Document:

PATIENT
SAFETY TECHNOLOGIES, INC.

     

    INDEMNIFICATION
AGREEMENT

     

    This
Indemnification Agreement (this “Agreement”) is effective as of
June 1, 2010 by and between Patient Safety Technologies, Inc., a Delaware
corporation (the “Company”), and the indemnitees
listed on the signature pages hereto (individually, as “Indemnitee,” and,
collectively, the “Indemnitees”).

     

    A.           The
Company and Indemnitees recognize the substantial increase in corporate
litigation in general, which subjects directors, officers, employees, agents and
fiduciaries to expensive litigation risks at the same time as the availability
and coverage of liability insurance has been severely limited.

     

    B.           The
Indemnitees do not regard the current protection available as adequate under the
present circumstances, and Indemnitees and other directors, officers, employees,
agents and fiduciaries of the Company may not be willing to serve in such
capacities without additional protection.

     

    C.           The
Company (i) desires to attract and retain the involvement of highly qualified
individuals and entities, such as Indemnitees, to serve the Company and, in
part, in order to induce each Indemnitee to be involved with the Company and
(ii) wishes to provide for the indemnification and advancing of expenses to each
Indemnitee to the maximum extent permitted by law.

     

    D.           Indemnitees
include one or more directors of the Company who are representatives of Fund
Indemnitors (as defined in Section 4) (individually, as “Director” and, collectively,
the “Directors”).  Each
such Director who is a representative of Fund Indemnitor (as defined in Section
4) may have certain rights to indemnification and/or insurance provided by such
Fund Indemnitor and/or certain of its affiliates which the parties hereto intend
to be secondary to the primary obligation of the Company to indemnify each such
Director as provided herein, with the Company’s acknowledgement and agreement to
the foregoing being a material condition to this Agreement.

     

    E.           In
view of the considerations set forth above, the Company desires that each
Indemnitee be indemnified by the Company as set forth herein.

     

    NOW,
THEREFORE, the Company and each Indemnitee hereby agree as
follows:

     

    
      
         

      

      
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    1.           Indemnification.

     

    (a)  Third Party
Proceedings.  The Company shall indemnify each Indemnitee if
such Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action, suit, proceeding or any alternative
dispute resolution mechanism, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Company) by reason
of the fact that such Indemnitee is or was a director, officer, employee, agent
or fiduciary of the Company, or any subsidiary of the Company, or by reason of
the fact that such Indemnitee is or was serving at the request of the Company as
a director, officer, employee, agent or fiduciary of another
corpo­ra­tion, partnership, joint venture, trust or other enterprise,
against any and all expenses (including attorneys’ fees and all other costs,
expenses and obligations incurred in connection with investigating, defending,
being a witness in or participating in (including on appeal), or preparing to
defend, to be a witness in or to participate in, any action, suit, proceeding,
alternative dispute resolution mechanism, hearing, inquiry or investigation),
judgments, fines and penalties actually and reasonably incurred in connection
with, and amounts actually paid in settlement of (if such settlement is approved
in advance by the Company, which approval will not be unreasonably withheld),
(and any federal, state, local or foreign taxes imposed on the Indemnitee as a
result of the actual or deemed receipt of any payments under this Agreement)
actually and reason­ably incurred by such Indemnitee in connection with such
action, suit or proceeding if such Indemnitee acted in good faith and in a
manner such Indem­nitee reasonably believed to be in or not opposed to the
best interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe such Indemnitee’s conduct was
unlawful.  The termina­tion of any action, suit or proceeding by
judgment, order, settle­ment, conviction, or upon a plea of nolo contendere or its
equiva­lent, shall not, of itself, create a presumption that an Indemnitee
did not act in good faith and in a manner which such Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, and, with
respect to any criminal action or proceeding, had reasonable cause to believe
that such Indemnitee’s conduct was unlawful.

     

    (b)  Proceedings By or in the Right of
the Company.  The Company shall indemnify an Indemnitee if such
Indemnitee was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit, proceeding or any alternative
dispute resolution mechanism, whether civil, criminal, administrative or
investigative, by or in the right of the Company or any subsidiary of the
Company to procure a judgment in its favor by reason of the fact that such
Indemnitee is or was a director, officer, employee, agent or fiduciary of the
Company, or any subsidiary of the Company, or by reason of the fact that such
Indemnitee is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against expenses (including attorneys’ fees) and, to
the fullest extent permitted by law, judgments, fines and amounts paid in
settlement actually and reasonably incurred by such Indemnitee in connection
with the defense or settlement of such action, suit or proceeding if such
Indemnitee acted in good faith and in a manner such Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, except
that no indemnification shall be made in respect of any claim, issue or matter
as to which such Indem­nitee shall have been adjudged to be liable to the
Company unless and only to the extent that the Court of Chancery of the State of
Delaware or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, such Indem­nitee is fairly and reasonably
entitled to indemnity for such expenses which the Court of Chancery of the State
of Delaware or such other court shall deem proper.

     

    
      
         

      

      
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    (c)   Reviewing
Party.  Notwithstanding the foregoing, (i) the obligations
of the Company under Section 1(a) and (b) shall be subject to the condition that
the Reviewing Party (as described in Section 11(e) hereof) shall not have
determined (in a written opinion, in any case in which the Independent Legal
Counsel referred to in Section 1(e) hereof is involved) that an Indemnitee would
not be permitted to be indemnified under applicable law, and (ii) each
Indemnitee acknowledges and agrees that the obligation of the Company to make an
advance payment of expenses to such Indemnitee pursuant to Section 2(a) (an
“Expense Advance”) shall be subject to the condition that, if, when and to the
extent that the Reviewing Party determines that such Indemnitee would not be
permitted to be so indemnified under applicable law, the Company shall be
entitled to be reimbursed by such Indemnitee (who hereby agrees to reimburse the
Company) for all such amounts theretofore paid; provided, however, that if such
Indemnitee has commenced or thereafter commences legal proceedings in a court of
competent jurisdiction to secure a determination that such Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party
that such Indemnitee would not be permitted to be indemnified under applicable
law shall not be binding and such Indemnitee shall not be required to reimburse
the Company for any Expense Advance until a final judicial determination is made
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed).  An Indemnitee’s obligation to reimburse the
Company for any Expense Advance shall be unsecured and no interest shall be
charged thereon.  If there has not been a Change in Control (as
defined in Section 11(c) hereof), the Reviewing Party shall be selected by the
Board of Directors, and if there has been such a Change in Control (other than a
Change in Control which has been approved by a majority of the Company’s Board
of Directors who were directors immediately prior to such Change in Control),
the Reviewing Party shall be the Independent Legal Counsel referred to in
Section 1(e) hereof.  If there has been no determination by the
Reviewing Party or if the Reviewing Party determines that an Indemnitee
substantively would not be permitted to be indemnified in whole or in part under
applicable law, such Indemnitee shall have the right to commence litigation
seeking an initial determination by the court or challenging any such
determination by the Reviewing Party or any aspect thereof, including the legal
or factual bases therefor, and the Company hereby consents to service of process
and to appear in any such proceeding.  Any determination by the
Reviewing Party otherwise shall be conclusive and binding on the Company and
such Indemnitee.

