THIS
CONSULTING SERVICES AGREEMENT (the “Agreement”) is made and entered into by
and between Coast to Coast Equity Group, a Florida corporation (“Consultant”),
with its principal place of business at 0000 Xxxx Xxxxxx Xxxxxxx, Xxxxxxxxx, Xxxxxxx
00000; and Yangling Daiying Biological Engineering Co., Ltd., a Shaanxi corporation with
its principle place of business at 13 floor of apartment A, Jiezuo Plaza, FengYe New City,
Xi’an Hi-tech Development Zone, P.R.China6 710075 , now temporarily to be known
as China Biotech & Pharmaceutical Corp., (China Biotech and Consultant being
hereinafter collectively referred to as the “Parties” and generically as a
“Party”).
PREAMBLE:
WHEREAS,
Consultant is in the business of providing services to public companies pertaining to
dissemination of information to their shareholders and the investment community, as
required by the Exchange Act, for purposes of improving such public companies’
capital-raising abilities and in order to provide liquidity in the trading of their
securities, and assisting in locating equity or debt funding; and
WHEREAS,
China Biotech desires to develop a program for dissemination of information pursuant to
its obligations under the Exchange Act in compliance with the restrictions on
dissemination of material inside information contained in proposed Regulation FD, current
Sections 20 and 21A of the Exchange Act, and in compliance with the requirements of
Section 17(b) of the Securities Act, and deems it to be in its best interest to retain
Consultant to render to China Biotech such services as may be needed; and
WHEREAS,
China Biotech requires assistance in improving and expanding its relationship with the
various members and components of the investment community for purposes of facilitating
its capital-raising abilities and providing liquidity in the trading of its securities;
and
WHEREAS,
Consultant is ready, willing and able to render such services to China Biotech as
hereinafter described on the terms and conditions more fully set forth below:
NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth in this
Agreement, and for other good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged, the Parties agree as follows:
WITNESSETH:
Consulting Services.
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A. |
1.
China Biotech hereby retains Consultant as an independent contractor to China
Biotech, and Consultant hereby accepts and agrees to such retention. |
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2. Consultant
will render to China Biotech the following services as an independent
services consultant. |
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3. Consultant
will assist China Biotech to: |
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a. |
Disseminate information pursuant to its obligations under the Exchange Act in
compliance with the restrictions on dissemination of material inside information
in compliance with the requirements of Section 17(b) of the Securities Act of
1933, as amended (the “Securities Act”); and |
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b. |
Arrange and/or locate potential sources of equity or debt capital from business
contacts in the investor relations and shareholder information arena gained from
Consultant’s general business activities. Consultant is not in the business
of seeking capital for companies nor is Consultant engaged in the distribution
of securities or in the business of effectuating securities transactions. |
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a. |
Provide liaison services to China Biotech with respect to China Biotech’s
relationships with unaffiliated third parties; |
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b. |
Help to organize and disseminate corporate information to potential investors as
part of its investor relations services; |
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c. |
China Biotech has full and complete authority during the term of this Agreement
to appoint a legal counsel in connection with the preparation, completion and
filing of all corporate and securities documents on behalf of China Biotech.
China Biotech shall bear all costs in this regard which belong to the
expenditures of the new entity after reorganization and going public. This shall
include the authority to Edgarize and oversee all SEC filings; |
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5. Consultant
shall reach the aim of this Agreement as to complete all application
formalities for China Biotech’s(public company)going public in US and
commitment of $4 million funding for China Biotech. |
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6. Consultant
will not directly or through intermediaries, perform any activities that
would constitute violations of federal or applicable state securities or
other laws either on behalf of China Biotech or Consultant. |
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B. |
1.
It is acknowledged and agreed by China Biotech that Consultant carries no
professional licenses and is not rendering legal advice, performing
accounting services or acting as an investment advisor or broker-dealer
within the meaning of applicable state and federal securities laws. |
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2. It
is further acknowledged and agreed by China Biotech that the services to be
provided to China Biotech hereunder are presently not contemplated to be
rendered in connection with the offer and sale of securities in a
capital-raising transaction, such as would require registration as a
broker or dealer in securities under applicable state or federal
securities laws. |
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3. The
services of Consultant will not be exclusive to China Biotech nor will
Consultant be the sole consultant company appointed by China Biotech. But
Consultant shall guarantee the above service to be exercised and fulfilled
on schedule. |
Independent Contractor.
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A. |
1.
