Lease agreement
Exhibit
10.5
This
agreement is entered into this day of January 1, 2008, by and between
Heilongjiang Weikang Bio-technology Group Company Inc. (“Party A”) and Harbin
Dongfeng Pharmaceutical Corp., ltd (“Party B”).
NOW, in
consideration of the principle of equality and mutual benefit, the parties do
hereby agree as follows after friendly consultation herein made:
a)
|
the
right to use the technology for manufacturing the royal jelly for the
period from January 1, 2008 to June 30, 2010 is offered to Party B by
Party A, and Party A will get and 10,000,000 RMB from leasing out the use
right of the technology.
|
b)
|
Another
lease payment will be received from leasing out the workshop for the lease
term is 7,500,000 RMB. The period is also from January 1, 2008 to June 30,
2010.(3,000,000RMB per year). The right to use the workshop includes the
right of using all of facilities in
workshop.
|
c)
|
The
period is from January 1, 2008 to June 30,
2010.
|
Guarantee of Party
A
a)
|
Party
A hereby guarantees that the workshop and the right to use the technology
for manufacturing the royal jelly are used by Party B, and also guarantees
Party B could produce as soon as they use the
workshop.
|
b)
|
Party
A should offer the approval of royal jelly, GMP cert, and related
technology materials to Party B.
|
c)
|
Party
A should train staffs of Party B to guarantee the regular
production.
|
d)
|
Party
A offer the water, electric, and heat in production, and bears the
fee.
|
e)
|
Party
B could use the facilities in other part of factory, when they are
available.
|
f)
|
Staff
of Party B could use the dormitory and ding hall in factory for
free.
|
g)
|
Party
A should not involve the profit made by Party
B.
|
h)
|
If
the Party A could not offer the facilities as mentioned, Party B has the
right to terminate the agreement, and the related fee will be paid by
Party A.
|
Guarantee
of Party B
a)
|
Party
B should follow the related rules to operate, could not violate the
rules.
|
b)
|
Party
B should not disclose the technology for manufacturing the royal jelly,
and could not do any thing for R&D or manufacturing the royal jelly or
even the similar products.
|
c)
|
Party
B should keep the good environment of workshop, and if Party B will change
any structure of workshop according to GMP, Party B should get the
approval of Party A, and Party B should pay the related
fee.
|
d)
|
Party
B should follow the rules of GMP, and maintain the
equipments.
|
e)
|
Staff
of Party B should follow the administrative rule of Party A, fine is
required to be paid for an
offense.
|
f)
|
Party
B should permit Party A produce other
products.
|
g)
|
If
the Party B could not follow the rules as mentioned, Party A has the right
to terminate the agreement, and the related fee will be paid by Party
B.
|
Form of
payment
a)
|
In
15 business days after the agreement in effective, 55% of the fee for the
right to use the technology hereby should be paid by Party B, the left 45%
should by paid in one year. And Party A should offer the technology to
Party B in two days when 55% of the fee is paid by Party
B.
|
b)
|
Party
B should pay the fee for workshop for half year before production, and pay
again after six months.
|
Others
a) Matters
not mentioned herein shall be settled in an amicable way, or by supplemental
agreement, and the supplementary agreement as the integral part of the contract,
have the same legal effect
b) In the
event of any dispute, claim, question or difference arises with respect to this
Agreement or its performance or enforcement, the staff of government of Party A
will use their reasonable efforts to attempt to settle such dispute amicably; if
the parties cannot resolve the dispute, then it shall be resolved by the
government of Party A based on the prevailing arbitration rules.
c) This
agreement is in duplicate, Party A, and Party B shall hold one copy
each.
d) This
agreement shall become effective as of the day when the Party A, and Party B
have affixed their signatures on it.
Party
A Heilongjiang Weikang Bio-technology Group Company
Inc.(seal)
Party
B Harbin Dongfeng Pharmaceutical Corp., ltd (seal)