Document:

cdkg_ex1045.htm

EXHIBIT 10.45

 

TRADEMARK LICENSING AGREEMENT

 

Party A:  Shaanxi Baishui Dukang Brand Management Co., Ltd.

Residence: Van Metropolis A-28F, Tangyan Rd 35#, Xi’an Shaanxi

Legal Representative: Wang Yongsheng

Party B: Henan Zhechengxian Eastern Liquor Co., Ltd.

Residence: Economic Development Zone, Zhecheng County

Legal Representative: Li Hongsheng

Whereas Party A owns certain valuable registered trademarks and brands, Party B desires to utilize the Name upon and in connection with the manufacture, sale and distribution of articles hereinafter described. Therefore, Party A and B have reached an agreement through friendly consultation to conclude the following agreement.

	
1.

	
Party A allows Party B to use the trade market, identity labeling number, as well as the name, pattern, introduction, design, specification of the products and so on owned by Party A. This is regarded as a kind of simple licensing agreement. Strictly prohibits Party B from licensing other persons to use the trademark. The utilizing of the trademark by Party B should be subject to the written authorization contents authorized and approved by Party A, otherwise Party B would be subject to the legal liabilities for trademark infringement.

	
2.

	
Qualification Requirements on Party B (If Party B has been a distributor of Party A in the past, in according with the requirements of the market, when Party B performing an allopatric bottling, the bottling plant must meet the following requirements):

	  	
2.1

	
Financial Strength: should have strong financial strength and the ability to develop the market independently.

	  	
2.2

	
Market Network: should be with extensive distribution network and customer resources.

	  	
2.3

	
Geographic Requirements: should be within the yearly designed zone of Party A.

	  	
2.4

	
Credibility: should be creditable management and have the specific marketing planning as well as a long-term business objectives, could strictly comply with the rules made by Party A.

	  	
2.5

	
Certificates Requirements: should have the Business License, Sanitary License, Manufacturing License, Tax Registration Certificates and other related certificates authorized officially.

 

	
3.

	
Designated Sales Zone: Henan Province, the demarcation should be subject to the national administrative zones demarcation.

	  	
3.1

	
Party A can not authorize any other person, company or entity as its distributor to manufacture and sale the products which has the same name with the products authorized to Party B within this designed zone other than Party B.

	  	
3.2

	
After one year cooperation, if the quality of the products is steady and the scale of the market development has been formed, by mutual consultation, Party B can enlarge the distribution scope of its products. But both parties should execute a new agreement and design a new sales zone. If Party B enlarged the sales scope without the permission of Party A, Party A has the rights to terminate the agreement. Party B should pay a double yearly royalty fee and afford all the loss of Party A from this.

 

  

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4.

	
The Trademark and the Special Name

	  	
4.1

	
The trademark herein means the trademark which has been described as “Baishui Dukang” in the Agreement and has been registered by PRC Trademark Office. The registered number is 915685.

	  	
4.2

	
The Designed Production Name: __Hong Yan__. The sub-brand name of the products can be determined by Party B. But Party B should ensure that there are no conflicts between the name they use and the name of the others’. If there are disputes arising from this, Party B should take the responsibility of that. Party A should provide Party B with the production bar code. If Party B needs to add other new items for the market requirements, it should file an application to Party A. If Party B adds new items without the permission from Party A, Party B would be subject to the legal liabilities for trademark infringement. The production name described as followings:

	
Name

	 	
Size & location

of Trademark

	 	
Licensable

Bar Code

	 	
Product Size

	 	
Alcohol Content

	 	
Odor Type

	 	
Price / bottle

	 	
Remarks

	
Hong Yan

·

Good Luck

	 	 	-----	 	 	-----	 	 	1x2x4	 	
52%(v/v)

	 	
Strong Aromatic

	 	
RMB

10

	 	
Packaging , Bar code

	
Hong Yan

·

Rarities

	 	 	-----	 	 	-----	 	 	1x6	 	
52%(v/v)

	 	
Strong Aromatic

	 	
RMB

40

	 	
Trademark see appendix

	
 

Hong Yan

·

Love

	 	 	-----	 	 	-----	 	 	1x6	 	
52%(v/v)

	 	
Strong Aromatic

	 	
RMB

15

	 	
Sealed by both parties for the record

	
Hong Yan

·

Happiness

	 	 	-----	 	 	-----	 	 	1x6	 	
46%(v/v)

	 	
Strong Aromatic

	 	
RMB

6

	 	  

 

	  	
4.3

	
When Party B prints the trademark, the prints for sub-brand should be in the central location on the production package and twice bigger than the main-brand “Baishui Dukang” which should be on the top of the production package with Logo.

