Document:

Unassociated Document

    
      EXHIBIT
        10.1

      

      

      SECURITIES
        ESCROW AGREEMENT

       

      SECURITIES
        ESCROW AGREEMENT, dated as
        of                      
, 2008 (the “Agreement”), by and among CHINA FUNDAMENTAL ACQUISITION
        CORPORATION, a company organized under the laws of the Cayman Islands (the
        “Company”), RALCO CAPITAL LIMITED, RISING YEAR GROUP LIMITED, Q.Y. MA, TAN XIAO
        WEI, OLIVEIRA CAPITAL, LLC, GLOBIS INTERNATIONAL INVESTMENTS LLC, GLOBIS
        CAPITAL
        PARTNERS L.P., GLOBIS OVERSEAS FUND LTD. and CHARDAN CAPITAL MARKETS, LLC
        (collectively, the “Private Investors”) and CONTINENTAL STOCK TRANSFER &
TRUST COMPANY (the “Escrow Agent”). 

       

      WHEREAS,
        the Company has entered into an Underwriting Agreement,
        dated                      
, 2008 (“Underwriting Agreement”), with Chardan Capital Markets, LLC (“Chardan”)
        acting as representative of the several underwriters (the “Underwriters”),
        pursuant to which, among other matters, the Underwriters have agreed to purchase
        3,750,000 units (not including the Underwriters’ overallotment option) (“Units”)
        of the Company. Each Unit consists of one of the Company’s ordinary share,
        $0.001 par value (each, an “Ordinary Share”), and one warrant (“Warrant”), each
        Warrant to purchase one Ordinary Share, all as more fully described in the
        Company’s final Prospectus,
        dated                      
, 2008 (“Prospectus”) comprising part of the Company’s Registration Statement on
        Form F-1 (File No.
        333-                     
) under the Securities Act of 1933, as amended (together, the “Registration
        Statement”), which was declared effective
        on                      
, 2008 (the “Effective Date”); 

      

      WHEREAS,
        certain of the Private Investors have entered into that certain warrant purchase
        agreement, dated as of ______, 2008 (the “Warrant Purchase
        Agreement”);

       

      WHEREAS,
        the Private Investors have agreed as a condition of the Underwriters’ obligation
        to purchase the Units pursuant to the Underwriting Agreement to deposit all
        of
        their Placement Warrants (as defined in the Warrant Purchase Agreement),
        Ordinary Shares (the “Escrow Shares”) and warrants exercisable for Ordinary
        Shares initially issued in December 2007 or acquired in January 2008 (the
        “Escrow Warrants”, and collectively with the Escrow Shares and the Placement
        Warrants, the “Escrow Securities”), as set forth opposite their respective names
        in Exhibit A attached hereto, in escrow as hereinafter provided;
        and

       

      WHEREAS,
        the Company and the Private Investors desire that the Escrow Agent accept
        the
        Escrow Securities, in escrow, to be held and disbursed as hereinafter provided.
        

       

      IT
        IS
        AGREED:

       

      1.
        Appointment of Escrow Agent. The Company and the Private Investors hereby
        appoint the Escrow Agent to act in accordance with and subject to the terms
        of
        this Agreement and the Escrow Agent hereby accepts such appointment and agrees
        to act in accordance with and subject to such terms. 

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      2.
        Deposit of Escrow Securities. On or before the Effective Date, each of the
        Private Investors shall deliver to the Escrow Agent certificates representing
        such Private Investor’s respective Escrow Shares, to be held and disbursed
        subject to the terms and conditions of this Agreement. On or before the
        Effective Date, each of the Private Investors purchasing Placement Warrants
        shall deliver to the Escrow Agent certificates representing such Investor’s
        respective Placement Warrants, to be held and disbursed subject to the terms
        of
        this Agreement. Each Private Investor acknowledges that the certificate(s)
        representing his or her Escrow Securities are legended to reflect the deposit
        of
        such Escrow Securities under this Agreement.

       

      3.
        Disbursement of the Escrow Securities. The Escrow Agent shall (i) hold the
        Escrow Securities, excluding the Placement Warrants, until the earlier of
        2 1⁄2
years from the close of the Company’s initial public offering (“IPO”) or until
        six months after the consummation of a business combination, as described
        in the
        Registration Statement (the “Business Combination”) and (ii) hold the Placement
        Warrants until the earlier of 2 1⁄2 years from the close of the Company’s IPO or
        until the consummation of a Business Combination. The time that the Escrow
        Securities are held in escrow pursuant to this Agreement is referred to herein
        as the (“Escrow Period”). On the expiration of the applicable Escrow Period, the
        Escrow Agent shall, upon written instructions from the Company, disburse
        each of
        the Private Investor’s Escrow Securities to such Private Investor; provided,
        however,
        that if
        the Underwriters do not exercise their over-allotment option in full, up
        to
        140,625 of the Escrow Securities shall be released to the Company upon written
        instruction from the Company; provided,
        further,
        that if
        the Escrow Agent is notified by the Company pursuant to Section 6.7 hereof
        that
        the Company is being liquidated at any time during the Escrow Period, then
        the
        Escrow Agent shall promptly destroy the certificates representing the Escrow
        Securities and, provided further, that if, after the Company consummates
        a
        Business Combination, it (or the surviving entity) subsequently consummates
        a
        liquidation, merger, stock exchange or other similar transaction which results
        in all of its shareholders having the right to exchange their Ordinary Shares
        or
        warrants for cash, securities or other property, then the Escrow Agent will,
        upon consummation of such transaction, release the Escrow Securities to the
        Private Investors so that they can similarly participate. Upon written
        instructions from the Company advising that (i) the extended period, as
        described in the Registration Statement (the “Extended Period”) has been
        approved, or (ii) a Business Combination has been consummated, and that public
        stockholders holding in excess of 35% of the Ordinary Shares issued pursuant
        to
        the Registration Statement exercise the right to redeem their shares for
        cash as
        described in the Registration Statement, the Escrow Agent will release and
        deliver to the Company for cancellation on a pro rata basis certificates
        representing that number of Escrow Securities which results in the Private
        Investors collectively owning no more then 20% of the Company’s outstanding
        Ordinary Shares immediately prior to the consummation of the Business
        Combination after giving effect to the redemption. Such instructions shall
        be
        set forth both the number of shares the Company is redeeming and the number
        of
        Escrow Securities to be delivered to the Company for cancellation. The Escrow
        Agent shall have no further duties hereunder after the disbursement or
        destruction of the Escrow Securities in accordance with this Section 3.

