Document:

Exhibit
10.31

 

Contract No.: FIBCDDBO8-0012

Administration Department of

Fiberxon (Chengdu) Technology Co., Ltd

 

Lease Contract on Standard Factory Buildings
in

Sichuan Chengdu Export Processing Zone

 

Contract No.:

 

	
  Party A
  (Landlord):

  	
  Chengdu
  Gaoxin Construction Development Co., Ltd.

  
	
  Party B
  (Tenant):

  	
  Fiberxon
  (Chengdu) Technology Co., Ltd.

  
	
  Party C
  (Administrator):

  	
  Administration
  Office of Sichuan Chengdu Export Processing Zone

  

 

In according with the
Contract Law of the People’s Republic of China and pertinent rules and
regulations, Party A, Party B and Party C have reached an agreement through
friendly consultation and shall be bound by the following
terms and conditions. Party A hereby appoints Party C to manage
its standard factory buildings in Sichuan Chengdu Export
Processing Zone (West Side) and lease them to Party B for its use. Party B
hereby agrees to rent the standard factory buildings of Party A. Party A and
Party C shall exercise their rights and perform their obligations respectively
according to the terms and conditions under the Contract on Entrusted
Operations of Standard Factory Buildings and Supervised Warehouse signed by
them.

 

1.         Location
of the Leased Workshops:

 

The leased workshops are
located in the Standard Factory Building Area of Sichuan Chengdu Export
Processing Zone (West Side) and include the whole of No.2 Building and the
second floor as well as the reception hall on the first floor of No.5 Building.

 

2.         Area
of the Leased Workshops:

 

The area of the leased
workshops leased by Party B is 17,571 square meters (among which, No.2 Building
covers 13,638 square meters, the second floor and the first floor of No.5
Building occupies 3,852 square meters and 81 square meters respectively. In
case of any errors arising from the area of the leased workshops, the actually
measured area shall be taken as valid). Plain-view drawings of the leased
workshops shall be regarded as the appendix to this Contract.

 

3.         Lease
Term:

 

3.1       The lease term shall be 60
months from January 15, 2008 to January 14, 2013.

 

3.2       No party shall change the terms
and conditions hereof during the terms of the lease before Parties A, B and C
reach unanimity through consultation.

 

4.         Current
Status of the Leased Workshops:

 

Party A and Party C guarantee
that Party A has all the rights and powers to lease the foregoing factory
buildings and land and has the power to sign this Contract on behalf of any and
all of the owners of the buildings (if any) or competent authorities of housing
and land administration. Party A and Party C guarantee that there is no
existing or potential litigation, arbitration, disputes or other legal
proceedings concerning the land and buildings leased and remised by Party A.
And there is no mortgage on the land and factory buildings owed to any banks,
companies or individuals, nor any lease contract except this one and any rights
and interests of any third parties.

 

 

5.         Purpose
of the Leased Workshops:

 

5.1       The leased workshops shall be
limited to the purposes of manufacturing, processing, dealing with related
business and warehousing which Party B has been approved to undertake.

 

5.2       Party B shall notify Party C in
writing 60 days prior to the expiration of this Contract in the event that it
intends to extend the lease. Under the same terms Party B shall have the
priority to lease the leased workshops. In this case, a new lease shall be
concluded between the parties. In case that Party B has already been using the
leased workshops before renewing the lease contract, the lease term shall be
calculated from the date when the leased workshops was actually put into use by
Party B. The rent for the extended lease shall not be higher than the price
level estimated by professional organizations mutually recognized by Party A
and Party B under the same conditions of the current market.

 

6.         Rent, Property
Management Fee and Payment:

 

Rent and property management
fee shall be calculated based on the construction area.

 

6.1       Rent:

 

6.1.1    Party A and Party C shall grant
Party B 90 days of rent-free for decoration from January 15, 2008 to April 14,
2008.

 

6.1.2    Monthly rent shall be 10RMB/m2 from April 15, 2008 to April 14, 2010.

 

6.1.3    Monthly rent shall be 15RMB/m2 from April 15, 2010 to January 14, 2013.

 

6.2.      Party B shall pay 0.5% of the
amount overdue as penalties every day in the event that the rent payment is
delayed over one working day.

