Document:

<PAGE>   1
                                                                    Exhibit 10.2

                                    AMENDMENT
                     SYNDICATED CREDIT FACILITIES AGREEMENT

THIS AGREEMENT is made on 2 May 2001

BETWEEN

(A)  SILICON MANUFACTURING PARTNERS PTE LTD., as borrower ("BORROWER");

(B)  ABN AMRO BANK NV, SINGAPORE BRANCH, CITIBANK, N.A., SINGAPORE BRANCH and
     OVERSEAS UNION BANK LIMITED, as lead arrangers;

(C)  THE LENDERS (as defined in the Original Facilities Agreement);

(D)  CITICORP INVESTMENT BANK (SINGAPORE) LIMITED, as facility agent (the
     "FACILITY AGENT") and CITICORP INVESTMENT BANK (SINGAPORE) LIMITED, as
     security agent (the "SECURITY AGENT"); and

(E)  CSM and LTM (in each case, as defined in the Original Facilities
     Agreement).

WHEREAS

(1)  Pursuant to the syndicated facilities agreement dated 3 September, 1999 and
     the supplemental agreement dated 20 July, 2000 (the "SUPPLEMENTAL
     AGREEMENT") made between the Borrower and the financial institutions listed
     therein as Lenders (collectively, the "ORIGINAL FACILITIES AGREEMENT"), the
     Lenders have agreed to make available to the Borrower certain credit
     facilities upon the terms and subject to the conditions set out therein and
     the shareholders undertaking dated 3 September 1999 by the Borrower, CSM
     and LTM in favour of the Security Agent (the "SHAREHOLDERS UNDERTAKING").

(2)  Prior to the Transfer Date (as defined below), Lucent Technologies
     International Inc. ("LTI"), a subsidiary of Lucent Technologies Inc., a US
     corporation ("LUCENT"), continues to own a majority interest in LTM, and
     LTM owns a 51% interest in the Borrower.

(3)  The Original Facilities Agreement requires LTI to continue to hold directly
     or indirectly a majority interest in LTM.

(4)  Lucent has on the Transfer Date transferred (the "TRANSFER") the assets and
     liabilities of its Microelectronics group into an independent company,
     known as Agere Systems Inc. ("AGERE").

(5)  In connection with the Transfer, Lucent, LTI and other Lucent entities will
     transfer certain assets related to Agere's business, including LTI's
     interest in LTM, to Agere

<PAGE>   2
     Systems International LLC ("AGERE INTERNATIONAL"), a wholly-owned direct
     subsidiary of Agere on February 1, 2001 (the "TRANSFER DATE").

(6)  LTM will on the Transfer Date change its name to Agere Systems Singapore
     Pte Ltd.

(7)  The parties hereto wish to record their agreement with respect to the
     Transfer.

(8)  This Agreement is supplemental to the Original Facilities Agreement and the
     Shareholders Undertaking.

IT IS AGREED AS FOLLOWS:

1.   DEFINITIONS AND INTERPRETATION

1.1  DEFINITIONS

     In this Agreement, terms defined in the Original Facilities Agreement,
     shall, unless otherwise defined, have the same meaning where used in this
     Agreement.

2.   AMENDMENT

     With effect from the date hereof:-

2.1  the Original Facilities Agreement shall be amended so that:-

     2.1.1  in Clause 1.1, the definition of "Financing Documents" shall
            include the Supplemental Agreement, this Agreement and any
            amendments, supplementals and variations to any one of the
            Financing Documents from time to time, and each such Financing
            Document shall accordingly be so construed;

     2.1.2  in Clause 1.1, the definition of "Security Documents" shall include
            this Agreement and any amendments, supplementals and variations to
            any one of the Security Documents from time to time, and each such
            Security Document shall accordingly be so construed;

     2.1.3  in Clause 1.1, the definition of "Transaction Documents" shall
            include the Supplemental Agreement, this Agreement and any
            amendments, supplementals and variations to any one of the
            Transaction Documents from time to time, and each such Transaction
            Document shall accordingly be so construed;

     2.1.4  in Clause 19.1.18.2, "Lucent Technologies International Inc." shall
            be replaced with "Agere Systems International LLC"; and

2.2  Clause 3.3 of the Shareholders Undertaking shall be amended so that
     "Lucent Technologies International Inc." in Clause 3.3 shall be replaced
     with "Agere Systems International LLC".

                                      -2-
<PAGE>   3

3.   REPRESENTATIONS

3.1  REPEATED REPRESENTATIONS

     The Borrower makes the representations and warranties set out in Clause 14
     of the Original Facilities Agreement as if each reference therein to "the
     Financing Documents" or "the Security Documents" or "the Transaction
     Documents" includes a reference to this Agreement.

3.2  CONSTITUTIONAL DOCUMENTS

     The Borrower represents that, as of the date hereof, there has been no
     change to the constitutional documents of the Borrower delivered by the
     Borrower pursuant to the Original Facilities Agreement.

4.   CONTINUITY AND FURTHER ASSURANCE

4.1  CONTINUING OBLIGATIONS

     (a)  The provisions of the Original Facilities Agreement shall, save as
          amended hereby, continue in full force and effect and the Borrower
          confirms that its obligations under the Security Documents shall
          remain in full force and effect.

     (b)  The provisions of the Shareholders Undertaking shall, save as amended
          hereby, continue in full force and effect and each of the Borrower,
          CSM and LTM confirms that its respective obligations thereunder shall
          remain in full force and effect.

4.2  FURTHER ASSURANCE

     The Borrower shall, at the request of the Facility Agent and at its own
     expense, do all such acts and things necessary or desirable to give effect
     to the amendments effected or to be effected pursuant to this Agreement.

5.   FEES, COSTS AND EXPENSES

5.1  TRANSACTION EXPENSES

     Any transaction expenses shall be paid as set forth in, and subject to the
     provisions of, Section 25.1 of the Original Facilities Agreement.

5.2  PRESERVATION AND ENFORCEMENT OF RIGHTS

     Section 25.2 of the Original Facilities Agreement is incorporated by
     reference as if set out in full herein.

5.3  STAMP TAXES

     Section 25.3 of the Original Facilities Agreement is incorporated by
     reference as if set out in full herein.

6.   MISCELLANEOUS

6.1  INCORPORATION OF TERMS

                                      -3-
<PAGE>   4

     The provisions of Clause 28 (Remedies and Waivers), Clause 30
     (Severability), Clause 32 (Nature of Rights and Obligations), Clause 33
     (Governing Law and Jurisdiction) of the Original Facilities Agreement shall
     be incorporated into this Agreement as if set out in full herein and as if
     references therein to "this Agreement" are references to this Agreement.

6.2  COUNTERPARTS

     This Agreement may be executed in any number of counterparts, all of which
     taken together shall constitute one and the same instrument.

AS WITNESS the hands of duly authorised representatives of the parties hereto
the day and year first before written.

THE BORROWER

SILICON MANUFACTURING PARTNERS PTE LTD
60 Woodlands Industrial Park D Street 2
Singapore 738406

Fax:   362 2909

Name:  Alan Capper

Title: Director

                                      -4-

<PAGE>   5

THE LEAD ARRANGER

ABN AMRO BANK N.V., SINGAPORE BRANCH
63 Chulia Street, Level 5
Singapore 049514

Fax: 231 8477

Name:       Samantha Chew                   M.C. Subramaniam

Title:      Vice President                  Group Vice President

CITIBANK, N.A., SINGAPORE BRANCH
3 Temasek Avenue #17-01 Centennial Tower
Singapore 039190

Fax: 227 8768

Name:       Agnes Liew

Title:      Managing Director

OVERSEAS UNION BANK LIMITED
1 Raffles Place, OUB Centre
Singapore 048616

Fax: 532 2686

Name:       Mr Wee Joo Yeow

Title:      Executive Vice-President

                                      -5-

<PAGE>   6

THE LENDERS

ABN AMRO BANK N.V., SINGAPORE BRANCH
63 Chulia Street, Level 5
Singapore 049514

Fax: 231 8477

Name:       Samantha Chew                   M.C. Subramaniam

Title:      Vice President                  Group Vice President

CITIBANK, N.A., SINGAPORE BRANCH
3 Temasek Avenue #17-01 Centennial Tower
Singapore 039190

