Document:

Unassociated Document

    June
      [  ], 2006

    

    

    Shine
      Media Acquisition Corp.

    Rockefeller
      Center

    1230
      Avenue of the Americas, 7th
      Floor

    New
      York,
      New York 10020

     

    Merriman
      Curhan Ford & Co.

    600
      California Street, 9th
      Floor

    San
      Francisco, CA 94108

    

    
      	 	 	
              Re:

            	
              Initial
                Public Offering

            

    

    

    Gentlemen:

    

    The
      undersigned stockholder and officer of Shine Media Acquisition Corp.
      (“Company”), in consideration of Merriman Curhan Ford & Co. (“Merriman”)
      entering into a letter of intent (“Letter of Intent”) to underwrite an initial
      public offering of the securities of the Company (“IPO”) and embarking on the
      IPO process, hereby agrees as follows (certain capitalized terms used herein
      are
      defined in paragraph 11 hereof):

    

    1. If
      the
      Company solicits approval of its stockholders of a Business Combination, the
      undersigned will vote all Insider Shares owned by him and all shares of Common
      Stock of the Company acquired by him in the IPO or aftermarket in accordance
      with the majority of the votes cast by the holders of the IPO Shares.

    

    2. In
      the
      event that the Company fails to consummate a Business Combination within 18
      months from the effective date (“Effective Date”) of the registration statement
      relating to the IPO or 24 months under the circumstances described in the
      prospectus relating to the IPO (such later date being referred to herein as
      the
“Termination Date”), the undersigned shall (i) take all such action reasonably
      within its power as is necessary to (a) dissolve the Company and liquidate
      the
      Trust Fund to holders of IPO Shares as soon as reasonably practicable, and
      after
      approval of the Company’s stockholders and subject to the requirements of the
      Delaware General Corporation Law (the “GCL”), including voting for the adoption
      of a resolution by the board of directors, prior to such Termination Date,
      pursuant to Section 275(a) of the GCL, which shall deem the dissolution of
      the
      Company advisable and (b) cause to be prepared such notices as are required
      by
      said Section 275(a) of the GCL as promptly thereafter as possible, and (ii)
      vote
      his shares in favor of any plan of dissolution and distribution recommended
      by
      the Company’s board of directors. If the Company does not consummate a Business
      Combination by the Termination Date, the undersigned hereby agrees, with respect
      to any plan of dissolution and distribution, to take all such action reasonably
      within its power to (x) cause the board of directors to convene, adopt a plan
      of
      dissolution and distribution, which the undersigned will vote to recommend
      to
      stockholders, and (y) on such date cause the Company to prepare and file a
      proxy
      statement with the Securities and Exchange Commission (the “SEC”) setting out
      the plan of dissolution and distribution. If the Company seeks approval from
      its
      stockholders to consummate a Business Combination within 90 days of the
      expiration of 24 months from the Effective Date, the undersigned agrees to
      take
      all such action reasonably within its power to ensure that the proxy statement
      related to such Business Combination will also seek stockholder approval for
      the
      plan of dissolution and distribution in the event the stockholders do not
      approve the Business Combination. If no proxy statement seeking the approval
      of
      the stockholders for a Business Combination has been filed within 30 days prior
      to the date which is 24 months from the date of the IPO, the undersigned agrees,
      prior to such date to take all such action reasonably within its power as is
      necessary to convene and adopt a plan of dissolution and distribution and on
      such date file a proxy statement with the SEC seeking stockholder approval
      for
      such plan. The undersigned hereby waives any and all right, title, interest
      or
      claim of any kind in or to any distribution of the Trust Fund (as defined in
      the
      Letter of Intent) and any remaining net assets of the Company as a result of
      such liquidation with respect to its Insider Shares (“Claim”) and will not seek
      recourse against the Trust Fund for any reason whatsoever. In
      the
      event of the liquidation of the Trust Fund, the undersigned agrees to indemnify
      and hold harmless the Company jointly and severally with David Y. Chen, against
      any and all loss, liability, claims, damage and expense whatsoever (including,
      but not limited to, any and all legal or other expenses reasonably incurred
      in
      investigating, preparing or defending against any litigation, whether pending
      or
      threatened, or any claim whatsoever) which the Company may become subject as
      a
      result of any claim by any third party if such third party did not execute
      a waiver of claims against the Trust Fund, but only to the extent
      necessary to ensure that such loss, liability, claim, damage or expense does
      not
      reduce the amount in the Trust Fund. The foregoing section is not for the
      benefit of any third party beneficiaries of the Company and does not create
      any contract right in favor of any person other than the
      Company.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    3. In
      order
      to minimize potential conflicts of interest which may arise from multiple
      affiliations, the undersigned agrees to present to the Company for its
      consideration, prior to presentation to any other person or entity, any suitable
      opportunity to acquire an operating business, until the earlier of the
      consummation by the Company of a Business Combination, the liquidation of the
      Company or until such time as the undersigned ceases to be an officer or
      director of the Company, subject to any pre-existing fiduciary and contractual
      obligations the undersigned might have.

