Memorandum of Understanding
EXHIBIT
10.13
Memorandum
of Understanding
Whereas
Xi'an Haxin Science and Technology Co. Ltd (Hanxin) and Shaanxi Xxxxx Xxxx
Products Ltd.(Xxxxx) has established a friendly cooperation relationship for
long term, and considering the two parties future strategic development plans,
the two parties have reached the following agreements through active
negotiations and arrangements, and are signing this memorandum of understanding
to push forward further cooperation and development of the two
parties:
1. Hanxin
shall continue its endeavor in developing cork products in the next two years,
and shall cooperate with Xxxxx seamlessly to establish self-owned cork oak tree
plantation to solve the problem of raw materials supply as soon as
practical.
2. To
achieve the above goal, Hanxin represent that it shall actively complete
purchasing of 7000 acre of land in Linyou County, Baoji, which is now owned by
Xxxxx, during the following two years, according to its development
situations.
3. Hanxin
also represent that it shall continue to provide to Xxxxx cork products that can
meet Xxxxx'x demand according to its sales scale, with the most favorable
prices.
4.
Whereas the action of Xxxxx to complete the purchase of the above mentioned land
was actually an action consigned by Hanxin, which had incurred considerable
expenses to Xxxxx, Xxxxxx hereby solemnly commit that it shall complete the
purchase of this land at the price Xxxxx had paid for the land during the
following two years. Otherwise, Hanxin shall willingly compensate RMB10million
to Xxxxx for the prior operational expenses.
5. The
two parties sign this memorandum of agreement for mutual
adherence, to agree upon a good future development, and to fulfill
the both parties' strategic plans to become leading producer and seller of cork
products domestically and abroad.
6. This
memorandum of understanding has two duplicates, either party shall hold one
duplicate, which shall become effective after signing and sealing of the two
parties.
Xi'an
Haxin Science and Technology Co. Ltd
Legal
Representative: Chen Xxxx Xxxxx
Shaanxi
Xxxxx Xxxx Products Ltd.
Legal
Representative: Xxxxx Xx
Oct.
20th,
2009
