Document:

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                                                                    EXHIBIT 10.1

                             SUBSCRIPTION AGREEMENT

     Supply Chain Services Inc. (hereinafter referred to as the "Company") and
the undersigned investor (hereinafter referred to as the "undersigned")
executing this subscription agreement (hereinafter referred to as the
"Subscription Agreement") hereby agree as follows:

1. SUBSCRIPTION FOR SHARES

     The undersigned hereby subscribe for and agree to purchase [ ] shares of
the common stock, par value $0.0001 ("Common Stock"), being offered by the
Company at US$0.35 per share ("Shares") described in the Prospectus dated [ ],
2001 of the Company ("Prospectus") subject to the terms and conditions of the
offering described in the Prospectus.

2. OFFERING PERIOD.

     The Shares are currently being offered by the Company up to and until [ ],
2001 inclusive ("Termination Date"). The Company has the sole discretion to
extend the offering of Common Stock for up to three thirty-day periods, but in
no event later than [ ], 2001.

3. INVESTOR DELIVERY OF DOCUMENTS AND PAYMENT.

     The undersigned hereby tender to the Company (i) the full purchase price by
check or wire; and (ii) two manually executed copies of this Subscription
Agreement. Prior to the acceptance of the subscription by the Company or the
return of the subscription amount, the funds will not be held in an escrow,
trust or of similar nature of account.

4. ACCEPTANCE OR REJECTION OF SUBSCRIPTION.

     The Company has the right to reject this subscription for Shares, in whole
or in part for any reason and at any time prior to it being accepted. In the
event of the rejection of this subscription, the subscription amount paid will
be returned promptly to the undersigned without interest or deduction and this
Subscription Agreement will have no force or effect. The Shares subscribed for
herein will not be deemed issued to or owned by the undersigned until two copies
of this Subscription Agreement have been executed by the undersigned and
countersigned by the Company and a closing with respect to this subscription has
occurred.

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5. CLOSING AND DELIVERY OF SHARES.

     Closings will occur on a rolling basis from time to time at the discretion
of the Company, at the offices of the Company, at any time prior to the
Termination Date. In the event this subscription is accepted and the purchase
funds are cleared by the bank, the certificates representing the shares will be
delivered promptly to the undersigned, along with a fully executed version of
this Subscription Agreement within ten business days.

6. PROSPECTUS AND PUBLICITY.

     6.1 The Company confirms that for the purpose of the offering, this
         Subscription Agreement and the Prospectus have been prepared in
         accordance with the requirements of the SEC and delivered to the
         officers and directors of the Company and possibly one or more NASD
         registered brokers/dealers (the "Selling Agents") who may be engaged
         in the offer and sale of the Common Stock.

     6.2 The Company authorizes its directors and officers and Selling Agents
         to distribute copies of the Prospectus after the same has become
         effective in connection with the offering.

7. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company represents and warrants to the undersigned that:

     7.1 Incorporation: The Company is duly incorporated and validly existing
         under the laws of State of Delaware, with full power and authority to
         conduct its business as described in the Prospectus and is a separate
         legal entity capable of suing and being sued.

     7.2 Validity of Agreement: This Subscription Agreement has been duly
         authorized, executed and delivered by the Company and constitutes its
         valid and legally binding obligations except to the extent that the
         enforcement thereof may be limited by bankruptcy reorganization or
         other similar laws relating to or affecting the enforcement of
         creditors' rights generally.

     7.3 Prospectus: (A) The Prospectus contains all information with respect
         to the Company which is material in the context of its offering of
         Shares (including all information required by applicable laws and the
         relevant SEC notifications and the information which, according to the
         nature of the Company, is necessary to enable investors and their
         investment advisers to make an informed assessment of the assets and
         liabilities, financial position, profits and losses, and prospects of
         the Company); (B) the statements contained in it relating to the
         Company are in every material aspect true and accurate and not
         misleading; (C) the opinions and intentions expressed in it with
         regard to the Company are honestly held and have been reached after
         considering all relevant circumstances, auditors reports and
         professional advice, and are based on reasonable assumptions; (D)
         there are no other facts in relation to the Company, the omission of
         which would make any statement in the Prospectus in proof or final
         form misleading in any material respect; and (E)

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         all reasonable enquiries have been made by the Company to ascertain
         such facts and to verify the accuracy of all such material information
         and statements.

     7.4 Outstanding Shares: The outstanding shares of Common Stock of the
         Company have been duly authorized and registered under the Securities
         Act of 1933, as amended, and validly issued and are fully paid and
         non-assessable, and no pre-emptive rights of stockholders exist with
         respect to any of the Shares.

     7.5 Financial Statements: (A) The financial statements of the Company
         appearing in the Prospectus which relate to historical information
         have been audited or extracted from audited financial statements and
         were prepared in accordance with accounting principles generally
         accepted in, and pursuant to, the relevant laws of the United States
         of America consistently applied except as disclosed in the Prospectus
         and present fairly the financial position of the Company at the dates,
         and the results of operations and changes in financial position of the
         Company for the periods in respect of which they have been prepared;
         and (B) Since the date of the last audited financial statements of the
         Company referred to in the Prospectus there has been no change nor any
         development or event involving a prospective change which is or might
         reasonably be expected to be materially adverse to the condition
         (financial or other), prospects, results of operations or general
         affairs of the Company except as disclosed in the Prospectus.

     7.6 Litigation: On March 30, 2001, the President of the Company, Mr.
         Thomas Chu's former employer, United States Consolidation Limited
         ("USCL"), served process on Mr. Thomas Chu and the Company's
         subsidiaries. In its writ served to Mr. Chu, it was claimed by USCL
         that Mr. Chu has violated implied non-competition terms in his
         contract and breached his trust and fiduciary duties to USCL. USCL
         alleges to have suffered loss and damage from contracts which were
         entered into by Thomas Chu for and on behalf of USCL which were
         against the interests of USCL and seeks equitable compensation from
         Mr. Thomas Chu, and an account from the Company's subsidiaries. Mr.
         Thomas Chu has hired Messrs. Ivan Tang & Company, as his, and the
         Company's subsidiaries' counsel, and Messrs. Ivan Tang & Company and
         Mr. Thomas Chu believe they can mount a strong defense against USCL's
         claims.

     7.7 Possession of Licenses and Permit: (A) The Company possesses such
         permits, licenses, approvals, consents and other authorizations
         (collectively, "Licenses") issued by the appropriate federal, state,
         local or foreign regulatory agencies or bodies necessary to conduct
         the business now operated by it; (B) the Company is in compliance with
         the terms and conditions of all such Licenses, except where the
         failure so to comply would not, singly or in the aggregate, have a
         material adverse effect on the condition (financial or other),
         prospects, results of operations or general affairs of the Company;
         (C) all of the Licenses are valid and in full force and effect; and
         (D) the Company has not received any notice of proceedings relating to
         the revocation or modification of any such Licenses which, singly or
         in the aggregate, if the subject of an unfavorable decision, ruling or
         finding, would

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         result in a material adverse effect on the condition (financial or
         other), prospects, results of operations or general affairs of the
         Company.

8. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE DIRECTORS AND OFFICERS OF
   THE COMPANY AND THE SELLING AGENTS.

     8.1 Each of the directors and officers of the Company and Selling Agent
         represents and warrants to the Company that it has full power and
         authority to enter into and perform its duties and obligations under
         and in connection with this Subscription Agreement and has taken all
         action (corporate or otherwise) necessary to authorize the execution
         of this Subscription Agreement and the performance hereunder, and this
         Subscription Agreement constitutes valid and binding obligations of
         each of the directors and officers.

