Document:

Ex-4.1 Warrant Agreement

 

Exhibit 4.1

THIS WARRANT AND THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE
SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER
THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

August 26, 2005

WARRANT TO PURCHASE SHARES OF

COMMON STOCK OF

SinoFresh HealthCare, Inc.

     THIS CERTIFIES THAT for value received, CAM-Global, (together with successors and assigns, the
“Holder”), is entitled to subscribe for and purchase Twelve Thousand (12,000) shares (the “Shares”)
of Common Stock, no par value per share, of SinoFresh Healthcare, Inc., a Florida corporation (the
“Company”), at an exercise price per share of Common Stock equal to fifty-five cents ($0.55) (the
“Exercise Price”), subject to the provisions and upon the terms and conditions set forth herein.
This Warrant is being issued pursuant to that certain Project Agreement with the Company dated
August 1, 2005 (the “Agreement”).

     1. Term. This Warrant is exercisable at any time prior to August 26, 2010 (the
“Exercise Period”).

     2. Exercise of Warrant. There is no obligation to exercise all or any portion of the
Warrant. The Warrant (or any portion thereof) may be exercised at any time after the date hereof
only by delivery to the Company of:

          (a) Written notice of exercise in form and substance identical to Exhibit A attached
to this Warrant; and

          (b) Payment of the Exercise Price of the Shares being purchased, may be made by (1) cash or by
check, (2) cancellation of indebtedness of the Company to the Holder equal to the Exercise Price,
(3) a cashless exercise procedure pursuant to a formula (“Formula Cashless Exercise”), or (4) any
combination of the foregoing. In the event of a Formula Cashless Exercise, the Holder shall
surrender this Warrant to the Company with a written notice of the Holder’s intention to effect a
cashless exercise, including a calculation of the number of shares of Common Stock to be issued
upon such exercise in accordance with the terms hereof; and, in lieu of paying the Exercise Price
in cash, the Holder shall surrender this Warrant for that number of shares of Common Stock
determined by multiplying the number of Shares to which it would otherwise be entitled by a
fraction, the numerator of which shall be the difference between (i) the average Market Price per
share of the Common Stock for the five (5) Trading Days immediately prior to the date of delivery
of the cashless exercise notice to the Company

 

 

(the “Cashless Exercise Market Price”) and (ii) the
Exercise Price, and the denominator of which shall be the Cashless Exercise Market Price. As used
herein, “Market Price” means, as of any Trading Day, (i) the closing sale price for the shares of
Common Stock on the NASD OTC Bulletin Board (“OTCBB”) as reported by Bloomberg, or (ii) if the
OTCBB is not the principal trading market for the shares of Common Stock, the closing sale price on
the principal trading market for the Common Stock as reported by Bloomberg, or (iii) if market
value cannot be calculated as of such date on any of the foregoing basis, the Market Price shall be
the fair market value as reasonably determined in good faith by the Company’s Board of Directors.
As used herein, a “Trading Day” shall mean any day on which the Company’s Common Stock is traded
for any period on the OTCBB, or on the principal securities exchange or other securities market on
which the Company’s Common Stock is then being traded

     3. Issuance of Certificates. Upon the exercise of this Warrant, the issuance of
certificates for Shares underlying this Warrant shall be made forthwith, and such certificates
shall be issued (subject to the provisions of Section 4 hereof) in the name of, or in such names as
may be directed by, the Holder hereof; provided, however, that the Company shall not be required to
pay any tax which may be payable in respect of any transfer involved in the issuance and delivery
of any such certificates in a name other than that of the Holder, and the Company shall not be
required to issue or deliver such certificates unless or until the person or persons requesting the
issuance thereof shall have paid to the Company the amount of such tax or shall have established to
the satisfaction of the Company that such tax has been paid. The person or persons in whose
name(s) any certificate(s) representing Shares shall be issued upon exercise hereof shall be deemed
to have become the holder(s) of record of, and shall be treated for all purposes as the record
holder(s) of, the Shares represented thereby, and such Shares shall be deemed to have been issued,
immediately prior to the close of business on the date(s) upon which this Warrant is exercised.

