**EXHIBIT 10.3**

## **LEASEAGREEMENT BETWEEN COMPANY AND AT ENGINEERING SDN BHD**

ANAGREEMENT is made on the date stated in Section I of the First schedule heretobetween the party whose name and description are stated in Section 2**of the First Schedule hereto (hereinaftercalled “the Landlord”) of the one part and the party whose name and descriptionare stated in Section .3 of the First Schedule hereto (hereinafter called “theTenant”) of the other part.

WHEREASthe Landlord is the beneficial owner of the space described in Section 4 of theFirst Schedule hereto (hereinafter called “the Demised Premises”) being part oftwo storey factory building bearing address Plot 82 Lintang Bayan Lepas. BayanLepas Industrial Park. Phase IV, 11900 Bayan Leaps. Penang, Malaysia.(hereinafter called “the Complex.

WHEREASthe Landlord is desirous of letting and the Tenant is desirous of taking theDemised Premises upon the terms and conditions hereinafter appearing.

NOWIS HEREBY AGREED as follow:-

1.                               TheLandlord lets and the Tenant takes a tenancy of the Demised Premises for acomplete and full period specified in Section 5 of the First Schedule (TheTerm) from the date of commencement to the date of expiration as specified inSection 6 and Section 7 respectively of the First Schedule at the monthlyrental as specified in Section of the First Schedule.

2.         DEPOSITS

(a)     The Tenant shall upon execution of this Agreement pay to the Landlordrental deposit provided in Section 9 of the First Schedule hereto (the receiptof which the Landlord hereby acknowledges) as security for the due performanceof the terms and conditions of this Agreement (hereinafter referred to as “theRental Deposit”). The Rental Deposit shall be refunded to the Tenant (withoutinterest) at the expiry of the Term without prejudice Landlord’s right againstthe Tenant for any antecedent breach by the Tenant. The Rental Deposit shallnot at any time be used as payment of the monthly rental due at any timewithout express consent of the Landlord.

(b)   The Tenant shall pay to the Landlord monthlyfor the monthly electric power usage base on the usage reading on theseparately installed meter. Electric power charge shall be at LLN rate.

(c)    The Tenant shall not be required to pay forwater usage within the Demised Premises so long as water is not used for“process” type production.

3.         THE TENANT HEREBY COVENANTS WITH THELANDLORD as follows:-

(a)                      To pay the reserved rent punctually on orbefore the 16lh day ofeach and every calendar month without demand:

(b)       To pay charges forelectricity consumed within the Demised Premises.

(c)        Topay conservancy sewage and refuse removal when invoices are receive from therelevant

authority.Payment shall be proportionally divided out between the Landlord and Tenant at4:1 ration (Base on approx area of Landlord and Tenant usage.)

(d)                      To use the Demised Premises for the purposespecified in Section 11 of the First schedule only;

(e)                       To keep the interior of the Demised Premisesin good and tenant able repair and condition (reasonable wear and tear anddamage by fire or casualty not by the fault of tenant excepted) Example;- walls.ceiling, toilets. etc,

(f)        Topermit the Landlord and his duly authorized agents at all reasonable times toenter upon

theDemised and to view the conditions thereof. PROVIDED THAT the Landlord gives the Tenant twenty four (24) hourswritten notice staling the Landlord’s intention to do the same. The Landlordmay serve upon the Tenant notice in writing specifying any repair or

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worknecessary to be done or replacement necessary to be made to comply with theTenant’s covenants to repair herein contained and require the Tenant forthwithto execute such repairs of work or made such replacement and if the Tenantshall not within seven (07) days after the service of such notice proceeddiligently with the execution of such repairs or work or the making of suchreplacement then it shall be lawful for the Landlord to enter upon the demisedpremises and execute such repairs or work or make such replacement and thecosts thereof shall be paid by the Tenant to the Landlord forthwith;

