Document:

Unassociated Document

    
 

    
      	 	
              January
                31, 2007

            

    

    

    
China
      Discovery Acquisition Corp.

    2666
      East
      Bayshore Road, Suite B

    Palo
      Alto, California 94303

     

    EarlyBirdCapital,
      Inc.

    275
      Madison Avenue

    Suite
      1203

    New
      York,
      New York 10016

    

    
      	 	 	
              Re:

            	
              Initial
                Public Offering

            

    

    

    Gentlemen:

    

    The
      undersigned shareholder and direc-tor of China Discovery Acquisition Corp.
      (“Company”), in consideration of EarlyBirdCapital, Inc. (“EBC”) entering into a
      letter of intent (“Letter of Intent”) to underwrite an initial public offering
      of the securities of the Company (“IPO”) and embarking on the IPO process,
      hereby agrees as follows (certain capitalized terms used herein are defined
      in
      paragraph 14 hereof):

    

    1. If
      the
      Company solicits approval of its shareholders of a Business Combination, the
      undersigned will vote all Insider Shares owned by him (including those included
      within the Insider Units) in accordance with the majority of the votes cast
      by
      the holders of the IPO Shares. 

    

    2. In
      the
      event that the Company fails to consummate a Business Combination within 24
      months from the effective date (“Effective Date”) of the registration statement
      relating to the IPO, the undersigned will (i) cause the Trust Fund (as defined
      in the Letter of Intent) to be liquidated and distributed to the holders of
      IPO
      Shares and (ii) take all reasonable actions within his power to cause the
      Company to liquidate as soon as reasonably practicable. The undersigned hereby
      waives any and all right, title, interest or claim of any kind in or to any
      distribution of the Trust Fund and any remaining net assets of the Company
      as a
      result of such liquidation with respect to his Insider Shares and shares
      underlying the Insider Units (“Claim”) and hereby waives any Claim the
      undersigned may have in the future as a result of, or arising out of, any
      contracts or agreements with the Company and will not seek recourse against
      the
      Trust Fund for any reason whatsoever. In the event of the liquidation of the
      Trust Fund, the undersigned agrees to indemnify and hold harmless the Company
      against any and all loss, liability, claims, damage and expense whatsoever
      (including, but not limited to, any and all legal or other expenses reasonably
      incurred in investigating, preparing or defending against any litigation,
      whether pending or threatened, or any claim whatsoever) which the Company may
      become subject as a result of any claim by any vendor or other person who is
      owed money by the Company for services rendered or products sold or contracted
      for, or by any target business, but only to the extent necessary to ensure
      that
      such loss, liability, claim, damage or expense does not reduce the amount in
      the
      Trust Fund.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        China
          Discovery Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        January
          31, 2007

        Page
          2

      

       

    

    3. In
      order
      to minimize potential conflicts of inter-est which may arise from multiple
      affiliations, the undersigned agrees to present to the Company for its
      consideration, prior to presentation to any other person or entity, any suitable
      opportunity to acquire an operating business, until the earlier of the
      consummation by the Company of a Business Combination, the liquidation of the
      Company or until such time as the undersigned ceases to be a director of the
      Company, subject to any pre-existing fiduciary and contractual obligations
      the
      undersigned might have.

    

    4. The
      undersigned acknowledges and agrees that the Company will not consummate any
      Business Combination which involves a company which is affiliated with any
      of
      the Insiders unless
      the Company obtains an opinion from an independent investment banking firm
      reasonably acceptable to EBC that the business combination is fair to the
      Company’s shareholders from a financial perspective.

     

    5. Neither
      the undersigned, any member of the family of the undersigned, nor any affiliate
      (“Affiliate”) of the undersigned will be entitled to receive and will not accept
      any compensation for services rendered to the Company prior to or in connection
      with the consummation of the Business Combination; provided that the undersigned
      shall be entitled to reimbursement from the Company for his out-of-pocket
      expenses incurred in connection with seeking and consummating a Business
      Combination.  

     

    6. Neither
      the undersigned, any member of the family of the undersigned, nor any Affiliate
      of the undersigned will be entitled to receive or accept a finder’s fee or any
      other compensation in the event the undersigned, any member of the family of
      the
      undersigned or any Affiliate of the undersigned originates a Business
      Combination. 

