Document:

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                                                                   EXHIBIT 10.16

[HSBC LOGO]

          Corporate & Institutional Banking - International Division L9

Ref:

     CONFIDENTIAL
     NDP Fabrics Ltd (previously known as NNL Fabrics Ltd)
     I/F Novel Industrial Building
     850-870 Lal Chi Kok Road
     Cheung Sha Wan
     Kowloon

                                                                   27 March 2002

     Attention: Mr Peter Leung/ Mr Vincent Chan

     Dear Sirs

     BANKING FACILITIES
     A/C NO 534-320429

     With reference to our recent discussion, we are pleased to advise that we
     have reviewed your banking facilities and offer a renewal within the
     following limits which will be made available on the specific terms and
     conditions outlined below and subject to the satisfactory completion of the
     security below. These facilities are also subject to review at any time
     and, in any event by 15 March 2003, and subject to our overriding right of
     suspension, withdrawal and repayment on demand, including the right to call
     for cash cover on demand for prospective and contingent liabilities.

                                                                           Limit
     COMBINED IMPORT/EXPORT FACILITIES                           HKD50,000,000,-

     Documentary Credit to your suppliers and Loan
     Facilities in other HK dollars or foreign currency
     (from time to time published by the Bank on the board
     rates) for up to 90 days, less any usance/credit
     periods granted by your suppliers and/or D/P bills
     purchased.

     Within which
     Goods under your control and/or Trust Receipt             (HKD50,000,000.-)
     Receipts and/or D/A bills purchased up to 90 days.

     Interest on your HK Dollar Import Loans will continue to be charged on a
     daily basis at our best lending rate (currently 5.125% per annum, but
     subject to fluctuation at our discretion) and payable monthly in arrears to
     the debit of your current account.

     Interest on Foreign Currency Import Loans and Export financed bills will
     continue to be charged on a daily basis at the prevailing interest rates,
     published by us as Trade Finance Rates, subject to fluctuation at our
     discretion and payable monthly in arrears to the debit of your current
     account.

                                                                           .../2

THE HONGKONG AND SHANGHAL BANKING CORPORATION LIMITED
Hong Kong Main Office: I Queen's Road
Central, Hong Kong
Tel: 2822 1111 Fax:
[ILLEGIBLE]
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NDP Fabrics Ltd                                                    27 March 2002

                                      -2-

We, may at our sole and absolute discretion, refuse to follow drawings under the
facilities if the drawee is considered by us to be unacceptable and/or if the
transaction in question does not meet our operational requirements in respect of
these facilities.

We also confirm our agreement to the following concessionary rates applicable to
your facilities:-

DC Opening Commission and Commission in Lieu of Exchange

<TABLE>
<S>                              <C>
On 1st USD50,000          -       1/4%
USD50,001 - USD 100,000  -       1/16%
Balance in excess         -      1/32%
</TABLE>

                                                                           Limit
REVOLVING HIBOR LOAN FACILITIES                                  HKD30,000,000.-
                                                                        (NOTE 1)
Interest on the loan will continue to be charged at 0.75% over 1, 2 or 3 months
HIBOR (Hong Kong Interbank Money Market Offer Rate) payable at the end of each
interest period to the debit of your current Account. Interest shall be
calculated on actual days elapsed in a year of 365 days for HKD loan.

The applicable HIBOR will be that quoted by us at or about  11:00 a.m. on the
date of drawdown / rollover.

                                                                           Limit
OVERDRAFT FACILITIES                                                    (NOTE 1)

Interest on the overdraft facility will continue to be charged on daily balances
at our best lending rate, (currently 5.125% per annum, but subject to
fluctuation at our discretion) and payable monthly in arrears to the debit of
your current account.

A commitment fee of 0.25% per annum will continue to be charged daily on the
undrawn balance of your overdraft facility and will be payable monthly in
arrears to the debit of your current account.

NOTE 1:-

The overall limit of the Revolving HIBOR Loan Facilities are switchable to HKD
Overdraft Facilities.

