Document:

Unassociated Document

    Execution
      Copy

    Amendment
      No. 1 to Undertaking Agreement

    [Li
      Related Holders]

    

    This
      Amendment No. 1 to Undertaking Agreement (this
      “Amendment”)
      is
      made and entered into as of September 26, 2008, by and among Heckmann
      Corporation,
      a
      Delaware corporation (“Parent”),
      China
      Water and Drinks, Inc.,
      a
      Nevada corporation (the “Company”)
      and
      the Persons and Entities listed on Schedule
      A
      hereto
      (each a “Selling
      Stockholder,”
and
      collectively, the “Selling
      Stockholders”),
      and
      amends that certain Undertaking Agreement (the “Agreement”)
      by and
      among Parent, the Company and the Selling Stockholders dated as of May 19,
      2008.

    

    Recitals

    

    A. Parent,
      Heckmann Acquisition II Corp., a Delaware corporation and a wholly owned
      Subsidiary of Parent (“Merger
      Sub”)
      and
      the Company have entered into an agreement and plan of merger and reorganization
      (the “Merger Agreement”),
      pursuant to which the Company will be merged with and into Merger Sub (the
      “Merger”)
      with
      the Company ceasing to exist and Merger Sub remaining as a wholly owned
      subsidiary of Parent.

    

    B. In
      light
      of extraordinary conditions in world credit and capital markets, the desire
      of
      Parent to preserve its cash in light of these conditions, the de minimis price
      paid for Company Common Stock by the Selling Stockholders, and other factors,
      the Selling Stockholders have agreed to sell all of their shares of Company
      Common Stock, whether owned directly or indirectly, to Parent immediately prior
      to the Effective Time of the Merger at a price significantly lower than the
      Merger consideration.

    

    C. Pursuant
      to Section 5.3 of the Agreement, Parent, the Company and a majority in interest
      of the Selling Stockholders may amend the Agreement by signing an instrument
      in
      writing.

    

    D. Capitalized
      terms used in this Amendment and not otherwise defined shall have the meaning
      ascribed to such terms in the Agreement.

    

    Now
      therefore, in accordance with the procedures for amendment of the Agreement
      set
      forth in Section 5.3 thereof, and in consideration of the foregoing and the
      mutual agreements herein set forth, the parties hereby agree as
      follows:

    

    SECTION
      1: Amendment

     

    1.1 Recital
      F
      of the Agreement is amended and restated in its entirety to read as
      follows:

     

    “The
      Selling Stockholders desire to sell their Shares to Parent and provide a general
      release of claims against the Company, Parent and Merger Sub.”

     

    1.2 Section
      1
      of the Agreement is amended and restated in its entirety to read as
      follows:

     

    “SECTION
      1: Sale
      and Purchase of Shares.

     

    1.1 Sale.
      Upon
      the terms and subject to the conditions set forth in this Agreement, immediately
      prior to the Effective Time (the “Closing”):

     

    1.1(a)  The
      Selling Stockholders shall sell, assign, transfer, convey and deliver to Parent,
      and Parent shall purchase from the Selling Stockholders, the Shares, free and
      clear of any and all Liens. The Shares constitute 100% of the Shares held,
      beneficially and of record, by the Selling Stockholders. Each Selling
      Stockholder will execute such further instruments and provide such further
      information, including tax declarations, as Parent shall reasonably request
      in
      connection with the foregoing. Each Selling Stockholder acknowledges that his,
      her or its election to sell Shares under this Agreement was made on a completely
      voluntary basis.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.1(b)
      In
      consideration for the transfer of Shares pursuant to Section
      1.1(a),
      Parent
      shall pay to each Selling Stockholder the amount in cash set forth opposite
      such
      Selling Stockholder’s name on Schedule
      A
      (the
“Purchase
      Price”)
      by
      wire transfer of immediately available funds to such bank accounts as such
      Selling Stockholder shall designate in writing to Parent within 3 days of the
      purchase. 