Consultant agrees to perform its consulting duties hereto as an “independent
contractor” as that term is defined under the Internal Revenue Code. |
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2. Nothing
contained herein will be considered as creating an employer-employee
relationship between the Parties to this Agreement. |
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B. |
The
Parties acknowledge and agree that Consultant shall guarantee to conduct its
operations and provide its services in a professional manner in
accordance with good industry practice and applicable laws, using its
best efforts and guarantee the consultant work to be completed on
schedule. |
Time, Place and Manner
of Performance.
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A. |
Consultant
will be available for advice and counsel to the officers and
directors of China Biotech at such reasonable and convenient times
and places as may be necessary or agreed upon. |
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B. |
Except
as aforesaid, the time, place and manner of performance of the services
hereunder, including the amount of time to be allocated by Consultant
to any specific service, will be put into schedule by Consultant and
exercised upon consent from China Biotech. |
Term of Agreement.
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A. |
This
Agreement is for an initial term of six (6) months from date of full execution.
The
Parties can discuss the renewal of the Agreement at due time on the basic consideration of
whether the consulting services are adaptable for the development of China Biotech. China
Biotech is free to choose other cooperating companies after expiration of the Agreement. |
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B. |
This
Agreement may be terminated prior to the end of its initial term by China
Biotech & Pharmaceutical Corp. for cause, after providing
Consultant with specific written notice of the basis for such cause,
which, except as otherwise required by applicable law, shall be
limited to: |
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a. |
Any
willful breach of duty by Consultant; |
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b. |
Any
material breach by Consultant of its obligations under this Agreement; or |
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c. |
The
Consultant fails to fulfill the consulting obligations within the agreed time. |
Compensation and
Expenses.
Consultant shall be entitled to the
following compensation:
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A. |
One million four hundred thousand (1,400,000) shares of common stock for the
benefit of Consultant or its assigns to be held in escrow by Xxxxxx & Xxxxxx
LLP until completion of funding of four million USD ($4,000,000.00) within four
(4) months of the effective date of the registration statement on an appropriate
form filed with the Securities and Exchange Commission. Consultant shall not
participate directly or indirectly in the distribution of securities but instead
will only introduce China Biotech to potential debt or equity funding sources. |
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B. |
One million USD ($1,000,000.00) or any part not more than USD ($1,000,000.00)
thereof exceeding the $4,000,000.00 funding to be allocated for use by
Consultant for performing business related services on behalf of China Biotech
such as promotions and investor relations. |
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C. |
A service fee of 1.5% payable in a lump sum payment of the loan amount exceeding
$4,000,000.00 in the event Consultant provides a source of debt financing. |
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D. |
Three million (3,000,000) shares of China Biotech’s common stock, also
contingent upon the $4,000,000.00 funding set forth above and issued in
accordance with the specific terms and condition of Warrant Agreements to be
entered into simultaneously with this Agreement as outlined in the
Reorganization Agreement between Sun City Industries, Inc., a Delaware
corporation, and Yangling Daiyling Biological Engineering, Co., Ltd. The warrant
agreements are attached hereto as Exhibits A – D. |
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E. |
Consultant shall be entitled to the compensation set forth above including the
1,400,000 shares, options set forth in the Reorganization agreement and warrant
agreement, and the compensation stipulated in the term of Compensation and
Expenses (B) and (C) of this Agreement in the event consultant locates or
arranges said financing either through equity or debt. China Biotech shall
cooperate with consultant and if required shall provide as collateral for said
financing its assets and or stock including but not limited to its building or
property. If a loan commitment is obtained with current rates and terms the
company is obligated to take it but if refused by China Biotech, the shares and
warrants will be considered earned. |
Duties and Obligations
of China Biotech
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A. |
China Biotech will furnish to Consultant such current information and data as
necessary for Consultant to understand and base its advice to China Biotech, and
will provide such current information on a regular basis, including at a
minimum: |
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1. |
Financial Information: Current balance sheet, income statement, cash flow
analysis and sales projections; officers and directors resumes or curriculum
vitae; and, |
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2. |
Shareholder Information: Shareholder(s) list; debenture or preferred stock or
option or warrant agreements which may affect the number of shares to be issued
or outstanding, provided that Consultant may not sell, transfer
or use any of such information for any purpose other than performance of its
obligations under this Agreement. |
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B. |
China Biotech will furnish Consultant with full and complete copies of all
filings with all federal and states securities agencies, with full and complete
copies of all shareholder reports and communications whether or not prepared
with assistance of Consultant; with all data and information supplied to any
analyst, broker/dealer, market-maker, or any other member of the financial
community, including specifically most recently filed Form 10-KSB, Form 15c2(11)
or offering documents pursuant to the Securities Act. |
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C. |
During the term of this Agreement, China Biotech will notify Consultant of any
private or public offering of its securities, including those registered with
the Commission on Forms S-8 or Regulations S or A, at least one day prior to the
time they are filed, in order to permit Consultant to terminate any activities
that would violate China Biotech’s obligations under the Securities Act to
refrain from public information related activities during any so called
“quiet periods.” |
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D. |
China Biotech will be responsible for advising Consultant of any information or
facts which would affect the accuracy of any prior data and information
furnished to Consultant. |
Confidentiality.