     4. Restrictions on Exercise and Transfer.

          4.1 Exercise. As a condition to the exercise hereof, the Holder shall make any
truthful representation or warranty reasonably required to facilitate the application of any
exemption(s) from federal and state registration requirements in connection therewith.

          4.2 Holder’s Intent. The Holder of this Warrant, by acceptance hereof, represents and
warrants to the Company that such Holder is acquiring this Warrant and the Shares for investment
for the Holder’s own account and not with a view to, or for resale in connection with, any
distribution thereof.

          4.3 Transfer. Neither this Warrant nor the Shares have been registered under the
Securities Act, and none of the foregoing may be sold or transferred in whole or in part unless the
Holder shall have first given notice to the Company describing such sale or transfer and furnished
to the Company an opinion of counsel (which counsel and opinion (in form and substance) shall be
reasonably satisfactory to the Company) to the effect that the proposed sale or transfer may be
made without registration under the Securities Act.

          4.4 Legends. Each certificate representing Shares purchased hereunder shall bear the
following legends:

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THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT, OR
UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE,
SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED.

THE CORPORATION IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OF STOCK. THE
CORPORATION WILL FURNISH IN WRITING AND WITHOUT CHARGE TO EACH STOCKHOLDER
WHO SO REQUESTS A STATEMENT OF THE POWERS, DESIGNATIONS, PREFERENCES AND
RELATIVE PARTICIPATION, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF
STOCK AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTION OF SUCH PREFERENCES
AND/OR RIGHTS.

     5. Adjustment of Exercise Price and Number of Shares for Subdivision or Combination of
Common Stock.

          5.1 Adjustments.

               (1) Subdivision. In the event that the Company at any time or from time to time after
the date of this Warrant shall declare or pay any dividend on the shares of Common Stock payable in
shares of Common Stock or in any right to acquire shares of Common Stock, or shall effect a
subdivision of the outstanding shares of Common Stock into a greater number of shares of Common
Stock (by stock split, reclassification or otherwise), then the Exercise Price in effect
immediately prior to such event shall, concurrently with the effectiveness of such event, be
decreased proportionately.

               (2) Combination. In the event that at any time or from time to time after the date of
this Warrant the outstanding shares of Common Stock shall be combined or consolidated into a lesser
number of shares of Common Stock (by reclassification or otherwise), then the Exercise Price in
effect immediately prior to such event shall, concurrently with the effectiveness of such event, be
increased proportionately.

          5.2 Adjustment for Reclassification, Exchange, or Substitution. In the event of any
reorganization or any reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation or corporations or the conveyance of all or
substantially all of the Company’s assets to another corporation (except for any such transaction
which is treated as a liquidation, dissolution or winding up of the Company), this Warrant shall
thereafter be exercisable for the number of shares of stock or other securities or property
(including cash) to which a holder of the number of remaining Shares purchasable hereunder would
have been entitled upon the record date of (or date of, if no record date is fixed) such
reorganization, reclassification, consolidation, merger or conveyance; and, in any case,
appropriate adjustment (as determined by the Board of Directors) shall be made in the application
of the provisions herein set forth with respect to the rights and interests thereafter of the
Holder of this Warrant to the end that the provisions set forth herein shall thereafter be
applicable, as nearly as equivalent as is practicable, in relation to any shares of stock or the
securities or property (including cash) thereafter deliverable upon the exercise of this Warrant.

          5.3 Adjustment to Number of Shares Purchasable Hereunder. Upon each adjustment of the
Exercise Price pursuant to the provisions of this Section 5, the number of Shares purchasable upon

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the exercise hereof shall be adjusted to the nearest whole number of Shares calculated by
multiplying the Exercise Price in effect immediately prior to such adjustment by the number of
Shares purchasable upon the exercise hereof immediately prior to such adjustment and dividing the
product so obtained by the Exercise Price in effect immediately after such adjustment.

