Document:

Exhibit 10.7

              Elite Business Machines Manufacturing Company Limited

                             MANUFACTURING AGREEMENT

This Manufacturing Agreement ("Agreement") is entered into at Kwun Tong,
Kowloon, Hong Kong, on March 10, 2004, between Elite Business Machines
Manufacturing Company Limited, a Hong Kong incorporated company whose principal
office is at 10th Floor, Elite Industrial Building, 135 - 137 Hoi Bun Road, Kwun
Tong, Kowloon, Hong Kong ("EBM"), and FreeHand Systems Inc., whose office is at
95 First Street, Suite 200, Los Altos, CA 94022, U.S.A. ("FreeHand").

In consideration of the mutual promises contained herein, the parties agree as
follows:

1.       DEFINITIONS

(a)      In this Agreement and the Exhibits, each of the following expressions
         has the following meaning unless the context otherwise requires:

         "Delivery Date" means an anticipated date of delivery of the Products
         to FreeHand by EBM as specified by FreeHand in a Purchase Order.

         "Equipment" means the tools, machinery and equipment of FreeHand as
         referred to in Clause 3.

         "Handling Charge" means any handling charge payable by EBM to a Vendor
         in respect of an order placed by EBM to the Vendor for Materials under
         the terms of such order.

         "Improvement" means any development, enhancement, improvement or other
         modification or derivative of a Product, its design or manufacturing
         process.

         "Intellectual Property" means any patent, copyright, trademark,
         registered or unregistered design, or any application for any of the
         foregoing, any rights in respect of confidential information, or any
         other intellectual property rights of FreeHand relating to a Product,
         its design or manufacturing process.

         "Know-how" means the information, formulae, data and design of FreeHand
         relating to the Products or the manufacturing process of the Products
         as referred to in Clause 6(a).

         "Materials" means the raw materials or components to be purchased by
         EBM from a Vendor in accordance with Sub-Clauses 2(e)(ii) and 2(e)(iii)
         for the manufacture of the Products under the terms of this Agreement.

         "Products" means those products as described in Exhibit A.

         "Purchase Price" means the price for each Product as described in
         Exhibit A.

         "Purchase Order" means any purchase order to be submitted by FreeHand
         to EBM for the Products in accordance with the terms of this Agreement.

         "Specifications" means the quality requirements, standards and
         specifications for the Products as described in Exhibit A."Vendor"
         means a third party vendor or supplier of any materials or components

<PAGE>

         to EBM for the manufacture of the Products under the terms of this
         Agreement, who shall be included in FreeHand's approved vendors list as
         shall be provided by FreeHand to EBM or other vendors recommended by
         EBM and approved by FreeHand.

(b)      Any reference in this Agreement to Clauses and Exhibits shall be a
         reference to the clauses in, or exhibits to, this Agreement.

(c)      Any reference in this Agreement to a "day" shall mean a calendar day
         and "days" shall be construed accordingly.

(d)      Any reference in this Agreement to a "party" shall mean a party to this
         Agreement and "parties" shall be construed accordingly.

(e)      The headings or sub-headings of this Agreement are for convenience only
         and shall not affect the interpretation of this Agreement.

2.       TERMS OF PURCHASE OF PRODUCTS BY CUSTOMER

(a)      Terms and Conditions
         --------------------

         (i)      FreeHand hereby engages EBM, subject to the terms and
                  conditions of this Agreement, to manufacture and deliver the
                  Products to FreeHand and FreeHand hereby accepts the
                  engagement.

         (ii)     All Products supplied by EBM under this Agreement shall
                  conform to the Specifications in all respects which are set
                  out in Exhibit A. The Specifications may be amended from time
                  to time by agreement of the parties by way of amending a
                  Purchase Order.

(b)      Purchase Price
         --------------

         (i)      FreeHand shall pay to EBM the Purchase Price for each Product
                  manufactured and delivered by EBM. The Purchase Price shall
                  not include any value added tax, sales tax, or import of
                  export tax that may be chargeable on each party in relation to
                  the Products and each party shall be responsible for such tax
                  as may be chargeable to it.

         (ii)     The Purchase Price shall be payable by FreeHand to EBM within
                  30 days after FreeHand's receipt of the relevant invoice from
                  EBM or commencement of shipment of the relevant Products,
                  whichever is later.

         (iii)    The Purchase Price is specified in Exhibit A and shall be
                  denominated in U.S. Dollars unless otherwise agreed by the
                  parties. EBM and FreeHand may review the Purchase Price in the
                  event of any change in the unit volume of the Products to be
                  manufacture red, costs for Materials, manufacture process or
                  other circumstances as may be agreed by the parties. Any
                  revision to the Purchase Price shall be subject to agreement
                  of the parties and reflected in a revised Purchase Order.

<PAGE>

(c)      Purchase Orders and Product Forecasts
         -------------------------------------

         (i)      FreeHand will submit to EBM a "first time" Purchase Order of
                  500 units of the Products ("First PO") as soon as practicable
                  after this Agreement is entered into. The first 10 units of
                  the Products to be manufactured pursuant to the First PO will
                  constitute pre-production samples ("First Article") and shall
                  be delivered to FreeHand for its inspection and approval
                  within six weeks from the date of the First PO.

