Document:

Unassociated Document

    

      THE
        WARRANT EVIDENCED HEREBY, AND THE SECURITIES ISSUABLE HEREUNDER, HAVE BEEN
        AND
        SHALL BE ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, OR THE APPLICABLE STATE SECURITY LAWS. THE WARRANT AND SUCH SECURITIES
        HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR
        RESALE,
        AND SHALL NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS THE PROPOSED
        DISPOSITION IS THE SUBJECT OF A CURRENTLY EFFECTIVE REGISTRATION STATEMENT
        UNDER
        SAID ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR UNLESS THE COMPANY
        HAS
        RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY
        TO
        THE COMPANY, TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SAID
        ACT
        AND SUCH STATE SECURITIES LAWS IN CONNECTION WITH SUCH DISPOSITION.

       

      SIONIX
        CORPORATION

       

      COMMON
        STOCK PURCHASE WARRANT

       

      Original
        Issue Date: _____________

      Void
        After: [six year anniversary of Original Issue Date]

       

       

      This
        Warrant is Issued to

      ____________________________________

       

       

      (hereinafter
        called the “Holder,”
which
        term shall include the Holder’s legal representatives, heirs, successors and
        assigns), by Sionix Corporation, a Nevada corporation (hereinafter referred
        to
        as the “Company”).
        This
        Warrant may be transferred by the Holder only in accordance with the provisions
        of Section 12.

       

      1. Exercise
        of Warrant.
        For
        value received and subject to the terms and conditions hereinafter set forth,
        the Holder is entitled, upon surrender of this Warrant at any time on or
        after
        [Original Issue Date] and on or prior to [six year anniversary of Original
        Issue
        Date] (the “Exercise
        Date”)
        (with
        the subscription form annexed hereto (the “Subscription
        Form”)
        duly
        executed) at the office of the Company at 2082 Michelson Drive, Suite 304,
        Irvine, CA 92612, or such other office in the United States of which the
        Company
        shall notify the Holder hereof in writing, to purchase from the Company,
        at the
        purchase price hereinafter specified (as adjusted from time to time, the
        “Exercise
        Price”),
        ________ shares (the “Warrant
        Shares”)
        (as
        adjusted from time to time) of the Common Stock, $0.001 par value per share,
        of
        the Company (the “Common
        Stock”).
        The
        initial Exercise Price shall be $0.40 per share.

       

      2. Issuance
        of Stock Certificates.
        As
        promptly as practicable, but not later than three (3) Business Days, after
        surrender of this Warrant and receipt of payment of the Exercise Price, the
        Company shall issue and deliver to the Holder a certificate or certificates
        for
        the shares purchased hereunder, in certificates of such denominations and
        in
        such names as the Holder may specify. As
        used
        herein, “Business
        Day”
means
        any
        day
        that is not a Saturday, Sunday, or legal holiday in the State of New York
        when
        commercial banking institutions are required to be closed.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3. Payment
        of Exercise Price.
        Payment
        of the Exercise Price shall be made by check made payable to the order of
        the
        Company or wire transfer of funds to a bank account designated by the Company.
        

       

      4. Cashless
        Exercise.
        Notwithstanding anything contained herein to the contrary, provided that
        a
        registration statement pursuant to the Securities Act of 1933, as amended
        (the
“Securities
        Act”)
        covering the resale of the Warrant Shares that are the subject of the
        Subscription Form by the Holder (the “Unavailable
        Warrant Shares”)
        is not
        available for the resale of such Unavailable Warrant Shares, the Holder may
        notify the Company in a Subscription Form of its election to utilize cashless
        exercise, in which event the Company shall issue to the Holder the number
        of
        Warrant Shares determined as follows (a “Cashless
        Exercise”):

       

      X
        = Y
        [(A-B)/A]

       

      where:

       

      X
        = the
        number of Warrant Shares to be issued to the Holder.

       

      Y
        = the
        number of Warrant Shares with respect to which this Warrant is being
        exercised.

       

      A
        = the
        average of the closing prices for the five trading days immediately prior
        to
        (but not including) the Exercise Date.

       

      B
        = the
        Exercise Price.

       

      For
        purposes of Rule 144 promulgated under the Securities Act, it is intended,
        understood and acknowledged that the Warrant Shares issued in a cashless
        exercise transaction shall be deemed to have been acquired by the Holder,
        and
        the holding period for the Warrant Shares shall be deemed to have commenced,
        on
        the date this Warrant was originally issued.

       

      5. Limitation
        on Exercise.
        Notwithstanding anything to the contrary contained herein, the number of
        Warrant
        Shares that may be acquired by the Holder upon any exercise of this Warrant
        (or
        otherwise in respect hereof) shall be limited to the extent necessary to
        insure
        that, following such exercise (or other issuance), the total number of shares
        of
        Common Stock then beneficially owned by such Holder and its affiliates and
        any
        other persons whose beneficial ownership of Common Stock would be aggregated
        with the Holder’s for purposes of Section 13(d) of the Securities Exchange Act
        of 1934, as amended (the “Exchange
        Act”),
        does
        not exceed 4.999% of the total number of issued and outstanding shares of
        Common
        Stock (including for such purpose the shares of Common Stock issuable upon
        such
        exercise). For such purposes, beneficial ownership shall be determined in
        accordance with Section 13(d) of the Exchange Act and the rules and regulations
        promulgated thereunder.

       

      
        
          
          

        

        
          -
            2 -

          
            

          

        

        
          
          

        

      

       

      6. Adjustment
        for Dividends, Distributions, Subdivisions, Combinations, Mergers,
        Consolidations or Sale of Assets.

