Document:

EXHIBIT 4.2

KBC Bank                                               KBC
Hong Kong Branch                                       KBC Bank Hong Kong Branch
                                                       39/F, Central Plaza
                                                       18 Harbour Road, Wanchai
                                                       Hong Kong

20th July 2004                                         Telephone +852 2879 3388
                                                       Telefax +852 2879 3300

Bonso Electronics Limited
Unit 1106-1110,11/F., Star House,
3 Salisbury Road, Tsimshatsui,
Kowloon

Attn:    Ms. Pang Kit Teng Cathy
         Director of Finance

     Dear Sirs,

     Banking Facilities

     KBC Bank N.V. (the "Bank") is pleased to set out below the revised terms
     and conditions upon which the Bank will consider requests made by the
     borrower(s) named in paragraph 1 of this letter (the "Borrower(s)" or each
     "Borrower") for the following facilities (the "Facilities"). The terms set
     out in this letter supersede and replace those set out in any of our
     banking facilities letters previously sent to you.

1.   Borrower(s):
     ------------

     Bonso Electronics Limited

2.   Trade Facilities:
     -----------------

     (a)  Total Facility Amount: HK$25,500,000.00 (Hong Kong Dollars Twenty Five
          Million Five Hundred Thousand Only) maximum but in no circumstances
          that the outstandings of any facility shall exceed the respective
          facility limits set out below.

     (b)  Purpose: For short term trade financing and general working capital
          requirements.

                                        1
<PAGE>

     (c)  Available for:

          Trade facilities                                      facility limit
          ----------------                                      --------------

          Line 1 with aggregate limit of:                       HK$25,000,000.00

          (i) Commercial Letters of Credit ("L/C's"):
          Issuance of sight and/or up to 120 days usance
          commercial L/C's                                      HK$25,000,000.00

          (ii) Document against Payment ("D/P") and
          Documents against Acceptance ("D/A") Financing:
          Advances (with recourse to the Borrower(s))
          against D/A and/or D/P bills at sight and/or with
          tenors of up to 120 days drawn on parties
          acceptable to the Bank up to HK$4,000,000.00 per
          each drawee.

          (iii) Advances against Trust Receipts: Advances
          against Trust Receipts covering merchandise called
          for under:-

          (a) import L/C's with tenor of up to 120 days,
          which shall include the usance pcriod granted by
          supplier under the respective import L/C's            HK$25,000,000.00

          (b) suppliers' invoices with tenor of up to 120
          days from date of advance with individual limit of
          HKD4,000,000.00                                       HK$25,000,000.00

          (c) incoming D/P or D/A with tenor of up days from
          date of advance                                       HK$25,000,000.00

          (iv) Shipping Guarantees: Issuance of Shipping
          Guarantees supported by Trust Receipts covering
          merchandise called for under import L/C's             HK$25,000,000.00

          (v) Indemnities for Negotiation under L/C's:
          Indemnities for negotiation of documents (with or
          without discrepancies) drawn under export L/C's       HK$25,000,000.00

          (vi) Advances Against Export Invoices: Advances
          with tenors of up to 120 days from bill of lading
          date for up to 100% of the net invoice amount of
          export invoices for customers approved by the Bank
          and with individual limit. of HKD4,000,000.00         HK$25,000,000.00

          (vii) Standby Letters of Credit and Bank
          Guarantees: Issuance of Standby Letter of Credit
          or Bank Guarantees to KBC Bank Germany with tenors
          of up to 365 days to secure a trade facility to
          Korona Haushaltswaren GmbH & Co.; such payment
          undertakings must be in a form and supported by
          agreements or counter-indemnities acceptable to
          the Bank                                              HK$25,000,000.00

                                        2
<PAGE>

          Line 2 with aggregate limit of:                       HK$500,000.00

          (viii) Overdrafts: Overdraft on HK$ current
          account(s) with the. Bank.                            HK$500,000.00

