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EXHBIT 10.5

                               DEED OF GUARANTEE

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                   IMPORTANT NOTICE TO THE GUARANTOR
                   ---------------------------------

This Guarantee will create legal obligations and liabilities on your part. You
are strongly advised to seek independent legal advice before you execute this
Guarantee.

Without prejudice to any provision of this Guarantee, please take note of the
following:-

(1)      You may become liable (and if you consist of two or more persons, you
         may become liable jointly and severally), instead of or as well as the
         Principal, for all debts and liabilities (whether actual or contingent,
         and whether past, present or future) incurred by and owing from the
         Principal to us at any time and from time to time.

(2)      Your maximum liability under this Guarantee is the amount set out in
         the Second Schedule hereto plus the sums referred to in Proviso (ii) of
         Section B of this Guarantee. Where no amount is specified in the Second
         Schedule, the amount ultimately enforceable against you will be
         unlimited.

(3)      Subject to paragraph (2) above, you will be required to pay, on demand
         by us, all sums of money debts and liabilities of the Principal. By way
         of examples and without limitation, you may be called upon to pay under
         this Guarantee if the Principal has failed to pay us any indebtedness
         when due or on demand or if you and/or the Principal are unable or
         admit inability to pay debts generally as they become due or in the
         event of any proceedings in or analogous to bankruptcy, insolvency,
         winding up or liquidation against you or the Principal.

(4)      This Guarantee is a continuing guarantee. Nevertheless, you may
         extinguish your liability under this Guarantee if (i) pursuant to
         Clause 5 of Section C of this Guarantee, you give us 3 months' prior
         written notice of determination; and (ii) your liabilities hereunder in
         respect of all or any debts and obligations (actual or contingent)
         incurred by the Principal to us prior to the effective date of
         determination of this Guarantee have been satisfied in full.

(5)      We shall be entitled to retain this Guarantee for at least 25 months
         after you have extinguished your liabilities under this Guarantee.

                                               Bank of China (Hong Kong) Limited
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TO: BANK OF CHINA (HONG KONG) LIMITED

A.       DEFINITION
         Unless the context otherwise requires, all capitalized terms used
         herein shall have their respective meanings as defined in Clause 28 of
         Section C of this Guarantee.

B.       GUARANTEE
         In consideration of Bank of China (Hong Kong) Limited (hereinafter
         called the "Bank", including its successors and assigns) agreeing at
         the request of the principal debtor (hereinafter called "the
         Principal", whose particulars are set out in Part A of the First
         Schedule hereto) and/or the undersigned (whose particulars are set out
         in part B of the First Schedule hereto) from time to time or at any
         time (i) to grant or continue to grant general banking facilities of
         whatever nature and in whatever currency to the Principal either singly
         or jointly with other parties on such terms, manner and form and for so
         long as the Bank may in its absolute discretion think fit; and/or (ii)
         to withhold proceedings against or not to make immediate demand for
         repayment from the Principal for so long and on such terms and
         conditions as the Bank may in its absolute discretion think fit, I, the
         undersigned, HEREBY AGREE (and in case where there are MORE than one
         undersigned, we, the undersigned, HEREBY JOINTLY AND SEVERALLY AGREE)
         to PAY and SATISFY to the Bank ON DEMAND in writing all sums of money
         debts and liabilities whether certain or contingent whether now or at
         any time hereafter owing or incurred due but unpaid to the Bank from or
         by the Principal (or any one or more of them) in any manner howsoever
         or on any account whether as principal or surety and whether alone or
         jointly with any other person, firm or corporation or from or by any
         firm in which the Principal (or any one or more of them) may be a
         partner and in whatever name, style or form including but not limited
         to the following:

                                      -1-

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         (a)      any and all sum or sums due owing and/or payable to the Bank
                  by the Principal (or any one or more of them) under any
                  banking facilities, dealings, transactions, undertakings,
                  contracts and/or obligations, liabilities, engagements of
                  whatever nature and/or under any bills, drafts, notes,
                  guarantees and/or indemnities;
         (b)      interest accrued or to be accrued;
         (c)      commissions, fees and other charges payable by the Principal
                  to the Bank;
         (d)      any legal or other costs, expenses, disbursements and/or
                  payment of whatsoever nature incurred by the Bank in relation
                  to the Principal or this Guarantee or any other guarantee,
                  indemnity or security for any money obligations or liabilities
                  hereby guaranteed on a full indemnity basis.

         PROVIDED ALWAYS that:
                  (i)      where no amount is specified in the Second Schedule
                           hereto as a Specified Amount, the amount ultimately
                           enforceable against me/us under this Guarantee shall
                           for all intents and purposes be unlimited; but
                  (ii)     where there is a Specified Amount set out in the
                           Second Schedule hereto, the total liability
                           ultimately enforceable against me/us under this
                           Guarantee shall not exceed in the aggregate an amount
                           being the total of the Specified Amount together with
                           a sum equal to all interest accrued or to be accrued
                           on the Specified Amount calculated at the Agreed
                           Interest Rate(s), (as well after as before judgment)
                           to the date of actual payment and all those amounts
                           referred to in paragraphs (c) and (d) above, PROVIDED
                           ALWAYS that where the total debts and liabilities
                           owing by the Principal to the Bank exceeds the limit
                           ultimately enforceable against me/us under this
                           Guarantee, the Bank shall be entitled at its absolute
                           discretion to determine which part or parts of such
                           debts and liabilities shall be guaranteed and/or
                           demanded hereunder AND PROVIDED FURTHER that in such
                           event, should such debts and liabilities (or any part
                           or parts thereof) determined by the Bank to be
                           guaranteed and/or demanded under this Guarantee be
                           paid by the Principal or any third party or parties
                           other than me/us, my/our liabilities hereunder shall
                           not thereby be deemed, diminished or discharged and
                           the Bank shall be entitled to re-determine such other
                           part or parts of the debts and liabilities then owing
                           by the Principal to be guaranteed hereunder and
                           demanded accordingly.

         I/We hereby expressly acknowledge and agree that references in this
         Guarantee to the Bank shall include any or all of the Bank's branches
         and offices whether located or operating in Hong Kong or elsewhere and
         this Guarantee shall cover all debts, obligations and liabilities
         (actual or contingent) of the Principal to the Bank anywhere in the
         world whether to any one or more of the Bank's branches and/or offices
         in Hong Kong or elsewhere. The Bank or any of its branches and offices
         in Hong Kong or elsewhere shall be entitled to enforce this Guarantee
         against me/us in Hong Kong or elsewhere notwithstanding that any debts,
         obligations and liabilities (actual or contingent) of the Principal are
         owing or incurred to the Bank acting through any of its other branches
         or offices in any other jurisdiction.

C.       FURTHER COVENANTS
         I, the undersigned, HEREBY FURTHER AGREE AND UNDERTAKE (and in case
         where there are more than one undersigned, we, the undersigned, HEREBY
         JOINTLY AND SEVERALLY AGREE AND UNDERTAKE) as follows:-

         1.       CURRENCY INDEMNITY:

                  (a)      All. moneys received or held by the Bank under this
                           Guarantee may from time to time after demand has been
                           made be converted into such other currency as the
                           Bank considers necessary or desirable to cover my/our
                           obligations and liabilities in that currency at the
                           then prevailing spot rate of exchange of the Bank (as
                           conclusively determined by the Bank) for purchasing
                           the currency to be acquired with the existing
                           currency.

                  (b)      If and to the extent I/we fail to pay the amount due
                           on demand the Bank may in its absolute discretion
                           without notice to me/us purchase at any time
                           thereafter so much of a currency as the Bank
                           considers necessary or desirable to cover my/our
                           obligations and liabilities in such currency hereby

                                      -2-

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                           secured at the then prevailing spot rate of exchange
                           of the Bank (as conclusively determined by the Bank)
                           for purchasing such currency with Hong Kong Dollars
                           and I/we hereby agree to indemnify the Bank against
                           the full Hong Kong Dollar price (including all costs,
                           charges and expenses) paid by the Bank.

                  (c)      No payment to the Bank (whether under any judgment or
                           court order or otherwise) shall discharge my/our
                           obligation or liability in respect of which it was
                           made unless and until the Bank shall have received
                           payment in full in the currency in which such
                           obligation or liability was incurred and to the
                           extent the amount of any such payment shall on actual
                           conversion into such currency fall short of such
                           obligation or liability expressed in that currency,
                           the Bank shall have a further separate cause of
                           action against me/us and shall be entitled to enforce
                           the security hereby created to recover the amount of
                           the shortfall.

         2.       PAYMENT NOT SUBJECT TO DEDUCTION: All payments under this
                  Guarantee shall be made free of any restriction and
                  counterclaim and without any set-off, deductions or
                  withholdings whatsoever. If any payment to be made under this
                  Guarantee is subject to any tax or other withholding, I/we
                  undertake to pay to the Bank such additional amount as may be
                  necessary to ensure that the net amount received (whether as
                  principal or interest) is equal to the amount which the Bank
                  would otherwise have received.

         3.       INTEREST ON SUMS DEMANDED HEREUNDER: In addition and without
                  prejudice to Proviso (ii) of Section B above, all sums
                  demanded for payment but unpaid under this Guarantee shall
                  bear interest from the date of the Bank's demand hereunder to
                  the date of actual payment (as well after as before judgment)
                  at the rate of 6% per annum above the cost of fund of the Bank
                  (as conclusively determined by the Bank, subject to
                  fluctuation) provided that the Bank may vary the basis of
                  calculation of such rate upon 30 days' prior notice to me/us
                  displayed or posted in the Bank's banking halls.

         4.       CONTINUING SECURITY: This Guarantee shall not be considered as
                  satisfied by any intermediate payment or satisfaction of the
                  whole or any part of any sum or sums of money owing by the
                  Principal but shall be a continuing security and shall extend
                  to cover all sum or sums of money which shall for the time
                  being or at any time constitute the balance due from the
                  Principal to the Bank in whatsoever manner.

