Document:

EXHIBIT
4.4

     

    SONIC
SOLUTIONS

    

    Warrant
To Purchase Common Stock

    

    Warrant
No.: 20__-_____

    Number of
Shares of Common Stock: ___________

    Date of
Issuance: ______ __, 20__ (“Issuance Date”)

    

    Sonic
Solutions, a California corporation (the “Company”), certifies that, for
good and valuable consideration, the receipt and sufficiency of which are
acknowledged, __________________, the registered holder hereof or its permitted
assigns (the “Holder”),
is entitled, subject to the terms set forth below, to purchase from the Company,
at the Exercise Price (as defined below) then in effect, upon surrender of this
Warrant to Purchase Common Stock (including any Warrants to Purchase Common
Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after [ ] days from the date hereof (the “Exercisability Date”), but not
after 5:30 p.m., New York City time, on the Expiration Date (as defined below),
________ (_________) fully paid and nonassessable shares of Common Stock (as
defined below) (the
“Warrant
Shares”).  Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in Section
15.  This Warrant is one of a series of warrants to purchase shares of
Common Stock (collectively, the “Warrants”) issued [pursuant to
that certain Underwriting Agreement, dated __________ (the “Underwriting Agreement”), by
and among the Company and the representatives of the underwriters named therein
(the “Underwriters”)]
pursuant to the Company’s Registration Statement on Form S-3 (No. 333-________)
(the “Registration
Statement”).

     

    1.           EXERCISE OF
WARRANT.

     

    (a)             Mechanics of
Exercise.  Subject to the terms and conditions hereof
(including, without limitation, the limitations set forth in Section 1(e)), this
Warrant may be exercised by the Holder on any day on or after the Exercisability
Date, in whole or in part (but not as to fractional shares), by (i) delivery of
a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the
Holder’s election to exercise this Warrant and (ii) payment to the Company of an
amount equal to the applicable Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in
cash or wire transfer of immediately available funds.  The Holder
shall not be required to surrender this Warrant in order to effect an exercise
hereunder, provided that this
Warrant is surrendered to the Company by the second Trading Day following the
date on which the Company has received each of the Exercise Notice and the
Aggregate Exercise Price (the “Exercise Delivery
Documents”).  On or before the first Trading Day following the
date on which the Company has received the Exercise Delivery Documents, the
Company shall transmit by facsimile an acknowledgment of confirmation of receipt
of the Exercise Delivery Documents to the Holder and the Company’s transfer
agent for the Common Stock (the “Transfer
Agent”).  The Company shall deliver any objection to the
Exercise Delivery Documents on or before the second Trading Day following the
date on which the Company has received all of the Exercise Delivery
Documents.  In the event of any discrepancy or dispute, the records of
the Company shall be controlling and determinative in the absence of manifest
error.  On or before the third Trading Day following the date on which
the Company has received all of the Exercise Delivery Documents and after the
Company shall have received this Warrant (the “Share Delivery Date”), the
Company shall, (X) provided that the
Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program (the “FAST Program”) and so long as
the certificates therefor are not required to bear a legend regarding
restriction on transferability, upon the request of the Holder, credit such
aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (Y), if the
Transfer Agent is not participating in the FAST Program or if the certificates
are required to bear a legend regarding restriction on transferability, issue
and dispatch by overnight courier to the address as specified in the Exercise
Notice, a certificate, registered in the Company’s share register in the name of
the Holder or its designee, for the number of shares of Common Stock to which
the Holder is entitled pursuant to such exercise.  Upon delivery of
the Exercise Delivery Documents and surrender of this Warrant, the Holder shall
be deemed for all corporate purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date such Warrant Shares are credited to the Holder’s DTC
account or the date of delivery of the certificates evidencing such Warrant
Shares, as the case may be.  If this Warrant is submitted in
connection with any exercise pursuant to this Section 1(a) and the number of
Warrant Shares represented by this Warrant submitted for exercise is greater
than the number of Warrant Shares being acquired upon an exercise, then the
Company shall as soon as practicable and in no event later than five Trading
Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 8(e)) representing the right to purchase the number of
Warrant Shares purchasable immediately prior to such exercise under this
Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised.  The Company shall pay any and all taxes that may be
payable with respect to the issuance and delivery of Warrant Shares upon
exercise of this Warrant; provided, however,
that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the registration of any certificates for
Warrant Shares or Warrants in a name other than that of the Holder or an
affiliate thereof.  The Holder shall be responsible for all other tax
liability that may arise as a result of holding or transferring this Warrant or
receiving Warrant Shares upon exercise hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)             Exercise
Price.  For purposes of this Warrant, “Exercise Price” means $____
per share of Common Stock, subject to adjustment as provided
herein.

     

    (c)             Failure to Timely Deliver
Shares.  In addition to any other rights available to a Holder,
if the Company fails to deliver to the Holder a certificate representing Warrant
Shares by the third Trading Day after the date on which delivery of such
certificate is required by this Warrant, and if after such third Trading Day the
Holder purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares
that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company
shall, within three Trading Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased less the Exercise Price (the “Buy-In Price”), at which point
the Company’s obligation to deliver such certificate (and to issue such Common
Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the
Holder a certificate or certificates representing such Common Stock and pay cash
to the Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (A) such number of shares of Common Stock, times (B) the Closing
Price on the date of the event giving rise to the Company’s obligation to
deliver such certificate.

    
      
         

      

      
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    (d)           Cashless Exercise.
 Notwithstanding
anything contained herein to the contrary, if neither a registration statement
covering the Warrant Shares  nor an exemption from registration under
the Securities Act of 1933, as amended, is available either for registration of
the Warrant Shares or for the resale of the Warrant Shares, the Holder may, in
its sole discretion, exercise this Warrant in whole or in part and, in lieu of
making the cash payment otherwise contemplated to be made to the Company upon
such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the “Net Number” of shares of Common Stock determined
according to the following formula (a “Cashless
Exercise”):

     

    Net
Number = (A x B) - (A
x C)

    B

     

    For
purposes of the foregoing formula:

     

    
      
        	
              	
                A=

              	
                the
      total number of shares with respect to which this Warrant is then being
      exercised.

              

      

    

     

    
      
        
          	
                	
                  B=

                	
                  the
      Weighted Average Price of the shares of Common Stock (as reported by
      Bloomberg) on the date immediately preceding the date of the Exercise
      Notice.

                

        

      

    

     

    
      
        	
              	
                C=

              	
                the
      Exercise Price then in effect for the applicable Warrant Shares at the
      time of such exercise.

              

      

    

    

    (e)             Limitations on
Exercises.  (1)  The Company shall not effect the
exercise of this Warrant, and the Holder shall not have the right to exercise
this Warrant, to the extent that after giving effect to such exercise, such
Holder (together with such Holder’s affiliates and any other Persons acting as a
group together) would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the
shares of Common Stock outstanding immediately after giving effect to such
exercise.  For purposes of the foregoing sentence, the aggregate
number of shares of Common Stock beneficially owned by such Person and its
affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock which would be
issuable upon (i) exercise of the remaining, unexercised portion of this Warrant
beneficially owned by such Person and its affiliates and (ii) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Company beneficially owned by such Person and its affiliates (including,
without limitation, any convertible notes or convertible preferred stock or
warrants) subject to a limitation on conversion or exercise analogous to the
limitation contained herein.  Except as set forth in the preceding
sentence, for purposes of this paragraph, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange
Act”), it being acknowledged that the Company is not representing to the
Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act, and the Holder is solely responsible for any schedules required to be filed
in accordance therewith..  For purposes of this Warrant, in
determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as reflected in (1) the
Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other
public filing with the Securities and Exchange Commission, as the case may be,
(2) a more recent public announcement by the Company or (3) any other notice by
the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding.  For any reason at any time, upon the written or
oral request of the Holder, where such request indicates that it is being made
pursuant to this Warrant, the Company shall within two Trading Days confirm
orally and in writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including the Warrants, by the Holder and its
affiliates since the date as of which such number of outstanding shares of
Common Stock was reported.  By written notice to the Company, the
Holder may increase or decrease the Maximum Percentage to any other percentage
not in excess of 9.99% specified in such notice; provided, that (i)
any such increase will not be effective until the 61st day
after such notice is delivered to the Company and (ii) any such increase or
decrease will apply only to the Holder and not to any other holder of
Warrants.

