Highland Ridge, Inc. - Exhibit 10.16 - Filed by newsfilecorp.com






Exhibit 10.16 

House Rental Agreement

The leaser (Party A): Ding Jie 
Address for Service:
No. 2009, Xiongying Building, Futian District, Shenzhen 
Postal Code:
Phone: 13798315819
Entrusted Agent:
Address for Service:
Postal
Code: Phone:


The Lessee (Party B): Chen Debin 
Address for
Service: No.1, Kefa Road, Nanshan District Tech Park, Shenzhen,

Guangdong Province 
Postal Code: Phone:
13603077047
Business License or ID No.: 320831197103123818

Entrusted Agent:
Address for Service:
Postal Code: Phone:


The Agreement is signed by and between Party A and Party B
through consultation in accordance with the Contract Law of P.R.C, the Law of
the People’s Republic of China on Administration of the Urban Real Estate, the
Regulations of Shenzhen Special Economic Zone on Lease of Houses and the rules
for implementation. 

Article 1 Party A hereby rents the house (apartment)
numbered ________ at the address of No. 08, 14th
Floor, Block A, Building 1, Xiandai Business Mansion at the cross of
Jintian Road and Fuhua Road, Futian District, Shenzhen Municipality
(hereinafter referred to as “the apartment”) to Party B for use. Total floor
area of the apartment is 222.8 m2, and the number of floors of
the building is 33.

The Owner/Proprietor of the apartment: Zhou Xigen. 

Name and number of the real estate ownership certificate or
other valid certificates for proof the ownership (or use right): Shen (Fu)
Wang Yu Mai Zi [2007] No.4340. 

Article 2 Unit rent of the apartment is calculated based
on the rate of RMB ______(In word: ________RMB ) per square meter of the floor
space. The total monthly rent is RMB 22,000 (in word: say RMB
twenty-two thousand only). 

Article 3 Party B shall make the initial payment of RMB
22,000 (in word: say RMB twenty-two thousand only) before
September 1, 2009. 

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Article 4 Party B shall pay rent to Party A: 

	X   Before the 10th day
      of each month; 
	[  ] Before the ____day of the ____month of a quarter;
    
	[  ] Before the ____day of the ____month of a half
      year; 
	[  ] Before the ____day of the ____month of a year;
  


And Party A shall issue a tax invoice to Party B when receiving
the rent. (Both parties shall select one of the above four options and mark with
a “X”.) Article 5 The term of lease is from September 1, 2009 to
August 31, 2010. 

Term agreed in the previous article shall not exceed the
approved term of land use, and the excess part (if applicable) shall be invalid.
In case of any losses caused thereby, the agreement reached between both parties
shall apply, or Party A shall be responsible if there is no such an agreement.


Article 6 The apartment is used as/for: office as
agreed herein. 

If planning to use the apartment for any other purposes, Party
B shall obtain written permission of Party A, apply to competent house
administrative departments for changes in the use according to relevant laws and
regulations, and is not allowed to use the apartment for any other purposes
other than as approved. 

Article 7 Party A shall hand over the apartment to Party
B before September 1, 2009 and handle relevant hand-over formalities.


In case Party A fails to hand over the apartment as specified
in the previous article, Party B shall have the right to extend the valid term
of the Agreement accordingly, and both parties shall sign in writing for
confirmation and report to the agreement registration authority for recording.


Article 8 At the time of hand-over, both parties shall
check and confirm on the status of the apartment, ancillary facilities and
properties, and list clearly in the attached page. 

Article 9 At the time of hand-over, Party A can collect
a guarantee equal to the rent for____months, namely RMB 55,000 (in word:
say RMB fifty-five thousand only). 

Party A shall issue a receipt to Party B for collection of the
guarantee. Party A shall return the guarantee to Party B under the following
conditions: 

	1. 	
      The term of lease expires, and all fixed decorations,
      air-conditioners, fire-fighting devices and others in the apartment are
      maintained under good conditions.

