Exhibit 10.5
[LOGO] DahSingBank
Dah Sing Financial Centre
108 Gloucester Road,
Hong Kong
19th June, 2006
Private & Confidential
Concord Camera HK Limited
14/F., ADP Pentagon Centre,
98 Texaco Road,
Tsuen Wan
For kind attention of
Mr. Paul Wong
Dear Sirs,
Re: Banking Facilities
We have the pleasure
to inform you that we
are placing at your
disposal the
under-mentioned
banking facilities to
expire on 30th June, 2007 subject to the
following terms and conditions: -
OPENING OF
LETTERS OF CREDIT
&/OR
DRAFT LOAN (30 DAYS)
&/OR
NEGOTIATING EXPORT L/C WITH
LETTER OF
GUARANTEE
&/OR
OUTWARD BILLS LOAN (30 DAYS) ............ USD2,280,000.00
(equ HKDl7,784,000.00)
Within this line,
USDl,897,000.00 (equ HKD14,800,000.00) is available for Trust
Receipt (120 days)
&/or Invoice
Financing (120 days)
& / or Packing Loan (120
days) & / or Advance Against Receivable (120 days).
Interest
Rate:
Hong Kong
Dollar:
@1.5% p.a. over HK Inter-bank Offer Rate or
For US
Dollar:
@1.5% p.a. over London Inter-Bank Offer Rate;
Foreign
Currency:
@1.5% p.a over Base Rate.
Notes:
1.
Maximum
for D/L and T/R under one transaction is not to exceed 120
days.
2.
L/C
commission,
commission
in lieu of exchange and HKD bills
commission to be charged at:
-
1/4% for the first USD50,OOO.OO;
-
1/16% for the balance
3.
Packaging
loan is up to 80% of
export L/C
amount and tenor is
set
for 120 days from date
of advance
or expiry date of export L/C
whichever is earlier.
Cont./-
--------------------------------------------------------------------------------
Telephone: 2507 8866 Cable: Dahsingbank
Telex:
74063 DSB HX
Fax: 2598 5052 Website:
www.dahsing.com
<PAGE>
DahSingBank, Ltd
-2-
19th June, 2006
Concord Camera HK Limited
4. For
Invoice Financing, it is restricted to the following suppliers:
i.
Ability
Enterprise Co Limited
ii.
Gauss
Electronics Co Limited
iii.
Kin Sang Chemical
Limited
iv.
Shenzhen
Laiyinda Industrial Co Limited
v.
Golden
Eagle (Tianjin) Electronics Co Limited
5. For
Advance Against Receivable, maximum up to 90% of the sales invoices
to
the buyers
and documents no need
to send out through our Bank. It is also
restricted
to the buyer Boots (Retail Buying) Limited, England
TERMS
& CONDITIONS:
1)
Against
pledge of fixed deposit for not less than USD1,000,000.00 in
the name of Concord Camera HK Limited.
2)
Against
corporate guarantee of Concord Camera Corp., New Jersey, USA
for USD2,280,000.00.
3)
Audited
financial statements of the borrowing company and the
guaran
