Document:

Unassociated Document

    

    EXHIBIT
      4.5

     

    THE
      REGISTERED HOLDER OF THIS PURCHASE OPTION, BY ITS ACCEPTANCE HEREOF, AGREES
      THAT
      IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION, EXCEPT AS HEREIN
      PROVIDED, AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT
      WILL
      NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR
      A
      PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER
      THAN (I) ______________________ OR AN UNDERWRITER OR A SELECTED DEALER IN
      CONNECTION WITH THE OFFERING (DEFINED HEREIN), OR (II) A BONA FIDE OFFICER,
      PARTNER OR EMPLOYEE OF ___________ OR OF ANY SUCH UNDERWRITER OR SELECTED
      DEALER.

     

    

    

    UNIT
      PURCHASE OPTION

    

    

    FOR
      THE
      PURCHASE OF

    

    _________________
      UNITS

    

    OF

    

    SMG
      INDIUM RESOURCES LTD.

    

     

    1.  Purchase
      Option.

     

    THIS
      CERTIFIES THAT, in consideration of $100.00 duly paid by or on behalf of
      ____________________ or their designees (each, a “Holder”),
      as
      registered owner of this Purchase Option (“Purchase
      Option”),
      to
      SMG Indium Resources Ltd. (the “Company”),
      Holder is entitled, at any time or from time to time after ________, 2009
      (“Commencement
      Date”),
      and
      at or before 5:00 p.m., New York City local time, ___________, 2013
      (“Expiration
      Date”),
      but
      not thereafter, to subscribe for, purchase and receive, in whole or in part,
      up
      to ______________ (___) units (“Units”)
      of the
      Company, each Unit consisting of one share of common stock of the Company,
      par
      value $.001 per share (“Common
      Stock”),
      and
      one warrant (“Warrant”)
      expiring four years from the effective date (“Effective
      Date”)
      of the
      registration statement (“Registration
      Statement”)
      pursuant to which Units are offered for sale to the public (the “Offering”).
      Each
      Warrant is on the same terms and conditions as the warrants included in the
      Units being registered for sale to the public by way of the Registration
      Statement (“Public
      Warrants”),
      except that the exercise price of each Warrant is $6.60 per share (such exercise
      price, as it may be adjusted hereunder, the “Underwriter’s
      Warrant Price”).
      If
      the Expiration Date is a day on which banking institutions are authorized by
      law
      to close in New York City, then this Purchase Option may be exercised on the
      next succeeding day which is not such a day in accordance with the terms herein.
      During the period ending on the Expiration Date, the Company agrees not to
      take
      any action that would terminate the Purchase Option. This Purchase Option is
      initially exercisable at $5.50 per Unit so purchased; provided, however, that
      upon the occurrence of any of the events specified in Section 6 hereof, the
      rights granted by this Purchase Option, including the exercise price per Unit
      and the number of Units (and shares of Common Stock and Warrants) to be received
      upon such exercise, shall be adjusted as therein specified. The term
“Exercise
      Price”
shall
      mean the initial exercise price per Unit or the adjusted exercise price per
      Unit, depending on the context.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.  Exercise.

     

    2.1  Exercise
      Form.
      In
      order to exercise this Purchase Option, the exercise form attached hereto must
      be duly executed and completed and delivered to the Company, together with
      this
      Purchase Option and payment of the Exercise Price for the Units being purchased
      payable in cash or by certified check or official bank check. If the
      subscription rights represented hereby shall not be exercised at or before
      5:00
      p.m., New York City local time, on the Expiration Date, this Purchase Option
      shall become and be void without further force or effect, and all rights
      represented hereby shall cease and expire.

     

    2.2  Legend.
      Each
      certificate for the securities purchased under this Purchase Option shall bear
      a
      legend as follows unless such securities have been registered under the
      Securities Act of 1933, as amended (the “Securities
      Act”):

     

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (“Act”) or applicable state law. The
      securities may not be offered for sale, sold or otherwise transferred except
      pursuant to an effective registration statement under the Act, or pursuant
      to an
      exemption from registration under the Act and applicable state
      law.”

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    2.3  Cashless
      Exercise.
      

     

    2.3.1  Determination
      of Amount.
      In lieu
      of the payment of the Exercise Price multiplied by the number of Units for
      which
      this Purchase Option is exercisable (and in lieu of being entitled to receive
      Common Stock and Warrants) in the manner required by Section 2.1, the Holder
      shall have the right (but not the obligation) to convert any exercisable but
      unexercised portion of this Purchase Option into Units (“Conversion
      Right”)
      as
      follows: upon exercise of the Conversion Right, the Company shall deliver to
      the
      Holder (without payment by the Holder of any of the Exercise Price in cash)
      that
      number of Units (or that number of shares of Common Stock and Warrants
      comprising that number of Units) equal to the quotient obtained by dividing
      (x)
      the “Value”
(as
      defined below) of the portion of the Purchase Option being converted by (y)
      the
      Current Market Value (as defined below) of as Unit. The “Value” of the portion
      of the Purchase Option being converted shall equal the remainder derived from
      subtracting (a) (i) the Exercise Price multiplied by (ii) the number of Units
      underlying the portion of this Purchase Option being converted from (b) the
      Current Market Value of a Unit multiplied by the number of Units underlying
      the
      portion of the Purchase Option being converted. As used herein, the term
“Current
      Market Value”
      per Unit
      at any date means: (A) in the event that neither the Units nor Public Warrants
      are still trading, the remainder derived from subtracting (x) the exercise
      price
      of the Warrants multiplied by the number of shares of Common Stock issuable
      upon
      exercise of the Warrants underlying one Unit from (y) (i) the Current Market
      Price of the Common Stock multiplied by (ii) the number of shares of Common
      Stock underlying one Unit, which shall include the shares of Common Stock
      underlying the Warrants included in such Unit; (B) in the event that the Units,
      Common Stock and Public Warrants are still trading, (i) if the Units are listed
      on a national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
      Capital Market or the FINRA OTC Bulletin Board (or successor exchange), the
      last
      sale price of the Units in the principal trading market for the Units as
      reported by the exchange, Nasdaq or the FINRA OTC Bulletin Board, as the case
      may be, on the last trading day preceding the date in question; or (ii) if
      the
      Units are not listed on a national securities exchange or quoted on the Nasdaq
      Global Market, Nasdaq Capital Market or the FINRA OTC Bulletin Board (or
      successor exchange), but is traded in the residual over-the-counter market,
      the
      closing bid price for Units on the last trading day preceding the date in
      question for which such quotations are reported by the Pink Sheets, LLC or
      similar publisher of such quotations; and (C) in the event that the Units are
      not still trading but the Common Stock and Public Warrants underlying the Units
      are still trading, the Current Market Price of the Common Stock plus the product
      of (x) the Current Market Price of the Public Warrants and (y) the number of
      shares of Common Stock underlying the Warrants included in one Unit. The
“Current
      Market Price”
shall
      mean (i) if the Common Stock (or Public Warrants, as the case may be) is listed
      on a national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
      Capital Market or the FINRA OTC Bulletin Board (or successor exchange), the
      last
      sale price of the Common Stock (or Public Warrants) in the principal trading
      market for the Common Stock as reported by the exchange, Nasdaq or FINRA, as
      the
      case may be, on the last trading day preceding the date in question; (ii) if
      the
      Common Stock (or Public Warrants, as the case may be) is not listed on a
      national securities exchange or quoted on the Nasdaq Global Market, Nasdaq
      Capital Market or the FINRA OTC Bulletin Board (or successor exchange), but
      is
      traded in the residual over-the-counter market, the closing bid price for the
      Common Stock (or Public Warrants) on the last trading day preceding the date
      in
      question for which such quotations are reported by the Pink Sheets, LLC or
      similar publisher of such quotations; and (iii) if the fair market value of
      the
      Common Stock cannot be determined pursuant to clause (i) or (ii) above, such
      price as the Board of Directors of the Company shall determine, in good faith.
      In the event the Public Warrants have expired and are no longer exercisable,
      no
“Value” shall be attributed to the Warrants underlying this Purchase Option.
      Additionally, in the event that this Purchase Option is exercised pursuant
      to
      this Section 2.3 and the Public Warrants are still trading, the “Value” shall be
      reduced by the difference between the Warrant Exercise Price and the exercise
      price of the Public Warrants multiplied by the number of Warrants underlying
      the
      Units included in the portion of this Purchase Option being
      converted.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2.3.2  Mechanics
      of Cashless Exercise.
      The
      cashless exercise right described in this Section 2.3 (“Cashless
      Exercise Right”)
      may be
      exercised by the Holder on any business day on or after the Commencement Date
      and not later than the Expiration Date by delivering the Purchase Option with
      the duly executed exercise form attached hereto with the cashless exercise
      section completed to the Company, exercising the Cashless Exercise Right and
      specifying the total number of Units the Holder will purchase pursuant to such
      Cashless Exercise Right.

     

    2.4  Net
      Cash Settlements.
      In no
      event will the Company be required to net cash settle the exercise of the
      Purchase Option or the Warrants underlying the Purchase Option, regardless
      of
      whether any or all of the Registrable Securities have been registered by the
      Company pursuant to an effective registration statement. The holder of the
      Purchase Option and the Warrants underlying the Purchase Option will not be
      entitled to exercise the Purchase Option or the Warrants underlying such
      Purchase Option unless a registration statement is effective, or an exemption
      from the registration requirements is available at such time and, if the holder
      is not able to exercise the Purchase Option or underlying Warrants, the Purchase
      Option and/or the underlying Warrants, as applicable, will expire
      worthless.

