THIS IS WHAT HAPPENED.......BALLER JV........Hammer
WHEREAS, THE PARTIES, referenced desire to enter into a business venture whereas “NGCG” will exclusively manage and arrange, or facilitate the production, manufacturing and shipping of Mucho Macho Products to consist of Mucho Macho Pork Rinds, Mucho Macho Spicy Peanuts, Mucho Macho Salsa line and Mucho Macho Hot Sauce (hereafter be collectively referred to as “MM Products”). These MM Products will be shipped to “NANJIAZHAI“ from time to time in accordance to the schedule and quantity as provided by “NANJIAZHAI”, who will, upon receipt, further deliver to various distribution channels throughout the exclusive sales territory as stated below, or repackaged for pre-packaged food sales for airlines, railways, universities and vending machines. It is also understood the pre-tax net profits from said co-venture shall be split (50/50) between “NGCG” and “NANJIAZHAI”.
The Parties agree to the following terms and conditions:
The term of this said co-venture is 5 (five) years, with a 5 (five) year renewable term already slated.
During the term of this co-venture, “NANJIAZHAI” has the exclusive rights to sell, repackage and distribute MM Products in China, Taiwan, Japan, Thailand and Vietnam (hereafter referred to as “the exclusive sales territory”); “NANJIAZHAI” will purchase MM Products only from “NGCG” for sales in the exclusive sales territory NGCG” will sell MM Products to the exclusive sales territory only through “NANJIAZHAI”.
The MM Products shipped to “NANJIAZHAI“ will be paid by bank wire or irrevocable letter of credit in accordance to standards as set by the International Chamber of Commerce; payment terms of which will be further agreed by the Parties.
The minimum sales target on a best effort basis of this co-venture is US$8,000,000 (United States Dollars Eight Million) in the first 15 (fifteen) months of the signed agreement, and US$10,000,000 (United States Dollars Ten Million) in year 2 and US$12,000,000 (United States Dollars Twelve Million) in year 3 and beyond.
“NGCG” will provide all marketing support, graphic design to enhance and support the Asian Markets. In addition, “NGCG” will create all packaging graphics and POS graphics at their own costs.
“NGCG” will, at their own costs, create all the flavor profiles as needed to meet regional flavor profiles in the different regions throughout Asia.
Hubei Nanjiazhai Agri-Tech Ltd Incorporation Certificate with Registration Number
JV AGREEMENT NGCG - CHINA Page 1
