Amendment to Securities Purchase and Registration Rights Agreements among Zhongpin Inc., Falcon Link Investment Limited, Purchasers, and D.H. Vermoegensverwaltung-und Beteiligungsgesellschaft mbH

Contract Categories: Business Finance › Modification Agreements
Summary

This amendment, dated February 21, 2006, modifies the Securities Purchase Agreement and Registration Rights Agreement originally signed on January 30, 2006, among Zhongpin Inc., Falcon Link Investment Limited, several purchasers, and D.H. Vermoegensverwaltung-und Beteiligungsgesellschaft mbH. The amendment removes D.H. Vermoegensverwaltung-und Beteiligungsgesellschaft mbH as a purchaser and investor, updates the list of purchasers and investors, and allows new parties to join the agreements. The changes take effect once all parties sign and required payments are made. All other terms of the original agreements remain unchanged.

Read More Arrow
EX-10.23 9 c42004_ex10-23.txt EXHIBIT 10.23 AMENDMENT This AMENDMENT (this "AMENDMENT"), dated as of February 21, 2006, is entered into by and among Zhongpin Inc. (formerly known as Strong Technical Inc.), a Delaware corporation (the "COMPANY"), Falcon Link Investment Limited, a corporation formed under the laws of The British Virgin Islands ("FALCON"), each of the entities listed on Exhibit A hereto (each a "PURCHASER" and collectively, the "PURCHASERS"), and D.H. Vermoegensverwaltung-und Beteiligungsgesellschaft mbH (the "WITHDRAWING PURCHASER"), for the purpose of amending the terms of (i) the Securities Purchase Agreement dated as of January 30, 2006 (the "SECURITIES PURCHASE AGREEMENT") among the Company, Falcon and the purchasers listed on Exhibit A thereto (collectively, the "ORIGINAL PURCHASERS") and (ii) the Registration Rights Agreement dated as of January 30, 2006 (the "REGISTRATION RIGHTS AGREEMENT") among the Company and the Original Purchasers. Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Securities Purchase Agreement. WHEREAS, the Company, Falcon, the Purchasers and the Withdrawing Purchaser have agreed to make certain amendments to the Securities Purchase Agreement and the Registration Rights Agreement as set forth herein; NOW, THEREFORE, in consideration of the above, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. From and after the date hereof, the Withdrawing Purchaser shall no longer be a "PURCHASER" under, or a party to, the Securities Purchase Agreement or an "INVESTOR" under, or a party to, the Registration Rights Agreement, and the Withdrawing Purchaser hereby acknowledges and agrees that it has not paid the Purchase Price for the Shares and Warrants to be acquired by it under the Securities Purchase Agreement and, as a result, it is not entitled to any of the rights or benefits afforded to the purchasers of the Shares or Warrants under the Securities Purchaser Agreement or the Registration Rights Agreement. 2. The Company agrees to issue and sell to the Purchasers listed on Annex A to this Amendment and, in consideration of and in express reliance upon, the representations, warranties, covenants, terms and conditions of the Securities Purchase Agreement, the Purchasers listed on Annex A to this Amendment, severally and not jointly, agree to purchase the number of Shares and Warrants set forth opposite their respective names on Annex A to this Amendment. Upon execution and delivery of this Amendment, each of the Purchasers listed on Annex A to this Amendment, if not currently a party to the Securities Purchase Agreement, shall become a party to, and, as a "PURCHASER" (as defined in the Securities Purchase Agreement"), shall be subject to the terms and conditions of, the Securities Purchase Agreement. 3. The Company, Falcon, the Purchasers and the Withdrawing Purchaser hereby agree that Exhibit A to the Securities Purchase Agreement is hereby amended and restated in its entirety to read as set forth on Exhibit A to this Amendment. 