Document:

NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
      SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
      OF
      COUNSEL REASONABLY SATISFACTORY TO THE ISSUER, IN A GENERALLY ACCEPTABLE FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO, AND IN ACCORDANCE WITH, RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES
      LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. THIS
      INSTRUMENT IS SUBJECT TO THE TERMS OF A SECURITIES PURCHASE AGREEMENT, DATED
      AS
      OF AUGUST 31, 2007, BY AND AMONG GOLDEN AUTUMN HOLDINGS INC. AND THE BUYERS
      LISTED THEREIN.

     

    GOLDEN
      AUTUMN HOLDINGS INC.

     

    Senior
      Secured Convertible Note

     

    
      	
              Issuance
                Date: September 4, 2007

            	
              Original
                Principal Amount: $310,000.00

            

    

    

    FOR
      VALUE RECEIVED,
      Golden
      Autumn Holdings Inc., a Nevada corporation (the "Company"),
      hereby promises to pay to the order of Strategic Alliance Fund II, L.P. or
      registered permitted assigns ("Holder")
      the
      amount set out above as the Original Principal Amount (as reduced pursuant
      to
      the terms hereof pursuant to redemption (or prepayment), conversion, or
      otherwise, the "Principal")
      when
      due, whether upon the Maturity Date (as defined below), acceleration, redemption
      (or prepayment) or otherwise (in each case in accordance with the terms hereof)
      and to pay interest ("Interest")
      on any
      outstanding Principal at the applicable Interest Rate, from September 4, 2007
      (the "Interest
      Commencement Date")
      until
      the same becomes due and payable, whether upon an Interest Date (as defined
      below), the Maturity Date, acceleration, conversion, redemption (or prepayment)
      or otherwise (in each case in accordance with the terms hereof). This Senior
      Secured Convertible Note (including all Senior Secured Convertible Notes issued
      in exchange, transfer or replacement hereof, as amended, restated, supplemented
      and/or modified from time to time in accordance with the provisions hereof,
      this
      "Note")
      is one
      of an issue of Senior Secured Convertible Notes issued pursuant to the
      Securities Purchase Agreement on the Closing Date (collectively, the
      "Notes"
      and
      such other Senior Secured Convertible Notes, the "Other Notes").
      Certain capitalized terms used herein are defined in Section 28. Capitalized
      terms used but not defined herein shall have the meanings ascribed to them
      in
      the Securities Purchase Agreement.

     

    (1) MATURITY;
      PREPAYMENT.
      On the
      Maturity Date, the Company shall pay to the Holder an amount in cash
      representing all outstanding Principal, accrued and unpaid Interest and accrued
      and unpaid Late Charges (as defined in Section 18(b) hereof) on such Principal
      and Interest. The "Maturity Date"
      shall
      be August 31, 2008. Provided an “Event of Default (as such term defined in
      Section 4(a)) does not then exist, the Company may prepay all or a portion
      of
      the outstanding principal amount of this Note upon ten days prior written notice
      to the Holder. In such event the Company shall pay to the Holder 125% of the
      principal amount being prepaid plus all accrued interest to the date of
      prepayment.

     

    
      
        
        

      

      
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    (2)
INTEREST;
      INTEREST RATE (a)
      Interest on this Note (i) shall accrue at the Interest Rate, commencing on
      the
      Interest Commencement Date, (ii) shall be computed on the
      basis of a 360-day year and (iii) shall be payable in cash on the Maturity
      Date
      or the date of any prepayment of principal as provided in Section 1. (If this
      Note is automatically converted into shares of common stock of the Company
      pursuant to Section 3 hereof, then all accrued interest, in addition to
      outstanding principal shall be so converted 

     

    Interest
      on this Note that is payable, and is punctually paid or duly provided for,
      shall
      be paid to the Person in whose name this Note is registered at the office or
      agency of the Company maintained for such purpose or at the office of a payment
      agent located in the state of New York engaged by the Company for the purpose
      of
      making payments under this Note and the Other Notes. Each payment of interest
      on
      this Note shall be made by check mailed to the address of the Holder specified
      in the register of Notes; provided,
      however,
      that,
      at the request of the Holder in writing to the Company, interest on the Holder's
      Note(s) shall be paid by wire transfer in immediately available funds in
      accordance with the written wire transfer instruction supplied by the Holder
      from time to time to the Company. 

    

    From
      and
      after the occurrence and during the continuance of an Event of Default, the
      Interest Rate shall be increased to five percent (5.0%) in excess of the
      Interest Rate otherwise payable at such time. For purposes of this Section
      2(c),
      the period of the Event of Default in respect of Section 4(a)(i) only, shall
      commence the first day after the grace periods specified therein expire and
      shall end on the day upon which the applicable Registration Statement becomes
      effective or again becomes available, as applicable.

     

    (3)
      CONVERSION
      OF NOTES.
      Simultaneously with the consummation of a Financing (as hereinafter defined),
      the entire principal amount, plus accrued interest, of this Note shall
      automatically convert into Shares of the Company) at a conversion rate which
      shall be equal to a 35% discount from the lowest price per Share or Share
      equivalent sold in the Financing to a person other than the Holder, but in
      no
      case a conversion rate of less than one Share for each $.50 of principal and
      interest converted; provided,
      however,
      in the
      event the Financing involves a security with a conversion price that is not
      fixed, then the Company shall issue to the Investor the same security, at a
      thirty-five percent (35%) discount to the price paid in the Financing. If the
      Financing is not completed by November 30, 2007, until the Financing is
      completed, the conversion discount will increase on the first day of each month
      by 5% per month up to a maximum conversion discount of fifty percent (50%)
      but
      in no case a conversion rate of less than one Share for each $.50 of principal
      and interest converted. For purposes of this Note, the term “Financing” means a
      financing in which the Company would issue equity securities of the Company
      for
      gross proceeds of not less than $5,100,000

     

    (4)
      RIGHTS
      UPON EVENT OF DEFAULT.

     

    (a) Event
      of Default.
      Each of
      the following events shall constitute an "Event
      of Default":

     

    
      
        
        

      

      
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    (i) the
      Company's failure to pay to the Holder any amount of Principal (including,
      without limitation, any redemption payments), Interest, Late Charges or other
      amounts when and as due under this Note or any other Transaction Document (as
      defined in the Securities Purchase Agreement) or any other agreement, document,
      certificate or other instrument delivered in connection with the transactions
      contemplated hereby and thereby to which the Holder is a party, except, in
      the
      case of a failure to pay Interest or Late Charges when and as due, in which
      case
      only if such failure continues for a period of at least two (2) Business
      Days;

     

    (ii) the
      Company's or any Subsidiary's failure to pay any principal of or interest or
      premium on any of its Indebtedness (excluding Indebtedness evidenced by any
      of
      the Notes), to the extent that the aggregate principal amount of all such
      Indebtedness exceeds $100,000, when due (whether by scheduled maturity, required
      prepayment, acceleration, demand or otherwise) and such failure shall continue
      after the applicable grace period, if any, specified in the agreement or
      instrument relating to such Indebtedness, or any other default under any
      agreement or instrument relating to any such Indebtedness, or any other event,
      shall occur and shall continue after the applicable grace period, if any,
      specified in such agreement or instrument, if the effect of such default or
      event is to accelerate, or to permit the acceleration of, the maturity of such
      Indebtedness; or any such Indebtedness shall be declared to be due and payable,
      or required to be prepaid (other than by a regularly scheduled required
      prepayment), redeemed, purchased or defeased or an offer to prepay, redeem,
      purchase or defease such Indebtedness shall be required to be made, in each
      case, prior to the stated maturity thereof;

     

    (iii) the
      Company or any of
      its
      Subsidiaries (A)
      shall
      institute any proceeding or voluntary case seeking to adjudicate it bankrupt
      or
      insolvent, or seeking dissolution, liquidation, winding up, reorganization,
      arrangement, adjustment, protection, relief or composition of it or its debts
      under any law relating to bankruptcy, insolvency, reorganization or relief
      of
      debtors, or seeking the entry of an order for relief or the appointment of
      a
      receiver, administrative receiver, administrator, trustee, custodian, liquidator
      or other similar official for any such Person or for any substantial part of
      its
      property, or any other Insolvency Proceeding, (B) shall be generally not paying
      its debts as such debts become due or shall admit in writing its inability
      to
      pay its debts generally or shall be unable to pay its debts, (C) shall make
      a
      general assignment for the benefit of creditors, or (D) shall take any action
      to
      authorize or effect any of the actions set forth above in this subsection (vii);
      

     

    (iv) any
      proceeding shall be instituted against the Company or any of its Subsidiaries
      seeking to adjudicate it bankrupt or insolvent, or seeking dissolution,
      liquidation, winding up, reorganization, arrangement, adjustment, protection,
      relief of debtors, or seeking the entry of an order for relief or the
      appointment of a receiver, administrative receiver, administrator, trustee,
      custodian, liquidator or other similar official for any such Person or for
      any
      substantial part of its property, or any other Insolvency Proceeding shall
      be
      instituted against the Company or any Subsidiary, and any such proceeding shall
      remain undismissed or unstayed for a period of thirty (30) days or any of the
      actions sought in such proceeding (including, without limitation, the entry
      of
      an order for relief against any such Person or the appointment of a receiver,
      administrative receiver, administrator, trustee, custodian, liquidator or other
      similar official for it or for any substantial part of its property) shall
      occur;

     

    (v) any
      provision of any Note, Security Document or any other security document entered
      into for the benefit of the Collateral Agent or any Holder, after delivery
      thereof pursuant the Securities Purchase Agreement or any Note shall at any
      time
      for any reason (other than pursuant to the express terms thereof) cease to
      be
      valid and binding on or enforceable against the Company, or the validity or
      enforceability thereof shall be contested by the Company, or a proceeding shall
      be commenced by the Company or any Guarantor or any Governmental Authority
      having jurisdiction over any of them, seeking to establish the invalidity or
      unenforceability thereof, or the Company shall deny in writing that it has
      any
      liability or obligation purported to be created under any Note or Security
      Document; 

     

    
      
        
        

      

      
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    (vi)
      any
      Security Document entered into for the benefit of the Collateral Agent (as
      defined in the Securities Purchase Agreement) or any Holder, after delivery
      thereof pursuant to the Securities Purchase Agreement or any Note, shall be
      invalid or illegal or for any reason fail or cease to create a valid and
      perfected and, except to the extent permitted by the terms hereof or thereof,
      first priority Lien (subject to Permitted Liens) in favor of the Collateral
      Agent for the benefit of Holders on any Collateral purported to be covered
      thereby or prior to the later of the consummation of the Financing or Reverse
      Merger the Company grants to any person an additional security interest in
      any
      collateral of the Company in which the Collateral Agent or the Holder shall
      have
      a security interest;

     

    (vii) the
      loss,
      suspension or revocation of, or failure to renew, any license or permit now
      held
      or hereafter acquired by the Company, if such license or permit is not replaced
      with a similar license or permit and, after giving effect to such replacement
      license or permit, such loss, suspension, revocation or failure to renew has
      or
      could reasonably be expected to have a Material Adverse Effect;

     

    (viii) a
      breach,
      default, event of default or termination shall occur under any Material Contract
      after giving effect to applicable grace periods, if any, contained in any such
      Material Contract that gives any third party the right to terminate any such
      Material Contract that could reasonably be expected to have a Material Adverse
      Effect which has not been cured;

     

    (ix) proceedings
      are instituted against the Company or any Subsidiary in which a judgment adverse
      to the Company or a Subsidiary in excess of $2,000,000 in the aggregate is
      reasonably expected by the Holder prior to the Maturity Date; 

     

    (xi)
      Any
      representation or warranty made by the Company or any Subsidiary herein (a)
      containing a materiality threshold, is incorrect or misleading when made or
      (b)
      in respect of any such representation or warranty which does not contain a
      materiality threshold, the same is materially misleading or materially incorrect
      when made or (B) the Company breaches any covenant or other material term or
      condition of any Transaction Document, except, in the case of a breach of a
      covenant, term or condition which is curable, only if such breach continues
      for
      a period of at least twenty (20) consecutive Business Days;

