Document:

Exhibit 4.1

WARRANT
CLARIFICATION AGREEMENT

This Warrant
Clarification Agreement (this “Agreement”), dated October 20, 2006, is to the
Warrant Agreement, dated as of November 18, 2004 (the “Warrant Agreement”), by
and between China Unistone Acquisition Corporation, a Delaware corporation (“Company”),
and Continental Stock Transfer & Trust Company, a New York corporation (“Warrant
Agent”).

WHEREAS,
Section 3.3.2 of the Warrant Agreement provides that Company shall not be obligated to deliver any securities pursuant to the
exercise of a warrant unless a registration statement under the Securities Act
of 1933, as amended (“Securities Act”), with respect to the common stock is
effective.

WHEREAS,
in furtherance of the foregoing, the Company’s final prospectus, dated November
18, 2004, indicated (i) that no warrant would be exercisable unless at the time
of exercise a prospectus relating to the common stock issuable upon exercise of
the warrant is current and the common stock has been registered under the
Securities Act or qualified or deemed to be exempt under the securities laws of
the state of residence of the holder of the warrant and (ii) that the warrant
may be deprived of any value and the market for the warrant may be limited if
the prospectus relating to the common stock issuable upon the exercise of the
warrant is not current or if the common stock is not qualified or exempt from
qualification in the jurisdictions in which the holder of the warrant resides.

WHEREAS,
as a result of certain questions that have arisen regarding the accounting
treatment applicable to the warrants, the parties hereto deem it necessary and
desirable to amend the Warrant Agreement to clarify that the registered holders
do not have the right to receive a net cash settlement in the event the Company
does not maintain a current prospectus relating to the common stock issuable
upon exercise of the warrants at the time such warrants are exercisable.

NOW,
THEREFORE, in consideration of the mutual agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the parties hereto agree to amend the Warrant Agreement as set forth
herein.

1.             Warrant Agreement.   The Warrant Agreement is hereby clarified by
adding the following sentence as the penultimate sentence of Section 3.3.2:

“Furthermore, if the
Company is unable to deliver any securities pursuant to the exercise of a
Warrant as a result of the foregoing situations, the Company will have no
obligation to pay such registered holder any cash or other consideration or
otherwise “net cash settle” the Warrant.”

2.             Miscellaneous.

(a)           Governing Law.  The
validity, interpretation, and performance of this Agreement and of the Warrants
shall be governed in all respects by the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the
application of the substantive laws of another jurisdiction.  The Company hereby agrees that any
action, proceeding or claim against it arising out of or relating in any way to
this Agreement shall be brought and enforced in the courts of the State of New
York or 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 such 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
9.2 of the Warrant Agreement.  Such
mailing shall be deemed personal service and shall be legal and binding upon
the Company in any action, proceeding or claim.

(b)           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and to their respective heirs, legal
representatives, successors and assigns.

(c)           Entire Agreement.  This Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter
thereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them.  Except as set forth in this Agreement,
provisions of the Warrant Agreement which are not inconsistent with this
Agreement shall remain in full force and effect.  This Agreement may be executed in
counterparts.

(d)           Severability. This Agreement
shall be deemed severable, and the invalidity or unenforceability of any term
or provision hereof shall not affect the validity or enforceability of this
Agreement or of any other term or provision hereof.  Furthermore, in lieu of any such invalid or
unenforceable term or provision, the parties hereto intend that there shall be
added as part of this Agreement a provision as similar in terms to such invalid
or unenforceable provision as may be possible and be valid and enforceable.

 

IN WITNESS
WHEREOF, the parties hereto have executed this Warrant Clarification Agreement
as of the date first written above.

	
  

  	
  CHINA UNISTONE ACQUISTION CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Chih T. Cheung

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Chih T. Cheung, Chairman

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Frank DiPaolo

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Frank DiPaolo, Chief Financial OfficerExhibit
4.2

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) EARLYBIRDCAPITAL, INC. (“EBC”) OR AN UNDERWRITER OR A SELECTED DEALER
IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF EBC
OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE
LATER OF THE CONSUMMATION BY CHINA UNISTONE ACQUISITION CORPORATION (“COMPANY”)
OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION OR OTHER SIMILAR
BUSINESS COMBINATION (“BUSINESS COMBINATION”) (AS DESCRIBED MORE FULLY IN THE
COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)) OR NOVEMBER 18, 2005.  VOID AFTER 5:00 P.M. EASTERN TIME, NOVEMBER
17, 2009.

