English Translation) Cooperation Agreement for Organic Authentication of Miyun/Yanshan Chestnut
Exhibit
10.8
(English
Translation)
Cooperation
Agreement for Organic Authentication
of
Miyun/Yanshan Chestnut
Party
A:
Beijing Green FoodStuff Co., Ltd. (hereinafter referred to as Party
A)
Party
B:
Chestnut Cooperative Association, Lizhenzhai Village, Gaoling Town, Miyun County
(hereinafter referred to as Party B)
Date:
May
18th 2006.
Validity:
from May 8th 2006 to December 8th 2014.
(Copyright
of this agreement is reserved only to Beijing Green FoodStuff Co.,
Ltd.)
Article
1 General Provisions
1. |
Basis
of Authentication: according to relevant policies specified in
“Incentive
for Development of Urban Modern Agriculture and Increase of Farmers’
Income”
issued by the government of Miyun County (Mizhengfa No. [2006] 21)
and the
developing trend of the chestnut markets both at home and abroad, in
order
to further improve the competing ability of Xxxxx Xxxxxxxx (Yanshan
Chestnut) in the markets both at home and abroad and to take more chestnut
market shares, to cultivate and develop the high-class brand of organic
chestnut, to raise agricultural productivity and farmers’ incomes, and to
make sustainable and healthy development of chestnut production, in
the
principles of equality and voluntary, mutual benefit and joint
development, and after discussions with the cooperative association,
this
agreement is made and entered into as
follows.
|
2. |
Method
of authentication: according to the principle of “Renovation of Mechanism
and Group Development” set forth in document of Mingzhengfa No.[2006] 21,
and in consideration of production and sales of Miyun chestnuts in
recent
years as well as the construction of chestnut organic food base in
the
year 2006, the method of authentication is conducted as the market
orientation of both the enterprise and the
bases.
|
3. |
Main
applicant for authentication: Beijing Green Foodstuff Co., Ltd. shall
be
the main applicant for authentication of organic chestnut growing base,
and the chestnut base of Lizhenzhai village, Gaoling town shall be
the
base to be authenticated, of which total areas are about 1,000 mu(see
appendix for numbers of trees, output and distribution of lots).
|
4. |
Authentication
body: after checking authentication bodies both at home and aboard,
Organic Food Authentication Center of China Administration Bureau of
Environment Protection was selected. Fruit Tree Center of Miyun Forest
Bureau was selected to provide technical direction, in charge of making
the technical enforcing plan for chestnut organic production and of
rebuilding measures.
|
5. |
Period:
it takes 8 years, starting from May 2006 to December
2014.
|
6. |
Two
Parties’ Confirmation: Beijing Green FoodStuff Co., Ltd. is Party A, and
the cooperative association that owns the organic chestnut growing
base is
Party B (hereinafter separately referred to as Party A and Party B).
In
addition, a general verification team shall be set up, which consists
of
Miyun Agriculture Committee as the leader and county finance bureau,
forest bureau, Goaling Town People’s government and Beijing Green
FoodStuff Co., Ltd. as members. The team shall be responsible for daily
supervision, examination, instruction and
verification.
|
7. |
Use
of Special Funds. Party A has the rights to use the authentication
fee
funds allocated by the government, and Party B has the rights to use
funds
for the planting and production activities verified by the general
verification team. Nevertheless, no fund shall be used for those chestnut
growing farms which fail to pass the verification.
|
8. |
Party
A shall possess the ownership of using the organic product certificates
and logos for chestnut growing farm.
|
Article
2 Rights, Obligations and Responsibilities of Party A
1. |
Party
A shall apply for organic authentication of Miyun/Yanshan chestnuts
in
accordance with the requirements of domestic and international markets
and
obtain certificates of International (OCIA), Japan (XXX), the United
States (NOP), and EU (EU2092/91) and Chinese certificates within 1-3
years.
|
2. |
Party
A has the rights to manage and use the certificates, logos of transforming
organic chestnut products and the certificates and logos of formal
organic
chestnuts. Party A shall take costs of authentication and annual
inspection. In the events of cut-off, bankruptcy, change or asset transfer
occurred to Party A, Party B shall have the rights to use the certificates
and logos.
|
3. |
Party
A shall take part into examination, supervision and verification of
chestnut production, management and technology implementation. It has
the
rights to participate in and to decide the environmental requirements
for
the base, the reservation of inter-plants and the training and personnel
arrangement of base inspectors.
