Document:

fs1a2ex10xv_soko.htm

     

    
      

       

      Exhibit
10.15

       

      SOKO
FITNESS & SPA GROUP, INC.

       

      STOCK
OPTION GRANT

       

      STOCK
OPTION AGREEMENT

       

      1. NOTICE OF STOCK OPTION
GRANT

      

      Gideon
Kory

      

      The
undersigned Optionee has been granted an Option to purchase Common Stock of the
Company, subject to the terms and conditions of this Option Agreement, as
follows:

       

      
        
          
            	
                    Date
      of Grant

                  	
                    July 8, 2008

                  
	
                    Vesting
      Commencement Date

                  	
                    July 8, 2008

                  
	
                    Exercise
      Price per Share

                  	
                    One dollar and forty-seven cents
      ($1.47)

                  
	
                    Total
      Number of Shares Granted

                  	
                    50,000

                  
	
                    Total
      Exercise Price

                  	
                    $73,500

                  
	
                    Type
      of Option:

                  	
                    ___  Incentive
      Stock Option

                  
	 
      	
                    _x__ Nonstatutory Stock
    Option

                  
	
                    Term/Expiration
      Date:

                  	
                    July 8, 2013 [Five (5) years from the Date of
      Grant]

                  

          

        

      

      
 

      Vesting
Schedule:

      This
Option shall be exercisable, in whole or in part, according to the following
vesting schedule:

      

      The
Shares subject to the Option shall vest over two years as follows: 16,666 shares
shall vest on July 8, 2008; 16,666 shares shall vest on July 8, 2009; and 16,668
shares shall vest on July 8, 2010, subject in each case to
Optionee's continuing to be associated with the Company as a Director on such
dates.

      

      Termination
Period:

      Upon
Optionee’s ceasing to be a Director for any reason, all unvested Shares then
subject to the Option shall immediately terminate and cease to be
outstanding.  In the event of Optionee’s termination as a Director for
any reason other than Disability or death, the vested portion of the Option
shall be exercisable for ninety (90) days after Optionee ceases to be a
Director.  In the event of Optionee’s termination as a Director by
reason of Disability, the vested portion of the Option may be exercised for one
year after the Optionee ceases to be a Director.  In the event of
Optionee's termination as a Director by reason of death, the vested portion of
the Option may be exercised for six months after Optionee ceases to be a
Director.  In no event, however, may Optionee exercise this Option
after the Term/Expiration Date as provided above.

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      2.           AGREEMENT

       

      (a) Grant of
Option.  The Board of Directors of the Company hereby grants to
the Optionee named in the Notice of Grant (the “Optionee”), an option (the
“Option”) to purchase the number of Shares set forth in the Notice of Grant, at
the exercise price per Share set forth in the Notice of Grant (the “Exercise
Price”), and subject to the terms and conditions in this Option
Agreement.

      

      If designated in the Notice of Grant as
an Incentive Stock Option (“ISO”), this Option is intended to qualify as an
Incentive Stock Option as defined in Section 422 of the
Code.  Nevertheless, to the extent that it exceeds the $100,000 rule
of Code Section 422(d), that portion of this Option shall be treated as a
Nonstatutory Stock Option (“NSO”).

       

      (b) Exercise of
Option.

       

      (i) Right to
Exercise.  This Option shall be exercisable during its term in
accordance with the Vesting Schedule set out in the Notice of Grant and with the
applicable provisions of this Option Agreement.

       

      (ii) Method of
Exercise.  This Option shall be exercisable by delivery of an
exercise notice in the form attached as Exhibit A (the
“Exercise Notice”) which shall state the election to exercise the Option, the
number of Shares with respect to which the Option is being exercised, and such
other representations and agreements as may be required by the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise Price
as to all Shares for which said Option is being exer­cised.  This
Option shall be deemed to be exercised upon receipt by the Company’s Counsel of
such fully executed Exercise Notice accompanied by the aggregate Exercise
Price.  No Shares shall be issued pursuant to the exercise of an
Option unless such issuance and such exercise comply with Applicable
Laws.  Assuming such compliance, for income tax purposes the Shares
shall be considered transferred to the Optionee on the date on which the Option
is exercised with respect to such Shares.

       

      (c) Optionee's
Representations.  In the event the Shares have not been
registered under the Securities Act of 1933, as amended, at the time this Option
is exercised, the Optionee shall, if required by the Company, concurrently with
the exercise of all or any portion of this Option, deliver to the Company’s
Counsel his or her Investment Representation Statement in the form attached
hereto as Exhibit B.

       

      (d) Lock-Up
Period.  Optionee hereby agrees that, if so requested by the
Company in connection with any registration of the offering of any securities of
the Company under the Securities Act, Optionee shall not sell or otherwise
transfer any Shares or other securities of the Company as may be requested in
writing by the Company (the “Market Black-out Period”) following the effective
date of a registration statement of the Company filed under the
Securities Act.  The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
regarding any Market Black-out Period[s].

