Document:

Exhibit 10.3

Date:
          21st September 2007

Our Ref:     
CR/MM/TEAM 8/BTB

CONFIDENTIAL

Atlantic Components Limited 

B24-B27, 1/F, Block B, 

Proficient Industrial Centre, 

6 Wang Kwun Road, 

Kowloon Bay,

Kowloon.

Attn.: Mr. Yang Chung Lun

Dear Sirs,

BANKING
FACILITIES

Standard Chartered Bank (Hong Kong) Limited (the “Bank”) is
pleased to offer the following banking facilities (the “Facilities”) to the
Customer below for the purpose(s) of general working capital and trade
finance/treasury requirement, subject to the Bank’s Standard Terms and
Conditions for Banking Facilities and Services (including the Trade Finance
Supplement) and Terms and Conditions for Foreign Exchange Business attached and
the terms and conditions set out in this facility letter.

	
 

	
 

	
A.

	
CUSTOMER:

	
 

	
 

	
 

	
Atlantic
 Components Limited

	
 

	
 

	
B.

	
FACILITY LIMITS:

	
 

	
 

	
 

	
General Banking Facilities

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Type(s) of Facility

	
 

	

 Facility Limit(s)

	
 

	
Designated
 Customer(s) and Sub-limit(s), if applicable

	

	

	

	

	

	

	

	
1.

	
Current
 Account Overdraft

	
 

	
HKD1,000,000.-

	
 

	
•

	
The
 Customer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.

	
Trade
 Finance

	
 

	
HKD24,000,000.-

	
 

	
—

	
 

	
(Please refer to Appendix 1 for

	
 

	
 

	
 

	
 

	
 

	
 

	
product details.)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)
 Trade Finance Group All

	
 

	
 

	
 

	
•

	
The
 Customer (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)
 Trade Finance Group 1

	
 

	
 

	
 

	
•

	
The
 Customer (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)
 Trade Finance Group 2

	
 

	
 

	
 

	
•

	
The
 Customer (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)
 Trade Finance Group 3

	
 

	
 

	
 

	
•

	
The
 Customer (HKD24,000,000.-)

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Total Facility Limit:

	
 

	
HKD25,000,000.-

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

Standard Chartered Bank (Hong Kong) Limited 

Wholesale Bank 

Credit Risk Control

11th Floor Standard Chartered Tower

388 Kwun Tong Road Kwun Tong Hong Kong

	
 

	
 

	
Atlantic Components Limited

	
Page 2

Notes:

	
 

	
 

	
 

	
 

	
•

	
Unutilized
 portion of Facility 1 can be earmarked for Facility 2 but not vice versa.

	
 

	
 

	
 

	
 

	
•

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

	
 

	
 

	
 

	
C.

	
          PRICING AND CONDITIONS:

	
 

	
 

	
 

	
 

	
 

	
1.

	
Current
 Account Overdraft

	
 

	
Interest: 0.5% per annum over the higher of
 Prime or HIBOR, payable monthly in arrears.

	
 

	
 

	
 

	
 

	
 

	
2.

	
Trade
 Finance

	
 

	
Interest:

	
 

	
 

	
 

	
 

	
HKD
 import/export facilities: 0.5% per annum below the Bank’s standard bills
 finance rate.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Foreign
 currency import/export facilities: 1% per annum over the Bank’s standard
 bills finance rates.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commission:

	
 

	
 

	
 

	
 

	
Standard
 rates unless otherwise stipulated.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commission
 in Lieu of Exchange:

	
 

	
 

	
 

	
 

	
First
 USD50,000.-         1/4%

	
 

	
 

	
 

	
Balance
                        1/16%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commission
 on Import Invoice Financing

	
 

	
 

	
 

	
 

	
1/16%
 (minimum HKD250.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Maximum
 tenor/advance percentage for:

	
 

	
 

	
 

	
 

	
Import
 facilities: Combined usance and import loan period of any transaction is not
 to exceed 45 days.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Export
 facilities: 45 days.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Import
 invoice financing is allowed subject to the following conditions:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Up
 to 100% financing against submission of certified true copy of supplier’s
 invoice.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
The
 maximum loan period is not to exceed 30 days calculated from date of finance.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
The
 list of the approved suppliers for the time being is as per Appendix (II)
 attached.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Loan
 proceeds will be directly remitted to suppliers’ bank accounts.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
In-house
 import invoice financing is forbidden.

	
 

	
 

	
 

	
Handling
 Fee of Facilities:

	
 

	
HKD12,000.-,
 payable upon your signing of this letter, and other handling fee to be
 mutually agreed and payable on each anniversary of the date of this letter if
 the Facilities are continuing.

	
 

	
 

	
Atlantic Components Limited

	
Page 3

	
 

	
 

	
D.

