Document:

allstarexh10_12.htm

Exhibit 10.12

 

SHELL REFERRAL AGREEMENT

 

This Shell Referral Agreement ("Agreement"), dated December 17, 2009, is made by and between:

 

 

	 	
Dragon Link Investments, Ltd. 

Corner Hutson & Eyre Street, Blake Building, Suite 302

Belize City, Belize

 

       and

	("Referrer")
	 	 	 
	 	
China Qinba Pharmaceuticals, Inc., a Delaware Corporation 

24th Floor, Building A, Zhengxin Mansion, No. 5 of 1st Gaoxin Road

Hi-Tech Development Zone

Xi’an City, Shaanxi Province

People’s Republic of China

	(the “Principal”)

 

RECITALS

WHEREAS, Principal is interested in acquiring control of or merging with said public shell.

NOW, THEREFORE, in consideration for those services Referrer provides to Principal, the parties agree as follows:

 

1.    INDEPENDENT CONTRACTOR: Nothing in this agreement shall be construed to create the relationship of employer and employee, joint venture, or partnership, between parties hereto. Referrer shall be deemed
at all times to be an Independent Contractor.

 

2.    UNIQUE SERVICES PROVIDED: The scope of this agreement is limited and unique to the Referrer to perform for the Principal such services.

 

a)     To provide the Principal certain information regarding an over-the-counter bulletin board (“OTCBB”) public shell so that Principal may complete necessary ‘due diligence’ for a potential acquisition of or merger with such shell. Specifically and at minimum, the Referrer shall provide the publicly-traded
ticker symbol and contact information for the current majority shareholder, and officer(s) and director(s).

 

3.    COMPENSATION: Principal agrees to pay Referrer, as his fee and in consideration for the referral services to be performed by Referrer under this Agreement, the Company will issue the Referrer warrants
to acquire 1,200,000 common shares of the Company’s common stock, subject to any forward or reverse splits, with registration rights, at a $0.83 exercise price and expiration date of three years after acquiring control of or merging with said public shell for time spent on Referral Services, at the time of acquiring control or merging with said public shell.  (collectively, the “Warrants”)

 

4.    TERM: Referrer shall begin services for the Principal on December 17, 2009. Services will continue in perpetuity unless terminated as a result of the Principal, his agents, his clients, or his nominees merging
with the referred OCTBB company to the Principal by the Referrer and completing the payment of compensation as agreed.

 

  

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5.    ASSIGNMENT: Both parties shall not be entitled to assign or transfer this agreement without prior consent from the other party in writing.

6.    LIMITATIONS: Principal will only be responsible to compensate Referrer in the event that the Principal, his agents, his clients, or his nominees, executes an agreement to merge with a specific OTCBB company
referred to the Principal by the Referrer. Referrer holds no obligations to the Principal other than to have provided the unique services one (1) time.

7.     GOVERNING LAW: This Agreement shall be governed by the interpreted in accordance with the laws of the State of Delaware without reference to its conflicts of laws rules or principles. Each of the
parties consents to the exclusive jurisdiction of the superior courts of the Laws of Delaware in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non convenes, to the bringing of any such proceeding in such jurisdictions.

 

8.     INDIVIDUAL AGREEMENT: This Agreement is separate and unique from any past, present, or future agreements entered between the Referrer and Principal. Both parties agree that their signatures below
represent their true identity as provided in government-issued identification documents.

9.     REGISTRATION RIGHTS:  The Company will cause a registration statement to be filed with the U.S. Securities and Exchange Commission, covering 100% of the common stock underlying the Warrants,
on or before three months after the close of the acquiring control of or merging with said public shell and use its commercially reasonable efforts to cause the registration statement to become effective within one hundred twenty (120) days following the date of the filing of the registration statement.  The Company will also use commercially reasonable efforts to maintain the effectiveness of the registration statement for a period of 3 years from the date of acquiring control of or merging with said
public shell.

The Company will be deemed not to have used commercially reasonable efforts to cause the registration statement to become, or to remain effective during the requisite period if the Company voluntarily takes any action that would, or omits any action the omission of which would result in either: (i) such registration statement not being
declared effective; or (ii) the holders of securities covered by a previously effective registration statement being prohibited by applicable law from trading the securities covered thereby.

The aggregate amount of liquidated damages payable by the Company to the Referrer as a result of a failure to timely file, or cause the registration statement to become or maintain its effective status, shall be capped at ten percent (10%) of the market value of the common stock underlying the Warrants at the time of breach.  Moreover,
the Company shall not accrue liquidated damages with respect to more than one of any failure under this section at a time.