|
4. |
Determination
of the price of organic chestnuts: minimum purchasing price of the
first
class standard chestnut (110-140 nuts/KG) is 6.20RMB yuan/KG. Whenever
market price is over 6.20 yuan/KG, purchasing price of transforming
products shall be raised by 5-10% and purchasing price of organic
chestnuts shall be raised by 11-20% based on the average price of the
markets in Miyun and around. Both parties shall determine the average
market price of the current year in Miyun and
around.
|
5. |
Party
A shall purchase all organic chestnuts from the farms which have passed
the verification with the price agreed. However, Party A has the rights
to
refuse all products from the base, if organic chestnuts are not produced
in accordance with organic production standard, or fraud, mixture of
poor
quality products, or any other willful activities found. Party B shall
take all the legal responsibilities and compensate Party A for any
economic losses caused by Party B
|
6. |
Party
A has the rights to make claims against Party B for the failure to
protect
and fulfill Party A’s intellectual property rights (including the
authentication certificate rights, use rights of logo, copyright of
the
contract). In such circumstance, 100,000 yuan of penalty shall be charged
to Party B for each breach and Party A has the rights to terminate
the
agreement and claim against Party B.
|
Article
3 Rights, Obligations and Responsibilities of Party B
1. |
Party
B shall carry out production management to chestnut growing farmers
in
accordance with the requirements of organic production management and
technical measures and 6 unifications so as to ensure the conduct of
authentication to process as planned. In detail, the 6 unifications
are
unified organization and training, unified growth of inter-plants,
unified
format of production record, unified collection, purchase, classification,
coding storage of the products, independent freight settlement, unified
execution of product quality commitment letter with farmers, and unified
implementation of technical measures.
|
2. |
Subject
to local farming activities and seasons, Party B is obligated to
positively complete all kinds of organic production in accordance with
requirements of schedule, quality and quantity. It shall conduct internal
production check pursuant to organic production
standard.
|
3. |
Party
B shall accept supervision, check, management and verification done
by
Party A, the authentication center, the Fruit Tree Center of Miyun
Forest
Bureau and the general verification team and so on. It shall also submit
party A relevant reports, internal check records or restructuring measures
requested by authentication body or authorities.
|
4. |
Party
B shall strictly abide by the “Rule
on Technology of Organic Food’s Production”
to
make sure that all goods put into the production in the base are in
accordance with the requirements. and ensure the quality, quantity
and
time schedule. No non-organic goods are used. In case that Party A
finds
any fraud done by Party B, it has the rights to refuse to sign the
acceptance letter.
|
5. |
Party
B shall, with spirits of honesty, provide Party A with organic
transforming chestnuts or organic chestnuts. No mixture of organic
chestnuts with normal chestnuts is allowed. Without consent of Party
A,
Party B shall not sell the products to others. In the event of finding
so,
Party A has the rights to refuse to purchase Party B’s
products.
|
6. |
Party
B shall promptly complete quantity of organic chestnuts as planned
by
Party A. All chestnuts purchased by Party A shall be classified under
international and domestic criterions or Party A’s standard and prices
shall be determined as per quality. Party A shall not refuse qualified
products and lower classification or reduce price. In such circumstance,
Party B has the rights to claim against Party
A.
|
7. |
Payment
terms. Party B shall be responsible for sending qualified chestnuts
to
Party A’s factory. After receiving the products, Party A shall make
payment. In the event of delayed payment, penalty shall be charged
to
Party A at basis of the current interest rate of the bank.
|
Article
4 Liabilities
In
case
that any party breaches the agreement during term of the agreement and economic
loss is caused to the other Party, the parties shall solve it by negotiation.
In
the event of failure, any party has the rights to submit it to Miyun court
for
judgment.
Article
5 Miscellaneous
1. |
This
agreement is written in four copies, of which each party holds one
copy,
and one copy is filed to the County Agriculture Committee and one copy
is
filed to the Fruit Center of Forest Bureau. This agreement shall become
effective at the date of signatures and stamps affixed by both
Parties.
|
2. |
Pending
matters, or supplementary shall be agreed by both
parties.
|
Party
A:
Beijing Green FoodStuff Co., Ltd.
(Corporate
Seal)
Authorized
Representative: /s/ Lantao Li
Date:
May
18th 2006
Party
B:
Chestnut Cooperatives of Jiazhenzhai Village, Gaoling Town, Miyun County
(Corporate
Seal)
Legal
representative: /s/ Xianfu Li
Date:
May
18th, 2006