       

      4. Rights
        of
        Private Investors in Escrow Securities. 

       

      4.1
        Voting
        Rights as a Shareholder.
        Subject
        to the terms of the Insider Letter described in Section 4.4 hereof and except
        as
        herein provided, the Private Investors shall retain all of their rights as
        shareholders of the Company during the Escrow Period with respect to the
        Escrow
        Shares, including, without limitation, the right to vote such shares.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      4.2
        Dividends
        and Other Distributions in Respect of the Escrow Shares.
        During
        the Escrow Period, all dividends payable in cash with respect to the Escrow
        Shares shall be paid to the Private Investors, but all dividends payable
        in
        securities or other non-cash property (“Non-Cash Dividends”) shall be delivered
        to the Escrow Agent to hold in accordance with the terms hereof. As used
        herein,
        the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends
        distributed thereon, if any. 

       

      4.3
        Restrictions
        on Transfer.
        Except
        as set forth in Section 3 during the Escrow Period, no sale, transfer or
        other
        disposition may be made of any or all of the Escrow Securities except (i)
        to an
        entity’s beneficiaries upon its liquidation, (ii) to relatives and trusts for
        estate planning purposes, (iii) by virtue of the laws of descent and
        distribution upon death, (iv) pursuant to a qualified domestic relations
        order,
        (v) to existing shareholders and persons affiliated with such persons, or
        (vi)
        by private sales with respect to up to 33% of the existing shareholders’
securities made at or prior to the consummation of a business combination
        at
        prices no greater than the price at which the securities were originally
        purchased, in each case where the transferee agrees to the terms of this
        Agreement; provided, however, that such permissive transfers may be implemented
        only upon the respective transferee’s written agreement to be bound by the terms
        and conditions of this Agreement and of the Insider Letter (as defined below)
        signed by the Private Investor transferring the Escrow Shares. During the
        Escrow
        Period, the Private Investors shall not pledge or grant a security interest
        in
        the Escrow Securities or grant a security interest in their rights under
        this
        Agreement. 

       

      4.4
        Insider
        Letters.
        Except
        for Chardan, each of the Private Investors has executed a letter agreement
        with
        Chardan and the Company, dated of the Effective Date, and which is filed
        as an
        exhibit to the Registration Statement (each, an “Insider Letter”), respecting
        the rights and obligations of such Investor in certain events, including
        but not
        limited to, the liquidation of the Company. 

      

      5. Concerning
        the Escrow Agent. 

      

      5.1
        Good
        Faith Reliance.
        The
        Escrow Agent shall not be liable for any action taken or omitted by it in
        good
        faith and in the exercise of its own best judgment, and may rely conclusively
        and shall be protected in acting upon any order, notice, demand, certificate,
        opinion or advice of counsel (including counsel chosen by the Escrow Agent),
        statement, instrument, report or other paper or document (not only as to
        its due
        execution and the validity and effectiveness of its provisions, but also
        as to
        the truth and acceptability of any information therein contained) which is
        believed by the Escrow Agent to be genuine and to be signed or presented
        by the
        proper person or persons. The Escrow Agent shall not be bound by any notice
        or
        demand, or any waiver, modification, termination or rescission of this Agreement
        unless evidenced by a writing delivered to the Escrow Agent signed by the
        proper
        party or parties and, if the duties or rights of the Escrow Agent are affected,
        unless it shall have given its prior written consent thereto. 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      5.2
        Indemnification.
        The
        Escrow Agent shall be indemnified and held harmless by the Company from and
        against any expenses, including counsel fees and disbursements, or loss suffered
        by the Escrow Agent in connection with any action, suit or other proceeding
        involving any claim which in any way, directly or indirectly, arises out
        of or
        relates to this Agreement, the services of the Escrow Agent hereunder, or
        the
        Escrow Shares held by it hereunder, other than expenses or losses arising
        from
        the gross negligence or willful misconduct of the Escrow Agent. Promptly
        after
        the receipt by the Escrow Agent of notice of any demand or claim or the
        commencement of any action, suit or proceeding, the Escrow Agent shall notify
        the other parties hereto in writing. In the event of the receipt of such
        notice,
        the Escrow Agent, in its sole discretion, may commence an action in the nature
        of interpleader in an appropriate court to determine ownership or disposition
        of
        the Escrow Shares or it may deposit the Escrow Shares with the clerk of any
        appropriate court or it may retain the Escrow Shares pending receipt of a
        final,
        non-appealable order of a court having jurisdiction over all of the parties
        hereto directing to whom and under what circumstances the Escrow Shares are
        to
        be disbursed and delivered. The provisions of this Section 5.2 shall survive
        in
        the event the Escrow Agent resigns or is discharged pursuant to Sections
        5.5 or
        5.6 below. 

       

      5.3
        Compensation.
        The
        Escrow Agent shall be entitled to reasonable compensation from the Company
        for
        all services rendered by it hereunder. The Escrow Agent shall also be entitled
        to reimbursement from the Company for all expenses paid or incurred by it
        in the
        administration of its duties hereunder including, but not limited to, all
        counsel, advisors’ and agents’ fees and disbursements and all taxes or other
        governmental charges. 

       

      5.4
        Further
        Assurances.
        From
        time to time on and after the date hereof, the Company and the Private Investors
        shall deliver or cause to be delivered to the Escrow Agent such further
        documents and instruments and shall do or cause to be done such further acts
        as
        the Escrow Agent shall reasonably request to carry out more effectively the
        provisions and purposes of this Agreement, to evidence compliance herewith
        or to
        assure itself that it is protected in acting hereunder. 

       

      5.5
        Resignation.
        The
        Escrow Agent may resign at any time and be discharged from its duties as
        escrow
        agent hereunder by its giving the other parties hereto written notice and
        such
        resignation shall become effective as hereinafter provided. Such resignation
        shall become effective at such time that the Escrow Agent shall turn over
        to a
        successor escrow agent appointed by the Company and approved by Chardan,
        the
        Escrow Shares held hereunder. If no new escrow agent is so appointed within
        the
        60 day period following the giving of such notice of resignation, the Escrow
        Agent may deposit the Escrow Shares with any court it reasonably deems
        appropriate. 

      

      5.6
        Discharge
        of Escrow Agent.
        The
        Escrow Agent shall resign and be discharged from its duties as escrow agent
        hereunder if so requested in writing at any time by the other parties hereto,
        jointly, provided, however, that such resignation shall become effective
        only
        upon acceptance of appointment by a successor escrow agent as provided in
        Section 5.5. 

       

      5.7
        Liability.
        Notwithstanding anything herein to the contrary, the Escrow Agent shall not
        be
        relieved from liability hereunder for its own gross negligence or its own
        willful misconduct. 

      

      5.8
        Waiver.
        The
        Escrow Agent hereby waives any and all right, title, interest or claim of
        any
        kind (“Claim”) in or to any distribution of the Trust Account (as defined in
        that certain Investment Management Trust Agreement, dated as of the date
        hereof,
        by and between the Company and the Escrow Agent as trustee thereunder), and
        hereby agrees not to seek recourse, reimbursement, payment or satisfaction
        for
        any Claim against the Trust Account for any reason whatsoever.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      6. Miscellaneous.
        