     

    (xii) any
      material breach or failure to comply with Section 13 of this Note which has
      not
      been cured; 

     

    (xiii) Reserved;
      

     

    (xiv) the
      Company is enjoined, restrained or in any way prevented by the order of any
      court or any Governmental Authority from conducting all or any material part
      of
      its business for more than ten (10) days provided that such curtailment could
      reasonably be expected to have a Material Adverse Effect; 

     

    (xv) any
      cessation of a substantial part of the business of the Company for a period
      which could reasonably be expected to have a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (b) Redemption
      Right.
      Upon
      the Company's obtaining knowledge of the occurrence of an Event of Default
      in
      respect of this Note or any Other Note, the Company shall, as soon as possible,
      but in any event, within three (3) Business Days thereafter deliver written
      notice thereof via facsimile and overnight courier (an "Event
      of Default Notice")
      to the
      Holder. At any time after the earlier of the Holder's receipt of such Event
      of
      Default Notice and the Holder's becoming aware of such an Event of Default
      in
      respect of this Note or any Other Note, the Holder may require the Company
      to
      redeem all or any portion of this Note by delivering written notice thereof
      (the
      "Event
      of Default Redemption Notice")
      to the
      Company, which Event of Default Redemption Notice shall indicate the portion
      of
      this Note the Holder is electing to redeem. Each portion of this Note subject
      to
      redemption by the Company pursuant to this Section 4(b) shall be redeemed as
      provided in Section 9(a) by the Company at a price equal to 150% of the
      outstanding principal amount of this Note plus all accrued interest (the
      "Event
      of Default Redemption Price").
      The
      Company agrees that in the event of the Company's redemption of any portion
      of
      the Note under this Section 4(b), the Holder's damages would be uncertain and
      difficult to estimate because of the parties' inability to predict future
      interest rates and the uncertainty of the availability of a suitable substitute
      investment opportunity for the Holder. Accordingly, any redemption premium
      due
      under this Section 4(b) is intended by the parties to be, and shall be deemed,
      a
      reasonable estimate of the Holder's actual loss of its investment opportunity
      and not as a penalty.

     

    (5)
      RIGHTS
      UPON FUNDAMENTAL TRANSACTION.
      Until
      none of the Buyers hold any Securities, the Company shall not enter into or
      be
      party to a Fundamental Transaction unless, in the case of a Fundamental
      Transaction of the type described in clause (ii), (iii), (iv), or (v) of the
      definition thereof if the Successor Entity in such Fundamental Transaction
      is a
      person other than the Company, (i) such Successor Entity assumes in writing
      all of the obligations of the Company under this Note and the other Transaction
      Documents in accordance with the provisions of this Section 5(a) pursuant to
      written agreements in form and substance reasonably satisfactory to the Required
      Holders including agreements to deliver to each holder of Notes in exchange
      for
      such Notes securities of the Successor Entity evidenced by a written instrument
      substantially similar in form and substance to the Notes, including, without
      limitation, having a principal amount and interest rate equal to the principal
      amounts then outstanding and the interest rates of the Notes held by such
      holder, having similar conversion rights as the Notes and having similar ranking
      to the Notes, and reasonably satisfactory to the Required Holders and
      (ii) such Successor Entity (or its Parent Entity) is a publicly traded
      corporation whose common stock is quoted on or listed for trading on an Eligible
      Market. Upon the occurrence of any Fundamental Transaction, such Successor
      Entity shall succeed to, and be substituted for (so that from and after the
      date
      of such Fundamental Transaction, the provisions of this Note referring to the
      "Company" shall refer instead to such Successor Entity), and may exercise every
      right and power of the Company and shall assume all of the obligations of the
      Company under this Note with the same effect as if such Successor Entity had
      been named as the Company herein. Upon consummation of the Fundamental
      Transaction, such Successor Entity shall deliver to the Holder confirmation
      that
      there shall be issued upon conversion or redemption of this Note at
      any
      time after the consummation of the Fundamental Transaction, in lieu of the
      Shares (or
      other
      securities, cash, assets or other property) issuable
      upon the conversion or redemption of the Notes prior to such Fundamental
      Transaction,
      such
      shares of the publicly traded common stock (or their equivalent) of the
      Successor Entity (including its Parent Entity), as adjusted in accordance with
      the provisions of this Note. The
      provisions of this Section shall apply similarly and equally to successive
      Fundamental Transactions and shall be applied without regard to any limitations
      on the conversion or redemption of this Note.

     

    
      
        
        

      

      
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    (6)
      RIGHTS
      UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS.

     

    (a)
      Purchase
      Rights.
      Other
      than in connection with issuances of Shares and/or Options to employees,
      directors, officers or consultants of the Company (“Exempted Issuances”), if at
      any time the Company grants, issues or sells any Options, Convertible Securities
      or rights to purchase stock, warrants, securities or other property pro rata
      to
      the record holders of any class of Shares (collectively, the "Purchase
      Rights"),
      then
      the Holder will be entitled to acquire, upon the terms applicable to such
      Purchase Rights, the aggregate Purchase Rights which the Holder could have
      acquired if the Holder had held the number of Shares acquirable upon complete
      conversion of this Note (without taking into account any limitations or
      restrictions on the convertibility of this Note) immediately before the date
      on
      which a record is taken for the grant, issuance or sale of such Purchase Rights,
      or, if no such record is taken, the date as of which the record holders of
      Shares are to be determined for the grant, issue or sale of such Purchase
      Rights.

    

    (b)
      Other
      Corporate Events.
      In
      addition to and not in substitution for any other rights hereunder, but without
      duplication of the consideration issuable pursuant to Section 5(a), prior to
      the
      consummation of any Fundamental Transaction pursuant to which holders of Shares
      are entitled to receive securities or other assets in respect of or in exchange
      for Shares (a "Corporate
      Event"),
      the
      Company shall make appropriate provision to insure that the Holder will
      thereafter have the right to receive upon a conversion of this Note, (i) in
      addition to the Shares receivable upon such conversion, such securities or
      other
      assets to which the Holder would have been entitled in respect of such Shares
      had such Shares been held by the Holder upon the consummation of such Corporate
      Event (without taking into account any limitations or restrictions on the
      convertibility of this Note) or (ii) in lieu of the Shares otherwise receivable
      upon such conversion, such securities or other assets received by the holders
      of
      Shares in connection with the consummation of such Corporate Event in such
      amounts as the Holder would have been entitled to receive had this Note
      initially been issued with conversion rights for the form of such consideration
      (as opposed to Shares) at a conversion rate for such consideration commensurate
      with the Conversion Rate. Provision made pursuant to the preceding sentence
      shall be in a form and substance satisfactory to the Required Holders. The
      provisions of this Section shall apply similarly and equally to successive
      Corporate Events and shall be applied without regard to any limitations on
      the
      conversion or redemption of this Note.

     

    (7)
      SECURITY.
      This
      Note and the Other Notes are secured to the extent and in the manner set forth
      in the Security Documents.

     

    (8)
      NONCIRCUMVENTION.
      The
      Company hereby covenants and agrees that the Company will not, by amendment
      of
      its Certificate of Incorporation, Bylaws or through any reorganization, transfer
      of assets, consolidation, merger, scheme of arrangement, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms of this Note, and will at all
      times in good faith carry out all of the provisions of this Note and take all
      action as may be required to protect the rights of the Holder of this Note.
      

     

    (9)
      HOLDER'S
      REDEMPTIONS.

     

    (a)
      Mechanics.
      The
      Company shall deliver the applicable Event of Default Redemption Price to the
      Holder within three (3) Business Days after the Company's receipt of the
      Holder's Event of Default Redemption Notice; provided that if the Event(s)
      of
      Default giving rise to the redemption right shall have been cured or waived
      on
      or before the third (3rd) Business Day after the Company's receipt of the
      Holder's Event of Default Redemption Notice, such redemption right shall
      terminate.

    

    
      
        
        

      

      
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    (b)
      Redemption
      by Other Holders.
      Upon
      the Company's receipt of notice from any of the holders of the Other Notes
      for
      redemption or repayment as a result of an event or occurrence substantially
      similar to the events or occurrences described in Section 4(b) (each, an
      "Other
      Redemption Notice"),
      the
      Company shall immediately, but no later than one (1) Business Day after its
      receipt thereof, forward to the Holder by facsimile a copy of such notice.
      If
      the Company receives a Redemption Notice and one or more Other Redemption
      Notices, during the seven (7) Business Day period beginning on and including
      the
      date which is three (3) Business Days prior to the Company's receipt of the
      Holder's Redemption Notice and ending on and including the date which is three
      (3) Business Days after the Company's receipt of the Holder's Redemption Notice
      and the Company is unable to redeem all principal, interest and other amounts
      designated in such Redemption Notice and such Other Redemption Notices received
      during such seven (7) Business Day period, then the Company shall redeem a
      pro
      rata amount from each holder of the Notes (including the Holder) based on the
      principal amount of the Notes submitted for redemption pursuant to such
      Redemption Notice and such Other Redemption Notices received by the Company
      during such seven Business Day period.

    

    (10)
      VOTING
      RIGHTS.
      The
      Holder shall have no voting rights as the holder of this Note, except as
      required by law. 

     

    (11)
      COVENANTS.
      

     

    (a)
      Rank.
      All
      payments due under this Note (i) shall rank (A) pari
      passu
      with all
      Other Notes, (B) senior to the Subordinated Indebtedness, all Indebtedness
      not
      constituting Permitted Indebtedness and all Permitted Indebtedness expressly
      designated as ranking junior to the Notes, and (C) pari
      passu
      with all
      other Permitted Indebtedness and (ii) shall be secured by a first priority
      security interest in substantially all of the Company’s intellectual property.
      Notwithstanding the foregoing, if Company shall have received notice of the
      existence of any Lien, the existence or priority of which is in violation of
      the
      first sentence of this Section 11(a), Company shall have ten (10) days after
      the
      receipt of such notice to remove such Lien (or obtain the agreement of the
      holder of such Lien that such Lien ranks in priority in accordance with the
      first sentence of this Section 11(a)).

    

    (b)
      Incurrence
      of Indebtedness.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall not, and the
      Company shall not permit any of its Subsidiaries to, directly or indirectly,
      incur or guarantee, assume or suffer to exist any Indebtedness, other than
      (i)
      the Indebtedness evidenced by this Note and the Other Notes and (ii) Permitted
      Indebtedness; provided, that prior to the incurrence of such Permitted
      Indebtedness, the Company or such Subsidiary, as applicable, shall deliver
      to
      the Collateral Agent a certificate setting out the basis of the calculation
      of
      the amount of Permitted Indebtedness, together with the opinion of an
      independent expert as to any production capacity assumptions used in such
      calculation.

     

    
      
        
        

      

      
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    (c)
      Existence
      of Liens.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall not, and the
      Company shall not permit any of its Subsidiaries to, create,
      incur, assume or suffer to exist any Lien upon or in respect of any of its
      intellectual property, whether now owned or hereafter acquired; file or suffer
      to exist under the Uniform Commercial Code or any similar law or statute of
      any
      jurisdiction, a financing statement (or the equivalent thereof) that names
      it or
      any of its Subsidiaries as debtor; sign or suffer to exist any security
      agreement authorizing any secured party thereunder to file such financing
      statement (or the equivalent thereof); sell any of its property or assets
      subject to an understanding or agreement, contingent or otherwise, to repurchase
      such property or assets (including sales of accounts) with recourse to it or
      any
      of its Subsidiaries or assign or otherwise transfer, or permit any of its
      Subsidiaries to assign or otherwise transfer, any account or other right to
      receive income; other than, as to all of the above, Permitted Liens.
      Notwithstanding the foregoing, if Company shall have received notice of the
      existence of any Lien, the existence of which is in violation of the first
      sentence of this Section 11(c), Company shall have ten (10) days after the
      receipt of such notice to effect the removal of such Lien.

