Grain Food Purchasing Agency Agreement
Exhibit 10.18
Agreement No. [see attached schedule]
Party A: Fujian Grand Farm Foods Development Co., Ltd.
Party B: Panjin Jiahong Industrial Co., Ltd.
In order to utilize Party B’s scale of grain purchasing to minimize cost and increase economic returns, Party A and Party B, after due consultation, hereby enter into the following agreement to facilitate the meeting of their mutual obligations with respect to grain food purchasing by agency:
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I.
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Agreement
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1.
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Party A hereby appoints Party B as purchasing agent for the grain harvested in [see attached schedule] in Panjin Region of Liaoning Province.
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2.
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Party B shall purchase grain with the following specifications: roughness ≥77%, milling ≥60%, impurities ≤1%, water content ≤14.5%.
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2.
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Party B warrants that the price of the grain purchased as purchasing agent of Party A shall not be lower than the lowest purchasing price set by the State. Party A has the right to monitor the purchase.
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3.
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Party B shall act as the purchasing agent of Party A from [see attached schedule] to [see attached schedule].
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4.
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Party B shall purchase grain of no less than [see attached schedule] metric tons, and no more than [see attached schedule] metric tons.
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5.
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Fee as purchasing agent shall be XXX 00 per metric ton
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6.
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Party A’s purchase price shall be based on actual quantity of grain purchased and the purchase price that Party B paid.
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II.
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Rights and Duties of the Parties.
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1.
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Party A’s Rights and Obligations
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a.
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Party A shall accept grain that satisfies inspection and pay the purchase price as required under this Agreement.
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b.
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Party A shall pay Party B’s agency fee as required under this Agreement.
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c.
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Party A shall not engage in fraud or deceitful act.
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d.
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Party A has the right to monitor and confirm Party B’s purchase price, and has the right to require Party B to adjust any price deemed inappropriate. In the event that the parties cannot resolve any dispute regarding purchase price, Party A has the right to change to another purchasing agent and seek damages from Party B.
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2.
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Party B’s Rights and Obligations
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a.
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Party B hereby accepts Party A’s request and agrees to act as Party A’s purchasing agent.
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b.
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Party B is obligated to permit Party A’s inspection of the grain purchased.
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c.
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Party B is responsible for any procedure required for the inspection, storage and shipping of the grain.
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d.
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Party B is responsible for any dispute or claim arising from the purchasing and shipping of the grain.
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III.
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To ensure the safety of Party A’s funds, Party B hereby appoints Xxxxx Xx as its agent. All of Party A’s orders and funds shall be transacted through Xx. Xx and his personal bank account.
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IV.
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Breach of Agreement
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1.
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Party A shall compensate Party B for its loss resulting from late payment of purchase price or fee.
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2.
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Party B shall compensate Party A for its loss resulting from quality issues relating to the grain that are caused by Party B.
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V.
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The parties may enter into a separate agreement for purchase in large quantity or for specialty grain, based on the principles of this agreement.
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Party A: Fujian Grand Farm Foods Development Co., Ltd. [seal]
Party B: Panjin Jiahong Industrial Co., Ltd. [seal]
Execution Date: [see attached schedule]
Place of Execution: Panjin Liaoning
Schedule to Grain Food Purchasing Agency Agreement
(per Instruction 2 of Item 601 of Regulation S-K)
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Agreement
No.
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Harvest Year
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Term of Agency Appointment
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Quantity of Rice
(mt)
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Agreement
Execution Date
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TXJH091012
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2009
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1-1-2010 to 12-31-2010
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no less than 10,000 mt, and no more than 15,000 mt
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10-12-2009
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XXXX00000000
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2010
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1-1-2011 to 12-31-2011
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No less than 20,000 mt, and no more than 30,000 mt
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12-23-2010
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