Exhibit 10.16


	
 

	
 


	
CONFIDENTIAL


	
  

 
	
Our Ref

	
:     WBG/07/0310


	
Date

	
:     14 March 2007





Atlantic Components Limited

B24-B27, 1/F., Block B,

Proficient Industrial Centre,

6 Wang Kwun Road,

Kowloon Bay, Kowloon.


Attention: Mr. Yang Chung
Lun, Director


Dear Sirs,




	
 

	
 


	
Re:

	
 Facility Letter Amendment (“Supplemental Facility Letter”)


	
 


	
1.

	
We, CITIC Ka Wah Bank
 Limited (the “Bank”), refer to our facility letter to you (the “Borrower”)
 set out in the following table (the “Facility Letter”), pursuant to which certain
 general banking facilities (the “Facilities”) are granted to the Borrower on
 the terms and conditions therein mentioned.








	
 

	
 


	
 

	
Facility Letter


	
 

	

A
 facility letter dated 1 November 2006 (Our Ref: WBG/06/4355)








	
 

	
 


	
2.

	
Subject to paragraph 3 hereof, the Bank agrees to vary the
 terms and conditions of the Facility Letter as described in the following
 table:








	
 

	
 

	
 


	
 

	
Amendment of Security under Clause 6


	
 

	
 

	
 


	
 

	
The deletion of the table
 for item ii under Securities in Clause 6.1 and the substitution thereof the
 following:


	
 

	
 

	
 


	
 

	
ii.

	
Fixed charge of the
 following deposit(s) (the “Deposit(s)”) placed with the Bank. 


	
 

	
 

	
 


	
 

	
 

	
Deposit(s):

Charge on Cash Deposit(s)
 for an amount of not less than
 USD700,000.00 or equivalent value in other approved currencies at lending
 ratio as determined by the Bank.

(Security Provider: the
 Borrower)








	
 

	
 


	
3.

	
The Bank agrees to the
 amendments referred to in paragraph 2 above which will be or will deem to be effective on the
 condition that the Bank shall receive the following documents in form and
 substance satisfactory to the Bank:








	
 

	
 

	
 


	
 

	
Documents


	
 

	
 

	
 


	
 

	
i.

	
The duplicate copy of this
 Supplemental Facility Letter duly signed by the Borrower indicating its
 acceptance of the amended terms and conditions set out herein and duly signed
 by the Security Provider and the Personal Guarantor. 


	
 

	
 

	
 


	
 

	
ii.

	
Charge on Cash Deposit(s)
 duly executed by the Borrower in favour of the Bank. 


	
 

	
 

	
 


	
 

	
iii.

	
Negative Disclosure Notice
 of deposit Protection Scheme duly signed by the Borrower. 





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












	
 

	
 


	
CONFIDENTIAL


	
  

 
	
Our Ref

	
:   WBG/07/0310


	
Borrower

	
:   Atlantic Components
 Limited








	
 

	
 

	
 


	
 

	
iv.

	
Borrower’s Board Resolutions certified by any director(s)
 by the Borrower.


	
 

	
 

	
 


	
 

	
v.

	
Any other documents as may reasonably be requested
 by the Bank from time to time.


	
 

	
 

	
 


	
4.

	
To avoid doubt save and except the amendments
 referred to in this Supplemental Facility Letter, all the terms and conditions of the Facility Letter
 shall remain in full force and effect.





Kindly sign and return to us the duplicate of this Supplemental Facility Letter to
indicate your acceptance by 4 April 2007
and if not accepted by that date, unless extended by the Bank at its sole and
absolute discretion, this offer will be deemed to have lapsed.


Should you have any queries on the completion of the
required documents, please do feel free to contact our Mr. Billy Wong at 3603
2045. For queries on banking arrangements, please contact our Ms. Karen Fan at
3603 6667 or Mr. Thomas Lam at 3603 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

 Vice President

 Credit Administration

	
 

	
Thomas Lam

 First Vice President and Team Head

 Commercial Banking





FL/bw/jt


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