Document:

ex10-16.htm

Exhibit 10.16

Memorandum

(unofficial English Translation)

Party A: Heilongjiang Senyu Animal Husbandry Co., Ltd.

Legal Representative: Shang Zhenyu

Party B: Harbin Golden Lotus Inc.

Legal Representative: Li Xinqiang

Party C: Heilongjiang Wangda Feedstuff Inc.

Legal Representative: Dou Beijun

During the performance of the Cooperation Agreement entered into by and between Party A and Party C on October 11, 2007 and the Swine Exclusive Sales Contract entered into by and between Party A and Party B, the three parties agrees that, in order to ensure the "Company Base + Farmers" production mode go on wheels, regarding the details on executing the mode, Party A, Party B and Party C enter into the memorandum as follows:

	
Article 1

	
After sale of breeding pigs, Party B shall notify Party C with Information Contact Form, which shall includes addresses and telephone of the farmers Party B agrees to sell feedstuff in credit, as well as the quantity, days, weight and variety of the breeding pigs.

	
Article 2

	
After receiving the Information Contact Form from Party B, Party C shall promptly contact the farmers, check the information of the Information Contact Form with the farmers, and enter into Credit Sales Contract with farmers.  Party C shall establish Customer Service Registration Form, which shall include the detailed information of the customer.  Party C shall also deliver feedstuff and make Feedstuff Credit Sales Certificate within 7 days after piglet is born, which shall indicate the quantity, variety, time, batch of the credit sales and other important information and shall be signed by the farmers in order to smoothly complete the delivery work.  The basic content of the Credit Sales Contract shall be confirmed according to the Cooperation Agreement entered into by Party C and Party A.

	
Article 3

	
In the last ten-day of each month, Party C shall report to Party A regarding the Feedstuff Advance Payment Plan of next month. Party A shall checking the plan after receiving it; if Party A does not have objection, it shall transfer the feedstuff payment within the first 5 business days of each month.

	
Article 4

	
Party C shall make Commercial Pig Repurchase Confirmation Form, which shall include the quantity, weight, amount, time, absent quantity and other information of the repurchasing, the form shall have the signature of the farmer for the parties to check.

  

  

  

	
Article 5

	
Before the commercial pigs are repurchased, Party C shall inform Party A the time and place of the repurchasing, and inform Party A the repurchasing amount and quantity of the commercial pigs in the way of Payment Application Form; the personnel of Party A shall arrive the agreed repurchasing place in time, check the weight, quality level, and quantity of the commercial pig and fill such information into Live Pig Repurchase Settlement Certificate, which shall be signed by the personnel of Party A and Party C on spot and of which each party shall have one copy; the certificate shall be used as the settlement evidence between Party A and Party C.

	
Article 6

	
The three parties agree that, the confidentiality of all the customer resource of Party B and Party C shall be strictly kept among three parties, if any party breach the contract, such party shall undertake relevant legal liability.

	
Article 7

	
This memorandum is a supplementary agreement among the three parties.

Party A, Party B and Party C shall abide by the above articles.

Party A: Heilongjiang Senyu Animal Husbandry Co., Ltd.

(Stamp)

[Stamp of Party A here]

Party B: Harbin Golden Lotus Economy Trade Co., Ltd.

(Stamp)

[Stamp of Party B here]

Party C: Heilongjiang Wangda Feedstuff Co., Ltd.

(Stamp)

[Stamp of Party C here]

Date: March 24, 2008ex10-17.htm

Exhibit 10.17

 

 

Supplementary Agreement

(unofficial English Translation)

Agreement Serial Number: No. SY (2008)

Party A: Heilongjiang Senyu Animal Husbandry Co., Ltd.

Legal Representative: Shang Zhenyu

Party B: Heilongjiang Wangda Feedstuff Inc.

Legal Representative: Dou Beijun

Party C: Harbin Golden Lotus Inc.

