Exhibit
10.42

     

    [English
translation for reference only]

    


    Comprehensive
Credit Contract with Quanzhou Branch of Bank of Communications

    
      (No.:
3550052009C900002300) for RMB 95 million

    

    


    Important
Notice: Any applicant for the credit shall read through this contract carefully,
special attention shall be paid to the articles marked
with            

    .

    Applicant:
Guanke (Fujian) Electron Technological Industry Co Ltd

    Legal
Representative (Principal):  Tin Man Or

    Legal
Address:

    Postal
Address:

    


    Creditor:  Quanzhou
Branch affiliated to Bank of Communications Co Ltd

    Principal:   Xiaodong
Li

    Correspondence
Address:   No.550 Fengze Street, Quanzhou city, Fujian,
China

    


    Whereas
the Applicant applied for the comprehensive credit line and to define rights and
responsibilities of both parties hereto, the Applicant and the Creditor, through
mutual negotiation, hereby agree to make this Contract as follows.

    


    Article
I. Definitions

    


    Unless
otherwise stipulated, the terms used in this contract are defined as
follows:

    


    “Comprehensive
Credit” refers to various types of credit products that the Creditor provides to
the Applicant. The types of the credit products include RMB or foreign currency
current funds loan,, hypothecated loan on export rebate account, bank
acceptance, import letter of credit, packing loan, import bill advance, import
collection finance, import outward remittance financing, export finance, export
invoice finance, letter of guarantee or other credit products the Creditor has
to offer.

    


    “Comprehensive
credit line” is the upper limit of the total credits applied by the
Applicant.

    


    “Categorization
of quota” is the upper limit of each credit product.

    


    “Credit
balance” refers to the total amount remaining to be used under the line of
credit. The credit balance refers to the total amount of effective bank
acceptance/letter of credit/letter of guarantee plus the amount of bank
acceptance/letter of credit/letter of guarantee that does not paid by the
Applicant .

    


    “Balance
of the categorization quota” refers to the amount remaining to be used under the
line of credit plus the amount of bank acceptance/letter of credit/letter of
guarantee that does not paid by the Applicant

     

    
      “Period
for the line of credit” refers to the period that the Applicant requests in
light of this contract, the actual period starts from the date of extension of
the letter of credit. The period of each credit line shall be set in the
Application for Usage of Credit Line. The period for the line
of credit for this contract is from 2009 to August 17,
2010.

    

    


    “Credit
Line” refers to the comprehensive line of credit and/or categorization
quota.

    


    “Loan
pledged with an export tax rebate custody account” refers to short-term current
loan pledged by the account receivables associated with the export tax
rebate.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Import
finance” refers to short-term loan extended to the Applicant upon written
application. The loan is to be used to settle the payment shown on the import
letter of credit. The Applicant shall pay back the loan and interests arising
therefrom in accordance with the loan rate and the period agreed by the two
parties.

    


    “Import
collection finance” refers to the short-term financing upon written request from
the Applicant to settle the payment for import of goods through the D/P. The
Applicant shall pay back the loan and interests arising therefrom in accordance
with loan rate and period agreed by the two parties.

    


    “Import
outward remittance financing” refers to the financing for the payment to be
wired via telegraphic transfer to the receiver’s bank account. The financing is
extended upon written request by the Applicant to settle payment for the import
goods having arrived at the designated port. The Applicant shall pay back the
loan and the interests arising therefrom in accordance with the loan rate and
the period agreed by the two parties.

    


    “Export
finance” refers to the short-term loan extended to the Applicant upon written
application with a complete package comprised of letter of credit and the
supporting invoices or documents. The Applicant shall pay back the loan and
interests arising therefrom in accordance with the loan rate and the period
agreed by the two parties.

    


    “Finance
associated with export collection” refers to the short-term financing upon
written request from the Applicant to facilitate the export and ensure timely
export collection. The Applicant shall pay back the loan and interests arising
therefrom in accordance with loan rate and period agreed by the two
parties.