         (ii)     EBM shall not commence the manufacture of the balance of 490
                  units of the Products pursuant to the First PO ("Remaining
                  Units") until the following conditions ("Conditions") are
                  satisfied:

                  (1)      FreeHand has approved the First Article in writing
                           within 6 weeks of the delivery of the First Article
                           by EBM; and

                  (2)      FreeHand has obtained the approvals as referred to in
                           Clause 2(c)(v).

         (iii)    The Remaining Units will be manufactured and delivered to
                  FreeHand according to the EBM lead-time provided.

         (iv)     Upon receipt of the First PO,

                  (1)      EBM shall be authorized by FreeHand to utilise all
                           raw materials or components for the manufacture of
                           the 500 units of the Products under the First PO,
                           except for raw cards, sheet metal components, and any
                           additional items identified within the terms and
                           conditions of "First PO" which shall not be purchased
                           and/or utilised except for the purposes of the
                           manufacture of the First Article or unless the
                           Conditions are satisfied; and

                  (2)      EBM shall maintain sufficient stocks of liquid
                           crystal displays and touch screens for the
                           manufacture of the Remaining Units, but shall not
                           assemble such liquid crystal displays and touch
                           screens except for the purposes of the manufacture of
                           the First Article or unless the Conditions are
                           satisfied.

         (v)      FreeHand shall use its reasonable endeavours to obtain the
                  United States UL or FCC approvals and European CE agency level
                  approvals with respect of the Products no later than 6 weeks
                  from FreeHand's approval of the First Article as referred to
                  in Clause 2(c)(ii).

         (vi)     Immediately after completion and delivery of the Remaining
                  Units under the First PO, FreeHand shall submit, on a monthly
                  basis and at a minimum,

                  (1)      a binding rolling 3 months of Purchase Orders for the
                           Products in accordance with Clause 2(f); and

                  (2)      a non-binding rolling six (6) months forecast of
                           orders by FreeHand for the Products.

(d)      Long Lead Items
         ---------------

                  EBM shall provide a list of "long lead items" as part of the
                  Products, which shall be delivered to FreeHand with a

<PAGE>

                  lead-time of 8 weeks or more. These items will be listed in
                  Exhibit B. EBM shall not extend the lead-time for these "long
                  lead items" without the prior approval of Freehand.

(e)      Resources and Materials
         -----------------------

         (i)      EBM shall at all times maintain the capacity and resources,
                  including but without limitation to, as to plant, machinery
                  and appropriately trained and experienced personnel together
                  with all applicable consents, licences and approvals to fulfil
                  its obligations under this Agreement.

         (ii)     EBM shall purchase from a Vendor and maintain sufficient stock
                  of Materials based upon the Purchase Orders received from
                  FreeHand.

         (iii)    EBM agrees to purchase the Materials based upon the Purchase
                  Order's received from Freehand. EBM agrees to purchase
                  components according to FreeHand's approved vendor list (AVL)
                  or EBM vendor's previously approved by FreeHand.

         (iv)     FreeHand acknowledges its financial responsibility for the
                  Materials purchased by EBM on behalf of FreeHand in accordance
                  with Sub-Clauses 2(e)(ii) and 2(e)(iii). In the event of a
                  cancellation of a Purchase Order, or discontinuance of
                  manufacturing process of the Products, or excess Materials are
                  created in each of the above circumstances due to a change of
                  the engineering requirements for the manufacture of the
                  Products, or a change is made to a Purchase Order in respect
                  of Product combinations or quantities, FreeHand agrees to
                  compensate EBM to the extent of the following amounts:

                  (1)      the Purchase Price of all finished Products in EBM's
                           possession, which shall thereafter be delivered to
                           FreeHand;

                  (2)      the cost of the Materials in the possession of EBM
                           and not returnable to the relevant Vendor, such costs
                           including any Handling Charges and any value added to
                           such Materials due to any manufacturing process
                           performed by EBM, whether or not such Materials are
                           raw materials or have been processed by EBM, [,
                           including materials which are less than the FreeHand
                           agreed upon minimum order quantity];

                  (3)      the cost of the Materials in respect of which EBM has
                           placed an order to a Vendor but not already received
                           by EBM, including any Handling Charges, provided that
                           the relevant order cannot be cancelled; and

                  (4)      any cancellation charges payable to a Vendor with
                           respect to orders placed for the Materials being
                           cancelled or Materials being returned to the Vendor,

                  provided that EBM shall not be compensated if (i) such
                  Materials can be utilized for the manufacture of any Product
                  pursuant to the other Purchase Orders received by EBM or for
                  other purposes or (ii) if the occurrence of any of the above
                  events is resulted from an act or omission by EBM.

         (v)      EBM shall submit to FreeHand an invoice for the amount(s) as
                  mentioned in Sub-Clause 2(e)(iv) and FreeHand shall pay for
                  the amount as stated in such invoice within 30 days of the
                  date of receipt of the invoice.

<PAGE>

(f)      Order and Acceptance
         --------------------

         (i)      All Purchase Orders for the Products submitted by FreeHand to
                  EBM shall be in writing and with a Delivery Date. To
                  facilitate scheduling of EBM's production, FreeHand shall
                  submit a Purchase Order to EBM at least ninety (90) days prior
                  to the first day of the month of the relevant Delivery Date.