     

    1.2 Termination. 
      This Agreement shall terminate, without liability to any party other than for
      willful breach, upon any termination of the Merger Agreement. The provisions
      of
Section
      5
      (Miscellaneous) and Section
      4.4
      (Public
      Disclosure) shall survive any termination.

     

    1.3 Conditions. 
      Parent's obligation to consummate the Contemplated Transactions shall be subject
      to:

     

    1.3(a) satisfaction
      of all pre-closing conditions to the Merger Agreement, including all necessary
      shareholder approvals;

     

    1.3(b) the 
      receipt of all necessary consents or approvals, the making of any
      required filings or applications, and the absence of any legal or
      regulatory restriction, pending or threatened, in connection with the
      Contemplated Transactions, including the absence of any pending or
      threatened restrictions pertaining to ownership of the Shares
      or operation of the business of the Company; and

     

    1.3(c) the
      representations and warranties of the Selling Stockholders’ being true and
      correct as of the Closing, and all obligations required to be performed by
      the
      Selling Stockholders prior to the Closing having been so performed.

     

    1.3 The
      final
      sentence of Section 2.3 of the Agreement is amended and restated in its entirety
      to read as follows: 

     

    “Upon
      consummation of the Contemplated Transactions, Parent will own the Shares of
      such Selling Stockholder free and clear of any and all Liens.”

     

    1.4 The
      capitalized word “Termination” is deleted and replaced with the words
“termination of the Merger” in Sections 4.1(a), 4.1(b) and 4.1(c) of the
      Agreement.

     

    1.5 The
      capitalized words “Effective Time” are deleted in each place where they appear
      in the Agreement, except where they appear in Recital D, Recital E and Exhibit
      A
      of the Agreement, and are replaced with the word “Closing.”

     

    1.6 Schedule
      A to the Agreement is amended and replaced in its entirety with Schedule
      A
      attached
      hereto.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    SECTION
      2: MISCELLANEOUS PROVISIONS

     

    2.1 Effectiveness.
      This
      Amendment shall become effective upon execution.

     

    2.2 Limited
      Nature of Amendment.
      Except
      as expressly amended hereby, the Agreement remains in full force and effect
      in
      accordance with its terms and this Amendment shall not by implication or
      otherwise alter, modify, amend or in any way affect any of the terms,
      conditions, obligations, representations, warranties, covenants or agreements
      contained in the Agreement, all of which are ratified and affirmed in all
      respects and shall continue in full force and effect. In addition, as to Cheng
      Feng, this document supersedes the agreement entitled “Cash/Stock Election (Chen
      Feng)” dated as of June 10, 2008 and, upon execution of this Agreement by Chen
      Feng, his election made under that agreement to receive cash at $5.00 per share
      for each of his Shares will no longer be effective.

     

    2.3 Governing
      Law.
      Except
      to the extent that the corporate laws of the State of Delaware apply to a party,
      this Amendment shall be governed by, and construed in accordance with, the
      laws
      of the State of New York, regardless of the laws that might otherwise govern
      under applicable principles of conflicts of law thereof.

     

    2.4 Execution
      of Agreement; Counterparts; Electronic Signatures.

     

    2.4(a) This
      Amendment may be executed in several counterparts, each of which shall be deemed
      an original and all of which shall constitute one and the same instrument,
      and
      shall become effective when counterparts have been signed by each of the parties
      and delivered to the other parties; it being understood that all parties need
      not sign the same counterpart.

     

    2.4(b) The
      exchange of copies of this Amendment and of signature pages by facsimile
      transmission (whether directly from one facsimile device to another by means
      of
      a dial-up connection or whether mediated by the worldwide web), by electronic
      mail in “portable document format” (“.pdf”
      format),
      or by any other electronic means intended to preserve the original graphic
      and
      pictorial appearance of a document, or by a combination of such means, shall
      constitute effective execution and delivery of this Amendment as to the parties
      and may be used in lieu of an original Amendment for all purposes. Signatures
      of
      the parties transmitted by facsimile shall be deemed to be their original
      signatures for all purposes.