       

      (e) Method of
Payment.  Payment of the aggregate Exercise Price shall be by
any of the following, or a combination thereof, at the election of the
Optionee:

       

       

      (i) cash or
check;

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      
        (ii) consideration
received by the Company under a formal cashless exercise program adopted by the
Company in connection with the Plan; or

      

       

      (iii) other
Shares which have been owned by the Optionee for more than six months on the
date of sur­render, which have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exer­cised.

       

      (f) Restrictions on
Exercise.  This Option may not be exercised if the method of
payment of consideration for such shares would constitute a violation of any
Applicable Law.

       

      (g) Non-Transferability of
Option.  This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be
exercised during the lifetime of Optionee only by Optionee.  The terms
of this Option Agreement shall be binding upon the executors, administrators,
heirs, successors and assigns of the Optionee.

       

      (h) Term of
Option.  This Option may be exercised only within the term set
out in the Notice of Grant, and may be exercised during such term only in
accordance with the terms of this Option.

       

      (i) 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 Shares.  THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.  THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING
THIS OPTION OR DISPOSING OF THE SHARES.

       

      (i) Exercise of
NSO.  There may be a regular federal income tax liability upon
the exercise of an NSO.  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 Shares on the date of exercise
over the Exercise Price.  If Optionee is an Employee or a former
Employee, the Company will be required to withhold from Optionee's compensation
or collect from Optionee and pay to the applicable taxing authorities an amount
in cash equal to a percentage of this compensation income at the time of
exercise, and may refuse to honor the exercise and refuse to deliver Shares if
such withholding amounts are not delivered at the time of exercise.

       

      (ii) Exercise of
ISO.  If this Option qualifies as an ISO, there will be no
regular federal income tax liability upon the exercise of the Option, although
the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price will be treated as an adjustment to the
alternative minimum tax for federal tax purposes and may subject the Optionee to
the alternative minimum tax in the year of exercise.

       

      (iii) Disposition of
Shares.  In the case of an NSO, if Shares are held for at least
one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.  In the case
of an ISO, if Shares transferred pursuant to the Option are held for at least
one year after exercise and of at least two years after the Date of Grant, any
gain realized on disposition of the Shares will also be treated as long-term
capital gain for federal income tax purposes.  If Shares purchased
under an ISO are disposed of within one year after exercise or two years after
the Date of Grant, any gain realized on such disposition will be treated as
compensation

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      income
(taxable at ordinary income rates) to the extent of the difference between the
Exercise Price and the lesser of (1) the Fair Market Value of the Shares on the
date of exercise, or (2) the sale price of the Shares.  Any additional
gain will be taxed as capital gain, short-term or long-term depending on the
period that the ISO Shares were held.

       

      (iv) Notice of Disqualifying
Disposition of ISO Shares.  If the Option granted to Optionee
herein is an ISO, and if Optionee sells or otherwise disposes of any of the
Shares acquired pursuant to the ISO on or before the later of (1) the date
two years after the Date of Grant, or (2) the date one year after the date
of exercise, the Optionee shall immediately notify the Company in writing of
such disposition.  Optionee agrees that Optionee may be subject to
income tax withholding by the Company on the compensation income recognized by
the Optionee.

       

      (j) Entire Agreement; Governing
Law.  The Option Agreement constitute the entire agreement of
the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee.  This agreement is governed by the internal substantive laws
but not the choice of law rules of the Commonwealth of
Pennsylvania.

       

      (k) No Guarantee of Continued
Service.  OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF
SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A
SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED,
BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).  OPTIONEE
FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE
PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE
OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT
CAUSE.

      

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

       

       

      
        
          
            
              
                
                  
                    	
                            OPTIONEE

                          	 	
                            SOKO
      FITNESS & SPA GROUP, INC.

                          
	 	 	 
	 	 	 
	
                            /s/ Gideon Kory

                          	 	
                            /s/ Yong Liu

                          
	
                            Signature

                          	 	
                            By:  Tong
      Liu

                          
	 
      	 	 
      
	
                            Print
      Name:  Gideon Kory

                          	 	
                            Title:  Chairman
      and
CEO

                          

                  

                

              

            

          

        

      

       

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
A

       

      STOCK
OPTION GRANT

       

      EXERCISE
NOTICE

      

      SOKO
Fitness & Spa Group, Inc.

      c/o
Buchanan Ingersoll & Rooney PC

      1835
Market Street, 15th
Floor

      Philadelphia,
PA  19103

      Attention: William W. Uchimoto,
Esquire

      

      
        	
                1.

              	
                Exercise of
      Option.  Effective as of today, ___________, 20__, the
      undersigned (“Optionee”) hereby elects to exercise Optionee's option to
      purchase _________ shares of the Common Stock (the “Shares”) of SOKO
      Fitness & Spa Group, Inc. (the “Company”) under and pursuant to the
      Stock Option Agreement dated ________, 20  (the
      “Option Agreement”).

              

      

       

      
        	
                2.  

              	
                Delivery of
      Payment.  Purchaser herewith delivers to the Company the
      full purchase price of the Shares, as set forth in the Option
      Agreement.

              

      

       

      
        	
                3.  