(g)                      Not to assign, sublet or part with thepossession of the Demised Premises or any part thereof;

(h)                      Not to make or permit to be made anyalteration or partitions in or additions to the Demised Premises without theLandlord’s consent;

(i)                          If any alterations or additions or partitionswere made to the Demised Premises with the written consent of the Landlord theTenant shall at his own costs reinstate the Demised Premises substantiallysimilar to its original conditions at the expiry of the Term;

(j)                          Not to do permit or suffer to be done on theDemised Premises anything which may become a nuisance or cause annoyance damageto or in any way interfere with the quite occupation and comfort of any otheradjoining occupiers or the neighbourhood;

(k)                       Not to do or permit or suffer to be done uponDemised Premises, anything which will or may infringe or contravene any law,by-laws or regulations made by the Government, the Local Council or othercompetent authorities affecting the Demised Premises;

(l)                          Not to use the demised premises for anyunlawful or immoral purpose;

(m)                    To compensate and indemnify and keepindemnified the Landlord against summonses actions, proceedings, claims anddemands, costs, damages and expenses which may be levied brought or madeagainst him or which he may sustain or incur by reason or any act or omissionof the Tenant or the use of the Demised Premises or damage to any part of theComplex and Common Area;

(n)                      To maintain the Demised Premises and all waterclosets within the Demised Premises in neat and clean condition and make goodany damage thereto;

(o)                       To be responsible for the safekeeping of allits goods and property within the Demised Premises;

(p)                     To maintain insurance coverage on itsoperations at the Demised Premises and its equipment, inventory and personalproperty within the Demised Premises;

(q)                      Not to store or bring upon the DemisedPremises arms, ammunition or unlawful goods, gunpowder, salt petre or anyexplosive or combustion hazardous substance in any part of the DemisedPremises;

(r)                         At the expiration or sooner determination ofthis Tenancy to peaceably surrender and yield up to the Landlord the DemisedPremises in good and substantial repair and condition.

(s)                       To permit the Landlord or his agents duringthree (3) months preceding the termination of the Tenancy hereby created at allreasonable times to bring any person authorized to view the said Premises forpurposes of re-letting or selling the said Premises.

4.         THELANDLORD HEREBY COVENANTS WITH THE TENANT as follows:-

(a)                      To pay all quit rent and assessment imposed onand payable in respect of the Demised Premises other that those expresslycovenanted to be paid by the tenant herein:

(b)                     That the tenant paying the rent herebyreserved and observing and performing the several covenants and stipulations onthis part herein contained shall peacefully hold and enjoy the Demised Premisesduring the term hereby granted without any interruption by the Landlord or anyperson frightfully claiming under or in trust for the Landlord;

(c)                      The Landlord shall not be responsible to theTenant for any property damage or loss or personal injury arose within theDemised Premises;

(d)                     The Landlord shall maintain or repair theComplex , the Common Area, all heating and ventilation and air conditioningsystem serving the Demised Premises during the Term;

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(e)        To provide security forthe Complex and the Common Area;

(f)                         To provide Tenant non-exclusive use of ten(10) parking spots in the parking lots serving the Complex;

(g)                      To permit the Tenant non-exclusive use ofCommon Area serving the Complex and to use an additional small section of theexternal common canteen area of the Complex.

5.                           PROVIDED ALWAYS AND IT IS HEREBY MUTUALLYAGREED BY THE PARTIES HERETO as follow:-

(a)  If the rent hereby reserved or any partthereof shall any time be unpaid for seven (7) days after the same shall havebecome due (whether formally demanded for or not) or if any covenant on theTenant’s part herein contained shall not be performed or observed then and inany such case it shall be lawful for the Landlord after the expiry of 3business days written notice to cure a payment default and 10 business dayswritten notice to cure a non-monetary default has lapsed, to re-enter upon theDemised Premises or any part thereof whether or not by force in the name of thewhole and thereupon the tenancy shall absolutely determine but withoutprejudice to the right or action of the Landlord in respect of any antecedent breachof the conditions on the part of the Tenant herein contained.

