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Exhibit 10.4
TENANCY AGREEMENT
THE LANDLORD: WARMATE INDUSTRIAL LTD
RM 1501 KAM FAI HONG,
53-59 MO WU ST, HUNGHOM
KOWLOON
TEL: 2764 9487
BUSINESS REGISTRATION NO: 12288690
THE TENANT: EURO TECH (CHINA) LTD
18/F GEE CHANG HONG CENTRE
65 WONG CHUK HANG RD
HONG KONG
TEL: 2814 031
BUSINESS REGISTRATION NO: 17921699
1) The Landlord lets and the Tenant takes Rm 2606 South Tower, Guangzhou World
Trade Center, 371-375 Huan She East Rd, Guangzhou, P.R. China as Office Use.
The Tenancy period is for a fixed term of 1 year starting from 15 Apr 1995
and the option of another year till 14 Apr 1997.
2) The monthly rent is HK$13,800.- payable in cash to the Hong Kong bank
account of the Landlord. The Landlord's bank account number is:
01469400017139 (Yien Yip Bank, Hunghom Branch), Account name is: Warmate
Industrial Ltd. Deposit receipt must be faxed to the Landlord as proof.
3) Method of rent payment and date: The tenant shall pay the difference of the
2 month deposit i.e. HK$5,600.- to the landlord on the date of signing this
Tenancy Agreement. The landlord have also to pay HK$1,000.- as The tenant
shall pay the monthly rent on or before 15th of the current month and a
receipt must be given by the Landlord. Upon completion of the Tenancy
Agreement, the tenant have settled all outstanding rent and other expenses
(if any), the landlord shall refund the deposit to the tenant, however if
the tenant have breach the Tenancy Agreement and have caused damages to the
landlord, the landlord have the right to deduct such damages from the
deposit.
4) If the Landlord refused to receive the rent which is paid by the tenant
according to this Tenancy Agreement. The Tenant can go to the Guangzhou
Public Notary for proof of "Refuse to receive the rent", and the Tenant
shall not be responsible for Late payment of the rent.
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5) Both the Tenant and the landlord are not allowed to find excuses of
terminating this Tenancy Agreement during the Tenancy Period. However, if
the Landlord really in need of the Property for own use, they need to send a
written notice to the tenant 2 months ahead or pay to the tenant the
compensation of 2 month rental fee in lieu of notice.
6) During the tenancy period, the repair & maintenance of the property,
property tax and the expenses incurred for the use of the land and other
expenses which belong to the landlord will be borne by the landlord. The
tenant shall pay for the monthly maintenance fee, telephone fee, clearing
fee, electricity and water fee & other indoor maintenance fee. Upon
completion or termination of the Tenancy Agreement, and the tenant's proof
of all above fees have been settled, the landlord shall return to the tenant
the deposit (without interest) of the management fee, electricity fee & etc.
The landlord have the right to deduct any outstanding fee or unpaid amount
from the deposit.
7) During the tenancy period, the tenant will be responsible for the
maintenance, restoration or compensation to the landlord should there be any
damages to the premises that is caused by the tenant.
8) The tenant shall not allowed to change the structure and the use of the
premises; the storage of prohibited, explosive & combustible substances. The
tenant shall obey the laws of The People Republic Of China and Guangzhou
City, obey the the ethics of the socialism. The tenant shall not make or
permit to make any alterations or additions to the said premises without the
consent of the landlord. Such alternation shall be restored upon request of
the landlord on completion of the Tenancy Agreement.
9) The tenancy agreement will be terminated automatically should there be
irresistible natural disasters which cause damages to the premises. Neither
the tenant nor the landlord shall be responsible for the consequences. In
the case of great damages in the premises and the landlord refuse to
repair, the tenant can terminate the tenancy agreement or have the damages
be repaired and the repair cost will be treated as rental fee.
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10) During the tenancy period, the landlord shall inform the tenant by
registered mail if the tenant failed to hand in the rental fee on time. If
the tenant did not pay the rent for one month or over, or the management,
electricity fee for two months or over will be treated as breach of
contract, and the tenancy agreement will be terminated automatically. The
landlord have the right to take back the premises without the consent of the
tenant.
11) Due to the breach of the contract of the tenant, the landlord have the right
to take back the premises and duly inform the management office of the
building. If the tenant did not hand over the door key to the landlord, the
landlord have the right to enter the premises together with the building's
management office staff. The landlord have the right to have the substances
left in the premises to auction and the revenue received from the auction
shall be treated as payment for the outstanding rent and the related
expenses. The surplus, if any, shall return to the tenant. The tenant shall
accept the above arrangement and no objection shall be entertained should he
failed to fulfil the Tenancy Agreement.
12) If the amount of the revenue come from the auction cannot cover the cost of
the outstanding rent, the management fee and the related expenses, the
landlord have the right to claim the tenant until all expenses incurred are
settled.
13) Upon completion/termination of the Tenancy Agreement, the tenant shall
remove all furnitures/substances out of the premises promptly. The
substances shall be treated as abandon if they are still kept in the
premises 5 days after the removal. The landlord have the right to dispose
the said substances with the witness of the management office staff.
14) Upon completion of the Tenancy Agreement, the tenant have the priority to
rent the premises from the landlord and the rental fee will be negotiated.
15) Should argument occured, the tenant and the landlord shall adopt a friendly
way to resolve the problem or to approach the Guangzhou Notary / Middle
People Court for juridical action.
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16) This Tenancy Agreement is printed and signed. It shall be effect from
the date of signing.
17) This Tenancy Agreement contains 1 set in two pages, two copies. Each of
the tenant and the landlord keep one and both copies are valid.
WARMATE INDUSTRIAL LTD EURO TECH (CHINA) LTD
SIGNED SIGNED
DATED : 17 MAR 1996