	 	 
	2. 	
      Party B has paid off relevant expenses and fees and
      sent a written notice on reletting to Party A one month in
    advance.



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	3. 	
      No management fees, air-conditioner charges,
      utilities, maintenance costs and any other expenses payable are in
      arrears, and no payment of rent is delayed during the term of
      lease.



[   ] Only one of the above-listed conditions is
required. 

X All conditions hereinabove must be satisfied. 

(Both parties shall jointly select one of the two options and
mark with a “X”.) 

Party A will not return the guarantee in case of any one of the
following circumstances: 

1. The term of leases is not expired, and fixed decorations,
air-conditioners, firefighting devices or others in the apartment are
damaged. 

2. Party B fails to pay off relevant expenses and fees and
send a written notice on reletting to Party A one month in advance.


3. Any management fees, air-conditioner charges, utilities,
maintenance costs and any other expenses payable are in arrears, or there
is overdue rent during the term of lease. 

Article 10 During the term of lease, Party A shall be
responsible for land use fee, taxes, house rental management fee and the
________ expense related to the rental, and Party B for timely payment of
utilities, sanitation service fees, property (building) management fee, charges
on air-conditioners, parking lot, telephone and network as well as other
expenses related to use of the apartment. 

Article 11 Party A shall ensure the apartment and
ancillary facilities to realize the purposes for the rental and its safety in
compliance with relevant laws, regulations or rules. 

If Party B suffers or is subject to personal injuries or
property damages in the apartment due to intentional acts or negligence of Party
A, Party B shall have the right to claim against Party A for compensation. 

Article 12 Party B shall use the apartment and ancillary
facilities reasonably and is not allowed to utilize the apartment for engagement
in any illegal acts or behaviors; party A shall not disturb or interfere in
normal and reasonable use of the apartment by Party B. 

Article 13 In case of damages or failures in the
apartment or ancillary facilities not caused by Party B during use, and safe and
normal use of the apartment is affected as a result, Party B shall timely notify
Party A and take all possible measures to prevent further expansion of the
defects or failures, and Party A shall repair or entrust Party B for repair
within five days after receiving the notice. If Party B is not possible
or inconvenient to notify Party A or Party A fails to perform the obligation of
repair within the specified period hereinabove, Party B can repair on behalf of
Party A after applying to the agreement registration authority for recording.


If the apartment or ancillary facilities must be repaired
immediately for emergencies, Party B shall repair on behalf of Party A in advance and notify
relevant conditions to Party A on a timely basis. 

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All maintenance costs occurred under the two circumstances
hereinabove (including reasonable expenses on repair on behalf of Party A and
for prevention of further expansion of defects or failures) shall be born by
Party A. If Party B fails to notify Party A or take any effective measures as
specified in the above two clauses, and damages are expanded as a result, Party
B shall be responsible for this (expanded) part of maintenance costs at its own
account. 

Article 14 In case of damages or failures in the
apartment or ancillary facilities that may affect safe use of the apartment due
to improper or unreasonable use of Party B, Party B shall notify Party A on a
timely basis and be responsible for repair or compensation. If Party B refuses
to repair or compensate, Party A can repair on behalf of Party B after applying
to the registration authority for recording, and relevant costs shall be born by
Party B. 

Article 15 In case of reconstruction, extension or
decoration of the apartment by Party A or Party B during the valid term of the
Agreement, both parties shall sign a supplementary written agreement. 

In case of circumstances in the previous clause, both parties
shall apply to relevant departments for approval as required and are not allowed
to proceed before the approval is obtained. 

Article 16

× During the term of lease, Party B can sublet all of or part
of the apartment to other third parties and handle registration formalities in
the house rental administrative department, but the term of subletting shall not
exceed the term specified in this Agreement. 

× Party B is not allowed to sublet all of or part of the
apartment to any other third parties. With written permission of Party A,
however, Party B can submit the written certificate of approval to the house
rental administrative department for handling of registration formalities, but
the term of subletting cannot exceed the term of lease agreed herein. 