     6. Exchange and Replacement of Certificate.

          6.1 This Warrant is exchangeable without expense, upon the surrender hereof by the
registered Holder at the principal office of the Company, for a new Warrant of like tenor and date
representing in the aggregate the right to purchase the same number of Shares as are purchasable
hereunder in such denominations as shall be designated by the Holder hereof at the time of such
surrender.

          6.2 Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant, and, in case of loss, theft or destruction,
of indemnity or security reasonably satisfactory to the Company, and return and cancellation of
this Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor, in lieu
of this Warrant.

     7. Elimination of Fractional Interests. The Company shall not be required to issue
certificates representing fractions of Shares on the exercise of this Warrant, nor shall it be
required to issue scrip or pay cash in lieu of fractional interests, it being the intent of the
parties that all fractional interests shall be eliminated.

     8. Withholding Taxes.

          8.1 Whenever Shares are to be issued upon the exercise of this Warrant, the Company shall have
the right to require the Holder to remit to the Company in cash an amount sufficient to satisfy
U.S. federal, state and local withholding tax requirements, if any, prior to the delivery of any
certificate or certificates for such Shares.

          8.2 Notwithstanding Section 8.1, at the election of a Holder, subject to the approval of the
Board of Directors of the Company, when Shares are to be issued upon the exercise of this Warrant,
the Holder may tender to the Company a number of Shares, or the Company shall withhold a number of
such Shares, the fair market value of which is sufficient to satisfy the tax requirements, if any,
attributable to such exercise or occurrence.

     9. Reservation of Securities. The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for the purpose of
issuance upon the exercise of this Warrant, such number of shares of Common Stock as shall be
issuable upon the exercise hereof. The Company covenants and agrees that, upon exercise of this
Warrant and payment of the Exercise Price therefore, all Shares issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable.

     10. No Rights as Shareholders. Nothing contained in this Warrant confers or shall be
construed as conferring upon the Holder hereof the right to vote or to consent or to receive notice
as a shareholder in respect of any meetings of shareholders for the election of directors or any
other matter, or as having any rights whatsoever as a shareholder of the Company.

4

 

     11. Notices. All notices, requests, consents and other communications hereunder shall
be in writing and shall be deemed to have been duly made when delivered, when sent by a nationally
recognized overnight courier or when mailed by registered or certified mail, return receipt
requested:

          (a) If to the registered Holder of this Warrant, to the address of such Holder as shown on the
books of the Company; or

          (b) If to the Company, to SinoFresh HealthCare, Inc., 516 Paul Morris Drive, Englewood,
Florida 34223, Attention: Chief Financial Officer, or to such other address as the Company may
designate by notice to the Holder.

     12. Successors. All of the covenants, agreements, representations and warranties
contained in this Warrant shall bind the parties hereto and their respective heirs, executors,
administrators, distributes, successors and assigns.

     13. Headings. The headings in this Warrant are intended for convenience only and
shall have no substantive effect.

     14. Governing Law. This Warrant shall be construed and enforced in accordance with,
and governed by, the laws of the State of Florida, without giving effect to conflict of law
principles.

     15. Amendment . The provisions of this Warrant may be waived, amended,
supplemented or modified (either prospectively or retroactively) either (i) by the written
agreement of the Company and the Holders of the right to purchase at least a majority of the
remaining Shares purchasable hereunder or (ii) in accordance with the Letter.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
authorized officer.

	 	 	 	 	 	 	 
	 	 	SINOFRESH HEALTHCARE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Scott M. Klein	 	 
	 

	 	 	 	Chief Financial Officer	 	 
	Dated as of August 26, 2005
	 	 	 	 	 	 

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Exhibit A

FORM OF EXERCISE AGREEMENT

Date:                                          , 200                    

To: SinoFresh HealthCare, Inc.