    

    7. On
      the
      Effective Date, the undersigned will escrow his Insider Shares until one year
      after the Company consummates a Business Combination subject to the terms of
      a
      Stock Escrow Agreement which the Company will enter into with the undersigned
      and an escrow agent acceptable to the Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        China
          Discovery Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        January
          31, 2007

        Page
          3

      

       

    

    8. The
      undersigned agrees to be a Director of the Company until the earlier of the
      consummation by the Company of a Business Combination or the liquidation of
      the
      Company. The undersigned’s biographical information furnished to the Company and
      EBC and attached hereto as Exhibit A is true and accurate in all respects,
      does
      not omit any material information with respect to the undersigned’s background
      and contains all of the information required to be disclosed pursuant to Item
      401 of Regulation S-K, promulgated under the Securities Act of 1933. The
      undersigned’s Questionnaire furnished to the Company and EBC and annexed as
      Exhibit B hereto is true and accurate in all respects. The undersigned
      represents and warrants that:

    

    (a) he
      is not
      subject to, or a respondent in, any legal action for, any injunction,
      cease-and-desist order or order or stipulation to desist or refrain from any
      act
      or practice relating to the offering of securities in any
      jurisdiction;

    

    (b) he
      has
      never been convicted of or pleaded guilty to any crime (i) involving any fraud
      or (ii) relating to any financial transaction or handling of funds of another
      person, or (iii) pertaining to any dealings in any securities and he is not
      currently a defendant in any such criminal proceeding; and

    

    (c) he
      has
      never been suspended or expelled from membership in any securities or
      commodities exchange or association or had a securities or commodities license
      or registration denied, suspended or revoked.

    

    9. The
      undersigned has full right and power, without violating any agreement by which
      he is bound, to enter into this letter agreement and to serve as a Director
      of
      the Company.

    

    10. The
      undersigned hereby waives his right to exercise conversion rights or appraisal
      rights with respect to any Ordinary Shares of the Company owned or to be owned
      by the undersigned, directly or indirectly, and agrees that he will not seek
      conversion or appraisal with respect to such shares in connection with any
      vote
      to approve a Business Combination.

    

    11. The
      undersigned hereby agrees to not propose, or vote in favor of, an amendment
      to
      the Company’s Memorandum and Articles of Association to extend the period of
      time in which the Company must consummate a Business Combination prior to its
      liquidation. Should such a proposal be put before shareholders other than
      through actions by the undersigned, the undersigned hereby agrees to vote
      against such proposal. This paragraph may not be modified or amended under
      any
      circumstances.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        China
          Discovery Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        January
          31, 2007

        Page
          4

      

       

    

    12. In
      the
      event that the Company does not consummate a Business Combination and must
      liquidate and its remaining net assets are insufficient to complete such
      liquidation, the undersigned agrees to advance such funds necessary to complete
      such liquidation and agrees not to seek repayment for such
      expenses.

    

    13. The
      undersigned authorizes any employer, financial institution, or consumer credit
      reporting agency to release to EBC and its legal representatives or agents
      (including any investigative search firm retained by EBC) any information they
      may have about the undersigned’s background and finances (“Information”).
      Neither EBC nor its agents shall be violating the undersigned’s right of privacy
      in any manner in requesting and obtaining the Information and the undersigned
      hereby releases them from liability for any damage whatsoever in that
      connection.

    

    14. This
      letter agreement shall be governed by and construed and enforced in accor-dance
      with the laws of the State of New York, without
      giving effect to conflicts of law principles that would result in the
      application of the substantive laws of another jurisdiction.
      The
      undersigned hereby (i) agrees that any action, proceeding or claim against
      him
      arising out of or relating in any way to this letter agreement (a “Proceeding”)
      shall be brought and enforced in the courts of the State of New York of the
      United States of America for the Southern District of New York, and irrevocably
      submits to such jurisdiction, which jurisdiction shall be exclu-sive, (ii)
      waives any objection to such exclusive jurisdiction and that such courts
      represent an inconvenient forum and (iii) irrevocably agrees to appoint Graubard
      Miller as agent for the service of process in the State of New York to receive,
      for the undersigned and on his behalf, service of process in any Proceeding.
      If
      for any reason such agent is unable to act as such, the undersigned will
      promptly notify the Company and EBC and appoint a substitute agent acceptable
      to
      each of the Company and EBC within 30 days and nothing in this letter will
      affect the right of either party to serve process in any other manner permitted
      by law.  

