Document:

EXECUTION
VERSION

    

     

    AMENDMENT
TO THE SHARE EXCHANGE AGREEMENT

     

    THIS
AMENDMENT TO THE SHARE EXCHANGE AGREEMENT (this “Amendment”) is made
as of March 11, 2009, by and among Li Yonghui (“Founder”), Yan Wang
(“Wang”),
Honest Best Int’l Ltd, a company incorporated and existing under the laws of the
British Virgin Islands (“FounderCo”),
AutoChina Group Inc, a company incorporated and existing under the laws of the
Cayman Islands (“AutoChina”), Fancy
Think Limited, a limited liability company established in Hong Kong under the
Hong Kong Companies Ordinance (“Fancy Think”), Hebei
Chuanglian Trade Co., Ltd. (河北创联贸易有限公司), a company
established under the laws of the PRC (“Chuanglian”), Hebei
Kaiyuan Real Estate Development Co., Ltd. (河北开元房地产开发股份有限公司), a company
established under the laws of the PRC (“Kaiyuan Real
Estate”), Hebei Huiyin Investment Co., Ltd. (河北汇银投资有限责任公司), a company
established under the laws of the PRC (“Huiyin Investment”),
Hebei Hua An Investment Co., Ltd. (河北华安投资有限责任公司), a company
established under the laws of the PRC (“Hua An Investment”),
Hebei Tianmei Insurance Agency Co., Ltd. (河北天美保险代理有限公司), a company
established under the laws of the PRC (“Tianmei Insurance”),
Hebei Shijie Kaiyuan Logistics Co., Ltd. (河北世捷开元物流有限公司), a company
established under the laws of the PRC (“Kaiyuan Logistics”),
Hebei Shijie Kaiyuan Auto Trade Co., Ltd. (河北世捷开元汽车贸易有限公司), a company
established under the laws of the PRC (“Kaiyuan Auto Trade”),
Shanxi Chuanglian Auto Trade Co., Ltd. (山西创联汽贸公司), a company
established under the laws of the PRC (“Chuanglian Auto
Trade”), and Spring Creek Acquisition Corp., a corporation duly organized
and existing under the laws of the Cayman Islands (“SCAC”).  Each
of Founder, Wang, FounderCo, AutoChina, Fancy Think, Chuanglian, Kaiyuan Real
Estate, Huiyin Investment, Hua An Investment, Tianmei Insurance, Kaiyuan
Logistics, Kaiyuan Auto Trade, Chuanglian Auto Trade, and SCAC are referred to
herein each as a “Party” and
collectively as the “Parties.”

     

    WHEREAS, the Parties entered into the
Share Exchange Agreement (the “Share Exchange
Agreement”), dated as of February 4, 2009; and

     

    WHEREAS,
the Parties wish to amend the Share Exchange Agreement as set forth in this
Amendment pursuant to Section 12.03 of the Share Exchange
Agreement.

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the Parties hereby agree as follows:

     

    1.           Defined
Terms.  Unless otherwise specifically defined herein,
capitalized terms used herein shall have the respective meanings assigned to
such terms in the Share Exchange Agreement, pursuant to this
Amendment.

     

    2.           Amendments to Share Exchange
Agreement.  Upon the terms and subject to the conditions
hereof, the Share Exchange Agreement is amended as follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    EXECUTION
VERSION

     

     

    (a)           Section
7.04(a) of the Share Exchange Agreement is deleted in its entirety and a new
Section 7.04(a) is inserted in its place as follows:

     

    “(a)           Immediately
following the Closing Date, the authorized size of the Board will consist of
seven (7) persons.  The Proxy Statement of SCAC will present the
following persons as nominees for election as directors for a period commencing
from the Closing Date until the next annual general meeting of SCAC, or until
each director’s successor is elected and takes office: two (2) persons nominated
by the AutoChina Shareholders’ Representative (the “AutoChina Nominated
Directors”), two (2) persons nominated by the SCAC Shareholders’
Representative (the “SCAC Nominated
Directors”) and one (1) person as independent non-executive director (an
“Independent
Non-Executive Director”), provided that the Independent Non-Executive
Director candidate who is actually nominated shall be mutually agreed upon by
the AutoChina Shareholders’ Representative and the SCAC Shareholders’
Representative.  Subsequent to the Closing, two (2) additional persons
shall be nominated as Independent Non-Executive Directors, provided that such
Independent Non-Executive Director candidates who are nominated shall be
mutually agreed upon by the AutoChina Shareholders’ Representative and the SCAC
Shareholders’ Representative.  The Warrantors agree that for a period
commencing from the Closing Date and ending December 31, 2011, they shall use
their best efforts to nominate or to cause their Affiliates to nominate the
directors to the Board pursuant to this Section 7.04, subject to any obligations
imposed by law, rule or regulation on any nominating committee.  In
addition, the AutoChina Shareholders agree, and the Warrantors shall cause the
AutoChina Shareholders to agree, that, for a period commencing from the Closing
Date and ending December 31, 2011, they shall vote all SCAC Ordinary Shares then
owned by them in favor of the persons nominated as directors by the SCAC
Shareholders’ Representative pursuant to this Section 7.04.  Each of
AutoChina and SCAC shall procure that the composition of the board of directors
of AutoChina after the Closing shall be identical to that of SCAC.”

