THIS BONUS PAYMENT AGREEMENT Entered into as of the 7th day of October, 2010 BETWEEN:
Exhibit 10.3
Entered into as of the 7th day of October, 2010
BETWEEN:
Xx. Xxxx Xxxxx Xxxx, is the CEO of Kun Ming Xxx Xxxx Xxxx Pharmacies Co (“XYT”) and the Chairman and CEO of a First China Pharmaceutical Group, Inc.
(“Wang”)
AND:
First China Pharmaceutical Group, Inc. a publically traded company traded under the symbol FCPG
(“FCPG”)
WHEREAS:
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A.
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FCPG wishes to retain Wang as the CEO of XYT and the Chairman and CEO of FCPG; and
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B.
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FCPG and Wang wish to enter into a Bonus Payment Agreement for their mutual benefit and subject to the terms outlined in this Agreement.
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NOW THEREFORE in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:
1.0 FCPG agrees to pay Wang a bonus payment of two percent (2%) of the quarterly gross sales of XYT, as calculated and disclosed in the financial statements of XYT included in the consolidated financial statements of FCPG.
2.0 The bonus payment shall be made to Wang on a quarterly basis, within fifteen (15) days after the filing of a Form 10-K or Form 10-Q with the SEC containing financial statements of FCPG unless otherwise instructed by Wang.
3.0 The bonus payment shall be made to Wang shall not exceed one and a half million US Dollars ($1,500,000) each fiscal year.
4.0 At his sole discretion, Xxxx xxx reduce or modify the amount due to him as long as it does not exceed, two percent (2%) of the quarterly gross sales of XYT, as calculated and disclosed in the financial statements included in the consolidated financial statements of FCPG.
5.0 This Agreement may be executed in counterparts.
IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first above written.
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/s/ Xxxxxxx X. Xxx
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Xx. Xxxxxxx X. Xxx
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On behalf of the Board of First China Pharmaceutical Group, Inc.
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/s/ Zhen Xxxxx Xxxx
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Xx. Xxxx Xxxxx Xxxx
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