Document:

kl12002_ex10-2.htm

    
      

    

     

    Exhibit
10.2

     

     

    Equity
Transfer Agreement

     

     

    Party A:
Shiyan Juhong Power Development Co., Ltd. (Transferor)

     

    Party B:
Shenzhen Zhaoheng Hydropower  Co., Ltd. (Transferee)

     

    In
accordance with relevant Chinese laws, Party A and Party B agree on the
following terms regarding the equity transfer of Hubei Minyuan Huohe Hydropower
Development Co., Ltd after friendly consultations:

     

    1:  Transferring
shares and Transferring Price

     

    Party A
agrees to transfer and Party B agrees to receive the following equity interest
and shareholder loan in Hubei Minyuan Huohe Hydropower Development Co.,
Ltd:

     

    
      	
              ·  

            	
              23%
      stake in Hubei Minyuan Huohe Hydropower Developmennt Co., Ltd for the
      price of RMB 4,779,200.

            

    

     

    
      	
              ·  

            	
              Shareholder
      loan of RMB 2,850,500 in Hubei Minyuan Huohe Hydropower Developmennt Co.,
      Ltd. by the end of Oct. 2008.

            

    

     

    2.
Transferring Schedule and Payment Terms:

     

    Party A
and Party B agree that, within 5 days of the registration of equity transfer
with Industrial and Commercial Administrative Department, Party B shall pay the
full amount of RMB 4,779,200 to Party B. The shareholder loan shall be paid by
the end of December 2008.

     

    Account
Name: Shiyan Juhong Power Development Co., Ltd.

     

    Bank
Name: Renmin Road Branch of Agricultural Bank of China in Shiyan, Hubei
Province

     

    Account
number: 244801040009703

     

    3. Rights
and Duties of Party A

     

    
      	
              ·  

            	
              In
      accordance with Article 72 of the Corporation Act, Party A shall notify
      and get the permission of other shareholders regarding this equity
      transfer.

            

    

     

    
      	
              ·  

            	
              Party
      A shall assist Party A, or Hubei Minyuan Huohe Hydropower Development Co.,
      Ltd in the amendment of articles of association and the registration of
      equity transfer with Industrial and Commercial Administrative
      Department.

            

    

     

    
      	
              ·  

            	
              Party
      A shall pay the portion of relevant fees and taxes related to this equity
      transfer that shall be paid by Party
A.

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	
              ·  

            	
              Party
      A shall pay corporate income tax of Hubei Minyuan Huohe Hydropower
      Development Co., Ltd by the end of October 2008 according to its equity
      interest in the company.

            

    

     

    4. Rights
and Duties of Party B

     

    
      	
              ·  

            	
              Party
      B should pay full price for this equity transfer in accordance with the
      terms of this agreement.

            

    

     

    
      	
              ·  

            	
              After
      this equity transfer, Party B shall be the legitimate owner and enjoy all
      rights and obligations of such equity
interest.

            

    

     

    
      	
              ·  

            	
              Party
      B shall pay the portion of relevant fees and taxes related to this equity
      transfer that shall be paid by Party
B.

            

    

     

    5.  Party
A’s Guarantee

     

    Party A
guarantees legitimate ownership of equity interest in this agreement and shall
provide all documentation in completeness and correctness.

     

    6. Breach
of Duties

     

    
      	
              ·  

            	
              After
      the entry into force of this agreement, either part shall be liable for
      the other party’s loss if it breaches duties under this
      agreement.

            

    

     

    
      	
              ·  

            	
              If
      Party B fails to make payment to Party A in accordance to this agreement,
      Party B shall interest of overdue balance at 0.5% per day to Party A. If
      the payment is overdue of more than 60 days, this agreement shall be
      cancelled.

            

    

     

    7.
Dispute and Settlement

     

    
      	
              ·  

            	
              Party
      A and Party B can sign supplementary agreement if there are other issues
      not covered in this agreement. The supplementary agreement has the same
      legal effect to this agreement.

            

    

     

    
      	
              ·  

            	
              The
      two parties shall try to settle any dispute through friendly consultations
      first, and if no agreement can be reached, the case shall be submitted to
      People’s Court of Wuhan City in accordance with relevant
    law.

            

    

     

    8.
Others

     

    
      	
              ·  

            	
              This
      agreement becomes effective after being signed by both
      parties.

            

    

     

    
      	
              ·  

            	
               This
      agreement is in 6 copies, Party A, Party B and Hubei Minyuan Huohe
      Hydropower Development Co., Ltd will each keep two
  copies.