    

    4. The
      undersigned acknowledges and agrees that the Company will not consummate any
      Business Combination which involves a company which is affiliated with any
      of
      the Insiders unless
      the Company obtains an opinion from an independent investment banking firm
      that
      the Business Combination is fair to the Company’s stockholders from a financial
      perspective.

     

    5. Prior
      to
      a Business Combination, neither the undersigned, any member of the family of
      the
      undersigned, nor any affiliate (“Affiliate”) of the undersigned will be entitled
      to receive and will not accept any compensation for services rendered to the
      Company. Notwithstanding the foregoing to the contrary, the undersigned shall
      be
      entitled to reimbursement from the Company for its out-of-pocket expenses
      incurred in connection with seeking and consummating a Business Combination
      and
      commencing on the Effective Date, Enjoy Media (Hong Kong) Limited, an affiliate
      of the Company’s chief executive officer (“Related Party”), shall be allowed to
      charge the Company $10,000 per month to compensate it for the Company’s use of
      the Related Party’s office space and certain technology and administrative and
      secretarial services. 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    6. Neither
      the undersigned, any member of the family of the undersigned, nor any Affiliate
      of the undersigned will be entitled to receive or accept a finder’s fee or any
      other compensation in the event the undersigned, any member of the family of
      the
      undersigned or any Affiliate of the undersigned originates a Business
      Combination. 

    

    7. The
      undersigned will escrow its Insider Shares for the three year period commencing
      on the Effective Date subject to the terms of a Stock Escrow Agreement which
      the
      Company will enter into with the undersigned and an escrow agent acceptable
      to
      the Company.

    

    8. The
      undersigned agrees to be Chief Financial Officer of the Company until the
      earlier of the consummation by the Company of a Business Combination or the
      liquidation of the Company provided, however that the undersigned is not
      obligated to contribute a minimum number of hours per week to the Company's
      business or operations. The undersigned’s biographical information furnished to
      the Company and Merriman and attached hereto as Exhibit A is true and accurate
      in all respects, does not omit any material information with respect to the
      undersigned’s background and contains all of the information required to be
      disclosed pursuant to Item 401 of Regulation S-K, promulgated under the
      Securities Act of 1933. The undersigned’s Questionnaire furnished to the Company
      and Merriman and annexed as Exhibit B hereto is true and accurate in all
      respects. The undersigned represents and warrants that:

    

    (a)  he
      is not
      subject to or a respondent in any legal action for, any injunction,
      cease-and-desist order or order or stipulation to desist or refrain from any
      act
      or practice relating to the offering of securities in any
      jurisdiction;

    

    (b)  he
      has
      never been convicted of or pleaded guilty to any crime (i) involving any fraud
      or (ii) relating to any financial transaction or handling of funds of another
      person, or (iii) pertaining to any dealings in any securities and he is not
      currently a defendant in any such criminal proceeding; and

    

    (c)  he
      has
      never been suspended or expelled from membership in any securities or
      commodities exchange or association or had a securities or commodities license
      or registration denied, suspended or revoked.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    9. The
      undersigned has full right and power, without violating any agreement by which
      he is bound, to enter into this letter agreement and to serve as Chief Financial
      Officer of the Company.

