Document:

<PAGE> 1
                        D&K HEALTHCARE RESOURCES, INC.
                      EXECUTIVE RETIREMENT BENEFIT PLAN

This plan document executed as of January 1, 1998 by D&K Healthcare
Resources, Inc..

WITNESSETH:
----------

    WHEREAS, D&K Healthcare Resources, Inc. has established this Plan to
provide certain Key Executive Employees with death benefit payments and
retirement benefit payments so as to encourage the ongoing employment of its
Key Executive Employees; and

    WHEREAS, the adoption and execution of this Plan has been approved by the
Board.

Article 1.  DEFINITIONS
            -----------

    1.1     Accrued Benefit:  The sum of all Discretionary Contributions
            ---------------
credited to the Participant's Retirement Account and due and owing to the
Participant or the Participant's beneficiaries pursuant to his Agreement,
together with net earnings and gains and losses as set forth in the section
hereof entitled "Investment of Deferred Amount", minus any distributions
hereunder.

    1.2     Actual Retirement Date:  The first day of the calendar month
            ----------------------
immediately following a Participant's actual retirement or termination of
employment with the Corporation.

    1.3     Agreement:  The agreement, in the form attached hereto and by this
            ---------
reference incorporated herein, whereby a Participant agrees to participate in
the Plan and designates his Designated Beneficiary.

    1.4     Board:  The Board of Directors of the Corporation.
            -----

    1.5     Cause:  (i) Conduct or activity of the Participant materially
            -----
detrimental to the Corporation's reputation or business (including financial)
operations; (ii) gross or habitual neglect or breach of duty or misconduct of
the Participant in discharging the duties of his position; or (iii) prolonged
absence by the Participant from his duties (other than on account of illness
or disability) without the consent of the Corporation.

    1.6     Corporation:  D&K Healthcare Resources, Inc., a Delaware
            -----------
corporation.

    1.7     Death Benefit:  The amount of death benefit payable in accordance
            -------------
with the provisions of this Plan.

    1.8     Designated Beneficiary:  The individual, trustee or other personal
            ----------------------
representative designated by the Participant to receive benefits under this
Plan in the event of Participant's death.

    1.9     Effective Date:  January 1, 1998.
            --------------
    1.10    Investment Fund:  Any investment fund which is selected and held
            ---------------
by the Corporation or a trust pursuant to this Plan.

    1.11    Key Executive Employee:  A person who serves as a corporate
            ----------------------
officer of the Corporation or  senior officer of an operating unit of
Corporation.

                                     91

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    1.12    Normal Retirement Date:  The first day of the calendar month
            ----------------------
immediately following a Participant's sixty-fifth birthday.

    1.13    Participant:  A Key Executive Employee recommended and approved by
            -----------
the Board to participate in this Plan.

    1.14    Plan:  The D&K Healthcare Resources, Inc. Executive Retirement
            ----
Benefit Plan.

    1.15    Retirement:  The termination of a Participant's employment with
            ----------
the Corporation on or after attaining age sixty-five.

    1.16    Retirement Account:  Book entries maintained by the Corporation
            ------------------
reflecting Discretionary Contributions and Additions thereon.

    1.17    Retirement Benefit:  The amount of the benefit payable in
            ------------------
accordance with Article 8 of this Plan.

    1.18    Vesting Percentage:  The Participant's Annual Vesting Percentage
            ------------------
in his Retirement Account is 20% and is cumulative for each Year of Service
as a Key Executive Employee.  Furthermore, Participant will be 100% vested in
his Retirement Account if he attains age 65 while in the employ of the
Corporation.

    1.19    Years of Service:  The term "Years of Service" means, with respect
            ----------------
to a Participant, any twelve (12) consecutive month period commencing on the
date on which he first became a Key Executive Employee and during which the
Participant completes at least 1,000 hours of service with the Corporation.

    Article 2.  ADMINISTRATION
                --------------

    2.1     The Board shall administer this Plan.  The Board will adopt such
uniform and nondiscriminatory regulations as it shall deem necessary or
appropriate for the administration of this Plan.  The Board shall have the
full power and authority to resolve all questions and issues interpreting the
terms and conditions of this Plan which may arise hereunder.  The Board may
delegate one or more of its duties or responsibilities to other individuals.

    2.2     The Board shall determine the facts required in the administration
of this Plan from such information as it shall seek.

    2.3     The Board shall compute the benefits payable, as provided in this
Plan, to Participants or their Designated Beneficiaries under this Plan.

    2.4     The Board shall keep a record of all proceedings and shall
maintain or cause to be maintained all books of accounts, records or other
data as may be necessary or advisable in the Board's judgment for the proper
administration of the Plan.

    2.5     Each Participant who is to receive a benefit pursuant to Article
8, Article 9 and Article 10 shall designate in the Agreement a beneficiary to
receive benefits pursuant to Article 8 , Article 9 and Article 10 in the
event of the Participant's death and shall file the same with the Board.  The
designation may be changed by filing a revised Agreement with the Board.  The
most recent designation received by the Board shall govern.  In the event the
Participant shall fail to designate a beneficiary prior to his death,
benefits shall be paid to the Participant's surviving spouse, if alive;
otherwise to the Personal Representative of the Participant's estate.

    2.6     Each Participant and Designated Beneficiary shall submit to
Corporation, on a form provided by it, his current mailing address.  It shall
be the duty of each Participant and beneficiary to notify Corporation of any
change of address.  In the absence of such notice, Corporation may rely upon
the last known address of the Participant and Designated Beneficiary.

    2.7     A Participant must provide to the Board all information requested
in connection with the administration of any part of this Plan.

                                     92

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    Article 3.  CLAIMS PROCEDURE
                ----------------

    3.1     If the Participant or his beneficiary (hereinafter referred to as
a "Claimant") believes that he is being denied a benefit to which he is
entitled under this Plan, he may file a written request for such benefit with
the Board, setting forth his claim.  The request must be addressed to the
President of the Corporation at its then principal place of business.

    3.2     Upon receipt of a claim, the Board shall advise the Claimant that
a reply will be forthcoming within ninety (90) days and shall, in fact,
deliver such reply within such period.  The Board may, however, extend the
reply period for an additional ninety (90) days for a reasonable cause.  If
the Claim is denied in whole or in part, the Board shall adopt a written
opinion, using language calculated to be understood by the Claimant, setting
forth:

            (1) The specific reason or reasons for such denial;

            (2) The specific reference to pertinent provisions of this Plan
on which such denial is based;

            (3) A description of any additional material or information
necessary for the Claimant to perfect his claim and an explanation why such
material or such information is necessary;

            (4) Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review; and

            (5) The time limits for requesting a review under Article 3.3 and
for review under Article 3.4.