     

    2.4(c) Notwithstanding
      the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Sec.
      7001 et
      seq.),
      the
      Uniform Electronic Transactions Act, or any other Legal Requirement relating
      to
      or enabling the creation, execution, delivery, or recordation of any contract
      or
      signature by electronic means, and notwithstanding any course of conduct engaged
      in by the parties, no party shall be deemed to have executed this Amendment
      or
      any other document contemplated by this Amendment (including any amendment
      or
      other change thereto) unless and until such party shall have executed this
      Amendment or such document on paper by a handwritten original signature or
      any
      other symbol executed or adopted by a party with current intention to
      authenticate this Amendment or such other document contemplated.

     

    2.5 Legal
      Representation of the Parties.
      This
      Amendment was negotiated by the parties with the benefit of legal representation
      and any rule of construction or interpretation otherwise requiring this
      Amendment to be construed or interpreted against any party shall not apply
      to
      any construction or interpretation hereof.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    2.6 Headings.
      The
      headings contained in this Amendment are for convenience of reference only,
      shall not be deemed to be a party of this Amendment and shall not be referred
      to
      in connection with the construction or interpretation of this
      Amendment.

     

    [Remainder
      of page intentionally left blank - signature page follows]

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    In
      Witness Whereof,
      the
      parties have caused this Amendment to be executed as of the date first above
      written:

     

    
      	 	 	 
	 	PARENT:
	 	 
	 	Heckmann
              Corporation
	 
 	 
 	 
 
	 	By:  	  
              
	 	 	 
	 	Name:	  

	 	 	 
	 	Title:	  
              

    

     

    
      	 	 	 
	 	COMPANY:
	 	 
	 	China Water and
              Drinks,
              Inc.
	 
 	 
 	 
 
	 	By:  	  
              
	 	 	 
	 	Name:	  

	 	 	 
	 	Title:	  
              

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	SELLING
              STOCKHOLDER:
	 	 
	 	IPacific Asset
              Management
	 
 	 
 	 
 
	 	By:  	  
              
	 	 	 
	 	Name:	  

	 	 	 
	 	Title:	  
              

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	 	 	 
	 	SELLING
              STOCKHOLDER:
	 	 
	 	IBroader Developments
              Limited
	 
 	 
 	 
 
	 	By:  	  
              
	 	 	 
	 	Name:	  

	 	 	 
	 	Title:	  
              

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	 	 	 
	 	SELLING
              STOCKHOLDER:
	 	 
	 	Lap Woon
              Wong
	 	 
	 	  

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	SELLING
              STOCKHOLDER:
	 	 
	 	Sze Tang
              li
	 	 
	 	  

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	SELLING
              STOCKHOLDER:
	 	 
	 	Canary Global Investments
              Inc. 
	 
 	 
 	 
 
	 	By:  	  
              
	 	 	 
	 	Name:	  

	 	 	 
	 	Title:	  
              

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    	 	 	 
	 	SELLING
            STOCKHOLDER:
	 	 
	 	
            Chen
              Fang

          
	 	 
	 	   

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    SCHEDULE
      A

    

    SCHEDULE
      OF SELLING STOCKHOLDERS

    

    
      	
              Name
                and Address of Selling Stockholder

            	
              Number
                of Shares

            	 	
              Purchase
                Price (US$)

            
	 	 	 	 
	
              IPacific
                Asset Management

            	
              2,576,000

            	 	
              $2,672,421

            
	 	 	 	 
	
              IBroader
                Developments Limited

            	
              2,422,000

            	 	
              $2,512,657

            
	 	 	 	 
	
              Lap
                Woon Wong

            	
              1,000,000

            	 	
              $1,037,430

            
	 	 	 	 
	
              Sze
                Tang Li

            	
              1,000,000

            	 	
              $1,037,431

            
	 	 	 	 
	
              Canary
                Global Investments Inc.