     

    3.  Transfer.

     

    3.1  General
      Restrictions.
      The
      registered Holder of this Purchase Option, by its acceptance hereof, agrees
      that
      it will not sell, transfer, assign, pledge or hypothecate, or enter into any
      hedging, short sale, derivative, put, or call transaction that would result
      in
      the effective economic disposition of, this Purchase Option for a period of
      one
      year following the Effective Date to anyone other than (i) _____________________
      or an underwriter or a selected dealer in connection with the Offering, or
      (ii)
      a bona fide officer or partner of ___________________ or of any such underwriter
      or selected dealer. On and after the first anniversary of the Effective Date,
      transfers to others may be made subject to compliance with or exemptions from
      applicable securities laws. In order to make any permitted assignment, the
      Holder must deliver to the Company the assignment form attached hereto duly
      executed and completed, together with the Purchase Option and payment of all
      transfer taxes, if any, payable in connection therewith. The Company shall
      within five business days transfer this Purchase Option on the books of the
      Company and shall execute and deliver a new Purchase Option or Purchase Options
      of like tenor to the appropriate assignee(s) expressly evidencing the right
      to
      purchase the aggregate number of Units purchasable hereunder or such portion
      of
      such number as shall be contemplated by any such assignment.

     

    3.2  Restrictions
      Imposed by the Act.
      The
      securities evidenced by this Purchase Option shall not be transferred unless
      and
      until (i) the Company has received the opinion of counsel for the Holder that
      the securities may be transferred pursuant to an exemption from registration
      under the Securities Act and applicable state securities laws, the availability
      of which is established to the reasonable satisfaction of the Company (the
      Company hereby agreeing that the opinion of Lowenstein Sandler PC shall be
      deemed satisfactory evidence of the availability of an exemption), or (ii)
      a
      registration statement or a post-effective amendment to the Registration
      Statement relating to such securities has been filed by the Company and declared
      effective by the Commission and compliance with applicable state securities
      law
      has been established.

     

    4.  New
      Purchase Options to be Issued.

     

    4.1  Partial
      Exercise or Transfer.
      Subject
      to the restrictions in Section 3 hereof, this Purchase Option may be exercised
      or assigned in whole or in part. In the event of the exercise or assignment
      hereof in part only, upon surrender of this Purchase Option for cancellation,
      together with the duly executed exercise or assignment form and, except in
      the
      case of an exercise of this Purchase Option contemplated by Section 2.3 hereof,
      funds sufficient to pay any Exercise Price and/or transfer tax, the Company
      shall cause to be delivered to the Holder without charge a new Purchase Option
      of like tenor to this Purchase Option in the name of the Holder evidencing
      the
      right of the Holder to purchase the number of Units purchasable hereunder as
      to
      which this Purchase Option has not been exercised or assigned.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    4.2  Lost
      Certificate.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Purchase Option and of reasonably satisfactory
      indemnification or the posting of a bond, the Company shall execute and deliver
      a new Purchase Option of like tenor and date. Any such new Purchase Option
      executed and delivered as a result of such loss, theft, mutilation or
      destruction shall constitute a substitute contractual obligation on the part
      of
      the Company.

     

    5.  Registration
      Rights.

     

    5.1  Demand
      Registration.

     

    5.1.1  Grant
      of Right.
      The
      Company, upon written demand (“Initial
      Demand Notice”)
      of the
      Holder(s) of at least 50.1% of the Purchase Options and/or the underlying Units
      and/or the underlying securities (“Majority
      Holders”),
      agrees to use its reasonable best efforts to register (the “Demand
      Registration”)
      under
      the Securities Act on one occasion, all of the Purchase Options requested by
      the
      Majority Holders in the Initial Demand Notice and all of the securities
      underlying such Purchase Options, including the Units, Common Stock, the
      Warrants and the Common Stock underlying the Warrants (collectively, the
“Registrable
      Securities”). On
      such
      occasion, the Company will file a registration statement for use in an offering
      of the Registrable Securities from time-to-time or a post-effective amendment
      to
      the Registration Statement covering all of the Registrable Securities that
      will
      permit an offering of the Registrable Securities from time-to-time within sixty
      days after receipt of the Initial Demand Notice and use its reasonable best
      efforts to have such registration statement or post-effective amendment declared
      effective as soon as possible thereafter. The demand for registration may be
      made at any time during a period of five years beginning on the Effective Date.
      The Initial Demand Notice shall specify the intended method(s) of distribution
      of the Registrable Securities. The Company will notify all holders of the
      Purchase Options and/or Registrable Securities of the demand within ten days
      from the date of the receipt of any such Initial Demand Notice. Each holder
      of
      Registrable Securities who wishes to include all or a portion of such holder’s
      Registrable Securities in the Demand Registration (each such holder including
      shares of Registrable Securities in such registration, a “Demanding
      Holder”)
      shall
      so notify the Company within fifteen (15) days after the receipt by the holder
      of the notice from the Company. Upon any such request, the Demanding Holders
      shall be entitled to have their Registrable Securities included in the Demand
      Registration, subject to Section 5.1.4. 

     

    5.1.2  Effective
      Registration.
      A
      registration will not count as a Demand Registration until the registration
      statement filed with the Commission with respect to such Demand Registration
      has
      been declared effective and the Company has complied with all of its obligations
      under this Agreement with respect thereto; provided, however, that if, after
      such registration statement has been declared effective, the offering of
      Registrable Securities pursuant to a Demand Registration is interfered with
      by
      any stop order or injunction of the Commission or any other governmental agency
      or court, the registration statement with respect to such Demand Registration
      will be deemed not to have been declared effective, unless and until, (i) such
      stop order or injunction is removed, rescinded or otherwise terminated, and
      (ii)
      a majority-in-interest of the Demanding Holders thereafter elect to continue
      the
      offering. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    5.1.3  Underwritten
      Offering.
      If the
      Majority Holders so elect and such holders so advise the Company as part of
      the
      Initial Demand Notice, the offering of all or any portion of the Registrable
      Securities pursuant to such Demand Registration shall be in the form of one
      underwritten offering. All Demanding Holders proposing to distribute their
      securities through such underwriting shall enter into an underwriting agreement
      in customary form with the underwriter or underwriters selected for such
      underwriting by the Majority Holders. 

     

    5.1.4  Reduction
      of Offering.
      If the
      managing underwriter or underwriters for a Demand Registration that is to be
      an
      underwritten offering advises the Company and the Demanding Holders in writing
      that the dollar amount or number of shares of Registrable Securities which
      the
      Demanding Holders desire to sell pursuant to the underwritten offering, taken
      together with all other shares of Common Stock or other securities which the
      Company desires to sell and the shares of Common Stock, if any, as to which
      registration has been requested pursuant to written contractual piggy-back
      registration rights held by other stockholders of the Company who desire to
      sell, exceeds the maximum dollar amount or maximum number of shares that can
      be
      sold in such offering without adversely affecting the proposed offering price,
      the timing, the distribution method, or the probability of success of such
      offering (such maximum dollar amount or maximum number of shares, as applicable,
      the “Maximum
      Number of Shares”),
      then
      the Company shall include in such registration: (i) first, the Registrable
      Securities as to which Demand Registration has been requested by the Demanding
      Holders that want to participate in such underwritten offering (pro rata in
      accordance with the number of shares that each such Person has requested be
      included in such registration, regardless of the number of shares held by each
      such Person (such proportion is referred to herein as “Pro Rata”)) that can be
      sold without exceeding the Maximum Number of Shares; (ii) second, to the extent
      that the Maximum Number of Shares has not been reached under the foregoing
      clause (i), the shares of Common Stock or other securities that the Company
      desires to sell that can be sold without exceeding the Maximum Number of Shares;
      (iii) third, to the extent that the Maximum Number of Shares has not been
      reached under the foregoing clauses (i) and (ii), the shares of Common Stock
      as
      to which “piggy-back” registration has been requested by the holders thereof,
      Pro Rata, that can be sold without exceeding the Maximum Number of Shares;
      and
      (iv) fourth, to the extent that the Maximum Number of Shares have not been
      reached under the foregoing clauses (i), (ii), and (iii), the shares of Common
      Stock or other securities for the account of other persons that the Company
      is
      obligated to register pursuant to written contractual arrangements with such
      persons and that can be sold without exceeding the Maximum Number of Shares.
      

     

    5.1.5  Withdrawal.
      If a
      majority-in-interest of the Demanding Holders disapprove of the terms of any
      underwriting or are not entitled to include all of their Registrable Securities
      in any offering, such majority-in-interest of the Demanding Holders may elect
      to
      withdraw from such offering by giving written notice to the Company and the
      underwriter or underwriters of their request to withdraw prior to the
      effectiveness of the registration statement filed with the Commission with
      respect to such Demand Registration. If the majority-in-interest of the
      Demanding Holders withdraws from a proposed offering relating to a Demand
      Registration, then such registration shall not count as a Demand Registration
      provided for in Section 5.1, provided that the majority-in-interest of the
      Demanding Holders electing to so withdraw from the offering pays all reasonable
      costs and expenses incurred by the Company in connection with such withdrawn
      Demand Registration. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    5.1.6  Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of one legal counsel
      selected by the Holders to represent them in connection with the sale of the
      Registrable Securities, but the Holders shall pay any and all underwriting
      commissions. The Company agrees to use its reasonable best efforts to qualify
      or
      register the Registrable Securities in such states as are reasonably requested
      by the Majority Holder(s); provided, however, that in no event shall the Company
      be required to register the Registrable Securities in a state in which such
      registration would cause (i) the Company to be obligated to qualify to do
      business in such state, or would subject the Company to taxation as a foreign
      corporation doing business in such jurisdiction or (ii) the principal
      stockholders of the Company to be obligated to escrow their shares of capital
      stock of the Company. The Company shall use its reasonable best efforts to
      cause
      any registration statement or post-effective amendment filed pursuant to the
      demand rights granted under Section 5.1.1 to remain effective until the
      expiration of the Warrants in accordance with the terms and conditions of that
      certain Warrant Agreement, dated as of _______, 2008, between the Company and
      American Stock Transfer & Trust Company (the “Warrant
      Agreement”).