4. The Company, Falcon, the Purchasers and the Withdrawing Purchaser hereby agree that Schedule A to the Registration Rights Agreement is hereby amended and restated in its entirety to read as set forth on Schedule A to this Amendment. Upon execution and delivery of this Amendment, each of the Purchasers listed on Annex A to this Amendment, if not currently a party to the Registration Rights Agreement, shall become a party to, and, as an "INVESTOR" (as defined in the Registration Rights Agreement"), shall be subject to the terms and conditions of, the Registration Rights Agreement. 5. Each amendment set forth herein shall be effective as of the date first above written (the "AMENDMENT EFFECTIVE DATE") on the date when (i) each of the parties shall have executed and delivered a counterpart to this Amendment; (ii) the Purchasers listed on Annex A to this Amendment shall have delivered the Purchase Price for the Shares and Warrants to be purchased by such Purchasers pursuant to Section 2 of this Amendment to Law Debenture Trust Company of New York, as escrow agent under the escrow agreement dated as of January 30, 2006 in the form of Exhibit H to the Securities Purchase Agreement; and (iii) an Amendment to Escrow Agreement in the form annexed hereto as Exhibit B (the "ESCROW AMENDMENT") shall have been executed and delivered by the parties thereto. 6. Each of the Purchasers hereby consents to the execution and delivery of the Escrow Amendment by the parties thereto and to the amendment to the Escrow Agreement (as defined in the Escrow Amendment) to be effected by the Escrow Amendment. 7. Except as specifically set forth in this Amendment, there are no other amendments, modifications or waivers to the Securities Purchase Agreement or the Registration Rights Agreement, and all of the other terms and provisions of the Securities Purchase Agreement and the Registration Rights Agreement remain in full force and effect. 8. From and after the Amendment Effective Date, all references to the Securities Purchase Agreement or the Registration Rights Agreement shall be deemed to be references to the Securities Purchase Agreement and/or the Registration Rights Agreement, as the case may be, as modified hereby. 9. This Amendment shall be binding upon the parties hereto and their respective successors and permitted assigns and shall inure to the benefit of and be enforceable by each of the parties hereto and their respective successors and permitted assigns. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 2 IN WITNESS WHEREOF, each of the parties has caused this Amendment to be signed in its name effective as of the Amendment Effective Date. ZHONGPIN INC. By: /s/ Xiaomin Chen -------------------------------------- Name: Xiaomin Chen Title: Authorized Representative FALCON LINK INVESTMENT LIMITED By: /s/ Xiaomin Chen -------------------------------------- Name: Xiaomin Chen Title: Authorized Representative AMARANTH GLOBAL EQUITIES MASTER FUND LIMITED By: /s/ Karl Wachter -------------------------------------- Name: Karl Wachter Title: Authorized Representative ATLAS CAPITAL MASTER FUND LP By: /s/ Robert Alpert -------------------------------------- Name: Robert Alpert Title: Managing Director ATLAS CAPITAL (Q.P.), LP By: /s/ Robert Alpert -------------------------------------- Name: Robert Alpert Title: Managing Director 3 ATLAS CAPITAL OFFSHORE EXEMPT FUND, LTD. By: /s/ Robert Alpert -------------------------------------- Name: Robert Alpert Title: Managing Director BFS US SPECIAL OPPORTUNITIES TRUST PLC By: /s/ Russell Cleveland -------------------------------------- Name: Russell Cleveland Title: President RENN Capital Group, Inc. Investment Adviser CORDILLERA FUND, LP By: /s/ James P. Andrew -------------------------------------- Name: James P. Andrew Title: Co-CEO of Andrew Carter Capital, Inc., General Partner of ACCF GenPar, L.P., General Partner of the Cordillera Fund, L.P. CRESTVIEW CAPITAL MASTER LLC By: /s/ Robert Hill -------------------------------------- Name: Robert Hill Title: Managing Director D.H. VERMOEGENSVERWALTUNG - UND BETEILIGUNGSGESELLSCHAFT MBH By: /s/ Dirk Hajje -------------------------------------- Name: Dirk Hajje Title: Managing Director 4 GRYPHON MASTER FUND, L.P. By: /s/ E.B. Lyon IV -------------------------------------- Name: