Document:

Unassociated Document

    WARRANT
      AGREEMENT

    

    

    This
      WARRANT
      AGREEMENT
      (this
“Agreement”)
      is
      made as of [ ], 2008, by and between Infinity I-China Acquisition Corporation,
      a
      company formed under the laws of the Cayman Islands having its principal place
      of business at Unit 5707, The Center, 99 Queen’s Road Central, Hong Kong
      (“Company”)
      and
      American Stock Transfer & Trust Company, a New York corporation with offices
      at 59 Maiden Lane, Plaza Level, New York, New York 10038 (the “Warrant
      Agent”).
      

    

    WHEREAS,
      the
      Company is engaged in a public offering (the “Public
      Offering”)
      of
      Units (“Units”)
      and,
      in connection therewith, has determined to issue and deliver up to (i) 4,500,000
      Warrants (the “Public
      Warrants”)
      to the
      public investors, each of such Public Warrants evidencing the right of the
      holder thereof to purchase one ordinary share, par value $.0001 per share,
      of
      the Company (“Ordinary
      Shares”)
      for
      $6.00, subject to adjustment as described herein, (ii) 450,000 Warrants included
      as part of a unit purchase option issued to Morgan Joseph & Co. Inc.
      (“Morgan
      Joseph”)
      and
      Legend Merchant Group (“Legend”,
      and
      together with Morgan Joseph the “Representatives”)
      as
      representatives of the underwriters (the “Underwriters”)
      or
      their designees (the “Underwriter’s
      Warrants”),
      with
      each of such Underwriter’s Warrants evidencing the right of the holder thereof
      to purchase one Ordinary Share for $6.60, subject to adjustment as described
      herein and (iii) a 30 day option to purchase up to 675,000 additional units
      (over and above the 4,500,000 units referred to above) solely to cover
      over-allotment, if any (“Over-allotment
      Option”);

    

    WHEREAS,
      immediately prior to the completion of the Public Offering, the Company shall
      sell and issue 1,500,000 Company warrants in a private placement under
      Regulation S of the Securities Act of 1933, as amended (the “Private
      Warrants”),
      pursuant to certain subscription agreements dated December 26, 2007 (the
“Subscription
      Agreement”),
      each
      of such Private Warrants evidencing the right of the holder thereof (the
“Initial
      Purchasers”)
      to
      purchase one Ordinary Share for $6.00 (the Public Warrants, the Underwriter’s
      Warrants and the Private Warrants are collectively referred to herein as the
      “Warrants”);
      

    

    WHEREAS,
      the
      Company has filed with the Securities and Exchange Commission (the “SEC”)
      a
      Registration Statement, No. 333-[ ] on Form F-1 (“Registration
      Statement”)
      for
      the registration under the Securities Act of 1933, as amended (“Act”)
      of,
      among other securities, the Public Warrants, the Underwriter’s Warrants and the
      Ordinary Shares issuable upon exercise of each of the Public Warrants and the
      Underwriter’s Warrants; 

    

    WHEREAS,
      the
      Company desires the Warrant Agent to act on behalf of the Company, and the
      Warrant Agent is willing to so act, in connection with the issuance,
      registration, transfer, exchange, redemption and exercise of the Warrants;
      

    

    WHEREAS,
      the
      Company desires to provide for the form and provisions of the Warrants, the
      terms upon which they shall be issued and exercised, and the respective rights,
      limitation of rights, and immunities of the Company, the Warrant Agent and
      the
      holders of the Warrants; and

    

    WHEREAS,
      all
      acts and things have been done and performed which are necessary to make the
      Warrants, when executed on behalf of the Company and countersigned by or on
      behalf of the Warrant Agent, as provided herein, the valid, binding and legal
      obligations of the Company, and to authorize the execution and delivery of
      this
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual agreements herein contained, the parties hereto
      agree as follows:

    

    1. Appointment
      of Warrant Agent. The Company hereby appoints the Warrant Agent to act as
      agent for the Company for the Warrants, and the Warrant Agent hereby accepts
      such appointment and agrees to perform the same in accordance with the terms
      and
      conditions set forth in this Agreement.

    

    2. Warrants.

    

    2.1 Form
      of Warrant.
      Each
      Warrant shall be issued in registered form only. The Public Warrants and the
      Underwriter’s Warrants shall be in substantially the form of Exhibit
      A
      hereto
      and the Private Warrants shall be in substantially the form of Exhibit
      B
      hereto,
      the provisions of each of which are incorporated herein, and shall be signed
      by,
      or bear the facsimile signature of, the Chief Executive Officer or President
      and
      Chief Financial Officer, Treasurer, Secretary or Assistant Secretary of the
      Company and shall bear a facsimile of the Company’s seal. In the event the
      person whose facsimile signature has been placed upon any Warrant shall have
      ceased to serve in the capacity in which such person signed the Warrant before
      such Warrant is issued, it may be issued with the same effect as if he or she
      had not ceased to be such at the date of issuance.

    

    2.2 Effect
      of Countersignature.
      Unless
      and until countersigned by the Warrant Agent pursuant to this Agreement, a
      Warrant shall be invalid and of no effect and may not be exercised by the holder
      thereof.

    

    2.3 Registration.

    

    2.3.1 Warrant
      Register.
      The
      Warrant Agent shall maintain books (“Warrant
      Register”)
      for
      the registration of original issuance and the registration of transfer of the
      Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall
      issue and register the Warrants in the names of the respective holders thereof
      in such denominations and otherwise in accordance with instructions delivered
      to
      the Warrant Agent by the Company.

    

    2.3.2 Registered
      Holder.
      Prior
      to due presentment for registration of transfer of any Warrant, the Company
      and
      the Warrant Agent may deem and treat the person in whose name such Warrant
      shall
      be registered upon the Warrant Register (“Registered
      Holder”),
      as
      the absolute owner of such Warrant and of each Warrant represented thereby
      (notwithstanding any notation of ownership or other writing on the Warrant
      Certificate made by anyone other than the Company or the Warrant Agent), for
      the
      purpose of any exercise thereof, and for all other purposes, and neither the
      Company nor the Warrant Agent shall be affected by any notice to the
      contrary.

    

    2.4 Detachability
      of Public Warrants.
      The
      securities comprising the Units will begin to trade separately on
      the
      10th
      business
      day (or as soon as practicable thereafter) following the earlier of (i) the
      expiration or termination of the underwriters’ over-allotment option or (ii) its
      exercise in full (the
      “Detachment
      Date”),
      provided
      that in no event will the Representatives allow the separate trading of the
      securities comprising the Units until (i) the Company files with the SEC a
      Current Report on Form 6-K or similar form, which includes an audited balance
      sheet reflecting the receipt by the Company of the gross proceeds of the sale
      of
      the Private Warrants and Public Offering, including the proceeds received by
      the
      Company from the exercise of the Underwriters' Over-allotment Option, (ii)
      the
      Company issues a press release and files with the SEC a Current Report on Form
      6-K or similar form announcing when such separate trading will begin and (iii)
      the Underwriters’ Over-allotment Option has either expired or been exercised in
      full. Following the date that the Ordinary Shares and Warrants are eligible
      to
      trade separately, the Units will continue to be listed for trading, and any
      holder of Units may elect to break apart a Unit and trade the Ordinary Shares
      or
      Warrants separately or as a Unit. Unitholders will have the ability to trade
      Ordinary Shares or Warrants as Units until such time as the Warrants expire
      or
      are redeemed. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    3. Terms
      and Exercise of Warrants.

    

    3.1 Warrant
      Price.
      Each
      Public Warrant and each Private Warrant shall, when countersigned by the Warrant
      Agent, entitle the registered holder thereof, subject to the provisions of
      such
      Warrant and this Warrant Agreement, to purchase from the Company the number
      of
      Ordinary Shares stated therein, at the price of $6.00 per whole share, subject
      to the adjustments provided in this Section 3.1 and Section 4 hereof. Each
      Underwriter Warrant shall, when countersigned by the Warrant Agent, entitle
      the
      registered holder thereof, subject to the provisions of such Warrant and this
      Warrant Agreement, to purchase from the Company the number of Ordinary Shares
      stated therein, at the price of $6.60 per whole share, subject to the
      adjustments provided in this Section 3.1 and Section 4 hereof. The term “Warrant
      Price” as used in this Warrant Agreement refers to the price per share at which
      Ordinary Shares may be purchased at the time a Warrant is exercised. The Company
      in its sole discretion may lower the Warrant Price at any time prior to the
      Expiration Date for a period of not less than twenty business days, provided
      that any such reduction shall be identical among all of the
      Warrants.

    

    3.2 Duration
      of Warrants.

    

    3.2.1 Exercise
      Period.
      The
      Public Warrants and Underwriter’s Warrants may be exercised only during the
      period commencing on the later of: (i) the consummation by the Company of a
      business combination (as described more fully in the Registration Statement,
      “Business
      Combination”),
      or
      (ii) [ , 2009] [one year from the date of the filing of the Registration
      Statement], and will expire on [ ], 2012 (four years after the date of the
      filing of the Registration Statement), or earlier upon redemption as provided
      in
      Section 6 of this Agreement, and accordingly, will only be exercised after
      the
      trust account has been terminated and distributed. Notwithstanding the
      foregoing, no Public Warrant or or Underwriter’s Warrant shall be exercisable
      unless, at the time of exercise, a registration statement relating to the
      Ordinary Shares issuable upon the exercise of such Public Warrant or
      Underwriter’s Warrant is effective and current and a prospectus is available for
      use by the holders thereof and the Ordinary Shares have been qualified or deemed
      to be exempt under the securities laws of the state of residence of the holder
      of such Public Warrants or Underwriter’s Warrants.

    

    3.2.2 Private
      Warrants.
      A
      Private Warrant may be exercised only during the period commencing on the later
      of: (i) the consummation of a Business Combination by the Company or (ii) [
      ],
      2009, and terminating at 5:00 p.m., New York City time on the earlier to occur
      of (x) [ ], 2012 or (y) the date fixed for redemption of the Warrants as
      provided in Section 6 of this Agreement. The Private Warrants are not subject
      to
      redemption so long as they are held by the Initial Purchaser or its permitted
      designees. The Private Warrants may not be sold, assigned or transferred until
      after the day following consummation of a Business Combination.

    

    3.2.3 General.
      The
      period during which a Warrant may be exercised shall be deemed the “Exercise
      Period”
and
      the
      termination of such Exercise Period shall be deemed the “Expiration
      Date”.
      Except
      with respect to the right to receive the Redemption Price (as set forth in
      Section 6 hereunder), each Warrant not exercised on or before the Expiration
      Date shall become void, and all rights thereunder and all rights in respect
      thereof under this Agreement shall cease at the close of business on the
      Expiration Date. The Company in its sole discretion may extend the duration
      of
      the Warrants by delaying the Expiration Date; provided, however, the Company
      will provide notice to registered holders of the Warrants of such extension
      of
      not less than 20 days and, further provided that any such extension shall be
      identical in duration among all of the Warrants. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.3 Exercise
      of Warrants.

