Exhibit
10.17


Our Ref No. WBG/07/0558 


9 May 2007


Atlantic Components Limited

Flat B24, 1/F., Block B,

Proficient Industrial Centre,

6 Wang Kwun Road,

Kowloon Bay,
Kowloon.


Attention: Mr. Yang Chung Lun,
Director


Dear Sirs,


FACILITY LETTER


CITIC Ka Wah Bank Limited (the “Bank”) is pleased to inform you that it
will consider requests made by the Borrower
specified below for the following banking facilities (the “Facilities”) on the following terms and conditions.
The terms set out in this
facility letter supersede and replace those set out in the previous facility letter.


	
 

	
 


	
A.

	
BORROWER:


	
 

	
 


	
 

	
Atlantic
 Components Limited 


	
 

	
 


	
B.

	
FACILITIES AND LIMITS:


	
 

	
 


	
 

	
General Banking Facilities








	
 

	
 

	
 

	
 


	
Type(s) of Facility 

	
 

	
Facility Limit(s) 


	


	


	


	



	
1.

	
Trade Finance 

	
 

	
 


	
 

	
 

	
 

	
 


	
 

	
available subject to individual facility limit(s) below: 

	
 

	
 


	
 

	
 

	
 

	
 


	
 

	
Import Invoice Financing

	
 

	
HKD13,000,000.00  


	
 

	
 

	
 

	
 


	
2.

	
Overdraft

	
 

	
HKD1,000,000.00 


	
 

	
 

	
 

	



	
 

	
 

	
 

	
 


	
 

	
Total Facility
 Limit:

	
 

	
HKD13,000,000.00


	
 

	
 

	
 

	



	
 

	
 

	
 

	
 


	
Remarks: 

	
 

	
 


	
 

	
 

	
 

	
 


	
•

	
The aggregate outstandings of all
 the above Facilities shall not at any time exceed the Total Facility Limit.





1



	
 

	
 


	
CITIC KA WAH
 BANK LIMITED

	
232 Des
 Voeus Road Central, Hong Kong Cable: “KWABANK”
 Telex: 74636 KWBNK HX SWIFT: “KWHKHKHH”


	
 

	
Fax: (852)
 3603 4000 Tel: (852) 3603 6633













	
 

	
 


	
Our Ref No

	
:  WBG/07/0558


	
Borrower

	
:  Atlantic
 Components Limited








	
 

	
 


	
C. 

	
FACILITIES CONDITIONS:


	
 

	
 


	
1.

	
Trade Finance


	
 

	
 


	
 

	
Interest: 0.5%
 per annum below Prime or 3% per annum over 1-month HIBOR, whichever is higher.


	
 

	
 


	
 

	
Handling fee under Import Invoice
 Financing:


	
 

	
 


	
 

	
HKD Bills
 Commission is waived.


	
 

	
 


	
 

	
Maximum
 tenor/advance percentage for:


	
 

	
 


	
 

	
Import
 Invoice Financing: up to 45 days from drawdown date.


	
 

	
 


	
 

	
Other
 Conditions for Import Invoice Financing:


	
 

	
 


	
 

	
List of
 approved suppliers and individual limit(s) are subject to the Bank’s approval
 from time to time.


	
 

	
 


	
2.

	
Overdraft


	
 

	
 


	
 

	
Interest: Prime or
 3.5% per annum over 1-month HIBOR, whichever is higher, payable monthly in arrears. Accured interest, if not so paid, shall
 be capitalized as principal and bear interest accordingly.


	
 

	
 


	
Facilities Fees:


	
 

	
 


	
An annual
 fee in such amount as the Bank
 may prescribe is payable in October of each year for so long as the Facilities continue.


	
 

	
 


	
D.

	
SECURITY AND CONDITIONS PRECEDENT


	
 

	
 


	
The following documents, items and evidence (both in the
 form and substance satisfactory to the Bank) shall be delivered to the
 Bank prior to submitting any drawdown notice to the Bank:-


	
 

	
 


	
1.

	
This letter
 duly signed by the Borrower, the guarantor and the security provider.


	
 

	
 


	
2.

	
A Charge on
 Cash Deposit(s) duly executed by the Borrower in favour of the Bank in a principal amount of not less than
USD700,000.00 or equivalent
 value in other approved currency(ies) at the
 lending ratio determined by the Bank.


	
 

	
 


	
3.

	
A Guarantee
 and Indemnity duly executed by Yang Chung Lun (the “Personal Guarantor”) for an unlimited
amount.


	
 

	
 


	
4.

	
A First
Legal Charge/Mortgage over the property at Workshop No. B10 on 1st Floor of
Block B, Proficient Industrial Centre, No. 6
Wang Kwun Road, Kowloon (the “Mortgaged
Property”) in the
name of Solution Semiconductor (China) Limited duly executed in favour of the
Bank. 


	
 

	
 


	
5.