Legal Representative: Li Xingqiang

Based on the Memorandum entered into by the three parties, with the principal of friendly cooperation, Party A, Party B, and Party C enter into this supplementary Agreement, and the parties shall abide by it:

1. Party A confirms that only the farmers who satisfy the following conditions may enter the "Company Base + Farmer" production mode system: 1. more than 1 breeding pig and 15 sows; 2. produces more than 300 commercial pigs per year.  Party C shall filter the farmers according to such conditions from its customers, register the farmers who is willing to join the "Company Base + Farmer" production mode system, fill in Information Contact Form and inform Party B, Party A allow Party C to sell feedstuff by credit sale only to the farmers registered in the Information Contact Form.

2. While Party B sells the feedstuff in credit, it shall establish the Customer Service Registration Form as well, registering the quantity of purchasing breeding pigs, the quantity of gravid pigs, the time of bearing, and based on the form, making production plan and Feedstuff Advance Payment Plan (the plan shall be based on each gravid pig have 10 living piggies), Party A shall transfer feedstuff advance payment to Party B according to Feedstuff Advance Payment Plan.  After the date on which Party A first transfers the feedstuff advance payment, each 5 months shall be counted as a production period.  During each production period, the recycling rate of commercial pig of Party B shall not be lower than 95%, and the part lower than 95% shall be made up in the following month.  If in certain production period, the recycling rate of commercial pig is lower than 90%, Party A has the right to collect Customer Service Registration Form from Party B and send staff to directly check with the farmer.

  

  

  

3. If the recycling rate of commercial pig is lower than 95%, and after examination the low recycling rate is caused by the falsification of Party B, Party A has the right to terminate the contract and ask Party B to pay a penalty equal to 10% of the feedstuff advance payment that has been paid by Party A in the given month.

4. If the recycling rate of commercial pig is lower than 90% and Party B refuses to assist the examination of Party A, Party A has the right to terminate the contract and ask Party B to pay a penalty equal to 10% of the feedstuff advance payment that has been paid by Party A in the given month.

5. The "recycling rate of commercial pig" in this agreement means after each production period ends, the quantity of actual recycling commercial pig ÷ the quantity of living piggies in the Feedstuff Advance Payment Plan of the current production period × 100%.

6. If there is any sales contract between Party A and other customers, which is entered into before the execution of the Breeding Pig Exclusive Agreement by and between Party A and Party C, has not been fully performed, Party A can continue performing such sales contract.

7.  Party C shall not conduct any falsification; otherwise, if any falsification of Party C damages the interest of Party A, Party A has the right to terminate all the cooperation with Party C and ask Party C to pay a penalty equal to 10% of the payment that has been paid by Party C.

8. This Supplementary Agreement shall have three original copies, each Party A, Party B and Party C shall have one original copy, each copy shall have the same force.

Party A: Heilongjiang Senyu Animal Husbandry Co., Ltd.

(Stamp)

[Stamp of Party A here]

[Signature of Shang Zhenyu here]

Party B: Heilongjiang Wangda Feedstuff Co., Ltd.

(Stamp)

[Stamp of Party B here]

[Signature of Dou Beijun here]

Party C: Harbin Golden Lotus Economy Trade Co., Ltd.

(Stamp)

[Stamp of Party C here]

[Signature of Li Xingqiang here]

March 26, 2008, in Jiamusi City, Heilongjiang Provinceex10_1.htm

Exhibit 10.1

 

SECOND AMENDMENT TO LEASE

THIS SECOND AMENDMENT TO LEASE ("Second Amendment") is entered into as of this 6th day of May, 2011 by and between VERNON ASSOCIATES, LLC, a California limited liability company ("Lessor"), and OVERHILL FARMS, INC., a Nevada corporation ("Lessee").

R E C I T A L S:

A. Lessee and Lessor entered into that certain Standard Industrial/Commercial Single-Tenant Lease--Net dated as of January 1, 2002, including that certain Addendum to Standard Industrial/Commercial Single-Tenant Lease – Net attached thereto (collectively, “Original Lease”), as amended by that certain First Amendment to Lease dated June 12, 2006 (“First Amendment”) (collectively, the Original Lease and First Amendment are the "Lease") whereby Lessor leased to Lessee and Lessee leased from Lessor that certain one story tilt up warehouse building of approximately 147,210 square feet on land, including various access easements, more particularly depicted on Exhibit “A” attached to the Original Lease and that certain single story concrete block warehouse building of approximately 25,000 square feet (including a yard area adjacent thereto), more particularly depicted on Exhibit “A” attached to the First Amendment (collectively, the "Premises") and located and addressed at 2727 and 2657 E. Vernon Avenue, Vernon, California, respectively.