 

6.3       The property management fee
shall be 1.5 RMB/m2 every month and shall
be calculated starting from April 15, 2008.

 

6.4       The rent and property
management fee shall be paid on a monthly basis. Party B shall pay rent and
property management fee for the current lease month (either in cash or by check
and check amount shall have been deposited into the bank account). Payment
shall be made before the 10th of every month. Party C shall transfer the
non-operating receipts or invoices issued by Party A to Party B within 15
working days after Party A’s receipt of the payment.

 

Bank
Account Number designated by Party A for Party B’s payment:
51001406137050111277

Account Name: Chengdu Gaoxin
Construction Development Co., Ltd.

Issuing Bank: Gaoxin Branch of
China Construction Bank

 

6.5       Party A or Party C shall not
charge any parking fee for motor vehicles of Party B and its employees.

 

7.         Guarantee:

 

7.1       Party B shall pay a lease guarantee
of RMB 80,000 (eighty thousand RMB in total) to Party A within 5 days from the
date of signing this Contract. The guarantee shall be refunded by Party A to
Party B in a lump sum upon the expiration date of this lease provided that
Party C confirms, upon inspection and acceptance, that Party B has not damaged
the building structure, changed the outside façade images and the interior
layout of the factory buildings during the lease term. Party A shall issue a
financial receipt for the guarantee.

 

The
bank account number, name of the account and issuing bank designated by Party A
for Party B making

 

 

payments
shall be consistent with the provisions under Article 6.4.

 

7.2       Within 5 working days after the
date of the delivery of the workshops, Party B shall pay water and electricity
deposit of 5 RMB/square meter to Party C according to the area of the workshop.
This deposit shall total RMB 87,855 (RMB eighty-seven thousand eight hundred
and fifty-five). The deposit shall be refunded by Party C to Party B in a lump
sum on the expiration date of this lease provided that Party C verifies and
confirms that Party A has not owed any water and electricity fees and overdue
fine during the lease term.

 

Bank Account Number designated by Party C to Party B for payments:
511610015018001658252

 

Name of Account: Financial Centralized Receipt and Payment Center of
Chengdu Gaoxin District (Export Processing Zone)

 

Issuing Bank: Gaoxin Branch of Communication Bank of China

 

8.         Status
and Delivery Time of the Leased Workshops:

 

8.1       Status of the Workshops at the
time of the Delivery:

Within 90 working days from the
date of signing this Contract, Party A and Party C shall make sure that the
workshops meet the following conditions:

 

8.1.1    The external walls have been
re-painted;

 

8.1.2    The waterproof has been
repaired and there exists no water leakage;

 

8.1.3    The elevators are in place and
ready for use. The elevators are required as follows:

 

There are two elevators
installed in the Building 2 and one elevator installed at the specified
position in Building 5 by Party B. All the foresaid elevators shall be freight
elevators with a load capacity of no less than 2,800 kilograms.

 

8.1.4    Party A and Party C shall
ensure that electricity supply in Building 2 and Building 5 is in good condition.
Within 90 working days from Party B’s provision of relevant technical
parameters about the transformer to Party A and Party C, Party A and Party C
shall complete the configuration of the power and make it available and Party C
shall ensure power supply during Party B’s decoration.

 

The requirements for power specified by Party B are as follows:

 

Building 2 and Building 5 shall receive power from different
transformers.

 

A
specific-purpose transformer shall be installed in Building 2 and a power supply
of 2,500 KVA shall be provided by two transformers, each of 1,250 KVA
respectively. Party A shall bear the expenses incurred by the transformer and
high voltage transmission lines. The area of Building 5 leased by Party B shall
be provided with a power supply of 630 KVA. Party A and Party C shall connect
the transmissions line into the switchgear of Party B and relevant expenses
shall be born by Party A.

 

8.1.5    Party A and Party C shall
ensure that the original fire protection system of the leased workshops is in
line with national standards.