     

    10. This
      letter agreement shall be governed by and construed and enforced in accordance
      with the laws of the State of New York, without giving effect to conflicts
      of
      law principles that would result in the application of the substantive laws
      of
      another jurisdiction. The undersigned hereby (i) agrees that any action,
      proceeding or claim against him arising out of or relating in any way to this
      letter agreement (a “Proceeding”) shall be brought and enforced in the courts of
      the State of New York of the United States of America for the Southern District
      of New York, and irrevocably submits to such jurisdiction, which jurisdiction
      shall be exclusive, (ii) waives any objection to such exclusive jurisdiction
      and
      that such courts represent an inconvenient forum and (iii) irrevocably agrees
      to
      appoint Loeb & Loeb LLP as agent for the service of process in the State of
      New York to receive, for the undersigned and on his behalf, service of process
      in any Proceeding. If for any reason such agent is unable to act as such, the
      undersigned will promptly notify the Company and Merriman and appoint a
      substitute agent acceptable to each of the Company and Merriman within 30 days
      and nothing in this letter will affect the right of either party to serve
      process in any other manner permitted by law.

    

    11. As
      used
      herein, (i) a “Business Combination” shall mean an acquisition by merger,
      capital stock exchange, asset or stock acquisition, reorganization or otherwise,
      of one or more operating businesses in the media and advertising industry in
      China selected by the Company; (ii) “Insiders” shall mean all officers,
      directors and stockholders of the Company immediately prior to the IPO; (iii)
      “Insider Shares” shall mean all of the shares of Common Stock of the Company
      owned by an Insider prior to the IPO and any shares of Common Stock issuable
      to
      the Insider upon exercise of options existing on the date hereof; (iv) “IPO
      Shares” shall mean the shares of Common Stock issued in the Company’s IPO; and
      (v) “Trust Fund” shall mean the trust account established by the Company at the
      consummation of its IPO and into which a certain amount of the net proceeds
      of
      the IPO is deposited.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    
      	 	 	
              Hock
                S. Ong 
                

              

              Print
                Name of Insider

            
	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Hock S. Ong

              Title:
                Chief Financial Officer

            
	 	 

    

    

      
        
          
          

        

        
          
          

          
            

          

        

         

      

    EXHIBIT
      A

    

    [Insider
      biographical information]

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    EXHIBIT
      B

    

    [Insider
      questionnaire]EXHIBIT
      10.1

     

    AGREEMENT

     

    This
      Agreement dated as of November 13, 2006 (the “Agreement”) is executed by and
      between, in the first part, IOWC Technologies, Inc. (“Optionor”), a federally
      registered Canadian corporation, and in the second part, BioLargo Life
      Technologies, Inc., (“Optionee”) a California corporation.

    

    RECITALS

     

    WHEREAS,
      Optionor and Optionee are parties to an agreement dated December 31, 2005
      entitled “Marketing and Licensing Agreement” (“M&L Agreement”), which
      provides, in part, that Optionor would assign to Optionee its 20% membership
      interest (the “Membership Interest”) in BioLargo, LLC, (“BioLargo LLC”) a
      California limited liability company; and

     

    WHEREAS,
      the parties desire to provide Optionee the option to purchase the Membership
      Interest for nominal consideration.

     

    AGREEMENT

     

    NOW
      THEREFORE, in consideration of the mutual agreements and promises set forth
      herein, the parties agree as follows:

     

    
      	 	
              1.

            	
              Option
                to Purchase Membership
                Interest.

            

    

     

    Optionor
      hereby grants to Optionee the exclusive right to purchase the Membership
      Interest at a price and under the terms and conditions set forth herein, during
      the Option Period (defined as the period of time commencing with the Effective
      Date of this Agreement, and terminating on December 31, 2013).

     

    a. Purchase
      Price. The Membership Interest may be purchased by Optionor for one dollar
      ($1.00) at any time during the Option Period.