E.B. Lyon IV Title: Authorized Agent GSSF MASTER FUND, L.P. By: /s/ E.B. Lyon IV -------------------------------------- Name: E.B. Lyon IV Title: Authorized Agent JAYHAWK CHINA FUND (CAYMAN), LTD. By: /s/ Marcy Fergel -------------------------------------- Name: Marcy Fergel Title: Chief Financial Officer PINNACLE CHINA FUND, L.P. By: /s/ Barry M. Kitt -------------------------------------- Name: Barry M. Kitt Title: Sole Member, Kitt China Management, L.L.C., the Manager of Pinnacle China Management, L.L.C., the General Partner of Pinnacle China Advisors, L.P., the General Partner of Pinnacle China Fund, L.P. RENAISSANCE US GROWTH INVESTMENT TRUST PLC By: /s/ Russell Cleveland -------------------------------------- Name: Russell Cleveland Title: President RENN Capital Group, Inc. Investment Adviser 5 /s/ Michael Ross -------------------------------------- MICHAEL ROSS SANDOR CAPITAL MATER FUND, LP By: /s/ John S. Lemak -------------------------------------- Name: John S. Lemak Title: General Partner SOUTHWELL PARTNERS, LP By: /s/ Wilson Jaeggli -------------------------------------- Name: Wilson Jaeggli Title: Managing Director SPECIAL SITUATIONS PRIVATE EQUITY FUND, L.P. By: /s/ David Greenhouse -------------------------------------- Name: David Greenhouse Title: Managing Director SPECIAL SITUATIONS FUND III QP, L.P. By: /s/ David Greenhouse -------------------------------------- Name: David Greenhouse Title: Managing Director SPECIAL SITUATIONS FUND III, L.P. By: /s/ David Greenhouse -------------------------------------- Name: David Greenhouse Title: Managing Director 6 SRB GREENWAY OFFSHORE OPERATING FUND, L.P. By: /s/ Steve Becker -------------------------------------- Name: Steve Becker Title: Member SRB GREENWAY CAPITAL, L.P. By: /s/ Steve Becker -------------------------------------- Name: Steve Becker Title: Member SRB GREENWAY CAPITAL (QP), L.P. By: /s/ Steve Becker -------------------------------------- Name: Steve Becker Title: Member VISION OPPORTUNITY MASTER FUND, LTD. By: /s/ Adam Benowitz -------------------------------------- Name: Adam Benowitz Title: Managing Partner WESTPARK CAPITAL, L.P. By: /s/ Patrick J. Broshahan -------------------------------------- Name: Patrick J. Broshahan Title: General Partner 7 WS OPPORTUNITY FUND INTERNATIONAL, LTD. By: /s/ Patrick P. Walker -------------------------------------- Name: Patrick P. Walker Title: Member WS OPPORTUNITY FUND, L.P. By: /s/ Patrick P. Walker -------------------------------------- Name: Patrick P. Walker Title: Member WS OPPORTUNITY FUND (QP), L.P. By: /s/ Patrick P. Walker -------------------------------------- Name: Patrick P. Walker Title: Member 8 ANNEX A LIST OF PURCHASERS
- ----------------------------------------------------------------------------------------------------------------------- NUMBER OF DOLLAR NAMES AND ADDRESSES OF NUMBER OF SHARES WARRANTS AMOUNT PURCHASERS PURCHASED PURCHASED OF INVESTMENT - ----------------------------------------------------------------------------------------------------------------------- BFS US Special Opportunities Trust PLC 125,000 62,500 $500,000 c/o RENN Capital Group, Inc. 8080 Central Expressway, Suite 210, LB-59 Dallas, TX 75206 - ----------------------------------------------------------------------------------------------------------------------- Cordillera Fund, L.P. 100,000 50,000 $400,000 8201 Preston Road, Suite 400 Dallas, TX 75201 - ----------------------------------------------------------------------------------------------------------------------- Gryphon Master Fund, L.P. 175,000 87,500 $700,000 100 Crescent Court, Suite 490 Dallas, TX 75201 - ----------------------------------------------------------------------------------------------------------------------- GSS Master Fund, L.P. 75,000 37,500 $300,000 100 Crescent Court, Suite 490 Dallas, TX 75201 - ----------------------------------------------------------------------------------------------------------------------- Jayhawk China Fund (Cayman), Ltd. 400,000 200,000 $1,600,000 c/o Genesis Fund Services Limited Goodman's Bay Corporate Centre West Bay