Document:

WARRANT
AMENDMENT

     

    This
WARRANT AMENDMENT (this “Amendment”) is dated as of April 30, 2010 by and among
Shengkai Innovations, Inc., a Florida corporation and formerly known as
“Southern Sauce Company, Inc.” (the “Company”), and  Blue Ridge
Investments, LLC.  Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Warrant (as
defined below).

     

    RECITALS

     

    WHEREAS,
the Company entered into a Securities Purchase Agreement (as amended, the
“Securities Purchase Agreement”), dated as of July 18, 2008, pursuant to which
the Company conducted a private offering solely to accredited investors pursuant
to Rule 506 of Regulation D of the Securities Act of 1933, as amended, of its
series A preferred stock and series A warrants; and

    

    WHEREAS,
pursuant to Sections 4(d), (e) and (f) of the Series A Warrant to Purchase
Shares of Common Stock of the Company that were delivered to the Purchaser (as
defined in the Securities Purchase Agreement) pursuant to the Securities
Purchase Agreement (the “Warrant”), the Purchaser had certain anti-dilution
protection in the event the Company issues any Additional Shares of Common Stock
or Common Stock Equivalents at a price per share less than the Warrant Price
then in effect; and

     

    WHEREAS,
the Company has requested that the Majority Holders (as such term is defined in
the Warrant) amend the Warrant to delete Sections 4(d), (e) and (f) thereof; and
agree that in lieu of such provisions the Majority Holders of the Warrant shall
have a right to pre-approve any issuance of Additional Shares of Common Stock
and Common Stock Equivalents at a price less than the Warrant Price then in
effect and give retroactive effect to such amendment; and

    

    WHEREAS,
pursuant to Section 11 of the Warrant, no provision of the Warrant may be
amended without the written consent of the Company and the Majority Holders;
and

    

    WHEREAS,
Blue Ridge Investments, LLC constitutes the Majority Holders.

     

    NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as
follows:

     

    1.           Amendment. Pursuant
to Section 11 of the Warrant, the parties hereto hereby amend the Warrant, as of
the date hereof, by:

     

    (a) deleting Sections 4(d), (e) and
(f);

     

    (b) replacing Section 4(d) with the
following:

     

    “Issuance of Additional
Shares of Common Stock and Common Stock Equivalents.

    

    Until the
expiration of this Warrant, Issuer shall not issue any Additional Shares of
Common Stock or Common Stock Equivalents (otherwise than as provided in the
foregoing subsections (a) through (c) of this Section 4), at a price per share
less than the Warrant Price then in effect or without consideration, without the
prior written consent of the Majority Holders; it being acknowledged and agreed
that such consent may be withheld, delayed or conditioned by the Majority
Holders in their sole discretion.”

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.           Company Representations and
Obligations.  The Company hereby represents and warrants to the
Purchaser, as of the date hereof, and agrees as follows:

     

    
      	
               
      

            	
              a.

            	
              The
      Company has the requisite corporate power and authority to enter into this
      Warrant Amendment and to perform its obligations under the Warrant, as
      amended hereby. The execution, delivery and performance of the Warrant
      Amendment (and the Warrant, as amended hereby) by the Company have been
      duly and validly authorized by all necessary corporate action, and no
      further consent or authorization of the Company or its Board of Directors
      or stockholders is required. This Warrant Amendment has been duly executed
      and delivered by the Company and, together with the Warrant, as amended
      hereby, constitutes a valid and binding obligation of the Company
      enforceable against the Company in accordance with its terms, except as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation, conservatorship, receivership or
      similar laws relating to, or affecting generally the enforcement of,
      creditor’s rights and remedies or by other equitable principles of general
      application.  The execution and delivery of this Warrant
      Amendment, and the performance of the Warrant, as amended, in each case by
      the Company do not and will not (i) violate any provision of the Company’s
      Articles or Bylaws, (ii) conflict with, or constitute a default (or an
      event which with notice or lapse of time or both would become a default)
      under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, any material agreement, mortgage, deed of
      trust, indenture, note, bond, license, lease agreement, instrument or
      obligation to which the Company is a party or by which it or its
      properties or assets are bound, (iii) create or impose a lien, mortgage,
      security interest, charge or encumbrance of any nature on any property of
      the Company under any material agreement or any commitment to which the
      Company is a party or by which the Company is bound or by which any of its
      respective properties or assets are bound, or (iv) result in a violation
      of any federal, state, local or foreign statute, rule, regulation, order,
      judgment or decree (including federal and state securities laws and
      regulations) applicable to the Company or any of its subsidiaries or by
      which any property or asset of the Company or any of its subsidiaries are
      bound or affected.

            

    

     

    
      	
               
      

            	
              b.

            	
              Except
      as expressly set forth in Section 1 above, the Securities Purchase
      Agreement, the Warrant and any other documents related thereto, shall
      remain unmodified and in full force and effect and are hereby ratified and
      confirmed.