(b)    In the event the Tenancy hereby granted isterminated due to the breach of any of the Tenant’s covenants herein contained,the Rental Deposit shall be forfeited by the Landlord absolutely as agreedliquidated damages and not by way of penalty without prejudice to the Landlord’sright under this agreement:

(c)  Upon the expiry of the Term, the Tenant shallsurrender vacant possession of the Demised Premises to the Landlord withoutdemand and if the Tenant shall not then be in breach of the terms andconditions herein expressed to be observed or performed by the Tenant, TheLandlord shall refund to the Tenant the Rental Deposit without interest. TheRental Deposit may be used by the Landlord to off-set any loss or damagesuffered by the Landlord’s without prejudice to the Landlord’s right to takeaction for any shortfall or further loss and damage. The Electricity Depositshall only be refunded to the Tenant upon proof of full settlement of allelectricity charges consumed by the Demised Premises during the Term.

(e)     If the Tenant desires to extend the Term after its expiry for anadditional period of years (the Extended Term), the parties shall negotiate ingood faith to determine the rent and other terms that would apply during theExtended Term and to execute an amendment to this Agreement to document theiragreement.

*6.**        *MISCELLANEOUS

(a)    Knowledge or acquiescence by either partyhereto of in any breach of any of the conditions or covenants herein containedshall not Operate as or be deemed to be waiver of such conditions or covenantsor any of them and notwithstanding such knowledge or acquiescence, each partyhereto shall be entitled to exercise their respective rights under thisAgreement and to require strict performance by the other of the terms andconditions herein.

(b)   The termination of this Agreement howsoeverarising shall be without prejudice to any other right of action already accruedto any party and any right or remedy which are expressly provided to survivetermination.

(c)    This Agreement embodies all the terms and conditions agreed upon betweenthe parties as to the subject matter of this Agreement save and except thosemutually agreed upon in writing between the parties after the execution hereof. For the avoidance of doubt, thisAgreement supersedes and cancels in all respect all previous representationswarranties agreements and undertakings (if any) between thy parties hereto with respect to the subject matter of thisAgreement, whether such be written or oral.

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(d)   If any provisions of this Agreement are orbecome or are deemed invalid, illegal or unenforceable in any jurisdiction,such provision shall be amended to confirm to the applicable laws so as be valid andenforceable or if it cannot be amended without materially altering the intention of the parties, it shall be severedfrom this Agreement but the remaining provisions of this Agreement shall remainin full force and effect.

(e)    This Tenancy Agreement shall be binding uponsuccessors in title, assigns, the personal representatives, heirs and permittedassigns of the parties hereto respectively.

(f)  The First Schedule shall betaken, read and construed as an essential part of this Agreement.

(g) Time whenever mentioned shallbe of the essence of this Agreement.

(h)   Any notice required to be given under thisAgreement shall be in writing and shall be deemed to be sufficiently served onboth the Landlord and the Tenant if delivered by registered post to theiraddresses as hereinbefore set out. 

(i)       All costs and expenses of this Agreementincluding solicitors’ costs and stamp duty shall be borne by the Landlord andthe Tenant equally.

(j)       In this Agreement where the context soadmits:-

(i)    where two or more persons are included inthe expression “the Landlord” and “the tenant”this Agreement shall bind such persons jointly and severally: 

(ii)   words applicable to natural persons include any company orcorporation.

