Document:

Exhibit 4.2

 Exhibit 4.2 
  

E-FUTURE INFORMATION TECHNOLOGY INC. 
  
 WARRANT AGREEMENT 
  
                     , 2005 
  
 Anderson & Strudwick, Incorporated 
 707 East Main Street 
 20th Floor 
 Richmond, Virginia 23219 
  
 Ladies and Gentlemen: 
  
 e-Future Information Technology Inc., a Cayman Islands corporation (the “Company”), agrees to issue and sell to
you warrants (the “Warrants”) to purchase the number of ordinary shares, of the Company set forth herein, subject to the terms and conditions contained herein. 
  
 1. Issuance of Warrants; Exercise Price. The Warrants, which shall be in the form attached hereto as
Exhibit A, shall be issued to you concurrently with the execution hereof in consideration of the payment by you to the Company of the sum of US $0.001 cash per ordinary share subject to the Warrants, the receipt and sufficiency of which are
hereby acknowledged. The Warrants shall provide that you and such other holder of holders of the Warrants shall have the right to purchase an aggregate of
                     ordinary shares for an exercise price equal to $7.20 per share (the “Exercise Price”) or
$                     in the aggregate. The number, character and Exercise Price of such shares are subject to adjustment as hereinafter
provided, and the term “ordinary shares” shall mean, unless the context otherwise requires, the stock and other securities and property receivable upon exercise of the Warrants. The term “Exercise Price” shall mean, unless the
context otherwise requires, the price per ordinary share purchasable under the Warrants as set forth in this Section 1, as adjusted from time to time pursuant to Section 5. 
  
 2. Notices of Record Date; Etc. In the event of (i) any taking by the Company of a record date with respect to
the holders of any class of securities of the Company for purposes of determining which of such holders are entitled to dividends or other distributions, or any right to subscribe for, purchase or otherwise acquire shares of stock of any class or
any other securities or property, or to receive any other right, (ii) any capital reorganization of the Company, or reclassification or recapitalization of capital stock of the Company or any transfer in one or more related transactions of all or a
majority of the assets or revenue or income generating capacity of the Company to, or consolidation or merger of the Comany with or into, any other entity or person, or (iii) any voluntary or involuntary dissolution or winding up of the Company,
then and in each such event the Company will mail or cause to be mailed to each holder of a Warrant at the time outstanding a notice specifying, as the case may be, (a) the date on which any such 

 
record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right;
or (B) the date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, conveyance, dissolution, liquidation or winding-up is to take place and the time, if any is to be fixed, as of which the holders
of record of ordinary shares (or any other class of stock or securities of the Company, or another issuer pursuant to Section 5, receivable upon the exercise of the Warrants) shall be entitled to exchange their ordinary shares (or such other stock
or securities) for securities or other property deliverable upon such event. Any such notice shall be deposited in the United States mail, postage prepaid, at least ten (10) days prior to the date therein specified, and the holder(s) of the
Warrant(s) may exercise the Warrant(s) and participate in such event as a registered holder of ordinary shares, upon exercise of the Warrant(s) so held, within the ten (10) day period from the date of mailing such notice. 
  
 3. No Impairment. The Company shall not, by amendment of its
organizational documents or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other action, avoid or seek to avoid the observance or performance of any other action, avoid or seek
to avoid the observance or performance of any of the terms of this Agreement or of the Warrants, but will at all times in good faith take any and all action as may be necessary in order to protect the rights of the holders of the Warrants against
impairment. Without limiting the generality of the foregoing, the Company (a) will at all times reserve and keep available, solely for issuance and delivery upon exercise of the Warrants, ordinary shares issuable from time to time upon exercise of
the Warrants, (b) will not increase the par value of any shares of stock receivable upon exercise of the Warrants above the amount payable in respect thereof upon such exercise, and (c) will take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and non-assessable stock upon the exercise of the Warrants, or any of them. 
  
 4. Exercise of Warrants. 
  
 (a) Exercise for Cash. At any time and from time to time on and after
                    , 2006 and expiring on
                    , 2010 at
                     p.m., Richmond, Virginia time (the “Exercise Period”), Warrants may be exercised as to all or any portion of
the whole number of ordinary shares covered by the Warrants by the holder thereof by surrender of the Warrants, accompanied by a subscription for shares to be purchased in the form attached hereto as Exhibit B and by a check payable to the
order of the Company in the amount required for purchase of the ordinary shares as to which the Warrant is being exercised, delivered to the Company at its principal office at eFuture Information Technology Inc., 3/F, Tower E2, Orient Plaza, No. 1
East Chang An Avenue, Dong Cheng District, Beijing, China 100738, Attention: Chairman. 
  
 (b) Cashless Exercise. In addition, during the Exercise Period and to the extent that the Company has failed to register the
ordinary shares issuable hereunder in accordance with Section 7 hereof within 120 days of the notification of the Company of the exercise of such demand registration right, Warrants may be exercised as to all or any portion of the whole number of
ordinary shares covered by the Warrants by the holder thereof by surrender 

  

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of Warrants together with irrevocable instructions to the Company to issue in exchange for the Warrants the number of ordinary shares equal to the product of
(i) the number of ordinary shares as to which the Warrants are being exercised multiplied by (ii) a fraction the numerator of which is the Current Value of an ordinary share less the Exercise Price therefor and the denominator of which is such
Current Value. In the case of the purchase of less than all the ordinary shares purchasable under the Warrants, the Company shall cancel such Warrants and shall execute and deliver new Warrants of like tenor for the unexercised balance. For the
purposes hereof, “Exercise Date” shall mean the date on which all deliveries required to be made to the Company upon exercise of the Warrants pursuant to this Section 4 shall have been made. 
  