X During the term of lease, Party B is not allowed to sublet
all of or part of the apartment to any other third parties. 

(Both parties shall jointly select one of the three options and
mark with a “X”.) 

Article 17 If planning to transfer all of or part of
ownership of the apartment during the valid term of the Agreement, Party A shall
send a written notice to Party B one month before the transfer, and Party B
enjoys the right of pre-emption on an equal footing. 

If the apartment is transferred to a third party, Party A is
liable to notify the assignee to continue to perform the Agreement when the
transfer contract is signed. 

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Article 18 During the valid term of the Agreement,
termination or modification of the Agreement is allowed in case of any one of
the following circumstances: (1) Force majeures that make it impossible to
perform the Agreement; (2) Requisition, acquisition, resumption or removal of
the apartment by government; (3) Consensus is reached between both parties
through consultation. 

Article 19 In case of any one of the following
circumstances, Party A can: 

	[   ] 	Claim against Party B for
      damages; 
	 	 
	X  	Refuse to return
      the guarantee; 
	 	 
	[   ] 	Require Party B to pay a penalty
      of RMB (in word: say RMB only) for losses caused thereby.



(Both parties shall jointly select one of the three options and
mark with a “X”.) 

(1) Party B pays the rent with a delay over seven days (
months) or above; 

(2) Party B fails to pay expenses up to or over RMB 5, 000 as
scheduled that may cause losses to Party A; 

(3) Party B utilizes the apartment for engagement in illegal
acts that may damage public interests or interests of others; 

(4) Party B changes the structure or use of the apartment
without approval; 

(5) Party B refuses to bear the obligation of repair or payment
of maintenance costs against stipulations in Article 14 herein, as a result, the
apartment or equipments in the apartment is (are) seriously damaged; 

(6) Party B decorates the apartment without permission of Party
A or approval of competent authorities; 

(7) Party B sublets the apartment to a third party without
permission. 

Besides investigation into the responsibility for damages or
liability for breach of Party B, Party A shall have the right to terminate the
Agreement or propose to Party B for modification of terms and conditions herein
according to actual conditions. 

Article 20 In case of any one of the following
circumstance, Party B can: 

[   ] Claim against Party A for damages; 

X Request Party A to return the guarantee in double; 

[   ] Request Party A to pay a penalty of RMB___ (in
word: say RMB ______only) for damages caused thereby. 

(Both parties shall jointly select one of the three options and
mark with a “X”.) 

(1) Party A hands over the apartment with a delay over
seven days ( months); 

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(2) Party A breaches agreements in clause 1 under Article 11
herein, and Party B is not able to realize the purposes of the rental as a
result; 

(3) Party A refuses to bear the obligation of repair or payment
of maintenance costs against stipulations in Article 13 herein; 

(4) Party A carries out reconstruction, extension or decoration
of the apartment without permission of Party B or approval of competent
authorities. 

Besides investigation into the responsibility for damages or
liability for breach of Party A, Party B shall have the right to terminate the
Agreement or propose to Party A for modification of terms and conditions herein
according to actual conditions (Party B shall send a written notice and return
the apartment to Party A after obtaining compensation). 

Before Party A receives the notice and Party B obtains the
compensation, Party B is not required to pay rent to Party A. 

Article 21 After termination of the Agreement, Party B
shall evacuate and return the apartment to Party A within three days,
ensure the apartment and ancillary facilities under good conditions (except for
normal wear), pay off expenses/costs born by its own party and handle relevant
hand-over formalities. 

If Party B fails to evacuate or return the apartment as
stipulated, Party A shall have the right to take back the apartment and collect
rent due in the delayed period from Party B in double. 

Article 22 If intending to continue to rent the
apartment after expiry of the agreed term of lease, Party B shall raise the
requirement for reletting to Party A one month before expiry and enjoy
the priority in leasing the apartment on a equal footing. 

In case a consensus on reletting is reached, both parties shall
sign on a new agreement and handle re-registration formalities in the
registration authority. 