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        China
          Discovery Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        January
          31, 2007

        Page
          5

      

       

    

    15. As
      used
      herein, (i) a “Business Combination” shall mean the acquisition, through a stock
      exchange, asset acquisition or other similar business combination, of an
      operating business, or control of such operating business, through contractual
      arrangements, that has its principal operations located in the People’s Republic
      of China; (ii) “Insiders” shall mean all officers, directors and shareholders of
      the Company immediately prior to the IPO; (iii) “Insider Shares” shall mean all
      of the shares of Common Stock of the Company acquired by an Insider prior to
      the
      IPO; (iv) “Insider Units” means the Units being sold privately by the Company to
      certain of the Insiders; and (v) “IPO Shares” shall mean the shares of Common
      Stock issued in the Company’s IPO.

     

     

    
      	 	
              Vincent
                Shen

              Print
                Name of Insider

              

              

              

              /s/
                Vincent Shen

              Signature

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    
      Vincent
        Shen has been a member of
        our board of directors since our inception. Mr. Shen has been the managing
        director of investment banking and the co-head of China
        investment banking at CLSA Equity Capital Market Limited, a private investment
        banking firm, since March 2006. From July 2005 to February 2006, Mr. Shen
        was
        managing director of New Faith Capital Limited, a private equity and merger
        and
        acquisition firm. From April 2004 to May 2005, Mr. Shen was a director and
        deputy head of China
        investment banking at Credit Suisse First Boston (Hong
        Kong) Limited. From April 2000 to March 2004, he was managing
        director of BOC International, a private investment banking firm. From January
        1998 to March 2000, he was deputy general manager of the investment banking
        department of China International Capital Corporation, a private investment
        banking firm. Mr. Shen received a B.A. from the Beijing Foreign Languages
        Institute, a Master of International Law from Beijing University Law School
        and
        an M.B.A. from Ecole Nationale d’ Administration in Paris.INVESTMENT
      MANAGEMENT TRUST AGREEMENT

    

    This
      Agreement is made as of _____________, 2007 by and between China Discovery
      Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust
      Company (“Trustee”).

    

    WHEREAS,
      the Company’s registration statement on Form F-1, No. 333-______
      (“Registration Statement”), for its initial public offering of securities
      (“IPO”) has been declared effective as of the date hereof (“Effective Date”) by
      the Securities and Exchange Commission (capitalized terms used herein and not
      otherwise defined shall have the meanings set forth in the Registration
      Statement); and 

    

    WHEREAS,
      EarlyBirdCapital, Inc. (“EBC”) is acting as the representative of the
      underwriters in the IPO; and

    

    WHEREAS,
      as described in the Registra-tion Statement, and in accordance with the
      Company’s Memorandum and Articles of Association, $28,475,000.40 of the gross
      proceeds of the IPO and sale of the Insider Units and Insider Warrants (as
      defined in the Registration Statement) ($32,772,500.40 if the underwriters
      over-allotment option is exercised in full) will be delivered to the Trustee
      to
      be deposited and held in a trust account for the benefit of the Company and
      the
      holders of the Company’s common stock, par value $.0001 per share, issued in the
      IPO as hereinafter provided and in the event the Units are registered in
      Colorado, pursuant to Section 11-51-302(6) of the Colorado Revised Statutes.
      A
      copy of the Colorado Statute is attached hereto and made a part hereof (the
      amount to be delivered to the Trustee will be referred to herein as the
“Property”; the stockholders for whose benefit the Trustee shall hold the
      Property will be referred to as the “Public Stockholders,” and the Public
      Stockholders and the Company will be referred to together as the
“Beneficiaries”); and 

    

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

    

    IT
      IS
      AGREED:

    

    1. Agreements
      and Covenants of Trustee.
      The
      Trustee hereby agrees and covenants to:

    

    (a) Hold
      the
      Property in trust for the Beneficiaries in accordance with the terms of this
      Agreement, including the terms of Section 11-51-302(6) of the Colorado Statute,
      in a segregated trust account (“Trust Account”) established by the
      Trustee; 

    

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

    

    (c) In
      a
      timely manner, upon the instruction of the Company, to invest and reinvest
      the
      Property in United States “government securities” within the meaning of Section
      2(a)(16) of the Investment Company Act of 1940 having a maturity of 180 days
      or
      less,
      and/or
      in any open ended investment company registered under the Investment Company
      Act
      of 1940 that holds itself out as a money market fund selected by the Company
      meeting the conditions of paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7
      promulgated under the Investment Company Act of 1940, as determined by the
      Company;

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

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

    

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

    

    (f) Supply
      any necessary information or docu-ments as may be requested by the Company
      in
      connection with the Com-pany’s preparation of its returns;

    