 (c) Issuance of Certificates. Upon the
exercise of a Warrant in whole or in part, the Company will within five (5) days thereafter, at its expense (including the payment by the Company of any applicable issue or transfer taxes), cause to be issued in the name of and delivered to the
Warrant holder a certificate or certificates for the number of fully paid and non-assessable ordinary shares to which such holder is entitled upon exercise of the Warrant. In the event such holder is entitled to a fractional share, in lieu thereof
such holder shall be paid a cash amount equal to such fraction, multiplied by the Current Value of one full ordinary share on the date of exercise. Certificates for ordinary shares issuable by reason of the exercise of the Warrant or Warrants shall
be dated and shall be effective as of the date of the surrendering of the Warrant for exercise, notwithstanding any delays in the actual execution, issuance or delivery of the certificates for the shares so purchased. In the event a Warrant or
Warrants is exercised as to less than the aggregate amount of all ordinary shares issuable upon exercised as to less than the aggregate amount of all ordinary shares issuable upon exercise of all Warrants held by such person, the Company shall issue
a new Warrant to the holder of the Warrant so exercised covering the aggregate number of ordinary shares as to which Warrants remain unexercised. 
  
 (d) Current Value. For purposes of this section, “Current Value” is defined (i) in the case for which a public
market exists for the ordinary shares at the time of such exercise, at a price per share equal to (A) the average of the means between the closing bid and asked prices of the ordinary shares in the over-the-counter market for 20 consecutive business
days commencing 30 business days before the date of such notice, (B) if the ordinary shares are quoted on Nasdaq SmallCap Market, at the average of the means of the daily closing bid and asked prices of the ordinary shares for 20 consecutive
business days commencing 30 business days before the date of such notice, or (C) if the ordinary shares are listed on any national securities exchange or The Nasdaq National Market, at the average of the daily closing prices of the ordinary shares
for 20 consecutive business days commencing 30 business days before the date of such notice, and (ii) in the case no public market exists at the time of such exercise, at the Appraised Value. For the purposes of this Agreement, “Appraised
Value” is the value determined in accordance with the following procedures. For a period of five (5) days after the date of an event (a “Valuation Event”) requiring determination of Current Value at a time when no public market exists
for the ordinary shares (the “Negotiation Period”), each party to this Agreement agrees to negotiate in good faith to reach agreement upon the Appraised Value of the securities or property at issue, as of the date of the Valuation Event,
which will be the fair market value of such securities or property, without premium for control or discount for minority 

  

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interests, illiquidity or restrictions on transfer. In the event that the parties are unable to agree upon the Appraised Value of such securities or other
property by the end of the Negotiation Period, then the Appraised Value of such securities or property will be determined for purposes of this Agreement by a recognized appraisal or investment banking firm mutually agreeable to the holders of the
Warrants and the Company (the “Appraiser”). If the holders of the Warrants and the Company cannot agree on an Appraiser within two (2) business days after the end of the Negotiation Period, the Company, on the one hand, and the holders of
the Warrants, on the other hand, will each select an Appraiser within ten (10) business days after the end of the Negotiation Period and those Appraisers will determine the fair market value of such securities or property, without premium for
control or discount for minority interests. Such independent Appraiser(s) will be directed to determine fair market value of such securities or property as soon as practicable, but in no event later than thirty (30) days from the date of its
selection. The determination by Appraiser(s) of the fair market value will be conclusive and binding on all parties to this Agreement. If there are two Appraisers, and they do not agree as to fair market value, then fair market value shall be
determined to be the average of the fair market values as determined by each Appraiser. Appraised Value of each ordinary share at a time when (i) the Company is not a reporting company under the Securities Exchange Act of 1934 and (ii) the ordinary
shares are not traded in the organized securities markets, will, in all cases, be calculated by determining the Appraised Value of the entire Company taken as a whole and dividing that value by the number of ordinary shares then outstanding, without
premium for control or discount for minority interests, illiquidity or restrictions on transfer. The costs of the Appraiser(s) will be borne by the Company. In no event will the Appraised Value of the ordinary shares be less than the per share
consideration received or receivable with respect to the ordinary shares or securities or property of the same class in connection with a pending transaction involving a sale, merger, recapitalization, reorganization, consolidation, or share
exchange, dissolution of the Company, sale or transfer of all or a majority of its assets or revenue or income generating capacity, or similar transaction. 
  
 5. Protection Against Dilution. The Exercise Price for the ordinary shares and number of ordinary shares issuable upon exercise of the
Warrants is subject to adjustment from time to time as follows: 
  
 (a) Stock Dividends, Subdivisions, Reclassifications, Etc. In case at any time or from time to time after the date of execution of this Agreement, the Company shall (i) take a record of the holders of
ordinary shares for the purpose of entitling them to receive a dividend or a distribution on ordinary shares payable in ordinary shares or other class of securities, (ii) subdivide or reclassify its outstanding shares of ordinary shares into a
greater number shares, or (iii) combine or reclassify its outstanding ordinary shares into a smaller number of shares, then, and in each such case, the Exercise Price in effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision, combination or reclassification shall be adjusted in such a manner that the Exercise Price for the shares issuable upon exercise of the Warrants immediately after such event shall bear the same ratio to the
Exercise Price in effect immediately prior to any such event as the total number of 

  

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ordinary shares outstanding immediately prior to such event shall bear to the total number of ordinary shares outstanding immediately after such event.

