Document:

exv4w9

 

EXHIBIT 4.9

Contract on Investment Project

Party A: Shezhen Baoan District High and New Technology Industrial Park Development and
Investment Co., Ltd.

Address: Floor 13, Jingfa Building, Baocheng 6th Zone, Baoan District, Shenzhen City
Legal Representative: Long Yaoting

Party B: Zastron Electronic (Shenzhen). Co. Ltd.

Address: Zhuao Industrial Village, Gushu, Xinan Town, Baoan District, Shenzhen City

Legal Representative: Lei Lai Fong 

In accordance with the stipulations and requirements of Shenzhen City and Baoan District concerning
the enterprises’ entry into the High and New Technology Industrial Park (hereinafter called as “the
Park”), as well as with reference to Regulations on High and New Technology Industrial Park of
Shenzhen Special Economic Zone, Party A agrees that Party B invests on establishing Zastron
Electronic Product Production Base Project in Guangming High and New Technology Industrial
Park, Baoan District, Shenzhen City. Through friendly consultations, Party A and Party B have
entered into the contract concerning Party B’s entry into the park and investment, which shall be
commonly abided by.

	1.	 	Project Name: Zastron Electronic Product Production Base.
	 
	2.	 	Project Location: Guangming High and New Technology Industrial Park, Baoan District,
Shenzhen City, Guangdong Province.
	 
	3.	 	Investment Amount: the total investment of the project amounts to 2,597,000,000 RMB
Yuan.
	 
	4.	 	Scope of Operations: production and operation of color LCD display modules, mobile phones
and RF (Radio Frequency) modules, digital audio modules and multi-media broadcasting
receivers, and other products.
	 
	5.	 	Rights and Obligations of Party A:

     In line with the spirit of Shen Chan Ye Dai Ban Han [2006] No. 6 Document of Shenzhen
City, Party A plans to supply Party B with a plot for the use of high and new technology projects,
which is located in Guangming High and New Technology Industrial Park, Baoan District with
an area of approximately 120,000 square meters.

     Party A shall supply water, drainage, sewage, electricity, gas, telecommunication, municipal
planning and public roads within the park as well as other supporting infrastructures to outside
the red line of the plot for the use of Party B.

     Party A shall assist Party B in handling project construction reporting and approval and other
relevant procedures.

     After Party B pays in full the advance payment for comprehensive compensation on park
development according to the regulations of the contract, Party A shall handle the procedures
relating to the entry of Party B into the park in compliance with the process and the laws.

 

 

     The comprehensive compensation on park development, which is collected by Party A, shall be
used for the development and construction of the park according to the relevant regulations from
Baoan District People’s Government, so as to construct sound production and living environments for
Party B.

     Party A shall be entitled to hold Party B from the act of illegally using the land and
constructing.

     Party A can provide Party B with the property management service upon the completion of the
plant area, with the service contracts being entered into otherwise.

	6.	 	Rights and Obligations of Party B:

     Party B shall bear by itself the funds required for the project construction, conduct project
construction and production management according to the laws, operate independently as well as
assume sole responsibility for its own profits and losses.

     The enterprise and project of Party B must conform to the stipulations set forth in Article 33
of Regulations on High and New Technology Industrial Park of Shenzhen Special Economic Zone before
it can access the park.

     Party B promises that the project shall be completed and put into production in 2
years since the date of signing The Contract on Transfer of Land Use Rights. Within 12
months after the project is put into operation, every ten thousand square meters of land shall
have an annual output value of more than 100,000,000 RMB Yuan, as well as an annual industrial
value added of more than 22,000,000 RMB Yuan.

     Party B shall pay to Party A the comprehensive compensation on park development as per the
standard of 100 RMB Yuan per square meter of land for use of high and new technology
projects. The land use area shall be governed by the red line range approved by the land
administration department.

     The method of payment on comprehensive compensation of park development: Within ten days since
the signature of the contract, Party B shall make one-off advance payment of comprehensive
compensation on park development totaling 12,000,000 RMB Yuan, as per 120,000
square meters, which recommended project land area is reviewed and determined by Management Office
of Baoan District High and New Technology Industrial Park (hereinafter called as “High/New-tech
Office”), to the account designated by Party A. The actual amount payable of comprehensive
compensation on park development shall be settled, as per the land area approved by the land
administration department, within 10 days after the approval on land use from the land
administration department as well as in line with “refund for any over-payment or a supplemental
payment for any deficiency”.

     The enterprise or project, which is invested and established by Party B within the park of
Baoan District, must be registered in the place where the park is in as well as pay taxes according
to the laws.