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

    

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

    

    (i) Commence
      liquidation of the Trust Account only after and promptly after receipt of,
      and
      only in accordance with, the terms of a letter (“Termination Letter”), in a
      form substantially similar to that attached hereto as either Exhibit A or
      Exhibit B hereto, signed on behalf of the Company by its President or
      Chairman of the Board and Secre-tary or Assistant Secretary and affirmed by
      counsel for the Company, and complete the liquidation of the Trust Account
      and
      distribute the Property in the Trust Account only as directed in the Termination
      Letter and the other documents referred to therein; provided,
      however,
      that in
      the event that a Termination Letter has not been received by the Trustee by
      the
      24-month anniversary of the effective date of the Registration Statement (“Last
      Date”), the Trust Account shall be liquidated in accordance with the procedures
      set forth in the Termination Letter attached as Exhibit B hereto and distributed
      to the stockholders of record on the Last Date. In all cases, the Trustee shall
      provide EBC with a copy of any Termination Letters and/or any other
      correspondence that it receives with respect to any proposed withdrawal from
      the
      Trust Account promptly after it receives same. The provisions of this Section
      1(i) may not be modified, amended or deleted under any
      circumstances.

    

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

    

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

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    (b) Hold
      the
      Trustee harmless and indemnify the Trustee from and against, any and all
      expenses, includ-ing reason-able counsel fees and disbursements, or loss
      suf-fered by the Trustee in connection with any action, suit or other
      pro-ceeding brought against the Trustee involving any claim, or in connection
      with any claim or demand which in any way arises out of or relates to this
      Agreement, the services of the Trustee hereunder, or the Property or any income
      earned from investment of the Property, except for expenses and losses resulting
      from the Trustee's gross negligence or willful misconduct. Promptly after the
      receipt by the Trustee of notice of demand or claim or the commencement of
      any
      action, suit or proceeding, pursuant to which the Trustee intends to seek
      indemnifica-tion under this paragraph, it shall notify the Company in writing
      of
      such claim (hereinafter referred to as the “Indemnified Claim”). The Trustee
      shall have the right to conduct and manage the defense against such Indemnified
      Claim, provided, that the Trustee shall obtain the consent of the Company with
      respect to the selection of coun-sel, which consent shall not be unreasonably
      withheld. The Trustee may not agree to settle any Indemnified Claim without
      the
      prior written consent of the Company unless such settlement includes a full
      release of the Company with respect to such Indemnified Claim. The Company
      may
      participate in such action with its own counsel; 

    

    (c) Pay
      the
      Trustee an initial acceptance fee of $1,000 and an annual fee of $3,000 (it
      being expressly understood that the Property shall not be used to pay such
      fee).
      The Company shall pay the Trustee the initial acceptance fee and first year’s
      fee at the consummation of the IPO and thereafter on the anniversary of the
      Effective Date. The Trustee shall refund to the Company the fee (on a pro rata
      basis) with respect to any period after the liquidation of the Trust Fund.
      The
      Company shall not be responsible for any other fees or charges of the Trustee
      except as may be provided in paragraph 2(b) hereof (it being expressly
      understood that the Property shall not be used to make any payments to the
      Trustee under such paragraph);

    

    (d) Provide
      to the Trustee any letter of intent, agreement in principle or definitive
      agreement for a Business Combination that is executed on or prior to the First
      Date; and

    

    (e) In
      connection with any vote of the Company’s stockholders regarding a Business
      Combination, provide to the Trustee an affidavit or certificate of a firm
      regularly engaged in the business of soliciting proxies and/or tabulating
      stockholder votes (which firm may be the Trustee) verifying the vote of the
      Company’s stockholders regarding such Business Combination.

    

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

    

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

    

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

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

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

    

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

    

    (e) Assume
      that the authority of any person designated by the Company to give instructions
      here-under shall not be continuing unless provided otherwise in such
      designa-tion, or unless the Company shall have delivered a written revocation
      of
      such authority to the Trustee;

    

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

    

    (g) Verify
      the correctness of the information set forth in the Registra-tion Statement
      or
      to confirm or assure that any acquisition made by the Company or any other
      action taken by it is as contemplated by the Registration Statement;
      and

    

    (h) Pay
      any
      taxes on behalf of the Trust Account (it being expressly understood that the
      Property shall not be used to pay any such taxes and that such taxes, if any,
      shall be paid by the Company from funds not held in the Trust
      Account).