	
          SECURITY
 AND CONDITIONS PRECEDENT:

	
 

	
 

	
The
 availability of the Facilities is conditional upon the Bank’s receipt of the
 following documents, items and evidence (both in form and substance)
 satisfactory to the Bank:

	
 

	
 

	
1.

	
This
 letter duly executed by the Customer.

	
 

	
 

	
2.

	
All
 monies Charge Over Deposits and/or all monies Charge Over Securities
 executed by the Customer and/or Classic Electronics Limited in favour of the
 Bank, together with all usual documentation required by the Bank, in an
 amount of not less than HKD1,560,000.-. The charged securities under the
 Charge Over Securities are to be held to the order of the Bank or in the
 name(s) of the Bank’s nominee(s). (The Bank reserves the right to require an
 extra margin.)

	
 

	
 

	
3.

	
All
 monies Charge Over Deposits and/or all monies Charge Over Securities executed
 by the Customer in favour of the Bank, together with all usual documentation
 required by the Bank, in an amount of not less than HKD4,720,000.-. The
 charged securities under the Charge Over Securities are to be held to the
 order of the Bank or in the name(s) of the Bank’s nominee(s). (The Bank
 reserves the right to require an extra margin.)

	
 

	
 

	
 

	
At
 the sole discretion of the Bank, the charged deposits under the above Charge
 Over Deposits and the charged securities under the above Charge Over
 Securities are allowed to be placed in the forms of deposits and/or principal
 protected structured deposits acceptable to the Bank (collectively the
 “Investment Portfolio”). The Investment Portfolio must at all times maintain
 mark-to-market forced sale value and security cover ratios agreed by the Bank.

	
 

	
 

	
4.

	
An
 all monies Charge Over Deposits executed by the Customer and/or Systematic
 Information Limited in favour of the Bank in an amount of not less than HKD3,720,000.-. (The Bank reserves the right to  require an extra margin.)

	
 

	
 

	
5.

	
A
 personal guarantee executed by Mr. Yang Chung Lun for an unlimited amount.

	
 

	
 

	
6.

	
An
 all monies First Tripartite Legal Charge over the property at Workshop B9,
 1/F., Block B, Proficient Industrial Centre, 6 Wang Kwun Road, Kowloon Bay,
 Kowloon, Hong Kong in the name of Systematic Information Limited.

	
 

	
 

	
7. 

	
An
 all monies First Tripartite Legal Charge over the property at Workshop B12,
 1/F., Block B, Proficient Industrial Centre, 6 Wang Kwun Road, Kowloon Bay,
 Kowloon, Hong Kong in the name of Solution Semiconductor (China) Limited.

	
 

	
 

	
8.

	
Original/Certified
 copies of all necessary consents, approvals and other authorisations
 (including board resolutions) in connection with the execution, delivery and
 performance of this letter [or accession letter (as the case may be)] and all
 other documents mentioned above, if applicable.

	
 

	
 

	
9.

	
(if
 any of the facilities referred to in this letter are to be made available by
 Standard Chartered Bank or other members of the Standard Chartered Group)
 All such documents, items or evidence with, in favour of or to Standard
 Chartered Bank or, as the case may be, such member of the Standard
 Chartered Group as the Bank may request.

	
 

	
 

	
10.

	
Such
 other documents, items or evidence that the Bank may request from time to
 time:

	
 

	
 

	
Atlantic Components Limited

	
Page 4

	
 

	
 

	
 

	
E.

	
          COVENANTS AND
 UNDERTAKINGS:

	
 

	
 

	
The
 Customer undertakes to the Bank that it will:

	
 

	
 

	
1.

	
procure
 that all its obligations in connection with the Facilities will at all times
 rank at least pari passu in terms of security and support (including third
 party) with all its other present and future obligations.

	
 

	
 

	
2.

	
promptly
 submit to the Bank:

	
 

	
 

	
 

	
•

	
a
 certified copy of the audited financial statements of the Customer within 9
 months after its financial year end;

	
 

	
 

	
 

	
 

	
•

	
a
 certified copy of the interim management accounts of the Customer within 3
 months after the end of the relevant accounting period; and 

	
 

	
 

	
 

	
 

	
•

	
a
 certified copy of the semi-annual debtor/stock list of the Customer within 30
 days after the end of the relevant accounting period; and 

	
 

	
 

	
 

	
 

	
•

	
other
 information that the Bank may request from time to time.

	
 

	
 

	
 

	
3.

	
immediately
 inform the Bank:

	
 

	
 

	
 

	
 

	
•

	
of
 any change of the Customer’s directors or beneficial shareholders or
 amendment to its memorandum or articles of association or equivalent
 constitutional documents; 

	
 

	
 

	
 

	
 

	
•

	
of
 any substantial change to the general nature of the Customer’s existing
 business; or 

	
 

	
 

	
 

	
 

	
•

	
if
 it becomes, or is aware that any of its directors, shareholders, partners or
 managers becomes, a Related Person (as defined in paragraph 5 of section G
 of this letter).