     

    (d)   Contribution.  If
the indemnification provided for in Section 1(a) or (b) above for any reason is
held by a court of competent jurisdiction to be unavailable to an Indemnitee in
respect of any losses, claims, damages, expenses or liabilities referred to
therein, then the Company, in lieu of indemnifying such Indemnitee thereunder,
shall contribute to the amount paid or payable by such Indemnitee as a result of
such losses, claims, damages, expenses or liabilities (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company and the
Indemnitee, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company and the Indemnitee in connection with the action or
inaction which resulted in such losses, claims, damages, expenses or
liabilities, as well as any other relevant equitable
considerations.  The relative fault of the Company and the Indemnitee
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or the
Indemnitee and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.  The
Company and the Indemnitee agree that it would not be just and equitable if
contribution pursuant to this Section 1(d) were determined by pro rata or per
capita allocation or by any other method of allocation which does not take
account of the equitable considerations referred to herein.

     

    
      
         

      

      
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    (e)  Change in
Control.  The Company agrees that if there is a Change in
Control of the Company (other than a Change in Control which has been approved
by a majority of the Company’s Board of Directors who were directors immediately
prior to such Change in Control) then, with respect to all matters thereafter
arising concerning the rights of an Indemnitee to payments of expenses under
this Agreement or any other agreement or under the Company’s Certificate of
Incorporation (the “Certificate”), or Bylaws as
now or hereafter in effect, Independent Legal Counsel (as defined in Section
11(d) hereof) shall be selected by the Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld).  Such counsel,
among other things, shall render its written opinion to the Company and the
Indemnitee as to whether and to what extent such Indemnitee would be permitted
to be indemnified under applicable law.  The Company agrees to abide
by such opinion and to pay the reasonable fees of the Independent Legal Counsel
referred to above and to fully indemnify such counsel against any and all
expenses (including attorneys’ fees), claims, liabilities and damages arising
out of or relating to this Agreement or its engagement pursuant
hereto.

     

    (f)  Mandatory Payment of
Expenses.  To the extent that an Indemnitee has been successful
on the merits or otherwise in defense of any action, suit or proceeding referred
to in Subsec­tions (a) and (b) of this Section 1, or in defense of
any claim, issue or matter therein, such Indemnitee shall be indemnified against
expenses (including attorneys’ fees) actually and reasonably incurred by such
Indemnitee in connection therewith.

     

    2.           Expenses;
Indemnification Procedure.

     

    (a)  Advancement of
Expenses.  The Company shall advance all expenses incurred by
an Indemnitee in connection with the inves­ti­ga­tion, defense,
settlement or appeal of any civil or criminal action, suit or proceeding
referenced in Section 1(a) or (b) hereof (but not amounts actually paid in
settlement of any such action, suit or proceeding).  Each Indemnitee
hereby undertakes to repay such amounts advanced only if, and to the extent
that, it shall ulti­mately be determined that such Indemnitee is not
entitled to be indem­nified by the Company as authorized
hereby.  The advances to be made hereunder shall be paid by the
Company to the Indemnitee within thirty (30) days following delivery of a
written request therefor by such Indemnitee to the Company.

     

    (b)  Notice/Cooperation by
Indemnitee.  An Indemnitee shall, as a condition precedent to
his right to be indemnified under this Agreement, give the Company notice in
writing as soon as practic­able of any claim made against such Indemnitee
for which indemnifica­tion will or could be sought under this
Agreement.  Notice to the Com­pany shall be directed to the
President of the Company at the address shown on the signature page of this
Agreement (or such other address as the Company shall designate in writing to
such Indem­nitee).  In addition, the Indemnitee shall give the
Company such information and cooperation as it may reasonably require and as
shall be within such Indemnitee’s power.

     

    
      
         

      

      
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    (c)  Procedure.  Any
indemnification and advances pro­vided for in Section 1 and this
Section 2 shall be made no later than thirty (30) days after receipt of the
written request of an Indemnitee.  If a claim under this Agreement,
under any statute, or under any provision of the Company’s Certificate or Bylaws
providing for indemnification, is not paid in full by the Company within thirty
(30) days after a written request for payment thereof has first been received by
the Company, the Indemnitee may, but need not, at any time thereafter bring an
action against the Company to recover the unpaid amount of the claim and,
subject to Section 13 of this Agreement, such Indemnitee shall also be
entitled to be paid for the expenses (including attorneys’ fees) of bringing
such action.  It shall be a defense to any such action (other than an
action brought to enforce a claim for expenses incurred in connection with any
action, suit or proceeding in advance of its final disposition) that such
Indemnitee has not met the standards of conduct which make it permissible under
applicable law for the Company to indemnify such Indemnitee for the amount
claimed.  However, such Indemnitee shall be entitled to receive
interim payments of expenses pursuant to Subsection 2(a) unless and until
such defense may be finally adjudicated by court order or judgment from which no
further right of appeal exists.  It is the parties’ intention that if
the Company contests an Indemnitee’s right to indemnification, the question of
such Indemnitee’s right to indemnification shall be for the court to decide, and
neither the failure of the Company (including its Board of Directors, any
committee or subgroup of the Board of Directors, independent legal counsel, or
its stockholders) to have made a determination that indemnification of the
Indemnitee is proper in the circumstances because such Indemnitee has met the
applicable standard of conduct required by applicable law, nor an actual
determination by the Company (including it Board of Directors, any committee or
subgroup of the Board of Directors, independent legal counsel, or its
stockholders) that such Indemnitee has not met such applicable standard of
conduct, shall create a presumption that such Indemnitee has or has not met the
applicable standard of conduct. In connection with any determination by any
Reviewing Party or otherwise as to whether the Indemnitee is entitled to be
indemnified hereunder, the burden of proof will be on the Company to establish
that Indemnitee is not so entitled.