     

    5.1.7  Permitted
      Delays.
      The
      Company shall be entitled to postpone the filing of any registration statement
      under this Section 5.1, if (a) at any time prior to the filing of such
      registration statement the Company’s Board of Directors determines, in its good
      faith business judgment, that such registration and offering would materially
      and adversely affect any financing, acquisition, corporate reorganization,
      or
      other material transaction involving the Company, and (b) the Company delivers
      to the Demanding Holders written notice thereof within five (5) business days
      of
      the date of receipt by the Company of a request for Demand Registration;
      provided that all such periods of postponement may not exceed 45 days during
      any
      365 day period.

     

    5.2  “Piggy-Back”
      Registration.

     

    5.2.1  Piggy-Back
      Rights.
      If at
      any time during the seven year period commencing on the Effective Date the
      Company proposes to file a registration statement under the Securities Act
      with
      respect to an offering of equity securities, or securities or other obligations
      exercisable or exchangeable for, or convertible into, equity securities, by
      the
      Company for its own account or for stockholders of the Company for their account
      (or by the Company and by stockholders of the Company including, without
      limitation, pursuant to Section 5.1), other than a registration statement (i)
      filed in connection with any employee stock option or other benefit plan, (ii)
      for an exchange offer or offering of securities solely to the Company’s existing
      stockholders, (iii) for an offering of debt that is convertible into equity
      securities of the Company, (iv) on Form S-4 filed in connection with an
      acquisition transaction or (v) for a dividend reinvestment plan, then the
      Company shall (x) give written notice of such proposed filing to the holders
      of
      Registrable Securities as soon as practicable but in no event less than ten
      (10)
      days before the anticipated filing date, which notice shall describe the amount
      and type of securities to be included in such offering, the intended method(s)
      of distribution, and the name of the proposed managing underwriter or
      underwriters, if any, of the offering, and (y) offer to the holders of
      Registrable Securities in such notice the opportunity to register the sale
      of
      such number of shares of Registrable Securities as such holders may request
      in
      writing within five (5) days following receipt of such notice (a “Piggy-Back
      Registration”). The Company shall cause such Registrable Securities to be
      included in such registration and shall use reasonable best efforts to cause
      the
      managing underwriter or underwriters of a proposed underwritten offering to
      permit the Registrable Securities requested to be included in a Piggy-Back
      Registration on the same terms and conditions as any similar securities of
      the
      Company and to permit the sale or other disposition of such Registrable
      Securities in accordance with the intended method(s) of distribution thereof.
      All holders of Registrable Securities proposing to distribute their securities
      through a Piggy-Back Registration that involves an underwriter or underwriters
      shall enter into an underwriting agreement in customary form with the
      underwriter or underwriters selected for such Piggy-Back Registration.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    5.2.2  Reduction
      of Offering.
      If the
      managing underwriter or underwriters for a Piggy-Back Registration that is
      to be
      an underwritten offering advises the Company and the holders of Registrable
      Securities in writing that the dollar amount or number of shares of Common
      Stock
      which the Company desires to sell, taken together with shares of Common Stock,
      if any, as to which registration has been demanded pursuant to written
      contractual arrangements with persons other than the holders of Registrable
      Securities hereunder, the Registrable Securities as to which registration has
      been requested under this Section 5.2, and the shares of Common Stock, if any,
      as to which registration has been requested pursuant to the written contractual
      piggy-back registration rights of other stockholders of the Company, exceeds
      the
      Maximum Number of Shares, then the Company shall include in any such
      registration: 

     

    (a)  If
      the
      registration is undertaken for the Company’s account: (A) first, the shares of
      Common Stock or other securities that the Company desires to sell that can
      be
      sold without exceeding the Maximum Number of Shares; (B) second, to the extent
      that the Maximum Number of Shares has not been reached under the foregoing
      clause (A), the shares of Common Stock or other securities, if any, comprised
      of
      Registrable Securities, as to which registration has been requested pursuant
      to
      the applicable written contractual piggy-back registration rights of such
      security holders, Pro Rata, that can be sold without exceeding the Maximum
      Number of Shares; and (C) third, to the extent that the Maximum Number of Shares
      has not been reached under the foregoing clauses (A) and (B), the shares of
      Common Stock or other securities for the account of other persons that the
      Company is obligated to register pursuant to written contractual piggy-back
      registration rights with such persons and that can be sold without exceeding
      the
      Maximum Number of Shares; and

     

    (b)  If
      the
      registration is a “demand” registration undertaken at the demand of persons
      other than either the holders of Registrable Securities, (A) first, the shares
      of Common Stock or other securities for the account of the demanding persons
      that can be sold without exceeding the Maximum Number of Shares; (B) second,
      to
      the extent that the Maximum Number of Shares has not been reached under the
      foregoing clause (A), the shares of Common Stock or other securities that the
      Company desires to sell that can be sold without exceeding the Maximum Number
      of
      Shares; (C) third, to the extent that the Maximum Number of Shares has not
      been
      reached under the foregoing clauses (A) and (B), collectively the shares of
      Common Stock or other securities comprised of Registrable Securities, Pro Rata,
      as to which registration has been requested pursuant to the terms hereof and
      of
      the Registration Rights Agreement, as applicable, that can be sold without
      exceeding the Maximum Number of Shares; and (D) fourth, to the extent that
      the
      Maximum Number of Shares has not been reached under the foregoing clauses (A),
      (B) and (C), the shares of Common Stock or other securities for the account
      of
      other persons that the Company is obligated to register pursuant to written
      contractual arrangements with such persons, that can be sold without exceeding
      the Maximum Number of Shares. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    5.2.3  Withdrawal.
      Any
      holder of Registrable Securities may elect to withdraw such holder’s request for
      inclusion of Registrable Securities in any Piggy-Back Registration by giving
      written notice to the Company of such request to withdraw prior to the
      effectiveness of the registration statement. The Company (whether on its own
      determination or as the result of a withdrawal by persons making a demand
      pursuant to written contractual obligations) may withdraw a registration
      statement at any time prior to the effectiveness of the registration statement.
      Notwithstanding any such withdrawal, the Company shall pay all expenses incurred
      by the holders of Registrable Securities in connection with such Piggy-Back
      Registration as provided in Section 5.2.4. 

     

    5.2.4  Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of one legal counsel
      selected by the Holders to represent them in connection with the sale of the
      Registrable Securities, but the Holders shall pay any and all underwriting
      commissions related to the Registrable Securities. In the event of such a
      proposed registration, the Company shall furnish the then Holders of outstanding
      Registrable Securities with not less than fifteen days written notice prior
      to
      the proposed date of filing of such registration statement. Such notice to
      the
      Holders shall continue to be given for each applicable registration statement
      filed (during the period in which the Purchase Option is exercisable) by the
      Company until such time as all of the Registrable Securities have been
      registered and sold. The Holders of the Registrable Securities shall exercise
      the “piggy-back” rights provided for herein by giving written notice, within ten
      days of the receipt of the Company’s notice of its intention to file a
      registration statement. The Company shall use its reasonable best efforts to
      cause any registration statement filed pursuant to the above “piggyback” rights
      to remain effective for at least nine months from the date that the Holders
      of
      the Registrable Securities are first given the opportunity to sell all of such
      securities. 

     

    5.3  General
      Terms.

     

    5.3.1  Indemnification.
      The
      Company shall indemnify the Holder(s) of the Registrable Securities to be sold
      pursuant to any registration statement hereunder and each person, if any, who
      controls such Holders within the meaning of Section 15 of the Securities Act
      or
      Section 20(a) of the Securities Exchange Act of 1934, as amended (the
“Exchange
      Act”),
      and
      any of their respective heirs, successors, permitted assigns and transfers,
      and
      agents and representatives, against all loss, claim, damage, expense or
      liability (including all reasonable attorneys’ fees and other expenses
      reasonably incurred in investigating, preparing or defending against litigation,
      commenced or threatened, or any claim whatsoever whether arising out of any
      action between the underwriter and the Company or between the underwriter and
      any third party or otherwise) to which any of them may become subject under
      the
      Securities Act, the Exchange Act or otherwise, arising from such registration
      statement but only to the same extent and with the same effect as the provisions
      pursuant to which the Company has agreed to indemnify the underwriters contained
      in Section 8 of the Underwriting Agreement between the Company and the other
      underwriters named therein dated the Effective Date. The Holder(s) of the
      Registrable Securities to be sold pursuant to such registration statement,
      and
      their successors and assigns, shall severally, and not jointly, indemnify the
      Company, its officers and directors and each person, if any, who controls the
      Company within the meaning of Section 15 of the Securities Act or Section 20(a)
      of the Exchange Act, against all loss, claim, damage, expense or liability
      (including all reasonable attorneys’ fees and other expenses reasonably incurred
      in investigating, preparing or defending against any claim whatsoever) to which
      they may become subject under the Securities Act, the Exchange Act or otherwise,
      arising from information furnished by or on behalf of such Holders, or their
      successors or assigns, in writing, for specific inclusion in such registration
      statement to the same extent and with the same effect as the provisions
      contained in Section 8 of the Underwriting Agreement pursuant to which the
      underwriters have agreed to indemnify the Company.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    5.3.2  Exercise
      of Purchase Options.
      Nothing
      contained in this Purchase Option shall be construed as requiring the Holder(s)
      to exercise their Purchase Options or Warrants underlying such Purchase Options
      prior to or after the initial filing of any registration statement or the
      effectiveness thereof.