    

    3.3.1 Payment.
      Subject
      to the provisions of the Warrants and this Warrant Agreement, a Warrant, when
      countersigned by the Warrant Agent, may be exercised by the registered holder
      thereof by surrendering it at the office of the Warrant Agent, or at the office
      of its successor as Warrant Agent, as set forth in the Warrant, duly
      executed by paying in full, in lawful money of the United States, in cash,
      good certified check or good bank draft payable to the order of the Company,
      the
      Warrant Price for each full Ordinary Share as to which the Warrant is exercised
      and any and all applicable taxes due in connection with the exercise of the
      Warrant, the exchange of the Warrant for the Ordinary Shares and the issuance
      of
      such Ordinary Shares. 

    

    3.3.2 Cashless
      Exercise of Private Warrant.
      Notwithstanding anything contained herein to the contrary, the Private Warrants
      may, at any time, provided that at the time of exercise they are held by the
      original purchaser thereof or any of their permitted assigns, be exercised
      by
      surrendering such Private Warrants for that number of Ordinary Shares equal
      to
      the quotient obtained by dividing (x) the product of the number of Ordinary
      Shares underlying the Warrant, multiplied by the difference between the Warrant
      Price and the “FMV” (defined below) by (y) the FMV. The “FMV”
shall
      mean the average reported last sale price of the Ordinary Shares for the 10
      trading days ending on the third business day prior to the date on which notice
      of exercise is received by the Company. 

    

    3.3.3 Issuance
      of Certificates.
      As soon
      as practicable after the exercise of any Warrant and the clearance of the funds
      in payment of the Warrant Price, the Company shall issue to the registered
      holder of such Warrant a certificate or certificates for the number of full
      Ordinary Shares to which he, she or it is entitled, registered in such name
      or
      names as may be directed by him, her or it, and if such Warrant shall not have
      been exercised in full, a new countersigned Warrant for the number of shares
      as
      to which such Warrant shall not have been exercised. Notwithstanding the
      foregoing, the Company shall not be obligated to deliver any securities pursuant
      to the exercise of a Warrant unless: (i) a registration statement under the
      Act
      with respect to the Ordinary Shares issuable upon such exercise is effective
      or
      (ii) in the opinion of counsel to the Company, the exercise of the Warrants
      is
      exempt from the registration requirements of the Act and such securities are
      qualified for sale or exempt from qualification under applicable securities
      laws
      of the states or other jurisdictions in which the registered holders reside.
      Warrants may not be exercised by, or securities issued to, any registered holder
      in any state in which such exercise or issuance would be unlawful. In no event
      will the Company be required to provide the registered holder of a warrant
      with
      a net-cash settlement or other consideration in lieu of physical settlement
      in
      Ordinary Shares, regardless of whether the Ordinary Shares underlying the
      Warrants is registered pursuant to an effective registration statement.
      Accordingly, the Warrants may expire unexercised and worthless if a current
      registration statement covering the Ordinary Shares is not
      effective.

    

    3.3.4 Valid
      Issuance.
      All
      Ordinary Shares issued upon the proper exercise of a Warrant in conformity
      with
      this Agreement shall be validly issued, fully paid and
      nonassessable.

    

    3.3.5 Date
      of Issuance.
      Each
      person in whose name any such certificate for Ordinary Shares is issued shall
      for all purposes be deemed to have become the holder of record of such shares
      on
      the date on which the Warrant was surrendered and payment of the Warrant Price
      was made, irrespective of the date of delivery of such certificate, except
      that,
      if the date of such surrender and payment is a date when the share transfer
      books of the Company are closed, such person shall be deemed to have become
      the
      holder of such shares at the close of business on the next succeeding date
      on
      which the share transfer books are open.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4. Adjustments.

    

    4.1 Share
      Dividends - Split Ups.
      If
      after the date hereof, and subject to the provisions of Section 4.6 below,
      the
      number of outstanding Ordinary Shares is increased by a share dividend payable
      in Ordinary Shares, or by a split up of Ordinary Shares, or other similar event,
      then, on the effective date of such share dividend, split up or similar event,
      the number of Ordinary Shares issuable on exercise of each Warrant shall be
      increased in proportion to such increase in outstanding Ordinary
      Shares.

    

    4.2 Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 4.6, the number
      of outstanding Ordinary Shares is decreased by a consolidation, combination,
      reverse stock split or reclassification of Ordinary Shares or other similar
      event, then, on the effective date of such consolidation, combination, reverse
      stock split, reclassification or similar event, the number of Ordinary Shares
      issuable on exercise of each Warrant shall be decreased in proportion to such
      decrease in outstanding Ordinary Shares.

    

    4.3 Adjustments
      in Exercise Price.
      Whenever the number of Ordinary Shares purchasable upon the exercise of the
      Warrants is adjusted, as provided in Section 4.1 and 4.2 above, the Warrant
      Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price
      immediately prior to such adjustment by a fraction (x) the numerator of which
      shall be the number of Ordinary Shares purchasable upon the exercise of the
      Warrants immediately prior to such adjustment, and (y) the denominator of which
      shall be the number of Ordinary Shares so purchasable immediately
      thereafter.

    

    4.4 Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding Ordinary Shares
      (other than a change covered by Section 4.1 or 4.2 hereof or that solely affects
      the par value of such Ordinary Shares), or in the case of any merger or
      consolidation of the Company with or into another corporation (other than a
      consolidation or merger in which the Company is the continuing corporation
      and
      that does not result in any reclassification or reorganization of the
      outstanding Ordinary Shares), or in the case of any sale or conveyance to
      another corporation or entity of the assets or other property of the Company
      as
      an entirety or substantially as an entirety in connection with which the Company
      is dissolved, the Warrant holders shall thereafter have the right to purchase
      and receive, upon the basis and upon the terms and conditions specified in
      the
      Warrants and in lieu of the Ordinary Shares of the Company immediately
      theretofore purchasable and receivable upon the exercise of the rights
      represented thereby, the kind and amount of Ordinary Shares or other securities
      or property (including cash) receivable upon such reclassification,
      reorganization, merger or consolidation, or upon a dissolution following any
      such sale or transfer, that the Warrant holder would have received if such
      Warrant holder had exercised his, her or its Warrant(s) immediately prior to
      such event; and if any reclassification also results in a change in Ordinary
      Shares covered by Section 4.1 or 4.2, then such adjustment shall be made
      pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The provisions of
      this Section 4.4 shall similarly apply to successive reclassifications,
      reorganizations, mergers or consolidations, sales or other
      transfers.

    

    4.5 Notices
      of Changes in Warrant.
      Upon
      every adjustment of the Warrant Price or the number of shares issuable on
      exercise of a Warrant, the Company shall give written notice thereof to the
      Warrant Agent, which notice shall state the Warrant Price resulting from such
      adjustment and the increase or decrease, if any, in the number of shares
      purchasable at such price upon the exercise of a Warrant, setting forth in
      reasonable detail the method of calculation and the facts upon which such
      calculation is based. Upon the occurrence of any event specified in Sections
      4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company shall give written
      notice to the Warrant holder, at the last address set forth for such holder
      in
      the Warrant Register, of the record date or the effective date of the event.
      Failure to give such notice, or any defect therein, shall not affect the
      legality or validity of such event.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.6 No
      Fractional Shares.
      Notwithstanding any provision contained in this Warrant Agreement to the
      contrary, the Company shall not issue fractional shares upon exercise of
      Warrants. If, by reason of any adjustment made pursuant to this Section 4,
      the
      holder of any Warrant would be entitled, upon the exercise of such Warrant,
      to
      receive a fractional interest in a share, the Company shall, upon such exercise,
      round up to the nearest whole number the number of the Ordinary Shares to be
      issued to the Warrant holder.

    

    4.7 Form
      of Warrant.
      The
      form of Warrant need not be changed because of any adjustment pursuant to this
      Section 4, and Warrants issued after such adjustment may state the same Warrant
      Price and the same number of shares as is stated in the Warrants initially
      issued pursuant to this Agreement. However, the Company may at any time in
      its
      sole discretion make any change in the form of Warrant that the Company may
      deem
      appropriate and that does not affect the substance thereof, and any Warrant
      thereafter issued or countersigned, whether in exchange or substitution for
      an
      outstanding Warrant or otherwise, may be in the form as so changed.

    

    5. Transfer
      and Exchange of Warrants.

    

    5.1 Transfer
      of Warrants.
      Prior
      to the Detachment Date, the Public Warrants may be transferred or exchanged
      only
      together with the Unit in which such Warrant is included, and only for the
      purpose of effecting, or in conjunction with, a transfer or exchange of such
      Unit. Furthermore, each transfer of a Unit on the register relating to such
      Units shall operate also to transfer the Warrants included in such Unit. From
      and after the Detachment Date this Section 5.1 will have no further force and
      effect.

    

    5.2 Registration
      of Transfer.
      The
      Warrant Agent shall register the transfer, from time to time, of any outstanding
      Warrant upon the Warrant Register, upon surrender of such Warrant for transfer,
      properly endorsed with signatures properly guaranteed and accompanied by
      appropriate instructions for transfer. Upon any such transfer, a new Warrant
      representing an equal aggregate number of Warrants shall be issued and the
      old
      Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled
      shall
      be delivered by the Warrant Agent to the Company from time to time upon
      request.

    

    5.3 Procedure
      for Surrender of Warrants.
      Warrants may be surrendered to the Warrant Agent, together with a written
      request for exchange or transfer, and thereupon the Warrant Agent shall issue
      in
      exchange therefor one or more new Warrants as requested by the registered holder
      of the Warrants so surrendered, representing an equal aggregate number of
      Warrants; provided, however, in the event a Warrant surrendered for transfer
      bears a restrictive legend, the Warrant Agent shall not cancel such Warrant
      and
      issue new Warrants in exchange therefor until the Warrant Agent has received
      an
      opinion of counsel for the Company stating such transfer may be made and
      indicating whether the new Warrants must also bear a restrictive
      legend.

    

    5.4 Fractional
      Warrants.
      The
      Warrant Agent shall not be required to effect any registration of transfer
      or
      exchange which will result in the issuance of a warrant certificate for a
      fraction of a warrant.

    

    5.5 Service
      Charges.
      No
      service charge shall be made for any exchange or registration of transfer of
      Warrants.