       

      6.1 Manner
        of Adjustment.

       

      (a) Stock
        Dividends, Distributions or Subdivisions.
        In the
        event the Company shall issue shares of Common Stock in a stock dividend,
        stock
        distribution or subdivision, the Exercise Price in effect immediately before
        such stock dividend, stock distribution or subdivision shall, concurrently
        with
        the effectiveness of such stock dividend, stock distribution or subdivision,
        be
        proportionately decreased and the number of shares of Common Stock purchasable
        by exercise of this Warrant shall be proportionately increased.

       

      (b) Combinations
        or Consolidations.
        In the
        event the outstanding shares of Common Stock shall be combined or consolidated,
        by reclassification or otherwise, into a lesser number of shares of Common
        Stock, the Exercise Price in effect immediately prior to such combination
        or
        consolidation shall, concurrently with the effectiveness of such combination
        or
        consolidation, be proportionately increased and the number of shares of Common
        Stock purchasable by exercise of this Warrant shall be proportionately
        decreased.

       

      (c) Adjustment
        for Reclassification, Exchange or Substitution.
        In the
        event that the class of securities issuable upon the exercise of this Warrant
        shall be changed into the same or a different number of shares of any class
        or
        classes of stock, whether by capital reorganization, reclassification or
        otherwise (other than any event addressed by Sections 6.1(a),
        6.1(b)
        or
6.1(d)),
        then
        and in each such event the Holder shall have the right thereafter to exercise
        this Warrant for the kind and amount of shares of stock and other securities
        and
        property receivable upon such reorganization, reclassification, or other
        change,
        by holders of the number of shares of the class of securities into which
        such
        Warrant might have been exercisable for immediately prior to such
        reorganization, reclassification, or change, all subject to further adjustment
        as provided herein.

       

      (d) Adjustment
        for Merger, Consolidation or Sale of Assets.
        In the
        event that the Company shall merge or consolidate with or into another entity
        or
        sell all or substantially all of its assets, this Warrant shall thereafter
        be
        exercisable for the kind and amount of shares of stock or other securities
        or
        property to which a holder of the number of shares of Common Stock of the
        Company deliverable upon exercise of this Warrant would have been entitled
        upon
        such consolidation, merger or sale; and, in such case, appropriate adjustment
        (as determined in good faith by the Company’s Board of Directors) shall be made
        in the application of the provisions set forth in this Section 6
        with
        respect to the rights and interest thereafter of the Holder of this Warrant,
        to
        the end that the provisions set forth in this Section 6
        shall
        thereafter be applicable, as nearly as reasonably may be, in relation to
        any
        shares of stock or other property thereafter deliverable upon the exercise
        of
        this Warrant.

       

      6.2 Certificate
        as to Adjustments.
        Upon
        the occurrence of each adjustment or readjustment of the Exercise Price pursuant
        to this Section 6,
        the
        Company at its expense shall promptly compute such adjustment or readjustment
        in
        accordance with the terms hereof and furnish to the Holder a certificate
        setting
        forth such adjustment or readjustment and showing in detail the facts upon
        which
        such adjustment or readjustment is based. 

       

      
        
          
          

        

        
          -
            3 -

          
            

          

        

        
          
          

        

      

       

      6.3 Closing
        of Books.
        The
        Company shall at no time close its transfer books against the transfer of
        any
        shares of Common Stock issued or issuable upon the exercise of this Warrant
        in
        any manner which interferes with the timely and proper issuance of such
        shares.

       

      7. Covenants
        of the Company.
        During
        the period within which the rights represented by this Warrant may be exercised,
        but not sooner than the date when the Company obtains shareholder approval
        of an
        increase in its authorized shares as provided in the Securities Purchase
        Agreement and in accordance with applicable federal securities laws, the
        Company
        shall at all times have authorized and reserved for the purpose of issue
        upon
        exercise of the rights evidenced hereby, a sufficient number of shares of
        the
        class of securities issuable upon exercise of this Warrant to provide for
        the
        exercise of such rights. All securities which may be issued upon the exercise
        of
        the rights represented by this Warrant shall, upon issuance, be duly authorized,
        validly issued, fully paid and non-assessable and free from all taxes, liens
        and
        charges with respect to the issue thereof. Upon surrender for exercise, this
        Warrant shall be canceled and shall not be reissued; provided,
        however,
        that
        upon the partial exercise hereof a substitute Warrant of like tenor and date
        representing the rights to subscribe for and purchase any such unexercised
        portion hereof shall be issued.

       

      8. No
        Rights as Shareholder Until Exercise.
        This
        Warrant shall not entitle the Holder to any voting rights or any other rights
        as
        a stockholder of the Company but upon presentation of this Warrant with the
        Subscription Form duly executed and the tender of payment of the Exercise
        Price
        at the office of the Company pursuant to the provisions of this Warrant,
        the
        Holder shall forthwith be deemed a stockholder of the Company in respect
        of the
        securities for which the Holder has so subscribed and paid.

       

      9. No
        Change Necessary.
        The
        form of this Warrant need not be changed because of any adjustment in the
        Exercise Price or in the number of shares issuable upon its exercise. A Warrant
        issued after any adjustment or any partial exercise or upon replacement may
        continue to express the same Exercise Price and the same number of shares
        (appropriately reduced in the case of partial exercise) as are stated on
        this
        Warrant as initially issued, and that Exercise Price and that number of shares
        shall be considered to have been so changed as of the close of business on
        the
        date of adjustment.

       

      10. Addresses
        for Notices.
        All
        notices, requests, consents and other communications hereunder shall be in
        writing, either delivered in hand or mailed by registered or certified mail,
        return receipt requested, or sent by facsimile, or sent by electronic mail
        either in the text of an email message or attached in a commonly readable
        format, and shall be deemed to have been duly made when delivered:

       

      (a) If
        to the
        Holder, to the Holder’s address as shown on the books of the Company;
        or

       

      (b) If
        to the
        Company, to the address set forth on the first page of this
        Warrant.