    
      
         

      

      
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    (f)             No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share that the Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise
Price.

     

    2.           ADJUSTMENT OF EXERCISE PRICE
AND NUMBER OF WARRANT SHARES.  The Exercise Price and the
number of Warrant Shares shall be adjusted from time to time as
follows:

     

    (a)             Adjustment upon Subdivision
or Combination of Shares of Common Stock.  If the Company at
any time on or after the Subscription Date subdivides (by any stock split, stock
dividend, recapitalization or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and
the number of Warrant Shares will be proportionately increased.  If
the Company at any time on or after the Subscription Date combines (by
combination, reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares will be proportionately
decreased.  Any adjustment under this Section 2(a) shall become
effective at the close of business on the date the subdivision or combination
becomes effective.

     

    (b)             Other
Events.  If any event occurs of the type contemplated by the
provisions of Section 2(a) but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features to the holders of the
Company’s equity securities), then the Company’s Board of Directors will make an
appropriate adjustment in the Exercise Price and the number of Warrant Shares so
as to protect the rights of the Holder; provided, that no
such adjustment pursuant to this Section 2(b) will increase the Exercise Price
or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 2.

    
      
         

      

      
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    (c)             Notwithstanding
anything to the contrary in this Warrant, in no event shall the Exercise Price
be reduced below the par value of the Company’s Common Stock

     

    3.       
RIGHTS UPON
DISTRIBUTION OF ASSETS.  If the Company shall declare or make
any dividend or other distribution of its assets (or rights to acquire its
assets) to holders of shares of Common Stock, by way of return of capital or
otherwise (including, without limitation, any distribution of cash, stock or
other securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or other
similar transaction) (a “Distribution”), at any time
after the issuance of this Warrant, then, in each such case:

     

    (a)             any
Exercise Price in effect immediately prior to the close of business on the
record date fixed for the determination of holders of shares of Common Stock
entitled to receive the Distribution shall be reduced, effective as of the close
of business on such record date, to a price determined by multiplying such
Exercise Price by a fraction of which (i) the numerator shall be the Weighted
Average Price of the shares of Common Stock on the Trading Day immediately
preceding such record date minus the value of the Distribution (as determined in
good faith by the Company’s Board of Directors) applicable to one share of
Common Stock, and (ii) the denominator shall be the Weighted Average Price of
the shares of Common Stock on the Trading Day immediately preceding such record
date; and

     

    (b)             the
number of Warrant Shares shall be increased to a number of shares equal to the
number of shares of Common Stock obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of shares of
Common Stock entitled to receive the Distribution multiplied by the reciprocal
of the fraction set forth in the immediately preceding paragraph (a); provided, that in the
event that the Distribution is of shares of Common Stock or common stock of a
company whose common shares are traded on a national securities exchange or a
national automated quotation system (“Other Shares of Common
Stock”), then the Holder may elect to receive a warrant to purchase Other
Shares of Common Stock in lieu of an increase in the number of Warrant Shares,
the terms of which shall be identical to those of this Warrant, except that such
warrant shall be exercisable into the number of shares of Other Shares of Common
Stock that would have been payable to the Holder pursuant to the Distribution
had the Holder exercised this Warrant immediately prior to such record date and
with an aggregate exercise price equal to the product of the amount by which the
exercise price of this Warrant was decreased with respect to the Distribution
pursuant to the terms of the immediately preceding paragraph (a) and the number
of Warrant Shares calculated in accordance with the first part of this paragraph
(b).

    
      
         

      

      
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    4.           PURCHASE RIGHTS; FUNDAMENTAL
TRANSACTIONS.

     

    (a)             Purchase
Rights.  In addition to any adjustments pursuant to Section 2
above, if at any time prior to the Expiration Date the Company grants, issues or
sells any Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property pro rata to the record holders of any class of
shares of Common Stock (the “Purchase Rights”), then the
Holder will be entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which the Holder could have acquired if
the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of shares of Common Stock are
to be determined for the grant, issue or sale of such Purchase
Rights.

     

    (b)           Fundamental
Transactions.  Upon the occurrence of any Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction, the provisions of
this Warrant referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume
all of the obligations of the Company under this Warrant with the same effect as
if such Successor Entity had been named as the Company herein.  Upon
consummation of the Fundamental Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise of this
Warrant at any time after the consummation of the Fundamental Transaction, in
lieu of the shares of the Common Stock (or other securities, cash, assets or
other property purchasable upon the exercise of the Warrant prior to such
Fundamental Transaction), such shares of stock, securities, cash, assets or any
other property whatsoever (including warrants or other purchase or subscription
rights), if any, that the Holder would have been entitled to receive upon the
happening of such Fundamental Transaction had this Warrant been exercised
immediately prior to such Fundamental Transaction, as adjusted in accordance
with the provisions of this Warrant.  In addition to and not in
substitution for any other rights hereunder, prior to the consummation of any
Fundamental Transaction pursuant to which holders of shares of Common Stock are
entitled to receive securities or other assets with respect to or in exchange
for shares of Common Stock (a “Corporate Event”), the Company
shall make appropriate provision to insure that the Holder will thereafter have
the right to receive upon an exercise of this Warrant within 90 days after the
consummation of the Fundamental Transaction but, in any event, prior to the
Expiration Date, in lieu of the shares of the Common Stock (or other securities,
cash, assets or other property) purchasable upon the exercise of the Warrant
prior to such Fundamental Transaction, such shares of stock, securities, cash,
assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon
the happening of such Fundamental Transaction had the Warrant been exercised
immediately prior to such Fundamental Transaction.  Provision made
pursuant to the preceding sentence shall be in a form and substance reasonably
satisfactory to the Required Holders.  The provisions of this Section
shall apply similarly and equally to successive Fundamental Transactions and
Corporate Events and shall be applied without regard to any limitations on the
exercise of this Warrant.  Without limiting the foregoing, in
connection with a Fundamental Transaction that constitutes a Change of Control,
at the request of the Holder delivered before the 90th day after such
Fundamental Transaction, the Company (or the Successor Entity) shall purchase
this Warrant from the Holder by paying to the Holder, within five Business Days
after such request (or, if later, on the effective date of the Fundamental
Transaction), cash in an amount equal to the Black Scholes Value of the
remaining unexercised portion of this Warrant on the date of such Fundamental
Transaction.

    
      
         

      

      
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    5.           NONCIRCUMVENTION.  The
Company covenants and agrees that the Company will not, by amendment of its
Articles of Incorporation, Bylaws or through any reorganization, transfer of
assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all
times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the
Holder.  Without limiting the generality of the foregoing, the Company
(i) shall not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the Exercise Price then in effect, (ii)
shall take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant and (iii) shall, so long as any
of the Warrants are outstanding, take all action necessary to reserve and keep
available out of its authorized and unissued shares of Common Stock, solely for
the purpose of effecting the exercise of the Warrants, the number of shares of
Common Stock as shall from time to time be necessary to effect the exercise of
the Warrants then outstanding (without regard to any limitations on
exercise).

     

    6.           RESERVATION OF WARRANT
SHARES.  The Company covenants that it will at all times
reserve and keep available out of the aggregate of its authorized but unissued
and otherwise unreserved Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein provided, the
number of shares of Common Stock which are then issuable and deliverable upon
the exercise of this entire Warrant, free from preemptive or any other
contingent purchase rights of Persons other than the Holder (taking into account
the adjustments and restrictions in Section 2).  Such reservation
shall comply with the provisions of Section 1.  The Company covenants
that all shares of Common Stock so issuable and deliverable shall, upon issuance
and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and
nonassessable.  The Company will take all such actions as may be
necessary to assure that such shares of Common Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of any securities exchange or automated quotation system upon which
the Common Stock may be listed.

