Document:

exhibit10-1.htm

Exhibit 10.01

Distribution Agreement

Signing Place:Xi’an

Party A:Shaanxi Qiyiwangguo Modern Organic Agriculture Co., Ltd.

 

Party B:Beijing Ni’aode Trading Co., Ltd.

 

	
I.  
	
Both Parties agree that being an exclusive distributor, Party B should meet the following conditions:

 

	
1  
	
Party B warrants that sales of branded “Hedetang” products of Party A should reach at least RMB 4,200,000 yuan per month and RMB 50,400,000 yuan per year.

	
2  
	
Upon the aforesaid conditions being satisfied, Party B will be authorized as an exclusive distributor in the Beijing area,and a certificate will be issued.

	
3  
	
During the valid period of this contract, Party B will present itself as a general distributor to sell the contracted products and conduct legal business activities.

	
4  
	
Use of authorized title and symbol

	
a.  
	
Without the authorization of Party A, Party B will not make any changes to the authorized title and symbol.

	
b.  
	
Authorized title and symbol can be used only by Party B. Without the permission of Party A,Party B has no rights to permit the use of a third Party.

	
II.  
	
Sales area

 

Party A authorizes Party B to sell and market the product only in Beijing and Party B may not sell out of the authorized area.

 

	
III.  
	
Price policy

 

            Party B will purchase at the national uniform price set by Party A(see exhibit for detailed information)

 

	
IV.  
	
Market support and sales reward

 

	
1  
	
In order to support market exploration, Party A will give a 5% cash back discount of purchase volume, 5% for sample, 10% for free.

	
V.  
	
After the completion of the sales target, Party A will give Party B a bonus of 3% of actual sales.

 

	
VI.  
	
Payment and transportation

 

	
1  
	
Party A will deliver the products according to the purchase order. Any disputes,including breed,specification,quantity,or
quality,must be raised in writing within 7 days after the products have been received. No objection raised by the due date will be regarded as no objection to the products. Party A will deal with the objected products after being confirmed by Party A.

	
2  
	
 Party A is responsible for transporting the cargo to Party B’s location and carriage charge. The transporting standard is subject to railway or truck.

	
3  
	
Party B should check and take delivery of the cargo within 3 days upon receiving the Transport Company or Party A’s notice. Otherwise Party B will hold the related cost and fee.

	
4  
	
Party B should pay all the payment to Party A within 45 days after receiving cargo. Party B should pay the liquidated damage if Part B fails to take delivery of the cargo on time. The liquidate damage is 3‰ of the amount delayed for each day it is delayed.

  

-1-

  

	
VI.  
	
Payment and transportation

 

	
1  
	
Party A will deliver the products according to the purchase order. Any disputes,including breed, specification,quantity,or quality,must
be raised in writing within 7 days after the products have been received. No objection raised by the due date will be regarded as no objection to the products. Party A will deal with the objected products after being confirmed by Party A.

	
2  
	
 Party A is responsible for transporting the cargo to Party B’s location and carriage charge. The transporting standard is subject to railway or truck.

	
3  
	
Party B should check and take delivery of the cargo within 3 days upon receiving the Transport Company or Party A’s notice. Otherwise Party B will hold the related cost and fee.

	
4  
	
Party B should pay all the payment to Party A within 45 days after receiving cargo. Party B should pay the liquidated damage if Part B fails to take delivery of the cargo on time. The liquidate damage is 3‰ of the amount delayed for each day it is delayed.

VI. Termination of the agreement

 

Should any of the following happen, Party A has the right to terminate the agreement without the consent of Party B.

	
5  
	
Party B does not achieve the lowest set sales volume goal for a three month period, or Party A does not achieve the sales goal for 80% of the whole year.

	
6  
	
Party B conducts sales outside of the authorized area.

	
7  
	
If Party B’s actions are cause for complaint, and damage Party A’s goodwill.

	
8  
	
Party B does not make the payment under this agreement.

	
9  
	
Party B defaults on one of its agreements, and breaks other responsibilities and obligations.