	  	
4.4

	
Party A allows Party B to develop single items under the same sub-brand with different size, different alcohol content and different odor type. Each kind of single item uses one bar code. Party B should pay Party A as management fee RMB 50,000 for each single item. If Party B sets up other production names under the sub-brand name or changes the trademark logo, then, it would be seemed as to add the sub-brand, on the occasion, Party B should file an application to Party A for adding sub-brand and pay related fee to Party A.

	  	
4.5

	
What herein called single item means those products which under the same sub-brand with different size, different alcohol content and different odor type.

  

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5.

	
Royalty Fee (The total amount of this agreement is RMB 450,000)

	  	
5.1

	
Trough full consultation of both parties, based on the principle of “development first, profit second”, here perform the way of one-time costs every year: yearly royalty fee is for RMB 250,000, (only for using one bar code, If Party B is willing to add bar code of single item, yearly royalty fee for each newly added bar code is RMB 50,000. If Party B adds new item bar code without the permission from Party A, once verified, Party A can surcharge for RMB 150,000 for each single item bar code from Party B, when the circumstances are serious, Party B would subject to related legal liabilities.) The payment should be made within three days after the agreement was signed, then, the agreement could be seems as came into effect.

	  	
5.2

	
When Party B applied to Party A for the sub-brand, the number of the single items under the sub-brand should be no less than 3.

	  	
5.3

	
If Party B is willing to add other sub-brand, royalty fee for each newly added sub-brand should be RMB 200,000. If Party B adds sub-brand without the permission from Party A, once verified, Party A can surcharge for RMB 500,000 for each sub-brand from Party B, when the circumstances are serious, Party B would subject to related legal liabilities.

	
6.

	
Credibility Margin

	  	
6.1

	
In order to maintain the market stability and guarantee the bilateral benefits of both Party A and Party B, hereby, collect the credibility margin for RMB 50,000 which should be paid within three days after the agreement was signed.

	  	
6.2

	
If Party B sells in the place which is out of the designed sales zone, sells with lower prize or damages the reputation of “Baishui Dukang” liquor, once verified, Party A has the rights to unilaterally deduct the credibility margin of Party B and maintain the rights to terminate the agreement. If Party A has other economic loss resulted by the above reasons, Party B would subject to related legal liabilities and should afford all the loss of Party A from this.

	  	
6.3

	
If Party B does not breach the agreement during the agreement term and dose not has the actions that damaged the company reputation of Party A, Party A should make a full refund of the credibility margin after the agreement expired (without interests).

 

	
7.

	
Usage of Trademark and Name owned by Party A

	  	
7.1

	
Party B uses the “Trademark”, “Name” and the short forms of them for commercial purpose which should not be used for any other purpose.

	  	
7.2

	
Party B would has no right to continue to use the “trademark” and the “name” when it is  disqualified for whatever reasons, otherwise Party B should afforded the relative legal responsibilities for trademark infringement.

	
8.

	
Infringement and warranty

	  	
8.1

	
Party A is legal holder of registered trademark herein and has the rights to authorize Party B as an authorized user of it. In case any third party brings a charge of infringement, Party A should take up the matter with the third party and bear all legal and financial responsibilities which may arise.

	  	
8.2

	
Party B agrees provide Party A with necessary assistance to protect Party A’s rights on the trademark.

	  	
8.3

	
Party B should notify Party A in writing of any infringements or imitations by others in the trademark on the products the same as or similar to those covered by this agreement which may come to Party A’s attention. Both parties have the right to determine to prosecute any claims or suits in its own name or in the name of both parties join together against such behavior.

 

  

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9.

	
Manufacturing of Products and Packages

	  	
9.1

	
The production herein should be subject to PRC national laws and regulations. Party B should produce the products only after sending the random sample of base wine produced by him to Party A and testified. If Party B dose not manufacture and sell the products in according with the above requirements, it should afford all the losses caused by this. If this damaged the credibility of Party A, Party A has the rights to unilaterally deduct the credibility margin of Party B, when the circumstances are serious, Party A should maintain the rights of charge Party B the legal liabilities.

