SHARE AND WARRANT
CANCELLATION AGREEMENT
THIS SHARE AND WARRANT CANCELLATION AGREEMENT
(this “ Agreement ”) is made and entered into as
of this 25th day of July, 2008 by and between SRKP 19, Inc., a
Delaware corporation (“ SRKP 19 ”) and the
stockholders of SRKP 19, as set forth on Schedule I attached
hereto (such stockholders collectively referred to herein as the
“ Stockholders ”). Capitalized terms used herein
and not otherwise defined herein shall have the meanings ascribed
to them in the Exchange Agreement (as hereinafter
defined).
RECITALS
WHEREAS, SRKP 19, NIVS Holding Company Limited,
a British Virgin Islands corporation (" NIVS "), and all of
the shareholders of NIVS entered into a Share Exchange Agreement,
dated as of June 27, 2008, as amended on the date hereof (the
“ Exchange Agreement ”), a copy of which is
attached hereto as Exhibit A ;
WHEREAS, pursuant to the terms of the Exchange
Agreement, and as a condition to the completion of the transactions
contemplated by the Exchange Agreement, SRKP 19 agreed to enter
into an agreement with the Stockholders to cancel (i) an aggregate
of 4,756,390 shares of SRKP 19 common stock held by such
Stockholders (the “ Shares ”), as such Shares
are more particularly set forth on Schedule I attached
hereto, and (ii) an aggregate of 6,149,723 warrants to purchase
shares of SRKP 19 common stock held by such Stockholders (the
“ Warrants ”), as such Warrants are more
particularly set forth on Schedule II attached hereto;
and
WHEREAS, the Stockholders acknowledge that they
would benefit from the completion of the transactions contemplated
by the Exchange Agreement.
NOW, THEREFORE, for and in consideration of the
execution and delivery of the Exchange Agreement, and the payment
of good and valuable consideration pursuant to the Exchange
Agreement, the receipt and sufficiency of which is hereby
acknowledged, SRKP 19 and the Stockholders, each intending to be
legally bound by this Agreement, hereby agree as
follows:
AGREEMENT
1.
DUTIES
1.1 Rights
and Obligations of the Parties . The parties shall be entitled
to such rights and shall perform such duties as set forth herein.
In the event that the terms of this Agreement conflict in any way
with the provisions of the Exchange Agreement, the Exchange
Agreement shall control.
1.2
Cancellation of Shares and Warrants . On the Closing Date of
the Exchange Agreement, the Shares and the Warrants shall be deemed
automatically cancelled. The Stockholders agree to execute any and
all documents, including, but not limited to, stock powers for the
stock certificates representing the Shares, as SRKP 19 reasonably
determines necessary to effect the cancellation of the Shares and
the Warrants pursuant to the terms of this Agreement.
2.
DIVIDENDS; VOTING RIGHTS; STOCK SPLITS
2.1 Cash
Dividends; Voting Rights . Prior to the Closing of the Exchange
Agreement, the Stockholders shall have rights to cash or stock
dividends with respect to the Shares and the Warrants, if any, and
have rights to vote their respective Shares, if any such matter
requiring stockholder approval shall arise.
2.2 Stock
Splits; Stock Dividends . In the event of any stock split or
other similar transaction with respect to SRKP 19 common stock that
becomes effective prior to the Closing of the Exchange Agreement,
the additional shares or warrants issued with respect to the Shares
or the Warrants shall be similarly cancelled.
3.1
Transferability . None of the rights and obligations of the
Stockholders hereunder shall be transferable.
3.2
Notices . Any notices or other communications required or
permitted under this Agreement shall be in writing and shall be
sufficiently given if sent by (i) registered or certified mail,
postage prepaid,