         (ii)     EBM shall use its reasonable efforts to notify FreeHand
                  promptly and within 5 working days of receipt of a Purchase
                  Order of the acceptance or rejection of a Purchase Order and
                  whether or not the Delivery Date is agreed by EBM for the
                  Purchase Order. EBM shall not unreasonably reject a Purchase
                  Order or withhold its agreement to a Delivery Date if the
                  Purchase Order is submitted by FreeHand in accordance with
                  Clause 2(f)(i).

         (iii)    As soon as EBM is aware of any potential delivery delay (which
                  shall not be later than [o] days of the Delivery Date or other
                  agreed date of delivery), EBM will notify FreeHand as to the
                  cause and extent of such delay.

(g)      Preferred B Shares
         ------------------

         FreeHand agrees to issue certain shares in the share capital of
         FreeHand to EBM in accordance with the terms and conditions as set out
         in Exhibit C, and EBM agrees to accept such shares in lieu of any
         letter of credit or any other form of security to be issued in favour
         of EBM during the term of this Agreement or such other period as
         determined by Freeland.

(h)      Shipment, Title and Risks
         -------------------------

         (i)      All Products delivered pursuant to the terms of this Agreement
                  shall be suitably packed for air or sea freight shipment in
                  EBM's or, if requested by FreeHand, FreeHand's shipping
                  cartons, marked for shipment at FreeHand's address set forth
                  above, or such other address as may be supplied by FreeHand,
                  and delivered to FreeHand or its carrier agent in Hong Kong or
                  China. Subject to the foregoing, details of the delivery
                  address and other requirements for shipment shall be specified
                  by FreeHand in the Purchase Order.

         (ii)     The title to the Products manufactured by EBM shall pass to
                  FreeHand upon shipment irrespective of whether delivery has
                  taken place.

         (iii)    The risks in relation to the Products shall pass to FreeHand
                  upon shipment. EBM shall give such reasonable notice to
                  FreeHand to enable FreeHand to insure at its own costs against
                  the risks in relation to the Products during shipment and if
                  EBM fails to do so, the Products are deemed to be at EBM's
                  risk during shipment.

(i)      Kickoff and Review Meetings
         ---------------------------

         (i)      An initial kickoff meeting will take place at EBM's premises
                  as soon as practicable after the signing of this Agreement by
                  the Parties whereby the Products and its Specifications,
                  production flow, documents relating to this Agreement such as
                  the Purchase Orders and invoices, and all business issues
                  relating to the manufacture and supply of the Products under
                  the terms of this Agreement will be discussed by the parties.
                  However, it is not intended by the parties that the
                  discussions at such kickoff meeting will modify the terms of
                  this Agreement.

<PAGE>

         (ii)     EBM and FreeHand shall meet once in every four months from the
                  date of this Agreement to review any matters likely to be
                  relevant to the manufacturing of the Products, such as any
                  production issues, quality issues, Improvements on the
                  Products, business environment and cost reduction plans.

(j)      Reschedule of Delivery Date
         ---------------------------

         Except for the First PO, FreeHand may reschedule the Delivery Date in
         respect of all or part of the Products pursuant a Purchase Order,
         provided written notice is given to EBM at least 30 days prior to the
         anticipated date of shipment (which EBM shall give FreeHand reasonable
         notice) and the rescheduled delivery date is not later than 90 days of
         the Delivery Date. If the rescheduled delivery date goes beyond 90 days
         of the Delivery Date, EBM may in its sole discretion consider such
         Purchase Order as being cancelled if both parties agree to material
         exposure and compensation of such material.

(k)      Inspection and Defective Products
         ---------------------------------

         (i)      EBM authorizes FreeHand to send its officers or agents to
                  visit the premises where the Products are manufactured or
                  stored by EBM during normal working hours and with reasonable
                  notice to inspect whether the Products manufactured or being
                  manufactured meet the Specifications and/or whether the
                  Equipment as referred to in Clause 3 are in good condition and
                  properly maintained.

         (ii)     If as a result of the inspection pursuant to Clause (2)(k)(i),
                  FreeHand is not satisfied that the Products being manufactured
                  or stored comply with the Specifications, FreeHand shall
                  inform EBM in writing accordingly and EBM shall take such
                  steps as necessary to ensure compliance.

         (iii)    Upon receipt of a delivery of the Products, FreeHand shall
                  perform an initial inspection of such Products to verify
                  whether the Products meet the relevant Specifications. Without
                  prejudice to the warranties given under Clause 4, FreeHand
                  shall be entitled to reject and return to EBM based on agreed
                  upon returns, any Products which do not meet any Specification
                  upon such initial inspection. Upon receipt of Products, EBM
                  shall repair or replace within a 30 day period.

(l)      Insurance
         ---------

         EBM shall at its own costs, maintain insurance in respect of all
         quantities of Equipment in its possession, such insurance to be in such
         amounts and against such risks as FreeHand may reasonably require, and
         shall procure that FreeHand's interest in the Equipment is noted on the
         policy documents.

3.       FREEHAND'S EQUIPMENT

(a)      Ownership and Usage
         -------------------

         All Equipment furnished by FreeHand to EBM or purchased by EBM on
         behalf of FreeHand and paid by FreeHand in connection with the
         manufacture of the Products under this Agreement shall:

<PAGE>

         i)       be clearly marked and remain the personal Equipment of
                  FreeHand;

         ii)      be kept free of any liens and encumbrances; and

         iii)     not be used for any purpose other than for the manufacturing
                  of the Products in accordance with the terms of this
                  Agreement.