            	
              1,000,000

            	 	
              $1,037,431

            
	 	 	 	 
	
              Chen
                Fang

            	
              3,000,000

            	 	
              $3,112,291

            
	 	
              10,998,000

            	 	
              $11,409,662Unassociated Document

    AMENDMENT
      NO. 1 TO SECURITIES PURCHASE AGREEMENT

     

    This
      Amendment No. 1 to Securities Purchase Agreement (this “Amendment”)
      is
      dated September 18, 2008, by and among China Water and Drinks Inc., a Nevada
      corporation (the “Company”)
      and
      certain of the Investors (as defined below), and amends that certain Securities
      Purchase Agreement (the “Agreement”)
      dated
      May 31, 2007 by and among the Company and the investors identified on the
      signature pages thereto (collectively, the “Investors”).

    

    WHEREAS,
      Pursuant to Section 6.4 of the Agreement, the Agreement may be amended in
      writing provided such amendment is signed by the Company and the Investors
      holding a majority of the Securities (as such term is defined in the
      Agreement);

    

    WHEREAS,
      the Investors signatory hereto, in the aggregate, own a majority of the
      Securities;

    

    WHEREAS,
      each Investor signatory hereto is signing only on its own behalf, and not on
      behalf of any other Investor; 

    

    WHEREAS,
      except as otherwise stated herein, capitalized terms not otherwise defined
      in
      this Amendment shall have the definition given to such terms in the
      Agreement;

    

    NOW,
      THEREFORE, IN CONSIDERATION of the foregoing and the mutual agreements contained
      in this Amendment, and for other good and valuable consideration the receipt
      and
      adequacy of which are hereby acknowledged, the Company and Pinnacle, on behalf
      of the Investors, hereby agree as follows:

    

    1. Amendment.
      Section
      4.11(a) of the Agreement is hereby amended and restated in its entirety to
      read
      as follows (with changes in italics):

    

    “(a)
      The
      Make Good Pledgor agrees that in the event that the After-Tax Net Income
      reported in the 2007 Annual Report, after
      adding back any compensation expenses relating to the Escrow Shares (as defined
      in the Make Good Escrow Agreement) or the return of any Escrow Shares to the
      Make Good Pledgor due to the achievement of 2007 Guaranteed
      ATNI,
      is less
      than $19,000,000 (the “2007
      Guaranteed ATNI”),
      the
      Agent will instruct the Make Good Escrow Agent to release to the Investors
      (in
      accordance with the Make Good Escrow Agreement) on a pro-rata basis (determined
      by dividing each Investor’s Investment Amount as of the Closing Date by the
      aggregate of all Investment Amounts delivered to the Company by the Investors
      hereunder) for no consideration other than their part of their respective
      Investment Amount at Closing, 11,194,030 shares of Common Stock (as equitably
      adjusted for any stock splits, stock combinations, stock dividends or similar
      transactions) (the “2007
      Make Good Shares”).
      In
      the event that either (i) the earnings per share reported in the 2008 Annual
      Report is less than $0.300 on a fully diluted basis (as equitably adjusted
      for
      any stock splits, stock combinations, stock dividends or similar transactions)
      (the “2008
      Guaranteed EPS”)
      or
      (ii) the After-Tax Net Income reported in the 2008 Annual Report is less than
      $30,000,000 (the “2008
      Guaranteed ATNI”),
      in
      each case after adding back any compensation expense relating to the Escrow
      Shares or the return of any Escrow Shares to the Make Good Pledgor due to the
      achievement of 2008 Guaranteed ATNI and 2008 Guaranteed EPS, or any expense
      relating to the beneficial conversion feature attributable to the Company’s 5%
      convertible notes issued in January, 2008,
      the
      Agent will instruct the Make Good Escrow Agent to release to the Investors
      (in
      accordance with the Make Good Escrow Agreement) on a pro rata basis (determined
      by dividing each Investor’s Investment Amount as of the Closing Date by the
      aggregate of all Investment Amounts delivered to the Company by the Investors
      hereunder) for no consideration other than their part of their respective
      Investment Amount at Closing, 11,194,030 shares of Common Stock (as equitably
      adjusted for any stock splits, stock combinations, stock dividends or similar
      transactions) (the “2008
      Make Good Shares”).
      In
      the event that the After-Tax Net Income reported in the 2007 Annual Report
      is
      equal to or greater than the 2007 Guaranteed ATNI, the Agent shall instruct
      the
      Make Good Escrow Agent to release the 2007 Make Good Shares to the Make Good
      Pledgor in accordance with the Make Good Escrow Agreement. In the event
      that both (i) the earnings per share reported in the 2008 Annual Report is
      equal
      to or greater than the 2008 Guaranteed EPS and (ii) the After-Tax Net Income
      reported in the 2008 Annual Report is equal to or greater than the 2008
      Guaranteed ATNI, in
      each case after adding back any compensation expense relating to the Escrow
      Shares or the return of any Escrow Shares to the Make Good Pledgor due to the
      achievement of 2008 Guaranteed ATNI and 2008 Guaranteed EPS, or any expense
      relating to the beneficial conversion feature attributable to the Company’s 5%
      convertible notes issued in January, 2008,
      the
      Agent shall instruct the Make Good Escrow Agent to release the 2008 Make Good
      Shares to the Make Good Pledgor in accordance with the Make Good Escrow
      Agreement. Any such release to the Investors or to the Make Good Pledgor of
      the
      2007 Make Good Shares or the 2008 Make Good Shares shall be made to the
      Investors or the Make Good Pledgor, as applicable, within 10 Business Days
      after
      the date which the 2007 Annual Report or 2008 Annual Report, as applicable,
      is
      filed.”