    

    5.6 Warrant
      Execution and Countersignature.
      The
      Warrant Agent is hereby authorized to countersign and deliver, in accordance
      with the terms of this Agreement, the Warrants required to be issued pursuant
      to
      the provisions of this Section 5, and the Company, whenever required by the
      Warrant Agent, will supply the Warrant Agent with Warrants duly executed on
      behalf of the Company for such purpose.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.7 Private
      Warrants.
      Notwithstanding anything herein to the contrary, the Warrant Agent shall not
      register for transfer any Private Warrants until after the consummation of
      a
      Business Combination, except: (i) by transfer to the partners of an Initial
      Purchaser or to employees, agents or consultants of an Initial Purchaser or
      any
      of its affiliates; (ii) by gift to an immediate family member of the Initial
      Purchasers’ partners or to a trust, the beneficiary of which is a partner of the
      Initial Purchasers or a member of the immediate family of the Initial
      Purchasers’ partners, (iii) by virtue of the laws of descent and distribution
      upon death of any partners of any Initial Purchaser, (iv) pursuant to a
      qualified domestic relations order, (v) in the event of the Company’s
      liquidation prior to completion of its Business Combination or (vi) in the
      event
      of consummation of a liquidation, merger, stock exchange or other similar
      transaction which results in all Company shareholders having the right to
      exchange their Ordinary Shares for cash, securities or other property subsequent
      to consummation of the Business Combination; provided, however, such permitted
      transfers may be implemented only upon the respective transferee’s written
      agreement to be bound by the terms and conditions of this Agreement and of
      the
      Insider Letter signed by the Initial Purchaser transferring the Escrow
      Securities

    

    6. Redemption.

    

    6.1 Redemption.
      Not
      less than all of the outstanding Public Warrants and Underwriter’s Warrants may
      be redeemed, at the option of the Company, at any time after they become
      exercisable and prior to their expiration, at the office of the Warrant Agent,
      upon the notice referred to in Section 6.3, at the price of $.01 per Warrant
      (“Redemption
      Price”),
      provided that the last sales price of the Ordinary Shares has been equal to
      or
      greater than $11.50 per share, on each of twenty (20) trading days within any
      thirty (30) trading day period ending on the third business day prior to the
      date on which notice of redemption is given. Notwithstanding the foregoing,
      the
      Registration Statement must be current in order for the Company to exercise
      its
      redemption rights pursuant to this Section 6. The provisions of this Section
      6.1
      may not be modified, amended or deleted without the prior written consent of
      the
      Representatives. Notwithstanding the foregoing, the Private Warrants are not
      subject to this Section 6.1 provided they are held by the initial purchasers
      thereof, or their permitted assignees or designees.

    

    6.2 Date
      Fixed for, and Notice of, Redemption.
      In the
      event the Company shall elect to redeem all of the Warrants, the Company shall
      fix a date for the redemption. Notice of redemption shall be mailed by first
      class mail, postage prepaid, by the Company not less than 30 days prior to
      the
      date fixed for redemption to the registered holders of the Warrants to be
      redeemed at their last addresses as they shall appear on the Warrant Register.
      Any notice mailed in the manner herein provided shall be conclusively presumed
      to have been duly given whether or not the registered holder received such
      notice.

    

    6.3 Exercise
      After Notice of Redemption.
      The
      Warrants may be exercised in accordance with Section 3 of this Warrant Agreement
      at any time after notice of redemption shall have been given by the Company
      pursuant to Section 6.2 hereof and prior to the time and date fixed for
      redemption. On and after the redemption date, the record holder of the Warrants
      shall have no further rights except to receive, upon surrender of the Warrants,
      the Redemption Price.

    

    6.4 Outstanding
      Warrants Only.
      The
      Company understands the redemption rights provided for by this Section 6 apply
      only to outstanding Public Warrants and Underwriter’s Warrants. To the extent a
      person holds rights to purchase such Warrants, such purchase rights shall not
      be
      extinguished by redemption. However, once such purchase rights are exercised,
      the Company may redeem the Warrants issued upon such exercise provided that
      the
      criteria for redemption are met, including the opportunity of the Warrant holder
      to exercise prior to redemption pursuant to Section 6.3. The provisions of
      this
      Section 6.4 may not be modified, amended or deleted without the prior written
      consent of the Representatives.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6.5 Exclusion
      of Private Warrants.
      The
      Company understands that the redemption rights provided for by this Section
      6 do
      not apply to the Private Warrants if at the time of redemption such warrants
      continue to be held by the Initial Purchaser or its permitted assigns. However,
      once such Private Warrants are transferred other than to any permitted assign,
      the Company may redeem the Private Warrants, provided that the criteria for
      redemption are met, including the opportunity of the Warrant holder to exercise
      prior to redemption pursuant to Section 6.3.

    

    7. Other
      Provisions Relating to Rights of Holders of Warrants.

    

    7.1 No
      Rights as Shareholder.
      A
      Warrant does not entitle the registered holder thereof to any of the rights
      of a
      shareholder of the Company, including, without limitation, the right to receive
      dividends, or other distributions, exercise any preemptive rights to vote or
      to
      consent or to receive notice as shareholders in respect of the meetings of
      shareholders or the election of directors of the Company or any other
      matter.

    

    7.2 Lost,
      Stolen, Mutilated, or Destroyed Warrants.
      If any
      Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant
      Agent may on such terms as to indemnity or otherwise as they may in their
      discretion impose (which shall, in the case of a mutilated Warrant, include
      the
      surrender thereof), issue a new Warrant of like denomination, tenor, and date
      as
      the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant
      shall
      constitute a substitute contractual obligation of the Company, whether or not
      the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any
      time
      enforceable by anyone.

    

    7.3 Reservation
      of Ordinary Shares.
      The
      Company shall at all times reserve and keep available a number of its authorized
      but unissued Ordinary Shares sufficient to permit the exercise in full of all
      outstanding Warrants issued pursuant to this Warrant Agreement.

    

    7.4 Registration
      of Ordinary Shares.
      The
      Company agrees that prior to the commencement of the Exercise Period, it shall
      use its reasonable best efforts to file with the SEC a post-effective amendment
      to the Registration Statement, or a new registration statement, for the
      registration, under the Act, of the Ordinary Shares issuable upon exercise
      of
      the Warrants, and it shall take such reasonable action as is necessary to
      qualify for sale, in those states in which the Warrants were initially offered
      by the Company, the Ordinary Shares issuable upon exercise of the Warrants.
      In
      either case, the Company will use its best efforts to cause the same to become
      effective on or prior to the commencement of the Exercise Period and to use
      its
      best efforts to maintain the effectiveness of such registration statement until
      the expiration of the Warrants in accordance with the provisions of this Warrant
      Agreement; provided, however, the Company shall not be obligated to deliver
      Ordinary Shares and shall not have penalties for failure to deliver Ordinary
      Shares if a registration statement is not effective at the time of exercise
      by
      the holder. In addition, the Company agrees to use its reasonable efforts to
      register such securities under the blue sky laws of the states of residence
      of
      the exercising warrant holders to the extent an exemption is not available.
      The
      provisions of this Section 7.4 may not be modified, amended or deleted without
      the prior written consent of the Representatives. Notwithstanding the foregoing,
      a Warrant can expire unexercised regardless of whether a registration statement
      is current under the Act with respect to the Ordinary Shares issuable upon
      exercise of the Warrants. In no event will the registered holder of a warrant
      be
      entitled to receive a net-cash settlement or Ordinary Shares or other
      consideration as of result of the Company's non-compliance with this Section
      7.4.

    

    8. Concerning
      the Warrant Agent and Other Matters.

    

    8.1 Payment
      of Taxes.
      The
      Company will from time to time promptly pay all taxes and charges that may
      be
      imposed upon the Company or the Warrant Agent in respect of the issuance or
      delivery of Ordinary Shares upon the exercise of Warrants, but the Company
      shall
      not be obligated to pay any transfer taxes in respect of the Warrants or such
      shares.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.2 Resignation,
      Consolidation, or Merger of Warrant Agent.

    

    8.2.1 Appointment
      of Successor Warrant Agent.
      The
      Warrant Agent, or any successor to it hereafter appointed, may resign its duties
      and be discharged from all further duties and liabilities hereunder after giving
      sixty (60) days’ notice in writing to the Company. If the office of the Warrant
      Agent becomes vacant by resignation or incapacity to act or otherwise, the
      Company shall appoint in writing a successor Warrant Agent in place of the
      Warrant Agent. If the Company shall fail to make such appointment within a
      period of 30 days after it has been notified in writing of such resignation
      or
      incapacity by the Warrant Agent or by the holder of the Warrant (who shall,
      with
      such notice, submit his Warrant for inspection by the Company), then the holder
      of any Warrant may apply to the Supreme Court of the State of New York for
      the
      County of New York for the appointment of a successor Warrant Agent. Any
      successor Warrant Agent, whether appointed by the Company or by such court,
      shall be a corporation organized and existing under the laws of the State of
      New
      York, in good standing and having its principal office in the Borough of
      Manhattan, City and State of New York, and authorized under such laws to
      exercise corporate trust powers and subject to supervision or examination by
      federal or state authority. After appointment, any successor Warrant Agent
      shall
      be vested with all the authority, powers, rights, immunities, duties, and
      obligations of its predecessor Warrant Agent with like effect as if originally
      named as Warrant Agent hereunder, without any further act or deed; but if for
      any reason it becomes necessary or appropriate, the predecessor Warrant Agent
      shall execute and deliver, at the expense of the Company, an instrument
      transferring to such successor Warrant Agent all the authority, powers, and
      rights of such predecessor Warrant Agent hereunder; and upon request of any
      successor Warrant Agent the Company shall make, execute, acknowledge, and
      deliver any and all instruments in writing for more fully and effectually
      vesting in and confirming to such successor Warrant Agent all such authority,
      powers, rights, immunities, duties, and obligations.

    

    8.2.2 Notice
      of Successor Warrant Agent.
      In the
      event a successor Warrant Agent shall be appointed, the Company shall give
      notice thereof to the predecessor Warrant Agent and the transfer agent for
      the
      Ordinary Shares not later than the effective date of any such
      appointment.

    

    8.2.3 Merger
      or Consolidation of Warrant Agent.
      Any
      corporation into which the Warrant Agent may be merged or with which it may
      be
      consolidated or any corporation resulting from any merger or consolidation
      to
      which the Warrant Agent shall be a party shall be the successor Warrant Agent
      under this Warrant Agreement without any further act.

    

    8.3 Fees
      and Expenses of Warrant Agent.

    

    8.3.1 Remuneration.
      The
      Company agrees to pay the Warrant Agent reasonable remuneration for its services
      as such Warrant Agent hereunder as set forth on Exhibit C
      hereto,
      and will reimburse the Warrant Agent upon demand for all expenditures that
      the
      Warrant Agent may reasonably incur in the execution of its duties
      hereunder.

    

    8.3.2 Further
      Assurances.
      The
      Company agrees to perform, execute, acknowledge, and deliver or cause to be
      performed, executed, acknowledged, and delivered all such further and other
      acts, instruments, and assurances as may reasonably be required by the Warrant
      Agent for the carrying out or performing of the provisions of this Warrant
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.4 Liability
      of Warrant Agent.

