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Exhibit 10.11
MOTOR VEHICLE SALES AGREEMENT
1. PARTY A: SUN LOONG
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REGISTER NO.: 274
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2. BANKER:
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ACCOUNT NO.: 836406-87200 1853
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PARTY B: SHENZHEN JINZHENGHUA TRANSPORT INDUSTRIAL DEVELOPMENT CO.,
LTD.
ADDRESS: F3-4 Fu An Building Xxx Xxxx Mao Xxxx Xxx Road, Shenzhen
City, PRC
3. MODEL AND QUANTITY
a) RX type
b) Party B proposed to order 2000 units of RX type in 1998
c) Those motor vehicles purchased by Party B should be used for
the operation of taxi services or rental purpose.
4. PRICING AND PAYMENT TERMS
a) Each RX type motor vehicle cost RMB126,000. An additional cost
of RMB200 for each is required for those of RX type with a
metallic coating. A further cost of RMB1,700 for each is
required for the facilities of centralisation of autodoor.
b) Payment: Party B have to pay 20% of the total cost as down
payment. The remaining balances will be settled by five
installments. Payment schedules are as follows:
End of the first month 10%
End of the third month 10%
End of the sixth month 20%
End of the ninth month 20%
End of the twelfth month 20%
Interest expenses: No interest expense is required for the
first year. Outstanding balances after one year are subjected
to a monthly interest expenses on 1% on unsettled balances.
5. DELIVERY
a) Party A should deliver the ordered quantities of motor
vehicles and all related parts to Party B within ten working
days after the collection of down payment.
b) Time and place of delivery: Party A has to deliver items to
the location specified by Party B within 20 days after the
demand for delivery from Part B.
c) At the time of delivery, both parties have to inspect those
items.
d) If quality problem is found at the time of inspection, Party A
has to repair those items within ten working days. If Party A
cannot fulfill this requirement, new products should be
replaced within fifteen working days.
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e) After the completion of inspection of motor vehicles supplied
by Party A, Party B should sign on the delivery note.
6. RIGHTS AND DUTIES
a) Party A should ensure the quantity supply and the quality of
motor vehicles.
b) Part B should follow the payment schedule to settle the
installment payments and interest expenses (if any).
c) Party B should carry our quality inspection on motor vehicles
at the time of delivery.
d) 10 units of RX-Type motor vehicles will be awarded to Party B
if Party B can settle all outstanding balance according to the
payment schedule. If the ultimate actual quantity purchase is
less than the proposed quantities but over fifty, then Party A
has to award RMB1,600 for each motor purchased. No other
awards will be given to Party B apart from the above two
situations.
e) Party A offers one year warranty or 100,000 miles warranty to
each motor vehicle whichever comes first.
7. BREACH OF DUTIES
a) If Party A breaches point 4.a. and 4.c. Party A has to pay 10%
of contracted price to Party B as compensation.
b) If Party B breaches Point 3, Party B has to pay 0.5% of
contracted price to party A.
8. OTHER
a) The contract will be effective after signed by both parties.
b) Any argument happen may be resolved by mutual agreement or
resolved it in court.
c) There are four copies of the contract, each party keeps
two copies.