(b)      Risks and Insurance
         -------------------

         Notwithstanding Clause 3(a), EBM shall hold FreeHand's Equipment at its
         own risk and shall maintain at its own costs insurance in respect of
         the Equipment, and shall procure that FreeHand's interest in the
         Equipment is noted on the policy documents.

(c)      Maintenance
         -----------

         EBM shall ensure that FreeHand's Equipment are in good condition and
         properly maintained and shall not modify the Equipment without the
         written permission of FreeHand. Upon FreeHand's request, EBM shall
         return the Equipment to FreeHand in the same condition as initially
         received by EBM with the exception of reasonable and fair wear and
         tear.

(d)      Indemnity
         ---------

         In the event the Equipment is lost, damaged or destroyed due to EBM's
         entire fault, EBM shall indemnify FreeHand for such loss, damage or
         destruction of the Equipment, subject to a maximum amount which shall
         equal to the book value of the relevant Equipment as at the date of the
         lost, damage or destruction.

4.       WARRANTY

(a)      Warranties
         ----------

         EBM warrants to FreeHand that for a period of one year from the date of
         delivery of a Product to FreeHand, that,

         (i)      such Product will conform in all respects to the
                  Specifications and has satisfied such testing and inspection
                  by EBM to ensure that they are in accordance with
                  Specifications;

         (ii)     such Product will be of satisfactory quality and free from
                  defects in workmanship or materials except that the defects
                  are due to any defect in the Know-how or the Equipment
                  provided by FreeHand to EBM, or Materials supplied by a Vendor
                  and not modified by EBM; and

         (iii)    such Product will be free and clear of all liens and
                  encumbrances and that EBM will convey to FreeHand good and
                  marketable title to such Products.

(b)      Remedies for Breach
         -------------------

         Subject to Clause 4(d), in the event that any Product delivered to
         FreeHand does not comply with the foregoing warranties, EBM shall, at
         EBM's option, either:

<PAGE>

         (i)      pay to FreeHand and hold FreeHand harmless for any damages due
                  to such non-compliance of the warranties, subject to a maximum
                  amount of the Purchase Price paid by FreeHand for such
                  Product; or,

         (ii)     at EBM's expense, replace or repair such Product. If mutually
                  agreed by the parties, FreeHand may repair the Products and
                  the costs or expenses for the repair shall be reimbursed by
                  EBM.

(c)      Entire Remedies
         ---------------

         Subject to Sub-Clauses 2(c)(ii) and 2(k)(iii), the remedies as referred
         to in Clause 4(b) constitutes FreeHand's entire remedies against EBM
         for any breach of warranties.

(d)      Exception
         ---------

         EBM shall have no responsibility or obligation to FreeHand under any
         warranty claims with respect to the Products that have been subject to
         abuse, misuse, accident, alteration, neglect or unauthorized repair by
         any party except EBM.

(e)      Waiver
         ------

         EXCEPT FOR THE WARRANTIES CONTAINED IN THIS CLAUSE, EBM EXPRESSLY
         DISCLAIMS ANY OBLIGATIONS, AND FREEHAND WAIVES ALL OTHER RIGHTS, IN
         RESPECT OF ANY REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED,
         STATUTORY OR ARISING BY THE COURSE OF DEALING OR PERFORMANCE, CUSTOM,
         USAGE IN THE TRADE OR OTHERWISE, REGARDING THE PRODUCTS, INCLUDING BUT
         WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE AND
         FITNESS FOR A PARTICULAR USE.

5.       TERM AND TERMINATION
         --------------------

(a)      Term
         ----

         This Agreement shall continue in force for an initial term of one (1)
         year from the date hereof ("Initial Term") unless terminated earlier in
         accordance with this Clause 5. At the expiration of the Initial Term,
         this Agreement shall automatically be renewed for every successive
         period of one (1) year ("Successive Term"), unless either party
         notifies the other party in writing at least one hundred eighty (180)
         days prior to the expiration of any Successive Term that this Agreement
         shall not be so renewed.

(b)      Termination
         -----------

         (i)      This Agreement may be terminated, without penalty on either
                  party and with or without any reason, by giving the other
                  party one hundred eighty (180) days prior written notice.

         (ii)     Either party may also terminate this Agreement forthwith by
                  written notice to the other party if:

                  (1)      the other party becomes insolvent, or insolvency or
                           winding-up proceedings have been commenced against
                           the other party;

<PAGE>

                  (2)      a receiver, administrative receiver, manager or
                           officer being appointed by any person in respect of
                           all or part of the other party's property, assets or
                           undertaking;

                  (3)      the other party ceases, or threatens to cease, to
                           carry on business;

                  (4)      the other party commits a material breach of this
                           Agreement and such breach remains unremedied after
                           the expiry of 30 days following the receipt by the
                           other party a written notice requiring such breach to
                           be remedied; or

                  (5)      in accordance with Clause 12 of this Agreement.