     

    8.4.1 Reliance
      on Company Statement.
      Whenever in the performance of its duties under this Warrant Agreement, the
      Warrant Agent shall deem it necessary or desirable that any fact or matter
      be
      proved or established by the Company prior to taking or suffering any action
      hereunder, such fact or matter (unless other evidence in respect thereof be
      herein specifically prescribed) may be deemed to be conclusively proved and
      established by a statement signed by the Chief Executive Officer or Chief
      Operating Officer of the Company and delivered to the Warrant Agent. The Warrant
      Agent may rely upon such statement for any action taken or suffered in good
      faith by it pursuant to the provisions of this Warrant Agreement.

    

    8.4.2 Indemnity.
      The
      Warrant Agent shall be liable hereunder only for its own negligence, willful
      misconduct or bad faith. The Company agrees to indemnify the Warrant Agent
      and
      hold it harmless against any and all liabilities, including judgments, costs
      and
      reasonable counsel fees, for anything done or omitted by the Warrant Agent
      in
      the execution of this Warrant Agreement except as a result of the Warrant
      Agent’s negligence, willful misconduct, or bad faith.

    

    8.4.3 Exclusions.
      The
      Warrant Agent shall have no responsibility with respect to the validity of
      this
      Warrant Agreement or with respect to the validity or execution of any Warrant
      (except its countersignature thereof); nor shall it be responsible for any
      breach by the Company of any covenant or condition contained in this Warrant
      Agreement or in any Warrant; nor shall it be responsible to make any adjustments
      required under the provisions of Section 4 hereof or responsible for the manner,
      method, or amount of any such adjustment or the ascertaining of the existence
      of
      facts that would require any such adjustment; nor shall it by any act hereunder
      be deemed to make any representation or warranty as to the authorization or
      reservation of any Ordinary Shares to be issued pursuant to this Warrant
      Agreement or any Warrant or as to whether any Ordinary Shares will when issued
      be valid and fully paid and nonassessable.

    

    8.5 Acceptance
      of Agency.
      The
      Warrant Agent hereby accepts the agency established by this Warrant Agreement
      and agrees to perform the same upon the terms and conditions herein set forth
      and among other things, shall account promptly to the Company with respect
      to
      Warrants exercised and concurrently account for, and pay to the Company, all
      moneys received by the Warrant Agent for the purchase of shares of the Company’s
      Ordinary Shares through the exercise of Warrants.

    

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

    

    9. Miscellaneous
      Provisions.

    

    9.1 Successors.
      All the
      covenants and provisions of this Warrant Agreement by or for the benefit of
      the
      Company or the Warrant Agent shall bind and inure to the benefit of their
      respective successors and assigns.

     

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

    

    Infinity
      I-China Acquisition Corporation

    Unit
      5707, The Center

    99
      Queen’s Road Central

    Hong
      Kong

    Attn:
      Robert Barasch

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Any
      notice, statement or demand authorized by this Warrant Agreement to be given
      or
      made by the holder of any Warrant or by the Company to or on the Warrant Agent
      shall be sufficiently given when so delivered if by hand or overnight delivery
      or if sent by certified mail or private courier service five days after deposit
      of such notice, postage prepaid, addressed (until another address is filed
      in
      writing by the Warrant Agent with the Company), as follows:

    

    American
      Stock Transfer & Trust Company

    59
      Maiden
      Lane, Plaza Level

    New
      York,
      NY 10038

    

    

    with
      a
      copy in each case to:

    

    Ellenoff
      Grossman & Schole LLP

    370
      Lexington Avenue

    New
      York,
      New York 10017

    Attn:
        Stuart Neuhauser, Esq.

    Fax
      No:
      (212) 370-1300

    

    and

    

    Mitchell
      S. Nussbaum, Esq.

    Loeb
      & Loeb LLP

    345
      Park
      Avenue

    New
      York,
      New York 10154

    (212)
      407-4000

    Fax
      No:
      (212) 407-4990

    

    and

    Morgan
      Joseph & Co. Inc.

    600
      Fifth
      Avenue

    New
      York,
      NY 10020

    Attn:
      Tina Pappas

    Fax
      No.:
      (212) 218-3760

    

    and

    

    Legend
      Merchant Group

    30
      Broad
      Street

    38th
      Floor

    New
      York,
      NY 10004

    Attn:
      Samuel Ottensoser

    Fax
      No:
      (212) 809-5567

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    9.2 Applicable
      Law.
      The
      validity, interpretation, and performance of this Warrant Agreement and of
      the
      Warrants shall be governed in all respects by the laws of the State of New
      York,
      without giving effect to conflict of laws. The Company hereby agrees that any
      action, proceeding or claim against it arising out of or relating in any way
      to
      this Warrant Agreement shall be brought and enforced in the courts of the State
      of New York or the United States District Court for the Southern District of
      New
      York, and irrevocably submits to such jurisdiction, which jurisdiction shall
      be
      exclusive. The Company hereby waives any objection to such exclusive
      jurisdiction and that such courts represent an inconvenient forum. Any such
      process or summons to be served upon the Company may be served by transmitting
      a
      copy thereof by registered or certified mail, return receipt requested, postage
      prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such
      mailing shall be deemed personal service and shall be legal and binding upon
      the
      Company in any action, proceeding or claim.

    

    9.3 Persons
      Having Rights under this Warrant Agreement.
      Nothing
      in this Warrant Agreement expressed and nothing that may be implied from any
      of
      the provisions hereof is intended, or shall be construed, to confer upon, or
      give to, any person or corporation other than the parties hereto and the
      registered holders of the Warrants and, for the purposes of Sections 6.1, 6.4,
      7.4, 9.2 and 9.7 hereof, the Representatives, any right, remedy, or claim under
      or by reason of this Warrant Agreement or of any covenant, condition,
      stipulation, promise, or agreement hereof. The Representatives shall be deemed
      to be a third-party beneficiary of this Warrant Agreement with respect to
      Sections 6.1, 6.4, 7.4, 9.2 and 9.7 hereof. All covenants, conditions,
      stipulations, promises, and agreements contained in this Warrant Agreement
      shall
      be for the sole and exclusive benefit of the parties hereto (and the
      Representatives with respect to the Sections 6.1, 6.4, 7.4, 9.2 and 9.7 hereof)
      and their successors and assigns and of the registered holders of the
      Warrants.

    

    9.4 Examination
      of the Warrant Agreement.
      A copy
      of this Agreement shall be available at all reasonable times at the office
      of
      the Warrant Agent in the Borough of Manhattan, City and State of New York,
      for
      inspection by the registered holder of any Warrant. The Warrant Agent may
      require any such holder to submit his Warrant for inspection by it.

    

    9.5 Counterparts.
      This
      Warrant Agreement may be executed in any number of counterparts and each of
      such
      counterparts shall for all purposes be deemed to be an original, and all such
      counterparts shall together constitute but one and the same instrument. All
      such
      counterparts may be delivered by facsimile or other electronic transmission,
      which shall not effect the validity thereof. 

    

    9.6 Effect
      of Headings.
      The
      Section headings herein are for convenience only and are not part of this
      Warrant Agreement and shall not affect the interpretation thereof.

    

    9.7 Amendments.
      This
      Warrant Agreement may be amended by the parties hereto without the consent
      of
      any registered holder for the purpose of curing any ambiguity, or of curing,
      correcting or supplementing any defective provision contained herein or adding
      or changing any other provisions with respect to matters or questions arising
      under this Warrant Agreement as the parties may deem necessary or desirable
      and
      that the parties deem shall not adversely affect the interest of the registered
      holders. All other modifications or amendments, including any amendment to
      increase the Warrant Price or shorten the Exercise Period, shall require the
      written consent of each of the Representatives and the registered holders of
      a
      majority of the then outstanding Warrants. Notwithstanding the foregoing, the
      Company may lower the Warrant Price or extend the duration of the Exercise
      Period in accordance with Sections 3.1 and 3.2, respectively, without such
      consent.

    

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

     

    [Signature
      Page Follows]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties
      hereto as of the day and year first above written.

     

    

      
        	
                Attest:

              	   
	 	
                INFINITY
                  I-CHINA ACQUISITION CORPORATION

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	
                By:
                  

              	  
	 
	 	 	 	
                 

              	
                Name:

              	 
	 	 	 	
                 

              	
                Title:

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                Attest:

              	  
	 	
                AMERICAN
                  STOCK TRANSFER & TRUST COMPANY

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	
                By:
                  

              	  
	 
	 	 	 	
                 

              	
                Name:

              	 
	 	 	 	
                 

              	
                Title:Unassociated Document

    THE
      REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES
      THAT
      IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN
      PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
      NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR
      A
      PERIOD OF SIX MONTHS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE
      OTHER THAN (I) MORGAN JOSEPH & CO. INC. (“MORGAN JOSEPH”) OR LEGEND MERCHANT
      GROUP, INC. (“LEGEND MERCHANT GROUP”, AND TOGETHER WITH MORGAN JOSEPH, THE
“REPRESENTATIVES”) OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE
      OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF EITHER OF THE
      REPRESENTATIVES OR OF ANY SUCH UNDERWRITER OR SELECTED
      DEALER.

     

    THIS
      PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO ______________, 2009 (ONE YEAR
      FROM
      EFFECTIVE DATE). THIS PURCHASE OPTION SHALL BE VOID AFTER 5:00 P.M, NEW YORK
      CITY LOCAL TIME, ON [ ] , 2013 (FIVE YEARS FROM EFFECTIVE
      DATE).

     

    

    

    UNIT
      PURCHASE OPTION

    

    FOR
      THE PURCHASE OF

    

    450,000
      UNITS

    

    OF

    

    INFINITY
      I-CHINA ACQUISITION CORPORATION

    

    

    1. Purchase
      Option.

    

    THIS
      CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of
      ___________ (the “Holder”),
      as
      registered owner of this Purchase Option, to Infinity I-China Acquisition
      Corporation (the “Company”),
      the
      Holder is entitled, at any time or from time to time from _________, 2009 (the
      “Commencement
      Date”)
      until
      at or before 5:00 p.m., New York City local time, _________, 2013 (the
“Expiration
      Date”),
      but
      not thereafter, to subscribe for, purchase and receive, in whole or in part,
      up
      to Four Hundred and Fifty Thousand (450,000) units (the “Units”)
      of the
      Company, each Unit consisting of one ordinary share of the Company, par value
      $.0001 per share (the “Ordinary
      Share”),
      and
      one warrant (the “Warrant”)
      to
      purchase one Ordinary Share at an exercise price of $6.60 per share expiring
      four years from the effective date (the “Effective
      Date”)
      of the
      registration statement (the “Registration
      Statement”)
      pursuant to which Units are offered for sale to the public (the “Offering”).
      Each
      Warrant is on the same terms and conditions as the warrants underlying the
      Units
      being registered for sale to the public by way of the Registration Statement
      (“Public
      Warrants”),
      except
      that the Public Warrants will have an exercise price of $6.00 per share. If
      the
      Expiration Date is a day on which banking institutions are authorized by law
      to
      close, then this Purchase Option shall expire on the next succeeding day that
      is
      not such a day in accordance with the terms herein. During the period ending
      on
      the Expiration Date, the Company agrees not to take any action that would
      terminate the Purchase Option. This Purchase Option is initially exercisable
      at
      $10.00 per Unit so purchased; provided, however, that upon the occurrence of
      any
      of the events specified in Section 6 hereof, the rights granted by this Purchase
      Option, including the exercise price per Unit and the number of Units (and
      Ordinary Shares and Warrants) to be received upon such exercise, shall be
      adjusted as therein specified. The term “Exercise Price” shall mean the initial
      exercise price or the adjusted exercise price, depending on the
      context.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    2. Exercise.