Fax: 227 8768

Name:       Agnes Liew

Title:      Managing Director

OVERSEAS UNION BANK LIMITED
1 Raffles Place, OUB Centre
Singapore 048616

Fax: 532 2686

Name:       Mr Wee Joo Yeow

Title:      Executive Vice-President

                                      -6-

<PAGE>   7

BNP PARIBAS
20 Collyer Quay #01-01 Tung Centre
Singapore 049319

Fax: 532 7905

Name:       Christophe Rousseau             Bruce Weller

Title:      Head, Project Finance           Director, Project Finance
            and Utilities, Asia             and Utilities, Asia

COMMERZBANK AKTIENGESELLSCHAFT, SINGAPORE BRANCH
8 Shenton Way #42-01, Temasek Tower
Singapore 068811

Fax: 226 2792

Name:       J. Foid                         Martin Ruecker

Title:      Senior Manager                  Senior Manager

DANSKE BANK A/S, SINGAPORE BRANCH
50 Raffles Place #24-01 Singapore Land Tower
Singapore 048623

Fax: 224 3320

Name:       Mogens Sondergaard              Claes B. Pedersen

Title:      General Manager                 Manager

                                      -7-

<PAGE>   8

ING BANK N.V., SINGAPORE BRANCH
9 Raffles Place #19-02 Republic Plaza
Singapore 048619

Fax: 534 1672

Name:       Toh Kai Leong                   Chan Lan Foong

Title:      Director                        Senior Officer

THE BANK OF TOKYO-MITSUBISHI, LTD., SINGAPORE BRANCH
9 Raffles Place #01-01 Republic Plaza
Singapore 048619

Fax: 538 8083

Name:       Masakatsu Fukai

Title:      Deputy General Manager

KBC BANK N.V., SINGAPORE BRANCH
30 Cecil Street #12-01, Prudential Tower
Singapore 049712

Fax: 395 2829

Name:       Tan Jock Khim                   Jason Lee

Title:      Credit Manager                  Head, Local Corporate

                                      -8-

<PAGE>   9

NATEXIS BANQUES POPULAIRES, SINGAPORE BRANCH
50 Raffles Place #41-01 Singapore Land Tower
Singapore 048623

Fax: 224 8651

Name:       Tan Sin Ming                    Clara Hang

Title:      Assistant Vice President        Senior Vice President

THE NORINCHUKIN BANK, SINGAPORE BRANCH
80 Raffles Place #53-01 UOB Plaza 1
Singapore 048624

Fax: 536 3009

Name:       Teruoki Sakurauchi

Title:      Joint General Manager

UNICREDITO ITALIANO SPA, SINGAPORE BRANCH
80 Raffles Place #51-01 UOB Plaza 1
Singapore 048624

Fax: 534 4300

Name:       Gianni F. Papa                  Terence Chee

Title:      General Manager                 Deputy General Manager

                                      -9-

<PAGE>   10

THE FACILITY AGENT

CITICORP INVESTMENT BANK (SINGAPORE) LIMITED
300 Tampines Avenue 5 #07-00, Tampines Junction
Singapore 529653

Fax: 426 8056

Name:       Lawrence Yeo

Title:      Director

THE SECURITY AGENT

CITICORP INVESTMENT BANK (SINGAPORE) LIMITED
300 Tampines Avenue 5 #07-00, Tampines Junction
Singapore 529653

Fax: 426 8056

Name:       Lawrence Yeo

Title:      Director

CHARTERED SEMICONDUCTOR MANUFACTURING LTD.
60, Woodlands Industrial Park D, Street 2
Singapore 738406

Fax: 362 2909

Name:       Chia Song Hwee

Title:      SVP, CFO & CAO

                                      -10-

<PAGE>   11

AGERE SYSTEMS SINGAPORE PTE LTD
(FORMERLY KNOWN AS LUCENT TECHNOLOGIES MICROELECTRONICS PTE. LTD.)
3, Kallang Sector, Kolam Ayer Industrial Park
Singapore 349278

Fax: 840 2560

Name:       Jaffer Mohamed Mowla

Title:      Managing Director

                                      -11-<PAGE>   1
                                                                    EXHIBIT 10.1

                             DATED 28th June , 2001

           ----------------------------------------------------------

                          SUPPLY CHAIN SERVICES LIMITED

                                   as BORROWER

                                       and

                          DIGITAL WORLD FINANCE LIMITED

                                    as LENDER

           ----------------------------------------------------------

                                 LOAN AGREEMENT

                                       re

                          HK$2,000,000.00 LOAN FACILITY

           ----------------------------------------------------------

           J. CHAN, YIP, SO & PARTNERS
           Solicitors & Notaries
           31 New Henry House
           10 Ice House Street Tel: 2877 8800
           Central                  Fax: 2877-8119
           Hong Kong                Ref: L4612/2001/JWLY

<PAGE>   2
THIS AGREEMENT is made on 28th June, 2001

BETWEEN

1.   SUPPLY CHAIN SERVICES LIMITED (                        ), a company
     incorporated and registered in Hong Kong having its registered office at 31
     New Henry House, 10 Ice House Street, Central, Hong Kong (the "Borrower");
     and

2.   DIGITAL WORLD FINANCE LIMITED (                        ), a company
     incorporated and registered in Hong Kong having its registered office at
     Room 2001, 20th Floor, Hong Kong Diamond Exchange Building, 8-10 Duddell
     Street, Central, Hong Kong (the "Lender").

NOW IT IS AGREED as follows:

1.   INTERPRETATION

     Words and phrases appearing in this Agreement shall be read and construed
     in accordance with the definitions and provisions in Schedule 1.

2.   THE FACILITY

2.1 Subject to the terms and conditions of this Agreement, the Lender agrees to
make available to the Borrower a loan facility of up to the maximum principal
amount of HK$2,000,000.00.

2.2 The Borrower shall use the entire proceeds of the Facility for the purpose
specified and in the manner provided in Clause 4.1 but, except for complying
with the provisions of that Clause, the Lender need not check that the Borrower
does do.

3.   CONDITIONS PRECEDENT

3.1 The obligation of the Lender to make the Facility available to the Borrower
is conditional upon, and the Borrower shall not request that the Facility be
made available until, the Lender confirms that it has received and found to be
satisfactory each of the items and evidence (as the case may be) listed in
Schedule 2.

3.2 The obligation of the Lender to make the Facility available to the

<PAGE>   3
Borrower is further subject to the condition that at the time of a drawdown of
the Facility:

     (a) all representations and warranties in Clause 12 have been complied with
     and will be true and correct in all respects; and

     (b) no Event of Default has occurred, which has not been waived or
     remedied, or occurs and is not waved or remedied on or prior to the
     proposed date of the drawdown of the Facility or will occur as a result of
     the drawdown of the Facility and no event has occurred which with the lapse
     of time or giving of notice would become an Event of Default.

3.3 The Lender may waive compliance with all or any of requirements of this
Clause 3 and Clause 4 upon such conditions as may be stipulated.

4.   AVAILABILITY

4.1 Subject to the terms and conditions of this Agreement, the Facility shall be
made available to the Borrower during the Availability Period for drawing by the
Borrower in one lump sum for application in or towards financing the Borrower's
working capital requirement.

4.2 Subject as otherwise provided under this Agreement, a drawing under the
Facility may be made by the Borrower on Business Days falling within the
Availability Period only if the Lender has received a Notice of Drawdown duly
completed and signed by a director of the Borrower specifying the proposed date
of drawdown under the Facility (which must be a Business Day falling within the
Availability Period and at least twenty four (24) hours after the service of the
Notice of Drawdown).

4.3 A Notice of Drawdown, once given, shall be irrevocable.

5.   PREPAYMENT

5.1 Subject as otherwise provided in this Agreement, the Borrower may, subject
to having given to the Lender not less than three (3) Business Days' prior
notice of its intention to make prepayment specifying the amount to be prepaid
and the date of such repayment, prepay the Loan or any part thereof, subject to
a minimum amount of HK$500,000.00 or a higher integral multiple thereof (other
than the last prepayment of the final balance of the Loan where such final
balance is

<PAGE>   4
less than HK$500,000.00).

5.2 Any prepayment made under this Agreement shall be made together with accrued
interest on the amount prepaid and any other sum then due to the Lender under
the Loan Documents.

5.3 Any notice of prepayment, once given, shall be irrevocable and shall oblige
the Borrower to prepay in accordance with that notice. The Borrower may not
reborrow any amount prepaid or repaid.

6.   REPAYMENT

     Subject as otherwise provided in this Agreement, the Borrower shall repay
the full principal amount of the Loan, so far as not otherwise repaid or prepaid
under the provisions of this Agreement, together with any other monies then
outstanding in one lump sum on the Maturity Date.