            

    

     

    
      	
              Party
      A (seal):

            	
              Party
      B (sealed):

            

    

     

    
      	
              Legal
      Representative (signature):

            	
              Legal
      Representative (signature):

            

    

     

     

    
      	
               
      

            	
              Signed:
      November 25, 2008kl12003_ex10-1.htm

    
      

    

     

    Exhibit
10.1

     

     

     

    AMENDMENT
NO. 1 TO

    AMENDED
AND RESTATED STOCK PURCHASE AGREEMENT

    

    This
Amendment No. 1 (this “Amendment”) is made
and entered into as of the 28th day of
November, 2008 by and between InterAmerican Acquisition Group, Inc., Sing Kung
Ltd., Cho Kwan and certain other stockholders named
therein.  Capitalized terms used but not defined herein have the
meanings assigned to them in the Purchase Agreement (as defined
below).

    

    WHEREAS,
the parties to this Amendment entered into an Amended and Restated Stock
Purchase Agreement (the “Purchase Agreement”)
dated as of May 15, 2008.

    

    WHEREAS,
the parties hereto desire to amend the Purchase Agreement.

    

    NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the
parties agree as follows:

    

    1.            Section
1.2(i) of the Purchase Agreement is hereby amended by deleting such provision in
its entirety and replacing in lieu thereof the following:

    

    
      	
               
      

            	
              “(i)

            	
              certificates
      representing 19,834,417 of CNC’s ordinary shares, par value $0.0001 per
      share (“CNC
      Stock”), to be delivered to the Stockholders, of which 4,010,904
      shares (allocated pro rata among the Stockholders) shall be held in escrow
      and subject to a right of repurchase by CNC, as described in Section 1.4
      below (the “Stockholders
      Adjustment Shares”).”

            

    

    

    2.     The
first paragraph and following two tables contained in Section 1.3 of the
Purchase Agreement are hereby amended by deleting such paragraph and tables in
their entirety and replacing in lieu thereof the following:

    

    “Earn-Out
Agreement.  So long as the Net Income of CNC, on a consolidated
basis, achieves or exceeds the Threshold Net Income (as defined below) targets
(as set forth below) calculated for the period of January 1 to the
succeeding December 31, ending on December 31 in each of 2009, 2010,
2011 and 2012, the Stockholders shall receive the number of shares of CNC Stock
set forth below with respect to such year (the “Incentive
Shares”).  The payment of these additional shares is in
exchange for the Sing Kung Stock and is not contingent upon the continued
employment or other relationships of the Stockholders with any
entity.  If the respective target is achieved or exceeded, such
additional shares shall be issued 15 days following the issuance of the audit
report for CNC for such fiscal year.  The value of shares payable
under this Section 1.1 shall also be available for indemnification pursuant to
ARTICLE X.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      
        
          	
                  Threshold
      Net Income Targets for 12 Months Ending

                
	 	 	 	 	 
	
                  December
      31

                  2008

                	
                  December
      31

                  2009

                	
                  December
      31

                  2010

                	
                  December
      31

                  2011

                	
                  December
      31

                  2012

                
	
                  $38,000,000

                	
                  $56,000,000

                	
                  $80,000,000

                	
                  $112,000,000

                	
                  $151,200,000

                
	 
      	 
      	 
      	 
      	 
      

        

      

    

    

    
      
        
          
            	
                    Shares
      Issuable Upon Achieving or Exceeding the Respective Threshold Net Income
      Targets

                  
	 	 	 	 	 
	 
      	
                    December
      31

                    2009

                  	
                    December
      31

                    2010

                  	
                    December
      31

                    2011

                  	
                    December
      31

                    2012

                  
	 
      	
                    3,100,000

                  	
                    3,100,000

                  	
                    3,100,000

                  	
                    3,100,000

                  

          

        

      

    

    

    3.     Section
1.4(i)b. and Section 1.4(ii) of the Purchase Agreement are hereby amended by
deleting such provisions in their entirety and replacing in lieu thereof the
following:

    

    
      	
               
      