     8.2 The directors and officers of the Company and Selling Agents shall
         perform their obligations and duties under this Subscription Agreement
         to the best of their abilities and shall exercise all due skill,
         diligence and care in performance of their duties hereunder so that
         these activities are done properly.

     8.3 No action has been or will be taken in any jurisdiction (other than
         the State of Delaware) by the directors and officers of the Company or
         the Selling Agents that would permit a public offering of Shares or
         possession for distribution of the Prospectus (in preliminary, draft
         or final form) or any other offering or publicity material relating to
         the Shares, in any country or jurisdiction where action for that
         purpose is required.

9. INDEMNITY.

     9.1 The obligations of the parties hereto other than the Company are made
         on the basis of the foregoing representations and warranties of the
         Company and with the intention that they shall remain true and
         accurate in all material respects up to and including the Termination
         Date, the Company will indemnify each such party from and against any
         loss, liability, cost, claim, action, demand or expense (including,
         but not limited to, all reasonable costs, charges and expenses paid or
         incurred in disputing or defending any of the foregoing) which any of
         them may incur or which may be made against any of them arising out of
         or in relation to or in connection with any breach by the Company of
         any such representation or warranty, or any other undertaking or
         obligation contained in this Subscription Agreement.

     9.2 If any action, claim or demand shall be brought or alleged against an
         indemnified party in respect of which indemnity is to be sought
         against the Company under this Clause, the indemnified party shall
         promptly notify the Company in writing, and the Company shall have the
         option to assume the defence thereof, with counsel satisfactory to the
         indemnified party (who shall not,

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         except with the consent of the indemnified party, also be counsel of
         the Company). If the Company elects to assume the defence thereof and
         retains such legal advisers, the indemnified party shall bear the fees
         and expenses of any additional legal advisers retained by it. If the
         Company does not elect to assume the defence thereof or fails to
         employ legal advisers satisfactory to the indemnified party to
         represent the indemnified party within a reasonable period of time
         after notice of commencement of the action, it will reimburse the
         indemnified party at its election to assume the defence thereof. The
         Company shall not be liable to indemnify any indemnified party for any
         settlement of any such action effected without the authority and
         written consent of the Company which consent shall not be unreasonably
         withheld.

     9.3 Each of the directors and officers of the Company and Selling Agents
         will indemnify the Company from and against any and all losses,
         liabilities, claims, damages, demands, actions or expenses (including
         but not limited to, all reasonable costs, charges and expenses paid or
         incurred in disputing or defending any of the foregoing) which the
         Company may incur or which may be made against the Company arising out
         of or relating to in connection with any breach by any of the
         directors and officers of the Company and Selling Agents of any
         representation and/or warranty, or any other undertaking or duties or
         obligations contained in this Subscription Agreement.

10. UNDERTAKINGS OF THE COMPANY.

     The Company covenants and undertakes to the undersigned and all other
parties hereto as follows:

     10.1 Prospectus: The Company shall be responsible for all material
          information contained in the Prospectus. The Company shall take all
          necessary steps to ensure that the Prospectus shall be sufficient so
          as to satisfy all SEC requirements and other requirements of
          applicable law and regulations. The other parties hereto shall have no
          liability for the accuracy or completeness of anything contained in
          the Prospectus except information provided by them.

     10.2 Amendments to the Prospectus: The Company shall promptly notify its
          directors and officers and the Selling Agents if at any time on or
          prior to the Termination Date there shall have come to its notice any
          circumstance or any event as a result of which the Prospectus would
          include an untrue statement of a material fact or omit to state any
          material fact necessary to make the statements therein, in the light
          of the circumstances under which they are made when such Prospectus is
          delivered, not misleading or if for any other reason it shall be
          necessary to amend or supplement the Prospectus.

11. REPRESENTATIONS AND WARRANTIES OF THE UNDERSIGNED.

     The undersigned represents and warrants to the Company that:

     11.1 The undersigned has read the Prospectus and fully understands the
          Prospectus, including the Section entitled "Risk Factors". The

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          undersigned understands that there is no assurance as to the future
          performance of the Company. The undersigned have not relied on
          information other than what can be found in the Prospectus in making
          his/her/its decision to invest in the Shares.

     11.2 The undersigned has received no representation or warranty from the
          Company or any of its respective offices, employees or agents in
          respect of his/her/its investment in the Company.

     11.3 The information provided herein in relation to the undersigned is true
          and complete as of the date hereof and will be true and complete as of
          the date of which the purchase of Shares becomes effective. If, prior
          to the final consummation of the offer and sale of the Shares, there
          should be any change in such information of any of such information
          becomes incorrect or incomplete, the undersigned warrants that
          he/she/it will notify the Company and supply the Company promptly with
          corrective information.

12. ENTITY AUTHORITY.

     If the investor/undersigned is a corporation, partnership, company, trust,
employee benefit plan, individual retirement account, Keogh Plan, or other
tax-exempt entity, this investment has been duly authorized by all necessary
corporate or other action by such entity and is qualified to become an investor
in the Company and the undersigned on behalf of such entity has been duly
authorized by such entity to do so.

13. GOVERNING LAW AND JURISDICTION.

     This Subscription Agreement will be deemed to have been made and delivered
in the Hong Kong Special Administrative Region and will be governed as to
validity, interpretation, construction, effect and in all other respects by the
internal laws of the Hong Kong Special Administrative Region. Each of the
Company and the undersigned hereby (i) agrees that any legal suit, action or
proceeding arising out of or relating to this Subscription Agreement will be
instituted exclusively in the courts of the Hong Kong Special Administrative
Region, (ii) waives any objection to the venue of any such suit, action or
proceeding and the right to assert that such forum is not a convenient forum for
such suit, action or proceeding, (iii) irrevocably consents to the jurisdiction
of the courts of the Hong Kong Special Administrative Region in any such suit,
action or proceeding, (iv) agrees to accept and acknowledge service of any and
all process that may be served in any such suit, action or proceeding in the
courts of the Hong Kong Special Administrative Region; and (v) agrees that
service of process upon it mailed by certified mail to its address set forth on
the signature page hereto will be deemed in every aspect effective service of
process upon it in any suit, action or proceeding.

14. COUNTERPARTS.

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     This Subscription Agreement may be executed in one or more counterparts,
each of which will be deemed an original but all of which together will
constitute one and the same instrument. The execution of this Subscription
Agreement may be actual or facsimile signature.

15. BENEFIT.

     This Subscription Agreement is binding upon and inures to the benefit of
the parties hereto and their respective heirs, executors, personal
representatives, successors and assigns. The undersigned shall be permitted to
assign this Subscription Agreement upon notice to and written consent of the
Company.

16. NOTICES.

     All notices, offers, acceptance and any other acts under this Subscription
Agreement (except payment) must be in writing, and is sufficiently given if
delivered to the addresses in person, by overnight courier service, or, if
mailed, postage prepaid, by certified mail (return receipt requested), and will
be effective three days after being placed in the mail if mailed, or upon
receipt or refusal of receipt, if delivered personally or by courier or
confirmed telecopy, in each case addressed to a party. All communications to the
undersigned should be sent to the undersigned's preferred address on the
signature page hereto.

     All communications to the Company should be sent to Mr. Thomas Chu of
8/F, Guangdong Textile Centre, 22 Minden Avenue, Tsimshatsui, Kowloon, Hong
Kong.

     Each party may designate another address by notice to the other parties.