       

      6.1
        Governing
        Law.
        This
        Agreement shall for all purposes be deemed to be made under and shall be
        construed in accordance with the laws of the State of New York. Each of the
        parties hereby agrees that any action, proceeding or claim against it arising
        out of or relating in any way to this Agreement shall be brought and enforced
        in
        the courts of the State of New York or the United States District Court for
        the
        Southern District of New York, and irrevocably submits to such jurisdiction,
        which jurisdiction shall be exclusive. Each of the parties hereby waives
        any
        objection to such exclusive jurisdiction and that such courts represent an
        inconvenient forum. 

       

      6.2
        Third
        Party Beneficiaries.
        Each of
        the Private Investors hereby acknowledges that the Underwriters are third
        party
        beneficiaries of this Agreement and this Agreement may not be modified or
        changed without the prior written consent of Chardan. 

       

      6.3
        Entire
        Agreement.
        This
        Agreement contains the entire agreement of the parties hereto with respect
        to
        the subject matter hereof and, except as expressly provided herein, may not
        be
        changed or modified except by an instrument in writing signed by the party
        to
        the charged. 

       

      6.4
        Headings.
        The
        headings contained in this Agreement are for reference purposes only and
        shall
        not affect in any way the meaning or interpretation thereof. 

       

      6.5
        Binding
        Effect.
        This
        Agreement shall be binding upon and inure to the benefit of the respective
        parties hereto and their legal representatives, successors and assigns.

       

      6.6
        Notices.
        Any
        notice or other communication required or which may be given hereunder shall
        be
        in writing and either be delivered personally or by private national courier
        service, or be mailed, certified or registered mail, return receipt requested,
        postage prepaid, and shall be deemed given when so delivered personally or,
        if
        sent by private national courier service, on the next business day after
        delivery to the courier, or, if mailed, two days after the date of mailing,
        as
        follows:

      

      If
        to the
        Company, to:

       

      China
        Fundamental Acquisition Corporation

      Room
        2301, World-Wide House

      19
        Des
        Voeux Road

      Central,
        Hong Kong

      Attn:
        Chun Yi Hao, Chief Executive Officer

      Fax
        No.:
        852-2169-6390

       

      If
        to a
        Private Investor, to his or her address set forth in Exhibit A. 

       

      and
        if to
        the Escrow Agent, to:

       

      Continental
        Stock Transfer & Trust Company

      17
        Battery Place

      New
        York,
        NY 10004

      Attn:
        Steven Nelson 

      Fax:
        1-212-616-7620

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      A
        copy of
        any notice sent hereunder shall be sent to:

       

      Skadden,
        Arps, Slate, Meagher & Flom LLP

      Izumi
        Garden Tower 21st
        Floor

      1-6-1
        Roppongi

      Minato-ku,
        Tokyo 106-6021, Japan

      Attn:
        Robert G. Wray, Esq.

      Fax:
        81-3-3568-2626 

      

      and

      

      Chardan
        Capital Markets, LLC

      17
        State
        Street, Suite 1600

      New
        York,
        New York 10019

      Attn:
        Kerry Propper

      Fax:
        1-646-465-9039

      

      and

      

      Loeb
        & Loeb LLP 

      345
        Park
        Avenue

      New
        York,
        New York 10154

      Attn:
        Mitchell S. Nussbaum, Esq.

      Fax:
        1-212-407-4990 

       

      The
        parties may change the persons and addresses to which the notices or other
        communications are to be sent by giving written notice to any such change
        in the
        manner provided herein for giving notice. 

      

      6.7
        Liquidation
        of Company.
        The
        Company shall give the Escrow Agent written notification of the liquidation
        and
        dissolution of the Company in the event that the Company fails to consummate
        a
        Business Combination within the time period(s) specified in the Prospectus.
        

       

      6.8
        Counterparts.
        This
        Agreement may be executed in several counterparts each one of which shall
        constitute an original and may be delivered by facsimile transmission and
        together shall constitute one instrument. 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

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

       

      CHINA
        FUNDAMENTAL ACQUISITION CORPORATION 

       

      By:
        ______________________

      Name:
        Chun Yi Hao

      Title:
        Chief Executive Officer

       

       

      PRIVATE
        INVESTORS: 

       

       

      Ralco
        Capital Limited

       

      By:
        ______________________

      Name:

      Title:

      

      

      Rising
        Year Group

      

      

      By:
        ______________________

      Name:

      Title:

      

      

      Globis
        International Investments LLC

      

      

      By:
        ______________________

      Name:

      Title:

      

      

      Globis
        Capital Partners L.P.

      

      

      By:
        ______________________

      Name:

      Title:

      

      

      Globis
        Overseas Fund Ltd.

      

      

      By:
        ______________________

      Name:

      Title:

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      Oliveira
        Capital, LLC

      

      

      By:
        ______________________

      Name:

      Title:

      

      

      ______________________

      Q.Y.
        Ma

      

      

      ______________________

      Tan
        Xiao
        Wei

      

      

      Continental
        Stock Transfer & Trust Company 

       

      By:
        ______________________

      Name:

      Title:

      

      

      Chardan
        Capital Markets, LLC

       

      By:
        ______________________

      Name:

      Title:

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      ESCROW
        SECURITIES DEPOSITED

      BY
        EACH
        INVESTOR

      

      EXHIBIT
        A

       

      
        	
                 

                Name
                  and Address of Private Investors

              	 	
                Number
                  of Escrow Shares

              	 	
                Number
                  of Escrow Warrants

              	 	
                Number
                  of Placement Warrants

              
	 	 	 	 	 	 	 
	
                Ralco
                  Capital Limited

                Room
                  2301, World-Wide House

                19
                  Des Voeux Road

                Central,
                  Hong Kong

              	 	
                489,241

              	 	
                489,241

              	 	
                305,556

              
	 	 	 	 	 	 	 
	
                Rising
                  Year Group Limited

                Room
                  2301, World-Wide House

                19
                  Des Voeux Road

                Central,
                  Hong Kong

              	 	
                487,385

              	 	
                487,385

              	 	
                305,556

              
	 	 	 	 	 	 	 
	
                Oliveira
                  Capital, LLC

                18
                  Fieldstone Court

                New
                  City, New York 10956

              	 	
                45,000

              	 	
                45,000

              	 	
                555,555

              
	 	 	 	 	 	 	 
	
                Q.Y.
                  Ma

                Room
                  2301, World-Wide House

                19
                  Des Voeux Road

                Central,
                  Hong Kong

              	 	
                5,750

              	 	
                5,750

              	 	
                ---

              
	 	 	 	 	 	 	 
	
                Tan
                  Xiao Wei

                Room
                  2301, World-Wide House

                19
                  Des Voeux Road

                Central,
                  Hong Kong

              	 	
                5,750

              	 	
                5,750

              	 	
                ---

              
	 	 	 	 	 	 	 
	
                Globis
                  International Investments LLC

                60
                  Broad Street, 38th
                  Floor

                New
                  York, NY

              	 	
                22,500

              	 	
                22,500

              	 	
                277,778

              
	 	 	 	 	 	 	 
	
                Globis
                  Capital Partners L.P.