    

    (d)
      Restricted
      Payments.
      The
      Company shall not, and the Company shall not permit any of its Subsidiaries
      to,
      directly or indirectly, redeem, defease, repurchase, repay or make any payments
      in respect of, by the payment of cash or cash equivalents (in whole or in part,
      whether by way of open market purchases, tender offers, private transactions
      or
      otherwise), all or any portion of any Indebtedness (other than Indebtedness
      evidenced by the Other Notes or Permitted Indebtedness, the payment of which
      shall not be restricted by the provisions of this Note, the Security Documents,
      the Warrant, the Securities Purchase Agreement or the Registration Rights
      Agreement), whether by way of payment in respect of principal of (or premium,
      if
      any) or interest on such Indebtedness, if at the time such payment is due or
      is
      otherwise made, or, after giving effect to such payment, an event constituting,
      or that with the passage of time and without being cured would constitute,
      an
      Event of Default has occurred or would occur and is, or would be, continuing;
      provided that notwithstanding the foregoing, no principal (or any portion
      thereof) of any Subordinated Indebtedness may be paid (whether upon maturity,
      redemption, acceleration or otherwise) so long as this Note is outstanding
      and
      for at least 91 days thereafter.

    

    (e)
      Restriction
      on Redemption and Cash Dividends.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall not, nor permit
      any of its Subsidiaries to, directly or indirectly, 

    

    (i) Declare
      or pay any dividend or other distribution, or permit any Subsidiary to declare
      or pay any dividend or other distribution, in each case directly or indirectly,
      on account of any equity of the Company or any Subsidiary, except: 

     

    (A) any
      Subsidiary of the Company may pay dividends or make other distributions to
      the
      Company or any Subsidiary;

     

    (B) the
      Company or any Subsidiary may pay dividends in the form of common stock or
      preference stock otherwise permitted to be issued hereunder (but in no event
      in
      the form of preference stock requiring redeemption prior to the Maturity Date);
      and

     

    (C) the
      Company or any Subsidiary may pay cash dividends on any preference stock
      included within the limits for Subordinated Indebtedness in the definition
      of
      Permitted Indebtedness below.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (ii) Make
      any
      repurchase, redemption (other than redemption of the Notes in accordance with
      the terms hereof), retirement, defeasance, sinking fund or similar payment,
      purchase or other acquisition for value, direct or indirect, of any equity
      of
      the Company or any direct or indirect parent of the Company, now or hereafter
      outstanding or make any payment to retire, or to obtain the surrender of, any
      outstanding warrants, options or other rights for the purchase or acquisition
      of
      shares of any class of equity of the Company, now or hereafter outstanding,
      

     

    (iii) Return
      any equity to any shareholders or other equity holders of the Company or any
      of
      its Subsidiaries, or make any other distribution of property, assets, equity,
      warrants, rights, options, obligations or securities thereto as such (other
      than
      as permitted hereunder or, in the case of such distribution of property or
      assets, to the extent not otherwise prohibited hereunder); 

     

    (iv) Pay
      any
      management fees or any other fees or expenses (including the reimbursement
      thereof by the Company) pursuant to any management, consulting or other services
      agreement to any of the shareholders or other equity holders of the Company;
      or

     

    (v) Directly
      or indirectly make or commit to make any optional prepayment of, or otherwise
      repurchase any Indebtedness that is subordinated in right of payment to the
      Notes, including without limitation, any Subordinated Indebtedness.

     

    (f)
      Preservation
      of Existence, Etc.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall maintain and
      preserve, and cause each of its Subsidiaries to maintain and preserve, its
      existence, rights and privileges, and become or remain, and cause each of its
      Subsidiaries to become or remain, duly qualified and in good standing in each
      jurisdiction in which the character of the properties owned or leased by it
      or
      in which the transaction of its business makes such qualification necessary,
      where the failure to qualify or be in good standing could reasonably be expected
      to have a Material Adverse Effect. Notwithstanding anything to the contrary
      set
      forth in this Note, without the consent of any Holder, a Subsidiary may be
      dissolved by merger into the Company, or dissolved; provided that all assets
      thereof shall theretofore have been transferred to the Company. 

    

    (g)
      Keeping
      of Records and Books of Account.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall keep, and cause
      each of its Subsidiaries to keep, adequate records and books of account, with
      complete entries made to permit the preparation of financial statements in
      accordance with GAAP.

    

    (h)
      Type
      of Business.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall not, and shall
      not permit any of its Subsidiaries to, engage in any business, other than the
      businesses of the Company and/or such Subsidiary on the Closing Date and any
      business reasonably related, similar, ancillary or complementary to the business
      in which the Company or the Subsidiaries of the Company are engaged on the
      Closing Date;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (i)
      Loans,
      Advances and Investments.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall not, and shall
      not permit any of its Subsidiaries to, make, directly or indirectly, any loans
      or advance money or property to any person, or invest in (by capital
      contribution, dividend or otherwise) or purchase or repurchase the Equity
      Interest or Indebtedness or all or a substantial part of the assets or property
      of any person, or form or acquire any Subsidiaries, or agree to do any of the
      foregoing, or permit any Subsidiary to do any of the foregoing,
      except:

     

    (vi) any
      investment in cash or Cash Equivalents; and

     

    (vii) dividends,
      redemptions, repurchases and other distributions permitted
      hereunder.

     

    (j)
      Transactions
      with Affiliates.
      Except
      for Exempted Issuances, until this Note has been converted, redeemed or
      otherwise satisfied in accordance with its terms (other than in respect of
      contingent indemnification obligations in respect of which no claim has been
      asserted), the Company shall not, and shall not permit any of its Subsidiaries
      to, enter into, renew, extend or be a party to, any transaction or series of
      related transactions (including, without limitation, the purchase, sale, lease,
      transfer or exchange of property or assets of any kind or the rendering of
      services of any kind) with any Affiliate, except to the extent necessary or
      desirable for the prudent operation of its business and for fair consideration
      and on terms no less favorable to it than would be obtainable in a comparable
      arm's length transaction with a Person that is not an Affiliate thereof;
      provided that, (A) if each party to such transaction is the Company, then the
      consideration and terms may be less favorable to one of them to the extent
      it is
      more favorable to the other, provided that such other entity is Solvent (as
      defined in the Securities Purchase Agreement) at the time of the transaction
      or
      (B) if a party to such transaction is the Company and the other is a Subsidiary
      or Affiliate, the consideration and terms may be less favorable to such
      Subsidiary or Affiliate.

    

    (k)
      Environmental.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall not, and shall
      not permit any of its Subsidiaries to, permit the use, handling, generation,
      storage, treatment, release or disposal of Hazardous Materials (as defined
      in
      the Securities Purchase Agreement) at any property owned or leased by it or
      any
      of its Subsidiaries, except in compliance with Environmental Laws (as defined
      in
      the Securities Purchase Agreement), so long as such use, handling, generation,
      storage, treatment, release or disposal of Hazardous Materials could not
      reasonably be expected to result in Material Adverse Effect.

    

    (l)
      Compliance
      with Laws.
      Until
      this Note has been converted, redeemed or otherwise satisfied in accordance
      with
      its terms (other than in respect of contingent indemnification obligations
      in
      respect of which no claim has been asserted), the Company shall comply, and
      cause each of its Subsidiaries to comply, with all applicable laws, rules,
      regulations, judgments and orders (including, without limitation, all
      Environmental Laws) in each case material to the conduct of its business and
      operations, except where the failure to so comply could not reasonably be
      expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (12)
      TRANSFER.
      This
      Note may be offered, sold, assigned or transferred by the Holder without the
      consent of the Company, provided that Holder and/or assignee give Company
      written notice of such assignment within ten (10) Business Days after the
      consummation of such assignment.

     

    (13)
      REISSUANCE OF THIS NOTE.

     

    (a)
      Transfer.
      If this
      Note is to be transferred, the Holder shall surrender this Note to the Company,
      whereupon the Company will forthwith issue and deliver upon the order of the
      Holder a new Note (in accordance with Section 13(d)), registered as the Holder
      may request, representing the outstanding Principal being transferred by the
      Holder and, if less then the entire outstanding Principal is being transferred,
      a new Note (in accordance with Section 13(d)) to the Holder representing the
      outstanding Principal not being transferred. 

    

    (b)
      Lost,
      Stolen or Mutilated Note.
      Upon
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Note, and, in the case of loss,
      theft or destruction, of any indemnification undertaking by the Holder to the
      Company in customary form and, in the case of mutilation, upon surrender and
      cancellation of this Note, the Company shall execute and deliver to the Holder
      a
      new Note (in accordance with Section 13(d)) representing the outstanding
      Principal.

    

    (c)
      Note
      Exchangeable for Different Denominations.
      This
      Note is exchangeable, upon the surrender hereof by the Holder at the principal
      office of the Company, for a new Note or Notes (in accordance with Section
      13(d)
      and in principal amounts of at least $1,000) representing in the aggregate
      the
      outstanding Principal of this Note, and each such new Note will represent such
      portion of such outstanding Principal as is designated by the Holder at the
      time
      of such surrender.

    

    (d)
      Issuance
      of New Notes.
      Whenever the Company is required to issue a new Note pursuant to the terms
      of
      this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall
      represent, as indicated on the face of such new Note, the Principal remaining
      outstanding (or in the case of a new Note being issued pursuant to Section
      13(a)
      or Section 13(c), the principal designated by the Holder which, when added
      to
      the principal represented by the other new Notes issued in connection with
      such
      issuance, does not exceed the Principal remaining outstanding under this Note
      immediately prior to such issuance of new Notes), (iii) shall have an issuance
      date, as indicated on the face of such new Note, which is the same as the
      Issuance Date of this Note, (iv) shall have the same rights and conditions
      as
      this Note, and (v) shall represent accrued and unpaid Interest and Late Charges
      on the Principal and Interest of this Note, if any, from the Interest
      Commencement Date.

    

    (14)
      REMEDIES,
      CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE
      RELIEF.
      The
      remedies provided in this Note shall be cumulative and in addition to all other
      remedies available under this Note and any of the other Transaction Documents
      at
      law or in equity (including a decree of specific performance and/or other
      injunctive relief), and nothing herein shall limit the Holder's right to pursue
      actual and consequential damages for any failure by the Company to comply with
      the terms of this Note. Amounts set forth or provided for herein in respect
      of
      payments, conversion and the like (and the computation thereof) shall be the
      amounts to be received by the Holder and shall not, except as expressly provided
      herein, be subject to any other obligation of the Company (or the performance
      thereof). The Company acknowledges that a breach by it of its obligations
      hereunder will cause irreparable harm to the Holder and that the remedy at
      law
      for any such breach may be inadequate. The Company therefore agrees that, in
      the
      event of any such breach or threatened breach, the Holder shall be entitled,
      in
      addition to all other available remedies, to an injunction restraining any
      breach, without the necessity of showing economic loss and without any bond
      or
      other security being required.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (15)
      PAYMENT
      OF COLLECTION, ENFORCEMENT AND OTHER COSTS.
      If (a)
      this Note is placed in the hands of an attorney for collection or enforcement
      or
      is collected or enforced through any legal proceeding or the Holder otherwise
      takes action to collect amounts due under this Note or to enforce the provisions
      of this Note or (b) there occurs any bankruptcy, reorganization, receivership
      of
      the Company or other proceedings affecting Company creditors' rights and
      involving a claim under this Note, then the Company shall pay the reasonable
      costs incurred by the Holder for such collection, enforcement or action or
      in
      connection with such bankruptcy, reorganization, receivership or other
      proceeding, including, but not limited to, reasonable attorneys' and financial
      advisory fees and disbursements. 

     

    (16)
      CONSTRUCTION;
      HEADINGS.
      This
      Note shall be deemed to be jointly drafted by the Company and the Holder and
      shall not be construed against any person as the drafter hereof. The headings
      of
      this Note are for convenience of reference and shall not form part of, or affect
      the interpretation of, this Note.

