Document:

exv4w8

Exhibit 4.8

Contract on Trade Finance Amount

Contract No.: Jie 2010 Rong 0112011R

	 	 	 

	Party A:

	 	Namtai Electronic (Shenzhen) Co., Ltd.
	Address:

	 	Namtai Industrial Estate, 2 Namtai Road, Gushu, Xixiang, Baoan, Shenzhen

Statutory Representative (Principal): Koo Ming Kown     Postal Code: 518126

Fax: 0755-27491097     Tel.: 0755-27490666

	 	 	 

	Party B:

	 	China Construction Bank Corporation, Shenzhen Branch
	Address:

	 	Block A, Rongchao Business Centre, 6003 Yitian Road, Futian District,
Shenzhen

Statutory Representative (Principal): Tian Huiyu     Postal Code: 518026

Fax: 0755-27789927     Tel.: 0755-27754225

For purpose of enhancing the cooperation between Party A and Party B on import and export trade
finance business, Party B, upon the request of Party A and in the event that the requirement of
Party B is met, agrees to provide trade finance amount to Party A. In order to clarify rights and
obligations of both parties, Party A and Party B, complying with relevant laws and regulations and
rules and based on consensus through negotiation, conclude this Contract for both parties hereof to
abide by.

Article 1 Trade Finance Amount

The trade finance amount defined in the Contract refers to the limit of trade finance capital
principal balance provided by the Party B to Party A under certain conditions during the effective
period of the trade finance amount agreed in the Contract. At any time point of the effective
period of the agreed trade finance amount, as long as the trade finance capital balance occupied or
unpaid by Party A is less than the trade finance amount, Party A may apply for trade finance
successively according to the stipulations of the Contract without the limitation of times, but the
sum of the trade finance amount applied by Party A and the trade finance capital principal balance
hereunder occupied or not paid by Party A shall be less than the trade finance amount.

 

 

Article 2 Varieties and Amount of Trade Finance Amount

Party B agrees to provide a total trade finance amount, the maximum of which shall be less than
(currency) USD (amount in capital letters) SIX MILLION ONLY, wherein, the involved
varieties and amount of each sub-item are as follows:

1. The equivalent amount for issuing a sight L/C with property in goods controllable by Party B
(currency and amount in capital letters): USD SIX MILLION ONLY;

2. The equivalent amount of issuing a sight L/C with property in goods uncontrollable by Party B
(currency and amount in capital letters): USD SIX MILLION ONLY;

3. The equivalent amount of issuing a usance L/C with an acceptance term less than 90 (ninety) days
(including 90 days) (currency and amount in capital letters): USD SIX MILLION ONLY;

4. The equivalent amount of issuing a usance L/C with an acceptance term of 90 (ninety) days
(included) (currency and amount in capital letters):    /   ;

5. The equivalent amount of the trust receipt loan under L/C (currency and amount in capital
letters): USD SIX MILLION ONLY;

6. The equivalent amount of the trust receipt loan not under L/C (currency and amount in capital
letters): USD SIX MILLION ONLY;

7. The equivalent amount of the shipping guarantee (currency and amount in capital letters):
   /   ;

8. The equivalent amount of the packing loans (currency and amount in capital letters):    /   ;

9. The equivalent amount of the export bills negotiation (currency and amount in capital letters):
   /   ;

10. The equivalent amount for negotiation of drafts under L/C (currency and amount in capital
letters):    /   ;

11. The equivalent amount for bill of exchange discounted / receivable buy-in under usance L/C
(currency and amount in capital letters):    /   ;

 

 

12. The equivalent amount of the export bills of collection facility under document against payment
(D/P) (currency and amount in capital letters):    /   ;

13. The equivalent amount of the export bills of collection facility under document against
acceptance (D/A) (currency and amount in capital letters):    /   ;

14. Others: The equivalent amount of overseas prepayment under L/C and non L/C (currency and
amount in capital letters): USD SIX MILLION ONLY.

Article 3 Effective Period of Trade Finance Amount

I. The effective period of the amount of the Contract shall be from 29 June 2010 to 28
June 2011 (hereinafter referred to as “Amount Effective Period”).

II. While the Amount Effective Period expires, the amount shall terminate spontaneously and unused
amount shall be invalid spontaneously.

III. For every trade finance within the Amount Effective Period, the expiration date of Party A’s
debt performance period shall not be restrained by the expiry of the Amount Effective Period.
Single trade finance business approved by Party B during the Amount Effective Period shall continue
be exercised in accordance with the Contract and attachment thereof or other relevant legal
documents, the creditor’s right and debt incurred thereby shall not be influenced by the expiration
of the Amount Effective Period.

Article 4 Interest and Fees

I. The starting date, expiry date, amount, interest rate, interest accrual basis, interest settling
basis, types or scopes of fees, rate, fee calculating basis and fee payment basis of single trade
finance business under the Contract shall be determined according to the stipulations of relevant
legal documents on single business, and for those could not be agreed through negotiation, Party B
has the right to deny the application of Party A.

LIBOR refers to the interbank offered rate of the foregoing period and currency offered by such
financial telecommunication terminals as Reuters and issued by British Bankers Association (BBA) at
11:00 a.m. (London Time) 2 (two) business days of bank before loan or financing or before the
interest rate adjustment date.

HIBOR refers to the interbank offered rate of the foregoing period and currency offered by such
financial telecommunication terminals as Reuters and issued by Hong Kong Association of Bankers
(HKAB) at 11:30 a.m. (Hong Kong Time) 2 (two) business days of bank before loan or financing or
before the interest rate adjustment date.

 

 

II. Party A shall, under the Contract, pay or bear the following fees for Party B:

(I) Amount management fee, charged by    /    % of the total amount;

(II) Fees actually incurred by Party B on handling each business under the Contract;

(III) Fees incurred by Party B on demanding related parties for payment in order to withdraw such
payment under L/C, bank note and guarantee related to the amount;

(IV) Other fees agreed by both parties hereof.

Article 5 Usage of Trade Finance Amount

I. Party A may, within the trade finance amount stipulated by the Contract and during the effective
period of the trade finance amount, apply for the amount usage for every business in writing, and
all trade finance businesses shall be conducted for Party A by Party B with the approval thereof.

II. Except that Party B waives all or parts, Party B is obliged to provide trade finance for Party
A only if the following pre-conditions are met:

(I) Where Party A has, according to relevant laws and regulations, settled all the relevant
approval, registration, payment, insurance and other legal formalities;

(II) Where the guarantee fulfilling the requirement of required Party B has been effective and will
continue be effective;

(III) Where Party A has not violated any stipulation hereof;

(IV) Where Party A has paid the amount management fee which shall be paid by Party A to Party B
hereunder;

(V) Where other documents deemed necessary by Party B have been provided;

(VI) Where the application for the trade finance amount by Party A has been approved by Party B;

(VII) Where other pre-conditions exist: the effective period of one single transaction should
not be over 90 days.

III. At any time point within the Amount Effective Period hereunder, the sum of amount principal
balances actually taken up by all single businesses shall not exceed the total trade finance amount
and the sum of amount principal balances taken up by all single businesses under all sub-item
amount shall be less than the said sub-item amount.

 

 

Article 6 Legal Documents Related to the Contract

I. In the event that Party A applies for the use of the trade finance amount hereunder to Party B,
Party A shall sign Appendices 1 and 2 with Party B. The appendices sealed by the official
seal or designated contract seal of Party A and Party B shall become an indiscerptible part of the Contract and shall be legally binding against both parties hereof. Neither party hereof can object
the legal validity of each relevant appendix on the basis that the appendices have not yet been
signed by both parties hereof.