     

    (d)  Notice to
Insurers.  If, at the time of the receipt of a notice of a
claim pursuant to Section 2(b) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies.  The Company shall
thereafter take all neces­sary or desirable action to cause such insurers to
pay, on behalf of the Indemnitee, all amounts payable as a result of such
proceeding in accordance with the terms of such policies.

     

    (e)  Selection of
Counsel.  In the event the Company shall be obligated under
Section 2(a) hereof to pay the expenses of any proceeding against an
Indemnitee, the Company, if appropriate, shall be entitled to assume the defense
of such proceeding, with counsel approved by such Indemnitee, upon the delivery
to such Indemnitee of written notice of its election to do so.  After
delivery of such notice, approval of such counsel by the Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to such
Indem­nitee under this Agreement for any fees of counsel subsequently
incurred by such Indemnitee with respect to the same proceeding, provided that
(i) such Indemnitee shall have the right to employ his counsel in any such
proceeding at such Indemnitee’s expense; and (ii) if (A) the
employment of counsel by such Indemnitee has been previously authorized by the
Company, (B) such Indemnitee shall have reasonably concluded that there may
be a conflict of interest between the Company and such Indemnitee in the conduct
of any such defense, or (C) the Company shall not, in fact, have employed
counsel to assume the defense of such proceeding, then the fees and expenses of
such Indemnitee’s counsel shall be at the expense of the Company.

     

    
      
         

      

      
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    3.           Additional
Indemnification Rights; Nonexclusivity.

     

    (a)  Scope.  Notwithstanding
any other provision of this Agreement, the Company hereby agrees to indemnify
the Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by the other provi­sions of
this Agreement, the Company’s Certificate, the Company’s Bylaws or by
statute.  In the event of any change, after the date of this
Agreement, in any applicable law, statute, or rule which expands the right of a
Delaware corporation to indemnify a member of its Board of Directors or an
officer, such changes shall be, ipso facto, within the
purview of an Indemnitee’s rights and Company’s obligations, under this
Agreement.  In the event of any change in any applicable law, statute
or rule which narrows the right of a Delaware corporation to indemnify a member
of its Board of Directors or an officer, such changes, to the extent not
otherwise required by such law, statute or rule to be applied to this Agreement
shall have no effect on this Agreement or the parties’ rights and obligations
hereunder.

     

    (b)  Nonexclusivity. The
indemnification provided by this Agreement shall not be deemed exclusive of any
rights to which an Indemnitee may be entitled under the Company’s Certificate,
its Bylaws, any agreement, any vote of stockholders or disinterested directors,
the General Corporation Law of the State of Delaware, or otherwise, both as to
action in such Indemnitee’s official capacity and as to action in another
capacity while holding such office.  The indemnification provided
under this Agree­ment shall continue as to each Indemnitee for any action
taken or not taken while serving in an indemnified capacity even though he may
have ceased to serve in such capacity at the time of any action, suit or other
covered proceeding.

     

    4.           Primacy of
Indemnification.  The Company hereby acknowledges that one or
more of the Directors now or in the future may have certain rights to
indemnification and/or insurance provided by one or more of the other
Indemnitees and/or certain of their affiliates (collectively, the “Fund
Indemnitors”).  The Company hereby agrees that it is the
indemnitor of first resort (i.e., its obligations to such
Directors are primary and those of the Fund Indemnitors to advance expenses or
to provide indemnification for the same expenses and liabilities incurred by
such Directors are secondary), that it shall be liable to Directors for the full
amount of all indemnifiable amounts to the extent legally permitted regardless
of any indemnification, insurance or benefits or accommodations provided by the
Fund Indemnitors, and that it irrevocably waives any claims against the Fund
Indemnitors for contribution, subrogation or any other recovery of any kind in
respect thereof.  The Company further agrees that no advancement or
payment by the Fund Indemnitors on behalf of any Director with respect to any
claim for which such Director has sought indemnification from the Company shall
affect the foregoing, and that the Fund Indemnitors shall have a right of
contribution and/or be subrogated to the extent of any such advancement or
payment to all of the rights of recovery of each Director against the
Company.  In the event a Fund Indemnitor shall pay, reimburse or
advance to or for the benefit of a Director, any amounts (including attorneys’
fees), judgments, fines or amounts paid in settlement which are indemnifiable by
the Company pursuant to this Agreement or any other agreement between the
Company and Director, then the Company shall reimburse such Fund Indemnitor for
all such amounts paid, reimbursed or advanced by the Fund Indemnitor within
thirty (30) days following delivery of a written request therefor by the
Fund Indemnitor.

     

    
      
         

      

      
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    5.           Subrogation. Except as provided in
Section 4 above, in the event of payment under this Agreement, the Company shall
be subrogated to the extent of such payment to all of the rights of contribution
or recovery of an Indemnitee (other than against the Fund Indemnitors) who shall
take, at the request of the Company, all reasonable action necessary to secure
such rights, including the execution of such documents as are necessary to
enable the Company to bring suit to enforce such rights.

     

    6.           Partial
Indemnification.  If an Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penal­ties actually or
reasonably incurred by him in the investiga­tion, defense, appeal or
settlement of any civil or criminal action, suit or proceeding, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify
such Indemnitee for the portion of such expenses, judgments, fines or penalties
to which such Indemnitee is entitled.