    3.3     Within sixty (60) days after the receipt by the Claimant of the
written opinion described above, the Claimant may request in writing that the
Secretary of the Corporation review the determination of the Board.  Such
request must be addressed to the Secretary of the Corporation, at its then
principal place of business.  The Claimant or this duly authorized
representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Board.  If the
Claimant does not request a review of the Board's determination by the
Secretary of the Corporation within such sixty (60) day period, he shall be
barred and estopped from challenging the Board's determination.

    3.4     Within sixty (60) days after the Secretary's receipt of a request
for review, he will review the Board's determination.  After considering all
materials presented by the Claimant, the Secretary will render a written
opinion, written in a manner calculated to be understood by the Claimant,
setting forth the specific reasons for the decision and containing specific
references to the pertinent provisions of this Plan on which the decision is
based.  If special circumstances require that the sixty (60) day time period
be extended, the Secretary will so notify the Claimant and will render the
decision as soon as possible, but no later than one hundred twenty (120) days
after receipt of the request for review.

    Article 4.  ELIGIBILITY FOR PARTICIPATION IN THE PLAN
                -----------------------------------------

    4.1     Any Key Executive Employee is eligible for recommendation to
participate in the Plan.  The Board may provide that a Key Executive Employee
becomes a Participant in the Plan effective as of any date and such Key
Executive Employee shall become a Participant as of such date.

    4.2     Each Participant shall complete and execute an Agreement, in the
form attached hereto, upon becoming a Participant or at such other time as
the Board may require.

    Article 5.  ANNUAL RETIREMENT BENEFIT PAYABLE ONLY FROM
                -------------------------------------------
                GENERAL CORPORATE ASSETS
                ------------------------

    5.1     The payments to the Participant, his Designated Beneficiary or any
other beneficiary hereunder shall be made from assets which shall continue, for
all purposes, to be a part of the general, unrestricted

                                     93

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assets of the Corporation; no person shall have nor acquire any interest in
such assets by virtue of the provisions of this Plan.  The Corporation's
obligation under this Plan shall be an unfunded and unsecured promise to pay.
To the extent that the Participant or any other person acquires a right to
receive payments from the Corporation under the provisions hereof, such right
shall be no greater than the right of any unsecured general creditor of the
Corporation; no such person shall have nor acquire any legal or equitable
right, interest or claim in or to any property or assets of the Corporation.

    5.2     In the event that, in its discretion, the Corporation purchases an
insurance policy or annuity insuring the life of the Participant (or any
other property) to allow the Corporation to recover the cost of providing the
benefits, in whole, or in part, hereunder, neither the Participant, his
Designated Beneficiary, any other beneficiary nor any other person shall have
nor acquire any rights whatsoever therein or in the proceeds therefrom.  The
Corporation shall be the sole owner and the beneficiary of any such policy or
policies and, as such, shall possess and, may exercise all incidents of
ownership therein.  No such policy, policies or other property shall be held
in any trust for the Participant or any other person nor as collateral
security for any obligation of the Corporation hereunder.

    Article 6.  RETIREMENT CONTRIBUTIONS
                ------------------------

    6.1     The Corporation shall establish a Retirement Account for each
participant to which amounts hereinafter referred to as "Discretionary
Contributions" may be credited by the Corporation. Discretionary Contributions
may be credited at any time by the Corporation and may be fixed in terms of
dollars, percentage of net profits, percentage of compensation or any other
method so determined by the Corporation.

    Article 7.  INVESTMENT OF DEFERRED AMOUNT
                -----------------------------

    7.1     Each Participant, on a form made available to him by the
Corporation and filed with the Corporation at least twenty (20) days prior to
the first day of a calendar quarter, may designate in 5% increments the
percentages of his Deferred Amounts to be invested in the Investment Funds of
the Plan.  If a Participant fails to make such a designation, his Deferred
Amounts will be invested pro-rata in each Investment Fund of the Plan.  Any
such designation shall continue in effect for successive calendar quarters
unless changed in the same manner by the Participant.

    7.2     Each Participant, on a form made available to him by the
Corporation and filed with the Corporation at least twenty (20) days prior to
the first day of a calendar quarter, may elect to transfer all or any portion
in 5% increments of his Retirement Account invested in any Investment  Fund
option to any of the other such Investment Fund option.  Such transfers shall
be subject to such reasonable requirements as may be established by the
Corporation in order to effect such transfer in an orderly manner and without
adverse effect on the other participant's interest in the Investment Funds.

    7.3     As of the last day of each calendar quarter, the Corporation shall
value at their fair market value all assets of each investment Fund to
determine the amount of net earnings and gains and losses incurred by the
Plan in respect of each such Investment Fund since the last day of the
preceding calendar quarter.  The separate amounts so determined for each
Investment Fund shall be allocated as of such date to the Participant
accounts comprising each such Investment Fund in the same ratio that the
balance in each such account bears to the total amount of the balances of all
accounts comprising each Investment Fund.

    7.4     The terms and conditions of this Article 7 are subject to the
terms and conditions of Article 5.

    Article 8.  RETIREMENT BENEFITS
                -------------------

    8.1     In consideration of a Participant's current employment with
Corporation, unless the Participant's employment with the Corporation is
terminated for Cause, the Corporation shall commence payment of his
Retirement Benefit on the later of his Normal Retirement Date or his Actual
Retirement Date.  The Participant's Retirement Benefit shall be equal to his
Accrued Benefit multiplied by the percentage vested as set forth in Article
1.18 and shall be payable as is specified in his Agreement.

                                     94

<PAGE> 5

    8.2     In the event of the Participant's death prior to his Actual
Retirement Date while employed by the Corporation, then no Retirement Benefit
or Disability Retirement Benefit shall be payable.

    Article 9.  DISABILITY RETIREMENT BENEFITS
                ------------------------------

    9.1     Notwithstanding any other provision hereof, a Participant shall be
entitled to receive payments hereunder prior to his Normal Retirement Date,
in any case in which it is determined by a duly licensed physician selected
by the Corporation that, because of ill health, accident or disability that
is permanent in nature or general inability because of age, the Participant
is no longer able, properly and satisfactorily, to perform the Participant's
regular duties as an employee.  If the Participant's employment is terminated
pursuant to this Article 9.1, the Participant's disability retirement benefit
(hereinafter referred to as "Disability Retirement Benefit") shall be equal
to his Accrued Benefit valued as of the date the Participant's permanent
disability was determined by said duly licensed physician.  The Disability
Retirement Benefit payable under this Article 9.1 shall be payable within
ninety (90) days following the Corporation's receipt of written confirmation
of the Participant's permanent disability by said duly licensed physician.

