Agricultural Partnership Agreement with Xinmiao Grain Depot
Agreement Number: NO.2007026
Agreement Date: 7/10/2007
Place of agreement: Xinmiao Grain Depot
Party A: Qianguo District Xinmiao Grain Depot
Party B: Songyuan City Ermapao Green Rice Limited.
1. Product name, quantity, price
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Time period Specifications Product Unit of Amount Price per Total Price
name Measurement unit (Renminbi)
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7/2007-6/2008 98-122 Grain Tons 10,000 2055.00 20,550,000.00
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7/2008-6/2009 98-122 Grain Tons 11,000 2055.00 22,605,000.00
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7/2009-6/2010 98-122 Grain Tons 12,000 2055.00 24,660,000.00
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2. Length of contract:
July 10th 2007 until June 9th 2010. Agreement period is 3 years.
3. Contents of agreement:
A will be responsible for taking loans for local banks and raise
necessary capital for grain purchase. B will have to give A an initial
payment of 10% of security deposit and interest from the loan. A will only
purchase grains solely for B, and not for any other companies. A must
provide at least 10,000 tons of grains to B and gradually increase by
1,000 tons annually starting from date of agreement. A has an annual
storage capacity of 160,000 tons of grains. A will be responsible for
purchase, storage, and transport of the grains and all costs incurred with
these activities. B has agreed to give A a purchasing fee of 30 Renminbi/
ton.
4. Insurance:
B will have to provide insurance for grains that are stored.
5. Place of transaction and transportation method: A will provide cart
services for the grains to B, after transaction, A will be
responsible for trucking transportation.
6. Contents of transaction: Upon the completion of transaction
a. B will pay A in cash upon completion of each and every
transaction.
b. B will pay off the last installment on June 9th of every year.
c. Time of transaction: Transaction of all processed grains for
the current year will be completed on or before June 9th of
every year.
7. Package standards: Standard.
8. Breech of contract:
a. If A is unable to provide B with the required tons of grains,
A will have to pay B an amount of 2055 Renminbi for each ton.
The required quantity each year is stated in the contract.
b. If B is unable to pay on time, B will have to pay A 1% of the
payment as late fee for each day after the transaction date.
If B is unable to pay off the final payments, all of the
products associated with that transaction will belong to
Songyuan City Agricultural Development Bank.
9. Drying fees:
B will be responsible for all drying fees associated with the
grains at 10Renminbi/ton. Water ratio will be 1:1.5, B will be
responsible for 5% of natural losses, A will be responsible for any
costs thereafter the 5% natural loss.
10. If any conflict occurs, A and B will initially engage in a friendly
meeting to resolve any disagreements, If an agreement is not
reached, the matter will be handed over to the local court where the
agreement is signed.
11. Others:
This agreement will be effective after signatures and stamps
from both parties. A faxed copy of this agreement is also effective.
12. There will be three copies of this agreement, A and B will each have
a copy, the Agricultural Development Bank will also have a copy of
this agreement.
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A: B:
Name: Songyuan City Ermapao Green Name: Qianguo District Xinmiao Rice
Rice Limited Depot
Address: Songyuan City Qianguo Address: Songyuan City Qianguo
District Ping Feng Xiang District Xinmiao Town
Representative: Huizhi Xiao Representative: Xxxxxx Xxx
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