	
 

	
 

	
 

	
4.

	
maintain
 its minimum net worth at not less than HKD10,500,000.- from the financial
 year December 2006 onwards.

	
 

	
 

	
F.

	
          TOP-UP
 REQUIREMENT:

	
 

	
 

	
The
 Customer shall at all times comply with the security cover ratios specified
 in this letter or as notified by the Bank to the Customer from time to time.
 If any of the security cover ratios shall at any time fall below
 the required level, the Customer shall provide additional security acceptable
 to the Bank and/or reduce the relevant outstanding in order to comply with
 the relevant requirements within the time limit imposed by the Bank from time
 to time.

	
 

	
 

	
Investment
 Portfolio

	
 

	
 

	
Combined
 mark-to-market forced sale value of the Investment Portfolio must not less
 than HKD6,280,000.-.

	
 

	
 

	
G.

	
          OTHER
 TERMS AND CONDITIONS:

	
 

	
 

	
1.

	
The
 Facilities are available at the sole discretion of the Bank. The Bank may at
 any time immediately terminate, cancel or suspend the Facilities or otherwise
 modify the Facilities without the consent of any party.

	
 

	
 

	
2.

	
Notwithstanding
 any provisions stated in this letter, the Facilities are repayable on demand
 by the Bank. The Bank has the overriding right at any time to require
 immediate payment and/or cash collateralisation of all or any sums actually
 or contingently owing to it under the Facilities.

	
 

	
 

	
3.

	
The
 Bank’s Standard Terms and Conditions for Banking Facilities and Services
 (including the Trade Finance Supplement) and Terms and Conditions for Foreign
 Exchange Business (“Standard Terms and Conditions”) (attached and/or referred
 to in this letter) forms an integral part of this letter and each Customer
 agrees to observe and be bound by such Standard Terms and Conditions.

	
 

	
 

	
Atlantic Components Limited

	
Page 5

	
 

	
 

	
 

	
4.

	
The
 terms and conditions set out or referred to in this letter supersede and
 replace those set out in our letter (if any) previously sent to the
 Customer(s).

	
 

	
 

	
 

	
5.

	
Please
note that section 83 of the Banking Ordinance imposes on the Bank certain
limitations on advances to persons (including firms, partnerships and
companies) related to its directors, employees with lending authority or
controllers (each person so related shall be referred to as a “Related Person”). When acknowledging
and accepting this facility letter, you should advise us if you are, or any
of your directors, shareholders, partners or managers is, a Related Person
within the meaning of the Banking Ordinance. If subsequent to your
acceptance of this facility letter, you become or are aware that any of
your directors, shareholders, partners or managers is or becomes, a Related
Person, you should immediately advise us in writing.  

	
 

	
 

	
 

	
6.

	
The
 Customer acknowledges the following:

	
 

	
 

	
 

	
 

	
(a)

	
The
 Customer has received and read the Bank’s Notice to Customers and Other
 Individuals relating to the Personal Data (Privacy) Ordinance (the
 “Ordinance”) and the Code of Practice on Consumer Credit Data (the “Notice”);
 and

	
 

	
 

	
 

	
 

	
(b)

	
The
 Customer has, or will, notify each of its Relevant Individuals, the Bank may,
 in the course of providing banking services to the Customer, receive Customer
 information in respect of that Relevant Individual.

	
 

	
 

	
 

	
 

	
For
 the purpose of the above, the Ordinance defines a Relevant Individual as
 being one of the following (but not limited to) Chief Executive Officer,
 Chief Financial Officer, Chief Operating Officer, department heads, corporate
 officers (e.g. authorized signatories company secretary etc.), directors,
 major shareholders, beneficial owners, and guarantors (where applicable).

	
 

	
 

	
 

	
7.

	
This
 letter shall be governed by and construed in accordance with the laws of Hong
 Kong SAR.

	
 

	
 

	
 

	
Please
 sign and return to us the enclosed copy of this letter together with the
 attached Standard Terms and Conditions for Banking Facilities and Services
 (including the Trade Finance Supplement) and Terms and Conditions for Foreign
 Exchange Business to the Bank’s Credit Risk Control at 11th Floor, Standard
 Chartered Tower, 388 Kwun Tong Road, Kwun Tong, Kowloon within one month
 after the date of this letter, failing which this offer shall lapse.

	
 

	
 

	
 

	
If
 you have any queries, please feel free to contact any of the following
 persons:-

	
 

	
 

	
 

	
 

	
 

	
Queries on

	
 

	
Name

	
 

	
Telephone No.