     

    5.3.3  Documents
      Delivered to Holders.
      The
      Company shall furnish the Holders participating in any of the foregoing
      offerings, a signed counterpart, addressed to the participating Holders, of
      (i)
      an opinion of counsel to the Company, dated the effective date of such
      registration statement (and, if such registration includes an underwritten
      public offering, an opinion dated the date of the closing under any underwriting
      agreement related thereto), and (ii) a “cold comfort” letter dated the effective
      date of such registration statement (and, if such registration includes an
      underwritten public offering, a letter dated the date of the closing under
      the
      underwriting agreement) signed by the independent public accountants who have
      issued a report on the Company’s financial statements included in such
      registration statement, in each case covering substantially the same matters
      with respect to such registration statement (and the prospectus included
      therein) and, in the case of such accountants’ letter, with respect to events
      subsequent to the date of such financial statements, as are customarily covered
      in opinions of issuer’s counsel and in accountants’ letters delivered to
      underwriters in underwritten public offerings of securities. The Company shall
      also deliver promptly to the Holders participating in the offering, the
      correspondence and memoranda described below and copies of all correspondence
      between the Commission and the Company, its counsel or auditors and all
      memoranda relating to discussions with the Commission or its staff with respect
      to the registration statement and permit the Holders, to do such investigation,
      upon reasonable advance notice, with respect to information contained in or
      omitted from the registration statement as it deems reasonably necessary to
      comply with applicable securities laws or rules of the Financial Industry
      Regulatory Authority, Inc. (“FINRA”).
      Such
      investigation shall include access to books, records and properties and
      opportunities to discuss the business of the Company with its officers and
      independent auditors, all to such reasonable extent and at such reasonable
      times
      and as often as the Holders, shall reasonably request. The Company shall not
      be
      required to disclose any confidential information or other records to the
      Holders, or to any other person, until and unless such persons shall have
      entered into reasonable confidentiality agreements (in form and substance
      reasonably satisfactory to the Company), with the Company with respect
      thereto.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    5.3.4  Underwriting
      Agreement.
      The
      Company shall enter into an underwriting agreement with the managing
      underwriter(s), if any, selected by any Holders whose Registrable Securities
      are
      being registered pursuant to this Section 5, which managing underwriter shall
      be
      reasonably acceptable to the Company. Such agreement shall be reasonably
      satisfactory in form and substance to the Company, each Holder and such managing
      underwriters, and shall contain such representations, warranties and covenants
      by the Company and such other terms as are customarily contained in agreements
      of that type used by the managing underwriter. The Holders shall be parties
      to
      any underwriting agreement relating to an underwritten sale of their Registrable
      Securities and may, at their option, require that any or all the
      representations, warranties and covenants of the Company to or for the benefit
      of such underwriters shall also be made to and for the benefit of such Holders.
      Such Holders shall not be required to make any representations or warranties
      to
      or agreements with the Company or the underwriters except as they may relate
      to
      such Holders and their intended methods of distribution. Such Holders, however,
      shall agree to such covenants and indemnification and contribution obligations
      for selling stockholders as are customarily contained in agreements of that
      type
      used by the managing underwriter. Further, such Holders shall execute
      appropriate custody agreements and otherwise cooperate fully in the preparation
      of the registration statement and other documents relating to any offering
      in
      which they include securities pursuant to this Section 5. Each Holder shall
      also
      furnish to the Company such information regarding itself, the Registrable
      Securities held by it, and the intended method of disposition of such securities
      as shall be reasonably required to effect the registration of the Registrable
      Securities.

     

    5.3.5  Rule
      144 Sale.
      Notwithstanding anything contained in this Section 5 to the contrary, the
      Company shall have no obligation pursuant to Sections 5.1 or 5.2 for the
      registration of Registrable Securities held by any Holder (i) where such Holder
      would then be entitled to sell under Rule 144 within any three month period
      (or
      such other period prescribed under Rule 144 as may be provided by amendment
      thereof) all of the Registrable Securities held by such Holder, and (ii) where
      the number of Registrable Securities held by such Holder is within the volume
      limitations under paragraph (e) of Rule 144 (calculated as if such Holder were
      an affiliate within the meaning of Rule 144).

     

    5.3.6  Supplemental
      Prospectus.
      Each
      Holder agrees, that upon receipt of any notice from the Company of the happening
      of any event as a result of which the prospectus included in the Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state a material fact required to be stated therein or necessary to
      make the statements therein not misleading in light of the circumstances then
      existing, such Holder will immediately discontinue disposition of Registrable
      Securities pursuant to the Registration Statement covering such Registrable
      Securities until such Holder’s receipt of the copies of a supplemental or
      amended prospectus, and, if so desired by the Company, such Holder shall deliver
      to the Company (at the expense of the Company) or destroy (and deliver to the
      Company a certificate of such destruction) all copies, other than permanent
      file
      copies then in such Holder’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    6.  Adjustments.

     

    6.1  Adjustments
      to Exercise Price and Number of Securities.
      The
      Exercise Price and the number of Units underlying the Purchase Option shall
      be
      subject to adjustment from time to time as hereinafter set forth:

     

    6.1.1  Stock
      Dividends - Split-Ups.
      If
      after the date hereof, and subject to the provisions of Section 6.3 below,
      the
      number of outstanding shares of Common Stock is increased by a stock dividend
      payable in shares of Common Stock or by a split-up of shares of Common Stock
      or
      other similar event, then, on the effective date thereof, the number of shares
      of Common Stock underlying each of the Units purchasable hereunder shall be
      increased in proportion to such increase in outstanding shares. In such case,
      the number of shares of Common Stock, and the exercise price applicable thereto,
      underlying the Warrants underlying each of the Units purchasable hereunder
      shall
      be adjusted in accordance with the terms of the Warrants. For example, if the
      Company declares a two-for-one stock dividend and at the time of such dividend
      this Purchase Option is for the purchase of one Unit at $12.00 per whole Unit
      (each Warrant underlying the Units is exercisable for $9.00 per share), upon
      effectiveness of the dividend, this Purchase Option will be adjusted to allow
      for the purchase of one Unit at $12.00 per Unit, each Unit entitling the holder
      to receive two shares of Common Stock and two Warrants (each Warrant exercisable
      for $4.50 per share).

     

    6.1.2  Extraordinary
      Dividends.
      If the
      Company, at any time while this Purchase Option is outstanding and unexpired,
      shall pay a dividend or make a distribution in cash, securities or other assets
      to the holders of Common Stock (or other shares of the Company’s capital stock
      receivable upon exercise of the Purchase Option), other than (i) as described
      in
      Sections 6.1.1, 6.1.3 or 6.1. 4, (ii) regular quarterly or other periodic
      dividends, (iii) in connection with the conversion rights of the holders of
      Common Stock upon consummation of the Company’s initial Business Combination or
      (iv) in connection with the Company’s liquidation and the distribution of its
      assets upon its failure to consummate a Business Combination (any such
      non-excluded event being referred to herein as an “Extraordinary Dividend”),
      then the Exercise Price shall be decreased, effective immediately after the
      effective date of such Extraordinary Dividend, by the amount of cash and/or
      the
      fair market value (as determined by the Company’s Board of Directors, in good
      faith) of any securities or other assets paid on each share of Common Stock
      in
      respect of such Extraordinary Dividend.

     

    6.1.3  Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 6.3, the number
      of outstanding shares of Common Stock is decreased by a consolidation,
      combination or reclassification of shares of Common Stock or other similar
      event, then, on the effective date thereof, the number of shares of Common
      Stock
      underlying each of the Units purchasable hereunder shall be decreased in
      proportion to such decrease in outstanding shares. In such case, the number
      of
      shares of Common Stock, and the exercise price applicable thereto, underlying
      the Warrants underlying each of the Units purchasable hereunder shall be
      adjusted in accordance with the terms of the Warrants.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    6.1.4  Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding shares of Common
      Stock other than a change covered by Section 6.1.1 or 6.1.3 hereof or that
      solely affects the par value of such shares of Common Stock, or in the case
      of
      any merger or consolidation of the Company with or into another corporation
      (other than a consolidation or merger in which the Company is the continuing
      corporation and that does not result in any reclassification or reorganization
      of the outstanding shares of Common Stock), or in the case of any sale or
      conveyance to another corporation or entity of the property of the Company
      as an
      entirety or substantially as an entirety in connection with which the Company
      is
      dissolved, the Holder of this Purchase Option shall have the right thereafter
      (until the expiration of the right of exercise of this Purchase Option) to
      receive upon the exercise hereof, for the same aggregate Exercise Price payable
      hereunder immediately prior to such event, the kind and amount of shares of
      stock or other securities or property (including cash) receivable upon such
      reclassification, reorganization, merger or consolidation, or upon a dissolution
      following any such sale or transfer, by a Holder of the number of shares of
      Common Stock of the Company obtainable upon exercise of this Purchase Option
      and
      the underlying Warrants immediately prior to such event; and if any
      reclassification also results in a change in shares of Common Stock covered
      by
      Section 6.1.1 or 6.1.3, then such adjustment shall be made pursuant to Sections
      6.1.1, 6.1.3 and this Section 6.1.4. The provisions of this Section 6.1.4 shall
      similarly apply to successive reclassifications, reorganizations, mergers or
      consolidations, sales or other transfers.

     

    6.1.5  Changes
      in Form of Purchase Option.
      This
      form of Purchase Option need not be changed because of any change pursuant
      to
      this Section, and Purchase Options issued after such change may state the same
      Exercise Price and the same number of Units as are stated in the Purchase
      Options initially issued pursuant to this Agreement. The acceptance by any
      Holder of the issuance of new Purchase Options reflecting a required or
      permissive change shall not be deemed to waive any rights to an adjustment
      occurring after the Commencement Date or the computation thereof.

