| Combine      LimitOverdraft      (OD)Standby      Documentary Credits(SDC)Documentary      Credits-      Trust Receipt (TR)Local      Documentary Credits | HKD48,000,000(HKD5,000,000)(HKD7,800,000) (HKD48,000,000)[(HKD48,000,000)](HKD48,000,000) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|

|        Hang      Seng Bank      Limited                                                                                                                                  83      Des Voeux Road Central Hong KongTel      (852) 2198 1111        Fax (852)      2868      4047                                                            Telex      73311 HASEB HX Website      www.hangseng.com                                                                                                  | ISO      14001 certified The      world’s most recognised standardfor      environmental managementsystems |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|

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| -      Trust Receipt under Local   | [(HKD48,000,000)] |
|------------------------------------|-------------------|
| Documentary      Credits (TR       |              |
| under      Local DC)               |              |
| Import      Trade Loans (ITL)      | (HKD35,000,000)   |
| Documents      Against Payment     | (HKD48,000,000)   |
| Documents      Against Acceptance  | (HKD48,000,000)   |
| (DA)                               |              |
| Factoring      Facility (FTG)      | (USD2,400,000)    |
| Bank      Guarantee (GTE)          | (USD1,000,000)    |
| Negotiation      under Documentary | HKD15,000,000     |
| Credits      with discrepancies    |              |
| Total                              | HKD63,000,000     |

|   | (a) | The      aggregate outstanding under OD, SDC, TR, TR under Local DC, ITL, DA, FTG      and GTE facilities shall not at any time exceed    HKD48,000,000. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      aggregate outstanding of all sub-limits shall not at any time exceed the      Facility Limit of that Facility and the Total Facility    Limit. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Overdraft      Facility: | Account No.:      259-229698-001 |
|--------|--------------------------|----------------------------------|

|   |   | Interest: 1%      per annum over BLR on daily balances, payable      monthly in arrears. |
|--------|--------|------------------------------------------------------------------------------------------|

|   |   | Interest on      Unauthorized Overdraft: 8% per annum over      BLR |
|--------|--------|---------------------------------------------------------------------|

|   | Documentary      Credits: | For      issuance of documentary credits for the account of the Borrower      in favour of third parties and covering import of goods      in the ways acceptable to the Bank and/or acceptance      of bills drawn thereunder with tenor up to 120 days. |
|--------|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Trust      Receipt: | For      trust receipt facility relating to goods imported and financed      under the Bank's documentary credits issued for the      account of the Borrower with tenor up to 120 days less any usance/credit      periods granted by the suppliers of the      Borrower. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      interest shall be 2.5% per annum over HIBOR for  HKD loan and 2.5%      per annum over LIBOR for USD loan. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | Local      Documentary Credits: | For      issuance of documentary credits for the account of the Borrower in favour      of third parties / local beneficiaries andcovering import of goods by      calling for simple / insecure shipping evidence satisfactory to the Bank      with tenor up to 120      days. |
|--------|---------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Trust Receipt under      Local :  | For      trust receipt facility relating to goods imported and financed Documentary      Credits under the Bank's Local DC with tenor up to 120      days. |
|--------|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      interest shall be 2.5% per annum over HIBOR for HKD loan and 2.5% per      annum over LIBOR for USD      loan. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | Import      Trade Loans: | For      extension of trade loans to finance the Borrower's import      of goods as evidenced by its suppliers' invoices and      any other relevant documents as required. The availability of any      particular trade loan will be subject to such      conditions as the Bank may decide from time to time with tenor up to 150      days. |
|--------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      interest shall be 2.5% per annum over HIBOR for HKD loan and 2.5% per      annum over LIBOR for USD      loan. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | Standby      Documentary: | The      Borrower shall reimburse the Bank immediately on demand all amounts of      claims under any standby documentary credit issued for its account. Any      amount not reimbursed by it to the Bank shall bear default interest at      such rate as the Bank may at its absolute discretion determine from time      totime. |
|--------|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Documents      Against  Payment:  | For      purchase of documentary export D/P bills drawn on parties      acceptable to the      Bank. |
|--------|--------------------------------------------------|------------------------------------------------------------------------------------------------------|

|   | Documents      Against  Acceptance:  | For      purchase of documentary export D/A bills drawn on parties      acceptable to the Bank with tenor up to 120      days. |
|--------|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      interest shall be 2.5% annum over HIBOR for HKDloan and 2.5% per annum over LIBOR for      USD loan. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | Negotiation      under Documentary      Creditswith discrepancies: | For      negotiation of discrepant documents, secured or unsecured      by goods, presented under export documentary credits      issued by banks acceptable to the      Bank. |
|--------|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Factoring Facility: | Subject      to terms and conditions set out in separate letter issued      by the Bank’s Customized Trade Solutions Department. |
|--------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Bank Guarantee: | For      issuance of bank guarantee for the account of the Borrower      in favour of third parties in the ways acceptable to      the  Bank. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Commission      will be charged at 1.5% per annum on the amount of each guarantee to be      issued. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | (1) | Guarantee dated 31      January 2000      for unlimited amount from Bonso Electronics International    Inc. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (1) | The      Borrower shall provide to the Bank a certified copy of the financial      statements on a quarterly basis. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

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|   | (2) | Bonso      Electronics International Inc and all of its subsidiaries/associated      companies shall not create or permit to subsist any mortgage, pledge,      lien, charge, assignment or other security interest over any of its assets      without the Bank's prior writtenconsent. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | The      Borrower and the corporate guarantor(s) shall provide to the Bank a      certified copy of its annual audited accounts/financial statements within      180 days after the end of each financial year and such other relevant      financial information as the Bank may from time to time reasonably      request. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Queries      on             | Name                    | Telephone      No. |
|-----------------------------|-------------------------|--------------------|
| Banking      arrangement    | Mr.      Angus Wong     | 21985998           |
| Factoring      arrangement  | Ms.      Katrine Lee    | 21988512           |
| Insurance                   | Mr.      Stanley Ng     | 21982703           |
|                        | Mr.      John Li        | 21982522           |
| Remittance                  | Mr.      Billy Chow     | 21984534           |
|                        | Remittance      Hotline | 21986919           |
| Wealth      management      | Ms.      Michelle Wong  | 21985534           |
| Execution      of documents | Ms.      Angel Lui      | 21984817           |
|                        | Ms.      Teresa Chan    | 21984816           |

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