     

    7.           WARRANT HOLDER NOT DEEMED A
SHAREHOLDER.  Except as otherwise specifically provided herein,
the Holder, solely in such Person’s capacity as a holder of this Warrant, shall
not be entitled to vote or receive dividends or be deemed the holder of share
capital of the Company for any purpose, nor shall anything contained in this
Warrant be construed to confer upon the Holder, solely in such Person’s capacity
as the Holder of this Warrant, any of the rights of a shareholder of the Company
or any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends
or subscription rights, or otherwise, prior to the issuance to the Holder of the
Warrant Shares which such Person is then entitled to receive upon the due
exercise of this Warrant.  In addition, nothing contained in this
Warrant shall be construed as imposing any liabilities on the Holder to purchase
any securities (upon exercise of this Warrant or otherwise) or as a shareholder
of the Company, whether such liabilities are asserted by the Company or by
creditors of the Company.

    
      
         

      

      
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    8.           REGISTRATION AND REISSUANCE
OF WARRANTS.

     

    (a)             Registration of
Warrant.  The Company shall register this Warrant, upon the
records to be maintained by the Company for that purpose (the “Warrant Register”), in the
name of the record Holder hereof from time to time.  The Company may
deem and treat the registered Holder of this Warrant as the absolute owner
hereof for the purpose of any exercise hereof or any distribution to the Holder,
and for all other purposes, absent actual notice to the contrary.  The
Company shall also register any transfer, exchange, reissuance or cancellation
of any portion of this Warrant in the Warrant Register.

     

    (b)             Transfer of
Warrant.  This Warrant may be offered for sale, sold,
transferred or assigned without the consent of the Company, except as may
otherwise be required by applicable securities laws.  Subject to
applicable securities laws, if this Warrant is to be transferred, the Holder
shall surrender this Warrant to the Company together with all applicable
transfer taxes, whereupon the Company will forthwith issue and deliver upon the
order of the Holder a new Warrant (in accordance with Section 8(e)), registered
as the Holder may request, representing the right to purchase the number of
Warrant Shares being transferred by the Holder and, if less then the total
number of Warrant Shares then underlying this Warrant is being transferred, a
new Warrant (in accordance with Section 8(e)) to the Holder representing the
right to purchase the number of Warrant Shares not being
transferred.

     

    (c)             Lost, Stolen or Mutilated
Warrant.  Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form or
the provision of reasonable security by the Holder to the Company and, in the
case of mutilation, upon surrender and cancellation of this Warrant, the Company
shall execute and deliver to the Holder a new Warrant (in accordance with
Section 8(e)) representing the right to purchase the Warrant Shares then
underlying this Warrant.

     

    (d)             Exchangeable for Multiple
Warrants.  This Warrant is exchangeable, upon the surrender
hereof by the Holder at the principal office of the Company together with all
applicable transfer taxes, for a new Warrant or Warrants (in accordance with
Section 8(e)) representing in the aggregate the right to purchase the number of
Warrant Shares then underlying this Warrant, and each such new Warrant will
represent the right to purchase such portion of such Warrant Shares as is
designated by the Holder at the time of such surrender; provided, however, that the
Company shall not be required to issue Warrants for fractional shares of Common
Stock hereunder.

     

    (e)             Issuance of New
Warrants.  Whenever the Company is required to issue a new
Warrant pursuant to the terms of this Warrant, such new Warrant shall (i) be of
like tenor with this Warrant, (ii) represent, as indicated on the face of such
new Warrant, the right to purchase the Warrant Shares then underlying this
Warrant (or in the case of a new Warrant being issued pursuant to Section 8(b)
or Section 8(c), the Warrant Shares designated by the Holder which, when added
to the number of shares of Common Stock underlying the other new Warrants issued
in connection with such issuance, does not exceed the number of Warrant Shares
then underlying this Warrant), (iii) have an issuance date, as indicated on the
face of such new Warrant which is the same as the Issuance Date and (iv) have
the same rights and conditions as this Warrant.

    
      
         

      

      
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    9.           NOTICES.  Whenever
notice is required to be given under this Warrant, unless otherwise provided
herein, such notice shall be given in accordance with the information set forth
in the Warrant Register.  The Company shall provide the Holder with
prompt written notice of all actions taken pursuant to this Warrant, including,
in reasonable detail, a description of such action and the reason or reasons
therefore.  Without limiting the generality of the foregoing, the
Company will give written notice to the Holder (i) immediately upon any
adjustment of the Exercise Price, setting forth in reasonable detail, and
certifying, the calculation of such adjustment and (ii) at least 10 days prior
to the date on which the Company closes its books or takes a record (A) with
respect to any dividend or distribution upon the shares of Common Stock, (B)
with respect to any grants, issuances or sales of any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
to holders of shares of Common Stock or (C) for determining rights to vote with
respect to any Fundamental Transaction, dissolution or liquidation; provided, that in
each case, such information shall be made known to the public prior to or in
conjunction with such notice being provided to the Holder.

     

    10.           AMENDMENT AND
WAIVER.  Except as otherwise provided herein, the provisions of
this Warrant may be amended and the Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the written consent of the Required Holders;
provided, that
no such action may increase the exercise price of any Warrant or decrease the
number of shares or class of stock obtainable upon exercise of any Warrant
without the written consent of the Holder.  No such amendment shall be
effective to the extent that it applies to less than all of the holders of the
Warrants then outstanding.

     

    11.           GOVERNING
LAW.  This Warrant shall be governed by and construed and
enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by,
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York.

     

    12.           CONSTRUCTION;
HEADINGS.  This Warrant shall be deemed to be jointly drafted
by the Company and the [Holder] [Underwriters] and shall not be construed
against any person as the drafter hereof.  The headings of this
Warrant are for convenience of reference and shall not form part of, or affect
the interpretation of, this Warrant.

     

    13.           DISPUTE
RESOLUTION.  In the case of a dispute as to the determination
of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall submit the disputed determinations or arithmetic calculations via
facsimile within two Trading Days of receipt of the Exercise Notice giving rise
to such dispute, as the case may be, to the Holder.  If the Holder and
the Company are unable to agree upon such determination or calculation of the
Exercise Price or the Warrant Shares within five Trading Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the
Company shall, within two Trading Days submit via facsimile (a) the disputed
determination of the Exercise Price to an independent, reputable investment bank
selected by the Company and approved by the Holder or (b) the disputed
arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant.  The Company shall cause the investment bank or
the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than
10 Trading Days from the time it receives the disputed determinations or
calculations.  Such investment bank’s or accountant’s determination or
calculation, as the case may be, shall be binding upon all parties absent
demonstrable error.  The expenses of the investment bank and
accountant will be borne by the Company unless the investment bank or accountant
determines that the determination of the Exercise Price or the arithmetic
calculation of the Warrant Shares by the Holder was incorrect, in which case the
expenses of the investment bank and accountant will be borne by the
Holder.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    14.         REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this
Warrant shall be cumulative and in addition to all other remedies available
under this Warrant [and the Underwriting Agreement], at law or in equity
(including a decree of specific performance and/or other injunctive relief), and
nothing herein shall limit the right of the Holder to pursue actual damages for
any failure by the Company to comply with the terms of this
Warrant.  The Company acknowledges that a breach by it of its
obligations hereunder may cause irreparable harm to the Holder and that the
remedy at law for any such breach may be inadequate.  The Company
therefore agrees that, in the event of any such breach or threatened breach, the
holder of this Warrant shall be entitled, in addition to all other available
remedies, to seek an injunction restraining any
breach.  Notwithstanding the foregoing, the absence of an effective
registration statement relating to the issuance of Warrant Shares upon exercise
of the Warrant shall not provide the Holder with the right to net-settle this
Warrant in cash.  Furthermore, the absence of an effective
registration statement or applicable exemption from registration does not
alleviate the Company’s obligation to deliver the Warrant Shares upon exercise
of this Warrant.

     

    15.         CERTAIN
DEFINITIONS.  For purposes of this Warrant, the following terms
shall have the following meanings:

     

     (a)             “Black Scholes Value” means the
value of this Warrant based on the Black and Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg determined as of the end of day
immediately following the public announcement of the applicable Fundamental
Transaction and reflecting (i) a risk-free interest rate corresponding to the
U.S. Treasury rate for a period equal to the remaining term of this Warrant as
of such date of request and (ii) an expected volatility equal to the 30 day
volatility of the Common Stock obtained from the HVT function on Bloomberg for
the period ending as of the end of the day immediately preceding the public
announcement of the applicable Fundamental Transaction.

     

     (b)             “Bloomberg” means Bloomberg
Financial Markets.