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
Execution
 of bank documents

	
 

	
Mr.
 Stanley Tsang, Credit Support Manager

	
 

	
2282-6433

	
 

	
 

	
 

	
 

	
 

	
Banking
 arrangements

	
 

	
Mr.
 Fred Ho, Relationship Manager

	
 

	
2821-1086

	
 

	
 

	
Atlantic Components Limited

	
Page 6

Yours faithfully, 

For and on behalf of

STANDARD
CHARTERED BANK (HONG KONG) LIMITED

	
 

	

	

	
Stephen
 Wong

	
Senior
 Credit Documentation Manager

SW/ST 

Encl.

We agree and accept all the terms and conditions set out
above and the Bank’s Standard Terms and Conditions for Banking Facilities and
Services (including the Trade Finance Supplement) and Terms and Conditions for
Foreign Exchange Business attached and/or referred to in this letter, which we
have read and understood.

For and on behalf of

ATLANTIC COMPONENTS LIMITED

	
 

	

	

	
 

	
 

	
Atlantic Components Limited

	
Page 7

Appendix I

TRADE FINANCE FACILITY

Trade Finance Group All

	
 

	
 

	
 

	
•

	
Negotiation
 of export credit documents with discrepancies on a with recourse basis 

	
 

	
 

	
Trade
 Finance Group 1

	
 

	
 

	
•

	
Purchase
 of documents against payment bills with title documents on parties acceptable
 to the Bank on a with recourse basis

	
 

	
 

	
•

	
Issuance
 of import letters of credit 

	
 - sight and usance

	
 

	
 

	
 - with title documents

	
 

	
 

	
Trade
 Finance Group 2

	
 

	
 

	
 

	
•

	
Issuance
 of import letters of credit

	
-
 sight and usance

	
 

	
 

	
-
 without title documents

	
 

	
 

	
•

	
Shipping
 guarantees

	
 

	
 

	
Trade
 Finance Group 3

	
 

	
 

	
•

	
Acceptance
 of drafts under import letters of credit

	
 

	
 

	
•

	
Release
 of documents against acceptance supported by trust receipts

	
 

	
 

	
•

	
Loans
 against trust receipts

	
 

	
 

	
•

	
Import
 loans

	
 

	
 

	
•

	
Import
 invoice financing

	
 

	
 

	
Atlantic Components Limited

	
Page 8

Appendix II

LIST OF SUPPLIERS FOR IMPORT INVOICE FINANCING

	
 

	
 

	
•

	
Samsung
 Electronics HK Ltd.

	
 

	
 

	
•

	
Tomen
 Devices Corporation

	
 

	
 

	
•

	
Jimg
 Wing Technology Co. Ltd.

	
 

	
 

	
•

	
Gaipu
 Electronics Co. Ltd.

	
 

	
 

	
•

	
Kreton
 Corp

	
 

	
 

	
•

	
Power
 Memory International Co. Ltd.

	
 

	
 

	
•

	
ACL
 Technology Pte Ltd.

	
 

	
 

	
•

	
Athena
 Technology (Taiwan) Ltd.

	
 

	
 

	
•

	
Favorities
 Place Inc. DBA Streamline

	
 

	
 

	
•

	
Minpo
 Corporation

	
 

	
 

	
•

	
Optimum
 Care International Co. Ltd.

	
 

	
 

	
•

	
Plusmos
 Technologies Inc.

	
 

	
 

	
•

	
Smart
 Semicon Taiwan

	
 

	
 

	
•

	
Excelpoint
 Systems (PTE) Ltd.

	
 

	
 

	
•

	
B & Data Technology Co. Ltd.

	
 

	
 

	
•

	
Marubun
 Semicon Corporation Hong Kong Branch

	
 

	
 

	
•

	
Tradezone
 (HK) Ltd.

	
 

	
 

	
•

	
OM
 Associates Pte Ltd.

	
 

	
 

	
•

	
Lok
 Yiu Industries Ltd. T/A Silink Trading Co.

	
 

	
 

	
•

	
3-
 Con Electronics Ltd.

	
 

	
 

	
•

	
Chipking
 Electronic Co. Ltd.

	
 

	
 

	
•

	
SAMT Hong Kong Company Ltd.Exhibit 10.4

	
 

	
 

	
Date:

	
28th December 2007

	
 

	
 

	
Our Ref:

	
CR/MM/Team 8/BTB

CONFIDENTIAL

Atlantic Components Limited 

B24-B27, 1/F, Block B, 

Proficient Industrial Centre, 

6 Wang Kwun Road, 

Kowloon Bay, Kowloon, 

Hong Kong

Attn: Mr. Yang Chung Lun

Dear Sirs,

BANKING FAClLITIES

Standard Chartered Bank (Hong Kong) Limited (the “Bank”) is pleased to
offer the following banking facilities (the “Facilities”) to the Customer
below for the purposes of general working capital, trade finance and treasury
requirement, subject to the Bank’s Standard Terms and Conditions for Banking
Facilities and Services (including the Trade Finance Supplement) and Terms and
Conditions for Foreign Exchange Business attached and the terms and conditions
set out in this facility letter.