    


    “Export
invoice finance” refers to the short-term financing upon written request along
with supporting invoices and other export documents from the Applicant. It is
applicable to the T/T settlement for the export only.

    


    Article
II Credit Line

    


    
      2.1
Comprehensive credit line is RMB95
million.

    

    
      2.2
Applicable to the following credit products marked with
“V”:
 


    RMB
working capital loan

    Foreign
currency working capital loan

    Loan
pledged by export rebate

    V Bank
Acceptance

    Letter of
Guarantee

    V Letter
of Credit

    V Import
finance

    Finance
associated with import collection

    Import
outward remittance financing

    Package
loan

    V Export
finance

    Export
invoice finance

    


    The
credit line is categorized as follows,

     

    
      
        
          	
                  Type
      of credit

                	
                  Currency

                	
                  in
      capital letters

                
	
                  Spot
      Letter of Credit

                	
                  RMB

                	
                  SEVENTY
      FIVE MILLION

                
	
                  Forward
      Letter of Credit

                	
                  RMB

                	
                  SEVENTY
      FIVE MILLION

                
	
                  Import
      finance

                	
                  RMB

                	
                  THIRTY
      MILLION

                
	
                  Export
      finance

                	
                  RMB

                	
                  THIRTY
      MILLION

                
	
                  Bank
      acceptance

                	
                  RMB

                	
                  FIFTY
      FIVE MILLION

                


        

      

    

     


    
      2.3 The
upper limits for each type of credit, set forth herewith 2.2, is subject to the
upper limit for the respective type of credit and the comprehensive credit
line.

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      Article
III Conditions precedent for the use of the credit line:

    

    


    
      3.1
Common conditions precedent for the use of the credit line

    

    
      (1) The
credit balance shall not exceed the comprehensive credit line and the
categorized credit balance shall not exceed the line of credit applied to each
category of credit

    

    
      (2) The
amount of credit being applied shall not exceed the remaining amount of the line
of credit and the categorized line of credit.

    

    
      (3)
Application of the credit shall be submitted within the period stipulated in
this contract

    

    
      (4) In
case that the contract of guarantee (if exists) under this agreement is
effective and continues to be effective, and the contract of guarantee is the
pledged contract, the pledged property shall be established and remains
effective.

    

    
      (5) The
Applicant shall be obliged to obtain all the government recognition, approval
and registration to facilitate the application and usage of the line of
credit.

    

    
      (6) The
application materials shall be in compliance with the relevant regulations of
the Creditor

    

    
      (7) No
material negative development in the operation and financial conditions of the
Applicant

    

    
      (8) The
Applicant does not breach the contract

    

    
      (9) The
application materials shall abide by the conditions precedent for each category
of credit

    

    


    
      3.2
Conditions precedent for the use of working capital loan

    

    
      N/A

    

    
      3.3
Conditions precedent for the use of loan pledged by export
rebate

    

    
      N/A

    

    
      3.4
Conditions precedent for the use of bank acceptance

    

    
      (1)
Collateral equivalent to the 40% of the amount
shown on the bank acceptance shall be provided or deposited in the certificate
of deposit issued by the Bank of Communications.

    

    
      (2) All
the application documents submitted by the Applicant shall be true and
legal

    

    
      (3)
Processing fee is paid in accordance with the instruction from the
Creditor

    

    
      
        
          (4) The
bank acceptance shall not exceed six months and shall be no later than February 17,
2011

        

        
          (5) Risk exposure rate shall not
be lower than 0.4%

        

      

    

    


    
      3.5
Conditions precedent for the use of import letter of credit

    

    
      
        
          (1) The
Applicant has obtained approvals and licenses required for the issuance of the
letter of credit and ensure the documents maintain continuous effectiveness. The
documents include but are not limited to import license, import quota,
etc

        

        
          (2) The
letter of credit is not back-up one

        

        
          (3)
Restrictions for the goods under the letter of credit\

        

        
          (4) The
import contract required for the issuance of the letter of credit shall reflect
the true and legal trade

        