     

    6.1.6  Adjustments
      of Warrants.
      To the
      extent the price of the Warrants is lowered pursuant to Section 3.1 of the
      Warrant Agreement, the price of the Warrants underlying the Purchase Option
      shall be reduced on identical terms (except that the Warrant Price (as defined
      in the Warrant Agreement) for the Warrants shall always remain 120% of the
      Warrant Price for the Public Warrants), subject to any limitations and
      conditions that may be imposed by FINRA pursuant to Rule 2710 of the National
      Association of Securities Dealers, Inc. (the “NASD
      Conduct Rules”)
      and
      any such reduction must remain in effect for at least twenty (20) business
      days.
      To the extent that the duration of the Warrants is extended pursuant to Section
      3.2 of the Warrant Agreement, the duration of the Warrants underlying the
      Purchase Option shall be extended on identical terms, subject to any limitations
      that may be imposed by FINRA pursuant to the NASD Conduct Rules. 

     

    6.2  Substitute
      Purchase Option.
      In case
      of any consolidation of the Company with, or merger of the Company with, or
      merger of the Company into, another corporation (other than a consolidation
      or
      merger which does not result in any reclassification or change of the
      outstanding Common Stock), the corporation formed by such consolidation or
      merger shall execute and deliver to the Holder a supplemental Purchase Option
      providing that the holder of each Purchase Option then outstanding or to be
      outstanding shall have the right thereafter (until the stated expiration of
      such
      Purchase Option) to receive, upon exercise of such Purchase Option, the kind
      and
      amount of shares of stock and other securities and property receivable upon
      such
      consolidation or merger, by a holder of the number of shares of Common Stock
      of
      the Company for which such Purchase Option might have been exercised immediately
      prior to such consolidation, merger, sale or transfer. Such supplemental
      Purchase Option shall provide for adjustments which shall be identical to the
      adjustments provided in Section 6. The above provision of this Section shall
      similarly apply to successive consolidations or mergers.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    6.3  Elimination
      of Fractional Interests.
      The
      Company shall not be required to issue certificates representing fractions
      of
      shares of Common Stock or Warrants upon the exercise of the Purchase Option,
      nor
      shall it be required to issue scrip or pay cash in lieu of any fractional
      interests, it being the intent of the parties that all fractional interests
      shall be eliminated by rounding any fraction up or down to the nearest whole
      number of Warrants, shares of Common Stock or other securities, properties
      or
      rights.

     

    7.  Reservation
      and Listing. 

     

    The
      Company shall at all times reserve and keep available out of its authorized
      shares of Common Stock, solely for the purpose of issuance upon exercise of
      the
      Purchase Options or the Warrants underlying the Purchase Option, such number
      of
      shares of Common Stock or other securities, properties or rights as shall be
      issuable upon the exercise thereof. The Company covenants and agrees that,
      upon
      exercise of the Purchase Options and payment of the Exercise Price therefor,
      all
      shares of Common Stock and other securities issuable upon such exercise shall
      be
      duly and validly issued, fully paid and non-assessable and not subject to
      preemptive rights of any stockholder. The Company further covenants and agrees
      that upon exercise of the Warrants underlying the Purchase Options and payment
      of the respective Warrant exercise price therefor, all shares of Common Stock
      and other securities issuable upon such exercise shall be duly and validly
      issued, fully paid and non-assessable and not subject to preemptive rights
      of
      any stockholder. As long as the Purchase Options shall be outstanding, the
      Company shall use its best efforts to cause all (i) Units and shares of Common
      Stock issuable upon exercise of the Purchase Options, (ii) Warrants issuable
      upon exercise of the Purchase Options and (iii) shares of Common Stock issuable
      upon exercise of the Warrants included in the Units issuable upon exercise
      of
      the Purchase Option to be listed (subject to official notice of issuance) on
      all
      securities exchanges (or, if applicable on the Nasdaq Global Market, Nasdaq
      Capital Market, FINRA OTC Bulletin Board or any successor trading market) on
      which the Units, the Common Stock or the Public Warrants may then be listed
      and/or quoted.

     

    8.  Certain
      Notice Requirements.

     

    8.1  Holder’s
      Right to Receive Notice.
      Nothing
      herein shall be construed as conferring upon the Holders the right to vote
      or
      consent as a stockholder for the election of directors or any other matter,
      or
      as having any rights whatsoever as a stockholder of the Company. If, however,
      at
      any time prior to the expiration of the Purchase Options and their exercise,
      any
      of the events described in Section 8.2 shall occur, then, in one or more of
      said
      events, the Company shall give written notice of such event at least fifteen
      days prior to the date fixed as a record date or the date of closing the
      transfer books for the determination of the stockholders entitled to such
      dividend, distribution, conversion or exchange of securities or subscription
      rights, or entitled to vote on such proposed dissolution, liquidation, winding
      up or sale. Such notice shall specify such record date or the date of the
      closing of the transfer books, as the case may be. Notwithstanding the
      foregoing, the Company shall deliver to each Holder a copy of each notice given
      to the other stockholders of the Company at the same time and in the same manner
      that such notice is given to the stockholders.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    8.2  Events
      Requiring Notice.
      The
      Company shall be required to give the notice described in this Section 8 upon
      one or more of the following events: (i) if the Company shall take a record
      of
      the holders of its shares of Common Stock for the purpose of entitling them
      to
      receive a dividend or distribution payable otherwise than in cash, or a cash
      dividend or distribution payable otherwise than out of retained earnings, as
      indicated by the accounting treatment of such dividend or distribution on the
      books of the Company, or (ii) the Company shall offer to all the holders of
      its
      Common Stock any additional shares of capital stock of the Company or securities
      convertible into or exchangeable for shares of capital stock of the Company,
      or
      any option, right or warrant to subscribe therefor, or (iii) a dissolution,
      liquidation or winding up of the Company (other than in connection with a
      consolidation or merger) or a sale of all or substantially all of its property,
      assets and business or a merger of the Company wherein the separate existence
      of
      the Company shall cease shall be proposed.

     

    8.3  Notice
      of Change in Exercise Price.
      The
      Company shall, promptly after an event requiring a change in the Exercise Price
      pursuant to Section 6 hereof, send notice to the Holders of such event and
      change (“Price
      Notice”).
      The
      Price Notice shall describe the event causing the change and the method of
      calculating the change in Exercise Price and shall be certified as being true
      and accurate by the Company’s President and Chief Financial
      Officer.

     

    8.4  Transmittal
      of Notices.
      All
      notices, requests, consents and other communications under this Purchase Option
      shall be in writing and shall be deemed to have been duly made when hand
      delivered, mailed by express mail or private courier service, or sent by
      facsimile transmission, with confirmation of receipt: (i) If to the registered
      Holder of the Purchase Option, to the address and/or fax number of such Holder
      as shown on the books of the Company, or (ii) if to the Company, to the
      following address or fax number or to such other address or and fax number
      as
      the Company may designate by notice to the Holders:

     

    SMG
      Indium Resources Ltd.

    41
      University Drive, Suite 400

    Newton,
      Pennsylvania 18940

    Attn:
      ________________________

    

    with
      a
      copy to:

    

    _____________________________

    _____________________________

    _____________________________

    Attn:
      ________________________

     

    9.  Miscellaneous.

     

    9.1  Amendments.
      The
      Company may from time to time supplement or amend this Purchase Option without
      the approval of any of the Holders in order to cure any ambiguity, to correct
      or
      supplement any provision contained herein that may be defective or inconsistent
      with any other provisions herein, or to make any other provisions in regard
      to
      matters or questions arising hereunder that the Company may deem necessary
      or
      desirable and that the Company, in the exercise of reasonable judgment,
      determines that it shall not adversely affect the interest of the Holders.
      All
      other modifications or amendments shall require the written consent of and
      be
      signed by the party against whom enforcement of the modification or amendment
      is
      sought.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    9.2  Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Purchase Option.

     

    9.3  Entire
      Agreement.
      This
      Purchase Option (together with the other agreements and documents being
      delivered pursuant to or in connection with this Purchase Option) constitutes
      the entire agreement of the parties hereto with respect to the subject matter
      hereof, and supersedes all prior agreements and understandings of the parties,
      oral and written, with respect to the subject matter hereof.

     

    9.4  Binding
      Effect.
      This
      Purchase Option shall inure solely to the benefit of and shall be binding upon,
      the Holder and the Company and their permitted assignees, respective successors,
      legal representative and assigns, and no other person shall have or be construed
      to have any legal or equitable right, remedy or claim under or in respect of
      or
      by virtue of this Purchase Option or any provisions herein
      contained.

     

    9.5  Governing
      Law; Submission to Jurisdiction.
      This
      Purchase Option shall be governed by and construed and enforced in accordance
      with the laws of the State of New York, without giving effect to conflict of
      laws. The Company agrees that any action, proceeding or claim against it arising
      out of, or relating in any way to this Purchase Option shall be brought and
      enforced in the courts of the State of New York located in New York County
      or of
      the United States District Court for the Southern District of New York, and
      irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
      The Company hereby waives any objection to such exclusive jurisdiction and
      that
      such courts represent an inconvenient forum. Any process or summons to be served
      upon the Company may be served by transmitting a copy thereof by registered
      or
      certified mail, return receipt requested, postage prepaid, addressed to it
      at
      the address set forth in Section 8 hereof. Such mailing shall be deemed personal
      service and shall be legal and binding upon the Company in any action,
      proceeding or claim. The Company and the Holder agree that the prevailing
      party(ies) in any such action shall be entitled to recover from the other
      party(ies) all of its reasonable attorneys’ fees and expenses relating to such
      action or proceeding and/or incurred in connection with the preparation
      therefor.

