Document:

Exhibit 10.16

 

Registered Trademark Sub-license Agreement

 

Sub-licensor:
Beijing Anhui Wanxing Science & Technology Co., Ltd. (Party A)

 

Sub-licensee:  Beijing Tuozhan Industrial & Trading
Development Co., Ltd. (Party B)

 

In
accordance with the relevant provisions of the Trademark Law of the People’s
Republic of China (“PRC”) and the Implementing Rules of the Trademark Law of
the PRC, Party A and Party B, after mutual friendly negotiation, agree to the
sub-license of certain registered trademarks, and executed the Registered
Trademark Sub-license Agreement (this “Agreement”) on July 1, 2010 at the
conference room of Beijing Anhui Wanxing Science & Technology Co., Ltd.,
the terms of which are as follows:

 

Article
1 Trademarks Sub-licensed by Party A to Party B

 

Party
A is the exclusive licensee of the registered trademark “Lentuo” (the “Registered
Trademark”), the registration number of which is 3316554, and the detailed
information related to the Registered Trademark is as follows:

 

1.1
Name and Address of the Owner of the Registered Trademark

 

The
owner of the Registered Trademark is Hetong Guo, whose address is 501, Unit 6
Building 1, Luxin Block, Tanzhesi Town, Mentougou District, Beijing.

 

1.2
the Registered Trademark

 

1.3
Sub-license of the Registered Trademark

 

1.3.1
Type of Services the Registered Trademark
Sub-licensed to be Used in

 

Party
A agrees to sub-license Party B to use the Registered Trademark in the type of
services described under the Registered Trademark Certificate of the Registered
Trademark, i.e. class 37, which shall include the motor vehicle maintenance and
repair, car wash (small), service stations (vehicle -), vehicle repair, vehicle
maintenance, vehicle wash (cleaning), vehicle gas station.

 

1.3.2
Territory

 

Party
A grants Party B a sub-license to use the Registered Trademark in all the areas
within the PRC.

 

1.3.3
Nature of the Sub-license

 

The
sub-license to use the Registered Trademark granted by Party A to Party B
hereunder shall be non-exclusive.

 

1

 

Article
2 Term of Sub-license

 

The
term of the sub-license granted hereunder shall be from the date hereof to
August 20, 2014.  Subject to the
successful extension of the Registered Trademark, the
term of this Agreement shall be automatically extended the same period as the
valid term of the Registered Trademark.

 

Article
3 Royalties

 

Party B shall pay royalties to Party A for its use
of the Registered Trademark on an annual basis, which shall be 1-5% of its
revenue (or on a pro rata basis if the actual use of the sub-license is less
than one year).

 

Any adjustment of the royalties shall be separately
agreed by Party A and Party B in writing.

 

Party B shall remit the royalties to the bank
account designated by Party B by wire transfer prior to December 31 of each
calendar year.

 

Article
4 Filing of this Agreement with Competent Governmental Authority

 

Party
A and Party B shall jointly conduct the formalities required for the filing of
this Agreement with the competent governmental authority at the cost of Party B.  The
filing of this Agreement shall not affect the effectiveness of this Agreement.

 

Article 5 Use of the Registered Trademark

 

Party
B shall not change the words, figure or the combination of both of the
Registered Trademark without Party A’s consent, and shall not use the
Registered Trademark in any services other than those agreed by both parties.

 

Article
6 Sublicense of the Registered Trademark

 

Party B shall not sublicense the Registered
Trademark to any third party.

 

Article
7 Warranty on Service Quality

 

In
order to ensure that the quality of the relevant services to be provided by Party B meets the requirements of Party A and the owner of the Registered Trademark, the parties
shall jointly take the following measures:

 

1.
Party A and the owner of the Registered Trademark may supervise
the services provided by Party B and inspect the services and quality of the
services provided by Party B;

 

2.
Party B shall deliver the standard or internal policy regarding the services to
be provided by it to Party A and the owner of
the Registered Trademark for their review and
consent;

 

3.
Party A and Party B shall assume the liability to keep in confidence the
information related to the production and operation of the parties.

 

Article
8 Extension of the Registered Trademark

 

Party
A shall procure the owner of the Registered
Trademark to conduct the formalities related to the extension of the Registered
Trademark and any other formalities required to guarantee the validity of the
Registered Trademark.

 

2

 

Article
9 Liability for Breach of Agreement

 

Party
A or Party B shall compensate the other party for any losses or damages
sustained by the other party resulted from any violation by Party A or Party B
of its obligations hereunder.