7.   INTEREST

     Interest on the Loan shall accrue at the rate of two per cent. (2%) per
annum above the best lending rate for HK Dollars from time to time announced by
The Hongkong and Shanghai Banking Corporation Limited and shall be paid by the
Borrower on:

     (a)  the date(s) of prepayment where the Borrower makes a prepayment in
          accordance with Clauses 5, 10.1 and 10.2 (ii); and

     (b)  the Maturity Date where the Borrower makes a repayment in accordance
          with Clause 6.

8.   DEFAULT INTEREST

8.1 If the Borrower defaults in payment when due of any amount, whether
principal, interest or otherwise, payable in accordance with the provisions of
this Agreement, it shall pay to the Lender interest on such overdue amount from
the due date of payment until actual payment (as well after as before judgement)
at the rate of two per cent. (2%) per annum above the rate of interest
applicable to the Loan from time to time, or which would have been applicable to
the sum in default had it constituted part of the Loan.

8.2 Interest accrued on any overdue amount shall be payable on demand by the
Lender made at any time.
<PAGE>   5
9.   DEDUCTIONS / TAXES

9.1 All amounts payable by the Borrower under this Agreement shall be paid
(except to the extent required by law):

     (a)  free of any restriction or condition;

     (b)  free and clear of and without any deduction or withholding on account
          of any taxes; and

     (c)  without deduction or withholding on account of any other amount,
          whether by way of set-off, counterclaim or otherwise.

9.2 If (i) the Borrower is required by law or by any taxing authority to make
any deduction, withholding or payment on account of any present or future tax or
other amount from or in respect of, as the case may be, any sum paid or payable
by the Borrower to the Lender under this Agreement or on or with regard to any
aspect of the transactions contemplated in this Agreement or the execution and
delivery of the Loan Documents or (ii) the Lender (or any person on its behalf)
is required by law or by any taxing authority to make (01) any deduction or
withholding from, or (02) (except on account of tax on the overall net income of
the Lender) any payment on or calculated by reference to the amount of, any sum
received or receivable by the Lender under this Agreement, then:

     (a)  if the deduction, withholding or payment in question is required to be
          made by the Borrower, the Borrower shall notify the Lender of the
          requirement or any change in any such requirement as soon as the
          Borrower becomes aware of it;

     (b)  the Borrower shall pay such tax or other amount before the date on
          which penalties attach thereto, such payment to be made (if the
          liability to pay is imposed on the Borrower) for its own account or
          (if that liability is imposed on the Lender) on behalf of and in the
          name of the Lender;

     (c)  save and except where the deduction, withholding or payment is in
          respect or on account of tax on the Lender's overall net income, the
          sum payable, in respect of which the relevant deduction, withholding
          or payment is required, shall be increased to the extent necessary to
          ensure that, after the making of that deduction, withholding or
          payment, the Lender receives on the due date (free from any liability
          in respect of any such deduction, withholding or

<PAGE>   6
          payment) a net sum equal to what it would have received had no such
          deduction, withholding or payment been required or made; and

     (d)  within thirty (30) days after payment of any legally required
          deduction or withholding, and within thirty (30) days after the due
          date of payment of any tax or other amount required to be paid
          pursuant to Paragraph (1) above, the Borrower shall deliver to the
          Lender evidence, satisfactory to the Lender, of such deduction,
          withholding or payment and of the remittance thereof to the relevant
          taxing or other authority.

9.3 Without prejudice to the provisions of Clause 9.2, if any sum paid or
payable by the Borrower under this Agreement is or would when paid be subject to
any deduction or withholding on account of any tax or other amounts imposed by
or within any jurisdiction in or from which the payment is or is to be made, the
Borrower will, at the request of the Lender, agree to such change as the Lender
may request and the Borrower shall approve (such approval not to be unreasonably
withheld) in the manner or place of payment by the Borrower hereunder in order
to avoid the requirement of such deduction or withholding.

10.  CHANGE IN CIRCUMSTANCES

10.1 If at any time the Lender determines that it is or will become unlawful or
contrary to any law or directive of any agency or state for it to make available
all or part of the Facility, to allow to be understanding all or part of the
Loan, to carry out all or any of its other obligations under this Agreement
and/or to charge or receive interest at the rate(s) payable pursuant to this
Agreement, upon the Lender so notifying the Borrower, the Borrower shall repay
all (but not part only) of the Loan on such date as the Lender shall certify to
be necessary to comply with the relevant law or directive, without premium or
penalty (other than any amounts payable under Clause 5.2) but together with all
accrued interest thereon and any other sum then due to the Lender under this
Agreement.

10.2 If any change in applicable law or in the interpretation or application
thereof or if compliance by the Lender with any applicable direction, request or
requirement (whether or not having the force of law) of any competent
governmental or other authority introduced or imposed after the date of this
Agreement shall, in the opinion of the Lender :

     (a)  subject the Lender to any taxes or increase the Lender's liability to
          taxes with respect to the Loan or any part thereof (other than
<PAGE>   7
          tax on its overall net income);or

     (b)  change the basis of taxation to the Lender in respect of payments of
          principal, interest or any other payment due or to become due to its
          pursuant to this Agreement (other than where the tax in effect after
          such change in basis is still a tax on its overall net income);or

     (c)  impose on the Lender any other condition affecting the Loan or any
          part thereof,

and the result of any of the foregoing is either directly or indirectly (I) to
increase the cost to the Lender of maintaining or funding all or part of the
Loan, (II) to reduce the amount of any payment received or receivable by the
Lender under this Agreement, (III) to oblige he Lender to make any payment on or
calculated by reference to the amount of any sum received or receivable by it
under this Agreement, (IV) to cause the Lender to forgo any interest or other
sum received or receivable by it or (V) to render the Lender otherwise unable to
obtain the rate of return on its overall capital which it would have been able
to achieve but for its entering into and/or performing its obligations under
this Agreement, in any such case by an amount which the Lender considers to be
material, then in any such case:

     (i)  the Lender shall notify the Borrower of the occurrence of such event
          as soon as reasonably practicable after the Lender becomes aware of
          such event; and

     (ii) the Borrower shall indemnify the Lender against that increased cost,
          reduction, payment or forgone interest or other sum and, accordingly,
          shall from time to time on demand (whenever made) pay to the Lender
          such additional amounts as the Lender may certify to be necessary so
          to indemnify it. Any such demand may be made at any time before or
          after the end of any period to which such demand relates and at any
          time before or after any prepayment, repayment or transfer of all or
          part of the Loan or any part thereof. In such circumstances the
          Borrower shall be at liberty at any time after a demand has been made
          of it, but without prejudice to its obligation to indemnify the Lender
          under this Clause, to serve notice of its intention to prepay all (but
          not part only) of the Loan on any date prior to the Maturity Date.

11.  PAYMENT

11.1 On the date on which a drawdown of the Facility is to be made, the Lender
shall at or before 3:00p.m. on that date make available for

<PAGE>   8
collection by the Borrower at the Lender's office (or such other place in Hong
Kong as the Lender may from time to time notify the Borrower for the purpose) a
cashier order or a HK Dollar cheque drawn on a licensed bank in Hong Kong for
the amount of the Facility or in such manner as the parties hereto may from time
to time agree.

11.2 On each date on which any sum is due from the Borrower hereunder or in
connection herewith, it shall make such sum available to the Ledner before
1:00pm on the due date by delivery to the Lender's office (or such other place
in Hong Kong as the Lender may from time to time notify the Borrower for the
purpose ) of a cashier order or a HK Dollar cheque drawn on a licensed bank in
Hong Kong acceptable to the Lender and payable to the Lender for such amount.

11.3 Any payment to be made by the Borrower on a day which is not a Business Day
and which would otherwise be due on a non-Business Day shall instead be due on
the next Business Day in the same calendar month and, if none, on the
immediately preceding Business Day.