	  	
9.2

	
Packages should be designed Party B and examined by Party A, then both Party A and Party B should choose a printing factory owns the package printing qualification, and make the authorization to the printing factory for the package printing within the authorized scope. The production batch and the production quantity must be submitted to Party A for record before the fifth day of the first month in every quarter, otherwise Party A has the rights to withdraw the authorization and charge the related legal liabilities. If Party B makes the package printing without the written permission from Party A, Party A has the rights to terminate the agreement unilaterally, and charge Party B with related legal liabilities as counterfeit and shoddy products. The package designed by Party B should be approved by Party A. After the designed samples signed and sealed. Party A would authorize the printing plant for printing. See the 1 to 3 items in the appendix.

 

	
10.

	
Sales Literature

	  	
10.1

	
In any case, if Party B expects to get related promotional materials of the contractual products, then could design related promotional materials by themselves. But the content and the range of the materials mentioned above should be approved by Party A.

	  	
10.2

	
The production packages of Party B should be produced in batches complied with the “Certificate of authorization” granted by Party A. If Party B produced the packages without the “Certificate of authorization”, once found, Party A has the rights to unilaterally terminate the agreement and charge Party B with legal liabilities for trademark infringement, also has the rights to charge the package produce plant with related legal liabilities.

	  	
10.3

	
During the period of the Rum Exhibition every year, Party B should contact with Party A in advance and set up exhibition booths in according with the requirements of Party A.

	
11.

	
Product Price

Price of the products is fixed in written form after accounting by both parties. It is in consideration of some integrated factors such as local consumption level, product costs, taxes, profits etc., and can not be changed without permission. If the price becomes disordered causing by Party B, Party A has the rights to take actions to control and charge Party B with related legal liabilities.

 

	
12.

	
Rights and Obligations of Party A

	  	
12.1

	
Party A should provide Party B with the necessary procedure and information in order to guarantee the normal operation of Party B.

	  	
12.2

	
During the agreement period, Party A could provide liquor industry sales trend reports and effective sales promotion way used in other sales market.

	  	
12.3

	
When Party A is sending inspector to conduct the work of Party B, Party B should cooperate with the job of the inspector.

	  	
12.4

	
The commitments any staff (including General Manager) from Party A makes to Party B should be in written form, and should the official documents with the authorization of the representative of Party A and the company seal, otherwise invalid.

	
13.

	
Rights and Obligations of Party B

	  	
13.1

	
The service hotline of Party B and the supervision hotline of Party A should be printed on the products packing of Party B.

	  	
13.2

	
Party B assures Party A that all the “products” would be in according with the standards of the “zone”. They can be sold and fit for the sales purposes. Party B also assures of not changing the “products” standards without permission.

	  	
13.3

	
If Party A found any “products” of poor quality, and informed Party B, Party B should halt production at once complied with Party A’s requirements and shoulder all the responsibilities.

	  	
13.4

	
In order to promote the “products” and provide service to the customers in this “zone”, Party B should provide and maintain an organization that has the operation capacity at its own expense.

	  	
13.5

	
Party could develop regional agencies and distributors within the “zone” as needed, and independently be responsible for the contracts signing and managing.

	  	
13.6

	
During the agreement period, if Party B sell the products out of the agreed zone without the permission from Party A, once verified, Party A has the rights to deduct certain credibility margin of Party B, when the circumstances are serious, Party A has the rights to terminate the agreement and require Party B to compensate for all the losses from this.

	  	
13.7

	
When the agreement expired, if Party B fairly performs the agreement without breach the agreement, Party B owns the rights to first renew the agreement.

 

  

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14.

	
Quality Control

The products produced by Party B should be examined by Party A, once be qualified, the products could be launched in the market. Party would send technical staff to perform inspection and conduction unscheduled.

	
15.

	
Contract Renewal

If Party B performs the agreement fairly and trustworthy within the agreement period, and pay various kinds of fees on schedule, Party A could not terminate the agreement at will. If this causes the loss of Party B, Party A should compensate Party B for all the losses. When the agreement expired, if both parties have the cooperation intention, Party B has the rights to first renew the agreement. But Party B should make the written application to Party A 60 days before the agreement expired and pay the royalty fee for the next agreement year.

	
16.

	
Bankruptcy and Default

	  	
16.1

	
If Party B dose not perform the production and distribution of the agreement products within two months after the agreement went into force, Party A could inform Party B of terminating the agreement through written notice.