     

    (b)           Section
7.04(b) of the Share Exchange Agreement is deleted in its entirety and a new
Section 7.04(b) is inserted in its place as follows:

     

    “(b)           The
Board shall, immediately following the Closing, establish an audit committee, a
nomination committee and a compensation committee.  Prior to December
31, 2011, in the event there is only one (1) Independent Non-Executive Director
in office, each such committee shall consist of one (1) member, who shall be
such Independent Non-Executive Director.  Prior to December 31, 2011,
in the event there is more than one (1) Independent Non-Executive Director, each
such committee shall consist of two (2) members, one being an Independent
Non-Executive Director nominated to such committee based on the recommendation
of the AutoChina Shareholders’ Representative and the other being an Independent
Non-Executive Director nominated to such committee based on the recommendation
of the SCAC Shareholders’ Representative.  In any event that the two
(2) members in any such committee fail to reach a consensus with respect to any
matter, such matter shall be submitted to and decided by the Board by the
affirmative consent or approval of (i) at least six (6) members of the Board or
(ii) in the event there are less than six (6) members of the Board then in
office, all of the members of the Board then in office.”

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

      
        EXECUTION
VERSION

         

      

       

    

    (c)           The
first paragraph of Section 7.05(b) of the Share Exchange Agreement is deleted in
its entirety and a new first paragraph of Section 7.05(b) is inserted in its
place as follows:

     

    “(b)           Effective
immediately following the Closing, no director, officer, committee member,
employee, agent of SCAC or any Group Company or any of their respective
delegates shall, without the affirmative consent or approval of (i) at least six
(6) members of the Board or (ii) in the event there are less than six (6)
members of the Board then in office, all of the members of the Board then in
office, not take, nor shall they cause or permit SCAC or any Group Company to
take, any of the following actions (whether in a single transaction or a series
of related transactions):”

     

    3.           Remaining Provisions in Full
Force and Effect.  Except as expressly amended pursuant hereto,
the Share Exchange Agreement shall remain unchanged and in full force and effect
and is hereby ratified and confirmed in all respects.

     

    4.           Miscellaneous.

     

    

    (a)           This
Amendment shall be binding upon and inure to the benefit of the Parties and
their respective successors and permitted assigns.

     

    (b)           THIS
AMENDMENT IS SUBJECT TO THE PROVISIONS OF SECTION 12.11 OF THE SHARE EXCHANGE
AGREEMENT RELATING TO GOVERNING LAW, THE PROVISIONS OF WHICH ARE BY THIS
REFERENCE INCORPORATED HEREIN IN FULL.

     

    (c)           This
Amendment may be executed in any number of counterparts, each of which shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument.

     

    (d)           This
Amendment, together with the Share Exchange Agreement, contains the entire and
exclusive agreement of the Parties with reference to the matters discussed
herein.

     

    (e)           If
any term or provision of this Amendment shall be deemed prohibited by or invalid
under any applicable law, such provision shall be invalidated without affecting
the remaining provisions of this Amendment or the Share Exchange
Agreement.

     

    
      
        
        

      

      
        3Exhibit 10.1
    

    

    

    
      UNITED STATES DISTRICT COURT
SOUTHERN
      DISTRICT OF NEW YORK
    

    
      ---------------------------------------------------------------------------------
    

    
      SECURITIES AND EXCHANGE COMMISSION
    

    
                                              Plaintiff,
    

    
                                             -against-
    

    
    	
          
            ESCALA GROUP, INC.,
          

        	
          
            C.A. No. __-____
          

        

    

    
                                              Defendant.
    