                60
                  Broad Street, 38th
                  Floor

                New
                  York, NY

              	 	
                15,750

              	 	
                15,750

              	 	
                194,444

              
	 	 	 	 	 	 	 
	
                Globis
                  Overseas Fund Ltd.

                60
                  Broad Street, 38th
                  Floor

                New
                  York, NY

              	 	
                6,750

              	 	
                6,750

              	 	
                83,333

              
	 	 	 	 	 	 	 
	
                Chardan
                  Capital Markets, LLC

                17
                  State Street, Suite 1600

                New
                  York, New York 10019

              	 	
                ---

              	 	
                ---

              	 	
                222,222

              
	 	 	 	 	 	 	 

      

      

      
        
          
          

        

        
          9Unassociated Document

    
      EXHIBIT
        10.2

       

       

      INVESTMENT
        MANAGEMENT TRUST AGREEMENT

       

      This
        Agreement is made as
        of             
, 2008, by and between China Fundamental Acquisition Corporation (the “Company”)
        whose principal office is located at Room 2301, World-Wide House 19 Des Voeux
        Road Central, Hong Kong and Continental Stock Transfer & Trust Company, (the
“Trustee”) located at 17 Battery Place, New York, New York, U.S.A. 

       

      WHEREAS,
        the Company’s Registration Statement on Form F-1, File No. 333 (“Registration
        Statement”), for its initial public offering (“IPO”) of units (the “Units”) of
        the Company, each Unit consisting of one ordinary share, par value $0.001
        per
        share (the “Ordinary Share”) and one warrant to purchase one Ordinary Share (the
“Warrant”), has been declared effective as of the date hereof (the “Effective
        Date”) by the Securities and Exchange Commission (the “Commission”);

       

      WHEREAS,
        the Company has sold an aggregate of 1,944,444 warrants (the “Private
        Placement Warrants”) in a private placement (the “Placement”) pursuant to the
        Securities Act of 1933, as amended (the “Act”); 

       

      WHEREAS,
        Chardan Capital Markets, LLC (“Chardan”) is acting as the representative for the
        underwriters (the “Underwriters”) in the IPO; 

       

      WHEREAS,
        as described in the Company’s Registration Statement, and in accordance with the
        Company’s Amended and Restated Articles of Association, $30,000,000 of the gross
        proceeds of the IPO, including $1,050,000 in deferred underwriting compensation
        (or $34,500,000 of the net proceeds, including $1,207,500 in deferred
        underwriting compensation, if the Underwriters’ over-allotment option is
        exercised in full) and $1,750,000 of the sale proceeds of the Private Placement
        Warrants will be delivered to the Trustee to be deposited and held in a trust
        account for the benefit of the Company and the holders of the Company’s Ordinary
        Shares issued in the IPO (except as otherwise provided herein) and in the
        event
        the Units are registered in Colorado, pursuant to Section 11-51-302(6) of
        the
        Colorado Revised Statutes (the amount to be delivered to the Trustee will
        be
        referred to herein as the “Property”; the shareholders for whose benefit the
        Trustee shall hold the Property will be referred to as the “Public
        Shareholders,” and the Public Shareholders, the Underwriters, and the Company
        will be referred to together as the “Beneficiaries”); 

       

      WHEREAS,
        pursuant to the Underwriting Agreement, dated as
        of              
, 2008, between the Company and the Underwriters, a portion of the Property
        equal to $1,050,000 ($1,207,500 if the Underwriters’ over-allotment option is
        exercised in full) is attributable to deferred underwriting compensation
        that
        will become payable by the Company to the Underwriters upon the consummation
        of
        a Business Combination (as defined in the Registration Statement) (the “Deferred
        Discount”); and

       

      WHEREAS,
        the Company and the Trustee desire to enter into this Agreement to set forth
        the
        terms and conditions pursuant to which the Trustee shall hold the
        Property;

       

      IT
        IS
        AGREED:

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.
        Agreements and Covenants of Trustee. The Trustee is hereby appointed to serve
        as
        Trustee hereunder, and the Trustee hereby agrees to act as Trustee upon the
        terms and conditions set forth herein. The Trustee hereby agrees and covenants
        to: 

      

      (a)
        Hold
        the Property in trust for the Beneficiaries in accordance with the terms
        of this
        Agreement, including, without limitation, the terms of Section 11-51-302(6)
        of
        the Colorado Revised Statutes in segregated trust account(s) (“Trust Account”)
        established by the Trustee at the London Branch of JPMorgan Chase Bank, N.A.
        and
        at a brokerage institution selected by the Company and agreed to by the
        Trustee;

       

      (b)
        Manage, supervise and administer the Trust Account subject to the terms and
        conditions set forth herein;

       

      (c)
        In a
        timely manner, upon the written instruction of the Company, to invest and
        reinvest the Property in any “Government Security.” As used herein, Government
        Security means any Treasury Bill issued by the United States, having a maturity
        of 180 days or less or any open ended investment company selected by the
        Company
        and registered under the Investment Company Act of 1940 that holds itself
        out as
        a money market fund meeting the conditions of paragraphs (c)(2), (c)(3),
        and
        (c)(4) under Rule 2a-7 promulgated under the Investment Company Act of 1940,
        as
        determined by the Company;

       

      (d)
        Collect and receive, when due, all principal and income arising from the
        Property, which shall become part of the “Property,” as such term is used
        herein;

       

      (e)
        Notify the Company of all communications received by it with respect to any
        Property requiring action by the Company;

       

      (f)
        Supply any necessary information or documents as may be requested by the
        Company
        in connection with the Company’s preparation of the tax returns for the Trust
        Account or the Company;

       

      (g)
        Participate in any plan or proceeding for protecting or enforcing any right
        or
        interest arising from the Property if, as and when instructed by the Company
        to
        do so;

       

      (h)
        Render to the Company, and to such other person as the Company may instruct,
        monthly written statements of the activities of and amounts in the Trust
        Account
        reflecting all receipts and disbursements of the Trust Account; 

       

      (i)
        As of
        the date of the consummation of a business combination (“Business Combination”)
        or the vote of the Company’s Board of Directors to liquidate and dissolve the
        Company, commence liquidation of the Trust Account upon receipt of the Officers’
Certificate signed by the Chief Executive Officer or President in accordance
        with the terms of a letter (“Termination Letter”), in a form substantially
        similar to that attached hereto as Exhibit A or Exhibit B, signed on behalf
        of
        the Company by its Chief Executive Officer and President, and complete the
        liquidation of the Trust Account and distribute the Property in the Trust
        Account only as directed in the Termination Letter and the other documents
        referred to therein. The Trustee understands and agrees that disbursements
        from
        the Trust Account shall be made only pursuant to a duly executed Termination
        Letter, together with the other documents referenced herein, including, without
        limitation, an independently certified oath and report of inspector of election
        in respect of the shareholder vote in favor of the Business Combination or
        certified resolutions of the Company’s Board of Directors, as
        applicable;

