Translation of Tenancy Agreement
Exhibit
99.2
Translation
of Tenancy Agreement
Lessor: Weifang
Yuhe Poultry Co., Ltd.
Address:
Tenant: Shandong
Nongbiao Purina Feed Co., Ltd.
Address:
WHEREAS
1. The
Lessor has obtained land use right of Wei (2002) No. C178 (hereinafter referred
to
as
"the Land"). See Annex I for the relevant state-owned land use
permit.
2. The
Lessor has obtained property ownership certificates of Weifang Hanting No.
407660
and No. 408571 and the ownership of all premises under the certificate
(hereinafter
referred to as the "Real Estate”) is vested with the Lessor. See Annex
II
for
the
relevant property ownership certificates.
3. The
Lessor has mortgaged the above-mentioned land and premises to the Rural Credit
Cooperatrion
Association in Hanting district in Weifang in 2007 (hereinafter referred
to
as the
"Credit Association") as a guarantee for three loans with the principal of
the
loans
being RMB13,400,000 in total (hereinafter referred to as the "Loans") and the
Loans
period shall be three years according to the Credit Association’s Loan
Agreement,
such lands and premises are subject to the mortgage guarantee and will
be
referred to as the “Mortgaged Land”. See Annex III for the relevant
Mortgage.
4.
With
the
written consent of the Credit Association, the Lessor shall lease the land
and
the
premises to the Lessee for the construction and operation of poultry feed
factory (hereinafter
referred to as the "Feed Plant"). See Annex IV for the relevant consent.
Both
parties agreed through amicable consultation as follows:
1. Subject
of the Lease
The
Lessor has obtained land use right of all the Land under Wei (2002) No. C178
with total area of 21,470 square meters. The land use right is for a period
between January 2003 to December 2052.
The
Lessor has obtained property ownership certificates of Weifang Hanting No.
407660 and No. 408571 and the ownership of the Real Estates with a total area
of
3,637.90 (1,390.39 +2,247.51) square meters. The land use right is for a period
between January 2003 to December 2052.
2. Lease
Registration
Upon
entering into this Agreement, both parties shall register the lease in
accordance with the filing procedures of the local property registration
authorty (hereinafter referred to as the "Registry"). This Agreement shall
come
into force on the date when the lease is registered with the Registry. Costs
in
connection with the registration of the lease shall be borne by the Lessee.
3. Lease
Term
Both
parties agree that the leasing period shall be 10 years, starting from the
date
when the lease is registered with the Registry. Both parties shall negotiate
and
enter into separate renewal agreements after the expiration of the
lease.
4. Purpose
of the Lease
The
Lessor agrees to let the Lessee to use the leased land and premises reasonably,
including but not limited to, placing extra fixtures and fittings, installing
equipment facilities, and carrying out animal feed production and processing
activities on the leased land and premises, and using the address of the leased
land and premises for business registration purposes.
5. Rental
Payment
The
amount and the payment method in connection with the land use right and premises
shall be agreed by both parties separately in another agreement. The Lessor
guarantees that the rent shall remain unchanged during the entire leasing
period.
All
taxes
in connection with the Land, land use right and premises shall be borne by
the
Lessor. Besides the rent, the Lessee shall not bear any other taxes.
6. Lessor’s
Undertaking
The
Lessor guarantees for the timely performance of its obligation to repay the
Credit Assoication under the Loan Agreement in order to avoid the Credit
Association to exercise its right under the mortgage in any way that causes
any
adverse effect to the Lessee’s interest under the lease.
7.
The
Responsibility to Repair
During
the leasing period, the Lessee shall take responsibility for the daily
maintenance and repair of the leased land. After the expiration of the lease,
the Lessee shall ensure that the leased land and premises are in good condition,
excluding normal wear and tear.
8. Pre-emptive
Rights and the Right of Renewal
During
the leasing period, the Lessee shall enjoy a pre-emptive right under the same
conditions in connection with the use of the leased land and premises. After
the
expiration of the lease, the Lessee shall enjoy the right of renewal in relation
to the use of the leased land and premises.
9. Early
Termination of Agreement
Both
parties can terminate this Agreement before the expiration of the lease by
mutual consensus, the operation of the law or agreement. If such early
termination of the Agreement causes losses to one party, the other party shall
compensate for such losses.
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10. Dispute
Resolution
Any
dispute arising from and relating to this Agreement between the two parties
shall be submitted to the China International Economic and Trade Arbitration
Commission in Beijing for arbitration, and in accordance with the application
procedures and rules of the Commission that are currently in place to conduct
arbitration proceedings. An arbitral award shall be final and binding on both
parties.
11. Others
There
are
four copies of this Agreement, both parties retain one copy and the other two
original documents shall be provided to the registration office for registration
purpose only.
Lessor:Weifang
Yuhe Poultry Co., Ltd.
Lessee:
Shandong Nongbiao Purina Feed Co., Ltd.
Representative:
|
Representative:
|
[Signature]
|
[Signature]
|
Date:
November 11, 2008
|
Date:
November 11, 2008
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