    Article 10. DEATH BENEFITS
                --------------

    10.1    If the Participant dies prior to his Actual Retirement Date, the
Corporation shall thereafter pay a Death Benefit equal to the amount set
forth in the Participant's Agreement.  The Death Benefit will be paid solely
from life insurance proceeds to the Participant's Designated Beneficiary in
accordance with Article 2.5, if life insurance coverage was in place at the
time of death and not otherwise.  Such payment shall be payable within ninety
(90) days following the date of death of the Participant.  After termination
of employment for any reason or Retirement from the Corporation, a
Participant shall have no further rights of any kind in the insurance on his
life.

    10.2    If the Participant dies after his Actual Retirement Date but
before the commencement of payment of Retirement Benefits or Disability
Retirement Benefits, unless the Participant's employment with the Corporation
was terminated for Cause, the Corporation shall pay to the Participant's
Designated Beneficiary in accordance with Article 2.5 a single sum equal to
Participant's Accrued Benefit valued as the date of death of the Participant.
The death benefit payable pursuant to this Article 10.2 shall be the amount
that would have been payable as a Retirement Benefit if the Participant had
attained his Normal Retirement Date and Actual Retirement Date immediately
prior to his death.  Such payment shall be payable within ninety (90) days
following the date of death of the Participant.

    10.3    If the Participant dies after the commencement of his Retirement
Benefit or Disability Retirement Benefit but before the balance of his
Retirement Benefit or Disability Retirement Benefit payments have been paid,
the Corporation shall pay to the Participant's Designated Beneficiary in
accordance with Article 2.5 a single sum equal to Participant's unpaid
Accrued Benefit valued as of the date of death of the Participant.  Such
payment shall be payable within ninety (90) days following the date of death
of the Participant.

    Article 11. TERMINATION BENEFIT
                -------------------

    In the event of the Participant's termination of employment with the
Corporation before the Participant's Normal Retirement Date for any reason,
other than retirement, disability, death or cause, the Corporation shall pay
to the Participant, as compensation for services rendered prior to such
termination, a single sum equal to Participant's Accrued Benefit multiplied
by the percentage vested as set forth in Article 1.18.  Participant's Accrued
Benefit shall be valued as of the last day of the calendar quarter following
the termination of the Participant's employment and shall be payable within
sixty (60) days following such valuation.

    Article 12. NON-COMPETITION DURING EMPLOYMENT
                ---------------------------------

    12.1    So long as the Participant remains in the active employ of the
Corporation, the Participant will devote substantially all of his time, skill,
diligence and attention to the business of the Corporation, and will

                                    95

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not actively engage, either directly or indirectly, in any business or other
activity which is or may be deemed to be in any way competitive with or adverse
to the best interests of the business of the Corporation.

    Article 13. TERMINATION OF EMPLOYMENT FOR CAUSE
                -----------------------------------

    13.1    If the Participant's employment with the Corporation is terminated
for Cause, the Participant shall forfeit any benefits otherwise payable
pursuant to this Plan, regardless of his Vesting Percentage, and the
Corporation shall have no obligations to the Participant under the Plan or
the Corporation's Agreement with the Participant.

    Article 14. CHANGE OF CONTROL
                -----------------

    14.1    If a Change of Control of  the Corporation occurs, the
Participant's vesting percentage shall be increased to 100% as of the date of
the Change of Control.  A "Change of Control" means a vote by a majority of
the shareholders of  the Corporation to liquidate or sell all or
substantially all the assets of  the Corporation or to merge or consolidate
the Corporation with another entity such that the outstanding shares of the
Corporation prior to such merger or consolidation shall not represent the
same proportionate interest in the voting powers of the surviving entity.

    Article 15. MISCELLANEOUS PROVISIONS
                ------------------------

    15.1    Corporation reserves the right to amend or terminate this Plan;
however, any amendment or termination permitted under this Article 15.1 shall
not reduce or cancel any Retirement Benefit, Disability Retirement Benefit,
or Death Benefit which has become vested at that point of time, or the manner
of payment of such benefits payable to a Participant or his Designated
Beneficiary.

    15.2    Construction of this Plan shall be governed by the laws of the
State of Missouri.

    15.3    Nothing in this Plan, or any amendment thereto, shall give a
Participant, Designated Beneficiary, employee or other person a right unless
it is specifically provided or is accorded by the Corporation pursuant to
this Plan.  Nothing in this Plan or any amendment thereto shall be construed
as giving a Participant the right to remain in the employment of Corporation
and all persons shall remain subject to discharge at any time to the same
extent as if this Plan had not been adopted.

    15.4    This Plan does not create a trust in favor of a Participant, his
Designated Beneficiary or any other persons claiming in his behalf, and the
obligation of Corporation is solely a contractual obligation to make the
payments due hereunder.

    15.5    The Corporation may, in its sole discretion, permit the
Participant to take a leave of absence for a period not to exceed one year.
During this time the Participant will be considered to be in the continuous
employ of the Corporation for purposes of this Plan.

    15.6    The interests of Participants and their Designated Beneficiaries
are not subject to claims, indebtedness, attachment, execution, garnishment
or other legal or equitable process, and such interests may not be
voluntarily or involuntarily sold, transferred or assigned.  Notwithstanding
this Article 13.6, Corporation may apply any distribution pursuant to this
Plan to satisfy, in whole or in part, any amounts due from Participant to
Corporation.

    15.7    The terms of this Plan shall be binding upon the heirs, executors,
administrators, successors and assigns of all parties in interest.

    15.8    Terms in the masculine shall be deemed to include the feminine,
and terms in the singular shall be deemed to include the plural and vice
versa, wherever the context so admits or requires.

IN WITNESS WHEREOF, D&K Healthcare Resources, Inc. has caused this Plan to be
executed and attested by its officer thereto duly authorized as of the day
and year first above written.

                                    96

<PAGE> 7

                                    D&K Healthcare Resources, Inc.

                                    By /s/ Martin D. Wilson
                                       --------------------
                                       President

ATTEST:

/s/ Daniel Kreher
-----------------

                                     97<PAGE>

                                  [HSBC LOGO]

Ref:    COMMERCIAL BANKING - DIVISION E

CONFIDENTIAL

Concord Camera HK Ltd
14/F Fortei Building
98 Texaco Road
Tsuen Wan
NEW TERRITORIES                                                     31 July 2000

Attn: Mr Harlan Press/ Mr Paul Wong

Dear Sirs

BANKING FACILITIES
A/C NO. 500-166012-001

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
revised limits subject to review at any time and, in any event by 31 May 2001,
and also subject to our overriding right of withdrawal and repayment on demand,
including the right to call for cash cover on demand for prospective and
contingent liabilities.

