Document:

Our Ref: Commercial
Banking - XXXXXXXXXXXXXXXXXX

 

Confidential

 

27 November
2012

 

Sun Line Industrial
Limited

Room 1 21/F

Aitken Vanson
Centre

61 Hoi Yuen
Road

Kwun Tong

Kowloon

 

Attention:
Mr. Sze-To Kin Sun

 

Dear Sirs,

 

BANKING FACILITIES

 

With
reference to our recent discussions, we, Hang Seng Bank Limited (the "Bank") have reviewed your banking facilities and
are pleased to offer the following revised banking facility/ facilities (the "Facilities") to the borrower(s) specified
below (the "Borrower").

 

The
Facilities will be made available on the terms and conditions set out in this letter and the Standard Terms and Conditions for
Banking Facilities attached and upon satisfactory completion of the security specified below.

 

The
Facilities are subject to review at any time and in any event by 30 April 2013 and also subject to our overriding right of repayment
on demand, including the right to call for cash cover on demand for prospective and contingent liabilities. The Bank shall have
an unrestricted discretion to cancel or suspend, or determine whether or not to permit drawings in relation to, the Facilities.

 

		1.	Borrower

 

Sun
Line Industrial Limited

Allied
Sun Corporation Limited

Broadway
Industrial Holdings Limited

Broadway
Precision Technology Limited

Sun
Line Precision Limited

 

 

    	 

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

		2.	Facilities and Limits

 

		(i)	Facilities available to Allied Sun Corporation Limited, Broadway Industrial Holdings Limited, Broadway Precision Technology
Limited, Sun Line Industrial Limited and Sun Line Precision Limited ("Borrowing Group I")

 

	Combine Limit	 	HKD50,000,000
	 	 	 
	Overdraft (OD1)	 	(HKD1,000,000)
	 	 	 
	Overdraft (OD2)	 	(HKD1,000,000)
	 	 	 
	Overdraft (OD3)	 	(HKD1,000,000)
	 	 	 
	Overdraft (OD4)	 	(HKD1,000,000)
	 	 	 
	Overdraft (OD5)	 	(HKD1,000,000)
	 	 	 
	Revolving Loan Facility (RLN)	 	(HKD10,000,000)
	 	 	 
	Documentary Credits (DC)	 	(HKD50,000,000)
	 	 	 
	- Trust Receipt (TR)	 	[(HKD50,000,000)]
	 	 	 
	Import Trade Loans (ITL)	 	(HKD50,000,000)
	 	 	 
	Treasury Product(s) Facility (ERL1)	 	USD8,840,000

(Notional Limit)
	 	 	 
	Total	 	HKD50,000,000
	 	 	 
	 	 	USD8,840,000

 

		(ii)	Facilities available to Broadway Industrial Holdings Limited and Sun Line Industrial Limited ("Borrowing Group II")

 

	Term Loan Facility (TL1)	 	HKD20,000,000 *
	 	 	 
	Total	 	HKD20,000,000

 

		(iii)	Facilities available to Broadway Precision Technology Limited and Sun Line Precision Limited ("Borrowing Group III")

 

	Treasury Product(s) Facility (ERL2)	 	HKD40,000,000

(Notional Limit)
	 	 	 
	Term Loan Facility (TL2)	 	HKD20,000,000 #
	 	 	 
	Total	 	HKD60,000,000

 

 

    	2

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

	Grand Total	 	HKD130,000,000
	 	 	 
	 	 	USD8,840,000

 

Note:

		(a)	The aggregate outstanding under OD1, OD2, OD3, OD4, OD5, RLN, TR and ITL facilities shall not at any time exceed HKD50,000,000.

		(b)	The aggregate outstanding under OD1, OD2, OD3, OD4 and OD5 facilities shall not at any time exceed HKD1,000,000.

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

		*	TL1 facility will be cancelled upon the drawdown of TL2 facility.

		#	Drawdown of TL2 facility is only for repayment of the outstanding balance of TL1 facility.

 

		3.	Facilities and Conditions

 

	Overdraft Facility (OD1)

(For Borrowing Group I)	:	
        Account
        No.: XXXXXXXX of Sun Line Industrial Limited

         

        Interest:
        0.25% per annum over BLR on daily balances, payable monthly in arrears.

         

        Interest
        on Unauthorized Overdraft: 8% per annum over BLR

	 	 	 
	Overdraft Facility (OD2)

(For Borrowing Group I)	:	
        Account
        No.: XXXXXXXX of Allied Sun Corporation Limited

         

        Interest:
        0.25% per annum over BLR on daily balances, payable monthly in arrears.

         

        Interest
        on Unauthorized Overdraft: 8% per annum over BLR

	 	 	 
	Overdraft Facility (OD3)

(For Borrowing Group I)	:	
        Account
        No.: XXXXXXXX of Sun Line Precision Limited

         

        Interest:
        0.25% per annum over BLR on daily balances, payable monthly in arrears.

         

        Interest
        on Unauthorized Overdraft: 8% per annum over BLR

	 	 	 
	Overdraft Facility (OD4)

(For Borrowing Group I)	:	
        Account
        No.: XXXXXXXX of Broadway Industrial Holdings Limited

         

        Interest:
        0.25% per annum over BLR on daily balances, payable monthly in arrears.

 

 

    	3

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

	 	 	Interest on Unauthorized Overdraft: 8% per annum over BLR
	 	 	 
	Overdraft Facility (OD5)

(For Borrowing Group I)	:	
        Account
        No.: XXXXXXXX of Broadway Precision Technology Limited

         

        Interest:
        0.25% per annum over BLR on daily balances, payable monthly in arrears.

         

        Interest
        on Unauthorized Overdraft: 8% per annum over BLR

	 	 	 
	Revolving Loan Facility

(For Borrowing Group I)	:	
        Facility
        Amount: HKD10,000,000

         

        Drawdown:
        Drawdown can be made in HKD, subject to availability as determined at the Bank's discretion. For any drawdown, the Borrower shall
        give the Bank one Business Day prior written notice.