	  	
16.2

	
If Party B entered into the bankruptcy proceedings or could not perform normal operation, the agreement shall automatically expire. Party B would have no right to continue to use the related “trademark”, “name” and the company name without the written permission from Party A after the agreement terminated. Party B also could not sell and manage the agreement products as well as the packing materials.

 

	
17.

	
Term and Termination

The term of the agreement hereby granted shall be effective for one year after the agreed credibility margin and the royalty fee fully paid to Party A by Party B, dates from March 10, 2008 to March 9, 2009. The agreement terminates under the circumstances as follow.

 

	  	
17.1

	
If either of the two parties breaches the agreement, once found, the other party should inform the opposite party by written within 10 days after found and asks the opposite party to correct the actions of breaching the agreement. Unless the default party correct their actions within 10 days after notification and compensate all the losses caused by this to please the opposite, or the opposite party has the rights to terminate the agreement.

	  	
17.2

	
The failure of implementation of the obligation by Party B within 30 days due to force majeure, the other party has the rights to unilaterally inform terminating the agreement by written.

	  	
17.3

	
Party B does not pay the royalty fee as required.

	  	
17.4

	
The products produce by Party B has the quality problems and then be corrected within the term given by Party A, but still do not correct as required.

	  	
17.5

	
Party B sells the products out of the designed zone.

	  	
17.6

	
Party B makes the malevolent low price dumping of the products.

	  	
17.7

	
Party B prints the packages without holding the “production authorization” from Party A.

	  	
17.8

	
Party B establishes the subsidiaries, offices or allows other person to perform the above actions in the name of Party A without the written permission from Party A.

	  	
17.9

	
Party B produces the age liquor without the written permission from Party A.

	  	
17.10

	
Party B willfully infringes upon the sales network of Party A’s main brand products.

	
18.

	
Influence by Terminating the Agreement

Any unsettled liabilities, or the damages request by one party for the default of the other party before the termination of the agreement will not be affected by the termination of the agreement.

	
19.

	
This Agreement is in quadruplicate with the equal legal effect and each party holds two copies.

	
20.

	
As to the unaccomplished matters, both parties shall make further consultation and sign a complementary agreement which has the equal legal effect with this agreement.

	
21.

	
Any dispute arises out of this contract is to be settled through friendly negotiation, or shall conduct legal action from local Court in the place where the agreement performed.

	
22.

	
Place of Agreement Performance: Xi’an city, Shaanxi province

 

  

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Party A:

	
Party B:

	
Address:

	
Address: Spark Avenue, Shangqiu, Henan

	
Contact Number:

	
Contact Number: 13837009288 / 0370-299888

	
Opening Bank:

	
Opening Bank:

	
Account Number:

	
Account Number:

	
Representative:  Lei Ruijuan

	
Representative: Li Hongsheng

	 	 
	Date:   April 11, 2008	Date:

 

  

6cdkg_ex1046.htm

EXHIBIT 10.46

 

Assets lease agreement

This agreement is signed by the following two Parties:

Lessor:  Shaanxi Sanjiu Dukang Liquor Production Co., Ltd. (hereinafter referred to as Party A)

Residence:  Dukang Town, Bai Shui County, Shaanxi Province

Legal representative:

Lessee:  Shaanxi Bai Shui Du Kang Liquor Co., Ltd. (hereinafter referred to as Party B)

Residence:  Dukang Town, Bai Shui County, Shaanxi Province

Legal representative:

 

In view that:

	
1.

	
Party A and Party B are both the effective surviving business entity which is established according to the China’s existing relevant laws and regulations, and holds the Business License for Enterprise as a Legal Person issued by Industrial and Commercial Administrative Department.

	
2.

	
In order to get out of the operating predicament in recent years, Party A plans to take the approach of lease operation, to vitalize its efficient assets and realize the inflation-proofing and appreciation of state-owned property.

	
3.

	
Party B agrees to lease the assets of Party A, and takes use of its own advantages to develop the local liquor-making industry.

In order to make the rights and obligations of Party A and Party B clear, and protect the legitimate rights and interests of both sides, as for the related matters involved in the process of asset lease, based on the principle of equality and voluntariness, Party A and Party B agree to the following agreement by consensus:

Article 1: Prerequisite

1.1  In order to maintain the brand value of “Bai Shui Du Kang” and respect the historical tradition, all activity in production which are carried out by Party B through taking use of the leased assets of Party A must be carried out in Bai Shui County, Shaanxi Province without any change.