General conditions for the utilisation of the HIBOR Loan Facilities:-

a)   24 hours advance notice of drawdown / rollover is to be given to us for
     HIBOR facilities respectively. Once a quotation has been given and accepted
     by you, we will thereupon be bound to make, and you will thereupon be bound
     to accept, any advance on the terms so agreed.

 b)  Each drawdown / rollover to be for periods of 1,2 or 3 months.

                                                                           .../3
<PAGE>

                                       -3-

NDP Fabrics Ltd                                                    27 March 2002

c)   Each initial drawdown must be for HKD1,000,000.- and   thereafter in
     multiples of HKD1,000,000.8.

d)   At the end of an interest period the amount of the drawing may be rolled
     over either in one or two or more amounts (providing such amounts are in
     multiples of HKD1,000,000.- with a minimum drawdown, of HKD1,000,000.-)
     for further periods of 1, 2 or 3 months.

e)   With our prior approval, (which will not be withheld, provided we are
     satisfied that the funds utilised are generated from your internal
     resources, out of cash flow rather than from external refinancing) during
     an interest period any amount of outstanding load may, with 48 hours
     advance notice to us, be repaid subject to the usual charges (i.e. the
     differential between the return we would have received had such amount run
     to maturity and the return we are able to obtain by the placing of the
     funds repaid for the remainder of the period in the marker).

 f)  We reserve the right to renegotiate the HIBOR interest spreads should any
     event occur which changes the basis on which HIBOR interest margins are
     presently calculated.

Please note that Loans Section in our Mongk ok District Commercial Banking
Centre is responsible for the administration of HIBOR facilities. For rate
quotations and other day to day administrative matters, please contact our Mrs
Johanne Lain on telephone number 2390-1575.

SECURITY
As security, we continue to hold a Corporate Guarantee in our favour for
HKD80,000,000.- from Novel Denim Holdings Limited together with a certified copy
of a Board Resolution dated 7 February 2002.

ACCRUAL OF INTEREST AND OTHER SUMS
Please note that interest and other sums expressed to be chargeable or payable
on a periodic basis will nonetheless accrue from day to day and amounts so
accrued may be demanded at any time.

DISCLOSURE OF INFORMATION
Unless expressed in writing from you to the contrary, 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.

SECTION 83 Of THE BANKING ORDINANCE
Please note that Section 83 of the Banking Ordinance has imposed on us as a bank
certain limitations on advances to persons related to our directors or
employees. 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 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 as in
writing.

                                                                           .../4

<PAGE>

                                       -4-

NDP Fabrics Ltd                                                    27 March 2002

ACCEPTANCE
Please arrange for the authorised signatories of your company, in accordance
with the terms of the mandates given to the Bank, to sign and return to us
before 17 April 2002 the duplicate copy of this letter to signify your
understanding and acceptance of the terms and conditions under which these
facilities are granted.

We are pleased to be of continued assistance.

Yours faithfully

/s/ Roddy K W Lau
Roddy K W Lau
Global Relationship Manager

Encl

                                                         For and on behalf of
                                                         NDP FABRICS LIMITED

                                                                     [ILLEGIBLE]
                                                         -----------------------
                                                         Authorised Signature(s)<PAGE>

                                                                   EXHIBIT 10.17

                              [NEDBANK LETTERHEAD]

[ILLEGIBLE]

Private & Confidential                                 21 May 2002

The Directors
Novel Group of Companies
P O Box 1429
[ILLEGIBLE]
7350

Attention: John McCormick

Dear Sirs

BANKING FACILITIES

We have pleasure in advising that the following arrangements have been agreed
upon, subject to the general terms and conditions as per attached addendum.

FACILITIES

Novel Spinners (SA) (Pty) Ltd; Novel Weavers (SA) (Pty) Ltd and Novel Dyers (SA)
(Pty) Ltd

R10,000,000     (Ten Million Rand)
                Multi-Optional Overdraft

R10,000,000     (Ten Million Rand)
                Additional Overdraft/Letter of Credit facility (Subject to
                special conditions).