          Special Conditions/Remarks:
          ---------------------------

               (a) Total limit for facilities (i), (ii),
               (iii), (iv) (v) (vi) and (vii) together under
               Line 1 shall not exceed HK$25,000,000.00

               (b) The maximum tenor of any import facility
               shall not exceed 120 days which shall include
               the usuance period granted by supplier under
               any import L/C's, suppliers' invoices or
               incoming D/A

               (c) Available limit not utilized under Line 2
               can be shifted to Line 1 at the request of
               the Borrower(s)

3.   Foreign Exchange Facility:
     --------------------------

          (a) Same Day Settlement Limit: For foreign
          exchange spot and forward contracts same day
          settlements                                           EUR1,000,000.00

          (b) Notional Amount: For booking of foreign
          exchange spot and forward contracts acceptable to
          the Bank, with maximum tenor of 6 months. The
          notional limit stated in this letter is for
          reference only and is subject to the Bank's
          acceptance of the relevant applications.              EUR2,500,000.00

4.   Application for Facilities:
     ---------------------------

     (a)  No application made by the Borrower to any of the Facilities will be
          considered by the Bank unless the Bank has received all of the
          documents bated in the Schedule hereto each in form and substance
          satisfactory to the Bank.

     (b)  Each application made by the Borrower to use any of the Facilities in
          whole or in part shall be a request by the Borrower to the. Bank to
          extend financing on the terms and conditions set out or referred to in
          this letter. No commitment by the Bank to extend financing shall arise
          under this letter until any application by the Borrower is accepted by
          the Bank either expressly or by its extending Such facilities to the
          Borrower.

     (c)  Such applications shall be made, where applicable, on the Bank's
          standard forms and supported by such documentation that the Bank may
          require.

                                       3
<PAGE>

     (d)  No application by the Borrower to use any of the Facilities will be
          accepted by the Bank unless unless the Borrower complies with the
          terms and conditions set out or referred to in this letter and such
          other conditions as the Bank may impose from time to time.

     (c)  Acceptance by the Bank in respect of any application made by the
          Borrower is subject to the Bank's overriding right of repayment on
          demand, amending, canceling and/or restructuring any of the
          Facilities. and/or pricing at the Bank's sole, discretion.

5.   Currency:
     ---------

     Borrowings in any currency are subject to availability of finds in that
     currency at the time the borrowings are requested.

6.   Repayment:
     ----------

     (a)  Repayment must he made in full on maturity of each advance or on
          demand whichever occurs first.

     (b)  If there are more than one Borrower named in paragraph 1 of this
          letter, each Borrower shall be jointly and severally liable with the
          other Borrower(s) for the repayment obligation under any of the
          Facilities. Each Borrower further agrees that the Bank is not required
          to make any references to the other Borrower(s) in relation to the
          utilitsation of the Facility by the any Borrower.

7.   Pricing:
     --------

     (a)  L/C issuane fee and commission in lieu of exchange:

          US$50,000 or below       :                1/4%
          Over US$50,000           :                1/32%

     (b)  Interest rates for import and export bills:

          For all HK$ / US$ drawings:
          ---------------------------
          1.5% p.a. over HIBOR / LIBOR

     (c)  Interest rates for Overdraft

          HK$ Prime p.a.

     (d)  Standby Letters of Credit and/or Bank Guarantees issuance fee:

          1% p.a.

     For any drawing unpaid at its maturity date the Bank may, at its sole
     discretion, charge a default interest at maximum of Prime + 6% p.a.

     ("Prime" means the best lending rate determined by the Bank from time to
     time.)

                                       4
<PAGE>

8.   Security:
     ---------

     An unconditional continuing corporate guarantee executed by Bonso
     Electronics International Inc. (the "Corporate Guarantor") for the
     facilities amount plus accrued interest and recovery expenses.

9.   Arrangement Fee:
     ----------------

     HKD10,000.00 payable up-front which is non-refundable in any event.

10.  Undertakings:
     -------------

     (a)  Submission of the following statemements:

          (i)  No later than 180 days after the end of each fiscal. year, the
               audited financial statements of the Borrrower(s) and the
               Corporate Guarantor(s), if any.