         

        In
        a minimum amount of HKD1,000,000 and an integral multiple of HKD1,000,000.

         

        Availability
        Period: Subject to the Bank's periodic review.

         

        Interest
        Rate and Payment: 2% per annum over HIBOR or the Bank's Cost of Funds, whichever is higher, payable at the end of each interest
        period or quarterly in arrears if 6 months period is selected. The Borrower may select an interest period which shall be 1/2/3/6
        Month(s).

         

        Repayment:
        Each loan shall be repayable on the maturity date of such loan drawdown unless the Bank allows for a rollover.

         

        Prepayment:
        Voluntary prepayment is not permitted during an interest period.

	 	 	 
	Documentary Credits

(For Borrowing Group I)	:	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.

 

 

    	4

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

	Trust Receipt

(For Borrowing Group I)	:	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.
	 	 	 
	Import Trade Loans

(For Borrowing Group I)	:	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 120 days.
	 	 	 
	 	 	Condition(s):
	 	 	(i)	The total tenor of the ITL facility shall be 180 days minus the invoices date but not exceed 120 days.
	 	 	(ii)	The Borrower shall provide to the Bank certified copies of monthly statement from the vendors for the drawdown of the ITL facility.
	 	 	 
	For TR and ITL facilities	:	
        Interest:

        On aggregate amount up to HKD25,000,000 – 1.25% per annum over HIBOR or the Bank's Cost of Funds, whichever is higher for HKD loan and 1.25% per annum over
LIBOR or the Bank's Cost of Funds, whichever is higher for Foreign Currency loan.

         

        On aggregate amount over HKD25,000,000
        but not exceeding HKD50,000,000 – 1.75% per annum over HIBOR or the Bank's Cost of Funds, whichever is higher
        for HKD loan and 1.75% per annum over LIBOR of the Bank's Cost of Funds, whichever is higher for Foreign Currency loan.

	 	 	 
	Treasury Product(s) Facility (ERL1)

(For Borrowing Group I)	:	
        Product: Forward Exchange/Option

         

        Notional Amount: USD8,840,000

         

        Terms and Conditions:

        All transactions are subject to the terms
        of an ISDA Master Agreement between the Borrower and the Bank.

         

        The Bank reserves the right at its absolute
        discretion to decide whether or not this facility may be utilised in any particular instance, to specify conditions on which it
        may be utilised and the terms of any individual transaction.

 

 

    	5

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

	 	 	
        Treasury
        Product(s) facilities remain subject to the Bank's overriding right to call for cash cover on demand if in the Bank's view a negative
        foreign exchange position requires such cover. Further, the Bank may close out any or all of the Borrower's outstanding forward
        foreign exchange contracts and demand settlement of the balance due.

         

        In
        consideration of the Bank's provision of / transacting the Products to / with the Borrower, Borrower hereby undertakes to the Bank
        that the Borrower's engagement of the Products with the Bank are for genuine hedging purpose and will not constitute over hedging.

	 	 	 
	
        Treasury Product(s)
        Facility (ERL2)

        (For Borrowing
        Group III)
	:	
        Product:
        Interest Rate Swap

         

        Notional
        Amount: HKD40,000,000

         

        Terms and
        Conditions:

        All
        transactions are subject to the terms of an ISDA Master Agreement between Broadway Precision Technology Limited and Sun Line Precision
        Limited and the Bank.

         

        The
        Bank reserves the right at its absolute discretion to decide whether or not this facility may be utilised in any particular instance,
        to specify conditions on which it may be utilised and the terms of any individual transaction.

         

        Treasury
        Product(s) facilities remain subject to the Bank's overriding right to call for cash cover on demand if in the Bank's view a negative
        foreign exchange position requires such cover. Further, the Bank may close out any or all of Broadway Precision Technology Limited
        and Sun Line Precision Limited's outstanding forward foreign exchange contracts and demand settlement of the balance due.

         

        In
        consideration of the Bank's provision of / transacting the Products to / with Broadway Precision Technology Limited and Sun Line
        Precision Limited, Broadway Precision Technology Limited and Sun Line Precision Limited hereby undertakes to the Bank that the
        Broadway Precision Technology Limited and Sun Line Precision Limited's engagement of the Products with the Bank are for genuine
        hedging purpose and will not constitute over hedging.

 

 

    	6

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

	Term Loan Facility (TL1)	:	Loan Account Nos.:  	(1) XXXXXXXX
	(For Borrowing Group II)	 	 	(2) XXXXXXXX
	 	 	 
	 	 	Outstanding Loan Amount:
	 	 	(1)  HKD4,800,000 as of 23 November 2012
	 	 	(2)  HKD15,200,000 as of 23 November 2012
	 	 	 
	 	 	Original Loan Amount: HKD40,000,000
	 	 	 
	 	 	Final Maturity Date:  	(1) 8 September 2014 
	 	 	 	(2) 8 September 2014
	 	 	 
	 	 	Interest Rate and Payment: 1.25% per annum over 1/2/3 month(s) HIBOR or the Bank’s Cost of Funds, whichever is higher as selected by Sun Line Industrial Limited and Broadway Industrial Holdings Limited or an all-in rate of 3.32% per per annum with Interest Rate Swap selected, whichever is higher. Interest shall be payable at the end of each interest period. No Interest Period shall extend beyond the Final Maturity Date.
	 	 	 
	 	 	Repayment: Principal is repaid by 16 quarterly instalments, commencing 3 months after drawdown.
	 	 	 
	 	 	All sums which may become due to the Bank from time to time in respect of this facility (including but not limited to principal and interest) are to be directly debited from the account maintained with the Bank.
	 	 	 
	 	 	Prepayment: Prepayment (in whole or in part) is allowed provided that the Bank receives 7 Business Days' prior written notice and such prepayment is made on an interest payment date.
	 	 	 