R1,200,000      (One Million Two Hundred Thousand Rand)
                Letter of Guarantee

R1,000,000     (One Million Rand)
                Forward Exchange Contracts (being 10% margin)

R1,000,000      (One Million Rand)
                Sight import Letters of Credit

The above facilities may be shared between the captioned companies.

STRUCTURED FINANCE FACILITY

R38,000,000     (Thirty Eight Million Rand)

[ILLEGIBLE]

[ILLEGIBLE]
<PAGE>

                                      -2-

INTEREST RATES

OVERDRAFT

Nedbank's Prime Interest rate (as set from time to time) for usage within the
arrangement. A penalty interest rate of Nedbank's Prime Interest rate (as set
from time to time) plus 3.0% will be levied on excesses over the
arrangement.

Our current Prime Interest rate is 16.00% p.a. calculated on the daily
outstanding balance and debited to your accounts once a month.

<TABLE>
<CAPTION>
LETTERS OF GUARANTEE
<S>                   <C>
Opening Commission    1,60% (plus VAT) with a minimum of R150-00(plus VAT)
Renewal Commission    0,75%(plus VAT) with a minimum of R75-00 (plus  VAT).
                      This  fee is payable every 6 months or part thereof.
</TABLE>

SECURITY HELD

NOVEL SPINNERS (SA) (PTY) LTD

Unrestricted [ILLEGIBLE] of loan funds by
       Novel Denim Holdings Ltd

Unlimited guarantees by;
       Novel Weavers (SA) (Pty) Ltd
       Novel Dyers (SA) (Pty) Ltd

First cession of all present and future debtors.

R6,000,000 Special Notarial Bond over moveable assets (held as collateral to the
Structured Finance facility - In lieu of the required 30% deposit).

Cession of Mutual and Federal short term Insurance policy.

Letter of Comfort from Novel Denim Holdings Ltd.

NOVEL WEAVERS (SA)(PTY) LTD

Unrestricted cession of loan funds by:
                              Novel Denim Holdings Ltd

Unlimited guarantees by:
       Novel Spinners (SA) (Pty) Ltd
       Novel Dyers (SA)(Pty) Ltd

First cession of all present and future debtors.

Pledged CFC account no. 7086-011842

Letter of Comfort from Novel  Denim Holdings Ltd.

R10,000,000 Special Notarial Bond over moveable assets (held as collateral to
the Structured Finance facility [ILLEGIBLE] )

Cession [ILLEGIBLE]  [ILLEGIBLE] and Faderal short term insurance policy.
[ILLEGIBLE]
<PAGE>

[ILLEGIBLE](SA) (Pty) Ltd

Unrestricted cassion of loan funds by;
         Novel Denim Holdings Ltd

Unlimited guarantees by;
         Novel Spinners (SA) (Pty) Ltd
         Novel Weavers (SA) (Pty) Ltd

First cassion of all present and future debtors.

Letter of Comfort from Novel Denim Holdings Ltd

R2,000,000 First Covering Mortgage bond over remainder of portion 85 (portion
of portion 42) Farm [ILLEGIBLE] (Held as collateral to the structured Finance
facility-in lieu of the required 30% deposit).

GENERAL

Letter of comfort from Novel Denim Holdings that they will not allow any follow
subsidiary with whom the local group trades with, to go into liquidation and
also to reduce the inter-company trade debtors days of the local group of
companies to 180 days by 31 March 2002, with further reductions to be negotiated
thereafter and that they will ensure a minimum inter-group, hardcore trade
credit of R30,000,000 to the South African companies.

PERIOD

The facilities have been afforded on a fluctuating basis without a specific
expiry date. The arrangements are subject to review from time to time and
continuation will depend on the prevailing circumstances at the time.

The Structured Finance facility is subject to its own separate agreement.

SPECIAL CONDITIONS

1.       Any utilisation under the additional R10,000,000 overdraft / Letters
         of Credit facility approved, must be covered by funds on a pledged CFC
         account.