(c)      Return of Equipment and Materials
         ---------------------------------

         Upon the termination of this Agreement, either party shall cease to use
         all property of the other party which are in its possession or control,
         including all equipment, know-how, intellectual property rights,
         designs, drawings, photographs, samples and literature of every kind, ,
         and shall within thirty (30) days after the termination of this
         Agreement, return at its own costs such property to the other party by
         shipment. Neither party shall make, use, or retain any copies of any
         confidential information of the other party after the termination of
         the Agreement.

(d)      Effect of termination
         ---------------------

         Termination by either party for any reason under this Clause:

         (i)      shall not prejudice the other party of its rights or
                  obligations accrued or become due prior to the date of such
                  termination;

         (ii)     shall not prejudice the rights or remedies which any party may
                  have in respect of any breach of the terms of this Agreement
                  prior to the date of the termination; or

         (iii)    this Clause or Clauses 4 (Warranties), 8 (Confidentiality), 9
                  (Limitation of Liability), 10 (Governing Law and
                  Jurisdiction), 11 (Assignment), 15 (Entire Agreement), 16
                  (Severability) and 18 (Notice) which shall continue in force
                  after such termination.

6.       KNOW-HOW AND INTELLECTUAL PROPERTY

(a)      FreeHand authorises EBM to use the Know-how and the Intellectual
         Property as may be disclosed by FreeHand to EBM for the purposes of
         performing its obligations under this Agreement. Any disclosure of such
         Know-how or Intellectual Property shall be subject to the
         confidentiality provisions in Clause 8.

(b)      Subject to Clause 6(a), EBM shall have no rights in respect of any of
         the Know-how and the Intellectual Property disclosed to it, and EBM
         shall not use any of such Know-how or Intellectual Property except for
         the purposes specified in Clause 6(a).

(c)      EBM shall at the request and expense of FreeHand take all such steps as
         FreeHand may reasonably require to assist FreeHand in maintaining the
         validity and enforceability of any rights of the Intellectual Property

<PAGE>

         disclosed to it, and shall enter into such formal licences as FreeHand
         may reasonably request for this purpose.

(d)      EBM shall promptly and fully notify FreeHand of any actual or
         threatened infringement of any Intellectual Property which comes to
         EBM's notice, or which EBM suspects has taken or may take place.

7.       IMPROVEMENTS

(a)      FreeHand shall provide EBM with details of any Improvement which it
         wishes to be incorporated into the Product which it wishes to be made
         to the Product from time to time. EBM shall not unreasonably withhold
         its consent to the incorporation into the Product of any Improvement.

(b)      Where the incorporation of any Improvement to the Product requires any
         amendment to the Specifications, the EBM shall, as soon as practicable,
         submit to FreeHand for approval pre-production samples of the Product
         in accordance with the amended Specifications.

(c)      EBM shall provide FreeHand with details of any Improvement which is
         made, developed or acquired by EBM from time to time.

(d)      The title to all intellectual property rights in respect of any
         Improvement made, developed or acquired independently by either party
         shall belong to that party, provided that Freehand shall be entitled to
         use any Improvement which is made, developed or acquired by EBM, and
         any intellectual property of EBM relating to such Improvement, for
         FreeHand's own purposes, by way of a non-exclusive, royalty-free
         licence without limit of time.

(e)      Any Improvement which is jointly made, developed or acquired by the
         parties shall constitute FreeHand's property and EBM shall assign all
         rights therein to FreeHand.

8.       CONFIDENTIALITY

(a)      Either party shall not disclose to any third party any know-how, data,
         information or knowledge or other confidential information disclosed to
         it by the other party (such disclosure shall be made by delivery of a
         written document containing or recording it), or developed by either
         party during the term of this Agreement relating to the Products, its
         design or manufacturing process. Either party shall use its best
         endeavours to keep such information confidential, including but without
         limitation, to ensure that such employees or officers within its
         organisation who need to know the confidential information to carry out
         the purpose of this Agreement are under the same confidentiality
         obligations of such party.

(b)      Any confidential information as referred in Clause 8(a) may be used by
         either party for any purpose, or disclosed by any third party, if such
         party is authorised by the other party in writing or to the extent only
         that any part of the information hereafter becomes public knowledge
         through no fault of such party in question.

9.       LIMITATION OF LIABILITY

WITHOUT PREJUDICE TO THE WARRANTIES GIVEN UNDER CLAUSE 4, EBM'S LIABILITY
ARISING OUT OF THIS AGREEMENT OR THE TERMINATION HEREOF SHALL BE LIMITED TO THE

<PAGE>

AMOUNT OF DIRECT DAMAGES ACTUALLY INCURRED BY FREEHAND AS A RESULT OF EBM'S
BREACH HEREUNDER. IN NO EVENT WILL EBM BE LIABLE FOR COSTS OF PROCUREMENT OF
SUBSTITUTE PRODUCTS, SERVICES OR LOSS OF PROFITS. IN NO EVENT SHALL EBM BE
LIABLE TO FREEHAND OR ANY OTHER ENTITY FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL,
INCIDENTAL OR OTHER DAMAGES EXCEPT FOR DIRECT DAMAGES, HOWSOEVER CAUSED AND
BASED ON ANY THEORY OF LIABILITY, ARISING OUT OF THIS AGREEMENT OR THE
TERMINATION HEREOF. THESE LIMITATIONS SHALL APPLY EVEN IF EBM HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES BEING RESULTED, AND NOTWITHSTANDING ANY
LIMITED REMEDY PROVIDED IN THIS CLAUSE OR ANY WARRANTY INDICATED IN THE
PRODUCTS.