	
 

	
 

	
A.

	
CUSTOMER:

	
 

	
 

	
 

	
Atlantic
 Components Limited

	
 

	
 

	
B.
 

	
FACILITY
 LIMITS:

	
 

	
 

	
 

	
(1) General
 Banking Facilities

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Type(s) of
 Facility

	
 

	
Facility
 Limit(s)

	
 

	
Designated
 Customer(s) and Sub-limit(s), if applicable

	

	

	

	

	

	

	
1.

	
Current Account Overdraft

	
 

	
HKD1,000,000.-

	
 

	
•

	
The Customer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.

	
Trade Finance
(Please refer to Appendix 1 for 

 product details.)

	
 

	
HKD24,000,000.-

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a) Trade Finance Group All

	
 

	
 

	
 

	
•

	
The Customer
 (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b) Trade Finance
 Group 1

	
 

	
 

	
 

	
•

	
The Customer
 (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c) Trade Finance
 Group 2

	
 

	
 

	
 

	
•

	
The Customer (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(d) Trade Finance
 Group 3

	
 

	
 

	
 

	
•

	
The Customer (HKD24,000,000.-)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
3.

	
Factoring

	
 

	
HKD8,000,000.-

 (being FlU Limit)

	
 

	
•

	
The Customer

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Facility Limit:

	
 

	
HKD33,000,000.-

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

Standard Chartered Bank (Hong Kong) Limited 

Wholesale Bank 

Credit Risk Control

11th Floor Standard Chartered Tower 

388 Kwun Tong Road Kwun Tong Hong Kong

	
 

	
 

	
Atlantic
 Components Limited

	
Page 2

	
 

	
 

	
Notes:

	
 

	
 

	
•

	
Unutilized portion of Facility 1
 can be earmarked for Facility 2 but not vice versa.

	
 

	
 

	
•

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

	
 

	
 

	
 

	
 

	
(2)

	
Treasury Facilities (The Bank may arrange for
 these facilities to be available through Standard Chartered Bank or other
 members of the Standard Chartered Group and separate documentation would be
 executed where necessary.)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Type(s) of
 Facility

	
 

	
 

	
 

	
Designated
 Customer(s) and sub-limit(s), if applicable

	

	

	

	

	

	

	

	
1.

	
Foreign Exchange Contract(s)

 (Spot and Forward)

	
 

	
 

	
 

	
•

	
The Customer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Facility Limit to be determined
 by the Bank on a case by case basis.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.

	
Currency and Interest Rate Risk
 Management

	
 

	
•

	
The Customer

	
 

	
 

	
C.

	
PRICING AND
 CONDITIONS:

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
Current Account Overdraft

	
 

	
Interest: 0.5% per annum over the
 higher of Prime or HIBOR, payable monthly in arrears.

	
 

	
 

	
 

	
 

	
2.

	
Trade Finance

	
 

	
Interest:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
HKD import/export facilities:
 0.5% per annum below the Bank’s standard bills finance rate.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Foreign currency import/export
 facilities: 1% per annum over the Bank’s standard bills finance rates.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commission:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Standard, rates unless otherwise
 stipulated.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commission in lieu of Exchange:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
First USD50,000.- 

	
1/4%

	
 

	
 

	
 

	
 

	
Balance

	
1/16%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Commission on import Invoice
 Financing:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1/16% Flat (Minimum HKD250.-)

	
 

	
 

	
Atlantic
 Components Limited

	
Page 3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Maximum
 tenor/advance percentage for:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Import facilities:
 Combined usance and import loan period of any transaction is not to exceed 45
 days.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Export facilities:
 45 days.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Import invoice
 financing is allowed subject to the following conditions:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Up to 100% of
 financing against submission of certified true copy of Supplier’s invoice.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
The maximum loan
 period is not to exceed 30 days calculated from date of finance.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
The list of the
 approved suppliers for the
time being is as
 per appendix (II) attached.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Loan proceeds will
 be directly remitted to suppliers bank accounts.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(v)

	
In-house import
 invoice financing is forbidden.

	
 

	
 

	
 

	
 

	
 

	
3.

	
Factoring

	
 

	
Subject to terms
 and conditions stipulated in or referred to in the Receivables Purchase
 Agreement executed between the Bank and Atlantic components Limited
 respectively.

	
 

	
 

	
 

	
 

	
 

	
4.