         5.       HAPPENING OF SPECIFIED EVENTS: This Guarantee shall be binding
                  as continuing security on me/us and shall not be discharged or
                  be in anyway affected by any one or more or all of the
                  Specified Events. Without prejudice to the generality of the
                  foregoing, this Guarantee may be determined upon the
                  expiration of three calendar months from the date of the
                  Bank's actual receipt of a notice in writing to determine this
                  Guarantee given by:-
                  (a)      if there is only one undersigned, the undersigned, or
                           the undersigned's personal or legal representative(s)
                           (as the case may be); or
                  (b)      if there is more than one undersigned, all of us or,
                           as the case may be, the personal or legal
                           representative(s), of each and every one of us to
                           which a Specified Event has happened jointly together
                           with all of us (if any) not affected by any Specified
                           Event.

         6.       LIABILITIES ON DETERMINATION : Determination of this Guarantee
                  as provided in Clause 5 or by whatever reason shall not
                  release me/us and/or my/our estate(s) from this Guarantee in
                  respect of any liability incurred by the Bank for account of
                  the Principal during the currency of this Guarantee (including
                  those incurred during the period of the required three months'
                  notice of determination as stipulated in Clause 5) whether
                  such liability is actual or contingent, accrued or not yet
                  accrued and whether or not such liability matures or becomes
                  due or payable or accrues only after the expiration of the
                  required three months' notice of determination as stipulated
                  in Clause 5. Without prejudice to the generality of the
                  foregoing, I/we hereby expressly admit and declare that where
                  the Bank has incurred any irrevocable obligation to make any
                  advance to, or incur any liability for account of, the
                  Principal prior to the expiration of the required three

                                      -3-

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                  months' notice of determination as stipulated in Clause 5, the
                  Bank shall have the right to continue making the advance to or
                  incurring the liability for account of the Principal after the
                  said expiration of the required three months' notice of
                  determination and such advance or liability shall form part of
                  the liability incurred by the Bank for account of the
                  Principal during the currency of this Guarantee and I/we shall
                  be fully liable therefor notwithstanding the determination of
                  this Guarantee.

         7.       NO DEMAND PRIOR TO DETERMINATION : I/We hereby expressly agree
                  that my/our obligations to guarantee and indemnify the Bank
                  against the liabilities of the Principal shall not in any way
                  be affected by the Bank not making a demand on me/us before
                  the determination of this Guarantee and that the Bank may make
                  a demand on me/us at any time whether before or after the
                  determination of this Guarantee whereupon I/we shall promptly
                  pay the Bank the amount demanded.

         8.       NEW ACCOUNTS WITH PRINCIPAL: In the event of this Guarantee
                  ceasing from any cause whatsoever to be binding as a
                  continuing security on me/us, the Bank shall be at liberty
                  without thereby affecting the Bank's rights hereunder to open
                  a fresh account or accounts and/or to continue any then
                  existing account or accounts with the Principal and no moneys
                  paid from time to time into any such fresh account or accounts
                  so opened by or on behalf of the Principal (or the then
                  existing account or accounts where no such fresh account or
                  accounts are opened, as the case may be) and subsequently
                  drawn out by the Principal shall on settlement of any claim in
                  respect of this Guarantee be deemed appropriated towards or
                  have the effect of payment of any park of the moneys due from
                  the Principal at the time of this Guarantee ceasing to be so
                  binding as a continuing security or of the interest thereon
                  unless the person or persons paying in such moneys shall at
                  the time of payment direct the Bank in writing specifically to
                  appropriate the same to that purpose.

         9.       CONCLUSIVE EVIDENCE:
                  (a)      Any admission or acknowledgement in writing by the
                           Principal or by any person authorized by the
                           Principal of the amount of indebtedness of the
                           Principal to the Bank and any judgment recovered by
                           the Bank against the Principal in respect of such
                           indebtedness shall be binding and conclusive on and
                           against me/us in all courts of law and elsewhere.
                  (b)      A certificate by any of the Bank's duly authorized
                           officers as to the moneys and liabilities for the
                           time being due or owing to the Bank from or by the
                           Principal shall be binding on me/us as conclusive
                           evidence in any legal proceedings against me/us in
                           all courts of law and elsewhere.

         10.      INDULGENCE, DEALING WITH PRINCIPAL: The Bank shall be entitled
                  without notice to and/or consent of me/us and without thereby
                  discharging or affecting my/our liabilities hereunder at any
                  time at the Bank's sole and absolute discretion to deal freely
                  with the Principal or any other party or parties liable in
                  respect of any debts and/or liabilities guaranteed hereunder
                  whether jointly, severally or jointly and severally with the
                  Principal or as surety or as provider of securities, including
                  but without limitation:-
                  (a)      to determine, reduce, limit, restrict, grant,
                           enlarge, increase, vary, continue, renew or regrant
                           any banking facilities to the Principal; and/or
                  (b)      to vary, exchange, renew, discharge, release, give
                           up, abstain from perfecting and/or hold over any
                           securities (including but not limited to any bills,
                           notes, mortgages, charges, liens or other securities)
                           indemnities, guarantees and/or any other undertaking
                           or arrangement of similar nature whether from the
                           Principal or from any third party or parties covering
                           or in respect of any debts and liabilities hereby
                           guaranteed; and/or
                  (c)      to release, discharge, settle or compound with, grant
                           indulgence, give time for payment or other
                           accommodation, to accept compositions from and make
                           any other arrangements with the Principal and/or any
                           third party or parties including but not limited to
                           any person or persons liable on any bills, notes,
                           mortgages, charges, liens or other securities as
                           aforesaid or any person liable jointly, severally or
                           jointly and severally with or as surety of the
                           Principal or any other person or persons.

                                      -4-

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         11.      SECURITY ADDITIONAL:
                  (a)      Save and except expressly provided for in this
                           Guarantee, this Guarantee shall be in addition to and
                           not in substitution of any other guarantee or
                           security in respect of any debt and/or liability of
                           the Principal guaranteed hereunder whether given by
                           me/us or by the Principal or by any other third party
                           or parties.
                  (b)      This Guarantee shall be in addition to and shall not
                           merge with or in any way discharge, prejudice or
                           affect any other guarantees, agreements,
                           undertakings, rights, liens, collateral or other
                           securities now or hereafter held by the Bank from
                           me/us or any one or more of us or any third party or
                           parties for or in respect of all or any part of the
                           debts and liabilities hereby guaranteed nor vice
                           versa should this Guarantee be discharged, prejudiced
                           or affected thereby. Unless specified by the payer,
                           the Bank shall have absolute discretion to apply or
                           appropriate any money received by the Bank for
                           payment of any debts and/or liabilities owing to the
                           Bank by the Principal without any notice or consent
                           of me/us.

         12.      ENFORCING OTHER MEANS OF PAYMENT: The Bank is to be at
                  liberty, but not bound, to resort for the Bank's own benefit
                  to any other means of obtaining payment or securing
                  performance by the Principal or any other co-sureties at any
                  time and in any manner or order the Bank thinks fit without
                  affecting this Guarantee and/or without in consequence
                  diminishing my/our liability hereunder. The Bank may exercise
                  and enforce the Bank's rights hereunder before resorting to
                  other means of obtaining payment or securing performance or
                  after such means have been resorted to in respect of any
                  balance due or outstanding liabilities or obligations and in
                  the latter case without entitling me/us to any benefit from
                  such other means so long as any sum, liability or obligation
                  remains due owing or payable or outstanding (whether actual or
                  contingent) from or by the Principal to the Bank.

         13.      INVALIDITY OF OTHER SECURITY ETC.: The liabilities of me/us
                  shall not be affected by any failure by the Bank to take any
                  security or by any invalidity of any security taken or by any
                  existing or future agreement by the Bank as to the application
                  of any banking facilities made or to be made to the Principal.

         14.      GUARANTEE OF WHOLE DEBT: Although my/our ultimate liability
                  hereunder cannot exceed the limit hereinbefore provided in
                  Proviso (ii) of Section B, if any, this Guarantee shall be
                  construed and take effect as a guarantee of the whole and
                  every part of all debts and liabilities now or at any time
                  hereafter owing to the Bank by the Principal.

         15.      PAYMENT INTO SUSPENSE ACCOUNT: Any money paid to the Bank
                  under this Guarantee may be placed and kept by the Bank in a
                  separate or suspense account for so long and in such name as
                  the Bank may in the Bank's absolute discretion think fit
                  without applying the same or any part thereof in or towards
                  discharge of any debts or liabilities due or incurred by the
                  Principal to the Bank so as to enable the Bank to preserve
                  intact the Principal's liability to the Bank and to sue or
                  prove in arrangement, composition, liquidation, bankruptcy,
                  winding up or such similar proceedings against the Principal
                  the entirety of the debt or liabilities owing without taking
                  into account any sum so paid under this Guarantee.