	
Such other
 documents, items or evidence that the Bank may require from time to time.





2


	
 

	
 


	
CITIC KA WAH
 BANK LIMITED

	
232 Des
 Voeus Road Central, Hong Kong Cable: “KWABANK”
 Telex: 74636 KWBNK HX SWIFT: “KWHKHKHH”


	
 

	
Fax: (852)
 3603 4000 Tel: (852) 3603 6633












	
 

	
 


	
Our Ref No.

	
:  WBG/07/0558


	
Borrower

	
:  Atlantic
 Components Limited








	
 

	
 


	
E.

	
UNDERTAKINGS


	
 

	
 


	
 

	
The
 Borrower shall provide the Bank with its accounts receivable aging report on
 a semi-annual basis.


	
 

	
 


	
F.

	
OTHER TERMS AND CONDITIONS


	
 

	
 


	
1.

	
Each
 application made by the Borrower to use any of
 the Facilities in whole or in part shall be a request by it to the Bank to extend financing on the
 terms and conditions set out or referred to in this letter. No commitment by the Bank to extend any
 financing shall arise until any application by
 the Borrower for such financing is accepted by the Bank either expressly or
 by its extending such financing to the Borrower.


	
 

	
 


	
2.

	
Notwithstanding
 any provision stated in this letter, the Facilities are repayable on demand
 by the Bank. The Bank has the overriding
 right at any time to require immediate payment and/or cash collateralization of all or any sums
actually or contingently owing to it under
 the Facilities. This letter stipulates the
 terms and conditions applicable to the Facilities, if granted, and does not oblige the Bank to extend any
financing to the Borrower.


	
 

	
 


	
3.

	
The Bank may
 at any time immediately modify, terminate, cancel or suspend the Facilities
 or vary the terms applicable to the
 Facilities without the consent of any party and without subject to any
 conditions.


	
 

	
 


	
4.

	
The Bank’s Standard Terms for Banking Facilities (2007 Edition) attached
 and/or referred to this letter
 forms an integral part of this letter and the Borrower agrees to observe and
 be bound in by the Bank’s Standard Terms for Banking Facilities.


	
 

	
 


	
5.

	
Please note
 that Section 83 of the Banking Ordinance has imposed on the Bank certain limitations on advance to persons related
to its
 directors and employees. In signing this letter, the Borrower confirms to the Bank that it is not in any
 way related to the Bank’s directors or employees
 within the meaning of Section 83. The Borrower undertakes to advise the Bank
 promptly in writing if it becomes so related subsequent to the signing of
 this letter.


	
 

	
 


	
6.

	
This letter
 shall be governed by and constructed in accordance with the laws of Hong Kong Special Administrative
Region.





Please confirm your agreement to the terms and conditions of
this letter (incorporating the Bank’s Standard
Terms for Banking Facilities (2007 Edition) attached and/or referred to this
letter) by signing and returning to us the duplicate
of this letter to Mr. Thomas Lam
of our Commercial Banking at 9/F., Lippo
Center, Tower 1, 89 Queensway, Hong Kong by 30
May 2007.


If the
Borrower utilizes the Facilities (or any of them) on or after 30 May 2007, the Borrower shall be deemed to have agreed to and
accepted the terms
and conditions set out above and the Bank’s Standard Terms for Banking
Facilities (2007 Edition).


3


	
 

	
 


	
CITIC KA WAH
 BANK LIMITED

	
232 Des
 Voeus Road Central, Hong Kong Cable: “KWABANK”
 Telex: 74636 KWBNK HX SWIFT: “KWHKHKHH”


	
 

	
Fax: (852)
 3603 4000 Tel: (852) 3603 6633












	
 

	
 


	
Our Ref No.

	
:  WBG/07/0558


	
Borrower

	
:  Atlantic
 Components Limited





Should you have any queries on the completion of the required documents,
please do feel free to contact our Ms.
Anna Chan at 3603 2077. For queries on banking arrangements, please contact our
Mr. Thomas Lam at 3606 6196 at any time.


	
 

	
 

	
 


	
Yours
 faithfully,

	
 

	
 


	
For and on
 behalf of

	
 

	
For and on behalf of


	
CITIC Ka Wah
 Bank Limited

	
 

	
CITIC Ka Wah Bank Limited


	
 

	
 

	
 


	


	
 

	



	


	
 

	



	
Frankie Lam

	
 

	
Thomas Lam


	
Vice President

	
 

	
First Vice
 President and Team Head


	
Credit
 Administration

	
 

	
Commercial
 Banking


	
 

	
 

	
 


	
FL/ac/sc

	
 

	
 





4


	
 

	
 


	
CITIC KA WAH
 BANK LIMITED

	
232 Des Voeus
 Road Central, Hong Kong Cable: “KWABANK”
 Telex: 74636 KWBNK HX SWIFT: “KWHKHKHH”


	
 

	
Fax: (852)
 3603 4000 Tel: (852) 3603 6633