                                New                     Previously
                                ---                     ----------

Import Facilities               HKD85,000,000.-         HKD43,000,000.-
-----------------

Documentary Credit to your suppliers and Import Loan Facilities in either HK
Dollars or Foreign Currency for up to 90 days, less any usance/credit periods
granted by your suppliers

within which                   (HKD85,000,000.-)       (HKD43,000,000.-)
------------

Goods under your control and/or Trust Receipts.

Packing Credit                  HKD20,000,000.-         HKD20,000,000.-
--------------

Up to 70% of valid export Documentary Credits in your favour deposited with us
for up to 75 days before shipment date.

Interest on your import loans and packing credit loans will be charged at the
following rates:

HKD                 :    1.75% over HIBOR (presently at 1.75% and 2% over our
                         best lending rate on import loans and packing credit
                         loans respectively)

Foreign currency    :    1.75% over SIBOR or 1% below our standard Trade
                         Finance Rates as published by us (presently at our
                         standard Trade Finance Rates)

Interest at the above mentioned rates over HIBOR (Hong Kong Interbank Money
Market Offer Rate) and SIBOR (Singapore Interbank Money Market Offer Rate) are
subject to fluctuation at our discretion and payable monthly in arrears to the
debit of your current account.

                                                                           .../2
The Hongkong and Shanghai Banking Corporation Limited
Hong Kong Main Office: l Queen's Road Central, Hong Kong
Tel: 2822 1111 Fax:
Tix: 73205 HSBC HX Tgms: Hongbank Hongkong                        Page ___ / ___

<PAGE>

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                                     - 2 -

Concord Camera HK Ltd                                               31 July 2000
--------------------------------------------------------------------------------

                               New                      Previously
                               ---                      ----------

Export OBN Facility            Nil                      HKD20,000,000.-
-------------------

This facility was previously available for our advance against export bills
drawn under documentary credits of which the negotiation/payment is restricted
to other banker or person other than our Bank. Advance against restricted
documentary credits may not be protected by UCP500 and the Bank relies amongst
others comfort that payment of export documents will be received from the DC
issuing bank. In order to facilitate our future processing of these bills from
your company, we hereby enclose for your completion and return an "Assignment of
DC Proceeds" Form together with a sample board resolution. Upon receipt, we
shall arrange for a registration at the Companies Registry with relative charges
for your account.

Foreign Exchange Limit         HKD15,000,000.-          Nil
----------------------

For booking foreign exchange contracts up to this limit in aggregate, with
individual contracts for periods of up to a maximum of three months forward.

Contracts may only be entered into to cover trade related exchange exposure
incurred in the normal course of business.

Foreign Exchange facility remains subject to our 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, after having discussed the position
with yourselves, close out any or all of your outstanding forward foreign
exchange contracts and demand settlement of the balance due.

Foreign exchange contracts will be governed by the conditions appearing on the
reverse of the standard contract form. These contract forms should be checked
upon receipt and the copy signed and returned to the Bank.

In respect of any foreign exchange contract, you will be required to (and you
hereby undertake to) deliver the full amount specified in such contract on the
delivery date. We shall not be obliged to deliver any amount due from us on the
said delivery date in respect of such contract or at any other time unless and
until we have received the full amount specified in such contract from you and
may at our option set-off any undelivered balance for your account in respect of
such contract at the rate applicable at the time of set-off.

Security
--------

As security, we shall continue to hold:-

1)   A Letter of Awareness from Concord Camera Corp dated 24 August 1998
     together with a Certificate of Assistant Secretary dated 3 September 1998.

                                                                           .../3

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                                  [HSBC LOGO]

                                     - 3 -

Concord Camera HK Ltd                                               31 July 2000
--------------------------------------------------------------------------------

2)   A Letter of Undertaking from your company together with a Board Resolution
     both dated 24 August 1998 undertaking:

     (a)  to direct to us bills business of not less than HKD100,000,000.- on an
          annual basis;

     (b)  to maintain the tangible net worth of your company above
          HKD110,000,000.- at all times;

     (c)  to maintain the net gearing ratio (after netting cash balance) of your
          company below 45% at all times;

     (d)  not to declare dividends of more than 50% of recurrent net profit in
          any financial year.

3)   A Letter of Undertaking dated 20 July 1999 from your company together with
     a Board Resolution dated 19 July 1999 undertaking to direct to us all I/E
     bills business of your company

4)   A Corporate Guarantee for USD4,200,000.- from Concord Camera Corp with
     Board Resolution both dated 19 August 1999.

5)   A Corporate Guarantee for USD4,000,000.- from Concord Camera Corp with
     Board Resolution and Certificate of Incumbency all dated 11 November 1999.

As additional security for the revised facilities, we shall require:-

-    a new Corporate Guarantee for USD5,500,000.- from Concord Camera Corp
     together with i) a certified copy of a Board Resolution, signed sealed by
     the Secretary or Assistant Secretary of Concord Camera Corp authorising a
     named person to execute the guarantee; ii) a Certificate of Incumbency
     signed sealed by the Secretary or Assistant Secretary identifying the
     individual authorized to issue the guarantee. We enclose our form of
     guarantee for your completion and return.

-    a Letter of Undertaking from your company together with a certified copy of
     a Board Resolution undertaking to maintain a tangible net worth of not less
     than HKD250,000,000.-.

As agreed, we shall arrange to release an "all monies" legal charge over the
property at 14/F, Workshop of Mappin House, 98 Texaco Road and 57A Wang Wo Tsai
Street, Tsuen Wan, New Territories, with Concord Camera HK Ltd as the mortgagor
(the 'Mortgagor'). We shall instruct our solicitors, Messrs Johnson Stokes and
Master to prepare the necessary documentation. Please note that all costs and
expenses (including legal fees) incurred by us in connection with the extension
of these facilities and any matters arising are to be reimbursed by you on
demand.

A review fee of HKD105,000.- will be charged to the debit of your current
account upon your acceptance of this facility letter.

                                                                           .../4

<PAGE>

                                  [HSBC LOGO]

                                     - 4 -

Concord Camera HK Ltd                                               31 July 2000
--------------------------------------------------------------------------------

These facilities will remain open for acceptance until the close of business on
21 August 2000 and if not accepted by that date will be deemed to have lapsed.

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 us in
writing.

Please arrange for the authorised signatories of your company in accordance with
the terms of the mandate given to the Bank, to sign and return to us the
duplicate copy of this letter to signify your understanding and acceptance of
the foregoing arrangement.

Please note that this letter supersedes our letter of 29 June 2000 which is now
considered null and void.

We are pleased to be of continued assistance.

