:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Party B shall have the right to take any one or a number of the following
\nmeasures in case of a breach act against this Contract:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n
<\/td>\n\n

12.1<\/p>\n<\/td>\n

<\/td>\n\n

Execute a corresponding adjustment, cancellation or suspension of the loan
\nunder this Contract, or an adjustment to the expiry date for the loan under this
\nContract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

12.2<\/p>\n<\/td>\n

<\/td>\n\n

Suspend the grant of the loan under this Contract, announce prompt expiration
\nof the loan, and demand that Party A immediately repay the relevant principal
\nand interest of the loan and pay the relevant expenses.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

12.3<\/p>\n<\/td>\n

<\/td>\n\n

Charge a compound interest on the interest unpaid by Party A as scheduled
\n(including all or part of the prematurely due loan interest to be paid to Party
\nB), beginning from the following day after the day interest is due, on the basis
\nof the penalty interest rate for delay in repayment as specified in Clause 12.
\n4.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

12.4<\/p>\n<\/td>\n

<\/td>\n\n

Charge an interest on the overdue loan amount (including all or part of the
\nprematurely due loan principal to be repaid to Party B) on the basis of the
\npenalty interest rate for delay in repayment as agreed on in this clause. The
\npenalty interest rate for delay in repayment includes the following: aside from
\nthe interest to be paid on the basis of the interest rate as agreed on in Clause
\n3. 1 under this Contract, Party A shall pay separately to Party B the penalty
\ninterest for the delay in repayment on the overdue loan<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

6<\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/p>\n

amount yet to be repaid, beginning from the day of delay in the repayment of
\nthe loan amount till the principal is cleared up. The penalty interest rate for
\ndelay in repayment shall be 50% of the loan interest rate as agreed on in Clause
\n3. 1 of this Contract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

12.5<\/p>\n<\/td>\n

<\/td>\n\n

Party A, who has failed to use the loan amount as specified in this Contract,
\nshall undertake a contractual fine to Party B for the loan amount misused
\nbeginning from the date of the said misuse till the principal is cleared up. The
\nrate of the contractual fine shall be 100% of the loan interest rate as agreed
\non in Clause 3. 1 of this Contract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

12.6<\/p>\n<\/td>\n

<\/td>\n\n

Party B may deduct the amount of the overdue loan principal, the interest,
\nthe penalty interest, the compound interest and the contractual fine directly
\nfrom the account of Party A.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\n

12.7<\/p>\n<\/td>\n

<\/td>\n\n

Party B shall have the right to demand that Party A provide Party B with a
\nnew guarantee acceptable to Party B.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

13.<\/p>\n<\/td>\n

<\/td>\n\n

The actual business vouchers (including but not limited to the loan
\ninstruments) and other relevant legal documents shall form an inseparable part
\nof this Contract.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

14.<\/p>\n<\/td>\n

<\/td>\n\n

This Contract shall come into force after the signature and seal by Party A
\nand Party B and after the completion of the terms and conditions for loan as
\nspecified in this Contract (if applicable). This Contract stays effective till
\nall the loan principal and interest, the penalty interest, the compound interest
\nand other expenses under this Contract are cleared up by Party A.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

15.<\/p>\n<\/td>\n

<\/td>\n\n

The invalidity of all or part of the provisions under this Contract shall not
\naffect the validity of the provisions on guarantee.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

16.<\/p>\n<\/td>\n

<\/td>\n\n

This Contract is governed by the laws of the People153s Republic of China. In
\ncase of a dispute arising from the performance of this Contract, the case shall
\nbe filed for a decision to the local People153s Court in the area of which Party B
\nis located. During the period of the legal procedure, the provisions that are
\nnot involved in the dispute shall continue to be implemented.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

17.<\/p>\n<\/td>\n

<\/td>\n\n

Other provisions agreed on:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

18.<\/p>\n<\/td>\n

<\/td>\n\n

This Contract is made in three copies to be held one copy by Party A and two
\ncopies by Party B. All the three copies are of equal legal validity.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

7<\/p>\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/p>\n

Party A: (Personal Seal):<\/p>\n<\/td>\n

<\/td>\n\n

Party B:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

FINISAR SHANGHAI INC.<\/p>\n<\/td>\n

<\/td>\n\n

XIAMEN INTERNATIONAL BANK<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

SHANGHAI BRANCH<\/p>\n<\/td>\n<\/tr>\n

\n

(Seal)<\/p>\n<\/td>\n

<\/td>\n\n

(Seal)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Legal Representative<\/p>\n<\/td>\n

<\/td>\n\n

Legal Representative<\/p>\n<\/td>\n<\/tr>\n

\n

(or Authorized Representative):<\/p>\n<\/td>\n

<\/td>\n\n

(or Authorized Representative):<\/p>\n<\/td>\n<\/tr>\n

\n

(Signature\/Seal)<\/p>\n<\/td>\n

<\/td>\n\n

(Seal)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Zhang Dapeng (Seal)<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Date Signed: January 6, 2010<\/p>\n

Place Signed: Shanghai Pudong New Area<\/p>\n

Witness: Fang Jingjing (Signature)<\/p>\n

8<\/p>\n

<\/p>\n

Letter of Commitment on Annual Inspection<\/strong>\n<\/p>\n

Xiamen International Bank Shanghai Branch:<\/p>\n

Your Bank and this Company have entered into the Contract on Multi-Purpose
\nLoan153 (No.: GAS09012) (Loan Contract153), agreeing that your Bank shall grant a
\nmulti-purpose loan amounting to Five Million Five Hundred Thousand USD only
\n(USD5,500,000.00) to this Company for a period commencing on January 7, 2010 and
\nconcluding on January 6, 2013. This Company has hereby made the following
\ncommitment that during the said loan period, your Bank shall have the right to
\nconduct an annual inspection of the business status of this Company prior to
\nJanuary 6 each year (annual inspection day); and shall have the right to decide
\nif this Company is allowed to continue the use of the loan amount under the Loan
\nContract. If this Company has proved to have abided by the provisions of the
\nLoan Contract and if your Bank shall still decide to dissolve the Loan Contract
\nafter your inspection, the Loan Contract shall then be terminated on January 6
\nof the year. Your Bank shall have the right to demand claims from this Company
\nand the guarantor in accordance with the then situation upon the termination of
\nthe loan.<\/p>\n

This Letter of Commitment on Annual Inspection, once formulated, shall be
\nirreversible and irrevocable.<\/p>\n

This Letter of Commitment on Annual Inspection forms a supplementary document
\nto the Loan Contract and an inseparable part of the Loan Contract.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Committed By:<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

(Common Seal and Signature of Authorized Signatory)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Zhang Dapeng (Seal)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

FINISAR SHANGHAI INC.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

(Seal)<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

Dated: January 6, 2010<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Witnessed By: Fang Jingjing (Signed)<\/p>\n

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