       

      11. Substitution.
        In the
        case this Warrant shall be mutilated, lost, stolen or destroyed, the Company
        shall issue a new Warrant of like tenor and denomination and deliver the
        same
        (a) in exchange and substitution for and upon surrender and cancellation of
        any mutilated Warrant, or (b) in lieu of any Warrant lost, stolen or
        destroyed, upon receipt of evidence satisfactory to the Company of the loss,
        theft, or destruction of such Warrant (including, without limitation, a
        reasonably detailed affidavit with respect to the circumstances of any loss,
        theft or destruction), and of indemnity (or, in the case of the initial Holder
        or any other institutional holder, an indemnity agreement) satisfactory to
        the
        Company.

       

      
        
          
          

        

        
          -
            4 -

          
            

          

        

        
          
          

        

      

       

      12. Transfer
        Restrictions.
        This
        Warrant shall not be transferable by the Holder and shall be exercisable
        only by
        the Holder. Without the prior written consent of the Company, the Warrant
        shall
        not be assigned, pledged or hypothecated in any way (whether by operation
        of law
        or otherwise) and shall not be subject to execution, attachment or similar
        process. Any attempted transfer, assignment, pledge, hypothecation or other
        disposition of the Warrant or of any rights granted hereunder contrary to
        the
        provisions of this Section 12, or the levy of any attachment or similar process
        upon the Warrant or such rights, shall be null and void.

       

      13. Taxes.
        The
        Company makes no representation about tax treatment to the Holder with respect
        to receipt or exercise of the Warrant or acquiring, holding or disposing
        of the
        Common Stock, and the Holder represents that the Holder has had the opportunity
        to discuss such treatment with the Holder’s tax advisers. 

       

      14. Remedies.
        Each
        party stipulates that the remedies at law in the event of any default or
        threatened default by the other party in the performance or compliance with
        any
        of the terms of this Warrant are and shall not be adequate, and that such
        terms
        may be specifically enforced by a decree for that specific performance of
        any
        agreement contained herein or by an injunction against a violation of any
        of the
        terms hereof or otherwise.

       

      15. Governing
        Law.
        This
        Warrant shall be construed and enforced in accordance with, and governed
        by, the
        laws of the State of New York without regard to its principles of conflicts
        of
        laws.

       

      16. Miscellaneous.
        This
        Warrant and any term hereof may be changed, waived, discharged or terminated
        only by an instrument in writing signed by the Holder and the
        Company.

       

       

      [Remainder
        of page intentionally left blank.]

       

      
        
          
          

        

        
          -
            5 -

          
            

          

        

        
          
          

        

      

      

        Common
          Stock Purchase Warrant

      

      

      *
        * *

       

      IN
        WITNESS WHEREOF, the parties have caused this Warrant to be executed this
        ___
        day of ________, _____.

       

      
        	 	
                SIONIX
                  CORPORATION

                

                

                By:                                                            
                  

                Name:
                   Richard
                  H. Papalian

                Title:
                  Chief Executive Officer

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SUBSCRIPTION
        FORM

       

      (To
        be Executed by the Holder

      in
        Order to Exercise the Warrant)

       

      Date:
        ____________________

      

      
        	
                To:

              	
                Sionix
                  Corporation

              

      

      
        	 	
                2082
                  Michelson Drive, Suite 304

              

      

      
        	 	
                Irvine,
                  CA 92612

              

      

      

      The
        undersigned, pursuant to the provisions set forth in the attached Warrant
        hereby
        irrevocably elects to purchase _____ shares of the Common Stock (the
“Common
        Stock”)
        covered by such Warrant and herewith makes payment of $_________, representing
        the [full/partial] purchase price for such shares at the price per share
        provided for in such Warrant.

       

      The
        undersigned hereby agrees to take such other action and execute and deliver
        such
        other documents as Sionix Corporation may require, in connection with the
        issue
        of shares of Common Stock to the undersigned as aforesaid, in order to comply
        with the provisions of such Warrant.

       

      The
        undersigned is aware that the Common Stock has not been registered under
        the
        Securities Act of 1933, as amended (the “Act”)
        or any
        state securities laws. The undersigned understands that the reliance by the
        Company on exemptions under the Act is predicated in part upon the truth
        and
        accuracy of the statements of the undersigned in this Subscription
        Form.

       

      The
        undersigned represents and warrants that (1) it has been furnished with all
        information which it deems necessary to evaluate the merits and risks of
        the
        purchase of the Common Stock; (2) it has had the opportunity to ask questions
        concerning the Common Stock and the Company and all questions posed have
        been
        answered to its satisfaction; (3) it has been given the opportunity to obtain
        any additional information it deems necessary to verify the accuracy of any
        information obtained concerning the Common Stock and the Company; and (4)
        it has
        such knowledge and experience in financial and business matters that it is
        able
        to evaluate the merits and risks of purchasing the Common Stock and to make
        an
        informed investment decision relating thereto.

       

      The
        undersigned hereby represents and warrants that it is purchasing the Common
        Stock for its own account and not with a view to the sale or distribution
        of all
        or any part of the Common Stock.

       

      The
        undersigned understands that because the Common Stock has not been registered
        under the Act, it must continue to bear the economic risk of the investment
        for
        an indefinite time and the Common Stock cannot be sold unless the Common
        Stock
        is subsequently registered under applicable federal and state securities
        laws or
        an exemption from such registration is available.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      The
        undersigned agrees that it shall in no event sell or distribute or otherwise
        dispose of all or any part of the Common Stock unless (1) there is an effective
        registration statement under the Act and applicable state securities laws
        covering any such transaction involving the Common Stock or (2) the Company
        receives an opinion of legal counsel to the undersigned (concurred in by
        legal
        counsel for the Company) stating that such transaction is exempt from
        registration or the Company otherwise satisfies itself that such transaction
        is
        exempt from registration.