Street, Third Floor P.O. Box N-9508 Nassau, New Providence Bahamas - ----------------------------------------------------------------------------------------------------------------------- Renaissance US Growth Investment Trust PLC 125,000 62,500 $500,000 c/o RENN Capital Group, Inc. 8080 Central Expressway, Suite 210, LB-59 Dallas, TX 75206 - ----------------------------------------------------------------------------------------------------------------------- Westpark Capital, L.P. 250,000 125,000 $1,000,000 4965 Preston Park Boulevard Suite 200 Plano, TX 75093 - -----------------------------------------------------------------------------------------------------------------------
An A-1 EXHIBIT A LIST OF PURCHASERS
- ------------------------------------------------------------------------------------------------------------------------------- NUMBER OF DOLLAR NAMES AND ADDRESSES OF NUMBER OF SHARES WARRANTS AMOUNT PURCHASERS PURCHASED PURCHASED(1) OF INVESTMENT - ------------------------------------------------------------------------------------------------------------------------------- Pinnacle China Fund, L.P. 1,500,000 750,000 $6,000,000 4965 Preston Park Blvd Suite 240 Plano, TX 75093 - ------------------------------------------------------------------------------------------------------------------------------- Amaranth Global Equities Master Fund Limited 250,000 125,000 $1,000,000 c/o Dundee Leeds Management Services (Cayman) Ltd. Waterfront Centre 28 N. Church St, 2nd Fl. George Town, Grand Cayman Cayman Islands, British West Indies - ------------------------------------------------------------------------------------------------------------------------------- Atlas Capital Master Fund LP 283,750 141,874.989 $1,135,000 c/o Admiral Administration Admiral Financial Center, 5th Floor 90 Fort Street Box 32021 SMB Grand Cayman, Cayman Islands - ------------------------------------------------------------------------------------------------------------------------------- Atlas Capital (Q.P.), L.P. 172,000 86,000 $688,000 100 Crescent Court Suite 880 Dallas, TX 75201 - ------------------------------------------------------------------------------------------------------------------------------- Atlas Capital Offshore Exempt Fund, Ltd. 44,250 22,125.010 $177,000 c/o Admiral Administration Admiral Financial Center, 5th Floor 90 Fort Street Box 32021 SMB Grand Cayman, Cayman Islands - ------------------------------------------------------------------------------------------------------------------------------- BFS US Special Opportunities Trust PLC 375,000 187,500 $1,500,000 Front National Bank 100 W. Houston Street San Antonio, TX 78205 Attn: Henri Domingues T-8 - -------------------------------------------------------------------------------------------------------------------------------
- -------------------------- (1) Adjusted to give effect to the one-for-35.349 reverse stock split effected on February 16, 2006. Ex A-1
- ------------------------------------------------------------------------------------------------------------------------------- NUMBER OF DOLLAR NAMES AND ADDRESSES OF NUMBER OF SHARES WARRANTS AMOUNT PURCHASERS PURCHASED PURCHASED(1) OF INVESTMENT - ------------------------------------------------------------------------------------------------------------------------------- Cordillera Fund, L.P. 100,000 50,000 $400,000 8201 Preston Road, Suite 400 Dallas, TX 75201 - ------------------------------------------------------------------------------------------------------------------------------- Crestview Capital Master LLC 250,000 125,000 $1,000,000 95 Revere Drive, Suite A Northbrook IL 60062 - ------------------------------------------------------------------------------------------------------------------------------- Gryphon Master Fund, L.P. 175,000 87,500 $700,000 100 Crescent Court, Suite 490 Dallas, TX 75201 - ------------------------------------------------------------------------------------------------------------------------------- GSS Master Fund, L.P. 75,000 37,500 $300,000 100 Crescent Court, Suite 490 Dallas, TX 75201 - ------------------------------------------------------------------------------------------------------------------------------- Jayhawk China Fund (Cayman), Ltd. 900,000 450,000 $3,600,000 c/o Genesis Fund Service Limited 8201 Mission Road, Suite 110 Prairie Village, KS 66208 - ------------------------------------------------------------------------------------------------------------------------------- Renaissance US Growth Investment Trust PLC 375,000 187,500 $1,500,000 Front National Bank 100 W. Houston Street San Antonio, TX 78205 Attn: Henri Domingues T-8 Dallas, TX 75206 - ------------------------------------------------------------------------------------------------------------------------------- Michael P. Ross 75,000 37,500.014 $300,000 300 Central Park West, Apt. 15-C2 New York, New York 10024 - ------------------------------------------------------------------------------------------------------------------------------- Sandor Capital Master Fund, LP 125,000 62,500.014 $500,000 2828 Routh Street Suite 500 Dallas, TX 75201 - ------------------------------------------------------------------------------------------------------------------------------- Southwell Partners, LP 437,500 218,750.007 $1,750,000 1901 North Akard Street Dallas, TX 75201 - ------------------------------------------------------------------------------------------------------------------------------- Special Situations Private Equity Fund, L.P. 214,500 107,249.992 $858,000 527 Madison Avenue, Suite 2600 New York, NY 10022 - -------------------------------------------------------------------------------------------------------------------------------
Ex A-2
- ------------------------------------------------------------------------------------------------------------------------------- NUMBER OF DOLLAR NAMES AND ADDRESSES OF NUMBER OF SHARES WARRANTS AMOUNT PURCHASERS PURCHASED PURCHASED(1) OF INVESTMENT - ------------------------------------------------------------------------------------------------------------------------------- Special Situations Fund III QP, L.P. 492,750 246,375.003 $1,971,000 527 Madison Avenue, Suite 2600 New York, NY 10022 - ------------------------------------------------------------------------------------------------------------------------------- Special Situations Fund III, L.P. 42,750 21,375.003 $171,000 527 Madison Avenue, Suite 2600 New York, NY 10022 - ------------------------------------------------------------------------------------------------------------------------------- SRB Greenway Offshore Operating Fund, L.P. 6,674 3,337.491 $26,696 300 Crescent Court, Suite 1111 Dallas, TX 75201 Attn: Joe Worsham - ------------------------------------------------------------------------------------------------------------------------------- SRB Greenway Capital, L.P. 13,326 6,662.508 $53,304 300 Crescent Court, Suite 1111 Dallas, TX 75201 Attn: Joe Worsham - ------------------------------------------------------------------------------------------------------------------------------- SRB Greenway Capital (QP), L.P. 105,000 52,500.014 $420,000 300 Crescent Court, Suite 1111 Dallas, TX 75201 Attn: Joe Worsham - ------------------------------------------------------------------------------------------------------------------------------- Vision Opportunity Master Fund, Ltd. 450,000 225,000 $1,800,000 317 Madison Avenue, Suite 1220 New York, NY 10017 - ------------------------------------------------------------------------------------------------------------------------------- Westpark Capital, L.P. 250,000 125,000 $1,000,000 4965 Preston Park Boulevard Suite 200 Plano, TX 75093 - ------------------------------------------------------------------------------------------------------------------------------- WS Opportunity Fund International, Ltd. 95,000 47,500.014 $380,000 300 Crescent Court, Suite 1111 Dallas, TX 75201 Attn: Joe Worsham - ------------------------------------------------------------------------------------------------------------------------------- WS Opportunity Fund, L.P. 55,000 27,500.014 $220,000 300 Crescent Court, Suite 1111 Dallas, TX 75201 Attn: Joe Worsham - ------------------------------------------------------------------------------------------------------------------------------- WS Opportunity Fund (QP), L.P. 37,500 18,750.007 $150,000 300 Crescent Court, Suite 1111 Dallas, TX 75201 Attn: Joe Worsham - -------------------------------------------------------------------------------------------------------------------------------
