Exhibit 99.5
(English Translation)
SECURITY DEPOSIT AGREEMENT
Party A: The People’s Government of Qianhong Village, Lin’an, Zhejiang Province (“Party A”)
Party B: Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd. (“Party B”)
Party A and Party B enter into the following agreement pursuant to relevant laws and regulations on land administration in the People’s Republic of China:
1. | Party B intends to launch an herbal plantation project in Qianhong Village. |
2. | Party A agrees to lease state-owned industrial land of 28 Mu and forestry land of 295 Mu to Party B for its planning and use. |
3. | Lease price and payment: Party B shall lease the industrial land for RMB 300,000 per Mu (RMB 8,400,000 total) for a term of 30 years. Party B shall also lease the forestry land for RMB 73,220 per Mu (RMB 21,600,000 total) for a term of 30 years. Party A shall be responsible for coordinating with the relevant local government and residents for the transfer of land. All lease amount shall be payable in a one-time payment. |
4. | During the term of the lease, Party B may sublease or subcontract the land according to its actual need, and Party B shall be entitled to any revenue generated from such sublease or subcontract. |
5. | Within one month from executing this Agreement, Party B shall pay a security deposit of RMB 7,000,000, which amount shall be applied toward the registered capital of a new company subordinate to Party B (the “New Company”). The New Company shall pay taxes in Qianhong Village in accordance with the relevant tax laws and regulations. |
6. | Tax Exemptions: Party B shall be entitled to such tax exemptions that are applicable to leading agricultural and plantation companies in accordance with relevant government regulations. |
7. | This Agreement shall become effective upon execution. This Agreement shall be executed into four duplicates. Each party shall hold two duplicates. |
Party A: [signature and stamp] The Government of Qianhong Village, Linan, Zhejiang Province
Party B: [signature and stamp] Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd.
February 27, 2010.