	
10  
	
Special natural disaster and other Force Majeure.

VII. The agreement will go into effect when both parties have signed and will end on January 7, 2011. If the two parties agree to extend the agreement, they can sign the new agreement.

VIII. Settlement of dispute

Based on the understanding of this agreement, both parties will settle the dispute in a friendly, business-like way. If they are unable to settle the dispute, they will sue at the local people's court of law.

IX. Signatures of the agreement.

There are two copies of this agreement, with both parties maintaining a copy, and each has the equal force of the law.minndak100175_ex10s.htm - Generated by SEC Publisher for SEC Filing

Exhibit 10(s)

Loan No. RIA685S01F

 

REVOLVING CREDIT SUPPLEMENT

 

THIS SUPPLEMENT to the Master Loan Agreement dated June 24, 2004 (the “MLA”), is entered into as of December 11, 2009 between CoBANK, ACB (“CoBank”) and MINN-DAK FARMERS COOPERATIVE, Wahpeton, North Dakota (the “Company”), and amends and restates the Supplement dated October 23, 2008 and numbered RIA685S01E.

 

SECTION 1. The Revolving Credit Facility. On the terms and conditions set forth in the MLA and this Supplement, CoBank agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed $45,000,000.00 at any one time outstanding (the “Commitment”). Within the limits of the Commitment, the Company may borrow, repay and reborrow.

 

SECTION 2. Purpose. The purpose of the Commitment is to finance the operating needs of the Company.

 

SECTION 3. Term. The term of the Commitment shall be from the date hereof, up to and including December 31, 2010, or such later date as CoBank may, in its sole discretion, authorize in writing.

 

SECTION 4. Interest. The Company agrees to pay interest on the unpaid balance of the loan(s) in accordance with one or more of the following interest rate options, as selected by the Company:

 

(A)        One-Month LIBOR Index Rate. At a rate (rounded upward to the nearest 1/100th and adjusted for reserves required on “Eurocurrency Liabilities” [as hereinafter defined] for banks subject to “FRB Regulation D” [as hereinafter defined] or required by any other federal law or regulation) per annum equal at all times to 2.50% above the rate quoted by the British Bankers Association (the “BBA”) at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, as published by Bloomberg or another major information vendor listed on BBA’s official website on the first “U.S. Banking Day” (as hereinafter defined) in each week, with such rate to change weekly on such day. The rate shall be reset automatically, without the necessity of notice being provided to the Company or any other party, on the first “U.S. Banking Day” of each succeeding week, and each change in the rate shall be applicable to all balances subject to this option. Information about the then-current rate shall be made available upon telephonic request. For purposes hereof: (1)”U.S. Banking Day” shall mean a day on which CoBank is open for business and banks are open for business in New York, New York; (2) “Eurocurrency Liabilities” shall have the meaning as set forth in “FRB Regulation D”; and (3) “FRB Regulation D” shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

 

(B)        Quoted Rate. At a fixed rate per annum to be quoted by CoBank in its sole discretion in each instance. Under this option, rates may be fixed on such balances and for such periods, as may be agreeable to CoBank in its sole discretion in each instance, provided that: (1) the minimum fixed period shall be 30 days; (2) amounts may be fixed in increments of $500,000.00 or multiples thereof; and (3) the maximum number of fixes in place at any one time shall be ten.

 