 

1.2  After the lease of asset of Party A, Party B will still process tax registration and fulfill the obligation of tax payment according to law in Bai Shui County.

 

 

1

 

 

Article 2: The range of object in lease

Lessor renting out, and lessee renting all assets located in Dukang town, Bai Shui County, Shaanxi Province (hereinafter referred to as lease assets), which originally belongs to Party A.

 

Article 3: Rents, lease term and lease commencement date

3.1 The lease commencement date of this Lease Agreement shall be the date that all the leased assets have been transferred to Party B.

 

3.2 The time limit of this Lease Agreement shall be 20 years, which is calculated from the lease commencement date. If the lease term expired, it can be extended with written agreement of both sides by consensus.

3.3 The annual rents of assets rented by Party B shall be RMB100, 000.

Article 4: Priority

4.1 After the lease term stipulated by this Lease Agreement expired, under the same conditions, Party B enjoys the priority in leasehold.

4.2 During the period of executing the agreement or after the lease term stipulated by this Lease Agreement expired, under the same conditions, Party B enjoys the priority in preemption.

Article 5: Basic conditions of leased assets

5.1 The basic conditions of leased assets described here means that the relevant situation which above leased assets should have possessed to maintain the normal production and operation needs of Party B.

5.2 Party A should ensure that above leased assets have been provided with water supply and drainage system, fire-extinguishing system, ventilation system, power supply system, heating system and other systems which can meet the normal production and operation needs.

5.3 If according to the actual needs of production and operation, Party B needs to increase, improve, cultivate and maintain the related accessory equipment/facilities or logistics guarantee and service system, Party B should notice Party A in written 10 days in advance.

5.4 Party A should take all necessary and reasonable measures to guarantee the good basic condition of leased assets.

Article 6: Rights and obligations of Party A

6.1 Rights of Party A:

 

  

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6.1.1 According to the provision of Agreement, Party A has the rights to charge for rents from Party B, and to require that Party B should remit the rents to the nominated bank account on schedule;

6.1.2 If Party B does not pay for the rents under this Agreement on schedule, and still does not fulfill the payment obligations within 15 days upon receiving the written payment notice from

Party A, Party A has the right to receive the interest of outstanding fees from Party B at the loan interest rate of bank over the same period.

6.2 Obligations of Party A:

6.2.1 Party A should guarantee that, they enjoy the ownership and rental rights for the above leased assets.

6.2.2 Party A should guarantee that, there is no any current or potential third-party liability (including but not limited to mortgage) on the above leased assets.

Party A also should guarantee that, during the lease term, they shall not make the leased assets involving in any legal action, arbitration, administrative penalty or other legal proceedings because of their own activities.

6.2.3 Party A should guarantee that, they shall deliver the leased assets to Party B for use until the date later than lease commencement date stipulated by this Agreement, and shall take all essential actions to make the leased assets (including logistics guarantee and service system and accessory equipment/facilities) be in a normal and good condition.

6.2.4 During the lease term, Party A shall assume the responsibility for all kinds of tax bearing and other expenses related to leased assets; however, unless otherwise provided in national laws and regulations, Party A shall comply with the relevant requirements of national laws and regulations.

6.2.5 Party A should guarantee that, the quality of the leased assets measure up to the normal production and operation standard of the country.

6.2.6 The obligations Party A should undertake according to the provisions of other Article in this Agreement.

6.2.7 During the lease term, other obligations which are not expressly provided in this Agreement should be fulfilled by Party A in accordance with the practical situation and principle of honesty and credibility.

6.2.8 Party A agrees to firstly dispose or sell the existing current assets after trade-in to Party B.

 

  

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Article 7: Rights and obligations of Party B

7.1 Rights of Party B

7.1.1 Party B has the right to take over the leased assets on schedule according to the requirement of this Agreement, and to use properly the office building (including logistics guarantee and service system and accessory equipment/facilities) during the lease term for the purpose of production and operation.

7.1.2 According to the requirement of this Agreement, Party B has the right to maintain the leased assets as necessary.

7.1.3 During the lease term, Party B enjoys the ownership for the fixed assets which were invested in the leased area for the purpose of production and operation.

