Document:

f8k0511ex10i_chinagrowth.htm

Exhibit 10.1

 

AMENDMENT NO.1 TO

 

SUBSCRIPTION AGREEMENT

 

This AMENDMENT NO.1 TO SUBSCRIPTION AGREEMENT (this “Amendment”) dated as of May 20, 2011 (the “Effective Date”) is entered into by and among China Growth Corporation, a Cayman Island corporation (the “Company”), and American Access Fund, LP hereto (the “Majority Holder”).

 

Recitals

 

WHEREAS, pursuant to an offering by the Company of its securities (the “Offering”), to the Majority Holder and certain other investors (the “Investors”), the Company and the Investors entered into a Subscription Agreement, dated December 2010 (the “Original Agreement”), pursuant to which the Company sold to the Investors an aggregate of 222,402 units (the “Units”) for an aggregate purchase price of $6,672,031. Each Unit consisted of (i) two (2) shares of the Company’s Class A 6% convertible preference share (the “Preference Shares”) and (ii) a warrant to purchase five (5) of the Company’s ordinary shares at an exercise price of $4.50 per share;

 

WHEREAS, Section 5.5 of the Original Agreement provides that subject, to the terms and provisions of the Holdback Escrow Agreement, as soon as possible, but no later than three (3) months after the Share Exchange, the Company shall employ a English-speaking Chief Financial Officer who shall have experience with financial reporting companies under Sarbanes-Oxley and other federal or state securities laws and shall also meet the approval and requirements of the Lead Investor, $1,500,000 of the Offering proceeds (the “Chief Financial Officer Holdback”) shall be held in escrow until such Chief Financial Officer is duly appointed;

 

WHEREAS, in recognition of the Company’s efforts in seeking a qualified Chief Financial Officer, and in light of the Company’s having made significant strides towards hiring a financial advisor, the Majority Holder desires that $750,000 of Chief Financial Officer Holdback be released to the Company;

 

WHEREAS, an amendment of the Original Agreement requires the approval of the Company and the holders of at least 50.1% of the Preference Shares then outstanding; and

 

WHEREAS, the Majority Holder is the holder of 233,334 Preference Shares, representing approximately 52.5% of the Preference Shares outstanding as of the Effective Date.

 

NOW, THEREFORE, in consideration of the foregoing, and of the mutual representations, warranties, covenants, and agreements herein contained, the parties hereto agree as follows:

 

Agreement

 

Section 1. Defined Terms. Unless otherwise indicated herein, all terms which are capitalized but are not otherwise defined herein shall have the meaning ascribed to them in the Original Agreement.

 

  

  

  

 

Section 2. Amendment to Original Agreement.  Section 5.5 of the Original Agreement is hereby amended and restated in its entirety as follows:

 

“5.5           Chief Financial Officer.  As soon as practicable after the Share Exchange, the Company shall employ an English-speaking Chief Financial Officer who shall have experience with financial reporting companies under Sarbanes-Oxley and other federal or state securities laws and shall also meet the approval and requirements of the Lead Investor, which such approval shall not be unreasonably withheld (a “Qualified CFO”).  To secure the Company’s employment of a Qualified CFO, $1,500,000 (the “Chief Financial Officer Holdback”) of the Offering proceeds shall be held in escrow and subject to the terms and provisions of the Holdback Escrow Agreement.  Notwithstanding the foregoing, the Lead Investor may in its sole discretion authorize, in writing, the escrow agent appointed pursuant to the Holdback Escrow Agreement to disburse a portion of the Chief Financial Officer Holdback, such portion not to exceed $750,000 in the aggregate, to the Company (a “Good Faith Disbursement”).  Any portion of the Chief Financial Officer Holdback not disbursed pursuant to a Good Faith Disbursement shall continue to be held in escrow in accordance with the terms and provisions of the Holdback Escrow Agreement.”

 

Section 3. Ratifications; Inconsistent Provisions. Except as otherwise expressly provided herein, the Original Agreement, is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Effective Date: (i) all references in the Original Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Original Agreement shall mean the Original Agreement as amended by this Amendment and  (ii) all references in the other Transaction Documents, to “the Subscription Agreement”, “the Subscription Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Original Agreement shall mean the Original Agreement as amended by this Amendment.  Notwithstanding the foregoing to the contrary, to the extent that there is any inconsistency between the provisions of the Original Agreement and this Amendment, the provisions of this Amendment shall control and be binding.

 

Section 4. Counterparts. This Amendment may be executed in any number of counterparts, all of which will constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.  Facsimile or other electronic transmission of any signed original document shall be deemed the same as delivery of an original.

 

[Signatures follow on next page]

 

  

  

  

 

IN WITNESS WHEREOF, the Majority Holder and the Company have caused this Amendment to be duly executed as of the date first written above.

 

	 	Company:	 
	 	 	 
	 	CHINA GROWTH CORPORATION	 
	 	 	 	 
	 	
By: 

	/s/ Mingzhuo Tan	 
	 	 	Name: Mingzhuo Tan	 
	 	 	Title: President and Chief Executive Officer	 
	 	 	 	 

 

	 	Majority Holder:	 
	 	 	 
	 	AMERICAN ACCESS FUND, LP	 
	 	 	 	 
	 	
By: 

	/s/ Christopher Efird	 
	 	 	Name: Christopher Efird	 
	 	 	Title: Managing Partnerf8k0511ex10ii_chinagrowth.htm

Exhibit 10.2

 

AMENDMENT NO.1 TO

 

HOLDBACK ESCROW AGREEMENT

 

This AMENDMENT NO.1 TO HOLDBACK ESCROW AGREEMENT (this “Amendment”) dated as of May 20, 2011 (the “Effective Date”) is entered into by and among China Growth Corporation, a Cayman Island corporation (the “Company”), Anslow & Jaclin, LLP (the “Escrow Agent”) and Access America Investments, LLC hereto (the “Investor Representative”).