     

    b. Exercise
      of Option/Closing. The option granted herein shall be exercised by written
      notice of exercise of option addressed and mailed by regular mail or personal,
      postage prepaid, or by personal delivery, to Optionor prior to the expiration
      of
      the Option Period.

     

    
      	 	
              2.

            	
              Termination.
                

            

    

     

    This
      Agreement shall terminate concurrently with the termination of the M&L
      Agreement. In the event of such termination, the Parties shall each restore
      the
      other to the conditions they would have held had this Agreement been void from
      its inception.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.

            	
              Miscellaneous.

            

    

     

    A. Notices.
      All
      notices, requests, demands and other communications (collectively, “Notices”)
      given
      pursuant to this Agreement shall be in writing, and shall be delivered by
      personal service, courier, facsimile transmission (which must be confirmed)
      or
      by United States first class, registered or certified mail, postage prepaid,
      to
      the following addresses:

     

    
      	
              TO:

            	 	
              BLTI

              2603
                Main Street, Suite 1155

              Irvine,
                CA 92614

              Attn:
                President

            
	
              TO:

            	 	
              IOWC
                Technologies, Inc.

              Unit
                4, 1780 Glastonbury Blvd NW

              Edmonton,
                AB, Canada T5T 6P9

            

    

     

    Any
      Notice, other than a Notice sent by registered or certified mail, shall be
      effective when received; a Notice sent by registered or certified mail, postage
      prepaid return receipt requested, shall be effective on the earlier of when
      received or the third day following deposit in the United States mails. Any
      party may from time to time change its address for further Notices hereunder
      by
      giving notice to the other parties in the manner prescribed in this
      Section.

     

    B.     Entire
      Agreement.
      This
      Agreement contains the sole and entire agreement and understanding of the
      parties with respect to the entire subject matter of this Agreement, and any
      and
      all prior discussions, negotiations, commitments and understandings, whether
      oral or otherwise, related to the subject matter of this Agreement are hereby
      merged herein.

     

    C.     Assignment.
      No
      party
      may assign this Agreement, and any attempted or purported assignment or any
      delegation of any party’s duties or obligations arising under this Agreement to
      any third party or entity shall be deemed to be null and void, and shall
      constitute a material breach by such party of its duties and obligations under
      this Agreement; provided
      that the
      Purchaser may assign its rights to purchase all or any portion of the Assets
      to
      a wholly owned subsidiary. This Agreement shall inure to the benefit of and
      be
      binding upon any successors of each party by way of merger or consolidation.
      

     

    D.     Waiver
      and Amendment.
      No
      provision of this Agreement may be waived unless in writing signed by all the
      parties to this Agreement, and waiver of any one provision of this Agreement
      shall not be deemed to be a waiver of any other provision.  This Agreement
      may be amended only by a written agreement executed by all of the parties to
      this Agreement.

     

    E.     Governing
      Law.
      This
      Agreement has been made and entered into in the State of California and shall
      be
      construed in accordance with the laws of the State of California without giving
      effect to the principles of conflicts of law thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    F.     Severability.
      Whenever
      possible each provision of this Agreement shall be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of this
      Agreement shall be or become prohibited or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity
      without invalidating the remainder of such provision or the remaining provisions
      of this Agreement.

     

    G.     Captions.
      The
      various captions of this Agreement are for reference only and shall not be
      considered or referred to in resolving questions of interpretation of this
      Agreement.

     

    H.     Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, but all of which together shall constitute one and
      the
      same instrument.

     

    I.     Costs
      and Attorneys’ Fees.
      If
      any
      action, suit, arbitration or other proceeding is instituted to remedy, prevent
      or obtain relief from a default in the performance by any party to this
      Agreement of its obligations under this Agreement, the prevailing party shall
      recover all of such party’s attorneys’ fees incurred in each and every such
      action, suit, arbitration or other proceeding, including any and all appeals
      or
      petitions therefrom.  As used in this Section, attorneys’ fees shall be
      deemed to mean the full and actual costs of any legal services actually
      performed in connection with the matters involved calculated on the basis of
      the
      usual fee charged by the attorney performing such services and shall not be
      limited to “reasonable attorneys’ fees” as defined in any statute or rule of
      court.