 

10.     NON-DISCLOSURE and CONFIDENTIALITY:

 

BASIS FOR CONFIDENTIAL TREATMENT: It is recognized that such information passed in-between parties has substantial competitive value so long as it is withheld from public dissemination, and this value will be impaired or destroyed on publication or disclosure

  

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to others. Accordingly, all information exchanged under this Agreement shall be considered to be proprietary information. During the term of this Agreement, each receiving party will make all reasonable efforts to protect the information disclosed, or exchanged, relative to the subject matter specified below. In no event shall either party,
without the prior written approval of the other party, (a) make such information or documents available to any third party, or (b) disclose or identify the source of any of the information disclosed in confidence.

Signatures:

 

 

	
REFERRER:

 

Signature:                                                 

Name:    Dragon Link Investments, Ltd

 

Address:

Corner Hutson & Eyre Street, Blake Building, Suite 302, Belize City, Belize

 

 

Date:   December 17, 2009

 

	
PRINCIPAL:

China Qinba Pharmaceuticals, Inc.

 

Signature:                                                 

Name:    Wang Guozhu

Chairman and Chief Executive Officer

 

Address:

24th Floor, Building A Zhengxin Mansion, No. 5 of 1st Gaoxin Road, Hi-Tech Development Zone, Xi’an City, Shaanxi Province, People’s Republic of China

 

Date:   December 17, 2009

 

 

 

 

 

  

3 | Pageallstarexh10_13.htm

Exhibit 10.13

 

Date: October 28, 2008

 

Xi’an Qinba Pharmaceuticals Co., Ltd.

The shareholders of Xi’an Qinba Pharmaceuticals Co., Ltd.

and

Xi’an Pharmaceuticals Development Co., Ltd.

————————————————

 

Agreement on Entrustment for

Operation and Management

 

———————————

 

 

Agreement on Entrustment for Operation and Management

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

	  	  	  
	  	  	
1. Wang Guozho, a citizen of PRC with ID Card number [220182196302120058]

2. Zang Guiping, a citizen of PRC with ID Card number [370111196606022016]

3. Yan Weidong, a citizen of PRC with ID Card number [370104196812022910]

4. Zhang Yong, a citizen of PRC with ID Card number    [610404196907211075]

5. Xing Xiu’e, a citizen of PRC with ID Card number [23102719440726502X]

6. Xu Yong, a citizen of PRC with ID Card number [610104197007086115]

7. Wang Wei, a citizen of PRC with ID Card number [152101196808080618]

8. Gao Xiling, a citizen of PRC with ID Card number [610402195703122700]

9. Guo Chenglin, a citizen of PRC with ID Card number [610403197110230058]

10. Wu Weiping, a citizen of PRC with ID Card number [610403198202050067]

11. Bai Rong, a citizen of PRC with ID Card number [62050319790316422X]

12. Wu Jin, a citizen of PRC with ID Card number [610125198301140529]

13. Ding Zhibo, a citizen of PRC with ID Card number [2310271972041055018]

14. Pu Feng, a citizen of PRC with ID Card number [61040419700726052X]

15. Guan Zheng, a citizen of PRC an ID Car number  [9370111196701102030]

16 Yaing Airfang, a citizen of PRC and ID Car number [612621194610101027]

 

 

 

 

  

  

  

Party A: Xi’an Qinba Pharmaceuticals Co., Ltd. (the Commissioning Party)

Address: Jingwei 10 Rd., Xi’an Economy Technology Development Zone, Xi’an, Shaanxi

Legal Representative: Wang Guozhu

Party B: Xi’an Pharmaceuticals Development Co., Ltd. (the Commissioned Party)

Address: Room C901, 16 Gaoxin 1 Rd., Xi’an High-tech Zone, Xi’an, Shaanxi

Legal Representative: Chen Ying

Whereas:

(1) Party A and Party B are both companies with limited liabilities incorporated under the Company Law of the People’s Republic of China;

(2) Party A is an enterprise engaged in manufacturing of [·] drugs and all of its shareholders holding all of the issued and outstanding shares of Party A;

(3) Party B is rich experienced in the management of drug manufacturing enterprise;

(4) Party A desires to entrust the management of this enterprise to Party B and Party B desires to be entusted.

Both parties reach on the following terms unanimously and sign on [·] 2008 through friendly negotiation:

Article 1. Entrustment Matter

Party A agrees to exclusively entrust the operation and management of this company to Party B. Party B accepts such entrustment and perform its management right pursuant to the laws and this agreement until the expiration of the Term set forth in Article 5 and shall be fully responsible for the management of Party A.