    

    4. Termination.
      This
      Agreement shall terminate as follows:

    

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

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    (b) At
      such
      time that the Trustee has completed the liquidation of the Trust Account in
      accordance with the provi-sions of paragraph 1(i) hereof, and dis-tributed
      the
      Property in accordance with the provisions of the Termination Letter, this
      Agreement shall terminate except with respect to Paragraph 2(b).

    

    5. Miscellaneous.

    

    (a) The
      Company and the Trustee each acknowledge that the Trustee will follow the
      security procedures set forth below with respect to funds transferred from
      the
      Trust Account. Upon receipt of written instructions, the Trustee will confirm
      such instructions with an Authorized Individual at an Authorized Telephone
      Number listed on the attached Exhibit C. The Company and the Trustee will
      each restrict access to confidential information relating to such security
      procedures to authorized persons. Each party must notify the other party
      immediately if it has reason to believe unauthorized persons may have obtained
      access to such information, or of any change in its authorized personnel. In
      executing funds transfers, the Trustee will rely upon account numbers or other
      identifying numbers of a beneficiary, beneficiary's bank or intermediary bank,
      rather than names. The Trustee shall not be liable for any loss, liability
      or
      expense resulting from any error in an account number or other identifying
      number, provided it has accurately transmitted the numbers
      provided.

    

    (b) This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New York, without giving effect to conflicts of law
      principles that would result in the application of the substantive laws of
      another jurisdiction. It may be executed in several original or facsimile
      counterparts, each one of which shall constitute an original, and together
      shall
      constitute but one instrument.

    

    (c) This
      Agreement contains the entire agreement and understanding of the parties hereto
      with respect to the subject matter hereof. Except for Section 1(i) (which may
      not be amended under any circumstances), this Agreement or any provision here-of
      may only be changed, amended or modified by a writing signed by each of the
      parties hereto; provided, however, that no such change, amendment or
      modification may be made without the prior written consent of EBC. As to any
      claim, cross-claim or counterclaim in any way relating to this Agreement, each
      party waives the right to trial by jury.

    

    (d) The
      parties hereto consent to the jurisdiction and venue of any state or federal
      court located in the City of New York, Borough of Manhattan, for purposes of
      resolving any disputes hereunder.

    

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

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    if
      to the
      Trustee, to:

    

    Continental
      Stock Transfer 

    &
      Trust Company

    17
      Battery Place 

    New
      York,
      New York 10004

    Attn: Steven
      G.
      Nelson

    Fax
      No.:
      (212) 509-5150

    

    if
      to the
      Company, to:

     

    
      	 	 	 	
              China
                Discovery Acquisition Corp.

            

    

    2666
      East
      Bayshore Road, Suite B

    Palo
      Alto, California 94303

    Attn: Chief
      Executive Officer

    Fax
      No.:
(___)
      ___-____

    

    in
      either
      case with a copy to:

    

    EarlyBirdCapital,
      Inc. 

    275
      Madison Avenue, Suite 1203

    New
      York,
      New York 10016

    Attn: David
      M.
      Nussbaum

    Fax
      No.:
      (212) 269-3796

    

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

    

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

    

    (h) Each
      of
      the Company and the Trustee hereby acknowledge that EBC is a third party
      beneficiary of this Agreement.

    
       

      
         

      

      
        6

        
          

        

      

      
         

      

    

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

     

     

    
      	 	
              CONTINENTAL
                STOCK TRANSFER & TRUST COMPANY, as Trustee

              

              

              By:
                ____________________________

              Name:
                

              Title:
                

              

              

              

              CHINA
                DISCOVERY ACQUISITION CORP.

              

              

              By:
                ____________________________

              Name:
                

              Title:
                

            

    

    
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    [Letterhead
      of Company]

    

    [Insert
      date]

    

    Continental
      Stock Transfer 

    &
      Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    Attn:
      Steven Nelson

    

    
      	
            	Re:	
              Trust
                Account No.
                530-                        
                 Termination Letter

            

    

    

    Gentlemen:

    

    Pursuant
      to paragraph 1(i) of the Investment Management Trust Agreement between China
      Discovery Acquisition Corp. (“Company”) and Continental Stock Transfer &
Trust Company (“Trustee”), dated as of __________, 2007 (“Trust Agreement”),
      this is to advise you that the Company has entered into an agreement (“Business
      Agreement”) with __________________ (“Target Business”) to consummate a business
      combination with Target Business (“Business Combination”) on or about
[insert
      date].
      The
      Company shall notify you at least 48 hours in advance of the actual date of
      the
      consummation of the Business Combination (“Consummation Date”).