17. ORAL EVIDENCE.

     This Subscription Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior oral
and written agreements between the parties hereto with respect to the subject
matter hereof. This Subscription Agreement may not be changes, waived,
discharged, or terminated orally, but rather, only by a statement in writing
signed by the party or parties against which enforcement or the change, waiver,
discharge or termination is sought.

18. SECTION HEADINGS.

     Section headings herein have been inserted for reference only and will not
be deemed to limit or otherwise affect, in any matter, or be deemed to interpret
in whole or in part, any of the terms or provisions of this Subscription
Agreement.

19. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

     The representations, warranties and agreements contained herein will
survive the delivery of, and the payment for, the Shares.

20. ACCEPTANCE OF SUBSCRIPTION.

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     The Company may accept this Subscription Agreement at any time for all or
any portion of the Shares subscribed for by executing a copy hereof as provided
and notifying the undersigned within a reasonable time thereafter.

          The remainder of this page has intentionally been left blank.

                      SIGNATURES APPEAR ON THE NEXT PAGE(S)

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       SIGNATURE PAGE FOR INDIVIDUAL INVESTORS -- COMPLETE ALL INFORMATION

Name:                                 Name of Joint Investor (if any):
     --------------------------------                                 ----------

Residence Address:
                  --------------------------------------------------------------

Telephone: (H)                   (W)                     Fax
              -------------------   ---------------------   --------------------

Occupation:                              Employer:
           ----------------------------           ------------------------------

Business Address:
                 ---------------------------------------------------------------

Send communications to:

     [ ] Home        [ ] Office        [ ] E-Mail

     E-mail address:
                    -----------------------------------------

Age:
    ----------------

Social Security Number / Hong Kong Identity Card No.:
                                                              ------------------
Check manner in which Shares are to be held:

[ ] Individual      [ ] Tenants in       [ ] Joint Tenants with
    Ownership           Common               Right of Survivorship
                            (both parties must sign)

[ ] Community       [ ] Other (please indicate)
    Property
                        ------------------

ALL INVESTORS MUST SIGN AND PRINT      The foregoing subscription is accepted
NAME BELOW:                            the Company hereby agrees to be bound
                                       by its terms.

                                       Supply Chain Services Inc.

                                       ---------------------------
                                       Name:
                                       Title:
                                       Date:

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Investor:

------------------------
Name:
Title:
Date:

Joint Investor (if applicable):

----------------------------
Name:
Title:
Date:

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         SIGNATURE PAGE FOR ENTITY INVESTORS -- COMPLETE ALL INFORMATION

Name of Entity:
               -----------------------------------------------------------------

Address of Principal Office:
                            ----------------------------------------------------

Telephone:                              Fax:
          ------------------------          ------------------------------------

Taxpayer Identification Number:
                               ----------------------------------

Check type of Entity:

<TABLE>
<S>                     <C>                <C>                <C>
[ ] Employee Benefit    [ ] Limited        [ ] General        [ ] Individual Retirement
    Plan Trust              Partnership        Partnership        Account

[ ] Limited Liability   [ ] Trust          [ ] Corporation    [ ] Other (please
    Company                                                       indicate)
                                                                           ---------
</TABLE>

Date of Formation or Incorporation of Entity:
                                             ------------------------

State of Formation or Incorporation of Entity:
                                              -----------------------

Describe the business of the Entity:
                                    --------------------------------------------

--------------------------------------------------------------------------------

List the names and positions of the executive officers, managing members,
partners or trustees authorized to act with respect to investments by the Entity
generally and specify who has the authority to act with respect to this
investment.

NAME               POSITION       AUTHORITY FOR THIS INVESTMENT (YES OR NO)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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ALL INVESTORS MUST SIGN AND PRINT         The foregoing subscription is accepted
NAME BELOW:                               and the Company hereby agrees to be
                                          bound by its terms.

                                          Supply Chain Services Inc.

                                          --------------------------------------
                                          Name:
                                          Title:
                                          Date:

Entity Investor

---------------------------------
For and on behalf of:
Name:
Title:
Date:

                                       12<PAGE>   1
                                                                    EXHIBIT 10.2

                         Dated the 12th day of May 1999

                               CHINASOUND LIMITED

                                       and

                          SUPPLY CHAIN SERVICES LIMITED

                              *********************

                        T E N A N C Y   A G R E E M E N T

               relating to 8th Floor on Guangdong Textile Centre,
              Nos.22, 24 and 26, Minden Avenue, Kowloon, Hong Kong.

                              *********************

                                LIU, CHAN & LAM,

                                   SOLICITORS,
                                   HONG KONG.
                           Ref. K-CSN/wl/T-96414-7/99
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<TABLE>
<CAPTION>
COLUMN 1                                                                COLUMN 2
--------                         --------------------------------------------------------------------------------------
<S>                              <C>
Date of Agreement                The 12th day of May, 1999

Landlord                         CHINASOUND LIMITED whose registered office is situate at 17th Floor,
                                 Guangdong Textile Centre, Nos. 22, 24 and 26, Minden Avenue, Tsimshatsui, Kowloon

Tenant                           Supply Chain Services Limited whose registered office is situate at 31 New Henry
                                 House, 10 Ice House Street, Central, Hong Kong

Property                         8th Floor, Guangdong Textile Centre, 22-26 Minden Avenue, Tsimshatsui, Kowloon

Term                             Two years -----

Commencement Date                The 7th day of May, 1999

Rent                             Hong Kong Dollars Twenty Two Thousand Seven Hundred And Fifty Only
                                 (HK$22,750.00) per month

Management Charges               Hong Kong Dollars Nine Thousand Five Hundred And Fifty Only (HK$9,555.00)
                                 per month, which is subject to revision at the absolute discretion of the Landlord

Deposit                          Hong Kong Dollars Ninety Six Thousand Nine Hundred And Fifteen Only (HK$96,915.00) as
                                 to HK$68,250.00 being rental deposit and HK$28,665.00 being management charges deposit

Permitted Use                    For business purpose only

Rent Free Period                 7th May 1999 to 21st July 1999 and 7th March 2001 to 6th May 2001

Bulky Deliveries                 Monday to Friday (inclusive) From 9:00 am to 5:00 pm
                                 Saturday From 9:00 am to 1:00 pm

Air-Conditioning                 Monday to Friday (inclusive) From 8:30 am to 6:00 pm
Monday to Friday                 Saturday From 8:30 am to 1:30 pm
</TABLE>
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     THIS AGREEMENT is made on the date stated as the Date of Agreement in the
     Particulars BETWEEN (1) the Landlord and (2) the Tenant

     WHEREBY IT IS AGREED as follows:

DEFINITIONS       1. (1) In this Agreement the following expressions have the
                         following meanings :

                         (a) expressions in Column 1 of the preceding table
                             hereof have the meanings assigned to them by
                             Column 2 thereof;

                         (b) the Landlord includes its successors in title.

                     (2) Where the Tenant is more than one person their
                         obligations shall be joint and several.

                     (3) Unless the context otherwise requires, words herein
                         importing the masculine feminine or neuter gender
                         shall include the others of them and words herein in
                         the singular shall include the plural and vice versa.

                     (4) The marginal notes are intended for guidance only and
                         do not form part of this Agreement nor shall any of
                         the provisions in this Agreement be construed or
                         interpreted by reference thereto or be in any way
                         affected or limited thereby.

                     (5) Any reference to any ordinance includes a reference to
                         that ordinance as amended or replaced from time to
                         time and to subordinate legislation or bye-law made
                         thereunder.

                     (6) The Particulars mentioned hereinbefore shall form part
                         of this Agreement.