     

    7.           Mutual
Acknowledgement.  The Company and each Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors, officers, employees, agents or
fiduciaries under this Agreement or otherwise.  The Indemnitees
understand and acknowledge that the Company has undertaken or may be required in
the future to undertake with the Securities and Exchange Commission to submit
the question of indemnification to a court in certain circumstances for a
determination of the Company’s rights under public policy to indemnify an
Indemnitee.

     

    8.           Officer and
Director Liability Insurance.  The Company shall, from time to
time, make the good faith determination whether or not it is practicable for the
Company to obtain and maintain a policy or policies of insurance with reputable
insurance companies providing the officers and directors of the Company with
coverage for losses from wrongful acts, or to ensure the Company’s
perfor­mance of its indemnification obligations under this
Agreement.  The Company will also make commercially reasonable efforts
to obtain and maintain liability insurance applicable to directors, officers or
fiduciaries in an amount determined by the Company’s board of directors. Among
other considerations, the Company will weigh the costs of obtaining such
insurance coverage against the protection afforded by such
coverage.  In all policies of director and officer liability
insurance, each Indemnitee shall be named as an insured in such a manner as to
provide such Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company’s directors, if such Indemnitee is a director;
or of the Company’s officers, if such Indemnitee is not a director of the
Company but is an officer.  The Company shall promptly notify
Indemnitee in writing of any policy coverage modification, expiration, lapse,
non-renewal or denial of coverage under any such policy.

     

    9.           Severability.  Nothing
in this Agreement is intended to require or shall be construed as requiring the
Company to do or fail to do any act in violation of applicable
law.  The Company’s inability, pursuant to court order, to perform its
obligations under this Agreement shall not constitute a breach of this
Agree­ment. The provisions of this Agreement shall be severable as provided
in this Section 9.  If this Agreement or any portion hereof shall
be invalidated on any ground by any court of competent jurisdiction, then the
Company shall nevertheless indemnify an Indem­nitee to the full extent
permitted by any applicable portion of this Agreement that shall not have been
invalidated, and the balance of this Agreement not so invalidated shall be
enforceable in accordance with its terms.

     

    
      
         

      

      
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    10.           Exceptions.  Any
other provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement:

     

    (a)  Claims Initiated by an
Indemnitee.  To indemnify or advance expenses to an Indemnitee
with respect to proceedings or claims initiated or brought voluntarily by the
Indemnitee and not by way of defense, except:  (i) with respect to
actions or proceedings to establish or enforce a right to indemnification under
this Agreement or any other agreement or insurance policy or under the Company’s
Certificate or Bylaws now or hereafter in effect relating to proceedings or
claims for indemnifiable events, to the extent permitted by law; (ii) in
specific cases if the Board of Directors has approved the initiation or bringing
of such Claim; or (iii) as otherwise required under Section 145 of the DGCL,
regardless of whether the Indemnitee ultimately is determined to be entitled to
such indemnification, advance expense payment or insurance recovery, as the case
may be; or

     

    (b)  Insured Claims.  To
indemnify an Indemnitee for expenses or liabilities of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes or
penalties, and amounts paid in settlement) which have been paid directly to such
Indemnitee by an insurance carrier under a policy of officers’ and directors’
liability insurance maintained by the Company.

     

    (c)  Claims Under
Section 16(b).  To indemnify any Indemnitee for expenses
and the payment of profits arising from the purchase and sale by such Indemnitee
of securities in violation of Section 16(b) of the Securities Exchange Act
of 1934, as amended, or any similar successor statute.

     

    (d)  Claims Excluded Under Section 145 of
the DGCL.  To indemnify an Indemnitee if:  (i) such
Indemnitee did not act in good faith and in a manner reasonably believed to be
in or not opposed to the best interests of the Company or (ii) with respect to
any criminal action or proceeding, such Indemnitee had reasonable cause to
believe the conduct was unlawful or (iii) such Indemnitee shall have been
adjudged to be liable to the Company unless and only to the extent the court in
which such action was brought shall permit indemnification as provided in
Section 145(b) of the DGCL.

     

    11.           Construction of
Certain Phrases.

     

    (a)  For
purposes of this Agreement, references to the “Company” shall include, in
addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which,
if its separate existence had continued, would have had power and author­ity
to indemnify its directors, officers, and employees, agents or fiduciaries, so
that if Indemnitee is or was a director, officer, employee, agent or fiduciary
of such constituent corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee, agent or fiduciary of
another corporation, partnership, joint venture, trust or other enterprise, each
Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as each
Indemnitee would have with respect to such constituent corporation if its
separate existence had continued.

     

    
      
         

      

      
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    (b)  For
purposes of this Agreement, references to “other enterprises” shall include
employee benefit plans; references to “fines” shall include any excise taxes
assessed on any Indemnitee with respect to an employee benefit plan; and
references to “serving at the request of the Company” shall include any service
as a direc­tor, officer, employee, agent or fiduciary of the Company which
imposes duties on, or involves services by, such director, officer, employee,
agent or fiduciary with respect to an employee benefit plan, its participants,
or its beneficiaries; and if any Indemnitee acted in good faith and in a manner
such Indemnitee reasonably believed to be in the interest of the participants
and beneficiaries of an employee benefit plan, such Indem­nitee shall be
deemed to have acted in a manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

     

    (c)  For
purposes of this Agreement a “Change in Control” shall be deemed to have
occurred if (i) any “person” (as such term is used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, (A) who is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 20% or more of the combined voting power of the Company’s
then outstanding Voting Securities, increases his beneficial ownership of such
securities by 5% or more over the percentage so owned by such person, or (B)
becomes the “beneficial owner” (as defined in Rule 13d-3 under said Exchange
Act), directly or indirectly, of securities of the Company representing more
than 30% of the total voting power represented by the Company’s then outstanding
Voting Securities, (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors of the Company and any new director whose election by the Board of
Directors or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof, or (iii) the stockholders of the Company
approve a merger or consolidation of the Company with any other corporation
other than a merger or consolidation which would result in the Voting Securities
of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into Voting Securities of
the surviving entity) at least two-thirds (2/3) of the total voting power
represented by the Voting Securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of (in one transaction or a
series of transactions) all or substantially all of the Company’s
assets.

