Jatenergy Limited announced that it has signed a Distribution Agreement with Ocker Products Pty Ltd. for the non-exclusive distribution of JAT dairy products in China for the next three years. OPP is based in Australia and has a strategic partnership with Beijing Grain Group Co Ltd. ("BGG") and Beijing JingLiang Logistics Co Ltd. ("BJL") to procure food and farm produce on behalf of BGG and BJL. The Distribution Agreement between JAT and OPP is to facilitate OPP meeting orders which it receives from BGG and BJL. OPP will receive orders from BJL for specific dairy and other products. Upon receiving an order, OPP will place a corresponding order with JAT for the same product. The main products to be sold under the Distribution Agreement will be dairy products including full cream, skim milk and goats' milk powders. JAT expects to receive orders for both packaged goods and for raw materials. JAT intends to fulfil orders for packaged goods through its ANMA dairy manufacturing facility in Melbourne, subject to any capacity constraints. JAT will fulfil orders for raw materials through its sources within Australia and overseas. OPP have agreed, in the first year of the Distribution Agreement, to purchase a minimum of AUD 80 million of JAT's dairy products and any other products supplied by JAT. No minimum amount has been specified in the Distribution Agreement for years 2 and 3. JAT has been advised by Ocker that BGG purchased volumes of products from sources outside China during calendar 2018 of far greater than the amount proposed to be supplied by JAT. Accordingly, JAT believes there is a real opportunity for it to fulfil orders greater than AUD 80 million per year subject to it obtaining additional funding and increasing its manufacturing capacity. JAT further believes that, should it meet the supply requirements under the Distribution Agreement in the first year, it is likely to achieve sales in subsequent years significantly greater than AUD 80 million. The material terms of the Distribution Agreement include: the termt is for three years, commencing 17 January 2020; each order made is subject to and conditional upon an order being received by OPP from BJL; OPP agrees to purchase AUD 80 million of JAT dairy products in the first year of the Distribution Agreement (subject to corresponding orders being received from BJL). There are no specific remedies in the event that OPP does not purchase a minimum of AUD 80 million in the first year; JAT is to offer all products to OPP at the best market price; OPP has the right to extend the term of the Distribution Agreement provided it gives written notice within two months of the expiration of the agreement; and OPP will provide a transferable letter of credit for the full amount of each order.