LETTING           2. The Landlord shall let and the Tenant shall take ALL TERM
                     AND RENT the Property on an "as basis" for the Term from
                     the Commencement Date paying therefor during the Term
                     (save and except during the Rent Free Period)the Rent
                     exclusive of rates) and the Air-conditioning and
                     Management Charges payable in advance on the 7th day of
                     each calendar month free of any deductions whatsoever; the
                     first payment to be made on the signing hereof.

TENANT'S          3. The Tenant agrees with the Landlord as follows :-
OBLIGATIONS
TO PAY RENT,         (1) To pay the Rent and Air-conditioning and Charges as
AIR-CONDITIONING         aforesaid without any set off or
                         deduction whatsoever.

TO PAY RATES         (2) To pay and discharge all rates, taxes, assessments,
AND OUTGOINGS            duties, charges, impositions and outgoings whatsoever
                         of an annual or recurring nature to be charged or
                         imposed in respect of the Property or upon the
                         Landlord or occupier in respect thereof (Crown rent
                         and Property Tax only excepted).

                     (3) To pay and discharge all charges for water,
                         electricity, gas, telephone and other services,
                         whatsoever to be charged or imposed in respect of the
                         Property and to pay all necessary deposits (if any)
                         for the meters therefor.

TO MAINTAIN          (4) At the Tenant's expense to keep all the interior of
PROPERTY IN              the Property including the flooring and interior
REPAIR                   plaster or other finishes or rendering to walls,
                         floors and ceilings and the landlord's fixtures
                         therein including all doors, windows, plumbing and
                         sanitary apparatus, electrical
<PAGE>   4
                          installations and wiring in good, clean tenantable
                          repair and condition and properly preserved and
                          painted (reasonable wear and tear excepted) and so to
                          maintain the same at the expense of the Tenant and to
                          deliver up the same to the landlord at the expiration
                          or sooner determination of the Term in like condition
                          except as aforesaid.

TO BE RESPONSIBLE    (5)  To be wholly responsible for any loss, damage or
FOR INTERIOR              injury caused to any person whomsoever directly or
DEFECTS                   indirectly through the defective or damaged condition
                          of any part of or any installation in the Property
                          caused by any act or default of the Tenant and to make
                          good the same by payment or otherwise and to indemnify
                          the Landlord against all actions, proceedings, claims
                          and demands made upon the Landlord in respect of any
                          such lose, damage or injury and all costs and expenses
                          incidental thereto.

TO REPLACE GLASS     (6)  To replace at the Tenant's own expense any glass in
                          any doors or windows of the Property that may become
                          broken, from whatever cause, during the tenancy.

TO ALLOW ACCESS      (7)  To permit the Landlord and all persons authorised by
TO LANDLORD               the Landlord upon notice and at all reasonable times
                          except in cases of emergency to enter (or in cases of
                          emergency or where the Landlord does not receive any
                          response from the Tenant within seven days of the
                          service of such notice to break and enter) the
                          Property to:

                          (a) ascertain whether the Tenant's obligations under
                              and the conditions of this Agreement have been
                              observed and performed,

                          (b) view (and to open up floors and ceiling where the
                              same is required in order to view) the state of
                              repair and condition of the Property,

                          (c) take schedules or inventories of fixtures and
                              fittings and other items in the Property,

                          (d) carry out work or do anything whatsoever comprised
                              within the Landlord's obligations in this
                              Agreement Provided that any such opening-up shall
                              be made good by and at the cost of the Landlord
                              where the same reveals no breaches of the terms or
                              conditions hereof.

TO EXECUTE           (8)  Forthwith to comply with any notice given by the
REPAIRS                   Landlord specifying any works or repairs which the
ON NOTICE                 Tenant has failed to execute in breach of the terms
                          hereof Provided that if within fourteen days of the
                          service of such a notice the Tenant shall not have
                          commenced and be proceeding diligently with the
                          execution of the works or repairs Specified or shall
                          fail to complete within one month (or any other
                          reasonable period stipulated by the Landlord), then to
                          permit the Landlord to enter the Property to execute
                          such works or repairs, and to pay to the Landlord upon
                          demand the cost of so doing and all expenses
                          (including any professional fees) incurred by the
                          Landlord.

NOT TO INJURE        (9)  Not to cut maim or injure or permit or suffer to be
PROPERTY                  cut maimed or injured any doors, windows, walls,
                          beams, structural members or any part of the fabric of
                          the Property nor any of the plumbing or sanitary
                          apparatus or installations included therein, nor to
                          overload the floors ceilings or walls of the Property.

NOT TO ASSIGN        (10) Not to assign underlet or otherwise part with the
                          possession of the Property or any part thereof in any
                          way whether by way of subletting lending sharing or
                          other means whereby any person or persons not a party
                          to this
<PAGE>   5
                          Agreement obtains the use or possession of the
                          Property or any part thereof irrespective of
                          whether any rental or other consideration is given for
                          such use or possession and in the event of any such
                          transfer sub-letting sharing assignment or parting
                          with the possession of the Property (whether for
                          monetary consideration or not) this Agreement shall
                          absolutely determine and the Tenant shall forthwith
                          vacate the Property on notice to that effect from the
                          Landlord. This tenancy shall be personal to the Tenant
                          itself and without in any way limiting the generality
                          of the foregoing the following acts and events shall
                          unless approved in writing by the Landlord be deemed
                          to be breaches of this Sub-Clause:

                          (a) In the case of a tenant which is a partnership the
                              taking in of one or more new partners whether on
                              the death or retirement of an existing partner or
                              otherwise.

                          (b) In the case of a tenant who is an individual
                              (including a sole surviving partner of a
                              partnership) the taking up of the tenancy upon the
                              death, insanity or other disability of that
                              individual by the executors administrators
                              personal representatives next of-kin trustees or
                              committee of any such individual, or the admission
                              of a new partner or partners.

                          (c) In the case of a tenant which is a corporation any
                              take-over by other company or persons,
                              amalgamation, merger, reconstruction or
                              liquidation of the Tenant itself.

                          (d) The giving by the Tenant of a Power of Attorney or
                              similar authority whereby the donee of the Power
                              obtains the right to use possess occupy or enjoy
                              the same.

                          (e) The change of the Tenant's business name or nature
                              of business without the previous written consent
                              of the Landlord which consent 8 hall not be
                              unreasonably withheld.

NOT TO PRODUCE       (11) Not to produce or permit or suffer to be produced any
NOISE                     music, noise (including sound produced by broadcasting
                          or any apparatus or equipment capable of producing
                          reproducing receiving or recording sound) so as to be
                          a nuisance or annoyance to the Landlord or to
                          occupiers of other premises or in the neighbourhood or
                          in anywise against the laws or regulations of
                          Hong Kong.

NOT TO CAUSE         (12) Not to do or permit or suffer to be done any act or
NUISANCE                  thing which may be or become a nuisance or annoyance
                          to the Landlord or to the tenants or occupiers of
                          other premises in the neighbourhood.

INDEMNITY            (13) To indemnify the Landlord against all actions costs
                          claims and demands made upon or against the Landlord
                          in respect of damage to the person or property of
                          any person caused by or through or arising out of any
                          breach, on-observance, non performance and
                          non-compliance by the Tenant of any of the terms,
                          conditions and covenants subject to and under which
                          the Property is held.

NOT TO STORE         (14) Not to keep or store or permit or suffer to be kept or
DANGEROUS GOODS           stored on or in the Property any arms ammunition
                          gunpowder
<PAGE>   6
USER                      saltpetre kerosene or other explosive or combustible
                          or hazardous goods or substance.