(C)        LIBOR. At a fixed rate per annum equal to “LIBOR” (as hereinafter defined) plus 2.50%. Under this option: (1) rates may be fixed for “Interest Periods” (as hereinafter defined) of 1, 2, 3, or 6 months as selected by the Company; (2) amounts may be fixed in increments of $100,000.00 or multiples thereof; (3) the maximum number of fixes in place at any one time shall be ten; and (4) rates may only be fixed on a “Banking Day” (as hereinafter defined) on three Banking Days’ prior written notice. For purposes hereof: (a) “LIBOR” shall mean the rate (rounded upward to the nearest sixteenth and adjusted for reserves required on “Eurocurrency Liabilities” [as hereinafter defined] for banks subject to “FRB Regulation D” [as herein defined] or required by any other federal law or regulation) quoted by the British Bankers Association (the “BBA”) at 11:00 a.m. London time two Banking Days before the commencement of the Interest Period for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Company; as published by Bloomberg or another major information vendor listed on BBA’s official website; (b) “Banking Day” shall mean a day on which CoBank is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are open for business in New York City and London, England; (c) “Interest Period” shall mean a period commencing on the date this option is to take effect and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3, or 6 months thereafter, as the case may be; provided, however, that: (i) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in which case it shall end on the preceding Banking Day; and (ii) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant month; (d) “Eurocurrency Liabilities” shall have meaning as set forth in “FRB Regulation D”; and (e) “FRB Regulation D” shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

 

 

 

 

Revolving Credit Supplement RIA685S01F

MINN-DAK FARMERS COOPERATIVE

Wahpeton, North Dakota

 

 

The Company shall select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing interest at the variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate period, interest shall automatically accrue at the variable rate option unless the amount fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, rates may not be fixed for periods expiring after the maturity date of the loans. All elections provided for herein shall be made electronically (if applicable), telephonically or in writing and must be received by CoBank not later than 12:00 Noon Company’s local time in order to be considered to have been received on that day; provided, however, that in the case of LIBOR rate loans, all such elections must be confirmed in writing upon CoBank’s request. Interest shall be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and shall be payable monthly in arrears by the 20th day of the following month or on such other day in such month as CoBank shall require in a written notice to the Company; provided, however, in the event the Company elects to fix all or a portion of the indebtedness outstanding under the LIBOR interest rate option above, at CoBank’s option upon written notice to the Company, interest shall be payable at the maturity of the Interest Period and if the LIBOR interest rate fix is for a period longer than three months, interest on that portion of the indebtedness outstanding shall be payable quarterly in arrears on each three-month anniversary of the commencement date of such Interest Period, and at maturity.

 

SECTION 5. Promissory Note. The Company promises to repay the unpaid principal balance of the loans on the last day of the term of the Commitment. In addition to the above, the Company promises to pay interest on the unpaid principal balance of the loans at the times and in accordance with the provisions set forth in Section 4 hereof. This note replaces and supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory note set forth in the Supplement being amended and restated hereby.

 

SECTION 6. Letters of Credit. If agreeable to CoBank in its sole discretion in each instance, in addition to loans, the Company may utilize the Commitment to open irrevocable letters of credit for its account. Each letter of credit will be issued within a reasonable period of time after CoBank’s receipt of a duly completed and executed copy of CoBank’s then current form of Application and Reimbursement Agreement or, if applicable, in accordance with the terms of any CoTrade Agreement between the parties, and shall reduce the amount available under the Commitment by the maximum amount capable of being drawn thereunder. Any draw under any letter of credit issued hereunder shall be deemed a loan under the Commitment and shall be repaid in accordance with this Supplement. Each letter of credit must be in form and content acceptable to CoBank and must expire no later than the maturity date of the Commitment.

 

SECTION 7. Security. The Company’s obligations hereunder and, to the extent related hereto, the MLA, shall be secured as provided in the Security Section of the MLA, including without limitation as a future advance under any existing mortgage or deed of trust.

 

SECTION 8. Amendment Fee. In consideration of the amendment, the Company agrees to pay to CoBank on the execution hereof a fee in the amount of $50,000.00.

 

SECTION 9. Commitment Fee. In consideration of the Commitment, the Company agrees to pay to CoBank a commitment fee on the average daily unused portion of the Commitment at the rate of 0.375% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month. Such fee shall be payable for each month (or portion thereof) occurring during the original or any extended term of the Commitment.

 

IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly authorized officers as of the date shown above.

 

	
CoBANK, ACB

	
 

	
MINN-DAK FARMERS  COOPERATIVE

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Michael Tousignant

	
 

	
By:

	
/s/ David H. Roche

	
Title:  

	
Vice President

	
 

	
Title:  

	
President

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