     The undersigned, pursuant to the provisions set forth in the within Warrant, hereby agrees to
purchase                                 shares of Common Stock covered by such Warrant, and makes payment herewith
in full therefor at the price per share provided by such Warrant in cash or by certified or
official bank check or by wired funds in the amount of, or, by surrender of securities issued by
the Company (including a portion of the Warrant) having a market value (in the case of portion of
this Warrant, determined in accordance with Section 2 of the Warrant) equal to $                    . Please
issue a certificate or certificates for such shares of Common Stock in the name of and pay any cash
for any fractional share to:

	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Note:	 	The above signature should correspond
exactly with the name on the face of the
within Warrant, if applicable.	 	 

and, if said number of shares of Common Stock shall not be all the shares purchasable under the
within Warrant, a new Warrant is to be issued in the name of said undersigned covering the balance
of the shares purchasable thereunder less any fraction of a share paid in cash.

6Ex-4.2 Option Agreement

 

Exhibit
4.2

SINOFRESH HEALTHCARE, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

FOR

CYNTHIA DUNN

Agreement

     1. Grant of Option. SinoFresh Healthcare, Inc., a Florida corporation (the “Company”)
hereby issues this option agreement to evidence an option (the “Option”) committed to Cynthia Dunn
(“Optionee”) by the Company as of August 30, 2005 (which date shall be deemed the “Date of Grant”)
and which Option is assumed by the Company. This is an Option to purchase up to 10,000 shares of
the Company’s Common Stock, no par value (the “Stock”), at an exercise price per share equal to
Sixty Cents ($0.60) (the “Option Price”). This Option shall be subject to the terms and conditions
set forth herein. This Option is a nonqualified stock option, and not an incentive stock option
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

     2. Exercise Schedule. This Option vests on the one year anniversary of the date of
grant.

     3. Method of Exercise. This Option shall be exercisable in whole or in part by
written notice which shall state the election to exercise this Option, the number of shares of
Stock in respect of which this Option is being exercised, and such other representations and
agreements as to the holder’s investment intent with respect to such shares of Stock as may be
required by the Company. Such written notice shall be signed by the Optionee and shall be
delivered in person or by certified mail to the President of the Company. The written notice shall
be accompanied by payment of the exercise price. This Option shall be deemed to be exercised after
(a) receipt by the Company of such written notice accompanied by the exercise price, and (b)
arrangements that are satisfactory to the Board of Directors in its sole discretion have been made
for Optionee’s payment to the Company of the amount that is necessary to be withheld in accordance
with applicable Federal or state withholding requirements. No shares of Stock will be issued
pursuant to this Option unless and until such issuance and such exercise shall comply with all
relevant provisions of applicable law, including the requirements of any stock exchange upon which
the Stock then may be traded.

     4. Method of Payment. Payment of the exercise price shall be by any of the following,
or a combination thereof, at the election of the Optionee: (a) cash; (b) check; (c) with shares
that have been held by the Optionee for at least 6 months (or such other shares as the Company
determines will not cause the Company to recognize for financial accounting purposes a charge for
compensation expense); (d) subject to there being an effective Form S-8 registration statement (or
other applicable registration) in place for this Option, pursuant to a “cashless exercise”
procedure, by delivery of a properly executed exercise notice together with such other
documentation, and subject to such guidelines, as the Company shall require to effect an exercise
of this Option and delivery to the Company by a licensed broker acceptable to the Company of

 

 

proceeds from the sale of Stock or a margin loan sufficient to pay the Option Price and any
applicable income or employment taxes; or (d) such other consideration or in such other manner as
may be determined by the Board of Directors in its absolute discretion.