              	
                Representations of
      Optionee.  Optionee acknowledges that Optionee has
      received, read and understood the Option Agreement and agrees to abide by
      and be bound by its terms and conditions.  In the event the
      Shares have not been registered under the Securities Act of 1933, as
      amended, at the time this Option is exercised, the Optionee shall, if
      required by the Company, concurrently with the exercise of all or any
      portion of this Option, deliver to the Company his or her Investment
      Representation Statement in the form attached hereto as Exhibit
      A.

              

      

       

      
        	
                4.  

              	
                Rights as
      Shareholder.  Until the issuance of the Shares (as
      evidenced by the appropriate entry on the books of the Company or of a
      duly authorized transfer agent of the Company), no right to vote or
      receive dividends or any other rights as a shareholder shall exist with
      respect to the Optioned Stock, notwithstanding the exercise of the
      Option.  The Shares shall be issued to the Optionee as soon as
      practicable after the Option is exercised.  No adjustment shall
      be made for a dividend or other right for which the record date is prior
      to the date of issuance, except as provided herein as setforth
      below:

              

      

       

      (a)           Adjustments Upon Changes in Capitalization
or Change of Control.

       

      (i)           Changes in
Capitalization.  Subject to any required action by the
stockholders of the Company, the number of Shares covered by this Option , as
well as the price per Share covered by this Option, shall be proportionately
adjusted for any increase or decrease in the number of issued Shares resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued Shares effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the
Company

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      shall not
be deemed to have been “effected without receipt of
consideration.”  Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and
conclusive.  Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of Shares subject to this
Option.

      

      
        	
                (ii)

              	
                Change of
      Control.  In the event of a Change of Control, this
      Option shall be assumed or an equivalent award substituted by the
      successor corporation or a Parent or Subsidiary of the successor
      corporation. (For the
      purpose of this Agreement, a "Change in Control" shall mean: (a) the
      acquisition, directly or indirectly, other than from the Company, by any
      person, entity or "group" (within the meaning of Section13(d)(3) or
      14(d)(2) of the Securities Exchange Act of 1934, as amended (the"Exchange
      Act"), excluding, for this purpose, the Company, its subsidiaries, and any
      employee benefit plan of the Company or its subsidiaries which acquires
      beneficial ownership of voting securities of the Company) (a "Third
      Party") of beneficial ownership (within the meaning of Rule 13d-3 of the
      Exchange Act) of more than 50% of the combined voting power of the
      Company's then outstanding voting securities entitled to vote generally in
      the election of directors; or (b) individuals who, as of the date hereof,
      constitute the Board (the "Incumbent Directors") cease for any reason to
      constitute at least a majority of the Board, provided that any person
      becoming a director subsequent to the date hereof whose election, or
      nomination for election by the Company's shareholders, was approved by a
      vote of at least a majority of the Incumbent Directors who are directors
      at the time of such vote shall be, for purposes of this Agreement, an
      Incumbent Director; or (c) consummation of (i) a reorganization, merger or
      consolidation, in each case, with respect to which persons who were the
      shareholders of the Company immediately prior to such reorganization,
      merger or consolidation (other than the acquirer) do not, immediately
      thereafter, beneficially own more than 50% of the combined voting power of
      the reorganized, merged or consolidated company's then outstanding voting
      securities entitled to vote generally in the election of directors, or
      (ii) a liquidation or dissolution of the Company or the sale of all or
      substantially all of the assets of the Company (whether such assets are
      held directly or indirectly) to a Third Party)  In the
      event that the successor corporation refuses to assume or substitute this
      Option: (i) the Optionee shall vest in fifty percent (50%) of Optionee’s
      unvested Options, which shall be determined as of the date that the
      successor corporation indicates its refusal to assume or substitute this
      Option, and (ii) any Company repurchase option applicable to any Shares
      acquired upon exercise of an Option shall lapse as to all such
      Shares.  If this Option becomes fully vested and exercisable in
      lieu of assumption or substitution in the event of a Change of Control,
      the Company’s Counsel shall notify the Optionee in writing or
      electronically that the Option shall be fully vested and exercisable for a
      period of fifteen (15) days from the date of such notice, and this Option
      shall terminate upon the expiration of such period.  For the
      purposes of this paragraph, this Option shall be considered assumed if,
      following the Change of Control, the Option confers the right to purchase
      or receive, for each Share of Optioned Stock subject to an Option
      immediately prior to the Change of Control, the consideration (whether
      stock, cash, or other securities or property) received pursuant to the
      Change of Control by holders of Common Stock for each Share held on the
      effective date of the transaction (and if holders were offered a choice of
      consideration, the type of consideration chosen by the holders of a
      majority of the

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                 
      

              	
                outstanding
      Shares); provided, however, that if such consideration received pursuant
      to the Change of Control is not solely common stock of the successor
      corporation or its Parent, the Company’s Counsel may, with the consent of
      the successor corporation, provide for the consideration to be received
      upon the exercise of an Option, for each Share of Optioned Stock subject
      to the Option, to be solely common stock of the successor corporation or
      its Parent equal in Fair Market Value to the per share consideration
      received by holders of Common Stock  pursuant to the Change of
      Control.

              

      

       

      (iii)           Termination without Cause
following Change of Control.  In the event of a Change of
Control, if this Optionee is terminated as a Director by the Company (or the
successor entity) without Cause within one (1) year following such Change of
Control, Optionee shall vest in fifty percent (50%) of Optionee’s unvested
Options, which shall be determined as of the date of such
termination.

