Exhibit 10.23
Portions redacted
* Certain information on this page has been
omitted and filed separately with the
Securities and Exchange Commission.
Confidential treatment has been requested
with respect to the omitted portions.
Manufacturing Agreement for Dry-freeze Levofloxacin Injectable
This agreement is made and entered by and between:
Shanxi Weiqida Pharmaceutical Co., Ltd., Datong, Shanxi, China (hereinafter
referred to as party A)
Shanxi Pude Pharmaceutical Co., Ltd., Datong, Shanxi, China (hereinafter
referred to as party B)
Through friendly negotiation, party A and party B agree to enter into an
agreement on manufacturing the Dry-freeze Levofloxacin Injectable as follows:
1. Party A contracts out manufacturing "Levofloxacin Injectable"
(Dry-freeze, dosage 0.1g) to party B.
2. Party A provides qualified Levofloxacin raw materials and packing
materials (tubular vials, butyl stoppers, and aluminum caps), which
should meet the standards of party B.
3. Party B manufactures the products up to capping, and party A is
responsible for outside packaging.
4. The products manufactured by party B should meet quality control
standards set by party A, and party B is fully responsible for product
quality resulted from the process of manufacturing. If the quality of
product can't meet party A's standards, any expenses involved will be
beared and be deducted from party B's manufacturing charges.
5. The product inspection is subject to Party A's reports on inspection
(with raw material, finished product standards).
6. Manufacturing charges calculation is as follows: Based on the previous
manufacturing capacity of Party B, the monthly production output is
not less than 100,000 vials.
a. A yearly production output of 1 million vials, the rate is RMB
* * * per vial.
b. A yearly production output between 1million and 2 million vials,
the rate is RMB * * * per vial. Party A will make a lump sum
payment at the end of each year.
* * * CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.
c. A yearly production output between 2 million and 3 million vials,
the rate is RMB * * * per vial. Party A will make a lump sum
payment at the end of each year.
d. Party A makes the payment monthly, and party B makes the value
added invoice by actual quantities.
7. The rate of finished product of Dry-freeze Levofloxacin Injectable is
not less than * * *, and the rate of utilization of tubular vials,
butyl stoppers, and aluminum caps is not less than * * *. The quantity
of finished products is subject to the count of both parties, but the
disqualification products will be excluded from the calculation of
manufacturing charges.
8. If the rate of finished product is more than * * *, party A will buy
back the extra finished products at a rate of RMB * * * per vial. If
the rate of finished product doesn't reach * * *, party A will deduct
the deficit products at a rate of RMB * * * per vial.
9. In the process of manufacturing, if the rate of utilization of packing
materials doesn't reach 97%, party B should buy extra packing
materials from Party A; if the rate of utilization of packing
materials is more than 97%, party A will buy back the savings, if the
quantity is material.
10. Party A provides the production plan to Party B 15 days in advance,
and party B arranges the production within 15 days after receiving raw
materials. Party B shall use its best efforts to complete the
production. Party A is responsible for the transportation involved in
the manufacturing.
11. All the matters not included in this agreements will be negotiated by
parties.
12. The agreement is signed in Chinese, with four copies, and two for each
party.
13. The agreement is valid starting January 2003.
Party A: Shanxi Weiqida Pharmaceutical Co., Ltd.
/s/ Xxxxxxx Xxxx
---------------------------
Xx. Xxxxxxx Xxxx
Date: April 21, 2003
Party B: Shanxi Pude Pharmaceutical Co., Ltd.
/s/ Xxxxxxxx Xx
---------------------------
Xx. Xxxxxxxx Xx
Date: April 21, 2003
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