Article 2. Scope of the Enstrusted Matter

The entrustment matter shall include

2.1 The operations of Party A which include the daily operation and management and outward affairs of Party A;

2.2 Recruitment and professional training of the management staff of Party A;

2.3 Collecting pharmaceutical information and organizing source of raw materials;

2.4 Choosing distributors for the sales of the pharmaceutical manufactured by Party A;

2.5 Other matters in the daily operation and management of Party A.

2.6 The management of all of the cash flows of Party A through a bank account opened by Party A  which is controlled by Party B.

2.7 The decisions regarding the use of the funds in the bank account in which Party A shall deposit

2.8 The control of all assets of Party A and the right to dispose of assets

2.9 Hire management and administrative personnel and control decisions relating to entering and performing customer contracts and other instruments.

2.9 The right to appoint the composition of the board of directors of Party A

  

  

  

Article 3. Obligations of Party A

3.1 respecting the management of Party B and not interfering with the management of Party B within the scope of this Agreement;

3.2 having its shareholders to appoint directors, chairman of directors, vice chairman of directors and supervisor as nominated by Party B;

3.3 appointing general manager, vice general manager, financial chief and other senior management as nominated or designated by Party B;

3.4 the opening of a bank account which Party B shall have the full right to use in its discretion. All funds of Party A including all revenue and all payments of funds shall be disbursed through this account;

3.5 paying management fee as agreed;

3.6 without the written permit of Party B, not carrying out any transactions that may severely influence its assets, liabilities, shares and/or operation;

3.7 not entrusting any third party with the rights authorized to Party B within the term of this Agreement.

3.8 hand over to Party B for entrustment all business materials, business licenses and corporate seal

3.9 assist Party B in obtaining funds for Party A if Party A is in need of funds

Article 4. Obligations of Party B

4.1 notifying Party A in writing on the operation and management monthly, in order for Party A to know the operation of the company on time;

4.2 nominating appropriate persons to serve as all directors, chairman, vice chairman, and supervisor of Party A;

4.3 nominating the person deemed appropriate to serve as the general manager of Party A;

4.4 the general manager nominated by Party B shall, to meet the demand of operation and management of Party A, designate competent persons to be served as vice general manager, financial chief and other senior officers of Party A.

4.5 manage Party A and dispose of its assets if it deems necessary and enjoy the profits of Party A as well as bear the losses of Party A.

4.6 assume all operation risks of the bank account and bear all losses.  

4.7 repay the debt of Party A if Party A does not have sufficient funds to repay its debt.

4.8 fund any capital deficits.

4.9 provide any additional funds required by Party A to maintain its operations either through a bank loan or other resources.

Article 5. Term

The term of the commission shall be from the effective date of this Agreement until either the business of Party A terminates or Party B exercises its option to acquire all of the assets or equity of Party A under the terms of the exclusive option agreement amongst Party A, Party B and the Xi’an Pharmaceutical Shareholders  

Article 6. Calculation and Payment of Management Fees

6.1 Calculation of Management Fees

The management fee payable by Party A to Party B shall be calculated as 100% of the earnings before tax, paid on a monthly basis within 20 days of the end of each month.  If Party A has no earnings before taxes and other cash expenses, then no fee shall be paid.  If Party A sustains losses then each month the losses will be carried
over to the next month and deducted from next month’s management fee.

 

 

 

 

6.2 Payment of Management Fees

6.2.1 Party A shall pay annual royalty to Party B prior to [·] of each year within the effective period of this contract.

6.2.2 Party A shall pay the aforesaid fees to Party B via transfer. Name, address and account of the bank of Party B: Name: Bank of Communications Xi’an Branch Nanshaomen  Subbranch

Address: No. 1 Nanguanzhengjie, Xi’an City, Shaanxi Province, P.R. China

Account: 611301054018010023376

6.2.3 Party B shall issue formal official invoice to Party A within 7 days following Party A’s every payment of contractual amount.

Article 7. Breach Liabilities

7.1 Any Party’s breaching any terms, warrants and commitments of this Agreement shall constitute breach, and such party shall compensate the other for losses arising herefrom.

7.2 Without the written consent of the other party, neither party shall terminate or postpone the performance of each obligation hereunder on its own.

7.3 Unless otherwise provided by Chinese compulsory laws, Party B shall not bear any liabilities arising from the operation of Party A.

Article 8. Tax

Both parties shall bear taxes arising from the exchange hereunder imposed by the Chinese government respectively.

