PRIVATE AND CONFIDENTIAL

 

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EXHIBIT 10.1

                                                                       Standard

                                                                       Chartered

Date: 29 September 2005

                                                                       

 

PRIVATE AND CONFIDENTIAL

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

 

Comtech International (Hong Kong) Ltd.

Room 514, 5/F., Manhattan Centre,

8 Kwai Cheong Road,

Kwai Chung,

N.T.

Hong Kong

 

Attn:   Mr. Allen Wu

        Financial Controller

 

Dear Allen,

 

We are pleased to confirm that the following facilities were available to

Comtech International (Hong Kong) Limited as at 29 September 2005:

 

Overdraft                USD1,000,000

Trade Facilities         USD4,000,000

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

Total                    USD5,000,000

 

The facts above are given as at 29 September 2005 without any responsibility or

liability whatsoever on the part of the Bank or its officials for or in respect

of any of such facts or any defect in or omission from such facts.

 

 

Yours faithfully,

 

 

 

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

Derek Lee

Relationship Manager

Local Corporates

Standard Chartered Bank (Hong Kong) Limited

 

 

Accepted by

For and on behalf of

COMTECH INTERNATIONAL (HONG KONG) LIMITED

 

 

 

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

Authorized Signature(s)

Date: October 7, 2005

 

 

 

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                                                                       Standard

                                                                       Chartered

 

 

Date: 21st June 2005

Our Ref: CR/LC/TEAM3/BKC

 

 

CONFIDENTIAL

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

 

Comtech International (Hong Kong) Ltd.

Room 514, 5/F., Manhattan Centre,

8 Kwai Cheong Road,

Kwai Chung,

New Territories.

 

Attn:    Ms. Hope Ni, Chief Financial Officer/

         Mr. Allen Wu, Financial Controller

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

 

Dear Sirs,

                               BANKING FACILITIES

 

We, Standard Chartered Bank (Hong Kong) Limited, refer to our letter dated 11th

May 2005 together with the Bank's Standard Terms and Conditions for Banking

Facilities and Services (including the Trade Finance Supplement), which set out

the facilities made available to the Customer below (the "Existing Facility

Letter").

 

CUSTOMER:

 

Comtech International (Hong Kong) Ltd.

 

Following our recent discussions, we are pleased to confirm that the terms of

the facilities will be varied as follows:

 

The entire "COVENANTS AND UNDERTAKINGS" section is revised and replaced by the

following:

 

E.       COVENANTS AND UNDERTAKINGS:

 

The Customer undertakes to the Bank that it will:

 

1.       procure that all its obligations in connection with the Facilities will

         at all times rank at least pari passu in terms of security and support

         (including third party) with all its other present and future

         obligations.

 

2.       ensure share placement target of USD50,000,000.-, with a minimum

         achievable amount of USD20,000,000.-.

 

3.       promptly submit to the Bank:

 

         o        a certified copy of the audited financial statements of the

                  Customer within 9 months after its financial year end;

         o        a certified copy of the audited financial statements of

                  Comtech Group, Inc. within 120 days after its financial year

                  end;

         o        certified copies of the quarterly management accounts of the

                  Customer and Comtech Group, Inc. within 60 days after the end

                  of the relevant accounting period; and

         o        other information that the Bank may request from time to time.

 

 

                                      -1-

 

 

 

 

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CORNTECH INTERNATIONAL (HONG KONG) LTD.

 

 

4.       immediately inform the Bank:

 

         o        of any change of the Customer's directors or beneficial

                  shareholders or amendment to its memorandum or articles of

                  association or equivalent constitutional documents;

 

         o        of any substantial change to the general nature of the

                  Customer's existing business; or

 

         o        if it becomes, or is aware that any of its directors,

                  shareholders, partners or managers becomes, a Related Person

                  (as defined in paragraph 7 of section F of this letter).

 

The variations set out above will take effect when we have received:

 

o        the enclosed copy of this letter signed by a director on behalf of the

         customer.

 

Please sign the enclosed copy of this letter and return it to the Bank's Credit

Risk Control at 11th Floor, Standard Chartered Tower, 388 Kwun Tong Road, Kwun

Tong, Kowloon, for the attention of Mr. Stephen Wong, within one month after the

date of this letter. This letter will amend the terms of the Existing Facility

Letter which the Bank has issued to any of the Customer, as set out above. In

all other respects, the terms of the Existing Facility Letter and the Bank's

Standard Terms and Conditions for Banking Facilities and Services (including the

Trade Finance Supplement) will remain in full force and effect. This letter will

be governed by the laws of Hong Kong SAR.

 

If you have any queries, please contact our Relationship Manager Mr. Derek Lee,

whose telephone number is 2821-1813.

 

We are pleased to be of service to you and take this opportunity to thank you

again for your custom.

 

Yours faithfully,

For and on behalf of

STANDARD CHARTERED BANK (HONG KONG) LIMITED

 

/s/ Karie Leung

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

Karie Leung

Senior Credit Documentation Manager

 

KL/SW/dc

Encl.

 

 

 

 

Agreed

For and on behalf of

COMTECH INTERNATIONAL (HONG KONG) LTD.

 

 

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

DIRECTOR

 

 

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                                                                        Standard

                                                                       Chartered

Date: 11th May 2005

 

Our Ref: CR/LC/TEAM3/BKC

 

CONFIDENTIAL

 

Comtech International (Hong Kong) Ltd.

Room 514, 5/F., Manhattan Centre,

8 Kwai Cheong Road,

Kwai Chung,

New Territories.

 

Attn:    Ms. Hope Ni, Chief Financial Officer/

         Mr. Allen Wu, Financial Controller

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

 

Dear Sirs,

 

                               BANKING FACILITIES

 

Standard Chartered Bank (Hong Kong) Limited (the "Bank") is pleased to offer the

following banking facilities (the "Facilities") to the Customer below for the

purpose(s) of general working capital and trade finance requirement, subject to

the Bank's Standard Terms and Conditions for Banking Facilities and Services

(including the Trade Finance Supplement) attached and the terms and conditions

set out in this facility letter.

 

A.       CUSTOMER:

 

         Comtech International (Hong Kong) Ltd.

 

 

B.       FACILITY LIMITS:

 

<TABLE>

<S> <C>

         (1) GENERAL BANKING FACILITIES

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TYPE(S) OF FACILITY                            FACILITY LIMIT(S)        DESIGNATED CUSTOMER(S) AND SUB-

                                                                        LIMIT(S), IF APPLICABLE

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 1. Current Account Overdraft                  USD1,000,000.-           o The Customer

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 2. Trade Finance                              USD4,000,000.-                        -

   (PLEASE REFER TO APPENDIX 1 FOR

    PRODUCT DETAILS.)

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   (a) Trade Finance Group All                                          o The Customer (USD4,000,000.-)

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   (b) Trade Finance Group 1                                            o The Customer (USD4,000,000.-)

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

   (c) Trade Finance Group 2                                            o The Customer (USD4,000,000.-)

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