     

    (17)
      FAILURE
      OR INDULGENCE NOT WAIVER.
      No
      failure or delay on the part of the Holder in the exercise of any power, right
      or privilege hereunder shall operate as a waiver thereof, nor shall any single
      or partial exercise of any such power, right or privilege preclude other or
      further exercise thereof or of any other right, power or privilege.

     

    (18)
      NOTICES;
      PAYMENTS.

     

    (a)
      Notices.
      Whenever notice is required to be given under this Note, unless otherwise
      provided herein, such notice shall be given in accordance with Section 9(f)
      of
      the Securities Purchase Agreement. 

    

    (b)
      Payments.
      Whenever any payment of cash is to be made by the Company to any Person pursuant
      to this Note, such payment shall be made in lawful money of the United States
      of
      America by a check drawn on the account of the Company or any payment agent
      located in the state of New York engaged by the Company for purposes of making
      payments under this Note and the Other Notes and sent via overnight courier
      service to such Person at such address as previously provided to the Company
      in
      writing (which address, in the case of each of the Purchasers, shall initially
      be as set forth on the Schedule of Buyers attached to the Securities Purchase
      Agreement); provided that the Holder of Note(s) may elect to receive a payment
      of cash via wire transfer of immediately available funds by providing the
      Company with prior written notice setting out such request and the Holder's
      wire
      transfer instructions. Whenever any amount expressed to be due by the terms
      of
      this Note is due on any day which is not a Business Day, the same shall instead
      be due on the next succeeding day which is a Business Day and, in the case
      of
      any Interest Date which is not the date on which this Note is paid in full,
      the
      extension of the due date thereof shall not be taken into account for purposes
      of determining the amount of Interest due on such date. Any amount of Principal
      or other amounts due under the Transaction Documents, other than Interest,
      which
      is not paid when due shall result in a late charge being incurred and payable
      by
      the Company in an amount equal to interest on such amount at the rate of five
      percent (5.0%) per annum from the date such amount was due until the same is
      paid in full ("Late
      Charge").

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (19)
      CANCELLATION.
      After
      all Principal, accrued Interest and other amounts at any time owed on this
      Note
      have been paid in full (other than contingent indemnification obligations in
      respect of which no claim has been asserted) or all remaining amounts
      outstanding hereunder are converted to Shares, this Note shall automatically
      be
      deemed canceled, shall be surrendered to the Company for cancellation and shall
      not be reissued.

     

    (20)
      WAIVER
      OF NOTICE.
      Except
      as otherwise expressly set forth herein, to the extent permitted by law, the
      Company hereby waives demand, notice, protest and all other demands and notices
      in connection with the delivery, acceptance, performance, default or enforcement
      of this Note and the Securities Purchase Agreement.

     

    (21)
      GOVERNING
      LAW; JURISDICTION;
      SEVERABILITY; JURY TRIAL.
      This
      Note shall be construed and enforced in accordance with, and all questions
      concerning the construction, validity, interpretation and performance of this
      Note shall be governed by, the internal laws of the State of New York, without
      giving effect to any choice of law or conflict of law provision or rule (whether
      of the State of New York or any other jurisdictions) that would cause the
      application of the laws of any jurisdictions other than the State of New York.
      The Company hereby irrevocably submits to the exclusive jurisdiction of the
      state and federal courts sitting in The City of New York, Borough of Manhattan,
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. In the event that any provision of this Note is invalid or
      unenforceable under any applicable statute or rule of law, then such provision
      shall be deemed inoperative to the extent that it may conflict therewith and
      shall be deemed modified to conform with such statute or rule of law. Any such
      provision which may prove invalid or unenforceable under any law shall not
      affect the validity or enforceability of any other provision of this Note.
      Nothing contained herein shall be deemed or operate to preclude the Holder
      from
      bringing suit or taking other legal action against the Company in any other
      jurisdiction to collect on the Company's obligations to the Holder, to realize
      on any collateral or any other security for such obligations, or to enforce
      a
      judgment or other court ruling in favor of the Holder. THE
      COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED
      HEREBY.

     

    (22)
      CERTAIN
      DEFINITIONS.
      For
      purposes of this Note, the following terms shall have the following
      meanings:

     

    (a)
      "Business
      Day"
      means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      The City of New York are authorized or required by law to remain
      closed.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (b)
      "Cash
      Equivalents"
      means
      (i) securities issued or directly and fully guaranteed or insured by the United
      States or any agency or instrumentality thereof (provided that the full faith
      and credit of the United States is pledged in support thereof) having maturities
      of not more than one year from the date of acquisition, (ii) time deposits
      and
      certificates of deposit of any commercial bank, or which is the principal
      banking subsidiary of a bank holding company organized under the laws of the
      United States, and any State thereof, the District of Columbia or any foreign
      jurisdiction, having capital, surplus and undivided profits aggregating in
      excess of $500,000,000, with maturities of not more than one year from the
      date
      of acquisition by such Person, (iii) repurchase obligations with a term of
      not
      more than ninety (90) days for underlying securities of the types described
      in
      clause (i) above entered into with any bank meeting the qualifications specified
      in clause (ii) above, (iv) commercial paper issued by any Person incorporated
      in
      the United States rated at least A-1 or the equivalent thereof by Standard
&
Poors Rating Services or at least P-1 or the equivalent there of by Moody's
      Investor Service, Inc. and in each case maturing not more than one year after
      the date of acquisition by such Person, (v) investments in money market funds
      substantially all of whose assets are comprised of securities of the types
      described in clauses (i) through (iv) above, or (vi) with respect to investments
      denominated in the currency of the Federative Republic of Brazil, other
      investments considered as “cash equivalents” under GAAP.

    

    (c)
      "Calendar
      Quarter"
      means
      each of: the period beginning on and including January 1 and ending on and
      including March 31; the period beginning on and including April 1 and ending
      on
      and including June 30; the period beginning on and including July 1 and ending
      on and including September 30; and the period beginning on and including October
      1 and ending on and including December 31.

    

    (d)
      "Capitalized
      Lease"
      means,
      in respect of any Person, any lease of real or personal property by such Person
      as lessee which is (a) required under GAAP to be capitalized on the balance
      sheet of such Person or (b) a transaction of a type commonly known as a
      "synthetic lease" (i.e., a lease transaction that is treated as an operating
      lease for accounting purposes but in respect of which payments of rent are
      intended to be treated as payments of principal and interest on a loan for
      federal income tax purposes).

    

    (e)
      "Capitalized
      Lease Obligations"
      means,
      in respect of any Person, obligations of such Person and its Subsidiaries under
      Capitalized Leases, and, for purposes hereof, the amount of any such obligation
      shall be the capitalized amount thereof determined in accordance with
      GAAP.

    

    (f)
      "Closing
      Date"
      shall
      have the meaning set forth in the Securities Purchase Agreement, which date
      is
      the date the Company initially issued Notes pursuant to the terms of the
      Securities Purchase Agreement.

    

    (g)
      "Contingent
      Obligation"
      means,
      in respect of any Person, any obligation of such Person guaranteeing or intended
      to guarantee any Indebtedness, leases, dividends or other obligations ("primary
      obligations") of any other Person (the "primary obligor") in any manner, whether
      directly or indirectly, including, without limitation, (i) the direct or
      indirect guaranty, endorsement (other than for collection or deposit in the
      ordinary course of business), co-making, discounting with recourse or sale
      with
      recourse by such Person of the obligation of a primary obligor, (ii) the
      obligation to make take-or-pay or similar payments, if required, regardless
      of
      nonperformance by any other party or parties to an agreement, (iii) any
      obligation of such Person, whether or not contingent, (w) to purchase any such
      primary obligation or any property constituting direct or indirect security
      therefor, (x) to advance or supply funds (A) for the purchase or payment of
      any
      such primary obligation or (B) to maintain working capital or equity capital
      of
      the primary obligor or otherwise to maintain the net worth or solvency of the
      primary obligor, (y) to purchase property, assets, securities or services
      primarily for the purpose of assuring the owner of any such primary obligation
      of the ability of the primary obligor to make payment of such primary obligation
      or (z) otherwise to assure or hold harmless the holder of such primary
      obligation against loss in respect thereof; provided that, the term "Contingent
      Obligation" shall not include any product warranties extended in the ordinary
      course of business. The amount of any Contingent Obligation shall be deemed
      to
      be an amount equal to the stated or determinable amount of the primary
      obligation in respect of which such Contingent Obligation is made (or, if less,
      the maximum amount of such primary obligation for which such Person may be
      liable pursuant to the terms of the instrument evidencing such Contingent
      Obligation) or, if not stated or determinable, the maximum reasonably
      anticipated liability with respect thereto (assuming such Person is required
      to
      perform thereunder), as determined by such Person in good faith. 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (h)
      "Convertible
      Securities"
      means
      any stock or securities (other than Options) directly or indirectly convertible
      into or exercisable or exchangeable for Shares.

    

    (i)
      "Default"
      means
      any event that with notice or lapse of time, or both, would give rise to an
      Event of Default.

    

    (j)
      "Eligible
      Market"
      means
      the OTC Bulletin Board, The New York Stock Exchange, Inc., the American Stock
      Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market or The
      NASDAQ Capital Market.

    

    (k)
      "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended, and any
      successor statute of similar import, and regulations thereunder, in each case,
      as in effect from time to time. References to sections of ERISA shall be
      construed also to refer to any successor sections.

    

    (l)
      "ERISA
      Affiliate"
      means
      (a) any Person subject to ERISA whose employees are treated as employed by
      the
      same employer as the employees of the Company or any of its Subsidiaries under
      Internal Revenue Code Section 414(b), (b) any trade or business subject to
      ERISA
      whose employees are treated as employed by the same employer as the employees
      of
      the Company or any of its Subsidiaries under Internal Revenue Code Section
      414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of
      the
      Internal Revenue Code, any organization subject to ERISA that is a member of
      an
      affiliated service group of which the Company or any of its Subsidiaries is
      a
      member under Internal Revenue Code Section 414(m), or (d) solely for purposes
      of
      Section 302 of ERISA and Section 412 of the Internal Revenue Code, any Person
      subject to ERISA that is a party to an arrangement with the Company or any
      of
      its Subsidiaries and whose employees are aggregated with the employees of the
      Company or any of its Subsidiaries under Internal Revenue Code Section
      414(o).

    

    (m)
      "Fiscal
      Quarter" means
      each of the fiscal quarters adopted by the Company for financial reporting
      purposes that correspond to the Company's Fiscal
      Year,
      or such
      other fiscal quarter adopted by the Company for financial reporting purposes
      in
      accordance with GAAP.

    

    (n)
      "Fiscal
      Year"
      means
      each of the fiscal years that ends on December 31, or such other fiscal year
      adopted by the Company for financial reporting purposes in accordance with
      GAAP.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (o)
      "Fundamental
      Transaction"
      means
      that the Company shall, directly or indirectly, in one or more related
      transactions, after the date hereof (i) be dissolved or liquidated or be the
      subject of a plan of dissolution or liquidation adopted by its stockholders;
      (ii) consolidate or merge with or into (whether or not the Company is the
      surviving corporation) another Person or Persons; (iii) sell, assign, transfer,
      convey or otherwise dispose of all or substantially all of the properties or
      assets of the Company to another Person; (iv) allow another Person to make
      a
      purchase, tender or exchange offer that is accepted by the holders of more
      than
      the 50% of the outstanding shares of Voting Stock (not including any shares
      of
      Voting Stock held by the Person or Persons making or party to, or associated
      or
      affiliated with the Persons making or party to, such purchase, tender or
      exchange offer); (v) consummate a stock purchase agreement or other business
      combination (including, without limitation, a reorganization, recapitalization,
      spin-off or scheme of arrangement) with another Person whereby such other Person
      acquires more than 50% of the outstanding shares of Voting Stock (not including
      any shares of Voting Stock held by the other Person or other Persons making
      or
      party to, or associated or affiliated with the other Persons making or party
      to,
      such stock purchase agreement or other business combination); (vi) any "person"
      or "group" (as these terms are used for purposes of Sections 13(d) and 14(d)
      of
      the Exchange Act) is or shall become the "beneficial owner" (as defined in
      Rule
      13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
      ordinary voting power represented by issued and outstanding Shares;
      (vii)Reserved ; or (viii) fails to own, directly or indirectly, one hundred
      (100%) percent of the voting power (directly or indirectly) of the total
      outstanding voting stock of each of the Subsidiaries other than (A) pursuant
      to
      a sale of the voting stock of any Subsidiary permitted hereunder, (B) pursuant
      to a transfer of such voting stock to a Guarantor permitted herein, or (C)
      in
      the case of a Subsidiary is acquired after the date hereof pursuant to a
      Permitted Acquisition where less than one hundred (100%) percent of the voting
      power of the total outstanding voting stock of such Subsidiary is acquired.
      Notwithstanding anything to the contrary, the Financing will not be considered
      to be a Fundamental Transaction.