Yours faithfully

                                               For and on behalf of
                                               CONCORD CAMERA HK LIMITED

/s/ Sunny Poon                                 /s/ Harlan I. Press /s/ Paul Wong
--------------------------                     ---------------------------------
SUNNY POON
Relationship Manager
mm
Encl

<PAGE>

                                  [HSBC LOGO]

Ref:

Concord Camera HK Ltd
14/F Concord Technology Centre
98 Texaco Road
Tsuen Wan
New Territories                                                    7 August 2000

Attn: Mr. Paul Wong
-------------------

Dear Sir

FACTORING SERVICES

With reference to our recent discussions, we are pleased to advise that we have
reviewed and renewed your factoring facilities as follows. The facilities are
subject to review at any time and, in any event by 31 July 2001.

SERVICES
--------
Export/Domestic Recourse Undisclosed Factoring Facility

SALES LEDGER ADMINISTRATION
---------------------------
Our services will provide your company with monthly statements of the
receivables purchased, the payments received and the aged debt analysis of your
customers.

FUNDS-IN-USE LIMIT                                      USD18,000,000.-
------------------

CONCENTRATI0N PERCENTAGE
------------------------
Concentration percentage is continued to be replaced by setting Debtor Funding
Sub-limits as follows:-

        Debtor Name                                     Funding sub-limit
        -----------                                     -----------------
        Agfa Gevaert AG                                 USD4,000,000.-
        Ferrania SPA                                    USD1,300,000.-
        Ferrania Imaging Technologies                   USD5,100,000.-
        HP Financial Services Center                    USD6,000,000.-
        Konica Corporation                              USD4,000,000.-
        Polaroid Corporation                            USD8,500,000.-
        Nippon Polaroid Kabushiki Ka                    USD  500,000.-
        Mattel Vendor Operations Asia Ltd               USD1,600,000.-
        Boots (Retail Buying) Ltd                       USD3,200,000.-
        Kodak Far East Ltd                              USD9,000,000.-

                                                                           .../2
The Hongkong and Shanghai Banking Corporation Limited
Factoring Services Division:
Level 19, l Queen's Road Central, Hong Kong
Tel: 2822 2911 Fax: (852) 2537 7196
Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong                 Page ___ / ___

<PAGE>

                                  [HSBC LOGO]

Ref:

                                     - 2 -

Concord Camera Hong Kong Ltd
--------------------------------------------------------------------------------

DISCOUNTING CHARGE
------------------
Discounting Charge will be reduced from 0.5% to 1% below our Trade Finance Rate
(subject to fluctuation at our discretion).

SERVICE CHARGE
--------------
Service Charge will be reduced from 0.1% to 0.065%, but subject to a minimum
annual commission of USD52,000.- (for the period from 1 August 2000 to 31 July
2001). The deficit of the minimum annual commission is to be debited to your
current account on 31 July 2001.

PREPAYMENT PERCENTAGE
---------------------
Prepayment Percentage will continue to be set at 80%.

TERMS OF PAYMENT
----------------
Up to 90 days for payment under a Contract of Sale and as to any discount,
allowance or credit due or allowable to your Customer.

CONDITIONS OF OFFER
-------------------
1)   We continue to hold the Factoring Agreement under seal dated 8 September
     1999 supported by board resolution.

2)   We continue to hold the Corporate Guarantee for USD18,000,000,- dated 29
     September 1999 from Concord Camera Corporation, USA together with:

     (i)  a certified copy of a Board Resolution, signed sealed by the Secretary
          or Assistant Secretary of Concord Camera Corporation USA;

     (ii) a Certificate of Incumbency signed sealed by the Secretary or
          Assistant Secretary

OPERATIONAL REQUIREMENTS
------------------------
a)   Invoices dated 60 days after due date are to be disapproved for funding.
b)   Blank-dated notification letters addressed to your customers are to be held
     by us.
c)   All remittances/payments of your customers in respect of debts that we
     will factor are to be credited to our designated account. Procedures and
     documentation relating to this requirement will be dealt with on opening of
     this account.
d)   We will conduct an audit at your office on a quarterly basis to check and
     verify accounts, and records relating to the factored sales.
e)   A minimum of USD80 million invoice turnover to be assigned to us.

                                                                           .../3
The Hongkong and Shanghai Banking Corporation Limited
Factoring Services Division:
Level 19, l Queen's Road Central, Hong Kong
Tel: 2822 2911 Fax: (852) 2537 7196
Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong                 Page ___ / ___

<PAGE>

                                  [HSBC LOGO]

Ref:

                                     - 3 -

Concord Camera Hong Kong Ltd
--------------------------------------------------------------------------------

All other terms and conditions as stated in our Factoring Agreement dated
8 September 1999 remain unchanged.

These facilities will remain open for acceptance until the close of business on
28 August 2000 and if not accepted by that date will be deemed to have lapsed.

Please arrange for the authorised signatories of your company, in accordance
with the terms of the mandate given to the Bank, to sign and return to us the
duplicate copy of this letter to signify your confirmation as to the correctness
of the security held, and your understanding and acceptance of the foregoing.

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 us in
writing.

We are pleased to be of continued assistance.

Yours faithfully

/s/ Roderick K L Ching                  For and On behalf of
--------------------------------        CONCORD CAMERA HK LIMITED
Roderick K L Ching
Relationship Manager                    /s/ Harlan I. Press   /s/ Paul Wong
Enc                                     ----------------------------------------

The Hongkong and Shanghai Banking Corporation Limited
Factoring Services Division:
Level 19, l Queen's Road Central, Hong Kong
Tel: 2822 2911 Fax: (852) 2537 7196
Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong                 Page ___ / ___

<PAGE>

                                  [HSBC LOGO]

Ref:

Concord Camera Hong Kong Ltd
14/F Fortei Building
98 Texaco Road
Tsuen Wan
New Territories                                                 8 September 1999

Attn: Mr Paul Wong
------------------

Dear Sir

FACTORING SERVICES
------------------

This letter supersedes our previous letter of 23 August 1999.

With reference to our recent discussions, we are pleased to confirm our
agreement to grant your company factoring facilities. The facilities will be
made available on the specific terms contained in the Factoring Agreement and
the covering schedule of the Factoring Agreement enclosed in duplicate.

SERVICES
--------
Export/Domestic Recourse Undisclosed Factoring Facility

SALES LEDGER ADMINISTRATION
---------------------------
Our services will provide your company with monthly statements of the
receivables purchased, the payments received and the aged debt analysis of your
customers.

Prior to the commencement of the agreement our staff will work closely with you
to establish collection procedures and ensure the efficient takeover of your
outstanding sales ledger.

CONDITIONS OF OFFER
-------------------

1)   Execution of the enclosed Factoring Agreement by your company under seal
     supported by a certified board resolution authorising the execution of the
     Factoring Agreement.