         16.      NO COMPETITION WITH THE BANK'S RIGHT: Until the Bank has been
                  paid and received in full (which expression shall not embrace
                  payment of a dividend in liquidation, bankruptcy, winding up
                  or similar proceedings of less than 100 percent) all debts and
                  liabilities owing by the Principal, I/we shall not whether
                  directly or indirectly:
                  (a)      prove against the Principal's estate in any
                           liquidation, bankruptcy, winding up or similar
                           proceedings for or in relation to any sum or sums
                           paid under this Guarantee or otherwise howsoever in
                           competition with the Bank;
                  (b)      claim, exercise and/or enforce any rights of
                           subrogation, contribution, indemnity, assignment,
                           set-off and/or counter-claim (whether statutory, in
                           law or in equity or howsoever) in relation to any sum
                           or sums paid under this Guarantee and any sum or sums

                                      -5-

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                           so received by me/us and in breach hereof shall be
                           held by me/us on trust for the Bank and be paid over
                           to the Bank on demand for discharge of any debts and
                           liabilities due by the Principal to the Bank in
                           addition to and independent of my/our liabilities
                           hereunder and shall not be subject to the limitation,
                           if any, provided in Proviso (ii) of Section B above;
                  (c)      do any act or thing which might on the insolvency,
                           bankruptcy, liquidation or similar proceedings of the
                           Principal result in the increase of proofs or reduce
                           the assets distributable amongst the creditors of the
                           Principal to the Bank's prejudice;
                  (d)      take now or at any time hereafter for or in respect
                           of any of my/our liability under this Guarantee from
                           the Principal either directly or indirectly without
                           the Bank's consent in writing any security or
                           counter-security, promissory note, bill of exchange,
                           mortgage, charge whether merely personal or involving
                           a charge on any property whatsoever of the Principal.
                           I/We hereby declare that I/we have not taken any such
                           security or counter-security and all security or
                           counter-security as aforesaid which I/we have now or
                           at any time hereinbefore taken or may at any time
                           hereafter take (whether with the Bank's consent or in
                           breach of the above provision) and all moneys at any
                           time received in respect thereof shall be held in
                           trust for the Bank and as security to the Bank for
                           the fulfillment of my/our obligations hereunder and
                           all of them shall be deposited by me/us with the Bank
                           and I/we shall do all such act or take all such
                           action and/or sign or execute all such deeds or
                           documents at the Bank's request but at my/our costs
                           and expenses for such purposes and for perfecting the
                           Bank's rights and claims thereto; and/or
                  (e)      by paying off any sum recoverable hereunder or by any
                           other means or on any other ground, claim to have the
                           benefit of any security which the Bank may now or
                           hereafter hold for any moneys or liabilities due or
                           incurred by the Principal to the Bank or to have any
                           share therein.

         17.      WARRANTIES AND REPRESENTATIONS: I/We hereby warrant,
                  represent and undertake to the Bank (such warranties
                  representations and undertakings to continue so long as this
                  Guarantee remains subsisting) that:
                  (a)      This Guarantee has been validly created and
                           constitutes a valid and legally binding obligation on
                           me/us enforceable in accordance with its terms; and
                  (b)      The creation of this Guarantee and the performance
                           and observance of the obligations hereunder does not
                           and will not contravene any existing applicable law,
                           statute, rule or regulation or any judgment, decree
                           or permit (where applicable, including but not
                           limited to all the rules governing the listing of
                           securities as prescribed by The Stock Exchange of
                           Hong Kong Limited from time to time) to which I/we
                           are subject.

         18.      SET-OFF AND LIEN: In addition to any general lien or similar
                  right to which the Bank as bankers maybe entitled bylaw, the
                  Bank may at any time, without prior notice to me/us:
                  (a)      set off and appropriate and apply any credit balance
                           on any account (whether subject to notice or not and
                           whether matured or not) in any currency of which I/we
                           or any one or more of us am/is/are at any time
                           beneficially entitled (whether in my/our own name or
                           jointly with other persons and whether current,
                           savings, time, call or deposit accounts) at any of
                           the Bank's office or branch wherever situate against
                           or on account of all or any liabilities of me/us to
                           the Bank hereunder and for such purpose, the Bank may
                           convert all or any part of such credit balance or
                           liability to such other currencies at the applicable
                           rate of exchange quoted and determined by the Bank as
                           may be necessary to effect such application or
                           set-off; and
                  (b)      if any sum is due but unpaid hereunder, to retain all
                           or any securities, valuables or any other property
                           whatever and wherever situate which may be deposited
                           with or otherwise held by the Bank for or in the name
                           of me/us or any one or more of us whether for safe
                           custody or otherwise and to sell the same or any part
                           thereof at such price as the Bank shall determine

                                      -6-

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                           whether by public auction, private treaty or tender
                           and the Bank may engage such agent or broker therefor
                           and apply the proceeds thereof to set off any or all
                           sums owing hereunder after first deducting all costs
                           and expenses.

         19.      JOINT SIGNATORIES, LIABILITIES JOINT AND SEVERAL: Should the
                  undersigned be more than one party or should this Guarantee be
                  intended to be given by more than one party:-
                  (a)      each and every one of the parties shall be jointly
                           and severally liable hereunder and "we", me/us" and
                           all provisions of this Guarantee shall be so
                           construed accordingly.
                  (b)      should this Guarantee prove not to be binding on or
                           become invalid against any one or more but not all of
                           us for any reason whatsoever, the liability of such
                           other(s) of us shall remain intact valid and binding
                           as if such of us who is/are not bound by this
                           Guarantee has/have never been party or intended to be
                           party hereto.
                  (c)      this Guarantee shall be binding and effective for all
                           intents and purposes against each and every one of us
                           who has actually signed with immediate effect and the
                           failure of any intended guarantor(s) to sign or
                           execute shall not affect the validity hereof against
                           those signed as if those who have not signed or
                           executed have never been intended to be party hereto.
                  (d)      the Bank shall be entitled without any notice or
                           consent of me/us to release or discharge any one or
                           more but not all of us from his or their obligations
                           and/or liabilities under this Guarantee or any part
                           thereof or to accept or enter into any settlement or
                           compromise or composition or make any other
                           arrangements with or grant any time, indulgence,
                           waiver or accommodation to any one or more but not
                           all of us without discharging, releasing or affecting
                           the liabilities and obligations of the other or
                           others of us.

         20.      Notice: A notice or demand by the Bank under this Guarantee
                  may be served by post, cable, telex or facsimile transmission
                  and shall be deemed to have been duly served if by post on the
                  day following the day of posting (its subsequent return or
                  non-delivery notwithstanding) and if by cable, telex,
                  facsimile transmission or personal delivery on the day of such
                  cable, telex, facsimile transmission or delivery if addressed
                  to me/us or the legal or personal representative(s) of me/us
                  at my/our respective addresses on the Bank's record or last
                  known to the Bank.

         21.      FIRM, CORPORATION, ASSOCIATION, UNINCORPORATED BODY ETC.: If
                  it shall so happen that the Principal shall be either a firm
                  or a limited company or other corporation or a committee or
                  association or other unincorporated body, any of the
                  provisions herein contained which shall be primarily and
                  literally applicable to the case of a single and individual
                  principal only shall be construed and take effect so as to
                  give the Bank hereunder a guarantee for the money owing from
                  such firm and every member thereof or from such limited
                  company or corporation or committee or association or other
                  unincorporated body as identical or analogous as may be with
                  or to that which would have been given for the moneys owing
                  from a single individual if the Principal were a single
                  individual and any moneys or liabilities shall be deemed to be
                  owing, remaining due and unpaid by the Principal as provided
                  in Section B above. And further in case where the Principal is
                  a firm, this Guarantee shall be deemed to be a continuing
                  guarantee of all moneys owing, as provided in Section B above;
                  from the persons or person now or at any time hereafter from
                  time to time and for the time being carrying on business in
                  the name of or in succession to the firm or from any one or
                  more of such persons and any change in the constitution of the
                  firm whether by death, retirement or admission of partners or
                  otherwise howsoever shall not affect, invalidate or discharge
                  my/our liability under this Guarantee. And in the case of a
                  limited company or other corporation any reference to
                  bankruptcy shall be deemed to be a reference to liquidation,
                  winding up or other analogous proceedings and the moneys owing
                  as aforesaid and hereby guaranteed shall be deemed to include
                  any moneys, owing in respect of debentures or debenture stock
                  of such limited company or other corporation held by the Bank
                  or on the Bank's behalf.

                                      -7-

<PAGE>

         22.      CONDITIONS TO DISCHARGE:
                  (a)      Any release, discharge or settlement between the Bank
                           and me/us (including the return of this Guarantee)
                           shall be conditional upon no security, disposition or
                           payment to the Bank by the Principal, me/us or any
                           other party being avoided or reduced pursuant to any
                           provisions or enactments relating to insolvency,
                           bankruptcy, liquidation, winding-up or such similar
                           proceedings, and if such condition shall not be
                           fulfilled, the Bank shall be entitled at any time to
                           enforce this Guarantee subsequently as if such
                           release, discharge or settlement had not occurred.
                  (b)      For the purposes of Clause 22(a) above, the Bank
                           shall be entitled to retain this Guarantee for a
                           period of twenty-five months after the full payment,
                           discharge or satisfaction of all debts and
                           liabilities owing by the Principal to the Bank and in
                           the event of the commencement of bankruptcy or
                           winding-up of any party making such payment,
                           discharge or satisfaction, for such further period as
                           the Bank may determine and to enforce this Guarantee
                           subsequently as if such release, discharge or
                           settlement had not occurred.

         23.      LIABILITIES PRIMARY, INVALIDITY OF PRINCIPAL'S DEBTS ETC.:
                  Independent of the above stipulations, I/we further agree to
                  be liable as an independent principal debtor to the Bank for
                  the payment of all sums guaranteed or ought to be guaranteed
                  hereby so that:-
                  (a)      this Guarantee may be enforced against me/us (or any
                           one or more of us) without the Bank first enforcing
                           any rights or claims or instituting legal proceedings
                           against the Principal and/or any third party or
                           parties and/or to join in the Principal as a party in
                           the same proceedings against me/us and/or the Bank
                           first realizing or enforcing any of the securities or
                           other guarantees held by the Bank whether from me/us
                           or any other party or parties.
                  (b)      in addition and without prejudice to Clause 22 above,
                           should any debts and/or liabilities, which if valid
                           or enforceable would be guaranteed by and be the
                           subject-matter of this Guarantee, be or become wholly
                           or in part invalid, unenforceable against or
                           irrecoverable from the Principal whether in law or
                           otherwise as a result or arising out of any legal
                           limitation, disability or incapacity on or of the
                           Principal and/or any other reasons or circumstances
                           including but not limited to want of or inadequacy of
                           the borrowing power of the Principal, the irregular
                           or improper exercise of the borrowing power, the
                           exercise of the borrowing power concerned or the
                           borrowing concerned by the Principal is ultra vires
                           (in the case where the Principal is a limited
                           company), the want of authority by any agent or
                           person purporting to act on behalf of the Principal,
                           I/we shall nevertheless be still liable to the Bank
                           for such debts and/or liabilities as if the same were
                           wholly valid and enforceable and I/we was/were the
                           sole and principal debtor(s) in respect thereof
                           irrespective whether or not as between the Bank and
                           the Principal, the Principal will have a valid
                           defence thereto and the Bank shall not be concerned
                           to see or enquire into the powers of the Principal or
                           its officers, employees or agents purporting to act
                           on its behalf.
                  (c)      I/we hereby waive all and any of my/our rights as
                           surety which may at any time be inconsistent with any
                           of the provisions of this Guarantee.