     

     (c)             “Change of Control” means any
Fundamental Transaction following which the holders of the Company’s voting
power immediately prior to such Fundamental Transaction do not, immediately
thereafter, hold, directly or indirectly, voting power of the surviving or
successor entity or entities sufficient to elect a majority of the members of
the board of directors (or their equivalent if other than a corporation) of such
entity or entities.

     

     (d)             “Common Stock” means (i) the
Company’s shares of Common Stock, no par value, and (ii) any share capital into
which such Common Stock shall have been changed or any share capital resulting
from a reclassification of such Common Stock.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (e)            “Convertible Securities” means
any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

     

    (f)             “Eligible Market” means the
Principal Market, The New York Stock Exchange, Inc., the NYSE Amex LLC, The
Nasdaq Stock Market, or the OTC Bulletin Board®.

     

    (g)            “Expiration Date” means the [ ]
anniversary of the Issuance Date or, if such date falls on a day other than a
Trading Day or on which trading does not take place on the Principal Market (a
“Holiday”), the next
date that is not a Holiday.

     

    (h)             “Fundamental Transaction” means
that the Company shall, directly or indirectly, in one or more related
transactions, (i) consolidate or merge with or into another Person, (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of the
properties or assets of the Company to another Person, (iii) allow another
Person to make a purchase, tender or exchange offer that is accepted by the
holders of more than the 50% of either the outstanding shares of Common Stock
(not including any shares of Common Stock held by the Person or Persons making
or party to, or associated or affiliated with the Persons making or party to,
such purchase, tender or exchange offer), (iv) consummate a stock purchase
agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with
another Person whereby such other Person acquires more than the 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock purchase
agreement or other business combination), (v) reorganize, recapitalize or
reclassify its Common Stock or (vi) any “person” or “group” (as these terms are
used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall
become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of 50% of the aggregate ordinary voting power
represented by issued and outstanding Common Stock.

     

    (i)             “Options” means any rights,
warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

     

    (j)             “Parent Entity” of a Person
means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an
Eligible Market, or, if there is more than one such Person or Parent Entity, the
Person or Parent Entity with the largest public market capitalization as of the
date of consummation of the Fundamental Transaction.

     

    (k)            “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity and a government or any
department or agency thereof.

     

    (l)             “Principal Market” means the
Nasdaq Global Select Market.

     

    (m)           “Required Holders” means the
holders of the Warrants representing at least a majority of shares of Common
Stock underlying the Warrants then outstanding.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (n)           “Successor Entity” means the
Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so
elected by the Required Holders, the Parent Entity) with which such Fundamental
Transaction shall have been entered into.

     

    (o)           “Trading Day” means any day on
which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the
principal securities exchange or securities market on which the Common Stock is
then traded; provided that
“Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the
Common Stock is suspended from trading during the final hour of trading on such
exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour
ending at 4:00:00 p.m., New York City time).

     

    (p)           “Weighted Average Price” means,
for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01
a.m., New York City time, and ending at 4:00:00 p.m., New York City time, as
reported by Bloomberg through its “Volume at Price” function or, if the
foregoing does not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin board for
such security during the period beginning at 9:30:01 a.m., New York City time,
and ending at 4:00:00 p.m., New York City time, as reported by Bloomberg, or, if
no dollar volume-weighted average price is reported for such security by
Bloomberg for such hours, the average of the highest closing bid price and the
lowest closing ask price of any of the market makers for such security as
reported in the “pink sheets” by Pink Sheets LLC.  If the Weighted
Average Price cannot be calculated for such security on such date on any of the
foregoing bases, the Weighted Average Price of such security on such date shall
be the fair market value as mutually determined by the Company and the Required
Holders.  If the Company and the Required Holders are unable to agree
upon the fair market value of such security, then such dispute shall be resolved
pursuant to Section 13 with the term “Weighted Average Price” being substituted
for the term “Exercise Price.”  All such determinations shall be
appropriately adjusted for any share dividend, share split or other similar
transaction during such period.

     

    [Signature
Page Follows]

    
      
         

      

      
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    IN WITNESS WHEREOF, the
Company has caused this Warrant to Purchase Common Stock to be duly executed as
of the Issuance Date set out above.

    

    
      
        
          	 
      	
                  SONIC
      SOLUTIONS

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                      

                	 
      
	 
      	 
      	
                  Name:

                
	 
      	 
      	
                  Title:

                

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    EXERCISE
NOTICE

     

    TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
TO PURCHASE COMMON STOCK

    

    SONIC
SOLUTIONS

     

    The
undersigned holder hereby exercises the right to purchase _________________ of
the shares of Common Stock (“Warrant Shares”) of Sonic
Solutions., a California corporation (the “Company”), evidenced by the
attached Warrant to Purchase Common Stock (the “Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

    

    1.  Exercise.  The
Holder intends to pay the sum of $___________________ to the Company in
accordance with the terms of the Warrant in connection with the exercise of the
Warrant for ________ Warrant Shares.

    

    2.  Delivery of Warrant
Shares.  The Company shall deliver to the holder __________
Warrant Shares in accordance with the terms of the Warrant.

    

    3.  Representations and
Warranties.  By its delivery of this Exercise Notice, the
undersigned represents and warrants to the Company that in giving effect to the
exercise evidenced hereby the Holder will not beneficially own in excess of the
number of shares of Common Stock (determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended) permitted to be owned under
Section 1(e) of this Warrant to which this notice relates.

    

    
      	
              Date:
      _______________ __, ______

            	 
      
	 
      	 
      
	
                    

            	 
      
	
              Name
      of Registered Holder

            	 
      
	 
      	 
      
	 
      	 
      
	
              By:

            	
                 

            	 
      
	 
      	
              Name:

            	 
      
	 
      	
              Title:

            	 
      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT

    

    The Company hereby acknowledges this
Exercise Notice.

    

    
      
        
          	 
      	
                  SONIC
      SOLUTIONS

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                      

                	 
      
	 
      	 
      	
                  Name:

                
	 
      	 
      	
                  Title:Award
Number:  «Award_No_1»

     

    AUTOCHINA INTERNATIONAL
LIMITED

     

    2009
EQUITY INCENTIVE PLAN

     

    SHARE OPTION AWARD
AGREEMENT

     

    1.           Grant of
Option.  AutoChina International Limited, a company
incorporated under the laws of the Cayman Islands, (the “Company”) hereby grants
to the Grantee (the “Grantee”) named in the Notice of Share Option Award (the
“Notice”), an option (the “Option”) to purchase the Total Number of Ordinary
Shares subject to the Option (the “Shares”) set forth in the Notice, at the
Exercise Price per Share set forth in the Notice (the “Exercise Price”) subject
to the terms and provisions of the Notice, this Share Option Award Agreement
(the “Option Agreement”) and the Company’s 2009 Equity Incentive Plan, as
amended from time to time (the “Plan”), which are incorporated herein by
reference.  Unless otherwise defined herein, the terms defined in the
Plan shall have the same defined meanings in this Option Agreement.

     

    If
designated in the Notice as an Incentive Stock Option, the Option is intended to
qualify as an Incentive Stock Option as defined in Section 422 of the
Code.  However, notwithstanding such designation, the Option will
qualify as an Incentive Stock Option under the Code only to the extent the
US$100,000 dollar limitation of Section 422(d) of the Code is not
exceeded.  The US$100,000 limitation of Section 422(d) of the
Code is calculated based on the aggregate Fair Market Value of the Shares
subject to options designated as Incentive Stock Options which become
exercisable for the first time by the Grantee during any calendar year (under
all plans of the Company or any Parent or Subsidiary of the
Company).  For purposes of this calculation, Incentive Stock Options
shall be taken into account in the order in which they were granted, and the
Fair Market Value of the shares subject to such options shall be determined as
of the grant date of the relevant option.

     

    2.           Exercise of
Option.

     

    (a)           Right to
Exercise.  The Option shall be exercisable during its term in
accordance with the Vesting Schedule set out in the Notice and with the
applicable provisions of the Plan and this Option Agreement.  The
Option shall be subject to the provisions of Section 11 of the Plan
relating to the exercisability or termination of the Option in the event of a
Corporate Transaction.  Notwithstanding the provisions of Section
11(b), vesting will accelerate and the Option shall become fully vested and
immediately exercisable upon the occurrence of a Change in Control as such term
is defined in Section 2(i) of the Plan. The Grantee (including any Holding
Company of such Grantee) shall be subject to reasonable limitations on the
number of requested exercises during any monthly or weekly period as determined
by the Administrator.  In no event shall the Company issue fractional
Shares.

