----

|  Premise              | Venue    |   |   | Area      |   | Unit      Price | Total      Rent | Purpose           |   |   | Note   |   |
|----------------------------|----------|--------|--------|-----------|--------|-----------------|-----------------|-------------------|--------|--------|--------|--------|
|  Name                 |     |   |   | (M2)      |   | (RMB/M2/Month)  | (RMB)           | of  Use |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |
|  Factory      premise | Gutangao |   |   | 13,929.28 |   | 8.5             | 118,398.88      |              |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |
|  Dormitory            | Gutangao |   |   | 5,198.59  |   | 7.5             | 38,989.43       |              |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |
|  Open      space      | Gutangao |   |   | 1,1095.37 |   | 2.82            | 31,207.22       |              |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |
|  Total                |     |   |   |      |   |            | 188,595.53      |              |   |   |   |   |
|                       |     |   |   |      |   |            |            |              |   |   |   |   |

|   | 1. | The      lease term is 3 years, which      shall be from January1, 2008 to December31, 2010. |
|--------|----|----------------------------------------------------------------------------------------------|

|   | 2. | During      this lease term, the rent shall be adjusted based on previous year’s rent.      The adjustment shall begin on January1, 2008. The      adjustment rate for both year 2009 and 2010 is temporarily set to 6% (Next      year’s rent shall be determined by both parties in    October). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 1. | Party      B shall be responsible for the installation of the 1 KVA power      supply equipments. Upon the expiration or termination of this agreement,      Party B can take away the aforementioned equipments, or offer a price to      sell them to Party A. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Party      B shall not alter the power wires, or the water pipelines without Party      A’s approval. Party B shall not overuse the power of water, and he shall      undertake all the responsibilities and make up the loss of Party A which      is caused by such overuse of power andwater. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Party      A shall be responsible for the water and power supply for the      aforementioned factory premises and dormitories (except for the failures      due to power or water service providers’ problems, or other unexpected      events). |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Party      A shall be responsible for the security and hygiene management in the      industrial area. Party B shall pay to Party A a monthly fee based on the      actual total areas of the leasing premises. The security fee is RMB      l/m2/month,      and the hygiene maintenance fee is RMB l/m2/month.      The security fee and the hygiene maintenance fee shall be paid to the      property management company before the 10th      day every month. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      security and hygiene management within the aforementioned leasing      properties, such as factory premises, dormitories, and open space, shall      be Party B’s responsibility. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Party      B shall be responsible for the production safety and management, and shall      undertake all the responsibilities and make up the loss of Party A or      third parties which is caused by accidents during    production. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Party      A shall have the right to enter the leasing factory premises, dormitories,      and open space periodically or randomly to conduct safety inspections.      Party B shall cooperate with Party A with such inspections. Shall any      safety risks be identified, Party B shall take immediate      actions. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | During      the lease term, if Party B needs to make modifications to the factory      premises or dormitories, Party B shall send a proposal to Party A before      such modifications take place. Party B shall not change the usage and      construction of the leasing items until Party B receives the approval from      Party A. If permitted, all expenses of the reformation or improvement      shall be undertaken by party B. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Before      Party A delivers the leasing premises to Party B, Party A shall make sure      that all premises and related facilities operate as expected. During the      lease term, Party B shall use the factory premises, dormitories, and other      related facilities with care, and be responsible for routine maintenance      and cleaning. In case of leaking or damage of the leasing premises due to      Party B’s inappropriate use or reformation, Party B shall make repairs      immediately. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | If      Party B’s production is seriously affected due to the defects of the      factory premises or dormitories, Party A shall take immediate action to      make repairs, and undertake all expenses of such  repairs. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | Upon      expiration of this agreement, if Party A accepts the improvements or      reformations made by Party B, Party B shall hand over such improvements or      reformations to Party A free of charge. If Party A doesn’t accept them,      party B shall be responsible for restoring the premises to their original      state. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Within      one month after the expiration date, Party B shall move its equipments and      resources out of the factory premises. All Party B’s workers shall not      enter the factory premises. Party B shall make repairs to damaged      premises, and deliver the leasing premises to Party A after both parties      finish the inspection. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | During      the lease term, in case the rent is 7 working days overdue, Party B shall      pay to Party A a penalty fee of 0.05% of the total overdue rent every day      (excluding the seven working day grace period). If Party B fails to make      payment of the rent in full for more than two consecutive months, Party A      has the right to unilaterally terminate this agreement, to order Party B      to pay all outstanding rent and/or other fees, and to ask Party B to pay a      penalty fee that is equivalent to three months’ rent. After Party A      notifies Party B, Party A has the right to cut the supply of water and      power. Party B shall be responsible for its own loss due to such water or      power outage. Party A also has the right to ask Party B to move all its      equipments and resources out of the factory premises and the open space,      and to give the factory premises, dormitories, and open space back to      Party A. If Party B fails to move its equipments and resources from the      factory premises, dormitories, and open space after one month, Party A has      the right to posses the aforementioned equipments and      resources. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Party      B shall pay the utility fee on time. In case the utility fee is 7 working      days overdue, Party B shall pay to Party A a penalty fee of 0.05% of the      total overdue utility fee every day (excluding the seven working day grace      period). Party A has the right to cut the supply of power and/or water      shall Party B fail to pay the utility fee for more than 1 consecutive      month, and has the right to unilaterally terminate this agreement shall      Party B fail to pay the utility fee for more than 2 consecutive      months. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | During      the lease term, any party who unilaterally terminates the agreement, the      breaching party shall pay to the other party a penalty fee that is      equivalent to three month’s rent. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | All      leasing premises, including the factory premises, dormitories, and open      space, shall be used only for the purposes in accordance with this      agreement. Party B shall not change the purpose of use, or sublease them      to a third party. Otherwise, Party A has the right to unilaterally      terminate the agreement. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Party      A shall be responsible for Party B’s loss due to the defects of the body      and/or structure of the leasingpremises. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | During      the lease term, both parties shall be responsible for its own loss due to      force majeure. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | 2. | Party      B should cover insurance for the leasing factory premises and dormitories.      Otherwise, Party B shall undertake the loss to Party A, if Party B fails      to cover the insurance. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | In      case of anything not covered here, it shall be settled by both parties      through consultation. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | 4. | This      agreement shall be written in two originals. Each party shall hold one of      them. This agreement shall be effective as of the date of      signature. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   |                                                          |
|----------------------------------------------|--------|---------------------------------------------------------------|
| Party      A: Desai (Huizhou) Group Co., Ltd |   | Party      B: Merik Circuits (Huizhou) Co., Ltd.              |
|                                         |   |                                                          |
| Represented      by:                         |   | Represented      by: (SIGNATURE)                              |
|                                         |   |                                                          |
|                                         |   | [Official      seal of MerikCircuits      (Huizhou) Co., Ltd] |