10.      GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by, and construed under, the laws of Hong Kong
Special Administrative Region. The parties agree that the courts of Hong Kong,
shall have exclusive jurisdiction to adjudicate any dispute arising out of this
Agreement. Either Party hereby expressly consents to service of process being
effected upon it by registered mail sent to the address set forth at the
beginning of this Agreement or other address as such party may notify the other
party from time to time.

11.      ASSIGNMENT

This Agreement or any rights or obligations under it or any Purchaser Order may
not be assigned or otherwise disposed by either party without the prior written
consent of the other party. Neither party may sub-contract or otherwise delegate
any of its obligations under this Agreement to a third party without the prior
written consent of the other party.

12.      FORCE MAJEURE

Neither party shall be liable to the other party for any delays or failures in
the performance of its obligations under this Agreement to the extent that any
such delays or failures are resulted from any Act of God, war, strike, lock-out,
drought, tempest or any other cause beyond the reasonable control of such party
(a "force majeure event"). If any force majeure event exists for more than
ninety (90) days, either party shall have a right to terminate this Agreement
upon written notice to the other party.

13.      NO LICENSES CREATED

Unless otherwise agreed between the parties, nothing contained in this Agreement
shall be construed as creating any license, right to use or other right for the
benefit of any party with respect to any patents, patent applications, trade
secrets, or other confidential or proprietary information, trademark, trade
names or other intellectual property rights of the other party.

<PAGE>

14.      PARTNERSHIP

Nothing in this Agreement shall create or be deemed to be a partnership between
the parties.

15.      ENTIRE AGREEMENT

This Agreement contains the entire agreement between the parties with respect to
its subject matter and supersedes all previous agreements and understandings
between the parties.

16.      SEVERABILITY

Each of the Clauses is and shall be construed as separate and severable and in
the event of any Clause being determined as being unenforceable in whole or in
part for any reason, such unenforceability shall not affect or impair the
enforceability of the other Clauses or other parts thereof.

17.      VARIATION

No variation of this Agreement shall be effective unless it is in writing signed
by all parties.

18.      NOTICE

(a)      All notice, approval, or other communication in writing to be given by
         either party under or in connection with this Agreement (excluding the
         service of process as referred to in Clause 10) ("Notice") must be left
         at or sent by pre-paid registered post to the address of the other
         party, or sent by facsimile or email to the other party, and marked for
         the attention of the person so specified. The relevant details of each
         party, which can be amended by written notice to the other party from
         time to time, are as follows:

         EBM

         Address: 10th Floor, Elite Industrial Building, 135 - 137 Hoi Bun Road,
         Kwun Tong, Kowloon, Hong Kong

         Facsimile: (86-755) 2606 8655

         Email: max.long.giant@elitecorp.com

         Attention: Max S. Y. Loong

         FreeHand

         Address: 95 First Street, Suite 200, Los Altos, CA 94022, U.S.A.

         Facsimile: [2-650-941-0207]

         Email: [kimlorz@freehandsystems.com]

         Attention: [Mr. Kim Lorz]

<PAGE>

(b)      In the absence of earlier receipt, a Notice is deemed to be received:

         (i)      in the case of a notice left at the address of the addressee,
                  upon delivery at that address;

         (ii)     in the case of a posted letter, on the seventh day after
                  posting;

         (iii)    in the case of a facsimile, on production of a transmission
                  report from the machine from which the facsimile was sent
                  which indicates that the entire facsimile was sent to the
                  facsimile number of the recipient; and

         (iv)     in the case of an email, on acknowledgement of the recipient's
                  email receiving equipment.

Elite Business Machines Manufacturing      FreeHand Systems, Inc.
Company Limited

By: /s/ Max Loong                          By: /s/ Kim Lorz
    --------------------------------           --------------------------------

Written Name: Max Loong                    Written Name: Kim A. Lorz
              ----------------------                     -----------------------

Title: General Manager                     Title: CEO
       -----------------------------              ------------------------------

Date:  3/12/ 2004                          Date:  3/12/2004
       -----------------------------              ------------------------------

<PAGE>

                                    Exhibit A
                                    ---------

Product                   Part Number                    Unit Price
-------                   -----------                    ----------
                                                         FOB HK or China port(s)

Music Pad Pro Plus        FH021019-1-02 Rev C            To Be Determined
Music Pad Pro             FH021019-1-01 Rev C            To Be Determined

All Documents:
Plastics:
FH9000-0012-00            Front Bezel                    Rev 5
FH9000-0003-00            Power Button                   Rev 3
FH9000-0030-00            Pad print, Front Bezel
                          (2 color)
FH9000-0004-00            Switch Holder                  Rev 3
FH9000-0002-00            Rear Cover (inc 4 inserts)     Rev 5
FH9000-0013-00            Stylus (FreeHand               Rev 1
                          Custom Mold)
Sheet Metal
FH9000-0005-00            Chassis                        Rev 5
FH9000-0006-00            Motherboard Shield             Rev 4
FH9000-0028-00            I/O Panel                      Rev 4
                          Silkscreen for I/O Panel       Rev 3
FH9000-0060-00            Hydis 12.1" Display            Hydis Spec
FH9000-0016-00            12.1" Resistive Touchscreen    3M/Dynapro Spec
FH9000-0008-00            Cable Assembly, Power          5
FH9000-0061-00            Cable Assembly, LCD            1
FH9000-0010-00            Cable Assembly, Inverter       5
FH9000-0011-00            Battery Assembly, NiMH         5
                          3 cell
FH9000-0062-00            Backlight Inverter             Linfinity Spec
FH9000-0023-00            Power Supply, CUI              CUI Spec
FH9000-0036-00            Cable Assembly, USB            CUI Spec