     This Option may also be exercised by a cashless exercise procedure pursuant to a formula
(“Formula Cashless Exercise”), or a combination of cash and Formula Cashless Exercise. In the
event of a Formula Cashless Exercise, the Optionee shall surrender this Option to the Company with
a written notice of the Optionee’s intention to effect a cashless exercise, including a calculation
of the number of shares of common stock to be issued upon such exercise in accordance with the
terms hereof; and, in lieu of paying the Option Price in cash, the Optionee shall surrender this
Option for that number of shares of common stock determined by multiplying the number of shares of
common stock to which it would otherwise be entitled by a fraction, the numerator of which shall be
the difference between (i) the average Market Price per share of the common stock for the five (5)
Trading Days immediately prior to the date of delivery of the cashless exercise notice to the
Company (the “Cashless Exercise Market Price”) and (ii) the Option Price, and the denominator of
which shall be the Cashless Exercise Market Price. As used herein, “Market Price” means, as of any
Trading Day, (i) the closing sale price for the shares of common stock on the NASD OTC Bulletin
Board (“OTCBB”) as reported by Bloomberg, or (ii) if the OTCBB is not the principal trading market
for the shares of Common Stock, the closing sale price on the principal trading market for the
common stock as reported by Bloomberg, or (iii) if market value cannot be calculated as of such
date on any of the foregoing basis, the Market Price shall be the fair market value as reasonably
determined in good faith by the Company’s Board of Directors. As used herein, a “Trading Day” shall
mean any day on which the common Stock is traded for any period on the OTCBB, or on the principal
securities exchange or other securities market on which the common stock is then being traded.”

     5. Termination of Option.

          (a) This Option shall terminate and become null and void on the fifth (5th)
anniversary of the Date of Grant.

          (b) To the extent not previously exercised, (i) this Option shall terminate immediately in the
event of (1) the liquidation or dissolution of the Company, or (2) any reorganization, merger,
consolidation or other form of corporate transaction in which the Company does not survive, or the
Company’s outstanding shares are converted into or exchanged for securities issued by another
entity, or an affiliate of such successor or acquiring entity, unless the successor or acquiring
entity, or a parent or subsidiary of such successor or acquiring entity, assumes this Option or
substitutes an equivalent option or right pursuant to Section 6 below, and (ii) the Board of
Directors in its sole discretion may by written notice (“cancellation notice”) cancel, effective
upon the consummation of a corporate transaction described in Section 5(b)(A) below in which the
Company does survive, this Option (or portion thereof) that remains unexercised on such date. The
Board of Directors shall give written notice of any proposed transaction referred to in this
Section 5(b) a reasonable period of time prior to the closing date for such transaction (which
notice may be given either before or after approval of such transaction), in order that the
Optionee may have a reasonable period of time prior to the closing date of such transaction within
which to exercise this Option if and to the extent that it then is exercisable. The Optionee may
condition his exercise of this Option upon the

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consummation of a transaction referred to in this Section 5(b).

               (A) As used in Section 5(b) above, a corporate transaction in which the Company does survive
shall mean the approval by the shareholders of the Company of a reorganization, merger,
consolidation or other form of corporate transaction or series of transactions, in each case, with
respect to which persons who were the shareholders of the Company immediately prior to such
reorganization, merger or consolidation or other transaction do not, immediately thereafter, own
more than 50% of the combined voting power entitled to vote generally in the election of directors
of the reorganized, merged or consolidated company’s then outstanding voting securities, or a
liquidation or dissolution of the Company or the sale of all or substantially all of the assets of
the Company (unless such reorganization, merger, consolidation or other corporate transaction,
liquidation, dissolution or sale (any such event being referred to as a “Corporate Transaction”) is
subsequently abandoned).

          (c) Notwithstanding anything to the contrary contained in this Agreement, the merger of the
Company with and into SinoFresh Acquisition Corp., a Florida corporation, shall not constitute a
corporate transaction subject to this Section 5.