 

Article
10 Dissolution and Termination

 

1.
This Agreement may be terminated prior to the
expiration of the term upon mutual agreement between Party A and Party B in
writing.

 

2.
Termination by Party A

 

During
the term of this Agreement, Party A undertakes unconditionally and irrevocably
that it may not terminate this Agreement at its sole discretion except in the
event of the following events:

 

(1)
Party B fails to pay the royalties on a timely basis and fails to pay such
royalties within three months after Party A notifies of Party B with respect
thereto;

 

(2)
the services provide by Party B under the Registered Trademark fail to meet the
required requirements, which materially affects the reputation of the Registered
Trademark, and Party B fails to rectify after being warned by Party A.

 

3.
If Party A assigns the Registered Trademark to a third party during the term of
this Agreement, such assignment shall not affect the performance of this
Agreement; provided that it shall require the prior written consent of Party
B.  Party B shall be entitled to
immediately terminate this Agreement if the ownership to the Registered
Trademark of the owner is cancelled by the State Trademark Office due to
reasons attributable to the owner of the Registered Trademark.

 

4.
Party A and Party B shall inform the State Trademark Office within one month
following the termination of this Agreement.

 

Article
11 Governing Law and Dispute Resolution

 

The
conclusion, performance and interpretation of this Agreement shall be governed
by the PRC law.  Any dispute arising out
of the performance of this Agreement shall first be resolved through friendly
negotiation between the two parties.  If
the parties fail to reach any agreement within one month following the
occurrence of such dispute, either party may file a lawsuit to the competent
court.

 

Article
12 Effectiveness

 

This
Agreement shall come into effectiveness upon being executed by Party A and
Party B and affixing of the corporate seals of each party.  This Agreement shall be executed in three
counterparts, with each of Party A and Party B to hold one and one to be file
with the State Trademark Office.

 

3

 

	
  Party
  A: Beijing Anhui Wanxing Science & Technology Co., Ltd.

  	
   

  	
  Party B: Beijing Tuozhan Industrial
  & Trading Development Co., Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed
  by the legal representative:

  	
   

  	
  Signed
  by the legal representative:

  
	
   

  	
   

  	
   

  
	
  Corporate
  Seal of Party A:

  	
   

  	
  Corporate
  Seal of Party B:

  

 

4

 

Appendix 1 Copy of the Trademark Registration Certificate

 

5

 

Schedule

 

Beijing Anhui Wanxing Science & Technology Co.,
Ltd. also entered into similar Registered Trademark Sub-license Agreements with
other affiliated entities
with respect to the use of the “Lentuo” trademark in the same category of goods
and services as in this Registered Trademark Sub-license Agreement.  In addition, Beijing Anhui Wanxing Science
& Technology Co., Ltd. also entered into similar Registered Trademark Sub-license
Agreements with all the affiliated entities with respect to the use of the “Lentuo” trademark in other categories
of goods and services (as so permitted under relevant trademark certificates).  All such agreements are substantially
identical in all material respects to the one in this exhibit (except for the
concerned affiliated entities and the concerned categories of goods and
services) and thus are omitted from this exhibit pursuant to Instruction 2 to
Item 601 of Regulation S-K.

 

Set forth below is a list of such other categories
of goods and services for which the registered trademark is permitted to be used:

 

1.          Class 35, Registration Number 3316552 (organizing exhibitions for
commercial or advertising purposes; hotel management; sales promotion services
for others persons; import-export agencies; organizing trade fairs for
commercial or advertising purposes; organizing trade fairs for commercial or
advertising purposes; advertising agencies; advertising design;
advertisement plan; and public relations)

 

2.          Class 36, Registration Number 3316551 (installment payment services)

 

3.          Class 39, Registration Number 3316553 (on road emergency assistance
services; transportation brokerage services; emergency transportation services;
vehicle rental services; coach rental services and chauffeuring services)

 

Set forth below is a list of the other affiliated
entities who also entered into similar Registered Trademark Sub-license
Agreements:

 

1.          Beijing Aotong Automobile Trading Co., Ltd.

 

2.          Beijing Lentuo Chengxin Commercial & Trading Co., Ltd.

 

3.          Beijing Yuantongqiao Toyota Automobile Trading Co., Ltd.

 

4.          Beijing Tuojiacheng Commercial & Trading Co., Ltd.

 

5.          Beijing Lentuo Huitong Automobile Sales Service Co., Ltd.

 

6.          Beijing Tuozhan Automobile Repair Co., Ltd.

 

7.          Beijing Lentuo Automobile Leasing Co., Ltd

 

6Exhibit 10.17

 

Land Sublease Contract

 