12.  WARRANTIES

12.1 The Borrower represents and warrants to and for the benefit of the Lender
that:

     (a)  the Borrower is a limited liability company incorporated, registered
          and existing under the laws of Hong Kong and has the power, authority
          and legal right to own its assets and to carry on and conduct the
          business and operations which it now conducts or proposes to conduct
          and has compiled with and will comply with all requirements (legal or
          otherwise) relative to it or its business;

     (b)  each of the Covenantors has the necessary corporate power and/or full
          legal capacity, to enter into, exercise its rights and perform and
          comply with its obligations under the Loan Documents to which each of
          them is or will be a party;

     (c)  the entry into by each of the Covenantors, the exercise by each of
          them of its rights and/or performance of or compliance with its
          obligations under the Loan Documents to which it is or will be a party
          do not and will not violate (as the case may be):

          (i)   any law, regulation, directive, judgment or order to which it is
                subject; or

          (ii)  where appropriate, its memorandum and articles of

<PAGE>   9
                association; or

          (iii) any agreement to which it is a party or which is binding on it
                or its assets,

     and, except for Encumbrances created pursuant to or under the Loan
     Documents, do not and will not result in the existence of, or oblige it to
     create, any Encumbrance over its assets and will not constitute a default
     or an event that with the giving of notice or lapse of time or both would
     constitute a default under any agreement to which it is a party;

     (d)  all corporate, shareholders and other action, conditions, approvals,
          including, but without limitation, all governmental and other official
          consents, licences, approvals and authorizations, and things required
          under the laws of Hong Kong to be taken, fulfilled and done in order:

          (i)   to enable each of the Covenantors lawfully to enter into,
                exercise its rights and perform and comply with its obligations
                under the Loan Documents to which it is or will be a party;

          (ii)  to ensure that those obligations are legal, valid and
                enforceable in accordance with heir terms; and

          (iii) to make such Loan Documents admissible in evidence,

     have been or, as the case may be, will on or before 11:00am on the date of
     the drawdown of the Facility be done, fulfilled and performed properly and
     truthfully in strict compliance with any applicable laws;

     (e)  it is not necessary in order to ensure the legality, validity,
          enforceability, admissibility in evidence or priority of the Loan
          Documents that any of them be filed, recorded or enrolled with any
          court or authority anywhere or that any stamp duty, registration or
          similar tax be paid on or in relation to any of them (if any);

     (f)  the Loan Documents constitute (or, as and when each of them is
          executed, will constitute) legal, valid and binding obligations of
          each of the Covenantors enforceable in accordance with their
          respective terms and there are no approvals required in respect of any
          of the Loan Documents which have not been or will not be obtained by
          the date of the drawdown of the Facility and are not or, as the case
          may
<PAGE>   10
          be, will not as of that date be in full force and effect;

     (g)  except for High Court Action No 1400 of 2001 no litigation,
          arbitration or administrative proceeding is current, pending or
          threatened:

          (i)  to restrain the entry into by any Covenantor of, the exercise by
               any Covenantor of its rights and/or performance or enforcement of
               or compliance with its obligations under, the Loan Documents to
               which it is or will be a party; or

          (ii) which has or could have a material adverse effect on or on the
               financial condition of any of the Covenantors or the ability of
               any of the Covenantors to make any payment when due or to perform
               any of its other obligations in accordance with the Loan
               Documents to which it is or will be a party; or

          (iii) which has or could have a material adverse effect on the
                security constituted by the Loan Documents;

     (h)  no Encumbrance exists over all or any of the undertaking or the
          present or future revenues or assets of the Borrower save as
          previously disclosed in writing to the Lender by the Borrower;

     (i)  the obligations of each of the Covenantors under the Loan Documents to
          which it is or will be a party are or will be its direct, general and
          unconditional obligations and, subject to the Encumbrances created or
          to be created pursuant to or under such Loan Documents, rank or will
          rank at least pari passu in all respects with all its other present
          and future unsecured and unsubordinated Indebtedness and obligations
          (including contingent obligations), with the exception of Indebtedness
          and obligations, mandatorily preferred by law and not by contract;

     (j)  there is no withholding, income or other tax or charge of Hong Kong or
          any other jurisdiction applicable to any payment to be made by each of
          the Covenantors pursuant to the terms of the Loan Documents to which
          it is or will be party or to be imposed on or by virtue of the
          execution and delivery, performance or enforcement of the Loan
          Documents;

     (k)  without prejudice to Paragraph c), none of the Covenantors is in
          default or breach of any of its obligations under any agreement to
          which it is a party which default or breach has or could have a
          material adverse effect on its ability to make any payment when due or
          to perform any of its other
<PAGE>   11
          obligations in accordance with the Loan Documents to which it is or
          will be a party;

     (l)  no event or circumstance has occurred or arisen which is or may
          constitute or become (with the giving of notice and/or lapse of time
          and/or fulfillment of any condition) an Event of Default or will occur
          or arise as a result of the entry by any of the Covenantors into the
          Loan Documents to which it is or will be a party.

12.2 The Borrower further represents and warrants to and for the benefit of the
Lender that :

     (a)  except for liens and title retention arrangements arising in the
          ordinary course of business, no Encumbrance exists over all or any of
          the undertaking or the present or future revenues or assets of the
          Borrower other than those as previously disclosed in writing to the
          Lender; and

     (b)  all information, data and materials supplied to the Lender by or on
          behalf of each of the Covenantors concerning itself or in connection
          with the Facility are to the best of its knowledge and belief true,
          complete and accurate in all materials respects and not misleading and
          do not omit material facts and all reasonable enquiries have been made
          to verify the facts contained therein and there are no other facts the
          omission of which would make any fact or statement therein misleading
          and all forecasts and projections contained therein were made after
          due and careful consideration on its part, are based on the best
          information available to it and on fair and reasonable assumptions and
          are, in its considered opinion, fair and reasonable in the
          circumstances prevailing at the time such forecasts and projections
          were made and in the light of the assumptions made, and it is not
          aware at the date of this Agreement of any fact which might have a
          material effect on any such assumptions or which might necessitate a
          material revision to any of the said forecasts or projections.

12.3 The Borrower shall be deemed to repeat each of the representations and
warranties in Clauses 12.1 and 12.2 in the Notice of Drawdown issued hereunder
and on the date of drawdown under the Facility by reference to the facts and
circumstances then existing, save that the foregoing shall not preclude the
Borrower from taking any action which would otherwise be permitted under the
Loan Documents and so
<PAGE>   12
that the warranties in Clauses 12.1 and 12.2 shall be construed so as to take
account of any such action.

13.  UNDERTAKINGS

13.1 General The Borrower undertakes to and in favour of the Lender that:

     (a)  it will conduct its business in a proper and efficient manner and will
          comply with and duly and diligently perform all its duties and
          obligations under the Loan Documents to which it is or will be a
          party;

     (b)  it will obtain or cause to be obtained and will maintain and cause to
          be maintained in full force and effect and will comply with the
          conditions and restrictions (if any) imposed in, or in connection with
          all consents, permits and approvals (whether governmental or
          otherwise) in respect of the Loan Documents and do, or cause to be
          done, all other acts and things, which from time to time may be
          necessary to ensure that each of the Loan Documents and its
          obligations thereunder remain in full force and effect and continue to
          be legal, valid, binding and enforceable in accordance with their
          respective terms and admissible in evidence;

     (c)  it will apply the facility only for the purpose for which the same
          have been made available and it will on request by the Lender provide
          evidence satisfactory to the Lender of such proper application
          Provided that nothing herein contained shall oblige the lender to
          enquire as to the application or proper application of the Facility;

     (d)  it will keep and prepare its books of account and all financial
          statements to be delivered to the Lender under this Agreement in
          accordance with generally accepted accounting principles and practices
          in Hong Kong consistently applied;

     (e)  it will permit the Lender and its representatives to inspect its books
          of account and other relevant accounting records at all reasonable
          times on reasonable notice and shall cause its employees and
          accountants to give their full cooperation and assistance in
          connection with any such visits of inspection or any financial
          conferences called by the Lender;

     (f)  it will promptly advise the Lender upon becoming aware of:

          (i)   any Event of Default;

          (ii)  any litigation, arbitration or administrative proceeding
<PAGE>   13
                which, if it had been current or pending or threatened as at the
                date of this Agrement, would have rendered the warranty in
                Clause 12.1 (g) incorrect;

          (iii) any other factor which the Borrower reasonably considers may
                inhibit , impair or delay any of the Covenantors in the
                performance of its obligations under any of the Loan Documents
                to which it is or will be a party; or

          (iv)  any change in the taxes applicable to any respect of the
                transactions contemplated by the Loan Documents;

     (g)  it will pay all of its Indebtedness and shall perform all its other
          contractual obligations not specifically herein referred to duly and
          promptly in accordance with the particular agreements to which it is a
          party or by which its property or assets are bound;

     (h)  it will procure that its obligations under this Agreement at all times
          rank at least pari passu with all its unsecured obligations, except
          for Indebtedness and obligations mandatorily preferred by law and not
          by contract;

     (i)  it will pay and discharge all taxes for which it is liable (whether in
          Hong Kong or elsewhere), including without limitation any taxes
          assessed against any of its assets, prior to the date after which
          penalties attach for failure to pay, except, to the extent that such
          taxes are being contested in good faith, adequate reserves have been
          set aside for the payments thereof and will make timely filings of all
          tax returns and governmental reports required to be filed or submitted
          under any applicable laws or regulations;

     (j)  it will provide such information and assistance as the Lender may
          reasonably require to enable it to review the business activities of
          the Covenantors.