       

      
        	
                5.  

              	
                Tax
      Consultation.  Optionee understands that Optionee may
      suffer adverse tax consequences as a result of Optionee's purchase or
      disposition of the Shares.  Optionee acknowledges that Optionee
      has the ability to speak with his or her own tax consultants in connection
      with the purchase or disposition of the Shares and that Optionee is not
      relying on the Company for any tax
advice.

              

      

       

      
        	
                6.  

              	
                Successors and
      Assigns.  The Company may assign any of its rights under
      this Exercise Notice to single or multiple assignees, and this Exercise
      Notice shall inure to the benefit of the successors and assigns of the
      Company.  Subject to the restrictions on transfer herein set
      forth, this Exercise Notice shall be binding upon Optionee and his or her
      heirs, executors, administrators, successors and
  assigns.

              

      

       

      
        	
                7.  

              	
                Interpretation.  Any
      dispute regarding the interpretation of this Exercise Notice shall be
      submitted by Optionee or by the Company to the Board of Directors of the
      Company, which shall review such dispute at its next regular
      meeting.  The resolution of such a dispute by the Board of
      Directors shall not be binding on all parties, unless such resolution is
      agreed to in writing by the
parties.

              

      

       

      
        	
                8.  

              	
                Governing Law;
      Severability.  This Exercise Notice is governed by the
      internal substantive laws but not the choice of law rules, of the
      Commonwealth of Pennsylvania.

              

      

       

      
        	
                9.  

              	
                Entire
      Agreement.  The Option Agreement is incorporated herein
      by reference.  This Exercise Notice, the Option Agreement and
      the Investment Representation Statement constitute the entire agreement of
      the parties with respect to the subject matter hereof and supersede in
      their entirety all prior undertakings and agreements of the Company and
      Optionee with respect to the subject matter hereof, and may not be
      modified adversely to the Optionee's interest except by means of a writing
      signed by the Company and Optionee.

              

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Submitted
      by:

                                          	 	
                                            Accepted
      by:

                                          
	 	 	 
	
                                            OPTIONEE

                                          	 	
                                            SOKO
      FITNESS & SPA GROUP, INC.

                                          
	 
      	 	 
      
	 	 	 
	
                                            Signature

                                          	 	
                                            By:

                                          
	 	 	 
	 
      	 	 
      
	
                                            Print
      Name:

                                          	 	
                                            Title:

                                          
	 
      	 	 
      
	 	 	 
	
                                            Address:

                                          	 	
                                            Date
      Received

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      EXHIBIT
B

       

      INVESTMENT
REPRESENTATION STATEMENT

       

      OPTIONEE:

      COMPANY:                                           SOKO FITNESS & SPA GROUP,
INC.

      SECURITY:                                            
COMMON STOCK

      AMOUNT:

      DATE:

      

      In
connection with the purchase of the above-listed securities, the undersigned
Optionee represents to the Company the following:

      

      (a)           Optionee
is aware of the Company's business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the securities.  Optionee is
acquiring these securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act of 1933, as amended (the “Securities
Act”).

       

      (b)           Optionee
acknowledges and understands that the securities constitute “restricted
securities” under the Securities Act and have not been registered under the
Securities Act in reliance upon a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of Optionee's investment
intent as expressed herein.  In this connection, Optionee understands
that, in the view of the Securities and Exchange Commission, the statutory basis
for such exemption may be unavailable if Optionee's representation was
predicated solely upon a present intention to hold these Securities for the
minimum capital gains period specified under tax statutes, for a deferred sale,
for or until an increase or decrease in the market price of the securities, or
for a period of one year or any other fixed period in the
future.  Optionee further understands that the securities must be held
indefinitely if the Company ceases to be a reporting company under the Exchange
Act or an exemption from registration is unavailable and as such Optionee
acknowledges that Optionee must bear the economic risk of the investment for an
indefinite period of time.  Optionee further acknowledges and
understands that the Company is under no obligation to register the
securities.  Optionee understands that the certificate evidencing the
securities will be imprinted with a legend which prohibits the transfer of the
securities unless they are registered or such registration is not required in
the opinion of counsel satisfactory to the Company, and any other legend
required under applicable state securities laws.

       

      (c) Optionee
is familiar with the provisions of Rule 701 and Rule 144, each
promulgated under the Securities Act, which, in substance, permit limited public
resale of “restricted securities” acquired, directly or indirectly from the
issuer thereof, in a non-public offering subject to the satisfaction of certain
conditions.  Rule 701 provides that if the issuer qualifies under
Rule 701 at the time of the grant of the Option to the Optionee, the
exercise will be exempt from registration under the Securities
Act.  In the event the Company becomes subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
ninety (90) days thereafter (or such

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      longer
period as any market stand-off agreement may require) the Securities exempt
under Rule 701 may be resold, subject to the satisfaction of certain of the
conditions specified by Rule 144, including:  (1) the resale
being made through a broker in an unsolicited “broker's transaction” or in
transactions directly with a market maker (as said term is defined under
the Securities Exchange Act of 1934); and, in the case of an affiliate,
(2) the availability of certain public information about the Company, (3)
the amount of securities being sold during any three month period not exceeding
the limitations specified in Rule 144(e), and (4) the timely filing of a
Form 144, if applicable.