                     (15) Not to use or permit or suffer to be used the Property
                          for any purpose other than the Permitted Use.

PROHIBITED USES      (16) Not to use or permit or suffer the Property to be used
                          for any illegal or immoral purpose.

VITIATING            (17) Not to do or permit or suffer to be done in the
INSURANCE                 Property anything which may avoid any policy or
                          policies of insurance in respect of the Property or
                          increase any premium payable for the same and to
                          indemnify the Landlord against all lose and damage
                          suffered in consequence of any breach of this
                          sub-clause and to pay to the Landlord any increase in
                          the insurance premium attributable to the Property by
                          a breach of this sub-clause such payment of increased
                          premium to be made by the Tenant on demand and
                          recoverable as rent in arrear.

INSURANCE            (18) (a) To effect and maintain during the currency of this
                              tenancy insurance cover in respect of the
                              following and on terms set out hereunder.

                              (i) Third Party

                              In respect of third party liability of the
                              landlord and liability for loss injury or damage
                              to any person or property whatsoever caused
                              through or by any act default or neglect of the
                              Tenant which might give rise to a claim for
                              indemnity pursuant to Clause 3(13) hereof;

                              (ii) Glass

                              Any glass in the windows doors and partition now
                              or hereafter on or in the Property for its full
                              replacement value;

                              (iii) Water Damage

                              Against damage to stock fixtures and fittings for
                              the full insurable value occurring in respect of
                              the use or misuse of the fire sprinkler system
                              installed within the Property or the incursion or
                              water therein; and

                              (iv) Tenant's Fittings

                              The Tenant's fittings and equipment within the
                              Property against fire and extraneous perils for
                              their full replacement value.

                          (b) The policy or policies of such insurance shall be
                              effected with an insurance company duly registered
                              with the Insurance Authority under the Insurance
                              Companies Ordinance, Chapter 41 of the Laws of
                              Hong Kong subject to the prior approval of the
                              Landlord which approval shall not be unreasonably
                              withheld and further endorsed to show the Landlord
                              as joint insured and the said policy or policies
                              of insurance shall contain a clause to the effect
                              that the insurance cover thereby effected and
                              the terms and conditions thereof shall not be
                              cancelled modified or restricted without the
                              prior consent of the Landlord. The Tenant hereby
                              further undertakes to produce to the Landlord as
                              and when required by the Landlord such policy or
                              policies of insurance together with a receipt
                              or the last payment of premium and a certificate
                              from the insurance company that the policy is
                              fully paid up and in all respects valid and
                              subsisting and to cause all monies received by
                              virtue of any such insurance to be forthwith paid
                              to the landlord and that if the Tenant shall
                              at any time fail to keep the Property insured as
<PAGE>   7
                              aforesaid the Landlord may do all things necessary
                              to effect and maintain such insurance and any
                              monies spent by the Landlord for that purpose
                              shall be repayable by the Tenant on demand and be
                              recoverable by the Tenant on demand and be
                              recoverable forthwith by the Landlord by action.

NOT TO               (19) Not to encumber or obstruct or permit to be encumbered
OBSTRUCT                  or obstructed with any boxes, dust bins, merchandise,
COMMON AREAS              goods, machines, articles, packaging or obstruction of
                          any kind or nature any of the entrances, lifts,
                          staircases,landings and passages, lobbies or other
                          parts of the Building or in any place which is not
                          hereby exclusively let to the Tenant.

TO OBSERVE           (20) Not to do or suffer any act which shall amount to a
OTHER DEEDS               breach or non-performance or non-observance of any
                          negative or restrictive covenant contained in the
                          Crown Lease or Conditions under which the ground upon
                          which the Building is erected is held from the Crown
                          or of any covenant term or condition contained in the
                          Deed of Mutual Covenant and the Management Agreement
                          (if any) and the House Rules (if any) in respect of
                          the Building.

TO PAY COST OF       (21) To pay to the Landlord on demand all costs incurred by
CLEARING                  the Landlord in cleansing or clearing any of the
DRAINS                    drains, pipes or sanitary or plumbing apparatus
                          choked or stopped up owing to the careless or improper
                          use or neglect by the Tenant or any employee, agent or
                          licensee of the Tenant.

TO PROTECT           (22) To take all reasonable precautions to protect the
PROPERTY                  Property against damage by storm or typhoon or the
                          like.

TO PERMIT            (23) To permit upon reasonable notice at any time during
VIEWING                   the last three months of the Term (howsoever
                          determined) the Landlord and all persons authorised
                          by the Landlord including prospective purchasers and
                          tenants to view the Property without interruption.

TO PAY               (24) To pay all costs charges and expenses (including
LANDLORD'S                any professional fees) incurred by the Landlord in
COSTS                     relation or incidental to:

                          (a) any application by the Tenant for any licence or
                              consent under this Agreement (whether or not the
                              same be granted or refused or proffered subject to
                              any condition), and

                          (b) the recovery or attempted recovery of arrears of
                              rent or other sums due from the Tenant.

NOT TO ALTER         (25) Not to make or cause to make or connive at any
                          alterations structural to the Property and not to put
                          up any partition or other erection or installation or
                          electrical circuit on any part of the Property without
                          the consent in writing of the Landlord. If the
                          Landlord shall give consent to such alteration,
                          partition or erection it shall in any event be
                          subject to:

                          (i)  the condition that the Tenant shall not cause any
                               damage to the Property or any part thereof in
                               addition to such other conditions as the Landlord
                               shall think fit to impose; and

                          (ii) also the condition that the prior approval or
                               consent is obtained from the Building Authority,
<PAGE>   8
                               Fire Services Department, Labour Department or
                               any other relevant authority for such alteration
                               or partition.

NOT TO USE       (26) Not to use or allow to be used the Property or any part
AS DOMESTIC           thereof to prepare any food or as sleeping quarters or
PREMISES              as domestic premises and not to allow any person to
                      remain in the Property overnight except the Tenant's night
                      watchman.

NOT TO EXHIBIT   (27) (a) Not to exhibit or display any signboard, name-plate,
OR DISPLAY                advertisement, or other device whether,illuminated or
SIGNBOARD                 not which shall cause nuisance to other person or
                          trespass upon other people's property on or in the
                          Property.

                      (b) Subject to sub-clause (c) hereinafter following not to
                          put up any signboard other than that of a suitable
                          sign showing the Tenant's trading name and business.

                      (c) Not to affix or put up or display any signboard, sign,
                          decorations or other thing whatsoever outside the
                          Property or any door wall pier or window except with
                          the approval of the Landlord. The Landlord shall have
                          absolute discretion in granting or refusing such
                          approval and any approval to be granted shall be
                          subject to such conditions as the Landlord may think
                          fit. The Tenant shall upon demand of the Landlord
                          remove any signboard, sign or decoration approved to
                          be put up upon the termination of this tenancy
                          agreement. The landlord may remove any such signboard,
                          sign or decoration if the Tenant refuses so to do, in
                          which event, the Tenant shall indemnify the Landlord
                          all loss and expenses thus incurred. The Tenant shall
                          pay the Landlord immediately upon demand the
                          reasonable costs Incurred by the Landlord in affixing
                          repairing or replacing as necessary the Tenant's name
                          in lettering or characters upon the appropriate
                          directory boards in or on the Building. The Landlord
                          shall have the right to remove at the cost and expense
                          of the Tenant any signboard, sign, decoration or thing
                          which shall be affixed put up or displayed without the
                          prior approval of the Landlord.