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (j)
        In
        accordance with the instructions contained in the Termination Letter, as
        of the
        date 18 months from the date of this Agreement (the “LOI Termination Date”), or
        24 months from the date hereof in the event the Company has executed the
        Letter
        of Intent (defined below) prior to the LOI Termination Date but failed to
        consummate a Business Combination (“Second Termination Date”), or 36 months from
        the date hereof in the event the Company’s shareholders have voted to increase
        the amount of time available to the Company to consummate a Business Combination
        (“Third Termination Date”), commence liquidation of the Trust Account. The
        Trustee, upon receipt of written instructions from the Company, shall deliver
        a
        notice to Public Shareholders of record as of the LOI Termination Date, Second
        Termination Date or Third Termination Date, whichever the case may be, by
        U.S.
        mail or via the Depository Trust Company (“DTC”), within five days of the LOI
        Termination Date, Second Termination Date or Third Termination Date, to notify
        the Public Shareholders of such event and take such other actions as it may
        deem
        necessary to inform the Beneficiaries. The Trustee shall deliver to each
        Public
        Shareholder its ratable share of the Property against satisfactory evidence
        of
        delivery of the share certificates by the Public Shareholders to the Company
        through DTC, its Deposit Withdraw Agent Commission (DWAC) system or as otherwise
        presented to the Trustee; provided, however, that in the event that a
        Termination Letter has not been received by the LOI Termination Date, the
        Second
        Termination Date or the Third Termination Date, whichever the case may be,
        the
        Trust Account shall be liquidated as part of the Company’s plan of dissolution
        and distribution approved by the Company’s Public Shareholders in accordance
        with the procedures set forth in the Termination Letter to the shareholders
        of
        record on the record date; provided, further, that the record date shall
        be
        within ten (10) days of the LOI Termination Date, the Second Termination
        Date or
        Third Termination Date, whichever the case may be, or as soon thereafter
        as is
        practicable. Notwithstanding the foregoing, (i) if the Trustee receives a
        bona
        fide, executed letter of intent or engagement letter (the “Letter of Intent”)
        for a Business Combination prior to the LOI Termination Date, accompanied
        by an
        Officers’ Certificate as described in paragraph 3(e) hereof, then the Trustee
        shall forego or suspend any liquidation of the Trust Account until the earlier
        of a Business Combination or the Second Termination Date, and (ii) if, prior
        to
        the Second Termination Date, the Trustee receives a certified copy of the
        results of a meeting of the Company’s shareholders pursuant to which the
        Company’s shareholders extended the time available to the Company to consummate
        a Business Combination to the Third Termination Date, accompanied by an
        Officers’ Certificate as described in paragraph 3(e) hereof, then the Trustee
        shall forego or suspend any liquidation of the Trust Account until the earlier
        of a Business Combination or the Third Termination Date; and

       

      (k)
        The
        distribution, if any, of the Deferred Discount to the Underwriters upon the
        liquidation of the Trust Account as provided herein shall be made from the
        Trust
        Account through the Trustee (and not through the Company) in accordance with
        a
        written instruction of the Company.

       

      2.
        Limited Distributions of Income on Property.

       

      (a)
        If
        there is any income or other tax obligation owed by the Company, as determined
        by the Company, then, from time to time, at the written instruction of the
        Company and a statement of the principal financial officer of the Company
        setting forth the actual amount payable (the “Tax Amount”), the Trustee shall
        promptly distribute to the Company the Tax Amount; provided, however, that
        the
        aggregate amounts distributed pursuant to this Section 2(a) and 2(b) below
        may
        not at any time cause the amount in the Trust Account to fall below the amount
        initially deposited into the Trust Account.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (b)
        Upon
        one or more written requests from the Company, which may be given not more
        than
        once in any calendar month period, the Trustee shall distribute to the Company
        interest earned on the Trust Account, net of taxes payable, up to a maximum
        of
        $850,000. The distributions requested by the Company may be for any amount,
        provided that (i) in the aggregate, all distributions under this paragraph
        2(b)
        may not exceed $850,000 (subject to the limitation imposed by paragraph 2(a)
        and
        (ii) that such distributions may only be made if and to the extent that interest
        has been earned and collected, net of taxes, on the amount initially deposited
        into the Trust Account; and

       

      (c)
        Except as provided in this Section 2, no other distributions from the Trust
        Account shall be permitted except in accordance with Sections 1(i) and (j)
        hereof.

      

      (d)
        It is
        agreed that the trustee's only obligation under this section is to follow
        the
        instructions of the Company.

       

      3.
        Agreements and Covenants of the Company. The Company hereby agrees and
        covenants:

       

      (a)
        To
        give all instructions to the Trustee hereunder in writing, signed by the
        Company’s Chief Executive Officer or President. In addition, except with respect
        to its duties under paragraph 1(i) and (j) above, the Trustee shall be entitled
        to rely on, and shall be protected in relying on, any verbal or telephonic
        advice or instruction which it in good faith believes to be given by any
        one of
        the persons authorized above to give written instructions; provided, however,
        that the Company shall promptly confirm such instructions in
        writing;

       

      (b)
        To
        hold the Trustee harmless and indemnify the Trustee from and against, any
        and
        all expenses, including reasonable counsels’ fees and disbursements, or loss
        suffered by the Trustee in connection with any action, suit or other proceeding
        brought against the Trustee involving any claim, or in connection with any
        claim
        or demand which in any way arises out of or relates to this Agreement, the
        services of the Trustee hereunder, or the Property or any income earned from
        investment of the Property, except for expenses and losses resulting from
        the
        Trustee’s gross negligence or willful misconduct. Promptly after the receipt by
        the Trustee of notice of demand or claim or the commencement of any action,
        suit
        or proceeding, pursuant to which the Trustee intends to seek indemnification
        under this paragraph, it shall notify the Company in writing of such claim
        (hereinafter referred to as the “Indemnified Claim”). The Trustee shall have the
        right to conduct and manage the defense against such Indemnified Claim,
        provided, that the Trustee shall obtain the consent of the Company with respect
        to the selection of counsel, which consent shall not be unreasonably withheld.
        The Trustee
        may not agree to settle any Indemnified Claim without the prior written consent
        of the Company, which consent shall not be unreasonably withheld. The
        Company may participate in such action with its own counsel; 

       