7.1.4 Within the term of validity of this Agreement, if Party A transfers the ownership of leased assets, under the same conditions, Party B enjoys the priority in preemption; when the lease term expired, if Party A continues to rent out the leased assets, under the same conditions, Party B enjoys the priority in leasehold.

7.2 Obligations of Party B

7.2.1 Party B should guarantee that, they shall use the leased assets (including logistics guarantee and service system and accessory equipment/facilities) in a reasonable way according to the requirements of this Agreement.

7.2.2 Party B shall pay up the rents of current year before January 31 per year. Party B shall also remit the above rents to the nominated bank account by Party A.

7.2.3 Party B should guarantee that, all kinds of leased facilities are in a good condition, and do not conduct any man-made damage on them.

7.2.4 During the lease term, Party B cannot engage in the activities forbidden by the laws and regulations of People’s Republic of China, cannot carry out any business or activities which are likely to do harm to Party A, and cannot make use of leased assets to carry out any other unlawful activities.

7.2.5 Without the written consent of Party A, Party B cannot sublet the leased assets to other third-party or use together with other third-party on his own authority.

7.2.6 After the lease term expired, if Party A and Party B do not reach the written consent over the extension, Party B should retrocede the leased assets to Party A, except for the leased assets which are lost and damaged resulting from reasonable wear and tear.

7.2.7 After the lease term expired, if Party A and Party B do not reach the written consent over the extension, Party B could transfer the ownership of attached production and operation equipment to Party A, and could require proper compensation from Party A, or Party B could demolish and recover.

 

  

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7.2.8 The obligations Party B should undertake according to the provisions of other Article in this Agreement.

7.2.9 During the lease term, other obligations which are not expressly provided in this Agreement should be fulfilled by Party B in accordance with the practical situation and principle of honesty and credibility.

7.2.10 Under the same condition, Party B should have the priority to purchase and use the current assets of Party A according to the production and operation.

Article 8: Transfers of assets and personnel placement

8.1 Within 5 days after the this Agreement become effective, Party A should transfer the leased assets to Party B. the two parties should sign together on the Transferring List of Leased Assets as appendix of this Agreement.

8.2 Party B should employ the staff of Party A based on the principle of taking up a job through competition and enrolling the excellent people.

Article 9: Termination of the Agreement

9.1 The Agreement would be terminated due to the following situation:

9.1.1 The two parties reach an agreement to terminate this Agreement within the lease term.

9.1.2 Because one Party violates the obligations it should undertake under this Agreement or the obligations stipulated by laws and regulations of the country, which cause that this Agreement cannot or is unnecessary to be fulfilled, the other Party can terminate this Agreement.

9.1.3 The two parties are confronted with the force majeure in the process of fulfillment of this Agreement, which cause that this Agreement cannot or is unnecessary to be fulfilled.

9.2 If this Agreement is terminated due to the second terms of previous Articles, the right to compensation of innocent party would not be affected.

Article 10: Responsibility of breach of contract

10.1 If one Party does not fulfill the obligations it should undertake under this Agreement, which cause losses to the other Party, they shall be liable for compensation in accordance with law, unless otherwise provided by this Agreement.

10.2 If this Agreement is unable to be fulfilled, and both of two Parties are in fault, they shall bear their respective liabilities according to their own fault.

 

  

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Article 11: Force majeure

11.1 Either Party who is unable to fulfill all or part of this Agreement, or delays the execution of this Agreement owing to the force majeure, should notice the other Party of the circumstance in written within 30 days beginning from the date of force majeure event, and provide an document for evidence explaining the reason of its inability to execute or delay the execution of all or part of this Agreement within 60 days be later than the date of force majeure event.

The Party who is confronted with force majeure will be exempt from legal liability within the range of document for evidence.

11.2 The Party who is confronted with force majeure should take all necessary measures to reduce the losses, and recover the fulfillment of this Agreement after the elimination of the event, unless otherwise provided in this Agreement.

11.3 The force majeure provided in this article refers to the unforeseeable and insurmountable objective events, including but not limited to natural disaster, such as flood, earthquake, fire disaster, storm, debris flow, epidemic of plague and so on; and to social events, such as war, civil commotion, strikes, etc; and to certain actions of government.

Article 12: Change of Agreement

If in the execution of this Agreement, the related Articles need to be amended owing to the change of objective situation, is should be modified in written after consensus of two Parties.

Article 13: Notification

13.1 The notice or communication required or allowed by this agreement, no matter what way it is delivered, will be effective beginning from the date when the party to be notified actually receives it.