    

    (p)
      "GAAP"
      means
      the generally accepted accounting principles of the United States of America,
      consistently applied.

    

    (q)
      "Governmental
      Authority"
      means
      any nation or government, any foreign, Federal, State, city, town, municipality,
      county, local or other political subdivision thereof or thereto and any
      department, commission, board, bureau, instrumentality, agency or other entity
      exercising executive, legislative, judicial, taxing, regulatory or
      administrative powers or functions of or pertaining to government.

    

    (r)
      "Hedging
      Agreement"
      means
      any interest rate, foreign currency, commodity or equity swap, collar, cap,
      floor or forward rate agreement, or other agreement or arrangement designed
      to
      protect against fluctuations in interest rates or currency, commodity (other
      than in the normal course of business) or equity values (including, without
      limitation, any option in respect of any of the foregoing and any combination
      of
      the foregoing agreements or arrangements), and any confirmation executed in
      connection with any such agreement or arrangement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (s)
      "Indebtedness"
      means,
      in respect of any Person, without duplication, (i) all indebtedness of such
      Person for borrowed money; (ii) all obligations of such Person for the deferred
      purchase price of property or services (provided that neither trade payables
      or
      other accounts payable incurred in the ordinary course of such Person's business
      and not outstanding for more than ninety (90) days after such payable was due
      under its original terms nor such trade payables, if outstanding longer, that
      are being contested or disputed by such Person in good faith in the ordinary
      course of business shall be deemed to constitute Indebtedness) and including
      any
      earn-outs or similar arrangements in connection with any acquisition of
      businesses by such Person, whether contingent or otherwise subject to any
      conditions or limitations; (iii) all obligations of such Person evidenced by
      bonds, debentures, notes or other similar instruments or upon which interest
      payments are customarily made; (iv) all reimbursement, payment or other
      obligations and liabilities of such Person created or arising under any
      conditional sales or other title retention agreement in respect of property
      used
      and/or acquired by such Person, even though the rights and remedies of the
      lessor, seller and/or lender thereunder may be limited to repossession or sale
      of such property and all obligations and liabilities arising in connection
      with
      factoring arrangements or other arrangements in respect of the sale of
      receivables; (v) that portion of Capitalized Lease Obligations of such Person
      that is (or is required to be) classified as a liability on its balance sheet
      in
      conformity with GAAP; (vi) all obligations and liabilities, contingent or
      otherwise, of such Person, in respect of letters of credit, acceptances and
      similar facilities; (vii) all net obligations and liabilities, of such Person
      under Hedging Agreements; (viii) all Contingent Obligations; (ix) liabilities
      incurred under Title IV of ERISA in respect of any plan (other than a
      Multiemployer Plan) covered by Title IV of ERISA and maintained for employees
      of
      such Person or any of its ERISA Affiliates; (x) withdrawal liability incurred
      under ERISA by such Person or any of its ERISA Affiliates in respect of any
      Multiemployer Plan; and (xi) all obligations referred to in clauses (i) through
      (x) of this definition of another Person secured by (or for which the holder
      of
      such Indebtedness has an existing right, contingent or otherwise, to be secured
      by) a Lien upon property owned by such Person, even though such Person has
      not
      assumed or become liable for the payment of such Indebtedness. The Indebtedness
      of any Person shall include the Indebtedness of any partnership of or joint
      venture in which such Person is a general partner or a joint venturer to the
      extent such Person is liable therefor as a result of such Person's ownership
      interest in such entity, except to the extent the terms of such Indebtedness
      expressly provide that such Person is not liable therefor. No Management
      Incentive Plan shall be "Indebtedness"
      for
      purposes hereof. For purpose hereof “Management
      Incentive Plan”
means
      any management incentive plan adopted or to be adopted by the Board of Directors
      or the Compensation Committee of the Board of Directors, pursuant to which
      each
      of the identified officers therein will receive an annual performance-based
      bonus for each fiscal year within the employment period set forth in such
      officer’s employment agreement with such bonus being tied to achievement of the
      annual bonus targets to be set by the Board of Directors or the Compensation
      Committee of the Board of Directors. 

    

    (t)
      "Insolvency
      Proceeding"
      means
      (a) any proceeding by or against any Person seeking to adjudicate it a bankrupt
      or insolvent, or seeking dissolution, liquidation, winding up, reorganization,
      administration, arrangement, adjustment, protection, relief or composition
      of it
      or its debts under any provision of the Bankruptcy Code, or seeking the entry
      of
      an order for relief or the appointment of a receiver, administrative receiver,
      administrator, manager, examiner, trustee, custodian, liquidator, sequestrator
      or other similar official for any such Person or for any substantial part of
      its
      property under any provision of the Bankruptcy Code, or (b) the appointment
      of a
      receiver, administrative receiver, administrator, manager, examiner, trustee,
      liquidator, custodian, sequestrator or similar official for such Person or
      a
      substantial part of its assets shall occur under any provisions of the
      Bankruptcy Code.

    

    (u)
      [intentionally left blank]

     

    (v)
      "Interest Rate"
      means
      8% per annum. 

    

    (w)
      "Lien"
      means
      any mortgage, deed of trust, deed to secure debt or similar instrument, pledge,
      lien (statutory or otherwise), security interest, charge, attachment, assignment
      or other encumbrance or security or preferential arrangement of any nature,
      including, without limitation, any conditional sale or title retention
      arrangement, any Capitalized Lease and any assignment, deposit arrangement
      or
      financing lease intended as, or having the effect of, security.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (x)
      “Issuance
      Date”
means
      the date hereof. 

    

    (y)
      "Material
      Contract"
      means
      (i) each contract or agreement to which the Company or any of their Subsidiaries
      is a party involving aggregate consideration payable to or by such Person of
      $100,000 or
      more
      in any twelve month period and (iii) all other contracts or agreements material
      to the business, operations, condition (financial or otherwise), performance,
      or
      properties of the Company and its Subsidiaries (taken as a whole).

    

    (z)
      "Multiemployer
      Plan"
      means a
      "multiemployer plan" as defined in Section 4001(a)(3) of ERISA to which the
      Company or any ERISA Affiliates has contributed to, or has been obligated to
      contribute.

    

    (aa)
      "Options"
      means
      any rights, warrants or options to subscribe for or purchase Shares or
      Convertible Securities.

    

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

    

    (cc)
      "Permitted
      Indebtedness"
      means:

    

    (i) any
      Indebtedness of the Company or any Subsidiary listed on Schedule
      21(cc)
      hereto;

     

    (ii) purchase
      money Indebtedness of the Company or any Subsidiary (including purchase money
      Capitalized Leases and including all reimbursement, payment or other obligations
      and liabilities of the Company or such Subsidiary created or arising under
      any
      conditional sales or other title retention agreement in respect of property
      used
      and/or acquired by the Company or such Subsidiary, even though the rights and
      remedies of the lessor, seller and/or lender thereunder may be limited to
      repossession or sale of such property) arising after the date hereof to the
      extent secured by purchase money security interests in equipment (including
      Capitalized Leases) and purchase money mortgages, deeds of trust, deeds to
      secure debt or similar instruments on Real Property so long as such security
      interests and mortgages, deed of trusts, deeds to secure debt or similar
      instruments do not apply to any property of the Company or any Subsidiary other
      than the equipment or Real Property so acquired and other equipment or Real
      Property financed by such lender to the extent that such financing constitutes
      Permitted Indebtedness and is evidenced by an agreement that includes customary
      provisions requiring cross-collateralization thereof, and the Indebtedness
      secured thereby does not exceed the cost of the equipment or Real Property
      so
      acquired and the cost of other equipment or Real Property financed by such
      lender to the extent that such financing constitutes Permitted Indebtedness
      and
      is evidenced by an agreement that includes customary provisions requiring
      cross-collateralization thereof, as the case may be;

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (iii) Indebtedness
      under a line of credit with a bank or financial institutional secured by
      substantially all of the assets of the Company other than the Company’s
      intellectual property;

     

    (iv) Indebtedness
      of the Company and the Guarantors arising after the date hereof issued in
      exchange for, or the proceeds of which are used to refinance, replace or
      substitute for all or any portion of the Indebtedness permitted under clause
      (iii) of this definition (the "Refinancing
      Indebtedness");
      

     

    (v) In
      addition to all other Permitted Indebtedness, Subordinated Indebtedness or
      issuance of preference shares (or preferred stock, as applicable) of the Company
      or any Subsidiary arising after the date hereof, provided that (w) the
      Collateral Agent shall have received not less than ten (10) days prior written
      notice of the intention of the Company or such Subsidiary to incur such
      Indebtedness or issue such preference shares (or preferred stock, as
      applicable), which notice shall set forth in reasonable detail satisfactory
      to
      the Holders the amount of such Indebtedness or issuance of preference shares
      (or
      preferred stock, as applicable), the person or persons to whom such Indebtedness
      or preference shares (or preferred stock, as applicable) will be owed, the
      interest or dividend rate, the schedule of repayments and maturity date or
      redemption with respect thereto and such other information as the Holders may
      request with respect thereto, (y) the Holders shall have received true, correct
      and complete copies of all agreements, documents and instruments evidencing
      or
      otherwise related to such Indebtedness or preference shares (or preferred stock,
      as applicable) and (z) as of the date of incurring such Indebtedness and after
      giving effect thereto, no Default or Event of Default shall exist or have
      occurred; 

     

    (vi) Indebtedness
      consisting of liabilities incurred under Title IV of ERISA in respect of any
      plan (other than a Multiemployer Plan) covered by Title IV of ERISA and
      maintained for employees of such Person or any of its ERISA Affiliates and
      withdrawal liability incurred under ERISA by such Person or any of its ERISA
      Affiliates in respect of any Multiemployer Plan to the extent that in each
      case
      such Indebtedness does not otherwise constitute or give rise to an Event of
      Default; 

     

    (vii) incentive
      bonus plans and other employee benefit plans of the Company and/or its
      Subsidiaries to the extent that obligations under such plans constitute
      "Indebtedness"; and

     

    (viii) trade
      payables or other accounts payable incurred in the ordinary course of the
      Company's or any Subsidiary's business and not outstanding for more than one
      hundred and twenty (120) days after such amount is due by the Company or such
      Subsidiary or, if outstanding longer, that are being contested or disputed
      by
      the Company and/or such Subsidiary in good faith in the ordinary course of
      business.

     

    (ix) Any
      Indebtedness incurred as the result of the Financing. 

