Amendment No. 1 to Agreement
and Plan of Merger and Reorganization
This
Amendment No. 1 to Agreement and Plan of Merger and
Reorganization (this
“ Amendment ”) is made and entered into
as of September 29, 2008, by and among Heckmann
Corporation , a Delaware corporation (“
Parent ”), Heckmann Acquisition II
Corp. , a Delaware corporation and a wholly owned
Subsidiary of Parent (“ Merger Sub ”),
and China Water and Drinks, Inc. , a Nevada
corporation (the “ Company ”), and,
solely with respect to Section 2.4 , Xu Hong Bin
and Cheng Xing Hua, and amends that certain Agreement and Plan of
Merger and Reorganization (the “ Merger
Agreement ”) by and among Parent, Merger Sub and the
Company dated as of May 19, 2008.
Recitals
A. Pursuant to the Merger Agreement, the Company
will be merged with and into Merger Sub (the “
Merger ”) with the Company ceasing to exist
and Merger Sub remaining as a wholly owned subsidiary of
Parent.
B. In light of extraordinary conditions in world
credit and capital markets, the desire of Parent to preserve its
cash in light of these conditions, the de minimis price paid for
Company Common Stock by certain Company stockholders, and other
factors, such Company stockholders have agreed to sell some or all
of their shares of Company Common Stock, whether owned directly or
indirectly, to Parent immediately prior to the Effective Time of
the Merger at a price significantly lower than the Merger
consideration (the “ Stock Sales
”).
C. To effectuate the Stock Sales, the applicable
parties have entered into an amendment to the Undertaking Agreement
and amendments to the Majority Stockholder Written Consent
Agreements, and two Company stockholders have executed separate
stock sale agreements.
D. Pursuant to Section 8.1 of the Merger
Agreement, Parent, Merger Sub and the Company, may amend the Merger
Agreement by signing an instrument in writing, provided that any
such amendment is authorized by their respective boards of
directors.
E. To the extent required under and in accordance
with the Merger Agreement, the NRS, and the Company’s
Articles of Incorporation and Bylaws, concurrent with the execution
of this Amendment by the partiers hereto, Xu Hong Bin and Chen Xing
Hua, in their capacity as Company stockholders, will execute and
deliver in accordance with NRS §78.320 a written consent,
pursuant to which Xu Hong Bin and Chen Xing Hua will irrevocably
consent to reaffirm their adoption of the Merger Agreement and
approval of the Merger, and adopt this Amendment.
F. Capitalized terms used in this Amendment and
not otherwise defined shall have the meaning ascribed to such terms
in the Agreement.
Now therefore,
in accordance with the procedures for amendment of the Agreement
set forth in Section 8.1 thereof, and in consideration of the
foregoing and the mutual agreements herein set forth, the parties
hereby agree as follows:
SECTION 1: Amendment
1.1 Recital E of the Merger Agreement is amended by
deleting “(the “ Undertaking Agreement
”),” and replacing such language with the
following:
“(as the same may be amended from time to
time, the “ Undertaking Agreement
”).”
1.2 Recital G of the Merger Agreement is amended by
deleting “(the “ Majority Stockholder Written
Consent Agreements ”),” and replacing such
language with the following:
“(as the same may be amended from time to
time, the “ Majority Stockholder Written Consent
Agreements ”).”
1.3 Section 3.6(a) of the Merger Agreement is
amended by adding the following to the end of clause
(ii):
“, other than any acquisition of Company
Common Stock by Parent pursuant to the Related Agreements or from
Ng Tak Kau or Jin Shu Xing.”
1.4 Section 6.2 of the Merger Agreement is amended
by adding the following new Section 6.2(s)
“ 6.2(s)
the agreements pursuant to which Ng
Tak Kau and Jin Shu Xing agreed to sell 100% and 15%, respectively,
of their shares of Company Common Stock to Parent shall remain
effective and the transactions contemplated thereby that are
required to be consummated at or prior to the Effective Time shall
have been consummated.”
SECTION 2: Miscellaneous
Provisions
2.1 Effectiveness . This Amendment shall become effective upon
execution.
2.2 Representations and Warranties
.
2.2(a) The Company represents and warrant