     

    9.6  Waiver,
      Etc.
      The
      failure of the Company or the Holder to at any time enforce any of the
      provisions of this Purchase Option shall not be deemed or construed to be a
      waiver of any such provision, nor to in any way affect the validity of this
      Purchase Option or any provision hereof or the right of the Company or any
      Holder to thereafter enforce each and every provision of this Purchase Option.
      No waiver of any breach, non-compliance or non-fulfillment of any of the
      provisions of this Purchase Option shall be effective unless set forth in a
      written instrument executed by the party or parties against whom or which
      enforcement of such waiver is sought; and no waiver of any such breach,
      non-compliance or non-fulfillment shall be construed or deemed to be a waiver
      of
      any other or subsequent breach, non-compliance or non-fulfillment.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    9.7  Execution
      in Counterparts.
      This
      Purchase Option may be executed in one or more counterparts, and by the
      different parties hereto in separate counterparts, each of which shall be deemed
      to be an original, but all of which taken together shall constitute one and
      the
      same agreement, and shall become effective when one or more counterparts has
      been signed by each of the parties hereto and delivered to each of the other
      parties hereto.

     

    9.8  Underlying
      Warrants.
      At any
      time after exercise by the Holder of this Purchase Option, the Holder may
      exchange his Warrants (with an initial exercise price of $6.60) for Public
      Warrants (with an initial exercise price of $6.00) upon payment to the Company
      of the difference between the exercise price of his Warrant and the exercise
      price of the Public Warrants. Any such Public Warrants and the Common Stock
      underlying such Public Warrants shall constitute Registrable
      Securities.

     

    

    [Remainder
      of Page Intentionally Left Blank]

     

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Purchase Option to be signed by its duly authorized
      officer as of the ___ day of _________, 2008.

     

    

    

    SMG
      INDIUM RESOURCES LTD.

    

    

    

    By:_________________________________

    Name:
      

    Title:
      

     

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    Form
      to be used to exercise Purchase Option

     

    SMG
      Indium Resources Ltd.

    41
      University Drive, Suite 400

    Newton,
      Pennsylvania 18940

    Attn:
      Chief Executive Officer

    

    Date:_________________,
      200__

    

    The
      undersigned hereby elects irrevocably to exercise all or a portion of the within
      Purchase Option and to purchase ____ Units of SMG Indium Resources Ltd. and
      hereby makes payment of $____________ (at the rate of $_________ per Unit)
      in
      payment of the Exercise Price pursuant thereto. Please issue the Common Stock
      and Warrants as to which this Purchase Option is exercised in accordance with
      the instructions given below.

     

    or

     

    The
      undersigned hereby elects irrevocably to convert its right to purchase _________
      Units purchasable under the within Purchase Option by surrender of the
      unexercised portion of the attached Purchase Option (with a “Value” of $_______
      based on a “Market Price” of $_______). Please issue the securities comprising
      the Units as to which this Purchase Option is exercised in accordance with
      the
      instructions given below.

     

    NOTICE:
      The signature to this exercise notice must correspond with the name as written
      upon the face of the Purchase Option in every particular, without alteration
      or
      any change whatever. 

     

    

    _______________________________________
      

    Signature(s)
      Guaranteed: 

    

    THE
      SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
      STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
      IN
      AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE
      17Ad-15). 

     

    

    INSTRUCTIONS
      FOR REGISTRATION OF SECURITIES 

    

    _______________________________________
      

    Name
      

    

    _______________________________________
      

    (Print
      in
      Block Letters) 

    _______________________________________
      

    

    _______________________________________
      

    Address
      

     

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Form
      to be used to assign Purchase Option

     

    ASSIGNMENT

    

    

    (To
      be
      executed by the registered Holder to effect a transfer of the within Purchase
      Option):

     

    FOR
      VALUE
      RECEIVED,___________________________________________ does hereby sell, assign
      and transfer unto______________________________________ the right to purchase
      __________ Units of SMG Indium Resources Ltd. (the “Company”)
      evidenced by the within Purchase Option and does hereby authorize the Company
      to
      transfer such right on the books of the Company.

     

    

    Dated:___________________,
      200_

    

    _________________________________
      

    Signature
      

    

    NOTICE:
      The signature to this assignment must correspond with the name as written upon
      the face of the Purchase Option in every particular, without alteration or
      any
      change whatever. 

     

    _________________________________
      

    Signature(s)
      Guaranteed: 

    

    

    THE
      SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS,
      STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
      IN
      AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE
      17Ad-15).

     

     

     

    
      
        
        

      

      
        20Unassociated Document

    EXHIBIT
      10.1

    

    MANAGEMENT
      SERVICES AGREEMENT

    

    This
      Management Services Agreement (this “Agreement”), by and between SMG Indium
      Resources Ltd., a Delaware corporation (the “Company”) and Specialty Metals
      Group Advisors LLC, a Delaware limited liability company (the “Manager”),
      entered into as of _____ __, 2008 and effective immediately upon the
      effectiveness of the initial public offering of the Company (the “IPO”).

    

    AGREEMENT

    

    In
      consideration of the mutual promises, covenants and conditions hereinafter
      set
      forth, the parties hereto mutually agree as follows:

    

    	1.  	
            Retention
              of Manager.
              

          

    

    	a.  	
            Duties
              of Manager.The
              Company hereby retains Manager to actively assist in the management
              of the
              Company’s operations. Manager accepts such appointment and agrees to
              discharge faithfully and diligently the duties set forth herein and
              implement the policies established by the Company’s board of directors
              (the “Board of Directors”), including, but not limited to, the
              following:

          

    	i.  	
            Use
              its best efforts to negotiate, arrange, and execute (subject to the
              requirements set forth on Schedule
              1),
              for and on the Company’s behalf, through industry-standard tenders, the
              purchase and stockpile of 99.97% purity or better indium over a prudent
              period of time. For purposes of this Section 1(a)(i), a prudent period
              of
              time shall mean the Manager utilizing at least 50% of the net proceeds
              of
              the IPO that have been allocated for purchase of the Company’s stockpile
              within 18 months after the closing of the IPO. The Manager, on the
              Company’s behalf, may enter into long-term and or short-term supply
              contracts with indium suppliers;

          

    	ii.  	
            Provide
              to the Board of Directors delivery and payment particulars with respect
              to
              each purchase and sale of indium;

          

    	iii.  	
            Use
              best efforts to negotiate and arrange for the transportation and storage
              of the Company’s indium stockpile at third-party facilities located in the
              United States, Canada and or the United Kingdom, in accordance with
              standard industry terms. The Manager is not required to retain a custodian
              on our behalf;

          

    	iv.  	
            Use
              best efforts to negotiate and arrange for indemnities or insurance
              on the
              Company’s indium stockpile, in accordance with standard industry practices
              by either the third-party storage facility’s insurance policy, a
              separately purchased insurance policy or both;

          

    	v.  	
            Conduct
              limited inspections of the indium delivered to the Company regarding
              the
              99.97% purity or better requirements, based on the
              following:

          

    	1.  	
            if
              indium is purchased from a supplier known to be a regular indium industry
              supplier, the Manager will not be responsible for conducting any chemical
              assays or other tests designed to verify that such indium meets the
              99.97%
              purity or better requirements as established by Regular Industry Practice.
              For the purposes of this Agreement, Regular Industry Practice means
              purchasing, storing or selling the metal indium containing a 99.97%
              purity
              level or better, delivered in the form of Ingots, which are individually
              wrapped in transparent polyethylene bags having a minimum thickness
              of
              0.004 inches;

          

    	2.  	
            if
              indium is purchased from a third-party supplier that is not known to
              be a
              regular indium industry supplier, the Manager, at its discretion, may
              hire, at the Company’s expense, an independent lab to perform random assay
              tests using glow-discharge mass spectrometry (“GDMS”) to verify the purity
              of the indium;

          

    	vi.  	
            At
              the Manager’s discretion, negotiate and arrange for the lending and/or
              sale of indium from the Company’s stockpile to: (1) generate cash to
              satisfy the Company’s operating expenses (2) facilitate the Manager’s
              ability to negotiate long-term and or short-term supply contracts with
              potential indium suppliers to acquire an indium stockpile (3) take
              advantage of periodic shortages in the indium market based on market
              conditions that the Manager deems favorable to the
              Company;

          

    	vii.  	
            Arrange,
              negotiate and execute (subject to the requirements set forth on
              Schedule
              1)
              any additional documents regarding the acquisition, storage, insuring
              and
              disposition of indium on the Company’s behalf, including, but not limited
              to, corporate, title, environmental, financial documents and other
              material agreements regarding the acquisition, storage, insuring and
              disposition of indium on the Company’s
              behalf;

          

    	viii.  	
            On
              a monthly basis, prepare a report (the “Monthly Report”) to be made
              available to the Company and the Board of Directors regarding the net
              market value (the “NMV”) of each share of the Company’s common stock. NMV
              shall be determined by multiplying the number of kilograms of indium
              held
              by or for the Company by the last spot price for indium published by
              Metal
              Bulletin posted on Bloomberg L.P. for the month, plus cash and any
              other
              Company assets, less any and all of the Company’s outstanding payables,
              indebtedness and any other liabilities, divided by the total number
              of
              outstanding common shares. The Manager acknowledges and understands
              that
              the Company will disclose to the stockholders of the Company such Monthly
              Reports prepared by the Manager regarding the Company’s NMV;
              

          

    	ix.  	
            Prepare,
              or cause to be prepared, any and all regulatory filing materials, reports
              to the Company’s stockholders, and other reports to the Board of Directors
              as may be reasonably requested from time to time;
              and

          

    	x.  	
            Furnish
              office facilities, service and supplies and generally oversee with
              the
              Management’s staff and independent contractors, management of the
              Company’s business and affairs. 

          

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    	b.  	
            Distribution
              of Unused Proceeds of IPO.
              If the Manager has not, within eighteen (18) months after the closing
              of
              the IPO, purchased indium in sufficient quantities to utilize at least
              50%
              of the net proceeds of the IPO that have been allocated for the purchase
              of the Company’s indium stockpile, the Board of Directors will have the
              discretion to cause the Company to distribute such unused proceeds
              to the
              stockholders of the Company as of a record date set by the Company.
              Such
              decision by the Board of Directors to distribute the unused proceeds
              to
              the stockholders will be based on numerous industry factors, including,
              but not limited to, whether or not the Manager has entered into any
              long-term supply contracts and any other factors affecting market
              conditions at that time. The Company is not required to, nor will it,
              place the unused cash set aside for the purchase of indium, into an
              escrow
              account. 