     

    (dd)
      "Permitted
      Liens"
      means:

     

    (i) Liens
      securing the obligations under the Notes;

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (ii) Liens
      securing the payment of taxes, assessments or other governmental charges or
      levies either not yet overdue or the validity of which are being contested
      in
      good faith by appropriate proceedings diligently pursued and available to the
      Company or any other Subsidiary of the Company, as the case may be and in
      respect of which adequate reserves have been set aside on its
      books;

     

    (iii) Liens
      constituting purchase money security interests in equipment (including
      Capitalized Leases) and purchase money mortgages, deeds of trust, deeds to
      secure debt or similar instruments on real property to secure Indebtedness
      permitted under clause (ii) of the definition of the term "Permitted
      Indebtedness";

     

    (iv) Liens
      imposed by law, such as carriers', warehousemen's, mechanics', materialmen's
      and
      other similar Liens arising in the ordinary course of business and securing
      obligations (other than Indebtedness for borrowed money) that are not overdue
      by
      more than thirty (30) days or are being contested in good faith and by
      appropriate proceedings promptly initiated and diligently conducted; provided
      that they are subordinate to the Collateral Agent's Liens on the Collateral
      (except to the extent of customary fees payable in respect of such obligations),
      and a reserve or other appropriate provision, if any, as shall be required
      by
      GAAP shall have been made therefor;

     

    (v) Liens
      and
      the right of setoff against deposits of cash by the Company or any Subsidiary
      in
      the ordinary course of business with any financial institution at which a
      deposit account of the Company or such Subsidiary is maintained to secure
      obligations of the Company or such Subsidiary to such financial institution
      in
      connection with such deposit account and the cash management services provided
      by such financial institution for which such deposit account is used consistent
      with the current practices of the Company or such Subsidiary as of the date
      hereof; provided that, such Liens are subordinate to the Collateral Agent's
      Liens on the Collateral, except to the extent of customary fees, items returned
      unpaid and overdrafts payable in respect of such obligations; 

     

    (vi) easements,
      zoning restrictions and similar encumbrances on real property owned by the
      Company or any Subsidiary and minor irregularities in the title thereto that
      do
      not (x) secure obligations for the payment of money, or (y) materially impair
      the value of such property or its use by the Company or any Subsidiary in the
      normal conduct of the Company's or such Subsidiary business;

     

    (vii) Any
      Liens
      incurred as result of the Financing. 

     

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

    

    (ff)
      "Principal
      Market"
      means,
      from time to time, the Eligible Market upon which the Shares are admitted or
      listed and principally trade.

    

    (gg)
      "Real
      Property"
      means
      all now owned and hereafter acquired real property of the Company and each
      Subsidiary, including leasehold interests, together with all buildings,
      structures, and other improvements located thereon and all licenses, easements
      and appurtenances relating thereto, wherever located.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (hh)
      "Registration
      Rights Agreement"
      means
      that certain registration rights agreement dated as of the Issuance Date by
      and
      among the Company and the initial holders of the Notes relating to, among other
      things, the registration for resale of the Shares issuable upon conversion
      of
      the Notes and exercise of the Warrants.

    

    (ii)
      "Required
      Holders"
      means
      the holders of Notes representing at least a majority of the aggregate principal
      amount of the Notes then outstanding; provided that any Note that is held by
      an
      Affiliate of the Company shall not be deemed to be outstanding for purposes
      of
      the determination of "Required Holders."

    

    (jj)
      "SEC"
      means
      the United States Securities and Exchange Commission. 

    

    (kk)
      "Securities
      Purchase Agreement"
      means
      that certain Securities Purchase Agreement dated as of the Subscription Date
      by
      and among the Company and the initial holders of the Notes, pursuant to which
      the Company issued the Notes.

    

    (ll)
      "Subordinated
      Indebtedness"
      means
      Indebtedness (secured or unsecured) incurred by the Company and/or its
      Subsidiaries that is made expressly subordinate in right of payment to the
      Indebtedness evidenced by this Note, as reflected in a written agreement
      acceptable to the Holder and approved by the Holder in writing; provided that
      no
      such Indebtedness shall provide at any time for (1) the payment, prepayment,
      repayment, repurchase or defeasance, directly or indirectly, of any principal
      or
      premium, if any, thereon until ninety-one (91) days after the Maturity Date
      or
      later and (2) total cash interest at a rate in excess of eleven percent (11.0%)
      per annum.

    

    (mm)
      "Subscription
      Date"
      means
      August 31, 2007.

    

    (nn)
      "Subsidiary"
      means,
      from time to time, any entity in which the Company directly or indirectly,
      owns
      any of the capital stock or holds an equity or similar interest.

    

    (oo) 
      "Successor
      Entity"
      means
      the Person, which may be the Company, formed by, resulting from or surviving
      any
      Fundamental Transaction or the Person with which such Fundamental Transaction
      shall have been made, provided that if such Person is not a publicly traded
      entity whose common stock or equivalent equity security is quoted or listed
      for
      trading on an Eligible Market, Successor Entity shall mean such Person's Parent
      Entity.

    

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

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (qq)
      "Voting
      Stock"
      of a
      Person means capital stock of such Person of the class or classes pursuant
      to
      which the holders thereof have the general voting power to elect, or the general
      power to appoint, at least a majority of the board of directors, managers or
      trustees of such Person (irrespective of whether or not at the time capital
      stock of any other class or classes shall have or might have voting power by
      reason of the happening of any contingency).

    

    (rr)
      "Warrants"
      has the
      meaning ascribed to such term in the Securities Purchase Agreement, and shall
      include all warrants issued in exchange therefor or replacement
      thereof.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	
              GOLDEN
                AUTUMN HOLDINGS INC.

               

            
	 	
              By:

            	
              /s/Charles
                Fu 

            
	 	 	
              Name:
                Charles Fu

            
	 	 	
              Title:
                PresidentWARRANT

     

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL,
      IN A
      GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES
      LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY
      TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THIS WARRANT,
      INCLUDING SECTION 6(d) HEREOF. 

     

    GOLDEN
      AUTUMN HOLDINGS INC.

     

    WARRANT
      TO PURCHASE COMMON STOCK

     

    Warrant
      No.: 

    Date
      of
      Issuance: August 31, 2007 (“Issuance
      Date”)

     

    Golden
      Autumn Holdings Inc., a Nevada corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Strategic
      Alliance Fund LP, the
      registered holder hereof or its permitted assigns (the “Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      the Exercise Price (as defined below) then in effect, upon surrender of this
      Warrant to Purchase Common Stock (including any Warrants to Purchase Common
      Stock issued in exchange, transfer or replacement hereof, the “Warrant”),
      at
      any time or times on or after December 1, 2007, but not after 11:59 P.M., New
      York time, on the Expiration Date (as defined below) fully paid nonassessable
      Shares (as defined below) (the
      “Warrant
      Shares”).
      Except as otherwise defined herein, capitalized terms in this Warrant shall
      have
      the meanings set forth in Section 15. This Warrant is one of the Warrants to
      purchase Shares issued pursuant to that certain Securities Purchase Agreement,
      dated as of August 31, 2007 (the “Subscription
      Date”),
      by
      and among the Company and the buyers (the “Buyers”)
      referred to therein (the “SPA”). The aggregate number of Shares which may be
      purchased upon exercise of this Warrant shall be equal to 30% of the quotient
      obtained by dividing (a) the original aggregate principal amount of the Senior
      Secured Convertible Promissory Note issued to the original Holder of this
      Warrant pursuant to the SPA (the “Note”), by (b) the conversion rate set forth
      in Section 3 of the Note.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    1.    EXERCISE
      OF WARRANT.

     

    (a)    Mechanics
      of Exercise.
      Subject
      to the terms and conditions hereof (including, without limitation, the
      limitations set forth in Section 1(f)), this Warrant may be exercised by the
      Holder, in whole or in part, on any day on or after the date that the number
      of
      Shares which may be purchased upon exercise of this Warrant is first
      definitively determined, by (i) delivery of a written notice, in the form
      attached hereto as Exhibit
      A
      (the
“Exercise
      Notice”),
      of
      the Holder’s election to exercise this Warrant and (ii) (A) payment to the
      Company of an amount equal to the applicable Exercise Price multiplied by the
      number of Warrant Shares as to which this Warrant is being exercised (the
“Aggregate
      Exercise Price”)
      in
      cash or by wire transfer of immediately available funds or (B) by notifying
      the
      Company that this Warrant is being exercised pursuant to a Cashless Exercise
      (as
      defined in Section 1(d)). Execution and delivery of the Exercise Notice with
      respect to less than all of the Warrant Shares shall have the same effect as
      cancellation of the original Warrant and issuance of a new Warrant evidencing
      the right to purchase the remaining number of Warrant Shares. On or before
      the
      first Business Day following the date on which the Company has received each
      of
      the Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless
      Exercise) (the “Exercise
      Delivery Documents”),
      the
      Company shall transmit by facsimile an acknowledgment of confirmation of receipt
      of the Exercise Delivery Documents to the Holder and the Company’s transfer
      agent (the “Transfer
      Agent”).
      On or
      before the third Business Day following the date on which the Company has
      received all of the Exercise Delivery Documents (the “Share
      Delivery Date”),
      the
      Company shall (X) if legends are not required to be placed on certificates
      for
      Shares pursuant to the SPA provided that the Transfer Agent is participating
      in
      The Depository Trust Company (“DTC”)
      Fast
      Automated Securities Transfer Program, and provided, further, that the Holder
      is
      eligible to receive shares through DTC, credit such aggregate number of Shares
      to which the Holder is entitled pursuant to such exercise to the Holder’s or its
      designee’s balance account with DTC through its Deposit Withdrawal Agent
      Commission System, or (Y) if the Transfer Agent is not participating in the
      DTC
      Fast Automated Securities Transfer Program or the Holder is not eligible to
      receive shares through DTC, issue and dispatch by overnight courier to the
      address as specified in the Exercise Notice, a certificate, registered in the
      Company’s share register in the name of the Holder or its designee, for the
      number of Shares to which the Holder is entitled pursuant to such exercise.
      The
      Holder undertakes that whenever the Company credits securities as set forth
      in
      clause (X) of the preceding sentence, upon receipt of notice from the Company
      that the applicable registration statement is not, or no longer is, effective
      in
      respect of the resale of such securities, the Holder will not transfer such
      securities (other than (I) in connection with a transfer, wherein the Holder
      provides the Company with an opinion of counsel, in a generally acceptable
      form,
      to the effect that such transfer may be made without registration under the
      applicable requirements of the 1933 Act, or (II) the Holder provides the Company
      with reasonable assurances that the transfer may be effected pursuant to Rule
      144 or Rule 144A) until the Company notifies the Holder that the applicable
      registration statement becomes effective (again). Upon delivery of the Exercise
      Delivery Documents or notification to the Company of a Cashless Exercise
      referred to in Section 1(d), the Holder shall be deemed for all corporate
      purposes to have become the holder of record of the Warrant Shares in respect
      of
      which this Warrant has been exercised, irrespective of the date such Warrant
      Shares are credited to the Holder’s DTC account or the date of delivery of the
      certificates evidencing such Warrant Shares, as the case may be. If this Warrant
      is submitted in connection with any exercise pursuant to this Section 1(a)
      and
      the number of Warrant Shares represented by this Warrant submitted for exercise
      is greater than the number of Warrant Shares being acquired upon an exercise,
      then the Company shall as soon as practicable and in no event later than three
      (3) Business Days after any exercise (the “Warrant
      Delivery Date”)
      and at
      its own expense, issue a new Warrant (in accordance with Section 6(d))
      representing the right to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant, less the number of
      Warrant Shares in respect of which this Warrant is exercised. No fractional
      Shares are to be issued upon the exercise of this Warrant, but rather the number
      of Shares to be issued shall be rounded up to the nearest whole number. The
      Company shall pay any and all taxes, including without limitation, all
      documentary stamp, transfer or similar taxes, or other incidental expense that
      may be payable with respect to the issuance and delivery of Warrant Shares
      upon
      exercise of this Warrant.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b)    Exercise
      Price.
      For
      purposes of this Warrant, “Exercise
      Price”
means
      the price per Share paid by investors in the Financing (as such term is defined
      in the SPA), as adjusted as provided herein, provided however in the event
      that
      the Financing has not taken place by November 30, 2007, the Exercise Price
      shall
      be $1.00 per Share, subject to adjustment as provide herein. 

