EXHIBIT 4.18
TRANSLATION
TENANCY AGREEMENT
Lessor: Shekou Wan Ha Enterprises Shareholding Co. Ltd.
(hereinafter called Party A)
Tel: 0000000
Lessee: Jetcrown Industrial (Shenzhen) Limited
(hereinafter called Party B)
Tel: 00000000000
Identity Card or Unit Business Licence No.:
Through negotiations of both parties, and according to the relevant
regulations of Shenzhen Special Economic Zone, Party A and B signed the
following contract relating to lease of property.
1. Party B is, at his own discretion, to lease 41 dormitories of Block C1,
New Wing Village, Shekou and 38 dormitories of Complex Building, Shekou
from Party A. The properties will be used as DORMITORY. The construction
area of these rooms is 3,873.77 square meters. The total monthly rental
shall be DOLLARS SIXTY ONE THOUSAND TWO HUNDRED FIFTY FOUR AND CENTS TEN
RENMINBI (RMB61,254.10).
2. The terms of the tenancy shall be from January 1, 2002 to December 31,
2002.
3. The monthly rental will be cleared per month. (if less than 15 days,
Party B should pay half month rental; if more than 15 days, Party B then
should pay whole month rental). The rental should be paid in each month.
Party B should pay the rental before 5th of each month to the shroff
department designated by Party A. If the rental becomes overdue, a late
charge of 2% per day will be charged. If the rental becomes overdue for
more than thirty days, it will be treated as breach of contract by Party
B. Party A has the right to take possession of the property and request
Party B to pay the rental and the guarantee sum will not be refunded.
4. On signing of this Agreement, Party B shall pay to Party A a guarantee sum
which equals to one month's rental i.e. DOLLARS SIXTY TWO THOUSAND FIFTY
NINE AND CENTS TEN RENMINBI (RMB 62,059.10). Upon the expiry of the
contract, Party A will refund the guarantee sum, without interest, to
Party B.
5. Party B is not allowed to alter the structure and use of the property at
his own discretion. If any loss or responsibility arises because of this
reason, Party B has full responsibility to renovate the same or indemnify
from the economical loss. According to the situation, Party A has the
right to take possession of the property. Any loss arise will be deducted
from the guarantee sum paid by Party B. (If the amount is insufficient,
Party B should pay the balance.)
6. Party B can, with Party A's permission, to alter the building structure
and use of the property. Upon the expiry of the contract, Party A has the
right to request Party B to restore the property into original state and
condition without any conditions. The relevant expenses should be borne by
Party B.
7. During the tenancy period, if there is any loss arise from the occurrence
of natural disasters, both parties should handle the case according to the
relevant regulations.
8. During the tenancy period, Party B is not allowed to sublet the property
to third parties. Otherwise, a penalty, which equals to two times the
rental, will be imposed and Party A will take possession of the property.
All the responsibility will be borne by Party B.
9. Upon the expiry of the contract, with the agreement of Party A, Party B
can renew the contract but Party B should inform Party A one month before
the expiry of the contract. The rental will be determined by Party A. If
under the same conditions offered by third parties, Party B has the first
priority to lease the property. After the expiry date, Party B does not
move out and return the property and he does not intend to renew the
contract, Party A has the right to take relevant actions to take
possession of the property. Party A can deduct or confiscate the contract
guarantee sum and request Party B to pay the overdue rental.
10. Both parties cannot breach the contract at his own discretion after they
signed and chopped the contract. In the course of the contract, if either
party proposed to terminate the contract, the proposed one should
compensate the other party a sum, which equals to one month's rental.
Through the negotiations of both parties, they can terminate the contract
but they should give one month's notice to the other party.
11. The rental mentioned in this contract does not include the management fee
charged by the relevant property management department, the water and
electricity charges, gas fee and cable TV charges etc. or the fee for
using the district or urban facilities. Such fees should be borne by Party
B.
12. If the relevant departments imposed any charges, it will be borne by Party
B as well.
13. Party A should make sure the leased property complies with the relevant
fire prevention regulations of the Country.
14. Party B is not allowed to use fire to xxxx and home used electrical
appliances. (such as electrical oven, electrical cooker, electrical
heater)
15. Party B is not allowed to install electrical wires at his own discretion.
If the electrical source is out of order, Party B should inform Party A to
repair at once. If Party B intends to install electrical boiler, he can
commence work only after getting Party A's permission.
16. Party A, upon receipt Party B's report, should repair the facilities and
the expenses will be borne by Party B.
17. Fire broke out because of the aforementioned reasons, any loss arising
from the fire will be borne by Party B. If the case is serious, Party A
will stop the electricity supply and report to National Safety and Fire
Department to handle.
18. The yearly rental was at 8% discount as the payment was made at one time,
i.e. DOLLARS SIX HUNDRED SEVENTY SIX THOUSAND TWO HUNDRED FORTY FIVE
RENMINBI (RMB 676,245.00).
19. If there shall be anything that is not provided for by this Agreement, the
parties can solve it through negotiation. This contract is made in
triplicate, Party B will keep one copy while Party A will keep two copies,
they are all have equal legal validity.
Party A: (Chop) Party B: (Chop)
Signature of the Signature of the
representative: (Signed) representative : (Signed)
January 1, 2002
Remarks: Block C1, New Wing Village -- Room 201-203 205-208 210 211 305 307-310
402 404 405 407 409 502-504 506 507 510 514 515 516 601 603 604 605 606
607 609 610 611 612 613 614 616, 41 rooms with total area of 2,015.88
square meters.
Complex Building -- Room 203 205-208 210-212 000 000 000 302-305 307 309 310
312-317 401 403-405 407-416, 38 rooms with total area of 1,857.89
square meters.