     6. Stock Dividend or Reorganization.

          (a) If (i) the Company shall at any time be involved in a transaction described in Section
424(a) of the Code (or any successor provision) or any “corporate transaction” described in the
regulations thereunder; (ii) the Company shall declare a dividend payable in, or shall subdivide or
combine, its Common Stock or (iii) any other event with substantially the same effect shall occur,
the Board of Directors shall, subject to applicable law, with respect to this Option,
proportionately adjust the number of shares of Common Stock subject to this Option and/or the
exercise price per share so as to preserve the rights of the Optionee substantially proportionate
to the rights of the Optionee prior to such event.

          (b) In the event that the presently authorized capital stock of the Company is changed into
the same number of shares with a different par value, or without par value, the stock resulting
from any such change shall be deemed to be Common Stock within the meaning of this Option, and this
Option shall apply to the same number of shares of such new stock as it applied to old shares
immediately prior to such change.

          (c) If the Company shall at any time declare an extraordinary dividend with respect to the
Common Stock, whether payable in cash or other property, the Board of Directors may, subject to
applicable law, in the exercise of its sole discretion and with respect to this Option,
proportionately adjust the number of shares of Common Stock subject to this Option and/or adjust
the exercise price per share so as to preserve the rights of the Optionee substantially
proportionate to the rights of the Optionee prior to such event.

          (d) The foregoing adjustments in the shares subject to this Option shall be made by the Board
of Directors, or by the applicable terms of any assumption or substitution document.

          (e) The grant of this Option shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital or

3

 

business structure, to merge, consolidate or dissolve, to liquidate or to sell or transfer all
or any part of its business or assets.

     7. Transferability. Unless otherwise determined by the Board of Directors, this
Option is not transferable otherwise than by will or under the applicable laws of descent and
distribution, and during the lifetime of the Optionee this Option shall be exercisable only by the
Optionee or the Optionee’s guardian or legal representative. In addition, this Option shall not be
assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or
otherwise), and this Option shall not be subject to execution, attachment or similar process. Upon
any attempt to transfer, assign, negotiate, pledge or hypothecate this Option, or in the event of
any levy upon this Option by reason of any execution, attachment or similar process contrary to the
provisions hereof, this Option shall immediately become null and void. The terms of this Option
shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

     8. No Rights of Stockholders. Neither the Optionee nor any personal representative
(or beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the
Company with respect to any shares of Stock purchasable or issuable upon the exercise of this
Option, in whole or in part, prior to the date of exercise of this Option.

     9. No Right to Employment. Neither this Option nor this Agreement shall confer upon
the Optionee any right to employment or service with the Company.

     10. Law Governing. This Agreement shall be governed in accordance with and governed
by the internal laws of the State of Florida.

     11. Notices. Any notice under this Agreement shall be in writing and shall be deemed
to have been duly given when delivered personally or when deposited in the United States mail,
registered, postage prepaid, and addressed, in the case of the Company, to the Company’s President
at 516 Paul Morris Drive, Englewood, Florida 34223, or if the Company should move its principal
office, to such principal office, and, in the case of the Optionee, to the Optionee’s last
permanent address as shown on the Company’s records, subject to the right of either party to
designate some other address at any time hereafter in a notice satisfying the requirements of this
Section.

     12. Tax Consequences. Set forth below is a brief summary as of the date of this
Option of some of the federal tax consequences of exercise of this Option and disposition of the
Stock. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE
SHARES OF STOCK.

          (a) Exercise of Option. There may be a regular federal income tax liability upon the
exercise of this Option. The Optionee will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the
Stock on the date of exercise over the Option Price. If Optionee is an employee, the Company will
be required to withhold from Optionee’s compensation or collect from Optionee

4

 

and pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

          (b) Disposition of Stock. If the Stock is held for at least one year, any gain
realized on disposition of the Stock will be treated as long-term capital gain for federal income
tax purposes.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	SinoFresh Healthcare, Inc., a Florida corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Charles Fust	 	 
	 

	 	Title:
	 	Chairman and CEO	 	 

     Optionee has reviewed this Option in its entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Option, and fully understands all provisions of this Option.

	 	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	[Cynthia Dunn]	 	 

5

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