	Term Loan Facility (TL2)

(For Borrowing Group III)	 	
        Loan
        Amount: HKD20,000,000 or Equivalent to the outstanding loan balance under loan A/C no. XXXXXXXX whichever is lower.

         

        Purpose:
        For refinancing of TL1 facility

         

        Final
        Maturity Date: 8 September 2014

         

        Drawdown
        Availability Period: Within 3 months from the date of this letter.

 

 

 

    	7

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

	 	 	Drawdown: Drawdown can be made on any interest payment day of TL1 facility
    within the availability period by giving the Bank three Business Days prior written notice and the drawdown may be in one
    lump sum.
	 	 	 
	 	 	Interest Rate and Payment:
	 	 	The rate of interest shall be:-
	 	 	 	(i)	1.25% per annum over 1/2/3 month(s) HIBOR or the Bank's Cost of Funds, whichever is higher as selected by Broadway Precision Technology Limited and/or Sun Line Precision Limited, or
	 	 	 	(ii)	an all-in rate of 3.32% per annum with Interest Rate Swap selected, whichever is higher
	 	 	 
	 	 	Interest shall be payable at the end of each interest period. No Interest Period shall extend beyond the Final Maturity Date.
	 	 	 
	 	 	Repayment: Principal is repaid by 8 quarterly instalments, commencing from
    7 March 2013.
	 	 	 
	 	 	All sums which may become due to the Bank from time to time in respect of this facility (including but not limited to principal and interest) are to be directly debited from the account maintained with the Bank.
	 	 	 
	 	 	Prepayment: Prepayment (in whole or in part) is allowed provided that the
    Bank receives 7 Business Days' prior written notice and such prepayment is made on an interest payment date.

 

		4.	Security

 

The
availability of the Facilities is conditional upon the Bank’s receipt of the following documents in form and substance satisfactory
to the Bank:-

 

For the Borrower

 

		(1)	A Guarantee in the Bank's standard form for HKD10,140,000 from Sze-to Kin Sun.

 

		(2)	A Guarantee in the Bank's standard form for HKD10,140,000 from Plastec International Holdings
Limited.

 

 

    	8

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

For
Allied Sun Corporation Limited

 

		(1)	An ISDA Master Agreement, with an ISDA Schedule to the Master Agreement, made between Allied Sun
Corporation Limited and the Bank.

 

For
Sun Line Precision Limited

 

		(1)	An ISDA Master Agreement, with an ISDA Schedule to the Master Agreement, made between Sun Line
Precision Limited and the Bank.

 

For
Broadway Precision Technology Limited

 

		(1)	An ISDA Master Agreement, with an ISDA Schedule to the Master Agreement, made between Broadway
Precision Technology Limited and the Bank.

 

For
Broadway Precision Technology Limited and Sun Line Precision Limited

 

		(1)	A Guarantee in the Bank's standard form for HKD22,600,000 from Sze-to Kin Sun.

 

		(2)	A Guarantee in the Bank's standard form for HKD22,600,000 from Plastec International Holdings Limited.

 

The
Borrower and the corporate guarantor(s) (if any) and the corporate security provider(s) (if any) shall provide certified true copies
of any consent, license, approval or authorization of, or registration or declaration with any governmental authority, bureau or
agency required in connection with the execution, delivery, performance, validity and enforceability of this facility and all other
documents required by the Bank.

 

The
Borrower and the corporate guarantor(s) (if any) and the corporate security provider(s) (if any) shall provide such other documents,
items or evidence as the Bank may reasonably request from time to time.

 

The
Bank shall continue to hold:-

 

For
Broadway Industrial Holdings Limited and Sun Line Industrial Limited

 

		(1)	Guarantee dated 12 August 2010 for HKD50,000,000 from Plastec International Holdings Limited.

 

		(2)	Guarantee dated 12 August 2010 for HKD50,000,000 from Sze-to Kin Sun,

 

For
the Borrower

 

		(1)	Guarantee dated 30 May 2012 for HKD50,000,000 from Plastec International Holdings Limited.

 

 

    	9

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

		(2)	Guarantee dated 30 May 2012 for HKD50,000,000 from Sze-to Kin Sun.

 

For
Broadway Industrial Holdings Limited

 

		(1)	ISDA Master Agreement, with the ISDA Schedule to the Master Agreement, dated 18 August 2010 made
between Broadway Industrial Holdings Limited and the Bank.

 

For
Sun Line Industrial Limited

 

		(1)	ISDA Master Agreement, with the ISDA Schedule to the Master Agreement, dated 18 August 2010 made
between Sun Line Industrial Limited and the Bank.

 

		5.	Undertakings

 

The
Borrower and the under-mentioned undertaking parties (if any) shall continue to undertake to the Bank as follows:-

 

		(1)	The Borrower undertakes that for any Facilities denominated in Renminbi (if any), it will not directly
or indirectly on-lend the proceeds of such Facilities to (i) any individuals and (ii) any Designated Business Customers if the
proceeds of such Facilities (or any other Renminbi proceeds derived therefrom) are directly or indirectly credited to Renminbi
accounts for the category of Designated Business Customers which are maintained for limited purposes of handling Renminbi cashnotes
obtained in their ordinary course of business as Designated Business Customers and for Renminbi bond investment.

 

"Designated
Business Customers" means establishments that have had a business relationship with a Hong Kong Renminbi business participating
bank for more than three years which engage in commercial retail, catering, accommodation, transportation services, communications
services, medical services, or educational services, including such establishments that have had a business relationship with such
participating bank for less than three years, but with concrete evidence to show that they have the actual relevant business background.

 

The
Borrower shall and agree to indemnify the Bank for all losses and liabilities incurred or suffered by the Bank arising out of or
in connection with any breach of the above undertaking by the Borrower.

 

		(2)	The Borrower and the corporate guarantor(s) (if any) shall provide to the Bank a certified copy
of its annual audited accounts/financial statements within 270 days after the end of each financial year and such other relevant
financial information as the Bank may from time to time reasonably request.