      (c)
        To
        pay the Trustee an initial acceptance fee, an annual fee and a transaction
        processing fee for each disbursement made pursuant to Sections 2(a) and 2(b)
        as
        set forth on Schedule A hereto, which fees shall be subject to modification
        by
        the parties from time to time. It is expressly understood that the Property
        shall not be used to pay such fees
        and
        further agreed that said transaction processing fees shall be deducted by
        the
        Trustee from the disbursements made to the Company pursuant to Section
        2(b).
        The
        Company shall pay the Trustee the initial acceptance fee and first year’s fee at
        the consummation of the IPO and thereafter on the anniversary of the Effective
        Date. The Trustee shall refund to the Company the fee (on a pro rata basis)
        with
        respect to any period after the liquidation of the Trust Fund. The Company
        shall
        not be responsible for any other fees or charges of the Trustee except as
        may be
        provided in Section 2(b) hereof (it being expressly understood that the Property
        shall not be used to make any payments to the Trustee under such
        section);

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (d)
        That,
        in the event that the Company consummates a Business Combination and the
        Trust
        Account is liquidated in accordance with Section 1(i) or (j) hereof, an
        independent party designated by Chardan shall act as the inspector of election
        to certify the results of the shareholder vote and the Public Shareholder
        vote;

       

      (e)
        That
        the Company’s Chief Executive Officer and President shall certify (i) prior to
        the LOI Termination Date that (A) the Company has entered into a Business
        Combination; (B) the Company has entered into a Letter of Intent or definitive
        agreement relating to a Business Combination; or (C) that the Company’s Board of
        Directors has determined to liquidate the Company; (ii) prior to the Second
        Termination Date that (A) the Company has entered into a Business Combination;
        (B) the Company’s shareholders voted to extend the time period available to the
        Company to consummate a Business Combination to the Third Termination Date;
        or
        (C) that the Company’s Board of Directors has determined to liquidate the
        Company; and (iii) prior to the Third Termination Date that (A) the Company
        has
        entered into a Business Combination; or (B) that the Company’s Board of
        Directors has determined to liquidate the Company. A copy of any applicable
        consents, actions of shareholders, Letter of Intent or definitive agreement
        shall be attached as exhibits to the Officer’s Certificate;

       

      (f)
        In
        connection with any vote of the Company’s shareholders regarding a Business
        Combination, to provide to the Trustee an affidavit or certificate (the
“Report”) of a firm regularly engaged in the business of soliciting proxies and
        tabulating shareholder votes verifying the vote of the Company’s shareholders
        and Public Shareholders regarding such Business Combination. Such Report
        shall
        be attached as an exhibit to the Termination Letter, as applicable;

       

      (g)
        Within five (5) business days after the Underwriters’ over-allotment option (or
        any unexercised portion thereof) expires or its exercise in full, to provide
        the
        Trustee notice in writing (with a copy to the Underwriters) of the total
        amount
        of the Deferred Discount, which shall in no event be less than $1,050,000;
        and

       

      (h)
        As
        soon as practicable after the LOI Termination Date, Second Termination Date
        or
        Third Termination Date, as applicable, to instruct the Trustee to commence
        liquidation of the Trust Account as part of the Company’s plan of dissolution
        and liquidation. 

      

      (i) Provide
        the Underwriters with a copy of any Termination Letters and/or any other
        correspondence that it issues to the Trustee with respect to any proposed
        withdrawal from the Trust Account promptly after it issues same.

       

      4.
        Limitations of Liability. The Trustee shall have no responsibility or liability
        to:

       

      
        (a)
          Imply
          obligations, perform duties, inquire or otherwise be subject to the provisions
          of any agreement or document other than this agreement and that which is
          expressly set forth herein;

      

       

      (b)
        Take
        any action with respect to the Property, other than as directed in Section
        1 and
        2 hereof and the Trustee shall have no liability to any party except for
        liability arising out of its own gross negligence or willful
        misconduct;

       

      (c)
        Institute any proceeding for the collection of any principal and income arising
        from, or institute, appear in or defend any proceeding of any kind with respect
        to, any of the Property unless and until it shall have received written
        instructions from the Company given as provided herein to do so and the Company
        shall have advanced or guaranteed to it funds sufficient to pay any expenses
        incident thereto;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (d)
        Change the investment of any Property, other than in compliance with Section
        1(c);

       

      (e)
        Refund any depreciation in principal of any Property;

       

      (f)
        Assume that the authority of any person designated by the Company to give
        instructions hereunder shall not be continuing unless provided otherwise
        in such
        designation, or unless the Company shall have delivered a written revocation
        of
        such authority to the Trustee;

       

      (g)
        The
        Company or to anyone else for any action taken or omitted by it, or any action
        suffered by it to be taken or omitted, in good faith and in the exercise
        of its
        own best judgment, except for its gross negligence or willful misconduct.
        The
        Trustee may rely conclusively and shall be protected in acting upon any order,
        notice, demand, certificate, opinion or advice of counsel (including counsel
        chosen by the Trustee), statement, instrument, report or other paper or document
        (not only as to its due execution and the validity and effectiveness of its
        provisions, but also as to the truth and acceptability of any information
        therein contained) which is believed by the Trustee, in good faith, to be
        genuine and to be signed or presented by the proper person or persons. The
        Trustee shall not be bound by any notice or demand, or any waiver, modification,
        termination or rescission of this Agreement or any of the terms hereof, unless
        evidenced by a written instrument delivered to the Trustee signed by the
        proper
        party or parties and, if the duties or rights of the Trustee are affected,
        unless it shall give its prior written consent thereto;

       

      (h)
        Prepare, execute and file tax reports, income or other tax returns and pay
        any
        taxes with respect to income and activities relating to the Trust Account,
        regardless of whether such tax is payable by the Trust Account or the Company
        (including but not limited to income tax obligations), it being expressly
        understood that as set forth in Section 2(a), if there is any income or other
        tax obligation relating to the Trust Account or the Property in the Trust
        Account, as determined from time to time by the Company and regardless of
        whether such tax is payable by the Company or the Trust, at the written
        instruction of the Company, the Trustee shall make funds available in cash
        from
        the Property in the Trust Account an amount specified by the Company as owing
        to
        the applicable taxing authority, which amount shall be paid directly to the
        Company by electronic funds transfer, account debit or other method of payment,
        and the Company shall forward such payment to the taxing authority;
        and

       

      (i)
        Verify calculations, qualify or otherwise approve Company requests for
        distributions pursuant to Section 2.

       

      5.
        No
        Right of Set-Off. The Trustee waives any right of set-off or any right, title,
        interest or claim of any kind that the Trustee may have against the Property
        held in the Trust Account. In the event that the Trustee has a claim against
        the
        Company under this Agreement, including, without limitation, under paragraph
        4(c), the Trustee will pursue such claim solely against the Company and not
        against the Property held in the Trust Account.