    
      ---------------------------------------------------------------------------------
    

    

    

    
      CONSENT OF DEFENDANT ESCALA GROUP, INC.
    

    

    

    
                1.        Defendant Escala Group, Inc. ("Defendant") waives
      service of a summons and the complaint in this action, enters a general
      appearance, and admits the Court’s jurisdiction over Defendant and over
      the subject matter of this action.
    

    
                2.        Without admitting or denying the allegations of the
      complaint (except as to personal and subject matter jurisdiction, which
      Defendant admits), Defendant hereby consents to the entry of the final
      Judgment in the form attached hereto (the "Final Judgment") and
      incorporated by reference herein, which, among other things permanently
      restrains and enjoins Defendant from violation of:
    

    
      (a)  Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule
      10b-5 thereunder [17 C.F.R. § 240.10b-5];  
    

    
      (b)  Section 13(a) of the Exchange Act [15 U.S.C. § 78m(a)] and Rules
      12b-20, 13a-1 and 13a-13 thereunder [17 C.F.R §§ 240.12b-20, 240.13a-1,
      and 240.13a-13]; and
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (c)  Sections 13(b)(2)(A) and (B) of the Exchange Act [15 U.S.C. §
      78m(b)(2)(A) and (B)].
    

    
                3.        Defendant waives the entry of findings of fact and
      conclusions of law pursuant to Rule 52 of the Federal Rules of Civil
      Procedure.
    

    
                4.        Defendant waives the right, if any, to a jury trial
      and to appeal from the entry of the Final Judgment.
    

    
                5.        Defendant enters into this Consent voluntarily and
      represents that no threats, offers, promises, or inducements of any kind
      have been made by the Commission or any member, officer, employee,
      agent, or representative of the Commission to induce Defendant to enter
      into this Consent.
    

    
                6.        Defendant agrees that this Consent shall be
      incorporated into the Final Judgment with the same force and effect as
      if fully set forth therein.
    

    
                7.        Defendant will not oppose the enforcement of the
      Final Judgment on the ground, if any exists, that it fails to comply
      with Rule 65(d) of the Federal Rules of Civil Procedure, and hereby
      waives any objection based thereon.
    

    
                8.        Defendant waives service of the Final Judgment and
      agrees that entry of the Final Judgment by the Court and filing with the
      Clerk of the Court will constitute notice to Defendant of its terms and
      conditions.  Defendant further agrees to provide counsel for the
      Commission, within thirty days after the Final Judgment is filed with
      the Clerk of the Court, with an affidavit or declaration stating that
      Defendant has received and read a copy of the Final Judgment.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                9.        Consistent with 17 C.F.R. 202.5(f), this Consent
      resolves only the claims asserted against Defendant in this civil
      proceeding.  Defendant acknowledges that no promise or representation
      has been made by the Commission or any member, officer, employee, agent,
      or representative of the Commission with regard to any criminal
      liability that may have arisen or may arise from the facts underlying
      this action or immunity from any such criminal liability.  Defendant
      waives any claim of Double Jeopardy based upon the settlement of this
      proceeding, including the imposition of any remedy or civil penalty
      herein.  Defendant further acknowledges that the Court's entry of a
      permanent injunction may have collateral consequences under federal or
      state law and the rules and regulations of self-regulatory
      organizations, licensing boards, and other regulatory
      organizations.  Such collateral consequences include, but are not
      limited to, a statutory disqualification with respect to membership or
      participation in, or association with a member of, a self-regulatory
      organization.  This statutory disqualification has consequences that are
      separate from any sanction imposed in an administrative proceeding.  In
      addition, in any disciplinary proceeding before the Commission based on
      the entry of the injunction in this action, Defendant understands that
      it shall not be permitted to contest the factual allegations of the
      complaint in this action.
    

    
                10.       Defendant understands and agrees to comply with the
      Commission's policy "not to permit a defendant or respondent to consent
      to a judgment or order that imposes a sanction while denying the
      allegation in the complaint or order for proceedings."  17 C.F.R.
      § 202.5.  In compliance with this policy, Defendant agrees: (i) not to
      take any action or to make or permit to be made any public statement
      denying, directly or indirectly, any allegation in the complaint or
      creating the impression that the complaint is without factual basis; and
      (ii) that upon the filing of this Consent, Defendant hereby withdraws
      any papers filed in this action to the extent that they deny any
      allegation in the complaint.  If Defendant breaches this agreement, the
      Commission may petition the Court to vacate the Final Judgment and
      restore this action to its active docket.  Nothing in this paragraph
      affects Defendant’s: (i) testimonial obligations; or (ii) right to take
      legal or factual positions in litigation or other legal proceedings in
      which the Commission is not a party.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                11.       Defendant hereby waives any rights under the Equal
      Access to Justice Act, the Small Business Regulatory Enforcement
      Fairness Act of 1996, or any other provision of law to seek from the
      United States, or any agency, or any official of the United States
      acting in his or her official capacity, directly or indirectly,
      reimbursement of attorney’s fees or other fees, expenses, or costs
      expended by Defendant to defend against this action.  For these
      purposes, Defendant agrees that Defendant is not the prevailing party in
      this action since the parties have reached a good faith settlement.
    

