EXHIBIT 10.4
A Translation from Chinese Language
PROPERTY LEASING AGREEMENT
Tenant: Shanghai Donghuan Auto Parts Co., Ltd. ("Party A")
Lessor: Oriental Automotive Parts Development (China) Co., Ltd. ('Party B")
Party B owns the first floor of the commercial building located on 1926 Cao
An Road, (the "Property"). Party A is a company engaged in the business of
sales of auto parts. By their amity, Party A and Party B reaches an agreement
as follows:
1. Party B agrees to lease the Property to Party A. The total area of the
Property is 1,455.99 square meters.
2. The Property shall be used only for sales auto parts and other related
businesses.
3. Lease term shall be 3 years, from February 20, 2003 to February 19, 2006.
4. Rent and Security Deposit: Rent shall be RMB 7.00 per square meter per
day. The total amount of annual rent shall be RMB 3,720,054.45 for the first
year of the lease, and thereafter, 2% of annual increase. Security deposit
shall be RMB 200,000.
5. The security deposit of RMB 200,000 shall be paid within 3 days of
signing this agreement. The rent is payable each quarter on or before 25th
day of the first month of the quarter. The security deposit shall be returned
at the date of the expiration of this agreement, if the property is returned
without any damages.
6. Party A's Rights and Obligations:
(1) During the lease period, Party A shall have the right to use the
Property. However, Party A may not alter the property to uses of operations
other than sales of auto parts and related businesses. Any setting up,
taking to set up or changing piping circuit, house facilities etc. without
prior authorization of Party B are permitted. Otherwise, Party A shall be
responsible for any losses and damages on the Property.
(2) During the lease period, Party A shall obey all the laws and
regulations in its business operations. The property can not be used for
any unlawful operations.
(3) Party A shall pay rent, property management fee and other related
expenses on time.
(4) Party A shall obey all laws, rules and regulations of doing business
in China, and shall be responsible for all environmental, firefighting, and
security on the Property.
7. Party B's Rights and Obligations:
(1) Party B shall have the rights to monitor the use of the Property
leased to Party A.
(2) Party B shall deliver the Property to Party A 10 days prior to the
date of the Lease starts.
(3) Party B shall be responsible for keeping the Property in good
condition, guaranteeing Party A's normal usage.
(4) Party B shall make its best efforts to assist the Party A doing
business, and helping Party A to get services such as business registration,
governmental incentive tax matters, insurance, legal matters, etc.
(5) Party A shall have the right to renew this agreement under the
equal terms which Party B may enter into with third parties. The renew
notice has to be received by Party B 30 days prior to the expiration date
of this agreement.
8. Disagreements:
(1) If there are disagreements, the parties shall discuss the
disagreements first. If no agreement can be reached, each party may apply
for arbitration according to the principles that has been reached prior to
or after the event; if an arbitration agreement can be reached, each parties
may file legal action to that court that is located in the business place
of Party B.
(2) This agreement shall have four copies, of which two for each party.
This Agreement becomes effective upon the signing by both parties.
Shanghai Donghuan Auto Parts Co., Ltd. (Party A)
Corporate Seal
/s/Xxxx xxxxxxx
-----------------------
Xxxx Xxxxxxx
Oriental Automotive Parts Development (China) Co., Ltd. (Party B)
Corporate Seal
/s/ Xxxx xxxxxxx
-----------------------
Xxxx Xxxxxxx
Date: February 20, 2003