    

    2.1 Exercise.
      This
      Purchase Option may be exercised by the Holder in whole or in part at any time
      or in part from time to time on or after the Commencement Date and before the
      Expiration Date by: (x) surrendering this Purchase Option to the Company, (y)
      delivering a subscription form in the form attached hereto as Annex I (duly
      executed by the Holder) and (z) making payment of the Exercise Price in cash,
      certified or official bank check payable to the order of the Company or wire
      transfer of immediately available funds (to an account designated by the
      Company), in any case in an amount obtained by multiplying (a) the number of
      Units designated by the Holder in the subscription form by (b) the Exercise
      Price then in effect. In the event of a partial exercise or assignment hereof,
      the Company shall issue and deliver to or upon the order of the Holder a new
      Purchase Option of like tenor, in the name of the Holder or as the Holder (upon
      payment by the Holder of applicable transfer taxes) may request, evidencing
      the
      right to purchase the aggregate number of Units for which such Purchase Option
      may still be exercised. If the subscription rights represented hereby shall
      not
      be exercised at or before 5:00 p.m., New York City local time on the Expiration
      Date, this Purchase Option automatically shall become and be void, without
      further force or effect, and all rights represented hereby shall cease and
      expire.

    

    2.2 Legend.
      Each
      certificate for the Units issued upon exercise of this Purchase Option and
      each
      certificate representing the underlying Ordinary Shares and Warrants and the
      Ordinary Shares issuable upon exercise of the underlying Warrants (the
“Warrant
      Shares”)
      shall
      bear a legend as follows, unless such Units, Ordinary Shares, Warrants and/or
      Warrant Shares (collectively, the “Securities”)
      have
      been registered under the Securities Act of 1933, as amended (the “Act”):

    

    “THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND
      NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
      TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION
      FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION
      OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    2.3 Cashless
      Exercise.
      In lieu
      of the payment of the Exercise Price multiplied by the number of Units for
      which
      this Purchase Option is exercisable (and in lieu of being entitled to receive
      Ordinary Shares and Warrants) in the manner required by Section 2.1, the Holder
      shall have the right (but not the obligation) to convert any exercisable but
      unexercised portion of this Purchase Option into Units (the “Conversion
      Right”)
      as
      follows: upon exercise of the Conversion Right, the Company shall deliver to
      the
      Holder (without payment by the Holder of any of the Exercise Price in cash)
      that
      number of Ordinary Shares and Warrants comprising that number of Units equal
      to
      the quotient obtained by dividing (x) the Value (as defined below) of the
      portion of the Purchase Option being converted by (y) the Current Market Value
      (as defined below) of the portion of the Purchase Option being converted. The
      “Value”
of
      the
      portion of the Purchase Option being converted shall equal the remainder derived
      from subtracting (a) (i) the Exercise Price multiplied by (ii) the number of
      Units underlying the portion of this Purchase Option being converted from (b)
      the Current Market Value (as defined below) of a Unit multiplied by the number
      of Units underlying the portion of the Purchase Option being converted. As
      used
      herein, the term “Current
      Market Value”
per
      Unit at any date means: (A) in the event that neither the Units nor Warrants
      are
      still trading, the remainder derived from subtracting (x) the exercise price
      of
      the Warrants multiplied by the number of Ordinary Shares issuable upon exercise
      of the Warrants underlying one Unit from (y) (i) the Current Market Price of
      the
      Ordinary Shares multiplied by (ii) the number of Ordinary Shares underlying
      one
      Unit, which shall include the Ordinary Shares underlying the Warrants included
      in such Unit less the Exercise Price for the Unit plus the current Market Price
      of the Ordinary Shares underlying the Unit; (B) in the event that the Units,
      Ordinary Shares and Warrants are still trading, (i) if the Units are listed
      on a
      national securities exchange or quoted on the American Stock Exchange
      (“AMEX”),
      Nasdaq
      Global Market, Nasdaq Capital Market or Financial Industry Regulatory Authority,
      Inc. (“FINRA”)
      OTC
      Bulletin Board (or successor such as the Bulletin Board Exchange), the average
      of the last sale price of the Units in the principal trading market for the
      Units as reported by the exchange, AMEX, Nasdaq or FINRA, as the case may be,
      for the ten trading days ending on the third business day prior to exercise;
      or
      (ii) if the Units are not listed on a national securities exchange or quoted
      on
      AMEX, the Nasdaq Global Market, Nasdaq Capital Market or FINRA OTC Bulletin
      Board (or successor exchange), but is traded in the residual over-the-counter
      market, the average of the closing bid price for Units for the ten trading
      days
      ending on the third business day prior to exercise for which such quotations
      are
      reported by the Pink Sheets, LLC or similar publisher of such quotations; and
      (C) in the event that the Units are not still trading but the Ordinary Shares
      and Warrants underlying the Units are still trading, the Current Market Price
      of
      the Ordinary Shares plus the product of (x) the Current Market Price of the
      Warrants and (y) the number of Ordinary Shares underlying the Warrants included
      in one Unit. The “Current
      Market Price”
shall
      mean (i) if the Ordinary Shares (or Warrants, as the case may be) are listed
      on
      a national securities exchange or quoted on AMEX, the Nasdaq Global Market,
      Nasdaq Capital Market or FINRA OTC Bulletin Board (or successor such as the
      Bulletin Board Exchange), the average of the sale price of the Ordinary Shares
      (or Warrants) in the principal trading market for the Ordinary Shares as
      reported by the exchange, AMEX, Nasdaq or FINRA, as the case may be, for the
      ten
      trading days ending on the third business day prior to exercise; (ii) if the
      Ordinary Shares (or Warrants, as the case may be) are not listed on a national
      securities exchange or quoted on AMEX, the Nasdaq Global Market, Nasdaq Capital
      Market or FINRA OTC Bulletin Board (or successor exchange), but are traded
      in
      the residual over-the-counter market, the closing bid price for the Ordinary
      Shares (or Warrants) on the last trading day preceding the date in question
      for
      which such quotations are reported by the Pink Sheets, LLC or similar publisher
      of such quotations; and (iii) if the fair market value of the Ordinary Shares
      cannot be determined pursuant to clause (i) or (ii) above, such price as the
      Board of Directors of the Company shall determine, in good
      faith.

    
      
         

      

      
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    2.4
       Mechanics
      of Cashless Exercise.
      The
      Cashless Exercise Right may be exercised by the Holder on any business day
      on or
      after the Commencement Date and not later than the Expiration Date by delivering
      the Purchase Option with the duly executed exercise form attached hereto with
      the cashless exercise section completed to the Company, exercising the Cashless
      Exercise Right and specifying the total number of Units the Holder will purchase
      pursuant to such Cashless Exercise Right.

    

    2.5 No
      Cash Settlement. Notwithstanding
      anything to the contrary contained in this Purchase Option, under no
      circumstances will the Company be required to net cash settle the exercise
      of
      the Purchase Option or the Warrants underlying the Purchase Option.

    

    2.6 Effective
      Registration Statement.
      The
      Warrants underlying this Purchase Option are exercisable only during those
      periods of time in which the Company maintains the effectiveness of the
      Registration Statement. If the Company fails to maintain the effectiveness
      of
      the Registration Statement, the Warrants underlying this Purchase Option may
      expire worthless.

    

    3. Transfer.

    

    3.1 General
      Restrictions.
      The
      Holder of this Purchase Option, by its acceptance hereof, agrees that it will
      not sell, transfer, assign, pledge or hypothecate this Purchase Option for
      a
      period of six months following the Effective Date to anyone other than (i)
      the
      Representatives or an underwriter or a selected dealer in connection with the
      Offering, or (ii) a bona fide officer or partner of either of the
      Representatives or of any such underwriter or selected dealer. On and after
      the
      six month anniversary of the Effective Date, transfers to others may be made
      subject to compliance with or exemptions from applicable securities laws. In
      order to make any permitted assignment, the Holder must deliver to the Company
      the assignment form attached hereto duly executed and completed, together with
      the Purchase Option and payment of all transfer taxes, if any, payable in
      connection therewith. The Company shall within five business days transfer
      this
      Purchase Option on the books of the Company and shall execute and deliver a
      new
      Purchase Option or Purchase Options of like tenor to the appropriate assignee(s)
      expressly evidencing the right to purchase the aggregate number of Units
      purchasable hereunder or such portion of such number as shall be contemplated
      by
      any such assignment.

    

    3.2 Restrictions
      Imposed by the Act.
      The
      Securities evidenced by this Purchase Option shall not be transferred unless
      and
      until (i) the Company has received the opinion of counsel for the Holder that
      the Securities may be transferred pursuant to an exemption from registration
      under the Act and applicable state securities laws, the availability of which
      is
      established to the reasonable satisfaction of the Company (the Company hereby
      agreeing that the opinion of Loeb & Loeb LLP shall be deemed satisfactory
      evidence of the availability of an exemption), or (ii) a registration statement
      or a post-effective amendment to the Registration Statement relating to such
      Securities has been filed by the Company and declared effective by the
      Securities and Exchange Commission (the “SEC”)
      and
      compliance with applicable state securities law has been
      established.

    
      
         

      

      
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    4. New
      Purchase Options to be Issued.

    

    4.1 Partial
      Exercise or Transfer.
      Subject
      to the restrictions in Section 3 hereof, this Purchase Option may be exercised
      or assigned in whole or in part. In order to make any permitted assignment
      or
      transfer, the Holder must deliver to the Company the assignment form attached
      hereto as Annex II duly executed and completed, together with the Purchase
      Option and payment of all transfer taxes, if any, payable in connection
      therewith. The Company shall within five (5) business days transfer this
      Purchase Option on the books of the Company and shall execute and deliver a
      new
      Purchase Option or Purchase Options of like tenor to the appropriate assignee(s)
      expressly evidencing the right to purchase the aggregate number of Units
      purchasable hereunder or such portion of such number as shall be contemplated
      by
      any such assignment or transfer.

    

    4.2 Lost
      Certificate.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Purchase Option and of reasonably satisfactory
      indemnification or the posting of a bond, the Company shall execute and deliver
      a new Purchase Option of like tenor and date. Any such new Purchase Option
      executed and delivered as a result of such loss, theft, mutilation or
      destruction shall constitute a substitute contractual obligation on the part
      of
      the Company.