 

 

    	10

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

		(3)	Each of the Borrower and the corporate guarantor(s) (if any) and the corporate security provider(s)
(if any) shall immediately inform the Bank once there are changes of its directors or beneficial shareholders or amendment to its
memorandum and articles of association or equivalent constitutional documents and shall ensure that such changes/amendment are
updated in the company registry of its place of incorporation promptly.

 

		6.	Fees

 

Upon
completing each review of the Facilities, the Bank is authorised to debit the current account maintained by the Borrower with the
Bank for the facility review fee as the Bank may prescribe from time to time.

 

If
applicable, a valuation fee shall be payable by the Borrower for the purpose of valuation of the property by surveyor appointed
by the Bank in its sole discretion. The Bank is authorised to debit the current account maintained by the Borrower with the Bank
for such valuation fee as the surveyor may charge, notwithstanding that the Borrower does not accept this Facility Letter, the
Facilities are not made available due to the Borrower failing to comply with the terms and conditions set out in this Facility
Letter, or the Facilities are cancelled or suspended at any time.

 

Section
83 of the Banking Ordinance

 

Section
83 of the Banking Ordinance (Cap. 155, Laws of Hong Kong) has imposed on us as a bank certain limitations on advances to persons
related to our directors or employees. In accepting the Facilities, the Borrower should advise us whether the Borrower is in any
way related to any of our directors or employees within the meaning of Section 83 and in the absence of such advice we will assume
that the Borrower is not so related. We would also ask that if the Borrower becomes so related subsequent to accepting the Facilities,
the Borrower should immediately advise us in writing.

 

Please
note that in reviewing the application, we may make reference to the credit report(s) of the Borrower(s)/guarantor(s)/security
provider(s) (as the case may be) from the credit reference agency(ies), If you wish to access the report(s) yourself, you can
contact the credit reference agency(ies) directly at the following address:

Commercial
credit reference agency:

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Tel:
XXXXXXXX ; Fax: XXXXXXXX.

 

Please
arrange for the enclosed copy of this letter to be signed by the Borrower and all guarantors and security providers of the Facilities
and return the same to the Bank with Board Resolution(s) and Shareholder's Resolution(s) (if applicable) of the Borrower and all
guarantors and security providers before 27 December 2012, failing which our offer shall lapse unless it is extended by us at our
absolute discretion.

 

 

    	11

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

By
accepting this Facility Letter, you would agree to channel all your remittance transactions and insurance arrangement to the Bank.
Our Cash Management & Payment Services Department and Commercial Sales Department would contact you to offer our services on
remittance and insurance respectively.

 

Should
you have any queries, please do not hesitate to contact the following persons:-

 

	Queries on	 	Name	 	Telephone No.
	Banking arrangement	 	Ms. XXXXXXXX	 	XXXXXXXX
	Factoring arrangement	 	Ms. XXXXXXXX	 	XXXXXXXX
	Insurance	 	Mr. XXXXXXXX	 	XXXXXXXX
	 	 	Mr. XXXXXXXX	 	XXXXXXXX
	Remittance	 	Mr. XXXXXXXX 	 	XXXXXXXX
	 	 	Ms. XXXXXXXX	 	XXXXXXXX
	 	 	Remittance Hotline	 	21986919
	Wealth management	 	Ms. XXXXXXXX	 	XXXXXXXX
	Execution of documents	 	Documentation Hotline	 	21982094

 

Kindly
return the accepted Facility Letter and executed documents to Credit Operations Manager, Credit Operations Department, L21, Tower
2, Enterprise Square V, 38 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong.

 

We
trust that you will make active use of the Facilities and are pleased to be of continued assistance.

 

Yours
faithfully,

For
Hang Seng Bank Limited

 

	(Signed)	 	(Signed)
	Authorized Signatory	 	Authorized Signatory
	Senior Vice President	 	Vice President
	Portfolio Management and Compliance	 	Portfolio Management and Compliance
	Corporate and Commercial Banking	 	Corporate and Commercial Banking
	 	 	 
	VL/dc	 	 

 

 

    	12

    	 

    

 

Sun Line Industrial Limited

Our Ref: Commercial Banking -
XXXXXXXXXXXXXXXXXX

 

I/We
hereby accept the Facilities and agree to be bound by all the terms and conditions set out in this letter and the Standard Terms
and Conditions for Banking Facilities, which I/we have read and understood.

 

	
        (Signed
        by SZE-TO Kin Sun

        and
        NING Ho Leung)
	 	
        (Signed
        by SZE-TO Kin Sun

        and
        NING Ho Leung)

	Sun Line Industrial Limited	 	Allied Sun Corporation Limited
	 	 	 
	 	 	(Signed by SZE-TO Kin Sun
	(Signed by SZE-TO Kin Sun)	 	and NING Ho Leung)
	Broadway Industrial Holdings Limited	 	Broadway Precision Technology Limited
	 	 	 
	(Signed by SZE-TO Kin Sun	 	 
	and NING Ho Leung)	 	 
	Sun Line Precision Limited	 	 

 

I/We
agree to act as guarantor/ security provider of the Facilities upon the terms and conditions set out in this letter and the Standard
Terms and Conditions for Banking Facilities.