            	
              “b

            	
              Partial
      Distribution.  If the Net Income of CNC for 2008 (calculated
      in accordance with Section 1.3) is less than the Threshold Net Income
      Target, then a number of EPS Adjustment Shares shall be distributed to the
      Stockholders and CC respectively (a "Partial
      Distribution") that would result in CNC achieving the same Net
      Income per CNC share as it would have achieved if it had met the Threshold
      Net Income Target for 2008 (the "Reference
      EPS").  For purposes of this paragraph: (i) Reference
      EPS shall be calculated by dividing the Threshold Net Income
      ($38,000,000) by the fully diluted shares issued as of year-end 2008,
      or calculated as if the Closing had occurred prior to December 31, 2008
      (the "Y-E
      Shares"); (ii) subject to required adjustments for fundamental
      changes or changes in conversion ratios, the Y-E Shares will equal
      37,411,111 shares, the calculation of which is intended to include all
      issued and outstanding shares plus all shares issuable upon conversion of
      outstanding preferred shares of Sing Kung or CNC and exercise of all of
      the outstanding IAG (or CNC) warrants and options; (iii) based on the
      foregoing, the Reference EPS is $1.016 per share.  If a Partial
      Distribution is required in accordance with this paragraph, then the
      calculation of the number of EPS Adjustment Shares that is to be
      withheld from a Partial Distribution (the "Escrowed
      Shares") shall be made as follows:  (Step 1) Actual Net
      Income shall be divided by the Reference EPS; (Step 2) the
      resulting number of shares from Step 1 shall be subtracted from the
      Y-E Share amount and the difference shall be the Escrowed Shares. 
      The number of EPS Adjustment Shares to be distributed pursuant to a
      Partial Distribution shall be calculated by subtracting the Escrowed
      Shares from the EPS Adjustment Shares (4,222,004 minus Escrowed
      Shares). 

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Subsequent
      Release.  All Escrowed Shares shall be issued within 15
      days following the delivery of the final annual consolidated audit report
      for the first annual audit subsequent to 2009 in which CNC meets the
      Threshold Net Income 

            

    

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    Target
for the year covered by the audit report, as set forth in Section 1.3; the
distribution of the EPS Adjustment Shares shall be to Stockholders of record as
of December 31 of the year of the qualifying audit report, and the issuance
shall be in proportion to such Stockholders’ holdings of Sing Kung Stock on such
record date. The value of shares distributable under Section 1.4(ii) shall also
be available for indemnification pursuant to ARTICLE X to the extent not
previously paid.  In any subsequent release, if CC has not made an
election to exchange its Sing Kung shares, then the shares distributed to CC
shall be the applicable number of original CC shares deposited to the escrow and
Stockholders shall receive the applicable number of CNC shares.”

     

    4.  A
new Section 6.21 shall be added to the Purchase Agreement as
follows:

    

    “6.21                      Amendment
to CC Letter Agreement.  Sing Kung shall use its best efforts
to amend that certain letter agreement between IAG and CC dated May 15, 2008 to
provide that the “CC Adjustment Shares” shall be reduced from 500,000 shares of
Sing Kung Stock (or CNC Stock if exchanged pursuant to the election of CC) to
211,100 shares.”

    

    5. A new
Section 7.10 shall be added to the Purchase Agreement as follows:

    

    “7.10                      Reduction
in Shares of Common Stock.  Prior to the Closing, IAG shall
take such actions as required to reduce the number of shares of its common stock
(including the warrants to purchase 185,000 shares of common stock for an
exercise price of $0.01 per share) by 129,150 shares of common stock to a total
of 7,055,850 shares of common stock.”

    

    6. The
definition of “CC Adjustment Shares” contained in Section 12.1 of the Purchase
Agreement shall be amended by deleting “500,000 shares” and inserting in lieu
thereof “211,100 shares.”

    

    7. A new
Section 13.13 shall be added to the Purchase Agreement as follows:

    

    “13.13                      Exchange
Offer.  The Parties agree that the exchange offer of IAG
(through CNC) for the remaining ordinary shares of Sing Kung shall be for
1,076,070 ordinary shares of CNC and the exchange offer for the Sing Kung
preferred stock shall be for 2,685,774 ordinary shares of CNC.”

    

    8. Except as
expressly amended by this Amendment, the parties agree that all other provisions
of the Purchase Agreement remain unchanged and that the Purchase Agreement
remains in full force and effect.

    

    9. This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

    

    

    [SIGNATURE
PAGE FOLLOWS]

     

     

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the Parties have caused this Amendment No. 1 to the Purchase
Agreement to be executed as of November 28, 2008.

     

    

    Agreed
and accepted by:

    SING
KUNG LTD on behalf of itself and STOCKHOLDERS

    

    

    

    By:  ___________________________

    Name:

    It’s:
authorized signatory for all Stockholders

    

    

    

    Agreed
and accepted by:

    INTERAMERICAN
ACQUISITON GROUP INC.

    

    

    By:
_______________________________

    Name:
William C. Morro

    Its:   Chief
Executive Officer

     

     

     

     

     

     

    4

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