      

      In the
event that the Company does not qualify under Rule 701 at the time of grant
of the Option, then the securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which
requires the resale to occur not less than one year after the later of the
date the securities were sold by the Company or the date the securities were
sold by an affiliate of the Company, within the meaning of Rule 144; and,
in the case of acquisition of the securities by an affiliate, or by a
non-affiliate who subsequently holds the securities less than two years, the
satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of
the paragraph immediately above.

      

      (d)           Optionee
further understands that in the event all of the applicable requirements of
Rule 701 or 144 are not satisfied, registration under the Securities Act,
compliance with Regulation A, or some other registration exemption will be
required; and that, notwithstanding the fact that Rules 144 and 701 are not
exclusive, the Staff of the Securities and Exchange Commission has expressed its
opinion that persons proposing to sell private placement securities other than
in a registered offering and otherwise than pursuant to Rules 144 or 701 will
have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and
their respective brokers who participate in such transactions do so at their own
risk.  Optionee understands that no assurances can be given that any
such other registration exemption will be available in such event.

       

      

      
        
          
            
              
                	
                        Signature
      of Optionee:

                         

                         

                      
	 
      
	
                        Date:____________________________,
      20fs1a2ex10xvi_soko.htm

     

    
      

       

      Exhibit
10.16

      
        	 
      

      

      
        	 
      

      

      
        
          	
                   

                   

                   

                  
                    Placement
      Agent Engagement Letter

                  

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                  

                

        

      

      
        	
                2008

              

      

      
        	
                Dear
      Chairman Tong Liu,

              

      

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
 

       

      
        

         

      

       

      Etech
Agreement Page 1 

      
        

      

       

      
        We herein
confirm our agreement with you as follows:

      

      
      

       

      
        	
                 
      

              	
                1.
      Harbin Mege Union (HK) International Group and its related holding
      entities and joint venture affiliates (together, the “Company”) hereby
      engage Etech Securities, Inc. (the “ESI”) as Company’s exclusive placement
      agent to raise capital through a private investment in public equity (the
      “PIPE”) on a best effort basis for a period of twelve (12) months from 7th
      day of Feb, 2007 (the “Signing Date”), and which exclusive period may be
      extended for a further period by mutual written consent of the Company and
      ESI.

              

      

       

      
        	
                 
      

              	
                2.
      ESI accepts the engagement described in the preceding paragraph and agrees
      to assist Company with:

              

      

       

      
        	
                a)  

              	
                Providing
      full financial consulting and advisory services on capital raise,
      including enterprise valuation, roadshow preparation, deal structure
      design, etc.

              

      

       

      
        	
                b)  

              	
                Identifying
      and contacting potential investors;

              

      

       

      
        	
                c)  

              	
                Structuring
      the offering and the terms of the PIPE with
  investors;

              

      

       

      
        	
                d)  

              	
                Negotiating
      and closing the PIPE at the minimum amount of
    USD$3,000,000;

              

      

       

      
        	
                 
      

              	
                3.
      The terms and conditions set forth herein shall be and remain in effect
      for a period of three (3) months, being the exclusive period, from the
      date that the contract signed (the “Signing Date”) by
      Company and is terminable by either party, with or without cause, upon
      sixty (60) days written notice to the other; provided, however, that the
      provisions of paragraphs 7 through 14 and 16 shall survive for twelve (12)
      months following the termination hereof, whether by expiration of the term
      provided for herein, or by action of Company or ESI or
      otherwise.

              

      

       

      
        	
                 
      

              	
                4.
      Within ten (10) days following the Signing Date, Company shall deliver to
      ESI the names of all parties with whom or with which Company has had,
      prior to the dates hereof, contacted concerning an acquisition,
      divestitures, financing arrangements or other transactions (of any of the
      types contemplated hereby) involving
Company.

              

      

       

      
        	
                 
      

              	
                5.
      Within ten (10) business days following the termination (for whatever
      reason) of the agreement set forth herein, ESI will deliver to Company a
      listing of all investors (the “Prospect List”) that ESI
      had contacted and signed NDA in regards to the
  PIPE.

              

      

       

      
        	
                 
      

              	
                6.
      Company will promptly and at its own expense, furnish to ESI all
      information concerning Company which ESI reasonably considers necessary or
      appropriate in connection with its rendering of the services described
      herein; Company will, promptly and at its own expense, provide ESI with
      access to its directors, officers,

              

      

       

                                                    

      
        
          

        
Confidential Document                  

      
         

        
          
            Initials
(Company)_____________

            Initials (E.S.I.)________________

          

        

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        

         

      

      
        Etech
Agreement Page 2 

        
          

        

      

       

      employees,
counsel, accountants and other advisors or consultants, as well as access to its
facilities, and authorize the foregoing persons to cooperate fully with ESI in
connection with its rendering of the services described by this engagement
letter.

       

      
        	
                7.  