        
          (5)
Collateral for the letter of credit, both spot and forward, shall deposit 20% of the amount
shown on the letter of credit. Bank account No. for the collateral is: 355000888708130006304.
Or a certificate of deposit opened in the Bank of Communications with equivalent
amount of money on the account as a pledge by the Applicant

        

        
          (6)
Administrative charges as required by the Creditor

        

        
          (7)
N/A

        

      

    

     

    
      
        3.6
Conditions precedent for the use of package loan

      

      
        N/A

      

      


      
        3.7
Conditions precedent for the use of import finance

      

      (1)
Currency used for the import finance: N/A

      (2)
Collateral shall be no less than N/A% of the amount for the letter of
credit

      (3)
Period of import finance shall not exceed 90 days and shall not
be later than February
17, 2010

      (4)
Commodities covered by the import finance: N/A

      (5) The
type of letter of credit is spot/ forward.

      
        (6)
N/A

      

      


      3.8
Conditions precedent for the use of import collection finance

      N/A

      


      3.9
Conditions precedent for the use of import outward remittance
finance

      N/A

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      3.10
Conditions precedent for the use of export finance

      (1)
Currency used for the export finance: N/A

      (2)
Collateral shall be no less than N/A% of the amount for the letter of
credit

      (3)
Period of export finance shall not exceed 90 days and shall not
be later than February
17, 2010

      (4) The
applicant provided the letter of credit, the revisions if any, and all relevant
supporting documents.

      (5)N/A

    

    
       

      Article
IV Use of credit line

    

    


    
         4.1 The credit line
is the maximum amount of credit granted to the Applicant. The signing of this
contract does not guarantee the actual extension of the maximum amount of credit
to the Applicant. The Applicant shall fill out and submit the Credit Usage
Application Form for each application, which is to be reviewed and approved by
the Creditor

    

    
            
   4.2 The type of credit, currency, amount, usage, period and loan
rate stipulated in the application form shall supersede the corresponding terms
in this contract

    

    
            
   4.3 The use of the credit shall refer to the documents,
certificates and invoices that the Creditor keeps during the effective period of
this contract.

    

    
         4.4 If the currency
recorded in the application form is different from the one stipulated in this
contract, the calculation of the credit balance shall be based on the interest
rate at the opening of the business hours.

    

       4.5 If the Applicant
becomes the “actual controlling shareholder” of the Guarantor, before a
satisfactory resolution that guarantees the loan for the Applicant, the Creditor
has the right to suspend or cancel the remaining amount of the line of
credit.

    


     Article V Representation and
Guarantee by the Applicant

    


    5.1 The
Applicant is established in legal and in good standing to be able to fulfill the
obligations stipulated in this contract and assume civil responsibility that may
be arising therefrom.

    5.2 The
signing and execution of this contract reflect the genuine intention of the
Applicant and have obtained all the necessary review, approval and
authorization.

    5.3 All
the documents, tables, material and information provided by the Applicant shall
be true, accurate, complete and effective. There is no intention of hiding any
information that may affect the financial conditions and repayment ability of
the Applicant.

    5.4 The
Applicant is not the shareholder or “actual controlling shareholder”, as defined
in the Company Law, of the Guarantor, nor does it plan to be the shareholder or
actual controlling shareholder of the Guarantor.

    


    Article
VI Obligations of the Applicant

    


    6.1 The
Applicant shall obtain all necessary approval, review, report, filing or
registration before execution of this contract and the credit line
application.

    6.2 The
use of the credit shall be in compliance with this contract and the application
form. Misappropriation is forbidden.

