Document:

Unassociated Document

 

Enshi Black Hog Xianfeng County Production Base Construction

 

Cooperation Agreement

 

Party A: Animal Husbandry and Veterinary Bereau of Xianfeng County, Hubei Province

 

Party B: Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. (the “Company”)

 

In order to fully utilize the local breeder resources in Enshi and build a high quality local breed brand of Hubei Province, and improve local hog farmers’ income and the Company’s development, Party A and B agree to construct a black hog production base in Enshi to develop high quality black hog meat. The details of the agreement are as follow:

 

	
  

	
I.

	
The responsibilities and obligations of Part A

 

	
  

	
a.

	
Party A agrees to have Party B construct a black hog production base in Enshi and will provide breeder subsidies, sow insurance, breeding discount loan and nursing area and other  favored policies to support and assist the construction.

 

	
  

	
b.

	
Party A has to comply with the industry standards to do industry planning, skill promotion, disease control and quarantine inspection.

 

	
  

	
c.

	
Party A agrees that Party B can bring in/input its resources into the construction base, which need to be comply with National Regulation,

 

	
  

	
d.

	
Party A should provide supervision and instruction of production development to Party B to realize the cooperative goal.

 

	
  

	
e.

	
Party A should supervise and overseas Party B to purchase the Enshi Black Hog production according to this Cooperation Agreement.

 

	
  

	
II.

	
The responsibilities and obligations of Part B

 

	
  

	
a.

	
Party B will provide fund and set up a branch of Wuhan Agricultural Science and Agricultural Science and Technology Development Co., Ltd. to supervise and guide the construction of Enshi Black Hog production base.

 

	
  

	
b.

	
To satisfy the needs of production and imported new breeder hog, Party B should invest in building or acquire the standardized hog farms for breeding and expansion of the Enshi Black hogs.

 

	
  

	
c.

	
Party B agrees to purchase all the Enshi Black Hog products back from the Cooperation parties at a reasonable price. The parties have agreed that a reasonable price is the market price of common lean-type pork from time to time plus 0.6 RMB/kg, provided that the price paid shall not be less than 13RMB/kg.

 

	
  

	
d.

	
Party B should guarantee for the cooperatives producers of the breeder hogs when there is a need for fund during production development.

 

	
  

	
e.

	
Provide feed at a lower price than industry level for a similar feed category.

 

	
  

	
III.

	
Obligations for both Parties

 

	
  

	
a.

	
Complete the Enshi Black Hog production base with capacity of 200,000 hogs within 2 years.

 

	
  

	
b.

	
Party A agrees not to accept any other hog farm companies outside of Xianfeng County to raise Enshi Black Hog in Xianfeng County within the term of this contract.

 

  

  

  

 

	
  

	
c.

	
The property rights of the demonstrated farms constructed by Party B( no less than 10 farms in 2011) belongs to Party B and the professional cooperative farms have the priority to use the farms without any cost .  After the completion of these demonstrated farms, Party A should provide subsidies in an amount of one-third of the construction expenses and the farmers should provide another one-third of the amount as the asset risk deposit (amortized within10 years). All the activities will be under supervision of Party A.

 

	
  

	
IV.

	
Terms of Agreement

 

The term of this Cooperation Agreement is 10 years, from 04/01/2011 to 03/31/2021, and can be renewed.

 

	
  

	
V.

	
This Agreement is in quadruplicate; each party obtained two copies, and will take effect after these are signed.

 

 

 

Party A:  Animal Husbandry and Veterinary Bereau of Xianfeng County (seal)

 

Legal Representative: (signature)

 

Date:  4/2/2011

 

 

Party B: Party B: Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. (seal)

 

Legal Representative: (signature)

 

Date:  4/2/2011Unassociated Document

 

Enshi Black Hog Construction Cooperation Agreement

 

Party A: Qiming Hog Farming Professional Cooperatives of Xianfeng County

 

Party B: Wuhan Fengze Agricultural Science and Technology Development Co., Ltd.

 

Witness: Animal Husbandry and Veterinary Bureau of Xianfeng County of Hubei Province

 

 

In order to utilize the black breeder hog resources in Enshi and build a high quality hog meat image, Party A and B reach an agreement to form a hog breeding cooperatives (or join currently exist hog breeding cooperatives) and share the contribution of capital half-and-half under the premise of sharing the profit and risks, but responsible for its own loss. The details of the agreement are as follow:

 

 

	
  

	
I.