              	
                Company
      represents and warrants to ESI that all information concerning Company
      which is furnished by it to ESI pursuant to or in connection with the
      agreement set forth herein (including without limitation information
      provided pursuant to the preceding paragraph by Company or the persons
      described therein) shall be true and accurate in all material respects and
      not contain any untrue or inaccurate statement of a material fact, or omit
      to state a material fact necessary in order to make such the statements
      comprising such information, in light of the circumstances under which
      they are made, not misleading; Company understands and acknowledges that
      ESI will rely upon and utilize the information supplied to it by Company
      and the persons described in the preceding paragraph, as well as any other
      publicly available information concerning Company, without any independent
      verification or investigation of such
  information.

              

      

       

      
        	
                8.  

              	
                Neither
      this letter, the terms and conditions set forth herein nor said advices
      (verbal or written) provided to Company by ESI pursuant herein shall be
      made available to third parties, by public disclosures thereof or
      otherwise, without the prior written consent of ESI, nor may ESI be
      otherwise referred to publicly by Company or any of the persons described
      in paragraph six (6), above, without its prior written
      consent.

              

      

       

      
        	
                9.  

              	
                In
      as much as ESI will be acting on behalf of Company, as its exclusive agent
      and consultant, in rendering the services described herein, Company agrees
      to indemnify ESI in accordance with the indemnification provisions set
      forth in Appendix I
      attached hereto, and the parties agree to the confidentiality
      provisions set forth in Appendix II
      attached hereto, all of which are incorporated herein by this
      reference. These provisions will apply regardless of whether the proposed
      PIPE is consummated.

              

      

       

      
        	
                10.  

              	
                In
      consideration of the services to be provided by ESI under the agreement
      set forth herein, Company agrees to pay ESI as
  follows:

              

      

       

      
        	
                (a)  

              	
                Concurrently
      with engagement, Company shall retain and wire to ESI a non­refundable
      retainer fee in amount of USD
30,000.

              

      

       

      
        	
                (b)  

              	
                Concurrently
      with the consummation of the PIPE, Company shall pay ESI in cash a fee
      equals to seven percent (7%) of the total proceeds (consideration,
      including but not limited to straight and structured equity and debt
      financings) received by Company through the PIPE. Company reserves the
      full right to accept or reject any proposed
  investment.

              

      

       

      
        	
                (c)  

              	
                Upon
      the closing of the PIPE, Company will issue to ESI warrants for the
      purchase of an amount of the securities equals to eight percent (8%) of
      total

              

      

       

      
                                                      

        
          
            

          
Confidential Document                  

        
           

          
            
              Initials
(Company)_____________

              Initials
(E.S.I.)________________

            

          

        

      

                                            

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      

       

      
        

         

      

      
        Etech
Agreement Page 3 

        
          

        

      

      
         

        shares
issued to the investors through the offering (the “Placement
AgentWarrants”).

      

      
      

       

      The
Placement Warrants will be exercisable at a strike price equal to
one­hundred-percent (100%) of the equity purchasing price agreed by both
investors and Company, and such Placement Warrants will have a term of three (3)
years. ESI shall reverse the right to exercise the Placement Warrants to
purchase Company’s privately held equity (the 144A shares) or Company’s publicly
traded equity if Company decided to achieve a public listing in the
future.

       

      
        	
                 
      

              	
                (d)
      If, at any time within twelve (12) months following the termination or
      expiration of the agreement set forth herein, Company announces or enters
      into an agreement or letter of intent with respect to an investment which
      involves a party or parties included on the Prospect List described in
      paragraph 5 above, and such offering is thereafter consummated, Company
      shall pay to ESI, upon the consummation of such investment, a fee of seven
      percent (7%) cash of the total consideration and eight percent (8%) of
      Placement Agent Warrants (of total equity sold to or exercised by the
      investor) valid for three (3) years, which the exercise price of warrants
      equals to the purchase/exercise price of
  investors.

              

      

       

      
        	
                11.  

              	
                Company
      agrees to hire and pay for the necessary third parties (such as accounting
      firms, law firms, etc.) to provide necessary documentations that requested
      by investors prior to the consummation of the
  PIPE.

              

      

       

      
        	
                12.  

              	
                During
      the term of exclusivity, Company agrees not to use any other investment
      banking firms expect ESI to raise additional (new) capital (including
      debt). Company also warrants to ESI that no other broker, dealer, finder
      representative or other person or entity has an interest in any
      compensation payable to ESI in accordance with the terms of the agreement
      set forth herein.

              

      

       

      
        	
                13.  

              	
                Upon
      the consummation of the PIPE, ESI may, in its sole discretion and from
      time to time, place notices and/or advertisements in financial and other
      publications, at its own expense, describing its services to Company in
      connection with such transaction.

              

      

       

      
        	
                14.  

              	
                The
      terms of (i) the agreement set forth herein and (ii) the indemnity
      agreement referred to in paragraph 9, above, shall insure to the benefit
      of and be binding upon Company, ESI and their respective successors and
      assigns; nothing expressed or mentioned herein is intended or shall be
      construed to give any person or corporation, other than Company, ESI and
      their respective successors and assigns and the controlling persons (if
      any), officers, directors, employees, agents and counsel referred to
      herein and in such indemnification agreement, any legal or equitable
      right, remedy or claim under or in respect the agreement set forth herein
      or such indemnification agreement or any provision hereof or
      thereof.