    
                12.       In
      connection with this action and any related judicial or administrative
      proceeding or investigation commenced by the Commission or to which the
      Commission is a party, Defendant (i) agrees to appear and be interviewed
      by Commission staff at such times and places as the staff requests upon
      reasonable notice; (ii) will accept service by mail or facsimile
      transmission of notices or subpoenas issued by the Commission for
      documents or testimony at depositions, hearings, or trials, or in
      connection with any related investigation by Commission staff; (iii)
      appoints Defendant's undersigned attorney as agent to receive service of
      such notices and subpoenas; (iv) with respect to such notices and
      subpoenas, waives the territorial limits on service contained in Rule 45
      of the Federal Rules of Civil Procedure and any applicable local rules,
      provided that the party requesting the testimony reimburses Defendant's
      travel, lodging, and subsistence expenses at the then-prevailing U.S.
      Government per diem rates; and (v) consents to personal jurisdiction
      over Defendant in any United States District Court for purposes of
      enforcing any such subpoena.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                13.       Defendant agrees that the Commission may present the
      Final Judgment to the Court for signature and entry without further
      notice.
    

    
                14.       Defendant agrees that this Court shall retain
      jurisdiction over this matter for the purpose of enforcing the terms of
      the Final Judgment.
    

    

    

    
    	

        	
          Escala Group, Inc.
        
	

        	
           
        
	
          Dated: March 16, 2009
        	
          
            By: /s/ Carol Meltzer
          

        
	

        	
          Carol Meltzer
        
	

        	
          General Counsel and EVP
        
	

        	
          5 Francis J. Clarke Circle
        
	

        	
          Bethel, CT 06801
        

    

    

    

    
      On ______________, 2009, ________________________, a person known to me,
      personally appeared before me and acknowledged executing the foregoing
      Consent.
    

    

    

    

    

    
    	
           
        	
          
            /s/ LuAnn Praska
          

        
	

        	
          Notary Public
        
	

        	
          Commission expires:
        

    

    

    

    

    

    
      Approved as to form:

/s/ Arthur H. Aufses
Arthur H.
      Aufses III
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of
      the Americas
New York, NY 10036-2714
(212) 715-9100
Attorney
      for Defendant
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      ESCALA GROUP, INC. LIMITED CERTIFICATE OF
      CORPORATE RESOLUTION
    

    

    

    
      I, Carol Meltzer, do hereby certify that I am the duly elected,
      qualified and acting General Counsel and Executive Vice President of
      Escala Group, Inc., and that the following is a complete and accurate
      copy of a resolution adopted by the Board of Directors of Escala Group,
      Inc. at a meeting held on March 16, 2009 at which a quorum was present
      and resolved as follows:
    

    

    

    
      RESOLVED: That Carol Meltzer, an Officer of this Corporation, be
      and hereby is authorized to act on behalf of the Corporation, and in her
      sole discretion, to negotiate, approve, and enter into the Consent of
      Escala Group, Inc., attached hereto, to the United States Securities and
      Exchange Commission (“Commission”) in connection with the investigation
      conducted by the Commission; in this connection, the aforementioned
      Officer be and hereby is authorized to undertake such actions as she may
      deem necessary and advisable, including the execution of such
      documentation as may be required by the Commission, in order to carry
      out the foregoing.
    

    

    

    
      I further certify that the aforesaid resolution has not been amended or
      revoked in any respect and remains in full force and effect.
    

    

    

    
      IN WITNESS WHEREOF, I have executed this Certificate as a sealed
      instrument this 16th day of March 2009.
    

    

    

    
    	
           
        	
          By:
        	
          
            /s/ Carol Meltzer
          

        
	

        	

        	
          Carol Meltzer
        
	

        	
          General Counsel and EVP
        
	

        	

        	
          Escala Group, Inc.
        