     Party B shall have its own responsibility for the plan and construction of the projects within
the scope of red line of land use provided that it obeys the overall plan of the park. No fences
shall be built within the park. The project planning and architecture form designs must get the
approval from the High/New-tech Office as well as be reported for approval to the governmental
administrations before the start of construction.

 

 

     If Party B wishes to set up outdoor advertisements and logos within the park, it should be
reported to High/New-tech Office for initial review. After passing the initial review, it shall be
reported to the relevant governmental administration for approval.

     Party B shall regularly inform Party A on construction statuses, abide by the regulations
relating to the park management, as well as submit statistical reports to the governmental
statistical department and the park management administration department after the project is
completed and put into production.

     If Party B has not completed 25% of the investment amount on the building beyond one year
since the date of signing Contract on Transfer of Land Use Rights on the project-use land in the
park, Party A can advise the land administration department of canceling the Contract on Transfer
of Land Use Rights, returning the original land prices and the principal of comprehensive
compensation on the park development already paid, as well as handling the aboveground building and
attachments according to the laws.

     Party B shall not transfer or rent the land as well as its aboveground buildings. Really
required transfer, in case of bankruptcy, settlement, voluntary or forcible exit from the park and
so on, shall be handled according to the regulations in Article 29 of Regulations on High and New
Technology Industrial Park of Shenzhen Special Economic Zone as well as relevant stipulations in
Rules and Regulations on Transfer of Land Use Rights of Shenzhen Special Economic Zone.

     Party B shall be entitled to entrust Party A to conduct property management over its
self-built plant area, and pay to Party A the property management fees as per the agreement by both
parties as well as relevant regulations of the park.

7. Liabilities for Breach of Contract

     If Party B illegally changes the land use within the park or illegally transfer or rent the
real estate in the park, Park A shall advise that the land administration department should punish
Party B according to Rules and Regulations on Transfer of Land Use Rights of Shenzhen Special
Economic Zone. Moreover, if the land administration department should take back the land use rights
consequently, the comprehensive compensation on park development collected by Party A shall not be
returned, too.

     If the enterprise or project of Party B exits the park in case of Article 41 of Rules and
Regulations on Transfer of Land Use Rights of Shenzhen Special Economic Zone, Party B shall bear
its losses by its own, and Party A shall not return the comprehensive compensation on park
development paid by Party B.

     Party B should not delay in making advance payments on comprehensive compensation on park
development, and the contract will be automatically cancelled in case of thirty-day delay.

     If the project fails to reach the annual production output as schedule stipulated in Article
6.3 hereunder after being completed and put into operation, Party B agrees to pay to Party A the
compensation fee on municipal infrastructure investment by 5 per thousand of the actual balance of
unreached industrial value added every year since the agreed year, until it reached the stipulated
annual industrial value added.

     In case of failure to meet the annual industrial value added as stipulated in Article 6.3
hereunder as scheduled after the project is completed and put into operation, Party B agrees to

 

 

pay to Party A the compensation for municipal infrastructure investment by 5 ‰ of the actual
difference of unaccomplished industrial value added annually since the agreed year, until the
industrial value added on the agreed year is reached.

	8.	 	Method of Dispute Settlement:

Any disputes arising out of the contract shall be settled by both parities through consultations.
In case that no agreement is reached, the dispute shall be submitted to Shenzhen Arbitration
Council for arbitration according to the rules of arbitration.

	9.	 	Validity:

This contract shall be entered into in quadruplicate to equal legal validity, with both Party A and
Party B holding two copies. This contract shall be effective since the date when both parties sign
and stamp.

Other matters not provided in the contract can be settled by both parties through friendly
consultations. Parties hereto may enter into supplementary agreements, which shall bear the equal
legal effect with the contract.

	Party A (Stamp): Shezhen Baoan District High and New Technology Industrial Park Development and
Investment Co., Ltd.
	 
	Legal Representative or its Authorized Representative (Signature): Long Yaoting
Date: Mar. 14, 2006

Party B (Stamp): Zastron Electronic (Shenzhen). Co. Ltd.