    

    5. Registration
      Rights.

    

    5.1 Demand
      Registration.

    

    5.1.1 Grant
      of Right.
      The
      Company, upon written demand (“Demand
      Notice”)
      of the
      Holder(s) of at least 51% (the “Majority
      Holders”)
      of the
      Purchase Options and/or the underlying Units and/or the underlying Securities,
      agrees to register all or any portion of the Purchase Option and the underlying
      Securities (collectively, the “Registrable
      Securities”)
      as
      requested by the Majority Holders. The Company will file a registration
      statement or a post-effective amendment to the Registration Statement covering
      the Registrable Securities within sixty (60) days after receipt of the initial
      Demand Notice and use its best efforts to have such registration statement
      or
      post-effective amendment declared effective as soon as possible thereafter.
      The
      demand for registration may be made at any time during a period of five (5)
      years beginning on the Effective Date. The Company covenants and agrees to
      give
      written notice of its receipt of any Demand Notice by any Holder(s) to all
      other
      registered Holders of the Purchase Options and/or the Registrable Securities
      within ten (10) days from the date of the receipt of any such Demand Notice.
      Each holder of Registrable Securities who wishes to include all or a portion
      of
      such holder’s Registrable Securities in the Demand Registration (each such
      holder including shares of Registrable Securities in such registration, a
“Demanding
      Holder”)
      shall
      so notify the Company within fifteen (15) days after the receipt by the holder
      of the notice from the Company. Upon any such request, the Demanding Holders
      shall be entitled to have their Registrable Securities included in the Demand
      Registration.

    
      
         

      

      
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    5.1.2 Effective
      Registration.
      A
      registration will not count as a Demand Registration until the registration
      statement filed with the SEC with respect to such Demand Registration has been
      declared effective and the Company has complied with all of its obligations
      under this Purchase Option with respect thereto; provided, however, that if,
      after such registration statement has been declared effective, the offering
      of
      Registrable Securities pursuant to a Demand Registration is interfered with
      by
      any stop order or injunction of the SEC or any other governmental agency or
      court, the registration statement with respect to such Demand Registration
      will
      be deemed not to have been declared effective, unless and until (i) such stop
      order or injunction is removed, rescinded or otherwise terminated, and (ii)
      a
      majority-in-interest of the Demanding Holders thereafter elect to continue
      the
      offering.

    

    5.1.3 Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the expenses of one legal counsel selected
      by
      the Holders to represent them in connection with the registration of the
      Registrable Securities, but the Holders shall pay any and all underwriting
      commissions. The Company agrees to use its reasonable best efforts to qualify
      or
      register the Registrable Securities in such States as are reasonably requested
      by the Majority Holder(s); provided,
      however,
      that in
      no event shall the Company be required to register the Registrable Securities
      in
      a State in which such registration would cause (i) the Company to be obligated
      to qualify to do business in such State, or would subject the Company to
      taxation as a foreign corporation doing business in such jurisdiction or (ii)
      the principal shareholders of the Company to be obligated to escrow their shares
      of capital stock of the Company. The Company shall cause any registration
      statement or post-effective amendment filed pursuant to the demand rights
      granted under Section 5.1.1 to remain effective for a period of two (2) years
      from the effective date of such registration statement or post-effective
      amendment.

    

    5.2 “Piggy-Back”
      Registration.

    

    5.2.1 Grant
      of Right.
      If at
      any time during a period of seven (7) years commencing on the Effective Date
      when there is not an effective registration statement covering all of the
      Registrable Securities, the Company shall determine to prepare and file with
      the
      SEC a registration statement relating to an offering under the Act of any of
      its
      securities, other than pursuant to SEC Form S-4 or S-8 or any equivalent form,
      the Company, upon the request of any Holder, as described below, shall cause
      the
      registration under the Act of the Registrable Securities as part of any such
      registration statement filed by the Company; provided,
      however,
      that
      if, in the written opinion of the Company’s managing underwriter or
      underwriters, if any, for such offering, the inclusion of the Registrable
      Securities, when added to the securities being registered by the Company or
      the
      selling shareholder(s), will exceed the maximum amount of the Company’s
      securities (the “Maximum
      Number of Shares”)
      which
      can be marketed (i) at a price reasonably related to their then current market
      value, and (ii) without materially and adversely affecting the entire offering,
      then the Company shall include in any such registration:

    

    (i) If
      the
      registration is undertaken for the Company’s account: (A) first, the Ordinary
      Shares or other securities that the Company desires to sell that can be sold
      without exceeding the Maximum Number of Shares; (B) second, to the extent that
      the Maximum Number of Shares has not been reached under the foregoing clause
      (A), the Ordinary Shares, if any, including the Registrable Securities, as
      to
      which registration has been requested pursuant to written contractual piggy-back
      registration rights of security holders (pro rata in accordance with the number
      of Ordinary Shares which each such person has actually requested to be included
      in such registration, regardless of the number of Ordinary Shares with respect
      to which such persons have the right to request such inclusion) that can be
      sold
      without exceeding the Maximum Number of Shares; and

    
      
         

      

      
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    (ii) If
      the
      registration is a “demand” registration undertaken at the demand of persons
      other than the holders of Registrable Securities pursuant to written contractual
      arrangements with such persons, (A) first, the Ordinary Shares for the account
      of the demanding persons that can be sold without exceeding the Maximum Number
      of Shares; (B) second, to the extent that the Maximum Number of Shares has
      not
      been reached under the foregoing clause (A), the Ordinary Shares or other
      securities that the Company desires to sell that can be sold without exceeding
      the Maximum Number of Shares; and (C) third, to the extent that the Maximum
      Number of Shares has not been reached under the foregoing clauses (A) and (B),
      the Registrable Securities as to which registration has been requested under
      this Section 5.2 (pro rata in accordance with the number of shares of
      Registrable Securities held by each such holder); and (D) fourth, to the extent
      that the Maximum Number of Shares has not been reached under the foregoing
      clauses (A), (B) and (C), the Ordinary Shares, if any, as to which registration
      has been requested pursuant to written contractual piggy-back registration
      rights which other shareholders desire to sell that can be sold without
      exceeding the Maximum Number of Shares.

    

    5.2.2 Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of one legal counsel
      selected by the Holders to represent them in connection with the registration
      of
      the Registrable Securities but the Holders shall pay any and all underwriting
      commissions related to the Registrable Securities. In the event of such a
      proposed registration, the Company shall furnish the then Holders of outstanding
      Registrable Securities with not less than fifteen (15) days’ written notice
      prior to the proposed date of filing of such registration statement. Such notice
      to the Holders shall continue to be given for each applicable registration
      statement filed (during the period in which the Purchase Option is exercisable)
      by the Company until such time as all of the Registrable Securities have been
      registered and sold. The holders of the Registrable Securities shall exercise
      the piggy-back rights provided for herein by giving written notice, within
      ten
      days of the receipt of the Company’s notice of its intention to file a
      registration statement. The Company shall cause any registration statement
      filed
      pursuant to the above piggy-back rights to remain effective for at least nine
      months from the date that the Holders of the Registrable Securities are first
      given the opportunity to sell all of such securities. The
      Company agrees, at its sole expense, to use its reasonable best efforts to
      qualify or register the Registrable Securities in such States as are reasonably
      requested by the Majority Holder(s); provided, however, that in no event shall
      the Company be required to register the Registrable Securities in a State in
      which such registration would cause (i) the Company to be obligated to qualify
      to do business in such State, or would subject the Company to taxation as a
      foreign corporation doing business in such jurisdiction or (ii) the principal
      shareholders of the Company to be obligated to escrow their shares of capital
      stock of the Company. 

    
      
         

      

      
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    5.3 General
      Terms.

    

    5.3.1 Indemnification.
      The
      Company shall, notwithstanding any termination of this Purchase Option,
      indemnify and hold harmless each Holder, the officers, directors, agents,
      brokers, investment advisors and employees of each of them and each person,
      if
      any, who controls such Holders within the meaning of Section 15 of the Act
      or
      Section 20(a) of the Securities Exchange Act of 1934, as amended (the
“Exchange
      Act”),
      and the
      officers, directors, agents and employees of such controlling person, to the
      fullest extent permitted by applicable law, from and against
      all loss, claim, damage, expense or liability (including all reasonable
      attorneys’ fees and other expenses reasonably incurred in investigating,
      preparing or defending against litigation, commenced or threatened, or any
      claim
      whatsoever whether arising out of any action between the underwriter and the
      Company or between the underwriter and any third party or otherwise) to which
      any of them may become subject under the Act, the Exchange Act or otherwise,
      arising out of or relating to such registration statement filed pursuant to
      this
      Section 5 and any prospectus contained in the registration statement or in
      any
      amendment or supplement thereto, except only to the same extent and with the
      same effect as the provisions pursuant to which the Company has agreed to
      indemnify the underwriters contained in Section 5.1 of the Underwriting
      Agreement between the Company, the Representatives and the other underwriters
      named therein dated the Effective Date. Each Holder of the Registrable
      Securities to be sold pursuant to such registration statement, and their
      successors and assigns, shall severally, and not jointly, indemnify the Company,
      its officers and directors and each person, if any, who controls the Company
      within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
      Act, against all loss, claim, damage, expense or liability (including all
      reasonable attorneys’ fees and other expenses reasonably incurred in
      investigating, preparing or defending against any claim whatsoever) to which
      they may become subject under the Act, the Exchange Act or otherwise, arising
      from information furnished by or on behalf of such Holders, or their successors
      or assigns, in writing, for specific inclusion in such registration statement
      to
      the same extent and with the same effect as the provisions contained in Section
      5.2 of the Underwriting Agreement pursuant to which the underwriters have agreed
      to indemnify the Company.

    

    5.3.2 Exercise
      of Purchase Options.
      Nothing
      contained in this Purchase Option shall be construed as requiring any Holder
      to
      exercise their Purchase Options or Warrants underlying such Purchase Options
      prior to or after the filing of any registration statement or the effectiveness
      thereof.