      

      6.
        Termination. This Agreement shall terminate as follows:

       

      (a)
        If
        the Trustee gives written notice to the Company that it desires to resign
        under
        this Agreement, the Company shall use its reasonable efforts to locate a
        successor trustee during which time the Trustee shall continue to act in
        accordance with the terms of this Agreement. At such time that the Company
        notifies the Trustee that a successor trustee has been appointed by the Company
        and has agreed to become subject to the terms of this Agreement, the Trustee
        shall transfer the management of the Trust Account to the successor trustee,
        including but not limited to the transfer of copies of the reports and
        statements relating to the Trust Account, whereupon this Agreement shall
        terminate; provided, however, that, in the event that the Company does not
        locate a successor trustee within ninety days of receipt of the resignation
        notice from the Trustee, the Trustee may submit an application to have the
        Property deposited with the United States District Court for the Southern
        District of New York and upon such deposit, the Trustee shall be immune from
        any
        liability whatsoever; or

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (b)
        At
        such time that the Trustee has completed the liquidation of the Trust Account
        in
        accordance with the provisions of Section 1(i) or 1(j) hereof, and distributed
        the Property in accordance with the provisions of the Termination Letter,
        this
        Agreement shall terminate.

       

      7.
        Miscellaneous.

       

      (a)
        The
        Company and the Trustee each acknowledge that the Trustee will follow the
        security procedures set forth below with respect to funds transferred from
        the
        Trust Account. The Company and the Trustee will each restrict access to
        confidential information relating to such security procedures to authorized
        persons. Each party must notify the other party immediately if it has reason
        to
        believe unauthorized persons may have obtained access to such information,
        or of
        any change in its authorized personnel. In executing funds transfers, the
        Trustee will rely upon all identifying information provided to it by the
        Company, including name and account number of a beneficiary, beneficiary's
        bank
        or intermediary bank. The Trustee shall not be liable for any loss, liability
        or
        expense resulting from any error in an account number or other identifying
        information.

       

      (b)
        This
        Agreement shall be governed by and construed and enforced in accordance with
        the
        laws of the State of New York, without giving effect to conflict of laws.
        It may
        be executed in several counterparts, each one of which shall constitute an
        original, and together shall constitute but one instrument.

       

      (c)
        This
        Agreement contains the entire agreement and understanding of the parties
        hereto
        with respect to the subject matter hereof. This Agreement or any provision
        hereof may be changed, waived, amended or modified only by a writing signed
        by
        each of the parties hereto, provided,
        however,
        that no
        such amendment or modification (other than to correct a typographical or
        similar
        technical error) may be made to paragraphs 1, 2, 3(e), 3(f), 4, 5, 6, 7(c)
        or to
        Exhibits A, B or C hereof without the consent of the Public Shareholders,
        it
        being the specific intention of the parties hereto that each Public Shareholder
        is and shall be a third-party beneficiary of this paragraph 7(c) with the
        same
        right and power to enforce this paragraph 7(c) as either of the parties hereto,
        and provided,
        further, that
        this
        Agreement may not be changed, waived, amended or modified in such a manner
        as to
        adversely affect the right of the Underwriters to receive the Deferred Discount
        as contemplated herein without the written consent of Chardan. For purposes
        of
        this paragraph 7(c), the “consent of the Public Shareholders” shall mean receipt
        by the Trustee of a certificate from an entity certifying that (i) such entity
        regularly engages in the business of serving as inspector of elections for
        companies whose securities are publicly traded, and (ii) either (a) 80% of
        the
        Public Shareholders of record as of a record date established in accordance
        with
        Cayman Islands Law, have voted in favor of such amendment or modification
        or (b)
        80% of the Public Shareholders of record as of a record date established
        in
        accordance with Cayman Islands Law have delivered to such entity a signed
        writing approving such amendment or modification. As to any claim, cross-claim
        or counterclaim in any way relating to this Agreement, each party waives
        the
        right to trial by jury.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (d)
        The
        parties hereto consent to the jurisdiction and venue of any state or federal
        court located in the City of New York for purposes of resolving any disputes
        hereunder. The parties hereto irrevocably submit to such jurisdiction, which
        jurisdiction shall be exclusive, and hereby waive any objection to such
        exclusive jurisdiction and accept such venue, and waive any objection that
        such
        courts represent an inconvenient forum.

       

      (e)
        Any
        notice, consent or request to be given in connection with any of the terms
        or
        provisions of this Agreement shall be in writing and shall be sent by express
        mail or similar private courier service, by certified mail (return receipt
        requested), by hand delivery or by facsimile transmission:

       

      if
        to the
        Trustee, to:

       

       

      Continental
        Stock Transfer & Trust Company

      17
        Battery Park

      8th
        Floor

      New
        York,
        New York 10004

      Attn:
        Steven Nelson 

      Fax:
        (212) 616-7620

      

       

      if
        to the
        Company, to:

       

      China
        Fundamental Acquisition Corp.

      Room
        2301, World-Wide House

      19
        Des
        Voeux Road Central, Hong Kong

      Attn:
        Chun Yi Hao

      Fax
        No.:
        852-2169-6390

       

      in
        either
        case with a copy to:

       

      Chardan
        Capital Markets, LLC

      17
        State
        Street

      Suite
        1600

      New
        York,
        NY 10004

      Attn:
        Kerry Propper

      Fax
        No.:
        1-646-465-9039

       

      Skadden,
        Arps, Slate, Meagher & Flom LLP

      Izumi
        Garden Tower 21st
        Floor

      1-6-1
        Roppongi, Minato-ku,

      Tokyo
        106-6021

      Attn:
        Robert G. Wray

      Fax
        No:
        81-3-3568-2626

       

      and

       

      Loeb
        & Loeb LLP

      345
        Park
        Avenue

      New
        York,
        New York 10154

      Attn:
        Mitchell S. Nussbaum

      Fax
        No: 1
        (212) 407-4990

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (f)
        This
        Agreement may not be assigned by the Trustee without the prior consent of
        the
        Company and Chardan.

       

      (g)
        Each
        of the Trustee and the Company hereby represents that it has the full right
        and
        power and has been duly authorized to enter into this Agreement and to perform
        its respective obligations as contemplated hereunder. The Trustee acknowledges
        and agrees that it shall not make any claims or proceed against the Trust
        Account, including by way of set-off, and shall not be entitled to any funds
        in
        the Trust Account under any circumstance.

       

      (h)
        The
        Trustee acknowledges and agrees that it is the specific intention of the
        parties
        hereto that the Underwriters are and shall be third-party beneficiaries of
        the
        provisions of this Agreement pertaining to the Deferred Discount (including
        Paragraph 7(c)) and the Trustee’s obligations under this Agreement with respect
        thereto (but solely of those provisions and solely with respect to such
        obligations of the Trustee) with the same right and power to enforce those
        provisions as either of the parties hereto.

      

      [Signature
        page to follow]

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties have duly executed this Investment Management
        Trust
        Agreement as of the date first written above.