          (ii) No later than 90 days after the end of each half-year, a
               certified copy of the unaudited financial statements of the
               Borrower(s) and the Corporate Guarantor(s), if any.

          (iii) Any other documents as requested by the Bank from time to time.

11.  Others:
     -------

     The Facilities shall be subject to:

     (a)  the terms and conditions of the General Customer Agreement and General
          Agreement for Trade Financing executed and delivered by the
          Borrower(s) to the Bank, and

     (b)  the terms and conditions set out in all other standard agreements or
          documentation executed and delivered by the Borrower(s) to the Bank
          and other banking facilities and services provided by or continued by
          the Bank to the Borrower(s).

12.  Costs and Expenses:
     -------------------

     The Borrower(s) shall, upon demand by the Bank, indemnify the Bank against
     (a) all costs and expenses (including legal fees on a full indemnity basis)
     incurred by the Bank in connection with the negotiation, preparation,
     execution and enforcement of or the preservation of any of its rights
     under, this letter and any other documents referred to herein; and (b) all
     costs, losses or liabilities incurred by the Bank as a result of providing
     any part of the Facilities to the Borrower(s).

                                       5
<PAGE>

13.  Assignment:
     -----------

     (a)  The Borrower(s) may not assign any of its rights or transfer any of
          its rights and/or obligations under this letter.

     (b)  The Bank may assign any of its rights or transfer any of its rights
          and/or obligation's under this letter.

14.  Governing Law:
     --------------

     This letter is governed by and construed in accordance with the laws of the
     Hong Kong Special Administrative Region.

Please confirm your agreement to the terms and conditions of this letter by
signing and returning to us the enclosed duplicate copy of this letter at your
earliest convenience.

Yours Faithfully,

For and on behalf of
KBC Bank N. V.

/s/_____________________________
Authorised Signatories

We confirm our agreement to the terms and conditions set out above.

For and on behalf of

/s/_______________________________
Bonso Electronics Ltd.
(Borrower)

For and on behalf of

/s/_______________________________
Bonso Electronics International, Inc.
(Corporate Guarantor)

                                        6
<PAGE>

BONSO ELECTRONICS LIMITED                                   KBC
-------------------------
                                    Schedule

                           List of Required Documents
                           --------------------------

1.   Copies of the following up-to-date documents for the Borrower(s) and the
     Corporate Guarantor(s), if any, certified by its authorized officer:

          o    Certificate of incorporation

          o    Business registration certificate (if available)

          o    Memorandum and articles of association ( or Bye-laws)

          o    Latest annual return filed at the Companies Registry of Hong Kong

          o    Certificate of Good Standing and Certificate of Incumbency for
               Borrower(s)/Corporate Guarantor(s) incorporated outside Hong Kong

2.   Certified extracts of the board resolutions of the Borrower(s) and the
     Corporate Guarantor(s), if any, approving execution, delivery and
     performance of, and the terms of, the agreement and other documents
     required by the Bank evidencing the Facilities and the guarantee(s) (the
     "Facility Documents"), and authorizing named person or persons to sign
     those and any ancillary document.

3.   The duly executed Facility Documents including but limited to the
     following:

          a)   General Customer Agreement by the Borrower(s);
          b)   Letter of Pledge and Master Trust Receipts by the Borrower(s)
               (optional);
          c)   Continuing Guarantee by the Corporate Guarantor(s)
          d)   Foreign Exchange Transactions agreement by the Borrower(s);
          e)   Legal opinion for the Corporate Guarantor(s) by a B.V.I.
               solicitor; acceptable to the Bank;

4.   Duly executed Mandate for Limited Company Accounts, together with signature
     cards by the Borrower(s)

5.   Duly executed Authorization and Indemnity for Facsimile Instructions by the
     Borrower(s) (optional).

6.   Certified true copies of indemnity documents of all authorized signatories
     and two directors for each of the Borrower(s) and the Corporate
     Guarantor(s), if any.