2)   A Corporate Guarantee for USD18,000,000.- from Concord Camera Corporation,
     USA together with

     (i)   a certified copy of a Board Resolution, signed sealed by the
           Secretary or Assistant Secretary of Concord Camera Corporation USA
           authorised a named person to execute the guarantee;

     (ii)  a Certificate of Incumbency signed sealed by the Secretary or
           Assistant Secretary identifying the individual authorised to issue
           the guarantee; and

     (iii) a Counsel Opinion in the form substantially similar to that
           attached.

3)   Invoices 60 days after due date are to be disapproved for funding.

                                                                           .../2
The Hongkong and Shanghai Banking Corporation Limited
Factoring Services Division:
Level 19, l Queen's Road Central, Hong Kong
Tel: 2822 2911 Fax: (852) 2537 7196
Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong                 Page ___ / ___

<PAGE>

                                  [HSBC LOGO]

                                     - 2 -

Concord Camera Hong Kong Ltd
--------------------------------------------------------------------------------

CONDITIONS OF OFFER (Cont'd)
-------------------
4)   Blank-dated notification letters addressed to your customers are to be held
     by us.
5)   Debtor Funding Sub-limits are to be set as follows: -

        Debtor Name                                     Funding sub-limit
        -----------                                     -----------------
        Agfa-Gevaert AG, Germany                        USD4,000,000.-
        Boots (Retail Buying) Ltd                       USD3,200,000.-
        Imation Corporation, USA & Italy                USD6,400,000.-
        Kodak Far East Purchasing Co, Inc               USD9,000,000.-
        Konica                                          USD4,000,000.-
        Mattel Vendor Operations Asia Ltd               USD1,600,000.-
        Polaroid Corporation, USA                       USD9,000,000.-
        Tomahawk (Hewlett Packard)                      USD6,000,000.-

OPERATIONAL REQUIREMENTS
------------------------
a)   Completion of the enclosed Bank Mandate.

b)   Completion of the enclosed Authorised Signatory Form.

c)   Completion of the enclosed Letter of Indemnity.

d)   Satisfactory termination of existing factoring arrangement with East Asia
     Heller Ltd.

e)   All remittances/payments of your customers in respect of debts that we
     will factor are to be credited to our designated account. Procedures and
     documentation relating to this requirement will be dealt with on opening of
     this account.

f)   We will conduct an audit at your office on a quarterly basis to check and
     verify accounts, and records relating to the factored sales.

g)   Ageing and monthly control to be submitted before 10th of each month.

These facilities will remain open for acceptance until the close of business on
29 September 1999 and if not accepted by that date will be deemed to have
lapsed.

Please arrange for the authorised signatories of your company, in accordance
with the terms of the mandate given to the Bank, to sign and return to us the
duplicate copy of this letter. Additionally please arrange for the delivery to
us of the documents referred to in items 1) and 2) under the above heading
Conditions of Offer and items a), b), c) and d) under the above heading
Operational Requirements.

                                                                           .../3

<PAGE>

                                  [HSBC LOGO]

                                     - 3 -

Concord Camera Hong Kong Ltd
--------------------------------------------------------------------------------

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 us in
writing.

We look forward to the development of a mutually beneficial relationship,

Yours faithfully

/s/ Philip Cheng                                For and On behalf of
--------------------------------                CONCORD CAMERA HK LIMITED
Philip Cheng
Manager Factoring Services                      /s/ Brian King  /s/ Paul Wong
Enc                                             --------------------------------

/yy

<PAGE>

HSBC                                      [LOGO]

Ref: COMMERCIAL BANKING - DIVISION E

CONFIDENTIAL

Concord Camera HK Ltd
14/F Fortei Building
98 Texaco Road
Tsuen Wan
NEW TERRITORIES                                                  1 November 1999

Attn: Mr. Harlan Press/ Mr. Paul Wong

Dear Sirs

BANKING FACILITIES
A/C NO. 500-166012-001

With reference to our recent discussion, we are pleased to confirm our agreement
to revision of the undermentioned banking facilities to your company. The
revised facilities are subject to review at any time and, in any event by 31
March 2000, and also subject to our overriding right of withdrawal and repayment
on demand, including the right to call for cash cover on demand for prospective
and contingent liabilities.

<TABLE>
<CAPTION>
                                                         New                Previously
                                                         ---                ----------
<S>                                                         <C>                <C>
Import Facilities                                        HKD43,000,000.-    HKD22,700,000.-

Documentary Credit to your suppliers and
Import Loan Facilities in either HK Dollars
or Foreign Currency for up to 90 days, less
any usance/credit periods granted by your suppliers

within which

Goods under your control and/or                         (HKD43,000,000.-)  (HKD22,700,000.-)
Trust Receipts

Packing Credit

Up to 70% of valid export Documentary                    HKD20,000,000.-    HKD10,000,000.-
Credits in your favour deposited with us
for up to 75 days before shipment date

Export Facility

Advance against restricted Documentary                   HKD20,000,000.-    HKD10,000,000.-
Credits approved by us (OBN Advance)
</TABLE>

The Hongkong and Shanghai Banking Corporation Limited
Hong Kong Main Office: 1 Queen's Road Central, Hong Kong
Tel: 2822 1111 Fax:
Tix: 73205 HSBC HX Tgms: Hongbank Hongkong
<PAGE>

                                      -2-

HSBC            [LOGO]
Concord Camera HK Ltd                                            1 November 1999
--------------------------------------------------------------------------------

Interest on your HKD import loans and packing credit loans will continue to be
charged on a daily basis respectively at 1.75% and 2% per annum over our best
lending rate, (currently 8.5% 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 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.

As additional security for the revised facilities, we shall require a new
Corporate Guarantee for USD4,000,000,- from Concord Camera Corp. together with
i) a certified copy of a Board Resolution, signed sealed by the Secretary or
Assistant Secretary of Concord Camera Corp. authorising a named person to
execute the guarantee; ii) a Certificate of Incumbency signed sealed by the
Secretary or Assistant Secretary identifying the individual authorized to issue
the guarantee. We enclose our form of guarantee for your completion and return.

An arrangement Fee of HKD75,750.- will be charged to the debit of your current
account upon your acceptance of this facility letter.

Apart from the foregoing, all other terms and conditions as stipulated in our
facility letters of 30 April 1999, 17 June 1999 and 26 July 1999 remain
unchanged.

These facilities will remain open for acceptance until the close of business on
22 November 1999 and if not accepted by that date will be deemed to have lapsed.

Please arrange for the authorized signatories of your company in accordance with
the terms of the mandate given to the Bank, to sign and return to us the
duplicate copy of this letter to signify your understanding and acceptance of
the foregoing arrangement.

We are pleased to be of continued assistance.

