Unassociated Document


     

    JILIN
HUAMEI BEVERAGE CO.,LTD

    PRODUCT
DISTRIBUTION AGREEMENT (Ginseng beverage)


    


    No.:JLHM-                                            

     

    Party A:
JILIN HUAMEI BEVERAGE
CO., LTD (hereinafter called “Party
A”)

    


    Party
B:                                                                     
(hereinafter
called “Party B”)

    


    Products: Ganzhi American
Ginseng beverage and Ganzhi Ginseng Beverage (including packaging cans, labels,
packing cases and additional description materials in cases) listed in this
agreement hereto are produced by Jilin Ganzhi Ginseng products Co.,
Ltd.

    


    Exclusive distributor sales:
distributors are only allowed to enjoy the exclusive selling rights in
the territory granted herein and as well as the marketing channels. Distributors
shall not sell products out of the territory and non-designated marketing
channels. Meanwhile, any other natural person, legal person or organization,
including Party A, shall not sell products in the territory of this
agreement.

    


    JILIN
HUAMEI BEVERAGE CO., LTD.: The wholly-owned subsidiaries of China Ginseng
Holdings, Inc. is also the global distributor of Jilin Ganzhi Ginseng products
Co., Ltd.

     

    Chapter 1
Distributor Market authorization and limitation

    


    1. Party
A authorize Party B to be the exclusive distributor in the territory of                                                
.

    


    2. Party
A authorize Party B to sell in the channels of selling in real shops, promotion
and team buying. For guaranteeing the unified pricing system and the fair
competition among agents, Party B is not allowed to sell goods by means of
E-commerce (to sell on the internet ) and ________________selling
channel

    


    3. The
distribution agreement have draw up for a duration of   years only,
from                         
 to                              
.

    


    4. Party
B may apply for an renewing application to sign a new agency agreement prior to
its expiration  in case that Party B could run lawfully and be up to
standard of Party A.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    


    5. Party
B shall only enter into sales agreement with their buyers in the name of his own
company (individual), but can not sign any agreements on behalf of Party A. The
selling price fixed by Party B and buyer should be as per the unified retail
prices across the country stipulated by Party A.

    


    6. Party
A reserves the sales right out of the granted territory and
channels.


    


    Chapter 2
Rights and obligations of Party A

    


    1. Party
A guarantees the quality of the goods is entirely consistent with the standards
for relevant State food production, safety and hygiene and agrees to bear Party
B’s loss caused by quality problems.

    


    2. Before
the first supply, Party A shall provide Party B with the copy of business
license and production license.

    


    
      3. Party
A is required to show Quality Inspection Report for corresponding batch for each
supply.

    

    


    
      4. Party
A has the right to establish and adjust the rules and regulations for market
development, product selling and pricing system according to their own
development strategy.

    

    


    5. Party
A has the authority to supervise and regulate the business activities during the
agency period. About the illegal activities in the operation, Party A will give
it a warning, a reprimand, disqualification, termination of the agreement and so
on based on the seriousness of the circumstances.

    


    6. Party
A agrees to support products publicity and marketing provided that the plan will
not affect the Party A’s website.

    


    7. Party
A will supply the technical detail information of the relevant products to Party
A on request in order to provide technical support for Party B’s marketing
activities.


    


    Chapter 3
Rights and obligations of Party B

    


    1. Party
B accepts the authorization from Party A, and has the right to commence business
operations in the territory specified by Party A.

    


    2. Party
B is obliged to supply the legal business license, copy of tax Registration
Certificate and all the formalities related to signing with Party
A.

    


    3. Party
B is obliged to protect the enterprise image, goodwill and brand with Party
A.

    


    4. Party
B shall supply the monthly report of selling activities in writing to Party A
which should describe the sales data, activities, sales analysis and plans in
details.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    


    5. Party
B shall guarantee the bilateral long-term benefits in the business activities,
transregional commodity supply is not allowed.

    


    6. If any
of products are not fit for distribution in selling regions within three months,
Party B has the right to exchange products in order to meet the market
demand.

    


    7. Party
B is obliged to carry out marketing activities according to national written
approval, including; without limitation to; ads, promotion, news report and
other forms. Furthermore, Party B shall take full responsibility for the
dispute, tort and illegal incidents caused by false propaganda by
itself.

    


    8. Party
B shall fill in <distributors registration application form> in accordance
with actual situation, and provide Party A with written notice for record
keeping when there are any changes in the form.

    


    9. Party
B understands that the appointed sales of products are subject to policies, laws
and regulations of the State and promises to have all the required
qualifications of sales itself. Further more, Party B shall have obtained all
the relevant approvals and operate their business strictly in accordance with
laws. Party B shall be liable for full compensation if their operations that
went against rules led to joint loss of Party A.

    


    10.
Signing this agreement does not mean Party B can represent Party A or exercise
authority or undertake obligation in the name of Party A, otherwise, Party A
will have right to hold Party B’s accountable.


    


    Chapter 4
Party B’s target and assessment criteria

    


    1. Party
B shall possess the local business license, permanent work place and appropriate
warehouse for goods.

    


    2. Party
B’s first payment for
purchases shall be                     
 RMB(¥        
   yuan), annual sales can not be less than RMB                   
 yuan. (¥       
    yuan ).

    


    3. The
business activities and the performance of pricing system of the secondary
distributors developing locally are supervised and regulated by Party
B.