  
 (b) Adjustment of Number of Shares
Purchasable. When any adjustment is required to be made in the Exercise Price under this Section 5, (i) the number of ordinary shares issuable upon exercise of the Warrants shall be changed (upward to the nearest full share) to the number of
ordinary shares determined by dividing (x) an amount equal to the number of shares issuable pursuant to the exercise of the Warrants immediately prior to the adjustment, multiplied by the Exercise Price in effect immediately prior to the adjustment,
by (y) the Exercise Price in effect immediately after such adjustment, and (ii) upon exercise of the Warrant, the holder will be entitled to receive the number of ordinary shares of other securities referred to in Section 5(a) that such holder would
have received had the Warrant been exercised prior to the events referred to in Section 5(a). 
  
 (c) Adjustment for Reorganization, Consolidation, Merger, Etc. In case of any reorganization or consolidation of the Company
with, or any merger of the Company with or into, another entity (other than a consolidation or merger in which the Company is the surviving corporation) or in case of any sale or transfer to another entity of the majority of assets of the Company,
the entity resulting from such reorganization or consolidation or surviving such merger or to which such sale or transfer shall be made, as the case may be, shall make suitable provision (which shall be fair and equitable to the holders of Warrants)
and shall assume the obligations of the Company hereunder (by written instrument executed and mailed to each holder of the Warrants then outstanding) pursuant to which, upon exercise of the Warrants, at any time after the consummation of such
reorganization, consolidation, merger or conveyance, the holder shall be entitled to receive the stock or other securities or property that such holder would have been entitled to upon consummation if such holder had exercised the Warrants
immediately prior thereto, all subject to further adjustment as provided in this Section 5. 
  
 (d) Certificate as to Adjustments. In the event of adjustment as herein provided in paragraphs of this Section 5, the
Company shall promptly mail to each Warrant holder a certificate setting forth the Exercise Price and number of ordinary shares issuable upon exercise after such adjustment and setting forth a brief statement of facts requiring such adjustment. Such
certificate shall also set forth the kind and amount of stock or other securities or property into which the Warrants shall be exercisable after any adjustment of the Exercise Price as provided in this Agreement. 
  
 (e) Minimum Adjustment. Notwithstanding the
foregoing, no certificate as to adjustment of the Exercise Price hereunder shall be made if such adjustment results in a change in the Exercise Price then in effect of less than five cents ($0.05) and any adjustment of less than five cents ($0.05)
of any Exercise Price shall be carried forward and shall be made at the time of and together with any subsequent adjustment that, together with any subsequent adjustment that, together with the adjustment or adjustments so carried forward, amounts
to five cents ($0.05) or more; provided however, that upon the exercise of a Warrant, the Company shall 

  

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have made all necessary adjustments (to the nearest cent) not theretofore made to the Exercise Price up to and including the date upon which such Warrant is
exercised. 
  
 7. Registration Rights. 

 
 (a) Demand Registration Under the Securities Act of
1933. At any time commencing after                     , 2006 through and including
                    , 2010, parties who collectively hold a majority of the ordinary shares issued or issuable upon the exercise of the
Warrants shall have the right, exercisable by written notice to the Company, to have the Company prepare and file with the Securities and Exchange Commission (the “Commission”), on one occasion, a registration statement and such other
documents, including a prospectus, as may be necessary in the opinion of both counsel for the Company and counsel for you and the other holders, in order to comply with the provisions of the Act, so as to permit a public offering and sale of their
respective Warrants, the ordinary shares underlying the Warrants or other securities held as a result of any adjustment made pursuant to Section 5 hereof (collectively, the “Registrable Securities”). The Company shall notify all holders of
the Warrants and the ordinary shares underlying the Warrants of any such demand registration request within ten (10) days of receipt of such request. The notified holders may participate in such demand registration by notifying the Company within
ten (10) days after receiving the Company’s notification. 
  
 (b) Notice to Be Delivered. The Company covenants and agrees to give written notice of any registration request under Section 7(a) by you or any holder or holders to you and to all other holders of the
Warrants or the ordinary shares underlying the Warrants within ten (10) days from the date of the receipt of any such registration request. 
  
 (c) Covenants of the Company With Respect to Registration. In connection with any registration under Section 7(a) hereof,
the Company covenants and agrees as follows: 
  
 (i) The Company shall use its best efforts to file a registration statement within forty-five (45) days of receipt of any demand therefor in accordance with Section 7(a), shall use its best efforts to have any registration statement
declared effective at the earliest practicable time, and shall furnish you and each holder desiring to sell the Registrable Securities held by you or the other holders as a result of any adjustment made pursuant to the provisions of Section 5
hereof, such number of prospectuses as shall reasonably be requested. 
  
 (ii) The Company shall pay all costs (excluding fees and expenses of counsel for you and the other holders and any underwriting or selling commissions), fees and expenses in connection with all registration statements
filed pursuant to Section 7(a) hereof including, without limitation, the Company’s legal and accounting fees, printing expenses, and blue sky fees and expenses. If the Company shall fail to comply with the provisions of Section 7(d), the
Company shall, in addition to any other equitable or other relief available to you and the other holders, be liable for any or all actual damages (which may include damages due to a loss of profit). 
  

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 (iii) The Company will take all necessary action which may be required in qualifying or
registering the Registrable Securities included in a registration statement for offering and sale under the securities or blue sky laws of such states as reasonably are requested by you and the other holders, provided that the Company shall not be
obligated to execute or file any general consent to service of process or to qualify as a foreign corporation to do business under the laws of any such jurisdiction. 
  