     

    (d)  For
purposes of this Agreement, “Independent Legal Counsel” shall mean an attorney
or firm of attorneys, selected in accordance with the provisions of Section 1(e)
hereof, who shall not have otherwise performed services for the Company or any
Indemnitee within the last three (3) years (other than with respect to matters
concerning the right of any Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements).

     

    (e)  For
purposes of this Agreement, a “Reviewing Party” shall mean any appropriate
person or body consisting of a member or members of the Company’s Board of
Directors or any other person or body appointed by the Board of Directors who is
not a party to the particular claim or proceeding for which an Indemnitee is
seeking indemnification, or Independent Legal Counsel.

     

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

       

    

    (f)  For
purposes of this Agreement, “Voting Securities” shall mean any securities of the
Company that vote generally in the election of directors.

     

    12.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall
constitute an original.

     

    13.           Successors and
Assigns.  This Agreement shall be binding upon the Company and
its successors and assigns, and shall inure to the benefit of each Indemnitee
and each Indemnitee’s estate, heirs, legal representatives and
assigns.

     

    14.           Attorneys’
Fees.  In the event that any action is instituted by an
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
the Indemnitee shall be entitled to be paid all expenses incurred by such
Indemnitee with respect to such action, and shall be entitled to the advancement
of expenses with respect to such action.  The foregoing entitlement
shall apply, to the maximum extent permitted under applicable law, regardless of
whether such Indemnitee is ultimately successful in such action, but shall not
apply if, as a part of such action, a court of competent jurisdiction over such
action determines that each of the material assertions made by such Indemnitee
as a basis for such action was not made in good faith or was
frivolous.  In the event of an action instituted by or in the name of
the Company under this Agreement to enforce or interpret any of the terms of
this Agreement, the Indemnitee shall be entitled to be paid all expenses
incurred by such Indemnitee in defense of such action (including costs and
expenses incurred with respect to Indemnitee counterclaims and cross-claims made
in such action), and shall be entitled to the advancement of expenses with
respect to such action, unless as a part of such action the court determines
that each of such Indemnitee’s material defenses to such action were made in bad
faith or were frivolous.

     

    15.           Notice.  All
notices, requests, demands and other communi­­cations under this
Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail with
postage prepaid and properly addressed, on the third business day after the date
postmarked, or (iii) if sent by airmail to a country outside of North America,
on the fifth business day after the date postmarked.  Addresses for
notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

     

    16.           Consent to
Jurisdiction.  The Company and Indemnitees each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of
Delaware.

     

    17.           Choice of
Law.  This Agreement shall be governed by and its provisions
construed in accordance with the laws of the State of Delaware, as applied to
contracts between Delaware residents entered into and to be performed entirely
within Delaware without regard to the conflict of law principles
thereof.

     

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

       

    

    18.           Period of
Limitations.  No legal action shall be brought and no cause of
action shall be asserted by or in the right of the Company against an
Indemnitee, an Indemnitee’s estate, spouse, heirs, executors or personal or
legal representatives after the expiration of two years from the date of accrual
of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of a
legal action within such two-year period; provided, however, that if
any shorter period of limitations is otherwise applicable to any such cause of
action, such shorter period shall govern.

     

    19.           Amendment and
Termination.  No amendment, modification, termination or
cancellation of this Agreement shall be effective with respect to any Indemnitee
unless it is in writing signed by such Indemnitee and the Company.  No
waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions hereof (whether or not similar) nor
shall such waiver constitute a continuing waiver.

     

    20.           Integration and
Entire Agreement.  This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous
written and oral negotiations, commitments, understandings and agreements
relating to the subject matter hereof between the parties hereto.

     

    

     

    [Remainder
of page intentionally left blank]

    

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

     

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

     

    
      
        	 	
                COMPANY:

                

                PATIENT
      SAFETY TECHNOLOGIES, INC.,

                a
      Delaware corporation

              	 
	 	 	 	 
	
                 

              	
                By:

              	________________________________	 
	 	 	      
                
                  Name:  __________________________

                

                
                  Title:  ___________________________

                

                Address:  ________________________

                                 
      ________________________

              	 
	 	 	 	 
	 	 	 	 

      

    

     

    
      
        	 	      
                INDEMNITEES:

              	 
	 	 	 	 
	
                 

              	___________________________________	 
	 	
                [PRINT
      NAME & SIGNATURE]

                

                Address:  ___________________________

                                 
      ___________________________

                

                

                ___________________________________

                [FUND
      NAME IF APPLICABLE]

              	 
	 	 	 	 

      

    

     

     

    
      
         

      

      
        - 12
-Unassociated Document

     

    
      Exhibit
4.9

       

      THE
REGISTERED HOLDER OF THIS REPRESENTATIVES’ UNIT PURCHASE OPTION BY ITS
ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS
REPRESENTATIVES’ UNIT PURCHASE OPTION EXCEPT AS HEREIN PROVIDED

       

      THIS
REPRESENTATIVES’ UNIT PURCHASE OPTION IS VOID AFTER 5:00 P.M. EASTERN TIME,
DECEMBER 13, 2011.

       

      FORM
OF REPRESENTATIVES’ UNIT PURCHASE OPTION

       

      FOR
THE PURCHASE OF SERIES A and/or SERIES B UNITS

       

      (OR
THE COMPONENTS THEREOFOF)

       

      OF

       

      FUNTALK
CHINA HOLDINGS LIMITED

       

      THIS
CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of I-Bankers
Securities, Inc., as the initial registered owner of the Representatives’ Unit
Purchase Option (the “Representatives’ Unit Purchase Option” or “UPO”) to
Funtalk China Holdings Limited (f/k/a Middle Kingdom Alliance Corp. (the
“Company”), the holder named on the signature page hereof (the “Holder”) is
entitled, at any time or from time to from the date hereof (the “Commencement
Date”), and at or before 5:00 p.m., Eastern time, December 13, 2011 (the
“Expiration Date”), but not thereafter, to subscribe for, purchase and receive,
in whole or in part, the number of Series A Units (or the components thereof)
and/or Series B Units (or the components thereof) of the Company as set forth on
the signature page hereof.