13.2 Negative The Borrower further undertakes to and in favour of the Lender
that without the prior written consent of the Lender (which consent may be
subject to such conditions as the Lender sees fit to impose) it will not :

     (a)  take any step with a view to dissolution, liquidation or winding-up;

     (b)  except for Indebtedness incurred pursuant to this Agreement or
          Indebtedness incurred in the ordinary course of business and
<PAGE>   14
          not material in amount, incur or create any Indebtedness or give any
          guarantee or indemnity or act as surety in respect of any Indebtedness
          of any other person;

     (c)  except as permitted in the Loan Documents, create or permit to arise
          or exist any Encumbrance over all or any of its present or future
          undertaking or property or its present or future revenues or assets
          including its uncalled capital (if any) for the time being;

     (d)  lend any money or extend any credit other than in the ordinary course
          of business or as permitted in the Loan Documents;

     (e)  make any payment to its shareholders, whether by way of dividend,
          interest, return of capital, loan repayment or otherwise howsoever;

     (f)  repay or redeem its issued share capital or reduce its share capital;

     (g)  alter its financial year end;

     (h)  change the nature and scope of its current business in any material
          respect;

     (i)  pay any Indebtedness owed to its shareholders until such time as the
          Obligations shall have been paid and discharged in full; and / or

     (j)  enter into any agreement or incur any obligation which may materially
          or adversely affect its financial and other conditions.

14.  DEFAULT

14.1 If at any time and for any reason, whether within or beyond the control of
the party or parties concerned:

     (a)  the Borrower fails to pay any principal, interest or other amount
          payable by it hereunder on the due date or where the same is payable
          on demand, on demand; or

     (b)  any of the Covenantors fails to pay in the manner provided in the
          other Loan Documents any sum payable by it thereunder when due or
          where the same is payable on demand, on demand; or

     (c)  any representation, warranty or statement by any of the Covenantors in
          any of the Loan Documents or in any information or document delivered
          thereunder or otherwise (including but not limited to the Notice of
          Drawdown) is not complied with or is or proves to have been incorrect
          or misleading in any respect when made or in any material respect when
          repeated or deemed to be repeated pursuant to any of the Loan
          Documents, by reference to
<PAGE>   15
          the circumstances then existing and such breach is not capable of
          remedy or, if in the opinion of the Lender, remediable, has not been
          remedied within seven (7) days after notice from the Lender requiring
          its remedy; or

     (d)  any of the Covenantors fails duly to perform any of its obligations
          (other than the obligation to pay) or to observe any of the terms and
          conditions (other than terms and conditions of payment) imposed on it
          by any of the Loan Documents to which it is or will be a party and
          such failure is not capable of remedy or, if, in the opinion of the
          Lender, remediable has not been remedied within seven (7) days after
          notice from the Lender requiring its remedy; or

     (e)  all or any material part of the assets, rights or revenues of the
          Borrower or any other material company beneficially owned or
          controlled, whether directly or indirectly, by the Borrower shall be
          seized, expropriated, re-entered or resumed or shall be subject to
          compulsory purchase or acquisition (whether subject to compensation or
          not) or shall be wholly or substantially destroyed; or

     (f)  all or any material part of the assets, rights or revenues of any of
          the Covenantors shall be seized, expropriated, re-entered or resumed
          or shall be subject to compulsory purchase or acquisition (whether
          subject to compensation or not) or shall be wholly or substantially
          destroyed; or

     (g)  any consent, authorization, licence or approval (whether from the
          Government of Hong Kong or any other authority or agency whether
          governmental or otherwise) required for or in connection with the Loan
          Documents is not given or not obtained within any applicable time
          limits or is revoked, withdrawn, terminated or changed or is or
          becomes subject to conditions unacceptable to the Lender or otherwise
          ceases to be in full force and effect or the Government of Hong Kong
          or any other such authority or agency objects to the Loan Documents;
          or

     (h)  any government, tax, monetary or other approval required is not given
          or not obtained or is revoked or is withdrawn or is changed or is or
          becomes subject to conditions unacceptable to any Lender; or

     (i)  (without prejudice to Clauses 14.1 (a) or 14.1(j)) any Indebtedness of
          any of the Covenantors, other than in respect of this Agreement and
          the Loan:

          (i)   is not paid when due or within any applicable grace period in
                any agreement relating to that Indebtedness;
<PAGE>   16
                or

          (ii)  becomes due and payable before its normal or anticipated
                maturity by reason of a default or event of default, however
                described; or

          (iii) which is in respect of a guarantee, becomes actual Indebtedness
                and such actual Indebtedness is not paid or discharged within
                seven (7) days or in accordance with the relevant guarantee if
                such guarantee provides for a longer grace period; or

     (j)  any event occurs:

          (i)   which constitutes or, with the fulfillment of any condition,
                would constitute an event of default under any other agreement
                to which any of the Covenantors is a party; or

          (ii)  which has a material adverse effect on the ability of any of the
                Covenantors to perform its obligations under any of the Loan
                Documents to which it is or will be a party; or

     (k)  any of the Covenantors becomes or is declared insolvent or bankrupt,
          is unable to pay its debts as they fall due, stops, suspends or
          threatens to stop or suspend payment of all or a material part of its
          debts or begins negotiations or takes any proceeding or other step
          with a view to readjustment, rescheduling or deferral of its
          Indebtedness (or of any part of its Indebtedness which it will or
          might otherwise be unable to pay when due) or proposes or makes a
          general assignment or any arrangement, compromise or composition with
          or for the benefit of its creditors or a moratorium is agreed or
          declared in respect of or affecting all or any material part of its
          Indebtedness; or

     (l)  a distress, attachment, execution or other legal process is levied,
          enforced or sued out on or against the assets of any of the
          Covenantors and is not discharged within ten (10) days; or

     (m)  any present or future security on or over the assets of any of the
          Covenantors becomes enforceable, or any step (including the taking of
          possession or the appointment of a receiver, manager or similar
          officer) is taken to enforce that security; or

     (n)  a petition is presented or a proceeding is commenced, a resolution is
          passed, an order is made or any action is taken by any person for the
          dissolution, liquidation, winding-up or bankruptcy (except for the
          purpose of and followed by a
<PAGE>   17
          reconstruction, amalgamation or reorganization on terms previously
          approved by the Lender) or for the appointment of a liquidator,
          receiver, administrator, trustee or similar officer, of any of the
          Covenantors or of all or a material part of its business or assets or
          if any event analogous thereto occurs or any of the Covenantors
          becomes or is declared insolvent, liquidated, wound-up or bankrupt
          under applicable laws; or

     (o)  any of the Covenantors ceases to exist or ceases or threatens to
          cease to carry on its business or any part thereof or changes or
          threatens to change the nature or scope of its business to any extent
          or in a way unacceptable to the Lender, or any of the Covenantors
          Disposes of or threatens to Dispose of all or any substantial part of
          its business or assets, except as contemplated under the Loan
          Documents; or

     (p)  any action, condition or thing (including the obtaining of any
          necessary consent) required at any time to be taken, fulfilled or done
          in order to ensure that each of the Loan Documents is legal, valid and
          enforceable in all respects is not taken, fulfilled or done or any
          such consent ceases to be in full force and effect without
          modification or any condition in or relating to any such consent is
          not complied with; or

     (q)  it is or will become unlawful for any of the Covenantors to perform or
          comply with any one or more of its obligations under the Loan
          Documents to which it is or will be a party or any such obligation is
          not or ceases to be enforceable or is claimed by any of the
          Covenantors or any other person not to be enforceable; or

     (r)  any action or proceeding of or before any court or authority shall be
          commenced (and not withdrawn or dismissed within a period of twenty
          eight (28) days after its commencement) to enjoin or restrain the
          performance of and compliance with any obligation expressed to be
          assumed by any of the Covenantors in any of the Loan Documents or in
          any manner to question the right under and perform and comply with any
          obligation expressed to be assumed by it under the Loan Documents or
          the legality, validity or enforceability of the Loan Documents; or

     (s)  there occurs, in the opinion of the Lender, a material adverse change
          in the financial position of any of the Covenantors or
<PAGE>   18
          there occurs, in the opinion of the Lender, any situation which has
          materially adversely affected or may materially adversely affect the
          ability of any of the Covenantors to perform any or all of its
          obligations under the Loan Documents to which it is or will be a
          party,

then, and in any such case, the Lender may, whether or not such Event of Default
is continuing, declare:

          (i)  the Loan and all interest accrued thereon to be immediately due
               and payable (whereupon the same shall be immediately due and
               payable by the Borrower); and/or

          (ii) all other monies payable under the Loan Documents to be
               immediately due and payable (whereupon the same shall be
               immediately due and payable by the Borrower),

and at the same time as or at any time after the Lender makes any such
declaration it may declare the security constituted by the Loan Documents to be
and to have become immediately enforceable and duly enforce such security.