 

	(Signed by SZE-TO Kin Sun	 	 
	and NING Ho Leung)	 	(Signed)
	Plastec International Holdings Limited	 	Sze-to Kin Sun

 

29
NOV 2012

 

 

    	13Strictly
Private & Confidential

 

Our Ref: XXXXXXXXXXXXXXX

 

9th May, 2012

 

Sun Line Industrial
Limited

Broadway Industrial
Holdings Limited

Broadway Precision
Technology Limited

Sun Line Precision
Limited

Unit 2101,
Aitken Vanson Centre,

61 Hoi Yuen
Road,

Kwun Tong,
Kowloon

 

Attn: Mr.
Szeto Kin Sun, Chairman

 

Dear
Sirs,

 

	RE:	UNCOMMITTED
    GENERAL BANKING FACILITIES

 

We,
The Bank of Tokyo-Mitsubishi UFJ, Ltd. acting through our Hong Kong Branch, are pleased to inform you that we hereby agree to provide
the captioned banking facilities to your esteemed companies upon and subject to the following terms and conditions:-

 

	1.	CO-BORROWERS/	 	 
	 	CO-OBLIGORS	:	Sun Line Industrial Limited 
	 	 	 	Broadway Industrial Holdings Limited 
	 	 	 	Broadway Precision Technology Limited 
	 	 	 	Sun Line Precision Limited
	 	 	 	 
	 	 	 	(collectively the “Co-Borrowers/Co-Obligors” and each a “Co-Borrower/Co-Obligor”)
	 	 	 	 
	2.	LENDER/ISSUER	:	The Bank of Tokyo-Mitsubishi UFJ, Ltd. acting through its Hong Kong Branch
	 	 	 	 
	3.	GUARANTOR	:	Plastec Technologies Limited

 

	4.	TYPE AND AMOUNT	 	 	Limit/(Sublimit)	 
	 	OF THE FACILITIES	:	(1) (i) Import Line	HK$80,000,000.00	 
	 	 	 	(ii) Import Invoice Financing	(HK$80,000,000.00)	 
	 	 	 	(iii) Short-term Revolving Loan	(HK$30,000,000.00)	 
	 	 	 	(iv) Overdraft	(HK$5,000,000.00)	 
	 	 	 	Total	HK$80,000,000.00	 

 

	BRANCH/SUB-BRANCH	 	ADDRESS	 	TEL.
    NO.	 	FAX.
    NO.
	 	 	 	 	 	 	 
	Hong Kong
    Branch	 	B/F., AIA Central, 1 Connaught
    Road, Central, Hong Kong. 

G.P.O. Box 411, Hong Kong        SWIFT: BOTKHKHH	 	2823
    6666	 	2865
    2116
	 	 	 	 	 	 	 
	Kowloon
    Branch	 	15/F., Peninsula Office Tower,
    18 Middle Road, Tslmshalsul, Kowloon.	 	2316
    4333	 	2724
    0365
	 	 	 	 	 	 	 
	East Tslmshalsul
    Sub-Branch	 	Unlla 127-130, 1/F., Ensl
     Ocean Centre, 98 Granville Road, Tslmshalsul East, Kowloon.	 	2369
    5407	 	2369
    4469

 

    	Page 1 of 13

    	 

    

 

 

CONTINUATION

 

	 	 	 	(2) Negotiation of Export	HK$5,000,000.00
	 	 	 	     Bills drawn under L/C	 
	 	 	 	 	 
	 	 	 	(3) Forward Foreign Exchange Contracts	(limit as determined by the Lender/Issuer at its sole discretion)
	 	 	 	(collectively the “Facilities”)	 

 

	 	 	 	Provided that the aggregate principal amounts advanced to and outstanding from the Co-Borrowers/Co-Obligors at any one time shall not exceed the respective limit or sub-limit for the Facilities set out above.
	 	 	 	 
	5.	PURPOSE	:	General working capital and trade financing requirements

 

	6.	AVAILABILITY	:	(1)	Subject to paragraph (2) below and
subject to the Lender/Issuer’s regular review from time to time, the Facilities will be available to the Co-Borrowers/Co-Obligors
on a continuing basis.
	 	 	 	 	 
	 	 	 	(2)	Notwithstanding anything contained in this
    facility letter, the Lender/Issuer reserves the absolute right at any time and from time to time to refuse any drawdown
    and/or utilization pursuant to this facility letter, to demand immediate repayment of all or any principal and interest
    outstanding hereunder or in respect of the Facilities, to call on demand cash cover for the  contingent and prospective
    liabilities of the Co-Borrowers/Co-Obligors or any of them and/or to vary, terminate or cancel all or part of the Facilities
    and the terms governing thereof.

 

	7.	GUARANTEE	:	The Guarantor shall irrevocably and
    unconditionally guarantee the liabilities of the Co-Borrowers/Co-Obligors under this facility letter or in respect of the
    Facilities by executing the Lender/Issuer’s standard form of continuing guarantee, to the  extent of HK$80,000,000.00
    plus accrued interest and any other sums payable hereunder or in respect of the Facilities (the
    “Guarantee”).
	 	 	 	 
	8.	FACILITY FEE	:	The Co-Borrowers/Co-Obligors shall pay to the Lender/Issuer a non-refundable facility fee of HK$20,000.00 on the date of acceptance of this facility letter by the Co-Borrowers/Co-Obligors.

 

    	Page 2 of 13

    	 

    

 

 

CONTINUATION

 

	9.	SPECIFIC TERMS APPLICABLE TO IMPORT LINE

 

	 	(1) Facility Type	:	The Import Line shall be available in any one or more of the following ways:

  

	 	(i)	Issuance of letters of credit (“L/Cs”) at sight or with usance up to 4 months and L/C tenor up to 6 months;
	 	 	 
	 	(ii)	Trust Receipt (“T/R”) loans up to 4 months; and/or
	 	 	 
	 	(iii)	Issuance of shipping guarantees under L/Cs opened by the Lender/Issuer.
	 	 	 
	 	Provided that the combined usance of the relevant L/C and the tenor of the relevant T/R loan of any one transaction shall not exceed 4 months.

 

	 	(2) Fee & Charges	:	(i)	L/C opening commission

 

	 	 	For the first US$50,000.00

(or its equivalent)	1/8%
	 	 	For the portion above US$50,000.00

(or its equivalent), if any.	1/32%
	 	 	 	 
	 	(ii)	Commission in lieu of exchange	 
	 	 	 	 
	 	 	
        For the first
        US$50,000.00

        (or its equivalent)
	1/8%
	 	 	
        For the portion
        above US$50,000.00

        (or its equivalent),
        if any.
	1/32%
	 	 	 	 
	 	(iii)	Collection commission	 
	 	 	 	 
	 	 	For the first US$50,000.00 

(or its equivalent)	1/8%
	 	 	
        For the portion
        above US$50,000.00

        (or its equivalent),
        if any.
	1/32%
	 	 	 	 
	 	(iv)	Interest rate for T/R loans	 
	 	 	 
	 	 	1.25% per annum above the Lender/Issuer’s cost of funds.