Ex A-3 SCHEDULE A LIST OF INVESTORS Amaranth Global Equities Master Fund Limited Atlas Capital Master Fund LP Atlas Capital (Q.P.), L.P. Atlas Capital Offshore Exempt Fund, Ltd. BFS US Special Opportunities Trust PLC Cordillera Fund, LP Crestview Capital Master LLC Gryphon Master Fund, L.P. GSSF Master Fund, L.P. Jayhawk China Fund (Cayman), Ltd. Pinnacle China Fund LP Renaissance US Growth Investment Trust PLC Michael P. Ross Sandor Capital Master Fund, LP Southwell Partners, LP Special Situations Private Equity Fund, L.P. Special Situations Fund III QP, L.P. Special Situations Fund III, L.P. SRB Greenway Offshore Operating Fund, L.P. SRB Greenway Capital, L.P. SRB Greenway Capital (QP), L.P. Vision Opportunity Master Fund, LTD. Westpark Capital, L.P. WS Opportunity Fund International, Ltd. WS Opportunity Fund, L.P. WS Opportunity Fund (QP), L.P. Sch A-1 EXHIBIT B AMENDMENT TO ESCROW AGREEMENT This Amendment to Escrow Agreement (this "AMENDMENT"), dated as of February 21, 2006, is entered into by and among Zhongpin Inc. (formerly known as Strong Technical Inc.), a Delaware corporation (the "Company"), each of the parties listed below that is a stockholder of the Company (collectively, the "STOCKHOLDERS"), and Law Debenture Trust Company of New York, a New York banking corporation, as escrow agent (hereinafter referred to as the "ESCROW AGENT"), for the purpose of amending the Escrow Agreement dated as of January 30, 2006 (the "ESCROW AGREEMENT") among the Company, the Stockholders and the Escrow Agent. WHEREAS, the Company and the Stockholders have agreed to amend Schedule B to the Escrow Agreement set forth in this Amendment; NOW, THEREFORE, in consideration of the above, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Schedule B to the Escrow Agreement is hereby amended and restated in its entirety to read as set forth on the schedule annexed to this Amendment. 2. The amendment set forth herein shall be effective as of the date first above written (the "AMENDMENT EFFECTIVE DATE") on the date when (i) each of the parties shall have executed and delivered a counterpart to this Amendment; and (ii) each of the conditions set forth in clauses (i) and (ii) to Section 5 of the Amendment dated as of the date hereof among the Company, Falcon Link Investment Limited, the Purchasers named there and D.H. Vermoegensverwaltung - und Beteiligungsgesellschaft mbH shall have been satisfied. 3. Except as specifically set forth in this Amendment, there are no other amendments, modifications or waivers to the Escrow Agreement, and all of the other terms and provisions of the Escrow Agreement remain in full force and effect. 4. From and after the Amendment Effective Date, all references to the Escrow Agreement shall be deemed to be references to the Escrow Agreement, as modified hereby. 5. This Amendment shall be binding upon the parties hereto and their respective successors and permitted assigns and shall inure to the benefit of and be enforceable by each of the parties hereto and their respective successors and permitted assigns. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument. Ex B-1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written. ZHONGPIN INC. By: -------------------------------- Name: Xiaomin Chen Title: Authorized Representative LAW DEBENTURE TRUST COMPANY OF NEW YORK, AS ESCROW AGENT By: -------------------------------- Name: Boris Treyger Title: STOCKHOLDERS: -------------------------------- ZHU, Xianfu -------------------------------- BEN, Boake -------------------------------- LIU, Chaoyang -------------------------------- WANG, Qinghe -------------------------------- SI, Shuichi -------------------------------- WANG, Juanjuan Ex B-2 -------------------------------- LIN, Yousu -------------------------------- WANG, Qian -------------------------------- WANG, Yunchun Ex B-3 SCHEDULE B