 

8.2       Delivery
Time:

 

Within 5 working days from the
date of signing this Contract, Party C shall deliver the leased workshops to
Party B and ensure that the workshops are able to fulfill all the purposes.
Party B shall not be admitted into

 

 

and decorate the leased
workshops until it has checked and confirmed all the facilities attached to the
leased workshops one by one and completed handover procedures with Party C.

 

9.         Rights
and Obligations of the Three Parties:

 

9.1       Party A and Party
C shall undertake confidentiality obligations with respect to Party B’s
commercial secrets and other secrets obtained. They are not allowed to disclose
the foresaid information to any third party without prior written consent of Party
B.

 

9.2       During the lease
term, Party A and Party C shall ensure that the leased workshops and attached
facilities are in normal operating conditions and safe state. They also shall
make sure that the quality of the workshops and environmental monitoring are in
line with the national industrial plant construction standards. At the same
time, they shall also see to it that their disposal and administrative behavior
with respect to the leased workshops shall not prejudice the legal rights and
interests of Party B.

 

9.3       In the event that
Party A intends to sell the leased workshops, Party B shall have the priority
in purchasing the leased workshops under the same conditions of the market
price.

 

9.4       Party B is allowed
to decorate the leased workshops only after it has sent application and
decoration program to Party C and obtained relevant consent. Within 5 working
days from the date of receiving the decoration program, Party C shall give a
written reply to Party B. Party C’s failure of sending a written reply or
sending it after the foresaid term shall mean that Party C has approved Party B’s
application. Party C shall not turn down Party B’s decoration application
without due causes. In case of Party C’s refusal, Party C shall give relevant
reasons. Party B may require the decoration team to pay a deposit of RMB 20,000
(RMB twenty thousand) to Party C, which shall be refunded by Party C in a lump
sum provided that Party C has carried out on-site inspection and confirmed that
Party B hasn’t damaged the buildings’ structure and the outside façade images
of the leased workshops during the construction period. Party B shall pile up
the waste created during the decoration at specified locations designated by
Party C. It shall clean up and remove all the waste after completing the
decoration work, or entrust Party C to clean up and remove all the waste, the
cost of which shall be paid by Party B.

 

9.5       Upon the expiration date when
Party B returns the leased workshops to Party C, Party B shall restore the
leased workshops to their original state upon Party C’s demand. Party B shall
not charge for the decoration materials which can not be dismantled from the
leased workshops upon Party C’s requirement.

 

9.6       In the event that
Party B is required to terminate this contract ahead of schedule by Party A or
Party C, it shall not be bound by the provisions of Article 9.5 with the
exception that Party B has failed to comply with property management
regulations and other management systems of Party C and Party C believes that it’s
a serious offense with bad influence on the management over the whole area.

 

9.7       Party B shall not
set up billboards and other promotional plates on the leased workshops before
it has sent the application to Party C and obtained consent. Within 5 working
days from receiving the application, Party C shall reply in writing to Party B.
Party C’s failure to make a written reply or make such reply within the above
mentioned time limit shall mean that Party C has agreed to Party B’s
application. Party C shall lay out relevant reasons if it turns down Party B’s
foresaid application.

 

Party
B is not required to pay any expenses to Party A or Party C while making
billboards and other promotional plates.

 

9.8       Party B shall not
set up mortgages, guarantees and other security interests for any third party
on the leased workshops during the lease term.

 

9.9       Party B shall
enjoy priority of renting the remaining area of Building 5 under the same
conditions.

 

 

9.10     Party C shall
coordinate with Chengdu Customs in an effort to provide facility for Party B to
transport materials during Party B’s decoration period.

 

10.       Maintenance
and Management of the Leased workshops:

 

During the lease term, Party C
shall be responsible for the maintenance and management of the main structure
of the leased workshops, roofs, doors and windows, original facilities and
pipelines inside the buildings through combination of management and use. In
case of any malfunction, Party B shall notify Party C for maintenance. In the
event that Party C fails to start repair within 3 working days after receiving
the notice, Party B shall do the repair on its own or entrust others to do the
repair, the incurred expenses of which shall be born by Party A. Where damage
caused by improper use or deliberate destruction by Party B, Party B shall be
responsible for the maintenance and bear the costs incurred.