 (iv) The Company shall indemnify you and all other holders of the Registrable Securities to be sold pursuant
to any registration statement and each person, if any, who controls you or the holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), against all loss,
claim, damage, expense or liability (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Act, the 1934 Act or otherwise, arising from
such registration statement to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify you in the Underwriting Agreement, dated
                    , 2005, by and between you and the Company (the “Underwriting Agreement”) and to provide for just and equitable
contribution as set forth in the Underwriting Agreement. 
  
 (v) You and all other holders of the Registrable Securities to be sold pursuant to a 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 1934 Act, against all loss, claim, damage or expense or liability (including all expenses reasonably incurred in
investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Act, the 1934 Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, for
specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in the Underwriting Agreement pursuant to which you have agreed to indemnify the Company and to provide for just and equitable
contribution as set forth in the Underwriting Agreement. 
  
 (vi) Nothing contained in this Agreement shall be construed as requiring you or other holders to exercise their Warrants prior to the initial filing of any registration statement or the effectiveness thereof.

  
 (vii) The Company shall deliver promptly to
you and all other holders of the Registrable Securities participating in the offering copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its
staff with respect to the registration statement and permit you and the other holders of the Registrable Securities to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration
statement as it deems reasonably necessary to comply with applicable securities laws or rules of the National Association of Securities Dealers, Inc. (“NASD”); provided that you and each such 

  

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holder of the Registrable Securities agrees not to disclose such information without the prior consent of the Company. 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 you and any other holder of the
Registrable Securities shall reasonably request. 
  
 (viii) If required by the underwriters in connection with an underwritten offering which includes Registrable Securities pursuant to this Section 7, the Company shall enter into an underwriting agreement with one or more underwriters
selected for such underwriting. Such underwriting agreement shall be satisfactory in form and substance to the Company, you and each other holder of the Registrable Securities, 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 underwriters. If required by the underwriters, you and the other holders of the Registrable Securities 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 and warranties of the Company to or for the benefit of such underwriters shall, to the extent that they may be
applicable, also be made to and for the benefit of you and the other holders of the Registrable Securities. You and the other holders of the Registrable Securities 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 you and the other Holders of the Registrable Securities and their intended methods of distribution. 
  
 (ix) In connection with any registration statement filed pursuant to Section 7 hereof, the Company shall
furnish, or cause to be furnished, to you and each Holder participating in any underwritten offering and to each underwriter, a signed counterpart, addressed to you, such holder or underwriter, 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 the underwriting agreement), 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. 
  
 (x) The
Company shall promptly notify you and each holder of the Registrable Securities covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Act, upon the Company’s discovery that,
or upon the happening of any event as a result of which, the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any 

  

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material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they
were made, and upon receipt of such notice you and each holder shall not effect any sale of securities and shall immediately cease utilizing or distributing such prospectus. At the request of you or any such holder, the Company shall promptly
prepare and furnish to you or such holder and each underwriter, if any, a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities,
such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they
were made. 
  
 (xi) For purposes of this
Agreement, the term “majority” in reference to you and the other holders of the Warrants or the ordinary shares underlying the Warrants, shall mean in excess of fifty percent (50%) of the then outstanding Warrants that have not been resold
to the public pursuant to Rule 144 under the Act or a registration statement filed with the Commission under the Act. 
  
 8. Stock Exchange Listing. In the event the Company lists its ordinary shares on any national securities exchange or market, the Company
will, at its expense, also list on such exchange, upon exercise of a Warrant, all ordinary shares issuable pursuant to such Warrant. 
  
 9. Restrictive Legend. Executed copies of this Agreement shall be filed in the principal office of the Company. Instruments evidencing all
or part of the Warrants shall contain the legend shown on Exhibit A until                     ,
        , after which time such legend may be removed at the request of the holder thereof. 
  
 10. Successors and Assigns; Binding Effect. This Agreement shall be binding upon and inure to the benefit of you and the Company and their
respective successors and permitted assigns. 
  
 11.
Notices. Any notice hereunder shall be given by registered or certified mail, if to the Company, at its principal office referred to in Section 5 and, if to the holders, to their respective addresses shown in the Warrant ledger of the
Company, provided that any holder may at any time on three (3) days’ written notice to the Company designate or substitute another address where notice is to be given. Notice shall be deemed given and received after a certified or registered
letter, properly addressed with postage prepaid, is deposited in the U.S. mail. 
  
 12. Severability. Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not
affect the remainder of this Agreement. 
  
 13. Assignment;
Replacement of Warrants. The Warrants may be sold, transferred, assigned, pledged or hypothecated by you prior to
                    ,          only to bona fide officers of Anderson & Strudwick,
Incorporated, who in turn shall be subject to the 

  

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same restriction. If the Warrant or Warrants are assigned, in whole or in part, the Warrants shall be surrendered at the principal office of the Company, and
thereupon, in the case of a partial assignment, a new Warrant shall be issued to the holder thereof covering the number of ordinary shares not assigned, and the assignee shall be entitled to receive a new Warrant covering the number of ordinary
shares so assigned. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant and appropriate bond or indemnification protection, the Company shall issue a new Warrant of like tenor.

  
 14. Rights of Shareholders. Until exercised, the
Warrants shall not entitle the holder thereof to any of the rights of a shareholder of the Company. 
  
 15. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Virginia without giving
effect to the principles of choice of laws thereof. 
  
 16.
Definition. All references to the word “you” in this Agreement shall be deemed to apply with equal effect to any persons or entities to whom Warrants have been transferred in accordance with the terms hereof, and, where
appropriate, to any persons or entities holding ordinary shares issuable upon exercise of Warrants. 
  
