Exhibit 10.2
HSBC [LOGO]
Commercial Banking - GP 3, Div M
(CARM 061013)
CONFIDENTIAL
Concord Camera HK Ltd
14/F ADP Pentagon Centre
98 Texaco Road
Tsuen Wan 18 October 2006
NEW TERRITORIES
Attn: Mr Paul Wong
Dear Sir
BANKING FACILITIES
A/C NO. 500-166012-001
With reference to our recent discussion, we confirm our agreement to extending
the following revised banking facilities to your company which will be made
available on the specific terms and conditions outlined below. These facilities
are subject to review at any time and, in any event by 15 June 2007, and also
subject to our overriding right of suspension, withdrawal and repayment on
demand, including the right to call for cash cover on demand for prospective and
contingent liabilities.
New Previously
--- ----------
Import Facilities USD4,700,000.- USD7,700,000.-
Documentary Credits to your suppliers and
Import Loan Facilities in either HK Dollars
or Foreign Currency for up to 120 days, less
any usance/credit periods granted by your
suppliers
within which (USD4,700,000.-) (USD7,700,000.-)
Goods under your control and/or Trust Receipts
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.
Security
As revised security, we continue to hold a charge over your deposit for
USD5,200,000.- (to be reduced from USD8,200,000.-) placed with us supported by
the Registered "Security Over Deposit" dated 27 January 2006 together with Board
Resolution dated 24 January 2006.
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The Hongkong and Shanghai Banking Corporation Limited
HSBC Main Building, 1 Queen's Road Central, Hong Kong
Tel: (852) 2822 1111 Fax: (852) 2899 8846
Telex:73205 HSBC HX Telegrams: Hongbank Hongkong
Web: www.hsbc.com.hk
Incorporated in the Hong Kong SAR with limited liability.
Registered at the Hong Kong Companies Registry No. 263876
HSBC [LOGO]
Concord Camera HK Ltd 18 October 2006
- --------------------------------------------------------------------------------
In the event of the value of the foreign currency deposit charged to us falling
below the required level and upon our request, you should immediately pledge to
us additional security acceptable to us to bring the value back to the
threshold.
Please note that all costs and expenses (including legal fees) incurred by us in
connection with the extension of these facilities and any matters arising are to
be reimbursed by you on demand.
Apart from the foregoing, all other terms and conditions relating to your
existing banking facilities remain unchanged as detailed in our letter of 11
July 2006.
Please arrange for the authorised signatories of your company, in accordance
with the terms of the mandate given to the Bank, to sign and return to us the
duplicate copy of this letter to signify your understanding and acceptance of
the terms and conditions under which these revised facilities are granted.
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.
Section 83 of the Banking Ordinance
Please note that Section 83 of the Banking Ordinance has imposed on us as a bank
certain limitations on advances to persons related to our directors or
employees. In acknowledging this facility letter you should advise us whether
you are in any way related to any of our directors or employees within the
meaning of Section 83 and in the absence of such advice we will assume that you
are not so related. We would also ask, should you become so related subsequent
to acknowledging this facility letter, that you immediately advise us in
writing.
These revised facilities will remain open for acceptance until the close of
business on 8 December 2006 and if not accepted by that date will be deemed to
have lapsed.
We are pleased to be of continued assistance.
Yours faithfully
For and On behalf of
CONCORD CAMERA HK LIMITED
/s/ Nancy Ling Paul Wong
/s/ Terence Li
Terence Li
Senior Vice President
/kk
Encl
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