Automobiles Lease Contract


 


Unofficial Summary Translation from
Chinese Language Original Document


 


Lessor:                           LI
Qiang


Lessee:                          Trunkbow
(Asia Pacific) Investment Holdings Limited


 


1.            Details
on the Automobiles Leased and the Scope of Their Use


1.1          Details on the automobiles


Number of automobiles:           4


Make of the automobiles:        Mercedes Benz, Mazda, Buick
and Audi


Model of the automobiles:       Mercedes
Benz Cross Country, Mazda Familia, Buick Sail and Audi A8


1.2          Scope
of use:                           To be used by Lessee and its subsidiaries in business and operational activities


 


2.          Term
of the Lease and Payment Method


2.1         Term of the lease:                             January 1,
2012 to December 31, 2012.


2.2         Fees for the Lease:                           US$ 12,000.00
per month, to be paid semi-annually.


2.3         Security for the automobiles:          At
the time of delivering the automobiles, the Lessor will collect from the Lessee, as security, three-month’s fees for the
lease, namely US$36,000.00.


Within 7 days upon the expiry of the lease,
the Lessor shall return the security or may notify the Lessee prior to the expiry of the lease that such security will be used
to offset the fees for the lease.


2.4           Payment
method for the fees for the lease:


The Lessee shall pay for the next half year’s
fees for the lease before the 15th of the sixth month of the first half of the year; at the time of collecting such
fees, the Lessor must issue invoice with the amount equal to such fees to the Lessee.


The Lessee must make payments for the initial
fees for the lease and for security within 7 days upon the execution of this contract.


 


3.          The
Lessor’s Rights and Obligations


3.1           The
Lessor shall have the right to recall the automobiles leased at any time in any place upon the occurrence of any of the following:


		3.1.1	The Lessee uses such automobiles to engage in illegal or criminal activities.



		3.1.2	The Lessee pledges, subleases, sells, pledges and mortgages such automobiles.



		3.1.3	The Lessee engages in other activities that are harmful to the Lessor’s rights to such automobiles.



		3.1.4	The Lessee delays any amount payable due for more than 7 consecutive days without obtaining the Lessor’s approval.





 



    	 



    	 



    

 


3.1.5       If
the circumstances mentioned above result in any economic loss of the leased automobiles, the Lessee shall be responsible for the
corresponding compensation.


3.2           The
Lessor shall bear no responsibilities to any third party resulting that are generated during the term of the lease.


3.3           The
Lessor shall be entitled to other rights provided by laws and statutes.


3.4           The
automobiles provided must be in usable condition and all the related licenses and permits must be complete and valid.


 


4.           The
Lessee’s Rights and Obligations


4.1           The
Lessee shall have the right to use such automobiles during the term of the lease specified herein.


4.2           The
Lessee shall be responsible for the repair and maintenance on such automobiles during the term of the lease; however the Lessee
shall have no obligation to repair any damage to such automobiles that has occurred prior to the term of the lease.


4.3           The
Lessee shall pay the fees for the lease in full and on time.


4.4           The
Lessee shall be responsible for insurance, fuel and toll fees on such automobiles during the term of the lease.


4.5           The
Lessee must comply with all state laws and regulations and must be responsible for all liabilities and economic losses resulting
from violations of such laws and regulations or accidents during the term of the lease.


4.6           The
Lessee must assist the Lessor during the term of the lease in handling damage inspection and claims.


 


5.           Provisions
Regarding Insurance


5.1           The
Lessee must report to the Lessor any accident within 24 hours of its occurrence; if the leased automobiles are stolen, scraped
or otherwise totaled, the Lessee shall be responsible for 40% of the fees for the lease and the deductible portion of the insurance
starting from the date of any such automobile is totaled until the Lessor receives the compensation from the insurance company.


5.2           The
Lessee shall be responsible for all losses and the corresponding fees as the result of the refusal by the insurance to pay compensation
due to any reason on the part of the Lessee.


 


6.          Liabilities
for Breach


             6.1             If either party’s violation of the provisions
herein renders it impossible to perform this contract completely, the party in breach must compensate for the resulting economic
loss suffered by the other party; major policy change and Force Majeure excepted.


             6.2             The Lessee must return the automobiles leased at
the time of return specified herein; for each day of delay, the Lessee must pay default penalty in the amount of 1% of the monthly
fees for the lease in addition to the fees for the lease.


             6.3            The “economic loss” referred to herein
include loss of fees for the lease; the rate of compensation for the loss of fees for the lease will be calculated at the standard
rate.


 



    	 



    	 



    

 


7.           Changes
to and Dissolution of the Contract


No change to or dissolution of the contract
shall be valid, unless it is agreed to in an executed agreement by both parties hereto.


 


8.            Resolution
of Dispute


All disputes arising from this contract
must be resolved through friendly consultation between the two parties.


 


Lessor:           /s/          LI
Qiang


Lessee:            /seal/    Trunkbow
(Asia Pacific) Investment Holdings Limited


 


Date of Execution:       [Not
dated]