         24.      WAIVER, RIGHTS CUMULATIVE: No failure to exercise or enforce
                  and no delay in exercising or enforcing on the Bank's part of
                  any right, remedy, power or privilege hereunder shall operate
                  as a waiver thereof, nor shall any single or partial exercise
                  or enforcement of any right, remedy, power or privilege
                  hereunder operate as a waiver thereof, nor shall any single or
                  partial exercise or enforcement of any right, remedy, power or
                  privilege preclude any other further exercise or enforcement
                  thereof, or the exercise or enforcement of any other right,
                  remedy, power or privilege. The rights, remedies, powers and
                  privileges herein provided are cumulative to and not exclusive
                  of any right, remedy, power and privilege provided by law or
                  other documents held by the Bank.

                                      -8-

<PAGE>

         25.      NOTICE OF SUBSEQUENT INCUMBRANCE: If the Bank receives notice
                  of any subsequent mortgage, charge, assignment or any other
                  disposition affecting the security, if any, afforded by me/us
                  or any third party or interest thereon, the Bank may open a
                  new account for me/us; if the Bank does not open a new account
                  for me/us then unless the Bank gives notice to the contrary to
                  me/us, it shall nevertheless be treated as if the Bank had
                  done so at the time when the Bank receives such notice and as
                  from that time all payments made by or on behalf of me/us to
                  the Bank shall be credited or treated as having been credited
                  to the new account and shall not operate to reduce the amount
                  due from me/us to the Bank at the time when the Bank receives
                  notice.

         26.      INFORMATION OF GUARANTOR(S):
                  (a)      I/We undertake at all times to notify the Bank in
                           writing of any change of my/our particulars including
                           but without limitation my/our address, telephone
                           number and facsimile number.
                  (b)      I/We acknowledge that I/we have noted the content of
                           a notice relating to the Personal Data (Privacy)
                           Ordinance issued by the Bank and addressed to the
                           Bank's customers (the "Notice") and agree that it is
                           necessary to supply the Bank with data under Part B
                           of the First Schedule hereto or as required by the
                           Bank in order that the Bank will accept this
                           Guarantee. I/We further authorize the Bank to use
                           my/our data for the purposes set out in the Notice
                           and note that data held by the Bank will be kept
                           confidential but permit the Bank to provide such
                           information to the persons listed in the Notice or
                           any other persons (including debt collecting agents)
                           for the purposes set out in the Notice or in
                           compliance with any laws, regulations or directions
                           binding on the Bank or its branches or sub-branches.
                           I/We further authorize the Bank to contact any of
                           my/our employers (if applicable), banks, referees or
                           any other sources for the purpose of obtaining or
                           exchanging any information and to compare the
                           information provided by me/us with other information
                           collected by the Bank for checking purposes. The Bank
                           is entitled to use the result of such comparison to
                           take any action which may be adverse to the interest
                           of or against me or any of us. I/We consent to my/our
                           data being transferred to another jurisdiction
                           outside Hong Kong.
                  (c)      For the purpose of Clause 26(b) above, I/we shall be
                           deemed to be "Customers" as referred to in the
                           Notice.

         27.      DEBT COLLECTION: The Bank shall be entitled to employ debt
                  collecting agents to collect any sum due but unpaid by me/us
                  hereunder. I/We hereby agree, and acknowledge that I/we have
                  been warned, that I/we shall indemnify and keep the Bank
                  indemnified on a full indemnity basis against all costs and
                  expenses which the Bank may incur in employing debt collecting
                  agents.

         28.      DEFINITIONS:

                  In this Guarantee:-
                  (a)      "Agreed Interest Rate" means the rate or rates and
                           the basis and method (including whether or not to be
                           compounded) agreed between the Bank and the Principal
                           at and by which interest on the debt or liability in
                           relation to which a sum or sums so demanded under
                           this Guarantee is to be calculated.

                  (b)      "banking facilities" means all types of secured and
                           unsecured banking facilities, loans, advances, credit
                           facilities and financial, credit or other arrangement
                           including but not limited to all types of foreign
                           exchange transactions and swap arrangements,
                           overdraft facilities, trust receipt facilities and
                           all types of arrangement or facilities relating to
                           documentary or other credits, in particular, their
                           issuance, negotiation, and/or acceptance; issuance or
                           acceptance of guarantees, indemnities and bonds;
                           discounting, negotiation or purchase of bills of
                           exchange or promissory notes; leasing; hire-purchase
                           arrangement and all other types of arrangement
                           whereby credit is extended, accommodation is afforded
                           and/or liability or commitment (whether actual or
                           contingent) is incurred by the Bank for or on account
                           of the Principal.

                                      -9-

<PAGE>

                  (c)      "I/We" and "me/us" means the party or parties who
                           executed this Guarantee, and where there are more
                           than one party, "me/us" means and refers to all the
                           parties executing this Guarantee or any one or more
                           of them and includes also such party's or parties'
                           respective estate(s), successor(s), assign(s) and
                           personal and/or legal representative(s) and "my/our"
                           shall be so construed accordingly.

                  (d)      "The Principal" means the party or parties whose
                           particulars are set out in Part A of the First
                           Schedule hereto and where the Principal consists of
                           more than one PARTY, "the Principal" means and refers
                           to all such parties or any one or more of them.

                  (e)      "Specified Amount" means the amount specified in the
                           Second Schedule hereto.

                  (f)      "Specified Events" means the death, bankruptcy,
                           liquidation, insolvency, dissolution, incorporation
                           or other changes whatsoever in the constitution or
                           composition of, or mental illness or other disability
                           whatsoever of, the Principal (or any one or more of
                           them) and/or me/us (or any one or more of us) and
                           "Specified Event" means any one of the foregoing
                           events.

                  (g)      "the Bank" includes the Bank's successors and assigns
                           and any or all of the Bank's offices and/or branches
                           whether in Hong Kong or elsewhere and for the
                           avoidance of doubt, this Guarantee shall cover all
                           debts and liabilities owing or incurred by or from
                           the Principal to the Bank anywhere in the world
                           whether to any one or more of the Bank's offices
                           and/or branches in Hong Kong or elsewhere.

                  (h)      The various matters set out as consideration in
                           Section B of this Guarantee are in the disjunctive
                           and alternative and the provision for considerations
                           herein shall be deemed to have been absolutely and
                           fully complied with and fulfilled if any one of the
                           matters set out therein have been done.

                  (i)      Unless the contrary intention appears, words
                           importing the masculine gender shall include females
                           and corporations and words in the singular shall
                           include the plural and words in the plural shall
                           include the singular.

         29.      CLAUSES SEVERABLE: If at any time any provision hereof is or
                  becomes illegal, invalid or unenforceable in any respect under
                  the laws of any jurisdiction, neither the legality, validity
                  or enforceability of the other remaining provisions hereof nor
                  the legality, validity or enforceability such provision under
                  the laws of any other jurisdiction shall in any way be
                  affected or impaired thereby.

         30.      LAW AND JURISDICTION: This Guarantee shall be governed and
                  construed in all respects in accordance with the laws of Hong
                  Kong SAR. I/We hereby irrevocably submit to the non-exclusive
                  jurisdiction of the Hong Kong SAR Courts but the Bank shall be
                  entitled to enforce this Guarantee in courts of other
                  competent jurisdiction as the Bank may select.

         31.      HEADINGS: In this Guarantee, headings to sections or clauses
                  are inserted for convenience only and have no legal effect and
                  reference to sections, clauses and schedules are to sections,
                  clauses and schedules of this Guarantee unless otherwise
                  stated.

         32.      LANGUAGE : The Chinese version of this Guarantee is for
                  reference only and if there is any conflict between the
                  English and Chinese versions, the English version shall
                  prevail.

                                      -10-

<PAGE>

                                    THE FIRST SCHEDULE ABOVE REFERRED TO
                                                   PART A

Name and particulars of the Principal
-------------------------------------
<TABLE>
<S> <C>
Name                              Address                                 Identification document and number
----                              -------                                 ----------------------------------

COMTECH INTERNATIONAL             ROOM 514, 5/F, MANHATTAN CTR.,          B.R.C.NO.31083439
(HONG KONG) LIMITED               8 KWAI CHEONG ROAD, KWAI CHUNG,
                                  NEW TERRITORIES.

                                                   PART B

Name and particulars of the undersigned
---------------------------------------
Name                              Address                                 Identification document and number
----                              -------                                 ----------------------------------
COMTECH GROUP, INC.

                                    THE SECOND SCHEDULE ABOVE REFERRED TO

The Specified Amount
--------------------

</TABLE>

IN WITNESS WHEREOF this Deed of Guarantee is executed by the party(ies) whose
name(s) appear(s) in Part B of the First schedule hereto this day of 200__

SEALED with the COMMON SEAL OF the Company(ies) named in Part B of the first
Schedule hereto and SIGNED by:

COMPANY
NAME   COMTECH GROUP, INC.                  COMMON SEAL:
       --------------------------------

DIRECTOR/
AUTHORIZED PERSON                           SIGNATURE /s/ signature
                  --------------------                -------------------------

DIRECTOR/
AUTHORIZED PERSON                           SIGNATURE /s/ signature
                  --------------------                -------------------------

Witnessed by:

NAME:                                       SIGNATURE /s/ signature
      --------------------------------                -------------------------

                                      -11-<PAGE>

EXHIBIT 10.6

           GENERAL TERMS AND CONDITIONS FOR GENERAL BANKING FACILITIES

Important Notice: These General Terms and Conditions for General Banking
                  Facilities set out the terms and conditions upon which our
                  bank would provide/continue/renew general banking facilities
                  to borrowers. Borrowers are advised to read and understand
                  these terms and conditions carefully before accepting the
                  general banking facilities.