1. Appendix 1: Special Agreement on L/C Issuance.

2. Appendix 2: Special Agreement on Trust Receipt Loan.

3. Appendix 3: Special Agreement on Delivery Guarantee.

4. Appendix 4: Special Agreement on Packing Loan.

5. Appendix 5: Special Agreement on Negotiation of Drafts under L/C.

6. Appendix 6: Special Agreement on Export Bills Negotiation.

7. Appendix 7: Special Agreement on Export Collection Facility.

8. Appendix 8: Special Agreement on Bill Discounted / Receivable Buy-In under usance L/C.

9. Others.

II. In the event that Party A applies for trade finance business from Party B, Party A shall submit
the following relevant business application letters, which, approved by Party B, shall become an
indiscerptible part of the Contract and relevant appendices hereunder and shall be legally binding
against both parties hereof:

1. The application letter for L/C issuance which shall be submitted by Party A when applying for
L/C issuing business;

2. The application letter for trust receipt loan which shall be submitted by Party A when applying
for trust receipt loan business;

3. The application letter for delivery guarantee which shall be submitted by Party A when applying
for delivery guarantee;

4. The application letter for packing loan which shall be submitted by Party A when applying for
packing loan business;

5. The application letter for negotiation of drafts under L/C which shall be submitted by Party A
when applying for negotiation of drafts under L/C business;

 

 

6. The application letter for export bills negotiation which shall be submitted by Party A when
applying for export bills negotiation business;

7. The application letter for export collection facility which shall be submitted by Party A when
applying for export collection facility business;

8. The application letter for bill discounted / receivable buy-in under usance L/C which shall be
submitted by Party A when applying for bill discounted / receivable buy-in under usance L/C
business;

9. Others:    /.

III. Party A shall, upon applying for issuing usance L/C and sight L/C with property in goods
uncontrollable by Party B, delivery guarantee and trust receipt loan, submit trust receipts
according to the requisition of Party B.

Article 7 Rights and Obligations of Both Parties

I. Party A has the right to demand Party B to keep the relevant materials and business secret on
production and operation provided by Party A confidential, unless otherwise stipulated by legal
administrative regulations and rules, required by competent authorities or agreed by both parties
hereof.

II. Party A shall, according to requisition of Party B, provide relevant planning statistics,
financial statements and information on production and operation situations and ensure the
truthfulness, completeness and effectiveness of information and situations provided. If Party A is
a group client, Party A shall report the situations of connected transactions equivalent to more
than 10% of net assets of Party A in a timely manner, including (1) related relationship among each
transaction parties; (2) transaction item and transaction nature; (3) amount or relative ratio of
the transaction; and (4) pricing policy (including transactions without amount or with only nominal
amount).

III. Party A shall actively cooperate with and consciously accept the inspection and supervision of
Party B on Party A’s production and operation, financial activities and amount usage status
hereunder.

IV. While Party A is involved in situations that are believed by Party B to influence the normal
production and operation of Party A, Party B has the right to adjust until the unused trade finance
amount of Party A is cancelled.

V. Party A shall open a RMB or foreign currency account in Party B and shall entrust Party B to
conduct import and export trade settlement business, import and export trade finance business and
other banking settlement business.

 

 

VI. Party A shall utilize the account according to the agreement by both parties hereof.

VII. Party A shall fulfill or pay off liabilities during the agreed period.

VIII. Party A shall bear the risk of exchange rate. When the sum of amount occupied by Party A will
exceed or has exceeded the amount stipulated hereby due to the risk of exchange rate, Party A
shall, upon receiving notice from Party B, provide guarantee recognized by Party B in a timely
manner. When the sum of amount occupied by Party A will exceed or has exceeded the amount
stipulated hereby due to the change of exchange rate, Party B has the right not to conduct trade
finance business for Party A any more.

IX. Party A shall not withdraw capital, transfer assets or make use of connected transactions in
order to evade the debt against Party B. Furthermore, Party A shall not use false contract with
connected parties and discount or pledge a bank with such creditor’s right without actual trade
background as bank note receivable and bills receivable to acquire capital or credit from the bank.

X. Upon alteration of such information on industrial and business registration of Party A as name,
Statutory Representative (Principal), address, scope of operation, registered capital or articles
of association, Party A shall notify Party B immediately after the alteration and enclose with
relevant materials on alteration.

XI. Party A shall ensure not to sign any contract with any third party that lead to the detriment
of rights and interests of Party B under the Contract.

XII. Before all liabilities hereunder are paid off, Party A shall not, without written consent of
Party B, provide guarantee to any third party with assets made up of the amount provided by Party
B.

XIII. Where loss is imposed to Party B due to disputes incurred by the basic contract or because of
the third party, Party A shall bear the liability for the loss.

XIV. Party A declares that upon execution of the Contract, it is not engaged in any activity or
there is no situation which it is in contravention of any law, regulation or rule regarding
environmental protection, energy saving, improvement of pollution, and undertakes that after the
Contract has been executed, it will abide by the relevant law, regulation or rule regarding
environmental protection, energy saving, improvement of pollution; if the declaration of Party A as
aforesaid is false or the aforesaid undertaking has not been implemented, or if there is a risk
that Party A is engaged in energy wastage or pollution, Party B has the right to stop giving credit
to Party A (including but not limited to refusal of disbursement of loan, provision of finance, issue of letter of guarantee or L/C or banker’s acceptance bill, etc) or to declare acceleration of
maturity of loan (including but not limited to loan, trade

 

 

finance, prepayment which has been made or is likely to be made, etc.), or take any action which the Contract has stipulated or other
remedial measures that the laws allow.

Article 8 Liabilities for Breach of Contract and Remedial Measures for Situations
Jeopardizing Party B’s Creditor’s Right

I. Situations and liabilities of Party B for breach of contract

(I) If Party B breaches regulations of the Contract, the appendices of the Contract and relevant
business applications approved by Party B, Party A may require Party B to perform obligations in
accordance with the agreement;

(II) If Party B violates prohibitive stipulations of national laws and regulations to collect
interest and fees that shall not be collected from Party A, Party A has the right to require Party
B to return the above collected.

II. Situations of Party A for breach of contract

(I) Where Party A breaches any stipulation of the Contract, the appendices of the Contract and
relevant business applications approved by Party B or violates any legal obligations;

(II) Where Party A expressly states or demonstrates through action that any obligations under the
Contract, the appendices of the Contract or relevant business applications approved by Party B will
not be performed.