 

11.       Property
Management:

 

11.1     Service Scope of Party C’s
Property Management:

 

(1)       Daily management of pipeline’s
water supply and external sewage disposal of the leased workshops;

(2)       Operation management and
maintenance of shared distribution facilities in the workshop area;

(3)       Security management outside the
leased workshops (internal security of Party B to be taken care of by Party B
itself) and security work for the park;

(4)       Cleaning and hygiene, greening
work for public places;

(5)       Disposal and treatment of
household waste;

(6)       Other special services
designated by Party B and charged by the agreed fee.

 

11.2     Party B shall verify the
written notice sent from Party C each month and pay Party C for utility bills
for the water and electricity actually consumed in a timely manner.

 

12.      Responsibility
of Breach of Contract:

 

12.1     Where one party commits any
material breaches of this contract, the other party shall have the right to
terminate the contract and ask for indemnity.

 

12.2     Party B shall have the right to
terminate this Contract in case that Party C fails to perform its obligations
under Property Management Regulations and causes great influence upon Party B’s
production and operations. It shall also have the right to require Party C to
compensate the incurred losses.

 

12.3     Party C shall pay
a daily fine at 1% of the rent for half a year in the event that Party C fails
to deliver the leased workshops under this Contract.

 

12.4     Party A and Party C shall not
terminate the contract unless Party B makes material breaches of the related
provisions of this lease. Where Party A and Party C intend to terminate the
contract by any reason except the foresaid ones, Party A shall pay Party B the
moving expenses that Party B has incurred and those for moving into to another
workshop. Where Party B fails to comply with property management regulations
and other management systems of Party C and Party C believes that it’s a
serious case with bad influence on the management over the whole area, Party A
shall not pay Party B the foresaid expense.

 

13.       Termination
of This Contract:

 

In the case of any of the
following circumstances, Party B may terminate this contract and the lease
after sending notice to Party A three months in advance:

 

(1)       Party B terminates its
operations;

 

 

(2)       Party B no loner needs to rent
the leased workshops for there are some changes to its business scope;

 

(3)       The leased workshops are forced
to be relocated on account of government planning;

 

(4)       Other conditions
not caused by Party B leading to the situations where it is not necessary or
impossible for Party B to rent the workshops.

 

Party B terminating the contract because of the foresaid circumstances
shall not be deemed as having breached this contract.

 

14.       Admission:

 

14.1     Representatives
designated by Party A and Party C shall be admitted into the leased workshops
to carry on their work in the time mutually agreed upon with the prior consent
of Party B.

 

14.2     Employees of Party A and Party
C shall observe and comply with regulations concerning safety and health while
they are admitted and carry on their work. Harmful substances and hazardous
substances are not allowed to be brought into the workshop and stored there.

 

14.3     Party A and Party C shall
ensure that water-supply and waste emission pipeline will work properly in the
adjacent areas. Party A shall bear the expenses and losses incurred by Party B’s
failure to fulfilling the foregoing conditions.

 

15.       Complement
and Installation:

 

During the course of
performance of this Contract, Party B shall not install and establish auxiliary
equipment and facilities without prior consent of Party C after submitting the
installation scheme to Party C for approval ahead of schedule. Upon expiration
of the contract, Party B shall have the right to disassemble and remove any
installation equipment for the leased workshops and shall handover the leased
workshops to Party A in its original conditions.

 

16.       Other
Terms & Conditions:

 

Matters not covered under this
contract shall be settled in a supplementary agreement between the three
parties, which shall have the equal legal force.

 

Party A, Party B and Party C
hereby make the representation that they shall keep the contents contained in
this contract strictly confidential. The terms and conditions contained herein
are applicable to the standard workshops leased by Party B and shall not be
applied to other leased workshop projects within the processing zone.

 

During the lease term and the
period of extended lease, Party A and Party C shall not sell the leased
workshops to any other fourth Party.

 

Management regulations and the
other management systems for Party C’s property referred hereto shall be acknowledged
and agreed to by Party A in advance.