Article 9. Confidentiality

9.1 “Confidential information”: technical materials, commercial information and other information marked as “interior material” disclosed by one party to the other during the performance of this contract.

9.2 Both parties warrant that they shall not use or disclose the confidential information of the other party for any other purposes other than this contract or to a third party. Both parties may use the confidential information of the other only for performing this contract.

9.3 Both parties agree that the disclosing party is the owner of the confidential information. Upon the termination or expiration of this contract, the receiving party shall promptly return all confidential information provided by the disclosing party or destroy all confidential information as requested by the disclosing party.

9.4 Where the confidential information of one party is revealed due to the fault of the other party (including its employees), the faulty party shall compensate the other for all losses arising herefrom.

9.5 Both parties agree that the term for the confidentiality obligation of both parties shall be the effective term of this contract and three years following the expiration of this contract; where this contract terminates in advance, such term shall be the period prior to the termination of this contract and three years following the termination.

9.6 This article constitutes independent confidentiality agreement. The obligations agreed in this Article shall survive the termination of this contract.

Article 10. Contractual Relation

The parties concluding this Agreement are independent contracting parties. The execution of this Agreement does not mean that both parties establish a partnership enterprise or joint venture and both parties are not in an employment or agent relationship.

 

 

 

 

Article 11. Force Majeure

11.1 Where any party is unable to perform its obligation hereunder on the agreed conditions due to the event of force majeure, such party shall promptly notify the other of relevant circumstance, and provide effective certificate of force majeure within 15 days.

11.2 The force majeure stated in this Agreement refers to any unpredictable, unavoidable and undefeatable objective circumstance, including but not limited to natural disaster, explosion, fire, flood, war, rebellion, riot, epidemic and administrative measures and orders. It is not force majuere where the company is punished, closed or suspending
operation due to violation by Party B.

11.3 The influencing party shall be exempted from relevant responsibilities within the influence of the force majeure.

11.4 Where the force majeure lasts for over 60 days, both parties shall settle the performance of this Agreement thereafter through friendly negotiation. Where negotiation fails within 10 days extended, both parties shall have the right to dissolve this Agreement.

Article 12. Governing Law

The effectiveness, interpretation and performance of this Agreement shall be governed by the laws of the People’s Republic of China.

Article 13. Dispute Resolution

Any dispute arising from the performance of this Agreement shall be resolved through negotiation by both parties.  Where negotiation fails, any party is entitled to launch a lawsuit to the people’s court of jurisdiction.

Article 14. Execution and Effectiveness

14.1 This Agreement is made in duplicate, with each party holding one, equally binding upon both parties.

14.2 This Agreement is executed by the representative of both parties on the date first above written and comes into effect on such date.

 

 

 

 

 

 

  

  

  

In witness whereof, both parties execute this Agreement on the date first above written.

Party A:  Xi’an Qinba Pharmaceuticals Co., Ltd.

Legal Representative:

/s/ Wang Guozhu         

(Authorized Representative)              Wang Guozhu

Party B:

Xi’an Pharmaceuticals Development Co., Ltd.

Legal Representative:                         /s/ Chen Ying                  

(Authorized Representative)             Chen Ying

Shareholders of Party A hereby accept this Agreement and specifically agree to be subject to Article 3.2 of this Agreement:

	  	  	  	  
	
/s/ Wang Guozhu
	  	
/s/ Zhang Guiping  
	  
	
Wang Guozhu
	  	
Zhang Guiping
	  
	  	  	  	  
	
/s/ Yan Weidong
	  	
/s/ Zhang Yong                  
	  
	
Yan Weidong
	  	
Zhang Yong
	  
	  	  	  	  
	
/s/ Xing Xiu’e       
	  	
/s/ Xu Yong   
	  
	
Xing Xiu’e
	  	
Xu Yong
	  
	  	  	  	  
	
/s/ Wang Wei   
	  	
/s/ Gao Xiling   
	  
	
Wang Wei
	  	
Gao Xiling
	  
	  	  	  	  
	
/s/ Guo Chenglin
	  	
/s/ Wu Weiping    
	  
	
Guo Chenglin
	  	
Wu Weiping
	  
	  	  	  	  
	
/s/ Bai Ron
	  	
/s/ Wu Jin
	  
	
Bai Rong
	  	
Wu Jin
	  
	  	  	  	  
	
/s/ Ding Zhibo
	  	
/s/ Guan Zheng
	  
	
Ding Zhibo
	  	
Guan Zheng
	  
	  	  	  	  
	
/s/ Pu Feng    
	  	
/s/ Yang Aifang      
	  
	
Pu Feng
	  	
Yang Aifang

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