 17. Headings. The headings herein are for purposes of reference only and shall not limit or otherwise affect the meaning of any of the
provisions hereof. 
  

			
	 Very truly yours,

	
	EFUTURE INFORMATION TECHNOLOGY, INC.
		
	 By:
	 	 
		
	 Title:
	 	 
		
	 Date: 
	 	 

  
 Accepted as of the
         day of         , 2005. 
  

			
	 ANDERSON & STRUDWICK, INCORPORATED

		
	 By:
	 	 
		
	 Title: 
	 	 
		
	 Date: 
	 	 

  

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 EXHIBIT A 
  

No.              
                     Shares 
  
 E-FUTURE INFORMATION TECHNOLOGY, INC. 
 COMMON STOCK PURCHASE WARRANT 
  
 THIS IS TO CERTIFY that ANDERSON & STRUDWICK, INCORPORATED or its assigns as permitted in that certain Warrant Agreement (the “Warrant Agreement”) dated
                    , 2005 between the Company (as hereafter defined) and Anderson & Strudwick, Incorporated is entitled to purchase at
any time or from time to time on or after                     , 2006,
                     ordinary shares of e-Future Information Technology Inc., a Cayman Islands corporation (the “Company”), for an
exercise price per share as set forth in the Warrant Agreement referred to herein. This Warrant is issued pursuant to the Agreement, and all rights of the holder of this Warrant are further governed by, and subject to the terms and provisions of
such Warrant Agreement, copies of which are available upon request to the Company. The holder of this Warrant and the shares issuable upon the exercise hereof shall be entitled to the benefits, rights and privileges and subject to the obligations,
duties and liabilities provided in the Warrant Agreement. 
  
 UNTIL                     ,             , NEITHER ANDERSON &
STRUDWICK, INCORPORATED NOR ANY ASSIGNEE OF ALL OR A PORTION OF THE RIGHTS PURSUANT TO THIS WARRANT MAY SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE ANY OF ITS RIGHTS PURSUANT TO THIS WARRANT OTHER THAN TO BONA FIDE OFFICERS OF ANDERSON &
STRUDWICK, INCORPORATED. 
  
 Subject to the provisions of the
Securities Act of 1933, of the Warrant Agreement and of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, only to the extent expressly permitted in such documents and then only at the office of the Company at
e-Future Information Technology Inc., 3/F, Tower E2, Orient Plaza, No. 1 East Chang An Avenue, Dong Cheng District, Beijing, China 100738, Attention: Chairman, by the holder hereof or by a duly authorized attorney-in-fact, upon surrender of this
Warrant duly endorsed, together with the Assignment hereof duly endorsed. Until transfer hereof on the books of the Company, the Company may treat the registered holder hereof as the owner hereof for all purposes. 
  
 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed and
its corporate seal to be hereunto affixed by its proper corporate officers thereunto duly authorized. 
  

					
	E-FUTURE INFORMATION TECHNOLOGY INC.
			
	By:	 	 	 	 (SEAL)

	 	 	 President
	 	 

  

			
		
	ATTEST:	 	 
	 Secretary
	 	 

 EXHIBIT B 
  

FORM OF SUBSCRIPTION 
  
 To E-Future Information Technology Inc.: 
  
 The undersigned, the holder of Warrant Number
                    , hereby irrevocably elects to exercise the purchase right represented by such Warrant, and to purchase thereunder
                    * shares of ordinary shares of e-Future Information Technology, Inc. 
  
 As payment therefor, the undersigned (mark one): 
  
              herewith makes a payment in cash or by check of U.S.
$                    , or 
  
              requests to utilize the cashless exercise provision in Section 4(b) of the
Warrant Agreement. 
  
 Further, the undersigned requests that the
certificate or certificates for such shares be issued in the name of and delivered to the undersigned. The undersigned acknowledges and agrees that ordinary shares to be received by the undersigned are subject to the restrictions on transfer set
forth in the Warrant. 
  

	
	
	 
	 (Signature)

	
	 
	
	 
	 (Address)

  
 Dated:
                                       
  
  

	*	Insert here the number of shares set forth on the face of the Warrant (or, in the case of a partial exercise, the portion thereof as to which the Warrant is being exercised), in
either case without making any adjustment (which adjustment will be made in the issuance of such ordinary shares, other stock, securities, property, or cash) for additional ordinary shares or any other stock or other securities or property or cash
that, pursuant to the adjustment provisions of the Warrant, is deliverable upon exercise. 

 FORM OF ASSIGNMENT 
  
 (To be signed only upon transfer of Warrant) 
  
 For value received, the undersigned hereby sells, assigns and transfers unto
                     the right represented by Warrant Number             
to purchase              ordinary shares of e-Future Information Technology, Inc. to which the attached Warrant related, and appoints
                     as Attorney-in-Fact to transfer such right on the books of e-Future Information Technology, Inc. with the full power of
substitution in the premises. 
  
 The undersigned represents and
warrants that the transfer of the attached Warrant is permitted by the terms of the Warrant Agreement pursuant to which the attached Warrant has been issued, and the transferee hereof, by acceptance of this Assignment, agrees to be bound by the
terms of the Warrant Agreement with the same force and effect as if a signatory thereto. 
  