These General Terms and Conditions for General Banking Facilities shall apply to
all general banking facilities (the "FACILITIES") which BANK OF CHINA (HONG
KONG) LIMITED (the "BANK") may now or at any time hereafter grant to you.

1.       DEFINITIONS

         In these General Terms and Conditions and the Facility Letter, unless
         the context otherwise requires, the following expressions shall have
         the following meanings:
         B/B L/C           means Letters of Credit Issuance and Inward Bills
                           Facility on a "back to back" basis against master
                           letters of credit which is available on a "direct
                           shipment" basis only
         D/A/D/P           means Export-Bills Purchase Facility against export
                           collection bills on D/P and/or D/A basis with a tenor
                           and up to a percentage of the relevant bills as
                           stated in the relevant Facility Letter
         DDC O/D           means Overdraft Facility made available to the
                           Borrower under account(s) denominated in Hong Kong
                           dollars against uncleared due-date cheques which
                           shall be expressed as a percentage of the relevant
                           cheque as stated in the relevant Facility Letter
         EF                means Export Factoring Facility
         Forward F/X       means Forward Foreign Exchange Facility
         IIF               means Import Invoice Financing with a tenor and up to
                           a percentage of the relevant invoice as stated in the
                           relevant Facility Letter
         I/L               means import Loans Facility with a tenor as stated in
                           the relevant Facility Letter
         L/C               means Letters of Credit Issuance and Inward Bills
                           Facility
         L/I               means Export-Bills Negotiation Facility against
                           drafts/documents (not conforming to terms of export
                           letter of credit)
         L/G               means Letters of Guarantee Issuance Facility
         HKD O/D           means Overdraft Facility made available to the
                           Borrower under account(s) denominated in Hong Kong
                           dollars
         PDC O/D           means Overdraft Facility made available to the
                           Borrower under account(s) denominated in Hong Kong
                           dollars against post-dated cheques with a tenor and
                           up to a percentage of the relevant cheque as stated
                           in the relevant Facility Letter
         P/L               means Packing Loans Facility which shall be expressed
                           as a percentage of the relevant invoice as stated in
                           the relevant Facility Letter
         MML               means Money Market Line Facility
         S/G               means Shipping Guarantees Issuance Facility
         Standby L/C       means Standby Letters of Credit Issuance Facility
         T/R               means Trust Receipt Facility with a tenor as stated
                           in the relevant Facility Letter
         EID               means Export Invoice Discounting Facility against
                           invoice(s) issued by the Borrower for goods sold or
                           supplied by the Borrower
         Administrative    means the amount of charges referred to
         Charges           in Clause 6.6
         Base Rate         means the HKD Prime, USD Prime, HIBOR, LIBOR or such
                           other rates as determined by the Bank from time to
                           time (as the case maybe)
         Borrower          means any party to whom the Facilities are granted by
                           the Bank
         Default           means 6% per annum or such other rate as
         Margin            notified to the Borrower pursuant to Clause 25.3
                           below or any other rate as designated by the Bank in
                           respect of any particular Facilities
         Facility          means the facility letter(s) containing the terms and
         Letter            conditions of the Facilities issued by the Bank to
                           the Borrower, as may be amended, revised or
                           supplemented from time to time
         HIBOR             means in respect of a particular interest period and
                           in relation to any drawing under the Facilities in
                           Hong Kong dollars, the rate per annum determined by

                                       1

<PAGE>

                           the Bank to be the rate at which deposits comparable
                           to the amount of such drawing and for such period are
                           offered by the Bank to other financial institutions
                           in the Hong Kong inter-bank market at or about the
                           time of drawdown on a Hong Kong banking day
         HKD Prime         means the prime rate for Hong Kong dollars as may be
                           quoted by the Bank from time to time and subject to
                           fluctuation
         Hong Kong         means the Hong Kong Special Administrative Region
         LIBOR             means in respect of a particular interest period and
                           in relation to any drawing under the Facilities in a
                           currency other than Hong Kong dollars, the rate per
                           annum determined by the Bank to be the rate at which
                           deposits in the relevant currency comparable to the
                           amount of such drawing and for such period are
                           offered by the Bank to other financial institutions
                           in the London inter-bank market at or about the time
                           of drawdown on a London banking day
         USD Prime         means the prime rate for United States dollars as may
                           be quoted by the Bank from time to time and subject
                           to fluctuation
         USD O/D           means Overdraft Facility made available to the
                           Borrower under account(s) denominated in United
                           States dollars

2.       AVAILABILITY

         2.1      Subject to the Borrower's acceptance of and full compliance
                  with the terms and conditions set out in the relevant Facility
                  Letter and completion of all appropriate documentation
                  mentioned in the relevant Facility Letter to the Bank's
                  satisfaction and payment of all required fees and charges, the
                  Facilities set forth in the relevant Facility Letter will be
                  made available to the Borrower for use until such time as the
                  Bank shall notify the Borrower in writing to the contrary.

         2.2      The Facilities shall be deemed automatically drawn down by the
                  Borrower and/or advanced by the Bank when payment or liability
                  is made or incurred by the Bank under the relevant Facilities.

         2.3      The Bank reserves the absolute right to (i) reject the
                  Borrower's application for utilization of the Facilities and
                  (ii) re-allocate at any time the Facilities at its sole and
                  absolute discretion.

         2.4      Where a Facility (the "FIRST FACILITY") is said to be
                  interchangeable with another Facility (the "SECOND FACILITY")
                  as stated in the Facility Letter, and free unutilized balance
                  is available under the First Facility, the whole amount of
                  such free unutilized balance can be made available to the
                  Borrower for utilization under the Second Facility, subject to
                  any limit stated in the Facility Letter. The reverse shall
                  apply if the interchangeability of the Facilities is stated to
                  be operative vice versa in the relevant Facility Letter. For
                  the avoidance of doubt, any balance of any Facility which is
                  withheld by the Bank shall not be treated as free unutilized
                  balance of such Facility.

         2.5      In case of T/R Facilities being granted, it means that T/R and
                  S/G Facilities are granted such that the T/R Facilities are
                  interchangeable with the S/G Facilities.

         2.6      Unless otherwise stated in the relevant Facility Letter,
                  whenever T/R Facilities are granted together with L/C
                  Facilities, such T/R Facilities are granted by the Bank within
                  the L/C Facilities so that the utilization of the T/R
                  Facilities is subject to the availability of free unutilized
                  balance under the L/C Facilities and upon utilization, will
                  reduce the free unutilized balance of the L/C Facilities by a
                  corresponding amount.

3.       INTEREST

         3.1      All amounts advanced/drawn under the Facilities shall be
                  charged with interest (as well before as after judgment and
                  subject to fluctuation), commission and/or other charges at
                  such rates as specified in the relevant Facility Letter or at
                  such standard rates specified in any schedule of charges
                  published by the Bank from time to time, or such other rates
                  as the Bank may from time to time determine in its absolute
                  discretion. The schedule of charges shall be made available to
                  the Borrower at any time upon request.

                                       2
<PAGE>

         3.2      Unless otherwise specified, interest on the Facilities will
                  accrue from day to day and be calculated on the basis of
                  actual number of days elapsed and a 365-day year for Hong Kong
                  Dollar and Pound Sterling or a 360-day year for other
                  currencies or according to the market practice.

         3.3      All accrued interest shall be payable on demand, and if no
                  demand is made, shall be paid at such interval as the Bank may
                  designate and in arrears on any appointed date according to
                  the Bank's customary practice and if not so paid, the Bank
                  shall have the right to capitalize such unpaid interest as
                  principal advance so that it shall bear interest at the same
                  rate.

         3.4      Subject to the Bank's approval, if any Facility is drawn in a
                  currency other than that specified in the Facility Letter, the
                  interest rate applicable to such Facility shall be such rate
                  as determined by the Bank from time to time.

         3.5      In respect of HKD O/D, DDC O/D and PDC O/D, the Bank shall be
                  entitled to charge the highest of (i) the original interest
                  rate applicable to such facilities; or (ii) the overnight
                  HIBOR; or (iii) the Bank's cost of funds as may be quoted by
                  the Bank from time to time.

         3.6      In respect of USD O/D, the Bank shall be entitled to charge
                  the highest of (i) the original interest rate applicable to
                  such facilities; or (ii) the overnight LIBOR plus 4% per
                  annum; or (iii) the Bank's cost of funds as may be quoted by
                  the Bank from time to time.

         3.7      In respect of other facilities, if interest on any Facilities
                  is charged by reference to a Base Rate plus an interest margin
                  or at a fixed rate, and if the Bank's cost of funds, as
                  determined solely by the Bank, for maintaining such Facilities
                  exceeds the Base Rate or the fixed rate, the Bank shall be
                  entitled, without limiting the right of the Bank under Clause
                  3.1 to charge interest, commission or charges at such rates as
                  it may determine from time to time, to charge interest at the
                  Bank's cost of funds or the overnight HIBOR (whichever is the
                  higher) plus an interest margin.

4.       PAYMENT

         4.1      All payments or repayments made by the Borrower to the Bank
                  are to be made in the currency of the payment or liabilities
                  made or incurred by the Bank under the, Facility Letter or
                  otherwise in the converted currency if the Bank exercises its
                  rights under Clause 4.3, in immediately available funds
                  without set-off or counter-claim and free and clear of and
                  without withholding or deduction of any or all present or
                  future taxes, duties or other charges.