UNIT PURCHASE OPTION

For the Purchase of

__________ Units

of

CHINA UNISTONE ACQUISITION CORPORATION

1.             Purchase Option.

THIS
CERTIFIES THAT, in consideration of $_________ duly paid by or on behalf of
________ (“Holder”), as registered owner of this Purchase Option, to China
Unistone Acquisition Corporation (“Company”), Holder is entitled, at any time
or from time to time upon the later of the consummation of a Business
Combination or November 18, 2005 (“Commencement Date”), and at or before 5:00
p.m., Eastern Time, November 17, 2009 (“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 $.0001 per share (“Common Stock”),
and two warrants (“Warrant(s)”) 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 (“Offering”).  Each Warrant is the same 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 Warrants have an
exercise price of $6.25 per share.  If
the Expiration Date is a day on which banking institutions are authorized by
law to close, 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 $9.90 per Unit so purchased; provided, 

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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 or the adjusted exercise price, 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.,
Eastern 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 (“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.”

2.3           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 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).  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 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) the Current Market Price of the
Common Stock multiplied by the number of shares of Common Stock underlying the
Warrants and the Common Stock issuable upon exercise of one Unit.  The “Current Market Price” of a share of Common
Stock shall mean (i) if the Common Stock is listed on a national securities
exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or
NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the
last sale price of the Common Stock in the principal trading market for the
Common Stock as reported by the exchange, Nasdaq or the NASD, as the case may
be; (ii) if the Common Stock is not listed on a national securities 

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exchange or quoted
on the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC Bulletin
Board (or successor such as the Bulletin Board Exchange), but is traded in the
residual over-the-counter market, the closing bid price for the Common Stock 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.

2.3.2        Mechanics of
Cashless Exercise.  The 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           No Obligation to
Net Cash Settle. Notwithstanding anything to the contrary contained in this
Purchase Option, if the Company is unable to deliver any securities pursuant to
the exercise of this Purchase Option as a result of its inability to satisfy
its registration requirements set forth in Section 5 hereof, the Company will
have no obligation to pay such registered holder any cash or otherwise “net
cash settle” the Purchase Option or the Warrants underlying the Purchase
Option.

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 this Purchase Option for a period
of one year following the Effective Date to anyone other than (i) EBC or an
underwriter or a selected dealer in connection with the Offering, or (ii) a
bona fide officer or partner of EBC or of any such underwriter or selected
dealer.  On and after the second
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 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 Graubard Miller 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
Securities and Exchange Commission and compliance with applicable state
securities law has been established.

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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
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.

4.2           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 51% of the Purchase Options and/or
the underlying Units and/or the underlying securities (“Majority Holders”),
agrees to register on one occasion, all or any portion 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 or a post-effective amendment to the
Registration Statement covering the Registrable Securities within sixty days
after receipt of the Initial Demand Notice and use its 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
Company covenants and agrees to give written notice of its receipt of any
Initial Demand Notice by any Holder(s) to all other registered Holders of the
Purchase Options and/or the Registrable Securi­ties within ten days from the
date of the receipt of any such Initial Demand Notice.

5.1.2        Terms.  The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
any 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
cause any registration state­ment or post-effective amendment filed pursuant to
the demand rights granted under Section 5.1.1 to remain effective for a period
of nine consecutive months from the effective date of such registration
statement or post-effective amendment.

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5.2           “Piggy-Back”
Registration.

5.2.1        Grant of Right.  In addition to the demand right of
registration, the Holders of the Purchase Options shall have the right for a
period of seven years commencing on the Effective Date, to include the
Registrable Securities as part of any other registration of securities filed by
the Company (other than in connection with a transaction contemplated by Rule
145(a) promulgated under the Act or pursuant to Form S-8); provided, however,
that if, in the written opinion of the Company’s managing underwriter or
underwriters, if any, for such offering, the inclusion of the Registrable
Securities, when added to the securities being registered by the Company or the
selling stockholder(s), will exceed the maximum amount of the Company’s
securities which can be marketed (i) at a price reasonably related to
their then current market value, and (ii) without materially and adversely
affecting the entire offering, then the Company will still be required to
include the Registrable Securities, but may require the Holders to agree, in
writing, to delay the sale of all or any portion of the Registrable Securities
for a period of 90 days from the effective date of the offering, provided,
further, that if the sale of any Registrable Securities is so delayed, then the
number of securities to be sold by all stockholders in such public offering
during such 90 day period shall be apportioned pro  rata among all
such selling stockholders, including all holders of the Registrable Securities,
according to the total amount of securities of the Company owned by said
selling stockholders, including all holders of the Registrable Securities.

5.2.2        Terms.  The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
any 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 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           Intentionally
Omitted.

5.4           General Terms.

5.4.1        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 Act or
Section 20(a) of the Securities Exchange Act of 1934, as amended (“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 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 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 

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Section 5 of the Underwriting Agreement between the Company, EBC 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 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 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 5 of the
Underwriting Agreement pursuant to which the underwriters have agreed to
indemnify the Company.

