Land Lease Contract
Exhibit
10.17
Lessor:
Shandong Weibei Farm (hereinafter referred to as “Party A”)
Lessee:
Weifang Yuhe Poultry Co., Ltd (hereinafter referred to as “Party
B”)
Based
on
equality, mutual benefit and compensated use, Shandong Weibei Farm (“Party A”)
and Weifang Yuhe Poultry Co., Ltd (“Party B”) entered into this contract with
regard to matters related to Party B leasing land from Party A.
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I.
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Area
and location of the leased land: It is agreed by the two parties
that
Party B will lease from Party A land located in NO.7 Farm of three
strip
checks of No.7,and east strip checks of No. 6 。
.
The gross area is 270 mu (See the map at the end of this
contact).
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II.
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Purpose
for the leased land: poultry raising .
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III.
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Terms:
The terms of this contract is 20 years, from June 25 th
,
2005 to June 24 th
,
2025.
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IV.
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The
calculation and payment of the rents: Party B should pay Party A
yearly-based rent of 000 XXX per mu, and the overall rents for twenty
years are 2,700,000RMB. Party B should pay Party A the overall rents
of
the first 10 years at one time, the other 10 years’ rents should be paid
in deferred cheque (The cheque should be encashed before October
in
2005).
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V.
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Rights
and Responsibilities of the two parties
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1,
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Rights
and Responsibilities of Party A
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1.1,
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Party
A holds the ownership of the leased land and the trees and other
materials
located on the land.
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1.2,
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Party
A is shall provide Party B the land for usage, and shall get back
the
lands at the time of expiration.
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1.3,
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Party
A is only responsible for the land , Party B is responsible for other
investments, fees and relevant procedures.
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1.4,
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Party
A has right to monitor the usage of the land and the execution of
the
contract. If Party B breaches the contract, Party A has right to
revoke
this contract.
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2,
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rights
and responsibilities of Party B
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2.1,
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Party
B has the right to invest, operate on the land as agreed upon in
this
contract, and is responsible for all the result of
operations.
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2.2,
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During
the terms of this contract, Party B has the right to use the land
, not to
pledge, transfer, or relet, otherwise, Party B is responsible for
all the
loss occurred.
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2.3,
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During
the terms of this contract, Party B shall not relet the land to
others.
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2.4,
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During
the terms of this contract, Party B shall not destroy the quality
of the
soil and the trees on the leased land and within the boundaries of
the
land, otherwise, Party A has the right to stop Party B’s actions,
terminate the contract, and to claim for
indemnification.
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The
poultry production of Parties B shall comply with the state safe
, healthy
and disease-resistance requirements and should not destroy the atmosphere
and groundwater and other environment resources ;the waste water,
exhaust,
scrap etc. must be reasonably and safely dealt with. If serious infectious
diseases outbreaks, Party B should undertake disease resistance projects
in accordance with governmental requirements.
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2.6,
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The
operation activities of Party B shall comply with relevant laws,
and the
regulations of Weibei Farm, otherwise, Party B shall be responsible
for
the losses caused by illegal actions.
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2.7,
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Party
B shall comply with the laws, rules and regulations of safe operation,
and
relevant operating procedure and standards; Party B shall be responsible
for the loss caused by operation accidents.
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VI.
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Conventional
items
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1,
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After
commencement of this contract, in the case that Party B unilaterally
revoke this contract, Party A may not return the rents
paid.
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2,
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In
the event of great changes on government policies, or significant
adjustment on prisoners and economic structure of prison, Party A
has the
right to terminate this contract with a 30 days notice, and Party
A shall
return the relevant fees(the rents of the leased land
only).
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3,
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In
the event that the leased land may be commandeered by government,
Party B
shall receive compensations for the newly-built buildings from government
,while Party A shall receive compensations for the land from
government.
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4,
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Upon
the expiration of the lease term, Party B has the preferential right
to
lease the land. If Party B continues to lease, a renewal contract
is
need.
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5,
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Upon
the termination of this contract, Party B should in one month’s time
dispose of the operating facilities and recover the land to cultivatable,
otherwise, Party A shall has the right to dismantle the facilities
and
reclaim on the land , the fees for which shall be paid by Party
B.
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6,
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Party
B shall not fell ,destroy or direct the others to fell, destroy the
trees
on and around the leased land, to ensure the trees all in good condition
when returning the land. Without the consent of Party A, Party B
shall not
fell the trees for the construction of hen houses, and Party A has
the
ownership the trees. Otherwise, during the terms of the contract,
Party A
has the right to claim for indemnification, if the trees are felled
or
unnaturally died.
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VII.
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Responsibilities
for the breaches of this contract
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If
breaches of this contract exist, the party in breach shall indemnify the losses
to the other party.
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VIII.
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Settlement
of Disputes
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Any
dispute arising out of performance under this Agreement shall be settled through
friendly negotiations by both Parties. In the event that negotiations should
fail to settle the dispute, either party shall submit the dispute to the Court
of Hanting District.
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IX.
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The
uncovered matter of this contract shall produce an additional agreement,
or shall be executed according to the relevant laws, regulations,
or
policies of the government.
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X.
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This
contract shall come into effect after the signature by both Parties'
representatives. This contract is made out in three original copies,
with
two to be held respectively by each party ,the third to be officially
filed.
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Party
A:
Shandong Weibei Farm
Representatives’
signature:
Party
B:
Weifang Yuhe Poultry Co., Ltd
Representatives’
signature: Gao Zhentao
Date:
June 25 th
,
2005