         4.2      No payment to the Bank (whether under any judgment, court
                  order or otherwise) shall discharge the obligation or
                  liability of the Borrower in respect of which it was made
                  unless and until the Bank shall have received payment in full
                  in the currency in which such obligation or liability was
                  incurred or otherwise in the converted currency if the Bank
                  exercises its rights under Clause 4.3, and to the extent the
                  amount of any such payment shall on actual conversion into
                  such currency fall short of such obligation or liability
                  expressed in that currency, the Bank shall have a further
                  separate cause of action against the Borrower.

         4.3      The Bank hereby expressly reserves the right, at any time at
                  its absolute discretion without giving any reason therefor, by
                  giving 3 days' prior notice in writing to the Borrower to:

                  (a)      convert all or any outstanding indebtedness,
                           liabilities and/or obligations due, owing or incurred
                           by the Borrower under any Facility denominated in the
                           currency specified in the Facility Letter for the
                           relevant Facility into Hong Kong dollars; or

                  (b)      convert all or any outstanding indebtedness,
                           liabilities and/or obligations due, owing or incurred
                           by the Borrower under any Facility denominated in a
                           currency other than that specified in the Facility
                           Letter for the relevant Facility into the currency so
                           specified for the relevant Facility or into Hong Kong
                           dollars, as the Bank may deem fit in its absolute
                           discretion.

                                       3
<PAGE>

                  The aforesaid conversion shall be at the then prevailing rate
                  of exchange as the Bank may determine conclusively. For the
                  avoidance of doubt, after such conversion, the Bank shall be
                  entitled to re-determine the applicable interest rate for the
                  converted indebtedness, liabilities and/or obligations on the
                  basis that the same are denominated in Hong Kong dollars or
                  (as the case may be) in the currency specified in the Facility
                  Letter for the relevant Facility.

         4.4      Any payment made to the Bank not in its correct currency may
                  at the Bank's absolute discretion be converted into the
                  correct currency to cover the obligations and liabilities of
                  the Borrower in that currency at the then prevailing spot rate
                  of exchange as conclusively determined by the Bank for
                  purchasing the correct currency with the existing currency.

5.       REPAYMENT

         5.1      Notwithstanding any contrary provision herein contained, the
                  Bank reserves the overriding right to demand immediate
                  repayment of the all outstanding indebtedness, liabilities
                  and/or obligations (including interest and default interest
                  thereon) due, owing or incurred by the Borrower (actual or
                  contingent) to the Bank under or in respect of the Facilities.

         5.2      If the Borrower shall experience any difficulty in repaying or
                  servicing the Facilities, the Borrower shall inform the Bank
                  as soon as possible.

6.       DEFAULT INTEREST/CHANGES

         6.1      Time shall be of the essence of any payment or repayment to be
                  made by the Borrower.

         6.2      The Bank reserves the right to charge default interest (as
                  well after as before judgment) on any sum which is not paid
                  when due:

                  (a)      in respect of HKD O/D, DDC O/D and PDC O/D, at the
                           rate of 10% per annum plus the HKD Prime, or the
                           overnight HIBOR, or the Bank's cost of funds,
                           whichever is the highest, provided that the foregoing
                           default rate and method of calculation shall apply
                           irrespective of whether the due but unpaid overdrafts
                           fall within the overdraft limit previously allowed by
                           the Bank or otherwise;

                  (b)      in respect of USD 0/D, at the rate of 10% per annum
                           plus the USD Prime, or the overnight LIBOR plus 4%
                           per annum, or the Bank's cost of funds, whichever is
                           the highest, provided that the foregoing default rate
                           and method of calculation shall apply irrespective of
                           whether the due but unpaid overdrafts fall within the
                           overdraft limit previously allowed by the Bank or
                           otherwise;

                  (c)      as for Facilities other than HKD O/D, PDC O/D and USD
                           O/D, at the rate equal to the Default Margin plus (i)
                           the prime rate or (ii) the overnight inter-bank rate
                           (both for the relevant currency and as may from time
                           to time be quoted by the Bank) or (iii) the Bank's
                           cost of funds, whichever is the highest; or such
                           other rates as the Bank may determine from time to
                           time at its absolute discretion.

         6.3      In respect of HKD O/D, DDC O/D and PDC O/D, the Bank shall
                  have the right to charge default interest at (i) such default
                  rate and in such method of calculation as set out Sub-clause
                  6.2(a) on any sum which is overdrawn in excess of the
                  applicable pre-agreed overdraft limit, whether such excess is
                  allowed by the Bank in the exercise of its discretion or upon
                  the request of the Borrower or otherwise; or (ii) the original
                  interest rate applicable to the HKD O/D, DDC O/D and/or PDC
                  O/D (as the case may be), whichever is the higher.

         6.4      In respect of USD O/D, the Bank shall have the right to charge
                  default interest at (i) such default rate and in such method
                  of calculation as set out Sub-clause 6.2(b) on any sum which
                  is overdrawn in excess of the applicable pre-agreed overdraft
                  limit, whether such excess is allowed by the Bank in the
                  exercise of its discretion or upon the request of the Borrower
                  or otherwise; or (ii) the original interest rate applicable to
                  the USD O/D, whichever is the higher.

                                       4
<PAGE>

         6.5      Default interest shall accrue on a day to day basis and
                  calculated from the date when payment is due up to the date of
                  final payment in full.

         6.6      Apart from default interest, the Bank reserves the right to
                  charge the Borrower Administrative Charges of HKD500.00 or
                  such other amount as determined by the Bank from time to time,
                  each time when the Borrower fails to make a payment on its due
                  date. In addition, if the Bank shall determine in its absolute
                  discretion that it is necessary to instruct lawyers to issue
                  letter of demand to the Borrower or to take any other recovery
                  action against the Borrower after the Borrower has failed to
                  make any payment on its due date, the Bank shall have the
                  right to recover the full amount of the legal costs so
                  incurred by the Bank and the Borrower shall be obliged to pay
                  such costs to the Bank upon demand.

         6.7      For the avoidance of doubt, in case the original interest rate
                  chargeable on the overdue sum shall exceed the default rate
                  stipulated in Clause 6.2 above, the Bank shall have the right
                  to continue to apply such original interest rate
                  notwithstanding the sum is overdue.

         6.8      The Bank reserves the right to compound default interest at
                  such intervals as it deems ft.

7.       FORWARD F/X

         7.1      All Forward F/X dealings shall be subject to the terms and
                  conditions stipulated by the Bank from time to time and the
                  market practices prevailing for the time being and must be
                  settled before 3:00 p.m. Hong Kong time on the relevant value
                  date or delivery date for any particular transaction or such
                  other time as may be required by the Bank.

8.       FACILITIES GRANTED TO TWO OR MORE BORROWERS SEVERALLY

         8.1      If, under any Facility Letter, the Facilities are granted to
                  two or more Borrowers severally, such Facilities or any part
                  or parts thereof may, subject to the Bank's prior approval, be
                  utilized by any one of the relevant Borrowers within such
                  sub-limits (the "SUB-LIMITS") (if they are expressly
                  stipulated in the relevant Facility Letter or otherwise
                  imposed by the Bank) and upon such terms as the Bank may
                  determine from time to time. For the purpose of this Clause 8,
                  the Facilities that are granted to two or more Borrowers
                  severally are hereinafter called the "GLOBAL FACILITIES" and
                  the facility limit in respect of each of the Global Facilities
                  is called the "GLOBAL LIMIT".

         8.2      For the avoidance of doubt, unless Sub-Limits are stipulated
                  in the Facility Letter or otherwise imposed by the Bank, the
                  Bank may allow any one or more of the Borrowers to utilize the
                  Global Facilities up to the full extent of their respective
                  Global Limits, provided that unless the Bank in its absolute
                  discretion agrees, the aggregate utilization of the Global
                  Facilities at any time by all of the relevant Borrowers in
                  respect of each type of the Global Facilities shall not exceed
                  the relevant Global Limits of such Global Facilities.

         8.3      Where there are Sub-Limits stipulated in the Facility Letter
                  or otherwise imposed by the Bank, all the Borrowers acting
                  together by themselves or through an authorized
                  representative(s) may apply to the Bank to vary the Sub-Limits
                  allocated to each of the Borrowers by giving the Bank not less
                  than three (3) banking days' prior notice. The Bank reserves
                  the absolute discretion to determine whether to accept or
                  reject any such application.

         8.4      Upon approval by the Bank of any application to vary the
                  Sub-Limits, each of the relevant Borrowers shall be bound by
                  the variation and any condition imposed by the Bank in respect
                  of such variation.

         8.5      Notwithstanding anything herein contained, the Bank reserves
                  the absolute right to re-allocate the Global Facilities and/or
                  the Global Limits and/or the Sub-Limits (if any) at any time
                  and at the Bank's sole and absolute discretion.

         8.6      For the avoidance of doubt, all provisions contained in these
                  General Terms and Conditions applicable to the Facilities
                  shall equally apply to the Global Facilities and insofar as
                  the relevant Borrower's utilization of and liabilities under
                  or relating to the Global Facilities are concerned, each of
                  the Borrowers to whom the Global Facilities is granted shall
                  be bound by the provisions contained in these General Terms
                  and Conditions.

                                       5
<PAGE>

9.       FACILITIES TO BE USED BY THIRD PARTY

         9.1      Subject to the Bank's prior approval, the Bank may, at the
                  request of the Borrower, allow the Facilities granted to the
                  Borrower to be utilized by third parties (the "CO-USER(S)")
                  upon the following conditions and other additional conditions
                  as the Bank may from time to time impose:-

                  (a)      any utilization of the Facilities by the Co-user(s)
                           shall be booked under the account(s) of the Borrower
                           and the Borrower shall be fully liable for the same
                           to the Bank as if it were the party actually
                           utilizing the Facilities;

                  (b)      in addition and without prejudice to sub-clause (a)
                           above, the Co-user(s) shall, in addition to the
                           Borrower, be fully liable to the Bank in respect of
                           their utilization of the Facilities as if the
                           Facilities were granted in their favour and utilized
                           by them under their own account(s). In this regard,
                           the Co-user(s) shall be bound by these General Terms
                           and Conditions and any other terms and conditions
                           under which the Bank has agreed to grant the
                           Facilities to the Borrower, as if the Co-user(s)
                           is/are the Borrower named therein; and

                  (c)      in case the Borrower has given any guarantee in
                           favour of the Bank for the obligations and
                           liabilities of the Co-user(s) under general banking
                           facilities granted or to be granted by the Bank in
                           favour of the Co-user(s), such guarantee shall for
                           all intent and purposes cover the obligations and
                           liabilities of the Co-user(s) under sub-clause (b)
                           above. For the avoidance of doubt, this provision
                           shall not be affected in case the liability of the
                           Borrower under sub-clause (a) above is or become
                           unenforceable or avoided for whatever reason.