 

Current conditions and demands
for the leased workshops and attached facilities shall be confirmed by Party A,
Party B and Party C hereof in the appendix, which shall be an integral part of
this contract

 

17.       Contract
Text:

 

This contract is made in three
copies and Party A, Party B and Party C shall hold one copy each, which shall
have the same legal force.

 

 

18        Applicable
Laws and Dispute Resolution:

 

This contract shall be governed
by the laws of the People’s Republic of China. In case of any dispute arising
out of the interpretation and performance of this Contract, Party A, Party B
and Party C shall consult each other for a settlement. Where no settlement can
be reached, any party may submit the dispute to Chengdu Arbitration Commission
for arbitration.

 

19.       Entry
into Force of This Contract:

 

This contract shall come into
force on the date of signing and sealing by the three parties hereto or their
authorized representatives.

 

 

Party A (stamped and sealed): Chengdu Gaoxin Construction Development
Co., Ltd.

 

Legal Representative
(Signature):

 

Time:

 

 

Party B (stamped and sealed):
Fiberxon (Chengdu) Technology Co., Ltd.

 

Legal Representative
(Signature):

 

Time:

 

 

Party C (stamped and sealed): Administration Office of Sichuan Chengdu
Export Processing Zone

 

Legal Representative (Signature):

 

Time:Exhibit 10.32

 

Workshop Lease of

The Science Park Administration (1 Year)

 

Parties to this lease:

 

	
  Landlord:

  	
   

  	
  Science Park Administration (hereinafter referred to
  as Party A)

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Optronics International Corp. (hereinafter referred
  to as Party B) A0327

  

 

Whereas Party B falls into the category of science
park enterprises, research institutes, venture incubator centers, branch
offices of the administration authorities or commercial or industrial service
firms approved by Party A consistent with Article 4 or Article 8
under the Regulation Regarding the Establishment of the Science Park, and Party
A and Party B have agreed that Party A will lease a workshop illustrated under Article 1
of this agreement that is located in the Hsin Chu Science Park (hereinafter
referred to as the Workshop under this Agreement) for Party B’s use according
to the following terms and conditions:

 

Article 1

The Workshop under this Agreement is located on the 1st Floor No. 44, 2nd Road of Hsin Chu Science Park
with an area of 877 square meters.

 

Article 2

This lease shall remain in force for the period from January 1,
2009 till December 31, 2009. Upon the expiry date, this lease shall be
terminated automatically unless Party A and Party B conclude a separate lease
under the provisions of Article 4 of this lease. Party B is not allowed to
ask for the continuation of the lease or lease from time to time under any
circumstances.

 

Article 3

During the conclusion of this lease and its existence,
Party B shall at all times maintain its status as a science park enterprise, a
research institute, a venture incubator centre, a branch office of the
administration authorities or a commercial or industrial service firms approved
by Party A consistent with Article 4 or Article 8 under the Regulation
Regarding the Establishment of the Science Park. Where Party B fails to meet
the above mentioned eligibilities at the time of the signing of the lease, this
lease shall be void and null. Where Party B no longer maintains such
eligibilities hereafter and both Parties to this agreement agree to the
immediate termination of this lease, Party A is not required to notify such
termination of such legal forces.

 

Article 4

Party A shall have the right to mail out copies of
lease renewal for the extension of this lease one month before the expiry of
this lease.

Party B shall make it clear whether it wishes to
extend the lease or not after the expiry of such lease within 15 days after it
receives the lease under the preceding paragraph. In case it wishes to extend
the lease, Party B shall affix its seal on a copy of the lease renewal and
attach related documents to be delivered to Party A within the time limit
prescribed above.

Where Party B breaches any terms and conditions of
this lease during the term of this lease, Party A shall have the right to ask
Party B to fulfill notary procedures for the renewal of lease by Party B at its
own expense.

 

Article 5

Where Party B intends to terminate this lease before
its expiry during the term of this lease, it shall notify Party A in writing 2
months in advance. Party B shall continue to pay its rent during this 2 month
notification period, regardless if it vacates the Workshop under this
Agreement.