    6.3 The
Applicant shall repay the loans in accordance to the timetable and amount
stipulated in this contract and the application form. Unless otherwise
stipulated, the Applicant is not allowed to repay in advance without written
notice of approval by the Creditor

        6.4 The
Applicant shall be obliged to the charges related to the notarization,
appraisal, evaluation and registration for this contract

        6.5 The
Applicant shall abide by the regulations and practices of the Creditor,
including but not limited to periodically provide financial reports and other
information that may be requested by the Creditor, and ensure the documents,
material and information are true, complete and accurate

    


    
          6.6 The
Applicant shall notify 30 days in advance and in written the following events
and shall not take any actions, explained as follows, without reaching a
solution with the Creditor:

    

    (1) Sell,
donate, rent, lend, transfer, mortgage or pledge, or disposal total or majority
of assets or major assets;

    (2) Major
changes in the incorporation or ownership structure of the operating entity,
including but not limited to contract out, lease, cooperate, reformation, sales,
mergers and acquisitions, joint venture, spin-off, set up a subsidiary, transfer
of property rights, or reduction of registered capital, etc.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

        6.7 The
Applicant shall notify the Creditor the following corporate actions within 7
days:

    


    
      
        	
              	
                (1)

              	
                Amendment
      to the Article of Incorporation, Company name, legal representative
      (managing staff), domicile, postal address, scope of business, or any
      decision that could materially affect the financial conditions or
      personnel;

              


      

    

    
      
        	
              	
                (2)

              	
                The
      Applicant or Guarantor may or possibly apply for bankruptcy or have been
      requested by any lender to file for bankruptcy
  application;

              


      

    

    
      
        	
              	
                (3)

              	
                Involved
      in any lawsuits, arbitration, administrative regulation, or asset
      assurance or other legal
orders;

              


      

    

    
      
        	
              	
                (4)

              	
                Guarantor
      for a third-party may materially affect the financial standing or the
      fulfillment of the obligations in this
contract;

              


      

    

    
      
        	
              	
                (5)

              	
                The
      signing of major contract which may materially affect its operation and
      financial standing

              


      

    

    
      
        	
              	
                (6)

              	
                The
      Applicant or the Guarantor suspends business, dismissal of employees,
      suspends business for reform or the business licenses are canceled or
      revoked;

              


      

    

    
      
        	
              	
                (7)

              	
                Breach
      of regulations or laws by the legal representative (senior
      manager)  or other major
managers;

              


      

    

    
      
        	
              	
                (8)

              	
                Difficulty
      in operation and financial conditions, or other events that may have
      negative impact on the Applicant’s operation, financial conditions or
      repayment ability;

              


      

    

    
      
        	
              	
                (9)

              	
                The
      total amount of the related party transactions reaches or exceeds the 10%
      of the net asset value which is confirmed by the auditor in the most
      recent auditing.

              


      

    

    
      
        	
              	
                (10)

              	
                The
      Applicant becomes the “actual controlling shareholder” of the Guarantor
      before the clearance of all the loans stipulated in this
      contract.

              


      

    

    
         

    

        6.8 The
Applicant shall timely provide other assurance in case of any changes that may
negatively affect the loans by the Creditor.

    The
“change” hereto includes but is not limited to: mergers and acquisitions,
spin-off, operation suspension, closure of operations, reform by the Guarantor,
or the cancellation or revoke of the business license for the Guarantor. apply
for bankruptcy or have been requested by any lender to file for bankruptcy
application; the Guarantor’s involvement in any lawsuits, arbitration,
administrative regulation, or asset assurance or other legal orders which may
result in the reduction of the value of the pledged assets; breach of
regulations or laws by the legal representative (senior manager)  or
if the Guarantor is an individual, the Guarantor’s missing or dead; the
Guarantor breaches the articles of this contract; dispute between the Guarantor
and the Applicant; the property of the pledged assets is not established or does
not have legal force; or other events that may affect the safety of the credit
of the Creditors.

    


    Article
VII Others

    
      1. From August 17, 2009 on and within this
year, the re-steaming fund amount under the account party by the applicant shall not be less than
RMB 300 million.

      2. The comprehensive credit lines amount of
this Comprehensive Credit Contract includes the amount of No. 3550052009L300000000 Corporation Overdraft Contract
and No. 3550052009LG00000000 Open Online Payment Tax L/G
Contract.