    

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

    

    On
      the
      Consummation Date (i) counsel for the Company shall deliver to you written
      notification that (a) the Business Combination has been consummated and (b)
      the
      provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado Statute
      have
      been met, and (ii) the Company shall deliver to you (a) [an affidavit] [a
      certificate] of __________________, which verifies the vote of the Company’s
      stockholders in connection with the Business Combination and (b) written
      instructions with respect to the trans-fer of the funds held in the Trust
      Account (“Instruction Letter”). You are hereby directed and authorized to
      transfer the funds held in the Trust Account immediately upon your receipt
      of
      the counsel's letter and the Instruction Letter, in accordance with the terms
      of
      the Instruction Letter. In the event that certain deposits held in the Trust
      Account may not be liquidated by the Consummation Date without penalty, you
      will
      notify the Company of the same and the Company shall direct you as to whether
      such funds should remain in the Trust Account and distributed after the
      Consummation Date to the Company. Upon the distribution of all the funds in
      the
      Trust Account pursuant to the terms hereof, the Trust Agreement shall be
      terminated.

    

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

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	 	
              Very
                truly yours,

              

              CHINA
                DISCOVERY ACQUISITION CORP.

              

              

              By:________________________________

              Li
                Wen Shi, Chairman of the Board

              

              

              By:________________________________

              Wing
                Yip, Secretary

            

    

     

    cc:
      EarlyBirdCapital, Inc.

    
       

      
         

      

      
        9

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    [Letterhead
      of Company]

    

    [Insert
      date]

     

    Continental
      Stock Transfer 

    &
      Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    Attn:
      

    

    
      	
            	Re:	
              Trust
                Account No.
                530-                   
                Termination Letter

            

    

    

    Gentlemen:

    

    Pursuant
      to paragraph 1(i) of the Investment Management Trust Agreement between China
      Discovery Acquisition Corp. (“Company”) and Continental Stock Transfer &
Trust Company (“Trustee”), dated as of ___________, 2007 (“Trust Agreement”),
this
      is
      to advise you that the Company has been unable to effect a Business Combination
      with a Target Company within the time frame specified in the Company’s
      Memorandum and Articles of Association, as described in the Company’s prospectus
      relating to its IPO.

    

    In
      accordance with the terms of the Trust Agree-ment, we hereby (a) certify to
      you
      that the provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado
      Statute have been met and (b) authorize you, to commence liquidation of the
      Trust Account as promptly as practicable to stockholders of record on the Last
      Date (as defined in the Trust Agreement). You will notify the Company in writing
      as to when all of the funds in the Trust Account will be available for immediate
      transfer (“Transfer Date”) in accordance with the terms of the Trust Agreement
      and the Memorandum and Articles of Association of the Company. You shall
      commence distribution of such funds in accordance with the terms of the Trust
      Agreement and the Memorandum and Articles of Association of the Company and
      you
      shall oversee the distribution of the funds. Upon the distribution of all the
      funds in the Trust Account, your obligations under the Trust Agreement shall
      be
      terminated.

     

     

    
      	 	
              Very
                truly yours,

              

              CHINA
                DISCOVERY ACQUISITION CORP.

              

              

              By:________________________________

              Li
                Wen Shi, Chairman of the Board

              

              

              By:________________________________

              Wing
                Yip, Secretary

            

    

    

    cc:
      EarlyBirdCapital, Inc.

    
       

      
         

      

      
        10

        
          

        

      

      
         

      

    

    EXHIBIT
      C

    

    

    

    

    
      	
              AUTHORIZED
                INDIVIDUAL(S)

            	
              AUTHORIZED

            
	
              FOR
                TELEPHONE CALL BACK

            	
              TELEPHONE
                NUMBER(S)

            

    

    

    Company:

    

    
      	
              China
                Discovery Acquisition Corp.

            	 
	
              2666
                East Bayshore Road, Suite B

            	 
	
              Palo
                Alto, California 94303

            	 
	
              Attn:
                Chief Executive Officer

            	
              (___)
                ___-____

            

    

    

    Trustee:

    

    
      	
              Continental
                Stock Transfer 

            	 
	
              &
                Trust Company

            	 
	
              17
                Battery Place

            	 
	
              New
                York, New York 10004

            	 
	
              Attn:
                Steven G. Nelson, Chairman

            	
              (212)
                845-3200

            

    

    

    

     

    
      
         

      

      
        11

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