 

    	Page 3 of 13

    	 

    

 

 

CONTINUATION

  

	 	(v)	Usance commission 	 	Per month
	 	 	 	 	 
	 	 	For the first US$50,000.00 	 	1/16%
	 	 	(or its equivalent)	 	 
	 	 	For the portion above US$50,000.00 	 	1/48%
	 	 	(or its equivalent), if any.	 	 

 

	 	(3) Other
    Terms & 

      Conditions	:	To the extent not inconsistent with this facility letter, the terms and conditions of the Lender/Issuer’s standard forms of the General Security Agreement Relating To The Import And Export Of Goods shall be deemed incorporated herein.

 

	10.	SPECIFIC TERMS APPLICABLE TO IMPORT INVOICE FINANCING

 

	 	(1) Interest Rate	:	1.25% per annum above the Lender/Issuer’s
cost of funds.
	 	 	 	 
	 	(2) Maximum Tenor	:	4 months from the drawdown date provided that the period from the date of invoice or other documents to the drawdown date plus the tenor of the drawing shall not exceed 6 months.

 

	 	(3) Other Terms & 

      Conditions	:	(i)	Each drawdown of Import Invoice Financing shall only be made available upon presentation of the original or a certified true copy of invoice or debit note(s) or other documents evidencing the purchase of goods with supplier acceptable to the Lender/Issuer for an amount equal to or greater than the amount to be drawn.
	 	 	 	 	 
	 	 	 	(ii)	The full amount including principal and interest shall be settled upon maturity.
	 	 	 	 	 
	 	 	 	(iii)	Funds from each drawdown of Import Invoice Financing shall be directly remitted to the relevant supplier(s) or such other company designated by the relevant supplier as approved by the Lender/Issuer.
	 	 	 	 	 
	 	 	 	(iv)	To the extent not inconsistent with this facility letter, the terms and conditions of the Lender/Issuer’s standard forms of the General Security Agreement Relating To The Import And Export Of Goods shall be deemed incorporated herein.

 

    	Page 4 of 13

    	 

    

 

 

CONTINUATION

 

	11.	SPECIFIC TERMS APPLICABLE TO SHORT-TERM REVOLVING LOAN

 

	 	(1) Drawdown	:	Notice of drawdown shall be given on the phone not later than 11:00 a.m. (Hong Kong time) on the drawdown date specifying the amount of the proposed drawdown, the drawdown date and the interest period required, to be followed by a formal written confirmation prior to actual disbursement of funds.

 

	 	(2) Optional Currencies 	:	(i)	Subject to the Lender/Issuer’s availability of funds, the relevant Co-Borrower/Co-Obligor may at its option make any drawing in Hong Kong Dollars or in any other transferable and convertible currency (“the Optional Currency”) provided that no more than 3 currencies shall be outstanding at the same time and provided further that the rate of conversion from such Optional Currency into Hong Kong Dollars for the purpose of calculating the outstanding hereunder shall be determined by the Lender/Issuer at its sole absolute discretion.
	 	 	 	 	 
	 	 	 	(ii)	The Lender/Issuer may require such minimum length of notice of a proposed drawing in an Optional Currency to be given by the relevant Co-Borrower/ Co-Obligor.

 

	 	(3) Interest Rate	:	1.25% per annum above the Lender/Issuer’s cost of funds.
	 	 	 	 
	 	(4) Interest Periods	:	Subject to the Lender/Issuer’s availability of funds, interest periods of up to 3 months to be selected by the relevant Co-Borrower/Co-Obligor.
	 	 	 	 
	 	(5) Interest Payment 

     and Calculation	:	Interest is payable in arrears on the last day of each interest period (the “Interest Payment Date”) in the currency of the relevant advance and is calculated on the basis of actual number of days elapsed in a year of 360 or 365 days as is customary for transactions involving the relevant currency in the money market.

 

    	Page 5 of 13

    	 

    

 

 

CONTINUATION

 

	 	(6) Repayment	:	Each advance shall be repaid on the Interest Payment Date for the relevant interest period in the currency in which such advance is denominated. Any amount repaid may, subject to the provisions of this facility letter, be redrawn.
	 	 	 	 
	 	(7) Prepayment	:	Prepayment is not allowed and, if allowed, will be subject to penalty as determined by the Lender/Issuer at its sole discretion.

 

	12.	SPECIFIC TERMS APPLICABLE TO OVERDRAFT

 

	 	(1) Interest Rate	:	The prevailing Hong Kong Dollars Prime Rate quoted by the Lender/Issuer from time to time.
	 	 	 	 
	 	(2) Interest Calculation	:	Interest shall be calculated on the daily overdrawn amount and based on a 365-day year.
	 	 	 	 
	 	(3) Other Terms & 

      Conditions	:	To the extent not inconsistent with this facility letter, the terms and conditions of the Lender/Issuer’s standard form Overdraft Agreement shall be deemed incorporated herein.

 

	13.	SPECIFIC TERMS APPLICABLE TO NEGOTIATION OF BILLS DRAWN UNDER L/C

 

	 	(1) Fees & charges	:	Commission in lieu of exchange	 
	 	 	 	 	 
	 	 	 	For the first US$50,000.00	1/8%
	 	 	 	(or its equivalent)	 
	 	 	 	For the portion above US$50,000.00	1/32%
	 	 	 	(or its equivalent), if any.	 

 

	 	(2) Interest Rate	:	1.25% per annum above the Lender/Issuer’s cost of funds.

 

	 	(3) Availability	:	Drawing shall only be allowed when the relevant L/C issuing bank is acceptable to the Lender/Issuer.

 

	 	(4) Other Terms &

       Conditions	:	(i)	The maximum term of each transaction shall
    be 4 months.
	 	 	 	 	 