            

    

     

    3.           Effective Date of Warrant
Amendment. The parties agree that this Warrant Amendment shall be
effective retroactively to the date of the Warrant was first issued (i.e. July
18, 2008).

     

    4.           Governing Law;
Jurisdiction. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed in the State of New York.

     

    5.           Counterparts. This
Amendment may be executed in two or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party.
A facsimile signature shall be
deemed to be an original signature for purposes of this
Amendment.

     

    6.           Severability. If any
provision of this Amendment shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Amendment or the validity or
enforceability of this Amendment in any other jurisdiction.

    

     

    [REMAINDER
OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    [SIGNATURE
PAGES TO FOLLOW]

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

    
      	 	
              SHENGKAI
      INNOVATIONS, INC.

            
	 	 
	 	
              By:
      ____________________________

            
	 	
              Name:

            
	 	
              Title:
      Chief Executive Officer

            
	 	 
	 	 
      
	 	
              BLUE
      RIDGE INVESTMENTS, LLC

            
	 	 
      
	 	
              By:
      ____________________________

            
	 	
              Name:

            
	 	
              Title:
      Authorized SignatoryExhibit
10.1

    

    April 2,
2010

    

    Mr.
O’Neil Nalavadi

    [Address]

    

    Dear
O’Neil:

    

    Innodata
Isogen, Inc. (the “Company”) has
designated you to be a recipient of shares of common stock of the Company, par
value $.01 per share (the “Company Stock”),
subject to the restrictions and other terms set forth in this letter agreement
and in the Innodata Isogen, Inc. 2009 Stock Plan (the “Plan”).

    

    The grant
of these shares is made pursuant to the Plan.  The Plan is administered by
the Compensation Committee (the “Committee”) appointed
by the Board of Directors of the Company.  The terms of the Plan are
incorporated into this letter and in the case of any conflict between the Plan
and this letter, the terms of the Plan shall control.  A copy of the Plan
is attached to this letter.

    

    1. 
         Grant.  In
consideration of your agreements contained in this letter, the Company hereby
grants you 40,000 shares of Company Stock (the “Restricted Shares”)
as of March 15, 2010 (the “Grant Date”). 
The Restricted Shares are subject to restrictions as set forth below. 
Until these restrictions lapse, the Restricted Shares are forfeitable and
nontransferable.

    

    2. 
         Vesting.  The
Restricted Shares shall vest, and become transferable subject to applicable
securities laws restrictions, as follows:

    

    (a)           The
Restricted Shares shall vest in four equal installments beginning on the first
anniversary of the Grant Date, as follows (each a “Vesting Date”):

    

    
      	
               
      

            	
              ·

            	
              10,000
      Restricted Shares on March 15, 2011

            

    

    
      	
               
      

            	
              ·

            	
              10,000
      Restricted Shares on March 15, 2012

            

    

    
      	
               
      

            	
              ·

            	
              10,000
      Restricted Shares on November 9,
2012

            

    

    
      	
               
      

            	
              ·

            	
              10,000
      Restricted Shares on March 15, 2014

            

    

    

    (b)           Except
as otherwise provided in subsection (c) below, you must be continuously employed
by the Company (or any Subsidiary) from the Grant Date until the applicable
Vesting Date for any Restricted Shares to vest.  If your employment with
the Company (or any Subsidiary) terminates prior to a Vesting Date for any
reason, any rights you may have with regard to unvested Restricted Shares shall
be forfeited at that time, notwithstanding your return to active employment with
the Company or any Subsidiary prior to a Vesting Date.

    

    (c)

    (i) If a Change of Control occurs
during the term of the employment agreement between you and the Company
effective October 11, 2009 (the “Agreement”), any unvested Restricted Shares
will become fully vested upon the Occurrence of the Change of Control (as
defined in the Agreement).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii) If during the term of the
Agreement the Company terminates your employment for reasons other than death,
disability or for Cause, or you terminate your employment for Good Reason (all
as defined in the Agreement), 25% of the Restricted Shares will vest if 25% of
the Restricted Shares have not yet vested, and all remaining Restricted Shares
will be forfeited.

    

    3. 
         Dividends. 
During the period beginning with the Grant Date and ending with the applicable
Vesting Date or the earlier forfeiture of your Restricted Shares, you will be
entitled to receive dividends and other distributions (collectively,
“dividends”) on the Restricted Shares to the extent dividends are paid by the
Company on its authorized and issued shares of Company Stock to its shareholders
of record.  These dividends, if any, will be paid to you at the same rate
and at the same time as such dividends are paid by the Company with respect to
authorized and issued shares held by its other shareholders of
record.