    

    

    

    
                     STATE OF _________                    }
    

    
                                                                      }         SS:
COUNTY
      OF __________                   }

    

    

    

    
                The foregoing instrument was acknowledged before me this 16th
      day of March, 2009, by Carol Meltzer, who _X_ is personally known to me
      or ___who has produced a ________ driver's license as identification and
      who did take an oath.
    

    

    

    
      /s/ LuAnn Praska
Notary Public
State of ________
Commission
      Number                       :
Commission
      Expiration                   :

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      UNITED STATES DISTRICT COURT
SOUTHERN
      DISTRICT OF NEW YORK
    

    
      ---------------------------------------------------------------------------------
    

    
      SECURITIES AND EXCHANGE COMMISSION
    

    
                                              Plaintiff,
    

    
                                             -v-
    

    
    	
          
            ESCALA GROUP, INC.,
          

        	
          
            09 Civ. ______
          

        

    

    
                                              Defendant.
    

    
      ---------------------------------------------------------------------------------
    

    

    

    
      FINAL JUDGMENT AS TO DEFENDANT ESCALA
      GROUP, INC.
    

    

    

    
      The Securities and Exchange Commission having filed a Complaint and
      Defendant Escala Group, Inc. having entered a general appearance;
      consented to the Court’s jurisdiction over Defendant and the subject
      matter of this action; consented to entry of this Final Judgment without
      admitting or denying the allegations of the Complaint (except as to
      jurisdiction); waived findings of fact and conclusions of law; and
      waived any right to appeal from this Final Judgment:
    

    
      I.
    

    
      IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and
      Defendant's agents, servants, employees, attorneys, and all persons in
      active concert or participation with them who receive actual notice of
      this Final Judgment by personal service or otherwise are permanently
      restrained and enjoined from violating, directly or indirectly, Section
      10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15
      U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R.
      § 240.10b-5], by using any means or instrumentality of interstate
      commerce, or of the mails, or of any facility of any national securities
      exchange, in connection with the purchase or sale of any security: to
      employ any device, scheme, or artifice to defraud; to make any untrue
      statement of a material fact or to omit to state a material fact
      necessary in order to make the statements made, in the light of the
      circumstances under which they were made, not misleading; or to engage
      in any act, practice, or course of business which operates or would
      operate as a fraud or deceit upon any person.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      II.
    

    
      IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and
      Defendant's agents, servants, employees, attorneys, and all persons in
      active concert or participation with them who receive actual notice of
      this Final Judgment by personal service or otherwise are permanently
      restrained and enjoined from violating, directly or indirectly, Section
      13(a) of the Exchange Act [15 U.S.C. § 78m(a)] and Rules 12b-20, 13a-1
      and 13a-13 thereunder [17 C.F.R §§ 240.12b-20, 240.13a-1, and
      240.13a-13] by filing with the SEC financial statements that contain
      untrue statements of material fact or omit to state material facts
      required to be stated therein or necessary to make the statements made
      not misleading.
    

    
      III.
    

    
      IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and
      Defendant's agents, servants, employees, attorneys, and all persons in
      active concert or participation with them who receive actual notice of
      this Final Judgment by personal service or otherwise are permanently
      restrained and enjoined from violating, directly or indirectly, Sections
      13(b)(2)(A) and (B) of the Exchange Act [15 U.S.C. § 78m(b)(2)(A)&(B)]
      by failing to keep books, records, nad accounts which, in reasonable
      detail, accurately and fairly reflect the transactions and dispositions
      of the assets of the issuer, and by failing to devise and maintain a
      system of internal accounting controls sufficient to provide reasonable
      assurances that its transactions are recorded in conformity with
      Generally Accepted Accounting Principals.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      IV.
    

    
      IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is
      incorporated herein with the same force and effect as if fully set forth
      herein, and that Defendant shall comply with all of the undertakings and
      agreements set forth therein.
    

    

    

    
      V.
    

    
      IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall
      retain jurisdiction of this matter for the purposes of enforcing the
      terms of this Final Judgment.
    

    

    

    
      VI.
    

    
      There being no just reason for delay, pursuant to Rule 54(b) of the
      Federal Rules of Civil Procedure, the Clerk is ordered to enter this
      Final Judgment forthwith and without further notice.
    

    

    

    
    	
          Dated: ______________, _____
        	

        
	

        	
          ____________________________________
        
	

        	
          UNITED STATES DISTRICT JUDGE

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