10.      CONCLUSIVE STATEMENT OF ACCOUNT

         10.1     Any statement of account relating to the Facilities signed as
                  correct by any one of the Bank's officers shall be conclusive
                  evidence of the indebtedness of the Borrower to the Bank and
                  be binding on the Borrower, save for manifest errors.

         10.2     Any certificate relating to the Bank's cost of funds or any
                  Base Rate in respect of any Facilities signed as correct by
                  any one of the Bank's officers shall be conclusive and binding
                  on the Borrower.

         10.3     Any opinion, determination or decision by the Bank as to any
                  materiality, effect or otherwise relating to anything herein
                  mentioned or referred to shall be conclusive and binding on
                  the Borrower.

11.      EXPIRY OF THE FACILITIES

         11.1     Notwithstanding anything contained in the Facility Letter
                  (including any review date stated therein):

                  (a)      the Bank reserves the overriding right to review the
                           Facilities on a regular basis (if applicable, prior
                           to the review date stated in the Facility Letter) and
                           the Facilities shall expire forthwith (if applicable,
                           even if prior to the said review date) as and when
                           the Bank has given to the Borrower notice of
                           termination; and

                  (b)      the Bank reserves the overriding right at its sole
                           and absolute discretion to increase, reduce and/or
                           cancel the Facilities or any part or parts thereof or
                           to vary or amend the terms and conditions thereof at
                           any time to be effective forthwith (if applicable,
                           even if prior to the said review date) by notice to
                           the Borrower.

         11.2     A renewal fee shall be payable by the Borrower when the
                  Facilities or any part or parts thereof are renewed, extended
                  or otherwise revised by the Bank.

12.      MORTGAGED PROPERTY(IES)

         12.1     The following provisions shall apply if property(ies) is/are
                  mortgaged to the Bank as security for the Facilities:-

                                       6
<PAGE>

                  (a)      the title of the property(ies) to be mortgaged to the
                           Bank shall be approved by solicitors appointed by the
                           Bank.

                  (b)      the mortgaged property(ies) has/have to be insured
                           against fire risks. The relevant insurance policy
                           denoting the Bank's interest as mortgagee together
                           with the premium receipt shall be lodged with the
                           Bank forthwith after the Borrower has accepted the
                           relevant Facility Letter under which the Facilities
                           are granted (but in any event prior to the drawdown
                           of the Facilities), and in the case of renewal of any
                           insurance policy, 15 days before the expiry of the
                           current insurance policy, provided always that if the
                           Borrower shall fail to perform its obligation as
                           aforesaid, the Bank shall be entitled (but not be
                           obliged) to take out or renew at the Borrower's costs
                           and expenses the said insurance policy for the
                           Borrower with such insurance company, for such
                           insured amount and on such terms as the Bank shall
                           determine.

                  (c)      where the property(ies) mortgaged is/are residential
                           property(ies), such property(ies) shall, as indicated
                           and subject to the conditions imposed by the Bank, be
                           insured against fire risks with an insurance company
                           acceptable to the Bank for an amount approved by the
                           Bank. If the amount insured is the full replacement
                           value of the property(ies) and the Borrower requires
                           valuation of the property(ies) to be conducted by the
                           Bank's nominated surveyor from time to time, the
                           Borrower shall be liable to reimburse the Bank on
                           demand all valuation charges incurred.

                  (d)      where the property(ies) mortgaged is/are
                           property(ies) other than residential properties, such
                           property(ies) has/have to be insured through the
                           Bank's appointed agent upon such terms and against
                           such risks as the Bank may require from time to time.

                  (e)      where the mortgage of the property(ies) is given to
                           the Bank by way of equitable mortgage, the Borrower
                           shall forthwith on demand by the Bank execute or
                           procure the execution of a legal mortgage or legal
                           charge in favour of the Bank on such terms and in
                           such form as the Bank may require.

                  (f)      the Borrower shall undertake that the property(ies)
                           is/are self-occupied by the registered owner(s)
                           thereof and the property(ies) shall not be let to any
                           other party(ies) unless with the Bank's prior
                           consent. The Bank reserves the right to re-determine
                           the interest rate of the relevant Facilities at its
                           absolute discretion upon giving the consent to let
                           and such re-determination of the interest rate shall
                           take immediate effect unless otherwise agreed by the
                           Bank. All costs and expenses (including the Bank's
                           legal costs on a full indemnity basis) incurred by
                           the Bank in giving the consent shall be borne and
                           paid by the Borrower.

                  (g)      on default in payment of any of the Facilities, the
                           Bank may take possession of and sell the
                           property(ies) pursuant to the terms of the relevant
                           mortgage or charge documents.

13.      PROPERTY VALUATION FEES

         13.1     The Borrower acknowledges that when any landed property is
                  proposed to be mortgaged to the Bank as security for the
                  Facilities, the Bank may, in its absolute discretion, elect to
                  engage a property valuation agent or its internal office or
                  department, or both, to assess the value of the property
                  concerned.

         13.2     If any property valuation agent has been engaged, the Borrower
                  shall be obliged to reimburse the Bank the full amount of the
                  fees charged by the agent and pay the Bank a handling charge
                  in such sum as the Bank may charge its customers generally for
                  arranging such kind of property valuation. If the Bank has
                  engaged its internal office or department to make assessment
                  of the value of the property concerned, the Bank may impose a
                  handling charge on the Borrower in such amount as the Bank may
                  Charge its customers generally for such service. All such fees
                  and charges shall be payable by the Borrower forthwith on
                  demand.

                                       7
<PAGE>

         13.3     For the avoidance of doubt, unless the Bank otherwise agrees,
                  the Borrower shall be liable for the payments mentioned in
                  Clause 13.2, notwithstanding that the property in question may
                  not eventually be accepted by the Bank as security for the
                  Facilities for whatever reason or that the Facilities are not
                  eventually made available to or utilized by the Borrower on
                  whatever ground.

14.      INDEMNITY

         14:1     The Borrower shall indemnify and keep the Bank fully
                  indemnified from and against all action, suits, proceedings,
                  claims, demands, losses, damages, costs, fees, expenses and/or
                  liabilities of whatsoever nature which the Bank may suffer,
                  incur or sustain, whether actual or contingent, by reason of
                  or in maintaining or enforcing the Facilities granted to the
                  Borrower (including the Facilities used by Co-user(s) as
                  mentioned in Clause 9 above).

15.      EXPENSES

         15.1     Whether or not the Facilities are drawn or utilized by the
                  Borrower, all expenses including but not limited to legal
                  fees, communications and other out-of-pocket expenses incurred
                  by the Bank in connection with the Facilities or other
                  documents executed in respect of the Facilities or any
                  enforcement, or attempted enforcement, of the Bank's rights
                  under the Facility Letter or other documents executed in
                  respect of the Facilities, are to be borne by the Borrower on
                  a full indemnity basis.

16.      APPROPRIATION

         16.1     The Bank shall have the sole and absolute right to appropriate
                  either at the time of payment or at any time thereafter any
                  moneys paid to the Bank by or otherwise coming into the Bank's
                  possession or control from the Borrower in or towards
                  discharging whichever part or parts of liabilities of the
                  relevant Borrower to the Bank as the Bank shall think fit. Any
                  such appropriation shall override any purported appropriation
                  by the Borrower.

17.      SET-OFF

         17.1     In addition and without prejudice to any general banker's
                  lien, right of set-off or similar right to which the Bank may
                  be entitled, the Bank shall have the right to the fullest
                  extent permitted by law, from time to time and at any time
                  without notice to the Borrower (any such notice being
                  expressly waived) to set-off and appropriate and apply any
                  credit balance on any of the account(s) and/or deposit(s) of
                  the Borrower in whatever currency maintained with any of the
                  Bank's branches or sub-branches (whether subject to notice or
                  not and whether matured or not) against or on account of the
                  obligations and liabilities whatsoever of the Borrower
                  (whether actual or contingent) due, owing or incurred to the
                  Bank.

         17.2     For the purposes aforesaid, the Bank may convert all or any
                  part of the said credit balance or deposit of the Borrower to
                  such other currencies at the applicable rate of exchange
                  quoted and determined by the Bank as may be necessary.

18.      AUTHORIZATION TO DEBIT ACCOUNT(S)

         18.1     The Bank shall be entitled to debit at any time and from time
                  to time all or any of the interests, fees, charges,
                  commissions, costs, expenses and other sums due and payable by
                  the Borrower in respect of the Facilities to any of the
                  account(s) of the Borrower without prior notice to the
                  Borrower. Such sums shall be deemed duly drawn or overdrawn
                  from the account(s) by the Borrower.

19.      DEBT COLLECTION

         19.1     The Bank shall be entitled to employ debt collecting agents to
                  collect any sum due but unpaid by the Borrower under the
                  Facilities. The Borrower agrees, and acknowledges that the
                  Borrower has been warned, that the Borrower shall indemnify
                  and keep the Bank indemnified on a full indemnity basis
                  against all costs and expenses which the Bank may incur in the
                  employment of debt collecting agent(s). The Bank shall be

                                       8
<PAGE>

                  entitled to disclose to such debt collecting agents any or all
                  information relating to the Borrower, the Facilities or the
                  Facility Letter.