     

    (b)           Method of
Exercise.  The Option shall be exercisable by delivery of an
exercise notice (a form of which is attached as Exhibit A) or by such other
procedure as specified from time to time by the Administrator which shall state
the election to exercise the Option, the whole number of Shares in respect of
which the Option is being exercised, and such other provisions as may be
required by the Administrator.  The exercise notice shall be delivered
in person, by certified mail, or by such other method (including electronic
transmission) as determined from time to time by the Administrator to the
Company accompanied by payment of the Exercise Price.  The Option
shall be deemed to be exercised upon receipt by the Company of such notice
accompanied by the Exercise Price, which, to the extent selected, shall be
deemed to be satisfied by use of the sale and remittance procedure to pay the
Exercise Price provided in Section 4(d) below.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Taxes.  No
Shares will be delivered to the Grantee (including any Holding Company of such
Grantee) or other person pursuant to the exercise of the Option until the
Grantee (including any Holding Company of such Grantee) or other person has made
arrangements acceptable to the Administrator for the satisfaction of applicable
income tax and employment tax withholding obligations, including, without
limitation, such other tax obligations of the Grantee (including any Holding
Company of such Grantee) incident to the receipt of Shares.  Upon
exercise of the Option, the Company or the Grantee’s employer may offset or
withhold (from any amount owed by the Company or the Grantee’s employer to the
Grantee) or collect from the Grantee or other person an amount sufficient to
satisfy such tax withholding obligations.

     

    3.           Grantee’s
Representations.  The Grantee understands that neither the
Option nor the Shares exercisable pursuant to the Option have been registered
under any United States or non-U.S. securities laws.  In the event the
Shares purchasable pursuant to the exercise of the Option have not been
registered under the Securities Act of 1933, as amended, at the time the Option
is exercised, the Grantee shall, if requested by the Company, concurrently with
the exercise of all or any portion of the Option, deliver to the Company his or
her Investment Representation Statement in the form attached hereto as Exhibit
B.

     

    4.           Method of
Payment.  Payment of the Exercise Price shall be made by any of
the following, or a combination thereof, at the election of the Grantee;
provided, however, that such exercise method does not then violate any
Applicable Law:

     

    (a)           cash;

     

    (b)           check;

     

    (c)           surrender
of Shares or delivery of a properly executed form of attestation of ownership of
Shares as the Administrator may require which have a Fair Market Value on the
date of surrender or attestation equal to the aggregate Exercise Price of the
Shares as to which the Option is being exercised;

     

    (d)           payment
through a broker-dealer sale and remittance procedure pursuant to which the
Grantee (i) shall provide written instructions to a Company-designated brokerage
firm to effect the immediate sale of some or all of the purchased Shares and
remit to the Company sufficient funds to cover the aggregate exercise price
payable for the purchased Shares and (ii) shall provide written directives to
the Company to deliver the certificates for the purchased Shares directly to
such brokerage firm in order to complete the sale transaction;

     

    (e)           payment
through a “net exercise” such that, without the payment of any funds, the
Grantee may exercise the Option and receive the net number of Shares equal to
(i) the number of Shares as to which the Option is being exercised, multiplied
by (ii) a fraction, the numerator of which is the Fair Market Value per Share
(on such date as is determined by the Administrator) less the Exercise Price per
Share, and the denominator of which is such Fair Market Value per Share (the
number of net Shares to be received shall be rounded down to the nearest whole
number of Shares); or

     

    (f)           any
combination of the foregoing methods of payment.

     

    5.           Restrictions on
Exercise.  The Option may not be exercised if the issuance of
the Shares subject to the Option upon such exercise would
constitute a violation of any Applicable Laws.  In addition, the
Option may not be exercised until such time as the Plan has been approved by the
shareholders of the Company.  If the exercise of the Option within the
applicable time periods set forth in Sections 6, 7 and 8 of this Option
Agreement is prevented by the provisions of this Section 4(f), the Option
shall remain exercisable until one (1) month after the date the Grantee is
notified by the Company that the Option is exercisable, but in any event no
later than the Expiration Date set forth in the Notice.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    6.           Termination or Change of
Continuous Service.  In the event the Grantee’s Continuous
Service terminates, other than for Cause, the Grantee (or the
Holding Company of such Grantee, as applicable) may, but only during the
Post-Termination Exercise Period, exercise the portion of the Option that was
vested at the date of such termination (the “Termination Date”).  The
Post-Termination Exercise Period shall commence on the Termination
Date.  In the event of termination of the Grantee’s Continuous Service
for Cause, the right of the Grantee (or the Holding Company of such Grantee, as
applicable) to exercise the Option shall, except as otherwise determined by the
Administrator, terminate concurrently with the termination of the Grantee’s
Continuous Service (also the “Termination Date”).  In no event,
however, shall the Option be exercised later than the Expiration Date set forth
in the Notice.  In the event of the Grantee’s change in status from
Employee, Director or Consultant to any other status of Employee, Director or
Consultant, the Option shall remain in effect and the Option shall continue to
vest in accordance with the Vesting Schedule set forth in the Notice only if
such change is determined by the Administrator, in its complete and sole
discretion, to constitute a lateral change or a promotion and not a demotion in
the employment status of the Grantee.   However,  with
respect to any Incentive Stock Option that shall remain in effect after a change
in status from Employee to Director or Consultant, such Incentive Stock Option
shall cease to be treated as an Incentive Stock Option and shall be treated as a
Non-Qualified Stock Option on the day three (3) months and one (1) day
following such change in status.  Except as provided in
Sections 7 and 8 below, to the extent that the Option was unvested on
the Termination Date, or if the Grantee (or the Holding Company of such Grantee,
as applicable) does not exercise the vested portion of the Option within the
Post-Termination Exercise Period, the Option shall
terminate.

     

    7.           Disability of
Grantee.  In the event the Grantee’s Continuous Service
terminates as a result of his or her Disability, the Grantee (or the Holding
Company of such Grantee, as applicable) may, but only within three (3) months
commencing on the Termination Date (but in no event later than the Expiration
Date), exercise the portion of the Option that was vested on the Termination
Date; provided, however, that if such Disability is not a “disability” as such
term is defined in Section 22(e)(3) of the Code and the Option is an
Incentive Stock Option, such Incentive Stock Option shall cease to be treated as
an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option
on the day three (3) months and one (1) day following the Termination
Date.  To the extent that the Option was unvested on the Termination
Date, or if the Grantee does not exercise the vested portion of the Option
within the time specified herein, the Option shall
terminate.  Section 22(e)(3) of the Code provides that an
individual is permanently and totally disabled if he or she is unable to engage
in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than
twelve (12) months.

     

    8.           Death of
Grantee.  In the event of the termination of the Grantee’s
Continuous Service as a result of his or her death, or in the event of the
Grantee’s death during the Post-Termination Exercise Period or during the three
(3) month period following the Grantee’s termination of Continuous Service as a
result of his or her Disability, the person who acquired the right to exercise
the Option pursuant to Section 9 may exercise the portion of the Option
that was vested at the date of termination within three (3) months commencing on
the date of death (but in no event later than the Expiration
Date).  To the extent that the Option was unvested on the date of
death, or if the vested portion of the Option is not exercised within the time
specified herein, the Option shall terminate.

     

    9.           Transferability of
Option.  Incentive Stock Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Grantee, only by the Grantee.  The Option, if a
Non-Qualified Stock Option, may be transferable (i) by will and by the laws
of descent and distribution and (ii) during the lifetime of the Grantee:
(A) to a Holding Company of such Grantee, or (B) to the extent and in the manner
authorized by the Administrator.  Notwithstanding the foregoing, the
Grantee may designate one or more beneficiaries of the Grantee’s Award in the
event of the Grantee’s death on a beneficiary designation form provided by the
Administrator.  Following the death of the Grantee, the Option, to the
extent provided in Section 8, may be exercised by the Grantee’s legal
representative or by any person empowered to do so under the deceased Grantee’s
will or under the then applicable laws of descent and
distribution.  The terms of the Option shall be binding upon the
executors, administrators, heirs, successors and transferees of the
Grantee.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    If the
Grantee transfers an Award to a Holding Company, the Grantee and the Holding
Company shall enter into an agreement with the Company substantially in the form
attached hereto as Exhibit C, which shall provide, among other things, the
following: (i) the Holding Company shall agree to be bound by the Plan and the
relevant provisions of the Notice and the Option Agreement; and (ii) neither the
Holding Company nor the Grantee shall permit any direct or indirect transfer of
equity interests in the Holding Company.