       

      The
        undersigned consents to the placing of a legend on its certificate for the
        Common Stock stating that the Common Stock has not been registered and setting
        forth the restriction on transfer contemplated hereby and to the placing
        of a
        stop transfer order on the books of the Company and with any transfer agents
        against the Common Stock until the Common Stock may be legally resold or
        distributed without restriction.

       

      The
        undersigned has considered the federal and state income tax implications
        of the
        exercise of the Warrant and the purchase and subsequent sale of the Common
        Stock.

      

      

        
          	 	  

	 	
                  Signature

                
	 	 	 	 
	 	 	 	 
	 	
                  Print
                    name: 

                	  

	 	 	 	 
	 	 	 	 
	 	
                  Date:
                    

                	  

        

      

      

      
        
          
          

        

        
          -
            2 -Unassociated Document

     

    LOAN
      AND SECURITY AGREEMENT

     

    Asia
      Special Situation Acquisition Corp.

    PO
      Box
      309 GT

    Ugland
      House South Church Street 

    George
      Town E9 00000

    (Hereinafter
      referred to as "Borrower") 

    

    Wachovia
      Bank, National Association

    301
      South
      College Street

    One
      Wachovia Center, NC 0600

    Charlotte,
      North Carolina 28288

    (Hereinafter
      referred to as the "Bank")

    

    This
      Loan
      Agreement ("Agreement") is entered into February 28, 2008, by and between Bank
      and Borrower.

    

    This
      Agreement applies to the loan or loans (individually and collectively, the
      "Loan") evidenced by a promissory note of even date herewith, as modified from
      time to time (the "Note") and all Loan Documents. The terms “Default”, "Loan
      Documents" and "Obligations," as used in this Agreement, are defined in the
      Note. “Collateral”, “Trust” and “Trust Agreement” are defined in attached
Schedule
      1.

    

    Relying
      upon the covenants, agreements, representations and warranties contained in
      this
      Agreement, Bank is willing to extend credit to Borrower upon the terms and
      subject to the conditions set forth herein, and Bank and Borrower agree as
      follows:

    

    ADVANCES. Subject
      to and upon the terms and conditions contained herein, Bank agrees to make
      revolving loans to Borrower from time to time in amounts requested by Borrower
      up to the amount equal to the Revolving Loan Limit, with such revolving loans
      to
      be evidenced by the Note. “Revolving Loan Limit” means $500,000.00. The
      aggregate amount outstanding under the Note shall at no time exceed the
      Revolving Loan Limit. In the event that the aggregate amount of the loans
      outstanding at any time exceeds the Revolving Loan Limit, such event shall
      not
      limit, waive or otherwise affect any rights of Bank in such circumstances or
      on
      any future occasions and Borrower shall, within one business day repay to Bank
      the entire amount of any such excess so that the aggregate amount of loans
      outstanding is less than the Revolving Loan Limit.

    