III. Situations that may jeopardize the creditor’s rights of Party B

(I) Where any one of the following situations believed by Party B to jeopardize the creditor’s
rights security hereunder: contracting, trusting (taking-over), leasing, shareholding system
transformation, reduction of registered capital, investment, joint operation, combination, merger,
acquisition and restructuring, separation, joint venture, being applied / applying for business
suspension, applying for dissolving, being rescinded, being applied / applying for bankruptcy,
alteration of controlling shareholders / actual controllers or transfer of material assets,
production suspension, business closing, being imposed a large sum of fine by competent
authorities, registration being voided, business license being invalidated, involving into material
legal disputes, serious production and operation difficulties or worsening financial status and
inability of Statutory Representative or major Principal to normally perform responsibilities of
Party A;

(II) Where any one of the following situations believed by Party B to jeopardize the creditor’s
rights security hereunder: failure to perform other due liabilities (including due liabilities
against institutions of China Construction Bank at any levels

 

 

or other third parties), transfer of property at a low price or without any consideration, reduction or remission of liabilities against
a third party, delay of exercising creditor’s rights or other rights, or provision of guarantee to
a third party of Party A;

(III) Where shareholders of Party A abuse the independent status of corporate or limited
liabilities of shareholders to evade liabilities and Party B believes that the creditor’s rights
hereunder may be jeopardized;

(IV) Where any pre-conditions of Party B to provide trade finance for Party A stipulated in the
Contract, the appendices of the Contract and single trade finance business has not been sustainably
met;

(V) Where one of the following situations is incurred to the Guarantor and is believed by Party B
to jeopardize the creditor’s rights hereunder:

1. Where the Guarantor breaches any stipulation under the contract of guarantee or makes any
statement that is false, wrong and omissive against the guarantee items;

2. Where contracting, trusting (taking-over), leasing, shareholding system transformation,
reduction of registered capital, investment, joint operation, combination, merger, acquisition and
restructuring, separation, joint venture, being applied / applying for business suspension,
applying for dissolving, being rescinded, being applied / applying for bankruptcy, alteration of
controlling shareholders / actual controllers or transfer of material assets, production
suspension, business closing, imposed a large sum of fine by competent authorities, registration
being voided, business license being invalidated, involving into material legal disputes, serious
production and operation difficulties or worsening financial status and inability of Statutory
Representative or major principal to normally perform responsibilities may affect the guarantee
bearing ability of the Guarantor;

3. Where the Guarantor is imposed with other situations that may render the Guarantor to lose or be
likely to lose the guarantee ability.

(VI) Where one of the following situations is incurred to mortgage and pledge and is believed by
Party B that the creditor’s rights hereunder may be jeopardized:

1. Where damage, loss and value reduction of mortgaged or pledged property are incurred by the
behavior of a third party, due to state commandeering, confiscation, expropriation, withdrawal
without consideration, demolition and relocation, change of market conditions or any other reasons;

2. Where mortgaged property or pledged property is sealed up, distrained, frozen, deducted,
retained, auctioned, monitored by administrative authorizations or the ownership thereof is
disputed;

 

 

3. Where the Mortgager or the Pledger breaches any stipulation under mortgage contract or makes any
statement that is false, wrong and omissive against the guarantee items;

4. Where there are other situations that may jeopardize the exercise of mortgage right or right of
pledge by Party B.

(VII) Where the guarantee is not tenable, not yet effective, ineffective, being rescinded or
discharged, or the Guarantor breaches contract or expressly states or demonstrates through action
that it will not perform its guarantee liability, or the Guarantor loses parts or all of the
guarantee ability, or the guaranty’s value reduces, which is believed by Party B that the
creditor’s rights security hereunder may be jeopardized; or

(VIII) Where other situations that are believed by Party B that the creditor’s rights security
hereunder may be jeopardized.

IV. Remedial measures of Party B

In the event of one of the situations stipulated in the aforesaid Articles 2 or 3, Party B has the
right to exercise the following one or several rights:

(I) Adjusts or terminates Party A of the usage on the trade finance amount hereunder or any single
amount correspondingly;

(II) Declares that the liabilities of Party A under the Contract and the appendix of the Contract
are due immediately and requires Party A to reimburse the principal, interest and fees of all due
and undue liabilities under the Contract and the appendix of the Contract;

(III) Collects penalty interest and compound interest;

(IV) Exercises guarantee right; and

(V) Other remedial measures, including but not limited to:

1. Withdraws corresponding payments in RMB or other currencies from Party A’s account in China
Construction Bank (Asia) system (including but not limited to margin account) and a prior notice
for Party A is not necessary;

2. Requires Party A to provide new guarantee fulfilling the requirements of Party B for all
liabilities under the Contract and the appendices of the Contract;

3. Unilaterally discharges or terminates the Contract and/or the appendices of the Contract;

 

 

4. Remedial measures of Party B under the appendices of the Contract.

Article 9 Other Provisions

I. Bearing of fees

Party A shall bear such fees on lawyer services, insurance, assessment, registration, custody,
determination, notarization, etc. related to the Contract and the Guarantee under the Contract,
unless otherwise stipulated by both parties hereof.

Party A shall bear all the fees actually incurred for the exercise of creditor’s rights by Party B
(including but not limited to litigation fees, arbitration fees, property preservation fees,
traveling expenses, execution fees, assessment fees, auction charges, notary fees, delivery fees,
publication fees, legal costs and etc.)

II. Use of information of Party A

Party A agrees that Party B may inquire for the credit status of Party A from the credit data base
approved to be established by People’s Bank of China and administrative department of credit
investigation or relevant units and departments as well as that Party B may provide Party A’s
information to the credit database approved to be established by People’s Bank of China and
administrative department of credit investigation. Party A further agrees that Party B may fairly
use and disclose Party A’s information upon business necessity.

III. Announcement for collection

In the event that Party A falls into arrearage of loan principal and interest or is involved into
other situations of breach of contract, Party B has the right to notify relevant departments or
units and has the right to publish announcement for collection through news media.

IV. Validity of evidence recorded by Party B

Unless reliable and ascertained counter-evidence is provided, the internal account entry of Party B
related to such contents as principal, interest, fees, payment records, etc. and receipts and
vouchers incurred in the process of such businesses for Party A as withdrawal, payment and interest
payment and records and vouchers on Party B’s debt collection made or reserved by Party B both
constitute the valid evidence that certifies the credit relationship between both parties hereof.
Party A shall not lodge any objection only due to that the abovementioned records, entry, receipts
and vouchers are made or maintained by Party B unilaterally.

V. Reservation of Rights

 

 

The rights of Party B under the Contract shall not influence or exclude any rights enjoyed by Party
B according to laws, regulations and other contracts. Any leniency, grace, offers or postponement
of exercising any rights under the Contract for any breach of contract or delay shall not be deemed
as a waiver of rights and interests under the Contract or a permission or recognition on any
behavior breaching the Contract, as well as that shall not limit, impede and hinder the continuous
exercise of such right or the exercise of any other rights, and shall not result in Party B bearing
obligation and responsibility against Party A.

VI. Except the liabilities under the Contract, Party A shall bear other due liabilities against
Party B, and Party B shall has the right to collect payments in RMB or other currencies in the
account opened by Party A in the China Construction Bank (Asia) System for paying off any due debt
and Party A shall agree not to lodge any objection.

VII. In the event that the correspondence address or contact method of Party A has been changed,
Party A shall notify Party B in writing immediately. The loss incurred by failure of notification
shall be undertaken by Party A.

VIII. Collection of payables

For all payables of Party A under the Contract, Party B shall has the right to collect relevant
payments in RMB or other currencies in the account opened by Party A in the China Construction Bank
(Asia) System without prior notice to Party A. For those needing formalities for settlement, sales
and remittance or foreign exchange, Party A is obliged to assist Party B and shall bear the risk of
exchange rate.

IX. Dispute settlement

Where a dispute occurs in the fulfillment of the Contract, it may be settled through negotiation or
by Method One listed as follows if the dispute cannot be settled through negotiation:

Method One: File a lawsuit to the People’s Court in the locality of Party B.

Method Two: Submit to    /    Arbitration Commission (the place of arbitration is    /    )
for arbitration according to the current and effective arbitration rules upon the application. The
decision of the arbitration is final which shall be binding for both parties hereunder.

During the period of litigation or arbitration, the articles of the Contract not involved in the
dispute shall still be performed.

X. Conditions for the Contract to be effective

 

 

The Contract shall be effective after being signed and sealed with the official seal (or designated
contract seal) by the Statutory Representative (Principal) or Authorized Agent of Party A and by
Principal or Authorized Agent of Party B.