	 	 	 	(ii)	To the extent not inconsistent with this facility letter, the terms and conditions of the Lender/Issuer’s standard form of the General Security Agreement Relating To The Import And Export Goods shall be deemed incorporated herein.

 

    	Page 6 of 13

    	 

    

 

 

CONTINUATION

 

	14.	SPECIFIC TERMS APPLICABLE TO FORWARD FOREIGN EXCHANGE CONTRACTS

 

	 	(1) Exchange Rate	:	On quotation basis.
	 	 	 	 
	 	(2) Maximum Period For 

      Forward Transactions	:	6 months

 

	 	(3) Other Terms &

       Conditions	:	To the extent not inconsistent with this facility letter, the terms and conditions of the Lender/Issuer’s standard form Agreement For Foreign Exchange Transactions shall be deemed incorporated herein.

 

	15.	CONDITIONS	 	 
	 	PRECEDENT	:	The Facilities are conditional upon the Lender/Issuer’s receipt of the following documents to its satisfaction:

 

	 	 	(1)	the duplicate of this facility letter duly signed by the authorised officer(s) of the Co-Borrowers/Co-Obligors and the Guarantor,
	 	 	 	 
	 	 	(2)	the Lender/Issuer’s standard forms of the Overdraft Agreement, the General Security Agreement Relating To The Import And Export Of Goods and the Agreement For Foreign Exchange Transactions (collectively the “Agreements”) duly executed by the relevant Co-Borrower/Co-Obligor;
	 	 	 	 
	 	 	(3)	a copy, certified as true and complete by a director or the company secretary of each of the Co-Borrowers/Co-Obligors, of the resolution of its board of directors evidencing acceptance of the terms of this facility letter and (if applicable) the Agreements and authorising appropriate officer(s) to operate the Facilities, to do anything in relation to the Facilities and execute all relevant documents including this facility letter and (if applicable) the Agreements with the affixing of the common seal thereon where applicable;

 

    	Page 7 of 13

    	 

    

 

 

CONTINUATION

 

	 	 	(4)	the Guarantee in the Lender/Issuer’s standard form duly executed by the Guarantor under its common seal;
	 	 	 	 
	 	 	(5)	a copy, certified as true and complete by a director or the company secretary of the Guarantor, of the resolution of its board of directors evidencing acceptance of the terms of this facility letter and the Guarantee and authorising appropriate officer(s) to sign this facility letter, the Guarantee and any other relevant documents with the affixing of the common seal thereon (if applicable);
	 	 	 	 
	 	 	(6)	specimen signatures of the  authorised
    officer(s) referred to in paragraphs (3) and (5) above;
	 	 	 	 
	 	 	(7)	copies, certified as true and complete by a director or the company secretary of each of the Co-Borrowers/Co-Obligors and the Guarantor, of its relevant Certificate of Incorporation, Memorandum and Articles of Association and current Business Registration Certificate or any other constitutional documents;
	 	 	 	 
	 	 	(8)	letters of acceptance of appointment duly executed by the process agent in Hong Kong appointed by Broadway Industrial Holdings Limited, Broadway Precision Technology Limited, Sun Line Precision Limited and the Guarantor; and
	 	 	 	 
	 	 	(9)	any other documents requested by the Lender/Issuer including, without limitation, the Lender/Issuer’s standard banking documents.
	 	 	 	 
	 	 	Provided that if any of the documents referred to in paragraphs (6) and (7) above have been provided to the Lender/Issuer before and such documents remain the latest version at the date hereof, the relevant Co-Borrower/Co-Obligor does not need to provide the same to the Lender/Issuer again.

 

    	Page 8 of 13

    	 

    

  

 

CONTINUATION

 

	16. 	UNDERTAKINGS	:	(1)	Each of the Co-Borrowers/Co-Obligors shall provide the Lender/Issuer with the annual audited financial statements of the Co-Borrowers/Co-Obligors and the Guarantor and any other information promptly upon request from the Lender/Issuer.
	 	 	 	 	 
	 	 	 	(2)	Each of the Co-Borrowers/Co-Obligors shall notify the Lender/Issuer of any event that may materially and adversely affect the business and/or the financial position of it or the Guarantor.

  

	17.	PAYMENT	:	All sums payable by the
    Co-Borrowers/Co-Obligors hereunder or in respect of the Facilities, whether of principal, interest or otherwise, shall be
    paid in full without set-off or counter-claim and free from any deduction or withholding and in the currency in which they
    have been advanced or incurred. In the event that the  relevant Co-Borrower/Co-Obligor is prohibited by law from making any
    payment hereunder or in respect of the Facilities free from deductions or withholdings, then such Co-Borrower/Co-Obligor
    shall pay such additional amount to the Lender/Issuer as may be necessary in order that the actual amount received after such
    deductions or withholdings shall equal the  amount that would have been received as if such deductions or withholdings were
    not required.
	 	 	 	 
	18.	DEFAULT INTEREST	:	Without prejudice to any of the other rights,
    powers and remedies of the Lender/Issuer, the Co-Borrowers/Co-Obligors shall pay interest on any overdue amount at the rate
    conclusively determined by the Lender/Issuer to be 5% per annum above whichever is the higher of the prevailing Hong Kong
    Dollars Prime Rate quoted by the Lender/Issuer from time to time or the Lender/Issuer’s cost of funds, or, in  case of
    the overdue amount denominated other than in Hong Kong Dollars, 5% per annum above the Lender/Issuer’s cost of funding
    the overdue amount. The interest amount accrued shall be compounded at the end of each successive interest period as
    determined by the Lender/Issuer.
	 	 	 	 
	19.	EXPENSES	:	
        All
        legal and out-of-pocket expenses are for the account of the Co-Borrowers/Co-Obligors.