TO YIELD UP      (28) At the expiration or sooner determination of this
                      Agreement to deliver up to the Landlord vacant possession
                      of the Property in its original state and In good and
                      tenantable state of repair and condition (fair wear and
                      tear excepted) and all the keys of the Property together
                      with any additional fixtures, fittings, erections
                      alterations or improvements which the Tenant may with the
                      consent of the Landlord as aforesaid have made upon or in
                      the Property without payment of any compensation for such
                      additional erections alterations or improvements Provided
                      Always that the Landlord may at the expiration or sooner
                      determination of this Agreement on giving reasonable
                      notice require the Tenant to remove such additional
                      fixtures, fittings, erections, alterations or improvements
                      at the cost and expense of the Tenant.

TO COMPLY        (29) At the Tenant's expense to comply in all respects with the
WITH LAWS             provisions and requirements of the Buildings ordinance,
                      Chapter 123 and the Town Planning ordinance, Chapter 31 or
                      any statutory modification or re-enactment thereof for the
                      time being in force and any regulations or orders made
                      thereunder relating to the use or occupation by the Tenant
                      hereunder and to indemnify (as well after the expiration
                      of the Term by effluxion of time or otherwise as during
                      its continuance) and to keep the Landlord indemnified
                      against all liability whatsoever including costs and
                      expenses in respect of any contravention thereof.

NOT TO OBSTRUCT  (30) Not to block up darken or obstruct or obscure any windows
LIGHT                 or lights belonging to the Property without having
                      obtained the express written consent of the Landlord which
<PAGE>   9
                      consent may be given subject to such conditions as the
                      Landlord may in its absolute discretion impose.

DELIVERY OF      (31) Not to take delivery of furniture equipment fittings or
FURNITURE ETC         bulky items in and out of the Building during the hours
                      specified in the PARTICULARS hereto and under no
                      circumstances to use passenger lifts for goods delivery
                      purposes at any time.

EXCLUSION        (32) Not to hold the Landlord liable in any way to the Tenant
OF LANDLORD'S         or to any person whomsoever in respect of any injury
LIABILITY             damage or lose of business or other liability whatsoever
                      which may be suffered by the Tenant or by any other person
                      or any property howsoever caused and in particular, but
                      without limitation, caused by or through or in any way
                      owing to:

                      (a) any interruption of any of the services herein
                          mentioned by reason of the demolition or rebuilding
                          or refurbishing of the Building or any part thereof
                          the necessary repair or maintenance of any
                          installations or apparatus or damage thereto or
                          destruction thereof by fire water act of God or other
                          cause beyond the Landlord's control or by reasons of
                          mechanical electrical or other defect or breakdown or
                          other inclement conditions or unavoidable shortage of
                          fuel materials water or labour or any cause
                          whatsoever beyond the Landlord's control, or

                      (b) the act neglect or default of the Tenants and
                          occupiers of any other parts of the Building and
                          their employees agents licensees and invitees,

                      (c) any defect in the supply of electricity or from any
                          surge reduction variation interruption or termination
                          in the supply of electrical power, or

                      (d) any typhoon landslide subsidence of the ground escape
                          of fire leakage or water or electric current from the
                          water pipes or electric wiring cables or ducts
                          situate in upon or in any way connected with the
                          Building or any part thereof or dropping or falling
                          of any article object or material whatsoever
                          including cigarette ends, glass or tiles, the escape
                          of water, fire or electricity or vibrations from any
                          floor office or premises forming part of the Building
                          or in the neighbourhood.

                      (e) the defective or damaged condition of the Premises
                          (save and except inherent structural defects) or the
                          Landlord's fixtures therein or any part thereof.

LANDLORD'S         4. The Landlord hereby agrees with the Tenants as follows:-
OBLIGATIONS
TO PAY CROWN          (1) To pay the Crown rent and Property Tax attributable to
RENT                      or payable in respect of the Property.

QUIET ENJOYMENT       (2) That the Tenant paying the Rent as aforesaid and
                          observing and performing the agreements stipulations
                          terms and conditions herein contained and on the
                          Tenant's part to be observed and performed shall
                          peaceably hold and enjoy the Property during the Term
                          without any interruption by the Landlord or any
                          person lawfully claiming under or in trust for the
                          Landlord.

TO REPAIR             (3) To maintain and keep the main structure of the
EXTERIOR                  Property and every part of such main structure in
                          proper and tenantable repair and condition (except
                          the doors and windows) PROVIDED that:
<PAGE>   10
                          (a) The Landlord's liability hereunder shall not be
                              deemed to have arisen unless and until written
                              notice of any want of repair of the same shall
                              have been previously given by the Tenant to the
                              Landlord and the Landlord shall have failed to
                              take steps to repair the same after the lapse of a
                              reasonable time.

                          (b) Notwithstanding anything to the contrary as
                              contained in this clause it shall be the
                              responsibility and liability of the Tenant to
                              repair and make good at its own expense all
                              defects, want of repair and damages caused by the
                              act default neglect or omission of the Tenant and
                              all persons authorized or permitted by the Tenant
                              to use the Property.

                          (c) The Landlord shall not be required to repaint or
                              whitewash any external part of the Property unless
                              required to do so by any Government Authorities or
                              under the Deed of Mutual Covenant relating to the
                              Property.

TO REPAIR             (4) To amend and repair such defects (not attributable to
ROOF ETC                  the act of the Tenant or its invitees licensees
                          servants or agents) to the roof main electricity
                          supply cables main drains and water pipes main walls
                          and exterior window frames of the Building and the
                          lifts and central air-cooling and heating plant
                          therein as the Landlord shall discover or as the
                          Tenant or other authorized person or Authority shall
                          by notice in writing bring to the attention of the
                          Landlord and to maintain the same in a proper state
                          of repair and condition at the cost of the Landlord
                          PROVIDED that the Landlord shall be entitled to be
                          given a reasonable period of time within which to
                          view any such defects and to amend and repair the
                          same and PROVIDED further that the Landlord shall be
                          liable neither to pay compensation to the Tenant in
                          respect of any period during which due to
                          circumstances beyond the control of the Landlord the
                          proper operation of the said lifts central
                          air-cooling and heating plant or any of them shall
                          be interrupted as the result of mechanical failure
                          or need for repair or overhaul nor to grant any
                          abatement of rent or service change in respect of
                          such interruption.

TO SUPPLY             (5) Subject to Clauses 3(32) and 4(4) hereof to provide
AIR-CONDITIONING          and maintain for the Premises a central
                          air-conditioning service during the hours and on the
                          days specified in the PARTICULARS hereto PROVIDED
                          that the electric power for any fan-coil air-cooling
                          and circulating units installed within or exclusively
                          for the use of the Premises shall be connected to the
                          Tenant's electricity supply meter and the Tenant
                          shall pay direct to the supply authority or
                          undertaker for the electric power consumed thereby
                          and provided further that the Tenant shall permit the
                          Landlord and its servants accredited agents or
                          contractors access to the Premises at all reasonable
                          times after due prior notice for the purpose of
                          carrying out necessary maintenance repair or
                          replacement of any air-conditioning plant and
                          equipment installed within the Premises by the
                          Landlord.