	
Foreign Exchange

 Contract(s) (Spot and

 Forward)

	
 

	
Tenor: Up to 36 months.

	
 

	
 

	
 

	
 

	
 

	
5.

	
Currency and
 Interest Rate

 Risk Management

	
 

	
Tenor: Up to 36 months.

	
 

	
 

	
 

	
 

	
 

	
 

	
Handling Fee of
 Facilities:

	
 

	
HKD9,000.-,
 payable upon your signing of this letter, and other handling fee to be
 mutually agreed and payable on each anniversary of the date of this letter if
 the Facilities are continuing.

	
 

	
 

	
D.

	
SECURITY AND
 CONDITIONS PRECEDENT:

The availability of the Facilities is conditional upon the Bank’s
receipt of the following documents, items and evidence (both in form and
substance) satisfactory to the Bank:

	
 

	
 

	
1.

	
This letter duly executed by the Customer.

	
 

	
 

	
2.

	
An all monies
 Charge Over Deposits and/or all monies Charge Over Securities executed by
 the Customer and/or any third party in favour of the Bank, together with all
 Usual documentation required by the Bank, in an amount of not less than
 HKD10,000,000.-. The charged securities under the Charge Over Securities are
 to be held to the order of the Bank or in the name(s) of the Bank’s
 nominee(s). (The Bank reserves the right to require an extra margin.)

	
 

	
 

	
Atlantic
 Components Limited

	
Page 4

	
 

	
 

	
 

	
At the sole discretion of the
 Bank, the charged deposits under the above Charge Over Deposits and the
 charged securities under the above Charge Over Securities are allowed to be
 placed in the forms of deposits and/or principal protected structured
 deposits acceptable to the Bank (collectively the “investment Portfolio”).
 The investment Portfolio must at all times maintain mark-to-market forced
 sale value and security cover ratios agreed by the Bank.

	
 

	
 

	
3.

	
A personal guarantee executed by
 Yang Chung Lun for an unlimited amount.

	
 

	
 

	
4.

	
An all monies First Tripartite Legal Charge over the property at
 Workshop B9, 1/F, Block B, Proficient Industrial Centre, 6 wang Kwun Road,
 kowloon Bay, Kowloon in the name of Systematic lnformation Limited.

	
 

	
 

	
5.

	
An all monies First Tripartite
 Legal Charge over the property at Workshop B12, 1/F, Block B, Proficient
 Industrial Centre, 6 Wang Kwun Road, Kowloon Bay, Kowloon in the name of
 Solution Semiconductor (China) Limited.

	
 

	
 

	
6.

	
Receivables Purchase
 Agreement(s) executed by the Customer for the factoring facility.

	
 

	
 

	
7.

	
Original/Certified copies of all
 necessary consents, approvals and other authorisations (including board
 resolutions) in connection with the execution, delivery and performance of
 this letter and all other documents mentioned above, if applicable.

	
 

	
 

	
8.

	
(if any of the facilities
 referred to in this letter are to be made available by Standard Chartered Bank or
 other members of the Standard Chartered Group) All such documents, items or
 evidence with, in favour of or to Standard Chartered Bank or, as the case may
 be, such member of the Standard Chartered Group as the Bank may request.

	
 

	
 

	
9.

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

	
 

	
 

	
E.

	
COVENANTS AND
 UNDERTAKINGS:

The
Customer undertakes to the Bank that it will:

	
 

	
 

	
 

	
1.

	
procure that all its obligations
 in connection with the Facilities will at all times rank at least pari passu
 in terms of security and support (including third party) with all its other
 present and future obligations.

	
 

	
 

	
 

	
2.

	
promptly submit to the Bank:

	
 

	
 

	
 

	
 

	
•

	
a certified copy of the audited
 financial statements of the Customer within 9 months after its financial year
 end; 

	
 

	
 

	
 

	
 

	
•

	
a certified copy of the interim
 management accounts of the Customer within 3 months after the end of the relevant accounting period; 

	
 

	
 

	
 

	
 

	
•

	
a certified copy of the semi
 annual debtor / stock list of the Customer within 30 days of the relevant
 period; and 

	
 

	
 

	
 

	
 

	
•

	
other information that the Bank
 may request from time to time.

	
 

	
 

	
 

	
3.

	
immediately inform the Bank:

	
 

	
 

	
 

	
 

	
•

	
of any change of the Customer’s
 directors or beneficial shareholders or amendment to its memorandum or
 articles of association or equivalent constitutional documents; 

	
 

	
 

	
 

	
 

	
•

	
of any substantial change to the
 general nature of the Customer’s existing business; or 

	
 

	
 

	
 

	
 

	
•

	
if it becomes, or is
 aware that any of its directors, shareholders, partners or managers
 becomes, a Related Person (as defined in paragraph 5 of section G of this
 letter).