Article 23 The apartment provided by Party A shall meet
standards and conditions for safety and be free of any potential safety hazards.
The construction, fire-fighting equipments, gas and power facilities, entrance,
exit and passage of the apartment shall be in compliance with regulations or
standards of competent government departments on safety, fire proof, security,
environmental protection and sanitation. Party B shall use the apartment in
strict accordance with the regulations or standards of competent government
departments on safety, fire proof, security, environmental protection and
sanitation, and ensure the apartment free of any potential safety hazards during
use. Both parties shall abide by terms and conditions specified herein
consciously. Either party breaching the Agreement shall bear corresponding
liabilities for breach as agreed. 

Article 24 Party A and Party B can reach supplementary
agreements in the attached page in case of any matters not covered herein; the
attached page is an integral part of the Agreement with equal effect after being
signed and sealed by both parties. 

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In case an agreement on modification of terms and conditions
herein is reached during the term of lease, both parties shall register in the
former registration authority, and the agreement newly reached shall be equal to
the Agreement in legal effect after registration. 

Article 25 In case of disputes related to performance of
the Agreement, both parties shall seek for settlement through consultation, or
apply the registration authority for mediation in case consultation fails, or:


	[  ] 	
      Apply to Shenzhen Arbitration Commission for
      arbitration;

	 	 
	
      [  ] 
	
      Apply to China International Economic and Trade
      Arbitration Commission Shenzhen Branch for arbitration;

	 	 
	X	
      File a lawsuit to the people’s
court.



(Both parties shall select one of the above three options for
settlement of disputes through consultation and mark with a “X”.) Article
26 This Agreement shall become effective after the date of signing. 

Party A and Party B shall go to the competent authority for
registration and recording within ten days after the date when the Agreement is
signed and entered into effective. 

Article 27 The Chinese version of the Agreement is the
original. 

Article 28 This Agreement is made in four
duplicates, one for Party A, one for Party B, one for the
agreement registration authority and one for relevant administrative
department. 

 

Party A (signature): /s/ Ding
Jie________________________ 

Legal Representative: Ding Jie 

Phone: 13798315819 

Account No.: 

Entrusted Agent
(signature):                    
August 31, 2009 

Party B (signature):_/s/ Chen
Debin____________________ 

Legal Representative: Chen Debin 

Phone: 13603077047

Account No.: 

Entrusted Agent
(signature):                     August
31, 2009 

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Registered or Recorded by (signature): 

 

Agreement registration (recording) Authority
(signature):           
 August 31, 2009 

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Supplementary Agreement 

Based on consensus reached between Party A and Party B through
consultation, the following modifications and supplementation are made in part
of terms and conditions in the Shenzhen municipal real estate rental agreement
Shen (Fu) No. 03784771 signed by and between Ding Jie and Chen
Debin on August 31, 2009 (hereinafter referred to as “the main
agreement” or “the Agreement”). In case of discrepancies between the
modifications/supplementation and the main agreement, the supplementary
agreement shall apply. 

1. Party A rents the apartment at No. 08,
14th Floor, Block A, Building 1, Xiandai Business
Mansion at the cross of Jintian Road and Fuhua Road, Futian District,
Shenzhen Municipality (hereinafter referred to as “the property”) to Party B for
office use, the term of lease of which is one year from September 1,
2009 to August 31, 2010. Rent of the property is (in word) RMB say
twenty-two thousand only (in figure: RMB 22,000). During the
term of lease, all taxes, dues and rental administration fees incurred by the
rental shall be paid by Party A, while property management fee, charges
on air conditioners, utilities, parking fee, and expenses on telephones and
network and other expenses related shall be born by Party B. 