5.4.2        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.

5.4.3        Documents
Delivered to Holders.  The Company
shall furnish EBC, as representative of 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 EBC, as representative of 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 EBC, as representative of 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 National Association of Securi­ties Dealers, Inc. (“NASD”).  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 EBC, as representative of
the Holders, shall reasonably request. 
The Company shall not be required to disclose any confidential
information or other records to EBC, as representative of 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.

5.4.4        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

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 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.

5.4.5        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 then 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).

5.4.6        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.

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 6.4 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, 

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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 $6.60 per whole Unit (each Warrant
underlying the Units is exercisable for $5.00 per share), upon effectiveness of
the dividend, this Purchase Option will be adjusted to allow for the purchase
of one Unit at $6.60 per Unit, each Unit entitling the holder to receive two
shares of Common Stock and four Warrants (each Warrant exercisable for $2.50
per share).

6.1.2        Aggregation of
Shares.  If after the date hereof,
and subject to the provisions of Section 6.4, 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.

6.1.3        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
6.1.2 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 6.1.2, then such adjustment
shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section
6.1.3.  The provisions of this Section 6.1.3
shall similarly apply to successive reclassifications, reorganizations, mergers
or consolidations, sales or other transfers.

6.1.4        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.

6.2           [Intentionally
Omitted]

6.3           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 

 8
 

 
  

 

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.

6.4           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 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, (iii) Warrants issuable upon exercise of the Purchase Options
and (iv) 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 National
Market, SmallCap Market, OTC Bulletin Board or any successor trading market) on
which the Units, the Common Stock or the Public Warrants issued to the public
in connection herewith 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.

 9
 

 
  

 

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 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 same
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, or
mailed by express mail or pri­vate courier service:  (i) If to the registered Holder of the
Purchase Option, to the address of such Holder as shown on the books of the
Company, or (ii) if to the Company, to the following address or to such other
address as the Company may designate by notice to the Holders:

China Unistone
Acquisition Corporation

105 West 13th
Street, Suite 7A

New York, New York
10011

Attn:       Chih T. Cheung, Chairman

9.             Miscellaneous.

9.1           Amendments.  The Company and EBC 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 and EBC may deem necessary or desirable
and that the Company and EBC deem 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.

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.

10.           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.

 10
 

 
  

 

10.1         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.

10.2         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 hereby 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 or of the United States of America 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.

10.3         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.

10.4         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.

10.5                           Exchange Agreement.  As a condition of the Holder’s receipt and
acceptance of this Purchase Option, Holder agrees that, at any time prior to
the complete exercise of this Purchase Option by Holder, if the Company and EBC
enter into an agreement (“Exchange Agreement”) pursuant to which they agree
that all outstanding Purchase Options will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a
party to the Exchange Agreement.

10.6         Underlying
Warrants. At any time after exercise by the Holder of this Purchase Option,
the Holder may exchange his Warrants (with a $6.25 exercise price) for Public
Warrants (with a $5.00 exercise price) upon payment to the Company of the
difference between the exercise price of his Warrant and the exercise price of
the Public Warrants.

 11
 

 
  

 

IN WITNESS WHEREOF, the Company has caused this Pur­chase Option to be
signed by its duly authorized officer as of the 20th day of October, 2006.

	
  

  	
   

  	
  CHINA UNISTONE ACQUISITION CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Chih T. Cheung

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Chih T. Cheung

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Chairman

  

 

 12
 

 
  

 

Form to be used to exercise Purchase Option:

China Unistone Acquisition Corporation

105 West 13th Street, Suite 7A

New York, New York 10011

Date:_________________, 200__

The undersigned hereby elects irrevocably to exercise all or a portion
of the within Purchase Option and to purchase ____ Units of China Unistone
Acquisition Corporation 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”
based 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.

	
   

  	
  

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed

  

 

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

	
  Name

  	
   

  
	
  (Print in Block Letters)

  
	
   

  
	
  Address

  	
   

  

 

NOTICE: The signature to this form must correspond
with the name as written upon the face of the within Purchase Option in every
particular without alter­ation or enlargement or any change whatsoever, and
must be guar­anteed by a bank, other than a savings bank, or by a trust company
or by a firm having membership on a registered national securities exchange.

 13
 

 
  

 

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 China Unistone Acquisition
Corporation (“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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed

  

 

NOTICE: The signature to this form must correspond
with the name as written upon the face of the within Purchase Option in every
particular without alter­ation or enlargement or any change whatsoever, and
must be guar­anteed by a bank, other than a savings bank, or by a trust company
or by a firm having membership on a registered national securities exchange.

 

 14

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