<PAGE>

                                    EXHIBIT B

                                 LONG LEAD ITEMS

PART NUMBER             LEAD TIME               PRICE                 STATUS

[Please insert the details]

<PAGE>

                                    EXHIBIT C

                              TERMS AND CONDITIONS
                 RELATING TO ISSUE OF SHARES BY FREE HAND TO EMB
                               UNDER CLAUSE 2 (G)

1.       FreeHand shall issue to EBM on the date of the Agreement [250,000]
         preferred "B" shares of "stock" ("Shares"), valued currently at US$1.00
         per Share and each in the US$20 million total share capital of
         FreeHand.

2.       If the total [market] value of the Shares issued to EBM falls below
         [US$250,000 or the Purchase Price for the First PO] as considered and
         determined by FreeHand before they are sold or otherwise disposed of by
         EBM whether for value or not, additional preferred "B" shares of
         FreeHand ("Additional Shares") shall be issued by FreeHand to EBM so
         that the total [market] value of the Shares and the Additional Shares
         to be issued shall not be less than [US$250,000 or the Purchase Price
         for the First PO] at any time before they are sold or otherwise
         disposed of by EBM.

3.       The shares are void of any strike price. Subject to any applicable law
         and regulation, EBM shall be entitled to the right to sell the Shares
         in a stock exchange if any "stock" of FreeHand shall be listed and
         traded in such stock exchange. However, EBM shall have no right to
         offer, sell, assign, charge, mortgage, pledge, encumber, or otherwise
         dispose of any Share, or transfer the interests in any Share by way of
         creation of trust before the shares of FreeHand are listed or traded in
         a stock exchange or offered in accordance with Rule 144A of the US
         Securities Act.

4.       The stock certificate in respect of the Shares (and any Additional
         Shares) to be issued by FreeHand shall bear the name of "Elite Business
         Machines Manufacturing Company Limited" as the owner of the Shares (and
         any Additional Shares). The certificate in respect of the Shares shall
         be issued at the same time when the Agreement is entered into.Exhibit 10.10

FREEHAND SYSTEMS                                                    CONFIDENTIAL
DEALER CHANNEL AGREEMENT
--------------------------------------------------------------------------------

                            DEALER CHANNEL AGREEMENT

This agreement is made and entered into this ___ day of ________, 20__, between
FreeHand Systems, Inc. ("FreeHand"), a Nevada corporation, with headquarters at
95 First Street, Los Altos, CA 94022 USA, and ______________________ ("Dealer"),
whose headquarters is located at .

FreeHand wishes to enter into an agreement ("Agreement") to have Dealer promote
FreeHand products as defined by the terms of this agreement.

1-   Dealer hereby agrees to represent FreeHand and market FreeHand products
     actively to its customer base and in its target markets.
2-   FreeHand will supply MusicPad Pro Product Line, including accessories, to
     Dealer at discounts shown on Pricing Attachment, provided that Dealer and
     FreeHand have agreed on a committed forecast and delivery schedule above
     the threshold quota established by FreeHand for each annual period.
3-   Dealer may participate in sale of digital sheet music according to the
     current program guidelines for digital music sales that shall govern any
     discounting.
4-   Freehand and Dealer will partner to market and promote MusicPad Pro product
     line as described in attached Exhibit A.
5-   Exhibit A is made a part of the Agreement and all terms and conditions
     therein shall be applicable to the Agreement.

This agreement supersedes any prior agreement between the Dealer and FreeHand.

In WITNESS WHEREOF, the parties have executed this Agreement on the date set
forth above.

FOR Dealer:                                 FOR FreeHand Systems, Inc.:

__________________________________          ____________________________________
Signature                                   Signature

__________________________________          ____________________________________
Print Name                                  Print Name

__________________________________          ____________________________________
Title                                       Title

__________________________________          ____________________________________
Date                                        Date

                                                          FreeHand Systems, Inc.
                                 95 First Street, #200, Los Altos, CA 94022, USA
                                 Tel: +1 (650) 941-0742 / Fax: +1 (650) 941-0207
                                                         www.freehandsystems.com

--------------------------------------------------------------------------------
FreeHand Systems / AWL / Rev. May 17, 2006                           Page 1 of 3

<PAGE>

FREEHAND SYSTEMS                                                    CONFIDENTIAL
DEALER CHANNEL AGREEMENT
--------------------------------------------------------------------------------

EXHIBIT A
---------

PRICING, COMMISSIONS, TERMS & CONDITIONS
----------------------------------------

o    Dealer's threshold quota as of _________ is an annual volume of ______ MPP
     Units.

o    Manufacturer's Suggested Retail Prices (MSRP) for all markets are as listed
     in the current Dealer price list. These prices apply to all markets
     worldwide.

o    Dealer price lists are revised and updated from time-to-time including
     terms and conditions. The most recently published price list and terms
     sheets apply to all transactions on or after the release date.