          

    

    	c.  	
            Duties
              of Company.
              

          

    	i.  	
            The
              Company shall pay all fees and expenses in accordance with the operation
              of the Company and services performed by the Manager pursuant to this
              Agreement, except where expressly assumed by the Manager.
              

          

    	ii.  	
            In
              the event the Manager elects to purchase indium on the Company’s behalf,
              pursuant to long-term or short-term contracts with an indium supplier,
              the
              Company shall have funds reserved to satisfy such purchase price and
              shall
              pay such purchase price. 

          

    	iii.  	
            In
              the event the Manager elects to lend or sell indium on the Company’s
              behalf, pursuant to long-term or short-term contracts with an indium
              customer, the Company shall have the required amount of indium reserved
              to
              satisfy the delivery commitments pursuant to such contracts.
              

          

    

    	2.  	
            Fees
              and Expenses.

          

    

    	a.  	
            Management
              Fee.
              In consideration for providing the services hereunder, Manager shall
              receive from the Company, and the Company shall pay to the Manager,
              regardless of its ability to successfully purchase and stockpile the
              metal
              indium, an annual fee equal to two (2.0%) percent based on the Company’s
              NMV. Such Management Fee shall be paid on a monthly basis. For purposes
              of
              this Section 2, the monthly Management Fee shall be determined by (x)
              multiplying the number of kilograms of indium held by the Company by
              the
              last spot price for indium published by Metal Bulletin posted on Bloomberg
              L.P. for the month, plus cash and any other Company assts, less any
              and
              all of the Company’s outstanding payables, indebtness and any other
              liabilities, divided by the total number of outstanding common shares
              (y)
              multiplied by two (2%) percent and (z) divided by twelve (12). Such
              Management Fee shall be determined on the 30th
              day of each month and payable on or before the 10th
              day following the end of such month. 

          

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
 

    	b.  	
            Expenses.
              The Company shall be responsible for the payment of any and all fees
              and
              expenses incurred by the Manager in connection with the services performed
              by the Manager on behalf of the Company. Except as otherwise agreed
              to by
              the Manager, the Company will expressly assume the following expenses:
              

          

    

    	i.  	
            brokerage
              and trading commissions;

          

    	ii.  	
            all
              fees associated with the performance of assay testing by independent
              laboratories; 

          

    	iii.  	
            warehouse
              or storage facilities costs, transportation costs, storage and
              transportation insurance fees, commission fees, security services costs,
              and other charges arising upon the holding, purchase, lending or sale
              of
              indium or other Company assets;

          

    	iv.  	
            office
              facility fees (including office rental, services and
              supplies);

          

    	v.  	
            directors
              and officers liability and key man insurance
              policies;

          

    	vi.  	
            legal
              and audit fees, including SEC related
              fees;

          

    	vii.  	
            corporate
              finance offering costs;

          

    	viii.  	
            fees
              payable for listings, the maintenance of listings and filings or other
              requirements of stock exchanges on which any of the Company’s securities
              are listed or quoted;

          

    	ix.  	
            cost
              associated with printing and mailing financial reports and materials
              for
              Stockholders’ meetings, valuations, reporting to Stockholders, securities
              regulatory filings and any other purposes required by law;
              

          

    	x.  	
            fees
              payable to any registrar and transfer agent of the common stock or
              other
              securities; 

          

    	xi.  	
            all
              taxes (including income, capital and sales taxes);
              and

          

    	xii.  	
            all
              other fees and expenses related to running and operating the Company,
              unless specifically excluded herein.

          

    

    	2.  	
            Term.
              Unless earlier terminated pursuant to Section 3 below, this Agreement
              shall remain in effect for a term of five (5) years, or ______ __,
              2013.
              This Agreement may be renewed on terms mutually acceptable to each
              party
              upon 90 days written notice prior to the expiration of such term.
              

          

    

    	3.  	
            Termination.

          

    

    	a.  	
            By
              Both Parties.
              This Agreement may be terminated by mutual consent of the parties upon
              90
              days written notice.

          

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    	b.  	
            By
              the Company For Cause.
              The Company may terminate this Agreement for Cause by action of the
              Board
              of Directors upon written notice to the Manager at any time. “Cause” shall
              mean:

          

    

    	i.  	
            If
              any member of the Manager (x) has been convicted of, or entered into
              a
              plea of guilty or nolo contendere for a felony or other serious crime
              or
              crime involving moral turpitude, or any knowing violation of any federal
              or state banking, securities or tax law or regulation (y) is determined
              by
              a court of law to have committed a willful act of embezzlement, fraud
              or
              dishonesty (with respect to the Company or any of its affiliates or
              any of
              their customers or suppliers) which may adversely affect the Company’s
              financial, market, reputation and other interests in any material manner;
              or

          

    

    	ii.  	
            Manager’s
              repeated material non-compliance or breach of this Agreement, in
              connection with Manager’s duties hereunder, after written notice thereof
              from the Board of Directors, and such material non-compliance has not
              been
              cured within 90 days after Manger’s receipt of notice thereof from the
              Board of Directors.

          

    

    Notwithstanding
      the foregoing, the Manager shall not be terminated for Cause pursuant to this
      Section 3(b) without (i) reasonable notice to Manager setting forth the reasons
      for the Company’s intention to terminate for Cause, and (ii) an opportunity for
      Manager, together with counsel, if any, to be heard before the Board of
      Directors. 

    

    	c.  	
            By
              Manager.
              

          

    

    	i.  	
            Manager
              may terminate this Agreement by written notice to the Board of Directors
              if (x) either Ailon Z. Grushkin, Richard Biele or Alan Benjamin is
              terminated as a director or executive officer position held with the
              Company, without the prior written consent of such respective individual,
              other than for Cause and (y) the Board of Directors has not, within
              30
              days of such removal, given notice of termination of this Agreement
              pursuant to Section 3(b).

          

    

    	ii.  	
            Manager
              may terminate this Agreement upon 30 days written notice to the Board
              of
              Directors if there is a Change in Control of the Company. For purposes
              of
              this Agreement, Change in Control shall mean (i) the acquisition of
              50% or
              more of the then outstanding voting stock of the Company in a single
              transaction or series of transactions, (ii) members of the incumbent
              Board
              of Directors cease to constitute a majority of the Board of Directors
              without the approval of the remaining members of the Board of Directors
              or
              (iii) reorganization, merger or consolidation where all or substantially
              all holders of the outstanding voting stock of the Company do not,
              after
              such reorganization, merger or consolidation, own more than 50% of
              the
              then outstanding voting stock of the resulting entity.
              

          

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    	d.  	
            Liquidation,
              Dissolution or Bankruptcy of the Company.
              This Agreement shall terminate upon the completion of the dissolution,
              liquidation, winding-up, bankruptcy, sale of substantially all of the
              assets, sale of the business or insolvency proceeding commenced by,
              or on
              behalf of, the Company. 

          

    

    	4.  	
            Effects
              of Termination.

          

    

    	a.  	
            Company
              Termination (other than for Cause); Manager Termination.
              If (A) Manager is terminated by the Company (other than for Cause)
              or (B)
              Manager terminates the Agreement pursuant to Section 3(c) then the
              Manager
              shall receive that portion of the Management Fee payable to the effective
              date of termination plus an additional amount equal to:
              

          

    

    	i.  	
            one
              year’s Management Fee calculated based upon (y) an average of the
              Company’s monthly NMV over the previous twelve (12) month period prior to
              termination (z) multiplied by twelve (12); or

          

    

    	ii.  	
            in
              the event that this Agreement is terminated prior to twelve (12) months
              of
              service, the Manager shall be entitled to an additional Management
              Fee
              calculated based upon (y) an average of the Company’s monthly NMV over the
              previous months of service (z) multiplied by the number of months of
              service.

          

    

    	b.  	
            Company
              Termination for Cause.
              If Manager is terminated by the Company for Cause pursuant to Section
              3(b), no further payments of the Management Fee shall be paid after
              the
              effectiveness of termination under Section 3(b) is given by the Board
              of
              Directors to the Manager.

          

    

    	5.  	
            Non-Competition;
              Confidentiality; Disclosure of Information.

          

    

    	a.  	
            Non-Competition
              and Non-Solicitation.
              Without the prior written consent of the Board of Directors, Manager
              shall
              not, and they shall cause their, affiliates to not, directly or
              indirectly, so long as the Manager is retained hereunder and until
              the
              one-year anniversary of any termination of this
              Agreement:

          

    

    	i.  	
            interfere
              with, disrupt or attempt to disrupt any then existing relationship,
              contractual or otherwise, between the Company or its subsidiaries and
              any
              of their customers, suppliers, clients, executives, employees, vendors,
              licensees or business relations or other persons with whom the Company
              or
              its subsidiaries deal or in any way disparage the Company to any of
              the
              foregoing; or

          

    

    	ii.  	
            solicit
              for employment, attempt to employ or assist any other entity in employing
              or soliciting for employment any employee or executive who at the
              termination date was employed by the Company or its subsidiaries.
              

          

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    	b.  	
            Intellectual
              Property Rights.
              Manager hereby acknowledges that any material produced by or upon the
              instructions of Manger during the term that benefits the Company shall
              be
              “works for hire” to the extent applicable and belong to the Company to the
              extent such materials are in the nature of inventions or other items
              of
              intellectual property. Manager agrees to take any and all steps reasonably
              requested by the Company to ensure that title thereto shall be fully
              vested in the Company and agrees to make no claim to personal ownership
              thereof. 