              

      

       

      
                                                      

        
          
            

          
Confidential Document                  

        
           

          
            
              Initials
(Company)_____________

              Initials
(E.S.I.)________________

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

                                            

      

       

      
        

         

      

      
        
          Etech
Agreement Page 4

          
            

          

        

        
           

        

      

       

      
        	
                15.  

              	
                All
      notices or communications relating to the agreement set forth herein shall
      be in writing. If sent to Company, such notices and communications shall
      be mailed, delivered or telegraphed and confirmed to Company at the
      following address:

              

      

       

       

      _________________________

      _________________________

      _________________________

       

      If sent
to ESI, such notices and communications shall be mailed, delivered or
telegraphed and confirmed to ESI at the following address:

       

      Etech
Securities, Inc.

      800 E.
Colorado Blvd., Suite 100

      Pasadena,
CA 91101 U.S.A.

       

      ESI may
change its address for receiving notices by giving written notice to Company;
Company may change its address for receiving notices by giving written notice to
ESI.

       

      
        	
                16.  

              	
                This
      agreement including its Appendixes may NOT be modified, altered or amended
      except by mutual agreement in writing signed by Company and ESI; such
      agreement shall be governed by and construed under the law of the State of
      California.

              

      

       

      Please
confirm that the foregoing correctly sets forth our understanding by signing the
enclosed duplicate of this letter where indicated below and returning it to us,
whereupon this letter shall constitute a binding agreement between
us.

       

      Very
truly yours, 

       

      Etech Securities
Inc.

       

      by 
___________________________

      N. Jay
Liang                                                                Date:
2007/02/07 

      President
and CEO

       

      Harbin
Mege Union (HK) International Group

       

      Accepted

       

       

      
                                                      

        
          
            

          
Confidential Document                  

        
           

          
            
              Initials
(Company)_____________

              Initials
(E.S.I.)________________

            

          

        

      

                                         

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      
        

         

      

       

      
        

      

      
        
          
            Etech
Agreement Page 5

            
              

            

          

          
             

             

             

            
              by 
___________________________

              Tong
Liu                                                                Date:
2007/02/07 

              Chairman and
CEO

            

             

             

          

        

      

       

       

       

       

       

       

       

       

       

      APPENDIX
I

       

      INDEMNIFICATION
AND CONTRIBUTION

      
        
                                                        

          
            
              

            
Confidential Document                  

          
             

            
              
                Initials
(Company)_____________

                Initials
(E.S.I.)________________

              

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
         

         

        

         

      

      
        
          
            Etech
Agreement Page 6

            
              

            

          

          
             

          

        

      

       

       

      
        Company
agrees to indemnify and hold harmless ESI and its affiliates (as defined in Rule
405 under the Securities Act of 1933, as amended) and their respective
directors, officers, employees, agents and controlling persons (ESI and each
such person being an “Indemnified Party”) from and
against all losses, claims, damages and liabilities (or actions, including
shareholder actions, in respect thereof), joint or several, to which such
Indemnified Party may become subject under any applicable federal or state law,
or otherwise, which are related to or result from the performance by ESI of the
services contemplated by or the engagement of ESI pursuant to, this Agreement
and will promptly reimburse any Indemnified Party for all reasonable expenses
(including reasonable counsel fees and expenses) as they are incurred in
connection with the investigation of, preparation for or defense arising from
any threatened or pending claim, whether or not such Indemnified Party is a
party and whether or not such claim, action or proceeding is initiated or
brought by Company. Company will not be liable to any Indemnified Party under
the foregoing indemnification and reimbursement provisions, (i) for any
settlement by an Indemnified Party effected without its prior written consent
(not to be unreasonably withheld); or (ii) to the extent that any loss, claim,
damage or liability is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted primarily from ESI’s willful misconduct
or gross negligence. Company also agrees that no Indemnified Party shall have
any liability (whether direct or indirect, in contract or tort or otherwise) to
Company or its security holders or creditors related to or arising out of the
engagement of ESI pursuant to, or the performance by ESI of the services
contemplated by, this Agreement except to the extent that any loss, claim,
damage or liability is found in a final, non­appealable judgment by a court
of competent jurisdiction to have resulted primarily from ESI’s willful
misconduct or gross negligence.