	
 

	
 

	
Atlantic
 Components limited

	
Page 5

	
 

	
 

	
4.

	
maintain its
 minimum networth at not less than HKD10,500,000.- from the financial year
 December 2006 onwards.

	
 

	
 

	
F.

	
TOP-UP
 REQUIREMENT:

The Customer shall at ail times comply with the security cover ratios
specified in this letter or as notified by the Bank to the Customer from time
to time. If any of the security cover ratios shall at any time fall below the
required level, the Customer shall provide additional security acceptable to
the Bank and/or reduce the relevant outstanding in order to comply with the
relevant requirements within the time limit imposed by the Bank from time to
time.

Investment Portfolio

Combined mark-to-market forced sale value of the Investment Portfolio
must not be less than HKD10,000,000.-.

	
 

	
 

	
G.

	
OTHER
 TERMS AND CONDITIONS:

	
 

	
 

	
1.

	
The Facilities are
 available at the sole discretion of the Bank. The Bank may at any time
 immediately terminate, cancel or suspend the Facilities or otherwise modify
 the Facilities without the consent of any party.

	
 

	
 

	
2.

	
Notwithstanding
 any provisions stated in this letter, the Facilities are repayable on demand
 by the Bank. The Bank has the overriding right at any time to require
 immediate payment and/or cash collateralisation of all or any sums actually
 or contingently owing to it under the Facilities. This clause 2 does not
 apply to the Factoring facility.

	
 

	
 

	
3.

	
The Bank’s
 Standard Terms and Conditions for Banking Facilities and Services (including
 the Trade Finance Supplement) and Terms and Conditions for Foreign Exchange
 Business (“Standard Terms and Conditions”) attached and/or referred to in
 this letter form an integral part of this letter and each Customer agrees to
 observe and be bound by such Standard terms and Conditions.

	
 

	
 

	
4.

	
The terms and
 conditions set out or referred to in this letter supersede and replace those
 set out in our letter (if any) previously sent to the Customer(s).

	
 

	
 

	
5.

	
Pleas note that
 section 83 of the Banking Ordinance Imposes on the Bank certain limitations
 on advances to persons (including firms, partnerships and companies) related
 to its directors, employees with lending authority or controllers (each
 person so related shall be referred to as a “Related Person”). When acknowledging and accepting this
 facility letter, you should, advise us if you are, or any of your directors,
 shareholders, partners or managers is, a Related Persons within the meaning
 of the Banking Ordinance. If subsequent to your acceptance of this facility
 letter, you become, or are aware that any of your directors, shareholders,
 partners or managers is or becomes, a Related Person, you should immediately
 advise us in writing.

	
 

	
 

	
6.

	
The customer
 acknowledges the following:

	
 

	
 

	
 

	
 

	
(a)

	
The Customer has
 received and read the Bank’s Notice to Customers and Other Individuals
 relating to the Personal Data (Privacy) Ordinance (the “Ordinance”) and the
 Code of Practice on Consumer Credit Data (the “Notice”); and

	
 

	
 

	
 

	
 

	
(b)

	
The Customer has,
 or will, notify each of its Relevant Individuals, the Bank may in the course
 of providing banking services to the Customer, receive Customer information
 in respect of that Relevant Individual.

	
 

	
 

	
Atlantic
 Components Limited

	
Page 6

	
 

	
 

	
 

	
For the purpose of the above, the
 Ordinance defines a Relevant Individual as being one of the following (but
 not limited to) Chief Executive Officer Chief Financial Officer, Chief
 Operating Officer, department heads, corporate officers (e.g. authorized
 signatories, company secretary etc.), directors, major shareholders,
 beneficial owners, and guarantors (where applicable).

	
 

	
 

	
7.

	
This letter shall be governed by
 and construed in accordance with the laws of Hong Kong SAR.

Please sign
and return to us the enclosed copy of this letter together with the attached
Standard Terms and Conditions for Banking Facilities and Services (including
the Trade Finance Supplement) and Terms and Conditions for Foreign Exchange
Business to the Bank’s Credit Risk Control at 11th Floor, Standard Chartered
Tower, 388 Kwun Tong Road, Kwun Tong, Kowloon within one month after the date
of this letter, failing which this offer shall lapse.

If you have
any queries, please feel free to contact any of the following persons:

	
 

	
 

	
 

	
 

	
 

	
Queries on

	
 

	
Name

	
 

	
Telephone No.

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
Execution of bank documents

	
 

	
Mr. Stanley Tsang, Credit Support
 Manager

	
 

	
2282-6433

	
 

	
 

	
 

	
 

	
 

	
Banking arrangements

	
 

	
Mr. Fred
 Ho, Relationship Manager

	
 

	
2821-1086

Yours
faithfully, 

For and on behalf of

STANDARD CHARTERED BANK (HONG KONG) LIMITED

	
 

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	
 

	
Stephen Wong

 Senior Credit Documentation Manager

	
 

	
Caroline Tse 

 Manager, Credit Risk Control

	
 

	
 

	
 

	
SW/ST

 Encl.

