Lease Agreement of Anhui Xuelingxian Pharmaceutical Co., Ltd.
EX-10.7 12 v216233_ex10-7.htm Unassociated Document
Lease Agreement of Anhui Xuelingxian Pharmaceutical Co., Ltd.
Contract No: SCZD 2010-003
Party A: Anhui Xuelingxian Pharmaceutical Co., Ltd.
Party B: Meng Wang Village Committee of Dayang Town of Qiaocheng District in Bozhou City
The two parties have made the agreement for leasing the land of Meng Wang Village of Dayang Town of Qiaocheng District in Bozhou City of Anhui Xuelingxian Pharmaceutical Co., Ltd. as well as concerning the field compensation issues, the detailed content is as follows:
| (I) | Land condition |
Party B leases the land of Meng Wang Village of Dayang Town of Qiaocheng District in Bozhou City to Party A, and the land is located at north latitude 33.7525 and east longitude 115.9086 (to the east); north latitude 33.7296 and east longitude 115.8949 (to the south); north latitude 33.7449 and east longitude 115.8638 (to the west); north latitude 33.7696 and east longitude 115.8805 (to the north); covering the total area of 9970 Chinese Mu.
| (II) | Responsibilities and obligations of Party A: |
| 1. | Take land selection according to the conditions like atmosphere, oil and non-water pollution. |
| 2. | Select the planting categories, make planning for the plant and guide the planning technology. |
| 3. | Lease term and payment: |
Land lease fees: 1050.00 Yuan/ Chinese Mu for land area of 9970 Chinese Mu from July 1, 2010 to Dec. 31, 2015, covering the total fees of 52.3425 million Yuan for five years (10.4685 million Yuan for each year).
The compensation fees paid by Party A of the planted categories of the land leased by Party B contained the lease fees of 2010. The land lease fees shall be paid from 2011, and the rent of that year shall be paid off before Mar. 1 of each year. It shall pay 15%’s rate for the interests of each year if there are overdue fees.
| 4. | Provide the medicine seeds and sprouts needed by the plants. |
| 5. | Party A shall legally operate the leased land, otherwise, Party B has right to take back the land use right and terminate the agreement. |
| 6. | All the accidents and personal injuries occurred in the operation during lease term shall be assumed by Party A; and it has no relations with Party B. |
| (III) | Responsibilities and obligations of Party B: |
| 1. | Party B promises that it has the legal land use right of the abovementioned land in Article 1, and it has right to have the land leased by Party A (used for establishing the medicine herbs base); if party B violates this rule, it shall return all the rent to Party A. |
| 2. | Party B shall guarantee that good conditions of the water and electricity, etc, of the land, and assist Party A to coordinate the relevant issues; the detailed charging issues shall be negotiated by Party A with the provider, and all the fees shall be assumed by Party A. |
IV. Compensation for plantings in the leased land
The famers have planted in the leased land. In order to guarantee their rights and interests, the company will make economic compensation for farmers’ plantings in the leased land when leasing:
| Number | Product name | Area (Chinese mu) | Compensation standard (Yuan/Chinese mu) | Amount (10,000 Yuan) | Remark |
| 1 | Radix paeoniae alba | 1,532 | 5,137.00 | 7,869,884.00 | |
| 2 | Rhizoma anemarrhenae | 971 | 2,972.00 | 2,885,812.00 | |
| 3 | Aster | 468 | 2,450.00 | 1,146,600.00 | |
| 4 | Radix angelicae | 890 | 2,882.00 | 2,564,980.00 | |
| 5 | Coxtex moutan | 1,298 | 5,644.00 | 7,325,912.00 | |
| 6 | Chrysanthemum | 578 | 3,170.00 | 1,832,260.00 | |
| 7 | Isatis root | 681 | 3,531.00 | 2,404,611.00 | |
| 8 | Root of red-rooted salvia | 483 | 2,300.00 | 1,110,900.00 | |
| 9 | Bighead atractylodes rhizome | 603 | 4,547.00 | 2,741,841.00 | |
| 10 | Platycodon grandiflorum | 724 | 4,676.00 | 3,385,424.00 | |
| 11 | Saposhnikovia divaricata | 532 | 4,551.00 | 2,421,132.00 | |
| 12 | Black soya bean | 1,210 | 1,845.00 | 2,232,450.00 | |
| 13 | Total | 9,970.00 | 37,921,806.00 |
Note: Agreed by both parties through negotiation, the total compensation amount of plantings is RMB 37,921,806.00 Yuan, which shall be paid by Party A to Party B monthly after the Contract taking effect (the compensation amount of biennial plants is RMB 6,471,439.00 Yuan).
Paying 20% of the compensation amount of 6,288,000.00 Yuan before Sep. 30, 2010;
Paying 80% of the compensation amount of 25,162,367.00 Yuan before Dec. 31, 2010;
Paying the compensation amount for biennial plants of 6,471,439.00 Yuan before Jan.31, 2011;
V. Applicable law
The agreement is entered according to the Measures of the People's Republic of China for the Administration of the Certificates of the Right to Contracted Management of Rural Land and the Measures of the People's Republic of China for the Administration of Circulation of Rural Land Contracted Management Right, which shall be binding on both parties.
VI. Other matters
| 1. | If Party A puts forward to suspend the contract within the lease term, it shall notify Party B before Oct. 30 of the last year. If Party B suspends the contract in advance, it shall notify Party A before Oct. 30 of the last year. |
| 2. | Disputes aroused shall be solved by both parties through negotiation, if the negotiation fails, any party has the right to appeal to the local People’ Court of the land (or apply for arbitration from Bozhou Municipal Arbitration Committee). |
| 3. | Matters unmentioned here shall be solved by both parties through negotiation. The Contract has two copies, with Party A and Party B holding one respectively. |
| Party A: Anhui Xuelingxian Pharmaceutical Co., Ltd. (Seal) | Party B: Meng Wang Village Committee of Dayang Town of Qiaocheng District in Bozhou City (Seal) |
| (Signature) | (Signature) |
| July 2, 2010 | July 2, 2010 |