        

 

    	Page 9 of 13

    	 

    

   

 

CONTINUATION

 

	20.	INDEMNITY	:	The Co-Borrowers/Co-Obligors shall fully indemnify the Lender/Issuer from and against all claims, actions, demands, payments, proceedings, damages, losses, obligations, liabilities, indebtedness, costs, charges and expenses incurred by the Lender/Issuer in connection with or arising directly or indirectly from the failure of any Co-Borrower/Co-Obligor to perform any of its obligations hereunder or in respect of the Facilities or the preservation or enforcement of any of the Lender/Issuer’s rights hereunder or in connection with the Facilities. The Co-Borrowers/Co-Obligors shall reimburse the same to the Lender/Issuer forthwith on demand.
	 	 	 	 
	21.	NOTICE	:	Except as otherwise provided herein, any notices or communications required or permitted to be given in connection with this facility letter shall be given in writing. Notices from the Co-Borrowers/Co-Obligors or any of them to the Lender/Issuer shall be deemed given upon actual receipt, and notices from the Lender/Issuer to the Co-Borrowers/Co-Obligors or any of them shall be deemed given when given by fax or authenticated telex, or when delivered in person, or two days after being mailed by prepaid registered mail, or when given in any other form to which the Lender/Issuer and the relevant Co-Borrower/Co-Obligor have each given then prior written consents.
	 	 	 	 
	22.	SET-OFF	:	The Lender/Issuer may, at any time without notice or demand, combine or consolidate all or any of the then existing accounts of any of the Co-Borrowers/Co-Obligors with the Lender/Issuer (notwithstanding that such accounts may be in different currencies or may not have matured) and set-off or transfer any sum standing to the credit thereof in or towards satisfaction of any liabilities of the Co-Borrowers/Co-Obligors or any of them to the Lender/Issuer, whether such liabilities are present or future, actual or contingent, primary or collateral, and several or joint.

 

    	Page 10 of 13

    	 

    

  

 

CONTINUATION

 

	23. 	OTHER CONDITIONS	:	(1)	Upon the Lender/Issuer’s receipt of a copy of this facility letter duly accepted by the Co-Borrowers/Co-Obligors and the Guarantor, this facility letter shall supersede the previous facility letter reference no. 060/11-GF-060/CBG1-3 dated 30th June, 2011 to Sun Line Industrial Limited and Broadway Industrial Holdings Limited for all new drawdowns and/or utilization.
	 	 	 	 	 
	 	 	 	(2)	All the undertakings, obligations and liabilities of the Co-Borrowers/Co-Obligors or any of them hereunder or in respect of the Facilities shall be joint and several.

 

	24. 	GOVERNING
    LAW &	 	 
	 	JURISDICTION 	:	This facility letter shall be governed by laws of the Hong Kong Special Administrative Region (“Hong Kong”) and each Co-Borrower/Co-Obligor shall submit to the non-exclusive jurisdiction of Hong Kong Courts.

 

We
look forward to further strengthening the business relationship with your esteemed companies and would be most grateful if you
and the Guarantor could signify the acceptance of this facility letter by signing and returning to us the duplicate of this facility
letter.

 

Yours
faithfully,

For
and on behalf of

THE
BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 

	(Signed)	 
	 	 
	Authorized Signatory	 
	Joint General Manager	 

 

    	Page 11 of 13

    	 

    

  

 

CONTINUATION

 

	Witnessed by	 	We hereby agree to and accept the above terms and conditions as a Co-Borrower/Co-Obligor
	 	 	 
	 	 	For and on
behalf of
	 	 	Sun Line Industrial Limited

 

	 	 	(Signed by SZE-TO Kin Sun
	(Signed by witness)	 	and NING Ho Leung)
	 	 	 
	Name  :	 	Authorised Signatory(ies)

	Title    :	 	Name   :

	Date    :	21 MAY 2012	 	Title     :

	 	 	 	Date     :    21 MAY 2012

 

	Witnessed by	 	We hereby agree to and accept the above terms and conditions as a Co-Borrower/Co-Obligor
	 	 	 
	 	 	For and on behalf of
	 	 	Broadway Industrial Holdings Limited

 

	 	 	(Signed by SZE-TO Kin Sun
	(Signed by witness)	 	and NING Ho Leung)
	 	 	 
	Name  :	 	Authorised Signatory(ies)

	Title    :	 	Name   :

	Date    :	21 MAY 2012	 	Title     :

	 	 	 	Date     :    21 MAY 2012

 

    	Page 12 of 13

    	 

    

  

 

CONTINUATION

 

	Witnessed by	 	We hereby agree to and accept the above terms and conditions as a Co-Borrower/Co-Obligor
	 	 	 
	 	 	For and on behalf of
	 	 	Broadway Precision Technology Limited

 

	 	 	(Signed by SZE-TO Kin Sun
	(Signed by witness)	 	and NING Ho Leung)
	 	 	 
	Name  :	 	Authorised Signatory(ies)

	Title    :	 	Name   :

	Date    :	21 MAY 2012	 	Title     :

	 	 	 	Date     :    21 MAY 2012

 

	Witnessed by	 	We hereby agree to and accept the above terms and conditions as a Co-Borrower/Co-Obligor
	 	 	 
	 	 	For and on
behalf of
	 	 	Sun Line Precision Limited

 

	 	 	(Signed by SZE-TO Kin Sun
	(Signed by witness)	 	and NING Ho Leung)
	 	 	 
	Name  :	 	Authorised Signatory(ies)

	Title    :	 	Name   :

	Date    :	21 MAY 2012	 	Title     :

	 	 	 	Date     :    21 MAY 2012

 

	Witnessed by	 	We hereby agree to and accept the above terms
	 	 	and conditions as the Guarantor
	 	 	 
	 	 	For and on behalf of
	 	 	Plastec Technologies Limited

 

	 	 	(Signed by SZE-TO Kin Sun
	(Signed by witness)	 	and NING Ho Leung)
	 	 	 
	Name  :	 	Authorised Signatory(ies)

	Title    :	 	Name   :

	Date    :	21 MAY 2012	 	Title     :

	 	 	 	Date     :    21 MAY 2012

 

    	Page 13 of 13

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