XI. The Contract shall be made in 4 originals.

XII. Other Agreed Items:

	 	1.	 	the beneficiary of the L/C should not be a related company;
	 
	 	2.	 	the credit rating of Party A by Party B should not be lower than AA;
	 
	 	3.	 	the debt over assets ratio of Party A should not be over 50%.

XIII. During the effective period of the trade finance amount and within the amount of the trade
finance amount, all legal documents of both parties hereunder constituting the credit relationship
(including but not limited to the appendices of the Contract, relevant business applications, all
kinds of vouchers, etc.) are part of the Contract.

Article 10 Chop used by Party B

Party A confirms: After the Contract be effective, regarding the actual fulfillment (all or
part(s)) of the Contract, debt collection, litigation / arbitration, Party B has the right to use
its official seal, relevant business seal or designated contract seal on the relevant materials or
vouchers.

Article 11 Statement Clauses

I. Party A understands clearly the operation scope and authorization limit of Party B.

II. Party A has read all the clauses of the Contract. Upon the requisition of Party A, Party B has
given corresponding clause explanations on the Contract. Party A has completely and fully
understood the implications of the clauses hereof and the corresponding legal consequences.

III. The signing and fulfillment of the obligations hereunder by Party A meet the stipulations of
laws, administrative regulations, rules and articles of association or internal organizational
documents of Party A and has been approved by the internal competent organizations of the Company
and/or state competent authorities.

Party A (Official Seal):

Statutory Representative (Principal) or Authorized Representative (signature):

(Signature of Colin Yeoh and Koo Ming Kown)

29 June 2010

 

 

(Seal of Namtai

Electronic (Shenzhen)

Co., Ltd.)

Party B (Seal):

Statutory Representative (Principal) or Authorized Representative (signature):

(Signature of [ineligible])

29 June 2010

(Seal of China

Construction Bank

Corporation, Shenzhen

Branch)

 

 

Appendix 1

Special Stipulations on Issuing Letter of Credit

     This appendix constitutes the indiscerptible part of the Contract on Trade Finance Amount
Jie 2010 Rong 0112011R (hereinafter called “the Contract”).

     Article 1 Where the content of the appendix conflicts with the Contract, the stipulations of
this appendix shall prevail. The business of issuing the letter of credit (L/C) applicable to the
appendix includes but not limited to issuing L/C at sight with property in goods controllable by
Party B, issuing L/C at sight with property in goods uncontrollable by Party B and issuing usance
L/C.

     Article 2 The application of Uniform Customs and Practice for Documentary Credits

     Unless otherwise stipulated, Party A shall agree Party B to process the matters concerned
under the L/C in accordance with the latest revised version of the Uniform Customs and Practice for
Documentary Credits of the International Chamber of Commerce on the date that the irrevocable
documentary credit is issued, and Party A shall agree to bear the obligations and responsibilities
occurred therefrom.

     Article 3 The Issuance and Amendment of L/C

     Where Party A applies to issue a L/C from Party B, Party A shall provide documents and
information relevant to the basic contract, and shall ensure the truthfulness and legality of the
aforesaid documents, information and relevant basic transactions.

     Where Party B requires Party A to submit the documents and information relevant to the basic
contract, it shall not be deemed as that Party B is legally responsible for the truthfulness and
legality of the transactions undertaken by Party A.

     The content of the L/C applied to issue by Party A shall subject to the actual L/C issued by
Party B. Where the L/C needs to be amended, Party A shall file an application for the amendment of
the L/C to Party B, and Party B shall decide whether the amendment can be processed as the case may
be. Party A shall guarantee to pay all the fees (including relevant bank charges refused to be
borne by any foreign beneficiary) arisen therefrom.

     All parts of the application form for the issuance of the L/C and for the amendment of the L/C
requiring the use of English shall be filled in with English; where those parts shall be filled in
with English but filled in with Chinese and leads to any ambiguity, all responsibilities arisen
therefrom shall be borne by Party A.

     Where any ambiguity arises from unclear handwriting or ambiguous meanings of words in the
application form for the issuance of the L/C, the application form for the amendment of the L/C or
other relevant documents, all the responsibilities arisen therefrom shall be borne by Party A.

     Article 4 External Payment under the L/C

     1. Party A shall, within the time limit stipulated by the notification of the L/C voucher,
notify Party B in writing to process the formalities for the promise to pay (payment / acceptance /
guaranteed deferred payment) / the dishonor. Where Party A fails to notify Party B within the
stipulated time limit, Party B shall be entitled to determine to process the formalities for the
promise to pay / the dishonor, and Party A shall bear all the responsibilities and consequences
arisen therefrom.

     2. Where Party A considers the presentation under the L/C does not constitute the complying
presentation and tends to request for dishonor to Party B, Party A shall, within the time limit
stipulated by the notification of the L/C voucher, file an application in writing for the dishonor
and its reason, and clearly list out all the non-complying points at one time, and, at the same
time, return all vouchers and information delivered to Party A by Party B to Party B.

     3. Party B shall has the right to independently examine the vouchers and

 

 

determine whether the presentation under the L/C constitute the complying presentation. Where Party B considers
the voucher does not constitute the complying presentation after independent examination, Party B
has the right to determine the methods to deal with the non-complying voucher as well as whether to
accept or reject the non-complying points. Whether Party A decides whether to accept the
non-complying points does not affect the final decision of Party B on whether to accept the
non-complying points. Once the presentation under the L/C is considered by Party B to constitute
the complying presentation, the L/C can be accepted externally.

     4. Where the L/C applied to issue by Party A is a L/C at sight, and Party B considers it
constitutes the complying presentation or accepts the non-complying points in accordance with the
requisition of Party A, Party A shall commit, within the time limit stipulated in the notification
of the L/C voucher, to pay up all the amounts to Party B.

     5. Where the L/C applied to issue by Party A is a usance L/C, and Party B considers it
constitutes the complying presentation or accepts the non-complying points in accordance with the
requisition of Party A and has promised to pay hereby, Party A shall, before the due date of the
payment, pay up all the amounts to Party B.

     6. Party A shall, within the time limit required by Party B, commit to pay Party B the
following amounts, including but not limited to the trade payable, relevant handling fees,
telecommunication fees and miscellaneous fees under the L/C, overdue interests payable by Party A
for the payment by Party B in advance for Party A under the L/C, penalties, indemnities, relevant
bank charges refused to be borne by foreign beneficiary, and charges to achieve the credit’s right
by Party B (including but not limited to litigation fees, arbitration fees, property preservation
fees, traveling expenses, execution fees, assessment fees, auction charges, notary fees, delivery
fees, publication fees and legal costs)

     Article 5 Exemption of information delivery and translation

     Party B shall not be responsible for any consequences caused by any delay, lost, deformity or
other faults occurred during the transmission of any message or the delivery of letters or
vouchers.

     Where Party B is liable to bear the acceptance or payment responsibilities, even if the
voucher is lost, Party A shall still pay all the amounts to Party B as stipulated in this appendix
and the Contract.

     Party B needs not bear the responsibilities for the mistakes on translation or explanation of
the technical terms, and may service the terms of the L/C without translation.

     Article 6 Exemption of the behaviors of the instructed Party

     To perform the instructions of Party A, Party B shall be entitled to select and utilize the
services of other third party, and all fees and risks incurred therefrom shall be borne by Party A.

     Where the instructions made to the third party by Party B are not correctly executed, Party B
needs not bear any responsibility.

     Party A shall be bounded by all obligations and responsibilities imposed by foreign laws and
conventions to Party B and be responsible for the compensation to Party B.