	
	
	 
	 (Signature)

	
	 
	
	 
	 (Address)

  
 Dated:Exhibit 10.1

 Exhibit 10.1 
  
 BEIJING RURAL CREDIT COOPERATIVE 
  
 LOAN AGREEMENT 
  
 THE LENDER: BEIJING HAIDIAN DISTRICT YUYUANTAN RURAL CREDIT COOPERATIVE (hereinafter referred to as “Party A”) 
  
 Domicile: Block A, 17 Wanshou Road, Haidian District, Beijing, P.R China 
 Postal Code: 100036 
 Legal Representative: Chen Yanxiang 
 Telephone: 68157933 
 Fax: 68157927 
  
 THE BORROWER: BEIJING EFUTURE INFORMATION TECHNOLOGY INC. (hereinafter referred to as
“Party B”) 
  
 Domicile: Room 312, E2 Tower, No. 1 Oriental Plaza,
East Chang An Ave, Dong Cheng District, Beijing 
 Postal Code: 100738 
 Legal Representative: Yan Yanchun 
 Telephone: 85188680 
 Fax: 85188679 
 Deposit Bank: China Merchant Bank Beijing Branch Oriental Plaza Sub-branch 
  
 THIS AGREEMENT is made and entered into by and between Party A and
Party B, through mutual friendly negotiation based on the principle of voluntariness, equality, as well as good faith, in accordance with relevant laws and regulations of the People’s Republic of China which are currently in effect, subject to
the terms and conditions as hereof. 
  
 Chapter 1 — Type of
Loan 
  
 Article 1 Party A hereby agrees to extend to Party B a
short-term loan subject to the terms contained herein. 
  
 Chapter 2 — Purpose of Loan 
  
 Article 2 The loan to
be provided hereunder is intended for working capital, without prior written consent from Party A, no change shall be made to the agreed purposes thereof. 

 Chapter 3 — Amount and Term of Loan 
  
 Article 3 The type of currency of the loan hereunder is Renminbi, and the amount
thereof is two million eight hundred thousand. 
  
 Article 4 The term of
the loan hereunder shall be from February 6, 2005 to February 5, 2006. Prior to the completion of performance of this Agreement, Party B, intending to extend the term hereof, shall deliver to Party A an application for an extension of term
for repayment of loan at least thirty (30) days before the expiration date of the scheduled term hereof, and an agreement on term extension for repayment shall be concluded between both Parties upon Party A consenting to the said application.

  
 Chapter 4 — Computation of Interests 
  
 Article 5 
  
 5.1 The interest rate of the loan hereunder is 5.58% 
  
 5.2 Party A shall be deemed to have extended and Party B to have borrowed the Loan hereunder upon the availability of the
amount of the Loan to the account of Party B subject to the timescale prescribed in Article 6 below. The interest on the Loan hereunder shall be accrued as from the date of availability of the loan. In the event the date of actual availability of
loan shall not coincide with the date thereof agreed to herein, the date shown in the voucher of loan transfer shall be applied, which voucher shall be considered an integral part of this Agreement and both of them are equally authentic; 

 
 5.3 The interest accrued on any partial amount of the loan hereunder shall
be settled on the 20th day of each quarter; 
  
 5.4 The said interest on loan shall be calculated and paid: 
  

	 	 ̈	on monthly basis 

  

	 	x	on quarterly basis 

  

	 	 ̈	on the date of principal repayment 

  
 5.5 Appropriate compound interest shall be computed and charged at the interest rate set out herein on any amount of interest not paid when due, and shall
be computed and charged at a penalty interest rate on the aforesaid overdue interests after the expiration date of the loan hereunder; 
  

 2 

 5.6 A penalty interest shall be computed and charged on any amount overdue, including principal and
accrued interests, at a interest rate of 130% of the loan interest rate provided herein, as from the maturity date of the loan hereunder; 
  
 5.7 Where Party B uses the loan for purposes other than those prescribed herein, Party A is entitled to take appropriate actions to deal with resulting
issues as if the used amount by Party B as hereabove had been appropriated and diverted without authorization or approval, furthermore, a penalty interest shall be computed and charged on the appropriated and diverted amount of the loan as above at
an interest rate of 150% of that described herein during the period of appropriation or diversion thereof; 
  
 5.8 Any necessary adjustment of the interest rate of loan hereunder and the method of computation and collection of interest shall be determined in
accordance with pertinent provisions of the People’s Bank of China. In the event the People’s Bank of China makes revision to the above-mentioned provisions, which revision applies to the loan hereunder, then Party A , without having to
notify Party B, may apply such revised provisions of the People’s Bank of China to the loan hereunder in all respects. 
  
 5.9 In the event where the People’s Bank of China adjusts then currently applicable interest rate upon execution of this Agreement and prior to the
availability of the first installment of the loan, the interest rate stipulated herein shall be applied to the loan hereunder. 
  
 Chapter 5 — Withdrawal of Loan 
  
 Article 6 Party shall withdraw the loan hereunder in an manner of: 
  

	 	x	A lump sum on February 6, 2006. 

  

	 	 ̈	In installments in the amount and on the time specified in Appendix A attached hereto. 

  
 Chapter 6 — Repayment of Loan 
  
 Article 7 
  
 7.1 Party B may in its sole discretion elect to repay the principal of the loan in an manner of: 
  

	 	x	A lump sum of repayment when due. 

  

	 	 ̈	In installments of principal in the amount and on the time specified in Appendix B attached hereto. 