o    Quantity Discounts are offered to Dealers for volume purchases and are
     based on annual volumes using 12 month committed forecast agreed between
     FreeHand and Dealer. A Dealer must carry inventory for resale to other
     dealers or for sale to consumers in order to qualify for discounts.

o    Dealer prices are not offered to consumers or other individual purchasers.

o    MSRP and discount schedules may be changed by FreeHand at any time with or
     without prior notice.

o    FreeHand may from time-to-time offer promotional pricing (sale promotions)
     based on the terms established at time of promotion's announcement.

o    FreeHand may at its discretion bundle products and services or create
     market specific specialized products. These may be subject to exclusions,
     special pricing, customized terms and conditions for each bundle or
     specialized product.

o    Requests for adjustments for inventory must be received within 90-days of
     price change announcements and will be at the sole discretion of FreeHand.

o    Product features and model configurations are as described in the
     FreeHand's product brochures or web site at www.freehandsystems.com.
     FreeHand may change product features and configurations from time to time
     and may add or delete models or accessories. Distributors and Dealers will
     be notified of changes.

o    FreeHand offers programs for Distributors and Dealers to earn commissions
     for sale of digital sheet music. (Details available.)

o    All sales are in US dollars. The Distributors or Dealer is responsible for
     conversion from US dollars to local currency.

o    All sales are net 30 days from date of invoicing, subject to credit
     approval by FreeHand.

     o   FreeHand will determine the criteria for credit approval.

     o   FreeHand reserves the right to request pre-payment or the payment of a
         deposit.

     o   Until a Dealer has established credit with FreeHand, all sales are cash
         basis, may be executed with credit card, by bank draft, or by
         bank-to-bank wire transfer.

     o   FreeHand's corporate office will supply specific requirements and
         procedures regarding credit card, bank draft and wire transfer
         transactions upon request.

o    Delinquent accounts are subject to interest, compounded daily from original
     date of invoicing at US prime rate PLUS 6%.

     o   FreeHand may elect at its sole discretion to suspend shipments to
         delinquent account.

o    All sales are FOB at FreeHand facilities in California and buyer shall pay
     shipping charges from California plus any applicable taxes, fees and
     insurance.

--------------------------------------------------------------------------------
FreeHand Systems / AWL / Rev. May 17, 2006                           Page 2 of 3

<PAGE>

FREEHAND SYSTEMS                                                    CONFIDENTIAL
DEALER CHANNEL AGREEMENT
--------------------------------------------------------------------------------

     o   For international shipments, the buyer is responsible for all import
         regulations, document filings, and other government-mandated
         requirements.

     o   Buyer may specify shipping method or carrier and provide account
         information for direct billing of freight charges.

o    Returns require a "return material authorization" (RMA) from FreeHand.
     Dealers will be charged a repair charge when appropriate, a restocking fee
     for returns (15% of original invoice pricing) and are responsible for
     freight and shipping charges.

o    Support is provided directly from FreeHand via email or telephone at
     support@freehandsystems.com , via telephone at 650-941-0742 or US toll free
     at 800-917-1949.

     o   Overseas Dealers provide first level support for their customers.
         Freehand defines the support level, provides training as appropriate
         and second level support is available for customers through Dealers.

     o   FreeHand products are offered with one-year warranty and additional
         year extension (total of two years) for $75 (Dealer Price). Warranty
         specifics are available in FreeHand's standard warranty agreement. .
         Enhanced warranty protections beyond standard warranty terms may be
         offered by FreeHand at special pricing.

o    FreeHand may help with advertising, promotional materials (brochures,
     flyers, direct mail, etc.) and online web pages as appropriate. FreeHand
     may provide materials including headlines, text, graphics, photographs,
     logos, layouts, and photo-ready artwork as agreed between Dealer and
     FreeHand. Any advertising, promotional materials (brochures, flyers, direct
     mail, etc.) and online web pages developed by Dealer must be reviewed and
     approved by FreeHand prior to publication and Dealer use. FreeHand reserves
     the right for final control of how all FreeHand' products are promoted.

     o   Trademarks and logos remain the sole property of FreeHand and their use
         is allowed by Dealers for promotion of the MusicPad Pro product line
         only. Trademarks and logos may not be used for any other purpose. At
         any time, with notice from FreeHand, Dealers will cease using FreeHand'
         trademarks and logos immediately.

     o   Trademarks, logos, copyrighted materials and other intellectual
         property of FreeHand must be protected and properly marked by the
         Dealer in printed materials, video ads and audio tracks.

o    Dealer and FreeHand agree to protect the confidentiality of proprietary
     information of the other party.

o    The relationship with FreeHand is "non-exclusive" and does NOT include any
     exclusive Dealer provisions. Dealer is authorized for resell only in
     countries specified. Dealer is authorized for sales to dealers for resale
     and for sales direct to consumers.

     o   Territory: United States/Canada or___________________________________

o    All contracts, sales and other business transactions between FreeHand and
     Dealer are executed in the State of California and are governed by the laws
     of California and the United States. FreeHand reserves the right to have
     all disputes resolved by binding arbitration under the jurisdiction of
     California.

--------------------------------------------------------------------------------
FreeHand Systems / AWL / Rev. May 17, 2006                           Page 3 of 3

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