    

    5.3.3 Documents
      Delivered to Holders.
      The
      Company shall furnish the Representatives, as joint representatives of the
      Holders participating in any of the foregoing offerings, a signed counterpart,
      addressed to the participating Holders, of (i) an opinion of counsel to the
      Company, dated the effective date of such registration statement (and, if such
      registration includes an underwritten public offering, an opinion dated the
      date
      of the closing under any underwriting agreement related thereto), and (ii)
      a
“cold comfort” letter dated the effective date of such registration statement
      (and, if such registration includes an underwritten public offering, a letter
      dated the date of the closing under the underwriting agreement) signed by the
      independent public accountants who have issued a report on the Company’s
      financial statements included in such registration statement, in each case
      covering substantially the same matters with respect to such registration
      statement (and the prospectus included therein) and, in the case of such
      accountants’ letter, with respect to events subsequent to the date of such
      financial statements, as are customarily covered in opinions of issuer’s counsel
      and in accountants’ letters delivered to underwriters in underwritten public
      offerings of securities. The Company shall also deliver promptly to the
      Representative, as representative of the Holders participating in the offering,
      the correspondence and memoranda described below and copies of all
      correspondence between the SEC and the Company, its counsel or auditors and
      all
      memoranda relating to discussions with the SEC or its staff with respect to
      the
      registration statement and permit the Representatives, as joint representatives
      of the Holders, to do such investigation, upon reasonable advance notice, with
      respect to information contained in or omitted from the registration statement
      as it deems reasonably necessary to comply with applicable securities laws
      or
      rules of FINRA. Such investigation shall include access to books, records and
      properties and opportunities to discuss the business of the Company with its
      officers and independent auditors, all to such reasonable extent and at such
      reasonable times and as often as the Representatives, as joint representative
      of
      the Holders, shall reasonably request. The Company shall not be required to
      disclose any confidential information or other records to the Representatives,
      as joint representatives of the Holders, or to any other person, until and
      unless such persons shall have entered into reasonable confidentiality
      agreements (in form and substance reasonably satisfactory to the Company),
      with
      the Company with respect thereto.

    
      
         

      

      
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    5.3.4 Documents
      to be Delivered by Holder(s).
      Each
      Holder participating in any of the foregoing offerings shall furnish to the
      Company a completed and executed questionnaire provided by the Company
      requesting information customarily sought of selling
      securityholders.

    

    5.3.5 Underwriting
      Agreement.
      The
      Company shall enter into an underwriting agreement with the managing
      underwriter(s), if any, selected by any Holders, whose Registrable Securities
      are being registered pursuant to this Section 5, which managing underwriter(s)
      shall be reasonably acceptable to the Company. Such agreement shall be
      reasonably satisfactory in form and substance to the Company and its legal
      counsel, each Holder and such managing underwriter(s), and shall contain such
      representations, warranties and covenants by the Company and such other terms
      as
      are customarily contained in agreements of that type used by the managing
      underwriter. The Holders shall be parties to any underwriting agreement relating
      to an underwritten sale of their Registrable Securities and may, at their
      option, require that any or all the representations, warranties and covenants
      of
      the Company to or for the benefit of such underwriters shall also be made to
      and
      for the benefit of such Holders. Such Holders shall not be required to make
      any
      representations or warranties to or agreements with the Company or the
      underwriters except as they may relate to such Holders and their intended
      methods of distribution. Such Holders, however, shall agree to such covenants
      and indemnification and contribution obligations for selling shareholders as
      are
      customarily contained in agreements of that type used by the managing
      underwriter. Further, such Holders shall execute appropriate custody agreements
      and otherwise cooperate fully in the preparation of the registration statement
      and other documents relating to any offering in which they include Registrable
      Securities pursuant to this Section 5. Each Holder shall also furnish to the
      Company such information regarding itself, the Registrable Securities held
      by
      it, and the intended method of disposition of such securities as shall be
      reasonably required to effect the registration of the Registrable
      Securities.

    
      
         

      

      
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    5.3.6 Rule
      144 Sale.  Notwithstanding
      anything contained in this Section 5 to the contrary, the Company shall have
      no
      obligation pursuant to Sections 5.1 or 5.2 for the registration of Registrable
      Securities held by any Holder (i) where such Holder would then be entitled
      to
      sell under Rule 144 within any three month period (or such other period
      prescribed under Rule 144 as may be provided by amendment thereof) all of the
      Registrable Securities held by such Holder, and (ii) where the number of
      Registrable Securities held by such Holder is within the volume limitations
      under paragraph (e) of Rule 144 (calculated as if such Holder were an affiliate
      within the meaning of Rule 144).

    

    5.3.7 Supplemental
      Prospectus.
      Each
      Holder agrees, that upon receipt of any notice from the Company of the happening
      of any event as a result of which the prospectus included in the Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state a material fact required to be stated therein or necessary to
      make the statements therein not misleading in light of the circumstances then
      existing, such Holder will immediately discontinue disposition of Registrable
      Securities pursuant to the Registration Statement covering such Registrable
      Securities until such Holder’s receipt of the copies of a supplemental or
      amended prospectus, and, if so desired by the Company, such Holder shall deliver
      to the Company (at the expense of the Company) or destroy (and deliver to the
      Company a certificate of such destruction) all copies, other than permanent
      file
      copies then in such Holder’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

    

    6. Adjustments.

    

    6.1 Adjustments
      to Exercise Price and Number of Securities.
      The
      Exercise Price and the number of Units underlying the Purchase Option shall
      be
      subject to adjustment from time to time as hereinafter set forth:

    

    6.1.1 Stock
      Dividends - Split-Ups.
      If
      after the date hereof, the number of outstanding Ordinary Shares is increased
      by
      a stock dividend payable in Ordinary Shares or by a split-up of the Ordinary
      Shares or other similar event, then, on the effective date thereof, the number
      of Ordinary Shares underlying each of the Units purchasable hereunder shall
      be
      increased in proportion to such increase in outstanding shares. In such case,
      the number of Ordinary Shares, and the exercise price applicable thereto,
      underlying the Warrants underlying each of the Units purchasable hereunder
      shall
      be adjusted in accordance with the terms of the Warrants. For example, if the
      Company declares a two-for-one stock dividend and at the time of such dividend
      this Purchase Option is for the purchase of one Unit at $10.00 per whole Unit
      (each Warrant underlying the Units is exercisable for $6.60 per share), upon
      effectiveness of the dividend, this Purchase Option will be adjusted to allow
      for the purchase of one Unit at $10.00 per Unit, each Unit entitling the holder
      to receive two Ordinary Shares and two Warrants (each Warrant exercisable for
      $3.30 per share).

    

    6.1.2 Aggregation
      of Shares.
      If
      after the date hereof, the number of outstanding Ordinary Shares is decreased
      by
      a consolidation, combination or reclassification of Ordinary Shares or other
      similar event, then, on the effective date thereof, the number of Ordinary
      Shares underlying each of the Units purchasable hereunder shall be decreased
      in
      proportion to such decrease in outstanding shares. In such case, the number
      of
      Ordinary Shares, and the exercise price applicable thereto, underlying the
      Warrants underlying each of the Units purchasable hereunder shall be adjusted
      in
      accordance with the terms of the Warrants.

    
      
         

      

      
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    6.1.3 Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding Ordinary Shares
      other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely
      affects the par value of such Ordinary Shares, or in the case of any merger
      or
      consolidation of the Company with or into another corporation (other than a
      consolidation or merger in which the Company is the continuing corporation
      and
      that does not result in any reclassification or reorganization of the
      outstanding Ordinary Shares), or in the case of any sale or conveyance to
      another corporation or entity of the property of the Company as an entirety
      or
      substantially as an entirety in connection with which the Company is dissolved,
      the Holder of this Purchase Option shall have the right thereafter (until the
      expiration of the right of exercise of this Purchase Option) to receive upon
      the
      exercise hereof, for the same aggregate Exercise Price payable hereunder
      immediately prior to such event, the kind and amount of shares of stock or
      other
      securities or property (including cash) receivable upon such reclassification,
      reorganization, merger or consolidation, or upon a dissolution following any
      such sale or transfer, by a Holder of the number of Ordinary Shares of the
      Company obtainable upon exercise of this Purchase Option and the underlying
      Warrants immediately prior to such event; and if any reclassification also
      results in a change in Ordinary Shares covered by Section 6.1.1 or 6.1.2, then
      such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section
      6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive
      reclassifications, reorganizations, mergers or consolidations, sales or other
      transfers.

     

    6.1.4 Changes
      in Form of Purchase Option.
      This
      form of Purchase Option need not be changed because of any change pursuant
      to
      this Section, and the Purchase Options issued after such change may state the
      same Exercise Price and the same number of Units as are stated in the Purchase
      Options initially issued pursuant to this Purchase Option. The acceptance by
      any
      Holder of the issuance of new Purchase Options reflecting a required or
      permissive change shall not be deemed to waive any rights to an adjustment
      occurring after the Commencement Date or the computation thereof.

    

    6.1.5 Adjustments
      of Warrants.
      To the
      extent the price of the Warrants are lowered pursuant to the Warrant Agreement,
      between the Company and American Stock Transfer & Trust Company (the
“Warrant
      Agreement”)
      with
      respect to the Warrants registered under the Registration Statement, the price
      of the Warrants underlying the Purchase Option shall be reduced on identical
      percentage terms. To the extent the duration of the Warrants is extended
      pursuant to the Warrant Agreement, the duration of the Warrants underlying
      the
      Purchase Option shall be extended on identical terms

    

    6.2 Substitute
      Purchase Option.
      In case
      of any consolidation of the Company with, or merger of the Company with, or
      merger of the Company into, another corporation (other than a consolidation
      or
      merger which does not result in any reclassification or change of the
      outstanding Ordinary Shares), the corporation formed by such consolidation
      or
      merger shall execute and deliver to the Holder a supplemental Purchase Option
      providing that the holder of each Purchase Option then outstanding or to be
      outstanding shall have the right thereafter (until the stated expiration of
      such
      Purchase Option) to receive, upon exercise of such Purchase Option, the kind
      and
      amount of shares of stock and other securities and property receivable upon
      such
      consolidation or merger, by a holder of the number of Ordinary Shares of the
      Company for which such Purchase Option might have been exercised immediately
      prior to such consolidation, merger, sale or transfer. Such supplemental
      Purchase Option shall provide for adjustments which shall be identical to the
      adjustments provided in Section 6. The above provision of this Section shall
      similarly apply to successive consolidations or mergers.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    

    6.3 Elimination
      of Fractional Interests.
      The
      Company shall not be required to issue certificates representing fractions
      of
      Ordinary Shares or Warrants upon the exercise of the Purchase Option, nor shall
      it be required to issue scrip or pay cash in lieu of any fractional interests,
      it being the intent of the parties that all fractional interests shall be
      eliminated by rounding any fraction up or down to the nearest whole number
      of
      Warrants, Ordinary Shares or other securities, properties or
      rights.