  

 3 

 7.2 Party B shall, at the interest settlement date and prior to the principal repayment date both as
prescribed herein, prepare in such an account opened by Party B with Party A, adequate and sufficient funds for repayment of due and unpaid amounts of principal and accrued interests thereon in that currently applicable period, or shall at the
repayment date stipulated herein transfer appropriate amount from other accounts for repayment of due amount of loan. In the event of the failure of Party B to repay any due and unpaid amounts of the loan, whether that of principal or accrued
interest thereon, as scheduled, Party B is entitled to deduct or withhold directly the payable amounts from any account opened by Party B with Party A with any business offices that are within the department of Party A, including but not limited to
the principal of the loan, accrued interests, compound interests, as well as penalty interests; 
  
 7.3 Should Party B intend to repay accrued interests ahead of schedule, an prior notice to Party A is required therefore. Where Party B intends to repay
the principal of the loan ahead of schedule, a written application of ten (10) working days is required to be submitted to Party A to that effect, such voluntary earlier repayment of principal of loan, in whole or in part, is subject to
approval of Party A; 
  
 7.4 Party A hereby agrees that if Party B
requests to repay, wholly or partly, the principal, at a earlier date, Party A shall calculate and charge the interest on the amount to be repaid as above on the basis of the number of actual use of such amount by Party B and subject to related
provisions stated herein. In addition, Party B is obliged to pay to Party A compensation for breach in the sum which shall be computed as follows: 
  
 Early Repaid Amount of Principal x 5.58% x Number of Early Days 
  
 Article 8 
  
 8.1 In case Party B fails to use the loan pursuant to the purposes prescribed herein or repay due amount of principal and accrued interests thereon as
scheduled, Party A is entitled to declare any and all amounts of the loan immediately due and mature, and to recall any amount of the loan extended, and cease to provide any amount thereof. 
  
 8.2 During the term of this Agreement, in case Party B incurs a loss or
intentionally creates such a phenomenon of overstated income and understated loss due to improper management and malpractice, or a dispute over debt arises between Party B and any third party, or damage or destruction has been made to the mortgaged
or pledged property, as well as any other circumstances that might threaten the security and safety of the loan hereunder, Party A may in its sole discretion cease to extend further amounts under the loan and recall the amount in whole or in part
extended subject to provisions hereof. 
  
 8.3 In case Party B
provides Party A with such balance sheets or profit and loss statements which are falsified or conceal material facts, or Party B 

  

 4 

 
declines to subject itself to appropriate supervision on the use of loan and activities in respect of production, business operation and finance, then Party
A may in its sole discretion cease to extend further amounts under the loan and recall the amount in whole or in part extended subject to provisions hereof; 
  
 8.4 In case Party B fails to perform any of its obligations hereunder or any of those under the Guarantee Agreement which are specifically designed for
it, Party A, in addition to taking appropriate measures subject to relevant laws, shall have the right to recall the amount of the loan extended hereunder, in whole or in part, and cease to extend Party B any amount of the loan that has not been
withdrawn by Party B. 
  
 Chapter 7 — Guarantee

  
 Article 9 To ensure any and all amounts of the loan hereunder shall
be repaid and satisfied as scheduled, one or more than one means of guarantee indicated below shall be established therefor: 
  

	 	x	Guarantee Agreement numbered [2005] Wangbaozhi No. 002; 

  

	 	 ̈	[            ] numbered [Year]            ;

  

	 	 ̈	[            ] numbered [Year]            ;

  
 Party B hereby acknowledges that Party A is entitled to choose
to claim any rights included in the Guarantee Agreement listed above, so as to enable Party A to realize its due creditor’s rights hereunder or thereunder, and waive rights to defend the choice of claim by Party A. 
  
 Chapter 8 — Rights and Obligations of Both Parties 
  
 Article 10 Rights and Obligations of Party B: 
  
 10.1 Party B undertakes that the loan purposes set forth hereabove are in
line with and confirming to relevant laws, regulations, administrative rules, department rules, industry standards, as well as the Articles of Association or constitutional documents of Party B, and appropriate licenses and authorization have been
duly obtained and procured; 
  
 10.2 Party B undertakes that any
and all materials to be provided during the process of examination of application for loan are true and valid; 
  
 10.3 Party B will subject itself to reasonable and appropriate investigation of , access to and supervision on the use of loan hereunder by Party A;

  
 10.4 Party B will on its own initiative, cooperate with Party
A in any matter in respect of investigation of, access to and supervision on the use of loan hereunder by Party A; provide Party A with copies of its related financial 

  

 5 

 
statements such as balance sheets, profit and loss statements, cash flow sheets, etc.; and be responsible for the truthfulness, completeness and validity
thereof; 
  
 10.5 In the event that Party B during the term of
this Agreement stops production, ceases to carry out business, is de-registered, has its business license suspended, the legal representative or key responsible persons of which commit unlawful act and involve in influential actions, experiences
serious difficulties operating and manufacturing, undergoes deteriorating in financial standing, etc. as well as other circumstances that might be materially adverse to the repayment obligations hereunder, Party B shall give a written notice to
Party A without delay and shall at the request of Party A satisfy the debts hereunder and effect the guarantee provided for the said debt; 
  
 10.6 In the event a consolidation, division, merger & acquisition, restructuring into a shareholding company, contracting, lease, asset transfer,
pool, investment, application for business stop for rectification, application for dissolution, application for bankrupt proceedings, as well as other acts that may suffice to result in a change in the debt relationship between both Parties or
prejudice the realization of the rights and interests of Party A occurs or has occurred to Party B, Party B shall deliver to Party A written notice of ten (10) working days for approval, and shall take step to satisfy the debts hereunder and
effect the guarantees provided therefore, otherwise, Party B shall be precluded from conducting or taking on any of the aforesaid acts; 
  
 10.7 During the term of this Agreement, in case Party B changes its legal representative, domicile, business scope, registered capital, or name, a written
notice of thirty (30) days is required from Party B to Party A to that effect; 
  
 10.8 No guarantee which exceeds the financial ability of Party B may be provided for any third party unless and until the principal and accrued interests thereon of the loan hereunder have been fully satisfied and
settled; 
  
 10.9 Any intended transfer or assignment of debts
hereunder by Party B to any third party shall be subject to a written permission of Party A. 
  