     Article 7 Disputes on the Basic Contract or Fraud on L/C

     Where any loss incurred to Party B is due to dispute on the basic contract upon which the L/C
based or caused by the third party, Party A shall be responsible for the compensation.

     Where dispute occurs to the basic contract involved with the L/C, or any fraud on L/C occurs,
and if Party B, the nominated bank, the authorized person or the confirming bank of Party B has
promised to pay under the L/C, or that the negotiating

 

 

bank has made the negotiation, whether or not the abovementioned dispute on the basic contract or fraud on L/C has been settled, Party A
shall still commit to pay all the amounts as stipulated by this appendix and the Contract.

     Article 8 Other Rights and Obligations of Both Parties

     1. Unless otherwise stipulated, Party B is entitled to select the advising bank, the
negotiating bank and the confirming bank of the L/C, and to entrust other third party to handle the
affairs related to the L/C.

     2. The settlement of RMB and foreign currency under the L/C applied to issue by Party A shall
be processed by Party B.

     3. Where Party B accepts the non-complying presentation and promise to pay externally in
accordance with the instructions of Party A, or that both Party B and Party A consider the
presentation constitutes the non-complying presentation and Party B dishonor the payment, all the
responsibilities incurred therefrom shall be borne by Party A.

     Article 9 Liabilities for Breach of Contract

     I. The conditions of breach of contract by Party A

          (I) Party A breaches any stipulation of this appendix or the Contract or breaches any legal
obligation;

          (II) Party A clearly states or demonstrates through action that it will not perform any
stipulation under the appendix or the Contract.

     II. Where Party A breaches the Contract or that any condition that may jeopardize the
creditor’s right of Party B as stipulated in the Contract, Party B shall be entitled to execute one
or several of the following rights:

          (I) Where Party B pay in advance, Party B shall be entitled to accrue the overdue interests in
accordance with the overdue loan interest rate from the date of the advance payment of Party B, and
the overdue loan interest rate shall be stipulated in details when both parties operate a single
business;

          (II) Regarding to the payables of Party A, Party B shall has the rights to directly transfer
the amounts from the margin account opened by Party A in Party B or from other accounts opened by
Party A in the China Construction Bank (Asia) system or from other receivables of Party A;

          (III) Deal with the vouchers and / or goods under the L/C;

          (IV) Exercise the guarantee rights;

          (V) Request Party A to pay additional margins or other guarantee recognized by Party B;

          (VI) Remedy measures of Party B stipulated by the Contract;

          (VII) Other measures approved by laws.

     Article 10 Other Stipulations

     The explanation of this appendix shall be in accordance with the goals, the wordings used,
relevant terms, course of dealing, international practice (including but not limited to the latest
revision of the Uniform Customs and Practice for Documentary Credits of the International Chamber
of Commerce on the date Party B issued the L/C), and the principles of honesty and creditability,
so as to determine that the actual meanings of the terms of this appendix.

     Such vouchers and documents for the application form of the issuance of the L/C and for the
amendment of the L/C are all the constituent parts of this appendix.

               Party A (Official Seal): (Signature of Colin Yeoh and Koo Ming Kown)

(Seal of Namtai

Electronic (Shenzhen)

Co., Ltd.)

 

 

Party B (Seal): (Signature of [ineligible])

(Seal of China

Construction Bank

Corporation, Shenzhen

Branch)

 

 

Appendix 2

Special Stipulations on Trust Receipt Loan

     This appendix constitutes the indiscerptible part of the Contract on Trade Finance Amount
Jie 2010 Rong 0112011R (hereinafter called “the Contract”).

     Article 1 Where the content of the appendix conflicts with the Contract, the stipulations of
this appendix shall prevail. This appendix is applicable to the trust receipt loan business under
L/C and non-L/C.

     Article 2 Trust Receipt Loan

     Trust receipt loan refers to that Party B provides short-term finance provided by Party B
according to the application of Party A on the payment due date of the L/C / cash on import
delivery (T/T) / inward collection to Party A for external payment.

     Article 3 Repayment

     I. Principle of repayment

     Payment of vouchers and goods (represented by the vouchers) of L/C / inward collection / cash
on import delivery involved in the trust receipt loan business of Party A shall be used to repay
the trust receipt loan of Party B, and the deficit shall be paid by other capitals of Party A.

     II. Payment of interest

     Party A shall pay the due interest on the interest settlement date. First interest payment
date refers to the first interest settlement date after loan; Party A shall pay off the principal
and the interest in the last payment.

     III. Repayment method

     Party A shall deposit adequate current payables in Party B’s account and transfer the amount
for loan repayment before the stipulated payment date (Party B shall also be entitled to transfer
money from this account to repay loan); or, Party A shall transfer money from other accounts for
loan repayment on the stipulated payment date.

     IV. Repayment in advance

     Party A shall be entitled to repay the principal and interest of loan in advance.

     Where Party A repays the loan in advance, interest shall be calculated in accordance with the
actual days of loan used and the loan interest rate stipulated under this appendix. After repayment
in advance, outstanding debts shall still be executed in accordance with the stipulations of this
appendix.

     Article 4 Other rights and obligations of both parties

     1. Party A shall be entitled to require Party B to issue trust receipt loan in accordance with
the stipulations of both parties.

     2. Party B shall protect the business confidentiality of Party A in accordance with law,
unless otherwise stipulated under laws and regulations and rules, required by the competent
authorities or otherwise stipulated by both parties.

     3. Party A shall process the RMB and foreign currencies settlement under the trust receipt
loan business in its account opened in Party B.

     4. On the date Party A issues the trust receipts or Party B promises to pay / pays (whichever
is the earlier), Party A shall have the ownership of vouchers and goods (represented by the
vouchers).

     5. Party B shall give the vouchers to Party A after Party A presented the trust

 

 

receipts.

     6. As the proxy and beneficiary, Party B shall bear the beneficial right of trust property
handled by Party A.

     7. As the trustee, Party A shall possess vouchers and goods (represented by vouchers) under
L/C / inward collection / cash on import delivery involved in the trust receipt loan business for
Party B’s interest and conduct discharge, storage, manufacture, process, transportation and sales
independently.

          Payment of goods sold by Party A shall be used to repay the trust receipt loan of Party B, and
the deficit shall be paid by other capitals of Party A.

     8. Party A shall bear all fees on the disposition of goods or that incurred from the goods.

     9. Party B shall be entitled to collect payment of goods from buyers of goods
after selling goods under the L/C / inward collection / cash on import delivery involved in the
trust receipt loan business without notifying Party A.

     10. Party A shall handle the goods in accordance with Party B’s special request, if any.

     11. As the trust property of Party B, vouchers and goods (represented by the vouchers)
involved in the trust receipt loan business and relevant rights and interests (including but not
limited to unsold goods, creditor’s rights from the buyers due to sales of goods, payment of sales
of goods and insurance indemnity) are independent from Party A. In case of dissolution, rescission
and bankruptcy of Party A or any creditor of Party A claims any right to the trust property, Party
A shall be liable to declare to the People’s Court or the third party that the trust property is
not part of Party A’s liquidated properties or own assets or Party A’s property of bankruptcy;
Party A’s creditor’s right acquired by managing and handling the vouchers and the goods represented
by the vouchers shall not offset the debts incurred from its own properties.

     12. Party A shall not mortgage (pledge) any vouchers and goods (represented by the vouchers)
to any other person, or have the goods bounded by any lien, before repaying all the principles,
interest and fees of Party B’s trust receipt loan.

     13. In accordance with Party B’s requirement, Party A shall submit to Party B the relevant
documents of the goods or store the goods according to Party B’s instruction, and make warehouse
warrants with Party B as the addressee.