 

Recitals

 

WHEREAS, the Company, the Escrow Agent and the Investor Representative are parties to that certain Holdback Escrow Agreement dated as of December 15, 2010 (the “Original Agreement”);

 

WHEREAS, Section 4.2 of the Original Agreement provides that, to secure the hiring of a Qualified CFO, the Company has agreed that $1,500,000 of the proceeds of the Offering (the “Escrow Amount”) be held in the Escrow Account until a Qualified CFO has been appointed whereupon the Investor Representative shall execute and deliver to the Escrow Agent written instructions to release the Chief Financial Officer Holdback to the Company;

 

WHEREAS, notwithstanding Section 4.2 of the Original Agreement, in recognition of the Company’s efforts in seeking a Qualified CFO and the Company’s employment of a financial advisor, the Investor Representative desires to authorize the release of $750,000 of the Chief Financial Officer Holdback to the Company;

 

WHEREAS, on the date hereof, the Company and the Lead Investor (as defined in the Subscription Agreement) have entered into that certain Amendment No. 1 to Subscription Agreement; and

 

WHEREAS, an amendment of the Original Agreement requires the approval of the Company, the Escrow Agent, and the Investor Representative.

 

NOW, THEREFORE, in consideration of the foregoing, and of the mutual representations, warranties, covenants, and agreements herein contained, the parties hereto agree as follows:

 

Agreement

 

Section 1. Defined Terms. Unless otherwise indicated herein, all terms which are capitalized but are not otherwise defined herein shall have the meaning ascribed to them in the Original Agreement.

 

  

  

  

 

Section 2. Amendment to Original Agreement.  Section 4.2 of the Original Agreement is hereby amended and restated in its entirety as follows:

 

“4.2           Pursuant to Section 5.5 of the Subscription Agreement, during the Nomination Period, the Company shall employ an English-speaking Chief Financial Officer who shall have experience with financial reporting companies under the Sarbanes-Oxley Act of 2002 and other federal or state securities laws and shall also meet the approval, which shall not be unreasonably withheld, and requirements of the Investor Representative (a “Qualified CFO”). To secure the hiring of a Qualified CFO, the Chief Financial Officer Holdback shall be held in the Escrow Account until a Qualified CFO has been appointed.  Notwithstanding the foregoing, the Investor Representative may in its sole discretion authorize the Escrow Agent in writing (a “Good Faith Disbursement Notice”) to disburse a portion of the Chief Financial Officer Holdback, such portion not to exceed $750,000 in the aggregate, to the Company (a “Good Faith Disbursement”).  Any portion of the Chief Financial Officer Holdback not disbursed pursuant to a Good Faith Disbursement shall continue to be held in the Escrow Account in accordance with the terms of this Agreement.  Upon the Company’s appointment of a Qualified CFO, the Investor Representative shall execute and deliver to the Escrow Agent written instructions (a “Qualified CFO Disbursement Notice”) to disburse the Chief Financial Officer Holdback, less any amounts previously disbursed pursuant to a Good Faith Disbursement, to the Company.  No later than one (1) Business Day following the receipt of a Good Faith Disbursement Notice or Qualified CFO Disbursement Notice, as applicable, with wire instructions attached thereto, the Escrow Agent shall disburse the applicable amount in accordance with such notice and wire instructions.”

 

Section 3. Ratifications; Inconsistent Provisions. Except as otherwise expressly provided herein, the Original Agreement, is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Effective Date: (i) all references in the Original Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Original Agreement shall mean the Original Agreement as amended by this Amendment and  (ii) all references in the other Transaction Documents, to “the Holdback Escrow Agreement”, “the Holdback Escrow Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Original Agreement shall mean the Original Agreement as amended by this Amendment.  Notwithstanding the foregoing to the contrary, to the extent that there is any inconsistency between the provisions of the Original Agreement and this Amendment, the provisions of this Amendment shall control and be binding.

 

Section 4. Counterparts. This Amendment may be executed in any number of counterparts, all of which will constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.  Facsimile or other electronic transmission of any signed original document shall be deemed the same as delivery of an original.

 

[Signatures follow on next page]

 

  

  

  

 

IN WITNESS WHEREOF, the Company, the Escrow Agent and the Investor Representative have caused this Amendment to be duly executed as of the date first written above.

 

 

	 	Company:	 
	 	 	 
	 	CHINA GROWTH CORPORATION	 
	 	 	 	 
	 	
By: 

	/s/ Mingzhuo Tan	 
	 	 	Name: Mingzhuo Tan	 
	 	 	Title: President and Chief Executive Officer	 
	 	 	 	 

 

	 	Escrow Agent:	 
	 	 	 
	 	ANSLOW & JACLIN, LLP	 
	 	 	 	 
	 	
By: 

	/s/ Richard I. Anslow	 
	 	 	Name: Richard I. Anslow	 
	 	 	Title: Managing Partner	 
	 	 	 	 

	 	Investor Representative:	 
	 	 	 
	 	ACCESS AMERICA INVESTMENTS, LLC	 
	 	 	 	 
	 	
By: 

	/s/ Christopher Efird	 
	 	 	Name: Christopher Efird	 
	 	 	Title: President

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