     

    J. 
Rights
      Cumulative.
      No
      right
      granted to the parties under this Agreement on default or breach is intended
      to
      be in full or complete satisfaction of any damages arising out of such default
      or breach, and each and every right under this Agreement, or under any other
      document or instrument delivered hereunder, or allowed by law or equity, shall
      be cumulative and may be exercised from time to time.

     

    K. 
Judicial
      Interpretation.Should
      any provision of this Agreement require judicial interpretation, it is agreed
      that a court interpreting or construing the same shall not apply a presumption
      that the terms hereof shall be more strictly construed against any Person by
      reason of the rule of construction that a document is to be construed more
      strictly against the Person who itself or through its agent prepared the same,
      it being agreed that all parties have participated in the preparation of this
      Agreement.

     

    L. 
Force
      Majeure.
      If
      any
      party to this Agreement is delayed in the performance of any of its obligations
      under this Agreement or is prevented from performing any such obligations due
      to
      causes or events beyond its control, including, without limitation, acts of
      God,
      fire, flood, war, terrorism, earthquake, strike or other labor problem,
      injunction or other legal restraint, present or future law, governmental order,
      rule or regulation, then such delay or nonperformance shall be excused and
      the
      time for performance thereof shall be extended to include the period of such
      delay or nonperformance.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    M. 
Dispute
      Resolution.
      Except
      for specific performance and other equitable relief provided for in this
      Agreement, if any controversy or claim arising out of this Agreement cannot
      be
      settled by the parties, the controversy or claim shall be submitted to and
      settled by arbitration as hereinafter provided. The parties shall endeavor
      to
      agree upon a single arbitrator (the “Arbitrator”)
      who
      shall be a retired judge provided by JAMS or equivalent organization (the
“Provider”)
      and
      who shall then try all issues, whether of fact or law, and report a finding
      or
      judgment thereon. If the parties are unable to agree upon the Arbitrator, each
      party shall provide the names of five retired judges from the Provider; then
      each party shall choose one of the names from the list proposed by the other,
      and from those two names the Arbitrator shall be selected by the flip of a
      coin.
      Prior to commencement of the arbitration proceedings, the Arbitrator shall
      make
      a full disclosure to the parties of any prior engagement by any of the parties,
      or their attorneys or law firms. Any such prior engagement shall be grounds
      for
      disqualification of the Arbitrator, and upon any such disqualification a
      substitute Arbitrator shall be selected as provided herein. The arbitration
      proceedings shall be governed by the following:

     

    i. 
All
      hearings and other proceedings shall be in Orange County unless the parties
      shall mutually agree in writing to an alternative location;

     

    ii. 
The
      Arbitrator shall follow and apply California law;

     

    iii. 
The
      California Rules of Evidence shall apply to all proceedings;

     

    iv. 
Discovery
      shall be limited to two depositions for each party and document production
      as
      allowed at the discretion of the Arbitrator within the rules of Section 1283.05
      of the California Code of Civil Procedure;

     

    v. 
The
      time
      for rendering a decision after hearing shall be in accordance with the published
      practices of the Provider;

     

    vi. 
Provisional
      remedies shall be available to the parties to the arbitration in accordance
      with
      Section 1281.8 of the California Code of Civil Procedure; and

     

    vii. 
The
      Purchaser and the Seller shall initially bear the arbitration fees equally;
      provided,
      however,
      the
      prevailing party shall be entitled to recover its contribution for such fees
      as
      an item of recoverable costs in addition to all other costs.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement as
      of
      the date set forth above.

     

    
      	BioLargo Life Technologies, Inc.	 	 	IOWC Technologies, Inc.
	 	 	 	 
	/s/ Dennis
              Calvert	 	 	/s/ Kenneth
              R. Code
	
              

            	 	 	
              

            
	
              By:
                Dennis Calvert

              Title:
                President

              Dated
                Signed: November 12, 2006

            	 	 	
              By:
                Kenneth R. Code

              Title:
                President

              Dated
                Signed: November 11, 2006

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