Lessor:
Beijing Ruitong Yulong Investment Co., Ltd. (“Party A”)

 

Address:
88 Guanyintang Village (Jinsong East Extension Road) Wansiying, Chaoyang
District, Beijing

 

Lessee: Beijing Tuozhan Industrial & Trading Development Co.,
Ltd. (“Party B”)

 

Address:
No.292, Zhangjiaxiang, Shibalidian County, Chaoyang
District, Beijing

 

In
accordance with the Contract Law of the People’s Republic of China (“PRC”) and
other applicable laws and regulations and based on equality, willingness,
fairness and good faith, Party A and Party B agree to enter into this Land
Sublease Contract (this “Contract”) to set forth their agreement in respect of
the sublease of the land by Party A to Party B.

 

Article
1 Subleased Land

 

The
land (the “Land”) proposed to be subleased to Party B with the area of 1,040 square meters is located at the south of Jieguo
Factory, Hengjiezi, Shibalidian County, Chaoyang Distrcit, Beijing,
the specific area of which shall be determined in accordance with the four boundary
map agreed by both parties.

 

Article
2 Purpose of the Land

 

Party
A agrees to sublease the Land to Party B for it to use the same for the purpose
of construction, and the construction project shall be determined at the sole
discretion of Party B.

 

Article
3 Sublease Term

 

3.1
The term of the sublease shall be 18 years and six months, which shall commence from December 1, 2009 and end on May 31, 2028.  This Contract shall be signed once a year and
the rent shall be negotiated once a year.

 

3.2
If, upon the expiration of the sublease term, Party B is willing to extend the
Contract, it shall have the right of first refusal under the same terms and
conditions.

 

Article
4 Rent and Payment

 

Party
B shall pay the rent for the Land on an annual basis, the amount of which shall
be RMB three hundreds thousands (RMB 300,000).  The rent for the next
year shall be paid within one month prior to the beginning of the next year.

 

1

 

Article
5 Party A’s Representations and Warranties

 

 Party A hereby represents and warrants to
Party B that

 

(1)
it is an independent legal person established and existing under the laws of
the PRC;

 

(2)
it has all the rights, authority and approvals required for the execution of
and full performance of its obligations under this Contract;

 

(3)
it has obtained all the consents, approvals and authorization required for the
duly execution of this Contract;

 

(4)
it has obtained all the rights, authority and approvals required for the
sublease of the Land to Party B, and Party B’s business operation will not be
affected due to any flaws in the rights to the Land.

 

Article
6 Party B’s Representations and Warranties

 

 Party B hereby represents and warrants to
Party B that

 

(1)
it is an independent legal person established and existing under the laws of
the PRC;

 

(2)
it has all the rights, authority and approvals required for the execution of
and full performance of its obligations under this Contract;

 

(3)
it has obtained all the consents, approvals and authorization required for the
duly execution of this Contract.

 

Article
7 Party A’s Rights and Obligations

 

7.1
Party A shall have the right to receive rents from Party B in accordance with
the provisions of this Contract.

 

7.2
During the term of the sublease agreed hereunder, Party A shall not sublease
the Land to any third party without the prior written consent of Party B.

 

7.3
Party A shall be responsible to coordinate the supply of water, electricity,
heating and any other resources in connection with the Land required for the
operation of Party B.

 

Article
8 Party B’s Rights and Obligations

 

8.1
Party B shall have the right to request Party A to timely deliver the Land.

 

8.2
Party B shall have the right to construct on the Land buildings and facilities
required for its business operation and the title to such buildings and
facilities shall be vested in Party B.

 

8.3
Party B shall use the Land for the business operations permitted by the
applicable laws.

 

8.4
Party B shall pay the rent hereunder on a timely basis in accordance with the
provisions of this Contract.

 

8.5
All the fees in relation to the supply of water, electricity, gas and heating
during the term of sublease shall be burdened by Party B.

 

8.6
Party B shall be responsible for the repair and maintenance of the buildings
and facilities on the Land at its own costs.

 

2

 

Article
9 Sublease

 

During
the term of this Contract, Party B shall not sublease the Land to any third
party without the prior written consent of Party A.  In the event of any sublease of the Land by
Party B to any third party, this Contract shall continue to be effective with
respect to both Party A and Party B.  If
Party B fails to perform its obligations hereunder due to reasons of any third
party, Party B shall assume the corresponding liabilities to Party A.

 

Article
10 Tax

 

Party
A and Party B shall pay their own taxes payable hereunder in accordance with
the applicable laws and regulations.