Legal Representative or its Authorized Representative (Signature): Lei Lai Fong

Date: Mar. 14, 2006exv4w10

 

Exhibit 4.10

OUR REF: AOC-CMB-SZN (FZ) (060710).AP

CONFIDENTIAL

Zastron Electronic (Shenzhen) Company Limited

Gusu Industrial Estate,

Xixiang, Baoan,

Shenzhen, PRC

17 July 2006

Attn: Mr. Horace Lai and Mr. Steve Phoon

Dear Sirs

Banking Facilities

Customer No. 002-095495

With reference to our recent discussion, we are pleased to advise that we have reviewed your
banking facilities and offer a renewal within the following limit which will be made available on
the specific terms ad conditions outlined herein and upon the satisfactory completion of the
security detailed below. This facility is also subject to our customary overriding right of
suspension, withdrawal and repayment on demand, including the right to call for cash cover on
demand for prospective and contingent liabilities and to review at any time, and in any event, by
31 May 2007.

Facilities

	 	 	 	 	 	 	 
	 	 	New	 	Previous
	Tranche I    Import Facilities
	 	USD15,000,000.-	 	USD9,000,000.-
	Tranche II   Revolving loan Facilities
	 	NIL	 	USD10,000,000.-

	 	 	 	 	 	 	 
	 	 	New	 	Previous
	Tranche I            Import Facilities
	 	USD15,000,000.-	 	USD9,000,000.-
	Documentary Credits to your
Suppliers and Import Loan
Facilities in either US Dollars or
Foreign Currency (HKD or JPY) for
up to 120 days (Previously 90
days), less any usance / Credit
periods granted by your suppliers.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	within which
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Goods under your control and/or
Trust Receipts.
	 	(USD15,000,000.-)	 	(USD9,000,000.-)

 

 

			
	Zastron Electronic (Shenzhen) Company Limited
	 	17 July 2006

Interest

Interest rate on import loan continues to be charged at 0.55% per annum over 1, 2, 3 or 6 month
Hong Kong/Singapore/London Interbank Money Market Offer Rate and payable in arrears.

Commission

Documentary Credits opening commission for each validity of three months or part thereof
(minUSD24.00) continue to be charged as below and payable in full at the time of issuance of all
DCs.

	 	 	 	 	 
	For DC amount below USD100k or its equivalent
	 	 	0.12	%
	For DC amount between USD100k (USD100k inclusive) and USD250k or its equivalent
	 	 	0.10	%
	For DC amount between USD250k (USD250k inclusive) and USD400k or its equivalent
	 	 	0.08	%
	For DC amount above USD400k (USD400k inclusive) or its equivalent
	 	 	0.06	%

Default Interest

Please note that amounts, which are overdue or overlimit (as well as amounts demanded and not
paid) in respect of the facility will bear interest at 3% p.a. over the stipulated interest rate of
this facility, subject to fluctuation at the lender’s discretion.

Prepayment

The Borrower will pay the usual penalties (i.e. the differential between the return we would have
received had the loan run to maturity and the return we are able to obtain by the placing of the
funds repaid for the remainder of the existing interest period in the market).

Security

As security, currently we are holding the Corporate Guarantee for USD19,000,000.- from Nam Tai
Electronics, Inc. dated 22 July 2004 together with a certified copy of Board Resolution dated 22
July 2004.

For the revised facility, we shall require a Corporate Guarantee for USD15,000,000.00 from Nam Tai
Electronics, Inc. together with certified copy of a Board Resolution. Upon receipt of the fresh
replacement guarantee, we shall arrange the return of the previous guarantee dated 22 July 2004 at
your disposal.

Covenants

You, Zastron Electronic (Shenzhen) Company Limited (the “Borrower”), shall be required for so long
as these facilities are available to you to comply with the following covenants/undertakings. Your
compliance or otherwise with the following covenants/undertakings will not in any way prejudice or
affect our right to suspend, withdraw or make demand in respect of the whole or any part of the
facilities made available to you at any time. By signing this letter, you expressly acknowledge
that we may suspend, withdraw or make demand for repayment of the whole or any part of the
facilities at any time notwithstanding the fact that the following covenants/undertakings are
included in this letter and whether or not you are in breach of any such covenants/undertakings:

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	Zastron Electronic (Shenzhen) Company Limited
	 	17 July 2006

	1)	 	The Borrower undertakes that:

	 	(i)	 	upon the realisation of any foreign guarantee/security in respect of this Facility,
it shall conduct foreign debt registration with the local State Administration of Foreign
Exchange (“SAFE”) in a timely manner but in no event later than 15 days after realisation
of such foreign guarantee/security;
	 
	 	(ii)	 	to procure the successful registration with SAFE as mentioned in the foregoing item
(i), the Borrower shall ensure that it has sufficient borrowing gap at the time of the
registration of the realised foreign guarantee/security;
	 
	 	(iii)	 	throughout the term of the Facility and as long as the Facility is existing or any
indebtedness under the Facility is outstanding, the Borrower shall keep the Lender informed
of the amount of its borrowing gap (calculated as the balance of (i) its approved total
investment amount less (ii) its registered capital) and shall forthwith advise the Lender
of any change in the borrowing gap; and
	 
	 	(iv)	 	the Borrower shall take all necessary measures to ensure that all the indebtedness
owed to the Lender under this Facility be fully settled in the same currency as that of
such indebtedness.