     

    10.         Term of
Option.  The Option must be exercised no later than the
Expiration Date set forth in the Notice or such earlier date as otherwise
provided herein.  After the Expiration Date or such earlier date, the
Option shall be of no further force or effect and may not be
exercised.

     

    11.         Forfeiture Of Stock Options
and Profits.  Notwithstanding anything to the contrary herein, if a
Grantee engages in any activity or conduct in violation of the non-competition
restrictions of the Grantee’s Labor Contract with the Company or a Related
Entity (or any similar written agreement) after the termination of Continuous
Service, or, if there is no such Agreement or if the Agreement does not contain
a non-competition clause or restriction, and a Grantee Competes (as defined
below) with the Company or a Related Entity after the termination of Continuous
Service, then, at the election of the Company:  (i) all unexercised Options
(whether vested or unvested) shall immediately terminate and be forfeited and
the Grantee or his or her beneficiaries or representatives shall not be able to
exercise the Options, and (ii) to the extent the Grantee or his or her
beneficiaries or representatives have exercised any Options in the six (6) month
period ending on the date the Grantee first engaged in the violation of the
non-competition restrictions,  the Company may rescind any such exercise of
the Options (in which case the Shares shall be returned to the Company and the
Grantee’s exercise price shall be returned, or, in the case of an Option which
was exercised using the “net exercise” clause in Section 4(e) above, the Shares
shall be returned to the Company) or, at the Company’s election, the Grantee may
be required to pay to the Company in cash or a cash equivalent acceptable to the
Company an amount equal to any profits Grantee received from the sale of the
shares subject to the Options, whether any such sale occurs during or after the
period of the Grantee’s Continuous Service for the Company or before or after
the conduct occurs that violates the terms of the agreements with the
Company.  The amount of a Grantee’s profits for these purposes will be
calculated as the difference between the sale price for the shares and the price
he or she paid to exercise the Options.  In any case there shall be no
offset from the amount owed the Company (including in a case where shares are
returned) for any tax liability a Grantee may have incurred as a result of the
exercise of the option or the sale of the shares.  The Grantee agrees
to return the shares or make this payment to the Company, as applicable, no
later than thirty (30) days after the date the Company requests such return or
payment.  The Grantee also consents to a deduction from any amounts
the Company owes them from time to time (including amounts owed as wages or
other compensation, fringe benefits, or vacation pay, as well as any other
amounts owed by the Company) to the extent of the amount the Grantee is
obligated to pay the Company under this Section.  Whether or not the
Company elects to make any set-off in whole or part, if the Company does not
recover by means of set-off the full amount a Grantee owes it, the Grantee
agrees to pay the unpaid balance within the time period specified
above.  For the purposes of this Section 11, a Grantee “Competes” with
the Company if such Grantee (during the period of Grantee’s employment with the
Company, and for the period of six (6) months after the date Grantee’s
employment with the Company ends for any reason) provides services, similar to
those he or she provided to the Company, to any person or entity “in
competition” (as defined below) with the Company anywhere in the
world.  At the present time, the Company and Related Entities engage
in the wholesale and retail sale of vehicles (including auto trading), vehicle
parts and vehicle accessories; vehicle repair and maintenance; insurance agency;
vehicle trade-in business; used car sales business; and vehicle consulting
services and vehicle storage services.  The Grantee understands that
the scope and nature of Grantee’s activities and services, and the Company’s
business, products or services, may change as the Company
develops.  The Grantee agrees that the scope of this provision will
change to cover any changes in Grantee’s activities or services, as well as any
changes in the Company or a Related Entity’s business, products or services,
during Grantee’s Continuous Service with the Company.

     

    12.         Stop-Transfer
Notices.  In order to ensure compliance with the restrictions
on transfer set forth in this Option Agreement, the Notice or the Plan, the
Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    13.         Refusal to
Transfer.  The Company shall not be required (i) to transfer on
its books any Shares that have been sold or otherwise transferred in violation
of any of the provisions of this Option Agreement or (ii) to treat as owner of
such Shares or to accord the right to vote or pay dividends to any purchaser or
other transferee to whom such Shares shall have been so
transferred.

     

    14.         Lock-Up
Agreement.

     

     (a)           Agreement.  The
Grantee (including any Holding Company of such Grantee, as applicable), if
requested by the Company and the lead underwriter of any public offering of the
Ordinary Shares (the “Lead Underwriter”), hereby irrevocably agrees not to sell,
contract to sell, grant any option to purchase, transfer the economic risk of
ownership in, make any short sale of, pledge or otherwise transfer or dispose of
any interest in any Ordinary Shares or any securities convertible into or
exchangeable or exercisable for or any other rights to purchase or acquire
Ordinary Shares (except Ordinary Shares included in such public offering or
acquired on the public market after such offering) during the 200-day period
following the effective date of a registration statement of the Company filed
under the Securities Act of 1933, as amended, or such shorter or longer period
of time as the Lead Underwriter shall specify.  The Grantee further
agrees to sign such documents as may be requested by the Lead Underwriter to
effect the foregoing and agrees that the Company may impose stop-transfer
instructions with respect to such Ordinary Shares subject to the lock-up period
until the end of such period.  The Company and the Grantee acknowledge
that each Lead Underwriter of a public offering of the Company’s stock, during
the period of such offering and for the lock-up period thereafter, is an
intended beneficiary of this Section 14.

     

     (b)           No Amendment Without Consent
of Underwriter.  During the period from identification of a
Lead Underwriter in connection with any public offering of the Company’s
Ordinary Shares until the earlier of (i) the expiration of the lock-up period
specified in Section 14(a) in connection with such offering or (ii) the
abandonment of such offering by the Company and the Lead Underwriter, the
provisions of this Section 14 may not be amended or waived except with the
consent of the Lead Underwriter.

     

    15.         Entire Agreement: Governing
Law.  The Notice, the Plan and this Option Agreement constitute
the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of the
Company and the Grantee with respect to the subject matter hereof, and may not
be modified adversely to the interest of the Grantee (including any Holding
Company of such Grantee, as applicable) except by means of a writing signed by
the Company and the Grantee (or the Holding Company of such Grantee, as
applicable).  Nothing in the Notice, the Plan and this Option
Agreement (except as expressly provided therein) is intended to confer any
rights or remedies on any persons other than the parties.  The Notice,
the Plan and this Option Agreement are to be construed in accordance with and
governed by the internal laws of Hong Kong without giving effect to any choice
of law rule that would cause the application of the laws of any jurisdiction
other than the internal laws of Hong Kong to the rights and duties of the
parties.  Should any provision of the Notice, the Plan or this Option
Agreement be determined to be illegal or unenforceable, such provision shall be
enforced to the fullest extent allowed by law and the other provisions shall
nevertheless remain effective and shall remain enforceable.

     

    16.         Construction.  The
captions used in the Notice and this Option Agreement are inserted for
convenience and shall not be deemed a part of the Option for construction or
interpretation.  Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the
singular.  Use of the term “or” is not intended to be exclusive,
unless the context clearly requires otherwise.