	
The production scales of these cooperatives should not be less than 600 sows and the farmer who will join these cooperatives should have no less than 6 sows or should produce no less than 100 black hogs per year.

 

	
  

	
II.

	
The breeder under the transition period of breeder mating will be a temporary mix. The final breeder mix will be designated by Party B after approved by the local government department.

 

	
  

	
III.

	
Party B agrees to purchase all qualified products produced at the professional cooperatives of Xianfeng; and the Cooperative should sell its products to Party B exclusively. The parties have agreed that a reasonable price is the market price of common lean-type pork from time to time plus 0.6 RMB/kg, provided that the price paid shall not be less than 13RMB/kg.

 

	
  

	
IV.

	
Party A and B agree to form the Hog Breeding Professional Cooperative (the “Cooperative”) and share the contribution of capital equally (50:50).

 

	
  

	
V.

	
Both Parties will form a synthetic financial department under the direct management of Director to manage the financial activates and each cooperative will have an accountant.

 

	
  

	
VI.

	
Both the Cooperative and hog farmers who joined should comply with the following rules: 1) unification of breeding mix; 2) standardization of operating processes; 3) standardization of medicine and vaccine supplies; 4) standardization of ages and lowest weights of hogs sold; 5) unification of purchase price from hog farmers.

 

	 	
VII.

	
To ensure the product safety and comply with the environmental regulation, each cooperative has to build product quality retrieve system with the assistance from local animal husbandry and veterinary bureau.

 

	 	
VIII.

	
Party B should pay RMB¥20/per hog as the labor fee to the Cooperative as its revenue.

 

	 	
IX.

	
The term of this Cooperation Agreement is 10 years, from 04/05/2011 to 03/31/2021

 

  

  

  

 

	 	
X.

	
For the renovation or expansion of the hog farmers’ facilities, each hog farmer can volunteer to participate or not. If the hog farmer is willing to participate, it will need to get approval from both the Witness and party B. Part B will be responsible for providing the expense of construction first. The location will be decided by the Witness and renovation or expansion should comply with the requirements of Part B, and be established based on the scale of production. The property rights of the facilities after construction belong to Party B and the cooperatives have the use rights of the facilities, and the hog farmers have the priority use rights.  After the completion of these constructions, the Witness should provide subsidies in an amount of one-third of the construction expenses and the hog farmers should provide another one-third of the amount as the asset risk deposit (amortized within10 years).

 

	
  

	
XI.

	
Party B should be the guarantor for the hog farmers when there is a need for fund during production development and the interest expenses will be subsidized by local government.

 

	
  

	
XII.

	
Obligations:

 

A. Obligation of Party A

 

	
  

	
1.

	
Responsible for providing and distributing goods and materials to every hog farmer belongs to the Cooperative.

 

	
  

	
2.

	
Providing instruction of production management and disease prevention

 

	
  

	
3.

	
Retrieving products

 

	
  

	
4.

	
Managing the fixed and current assets of each hog farmer

 

B. Obligation of Party B

 

	
  

	
1.

	
Have the rights to participate in the management and instruction of the Cooperative.

 

	
  

	
2.

	
Periodically purchase the qualified products produced by the Cooperative.

 

	
  

	
3.

	
Periodically provide goods, materials and free technical instruction.

 

	
  

	
4.

	
Frequently listen to the Cooperative’s opinions.

 

	 	
XIII.

	
The liabilities before this Agreement are assumed by each party.

 

	 	
XIV.

	
Penalty of Breach: The party who breach this agreement will be responsible for the economic loss of the other party.

 

	 	
XV.

	
After the agreement of both parties, there can be a supplemental agreement to this one with the same legal validity.

 

	 	
XVI.

	
There are three copies of this Agreement and will take effect after these are signed.

 

 

Party A: Qiming Hog Farming Professional Cooperatives of Xianfeng County (seal)

 

Representative: (signature)

 

Date: 04/02/2011

 

 

Party B: Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. (seal)

 

Representative: (signature)

 

Date: 04/02/2011

 

Witness: Animal Husbandry and Veterinary Bureau of Xianfeng County of Hubei Province

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