Conditions Precedent

	1)	 	A valid Borrowing Card issued by the People’s Bank of China.
	 
	2)	 	Certified true copies of all government approvals and certificates in relation to the
establishment of the Borrower.
	 
	3)	 	The Borrower has provided its internal authorization document (such as shareholders’
resolution, board resolution) approving (or authorizing others to approve) the facilities
hereunder and authorizing representative(s) to accept and sign the terms, conditions and
documents in connection with the facilities hereunder in strict compliance with its articles
of association and the PRC Company Law.
	 
	4)	 	In the event that the Bank’s making available any facility hereunder is subject to regulatory
approval or the completion of other procedures within the regulators, the acquisition of such
regulatory approval and the completion of such procedures with regulators.
	 
	5)	 	The appendix to the facility letter, which relates to the Lender’s storage and processing of
customer’s information shall form an integral part of the facility letter and be
binding on the Borrower.
	 
	6)	 	The Bank is satisfied that all the securities stated in the “Security” item above have been
established and are valid and enforceable. The execution of all other documents as required by
the Bank.

Other Conditions

	1)	 	All present and future borrowings of the Borrower shall rank pari-passu with this facility
and the Borrower undertakes to advise the Lender in advance of any additional borrowings.
	 
	2)	 	Audited yearly financial statements of the Borrower and the Guarantor to be prepared by
qualified accountants shall be provided to the Lender whenever available but in any event no
later than 120 days from the financial year-ends.
	 
	3)	 	Other financial or operational information of the Borrower as from time to time reasonably
requested by the Lender.
	 
	4)	 	We may, at our sole and absolute discretion, refuse to allow drawings under the facilities if
the transaction in question does not meet our operational requirements in respect of these
facilities.

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	Zastron Electronic (Shenzhen) Company Limited
	 	17 July 2006

Termination Event

The Borrower undertakes to notify the Lender on any change of its shareholder percentage and,
without prejudice to the generality of the Lender’s overriding right of suspension, withdrawal and
repayment on demand at any time, the Lender shall have the right to terminate and withdraw the
Facility if Zastron Precision-Tech Limited’s beneficial interest in the Borrower is reduced to
below 50%.

Expenses

Please note that all costs and legal expenses, including PRC Stamp Duty payable on each original of
the signed facility letter, incurred by us in connection with the granting of this facility and any
matters arising are to be reimbursed by you on demand.

Taxation and Deduction

All payment of principal, interest, fees and other expenses shall be made by your company clear and
free of taxes, levies, imposts, duties, charges and withholdings of any nature whatsoever.

Governing Laws

The Laws of the People’s Republic of China. The Borrower agrees to submit to the non-exclusive
jurisdiction of the PRC courts.

Please note that we would reserve our right to renegotiate any of the interest margins and fees
detailed herein in the event of any change occurring in any applicable law or regulation (or its
interpretation) or in PRC’s financial markets or the need to comply with any requirement of any
regulatory authority (whether or not having the force of law), which resulted in our opinion in a
reduction in the net return to us from the facilities outlined herein.

Unless expressed in writing from you to the contrary, we may provide any information relating to
any of your accounts with us and any facilities we may provide to you from time to time or their
conduct or any other information concerning your relationship with us to any other company or
office which at the relevant time belongs to or is part of the HSBC group.

If the effect of any, or a change in any, law or regulation is to increase the cost of advancing,
maintaining or funding these facilities or to reduce the effective return to us, we reserve the
right to require payment on demand of such amounts as we consider necessary to compensate us
therefore, provided that such additional charges shall only be effective upon prior advance notice being given
by the Bank to you.

Notwithstanding anything to the contrary contained herein, the Bank may at any time and its
absolute discretion without discharging in any way your liabilities hereunder and under the
security documents to vary the terms herein including but not limited to the rate of interest,
additional interest, commission overdue interest, and other charges herein stated; and the amount
or form of the facilities granted so as to convert the existing facilities or cancel one or more
facilities or create two or more from the facilities (provided always at the applicable rate of
interest) and such as variation etc, shall take effect upon prior advance notice being given by the
Bank to you.