    SECURITY
      INTEREST. To
      secure
      the prompt payment in full when due, whether by lapse of time, acceleration,
      mandatory prepayment or otherwise, and performance of the Obligations, Borrower
      hereby grants to Bank a continuing security interest in the Collateral. In
      addition, except as prohibited by law, Borrower grants Bank a security interest
      in all of Borrower's accounts with Bank and any of Bank’s affiliates.
      Notwithstanding the foregoing, Bank
      expressly waives any claim or right to assert a claim against the assets or
      property of the Trust and will not seek repayment of the Loan or pursue other
      recourse against the Trust or any of its assets or property.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    REPRESENTATIONS.
      Borrower
      represents that from the date of this Agreement and until final payment in
      full
      of the Obligations: Accurate
      Information.
      All
      information and reports now and hereafter furnished to Bank are and will be
      true, correct and complete in all material respects as of the date(s) of any
      such information or reports, as the case may be. Any such information and
      reports relating to Borrower's financial condition will accurately reflect
      Borrower's financial condition as of the date(s) of any such information or
      reports, as the case may be (including all contingent liabilities of every
      type). Authorization;
      Non-Contravention.
      The
      execution, delivery and performance by Borrower of this Agreement and other
      Loan
      Documents to which it is a party are within its power, have been duly authorized
      as may be required and, if necessary, by making appropriate filings with any
      governmental agency or unit and are the legal, binding, valid and enforceable
      obligations of Borrower and do not (i) contravene, or constitute (with or
      without the giving of notice or lapse of time or both) a violation of any
      provision of applicable law, a violation of the organizational documents of
      Borrower, or a default under any agreement, judgment, injunction, order, decree
      or other instrument binding upon or affecting Borrower, (ii) result in the
      creation or imposition of any lien (other than any lien(s) created by the Loan
      Documents) on any of Borrower's assets, or (iii) give cause for the acceleration
      of any obligations of Borrower to any other creditor. Discharge
      of Liens and Taxes.
      Borrower
      has duly filed, paid and/or discharged all taxes or other claims that may become
      a lien on any of its property or assets, except to the extent that such items
      are being appropriately contested in good faith and an adequate reserve for
      the
      payment thereof is being maintained. Sufficiency
      of Capital.
      Borrower
      is not, and after consummation of this Agreement and after giving effect to
      all
      indebtedness incurred and liens created by Borrower in connection with the
      Note
      and any other Loan Documents, will not be, insolvent within the meaning of
      11
      U.S.C. § 101, as in effect from time to time. Compliance
      with Laws.
      Except
      where non-compliance does not and could not reasonably be expected to have
      a
      material adverse effect on the business, financial position, results of
      operations, properties or prospects of Borrower (a “Material Adverse Effect”),
      Borrower and any subsidiary and affiliate of Borrower is in compliance in all
      material respects with all federal, state and local laws, rules and regulations
      applicable to its properties, operations, business, and finances, including,
      without limitation, any federal or state laws relating to liquor (including
      18
      U.S.C. § 3617, et seq.) or narcotics (including 21 U.S.C. § 801, et seq.) and/or
      any commercial crimes; all applicable federal, state and local laws and
      regulations intended to protect the environment; and the Employee Retirement
      Income Security Act of 1974, as amended ("ERISA"), if applicable. None of
      Borrower, or any subsidiary or affiliate of Borrower is a Sanctioned Person
      or
      has any of its assets in a Sanctioned Country or does business in or with,
      or
      derives any of its operating income from investments in or transactions with,
      Sanctioned Persons or Sanctioned Countries in violation of economic sanctions
      administered by OFAC. The proceeds from the Loan will not be used to fund any
      operations in, finance any investments or activities in, or make any payments
      to, a Sanctioned Person or a Sanctioned Country. “OFAC” means the U.S.
      Department of the Treasury’s Office of Foreign Assets Control. “Sanctioned
      Country” means a country subject to a sanctions program identified on the list
      maintained by OFAC and available at
      http://www.treas.gov/offices/enforcement/ofac/sanctions/, or as otherwise
      published from time to time. “Sanctioned Person” means (i) a person named on the
      list of Specially Designated Nationals or Blocked Persons maintained by OFAC
      available at http://www.treas.gov/offices/enforcement/ofac/sdn/, or as otherwise
      published from time to time, or (ii) (A) an agency of the government of a
      Sanctioned Country, (B) an organization controlled by a Sanctioned Country,
      or
      (C) a person resident in a Sanctioned Country to the extent subject to a
      sanctions program administered by OFAC. Organization
      and Authority.
      Borrower
      is duly created, validly existing and in good standing under the laws of its
      jurisdiction of organization, and has all powers, governmental licenses,
      authorizations, consents and approvals required to operate its business as
      now
      conducted and to enter into the Loan Documents. No governmental approval or
      filings are necessary in order for Borrower to execute, deliver and perform
      the
      Loans Documents. Borrower is duly qualified, licensed and in good standing
      in
      each jurisdiction where qualification or licensing is required by the nature
      of
      its business or the character and location of its property, business or
      customers, and in which the failure to so qualify or be licensed, as the case
      may be, in the aggregate, could have a Material Adverse Effect. Security
      Interest.
      Bank has
      a first priority perfected security interest in the Collateral, free and clear
      of any adverse claims and there are no prohibitions or restrictions that impair
      the ability of the Borrower to grant a security interest in the Collateral.
      Indemnity.
      Borrower
      will indemnify Bank and its affiliates (each, an “Indemnified Party”) from and
      against any losses, liabilities, claims, damages, penalties or fines imposed
      upon, asserted or assessed against or incurred by Bank arising out of the
      inaccuracy or breach of
      any of
      the representations contained in this Agreement or any other Loan Documents;
      provided, however, that no such indemnity shall be available to the Indemnified
      Party if such losses, liabilities, claims, damages, penalties or fine which
      gave
      rise to such indemnification claim were caused by or resulted from the gross
      negligence or willful misconduct of any Indemnified Party. 

    