2. Party B shall pay rent to Party A in full on a timely basis
during the term of lease. In case of delay in payment of rent, Party B shall pay
an overdue fine of 3% of the amount delayed for a day to Party A; the rental
guarantee provided by Party B shall not be used for deduction of rent; if Party
B pays the rent with a delay up to or over 5 (five) days, Party A shall have the
right to cut off power and lock the door; in case the delay in payment of rent
exceeds 7 (seven) days or the amount in arrears (charges/expenses/fees) reaches
RMB five thousand or above, and Party A suffers losses as a result, Party A
shall have the right to terminate the rental agreement unilaterally (In case of
unilateral termination, Party A will notify Party B by announcement or mail to
the address specified in the main agreement; Party B shall be deemed as having
been informed within two days after the mail is sent out or on the date of
announcement. After the notice is delivered to Party B, Party A shall have the
right to take back the apartment, cancel registration (recording) of the main
agreement unilaterally and rent the apartment to a third party.) Any losses and
consequences caused thereby shall be born by Party B. 

The monthly rent during the term of lease is listed below: 


	Starting Time 	End Time 	Monthly Rent (RMB) 
	September 1, 2009 	August 31, 2010 	22,000.00 



3. As the office decoration of the property is required by
Party B, Party A has finished decoration and paid the expense in advance at one
time, Party B shall repay the expense on decoration to Party A on a monthly
basis during the term of lease. Therefore, besides the rent, Party B shall pay a
monthly amount on decoration of: RMB six thousand (in figure: RMB
6,000) additionally during the term. The amount must be paid together
with the monthly rent. If payment of the amount is delayed for 7 (seven) days or
above or the amount in arrears is up to or over RMB 5,000, Party A shall have
the right to terminate the Agreement and deduct the amount in arrears from the rental guarantee.


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4. Within one month after the property is handed over to Party
B for use, maintenance of the property includes but is not limited to:
wallpaper, carpet, ceiling, lights and switches etc., which shall be under the
responsibility of Party A; one month after the hand-over and before expiry of
the lease term, maintenance of the property includes but is not limited to:
wallpaper, carpet, ceiling, lights and switches etc., which shall be under the
responsibility of Party B or performed by Party A at the expense of Party B. In
case of fires or violence caused by Party B during the term of lease, and the
property is damaged as a result, Party B shall be responsible for repair and
maintenance at its own account. 

5. After the main agreement is terminated through consultation
between both parties or expired naturally, Party B shall remove its articles
from the property and return the property to Party A within three days after the
date of termination or expiry; if failing to remove the articles within the
period specified, Party B will be deemed as having discarded the articles not
removed, and Party A shall have the right to dispose as discarded materials at
the expense of Party B. 

6. After expiry of the Agreement, Party A shall return the
guarantee of rental for two months without interest in full if Party B meets the
following conditions: 

(1) The term of lease is expired and all fixed decorations, air
conditioners, fire fighting facilities, lights and switches in the property are
maintained under good conditions. 

(2) Party B has notified Party A in writing on reletting of the
property one month in advance. 

(3) No management fees, charges on air conditioners, utilities
and maintenance costs are in arrears, and no payment of house rent is delayed
during the term of lease. 

(4) There is no breach to the Agreement and all expenses
payable are paid off in full during the term of lease. 

7. Account No. of Party A for collection of monthly rent and
guarantee: 

Bank of deposit: China Merchants Bank (Central Business Mansion
Branch) 

Account name: Ding Jie 

Account No.: 4682 0375 5656 5819 

8. The main agreement and notices mentioned in the
supplementary articles shall be made in writing. The supplementary agreement is
made in four duplicates, which shall become effective as of the date when being
signed by both parties and shall be equal to the main agreement in legal effect.
In case of any matters not covered herein, both parties shall seek for
settlement through friendly consultation, or file a lawsuit to the People’s
Court of Futian District, Shenzhen if consultation fails. 

	Agent of Party A (signature): 	Agent of Party B (signature): 
	/s/ Jie Ding_______ 	/s/ Debin Chen____ 
	     Jie Ding 	     Debin Chen 
	  	  
	August 31, 2009 	August 31, 2009 
	ID No.: 53280119791118411x 	ID No.: 320831197103123818 


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