       

      
        	
                1)  

              	
                REPRESENTATIVES’
      UNIT PURCHASE OPTION

              

      

       

      a) This
Representative’s Unit Purchase Option is one of a series of UPO’s which in the
aggregate consist of up to a total of 19,800 Series A Units (or the components
thereof) at a per-unit price of $10.00 and/or up to a total of 330,000 Series B
Units (or the components thereof) at a per-unit price of $10.00.  The
Series A Units and Series B Units (or the respective components thereof) that
would be issued upon the exercise of this Representatives’ Purchase Option are
identical to the Units offered by the Company to the public as set forth in the
Prospectus and Registration Statements filed with the Securities and Exchange
Commission (the “Commission”) on Forms S-1 (Nos. 333-133475 and 333-139325) as
amended.

       

      b) This UPO
shall be exercisable, in whole or in part, commencing on the date the
Registration Statement becomes effective (the “Effective Date”) and expiring on
the five-year anniversary of the Effective Date at an initial exercise price per
Representatives’ Unit of $10.00, which is equal to one hundred twenty-five
percent (125%) of the initial public offering price of a Firm Unit.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      c) The
Representatives’ Class A and Class B Warrants will be identical to those offered
to the public except that the Representatives’ Class A and Class B Warrants
shall have an exercise price of $10.00.  The Class A and Class B
Warrants may be exercised during the period commencing on the later of the
completion by the Company of a business combination, as described more fully in
the Registration Statement (“Business Combination”) or one year from the
Effective Date and terminating on the seven-year anniversary of the Effective
Date or earlier upon redemption (the “Expiration Date”).

       

      d) If the
Expiration Date is a day on which banking institutions are authorized by law to
close, then this Representatives’ Unit 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 an the Expiration Date, the Company
agrees not to take any action that would terminate the Representatives’ Unit
Purchase Option.  This Representatives’ Unit Purchase Option is
initially exercisable at $100.00 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 Representatives’ Unit Purchase Option, including the
exercise price per Unit and the number of Units (and Common Stock, Class B
Common Stock and Class A and Class B 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
      OF REPRESENTATIVES’ UNIT PURCHASE
OPTION

              

      

       

      a) Exercise
Procedure.  In order to exercise this Representatives’ Unit
Purchase Option, the exercise form attached hereto must be duly executed and
completed and delivered to the Company, together with this Representatives’ Unit
Purchase Option and payment of the Exercise Price for the Units being purchased
payable by wire transfer in federal (same day) funds or by certified or bank
cashier’s check(s) in New York Clearing House funds.  If the
subscription rights represented hereby shall not be exercised at or before 5:00
p.m., Eastern time, on the Expiration Date, this Representatives’ Unit Purchase
Option shall become and be void without further force or effect, and all rights
represented hereby shall cease and expire.

       

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

       

      “The
securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended (the “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.”

       

      c) Cashless
Exercise.

       

      i) In lieu
of the payment of the Exercise Price multiplied by the number of Units for which
this Representatives’ Unit Purchase Option is exercisable (and in lieu of being
entitled to receive Common Stock and Warrants) in the manner required by Section
2(a), the Holder shall have the right (but not the obligation) to convert any
exercisable but unexercised portion of this Representatives’ Unit Purchase
Option into Units (the “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
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
Representatives’ Unit Purchase Option being converted by (y) the Current Market
Value (as defined below).  The “Value” of the portion of the
Representatives’ Unit 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 Representatives’ Unit Purchase
Option being converted from (b) the Current Market Value of a Unit multiplied by
the number of Units underlying the portion of the Representatives’ Unit Purchase
Option being converted.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ii) 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 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.

       

      iii) 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 Representatives’ Unit 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.

       

      d) Notwithstanding
anything to the contrary contained in this Representatives’ Unit Purchase
Option, in no event will the Company be required to net cash settle the exercise
of the Representatives’ Unit Purchase Option or the Warrants underlying the Unit
Purchase Option.  The holder of the Representatives’ Unit Purchase
Option and the Warrants underlying the Representatives’ Unit Purchase Option
will not be entitled to exercise the Representatives’ Unit Purchase Option or
the Warrants underlying such Unit 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
Representatives’ Unit Purchase Option or underlying Warrants, the
Representatives’ Unit Purchase Option and/or the underlying Warrants, as
applicable, will expire worthless

       

      
        	
                3)  

              	
                TRANSFER

              

      

       

      a) Restrictions—General.  The
registered Holder of this Representatives’ Unit Purchase Option, by its
acceptance hereof, agrees that it will not sell, transfer, assign, pledge or
hypothecate this Representatives’ Unit Purchase Option for a period of one
hundred eighty (180) days following the Effective Date to anyone other than (i)
I-Bankers Securities Incorporated (“I-Bankers”) or an underwriter or a selected
dealer in connection with the Offering; or (ii) a bona fide officer or partner
of I-Bankers 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 Representatives’ Unit Purchase Option and payment
of all transfer taxes, if any, payable in connection therewith.  The
Company shall within five business days transfer this Representatives’ Unit
Purchase Option on the books of the Company and shall execute and deliver a new
Representatives’ Unit Purchase Option or Representatives’ Unit 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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      b) Restrictions—Securities.  The
securities evidenced by this Representatives’ Unit 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 Cozen O’Connor 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

              

      

       

      a) Partial
Exercise.  Subject to the restrictions in Section 3 hereof,
this Representatives’ Unit 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 Representatives’ Unit Purchase Option for
cancellation, together with the duly executed exercise or assignment farm 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 Representatives’
Unit Purchase Option of like tenor to this Representatives’ Unit 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 Representatives’ Unit
Purchase Option has not been exercised or assigned.

       

      b) Loss, Theft,
Destruction.  Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Representatives’ Unit Purchase Option and of reasonably satisfactory
indemnification or the posting of a bond, the Company shall execute and deliver
a new Representatives’ Unit Purchase Option of like tenor and
date.  Any such new Representatives’ Unit 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

              

      

       

      a) Demand
Registration.