OTHER              5. IT IS HEREBY EXPRESSLY AGREED as follows
STIPULATIONS
RE-ENTRY ON           (1) If at any time during the Term:
DEFAULT
                          (a) the rent hereby agreed to be paid or any part
                              thereof shall be unpaid for fourteen days after
                              the same shall become payable (whether legally
                              or formally demanded or not), or
<PAGE>   11
                          (b) the Tenant shall fail or neglect to observe or
                              perform any of the agreements, stipulations
                              terms and conditions herein contained and on the
                              Tenant's part to be observed and performed, or

                          (c) the Tenant (being an individual) shall become
                              bankrupt or (being a corporation) shall go into
                              liquidation whether compulsory or voluntary (save
                              the voluntary liquidation of a solvent company for
                              the purposes of amalgamation or reconstruction) or
                              otherwise become insolvent or make any composition
                              or arrangement with creditors or shall suffer any
                              execution to be levied on the Property or (b) the
                              Tenant shall fail or neglect to observe or perform
                              any of the agreements, stipulations terms and
                              conditions herein contained and on the Tenant's
                              part to be observed and performed, or (c) the
                              Tenant (being an individual) shall become bankrupt
                              or (being a corporation) shall go into liquidation
                              whether compulsory or voluntary (save the
                              voluntary liquidation of a solvent company for the
                              purposes of amalgamation or reconstruction) or
                              otherwise become insolvent or make any composition
                              or arrangement with creditors or shall suffer any
                              execution to be levied on the Property or
                              otherwise on the Tenant's goods, then and in any
                              such case it shall be lawful for the Landlord at
                              any time thereafter to re-enter the Property or
                              any part thereof in the name of the whole
                              whereupon this tenancy shall absolutely cease and
                              determine but without prejudice to any right of
                              action of the Landlord in respect of any
                              outstanding breach or non-observance or
                              non-performance of any of the agreements,
                              stipulations terms and conditions herein contained
                              and on the Tenant's part to be observed and
                              performed to the Landlord's right to deduct all
                              loss damage and proper expense thereby incurred
                              from the Deposit paid by the Tenant in accordance
                              with clause 7 hereof. otherwise on the Tenant's
                              goods, then and in any such case it shall be
                              lawful for the Landlord at any time thereafter to
                              re-enter the Property or any part thereof in the
                              name of the whole whereupon this tenancy shall
                              absolutely cease and determine but without
                              prejudice to any right of action of the Landlord
                              in respect of any outstanding breach or
                              non-observance or non-performance of any of the
                              agreements, stipulations terms and conditions
                              herein contained and on the Tenant's part to be
                              observed and performed to the Landlord's right to
                              deduct all loss damage and proper expense thereby
                              incurred from the Deposit paid by the Tenant in
                              accordance with clause 7 hereof.

INTEREST ON     (2) If the Rent or any other sum payable by the Tenant to the
ARREARS             the Landlord under this Agreement shall not be paid after
                    becoming due the same shall be payable with interest thereon
                    at the rate per annum of 2% above the prime rate for the
                    time being from the date when it was due to the date on
                    which it is actually paid.

NOTICE OF       (3) A written notice served by the Landlord on the Tenant
RE-ENTRY            in manner hereinafter mentioned to the effect that the
                    Landlord thereby exercises the power of re-entry herein
                    contained shall be a full and sufficient exercise of such
                    power without actual physical entry on the part of the
                    Landlord.

NON-WAIVER      (4) Acceptance of rent by the Landlord or any act omission or
<PAGE>   12
                    acquiescence on the part of the Landlord shall not be deemed
                    to operate as a waiver by the Landlord of any right to
                    proceed against the Tenant in respect of any breach non
                    observance or non-performance of the agreements stipulations
                    terms and conditions herein contained and on the Tenant's
                    part to be observed and performed.

LANDLORD NOT    (5) (a) The Landlord shall not be under any liability whatsoever
LIABLE FOR              to the Tenant or any member of the Tenant's family or
DAMAGE                  any servant, licenses, agent, visitor, guest, customer,
                        or invites of the Tenant's, or any person claiming any
                        right title or interest under the Tenants :-

                        (i)  for the payment of any claim for
                             compensationarising out of the operation of this
                             Agreement or any provision hereof; or

                        (ii) for any damage or injury which may be sustained by
                             the Tenant or by any such person or persons as
                             aforesaid on account of the defective or damaged
                             condition of the Property or the Landlord's
                             fixtures therein or any lift or any part thereof
                             and in particular the Landlord shall not be
                             responsible to the Tenant or any person or persons
                             as aforesaid for any damage caused by or through
                             or in anywise owing to any typhoon leakage of
                             water or electric current from the water pipes or
                             electric wiring or cable situated upon or in
                             anyway connected with the Property unless such
                             damage shall result from the breach by the
                             Landlord of one or more obligations hereby Imposed
                             after notice requiring compliance shall have been
                             given and there shall not have been compliance
                             within a reasonable time.

                    (b) For the security or safekeeping of the Property or any
                        contents therein and in particular but without prejudice
                        to the generality of the foregoing the provision the
                        Landlord of watchmen and caretakers or any mechanical or
                        electrical systems of alarm of whatsoever nature if any
                        shall not create any obligation on the part of the
                        Landlord to the security of the Property or any contents
                        therein and the responsibility the safety of the
                        Property or any therein shall at all times rest with the
                        Tenant.

ACTS OF         (6) For the purposes of this Agreement any act, default neglect
TENANT'S AGENTS     or omission of any guest, visitor, servant, agent, licensee
                    or invites of the Tenant shall be deemed to be the act,
                    default, neglect omission of the Tenant.

ARREARS         (7) The rent and air-conditioning and management charges payable
                    in respect of the Property shall be and be deemed to be in
                    arrear if not paid in advance at the times and in manner
                    herein provided for payment thereof.

NOTICES FOR     (8) During the three months immediately preceding the expiration
RE-LETTING          of the Term (or sooner if the rent or any part thereof shall
                    be in arrear and unpaid for upwards of one calendar month)
                    the Landlord shall be at liberty to enter the Property and
                    affix and maintain without interference upon any external
                    part of the Property a notice stating that the Property is
                    to be let or sold and such other information in connection
                    therewith as the Landlord shall reasonably require.

SERVICE OF      (9) Any notice required to be served hereunder shall, if to be
NOTICES             served on the Tenant, be sufficiently served if addressed to
                    the Tenant and sent by prepaid post to or

<PAGE>   13
                         delivered at the Property or the Tenant's last known
                         place of business or residence in Hong Kong and, if
                         to be served on the expiration of 48 hours Landlord
                         shall be sufficiently served if addressed to the
                         Landlord and sent by prepaid post to or delivered at
                         the Landlord's last known place of business or
                         residence in Hong Kong. A notice sent by prepaid post
                         shall be deemed to be given at the date of posting.

COSTS AND STAMP (10) (a) Each party shall bear its own solicitors costs of the
DUTY                     preparation of and incidental to this Agreement.

                     (b) The stamp duty on this Agreement and its counterpart
                         and registration fees (if any) shall be borne by the
                         Landlord and the Tenant in equal shares.

NO WARRANTY     (11)     Nothing in this Agreement or in any consent granted by
OF USER                  the Landlord under this Agreement shall imply or
                         warrant that the Property may be used for the purpose
                         herein authorised (or any purpose subsequently
                         authorised) under any legislations or statutory
                         regulations.