    

    4. 
         Power of
Attorney.  You hereby appoint the Corporate Secretary of the Company
as your attorney in fact, with full power of substitution, and authorize him or
her to provide instructions to the Company’s registrar and transfer agent for
Company Stock as the Company may deem necessary or proper to comply with the
intent and purposes of this letter and the Plan, including, upon the occurrence
of a forfeiture pursuant to Section 2 above, to notify the registrar and
transfer agent of the forfeiture of such shares, together with instructions to
cancel the shares forfeited.  The registrar and transfer agent shall be
entitled to rely upon any notices and instructions delivered by your attorney in
fact under the terms of the Plan and this letter.

    

    5. 
         Book Entry Form; Delivery of
Shares.  The Company shall, as soon as administratively feasible
after your execution of this letter, direct the Company’s transfer agent for
Company Stock to make a book entry record showing ownership for the Restricted
Shares in your name, subject to the terms and conditions of the Plan and this
letter.  As soon as practicable following the date on which the Restricted
Shares become nonforfeitable and transferable pursuant to Section 2 above, the
Company will issue appropriate instructions  to that effect to the
transfer agent for Company Stock.  The Company may require to be placed on
any stock certificate representing the Restricted Shares any legend deemed
necessary or advisable by the Company’s securities counsel to comply with
applicable securities laws.

    

    6. 
         Rights as a
Shareholder.  Subject to the provisions of this letter, you
generally will have all of the rights of a holder of Company Stock with respect
to all of the Restricted Shares awarded to you under this letter from and after
the Grant Date until the shares either vest or are forfeited, including the
right to vote such shares and to receive dividends or other distributions paid
thereon, as provided in Section 3.

    

    7. 
         Transfer
Restrictions.  You may not sell, assign, transfer, pledge,
hypothecate or encumber your right to receive Restricted Shares under this
letter prior to the time such Restricted Shares become fully vested in
accordance with this letter.  Your ability to transfer the Restricted
Shares after they become fully vested in accordance with this letter will be
subject to compliance with applicable securities laws.

    

    8. 
         Fractional
Shares.  A fractional share of Company Stock will not be issued and
any fractional shares will be disregarded.

    

    9. 
         Adjustments.  If
the number of outstanding shares of Company Stock is increased or decreased as a
result of a stock dividend, stock split or combination of shares,
recapitalization, merger in which the Company is the surviving corporation, or
other change in the Company’s capitalization without the receipt of
consideration by the Company, the number and kind of your unvested Restricted
Shares shall be proportionately adjusted by the Committee, whose determination
shall be binding.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    10. 
       Notices.  Any
notice to be given under the terms of this letter shall be addressed to the
Corporate Secretary at 3 University Plaza, Hackensack, New Jersey 07601. 
Any notice to be given to you shall be given to you and shall be addressed to
you at your last known address at the time notice is sent.  Notices shall
be deemed to have been duly given if mailed first class, postage prepaid,
addressed as above.

    

    11. 
       Applicable Withholding
Taxes.  No Restricted Shares shall be delivered to you until you
have paid to the Company the amount that must be withheld under federal, state
and local income and employment tax laws (the “Applicable Withholding
Taxes”) or you and the Company have made satisfactory arrangements for
the payment of such taxes.

    

    12. 
       Applicable Securities
Laws.  The Company may delay vesting or delivery of Restricted
Shares to the extent the Company deems necessary or appropriate to comply with
applicable securities laws. You understand and acknowledge that federal and
state securities laws govern and restrict your right to offer, sell or otherwise
dispose of any Restricted Shares. You further understand that the certificates
for any Restricted Shares you purchase will bear such legends as the Company
deems necessary or desirable in connection with the 1933 Act or other rules,
regulations or laws.  If you are a director, officer or principal
shareholder, Section 16(b) of the Securities Exchange Act of 1934 further
restricts your ability to sell or otherwise dispose of Restricted
Shares.

    

    13. 
       No Right to Continued
Employment.  This Restricted Stock award does not confer upon you
any right with respect to continuance of employment by the Company, nor shall it
interfere in any way with the right of the Company to terminate your employment
at any time.

    

    14. 
       Governing Law. 
This Agreement shall be governed by the laws of the State of
Delaware.

    

    15. 
       Acceptance of Restricted
Shares.  By signing below, you indicate your acceptance of these
Restricted Shares and your agreement to the terms and conditions set forth in
this letter agreement, which, together with the terms of the Plan, shall become
the Company’s Restricted Stock Award Agreement with you.  You also hereby
acknowledge receipt of a copy of the Plan and agree to all of the terms and
conditions of the Plan, as it may be amended from time to time.

    

    IN
WITNESS WHEREOF, the Company has caused this Restricted Stock Award

    

    Agreement
to be signed, as of this 2nd date of April 2010.

    

    
      
        	 
      	
                  

              
	 
      	 
      
	 
      	
                By:
      Jack Abuhoff

              
	 
      	
                Its:
      Chairman and CEO

              

      

    

    

    Agreed
and Accepted:

    

    
      
        	
                  

              
	
                O’Neil
      Nalavadi

              
	 
      
	
                  

              
	
                Date

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