Yours faithfully

/s/ Sunny Poon                          For and On Behalf of
------------------------                CONCORD CAMERA HK LIMITED
SUNNY POON
Relationship Manager                    /s/ Brian King      /s/ Paul Wong
mm                                      ----------------------------------------
Encl

<PAGE>

HongkongBank                                                            [LOGO]
The Hongkong and Shanghai Banking Corporation Limited
Hong Kong Main Office: 1 Queen's Road Central, Hong Kong

Ref:  COMMERCIAL BANKING - DIVISION E

CONFIDENTIAL

Concord Camera HK Ltd
14/F Fortei Building
98 Texaco Road
Tsuen Wan
NEW TERRITORIES                                                    30 April 1999

Attn: Mr. Harlan Press/Mr. Paul Wong

Dear Sirs

BANKING FACILITIES
A/C NO. 500-166012-001

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
revised limits subject to review at any time and, in any event by 31 March 2000,
and also subject to our overriding right of withdrawal and repayment on demand,
including the right to call for cash cover on demand for prospective and
contingent liabilities.

                                           New                   Previously
                                           ---                   ----------

Import Facilities
-----------------

Documentary Credit to your suppliers and   HKD14,000,000.-      HKD14,000,000.-
Import Loan Facilities in either HK
Dollars or Foreign Currency for up to
90 days, less any usance/credit periods
granted by your suppliers

within which
------------

Goods under your control and/or            (HKD14,000,000.-)   (HKD14,000,000.-)
Trust Receipts

Packing Credit
--------------

Up to 70% of valid export Documentary      HKD7,000,000.-      HKD7,000,000.-
Credits in your favour deposited with us
for up to 75 days before shipment date

Interest on your HKD import loans and packing credit loans will be charged on a
daily basis respectively at 1.75% and 2% per annum over our best lending rate,
(currently 8.5% 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 will 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
GPO Box 64, Hong Kong                                            Page ___ of ___
Telephone: 28221111 Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong
Facsimile:                                                     Member HSBC Group

<PAGE>

                                      -2-

HongkongBank                                                              [LOGO]
Concord Camera HK Ltd                                              30 April 1999
--------------------------------------------------------------------------------

                                           New                   Previously
                                           ---                   ----------

New Term Loan                              USD1,500,000.-        NIL
-------------

Subject to the following terms and conditions:-

Term              :  3 years

Availability/     :  The new term loan will be available upon your acceptance to
Drawdown             this facility letter and completion of the additional
                     security 1) and 2) detailed below. Drawdown prior to the
                     completion of additional security 3) and 4) is allowed and
                     full drawdown is to be made on or before 21 August 1999.

Interest          :  Interest will be charged on a daily basis at 2.75% per
                     annum over our USD best lending rate, (currently 6.5% per
                     annum, but subject to fluctuation at our discretion) and
                     payable monthly in arrears to the debit of your current
                     account.

Repayment         :  Repayment is to be made by 12 quarterly instalments of
                     USD125,000.- each commencing three months after drawdown to
                     the debit of your current account.

Arrangement Fee   :  USD3,750.- will be charged to the debit of your current
                     account upon your acceptance to this facility letter.

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

Governing Law     :  The laws of Hong Kong with non-exclusive courts of
                     jurisdiction.

Should the new term loan facility not be accepted and drawn down by your
company, a separate review fee of HKD15,000.- will be charged in lieu to the
debit of your current account in relation to the annual review of your existing
banking facilities.

Security
--------
As security, we shall continue to hold:-

1) A Letter of Awareness from Concord Camera Corp dated 24 August 1998 together
   with a Certificate of Assistant Secretary dated 3 September 1998.

2) A Letter of Undertaking from your company together with a Board Resolution
   both dated 24 August 1998 undertaking:

   (a) to direct to us bills business of not less than HKD100,000,000.- on an
       annual basis;

   (b) to maintain the tangible net worth of your company above HKD110,000,000.-
       at all times;

   (c) to maintain the net gearing ratio (after netting cash balance) of your
       company below 45% at all times;

   (d) not to declare dividends of more than 50% of recurrent net profit in any
       financial year.

                                                                     .../3
                                                                 Page ___ of ___

<PAGE>

                                      -3-

HongkongBank                                                              [LOGO]
Concord Camera HK Ltd                                              30 April 1999
--------------------------------------------------------------------------------

As additional security for the revised facilities, we shall require:-

1) An "all monies" legal charge over the property at 14/F, Workshop of Mappin
   House, 98 Texaco Road and 57A Wang Wo Tsai Street, Tsuen Wan, New
   Territories, with Concord Camera HK Ltd as the mortgagor (the "Mortgagor")
   that is to say a mortgage to secure "all monies" in respect of general
   banking facilities owing from time to time including future advances, with an
   unlimited covenant to pay on the part of the Mortgagor.

2) A Letter of Undertaking to direct to us all I/E bills business of your
   company

3) An "all monies" legal charge over your factory properties at Long Gang,
   118 & 119 Industry District Heng Gang, Shenzhen, The People's Republic of
   China, with Concord Camera HK Ltd as the mortgagor (the "Mortgagor") that is
   to say a mortgage to secure "all monies" in respect of general banking
   facilities owing from time to time including future advances, with an
   unlimited covenant to pay on the part of the Mortgagor.

4) A Corporate Guarantee for USD4,200,000.- from Concord Camera Corp.

Upon acceptance of this letter we shall instruct our solicitors, Messrs.
Johnson Stokes and Master to prepare the necessary documentation. Please note
that all costs and expenses (including legal fees) incurred by us in connection
with the extension of these facilities and any matters arising are to be
reimbursed by you on demand.

We can offer you the services of our in-house insurance division HongKongBank
Insurance Services which will be able to arrange the necessary policy to be
issued as well as providing an extensive range of insurance services to cater to
all of your insurance needs. HongKongBank Insurance Services has access to the
group's wholly owned insurance subsidiaries, HSBC Insurance Company Limited,
HSBC Medical Insurance Limited and HSBC Gibbs (Asia-Pacific) Limited. This will
ensure that you have the required protection in place at a competitive price.

If you choose not to utilise these services you are required to provide prior
to the drawdown of the facility the original signed Fire and Allied Perils
policy including Landslip and Subsidence covering the Full Replacement value of
the property. This is to be issued by an insurance company approved by us,
noting our interests as mortgagee together with the Original Premium Payment
Receipt.

You represent and warrant to us that you have taken, are taking and will
continue to take all such steps as are necessary and appropriate (i) to quantify
and assess the impact of the Year 2000 problem on your business and financial
condition (including an assessment and quantification of the impact of the Year
2000 problem on your suppliers or other third parties on whom your business
depends) and (ii) to ensure that neither the use nor the functionally of any of
your computer or other systems or those of any of such suppliers or other third
parties will be adversely affected in any way by any dates prior to, during or
after the 31st December 1999.