     

    Chapter 5
Order, transport and delivery

    


    1. Party
B places an order to Party A in writing. and faxes it to Party A with the
product type, quantity, official seal and customer’s signature and address
etc.  Party A shall make a reply to confirm after receive the
order.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    


    2. Party
A shall execute the term of COD (Cash On Delivery), the payment of goods shall
be remitted directly to Party A’s named account from Party B. Party B may not
hand the cash or checks without payable to company’s name to Party A’s salesmen.
Party B shall bear all the consequences arising therefrom.

    


    3. Party
A shall deliver goods within 7 working days from the date that received the
order and payment was made in full.

     

    4. The
long-distance freight of goods to Party B’s city of territory is to be borne by
Party A, insurance and local short-haul freight are to be borne by Party
B.


    


    Chapter 6
Product quality and acceptance

    


    1. The
acceptance shall be done on the day and on the spot when and where Party B
receives Party A’s goods. If goods are damaged in transit, Party B shall be
responsible for lodging a claim with the carrier, and Party A assists in
resolution.

    


    2. Party
B shall notify Party A within 10 days and issue a written term paper in case of
intrinsic quality issue. Party A issues letter of suggestion according to the
nature of quality issue. Party B stops selling in accordance with the
suggestion, and transports goods back to Party A for exchange, the expenses
shall be borne by Party A.


    


    Chapter 7
Purchase price and award rules of Party B

    


    1.
Purchase price: Ganzhi Ginseng Beverage:                    
RMB/Can. Ganzhi American Ginseng Beverage:

                      
 RMB/Can.

    


    
      2. Award rules: The
principle of award shall be the accumulative purchase amount, if the total
purchase amount for a year (January 1 to December 31)
reaches:

    

    


    A. Over
500 thousand—1 million RMB, Party B will receive year-end rebate of one percent
of the total purchase amount, in addition, take part in the overseas travel once
for one person to Singapore, Malaysia and Thailand organized by
Company.

    


    B. Over 1
million—3 million RMB, rebate of 1.5 percent of the total purchase amount, in
addition, take part in the travel once for two persons to Singapore, Malaysia
and Thailand.

    


    C. Over 3
million RMB, rebate of 2 percent, and take part in the travel once for three
persons to Singapore, Malaysia and Thailand.

    


    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    


    Chapter 8
Disqualification of Distributors

    


    1. The
sales of the commodity of Party B shall not less than _______ RMB within 6
months of the signing of the agreement, or Party A has right to disqualify
distributor’s qualifications. (Definition of sales is based on the definition of
agency purchase price. )

    


    2.If
Party B tampers with products pricing system,or against
carrying out Party A’s sales and promotion plans.

    


    3. If
Party B contravenes or doesn’t fulfill the provisions of this agreement, or
creates adverse effects on Party A.

    


    4. If
Party B isn’t in negotiations with Party A and takes the unilateral decision to
pull out.

    


    5. Party
B is called a correction by the government departments or is revoked the
business license


    


    Chapter 9
Coming into force, release and liability for breach of agreement

    


    1. The
Agreement will have two copies, All are of equal validity. Agreements will come
into force from the date both parties signature and stamp.

    


    2. In the
event of a breach of any of the provisions of this Agreement by one party, the
other party does not get satisfactory reply during ten days from the time making
accusations in writing, aggrieved party has the right to release the agreement
by one side only and pursue the direct and indirect loss, damage and expenses
(including, without limitation, attorney fee, arbitration or legal fee,
financial expenses and travel expenses etc.) from responsible
party.

    


    3. If the
delivery of commodities cannot be finished according to the required time and
quality, Party A has to pay 0.1% of settling price of the planned delivery
quantity for Party B for each succeeding day, and that will be deduct by Party B
from the payment unless responsibility doesn’t rest with Party A or force
majeure.

    


    4. Upon
termination of the agreement, Party B can not use Party A’s name, trademark and
logo etc., the exclusive intellectual property rights for the operational
activities under any name or by any means, otherwise, Party A will pursue the
financial responsibilities and legal liabilities.

    


    5. In the
event any dispute arises in connection with this agreement or arises from the
execution of this agreement, the Parties shall attempt in the first instance to
resolve such dispute through friendly consultations. If the negotiation fails,
any party has the right to submit the dispute for arbitration to Changchun
Arbitration Commission.

    
 

    
      
        
        

      

      
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    Chapter 10 Other
items

    


    1. If
Party B does not remit the first batch of purchases in seven days after
underwriting the agreement, that will result in an automatic invalidity of this
agreement. Party A shall issue a valid < commission of authority > to
Party B on the receipt of the first purchase money so that Party B carries out
the work.

    


    2. For
issues not stipulated in this agreement, both parties may sign a supplement
agreement after multiple negotiation if both can reach a consensus. Both
supplement agreement and formal version are of equal validity.

    


    3. The
Agreement will have two copies. Each party shall keep one.

    


    4. This
agreement will come into force after both parties placed signatures and
stamps.

    


    
      
        	 	 	 	 	 
	
                Party
      A: JILIN HUAMEI BEVERAGE CO., LTD.(Seal)

              	 	 	
                Party
      B: 

              	(Seal)
	
                 

              	 	 	
                 

              	 
	
                Legal
      representative: Liu Chang-Zhen

              	 	 	
                Legal
      representative

              	 
	 	 	 	 	 
	Representative:	 	 	Representative:	 
	 	 	 	 	 
	 	 	 	 	 
	Date: 	 	 	Date:	 


      

       

      
        
          
          

        

        
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