Party A shall have the right to terminate this lease
by way of notification to Party B in writing 2 months in advance at any time if
it is required by any changes in law or government policies.

 

[illegible seal]

 

1

 

Article 6

The rent for the Workshop under this Agreement shall
be NT$110,502 per month. Party B shall, from the date of the commencement of
this lease, download the form for next month rent payment from Party A’s
website on its own (website: www.sipa.gov.tw), and shall make the payment of
its rent to Party A before the 15th day of every month according to the procedures
of rent payment established by Party A while calculating and payment the
business tax separately. Party B shall pay its utility bills separately while
paying the rent.

Party A shall have the right to, consistent with the
provisions of related laws and regulations, announced land prices of the
location of the Workshop under this Agreement as well as any adjustments in the
rent of state-owned land approved by the Executive Yuan, modify the amount of
rent mentioned above. Party B shall pay attention to the announced land prices
and adjustments in the rent of state-owned land approved by the Executive Yuan
on its own.

Any adjustment of rent mentioned above shall enter
into force in the second month after such announced land prices or adjustments
in the rent of state-owned land prices. Any differences between the rent
already paid and actual adjustments before Party A completes its website
updates under paragraph 1 shall be collected or refunded.

 

Article 7

Party B shall pay penalties according to the following
provisions if it fails to pay its rent and utility bills on time:

1.               It shall pay penalties equal to 2% of the total amount due if its rent
and utility bills are less than 1 month overdue;

2.               It shall pay penalties equal to 5% of the total amount due if its rent
and utility bills are more than 1 month but less than 2 months overdue;

3.               It shall pay penalties equal to 10% of the total amount due if its rent
and utility bills are more than 2 months but less than 3 months overdue;

4.               It shall pay penalties equal to 15% of the total amount due if its rent
and utility bills are more than 3 month overdue.

 

Article 8

Party B shall pay a deposit of NT$331,506 to Party A,
which is equivalent to 3 months’ rent at the time of the conclusion of the
lease, in order to ensure that it will perform all the terms and conditions
under this lease. Party B shall pay this lease deposit on the date of the
signing of the lease and Party A shall issue a receipt accordingly. The amount
of the lease deposit shall not be modified even if the rent is adjusted or this
lease is extended or prolonged.

Upon the termination or expiry of this lease and where
Party B returns the Workshop under this Agreement without any unpaid rents,
utility bills or any breach of contract, Party A shall return the lease deposit
without any interest.

Party B is not allowed to compensate its rent with the
deposit.

 

Article 9

The Workshop under this Agreement rented by Party B
shall be limited to its own purposes of research, production or operations and
is not allowed to be sub-leased, transferred or in any way assigned to any other
party for use. It is further not allowed to make use of it against laws and
regulations. However, upon prior consent by Party A in writing, Party B shall
have the right to sublease part of the Workshop under this Agreement to other
enterprises or agencies approved by Party A.

 

Article 10

Party B shall excise due care to maintain the Workshop
under this Agreement and its facilities and shall be responsible for keeping
its surroundings clean.

Party B shall not pile any articles in the attics,
stair wells, basement of the building of the Workshop under this Agreement or
any other public space or engage in any acts that contravene public safety. In
case of any pile, Party B shall hire workers to remove the pile at its expense
upon notification of time sensitive removal from Party A. In case the pile is
not removed within the time limit, Party A will take steps to remove the pile,
the cost of which shall be paid by Party B. In case there is no information as
to which party should be responsible for the pile of the above mentioned
articles, the removal fees shall be shared by Party B according to the ratio of
its leased area to the entire workshop building.

 

[illegible seal]

 

2

 

In case the Workshop under this Agreement or its
public facilities are damaged or lost, Party B shall restore them to the
original status and compensate the damages or losses except for those caused by
Force Majeure.

Where Force Majeure mentioned above or any natural
causes are responsible for any damages or losses, Party B shall fill out a
Notification for Repair before informing Party A for handling.