     

    (c)    Company’s
      Failure to Timely Deliver Securities.
      If
      within three (3) Trading Days after the Company’s receipt of the facsimile copy
      of Exercise Delivery Documents, the Company fails to (x) issue and deliver
      a
      certificate for that number of Shares to which the Holder is entitled and
      register such Shares on the Company’s share register or to credit the Holder’s
      balance account with DTC for the number of Shares to which the Holder is
      entitled upon such Holder’s exercise of this Warrant or (y) issue and deliver to
      the Holder by the Warrant Delivery Date a new Warrant for the number of Shares
      to which such Holder is entitled pursuant to Section 2(a) hereof, and if on
      or
      after such Trading Day the Holder purchases (in an open market transaction
      or
      otherwise) Shares to deliver in satisfaction of a sale by the Holder of Shares
      issuable upon such exercise that the Holder anticipated receiving from the
      Company (a “Buy-In”),
      then
      the Company shall, within three (3) Business Days after the Holder’s request and
      in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal
      to the Holder’s total purchase price (including brokerage commissions, if any)
      for the Shares so purchased (the “Buy-In
      Price”),
      at
      which point the Company’s obligation to deliver such certificate (and to issue
      such Shares) shall terminate, or (ii) promptly honor its obligation to deliver
      to the Holder a certificate or certificates representing such Shares or if
      legends are not required to be placed on certificates for Shares pursuant to
      the
      SPA provided that the Transfer Agent is participating in DTC Fast Automated
      Securities Transfer Program, upon the request of the Holder, credit such
      aggregate number of Warrant Shares to which the Holder is entitled pursuant
      to
      such exercise to the Holder’s or its designee’s balance account with DTC through
      its Deposit Withdrawal Agent Commission system and pay cash to the Holder in
      an
      amount equal to the excess (if any) of the Buy-In Price over the product of
      (A)
      such number of Shares, times (B) the Closing Bid Price on the date of
      exercise.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      (d)    Cashless
        Exercise.
         Notwithstanding
        anything contained herein to the contrary, if within 210 days of the Issuance
        Date a Registration Statement (as defined in the Registration Rights Agreement)
        covering the Warrant Shares that are the subject of the Exercise Notice (the
        “Unavailable
        Warrant Shares”)
        is not
        available for the resale of such Unavailable Warrant Shares, the Holder may,
        in
        its sole discretion, exercise this Warrant in whole or in part and, in lieu
        of
        making the cash payment otherwise contemplated to be made to the Company
        upon
        such exercise in payment of the Aggregate Exercise Price, elect instead to
        receive upon such exercise the “Net Number” of Shares determined according to
        the following formula (a “Cashless
        Exercise”):

       

    

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

                                
      B

     

    For
      purposes of the foregoing formula:

     

    A=
      the
      total number of Shares in respect of which this Warrant is then being
      exercised.

     

    B=
      the
      Closing Sale Price of the Shares (as reported by Bloomberg) on the Trading
      Day
      immediately preceding the date of the Exercise Notice.

     

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

     

    (e)    Disputes.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall promptly issue
      to the Holder the number of Warrant Shares that are not disputed and resolve
      such dispute in accordance with Section 12.

     

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

     

    (a)    If
      the
      Company shall issue any Additional Stock (as hereinafter defined) without
      consideration or for a consideration per share less than the Exercise Price
      in
      effect immediately prior to the issuance of such Additional Stock, the Exercise
      Price in effect immediately prior to each such issuance shall forthwith (except
      as otherwise provided in this Section 2) be adjusted to a price equal to the
      price paid per share for such Additional Stock.

     

    (i)    No
      adjustment
      of the Exercise Price shall be made in an amount less than one cent per share,
      provided,
      however,
      that
      any adjustments that are not required to be made by reason of this sentence
      shall be carried forward and shall be either taken into account in any
      subsequent adjustment made prior to three (3) years from the date of the event
      giving rise to the adjustment being carried forward, or shall be made at the
      end
      of three (3) years from the date of the event giving rise to the adjustment
      being carried forward. 

     

    (ii)    In
      the case
      of the issuance of Additional Stock for cash, the consideration shall be deemed
      to be the amount of cash paid therefor before deducting any reasonable
      discounts, commissions or other expenses allowed, paid or incurred by the
      Company for any underwriting or otherwise in connection with the issuance and
      sale thereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (iii)    In
      the case
      of the issuance of the Additional Stock for a consideration in whole or in
      part
      other than cash, the consideration other than cash shall be deemed to be the
      fair value thereof as determined by the Board of Directors of the Company in
      good faith.

     

    (iv)    “Additional
      Stock” shall mean any Shares issued by the Company after other
      than:

     

    (A)    shares
      of
      Common Stock issued or deemed issued to employees, consultants, directors or
      officer, or pursuant to a stock option plan or restricted stock purchase plan
      approved by the stockholders and Board of Directors of the Company;
      or

     

    (B)    Shares
      issued
      pursuant to the conversion or exercise of convertible or exercisable securities
      outstanding as of the date hereof; 

     

    (C)    Any
      Shares
      issued pursuant to the Financing.

     

    (v)    In
      the event
      the Company should at any time or from time to time fix a record date for the
      effectuation of a split or subdivision of the outstanding Shares or the
      determination of holders of Shares entitled to receive a dividend or other
      distribution payable in additional Shares or other securities or rights
      convertible into, or entitling the holder thereof to receive directly or
      indirectly, additional Shares (hereinafter referred to as “Common Stock
      Equivalents”) without payment of any consideration by such holder for the
      additional Shares or the Common Stock Equivalents (including the additional
      Shares of Common Stock issuable upon conversion or exercise thereof), then,
      as
      of such record date (or the date of such dividend distribution, split or
      subdivision if no record date is fixed), the Exercise Price shall be
      appropriately decreased so that the number of Shares issuable on exercise of
      this Warrant shall be increased in proportion to such increase in the aggregate
      number of Shares outstanding and those issuable with respect to such Common
      Stock Equivalents.

     

    (vi)    If
      the number
      of Shares outstanding at any time is decreased by a combination of the
      outstanding Shares, then, following the record date of such combination, the
      Exercise Price shall be appropriately increased so that the number of Shares
      issuable on exercise of this Warrant shall be decreased in proportion to such
      decrease in outstanding Shares.

     

    (b)    Recapitalizations.
      If at
      any time or from time to time there shall be a recapitalization of the Shares
      (other than a subdivision, combination or merger or sale of assets transaction
      provided for elsewhere in this Section 2) provision shall be made so that the
      holder of this Warrant shall thereafter be entitled to receive upon exercise
      of
      this Warrant the number of shares of stock or other securities or property
      of
      the Company or otherwise, to which a holder of the number of Shares deliverable
      upon exercise of this Warrant held by such holder would have been entitled
      on
      such recapitalization. 

     

    (c)    No
      Impairment.
      The
      Company will not, by amendment of its Certificate of Incorporation or through
      any reorganization, recapitalization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms to be observed
      or performed hereunder by the Company, but will at all times in good faith
      assist in the carrying out of all the provisions of this Section 2 and in
      the taking of all such action as may be necessary or appropriate in order to
      protect the rights of the holders of Warrants against impairment.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (d)    No
      Fractional Shares and Certificate as to Adjustments,

     

    (i)    No
      fractional
      shares shall be issued upon the exercise of this Warrant. In lieu of any
      fractional shares to which the holder would otherwise be entitled, the Company
      shall pay cash equal to such fraction multiplied by the then fair market value
      of a Share as determined in good faith by the Board of Directors. 

     

    (ii)    Upon
      the
      occurrence of each adjustment or readjustment of the Exercise Price pursuant
      to
      this Section 2, the Company, at its expense, shall promptly compute such
      adjustment or readjustment in accordance with the terms hereof and prepare
      and
      furnish to each holder of Warrants a certificate setting forth such adjustment
      or readjustment and showing in detail the facts upon which such adjustment
      or
      readjustment is based. The Company shall, upon the written request at any time
      of any holder of a Warrants, furnish or cause to be furnished to such holder
      a
      like certificate setting forth (A) such adjustment and readjustment, (B) the
      Exercise Price at the time in effect, and (C) the number of Shares and the
      amount, if any, of other property that at the time would be received upon the
      exercise of this Warrant. 

     

    (e)    If
      any action
      or transaction would require adjustment of the Exercise Price pursuant to more
      than one subsection of this Section 2, only one adjustment shall be made, and
      such adjustment shall be the amount of adjustment that results in the lowest
      Exercise Price.

     

    3.    FUNDAMENTAL
      TRANSACTIONS.

     

    If,
      at
      any time while this Warrant is outstanding there is a Fundamental Transaction,
      then upon the subsequent exercise of this Warrant, the Holder shall have the
      right thereafter to receive, upon exercise of this Warrant, the same amount
      and
      kind of securities, cash or property as it would have been entitled to receive
      upon the occurrence of such Fundamental Transaction if it had been, immediately
      prior to such Fundamental Transaction, the holder of the number of Warrant
      Shares then issuable upon exercise in full of this Warrant (the “Alternate
      Consideration”).
      For
      purposes of any such exercise, the determination of the Exercise Price shall
      be
      appropriately adjusted to apply to such Alternate Consideration based on the
      amount of Alternate Consideration issuable in respect of one Share in such
      Fundamental Transaction, and the Company shall apportion the Exercise Price
      among the Alternate Consideration in a reasonable manner reflecting the relative
      value of any different components of the Alternate Consideration. If holders
      of
      Shares are given any choice as to the securities, cash or property to be
      received in a Fundamental Transaction, then the Holder shall be given the same
      choice as to the Alternate Consideration it receives upon any exercise of this
      Warrant following such Fundamental Transaction. To the extent necessary to
      effectuate the foregoing provisions, any successor to the Company or surviving
      entity in such Fundamental Transaction shall issue to the Holder a new warrant
      consistent with the foregoing provisions and evidencing the Holder’s right to
      exercise such warrant into Alternate Consideration. The terms of any agreement
      pursuant to which a Fundamental Transaction is effected shall include terms
      requiring any such successor or surviving entity to comply with the provisions
      of this paragraph (b) and insuring that the Warrant (or any such replacement
      security) will be similarly adjusted upon any subsequent transaction analogous
      to a Fundamental Transaction.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

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

     

    5.    REISSUANCE
      OF WARRANTS.

     

    (a)    Transfer
      of Warrant.
      

     

    (i)    The
      Company
      shall maintain at its principal executive offices (or such other office or
      agency of the Company as it may designate by notice to the Holder), a register
      for this Warrant, in which the Company shall record the name and address of
      the
      person in whose name this Warrant has been issued, as well as the name and
      address of each transferee. The Company may treat the person in whose name
      any
      Warrant is registered on the register as the owner and Holder thereof for all
      purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    (ii)    The
      Holder
      may assign or transfer some or all of its rights hereunder, subject to
      compliance with the 1933 Act and the provisions of Section 2 of the SPA
      without the consent of the Company. The Company is obligated to register the
      Warrant Shares for resale under the 1933 Act pursuant to the Registration Rights
      Agreement. If
      at the
      time of the surrender
      of this Warrant in connection with any transfer of this Warrant, the transfer
      of
      this Warrant shall not be registered pursuant to an effective registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer, that (i) the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, and
      (ii)
      the Holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company, and (iii) the transferee be
      an
“accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a “qualified institutional buyer” as
      defined in Rule 144A(a) promulgated under the Securities Act of 1933, as
      amended. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

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

     

    (c)    Exchangeable
      for Multiple Warrants.
      This
      Warrant is exchangeable, upon the surrender hereof by the Holder at the
      principal office of the Company, for a new Warrant or Warrants representing
      in
      the aggregate the right to purchase the number of Warrant Shares then underlying
      this Warrant, and each such new Warrant will represent the right to purchase
      such portion of such Warrant Shares as is designated by the Holder at the time
      of such surrender; provided,
      however,
      that no
      Warrants for fractional Shares shall be given.