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2. Effectiveness.
      This
      Amendment shall become effective upon execution.

    

    3. Limited
      Nature of Amendment.
      Except
      as expressly amended hereby, the Agreement remains in full force and effect
      in
      accordance with its terms and this Amendment shall not by implication or
      otherwise alter, modify, amend or in any way affect any of the terms,
      conditions, obligations, covenants or agreements contained in the Agreement,
      all
      of which are ratified and affirmed in all respects and shall continue in full
      force and effect.

    

    4. Counterparts.
      This
      Amendment may be executed in several counterparts, each of which shall be deemed
      an original and all of which shall constitute one and the same instrument,
      and
      shall become effective when counterparts have been signed by each of the parties
      and delivered to the other parties; it being understood that all parties need
      not sign the same counterpart.

     

    [Remainder
      of page intentionally left blank - signature page follows]

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed by their respective authorized signatories as of the date first
      indicated above.

     

    
      
        	 	 	 
	 	CHINA
                WATER AND DRINKS INC.
	 
 	 
 	 
 
	 	By:	/s/
                Xu Hong
                Bin
	 	Name:	Xu Hong Bin
	 	Title:	President

      

      	 	 	 	 	 
	 	MAJORITY
              IN INTEREST OF THE INVESTORS
	 	 	 	 
	 	THE PINNACLE FUND,
              L.P.
	 
 	 
 	 
 	 	 
	 	By:	Pinnacle Advisors, L.P.,
              its
              General Partner
	 	 	 	 	 
	 	 	By:	
              Pinnacle Fund Management, LLC, its

              General Partner

            
	 	 	 	 	 
	 	 	 	By:	/s/
              Barry M. Kitt
	 	 	 	Name:	Barry M. Kitt
	 	 	 	Title:	Sole Member

    

     

    
      	 	 	 	 	 	 
	 	PINNACLE CHINA FUND,
              L.P.
	 
 	 
 	 
 	 	 	 
	 	By:	
              Pinnacle
                China Advisors, L.P., its 

              General
                Partner

            
	 	 	 	 	 	 
	 	 	By:	
              Pinnacle China Management LLC, its 

              General Partner

            
	 	 	 	 	 	 
	 	 	 	By:	
              Kitt
                China Management, LLC, its 

              Manager

            
	 	 	 	 	 	 
	 	 	 	 	By:	/s/
              Barry M. Kitt
	 	 	 	 	Name:	Barry M. Kitt
	 	 	 	 	Title:	Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]