     14. In accordance with Party B’s requirement, Party A shall cover fire insurance and other
general class of insurances from reputable insurance companies according to the entire value of the
goods under the L/C / inward collection / cash on import delivery involved in the trust receipt
loan business, and possess as trustee on behalf of Party B and submit at any time the insurance
policies or insurance contracts to Party B with Party B as the beneficiary or have the beneficial
right endorsement transferred to Party B. The insurance premiums shall be borne by Party A, and if
goods under the insurances are claimed for compensation, Party A shall inform Party B immediately
and submit the insurance indemnity to Party B at once after receiving.

     15. Party B shall be entitled to determine and inspect the transportation methods, storage
place, storage modes and class of insurance of the goods. Party A shall guarantee to provide
facility for Party B, including permitting Party B to enter the warehouses or fields owned,
possessed or managed by Party A. Where Party B requests, Party A shall sign all the documents that
facilitate Party B’s delivery of goods and claim for compensation.

     16. Party B shall be entitled to inspect and supervise the sales and collection conditions of
goods under the L/C / inward collection / cash on delivery involved in

 

 

the trust receipt loan business. If Party B requires, Party A shall offer related conditions in writing to Party B at any
time.

     17. Party B shall revoke the trust at any time. Once requested by Party B, Party A shall
return a full set of documents of title, vouchers and other related documents or the goods under
the vouchers to Party B.

     18. Party B shall be entitled to revoke the trust relationship, take back the trust property
and process at its discretion if Party A fails to process the trust property in accordance with
Party B’s requirement.

     19. If any dispute or fraud arises from the basic contract under the L/C / inward collection /
cash on delivery, no matter whether the dispute or fraud of the basic contract is settled, Party A
shall repay the principal and interest of loan and related fees as stipulated under this appendix.

     Article 5 Liabilities for Breach of Contract

     Party A breaches any stipulation under this appendix or the Contract, or Party A clearly
states or demonstrates with action that it will not perform any stipulation under this appendix or
the Contract, or any condition that may jeopardize the creditor’s right of Party B as stipulated
under the Contract, Party B shall be entitled to settle using one or several of the methods as
follow:

     (I) Declare the loan is due immediately, and requires Party A to pay back the principals,
interests and fees of all due and undue debts.

     (II) The interests fail to be paid when due by Party A within the term of loan shall be
calculated in compound interest in accordance with the stipulated interest rate and interest
settlement method.

     After the loan expires, and from the expiry date until the date that the principals and the
interests are all paid off, regarding the principals and interests (including the principals and
interests of the loans being declared all or partly due by Party B) fail to be paid off by Party A
when due, the interests and compound interests shall be settled and accrued in accordance with the
overdue loan interest rate and the interest settlement method for single business. If the principal
and interests stipulated under single business shall be repaid in one time, regarding the principal
and interests (including the principals and interests of the loans being declared all or partly due
by Party B) of the loan fail to be paid off when due by Party A, the interests and compound
interests shall be settled and accrued in accordance with the overdue loan quarterly interest rate,
and the overdue loan interest rate shall be stipulated when both parties processes the single
business.

     Loan overdue refers to the action that Party A fails to pay off the loans when due.

     (III) Dispose the vouchers and goods (represented by the vouchers) under the L/C / inward
collection / cash on import delivery involved in the trust receipt loan business;

     (IV) Exercise the security right;

     (V) Require Party A to provide guarantee complying with the requirements of Party B;

     (VI) Remedy measures of Party B stipulated under the Contract.

     (VII) Other measures approved by laws.

     Article 6 Other stipulations

     The explanation of this appendix shall be in accordance with the aims, the wordings used,
relevant terms, course of dealing, international practice, and the principles of honesty and
creditability, so as to determine the actual meanings of the terms of this appendix.

     Such vouchers and documents for the application form of the trust receipt loan

 

 

are all the valid and constituent parts of this appendix.

               Party A (Official Seal): (Signature of Colin Yeoh and Koo Ming Kown)

(Seal of Namtai 

Electronic (Shenzhen)

Co., Ltd.)

Party B (Seal): (Signature of [ineligible])

(Seal of China

Construction Bank

Corporation, Shenzhen

Branch)exv4w10

Exhibit
4.10

CONFIDENTIAL

Zastron Electronic (Shenzhen) Company Limited

Gusu Industrial Estate,

Xixiang, Baoan 

Shenzhen, P.R.C

28 October 2010

Attn: Mr. Jimmy Ng 

Dear Sir,

BANKING FACILITIES (S/N: 100916)

With reference to our recent discussion, we are pleased to confirm our agreement to granting you
the under-mentioned banking facility which will be made available on the specific terms and
conditions outlined herein and upon the satisfactory completion of the security and conditions
precedent detailed below. Notwithstanding anything to the contrary in this facility letter,
this facility is subject to our overriding right of suspension, withdrawal and repayment on demand
at any time, including the right to call for cash cover security on demand for prospective and
contingent liabilities and also subject to review at any time, and in any event, by 31 July 2011 or
such later date as determined by the Lender at its sole discretion.

	 	 	 	 	 

	Borrower

	 	:
	 	Zastron Electronic (Shenzhen) Company Limited

	 
	 	 	 	 
	Lender

	 	:
	 	HSBC Bank (China) Company Limited, Shenzhen Branch
	 
	 	 	 	 
	Facility/Amount

	 	:
	 	For avoidance of doubt, each and all the facilities set out
below are of the revolving nature, i.e. any utilised but repaid amount under any such
facility is available for re-utilisation, subject to the terms and conditions of this
Facility Letter.
	 
	 	 	 	 
	 

	 	 	 	Import Facilities up to USD5,000,000.-

Documentary Credit to your suppliers and Import Loan Facilities for up to
90 days, less any usance / credit periods granted by your
suppliers / approved
beneficiaries.

HSBC Bank (China) Company Limited

Shenzhen Branch: 2/F, China Resources Building, 5001 Shennan Road East, Luohu District

Shenzhen (Postal Code: 518010), The People’s Republic of China

Tel : (755) 8233 8016     Fax : (755) 8232 4045

SWIFT:HSBCCNSHSZN     Web: www.hsbc.com.cn

1

			
	Incorporated in the People’s Republic of China with limited liability
	 	
Page    /   

SZN-GEN-005 (280207)

 

	 	 	 	 	 

	 

	 	 	 	Within which

Goods under your control and/or Trust Receipts up to USD5,000,000.-
	 
	 	 	 	 
	 

	 	 	 	We may, at our sole and absolute discretion, refuse to allow
drawings under the facilities if the transaction in question does
not meet our operational requirements in respect of these
facilities.
	 
	 	 	 	 
	 

	 	 	 	Facility(ies) will only be made available subject to
availability of funding.
	 
	 	 	 	 
	Purpose

	 	:
	 	To finance the Borrower’s working capital requirement
	 
	 	 	 	 
	 

	 	 	 	The Borrower shall apply the loan proceeds for the purpose as set
out above and shall comply with the requirements of the relevant PRC
laws and regulations. The Borrower shall not apply the loan proceeds
for any other purpose, including but not limited to, applying the
loan proceeds for equity investments, applying the loan proceeds for
speculation in the stock market, the futures market, the real estate
market or other similar market speculation, or applying the loan
proceeds in other prohibited investment or business areas or
purposes.
	 
	 	 	 	 
	Term

	 	:
	 	The “Term” here refers to the term during which this facility is
available for drawing. The Term of this facility is up to (and
including) 31 July 2011, subject to review and renewal at the
Lender’s sole discretion and as unilaterally advised by the Lender
from time to time.