       

      CONTINENTAL
        STOCK TRANSFER & TRUST

      COMPANY,
        as Trustee 

       

       

      By:_______________________________
        

      Name:
        Steven G. Nelson

      Title:
        President and Chairman of the Board

      

       

      CHINA
        FUNDAMENTAL ACQUISITION

      CORPORATION
        

       

       

      By:_______________________________
        

      Name:
        Chun Yi Hao     

      Title:
        Chief Executive Officer   

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        A

       

      Schedule
        of fees pursuant to Section 3(c) of Investment Management Trust
        Agreement

      between
        China Fundamental Acquisition Corporation and 

      Continental
        Stock Transfer & Trust Company

      

      
        	
                Fee
                  Item

              	
                Time
                  and method of payment 

              	
                Amount

              
	
                Initial
                  acceptance fee

              	
                Initial
                  closing of IPO by wire transfer 

              	
                $1,000

              
	
                Annual
                  fee

              	
                First
                  year, initial closing of IPO by wire transfer; thereafter on the
                  anniversary of the effective date of the IPO by wire transfer or
                  check

              	
                $3,000

              
	
                Transaction
                  processing fee for disbursements to Company under Sections 2(a)
                  and
                  2(b)

              	
                Deduction
                  by Trustee from disbursement made to Company under Section
                  2(b)

              	
                $250

              

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      [LETTERHEAD
        OF COMPANY]

      

      [INSERT
        DATE]

      

      

      Continental
        Stock Transfer & Trust Company

      17
        Battery Place 

      8th
        Floor

      New
        York,
        New York 10004 

      Attn:
        Steven G. Nelson, President

       

      Re:
        Trust
        Account No. [____________] Business Combination Letter

       

      Gentlemen:

       

      Pursuant
        to the Investment Management Trust Agreement between China Fundamental
        Acquisition Corporation (“Company”) and Continental Stock Transfer & Trust
        Company (“Trustee”), dated as of _____________, 2008 (“Trust Agreement”), this
        is to advise you that the Company has entered into an agreement (“Business
        Agreement”) with _____________ (“Target Business”) to consummate a business
        combination with Target Business (“Business Combination”) on or about [INSERT
        DATE]. The Company shall notify you at least 24 hours in advance of the actual
        date of the consummation of the Business Combination (“Consummation
        Date”).

       

      In
        accordance with the terms of the Trust Agreement, we hereby authorize you
        to
        commence liquidation of the Trust Account to the effect that, on the
        Consummation Date, all of the funds held in the Trust Account will be
        immediately available for transfer to the account or accounts that the Company
        shall direct on the Consummation Date.

       

      On
        the
        Consummation Date (i) counsel for the Company shall deliver to you written
        notification that (a) the Business Combination has been consummated and (b)
        the
        provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado Revised
        Statutes have been met and (ii) the Company shall deliver to you written
        instructions with respect to the transfer of the funds held in the Trust
        Account
        (“Instruction Letter”). You are hereby directed and authorized to transfer the
        funds held in the Trust Account, including, pursuant to the terms of the
        Underwriting Agreement, dated as of [__], 2008, between the Company and Chardan
        Capital Markets, LLC, as representative for the underwriters, the portion
        of the
        Property attributable to the Deferred Discount (as defined in the Trust
        Agreement), immediately upon your receipt of the counsel’s letter and the
        Instruction Letter, in accordance with the terms of the Instruction Letter.
        In
        the event that certain deposits held in the Trust Account may not be liquidated
        by the Consummation Date without penalty, you will notify the Company of
        the
        same and the Company shall direct you as to whether such funds should remain
        in
        the Trust Account and be distributed after the Consummation Date to the Company.
        Upon the distribution of all the funds in the Trust Account pursuant to the
        terms hereof, the Trust Agreement shall be terminated.

      

      In
        the
        event that the Business Combination is not consummated on the Consummation
        Date
        described in the notice thereof and we have not notified you on or before
        the
        original Consummation Date of a new Consummation Date, then upon the Trustee’s
        receipt of written instruction from the Company, the funds held in the Trust
        Account shall be reinvested as provided in the Trust Agreement on the business
        day immediately following the Consummation Date as set forth in the
        notice.

       

      Very
        truly yours, 

       

      CHINA
        FUNDAMENTAL ACQUISITION CORPORATION 

       

       

      By:
        

      ___________________________________
        

      Name:
        Chun Yi Hao     

      Title:
        Chief Executive Officer    

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        B

      

      [LETTERHEAD
        OF COMPANY]

      

      [INSERT
        DATE]

      

      

      Continental
        Stock Transfer & Trust Company

      17
        Battery Place 

      8th
        Floor

      New
        York,
        New York 10004 

      Attn:
        Steven G. Nelson

       

      Re:
        Trust
        Account No. [____________] Termination Letter

       

      Gentlemen:

       

      Pursuant
        to paragraph 1(i) of the Investment Management Trust Agreement between China
        Fundamental Acquisition Corporation (“Company”) and Continental Stock Transfer
& Trust Company (“Trustee”), dated as of _______________, 2008 (“Trust
        Agreement”), this is to advise you that the Board of Directors of the Company
        has voted to dissolve and liquidate the Company. Attached hereto is a copy
        of
        the minutes of the meeting of the Board of Directors of the Company relating
        thereto, certified by the Secretary of the Company as true and correct and
        in
        full force and effect.

       

      In
        accordance with the terms of the Trust Agreement, we hereby (a) certify to
        you
        that the provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado
        Revised Statutes have been met and (b) authorize you, to commence liquidation
        of
        the Trust Account. You will notify the Company and
        [           ] (“Designated
        Paying Agent”) in writing as to when all of the funds in the Trust Account will
        be available for immediate transfer (“Transfer Date”). The Designated Paying
        Agent shall thereafter notify you as to the account or accounts of the
        Designated Paying Agent that the funds in the Trust Account should be
        transferred to on the Transfer Date so that the Designated Paying Agent may
        commence distribution of such funds in accordance with the Company’s
        instructions. You shall have no obligation to oversee the Designated Paying
        Agent’s distribution of the funds. Upon the payment to the Designated Paying
        Agent of all the funds in the Trust Account, the Trust Agreement shall be
        terminated.

       

      Very
        truly yours, 

       

      CHINA
        FUNDAMENTAL ACQUISITION CORPORATION 

       

       

      By:
        

      _____________________________________
        

      Name:
        Chun Yi Hao 

      Title:
        Chief Executive Officer  

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        C

      

      AUTHORIZED
        INDIVIDUAL(S)

      

      

      
        	COMPANY:	
                China
                  Fundamental Acquisition Corporation

              

      

       

      Chun
        Yi
        Hao 

      Telephone:
        852-9273-4618

      

      Hope
        Ni

      Telephone:
        852-9187-0025

       

      
        	TRUSTEE:	
                Continental
                  Stock Transfer & Trust Company

              

      

      17
        Battery Place

      8th
        Floor

      New
        York,
        New York 10004

      Attn:
        Steven Nelson

      Telephone:
        1 (212) 845-3270

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