13.2 If any party changes their address of notice or communication, it should notice the other party of the new address within 3 days after its change.

13.3 “Actually received” means that the content of notice or communication reached to the legal address or residence or the range of designated communication address of notified Party.

Article 14: Subsequent legislation

Unless expressly provided by the law itself, the subsequent legislation and changes in law do not have any retrospective effect on this Agreement. Two parties can modify or supplement this Agreement by consensus in written according to the subsequent legislation and changes in law.

 

  

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Article 15: Solution to disputes

If two Parties are in disputes for the explanation or execution of the related articles in this Agreement, the solution to disputes should be friendly negotiation. If the two Parties do not reach the written agreement after negotiation, the either Party may bring a suit directly before a people's court that have jurisdiction over the suit.

Article 16: Attachment of Agreement

15.1 The attachment of this Agreement includes all kinds of other supplementary agreement or modification agreement related to and signed in the execution of this Agreement, including but not limited to, List of Leased Assets, and Transferring List of Leased Assets.

15.2 The content of the attachment of this Agreement may not be inconsistent with the principle or spirits embodied in this Agreement or other content in this Agreement. The inconsistent part shall be invalid.

15.3 The attachment of this Agreement enjoys the equal legal validity with this Agreement. The legal liability that violates the attachment of this Agreement may consult the specific regulations applicable to the attachment of Agreement as well as the related regulations applicable to this Agreement.

Article 17: Signing of agreement

17.1 This Agreement shall be signed by the legal representative of two Parties and be affixed with their respective official seal, and also be notarized by notary organ within 3 days.

17.2 This Agreement shall be effective beginning from the date of notarization.

Article 18: Explanation of agreement

The headings of each article in this agreement are solely used for the convenience of the parties and have no effect on the meaning of the article to which the headings belong.

Article 19:

The reserved copy which enjoys the same legal effect is in quadruplicate. Each party holds one original of the Agreement, and the other two are put on record.

  

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(This page is intentionally left blank.)

 

 

 

 

  

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Party A: Shaanxi Sanjiu Dukang Liquor Production Co., Ltd. (seal)

Legal representative: XV ZHONG TIAN (seal)

 

Party B: Shaanxi Bai Shui Du Kang Liquor Co., Ltd. (seal)

Legal representative: WANG YONG SHENG (seal)

                                                   March 4, 2002

 

 

  

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Notarial Certificate to Creditor Right Document with Effectiveness

 of Forcible Execution

(2002) Lin Weinan, Certificate, Economical, No. 213

This certificate hereby certifies that the legal representative of Shaanxi Sanjiu Dukang Liquor Production Co., Ltd., Zhongtian Xu signs the above “Assets Lease Agreement” with the legal representative of Shaanxi Bai Shui Du Kang Liquor Co., Ltd., Wang Yongsheng on March, 4th, 2002 in Xiang Long Hotel, Weinan province.

The signing action of both parties conforms to the “General Principles of the Civil Law of the People's Republic of China” rule No. 55. The signatures and the seals appears on the said agreement are verified true.

In accordance with the rules of “Civil Procedure Law of The People's Republic of China”, “Provisional Regulations on Notarization of The People's Republic of China” and the “Rules of Notary Procedure (trial)”, this certification is be possessed of the effectiveness of forcible execution.

The notary office, Lin Wei district, Weinan, Shaanxi province, The People's Republic 0f China

Notary: Zhang Tao

March, 5th, 2002 (seal)

 

  

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Shaanxi Bai Shui Du Kang Liquor Co., Ltd.:

In accordance with the Shaanxi Province higher people's courts (2001) Shaanxi Economic trial No. 14 paper of civil judgment, all the assets and debts of Shaanxi Sanjiu Dukang Liquor Production Co., Ltd. are expropriated to the County People's Government. The County People's Government accepts and continuously executes the operating lease contract and the trademark buy out contract signed between Shaanxi Bai Shui Du Kang Liquor Co., Ltd. and original Shaanxi Sanjiu Dukang Liquor Production Co., Ltd. After expropriating the assets and debts, and in accordance with the above two contacts clauses, both parties re-sign the operating lease contract and the trademark buy out contract. The fees have been paid in accordance with the said two contacts will not be charged again. This certificate attaches as the exhibit of the original contact.

Shaanxi Baishui County People's Government (seal)

July, 23th, 2002

  

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