**IN WITNESS WHEREOF**the parties hereto have hereunto set their hands the day and year firstabove written.
| SIGNED by                         | )      |                                    | By:                                    | /s/ LL Beh          |   |
|-----------------------------------|--------|-----------------------------------------|----------------------------------------|---------------------|--------|
|                              |   |                                    | Chairman AT  Engineering               |
| ** **                        | )      |                                    |
|                              | )      |                                    |
| For and on  behalf of the         | )      | AT ENGINEERING SOLUTION SDN. BHD.       |
| **LANDLORD** in the presence of:- | )      | (Company No 531531-X)                   |
|                              | )      | PLOT 82, LINTANG BAYAN LEPAS, PHASE IV, |
|                              | )      | BAYAN LEPAS INDUSTRIAL ZONE,            |
|                              |   | 11900 BAYAN LEPAS, PENANG,              |
|                              |   | TEL: 604-6447771 FAX: 604-6447773       |
|                              |   | Email: at@ate.com.my                    |
|                              |   | URL: www.ate.com.my                     |
|                              |   |                                    |
| SIGNED by                         | )      |                                    | By:                                    | /s/ Roger E.  Gower |   |
|                              |   |                                    | Roger E. Gower                         |
|                              |   |                                    | President and  Chief Executive Officer |
| ** **                        | )      |                                    |
| For and on  behalf of the         | )      |                                    |
| **TENANT** in the presence of:-   | )      |                                    |
| ** **                        | )      | ****                                    |
| ** **                        | )      |
| ** **                        | )      |
| ** **                        |   |
| ** **                        |   |

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**THE FIRST SCHEDULE**

(which is to be taken read and construed as an essentialand integral part of this Agreement)
| **Section** | ** ** | **Item**                                        | ** ** | **Particulars**                                                                                                                                                               |
|-------------|------------|-------------------------------------------------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.          |       | The day and year of this Agreement              |       |                                                                                                                                                                          |
|        |       |                                            |       |                                                                                                                                                                          |
| 2.          |       | Description of the Landlord                     |       | AT Engineering Sdn. Bhd, (Company No. 212428-M) of  Plot 82 Lintang Bayan Lepas. Bayan Lepas, Industrial Park. Phase IV, 11900  Bayan Leaps, Penang, Malaysia.                |
|        |       |                                            |       |                                                                                                                                                                          |
| 3.          |       | Description of the Tenant                       |       | Micro Component Technology (M) Sdn. Bhd. (Company  No. 219259-D) of Piot 82 Lintang Bayan Lepas, Bayan Lepas Industrial Park,  Phase IV, 11900 Bayan Leaps, Penang, Malaysia. |
|        |       |                                            |       |                                                                                                                                                                          |
| 4.          |       | Particulars and Description of Demised Premises |       | Ten Thousand square feet being part of ground floor  of the Complex mark as red in the plan attached herein.                                                                  |
|        |       |                                            |       |                                                                                                                                                                          |
| 5.          |       | Duration of Tenancy (The Term)                  |       | Two (2) years                                                                                                                                                                 |
|        |       |                                            |       |                                                                                                                                                                          |
| 6.          |       | Date of Commencement of the Tenancy             |       | Date of Commencement: I6th June, 2007                                                                                                                                         |
|        |       |                                            |       |                                                                                                                                                                          |
| 7.          |       | Date of Expiry of the Term                      |       | Date Of Expiry: 15th June, 2009                                                                                                                                          |
|        |       |                                            |       |                                                                                                                                                                          |
| 8.          |       | Reserved Rent                                   |       | RM240,000,00 per year payable in monthly instalment  of RM20,000 Per month calculated at RM2.00 per sq. ft.                                                                   |
|        |       |                                            |       |                                                                                                                                                                          |
| 9.          |       | Rental Deposit                                  |       | RM20,000,00 x 3 mths= RM60,000,00                                                                                                                                             |
|        |       |                                            |       |                                                                                                                                                                          |
| 10.         |       | Electricity deposit                             |       | No deposit. Tenant to pay Landlord monthly  electricity charges consumed within 7 days when bill is presented to Tenant.                                                      |
|        |       |                                            |       |                                                                                                                                                                          |
| 11          |       | Purpose of use of Demised Premises              |       | Design and manufacturing of equipments and machines.                                                                                                                          |

 

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