                                        7Filed by Automated Filing Services Inc. (604) 609-0244 - Clyvia Inc. - Exhibit 10.6

LICENCE AGREEMENT

between

ECO Impact GmbH 
Teerstegenstr. 21, D-42653 Solingen

hereinafter referred to as “the licensor”

and

Clyvia Technology GmbH 
Friedrich-List-Allee 10, D-41844
Wegberg

hereinafter referred to as “the licensee,”

PREAMBLE

The licensor is the applicant and authorized license user of
  the inventions filed under file number 19837277, 19837276 and 19708384 as a
  patent application at the German Patent Office, for the thermal treatment, thermolysis
  and pyrolysis of bituminous materials, to distil and crack waste oil. A licence
  will not be levied for the prototype.

§ 1 DEFINITION

(1)      CONTRACTUALLY SECURED RIGHTS

The contractually secured rights consist of the German patent
application file numbers 19837277, 19837276 and 19708384, any expanded claim
thereof, the corresponding patent applications in other countries, the
registered secured rights bestowed thereupon, as well as all of the available
know-how.

(2)      CONTRACTUAL TERRITORY

The contractual territory is worldwide, without any
restrictions.

§ 2 OBLIGATIONS OF THE LICENSOR

(1)      GRANTING OF A LICENSE

The licensor grants the licensee an exclusive license to market
the know-how and the patent rights by issuing sub-licenses, as well as to
manufacture, offer and distribute the process according to this contract. In
each individual case, marketing the know-how and the patent rights requires a
written agreement to be signed with the licensor. When exclusive rights are
sub-contracted to third parties, the contractual partners must ensure that the
laws of contract do not overlap. 

The sub-license authorizes the licensee to grant the right to a
third party to manufacture, offer and distribute the process according to this
contract. Granting additional sub-licenses to market the know-how and patent
rights is excluded. Thereto, this contract is signed. 

(2)      MAINTAINING THE SECURED
RIGHTS

The licensor is obligated to maintain and pursue the
contractually secured rights.

(3)      RELINQUISHING THE SECURED
RIGHT

If the licensor wishes to relinquish a registration of a
contractually secured property right or a contractually secured right, the
licensee must receive written notice thereof. Within one month upon receipt of
notification, the licensee has the right to declare his wish to take over the
registration of a contractually secured property right, respectively, the
contractually secured right. Once the licensee has acquired the right(s), he has
the sole right to use the registration of a contractually secured property
right, respectively, the contractually secured right, without any obligation to
pay royalties. The licensor will make available any documents and declarations
necessary for the acquisition. The licensee shall assume any costs, which may be
incurred to transfer the registration of a contractually secured property right,
respectively, the contractually secured right.

If the licensee does not make use of the acquisition offer
within the aforementioned time period of one month, the licensor can dispose
freely of the contractually secured rights, respectively, the registration of a
contractually secured property right, once that month has expired.

(4)      LIABILITY FOR DEFECTS
INVOLVING SECURED RIGHTS

The licensor affirms that he is not aware of any publication,
which could impede the scope of the contractually secured rights, respectively,
the registration of a contractually secured property right. However, the
licensor will not assume any liability for the validity of anything applied for
by, or dependent on, third party rights.

(5)      OBLIGATION TO OBSERVE
SECRECY

The licensor is obligated to keep secret any and all facts made
known to him about the licensee in association with this contract

§ 3 OBLIGATIONS ON THE PART OF THE LICENSEE

(1)      PAYMENTS BY THE LICENSEE

The licensee must pay the licensor a percentage of sales
generated from the distribution of systems and equipment, manufactured under the
licence agreement:

	 	Compensation for Know-How   respectively
    	Patent-royalty per unit 
	  	  	  
	- up to 500 T€          
    	5% 	5% 
	- up to 1000 T€        	4% 	4% 
	- > 1,000 T€             	3% 	3% 

The licensee is obligated to keep separate bookkeeping records
for shipments, which are subject to royalty payments, including specific
information such as delivery date, quantity, buyer and price.

