Jinhao Motor Company. Exhibit 10.18 - Filed by newsfilecorp.com






Exhibit 10.18



	 Grant Contract of State-owned Land Use
      Right 

 
	 (Preliminary Granting Contract of
      Industrial Lands) 
	 	 
	 	 
	Granter: 	Land and Resources Bureau, Zhaoqing New &
      High Technology Industrial Development 
	  	Zone, Guangdong 
	 (hereinafter referred to as Party A)
  
	 	 
	Grantee: 	Zhaoqing Yugang Machinery Manufacturing Co.,
      Ltd. 
	 
	 (hereinafter referred to as Party B)
  


Article 1 This Contract is made by and between the
Parties based on the principles of equality, voluntariness and compensation in
accordance with the Interim Regulations of the People’s Republic of China
Concerning the Assignment and Transfer of the Right to the Use of the
State-Owned Land in the Urban Areas and other relevant State and local laws
and regulations. 

Article 2 Party A shall grant the land use right
pursuant to this Contract, the right of which belongs to the People’s Republic
of China. The underground resources, objects buried underground and public works
are not included in the granting scope of land use right. 

Article 3 The plot granted by Party A by means of
compensation is located in Shali Industrial Park, West Yingbin
Street, with a total area of 153123.72m2 (converted into
229.68mu) (subject to the planed survey area). 

Article 4 The plot hereunder shall be for building
industry project according to the general plan approved. The granting period of
such use right shall be fifty years. 

Article 5 The granting fee of land use right regarding
this plot shall be RMB thirty three thousand yuan/mu (33,000.00
yuan in figures), including 5,000 yuan/mu comprehensive fee, (price
of this plot shall be subject to the Agreement on Finance Rewards concluded by
Zhaoqing New & High Technology Industrial Development Zone, Guangdong),
amounting to RMB seven million five hundred seventy nine thousand and
four hundred forty yuan only (7,579,440.00 yuan in figures). 

Article 6 The Grantee, within three days upon execution
of the Contract, shall pay the Granter RMB one hundred thousand
yuan (100,000.00 yuan in figures) as the advance payment, which may
be used to offset the granting fee of land use right. 

Article 7 The Grantee agrees to pay
      the aforementioned granting fee in accordance with sub-article (I)
      hereof. 



	(I) 	
      To pay off the aforementioned granting fee in lump sum
      within ten days upon execution of this Contract.

	 	 
	(II) 	
      The Grantee agrees to pay off the granting fee within 3
      months upon execution of this Contract and shall make payment to the
      Granter in instalments at the following time and amount:




First Instalment: RMB in words
      __________Yuan ( _______________ yuan in figures), to be paid before _____________________. 
    

Second Instalment: RMB in words ____________Yuan (________________ yuan in
      figures), to be paid before
  ______________________.











Third Instalment: RMB in words _____________Yuan (
________________yuan
in
figures),
to be
paid before _____________________.


Article 8  Building Requirements

 



	
1. 		
Party B must start construction within 3 months upon execution of this Contract. Where Party B fails to start construction within half a year thereafter, Party A shall have right to adjust this plot.

	
	 	 
	
2. 		
Party B shall complete 60% of the total quantities of the gross building area within one year upon execution of this Contract, and complete all utilities within two years (with the exception of force majeure event). In case of
delayed completion, Party B shall, one month prior to the expiration date of the construction, file an extension application for good reason, and the extended period shall not exceed one year.

	
	 	 
	
3. 		
The Grantee shall commerce development and construction as agreed. Where it fails to start construction one year after the agreed date, the Grantor may collect a vacant land tax equaling to 4% of the granting fee against the
Grantee; in case it fails to do so two years after the agreed date, the Granter may recover the land use right without compensation, with the exception of delayed construction as a result of a force majeure event or act of government or governmental
authority.

	



Article 9 According to municipal facilities requirement, Party B shall independently consummate the drainage and drainage ditch supporting facilities within the red construction line of this plot. 


Article 10 This Contract shall be made in duplicate, with each party holding one copy. The two originals shall have equal legal effects. 


Article 11 Any matters unmentioned herein shall be set forth in an appendix concluded by the Parties through negotiation, which shall be equally authentic with this Contract. 







	Party A 	Party B 
	 	 
	Signature: (official seal of Land and Resources 	Signature: (company seal of Zhaoqing Yugang
  
	Bureau, Zhaoqing New & High Technology 	Machinery Manufacturing Co., Ltd.) 
	Industrial Development Zone, Guangdong) 	  
	  	
	/s/ legal representative 	/s/ legal representative 
	  	  
	Liaison Telephone: 0758-3647683 	Liaison Telephone: 
	 	 
	Fax: 0758-3646227 	Fax: 
	 	 
	Full name of account: State Land and Resources 	  
	Bureau, Zhaoqing New & High Technology 	  
	Industrial Development Zone, Guangdong 	  
	Opening Bank: Zhaoqing China Construction 	  
	Bank, Dawang Branch 	  
	CCB Account No.: 440708401012000001769 	  
	Opening bank: Agricultural Bank of China, 	  
	Zhaoqing Gaoxin Branch 	  
	ABC account No.: 44-650101040001157 	  
	  	  
	  	           
                         
                         
                         
                         July
      21, 2003