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	Zastron Electronic (Shenzhen) Company Limited
	 	17 July 2006

Availability of the facilities is subject to all legal and security documentation having been
completed to the satisfaction of the Bank. If the security documentation could not be perfected for
any reason whatsoever within a period of 3 months from the date of acceptance of this Letter of
Offer, the Bank reserves the right at its absolute discretion to withdraw the facilities offered
without further reference to you.

These facilities will remain open for acceptance until the close of business on
10August2006 and if not accepted by that date will be deemed to have lapsed. This Facility
Letter shall, on becoming effective, replace and supersede the facility letter dated 4 November
2005 from us to you.

We shall be grateful if you could arrange for the authorised signatories of your company, in
accordance with the terms of the Board Resolution to be given to the bank, to sign and return to us
the duplicate copy of this letter together with the required documents to signify your continuing
understanding and acceptance of the terms and conditions under which these facilities are granted.

We are pleased to be of continued service.

Yours faithfully,

For and on behalf of

The Hongkong and Shanghai Banking Corporation Limited, Shenzhen Branch

Faye Zhou

Vice President Commercial Banking /ap

Bcc: HSBC SZN Credit Operation

	 	 	 	 	 
	 

	 	Accepted by	 	 
	 

	 	Zastron Electronic (Shenzhen) Company Limited.	 	 
	 
	 	 	 	 
	 

	 	 

(Authorised signature with chop)
	 	 

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	Zastron Electronic (Shenzhen) Company Limited
	 	17 July 2006

Appendix

To make you better understand the Bank’s policy in respect of its storage and processing of any
information supplied by the potential or actual customers and/or other related individuals and
entities, the Bank makes the following statements:

	(a)	 	in connection with any proposed or existing transaction between you and the Bank, the Bank
may request you to supply (or arrange to supply) the Bank with information relating to
yourself(ves), your directors, shareholders or other officers, as well as proposed or actual
guarantors or security providers (if any) (the “Information”);

	(b)	 	such Information may be used by the Bank for the purpose of conducting credit and other
checks on you, evaluating any proposed, existing or past transaction between you and the Bank,
formulating an offer for any such proposed or existing transaction or for any other purpose
relating to any such transaction, and/or for the purpose of promoting, improving and
furthering the provision of other financial services by the Bank and any other member of the
HSBC Group to you generally, and/or for any other purpose as in accordance with the Bank’s
general policy on disclosure of information as may be notified to you from time to time;

	(c)	 	such Information will be kept confidential but the Bank may provide such Information to any
of the following parties for the purposes set out above (without the need to giving any
further notice to the individuals to whom such Information relates ):

	(i)	 	any agent, contractor or third party service provider (whether situated within or outside the
People’s Republic of China) which provides administrative, telecommunications, computer,
payment, processing or other services to the Bank in connection with the operation of its
business;

	(ii)	 	credit reference agencies;

	(iii)	 	any person to whom the Bank is under an obligation to make disclosure under the requirements
of any applicable laws, regulations, rules or judicial process;

	(iv)	 	any actual or proposed participant or sub-participant of any proposed or existing transaction
between you and the Bank;

	(v)	 	any of the Bank’s officers and employees;

	(d)	 	you shall ensure that all the persons as referred to in (a) above, whose personal or other
data have been included in the Information provided to the Bank, have consented to the
provision of such data to the Bank for such purposes and for disclosure to such persons as
referred to in this letter;

	(e)	 	if you maintain an account/accounts with the Bank, you shall be further subject to any
provisions in those terms and conditions applicable to such account(s) on the Bank’s storage
and processing of the customers’ and other information. These account terms and conditions,
the provisions referred to in this letter as well as any other agreement between you and the
Bank relating to the Bank’s storage and processing of the customers’ and other information
shall supplement, rather than conflict with, each other;

	(f)	 	the Bank may retain any such Information for any time period as it considers necessary or
desirable (whether or not you have ceased to be a customer or potential customer of the Bank),
and all the provisions in this letter shall remain effective during the whole retention period
of such Information.

The above-mentioned explanation is to make you have a better knowledge of the Bank’s data
privacy policies in respect of the information of the customers and other related persons/entities.
In any event, the Bank will remain responsible for ensuring the confidentiality of such
information. The Bank appreciates that you have selected, or are interested in selecting, the
Bank’s service, and we commit to providing you with more and more quality banking products and
services.

Yours sincerely

The Hongkong and Shanghai Banking Corporation Limited

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