(2)      ACCOUNTING AND PAYMENT OF
ROYALTIES

The licensee shall draw up a list of all shipments that are
subject to royalty payments, on a quarterly basis – in each case, during the
month following the end of the quarter. The royalties resulting from this list
must be submitted along with the statement of account.

(3)      AUDITING

The licensor is authorized to have the aforementioned
bookkeeping records and the documents pertaining thereto, audited annually by an
auditor, who is obligated to secrecy. The licensor will assume the auditing
costs. However, if the audit results in royalties, which are at least 5% higher
than indicated in the statements presented, the licensee shall pay the auditing
fee.

(4)      OBLIGATION TO SECRECY

The licensee is obligated to keep secret any and all facts made
known to him about the licensor, in association with this contract.

(5)      OBLIGATION OF NON-AVOIDANCE

The licensee is obligated not to avoid or contest the
contractually secured rights, respectively, the registration of a contractually
secured property right, nor to support such avoidance or contestation by a third
parties.

§ 4 RELATIONSHIPS WITH THIRD PARTIES

(1)      LITIGATION

The licensor will combat any avoidance or contestation of the
  contractually secured rights, respectively, the registration of a contractually
  secured property right and pursue any infringements of the contractually secured
  rights by third parties. However, there is no obligation to pursue infringements.
  The licensee is only authorized to enforce claims arising from the contractually
  secured rights against third parties, to the extent of the following stipulations.

(2)      ACQUISITION RIGHTS

If the licensor refuses to pursue third party infringement of
the contractually secured rights in writing, all of the claims of both parties
arising from the infringement against the third party, shall be passed on to the
licensee, authorizing, but not obligating the licensee to enforce a claim
legally. The licensor shall provide any documents and declarations necessary for
enforcement. Any costs arising in this context shall be borne by the
licensee.

§ 5 TRANSFERABILITY OF RIGHTS

(1)      TRANSFER OF LICENCE;
SUB-LICENCES

Transferring the license and granting sub-licenses must be
approved in writing by the licensor. Approval may only be refused for good
cause.

§ 6 DURATION OF CONTRACT

	(1) 	This contract shall become effective on the day that
        the last signature required has been affixed to the contract. It shall
        end when written notification of termination has been submitted, at the
        latest however, when the contractually secured rights have lapsed. 

	 	 
	(2) 	Supplements to this contract do not exist. Changes
        and amendments to the contract must be made in writing. Should one of
        the stipulations of this contract become invalid, the remaining stipulations
        shall continue to be valid correspondingly. The ineffective stipulation
        shall be replaced by a stipulation, which comes closest to it in meaning
        and intention. 

(3)      PROPER TERMINATION ON THE
PART OF THE LICENSEE

The licensor and the licensee have the right to terminate the
contract with a 12-month notice to the end of the year, the earliest, however,
for 31/12/2009.

(4)      TERMINATION WITHOUT
NOTICE

Apart from the customary grounds for termination for good
cause, “good cause” also applies, if

	 	(a) 	the licensee files a petition with the court to institute
        settlement proceedings, or if bankruptcy proceedings are instituted; 

	 	(b) 	payment of royalties is delayed by more than two
        months by the licensee, despite the fact that a written reminder has been
        sent via registered mail and that one of the obligations arising from
        this contract, specifically, is to issue a statement and pay the royalties.
      

Notice of termination must be made in writing and sent by
registered mail.

§ 7 APPLICATION OF THE LAW

German law shall apply exclusively.

	The Licensor: 	 	  
	[Handwritten: Solingen 17/12/04]	 	
	  	 	[Signature] 
	Location, Date 	 	Eco Impact GmbH 
	  	 	  
	The Licensee: 	 	  
	  	 	  
	[Handwritten: Wegberg, 13/12/04] 	 	
	  	 	[Signature] 
	Location, Date 	 	Clyvia Technology GmbH

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