NUMBER OF NUMBER OF TAX I.D. ESCROW SHARES ESCROW SHARES NAME OF PURCHASER ADDRESS NUMBER FISCAL 2006 FISCAL 2007 ----------------- ------- ------ ----------- ----------- Pinnacle China Fund L.P. 4965 Preston Park Blvd 20 ###-###-#### 4,322,573 4,322,573 Suite 240 Plano, TX 75093 Amaranth Global Equities c/o Dundee Leeds Management Services 98-0411928 720,429 720,429 Master Fund Limited (Cayman) Ltd. Waterfront Centre 28 N. Church St, 2nd Fl. George Town, Grand Cayman Cayman Islands, British West Indies Atlas Capital Master Fund LP c/o Admiral Administration 817,687 817,687 Admiral Financial Center, 5th Floor 90 Fort Street Box 32021 SMB Grand Cayman, Cayman Islands Atlas Capital (Q.P.), LP 100 Cresent Court, Suite 800 33-1025414 495,655 495,655 Dallas, TX 75201 Atlas Capital Offshore Exempt c/o Admiral Administration 127,516 127,516 Fund, Ltd. Admiral Financial Center, 5th Floor 90 Fort Street Box 32021 SMB Grand Cayman, Cayman Islands
Sch B-1
NUMBER OF NUMBER OF TAX I.D. ESCROW SHARES ESCROW SHARES NAME OF PURCHASER ADDRESS NUMBER FISCAL 2006 FISCAL 2007 ----------------- ------- ------ ----------- ----------- BFS US Special Opportunities Front National Bank 1,080,643 1,080,643 Trust PLC 100 W. Houston Street San Antonio, TX 78205 Attn: Henri Domingues T-8 Cordillera Fund, LP 8201 Preston Road, Suite 400 20-1227553 288,172 288,172 Dallas, TX 75021 Crestview Capital Master LLC 95 Revere Drive, Suite A 20-0512894 720,429 720,429 Northbrook IL 60062 Gryphon Master Fund, L.P. 100 Crescent Court, Suite ###-###-#### 504,300 504,300 Dallas, TX 75201 GSSF Master Fund, L.P. 100 Crescent Court, Suite 490 98-0433969 216,129 216,129 Dallas, TX 75201 Jayhawk China Fund (Cayman), c/o Genesis Fund Service Limited 98-0170144 2,593,544 2,593,544 Ltd. 8201 Mission Road, Suite 110 Prairie Village, KS 66208 Renaissance US Growth Front National Bank 1,080,643 1,080,643 Investment Trust PLC 100 W. Houston Street San Antonio, TX 78205 Attn: Henri Domingues T-8 Dallas, TX [7206] Michael P. Ross 300 Central Park West, Apt. 15-C2 ###-##-#### 216,129 216,129 New York, New York 10024 Sandor Capital Master Fund, 2828 Routh Street, Suite 500 27-0013809 360,214 360,214 L.P. Dallas, TX 75201
Sch B-2
NUMBER OF NUMBER OF TAX I.D. ESCROW SHARES ESCROW SHARES NAME OF PURCHASER ADDRESS NUMBER FISCAL 2006 FISCAL 2007 ----------------- ------- ------ ----------- ----------- Southwell Partners, L.P. 1901 North Akard Street ###-###-#### 1,260,750 1,260,750 Dallas, TX 75201 Special Situations Private 527 Madison Avenue, Suite 2600 ###-###-#### 618,128 618,128 Equity Fund, L.P. New York, NY 10022 Special Situations Fund III 527 Madison Avenue, Suite 2600 ###-###-#### 1,419,965 1,419,965 QP, L.P. New York, NY 10022 Special Situations Fund III, 527 Madison Avenue, Suite 2600 55-0898321 123,193 123,193 L.P. New York, NY 10022 SRB Greenway Offshore 300 Crescent Court, Suite 1111 19,235 19,235 Operating Fund, L.P. Dallas, TX 75201 Attn: Joe Worsham SRB Greenway Capital, L.P. 300 Crescent Court, Suite 1111 20-1718174 38,399 38,399 Dallas, TX 75201 Attn: Joe Worsham SRB Greenway Capital (QP), L.P. 300 Crescent Court, Suite 1111 20-1939469 302,580 302,580 Dallas, TX 75201 Attn: Joe Worsham Vision Opportunity Master 317 Madison Avenue, Suite 1220 27-0120759 1,296,772 1,296,772 Fund, LTD New York, NY 10017 Westpark Capital, L.P. 4965 Preston Park Boulevard, Suite ###-###-#### 720,429 720,429 Plano, TX 75093
Sch B-3
NUMBER OF NUMBER OF TAX I.D. ESCROW SHARES ESCROW SHARES NAME OF PURCHASER ADDRESS NUMBER FISCAL 2006 FISCAL 2007 ----------------- ------- ------ ----------- ----------- WS Opportunity Fund 300 Crescent Court, Suite 1111 273,763 276,763 International, Ltd. Dallas, TX 75201 Attn: Joe Worsham WS Opportunity Fund, L.P. 300 Crescent Court, Suite 1111 ###-###-#### 158,494 158,494 Dallas, TX 75201 Attn: Joe Worsham WS Opportunity Fund (QP), L.P. 300 Crescent Court, Suite 1111 ###-###-#### 108,064 108,064 Dallas, TX 75201 Attn: Joe Worsham
Sch B-4