       

      Promptly
after receipt by an Indemnified Party of notice of any intention or threat to
commence an action, suit or proceeding or notice of the commencement of any
action, suit or proceeding, such Indemnified Party will, if a claim in respect
thereof is to be made against Company pursuant hereto, promptly notify Company
in writing of the same. In case any such action is brought against any
Indemnified Party and such Indemnified Party notifies Company of the
commencement thereof, Company may elect to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Party, and an Indemnified
Party may employ counsel to participate in the defense of any such action
provided, that the employment of such counsel shall be at the Indemnified
Party’s own expense, unless (i) the employment of such counsel has been
authorized in writing by Company, (ii) the Indemnified Party has reasonably
concluded (based upon advice of counsel to the Indemnified Party) that there may
be legal defenses available to it or other Indemnified Parties that are
different from or in addition to those available to Company, or that a conflict
or potential conflict exists (based upon advice of counsel to the Indemnified
Party) between the Indemnified Party and Company that makes it impossible or
inadvisable for counsel to the Indemnifying Party to conduct the defense of both
Company and the Indemnified Party (in which case Company will not have the right
to direct the defense of such action on behalf of the Indemnified Party), or
(iii) Company has not in fact employed counsel reasonably satisfactory to the
Indemnified Party to assume the defense of such action within a reasonable time
after receiving notice of the action, suit or proceeding, in each of which cases
the reasonable fees, disbursements and other charges of such counsel will be at
the

       

       

      
                                                      

        
          
            

          
Confidential Document                  

        
           

          
            
              Initials
(Company)_____________

              Initials
(E.S.I.)________________

            

          

        

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      

       

       

      
        

         

      

       

      
        

        
          
            
              Etech
Agreement Page 7

              
                

              

            

            
               

            

          

        

      

       

      
        expense
of Company; provided, further, that in no event shall Company be required to pay
fees and expenses for more than one firm of attorneys representing Indemnified
Parties unless the defense of one Indemnified Party is unique or separate from
that of another Indemnified Party subject to the same claim or action. Any
failure or delay by an Indemnified Party to give the notice referred to in this
paragraph shall not affect such Indemnified Party’s right to be indemnified
hereunder, except to the extent that such failure or delay causes actual harm to
Company, or prejudices its ability to defend such action, suit or proceeding on
behalf of such Indemnified Party.

      

      APPENDIX
II

       

      INFORMATION
TO BE SUPPLIED; CONFIDENTIALITY.

       

      In
connection with ESI’s activities on behalf of Company, Company will furnish ESI
with all financial and other information regarding Company that ESI reasonably
believes appropriate to its assignment (all such information so furnished by
Company, whether furnished before or after the date of this Agreement, being
referred to herein as the “Information”). Company will provide ESI with access
to the officers, directors, employees, independent accountants, legal counsel
and other advisors and consultants of Company. Company recognizes and agrees
that ESI (i) will use and rely primarily on the Information and information
available from generally recognized public sources in performing the services
contemplated by this Agreement without independently verifying the Information
or such other information, (ii) does not assume responsibility for the accuracy
of the Information or such other information, and (iii) will not make an
appraisal of any assets or liabilities owned or controlled by Company or its
market competitors.

       

      ESI will
maintain the confidentiality of the Information and, unless and until such
information shall have been made publicly available by Company or by others
without breach of a confidentiality agreement, shall disclose the Information
only as authorized by Company or as required by law or by order of a
governmental authority or court of competent jurisdiction. In the event that ESI
is legally required to make disclosure of any of the Information, ESI will give
notice to Company prior to such disclosure, to the extent that ESI can
practically do so.

       

      The
foregoing paragraph shall not apply to information that:

       

      
        	
                (i)  

              	
                at
      the time of disclosure by Company is, or thereafter becomes, generally
      available to the public or within the industries in which Company or ESI
      or its affiliates conduct business, other than as a direct result of a
      breach by ESI of its obligations under this
  Agreement;

              

      

       

      
        	
                (ii)  

              	
                prior
      to or at the time of disclosure by Company, was already in the possession
      of, or conceived by, ESI or any of its affiliates, or could have been
      developed by them from information then in their possession, by the
      application of other information or techniques in their possession,
      generally available to the public, or available to ESI or its affiliates
      other than from Company;

              

      

       

       

      
         

        
                                                        

          
            
              

            
Confidential Document                  

          
             

            
              
                Initials
(Company)_____________

                Initials
(E.S.I.)________________

              

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      

       

       

      
        

         

         

      

      
        
          
            Etech
Agreement Page 8

            
              

            

          

          
             

          

        

      

       

      
        	
                (iii)  

              	
                at
      the time of disclosure by Company or thereafter, is obtained by ESI or any
      of its affiliates from a third party who ESI reasonably believes to be in
      possession of the information not in violation of any contractual, legal
      or fiduciary obligation to Company with respect to that information;
      or

              

      

       

      
        	
                (iv)  

              	
                is
      independently developed by ESI or its
  affiliates.

              

      

       

      Nothing
in this Agreement shall be construed to limit the ability of ESI or its
affiliates to pursue, investigate, analyze, invest in, or engage in investment
banking, financial advisory or any other business relationship with entities
other than Company, notwithstanding that such entities may be engaged in a
business which is similar to or competitive with the business of Company, and
notwithstanding that such entities may have actual or potential operations,
products, services, plans, ideas, customers or supplies similar or identical to
Company’s, or may have been identified by Company as potential merger or
acquisition targets or potential candidates for some other business combination,
cooperation or relationship. Company expressly acknowledges and agrees that it
does not claim any proprietary interest in the identity of any other entity in
its industry or otherwise, and that the identity of any such entity is not
confidential information.

       

       

       

       

       

      
        
           

          
                                                          

            
              
                

              
Confidential Document                  

            
               

              
                
                  Initials
(Company)_____________

                  Initials
(E.S.I.)________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]