 Article 11 Rights and Obligations of Party A: 
  
 11.1 Party A hereby undertakes to extend the loan hereunder subject to relevant applicable laws, regulations as well as provisions stated herein, and that it has obtained appropriate authority for execution of this
Agreement; 
  
 11.2 Party A is entitled to extend Party B the loan
in full and on time upon Party B meeting the following pre-conditions therefor: 
  
 (a) Party B has procured and completed any and all required approval, registration, delivery as well as other statutory procedures subject
to relevant applicable laws, regulations, and Party A’s provisions; 
  

 6 

 (b) In case a guarantee has been established for this Agreement, a guarantee agreement or
other means of guarantee which is satisfactory to Party B has come into effect; and 
  
 (c) No occurrence of any breach set out herein on the part of Party B. 
  
 11.3 Party A shall keep and maintain confidential and secret any and all information and materials obtained from Party B in
respect of its liabilities, finance, production, as well as business operation, etc. 
  
 11.4 During the term of this Agreement, Party B shall give a written notice of at least three (3) days after Party B changes its domicile which notice shall specifies such change. 
  
 11.5 Any intended transfer of the creditor’s claim by Party A to any
third party is not subject to consent of Party B, however, provided that a notice shall reach Party B fifteen (15) days following the execution of the agreement for the transfer of creditor’s claim. 
  
 11.6 Except as otherwise provided herein, any amount that Party B pays shall
be arranged to satisfy the debt hereunder in such a manner as repay the principal first and accrued interest later. 
  
 11.7 In the event the guarantor, which provides guarantee for the loan hereunder, stops production, ceases to carry out business, has its business license
suspended, is de-registered, becomes bankrupt or insolvent, is cancelled or repealed, suffers loss, etc thus losing the entire guarantee capability or part thereof appropriate to this loan hereunder, or the mortgaged or pledged property decreases in
terms of value, is damaged by accident or destroyed or otherwise, Party B is required to give a written notice to Party A promptly and refurnish other surety that is recognized by Party A. 
  
 Chapter 9 — Liabilities for Breach of Contract 
  
 Article 12 
  
 12.1 Upon effectiveness of this Agreement, both Parties hereto shall fully perform their respective obligations hereunder.
Non-performance or improper performance of its obligations under this Agreement on the part of either party hereto shall be deemed a breach of this Agreement, and the party in breach shall bear any and all liabilities therefore. 
  
 12.2 Where Party B fails to repay due principal and accrued interests thereon
on time agreed herein, Party A is entitled to order Party B to make a settlement of such due amounts within a specified time limit, and charge Party B appropriate interests on such overdue amounts of the loan subject to this Agreement. 

 

 7 

 12.3 Party B shall bear any and all action costs, attorney fees, travel allowances and other charges and
expenses incurred in respect of actions or suits lodged by Party A to realize its creditor’s rights as a result of breach by Party B. 
  
 12.4 If Party B fully performs its part of this Agreement, and Party A fails to extend Party B the loan as described herein, Party B is entitled to claim
a fine for breach against Party A in the light of the involved amount and number of delayed days which fine shall be computed at the interest rate stipulated herein. 
  
 Chapter 10 — Effectiveness 
  
 Article 13 
  
 13.1 This Agreement shall come into force (i) upon signature by the legal representatives or duly authorized representatives (their proxies shall be
attached hereto as appendices) and official seal of both Parties; and (ii) at the effective date of the Guarantee Agreement provided for in Article 9 hereabove, even if this Agreement has been established upon being signed by the legal
representatives or duly authorized representatives (their proxies shall be attached hereto as appendices) and stamped with official seal of both Parties. 
  
 Chapter 11 — Modification, Cancellation and Termination 
  
 Article 14 
  
 14.1 Upon effectiveness of this Agreement, neither Party hereto shall make any modification to or ahead of schedule terminate this Agreement, unless and
until otherwise specified herein. Any modification or termination of this Agreement shall be made between both Parties by an agreement in writing reached thereby through mutual consultation. 
  
 14.2 This Agreement shall, upon the full performance hereof, cease to be
effective automatically. 
  
 Chapter 12 — Resolution of
Dispute 
  
 Article 15 
  
 15.1 Any dispute arising from or in connection with this Agreement shall be
settled between both Parties through mutual friendly negotiation. In case 

  

 8 

 
no settlement can be reached therefrom, such dispute shall then be instituted by either party with the court at the place where Party A resides. 

 
 Article 16 
  
 16.1 Party A may deduct any amount from Party B’s appropriate accounts with Party A. 
  
 Article 17 
  
 17.1 This Agreement is made in triplicate, all of which are equally authentic, with one copy to be held by Party A, Party B
as well related Guaranteeing Party (if applicable). 
  
 Article 18

  
 18.1 This Agreement has been executed at Yuyuan Credit
Cooperative as of this 6th day of February 2005. 
  

 9 

 Party A: BEIJING HAIDIAN DISTRICT YUYUANTAN RURAL CREDIT COOPERATIVE: 
  

			
	Legal Representative: Chen Yanxiang
		
	(Signature):	 	/s/ Chen Yanxiang
	
	 February 6, 2005

  
 Party B: BEIJING EFUTURE
INFORMATION TECHNOLOGY INC. 
  

			
	Legal Representative: Yan Yanchun
		
	(Signature):	 	/s/ Yan Yanchun
	
	 February 6, 2005

  

 10

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