EXHIBIT 10.40
English translation of Agreement dated June 3,
2008 by and between Beijing Liang
Fang Pharmaceutical Co., Ltd., a Chinese limited
liability company,
and Cha You Qian Qi Economy
Commission.
Agreement
Party A: Cha You Qian Qi Economy
Commission
Party B: Liang Fang Pharmaceuticals Limited
Liability Corporation
Party B has the intention that they want to make the
investment to construct pharmaceuticals industrial garden in party
A’s Cha Ha Er industrial garden district and manufacture and
sell pharmaceuticals (raw material, mass liquids, Chinese medicine
extracting, small water needle, medicinal corn starch and solid
preparation etc.), health products, cosmetics etc.. Based on both
parties’ equal discussion, both parties agree to sign the
following agreement:
I. Based
on the inspecting and reasoning of party B, party B decides to
establish and register Liang Fang Pharmaceuticals (Inner Mongolia)
Limited Liability Corporation in party A’s Cha Ha Er
industrial garden district. The total investment is 500 million
RMB. The purpose of the investment is to develop and construct
pharmaceuticals, health products, cosmetics and advanced process
for corn project. Funding will be paid by installment: first
period: 180 million RMB, second period: 120 million RMB, third
period: 200 million RMB.
II. According to
the party B’s project plan, Party A will provide party B 600
MU land for the purpose of construction and 400 MU land for the
purpose of reservation. The fee for land sale and licensure (all
included) is 0.18 million RMB/MU. The land is located on the north
of Cha Ha Er Industrial Garden District You Yi Road and on the west
of Cha Ha Er Road. Please read the attachment for the detail of
location.
III. Party
B’s project must meet the Cha Ha Er industrial garden
district’s general plan requirement. The project will be
implemented after party A oversee and finish the process of
environment protection review and institute the project.
IV. Party B
can construct self-reserved water source project to meet the water
demand of the project. Party A will not impose fee for water
resource, waste and other relative supplies for 30 years. Party A
will give party B specific benefit for land use tax for 5 years
based
