Exhibit 10.4
[MAXTOR LOGO]
MAXTOR INTERNATIONAL S.A X.X. VAT NR. 512 646
Saint-Honore 2
CH-2001 Neuchatel
SWITZERLAND
LETTER OF GUARANTEE
Bank of China Suzhou Branch:
Maxtor Technology (Suzhou) Co., Ltd (the "borrower") has entered into a Foreign
Exchange Loan Agreement (No. YZDZ (2004) No. 89) on August 16, 2004.
To secure the full performance of the Loan Agreement, Maxtor International
S.a.r.l ("Guarantor") hereby makes its guarantees under the provisions of the
Security Law of the People's republic of China as follows:
1. Maxtor International S.a.r.l shall act as a guarantor and secure the
performance by borrower of all of the obligations under the Loan Agreement.
2. If due to whatever reason that the Loan Agreement has been breached by the
borrower thereunder, Guarantor shall immediately perform its guarantee
obligation unconditionally and effectuate all payment including without
limitation to all the principal, interest, penalty, indemnity and any relevant
expenses to the lenders according to the instructions of the latter.
3. The guarantee made by Guarantor under this Letter shall constitute a joint
liability of Guarantor.
4. The guarantee made under this Letter shall be an irrevocable guarantee, the
validity of which shall continue till the day when all the indebtedness under
the Loan Agreement has been fully discharged.
5. The Execution and performance of this Letter shall be to Guarantor's own
xxxxx and in Guarantor's good faith. Guarantor has obtained all necessary
authority to execute and perform this Letter. Such authorization and the
execution and performance under such authorization shall not contradict any of
the provisions of the by-laws of Guarantor or of any regulations or contract
that have binding force upon Guarantor. All the process concerning the execution
and performance of this Letter has been handled in due course and maintain its
validity.
6. This Letter and the rights and obligations of the parties hereunder shall be
governed by and construed in accordance with the laws of People's Republic of
China.
7. The Guarantor agrees that any legal action or proceeding arising out of or
relating to this Letter may be brought in the courts of People's Republic of
China.
Guarantor:
Signed, by:
Maxtor International S.a.r.l
[ILLEGIBLE] MAXTOR INTL SARL
-------------------------------------- St-Honore 2
Authorised signatory & Company stamp CH-2001 Neuchatel
Switzerland
Date: August 16, 2004