Party B shall undertake thorough inspection of the
facilities of the Workshop under this Agreement immediately after take over and
shall inform Party A of any existing defects, which shall be fixed by Party A.
Party B shall have no right to claim any existing defects of the Workshop under
this Agreement and ask for reduction of rent 1 month after it takes over the
Workshop under this Agreement.

 

Article 11

Party B shall bear joint responsibilities for
restoration to the original state and damages and losses caused to the Workshop
under this Agreement and its public facilities as a result of its approval for
use by its employees, users and other persons.

 

Article 12

Party B shall be held responsible for keeping clean
the Workshop under this Agreement and shrinkage land, ports and parking lots
outside its buildings.

 

Article 13

Party B is not allowed to conduct any additions or
changes to the Workshop under this Agreement without approval, unless otherwise
agreed to in writing by Party A beforehand.

Party B shall have the right to install water,
electricity, telephone and other renovation facilities inside the Workshop
under this Agreement; however, it is not allowed to affect or change the
structure of the building or men’s and women’s toilets.

Any renovation conducted by Party B shall be handled
in accordance with building codes, fire prevention rules and other laws
and regulations.

 

Article 14

Party A shall have the right to dispatch personal
wearing its ID into the Workshop under this Agreement to check how Party B
makes use of the Workshop under this Agreement. Party B shall not refuse to
grant access and shall provide full assistance.

 

Article 15

The house tax and property tax of the Workshop under
this Agreement shall be paid by Party A.

Party B shall purchase insurance for the [illegible]
facilities and other articles placed inside the Workshop under this Agreement
according to its own needs and Party A shall be held harmless against any
damages thereof.

 

Article 16

Party A shall have the right to terminate [illegible]
the Workshop under this Agreement by notification to Party B and the rent paid
shall not be refunded under the following circumstances:

1.               Party B is disqualified to do business or provide services within the
Science Park or is asked by Party A on the basis of law to move out of the
Science Park;

2.               Party B fails to make us of the Workshop under this Agreement more than
2 months after the commence date of this lease, or ceases the use or fails to
make use according to the terms of this lease for more than 2 months; and Party
B fails to rectify the situation within the time limit set forth by Party A in
its written notification to that effect;

3.               Party B is behind rent payment schedule for more than 2 months;

4.               Party B breaches the provisions of Article 9 or Article 14 of
this lease;

5.               Party B breaches the provisions of Articles 10, 12, 13, 19, 20, 22 (1),
22 (4), 22 (5), or 23 (2);  and Party B
fails to rectify the situation within the time limit set forth by Party A in
its written notification to that effect.

 

Article 17

Upon the expiry or termination of this lease, Party B
shall restore the Workshop under this Agreement to its original state and
vacate it before handing it over back to Party A.

 

[illegible seal]

 

3

 

Party B shall clean up the Workshop under this
Agreement at its own expense when it hands it over pursuant to the provisions
of the preceding paragraph. In case Party B fails to clean up the Workshop
under this Agreement and its public facilities, Party A may clean them up in
its stead and the costs shall be paid by deduction from the lease deposit.
Where the lease deposit is not sufficient, Party B shall make up for the
deficiency.

Anything left over by Party B inside the Workshop
under this Agreement after its handover shall be regarded as waste, which shall
be subject to the disposal by Party A and Party B shall have no right to claim
any compensation. In case Party A needs to dispose of any wastes, the cost
shall be deducted from the lease deposit of Party B and Party B shall make up
for any deficiency.

Upon the expiry or termination of this lease, Party B
shall fulfill the handover procedures for the Workshop under this Agreement
back to Party A according to the provisions of this Article. Party B agrees
without any pre-conditions that, in case of failure on the part of Party B,
Party A shall have the right to open the door or change the lock of the
Workshop under this Agreement to gain entry on its own upon its finding that
nobody from Party B is still using the Workshop under this Agreement based on 3
consecutive checks within 10 days. Party A shall also have the right to clean
up the Workshop under this Agreement, restore it to its original state and
treat anything left over in the Workshop under this Agreement as waste.

Party B hereby agrees that it shall pay all the
expenses related to Party A’s opening the door, changing the lock, clean-up,
restoration to the original state and disposal of waste pursuant to the
provisions of paragraphs 2 and 3.