SALE OF         (12)     If after the Tenant has vacated the Property at the
UNCLAIMED                expiration or sooner determination of the Term any
ARTICLES                 effect or article of the Tenant remains in or on the
                         Property, and the Tenant fails to remove it within
                         seven days after being requested by the Landlord so to
                         do, or if after using its best endeavours the Landlord
                         is unable to make such a request to the Tenant within
                         fourteen days from the first attempt so made by the
                         Landlord:

                         (a) the Landlord may as the agent of the Tenant sell
                             or otherwise dispose of such effect or article,
                             provided that the Tenant will indemnify the
                             Landlord against any liability incurred by the
                             Landlord arising out of any such sale or
                             disposition or to any third party whose effect or
                             article shall have been sold by the Landlord in
                             the bona fide mistaken belief (which shall be
                             presumed unless the contrary be proved) that such
                             effect or article belonged to the Tenant and that
                             all costs and expenses of and incidental to any
                             such sale or disposition shall be borne by the
                             Tenant and be first deducted from the proceeds of
                             sale or disposition,

                         (b) if the Landlord having made reasonable efforts is
                             unable to locate the Tenant the Landlord shall be
                             entitled to retain the said proceeds of sale or
                             disposition absolutely unless the Tenant shall
                             claim the same within three months of the date
                             upon which the Tenant vacated the Property, and
                             three months of the date upon which the Tenant
                             vacated the Property, and

                         (c) the Tenant shall indemnify the Landlord against
                             any damage occasioned to the or the Building or
                             any adjacent or neigbouring premises of the
                             Landlord and any actions, claims, proceedings,
                             costs, and demands made against the Landlord
                             caused by or related to the presence of the effect
                             or article in or on the Property.

STATE OF        (13)     The Tenant shall take the Property In its present
PROPERTY                 decorative repair and condition.
KEY MONEY
                (14)     The Tenant hereby expressly declares that it has paid
                         no premium, construction fee, key money or other sum
                         of money of a similar nature to the Landlord or other
<PAGE>   14
                            person or persons authorised by the Landlord for the
                            possession of the Property for the granting of this
                            tenancy.

NEW TENANCY            (15) Any acceptance of rent by the Landlord on or after
                            expiration of the Term shall not create any new
                            tenancy or renewal or extension of the existing
                            tenancy unless written agreement has been signed
                            between the parties hereto to show otherwise.

ABATEMENT OF        6. Should the Property or part thereof be rendered unfit for
RENT                   use and occupation by any cause not attributable the
                       negligence or default of the Tenant, the Rent or part
                       thereof proportionate to the part unfit for use and
                       occupation shall abate and cease to be payable until the
                       Property shall have been again rendered fit for
                       occupation and if already paid shall be refunded the
                       Landlord to the Tenant without interest until the
                       Property shall again be rendered fit for habitation and
                       Use. Provided that nothing herein shall impose on the
                       Landlord any obligation to repair or reinstate the
                       Property or any part thereof and if the Property shall
                       not be repaired or reinstated within a period of three
                       months from the time when the Property shall be rendered
                       unfit for habitation the Tenant or the Landlord may
                       terminate the Agreement in which event the Tenant shall
                       deliver up vacant possession of the Property to the
                       Landlord and notwithstanding any statutory provision to
                       the contrary neither party shall have any claim against
                       the other of them for damages compensation or otherwise
                       apart from rights of action already accrued before such
                       termination of this Agreement.

PAYMENT OF          7. The Tenant shall on the signing hereof pay to and
DEPOSIT                maintain at all times during the Term with the Landlord
                       the Deposit to secure the due observance and performance
REPAYMENT OF           by the Tenant of the agreements stipulations terms and
DEPOSIT                conditions herein contained and on the Tenant's part to
                       be observed and performed. The Deposit shall be retained
                       by the Landlord throughout the Term free of any interest
                       to the Tenant with power for the Landlord, without
                       prejudice to any other right of remedy hereunder to
                       deduct therefrom the amount of any cost expense lose or
                       damage sustained by the Landlord as a result of any
                       non-observance or non performance by the Tenant of any
                       such agreements stipulations terms or conditions.
                       Subject as aforesaid and to clause 8 hereof, the Deposit
                       shall be refunded to the Tenant by the Landlord within
                       fourteen days after the expiration or sooner
                       determination of the Term and the delivery of vacant
                       possession of the Property to the Landlord or within
                       fourteen days of the settlement of the last outstanding
                       claim by the Landlord against the Tenant in respect of
                       any each, non-observance or non-performance of any of
                       the agreements, stipulations terms or conditions and on
                       the part of the Tenant to be observed and performed
                       whichever is the later.

WAIVER OF           8. It is agreed and declared that if at any time during the
CLAIM FOR              Term the Landlord shall assign the Landlord's interest in
DEPOSIT                the reversion immediately expectant upon the Term and
                       if the Landlord shall also transfer to the assignee of
                       the reversion the Deposit or such part thereof as is
                       then held by the Landlord under this Agreement,
                       forthwith upon such transfer of the Deposit or such part
                       thereof as aforesaid and provided that a notice
                       containing particulars of the same shall have been
                       served on and receeipt(s) of the Deposit is issued by
                       the assignee and provided with the Tenant the Landlord
                       shall be absolutely discharged and exonerated from the
                       Landlord's obligation to refund the Deposit to the
                       Tenant contained in clause 7 hereof and the Tenant shall
                       waive all its rights and claims hereunder against the
                       Landlord in respect of the Deposit.
<PAGE>   15
WAIVER OF CLAIM    9.  The Tenant hereby expressly waives its right (if any) to
AGAINST                claim against the Mortgagee for the return of all rental
MORTGAGEE              deposit paid by the Tenant hereunder in the event of the
                       Mortgagee entering into possession of the Property in
                       exercise ofits rights and powers conferred on the
                       Mortgagee by the Charges registered in the Land Registry
                       by Memorials Nos. 3606359, 4343022 and 4823933.

LANDLORD'S         10. Upon the signing of this Agreement the Landlord shall
UNDERTAKING            arrange the clean up work of the air-conditioning units
                       inside the Property to be carried out or procure the
                       same to be completed on or before 14th May 1999 and
                       shall pay the costs of such clean up work.

RENT FREE          11. The Landlord agrees that no Rent or any part thereof
PERIOD                 shall be paid by the Tenant during the Rent Free Period
                       and the Tenant shall only be responsible for payment of
                       the Government Rates, Management Charge and
                       Air-Conditioning charges during the Rent Free Period.

<PAGE>   16
     AS WITNESS  the hands of the parties hereto on the date specified as the
Date of Agreement in the Particulars.

SIGNED  by Mr. CHEN JINSHUI   )
                              )
for and on behalf of the      )
                              )
Landlord in the presence      )
                              )                /s/ Chen Jinshui
of:-                          )                ----------------

s/s Chow Siu Nam
---------------------------

SIGNED  by CHU WAI MAN        )
                              )
for and on behalf of the      )
                              )
Tenant in the presence        )
                              )
of:-                          )                /s/ Chu Wai Man
                                               ---------------

s/s Yip Wai Leung Jerry
---------------------------
<PAGE>   17
RECEIVED on the date stated as     )
the Date of Agreement in the       )
Particulars written of and         )
from the Tenant the sum of         )
HONG KONG DOLLARS NINETY SIX       )
THOUSAND NINE HUNDRED AND          )
FIFTEEN ONLY                       )
             -----------------     )
being the security deposit above   )
expressed to be paid by the        )
Tenant to the Landlord             )                /s/ Chen Jinshui
                                                    ----------------

     WITNESS to the signature:-

     /s/ Chow Siu Nam
     ----------------
<PAGE>   18
                         DATED the 12th day of May 1999

                               CHINASOUND LIMITED

                                       AND

                          SUPPLY CHAIN SERVICES LIMITED

                     **************************************

                                TENANCY AGREEMENT

                     **************************************

                                LIU, CHAN & LAM,

                                   SOLICITORS,

                                    HONG KONG

                           Ref : K-CSN/wl/T-96414-7/99

                           Doc : T-96414

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