14.2 All monies received by the Lender at any time after the Loan and all other
monies payable under any of the Loan Documents have become immediately due and
payable pursuant to Clause 14.1 shall be paid into an interest bearing
recoveries account to be maintained by the Lender and shall be applied, subject
to any prior ranking claims :

     Firstly:  in or towards discharging all costs and expenses incurred by the
     Lender in perfecting, preserving, exercising, protecting, enforcing or
     attempting to so perfect, preserve, exercise, protect or enforce its rights
     under the Loan documents;

     Secondly: in or towards discharging all unpaid accrued interest payable
     pursuant to the Loan Documents or any of them;

     Thirdly:  in or towards discharging the Loan and other monies payable
     hereunder; and

     Fourthly: subject to the rights of third parties of which the lender has
     actual notice, any balance in payment to the Borrower.
<PAGE>   19
15.  INDEMNITIES

15.1 The Borrower shall on demand indemnify the Lender against any funding or
other cost (including administration costs), loss, expense or liability
sustained or incurred by it as a result of:

     (a)  any sum payable by the Borrower under this Agreement not being paid
          when due; or

     (b)  delay or failure by the Borrower to pay any taxes or other monies
          contemplated by Clause 9.2 and payment by the Lender of any such taxes
          or monies, whether or not such taxes or monies shall be correctly or
          legally asserted or otherwise contested or contestable, together with
          any interest, penalties and expenses in connection therewith; or

     (c)  the occurrence or continuance of any other Event of Default; or

     (d)  the accelerated repayment of the Loan pursuant to Clause 14; or

     (e)  the receipt or recovery by the Lender of all or any part of an overdue
          sum; or

     (f)  (without prejudice to any other provision hereof) any untrue or
          misleading statement contained in any of the Loan Documents or in any
          information or document delivered pursuant thereto.

15.2 (A) Except (i) where costs and expenses are incurred in a currency other
than HK Dollars and the Lender requires payment in that other currency and (ii)
as otherwise provided in this Agreement, HK Dollars shall be the currency of
account and payment for all sums payable by the Borrower under or in connection
with this Agreement, including damages.

     (B) Any amount received or recovered in currency other than the currency of
account and payment stipulated in Sub-clause (A) ("Account Currency") (whether
as a result of, or of the enforcement of, a judgment or order of a court,
tribunal or authority of any jurisdiction, in the dissolution or bankruptcy of
the Borrower (as the case may be) or otherwise) by the Lender in respect of any
sum expressed to be due to it from the Borrower under this Agreement shall only
constitute a discharge to the Borrower to the extent of the amount in the
Account Currency which the Lender is able, in accordance with its usual
practice, to purchase with the amounts so received or recovered in that other
currency on the date of that receipt or recovery (or, if it is not practicable
to make
<PAGE>   20
the purchase on that date, on the first date on which it is practicable to do
so).

     (C) If that amount is less than the Account Currency amount expressed toi
be due to the Lender under the Loan Documents, the Borrower shall indemnify the
Lender against any loss sustained by it as a result. In any event, the Borrower
shall indemnify the Lender against the cost of making any such purchase.

     (D) The indemnities in Sub-clause (C) constitute separate and independent
obligations form the other obligations of the Borrower in the Loan Documents,
shall give rise to a separate and independent cause of action, shall apply
irrespective of any indulgence granted by the Lender and shall continue in full
force and effect despite any judgement, order, claim or proof for a liquidated
amount in respect of any sum due under the Loan Documents or any judgement or
order. No proof or evidence of any actual loss may be required.

16.  FEES, COSTS AND EXPENSES

16.1 The Borrower shall pay:

     (a)  upon the execution of this Agreement, a documentation fee of HK$30,000
          incurred by the Lender in connection with the preparation of the Loan
          Documents and other documents ancillary thereto;

     (b)  on demand by the Lender, all costs and expenses (including legal fees
          on a full indemnity basis) incurred by the Lender in perfecting,
          preserving or protecting any rights under the Loan Documents or in
          exercising or enforcing or attempting to exercise or enforce any
          rights under the Loan Documents and including, but without limitation,
          all such costs and expenses incurred by the Lender in determining
          whether an Event of Default has occurred; and

     (c)  promptly, any stamp, documentary, registration or similar tax payable
          in connection with the entry into, registration, performance,
          enforcement or admissibility in evidence of the Loan Documents and the
          transactions contemplated thereby and/or any amendment or waiver
          referred to in Paragraph (a), and the Borrower shall indemnify the
          Lender against any liability with respect to or resulting from any
          delay in paying or omission to pay any such tax.
<PAGE>   21
17.  CALCULATIONS AND EVIDENCE

17.1 All interest, fees and other payments of an annual nature under this
Agreement shall accrue from day to day and be calculated on the basis of actual
number of days elapsed over a year of three hundred and sixty five (365) days
and in the calculation of interest payable by the Borrower hereunder, inclusive
of the first day of the relevant period but excluding the last.

17.2 The entries made in the accounts maintained by the Lender in respect of
this Agreement in accordance with the usual practice shall, save for manifest
error, be conclusive evidence of the existence and amounts of the obligations of
the Borrower therein recorded.

17.3 A certificate issued by the Lender as to rate of interest determined to
apply, the amount of the Loan, the amount of any sum, fee or other payment
payable to it under this Agreement or any other Loan Documents and any other
certificate, determination, notification or opinion of the Lender provided for
in this Agreement or any other Loan Documents shall, in the absence of manifest
error, be conclusive evidence that such sum is so payable or as to any other
matter covered thereby.

18.  ASSIGNMENT

18.1 This Agreement shall enure to the benefit of the parties hereto and their
respective permitted successors, assigns and transferees.

18.2 The Borrower shall not assign or transfer any or all of its rights or
obligations under this Agreement without prior written approval of the Lender.

18.3 (A) The Lender may at any time transfer by assignment or novation to any
one or more parties all or any part of its rights and benefits and/or of its
obligations under this Agreement and in that event the transferee shall have the
same rights and/or obligations (as the case may be) hereunder as it would have
had if it had been a party hereto.

     (B) In the case of the transfer of all or part of the Lender's obligations
hereunder, the Borrower, the transferee and the Lender shall, at no cost to the
Borrower, execute a novation agreement under which the Lender is released from
its obligations or the part thereof transferred and the transferee assumes the
obligations of the Lender or the part thereof transferred.
<PAGE>   22
18.4 The Lender may disclose to a potential transferee or any other person
proposing to enter into contractual arrangements with the Lender in relation to
any or all of the Loan Documents such information about the Covenantors and this
transaction as it may think fit.

19.  REMEDIES, ETC.

19.1 Time shall be of the essence of this Agreement, but no failure or delay on
the part of the Lender to exercise or enforce any right, remedy, power or
privilege hereunder will operate as a waiver thereof, nor will any single or
partial or defective exercise of any right, remedy, power or privilege preclude
any other or further exercise or enforcement thereof or the exercise of any
other right, remedy, power or privilege. No act or conduct or negotiation on the
part or on behalf of the Lender shall in any way preclude it from exercising any
right, remedy, power or privilege hereunder or constitute a suspension or any
variation of any such right, remedy, power or privilege save the act conduct or
negotiation is directly expressly made for such purposes(s). Any consent
required to be given under any provision hereof may be given subject to such
conditions as the Lender may specify. Any waiver or consent shall be effective
only in the instance and for the purpose for which it is given. The rights,
remedies, powers and privileges herein provided are cumulative, may be exercised
as often as the Lender considers appropriate and are not exclusive of any
rights, remedies, powers or privileges provided by law.