 

B. Pursuant to Section 3 of the Lease, Lessee exercised its option to the extend the term of the Lease.

 

C. Lessor and Lessee desire to amend the Lease to reflect the extension of the term of the Lease, the agreed upon Base Rent adjustment for the extended term, and to otherwise modify the Lease as hereinafter provided.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Capitalized Terms.  All capitalized terms used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms of this Second Amendment.

 

2. Lease Term.  Notwithstanding anything to the contrary contained in the Lease, the Expiration Date shall be September 30, 2016.

 

3. Base Rent.  Effective October 1, 2011, the Base Rent for the entire Premises shall be $95,244.47.

 

4. Base Rent Adjustments.  Effective October 1, 2011, Section 2 of the Addendum to the Original Lease shall be deleted in its entirety and of no further force or effect and replaced with the following:

 

 

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“2.1           On April 1, 2014 (“Rent Increase Date”), the monthly Base Rent payable under this Lease shall be adjusted by the increase, if any, from the “Base Month,” as such term is specified below, in the Consumer Price Index of the Bureau of labor Statistics of the Department of Labor for All Urban Consumers (1982-1984=100), “All Items,” for Los Angeles-Riverside-Orange County (herein referred to as “C.P.I.”).

 

2.2           The monthly Base Rent payable as of the Rent Increase Date pursuant to this Lease shall be calculated as follows:  $95,244.47 shall be multiplied by a fraction, the numerator of which shall be the C.P.I. for the calendar month of January, 2014 and the denominator of which shall be the C.P.I. for the calendar month which is July, 2011 (“Base Month”).  The sum so calculated shall constitute the new monthly Base Rent hereunder, but, in no event, shall such new monthly Base Rent be less than the Base Rent payable for the month immediately preceding the rent adjustment.

 

2.3           In the event the compilation, format, components and/or publication of the C.P.I. shall be transferred to any other governmental department or bureau or agency, shall be changed or shall be discontinued, then the index most nearly the same as the C.P.I. shall be used to make such calculation.  In the event that Lessor and Lessee cannot agree on such alternative index, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall be binding upon the parties, notwithstanding one party failing to appear after due notice of the proceeding.  The cost of said Arbitrators shall be paid equally by Lessor and Lessee.

 

2.4           Lessee shall continue to pay the Base Rent at the rate previously in effect until the increase, if any, is determined.  Within five (5) days following the date on which the increase is determined, Lessee shall make such payment to Lessor as will bring the increased Base Rent current, commencing with the effective date of such increase through the date of any Base Rent installments then due.  Thereafter, the Base Rent shall be paid at the increased rate.”

 

5. No Further Options.  Section 3 of the Addendum to the Original Lease is hereby deleted in its entirety and of no further force or effect.

 

6. No Further Modifications.  Except as set forth in this Second Amendment, all of the terms and provisions of the Lease shall apply and shall remain unmodified and in full force and effect.

 

[balance of page intentionally left blank - signatures begin on next page]

 

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IN WITNESS WHEREOF, this Second Amendment has been executed as of the day and year first above written.

 

	 LESSOR:	VERNON ASSOCIATES, LLC,	 
	 	 a California limited liability company	 
	 	 	 
	
 

	
By: 

	/s/ Edward Elsner	 
	 	 Its:	 Managing Member	 
	 	 	 	 
	 	 	 	 

 

 

	 LESSEE:	OVERHILL FARMS, INC.,	 
	 	 a Nevada corporation	 
	 	 	 
	
 

	
By: 

	/s/ Jim Rudis	 
	 	 Its:	Chairman, President & CEO	 
	 	 	 	 
	 	 	 	 

 

	
 

	
By: 

	/s/ Tracy E. Quinn	 
	 	 Its:	CFO	 
	 	 	 	 
	 	 	 	 

 

 

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