EXHIBIT 10.10
LAND LEASE AGREEMENT
Based on the principles of equality, mutual benefit and compensated use, Weifang
Neo-Luck (Group) Corporation ("Party A") and Weifang Fuhua Amusement Park Co.,
Ltd. ("Party B"), after friendly negotiations, hereby conclude the following
agreement with regard to matters related to Party B leasing land from Party A:
Article 1: Area and Location of Leased Land
It is agreed by both Parties that Party B shall lease from Party A land located
in Weifang Hi-Tech Development Zone at East End of Dongfeng Street, fronting
Weifang Fuhua Hotel on the south. The gross area is 235,680 square meters, in
which the first phase of project shall take 168,380 square meters, and the
second phase 67,300 square meters.
Article 2: Rent
In accordance with relevant policies of the State and standard rents established
by the Board of Directors of Fuhua Amusement Park Co., Ltd., it is agreed by
both Parties that during the land lease term, Party B shall pay to Party A an
annual rent of five million RMB, in which three million five hundred thousand
RMB shall be paid for land used for the first phase and one million five hundred
thousand RMB for land used for the second phase. Party B shall pay the annual
land fee stipulated by the State.
Article 3: Lease Term
The land lease term shall be from November 1, 2000 to October 31, 2005. Party A
warrants that it shall lease to Party B the land to be used by Party B.
Article 4: Payment of Rent
Party B shall pay RMB 415,000 to Party A on a monthly basis and settle the
account at the end of each year. The site lease shall begin November 1, 2001.
Party B shall pay the rent to Party A on a timely basis and shall not delay
payment of the rent, notwithstanding any cause. A late penalty of 5% of the
monthly rent shall be charged for every delay of a month.
Article 5: Land Use Regulations
1. The development activities and land use carried out by Party B within the
boundaries of the leased land shall comply with relevant laws and
regulations of the People's Republic of China ("PRC") and applicable
policies of the Province and the City, and no such activity
shall harm the public interest, such legal rights and interest being
protected by the laws of the State.
2. The State shall remain the owner of the land leased by Party B from Party
A. Therefore, Party B shall have only the right to use, but not ownership
of, the land, and such land use right is not transferable. Prior to the
construction of any necessary facilities on the land lot, Party B shall
draft a plan for such construction and may only begin construction after
receiving approval for such plan from Party A.
3. Underground resources, buried items and public infrastructure and utilities
shall not be within the scope of the land use right granted.
4. Without Party A's consent, the land lot shall not be used by Party B as
collateral.
5. Party B shall properly protect boundary markers set by the City's Land
Administration and shall not move them without authorization. If the
boundary markers are damaged or moved, Party B shall submit a timely
written report to Party A requesting resetting and shall bear all related
costs.
6. Party B shall ensure that waste liquid within the boundaries of the land
lot and any discharge that might affect the environment shall be reliably
processed and that there shall be no damage or contamination to the
surrounding environment.
7. Party B shall properly protect all public facilities within the boundaries
of the land lot, otherwise Party B shall bear all costs arising from
repairing such facilities.
8. During the period when the land shall be used, Party A shall have the right
to monitor and inspect use of the land by Party B.
Article 6: Expiration of Term
In the event that Party B needs to continue to use the land upon expiration of
the lease term, Party B shall have priority by submitting an application for
extension to Party A 180 days before the term expires, provided that Party B
shall have complied with relevant regulations. Party A and Party B shall then
enter into an extension agreement on lease term, rent and other terms.
Article 7: Breach of Contract
Both Party A and Party B shall abide by provisions under this Agreement. A Party
may terminate this Agreement in the event that the other Party should fail to
perform under this Agreement, and shall have the right to claim compensation for
the losses it suffers due to the breach by the other Party.
Article 8: Dispute Settlement
Any dispute arising out of performance under this Agreement or related to this
Agreement shall be settled through friendly negotiations by both Parties. In the
event that negotiations should fail to settle the dispute, the two Parties shall
then engage in joint mediation. In the event of failure of mediation, the
dispute shall be submitted for arbitration.
Article 9: Effectiveness
This Agreement shall become effective on the date of signature by both Parties'
representatives.
Party A Party B
Weifang Neo Luck (Group) Weifang Fuhua Amusement Park Co., Ltd. (Seal)
Corporation (Seal)
Representative: Representative:
Date: October 30, 2000