       

      i) The
Company, upon written demand (the “initial Demand Notice”) of the Holder(s) of
at least 51% of the Representatives’ Unit Purchase Options and/or the underlying
Units and/or the underlying securities (the “Majority Holders”), agrees to
register on one occasion, all or any portion of the Representatives’ Unit
Purchase Options requested by the Majority Holders in the Initial Demand Notice
and all of the securities underlying such Representatives’ Unit 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 forty 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
Representatives’ Unit Purchase Options and/or the Registrable Securities within
ten days from the date of the receipt of any such Initial Demand
Notice.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ii) 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(a)(1) to remain effective for a period of nine
consecutive months from the effective date of such registration statement or
post-effective amendment.

       

      b) Piggy-Back
Registration.

       

      i) In
addition to the demand right of registration, the Holders of the
Representatives’ Unit 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.

       

      ii) 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 Representatives’
Unit 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      c) Indemnification.

       

      i) 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 (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 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 Section 5 of the Underwriting Agreement
between the Company, I-Bankers 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.

       

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

       

      iii) The
Company shall furnish I-Bankers, 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 I-Bankers, 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 the Representatives 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. (the “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 I-Bankers, as Representative
of the Holders, shall reasonably request.  The Company shall not be
required to disclose any confidential information or other records to I-Bankers,
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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      iv) 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.

       

      v) Notwithstanding
anything contained in this Section 5 to the contrary, the Company shall have no
obligation pursuant to Sections 5(a) or 5(b) 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).

       

      vi) Each
Holder agrees, that upon receipt of any written 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

              

      

       

      a) Exercise Price and Number of
Securities.  The Exercise Price and the number of Units
underlying the Representatives’ Unit Purchase Option shall be subject to
adjustment from time to time as hereinafter set forth:

       

      i) If after
the date hereof, and subject to the provisions of Section 6(c) below, the number
of shares of outstanding common stock is increased by a stock dividend payable
in common stock or by a split-up 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 prior to a
Business Combination the Company declares a two-for-one stock dividend and at
the time of such dividend this Representatives’ Unit Purchase Option is for the
purchase of one Unit at $100.00 per whole Unit (each Warrant underlying the
Units is exercisable for $10.00 per share), upon effectiveness of the dividend,
this Representatives’ Unit Purchase Option will be adjusted to allow for the
purchase of one Unit at $100.00 per Unit, each Unit entitling the holder to
receive of up to a total of 19,800 Series A Units and/or up to a total of
330,000 Series B Units.  For the Series A Units, the Holder shall
receive two shares of Common Stock and ten Class A Warrants (each Class A
Warrant exercisable for $4.40 per share).  For the Series B Units, the
Holder shall receive two Class B Common Shares and two Class B Warrants (each
Class B Warrant exercisable for $4.40 per share).

       

      ii) If after
the date hereof, and subject to the provisions of Section 6(c), the number of
outstanding shares of common stock is decreased by a consolidation, combination
or reclassification of the 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, issuable upon exercise
of the Warrants included in each of the Units purchasable hereunder shall be
adjusted in accordance with the terms of the Warrants.

       

      iii) In case
of any reclassification or reorganization of the outstanding common stock other
than a change covered by Section 6(a)(i) or 6(a)(ii) hereof or that solely
affects the par value of such 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 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 Representatives’ Unit Purchase Option shall have the right
thereafter (until the expiration of the right of exercise of this
Representatives’ Unit 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 Common Stock of the Company obtainable upon exercise
of this Representatives’ Unit Purchase Option and the underlying Warrants
immediately prior to such event; and if any reclassification also results in a
change in Common Stock covered by Section 6(a)(i) or 6(a)(ii), then such
adjustment shall be made pursuant to Sections 6(a)(i), 6(a)(ii) and this Section
6(a)(iii).  The provisions of this Section 6(a)(111) shall similarly
apply to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      iv) This form
of Representatives’ Unit Purchase Option need not be changed because of any
change pursuant to this Section, and Representatives’ Unit Purchase Options
issued after such change may state the same Exercise Price and the same number
of Units as are stated in the Representatives’ Unit Purchase Options initially
issued pursuant to this Agreement.  The acceptance by any Holder of
the issuance of new Representatives’ Unit 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.

       

      b) Substitute Representatives’
Unit 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 Representatives’ Unit Purchase Option providing that
the holder of each Representatives’ Unit Purchase Option then outstanding or to
be outstanding shall have the right thereafter (until the stated expiration of
such Representatives’ Unit Purchase Option) to receive, upon exercise of such
Representatives’ Unit 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 common stock of the Company for which such
Representatives’ Unit Purchase Option might have been exercised immediately
prior to such consolidation, merger, sale or transfer.  Such
supplemental Representatives’ Unit 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.

       

      c) Fractional
interests.  The Company shall not be required to issue
certificates representing fractions of Common Stock, Class B Common Stock or
Warrants upon the exercise of the Representatives’ Unit 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, Common Stock, Class B Common Stock or other securities, properties or
rights.

       

      
        	
                7)  

              	
                RESERVATION
      AND LISTING

              

      

       

      a) The
Company shall at all times reserve and keep available out of its authorized
Common Stock and Class B Common Stock, solely for the purpose of issuance upon
exercise of the Representatives’ Unit Purchase Options or the Warrants
underlying the Representatives’ Unit Purchase Option, such number of shares of
Common Stock, Class B 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 Representatives’ Unit Purchase Options and
payment of the Exercise Price therefor, all Common Stock, Class B 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 Representatives’ Unit Purchase Options
and payment of the respective Warrant exercise price therefor, all 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.

       

      b) As long
as the Representatives’ Unit Purchase Options shall be outstanding, the Company
shall use its best efforts to cause all (i) Units, Common Stock and Class B
Common Stock issuable upon exercise of the Representatives’ Unit Purchase
Options; (ii) Warrants issuable upon exercise of the Representatives’ Unit
Purchase Options; and (iii) Common Stock issuable upon exercise of the Warrants
included in the Units issuable upon exercise of the Representatives’ Unit
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, Class B Common Stock or the Public Warrants issued to the
public in connection herewith may then be listed and/or quoted.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                8)  

              	
                CERTAIN
      NOTICE REQUIREMENTS

              

      

       

      a) Right to
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.  lf, however, at any time prior to the
expiration of the Representatives’ Unit Purchase Options and their exercise, any
of the events described in Section 8(b) 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.