 

Article
Liabilities for Breach of Contract

 

11.1
Party A shall compensate Party B for any losses and damages arising out of the
(i) invalidity of this Contract due to breaches by Party A of all or portion of
its representations and warranties under Article 5 or (ii) any early
termination of this Contract due to reasons other than those provided in
Article 12, which shall include, but not limited to, the following:

 

(1)
to lease a land legally owned by it with the same area and location as the Land
to Party B to ensure the continuous operation of Party B;

 

(2)
to compensate Party B for any losses in connection with the buildings and
structures on the Land at the book value of the same;

 

(3)
to compensate Party B for any other direct or indirect losses and damages
arising out of the breach by Party A of its representations and warranties.

 

Article
12 Termination

 

12.1
If the parties hereto do not intend to extend the Contract, this Contract shall
terminate upon the expiry of the term hereof.

 

12.2
Party A and Party B may terminate this Contract upon mutual agreement prior to
the expiry of the term hereof.

 

12.3
Party A shall be entitled to terminate this Contract in the event of any of the
following events:

 

(1)
Party B subleases the Land to a third party without the prior written consent
of Party A;

 

(2)
Party B fails to timely pay the rent hereunder in accordance with the
provisions of this Contract and fails to pay the rent within the required
period after Party A notifies Party B.

 

Article
13 Dispute Resolution

 

Any
dispute arising out of or in connection with this Contract shall be resolved
through friendly negotiation between Party A and Party B.  If the parties fail to resolve the disputes
through negotiation within sixty (60) days following the commencement of the
negotiation, either party may file a lawsuit to the competent court.

 

3

 

Article
14 Governing Law

 

The
conclusion, effectiveness, interpretation and performance of this Contract and
any dispute arising hereunder shall be governed by the PRC laws.

 

Article
15 Amendment

 

This
Contract may not be amended unless with written agreement between both Party A
and Party B.

 

Article
16 Execution and Effectiveness

 

This
Contract shall be executed in Chinese in two counterparts, with each of Party A
and Party B to hold one.

 

This
Contract shall come into effect after being signed by the legal representatives
and affixed with the corporate seals of Party A and Party B.

 

	
  Party
  A:

  	
   

  	
  Party
  B:

  
	
   

  	
   

  	
   

  
	
  Beijing
  Ruitong Yulong Investment Co., Ltd.

  	
   

  	
  Beijing Tuozhan Industrial &
  Trading Development Co., Ltd.

  
	
   

  	
   

  	
   

  
	
  Authorized
  representative:

  	
   

  	
  Authorized
  representative:

  
	
   

  	
   

  	
   

  
	
  Corporate
  seal of Party A:

  	
   

  	
  Corporate
  seal of Party A:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated
  December 1, 2009

  	
   

  	
  Dated
  December 1, 2009

  

 

4

 

Schedule

 

Certain other affiliated entities of Lentuo
International Inc. also entered into similar Land Sublease Contracts with
Beijing Ruitong Yulong Investment & Development Co., Ltd.  Such subleases are substantially identical in
all material respects to the one in this exhibit (except for the concerned
affiliate entities, sizes and locations of relevant land, the sublease’ rents
and terms) and thus are omitted from this exhibit pursuant to Instruction 2 to
Item 601 of Regulation S-K.  Set forth
below is a list of such other subleases with a summary of some of their key
terms:

 

1.          Sublease with Tuozhan Industrial & Trade Development Co., Ltd.  The term of the sublease is 18 years and six
months, starting from December 1, 2009 and ending on May 31, 2028.  The rent is RMB300,000 per year subject to
annual adjustments.

 

2.          Sublease with Lentuo Huitong Automobile Sales Service Co., Ltd.  The term of the sublease is 12 years and
three months, starting from December 1, 2009 and ending on February 28,
2022.  The rent is RMB750,000 per year
subject to annual adjustments.

 

3.          Sublease with Yuantongqiao Toyota Automobile Trading Co., Ltd.  The term of the sublease is 20 years and one
month, starting from December 1, 2009 and ending on December 31, 2029.  The rent is RMB805,000 per year subject to
annual adjustments.

 

4.          Sublease with Tuojiacheng Commercial & Trading Co., Ltd.  The term of the sublease is 12 years and three
months, starting from December 1, 2009 and ending on February 28, 2022.  The rent is RMB700,000 per year subject to
annual adjustments.

 

5.          Sublease with Tuozhan Automobile Repair Co., Ltd.  The term of the sublease is 18 years and six
months, starting from December 1, 2009 and ending on May 31, 2028.  The rent is RMB400,000 per year, subject to
annual adjustments.

 

5

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