![[exhibit10a002.gif]](exhibit10a002.gif)
Agreement Regarding the Collective Responsibilities of
the Contractors
Between
Party
A: China Huaren Organic Products, Inc. (“CHRN”) and
Jilin Province Huaren Organic Products Co. Ltd. (the
“Company”)
Representative: Jinzhong Fang
And
Party
B: Haizhen Li, Daiwei Zhang, Qinrao
Shi, Xiufang Zhang and Shouyu Lian (collectively as
“Management”).
Representative: Haizhen Li
The
above parties (the “Parties”) hereby do enter into a
business relationship founded on the principles of equality and
mutual benefit in respect to the operation of the Company. This
Agreement sets forth and standardizes the rights and obligations of
each of the Parties during the course of this relationship. Both
Parties are equally bound by the terms of this Agreement.
Article One: The purpose of the Agreement:
1.1 The
Company is a subsidiary of CHRN, a public company listed for
trading in the United States. Therefore, both parties shall
obey by the laws in both the United States of America and China in
the business and capital operations of the Company. The terms of
the Agreement are to be interpreted according to the Contract Law
of the People’s Republic of China .
1.2 Haizhen Li shall be the Chief Executive Officer of
the Company during the contract period. He and the other
members of the Management shall be the Directors of the
1
Company. The Management shall pursue the management
objectives set forth in this agreement and any other agreements
made in the future between the Board of Directors of CHRN and the
Management.
1.3 The Board of Directors of CHRN shall thoroughly
inspect the work reports and financial statements monthly,
quarterly, and annually prepared by the Management. During the
contract period, either Party may raise objection and terminate the
Agreement in the event of any violation of any law or any term of
this Agreement. If it gives notice of termination, the objecting
Party shall make clear its objection to the offending Party, point
out its responsibilities and specify the compensation for damages
associated with the violation.
Article Two: Target Revenue and Compensation
2.1 Target Revenue .
|
|
|
Period
|
Sales
revenue target (RMB Yuan)
|
|
8
th Aug.-Dec. 2007
|
15
million
|
|
Jan.
– Dec. 2008
|
65
million
|
|
Jan.
– Dec. 2009
|
130
million
|
|
Jan.
– Dec. 2010
|
260
million
|
|
Jan.
– Dec. 2011
|
500
million
|
2.2
Cash Compensation As compensation for its services
during the contract period, Management shall be entitled to retain
from the revenue of the Company a “Management Fee.”
The Management Fee will equal the sum of (a) the net
after-tax earnings of the Company calculated in accordance with
U.S. GAAP but before deduction of the Management Fee, less (b) the
“Profit” shown in the table below, less (c) the
expenses of CHRN itemized in Article Nine of this agreement.
The members of Management shall allocated payment of the
Management Fee among themselves as they decide from time to time.
The table below indicates the monthly and annual
“Profit” that must be achieved by the Company before
any Management Fee will be earned by Management.