2.       We understand that your group of companies will not achieve the debtor
         term covenant of 180 day maximum, by 31st March 2002, due to certain
         transactions having only taken place during April 2002.

         We therefore need to review the facilities using the March 2002
         accounts, together with the April 2002 management accounts, in order to
         verify the attainment of the covenant.

         Kindly provide your accounts as soon as possible.

GENERAL CONDITIONS

The facilities are approved on the basis that

1.       Audited financial details are provided annually, and within 6 months of
         your financial year-end.

2.       Management accounts are submitted to the Bank on a quarterly basis, and
         within 6 months of [ILLEGIBLE]

3.       [ILLEGIBLE] are completed and submitted to the Bank annually for onward
         [ILLEGIBLE] to the South Africa Reserve Bank.

4.       Bank [ILLEGIBLE] to review from time to time.

5.       The General Terms and Conditions as per [ILLEGIBLE].
<PAGE>

Novel/Dress (SA) (Pty) Ltd

Unrestricted cassion of loan funds by:
         Novel Denim Holdings Ltd

Unlimited guaranteed by:
         Novel [ILLEGIBLE] (SA) (Pty) Ltd
         Novel Weavers (SA) (Pty) Ltd

First cassion of all present and future debtors.

Letter of Comfort from Novel Denim Holdings Ltd.

R2,000,000 First Covering Mortgage bond over remainder of portion [ILLEGIBLE]
(portion of portion 42) [ILLEGIBLE] (Held as collateral to the Structured
Finance facility - in lieu of the required 30%  [ILLEGIBLE] ).

GENERAL

Letter of comfort from Novel Denim Holdings that they will not allow any follow
subsidiary with whom the local group trades with, to go into liquidation and
also to reduce the Inter-company trade debtors days of the local group of
companies to 180 days by 31 March 2002, with further reductions to be negotiated
[ILLEGIBLE] and that they will ensure a minimum Inter-group, hardcore trade
credit of R30,000,000 to the South African companies.

PERIOD

The facilities have been afforded on a fluctuating basis without a specific
expiry date. The arrangements are subject to review from time to time and
continuation will depend on the prevailing circumstances at the time.

The Structured Finance facility is subject to its own separate agreement.

SPECIAL CONDITIONS

1.       Any [ILLEGIBLE] under the additional R10,000,000 overdraft/Letters of
         Credit facility approved, must be covered by funds on a pledged CFC
         account.

2.       We understand that your group of companies will not achieve the debtor
         term covenant of 180 day maximum, by 31st March 2002, due to certain
         transactions having only taken place during April 2002.

         We therefore need to review the facilities using the March 2002
         accounts, together with the April 2002 management accounts, in order to
         [ILLEGIBLE]  the  [ILLEGIBLE] of the covenant.

         Kindly provide your accounts as soon as possible.

GENERAL CONDITIONS

The [ILLEGIBLE] are approved on the basis that

1.       Audited financial details are provided annuaLly, and within 6 months of
         your financial year-end.

2.       Management accounts are submitted to the Bank on a quarterly basis, and
         within 6 months of your [ILLEGIBLE] end.

3.       [ILLEGIBLE] are completed and submitted to the Bank annually for onward
         [ILLEGIBLE] to the South Africa Reserve Bank.

4.       Bank charges [ILLEGIBLE] to review from time to time.

5.       The General Terms and Condition as per [ILLEGIBLE] also apply.

<PAGE>

         Cover basis for multi-optional overdraft facilities:-

         a)       Debtors margined at 1/3 should at all times cover the facility
                  and [ILLEGIBLE] reserve the right to reduce the limit in line
                  with any reduction in the cover basis.

Should you require any further information, [ILLEGIBLE] please do not hesitate
to contact the undersigned.

Please confirm this arrangement by signing and returning the enclosed copy of
this letter.

Yours faithfully

/s/  [ILLEGIBLE]                                     /s/ E G SCHWULST

[ILLEGIBLE]                                          E G SCHWULST
RELATIONSHIP MANAGER                                 CREDIT MANAGER

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