**City        Gao Xin District Factory Lease Contract**

| Party A (Lessor)       | : He                Yuan City Advanced Technological Development District Co.                Ltd.                                                  |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| Corporate Body Rep     | : Lan                An   Position                : General Manager                                                                 |
| Address                | : He                Yuan City, Yuan Cheng Area, Bu Qian Zheng, Advanced Tech Dev                Office                                             |
| Telephone              | : 0762-3211806                                                                                                                                     |
|                   |                                                                                                                                                    |
| Party B (Tenant)  | : Hi-Lite                Camera Co. Ltd.                                                                                                           |
| Corporate Body Rep     | : Roland                Kohl  Position                : Director                                                                         |
| Address                | : Suite                No. 810, Level 8, Landmark North, 39 Lung Sum Avenue, Sheung Shui,                New                Territories, Hong Kong |
| Telephone              | : (852)                2344-4248                                                                                                                   |
| Facsimile              | : (852)                2343-4976                                                                                                                   |

**Clause        1 : Basic Condition of Building**

**Clause        2 : Use of Premise**

**Clause        3 : Period of Lease**

|   | 1. | The                  period of lease is from 1st                  June 2005                  to                  31st                  May 2008,                  totally three years. |
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|   | 2. | In                  order to facilitate Party B’s smooth invested production and its                  fundamental mutual benefit, Party A gives Party B a month’s free rental                  period for renovation of the Premise. |
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|   | 3. | When                  the Contract expires, Party B has to submit in writing on the renewal                  of                  contract two months in advance. Under the same conditions, Party                  B has the                  preferential right to rent it. |
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**Clause        4 : Rental Fee**

|   | 1. | The                  factory rental fee is calculated according to the gross area at                  Rmb                  7.00                  per sq.m./month. The monthly rental totally is Rmb                  17,597.00. |
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|   | 2. | Party                  A cannot raise up the rental standard within 3 years. When the                  Contract                  expires and Party B requests to renew, Party A may increase the                  rental fee                  according to the current market value and compromise with Party                  B. The                  renewal period is 3 years. |
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**Clause        5 : Payment Term**

|   | 1. | Within                  the first 7 days of the Contract period, Party B should pay Party                  A one                  month’s rental fee Rmb                  17,597.00                  as                  deposit. The deposit can be transferred as the rental fee for the                  first                  month. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | When                  the factory occupation right is transferred to Party B, Party B                  has to pay                  three month’s rental fee, totally Rmb                  52,791.00                  as                  deposit. |
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|   | 3. | Party                  B is required to pay the monthly rental fee before the 10th                  of                  each month. |
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**Clause        6 : Management Fee Within the Area**

**Clause        7 : Responsibilities of Both Parties**

**1.   Party        A        :**

|   | 1.1 | Party                  A should assist Party B to set up the factory in He Yuan City Advanced                  Technology Development District. Party A should eagerly develop                  the                  function of the Government Administrative Resources to create a                  good                  investment environment; harmonize all plannings; provide assistance                  on                  foreign trade, trade, industrial & commerce, taxation, territory,                  construction, programming, police, environmental protection, etc.                  administrative department in the process of approval on plans;                  Assist,                  support and offer preferential right to Party B in the land transfer                  and                  certificate, business certificate, electricity and water supply,                  construction approval, environmental approval, labour insurance                  etc;                  Guarantee Party B to enjoy the related preferential rights granted                  by                  HeYuan City to investors. |
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|   | 1.2 | Regarding                  the electricity and water supply of the Building, Party A is responsible                  for the high                  pressure circuit (10.5KV). Water pipes are built at the walls,                  but Party B                  should take care                  the other parts (e.g. high pressure cabinet, transformer, measurer,                  low                  pressure cabinet,                  high/low pressure electric cable, water ventilation pipes network                  within                  the Premise etc).                  Party B should authorize the qualified contractors to proceed on                  all                  installation works and                  bear all fees. If Party B moves out from the Building, Party B                  has the                  right to uninstall all                  facilities which are installed by Party B, but cannot damage the                  Building                  and related public facilities. |
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|   | 1.3 | For                  any problem or assistance encounter during the rental period by                  Party B,                  Party A should be fully cooperated and try the greatest effort                  to solve                  problems. |
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|   | 1.4 | When                  the Contract expires, Party A should give Party B a preferential                  lease                  right on renewal. If Party B does not renew, both sides should                  sign an                  agreement of cancellation of Contract. Party B can return the Premise                  and                  Party A will stop calculate the rental fee, and refund all deposits                  to                  Party B within 10 days. |
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**2.**
**Party        B :**

|   | 1.1 | Party                  B must obey the national law, rules, and the related government                  rules                  within the |
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|   | 1.2 | In                  the process of production, Party B should try its best to ensure                  the                  production safety, fire prevention, and strengthen the security                  management, and avoid any accident happened. In case of any accidents,                  Party should be responsible for it. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.3 | Party                  B should pay the electricity and water expenses according to actual                  readings from meter. Party B should pay all electricity and water                  expenses                  directly to all related departments, or Party A can pay on its                  behalf. |
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|   | 1.4 | Party                  B is responsible for the installation of fire prevention facilities                  and                  bear all costs. |
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|   | 1.5 | Party                  B should obey the governmental rules and standard on water-venting,                  pollution-venting, dross-venting, exhaust air, noise, and fire                  prevention                  facilities. |
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|   | 1.6 | At                  the time of the transfer of usage right from Party A to Party B,                  Party B                  needs to maintain the existing state to use the Premise. If any                  alterations or increase on the occupation of area required, Party                  B has to                  get approval from Party A. Meanwhile, Party B should also maintain                  the                  existing Premise and return as an original state to Party A at                  the                  expiration date of the Contract. If any additional or extension                  of                  construction works, Party B has to return to Party A without of                  any                  compensation. When Party B needs to alter or demolish any parts,                  it must                  follow the related standard and regulations set by government                  rules. |
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**Clause        8 : Early Termination of Contract **

|   | (1) | Party                  B finishes the factory building on the self-purchased land at this                  District No. 7 Road and at the time of moving                  out. |
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|   | (2) | Party B requires to rent other parts in this District                for                the expansion on production. |
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|   | (3) | Stoppage                  of operation caused by The Customs and Inspection Departments                  etc. |
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|   | (4) | Any                  force majeure caused Party B cannot continue                  production. |
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|   | (1) | Unable to pay the rental fee of building for 3                months; |
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|   | (2) | Perform                any illegal activities within the building                area; |
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|   | (3) | Damage                  the leased building purposely; |
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**Clause        9 : Other Conditions**

|   | 1.  | If                  any other condition is not completely covered in this Contract,                  the                  supplementary terms should be signed under mutual agreement will                  be                  considered as equal legal binding. |
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|   | 2.  | There                  are 6 copies of this Contract. Party A and Party B will individually                  keep                  3 sets and all have equal legal binding. This Contract will be                  effective                  after signature. |
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| Party A (with stamp) :                                 | Party B (with stamp) :                                 |
|--------------------------------------------------------|--------------------------------------------------------|
|                                                   |                                                   |
|                                                   |                                                   |
| Authorized Representative (signature)                : | Authorized Representative (signature)                : |
|                                                   |                                                   |
|                                                   |                                                   |
| 23rd                May 2005                           | 23rd                May 2005                           |

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**HeYuan        City Government Document**

**[2003]        No. 107**

**Clause        1**

**Clause        2**

**Clause        3**

**Clause        4**

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