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A. |
Consultant recognizes and acknowledges that it has and will have access to
certain confidential information and trade secrets of China Biotech and its
affiliates that is the valuable, special and unique assets and property of China
Biotech and such affiliates. |
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B. |
Consultant will not, during the term of this Agreement or thereafter, disclose,
without the prior written consent or authorization of China Biotech, any of such
information to any person, for any reason or purpose whatsoever. |
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C. |
In this regard, Consultant agrees that authorization or consent to disclose by
China Biotech may be conditioned upon the disclosure being made pursuant to a
secrecy agreement, protection order, provision of statute, rule, regulation or
procedure under which the confidentiality of the information is maintained in
the hands of the person to whom the information is to be disclosed or in
compliance with the terms of a judicial order or administrative process. |
Conflict of Interest.
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A. |
Subject
to its obligation to maintain the confidentiality of China Biotech’s
confidential or proprietary information, Consultant will be free to
perform services for other persons. |
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B. |
1.
Consultant will notify China Biotech in writing of its intent to perform
services for any other person when doing so is reasonably possible to
conflict with its obligations under the Agreement. |
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2. Upon
receiving such notice, China Biotech may terminate this Agreement or
consent to Consultant’s outside consulting activities. |
Disclaimer of
Responsibility for Acts of Other Party.
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A. |
1.
The obligations of Consultant described in this Agreement consist of the
furnishing of information and advice to China Biotech in the form of
services together with commitment of $4 million funding and completion of
all application formalities for the reorganized new entity’s going
public in US. |
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2. In
no event will Consultant be required by this Agreement to represent or make
management decisions for China Biotech. |
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3. All
final decisions with respect to acts and omissions of China Biotech or any
affiliates and subsidiaries, will be those of China Biotech or such
affiliates and subsidiaries, and Coast to Cost will under no circumstances
be liable for any expense incurred or loss suffered by China Biotech as a
consequence of such acts or omissions. |
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B. |
China
Biotech will not be responsible for policing the actions of Consultant or
its agents or employees, whether or not related to the services
provided under this Agreement but instead, is relying on the
directives in this Agreement that all actions undertaken by
Consultant or its agents or employees on behalf of China Biotech,
whether under this Agreement or otherwise, will be in full compliance
with all applicable laws and their implementing rules and
regulations, as well as in compliance with the legally recognized
rights of third Parties, whether pursuant to specific codes, statutes
or common law; consequently, China Biotech shall not be responsible
to anyone for any expense incurred or loss suffered by them as a
consequence of any acts or omissions by Consultant or its agents or
employees. |
Indemnification.
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A. |
China Biotech will protect, defend, indemnify and hold Consultant and its
assigns and attorneys, accountants, employees, officers and directors harmless
from and against all losses, liabilities, damages, judgments, claims,
counterclaims, demands, actions, proceedings, costs and expenses (including
reasonable attorneys’ fees) of every kind and character resulting from,
relating to or arising out of (a) the inaccuracy, non-fulfillment or breach of
any representation, warranty, covenant or agreement made by China Biotech; or
(b) any legal action, including any counterclaim, based on any representation,
warranty, covenant or agreement made by China Biotech herein; or (c) gross
negligence or willful misconduct by China Biotech. |
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B. |
Consultant will protect, defend, indemnify and hold harmless China Biotech and
its assigns and attorneys, accountants, employees, officers and directors
harmless from and against all losses, liabilities, damages, judgments, claims,
counterclaims, demands, actions, proceedings, costs and expenses (including
reasonable attorneys’ fees) of every kind and character resulting from,
relating to or arising out of (a) the inaccuracy, non-fulfillment or breach of
any representation, warranty, covenant or agreement made by Consultant; or (b)
any legal action, including any counterclaim, based on any representation,
warranty, covenant or agreement made by Consultant herein or (c) gross
negligence or willful misconduct by Consultant. |
Notices.