 

Article 18

Upon the expiry or termination of this lease, where
Party B delays the handover of the Workshop under this Agreement back to Party
A under the terms and conditions of this lease, it shall pay a daily penalty
twice the daily rent to Party A and make up for the losses that Party A
sustains as a result.

 

Article 19

Party B shall file timely applications with regard to
the Workshop under this Agreement according to the Inspection Code of Public
Buildings, Rules of Application, Regulation regarding Fire Prevention and
Inspection and their standards.

 

Article 20

The designed carrying capacity of the floors of the Workshop
under this Agreement is 500 kilograms per square meter. For the purpose of
ensuring the safety of the building structure, Party B shall pay attention to
the designed carrying capacity of the floors and consult with structural
technicians or architectures and shall not exceed the limit of carrying
capacity.

 

Article 21

All the requests and notifications related to this
lease shall be made in Chinese in writing and they shall be hand delivered or
mailed to the other party according to the addresses listed under this lease.

Both parties shall notify the other party in writing
of any changes in their addresses within 7 days after such changes.

Deliveries according to the addresses listed under
this lease shall be deemed as lawful deliveries before such notifications.

 

Article 22

Party B shall absolutely perform its obligations
prescribed under the terms and conditions of this lease and shall seek a
guarantor of joint responsibilities on its own. The guarantor shall, after
thoroughly reading this lease, sign its name and affix its seal in the column
reserved for guarantors. A photocopy of its ID shall also be retained as an
attachment of this lease. The photocopy of the ID shall be the front side of
the ID. Party B and the guarantor of joint responsibilities shall warrant that
the photocopy is exactly the same as the original and is free of any fraud or
dishonesty.

The guarantor of joint responsibilities shall
unconditionally bear joint responsibilities along with Party B in case Party B
breaches any of the terms and conditions of this lease. It shall also agree to
waive its right of discussion under Article 745 of the Civil Code.

The guarantor of joint responsibilities is not allowed
to relieve itself of its responsibilities without prior approval from Party A
if it wants to exit from the guarantee midway.

 

[illegible seal]

 

4

 

Apart from a guarantor of joint
responsibilities, Part B can also fulfill obligations by written joint
guarantee of banks, joint guarantee insurance policy of insurance company, time
deposit certificate with pledge of financial institutions, or other forms
approved by Party A, provided that the guarantee commences prior to or on the execution
date of the agreement.

For written joint guarantee
of banks, joint guarantee insurance policy of insurance company, time deposit
certificate with pledges of financial institutions, or other forms approved by
Party A, the executor of guarantee liabilities shall hold the same
responsibilities and guarantee with the guarantor of joint responsibilities. The
due time or expiry date to which the written guarantee is kept in registration in
light of related authority or financial laws and regulations shall extend over
sixty (60) days more than the lease period hereto.

 

Article 23

Both parties concluding the
lease hereto herby make the presentation that they are duly authorized, and are
properly empowered to enter into this lease.

The stamp and seal with
which Party B uses for lease execution shall be both consistent with the same
that Party B deposits with Party A in the corporate registration procedures.

 

Article 24

Parties agree that any
lawsuit arising out of the lease shall be governed by the laws of Republic of
China and the Taiwan Hsin Chu District Court shall have jurisdiction as
the court of first instance.

 

Article 25

The lease is made in duplicate
copies and each party shall keep one copy for filing.

 

[illegible seal]

 

5

 

Parties to this lease:

 

Party A: Science Park Administration

Duly authorized
representative: Yan Zongming [illegible seals]

Address: No. 2, Xin’an
Road, Hsin Chu, Taiwan

 

Party B: Optronics International Corp

Duly authorized
representative: Magnier

Address: No 46 Park Road
2nd, Hsin Chu Science Park, Taiwan  [illegible seals]

 

Guarantor of joint
responsibilities for Party B: Qiu Mingji [seal]: Qiu Mingji

ID Number of the
guarantor of joint responsibilities: Q120811843

 

 

January 1, 2009

 

[illegible seal]

 

6

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