       

      b) Enumerated
Events.  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
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 properly, assets and business shall be
proposed,

       

      c) 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 (the “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.

       

      d) Notice
Delivery.  All notices, requests, consents and other
communications under this Representatives’ Unit Purchase Option shall be in
writing and shall be deemed to have been duly made when hand delivered, or sent
via confirmed facsimile transmission, email or receipted overnight courier (i)
if to the registered Holder of the Representatives’ Unit 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:

       

      Funtalk
China Holdings Limited

      South
3/F, Chang’An XingRong Center

      No. 1
NaoShiKou Street, XiCheng District

      Beijing,
China 10031

      Attn:  Jackie
Leong, CFO

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                9)  

              	
                MISCELLANEOUS

              

      

       

      a) Amendments.  The
Company and l-Bankers may from time to time supplement or amend this
Representatives’ Unit 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 provision’s in regard to matters or questions arising
hereunder that the Company and I-Bankers may deem necessary or desirable and
that the Company and i-Bankers 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.

       

      b) 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 Representatives’ Unit Purchase
Option.

       

      c) Entire
Agreement.  This Representatives’ Unit Purchase Option
(together with the other agreements and documents being delivered pursuant to or
in connection with this Representatives’ Unit 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.

       

      d) Binding
Effect.  This Representatives’ Unit 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
Representatives’ Unit Purchase Option or any provisions herein
contained.

       

      e) Governing
Law.  This Representatives’ Unit Purchase Option shall be
governed by and construed and enforced in accordance with the laws of the State
of Florida, without giving effect to conflict of laws.  The Company
hereby agrees that any action, proceeding or claim against it arising out of,
relating In any way to this Agreement shall be brought and enforced in the
courts of the State of Florida of the United States of America for the Southern
District of Florida, 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 8(d) 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 agrees 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.

       

      f) Waivers.  The
failure of the Company or the Holder to at any time enforce any of the
provisions of this Representatives’ Unit 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 Representatives’ Unit Purchase Option or any provision hereof
or the right of the Company or any Holder to thereafter enforce each and every
provision of this Representatives’ Unit Purchase Option.  No waiver of
any breach, non-compliance or non-fulfillment of any of the provisions of this
Representatives’ Unit 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      g) Counterparts.  This
Representatives’ Unit 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.

       

      h) Exchange
Agreement.  As a condition of the Holder’s receipt and
acceptance of this Representatives’ Unit Purchase Option, Holder agrees that, at
any time prior to the complete exercise of this Representatives’ Unit Purchase
Option by Holder, if the Company and I-Bankers enter into an agreement (the
“Exchange Agreement”) pursuant to which they agree that all outstanding
Representatives’ Unit 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.

       

      IN
WITNESS WHEREOF, the Company has caused this Representatives’ Unit Purchase
Option to be issued and signed by its duly authorized officer as of the date set
forth below.

       

      FUNTALK
CHINA HOLDINGS LIMITED

       

      By:  /s/ Dongping
Fei                                                                         

       

      Print
Name:  Dongping
Fei                                                                         

       

      Title:  Chief Executive
Officer                                                                         

       

      Date:  April 16,
2010                                                                         

       

      Registered
Holder

       

      
        Name:

      

       

      
        Address:

      

       

      
        Series A
Units:

      

       

      
        Series B
Units:

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Form To Be Used To Exercise
Representatives’ Unit Purchase Option

       

      
        	
                TO:

              	
                Funtalk
      China Holdings Limited

              

      

      
        	
                 
      

              	
                South
      3/F, Chang’An XingRong Center

              

      

      
        	
                 
      

              	
                No.
      1 NaoShiKou Street, XiCheng
District

              

      

      
        	
                 
      

              	
                Beijing,
      China 10031

              

      

       

      
        	
                WITH
      COPY TO:

              	
                Continental
      Stock Transfer and Trust Company

              

      

      
        	
                 
      

              	
                17
      Battery Place, 8th Floor

              

      

      
        	
                 
      

              	
                New
      York, NY 10004

              

      

       

      Date:                             ,
20__

       

      The
undersigned hereby elects irrevocably to exercise all or a portion of the within
Representatives’ Unit Purchase Option and to purchase __________ Series A Unites
(consisting of __________ Ordinary Shares and __________ Class A Warrants)
and/or __________ Series B Units (consisting of __________ Ordinary Shares and
__________Class B Warrants) of Funtalk China Holdings Limited (f/k/a Middle
Kingdom Alliance Corp.) 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
Representatives’ Unit Purchase Option is exercised in accordance with the
instructions given below.

       

      or

       

      The
undersigned hereby elects irrevocably to convert its right to purchase
__________ Series A Units and/or __________Series B Units purchasable under the
within Representatives’ Unit Purchase Option by surrender of the unexercised
portion of the attached Representatives’ Unit Purchase Option (with a “Value”
based, of $__________ based on a “Market Price” of
$__________).  Please issue the securities comprising the Units as to
which this Representatives’ Unit Purchase Option is exercised in accordance with
the instructions given below.

       

      

      _________________________

      [Authorized
Signature]

       

      

      _________________________

      [Print
Name]

       

      

      _________________________

       [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 REPRESENTATIVES’ UNIT PURCHASE OPTION IN EVERY PARTICULAR WITHOUT
ALTERNATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER , AND MUST SE 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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Form To Be Used To Assign
Representatives’ Unit Purchase Option

       

      ASSIGNMENT

       

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

       

      FOR VALUE
RECEIVED, ______________________________ does hereby sell, assign and transfer
unto ______________________________ the right to purchase __________ Series A
Units and/or __________ Series B Units of Funtalk China Holdings Limited (the
“Company”) evidenced by the within Representatives’ Unit Purchase Option and
does hereby authorize the Company to transfer such right on the books of the
Company.

       

      Date:                                           ,
20___

       

       

      

       

      _________________________

      [Authorized
Signature]

       

      _________________________

      [Print
Name]

       

      _________________________

      [Signature
Guaranteed]

       

      NOTICE:  THE
SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
THE WITHIN REPRESENTATIVES’ UNIT 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.

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