    AFFIRMATIVE
      COVENANTS. Borrower
      agrees that from the date hereof
      and until
      final
      payment in full of the Obligations, unless Bank shall otherwise consent in
      writing, Borrower will:  Maintenance
      and Access to Books and Records.
      Maintain, at all times, in all material respects, correct and complete books,
      records and accounts in which complete, correct and timely entries are made
      of
      its transactions in accordance with GAAP and allow Bank, or its agents, during
      normal business hours, upon reasonable advance notice, access to the books,
      records and such other documents of Borrower as Bank shall reasonably require,
      and allow Bank, at Borrower’s expense, during normal business hours and upon
      reasonable advance notice, to inspect, audit and examine the same and to make
      extracts therefrom and to make copies thereof. Compliance
      with Agreements.
      Comply
      in all material respects with all terms and conditions contained in this
      Agreement and the other Loan Documents. Estoppel
      Certificate.
      Furnish,
      within 15 days after request by Bank, a written statement duly acknowledged
      of
      the amount due under the Loan and whether offsets or defenses exist against
      the
      Obligations. Insurance.
      Maintain adequate insurance coverage with respect to its properties and business
      against loss or damage of the kinds and in the amounts customarily insured
      against by companies of established reputation engaged in the same or similar
      businesses. Notice
      of Default and Other Notices.
      (a)
Notice
      of Default.
      Furnish
      to Bank immediately upon a senior officer of Borrower becoming aware of the
      existence of any condition or event which constitutes a Default or any event
      which, upon the giving of notice or lapse of time or both, may become a Default,
      written notice specifying the nature and period of existence thereof and the
      action which Borrower is taking or proposes to take with respect thereto. (b)
      Other
      Notices.
      Promptly
      notify Bank in writing of: (i) any material adverse change in its financial
      condition or its business; (ii) any default under any material agreement,
      contract or other instrument to which it is a party or by which any of its
      properties are bound, or any acceleration of the maturity of any indebtedness
      owing by Borrower; (iii) any material adverse claim against or affecting
      Borrower or any part of its properties; (iv) the commencement of, and any
      determination in, any litigation with any third party or any proceeding before
      any governmental agency or unit which could reasonably be expected to have
      a
      material adverse effect on Bank, Borrower’s ability to perform its obligations
      under the Loan Documents or on Borrower or any of its business, assets,
      financial condition, or operations; (v) at least 30 days prior thereto, any
      change in Borrower's name or address as shown above, and/or any change in
      Borrower's structure; and (vi) within 3 business days thereof, any proposed
      material change in Borrower’s accounting policy, which change shall be approved
      by Bank, except for any such change that is required by GAAP. Other
      Financial Information.
      Deliver
      promptly such other information regarding the operation, business affairs,
      and
      financial condition of Borrower which Bank may reasonably request. Reports
      and Proxies.
      Deliver
      to Bank, promptly, a copy of all financial statements, material reports,
      material notices, and all regular or periodic material reports required to
      be
      filed by Borrower with any governmental agency or authority. Collateral
      Disbursements and Maintenance of Account.
      With
      respect to all funds that represent Collateral, Borrower shall cause such funds
      to be directed exclusively to a designated operating account (Asia Special
      Situations Acquisition Corp. ACCT# 64912751) (the “Collateral Account”)
      maintained at Bank. Without limiting the foregoing, upon accumulation of funds
      in the Trust of at least $115,000,000, Borrower shall cause any and all interest
      and dividend income generated with respect to the Trust in which Borrower has
      rights, title or interest (up to a maximum aggregate amount of $2,000,000),
      to
      be directed and deposited into the Collateral Account. The Collateral Account
      shall not be closed nor shall Collateral disbursements directed to any other
      account or person without the prior written consent of Bank.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    SETOFF
      AND SWEEPS.
      In
      addition to any other rights and remedies of Bank, Bank and its affiliates
      are
      authorized at any time and from time to time, without prior notice to Borrower,
      any such notice being waived by Borrower to the fullest extent permitted by
      applicable law, to set off and apply any and all deposits (general or special,
      time or demand, provisional or final) at any time held by Bank and its
      affiliates (including, without limitation, with respect to deposits held in
      the
      Collateral Account) to or for the credit of the account of Borrower against
      any
      and all Obligations owing to Bank hereunder or under any other Loan Documents,
      including the Note, now or hereafter existing, irrespective of whether or not
      Borrower has made demand under this Agreement or any other Loan Document. Bank
      shall periodically (no less often than monthly, but not before June 1, 2008)
      sweep the Collateral Account and apply the proceeds of such collections toward
      then due and outstanding Obligations. Notwithstanding the foregoing, the
      provisions of this paragraph shall not apply to any investments made by the
      Bank
      or by any Affiliate of the Bank for or on behalf of the Trust or any proceeds
      or
      profits of such investments except to the extent such investments or proceeds
      constitute Collateral, and any rights of set off or application of deposits
      contemplated by this paragraph shall apply only to the Collateral.

    

    NEGATIVE
      COVENANTS. Borrower
      agrees that from the date hereof
      and
      until final payment in full of the Obligations, unless Bank shall otherwise
      consent in writing, Borrower will not:  Encumbrances.
      Create,
      incur, assume, or suffer to exist, or permit any Subsidiary of Borrower to
      create, incur, or suffer to exist, any mortgage, security deed, deed of trust,
      pledge, lien, charge or other encumbrance on the Collateral, other than security
      interests required by the Loan Documents and Permitted Liens (as defined in
      Schedule
      2). Loan
      Uses.
      Use
      Loan proceeds for any illegal purpose or use Loan proceeds to purchase or carry
      margin stock as defined by Regulation U of the Federal Reserve Board or
      refinance indebtedness in such a manner so as to create “purpose” credit under
      Regulation U. Cross
      Default.
      Default
      in payment or performance of any obligation under any other loans, material
      contracts or other material agreements of Borrower, any Subsidiary or Affiliate
      of Borrower ("Affiliate" shall have the meaning as defined in 11 U.S.C.
§ 101, as in effect from time to time, except that the term "Borrower"
      shall be substituted for the term "Debtor" therein; "Subsidiary" shall mean
      any
      corporation of which more than 50% of the issued and outstanding voting stock
      is
      owned directly or indirectly by Borrower), any general partner of or the
      holder(s) of the majority ownership interests of Borrower with Bank or its
      affiliates. Default
      on Other Contracts or Obligations.
      Default
      on any material contract with or obligation when due to a third party or default
      in the performance of any obligation to a third party incurred for money
      borrowed in an amount in excess of $100,000.00.
      Government
      Intervention.
      Permit
      the assertion or making of any seizure, vesting or intervention by or under
      authority of any governmental entity, as a result of which the management of
      Borrower is displaced of its authority in the conduct of its respective business
      or such business is curtailed or materially impaired. Judgment
      Entered.
      Permit
      the entry of any monetary judgment or the assessment against, the filing of
      any
      tax lien against, or the issuance of any writ of garnishment or attachment
      against any property of or debts due Borrower in an amount in excess of
$100,000.00
      which is not discharged or execution is not stayed within 30 days of entry.
      Trust
      Agreement.
      Amend
      the Trust Agreement (as defined in Schedule
      1)
      to
      limit, assign or otherwise modify any right to distributions or disbursements
      constituting Collateral. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    CONDITIONS
      PRECEDENT.
      The
      obligations of Bank to make the loan and any future advances pursuant to this
      Agreement and the Note are subject to the following conditions precedent: 
Due
      Diligence. Completion
      by Bank of periodic due diligence on Borrower, including completion of periodic
      background checks on Borrower’s management and employees. Payments.
      Payment
      of all amounts due to Bank and its counsel. Additional
      Documents.
      Receipt
      by Bank of such additional supporting documents as Bank or its counsel may
      request from time to time, including, without limitation, Borrower’s
      organizational documents and secretary’s or member certificate, as applicable.
Opinion
      of Counsel.
      On or
      prior to the date of any extension of credit hereunder, Bank may request a
      written opinion of the counsel (or counsels) of Borrower acceptable to Bank
      (subject to customary assumptions and qualifications) that includes confirmation
      of the following: (a) This Agreement and other Loan Documents to which Borrower
      is a party has been duly executed and delivered by Borrower and constitute
      the
      legal, valid and binding obligations of Borrower, enforceable in accordance
      with
      their terms; (b) No registration with, consent of, approval of, or other action
      by, any federal, state or other governmental authority or regulatory body is
      required by law in connection with the execution and delivery of this Agreement
      and the other Loan Documents, or the extension of credit under this Agreement
      or
      the other Loan Documents, or, if so required, such registration has been made,
      and such consent or approval given or such other appropriate action taken;
      (c)
      The loan is not usurious under the laws of the State of New York; (d) Upon
      the
      filing of Uniform Commercial Code financing statements with the appropriate
      filing office(s), the Loan Documents will create a perfected lien on or security
      interest in the Collateral that is contemplated by the Loan Documents.
 Additional
      Conditions.
      The
      obligation of Bank to make any advance,
      including the initial advance,
      is subject to the further satisfaction of, or waiver of, immediately prior
      to or
      concurrently with the making of each such advance each of the following
      conditions: (i) all representations and warranties contained herein and in
      the
      other Loan Documents shall be true and correct with the same effect as though
      such representations and warranties had been made on and as of the date of
      the
      making of each such loan and after giving effect thereto, except to the extent
      that such representations and warranties expressly relate solely to an earlier
      date (in which case such representations and warranties shall have been true
      and
      accurate on and as of such earlier date); (ii) no law, regulation, order,
      judgment or decree of any governmental authority shall exist, and no action,
      suit, investigation, litigation or proceeding shall be pending or threatened
      in
      any court or before any arbitrator or governmental authority, which purports
      to
      enjoin, prohibit, restrain or otherwise affect (A) the making of the loans,
      or
      (B) the consummation of the transactions contemplated pursuant to the terms
      hereof or the other Loan Documents, and (iii) no Default shall exist or have
      occurred and be continuing on and as of the date of the making of such loan
      and
      after giving effect thereto.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    FINANCIAL
      AND OTHER INFORMATION.
      Borrower
      shall deliver to Bank such information as Bank may reasonably request from
      time
      to time, including without limitation, financial statements and information
      pertaining to Borrower's financial condition. Such information shall be true,
      complete, and accurate in all material respects.