You will on request by us provide such information as we shall from time to
time require as we consider necessary to enable us properly to assess your
compliance or otherwise with representation and warranty contained in above.

                                                                     .../4
                                                                 Page ___ of ___

<PAGE>

                                      -4-

HongkongBank                                                              [LOGO]
Concord Camera HK Ltd                                              30 April 1999
--------------------------------------------------------------------------------

Without in any way prejudicing or affecting our existing rights to demand
repayment and/or withdraw facilities made available hereunder at any time, we
reserve the right to demand repayment and/or withdraw any or all of the
facilities made available or to be made available to you hereunder forthwith on
demand at any time if we consider that you are in breach of any of the
representations and warranties given by you in above or of the undertakings
given by you in above.

For the purposes of above paragraphs, the "Year 2000 problem" means the
possibility that computer or other systems may not be fully compatible with the
millennium date change for the Year 2000 and other date related changes
(including but not limited to (i) to the change from 1999 to 2000. (ii) 29th
February 2000, (iii) the change from 2000 to 2001 and (iv) system purge dates
such as 9.9.99) and that computer or other systems may as a result fail to
operate either properly or at all and/or cause failures or defaults in other
computers or systems.

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 us in
writing.

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

These facilities will remain open for acceptance until the close of business on
20 May 1999 and if not accepted by that date will be deemed to have lapsed.

We are pleased to be of continued assistance.

Your faithfully

/s/ Sunny Poon
---------------------------
SUNNY POON
Relationship Manager                    For and On behalf of
                                        CONCORD CAMERA HK LIMITED
mm

Encl                                    /s/ Keith Lampert    /s/ Paul Wong
                                        ----------------------------------------
                                        Authorized Signature(s)

<PAGE>

HongkongBank                                                   [GRAPHIC OMITTED]
The Hongkong and Shanghai Banking Corporation Limited
Hong Kong Main Office: 1 Queen's Road Central, Hong Kong

Ref: COMMERCIAL BANKING - DIVISION E

CONFIDENTIAL

Concord Camera HK Ltd
14/F Fortei Building
98 Texaco Road
Tsuen Wan
NEW TERRITORIES                                                     17 June 1999

Attn: Mr. Harlan Press/Mr Paul Wong

Dear Sirs

BANKING FACILITIES
A/C NO. 500-166012-001

We refer to our recent discussion and are pleased to offer you the following
additional banking facility. The facility remain subject to review at any time
and, in any event by 31 March 2000, and also subject to our overriding right of
withdrawal and repayment on demand, including the right to call for cash cover
on demand for prospective and contingent liabilities.

Export Facility
---------------

Advance against restricted Documentary                           HKD10,000,000.-
Credits approved by us (OBN Advance)

Apart from the foregoing, all other terms and conditions as stipulated in our
facility letter of 30 April 1999 remain unchanged.

These facilities will remain open for acceptance until the close of business on
8 July 1999 and if not accepted by that date will be deemed to have lapsed.

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 the
duplicate copy of this letter to signify your understanding and acceptance of
the foregoing arrangement.

We are pleased to be of continued assistance.

Yours faithfully

                                        For and On behalf of
                                        CONCORD CAMERA HK LIMITED
/s/ Sunny Poon                          * * * * * * * * * * * * *
-------------------------               /s/ Paul Wong
SUNNY POON                              ---------------------------
Relationship Manager
mm

Encl
GPO Box 64, Hong Kong                                 Page ________ of _________
Telephone: 2822 1111  Telex: 73205 HSBC HX  Telegrams: Hongbank Hongkong
Facsimile:                                                     Member HSBC Group

<PAGE>

HongkongBank                                                   [GRAPHIC OMITTED]
The Hongkong and Shanghai Banking Corporation Limited
Hong Kong Main Office: 1 Queen's Road Central, Hong Kong

Ref: COMMERCIAL BANKING - DIVISION E

CONFIDENTIAL

Concord Camera HK Ltd
14/F Fortei Building
98 Texaco Road
Tsuen Wan
NEW TERRITORIES                                                     26 July 1999

Attn: Mr. Harlan Press/Mr Paul Wong

Dear Sirs

BANKING FACILITIES
A/C NO. 500-166012-001

With reference to our recent discussion, we are pleased to confirm our agreement
to revision of the undermentioned banking facilities to your company. The
revised facilities are subject to review at any time and, in any event by 31
March 2000, and also subject to our overriding right of withdrawal and repayment
on demand, including the right to call for cash cover on demand for prospective
and contingent liabilities.
<TABLE>
<CAPTION>
Term Loan                                       New                          Previously
---------                                       ---                          ----------
<S>                                                <C>                          <C>
(To be cancelled)                               Nil                          USD1,500,000.-

Import Facilities
-----------------

Documentary Credit to your suppliers and        HKD22,700,000.-              HKD14,000,000.-
Import Loan Facilities in either HK
Dollars or Foreign Currency for up to
90 days, less any usance/credit periods
granted by your suppliers

within which
------------

Goods under your control and/or                 (HKD22,700,000.-)            (HKD14,000,000.-)
Trust Receipts

Packing Credit
--------------

Up to 70% of valid export Documentary           HKD10,000,000.-              HKD7,000,000.-
Credits in your favour deposited with us
for up to 75 days before shipment date
</TABLE>

                                                                      .../2
GPO Box 64, Hong Kong                                            Page ___ of ___

<PAGE>

HongkongBank                                                              [LOGO]

                                     - 2 -

Concord Camera HK Ltd                                               26 July 1999
--------------------------------------------------------------------------------

Interest on your HKD import loans and packing credit loans will continue to be
charged on a daily basis respectively at 1.75% and 2% per annum over our best
lending rate, (currently 8.25% 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 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.

Security

We also confirm our agreement to a waiver of additional security being an all
monies legal charge over your factory properties at Long Gang, 118 & 119
Industry District Heng Gang, Shenzhen, The People's Republic of China as stated
in our facility letter of 30 April 1999.

Apart from the foregoing, all other terms and conditions as stipulated in our
facility letters of 30 April 1999 and 17 June 1999 remain unchanged.

Please note that this letter supersedes our letter of 19 July 1999 which is now
considered null and void.

These facilities will remain open for acceptance until the close of business on
16 August 1999 and if not accepted by that date will be deemed to have lapsed.

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 the
duplicate copy of this letter to signify your understanding and acceptance of
the foregoing arrangement.

We are pleased to be of continued assistance.

Yours faithfully,

                                       For and On behalf of
                                       CONCORD CAMERA HK LIMITED

/s/ SUNNY POON                         /s/ Brian King      /s/ Paul Wong
--------------------                   -----------------------------------------
SUNNY POON
Relationship Manager

mm
Encl

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]