          

    

    	c.  	
            Confidentiality.
              During the term of Manager’s retention hereunder and thereafter, and
              except as required by any court, supervisory authority or administrative
              agency or as may, in the opinion of Manger’s counsel, be otherwise
              required by applicable law, Manager shall not, without the consent
              of the
              Board of Directors or a person authorized thereby, disclose to any
              person,
              other than a then-current employee of the Company or a person to whom
              disclosure is reasonably necessary or appropriate in connection with
              the
              performance by them of the obligations hereunder, any confidential
              or
              proprietary information of the Company, including any vendor from which
              the Company purchases, or potentially purchases, indium from, and
              customers, or potential customers, in which the Company may sell indium
              to, obtained by them during the term of this Agreement, unless such
              information has become a matter of public knowledge at the time of
              such
              disclosure. 

          

    

    	6.  	
            Indemnification.
              

          

    

    	a.  	
            The
              Company agrees to indemnify Manager and hold Manager harmless against
              any
              and all losses, claims, damages, liabilities and costs (and all actions
              in
              respect thereof and any legal or other expenses in giving testimony
              or
              furnishing documents in response to a subpoena or otherwise), including,
              without limitation, the costs of investigating, preparing or defending
              any
              such action or claim, whether or not in connection with litigation
              in
              which Manager is a party, as and when incurred, directly or indirectly
              caused by, relating to, based upon or arising out of any work performed
              by
              Manager in connection with this Agreement to the full extent permitted
              by
              the New York Business Corporation Law and by the Certificate of
              Incorporation and By-Laws of the Company, as may be amended from time
              to
              time.

          

    

    	b.  	
            The
              indemnification provision of this Section 7 shall be in addition to
              any
              obligations which the Company may otherwise have to
              Manager.

          

    

    	c.  	
            The
              Company agrees to indemnify Manager and hold Manager harmless against
              any
              and all loss of opportunity whereby the value of any of the Company’s
              assets or value of any particular indium, monetary or currency investment
              could have been increased, or any decline in value of any of the Company’s
              assets unless such decline is the result of the Manager’s gross
              negligence, willful misconduct or willful failure to comply with express
              directions given by resolution of the Board of Directors or the Company’s
              stockholders.

          

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
 

    	d.  	
            If
              any action, proceeding or investigation is commenced as to which Manager
              proposes to demand such indemnification, Manager shall notify the Company
              with reasonable promptness. Manager shall have the right to retain
              counsel
              of Management’s own choice to represent Manager, and the Company shall pay
              all reasonable fees and expenses of such counsel; and such counsel
              shall,
              to the fullest extent consistent with such counsel’s professional
              responsibilities, cooperate with the Company and any counsel designated
              by
              the Company. The Company shall be liable for any settlement of any
              claim
              against Manager made with the Company’s written consent, which consent
              shall not be unreasonably withheld or delayed, to the fullest extent
              permitted by the New York Business Corporation Law and the Certificate
              of
              Incorporation and By-Laws of the Corporation, as may be amended from
              time
              to time. No such settlement of any claim shall be made by Manager without
              the written consent of the Company, which consent shall not be
              unreasonably withheld or delayed. 

          

    

    	7.  	
            Notices.
              Notices delivered pursuant to this Agreement shall be in writing, and
              shall be deemed to have been duly given when (a) delivered by hand;
              (b)
              sent by facsimile (with receipt confirmed), provided that a copy is
              promptly thereafter mailed by first-class prepaid certified mail, return
              receipt requested; (c) received by the addressee, if sent with delivery
              receipt requested by Express Mail, Federal Express, other express delivery
              service or first-class prepaid certified mail, in each case to the
              appropriate addresses and facsimile numbers set forth below, or to
              such
              other address(es) or facsimile number(s) as a party may designate as
              to
              itself by notice to the other party.

          

    

    If
      to the
      Company:

    

    SMG
      Indium Resources Ltd.

    176
      LaGuardia Ave.

    Staten
      Island, New York 10314

    Attention:
      Ailon Z. Grushkin

    Facsimile:
      (718) 477-4344

    

    If
      to the
      Manger:

    

    Specialty
      Metals Group Advisors LLC

    176
      LaGuardia Ave.

    Staten
      Island, New York 10314

    Attention:
      Ailon Z. Grushkin

    Facsimile:
      (718) 477-4344

    

    In
      each
      case, with a copy to:

    

    Ellenoff,
      Grossman & Schole LLP

    150
      East
      42nd
      Street

    New
      York,
      NY 10017

    Attention:
      Barry Grossman

    Facsimile:
      (212) 370-7889

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
 

    	8.  	
            Governing
              Law.
              This Agreement shall be governed by the laws of the State of New
              York.

          

    

    	9.  	
            Waiver
              of Jury Trial.
              EACH PARTY TO THIS AGREEMENT UNCONDITIONALLY WAIVES ITS RIGHTS TO A
              JURY
              TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF,
              DIRECTLY OR INDIRECTLY, THIS AGREEMENT, ANY RELATED DOCUMENTS, ANY
              DEALINGS BETWEEN OR AMONG THEM RELAING TO THE SUBJECT MATTER OF THIS
              AGREEMENT.

          

    

    	10.  	
            Assignability.
              The Company nor the Manager may not assign this Agreement without the
              prior written consent of the respective party. Except as provided in
              Section 1 of this Agreement, in the event that the Manger elects to
              delegate any of its duties or obligations under this Agreement to any
              third-party or independent contractor, the Manager shall do so at the
              Manager’s own expense. 

          

    

    	11.  	
            Enforcement,
              Separability.
              It is the desire and intent of the parties hereto that the provisions
              of
              this Agreement shall be enforced to the fullest extent permissible
              under
              the laws and public policies applied in each jurisdiction in which
              enforcement is sought. Accordingly, in case any provision of this
              Agreement shall be declared invalid, illegal or unenforceable, the
              validity, legality and enforceability of the remaining provisions shall
              not in any way be affected or impaired thereby. To the extent that
              a
              restriction contained in this Agreement is more restrictive than permitted
              by the laws of any jurisdiction where this Agreement may be subject
              to
              review and interpretation, the terms of such restriction, for the purpose
              only of the operation of such restriction in such jurisdiction, shall
              be
              the maximum restriction allowed by the laws of such jurisdiction and
              such
              restriction shall be deemed to have been revised accordingly herein.
              

          

    

    	12.  	
            Titles
              and Subtitles.
              The titles of the paragraphs and subparagraphs of this Agreement are
              for
              convenience of reference only and are not to be considered in construing
              this Agreement.

          

    

    	13.  	
            Counterparts.
              This Agreement may be executed in any number of counterparts, each
              of
              which shall be an original, but all of which together shall constitute
              one
              instrument. This Agreement and each other agreement or instrument entered
              into in connection herewith or therewith or contemplated hereby or
              thereby, and any amendments hereto or thereto, to the extent signed
              and
              delivered by means of a electronically confirmed facsimile transmission,
              shall be treated in all manners and respects as an original agreement
              or
              instrument and shall be considered to have the same binding legal effect
              as if it were the original signed version thereof delivered in person.
              

          

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    	14.  	
            No
              Strict Construction.
              The parties hereto have participated jointly in the negotiating and
              drafting of this Agreement. In the event an ambiguity or question of
              intent or interpretation arises, this Agreement shall be construed
              as if
              drafted jointly by the parties hereto, an no presumption or burden
              of
              proof shall arise favoring or disfavoring any party by virtue of the
              authorship of any of the provisions of this Agreement.
              

          

    

    	15.  	
            Miscellaneous.
              This Agreement contains the entire agreement of the parties relating
              to
              the subject matter hereof and supersedes any other agreements entered
              into
              between the Manager and the Company prior to the date of this Agreement
              relating thereto. This Agreement may not be altered, modified, amended
              or
              terminated except by a written instrument signed by each of the parties
              hereto. No term or provision hereof shall be deemed waived and no breach
              consented to or excused, unless such waiver, consent of excuse shall
              be in
              writing and signed by the party claimed to have waived, consented or
              excused. A consent, waiver or excuse of any breach shall not constitute
              a
              consent to, waiver of, or excuse of any other or subsequent breach
              whether
              or not of the same kind of the original breach.

          

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement as of the day and year first above
      written.

    

    SMG
      INDIUM RESOURCES LTD.

    

    By:_________________________

    Name:
      Ailon Z. Grushkin

    Title:
      President

    

    SPECIALTY
      METALS GROUP 

    ADVISORS
      LLC 

     

    By:_________________________

    Name:
      Ailon Z. Grushkin

    Title:
      Manager

    

    Acknowledged
      and Agreed:

    

    _____________________

    Richard
      Biele

    

    _____________________

    Alan
      Benjamin

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
      1

    

    

    

    

    Unionmet
      (Singapore) Limited:

    

    1. So
      long
      as members of the Manager holds an interest in Unionmet (Singapore) Limited,
      any
      and all proposed transactions to be executed between the Company and Unionmet
      (Singapore) Limited must be reviewed and approved in the following
      manner:

    

    	a.  	
            Alan
              Benjamin must review any proposed transactions on behalf of the Manager,
              determine whether to approve such proposed transactions, and, if approved
              by Mr. Benjamin, recommend such proposed transactions to the Unionmet
              (Singapore) Limited Negotiation and Agreement Committee of the Company
              for
              their approval by the Company.

          

    	b.  	
            The
              Unionmet Singapore Limited Negotiation and Agreement Committee, which
              is
              comprised of three independent members of the Board of Directors of
              the
              Company, will review the recommended proposed transactions from the
              Manager, and determine whether to approve such transactions.
              

          

    

    Once
      the
      proposed transactions have been approved in accordance with sections (a) and
      (b)
      above, the Manager may execute any and all documents regarding such proposed
      transactions with Unionmet.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]