    

    WAIVERS
      AND AMENDMENTS.
      No
      waivers, amendments or modifications of this Agreement and other Loan Documents
      shall be valid unless in writing and signed by an officer of Bank. No waiver
      by
      Bank of any Default shall
      operate as a waiver of any other Default or the same Default on a future
      occasion. Neither the failure nor any delay on the part of Bank in exercising
      any right, power, or remedy under this Agreement and other Loan Documents shall
      operate as a waiver thereof, nor shall a single or partial exercise thereof
      preclude any other or further exercise thereof or the exercise of any other
      right, power or remedy.

     

    MISCELLANEOUS
      PROVISIONS. Assignment.
      This
      Agreement and the other Loan Documents shall inure to the benefit of and be
      binding upon the parties and their respective heirs, legal representatives,
      successors and assigns. Bank's interests in and rights under this Agreement
      and
      the other Loan Documents are freely assignable, in whole or in part, by Bank.
      In
      addition, nothing in this Agreement or any of the other Loan Documents shall
      prohibit Bank from pledging or assigning this Agreement or any of the other
      Loan
      Documents or any interest therein to any Federal Reserve Bank. Borrower shall
      not assign its rights and interest hereunder without the prior written consent
      of Bank, and any attempt by Borrower to assign without Bank's prior written
      consent is null and void. Any assignment shall not release Borrower from the
      Obligations. Applicable
      Law; Conflict
      Between Documents.
      This
      Agreement and, unless otherwise provided in any other Loan Document, the other
      Loan Documents shall be governed by and construed under
      the
      laws of the State of New York. If the terms of this Agreement should conflict
      with the terms of any loan agreement or any commitment letter that survives
      closing, the terms of this Agreement shall control. Jurisdiction.
      Borrower
      irrevocably agrees to non-exclusive personal jurisdiction in the State of New
      York. Severability.
      If any
      provision of this Agreement or of the other Loan Documents shall be prohibited
      or invalid under applicable law, such provision shall be ineffective but only
      to
      the extent of such prohibition or invalidity, without invalidating the remainder
      of such provision or the remaining provisions of this Agreement or other such
      document. Notices.
      Any
      notices to Borrower shall be sufficiently given, if in writing and mailed or
      delivered to the Borrower's address shown above or such other address as
      provided hereunder, and to Bank, if in writing and mailed or delivered
      to
      Wachovia
      Bank, National Association, 301 South College Street, One Wachovia Center,
      Mail
      Code: NC 0600; Charlotte, North Carolina 28288, Attention: Douglas
      Booth;
      Fax:
      704-383-1539 or
      such
      other address as Bank may specify in writing from time to time. Notices
      to Bank must include the mail code. In
      the
      event that Borrower changes Borrower's address at any time prior to the date
      the
      Obligations are paid in full, Borrower agrees to promptly give written notice
      of
      said change of address by registered or certified mail, return receipt
      requested, all charges prepaid. Plural;
      Captions.
      All
      references in the Loan Documents to Borrower, guarantor, person, document or
      other nouns of reference mean both the singular and plural form, as the case
      may
      be, and the term "person" shall mean any individual, person or entity. The
      captions contained in the Loan Documents are inserted for convenience only
      and
      shall not affect the meaning or interpretation of the Loan Documents.
Posting
      of Payments.
      All
      payments received during normal banking hours after 2:00 p.m. local time at
      the office of Bank first shown above shall be deemed received at the opening
      of
      the next banking day. Fees
      and Taxes.
      Borrower
      shall promptly pay all documentary, intangible recordation and/or similar taxes
      on this transaction whether assessed at closing or arising from time to time.
      LIMITATION
      ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH
      OF
      THE PARTIES HERETO, INCLUDING BANK BY ACCEPTANCE HEREOF, AGREES THAT IN ANY
      JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY
      BETWEEN OR AMONG THEM THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH
      THIS
      AGREEMENT, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR
      AMONG THEM OR THE OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT
      SHALL ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT,
      SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. EACH
      OF
      THE PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY
      DAMAGES THEY MAY HAVE OR WHICH MAY ARISE IN THE FUTURE IN CONNECTION WITH ANY
      SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER THE SAME IS RESOLVED BY
      ARBITRATION, MEDIATION, JUDICIALLY OR OTHERWISE. Patriot
      Act Notice. To
      help
      fight the funding of terrorism and money laundering activities, Federal law
      requires all financial institutions to obtain, verify, and record information
      that identifies each person who opens an account. For purposes of this section,
      account shall be understood to include loan accounts. Final
      Agreement. This
      Agreement and the other Loan Documents represent the final agreement between
      the
      parties and may not be contradicted by evidence of prior, contemporaneous or
      subsequent oral agreements of the parties. There are no unwritten oral
      agreements between the parties.