19.2 Any provision of this Agreement may be amended only if the Borrower and the
Lender so agree in writing and any Event of Default may be waived before or
after it occurs only if the Lender so agrees in writing.

19.3 This Agreement constitutes the entire agreement between the parties in
relation to the subject matter contained herein and supersedes any other prior
commitments agreements promises or understandings written or verbal that the
parties hereto hereinbefore may have had.

20.  COMMUNICATIONS

20.1 Any notice, consent, approval or other communication (collectively the
"communication") under this Agreement shall be made in writing but, unless
otherwise stated, may be made by facsimile or letter

<PAGE>   23
but, if by facsimile form the Borrower, shall promptly be confirmed by letter.

20.2 (A)  Each communication or document to be made or delivered to any party
under this Agreement shall be sent to that party at the facsimile number and/or
address from time to time designated by that party to the other party for the
purpose of this Agreement.

     (B)  Any communication or document form the Borrower pursuant to this
          Agreement shall be irrevocable and shall not be effective until
          received by the Lender. Any other communication or document shall be
          deemed to have been delivered when dispatched (in the case of any
          communication made by facsimile) or (in the case of any communication
          made by letter) when left at that address or (as the case may be) when
          deposited in the post first class postage prepaid in a duly addressed
          envelope.

21.  PARTIAL INVALIDITY

     The illegality, invalidity or unenforceability of any provision of this
Agreement or of any other Loan Documents under the law of any jurisdiction shall
not affect its legality, validity or enforceability under the laws of any other
jurisdiction nor the legality, validity or enforceability of any other
provision.

22.  COUNTERPARTS

     This Agreement may be signed in any number of counterparts, all of which
taken together and when delivered to the Lender each of which shall constitute
one and the same respective instrument.

23.  GOVERNING LAW

23.1 This Agreement shall be governed by and construed in accordance with the
laws of Hong Kong. The parties hereto hereby submit to the non-exclusive
jurisdiction of the Hong Kong Courts.
<PAGE>   24
23.2 The submission of the parties hereto to the jurisdiction of the Hong Kong
courts shall not restrict the right of the Lender to take proceedings in
connection with this Agreement in any other courts having, claiming or accepting
jurisdiction in respect of matters pertaining to this Agreement, nor shall the
taking of proceedings in any one or more jurisdictions preclude the taking of
proceedings in any other jurisdiction whether concurrently or not.

23.3 To the extent that the Borrower may in any jurisdiction claim for itself or
its present or future assets any immunity (including immunity from suit or other
legal process), and to the extent that in any jurisdiction there may be
attributed such immunity (whether or not claimed), the Borrower hereby
irrevocably undertakes not to claim and hereby irrevocably waives all such
immunity.

23.4 The Borrower hereby irrevocably consents to the granting of any relief
and/or the issue of any process in connection with any legal action or
proceedings in connection with the Loan Documents, including the making,
enforcement or execution of any judgment or order against any of the property,
assets or revenues of the Borrower whatsoever.

     IN WITNESS WHEREOF this Agreement has been duly executed on the date first
above written.
<PAGE>   25
                                   SCHEDULE 1
                            Interpretation (Clause 1)

Section (1)

     In this Agreement, unless the context otherwise requires:

          "AGREEMENT" means this Agreement together with the Schedules hereto as
          the same may from time to time be amended, modified, supplemented or
          varied in accordance with Clause 19.2;

          "AVAILABILITY PERIOD" means the period commencing on the date of this
          Agreement and ending on the date falling seven (7) days after the date
          of this Agreement;

          "BUSINESS DAY" means a day (other than a Saturday) on which banks are
          open for business in Hong Kong;

          "COVENANTORS" means the parties to the Loan Documents other than the
          Lender and "Covenantor" means any or a specific one of the
          Covenantors;

          "DISPOSE" means to make or to agree to make, and

          "DISPOSAL" means any sale, assignment, exchange, transfer, concession,
          loan, lease, surrender of lease, direct or indirect reservation,
          waiver, compromise, release, dealing with or in or granting of any
          option, right of first refusal or other right or interest whatsoever
          or any agreement for any of the same and "DISPONEE" shall be construed
          accordingly;

          "ENCUMBRANCE(s)" means any mortgage, charge, pledge, lien (other than
          a lien arising by statute or operation of law) or other encumbrance,
          priority or security interest, deferred purchase, title retention,
          leasing, sale-and-repurchase or sale-and -leaseback arrangement
          whatsoever over or in any property, assets or rights or interest of
          whatsoever nature and includes any agreement for any of the same;
<PAGE>   26
          "EVENT OF DEFAULT" means any one of the events or circumstances
          specified in Clause 14.1;

          "FACILITY" means the loan facility to be made available under this
          Agreement and described in Clause 2.1;

          "GUARANTEE" means the guarantee in the form attached hereto as Exhibit
          "A" (or such other form and substance as the Lender may require) to be
          executed by the Guarantor in favour of the Lender as the same may from
          time to time be amended, modified, supplemented or varied;

          "GUARANTOR" means Chu Thomas Yan Chuen, holder of Hong Kong
          Identity Card No. E184420(6);

          "HONG KONG" means the Hong Kong Special Administrative Region of the
          People's Republic of China;

          "HK DOLLARS" or "HK$" means the lawful currency for the time being of
          Hong Kong;

          "INDEBTEDNESS" means:

               (a)  any indebtedness or other obligation (actual or contingent,
                    present or future, secured or unsecured, as principal ,
                    surety or otherwise) for or in respect of the payment or
                    repayment of money borrowed, or raised by whatever mean;

               (b)  the deferred purchase price of property or assets;

               (c)  any guarantee or indemnity in respect of Indebtedness
                    described in sub-paragraphs (a), (b), (d), (e), (f) and (g)
                    of this definition;

               (d)  all amounts for the time being outstanding under any
                    acceptance credit or other bill of exchange or
<PAGE>   27
                    promissory note;

               (e)  any rental or hire payable in respect of any asset or
                    property, whether accrued or contingent;

               (f)  any actual liability incurred in respect of interest and/or
                    foreign exchange hedging arrangements; and

               (g)  any indebtedness incurred under any other commercial
                    transaction,

               and in relation to any person includes any indebtedness in
               respect of which it has created an Encumbrance or given a
               guarantee or indemnity;

          "LOAN" means the amount outstanding and owing to the Lender from time
          to time under the Facility;

          "LOAN DOCUMENT(S)" means this Agreement, the Guarantee and any further
          securities, charges, instruments or documents as any of the same may
          from time to time be amended, modified, supplemented or varied which
          are given or taken as security for or with respect to the Obligations;

          "MATURITY DATE" means 15th October, 2001;

          "NOTICE OF DRAWDOWN" means a notice in the form set out in Schedule 3
          to be given by the Borrower to the Lender whenever it wishes to make a
          drawdown under the Facility;

          "OBLIGATIONS" means the Loan and interest thereon and all other monies
          due or to become due from, or for the time being owing by, the
          Borrower to the Lender under the Loan Documents (or any part thereof)
          and all costs, charges and expenses incurred in connection with the
          preservation, enforcement or exercise or intended or attempted
          exercise of any right, power or remedy under the Loan Documents or any
          part thereof.
<PAGE>   28
Section (2)

     Unless the context requires otherwise, any reference in this Agreement to:

          An "AGREEMENT" also includes a concession, contract, deed, franchise,
          licence, treaty or undertaking and any waiver or release (in each
          case, whether oral, written, implied or by operation of law) and
          includes the same as from time to time amended, modified, supplemented
          or varied;

          "ANY COLLECTIVE DEFINITION" shall be to the persons or things
          comprising it as a whole or to any one or more of them or to any part
          of the relevant thing or matter;