	 	 	 

	Market Disruption/Increased
Costs :

	 	Without prejudice to our overriding right of suspension, withdrawal
and repayment on demand, we would reserve our right to renegotiate
any of the interest margins, fees and the applicable period of PBOC
base rate detailed herein (in case there is any Loan denominated in
RMB) in the event of any change occurring in any applicable law or
regulation (or its interpretation) or in PRC’s financial markets or
the need to comply with any requirement of any
regulatory/governmental authority (whether or not having the force
of law), which resulted, in our opinion, in an increase of the cost
of advancing, maintaining or funding any facilities, a change on the
basis to calculate the interest margins, deviation from the RMB
interest rate regime permitted by PRC laws or regulations (or its
interpretation), and/or a reduction in the net return to us from the
facilities outlined herein. Before the renegotiated interest
margins, fees or applicable base rate is agreed, the Bank has the
sole discretion to charge the Borrower the revised interest and fees
with a notice to the Borrower. However, if such change in applicable
laws and regulations or the requirements of relevant
regulatory/governmental authorities have retrospective effect, the
Customer shall indemnify the Bank against the increase of cost
and/or the reduction in the net return suffered by the Bank in
respect of relevant period affected by such retrospective effect
within 5 Business

2

 

	 	 	 

	 

	 	Days upon receipt of written notice from the Bank. The Bank’s written notice
setting out its claim for such indemnity shall be the conclusive evidence
for the indemnity amount payable to the Bank by the Customer, unless the
Bank’s claim conflicts with relevant laws, regulations,
regulatory/governmental requirements in the PRC.

	 	 	 

	Interest/Commission   
              :

	 	Import Loans

The Applicable Interest Rate for Import Facility hereunder shall be a margin
to be agreed by both parties in writing on the loan drawdown date above the
Singapore Interbank Money Market Offer Rate (“SIBOR”) / London Interbank
Money Market Offer Rate (“LIBOR”) /Hongkong Interbank Money Market Offer
Rate (“HIBOR”) of Foreign Currency for 1, 2 or 3 months or any other
interest period as may be determined by the Lender, and such Applicable
Interest Rate agreed by both parties for each drawdown shall be specified in
a separate written confirmation. The interest shall be payable at the end of
each interest period.
	 
	 	 
	 

	 	LIBOR: LIBOR shall be determined as the United States Dollar interest rates
quoted on the Reuters Screen page “LIBOR” as of 11:00 a.m. (London Time),
two London business days prior to the first day of each Interest Period.
	 
	 	 
	 

	 	SIBOR: SIBOR shall be determined as the United States Dollar interest rates
quoted on the Reuters Screen page “SIBOR=” as of 11:30 a.m. (Singapore
Time), two Singapore business days prior to the first day of each Interest
Period.
	 
	 	 
	 

	 	HIBOR: HIBOR shall be determined as the United States Dollar interest rates
quoted on the Reuters Screen page “HIBOR=” as of 11:30 a.m. (Hong Kong
Time), two Hong Kong business days prior to the first day of each Interest
Period.
	 
	 	 
	 

	 	ALL the above provisions shall not be read as excluding both parties’
entering into any agreement in writing on any other applicable interest
rates and/or other interest rate modification mechanism in respect of all or
any part of the above mentioned facilities in whatever currencies. Such
otherwise agreed Applicable Interest Rate shall be specified in the relevant
drawdown request of the Borrower.
	 
	 	 
	 

	 	Documentary Credits opening commission

For each validity of 90 days or part thereof to be charged as below with
minimum charge of USD24.- and payable in full at the time of issuance of all
Documentary Credits:

	 	 	 	 

	 

	•

	 	For DC amount below USD100,000.- or its equivalent: 0.10%
	 
	 	 	 
	 

	•

	 	For DC amount between USD100,000.- (USD100,000.- inclusive) and USD250,000.- or its equivalent: 0.08%

	 
	 	 	 
	 

	•

	 	For DC amount between USD250,000.- (USD250,000.- inclusive) and USD400,000.- or its equivalent: 0.06%

3

 

	 	 	 	 	 	 	 

	 

	 	•
	 	For DC amount above USD400,000.- (USD250,000.- inclusive): 0.04%

	 
	 	 	 	 	 	 
	 	 	Export Documentary Credits/Non- Documentary Credits Bill
Handling Commission
	 
	 	 	 	 	 	 
	 

	 	•
	 	First USD75,000.- (USD75,000.- inclusive) or equivalent: 0.125%

	 
	 	 	 	 	 	 
	 

	 	•

	 	Between USD75,000.- and USD300,000.- (USD300,000.- inclusive): 0.0625%

	 
	 	 	 	 	 	 
	 

	 	•

	 	Balance in excess of USD300,000.-: 0.03125%

	 
	 	 	 	 	 	 
	 

	 	•

	 	Minimum amount: USD35.-.

	 
	 	 	 	 	 	 
	 	 	Commission in lieu of
exchange

Waived

	 	 	 	 	 

	Default
Interest

	 	:
	 	Please note Default Interest will be payable on sums which are
overdue or overlimit (as well as amounts demanded and not paid) or
(in respect of loan amount) used for purposes other than the
purpose of loan stated in this letter in respect of all or any of the facility and
such interest will be charged by the Lender as follows:
	 
	 	 	 	 
	 

	 	 	 	Foreign Currency Facilities

Default Interest Rate shall be 3% per annum over the Applicable
Interest Rate for respective foreign currency facilities, subject
to fluctuation at the Lender’s discretion.
	 
	 	 	 	 
	 

	 	 	 	For avoidance of doubt, the impost of Default Interest as
mentioned above shall not be deemed as the Lender’s
acknowledgement or acceptance of any such default event as
mentioned above and shall be without prejudice to any rights of
the Lender as described in the first paragraph of this facility
letter.
	 
	 	 	 	 
	Prepayment

	 	:
	 	With the Lender’s prior approval (which will not be withheld, provided
that the Lender is satisfied that the funds utilized are generated
from Borrower’s internal resources out of cash flow rather than
from external refinancing), during an interest period the total
amount of a drawing may, with 5 working days advance notice to the
Lender, be repaid subject to the usual penalties (i.e. Break
Funding Cost: the differential between the
return the Lender would have received had the loan run to maturity
and the return the Lender is able to obtain by the placing of the
funds repaid for the remainder of the period in the market). Each
prepayment should be in a minimum of USD400,000.- (or, if the
relevant drawing is made in any other currency, the equivalent
amount in such other currency) and in an integral multiple of
USD200,000.- (or, if the relevant drawing is made in any other
currency, the equivalent amount in such other currency).
	 
	 	 	 	 
	Security

	 	:
	 	As security, we require to hold:
	 
	 	 	 	 
	 

	 	 	 	A Corporate Guarantee for RMB40,000,000.- from Nam Tai Electronic
(Shenzhen) Co Ltd (the “Guarantor”).

4

 

	 	 	 	 	 

	 

	 	 	 	Without prejudice to our overriding right of suspension, withdrawal and
repayment on demand at any time, including the right to call for cash cover
security on demand for prospective and contingent liabilities, if as a matter
of fact or in the opinion of the Bank, the value of the security provided by
the Borrower or other security provider for the facilities hereunder has
depreciated, the Bank has the right to ask the Borrower to provide additional
security in form and substance satisfactory to the Bank.
	 