	
 

	
 

We agree
and accept all the terms and conditions set out above and the Bank’s Standard
Terms and Conditions for Banking Facilities and Services (including the Trade
Finance Supplement) and Terms and Conditions for Foreign Exchange Business
attached and/or referred to in this letter, which we have read and understood.

For and on behalf of

ATLANTIC COMPONENTS LIMITED

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Atlantic
 Components Limited

	
Page 7

I, Yang Chung Lun, hereby acknowledge the terms of this facility letter
and confirm that my obligations under each guarantee and security document (as
applicable) that I have executed in favour of the Bank will continue in full
force and are not and will not be affected, discharged or varied by the
execution of this facility letter.

	
 

	
 

	

	
 

	

	
 

	
YANG CHUNG LUNG 

	
 

We, Solution Semiconductor (China) Limited and/or Systematic
Information Limited, hereby acknowledge the terms of this facility letter and
confirm that our obligations under each guarantee and security document (as
applicable) that we have executed in favour of the Bank will continue in full
force and are not and will not be affected, discharged or varied by the
execution of this facility letter.

For and on behalf of
SOLUTION SEMICONDUCTOR (CHINA) LIMITED

	
 

	
 

	

	
 

	

	
 

	
For and on behalf of

	
 

	
SYSTEMATIC
 INFORMATION LIMITED

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Atlantic
 Components Limited

	
Page 8

Appendix I

TRADE FINANCE FACILITY

Trade
Finance Group All

	
 

	
 

	
•

	
Negotiation of export credit
 documents with discrepancies on a with recourse basis 

Trade
Finance Group 1

	
 

	
 

	
 

	
•

	
Purchase of documents against
 payment bills with title documents on parties acceptable to the Bank on a
 with recourse basis

	
 

	
 

	
•

	
Issuance of import letters of
 credit 

	
- sight and usance 

 - with title documents

Trade
Finance Group 2

	
 

	
 

	
 

	
•

	
Issuance of import letters of
 credit

	
- sight and usance

 - without title documents

	
 

	
 

	
 

	
•

	
Shipping guarantees

	
 

Trade
Finance Group 3

	
 

	
 

	
•

	
Acceptance of drafts under
 import letters of credit

	
 

	
 

	
•

	
Release of documents against acceptance supported by trust receipts

	
 

	
 

	
•

	
Loans against trust receipts

	
 

	
 

	
•

	
Import loans

	
 

	
 

	
•

	
Import invoice financing

	
 

	
 

	
Atlantic
 Components Limited

	
Page 9

Appendix II

	
 

	
 

	
LIST OF SUPPLIERS
 FOR IMPORT INVOICE FINANCING

	
 

	
 

	
1.

	
Samsung
 Electronics HK Ltd.

	
 

	
 

	
2.

	
Tomen Devices
 Corporation

	
 

	
 

	
3.

	
Jing Wing
 Technology Co. Ltd.

	
 

	
 

	
4.

	
Gaipu Electronics
 Co. Ltd.

	
 

	
 

	
5.

	
Kreton Corp.

	
 

	
 

	
6.

	
Power Memory
 International Co. Ltd.

	
 

	
 

	
7.

	
ACL Technology Pte
 Ltd.

	
 

	
 

	
8.

	
Athena Technology
 (Taiwan) Ltd.

	
 

	
 

	
9.

	
Favorities Place
 Inc. DBA Streamline

	
 

	
 

	
10.

	
Minpo Corporation

	
 

	
 

	
11.

	
Optimum Care
 International Co. Ltd.

	
 

	
 

	
12.

	
Plusmos
 Technologies Inc.

	
 

	
 

	
13.

	
Smart Semicon
 Taiwan

	
 

	
 

	
14.

	
Excelpoint Systems
 (PTE) Ltd.

	
 

	
 

	
15.

	
B & Data Technology Co. Ltd.

	
 

	
 

	
16.

	
Marubun Semicon
 Corporation Hong Kong Branch

	
 

	
 

	
17.

	
Tradezone (HK)
 Ltd.

	
 

	
 

	
18.

	
OM Associates Pte
 Ltd.

	
 

	
 

	
19.

	
Lok Yiu Industries
 Ltd. T/A Silink Trading Co.

	
 

	
 

	
20.

	
3-Con Electronics
 Ltd.

	
 

	
 

	
21.

	
Chipking
 Electronic Co. Ltd.

	
 

	
 

	
22.

	
SAMT Hong Komh
 Company Ltd.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]