    

    7. Reservation
      and Listing.
      The
      Company shall at all times reserve and keep available out of its authorized
      Ordinary Shares, solely for the purpose of issuance upon exercise of the
      Purchase Option or the Warrants underlying the Purchase Option, such number
      of
      Ordinary Shares or other securities, properties or rights as shall be issuable
      upon the exercise thereof. The Company covenants and agrees that, upon exercise
      of the Purchase Options and payment of the Exercise Price therefor, all Ordinary
      Shares and other securities issuable upon such exercise shall be duly and
      validly issued, fully paid and non-assessable and not subject to preemptive
      rights of any shareholder. The Company further covenants and agrees that upon
      exercise of the Warrants underlying the Purchase Options and payment of the
      respective Warrant exercise price therefor, all Ordinary Shares and other
      securities issuable upon such exercise shall be duly and validly issued, fully
      paid and non-assessable and not subject to preemptive rights of any shareholder.
      As long as the Purchase Options shall be outstanding, the Company shall use
      its
      best efforts to cause all (i) Units and Ordinary Shares issuable upon exercise
      of the Purchase Options, (ii) Warrants issuable upon exercise of the Purchase
      Options and (iii) Ordinary Shares issuable upon exercise of the Warrants
      included in the Units issuable upon exercise of the Purchase Option to be listed
      (subject to official notice of issuance) on all securities exchanges (or, if
      applicable on AMEX, the Nasdaq Global Market, Nasdaq Capital Market, FINRA
      OTC
      Bulletin Board or any successor trading market) on which the Units, the Ordinary
      Shares or the Warrants may then be listed and/or quoted.

     

    8. Certain
      Notice Requirements.

    

    8.1 Holder’s
      Right to Receive Notice.
      Nothing
      herein shall be construed as conferring upon the Holders the right to vote
      or
      consent as a shareholder for the election of directors or any other matter,
      or
      as having any rights whatsoever as a shareholder of the Company. If, however,
      at
      any time prior to the expiration of the Purchase Options and their exercise,
      any
      of the events described in Section 8.2 shall occur, then, in one or more of
      said
      events, the Company shall give written notice of such event at least fifteen
      (15) days prior to the date fixed as a record date or the date of closing the
      transfer books for the determination of the shareholders entitled to such
      dividend, distribution, conversion or exchange of securities or subscription
      rights, or entitled to vote on such proposed dissolution, liquidation, winding
      up or sale. Such notice shall specify such record date or the date of the
      closing of the transfer books, as the case may be. Notwithstanding the
      foregoing, the Company shall deliver to each Holder a copy of each notice given
      to the other shareholders of the Company at the same time and in the same manner
      that such notice is given to the shareholders.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    

    8.2 Events
      Requiring Notice.
      The
      Company shall be required to give the notice described in this Section 8 upon
      one or more of the following events: (i) if the Company shall take a record
      of
      the holders of its Ordinary Shares for the purpose of entitling them to receive
      a dividend or distribution, or (ii) the Company shall offer to all the holders
      of its Ordinary Shares any additional shares of capital stock of the Company
      or
      securities convertible into, exercisable for or exchangeable for shares of
      capital stock of the Company, or any option, right or warrant to subscribe
      therefor, or (iii) a dissolution, liquidation or winding up of the Company
      (other than in connection with a consolidation or merger) or a sale of all
      or
      substantially all of its property, assets and business or a merger of the
      Company wherein the separate existence of the Company shall cease shall be
      proposed.

    

    8.3 Notice
      of Change in Exercise Price.
      The
      Company shall, promptly after an event requiring a change in the Exercise Price
      pursuant to Section 6 hereof, send notice to the Holders of such event and
      change (a “Price
      Notice”).
      The
      Price Notice shall describe the event causing the change and the method of
      calculating same and shall be certified as being true and accurate by the
      Company’s President and Chief Financial Officer.

    

     

    8.4 Transmittal
      of Notices.
      All
      notices, requests, consents and other communications under this Purchase Option
      shall be in writing and shall be deemed to have been duly made when hand
      delivered, mailed by express mail or private courier service, or sent by
      facsimile transmission, with confirmation of receipt: (i) If to the registered
      Holder of the Purchase Option, to the address and/or fax number of such Holder
      as shown on the books of the Company, or (ii) if to the Company, to the
      following address or fax number or to such other address or and fax number
      as
      the Company may designate by notice to the Holders:

    

    Infinity
      I-China Acquisition Corporation

    Unit
      5707, The Center

    99
      Queen’s Road Central

    Hong
      Kong

    Attn:
      Chief Executive Officer 

     

    

    9. Miscellaneous.

    

    9.1 Amendments.
      The
      Company and the Representatives may from time to time supplement or amend this
      Purchase Option without the approval of any of the Holders in order to cure
      any
      ambiguity, to correct or supplement any provision contained herein that may
      be
      defective or inconsistent with any other provisions herein, or to make any
      other
      provisions in regard to matters or questions arising hereunder that the Company
      and the Representatives may deem necessary or desirable and that the Company
      and
      the Representatives deem shall not adversely affect the interest of the Holders.
      All other modifications or amendments shall require the written consent of
      and
      be signed by the party against whom enforcement of the modification or amendment
      is sought.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    

    9.2 Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Purchase Option.

    

    9.3. Entire
      Agreement.
      This
      Purchase Option (together with the other agreements and documents being
      delivered pursuant to or in connection with this Purchase Option) constitutes
      the entire agreement of the parties hereto with respect to the subject matter
      hereof, and supersedes all prior agreements and understandings of the parties,
      oral and written, with respect to the subject matter hereof.

    

    9.4 Binding
      Effect.
      This
      Purchase Option shall inure solely to the benefit of and shall be binding upon,
      the Holder and the Company and their permitted assignees, respective successors,
      legal representative and assigns, and no other person shall have or be construed
      to have any legal or equitable right, remedy or claim under or in respect of
      or
      by virtue of this Purchase Option or any provisions herein
      contained.

    

    9.5 Governing
      Law; Submission to Jurisdiction.
      This
      Purchase Option shall be governed by and construed and enforced in accordance
      with the laws of the State of New York, without giving effect to conflict of
      laws. Each of the Company and the Representatives agree that any action,
      proceeding or claim against it arising out of, or relating in any way to this
      Purchase Option shall be brought and enforced in the courts of the State of
      New
      York located in New York County or of the United States of America for the
      Southern District of New York, and irrevocably submits to such jurisdiction,
      which jurisdiction shall be exclusive. Each of the Company and the
      Representatives hereby waives any objection to such exclusive jurisdiction
      and
      that such courts represent an inconvenient forum. Any process or summons to
      be
      served upon the Company may be served by transmitting a copy thereof by
      registered or certified mail, return receipt requested, postage prepaid,
      addressed to it at the address set forth in Section 8 hereof. Such mailing
      shall
      be deemed personal service and shall be legal and binding upon the Company
      in
      any action, proceeding or claim. The Company and the Holder agree that the
      prevailing party(ies) in any such action shall be entitled to recover from
      the
      other party(ies) all of its reasonable attorneys’ fees and expenses relating to
      such action or proceeding and/or incurred in connection with the preparation
      therefor.

    

    9.6 Waiver,
      Etc.
      The
      failure of the Company or the Holder to at any time enforce any of the
      provisions of this Purchase Option shall not be deemed or construed to be a
      waiver of any such provision, nor to in any way affect the validity of this
      Purchase Option or any provision hereof or the right of the Company or any
      Holder to thereafter enforce each and every provision of this Purchase Option.
      No waiver of any breach, non-compliance or non-fulfillment of any of the
      provisions of this Purchase Option shall be effective unless set forth in a
      written instrument executed by the party or parties against whom or which
      enforcement of such waiver is sought; and no waiver of any such breach,
      non-compliance or non-fulfillment shall be construed or deemed to be a waiver
      of
      any other or subsequent breach, non-compliance or
      non-fulfillment.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    

    9.7 Execution.
      It is
      agreed that deliver of the Company’s signature hereon by facsimile or other
      electronic method of delivery shall constitute a valid signature and
      delivery.

    

    9.8
       Exchange
      Agreement.
      As a
      condition of the Holder’s receipt and acceptance of this Purchase Option, Holder
      agrees that, at any time prior to the complete exercise of this Purchase Option
      by Holder, if the Company and the Representatives enter into an agreement (an
      “Exchange
      Agreement”)
      pursuant to which they agree that outstanding Purchase Option will be exchanged
      for securities or cash or a combination of both, then Holder shall agree to
      such
      exchange and become a party to the Exchange Agreement.

     

    9.9 Underlying
      Warrants.
      At any
      time after exercise by the Holder of this Purchase Option, the Holder may
      exchange his Warrants for Public Warrants upon payment to the Company of the
      difference between the exercise price of his Warrant and the exercise price
      of
      the Public Warrants, if any.

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by
      its
      duly authorized officer as of the [ ] day of [ ], 2008.

    

    

    
      	 	
              INFINITY
                I-CHINA ACQUISITION CORPORATION

            
	 	 	 
	 	 	 
	 	
              By:

            	
               
                

            
	 	 	
              Name:
                

            
	 	 	
              Title:
                

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Annex
      I

    

    Form
      to
      be used to exercise Purchase Option

    

    INFINITY
      I-CHINA ACQUISITION CORPORATION

    Unit
      5707, The Center

    99
      Queen’s Road Central

    Hong
      Kong

    

    Date:_________________,
      20___

    

    The
      undersigned hereby elects irrevocably to exercise all or a portion of the within
      Purchase Option and to purchase ____ Units of Infinity I-China Acquisition
      Corporation and hereby makes payment of $____________ (at the rate of $_________
      per Unit) in payment of the Exercise Price pursuant thereto. Please issue the
      Ordinary Shares and Warrants as to which this Purchase Option is exercised
      in
      accordance with the instructions given below.

    

    or

    

    The
      undersigned hereby elects irrevocably to convert its right to purchase _________
      Units purchasable under the within Purchase Option by surrender of the
      unexercised portion of the attached Purchase Option (with a “Value” based of
      $_______ based on a “Market Price” of $_______). Please issue the securities
      comprising the Units as to which this Purchase Option is exercised in accordance
      with the instructions given below.

    

    
      	 	
              ________________________

            
	 	
              Signature

            
	 	 
	 	
              ________________________

            
	 	
              Signature
                Guaranteed

            

    

    

    INSTRUCTIONS
      FOR REGISTRATION OF SECURITIES

    

    

    
      	
              Name_____________________________________________________________

            
	
               (Print
                in Block Letters)

            
	 
	
              Address__________________________________________________________

            

    

    

    

    NOTICE:
      THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE
      FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR
      ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER
      THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP ON
      A
      REGISTERED NATIONAL SECURITIES EXCHANGE.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Annex
      II

    

    Form
      to
      be used to assign Purchase Option

    

    

    ASSIGNMENT

    

    

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

    

    FOR
      VALUE
      RECEIVED,___________________________________________ does hereby sell, assign
      and transfer unto______________________________________ the right to purchase
      __________ Units of Infinity I-China Acquisition Corporation (the “Company”)
      evidenced by the within Purchase Option and does hereby authorize the Company
      to
      transfer such right on the books of the Company.

    

    Dated:___________________,
      20__

    

    

    
      	 	
              ______________________

            
	 	
              Signature

            
	 	 
	 	 
	 	
              ______________________

            
	 	
              Signature
                Guaranteed

            

    

    

    

    

    NOTICE:
      THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE
      FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR
      ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER
      THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP ON
      A
      REGISTERED NATIONAL SECURITIES EXCHANGE.

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