    

    Signature
      Page Follows

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      Borrower and Bank, on the day and year first written above, have caused this
      Agreement to be executed.

    

    
      	 	
              Borrower

            
	 	 
	 	
              ASIA
                SPECIAL SITUATION ACQUISITION CORP.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Gary T. Hirst

            
	 	
              Name:

            	
              Gary
                T. Hirst

            
	 	
              Title:

            	
              President

            

    

    

    
      	 	 	 
	 	Bank
	 	 	 
	 	WACHOVIA
              BANK, NATIONAL ASSOCIATION
	 	 	 
	 	 	 
	 	By:	
              
                /s/
                  Gary Brathe

              

            
	 	Name:	
              
                Gary
                  Brathe

              

            
	 	Title:
              	
              
                Senior
                  Vice President

              

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              State
                of ______________________

            
	
              City/County
                of _________________

            

    

    

     

    Company
      Acknowledgment

     

    

    I
      certify
      that before me appeared this day _____________, a person known to me, who after
      being sworn stated he is the ___________of Asia
      Special Situation Acquisition Corp., a company formed under the laws of the
      Cayman Islands, and
      is
      duly authorized to act on behalf of said Company, and being informed of the
      contents thereof, acknowledged execution of the foregoing instrument on behalf
      of said Company. 

    

    Witness
      my hand and official seal, this _____ day of _______________, 2008.

    

    
      	 	
              _________________________________,
                Notary Public

            
	
              Notary
                Seal

            	 
	 	
              __________________________________________

            
	 	
              (Printed
                Name of Notary)

            
	 	 
	 	
              My
                Commission Expires:
                ______________________

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    State
      of
      North Carolina

    County
      of
      _________________

     

    Bank
      Acknowledgment

    

    On
      the
      _____ day of _______________ in the year, _________ before me, the undersigned,
      a Notary Public in and for said State, personally appeared ___________
      personally known to me or proved to me on the basis of satisfactory evidence
      to
      be the individual whose name is subscribed to the within instrument and
      acknowledged to me that he executed the same in his capacity, and that by his
      signature on the instrument, the individual, or the person upon behalf of which
      the individual acted, executed the instrument.

    

    In
      witness whereof I hereunto set my hand.

     

    
      	 	
              _________________________________,
                Notary Public

            
	
              Notary
                Seal

            	 
	 	
              __________________________________________

            
	 	
              (Printed
                Name of Notary)

            
	 	 
	 	
              My
                Commission Expires:
                _____________________

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1

    

    COLLATERAL

     

    “Collateral”
      means all
      of
      Borrower’s right, title and interest to (i) distributions or proceeds of any
      kind arising pursuant to that certain Investment Management Trust Agreement
      dated as of January 16, 2008 (as amended, restated, or otherwise modified from
      time to time, the “Trust Agreement”) between Borrower and Continental Stock
      Transfer & Trust Company, as trustee, including, without limitation, all
      rights, title and interest of Borrower in interest and dividend income
      distributable to the Company pursuant to Section 2(b) of the Trust Agreement
      in
      an amount equal to $2,000,000, and (ii) all deposit accounts into which any
      of
      the foregoing distributions or proceeds are disbursed or held. Such trust
      arrangements evidenced by the Trust Agreement and any successor trust or
      substitute arrangement, the “Trust”. “Collateral” shall exclude all assets and
      property held in the Trust.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

    

    PERMITTED
      LIENS

    

    (a) Liens
      for
      taxes not yet delinquent and for past due taxes (other than federal or state
      income taxes) provided
      that the
      payment of such taxes is being contested in good faith and by appropriate
      proceedings diligently pursued and as to which
      adequate
      financial reserves have been established on Borrower’s books and records and a
      stay of enforcement of any such Lien is in effect;

     

    (b) the
      Liens
      in favor of Bank;

     

    (c) Liens
      consisting of deposits made in the ordinary course of business in connection
      with, or to secure payment of, obligations under worker’s compensation,
      unemployment insurance, social security and other similar laws; and

     

    (d) Liens
      securing the claims or demands of materialmen, mechanics, carriers,
      warehousemen, landlords and other like persons.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]