	 	 	 	 
	 

	 	 	 	The term “security” referred to herein include both tangible security and
guarantee by a third party. The depreciation of security value includes, but
is not limited to, decrease of the absolute value of the collateral due to
drop in market price, adverse change in the guarantor’s credit standing, and
depreciation of the guaranteed credit limit or any form of cash cover security
or evaluated value of the collateral when converted into the currency in which
the facility hereunder is denominated as a result of fluctuation of foreign
exchange rate.

	 	 	 	 	 	 	 	 	 

	Conditions Precedent         
:

	 	 	 	 	1	)	 	The Borrower shall present to the Lender a valid Borrowing Card
issued by the People’s Bank of China.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	2	)	 	Certified true copies of all government approvals
and certificates in relation to the establishment of the Borrower shall
be submitted to the Lender.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	3	)	 	The Borrower has provided its internal authorization
document (such as shareholders’ resolution, board resolution) approving
(or authorizing others to approve) the facilities hereunder and
authorizing representative(s) to accept and sign the terms, conditions
and documents in connection with the facilities hereunder in strict
compliance with its articles of association and the PRC Company Law (or
equivalent or similar law if the Borrower is a foreign entity).
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	4	)	 	In the event that the Lender’s making available any
facility hereunder is subject to regulatory approval or the completion of
other procedures with the regulator(s), the acquisition of such
regulatory approval and the completion of such procedures with
regulator(s).
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	5	)	 	The Lender is satisfied that all the security(ies)
stated in the “Security” item above (if any) has/have been established
and is/are valid and enforceable. The security provider’s internal
authorization document (such as shareholders’ resolution, board
resolution) approving (or authorizing others to approve) the provision of
the Security and authorizing representative(s) to accept and sign the
terms, conditions and documents in connection with the Security in

5

 

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	strict compliance with its articles of association and the PRC Company Law (or
equivalent or similar law if the security provider is a foreign entity)
has been duly made and submitted to the Lender.

	 	 	 	 	 

	Undertaking / Covenants

	 	 :
	 	You/the Guarantor will be required for so long as this facility is
available to you to comply with the following covenants/undertakings.
Your/the Guarantor’s compliance or otherwise with the following covenant(s)/undertakings
will not in any way prejudice or affect our right to suspend,
withdraw or make demand in respect of the whole or any part of the facilities
made available to you at any time. By signing this letter, you expressly
acknowledge that we may suspend, withdraw or make demand for repayment of the
whole or any part of the facilities at any time notwithstanding the fact that
the following covenants/undertakings are included in this letter and whether
or not you/the Guarantor is in breach of any such covenants/undertakings.

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	1	)	 	The Borrower agrees that all borrower’s
undertakings set out in Article 21 of the Interim Measures on Regulation
of Working Capital Loans issued by China Banking Regulatory Commission
on 12 February 2010 apply to this facility letter;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	2	)	 	The Borrower shall open an operating account with
the Lender or shall upon request provide to the Lender evidence showing
its fund flow situation if those operating accounts are opened with a
bank other than the Lender.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	3	)	 	The Borrower shall promptly inform the Lender of
any of the Borrower’s connected transactions which amounts to in
aggregate over 10% of its net assets with the details to the
satisfaction of the Lender.

	 	 	 	 	 	 	 	 	 

	Other
Conditions

	 	:
	 	 	1	)	 	Without prejudice to any security or other priority right to which
the Lender is entitled (if any), this facility shall rank at least
pari-passu with all present and future borrowings of the Borrower. The Borrower
undertakes to advise the Lender in advance of any future borrowings.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	2	)	 	The Borrower should not create or attempt to
create or permit to subsist any mortgage, debenture, charge, pledge,
lien or other encumbrance upon, or permit any lien or other encumbrance
(save a lien arising by operation of law in the ordinary course of
trading) on the whole or any part of present or future assets of the
Borrower without Lender’s prior written consent.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	3	)	 	Half-yearly and audited yearly financial statements of the Borrower and
the Guarantor to be prepared by qualified accountants shall be provided to
the Lender whenever available but in any event no later than 90 days and
120 days from the financial

6

 

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 	 	half-year-ends and year-ends respectively.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	4	)	 	Other financial or operational information of the
Borrower as from time to time reasonably requested by the Lender.

	 	 	 	 	 

	Expenses

	 	:
	 	All out-of-pocket expenses including but not limited to the PRC stamp duty and the
legal fees in relation to the preparation, negotiation, execution and enforcement of
this facility shall be borne by the Borrower.
	 
	 	 	 	 
	Taxation and
Deduction

	 	:
	 	All payments of principal, interest, fees and other expenses shall be
made by the Borrower free and clear of taxes, levies, imposts, duties,
charges or withholding of whatsoever nature.
	 
	 	 	 	 
	Assignment

	 	:
	 	Without prejudice to any right of assignment enjoyed by the Lender pursuant to law or any
contract, the Lender may, without any party’s consent, assign any and/or all of its rights and
obligations hereunder to any HSBC Group member(s) that are/is more than 50% owned or controlled by
HSBC Group or any of the Lender’s branch(es) (if any).
	 
	 	 	 	 
	Governing Law

	 	:
	 	This letter shall be governed by and construed in accordance with the laws of the People’s
Republic of China.
	 
	 	 	 	 
	Jurisdiction

	 	:
	 	The Borrower submits to the non-exclusive jurisdiction of the PRC court at the principal office of
the Lender. Nothing in this Clause limits the right of the Lender to bring proceedings against the
Borrower in connection with this facility in any other court of any competent jurisdiction.

(i) Section 83 of the HK Banking Ordinance and (ii) the CBRC Administration Rules on the
Connected Transactions of Commercial Banks with Insiders and Shareholders (the “CBRC Rules on
Connected Transactions”):

Please note that Section 83 of the Banking Ordinance and the CBRC Rules on Connected Transactions
have imposed on us as a bank certain limitations on advances to persons related to our directors
or employees or advances that are of the “connected transaction” nature. In acknowledging this
Facility Letter you should advise us whether you are in any way related to any of our directors or
employees within the meaning of Section 83 or otherwise are a “connected party” defined in the
CBRC Rules on Connected Transactions and in the absence of such advice we will assume that you are
not so related. We would also ask, should you become so related subsequent to acknowledging this
Facility Letter, that you immediately advise us in writing.

We may provide any information relating to any of your accounts with us and any facilities we may
provide to you from time to time or their conduct or any other information concerning your
relationship with us to any other company or office which at the relevant time belongs to or is
part of the HSBC Group.

7

 

The facility offer will remain open for acceptance until the close of business on 30 November 2010
and if not accepted by that date will be deemed to have lapsed (unless otherwise agreed by us in
writing).

We shall be grateful if you could arrange for the authorized signatory(ies) of your company in
accordance with the terms of the shareholders’ resolution or board resolution (as the case may be)
to be given to us, to sign and return to us the duplicate copy of this letter to signify your
understanding and acceptance of the terms and conditions under which the facility is granted.

We look forward to the establishment of our mutually beneficial and lasting relationship.

Yours faithfully,

	 	 	 	 	 

	For and on behalf of

HSBC Bank (China) Company Limited

Shenzhen Branch

	 	Accepted by

Zastron Electronic (Shenzhen) Company 

Limited

	(SEAL) 	 
	 
	 	 	 	 
	/s/ Frank Chau
 

Frank Chau

Vice President
 Commercial Banking

	 	/s/ Illegible
 
Authorised
Signature(s) &

Company Chop

Date: 17 Nov 2010
	 	 
	 
	 	 	 	 
	/s/ Dick Wong
 

Dick Wong

Regional Manager

Southern & Western China

Commercial Banking

	 	 	 	 

8

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