20.      INFORMATION

         20.1     The Borrower (whether a corporation, an individual or
                  otherwise) acknowledges that the Borrower has noted the
                  content of a notice relating to the Personal Data (Privacy)
                  Ordinance issued by the Bank (the "Notice") and agrees that it
                  is necessary to supply the Bank with data of the Borrower or
                  as required by the Bank in order that the Bank will agree to
                  provide the Facilities. The Borrower further authorizes the
                  Bank to use the data of the Borrower for the purposes set out
                  in the Notice and notes that data held by the Bank will be
                  kept confidential but permits the Bank to provide such data to
                  the persons listed in the Notice or other persons including
                  debt collecting agents for the purposes stated in the Notice
                  or any subsequent chargee, mortgagee or encumbrancer in
                  respect of securities held by the Bank for the Facilities or
                  in compliance with any laws regulations or directions binding
                  on the Bank or its branches/sub-branches. The Borrower further
                  authorizes the Bank to contact any of the employers of the
                  Borrower (if applicable), bank, referee or any other source
                  for the purpose of obtaining or exchanging any information and
                  to compare the information provided by the Borrower with other
                  information collected by the Bank for checking purposes. The
                  Bank is entitled to use the result of such comparison to take
                  any action which may be adverse to the interest of or against
                  the Borrower. The Borrower also consents to their data being
                  transferred to another jurisdiction outside Hong Kong.

         20.2     The Borrower undertakes at all times to notify the Bank in
                  writing of any change of the particulars of the Borrower
                  including without limitation the Borrower's address, telephone
                  number and facsimile number.

         20.3     The Borrower agrees that the Bank may provide the following
                  information to all or any guarantor(s) or provider(s) of
                  security (the "RELEVANT PARTY(IES)") in respect of any
                  Facilities extended by the Bank to the Borrower:-

                  (a)      a copy of the contract evidencing the obligations to
                           be guaranteed or secured by the Relevant Party(ies)
                           or a summary thereof;

                  (b)      a copy of any formal demand for overdue payment
                           served on the Borrower from time to time; and

                  (c)      a copy of the latest statement of accounts provided
                           to the Borrower from time to time on request by the
                           Relevant Party(ies).

21.      ASSIGNMENT

         21.1     The Bank may at anytime assign or transfer to any party all
                  or any of its rights, benefits, obligations and liabilities
                  under the Facilities and the related collateral securities
                  provided that the Borrower, at any time of such assignment or
                  transfer, will not be liable to pay any greater amount than
                  the Borrower would have been liable to pay had no assignment
                  or transfer been made. The Bank may, and is hereby authorized
                  to, disclose to any actual or potential assignee or transferee
                  such information about the Borrower, the Facility Letter or
                  anything in respect of the Facilities as the Bank shall
                  consider appropriate.

22.      EVENTS OF DEFAULT

         22.1     All amounts (actual or contingent) due or owing by the
                  Borrower to the Bank shall, without any demand, become
                  immediately due and payable by the Borrower upon occurrence of
                  any of the following events of default :

                  (a)      the Borrower's failure to pay any principal, interest
                           or other costs and expenses payable to the Bank on
                           the due date;

                  (b)      the Borrower's failure for any reason whatsoever to
                           discharge promptly any obligations in respect of the
                           Facilities or to comply with any undertakings
                           (affirmative or negative) or covenants to the Bank
                           howsoever and whenever arising;

                                       9

<PAGE>

                  (c)      the Borrower's representation, warranty or statement
                           under the Facility Letter and/or these General Terms
                           and Conditions is incorrect or misleading in any
                           respect;

                  (d)      a default occurs under the provisions of any
                           agreement or instrument evidencing or securing the
                           Borrower's other indebtedness or any such
                           indebtedness becomes payable or capable of being
                           declared payable before its stated maturity and is
                           not paid when due; and

                  (e)      petition is presented or proceedings are commenced or
                           an order is made or an effective resolution is passed
                           for the Borrower's bankruptcy or winding up or for
                           the appointment of a liquidator, receiver, official
                           administrator or similar officer in respect of the
                           Borrower or all or any part of its business or
                           assets.

23.      LIABILITY OF THE BANK

         23.1     The Bank shall not be liable for any loss or damage suffered
                  by the Borrower or any other personas a result of:

                  (a)      the withdrawal or suspension of any transaction of
                           the Borrower or for any failure to effect or execute
                           any of the order or instruction from the Borrower
                           whether it is attributable, either directly or
                           indirectly, to any circumstances or events outside
                           the control of the Bank; and/or

                  (b)      any mechanical, electronic or other failure,
                           malfunction, interruption, inaccuracy or inadequacy
                           of the Bank's telecommunication and computer system
                           or other equipment or its installation or operation;
                           any incomplete or erroneous transmission of any
                           instruction or order of the Borrower or any error in
                           the execution of any such instruction or order
                           (except gross negligence or wilful misconduct of the
                           Bank's authorized officers) nor for any delay, loss
                           (including loss of profit or any economic loss),
                           expenses or damages whatsoever incurred or suffered
                           by the Borrower as a result thereof; and/or

                  (c)      any delay, interruption or suspension howsoever
                           caused by any third party, including but not limited
                           to service providers or equipment suppliers, which
                           interferes with, affects or disrupts the performance
                           of the Bank hereunder.

24.      FINANCIAL STATEMENTS

         24.1     In case the Borrower is a limited company, the Bank shall be
                  entitled at any time and from time to time require the
                  Borrower to furnish to the Bank:

                  (a)      within ninety (90) days after the end of every six
                           (6) months of each accounting period, copies of the
                           unaudited financial statements of the Borrower and
                           (if applicable) the Borrower's subsidiary companies
                           duly certified by the Borrower's director(s) and (if
                           applicable) the director(s) of the Borrower's
                           subsidiary companies to be true copies of the
                           original unaudited financial statements; and

                  (b)      within one hundred and eighty (180) days from the
                           close of the financial year of the Borrower or (if
                           applicable) the Borrower's subsidiary companies, the
                           original audited consolidated annual financial
                           statements of the Borrower or (if applicable) the
                           Borrower's subsidiary companies for such year or
                           copies of such audited consolidated annual financial
                           statements duly certified by the Borrower's
                           director(s) and (if applicable) the director(s) of
                           the Borrower's subsidiary companies to be true copies
                           of the original audited consolidated annual financial
                           statements.

         24.2     In case the Borrower is a sole-proprietorship or partnership,
                  the Borrower shall furnish to the Bank at the request of the
                  Bank copies of the Borrower's financial statements duly
                  certified by the sole-proprietor or partner(s) of the Borrower
                  to be true copies of the original.

                                       10

<PAGE>

25.      MISCELLANEOUS

         25.1     Subject to prior notice to the Borrower, the Bank reserves the
                  absolute right to vary the terms of the Facilities at any time
                  and from time to time, including without limitation, the basis
                  of calculation of any interest, charges, commissions, fees or
                  default interest payable under the Facility Letter (including
                  without limitation the Default Margin or the Administrative
                  Charges) and to impose a commitment fee on the daily undrawn
                  balance of the Facilities granted and/or additional handling
                  charges at such rate as determined by the Bank at its sole
                  discretion.

         25.2     No failure or delay by the Bank in exercising any right, power
                  or remedy shall be a waiver thereof. Rights, powers and
                  remedies herein do not exclude those provided by law.

         25.3     Subject to Clause 25.4, any notice, demand or other
                  communication to the Borrower shall be sent to the Borrower's
                  last known address or such other address as may have been
                  notified in writing by the Borrower to the Bank and, if (i)
                  delivered personally, shall be deemed to have been given at
                  the time of such delivery; (ii) despatched by letter postage
                  prepaid, shall be deemed to have been given twenty-four (24)
                  hours after posting; and (iii) transmitted by facsimile or
                  other electronic means, shall be deemed to have been given at
                  the time of despatch provided that the Bank may give oral
                  notice to the Borrower and if more than one, any one of them,
                  whether personally or through the telephone, and any oral
                  notice so given shall be immediately effective and binding
                  upon the Borrower. Any notice or communication to the Bank
                  shall not be effective until actually received by the Bank.

         25.4     The Bank reserves the right to notify the Borrower of any
                  changes in the standard charges for or relating to the
                  Facilities, the Default Margin, the default interest set out
                  in Clause 6.2 above, the Administrative Charges or the basis
                  of calculation of any of them by notice displayed or posted up
                  in the Bank's banking halls.

         25.5     These General Terms and Conditions are in addition and without
                  prejudice to the Bank's rights under all existing or future
                  securities and/or legal documents (if any) held by the Bank.

         25.6     If the Borrower shall consist of more than one person and any
                  Facilities are made available to such Borrowers jointly, the
                  liabilities of the Borrowers to the Bank under those
                  Facilities shall be joint and several and each and every
                  provision of the Facility Letter and the terms herein shall be
                  construed accordingly. If the Borrower is a firm (whether
                  partnership or sole proprietorship), the Facility Letter and
                  the terms herein-sball be binding jointly and severally on all
                  persons now or for the time being or at any time hereafter
                  carrying on business in the name of the said firm or in
                  succession to the said firm notwithstanding any change of
                  members or constitution thereof.

         25.7     In case of conflict between these General Terms and Conditions
                  and any of the terms contained in the documentation mentioned
                  in the relevant Facility Letter, these General Terms and
                  Conditions shall prevail. In case of conflict between any of
                  the terms of the Facility Letter and these General Terms and
                  Conditions, the Facility Letter shall prevail.

         25.8     Unless contrary intention appears, words importing the
                  singular number shall include the plural number and vice versa
                  and words importing the masculine gender shall include the
                  feminine gender and the neuter gender.

26.      LANGUAGE

         26.1     The Chinese version of the Facility Letter and these General
                  Terms and Conditions are for reference only and if there is
                  any conflict between the English version and the Chinese
                  version, the English version shall prevail.

27.      GOVERNING LAW

         27.1     The Facility Letter and these General Terms and Conditions
                  shall be governed by and construed in accordance with the laws
                  of Hong Kong.

                                       11

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