     

    17.         Administration and
Interpretation.  Any question or dispute regarding the
administration or interpretation of the Notice, the Plan or this Option
Agreement shall be submitted by the Grantee (or the Holding Company of such
Grantee, as applicable) or by the Company to the Administrator.  The
resolution of such question or dispute by the Administrator shall be final and
binding on all persons.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    18.         Arbitration.  The
Company, the Grantee (including any Holding Company of such Grantee), and the
Grantee’s assignees pursuant to Section 9 (the “parties”) agree that any
suit, action, or proceeding arising out of or relating to the Notice, the Plan
or this Option Agreement shall be referred to and determined by arbitration at
the Hong Kong International Arbitration Centre and in accordance with its
Domestic Arbitration Rules.  The arbitration proceedings shall be
conducted in the English language.  The parties shall have the right
to conduct discovery which provides them with access to documents and witnesses
that are essential to the dispute, as determined by the
arbitrator.  The parties agree that the arbitrator shall have no
authority to vary the terms of the Notice, the Plan or this Option Agreement or
to award any punitive, consequential, incidental, indirect or special damages,
interest, fees or expenses.  The arbitrator’s written award shall
include the essential findings and conclusions upon which the award is
based.  The decision of the arbitrator shall be final and may be
enforced in any court of competent jurisdiction.  In no event shall a
demand for arbitration be made after the date when the applicable statute of
limitations would bar the institution of a legal or equitable proceeding based
on such claim, dispute or other matter in question.  The parties shall
bear their own attorneys’ fees and other costs arising under this
Section 18 except as otherwise required by law.  If any one or
more provisions of this Section 18 shall for any reason be held invalid or
unenforceable, it is the specific intent of the parties that such provisions
shall be modified to the minimum extent necessary to make it or its application
valid and enforceable.

     

    19.         Notices.  Any
notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the
United States mail by certified mail (if the parties are within the United
States), with postage and fees prepaid, addressed to the other party at its
address as shown in these instruments, or to such other address as such party
may designate in writing from time to time to the other party.

     

    20.         Confidentiality.  The
Grantee (including any Holding Company of such Grantee) shall keep the terms of
this Option Agreement, the Notice and Plan strictly confidential and may not
discuss such terms with anyone except the Plan Administrator or persons
authorized by the Plan Administrator.  If the Grantee breaches the
confidentiality obligations under this Section 20, the Company shall have the
right to revoke the Option.

     

    END
OF AGREEMENT

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

     

    AUTOCHINA
INTERNATIONAL LIMITED

     

    2009
EQUITY INCENTIVE PLAN

     

    EXERCISE
NOTICE

     

    AutoChina
International Limited

     

    Attention:
Corporate Secretary

     

    1.           Effective
as of today, ______________, the undersigned (the “Holder”) hereby elects to
exercise the Holder’s option to purchase ___________ Ordinary Shares (the
“Shares”) of AutoChina International Limited, a company incorporated under the
laws of the Cayman Islands, (the “Company”) under and pursuant to the Company’s
2009 Equity Incentive Plan, as amended from time to time (the “Plan”) and the
Share Option Award Agreement (the “Option Agreement”) and Notice of Share Option
Award (the “Notice”) dated ______________, ________.  Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined
meanings in this Exercise Notice.  The Holder elects to pay the full
Exercise Price for the Shares by the following means, as authorized by the
Option Agreement:

     

    o Cash

     

    o Check

     

    o Surrender or
Attestation of Previously Owned Shares

     

    o Broker-Dealer Sale and
Remittance Procedure

     

    o Net
Exercise

     

     A
combination of the foregoing methods of payment, with the number of Ordinary
Shares pursuant to each of the foregoing methods of payment set forth
immediately as follows in (parenthesis): Cash (________________), Check
(________________), Surrender of Attestation of Previously Owned Shares
(________________), Broker-Dealer Sale and Remittance Procedure
(________________), Net Exercise (________________)

     

    2.           Representations of the
Holder.  The Holder acknowledges that the Holder has received,
read and understood the Notice, the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

     

    3.           Rights as
Shareholder.  Until the issue of such Shares has been
registered in the Register of Members of the Company, no right to vote or
receive dividends or any other rights as a shareholder shall exist with respect
to the Shares, notwithstanding the exercise of the Option.  The
Company shall register the issue of such Shares in the Register of Members of
the Company and issue (or cause to be issued) such share certificate promptly
after the Option is exercised.  No adjustment will be made for a
dividend or other right for which the record date is prior to the date the share
certificate is issued, except as provided in Section 10 of the
Plan.  The Holder shall enjoy rights as a shareholder until such time
as the Holder disposes of the Shares.

     

    4.           Delivery of
Payment.  The Holder herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed to
be satisfied by use of the broker-dealer sale and remittance procedure to pay
the Exercise Price provided in Section 4(d) of the Option
Agreement.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    5.           Tax
Consultation.  The Holder understands that the Holder may
suffer adverse tax consequences as a result of the Holder’s purchase or
disposition of the Shares.  The Holder represents that the Holder has
consulted with any tax consultants the Holder deems advisable in connection with
the purchase or disposition of the Shares and that the Holder is not relying on
the Company for any tax advice.

     

    6.           Taxes.  The
Holder agrees to satisfy all applicable federal, state and local income and
employment tax withholding obligations and herewith delivers to the Company the
full amount of such obligations or has made arrangements acceptable to the
Company to satisfy such obligations.

     

    7.           Restrictive
Legends.  The Holder understands and agrees that the Company
shall cause the legends set forth below or legends substantially equivalent
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares
together with any other legends that may be required by the Company or by state
or federal securities laws:

     

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933 (THE “ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER
THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN
COMPLIANCE THEREWITH.

     

    THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AS SET FORTH IN THE OPTION AGREEMENT BETWEEN THE ISSUER AND THE
ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE
PRINCIPAL OFFICE OF THE ISSUER.  SUCH TRANSFER RESTRICTIONS ARE
BINDING ON TRANSFEREES OF THESE SHARES.

     

    8.           Successors and
Assigns.  The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure
to the benefit of the successors and assigns of the Company.  Subject
to the restrictions on transfer herein set forth, this Exercise Notice shall be
binding upon the heirs, executors, administrators, successors and assigns of the
Holder.

     

    9.           Construction.  The
captions used in this Exercise Notice are inserted for convenience and shall not
be deemed a part of this agreement for construction or
interpretation.  Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the
singular.  Use of the term “or” is not intended to be exclusive,
unless the context clearly requires otherwise.

     

    10.         Administration and
Interpretation.  The Holder hereby agrees that any question or
dispute regarding the administration or interpretation of this Exercise Notice
shall be submitted by the Holder or by the Company to the
Administrator.  The resolution of such question or dispute by the
Administrator shall be final and binding on all persons.

     

    11.         Governing Law;
Severability.  This Exercise Notice is to be construed in
accordance with and governed by the internal laws of Hong Kong without giving
effect to any choice of law rule that would cause the application of the laws of
any jurisdiction other than the internal laws of Hong Kong to the rights and
duties of the parties.  Should any provision of this Exercise Notice
be determined by a court of law to be illegal or unenforceable, such provision
shall be enforced to the fullest extent allowed by law and the other provisions
shall nevertheless remain effective and shall remain enforceable.

     

    12.         Notices.  Any
notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon personal delivery, upon deposit for delivery by an
internationally recognized express mail courier service or upon deposit in the
United States mail by certified mail (if the parties are within the United
States), with postage and fees prepaid, addressed to the other party at its
address as shown below beneath its signature, or to such other address as such
party may designate in writing from time to time to the other
party.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    13.         Further
Instruments.  The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this agreement.

     

    14.         Entire
Agreement.  The Notice, the Plan and the Option Agreement are
incorporated herein by reference and together with this Exercise Notice
constitute the entire agreement of theparties with respect to the subject matter
hereof and supersede in their entirety all prior undertakings and agreements of
the Company and the Holder with respect to the subject matter hereof, and may
not be modified adversely to the Holder’s interest except by means of a writing
signed by the Company and the Holder.  Nothing in the Notice, the
Plan, the Option Agreement and this Exercise Notice (except as expressly
provided therein) is intended to confer any rights or remedies on any persons
other than the parties.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  Submitted
      by:

                                                	 
      	
                                                  Accepted
      by:

                                                
	 
      	 
      	 
      
	
                                                  HOLDER:

                                                	 
      	
                                                  AUTOCHINA
      INTERNATIONAL LIMITED

                                                
	  	 	 
      	 
    
	  	 	      
                                                  By:

                                                	 
	
                                                  (Signature)

                                                	 
      	
                                                   

                                                	 
      
	 	 	 	 
	 
      	 
      	
                                                  Title:

                                                	 
      
	 	 	 
	
                                                  Address:

                                                	 
      	
                                                  Address:

                                                
	 
      	 
      	 
      
	 	 	 
	 	 	 
	 
      	 
      	 
      

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    EXHIBIT
B

     

    AUTOCHINA
INTERNATIONAL LIMITED

     

    2009
EQUITY INCENTIVE PLAN

     

    INVESTMENT
REPRESENTATION STATEMENT

    

    
      
        
          
            
              
                
                  	
                          GRANTEE:

                        	 
      
	 
      	 
      
	
                          COMPANY:

                        	
                          AUTOCHINA INTERNATIONAL
    LIMITED

                        
	 
      	 
      
	
                          SECURITY:

                        	
                          ORDINARY SHARES

                        
	 
      	 
      
	
                          AMOUNT:

                        	 
      
	 
      	 
      
	
                          DATE:

                        	
                           

                        

                

              

            

          

        

      

    

     

    In
connection with the purchase of the above-listed Securities, the undersigned
Grantee represents to the Company the following:

     

    (a)           Grantee
is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Securities.  Grantee is
acquiring these Securities for investment for Grantee’s own account only and not
with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act of 1933, as amended (the “Securities
Act”).