    

    


    Article
VIII Advance loan maturity

    


    8.1 Any
of the following events may constitute “event for advance loan
maturity”.

    (1) Fake
expression or assurance by the Applicant in this contract or any of the
application documents;

    (2)
Breach of this contract or any of the application document by the
Applicant

    (3) The
occurring of any events described in 6.7 may cause the Creditor to consider the
negative influence on the safety of its credit

    (4)
Delayed execution of contract or other default even after the notification by
the Creditor

    8.2 The
Creditor shall have the rights to:

    (1)
Decrease, suspend or cancel the credit line in this contract

    
      (2)
Declare the maturity date of the loans partially or in whole of this contract,
require the Applicant to repay the total loans and interests arising
therefrom.

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    Article
VIV Breach of contract

    


    9.1
Failure to repay the loan or interest may be fined to repay additional interest
which shall be 50% higher than the
loan rate agreed in the application.

    9.2 The
Applicant, after breaching of the contract, shall pay for the charges in
connection with lawsuits, arbitration, asset assurance, announcement, execution,
legal, trips and others

    9.3 The
Creditor has the right to report or announce via news media if the Applicant
intentionally escapes the supervision of the Creditor, delays loan and interests
payment, etc.

     


    Article
VV Authorization of money transfer

    


    10.1 The
Applicant hereby authorize the Creditor to deduct the amount for the loan
principal, interests, fine, or other charges from any bank account opened in the
Bank of Communications by the Applicant.

    10.2 The
Creditor shall inform Applicant the bank account No., contract No., Serial No.
of the application form, the No. of the borrow document or other bank documents,
the amount deducted and the loan balance.

    10.3 If
the balance of the bank account could not cover the total amount due and if the
period of overdue is less than 90 days, the priority of repayment shall be given
to the unpaid expenses, followed in order by the interests, the fine, the
compound interests and the principal. If the period of overdue is more than 90
days, the priority of repayment shall be given to the unpaid expenses, followed
in order by the principal, the interest, the fine and the compound
interests.

    If the
balance of the bank account could not cover the amount of loan which is in the
form of bank acceptance, letter of credit or letter of guarantee, the repayment
priority shall be given to the unpaid expenses, the principal due and the
interests due.

    10.4 The
exchange rate on the spot of the deduction shall apply if the currency of the
bank account differs from the currency of the loan

    


    Article
VVI Dispute Resolution

    


    Any
dispute arising from this contract shall be resolved through filing litigation
with the local court where the Creditor is located. The two parties shall
continue to fulfill obligations not involved in the litigation.

    


    Article
VVII Credit Usage Application Form

    


    The two
parties shall sign the Credit Usage Application Form which is an appendix and
undivided section of this contract. The content filled in the application form
shall supersede this contract if there is any discrepancy.

     

    Article
VVIII Miscellaneous

     

    13.1 The
contract shall be signed by legal representative (principal manager) or
authorized representative and sealed with official chop of both the Applicant
and the Creditor.

    
      13.2 The
contract is made in four copies, the Applicant, the Creditor and the Guarantor
shall each keep a copy.

    

    


    (No
articles hereafter)

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    


    
      
        	
                The
      Applicant has thoroughly read all the provisions contained in the
      contract. The Creditor has explained such provisions upon the Applicant’s
      request. The Applicant has no objection to any contents
      thereof.

              


      

    

     

    
      
        	
                Applicant
      (official seal)

              	 
      	
                Creditor
      (official seal)

              
	
                Guanke
      (Fujian) Electron

              	 
      	
                Quanzhou
      Branch,

              
	
                Technological
      Industry Co Ltd

              	 
      	
                Bank
      of Communications

              
	 
      	 
      	 
      
	
                Legal
      Representative (Principal officer)

              	 
      	
                Principal
      officer

              
	
                or
      authorized representative

              	 
      	
                or
      authorized representative

              
	
                (Sign
      and seal)

              	 
      	
                (Sign
      and seal)

              
	
                Tin
      Man Or

              	 
      	 
      
	 
      	 
      	 
      
	
                      
                  Date
      of signing: August 25, 2009

                

              	
                  

              	
                      
                  Date
      of signing: August 25,
2009

                

              


      

    


    
      
         


      

      
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