          "ANY PARTY" to the Loan Documents or any other agreement shall be to
          it and its permitted successors, assigns, and personal
          representatives;

          the "ASSETS" of any person shall be construed as reference to the
          whole or any part of its business, undertaking, property, assets,
          rights and revenues (including any right to receive revenues);

          a "CONSENT" also includes an approval, authorization, exemption,
          filing, licence, order, permission, recording or registration (and
          references to "OBTAINING CONSENT" shall be construed accordingly);

          one person being "CONTROLLED" by another means that (i) that other
          (whether directly or indirectly and whether by the ownership of share
          capital, the possession of voting power, contract or otherwise) has
          the power to appoint and/or remove the majority of the members of the
          governing body of that person, (ii) the person being controlled acts
          or is accustomed to act in accordance with the instructions of that
          other or (iii) that other otherwise controls or has the power to
          control the affairs and policies of that person;
<PAGE>   29
          a "DIRECTIVE" includes any present or future directive, policy,
          regulation, request, requirement, or credit restraint programme (in
          each case, whether or not having the force of law but, it not having
          force of law, compliance with which is in accordance with the general
          practice of the person to whom the directive is addressed);

          a "GUARANTEE" also includes any other obligation (whatever called) of
          any person to pay, purchase, provide funds (whether by the advance of
          money, the purchase of or subscription for shares or other securities,
          the purchase of assets or services, or otherwise) for the payment of,
          indemnify against the consequences of default in the payment of, or
          otherwise be responsible for, any indebtedness of any other person;

          a "LAW" includes common or customary law and any constitution, decree,
          judgment, legislation, order, ordinance, regulation, statute, treaty
          or other legislative measure, in each case of any jurisdiction
          whatever (and "LAWFUL" and "UNLAWFUL" shall be construed accordingly);

          something having a "MATERIAL ADVERSE EFFECT" on a person is a
          reference to it having a material adverse effect (a) on that person's
          financial condition or business or operations or (b) on its ability to
          perform and comply with its obligations under the Loan Documents;

          "MATERIALITY" in respect of any matter, thing or circumstance or to
          any matter, thing or circumstance being "MATERIAL" is, subject as
          otherwise provided in this schedule, to that matter, thing or
          circumstance being considered by the lender of significance or having
          or being likely to have in the reasonable opinion of the Lender a
          consequence or effect in the context of the relevant situation;

          any matter, warranty or obligation being correct, performed
<PAGE>   30
          or satisfied in "ANY MATERIAL RESPECT" or "IN ALL MATERIAL RESPECTS"
          is to that matter, warranty or obligation being substantially correct,
          performed or satisfied to the extent that in the reasonable opinion of
          the Lender there has been no inaccuracy or omission which, in the
          relevant circumstances, is of significance or has or may have any
          effect or consequence;

          a "MONTH" means a period commencing on a day in a calendar month and
          ending on the corresponding day in the next calendar month or, if
          there is none, ending on the last day of the next calendar month;

          any "OBLIGATION" of any party under the Loan Documents shall be
          construed as a reference to any obligation expressed to be assumed by
          or imposed on it under the Loan Documents (and "DUE", "OWING",
          "PAYABLE" and "RECEIVABLE" shall be similarly construed);

          a "PERSON" includes any individual, company, corporation, firm,
          partnership, joint venture, association, organization, trust, state or
          agency of a state (in each case, whether or not having a separate
          legal personality) and reference to any of the same shall include a
          reference to the others;

          "SUBSIDIARY", "HOLDING COMPANY" and "GROUP OF COMPANIES" shall bear
          the meanings given by the Companies Ordinance (chapter 32 of the Laws
          of Hong Kong) and "associated company" shall mean any company (not
          being a subsidiary) of which a person shall, whether directly or
          indirectly, beneficially own twenty per cent. (20%) or more of its
          issued share capital;

          "TAX(ES)" includes any present or future tax, levy, impost, stamp and
          other duty, governmental and other charge or filing and other fee, (or
          any deduction or withholding on account of any of the foregoing) of
          any nature and whatever called, by whomsoever, on whomsoever and
          wherever
<PAGE>   31
          imposed, levied, collected, withheld, deducted or assessed;

          "TAX ON THE OVERALL NET INCOME" of a person shall be construed as a
          reference to tax imposed by the jurisdiction in which its principal
          office is located on all or part of the net income, profits or gains
          of that person (whether worldwide, or only insofar as such income,
          profits or gains are considered to arise in or to relate to a
          particular jurisdiction, or otherwise);

          "TIME" is to Hong Kong time unless otherwise stated; and

          "WORDS" denoting the singular shall include the plural (and vice
          versa) and any reference to the neuter gender shall include a
          reference to the masculine and the feminine genders (and vice versa).

Section (3)

     In this Agreement clause headings and the index have been inserted for
reference only and shall not affect construction or interpretation.

Section (4)

     In this Agreement,

          (a)  references to Recitals, Clauses and Schedules and Exhibits are
               references to recitals to, clauses of, schedules and exhibits to,
               this Agreement;

          (b)  references to Sub-clauses and Paragraphs are, unless otherwise
               stated, references to sub-clauses and paragraphs of the Clause or
               sub-clause in which the reference appears;

          (c)  references to Sub-paragraphs are, unless otherwise stated,
               references to sub-paragraphs of the Paragraph
<PAGE>   32
               in which the reference appears;

          (d)  the words "herein", "hereof", "hereunder" and words of similar
               import shall be construed as references to this Agreement as a
               whole and not to the particular provision in which the relevant
               reference appears;

          (e)  references to (or to any specific provision of) this Agreement or
               any other document (including, but not limited to, any Loan
               Document) shall be construed as references to this Agreement,
               that provision or that document as amended, modified,
               supplemented or varied from time to time with the agreement of
               the relevant parties and the prior written consent of the Lender
               and in force at any relevant time.

Section (5)

          References in this Agreement to any ordinance, enactment, rule, law,
          directive or regulation include such ordinance, enactment, rule, law,
          directive or regulation as modified, consolidated, extended or
          re-enacted and include subsidiary legislation made thereunder.
<PAGE>   33
                                   SCHEDULE 2

CONDITIONS PRECEDENT

1.   A certificate issued by a director of the Borrower incorporating:

     (a)  a certified true copy of its Certificate of Incorporation on Change of
          Name, Memorandum and articles of Association and current Business
          Registration Certificate;

     (b)  resolution of its board of directors authorizing execution and
          performance of the Loan Documents to which it is or will be a party;

     (c)  a statement as to its incumbent directors; and

     (d)  specimen signatures of the persons authorized on its behalf to execute
          the Loan Documents to which it is or will be a party and any documents
          and communications ancillary thereto, including where applicable the
          Notice of Drawdown;

2.   The Guarantee duly executed by the Guarantor; and

3.   Such other documents as the Lender's legal advisers shall stipulate should
     properly be provided prior to the drawdown of the Facility or which the
     Lender may reasonably require.
<PAGE>   34
                                   SCHEDULE 3

NOTICE OF DRAWDOWN

From  :   Supply Chain Services Limited
          as Borrower

To    :   Digital World Finance Limited
          as Lender

Dear Sirs,                                         ,2001
<PAGE>   35
                            HK$2,000,000.00 Facility
LOAN AGREEMENT DATED                                            , 2001

     We refer to the above Loan Agreement (the "Agreement").

     Terms and expressions defined in the Agreement shall have the same meanings
when used in this notice, save where the context otherwise requires.

     We hereby give you irrevocable notice that we wish to drawdown
HK$2,000,000.00 under the Facility on [Note#] or, if that is not a Business Day,
on the next succeeding Business Day.

     We confirm that as at the date hereof and on the proposed date of drawdown
the representations and warranties in the Agreement are and, as the case may be,
will be true and accurate and no event or circumstance which is or may
constitute or become (with the giving of notice and/or lapse of time and/or
fulfillment of any condition) and Event of Default has occurred or will occur as
a result of the drawdown under the Facility hereby requested.

                                            For and on behalf of

                                            ------------------------------------
                                            Authorised signatory -- Director

Note:
(#) Insert date of proposed drawdown
<PAGE>   36
SIGNED by Chu Thomas Yan Chuen           )  /s/ Chu Thomas Yan Chuen
For and on behalf of                     )
SUPPLY CHAIN SERVICES LIMITED            )

in the presence of: / whose signature is
verified by: /s/ Jerry W.L. Yip

Witness: Jerry W.L. Yip
Address: 31 New Henry House, 10 Ice House Street, Central, Hong Kong
Occupation: solicitor, Hong Kong SAR

SIGNED by Chan Tak Hung                  )  /s/ Chan Tak Hung
For and on behalf of                     )
DIGITAL WORLD FINANCE LIMITED            )

in the presence of: /s/ Jerry W.L. Yip

Witness: Jerry W.L. Yip
Address: 31 New Henry House, 10 Ice House Street, Central, Hong Kong
Occupation: Solicitor, Hong Kong SAR

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