Any notices required or permitted to
be given under this Agreement will be sufficient if in writing and delivered or sent by:
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A. |
1.
Registered or Certified Mail to the principal office of the other Party,
postage prepaid with return receipt requested deposited in a proper
receptacle of the United States Postal Service or its successors. |
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2. Said
notice will be addressed to the intended recipient. |
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3. A
written notice sent in conformity with this provision will be deemed delivered
as of the date shown “delivered” on the return receipt; or, |
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B. |
1.
Transmitted by prepaid telegram or by telephone facsimile transmission if
receipt is acknowledged by the addressee; or |
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2. Notice
so transmitted by telegram or facsimile transmission will also be
effective if receipt of transmission is acknowledged by an appropriate
machine or written confirmation, and such notice will be deemed effective
on the next business day after transmission; or, |
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C. |
Notice
given in any other manner will be effective only if and when proven to
have been received by the addressee. |
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D. |
For
purposes of notice, the address of each Party will be the address first set
forth above; provided, however, that each Party will
have the right to change its respective address for notices hereunder
to another location by giving ten (10) days advance written notice to
the other Party in the manner set forth above. |
Miscellaneous Provisions.
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A. |
Any
waiver by either Party of a breach of any provision of this Agreement by the
other Party will not operate or be construed as a waiver of any
subsequent breach by any Party. |
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B. |
This
Agreement and the rights and obligations of Consultant hereunder may not be
assigned without the written consent of China Biotech. |
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C. |
It
is the intention of the Parties that: |
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1. |
This
Agreement and the performance hereunder and all suits and special
proceedings hereunder be construed in accordance with the laws of the
State of Delaware, other than those pertaining to conflict of law. |
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2. |
In
any action, special proceeding or other proceeding that may be brought
arising out of, in connection with or by reason of this Agreement, the
laws of the State of Delaware, other than those pertaining to conflict of
law, will be applicable and will govern to the exclusion of the law of any
other forum, without regard to the jurisdiction on which any action or
special proceeding may be instituted. |
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D. |
All
agreements and covenants contained herein are severable and in the event any
of them will be held to be invalid by any competent court, the
Agreement will be interpreted as if such invalid agreements or
covenants were not contained herein and the court will be, and is
hereby authorized by the Parties, to craft such alternative legally
enforceable provision in place of the one deemed unenforceable as
will most closely reflect the inferred intent of the Parties. |
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E. |
This
Agreement constitutes and embodies the entire understanding and agreement
of the Parties and supersedes and replaces all prior understanding,
agreements and negotiations between the Parties. |
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F. |
1.
Any waiver, alteration, or modification of any of the provisions of this
Agreement will be valid only if made in writing and signed by the Parties. |
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2. Each
Party hereto, may waive any of its rights hereunder without effecting a
waiver with respect to any subsequent occurrences or transactions hereof. |
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G. |
Any
controversy between the Parties involving any dispute or claim by, through
or under, or the construction or application of any terms, covenants, or
conditions of, this Agreement will, to the extent permitted by law, be
held in the State of Delaware, and all of the Parties executing this
Agreement consent to the jurisdiction of such courts and shall not
commence any action relating to this Agreement in any other jurisdiction. |
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H. |
1.
This Agreement may be executed simultaneously in two or more counterparts,
each of which will be deemed an original, but all of which taken together
will constitute one and the same instrument. |
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2. a.
Execution and delivery of this Agreement by exchange of facsimile copies
bearing the facsimile signature of a Party hereto will constitute a valid
and binding execution and delivery of this Agreement by such Party. |
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b. Such
facsimile copies will constitute enforceable original documents. |
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3. Notwithstanding
the foregoing, because China Biotech will file a copy of this Agreement with
the Commission as an exhibit under Item 601 of Commission Regulation SB, the
Parties will subsequently prepare a copy thereof bearing all of their manual
signatures, on which the one filed electronically with the Commission will be
based. |
IN WITNESS WHEREOF, the
Parties have duly executed and delivered this Agreement, effective as of the date set
forth above.
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Yangling Daiying Biological
Engineering Co., Ltd.
By: /s/ XxxXxx Xxx
XxxXxx Xxx, Chief Executive Officer
Coast to Coast Equity Group, Inc.
By: /s/ Xxxxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxxxx, President
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