     

    (b)           Grantee
acknowledges and understands that the Securities constitute “restricted
securities” under the Securities Act and have not been registered under the
Securities Act in reliance upon a specific exemption therefrom, which exemption
depends upon among other things, the bona fide nature of Grantee’s investment
intent as expressed herein.  Grantee further understands that the
Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is
available.  Grantee further acknowledges and understands that the
Company is under no obligation to register the Securities.  Grantee
understands that the certificate evidencing the Securities will be imprinted
with a legend which prohibits the transfer of the Securities unless they are
registered or such registration is not required in the opinion of counsel
satisfactory to the Company.

     

    (c)           Grantee
is familiar with the provisions of Rule 701 and Rule 144, each
promulgated under the Securities Act, which, in substance, permit limited public
resale of “restricted securities” acquired, directly or indirectly from the
issuer thereof, in a non-public offering subject to the satisfaction of certain
conditions.  Rule 701 provides that if the issuer qualifies under
Rule 701 at the time of the grant of the Option to the Grantee, the
exercise will be exempt from registration under the Securities
Act.  In the event the Company becomes subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
ninety (90) days thereafter (or such longer period as any market stand-off
agreement may require) the Securities exempt under Rule 701 may be resold,
except in the case of affiliates, such Securities may be resold subject to the
satisfaction of the applicable conditions specified by Rule 144, including:
(1) the availability of certain public information about the Company,
(2) the amount of Securities being sold during any three month period not
exceeding specified limitations, (3) the resale being made in an unsolicited
“broker’s transaction,” in transactions directly with a “market maker” or
“riskless principal transactions” (as said terms are defined under the
Securities Exchange Act of 1934) and (4) the timely filing of a
Form 144, if applicable.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    In the
event that the Company does not qualify under Rule 701 at the time of the
grant of the Option, then the Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which may require: the
availability of current public information about the Company; the resale to
occur more than a specified period after the purchase and full payment (within
the meaning of Rule 144) for the Securities; and, in the case of the sale of
Securities by an affiliate, the satisfaction of the conditions set forth in
sections (2), (3) and (4) of the paragraph immediately above.

     

    (d)           Grantee
further understands that in the event all of the applicable requirements of
Rule 701 or 144 are not satisfied, registration under the Securities Act,
compliance with Regulation A, or some other registration exemption will be
required; and that, notwithstanding the fact that Rules 144 and 701 are not
exclusive, the Staff of the Securities and Exchange Commission has expressed its
opinion that persons proposing to sell private placement securities other than
in a registered offering and otherwise than pursuant to Rules 144 or 701 will
have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and
their respective brokers who participate in such transactions do so at their own
risk.  Grantee understands that no assurances can be given that any
such other registration exemption will be available in such event.

     

    (e)           Grantee
represents that Grantee is a resident of the state of
____________________.

    

    
      
        
          	 
      	
                  Signature
      of Grantee:

                
	 
      	 
      
	 
      	
                  Date:

                

        

      

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    EXHIBIT
C

     

    TRANSFER
AGREEMENT

     

    THIS
TRANSFER AGREEMENT (this “Agreement”) is made as of ____, 200__ by and among
[Grantee] (the “Grantee”), [Holding Company] (the “Holding Company”) and
AutoChina International Limited, a company incorporated under the laws of the
Cayman Islands (the “Company”).

     

    WHEREAS,
the Grantee holds an option (the “Option”) to purchase [   ]
ordinary shares of the Company (the “Shares”);

     

    WHEREAS,
the Option was issued to the Grantee by the Company pursuant to the Company’s
2009 Equity Incentive Plan (the “Plan”) and a Notice and Share Option Award
Agreement (the “Award Agreement”);

     

    WHEREAS,
the Holding Company is an investment holding company wholly owned by the
Grantee;

     

    WHEREAS,
the Plan and the Award Agreement expressly permit the transfer of the Option by
the Grantee to an investment holding company wholly owned by the
Grantee,

     

    NOW,
THEREFORE, the parties hereto agree as follows:

     

    1.           The
Grantee hereby agrees to transfer the Option to the Holding Company in
consideration of [   ] ordinary shares of the Holding Company
(the “Holding Company Shares”), and the Holding Company hereby agrees to issue
such Holding Company Shares to the Grantee in exchange for the
Option.

     

    2.           The
Holding Company agrees to be bound by all provisions of the Plan and the Award
Agreement (except those that relate to Grantee’s employment and provision of
services) as if it were the Grantee thereunder.

     

    3.           The
Holding Company agrees that it shall not issue any securities to any third party
other than the Grantee.  The Holding Company further agrees that it
shall not be involved in any business activity except in connection with its
ownership of the Option, such as exercising the Option (in full or in part) and
holding and disposing of the Shares.

     

    4.           Representations
and Warranties.

     

    (i)          The
Holding Company hereby represents that its authorized share capital is
[US$  ] divided into [   ] ordinary shares, par value
[US$  each], [   ] of which are issued and
outstanding.  As of the date hereof, all of the [   ]
ordinary shares are held by the Grantee.  Upon the completion of the
transactions contemplated hereunder, the Grantee will hold [   ]
ordinary shares of the Holding Company, which will represent all of the issued
and outstanding ordinary shares of the Holding Company.

     

    (ii)         The
Grantee hereby represents that it has valid title to the Option, free of liens,
charges and other encumbrances, except as provided in the Plan, the Award
Agreement and this Agreement.

     

    (iii)        Each
of the parties hereto represents that this Agreement, when delivered, will
constitute the legal, valid and binding obligations of such party, enforceable
against such party in accordance with its terms.

     

    6.           Within
five (5) business days following the execution of this Agreement, (i) the
Holding Company shall issue a share certificate to the Grantee representing the
Holding Company Shares and update its register of members accordingly; and (ii)
the Company shall update its records to reflect the transfer of the Option from
the Grantee to the Holding Company.

     

    7.           This
Agreement shall be governed by and construed under the laws of the Cayman
Islands.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    8.           This
Agreement may be amended with the written consent of the Grantee, the Holding
Company and the Company.

     

    9.           This
Agreement may be executed in two or more counterparts, each of which shall be an
original, but all of which together shall constitute one
instrument.

     

    IN
WITNESS WHEREOF, the parties hereto have caused their respective duly authorized
representatives to execute this Agreement as of the date and year first above
written.

    

    
      
        
          
            
              
                
                  
                    	 
      	
                            GRANTEE

                             

                          
	 
      	 
      	 
      
	 
      	
                             

                            HOLDING
      COMPANY

                          
	 
      	 
      
	 	 	 
	 
      	
                            [Name
      of company]

                          
	 
      	 
      
	 
      	
                            By:

                             

                          
	 
      	 
      	 
      
	 
      	
                            Name:

                          
	 
      	
                            Title:

                          
	 
      	 
      
	 
      	
                            THE
      COMPANY

                          
	 
      	 
      
	 
      	
                            AutoChina
      International Limited

                          
	 
      	 
      
	 
      	 
      	 
      
	 
      	
                            Name:

                          
	 
      	
                            Title:

                          

                  

                

              

            

          

        

      

    

    
      
         

      

      
        13

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