     

    (d)    Book
      Entry.
      Notwithstanding anything to the contrary set forth herein, upon exercise of
      this
      Warrant in accordance with the terms hereof, the Holder shall not be required
      to
      physically surrender this Warrant to the Company unless it is being exercised
      for all of the Warrant Shares represented by the Warrant. The Holder and the
      Company shall each maintain records showing the number of Warrant Shares
      exercised and issued and the dates of such exercises or shall use such other
      method, reasonably satisfactory to the other, so as not to require physical
      surrender of this Warrant upon each such exercise. In the event the Company
      disputes such records of the Holder, the terms and provisions of Section 11
      hereof shall apply. Notwithstanding the foregoing, if this Warrant is exercised
      as aforesaid, the Holder may not transfer this Warrant unless the holder first
      physically surrenders this Warrant to the Company, whereupon the Company will
      forthwith issue and deliver upon the order of the Holder a new Warrant of like
      tenor, registered as the Holder may request, representing in the aggregate
      the
      remaining number of Warrant Shares represented by this Warrant. The Holder
      and
      any assignee, by acceptance of this Warrant, acknowledge and agree that, by
      reason of the provisions of this paragraph, following exercises of any portion
      of this Warrant, the number of Warrant Shares represented by this Warrant may
      be
      less than the number stated on the face hereof. 

     

    7.    NOTICES.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Warrant must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one (1) Business Day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same. The addresses and facsimile numbers for such communications
      shall be:

     

    If
      to the
      Company:

     

    Golden
      Autumn Holdings Inc.

    Attention:
      Mr. Charles Y. Fu, Vice Chairman & President

    15455
      Dallas Pkwy, 6th
      Floor
      Dallas, TX 75001

    Charles.Fu@GoldenAutumn.us

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    With
      a
      copy to:

    

    Gregory
      Sichenzia, Esq. 

    Sichenzia
      Ross Friedman Ference LLP

    61
      Broadway

    New
      York,
      New York 10006

    Fax
      (212)
      930-9725

    Email:
      gsichenzia@srff.com

    

    If
      to a
      Holder of this Warrant, to it at the address and facsimile number set forth
      on
      the Schedule of Buyers to the SPA with copies to such holder’s representatives
      as set forth on such Schedule of Buyers, or, in the case of the holder or any
      other Person named above, at such other address and/or facsimile number and/or
      to the attention of such other person as the recipient party has specified
      by
      written notice to the other party in accordance with this Section 6 at
      least five (5) Business Days prior to the effectiveness of such change. Written
      confirmation of receipt (A) given by the recipient of such notice, consent,
      waiver or other communication, (B) mechanically or electronically generated
      by
      the sender’s facsimile machine containing the time, date, recipient facsimile
      number and an image of the first page of such transmission or (C) provided
      by a nationally recognized overnight delivery service shall be rebuttable
      evidence of personal service, receipt by facsimile or deposit with a nationally
      recognized overnight delivery service in accordance with clause (i), (ii)
      or (iii) above, respectively.

     

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

     

    9.    GOVERNING
      LAW; JURISDICTION.
      This
      Warrant shall be governed by and construed and enforced in accordance with,
      and
      all questions concerning the construction, validity, interpretation and
      performance of this Warrant shall be governed by, the internal laws of the
      State
      of New York, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the State of New York or any other jurisdictions)
      that would cause the application of the laws of any jurisdictions other than
      the
      State of New York. Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in The City of New York,
      Borough of Manhattan, for the adjudication of any dispute hereunder or in
      connection herewith or with any transaction contemplated hereby or discussed
      herein, and hereby irrevocably waives, and agrees not to assert in any suit,
      action or proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court, that such suit, action or proceeding is brought
      in an inconvenient forum or that the venue of such suit, action or proceeding
      is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such notices to it
      under
      this Warrant and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by
      law.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

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

     

    11.    SEVERABILITY.
      If any
      provision of this Warrant or the application thereof becomes or is declared
      by a
      court of competent jurisdiction to be illegal, void or unenforceable, the
      remainder of the terms of this Warrant will continue in full force and effect.
      

     

    12.    DISPUTE
      RESOLUTION.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within two
      Business Days of receipt of the Exercise Notice giving rise to such dispute,
      as
      the case may be, to the Holder. If the Holder and the Company are unable to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within three Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      promptly, and in any event within two (2) Business Days submit via facsimile
      (a)
      the disputed determination of the Exercise Price to an independent, reputable
      investment bank agreed to by the Company and the Holder or (b) the disputed
      arithmetic calculation of the Warrant Shares to the Company’s independent,
      outside accountant. The Company shall cause at its expense the investment bank
      or the accountant, as the case may be, to perform the determinations or
      calculations and notify the Company and the Holder of the results no later
      than
      five (5) Business Days from the time it receives the disputed determinations
      or
      calculations. If such investment bank or accountant agrees with the Company’s
      determination or calculations (as the case may be), then the Holder shall
      reimburse the Company for the expense it incurred to cause the investment
      bank/accountant to perform such determination or calculation (the “Evaluation
      Expense”).
      If
      Exercise Price or the Warrant Shares as determined or calculated (as the case
      may be) by such investment bank or accountant (the “Third
      Party Determination”)
      falls
      in between the Exercise Price or Warrant Shares as determined or calculated
      (as
      the case may be) by the Company (the “Company
      Determination”)
      and
      the Exercise Price or the Warrant Shares as determined or calculated (as the
      case may be) by the Holder (the “Holder
      Determination”),
      then
      the Holder shall reimburse the Company for a fraction of the Evaluation Expense
      of which the denominator shall be the absolute difference between the Company
      Determination and the Holder Determination and of which the numerator shall
      be
      the absolute difference between the Holder Determination and the Third Party
      Determination.  If the Third Party Determination of the Exercise Price is
      greater than the Company Determination of the Exercise Price or the Third Party
      Determination of the number of Warrant Shares is less than the Company
      Determination of the Warrant Shares, then the Holder shall reimburse the Company
      for the entire Evaluation Expense. If the Third Party Determination of the
      Exercise Price is lower than the Holder Determination of the Exercise Price
      or
      the Third Party Determination of the number of Warrant Shares is greater than
      the Holder Determination of the number of Warrant Shares, then the Holder shall
      not reimburse the Company for any Evaluation Expense. Such investment bank’s or
      accountant’s determination or calculation, as the case may be, shall be binding
      upon all parties absent demonstrable error. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    13.    REMEDIES,
      OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.
      The
      remedies provided in this Warrant shall be cumulative and in addition to all
      other remedies available under this Warrant and the other Transaction Documents,
      at law or in equity (including a decree of specific performance and/or other
      injunctive relief), and nothing herein shall limit the right of the Holder
      to
      pursue actual damages for any failure by the Company to comply with the terms
      of
      this Warrant. The Company acknowledges that a breach by it of its obligations
      hereunder will cause irreparable harm to the Holder and that the remedy at
      law
      for any such breach may be inadequate. The Company therefore agrees that, in
      the
      event of any such breach or threatened breach, the holder of this Warrant shall
      be entitled, in addition to all other available remedies, to an injunction
      restraining any breach, without the necessity of showing economic loss and
      without any bond or other security being required. 

     

    14.    NOTICE
      OF CERTAIN EVENTS.
      The
      Company will give written notice to the Holder of this Warrant at least ten
      (10)
      Business Days prior to the date on which the Company closes its books or takes
      a
      record (A) with respect to any dividend or distribution upon the Common Stock,
      (B) with respect to any pro rata subscription offer to Holders of Shares or
      (C)
      for determining rights to vote in respect of any Fundamental Transaction,
      dissolution or liquidation, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      Holder to the extent it is material non-public information. The Company will
      also give written notice to the Holder of this Warrant at least ten (10)
      Business Days prior to the date on which any Fundamental Transaction,
      dissolution or liquidation will take place, provided that such information
      shall
      be made known to the public prior to or in conjunction with such notice being
      provided to such Holder to the extent it is material non-public
      information.

     

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

     

    (i)    “Bloomberg”
means
      Bloomberg Financial Markets.

     

    (ii)   “Business
      Day”
means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      The City of New York are authorized or required by law to remain
      closed.

     

    (iii)        
      “Closing
      Bid Price”
and
      “Closing
      Sale Price”
means,
      for any security as of any date, the last closing bid price and last closing
      trade price, respectively, for such security on the Principal Market, as
      reported by Bloomberg, or, if the Principal Market begins to operate on an
      extended hours basis and does not designate the closing bid price or the closing
      trade price, as the case may be, then the last bid price or last trade price,
      respectively, of such security prior to 4:00:00 p.m., New York time, as reported
      by Bloomberg, or, if the Principal Market is not the principal securities
      exchange or trading market for such security, the last closing bid price or
      last
      trade price, respectively, of such security on the principal securities exchange
      or trading market where such security is listed or traded as reported by
      Bloomberg, or if the foregoing do not apply, the last closing bid price or
      last
      trade price, respectively, of such security in the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg, or,
      if
      no closing bid price or last trade price, respectively, is reported for such
      security by Bloomberg, the average of the bid prices, or the ask prices,
      respectively, of any market makers for such security as reported in the “pink
      sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If
      the Closing Bid Price or the Closing Sale Price cannot be calculated for a
      security on a particular date on any of the foregoing bases, the Closing Bid
      Price or the Closing Sale Price, as the case may be, of such security on such
      date shall be the fair market value as mutually determined by the Company and
      the Holder. If the Company and the Holder are unable to agree upon the fair
      market value of such security, then such dispute shall be resolved pursuant
      to
      Section 12. All such determinations to be appropriately adjusted for any stock
      dividend, stock split, stock combination or other similar transaction during
      the
      applicable calculation period.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (iv)         
      “Convertible
      Securities”
means
      any stock or securities (other than Options) directly or indirectly convertible
      into or exercisable or exchangeable for Shares.

     

    (v)         
      “Eligible
      Market”
means
      the OTC Bulletin Board, The New York Stock Exchange, Inc., the American Stock
      Exchange, The NASDAQ Global Select Market, The NASDAQ Global Market or The
      NASDAQ Capital Market.

     

    (vi)        
      “Expiration
      Date”
means
      the date that is thirty-six months after the Issuance Date; provided that if
      such date falls on a day other than a Business Day or on which trading does
      not
      take place on the applicable Eligible Market (a “Holiday”),
      the
      next date that is not a Holiday.

     

    (vii)       
      “Fundamental
      Transaction”
means
      that the Company shall, directly or indirectly, in one or more related
      transactions effected after the Issuance Date, (i) consolidate or merge with
      or
      into (whether or not the Company is the surviving corporation) another Person,
      or (ii) sell, assign, transfer, convey or otherwise dispose of all or
      substantially all of the properties or assets of the Company to another Person,
      or (iii) be the subject of a purchase, tender or exchange offer by another
      Person that is accepted by the holders of more than 50% of the outstanding
      shares of Voting Shares (not including any shares of Voting Shares held by
      the
      Person or Persons making or party to, or associated or affiliated with the
      Persons making or party to, such purchase, tender or exchange offer), or (iv)
      consummate a stock purchase agreement or other business combination (including,
      without limitation, a reorganization, recapitalization, spin-off or scheme
      of
      arrangement) with another Person whereby such other Person acquires more than
      the 50% of the outstanding Shares (not including any Shares held by the other
      Person or other Persons making or party to, or associated or affiliated with
      the
      other Persons making or party to, such stock purchase agreement or other
      business combination), or (v) reclassify or change the outstanding Shares (other
      than a change in par value, or from par value to no par value, or from no par
      value to par value, or as a result of a subdivision or combination), or (vi)
      any
“person” or “group” (as these terms are used for purposes of Sections 13(d) and
      14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined
      in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the
      aggregate ordinary voting power represented by issued and outstanding Shares.
      Notwithstanding anything to the contrary herein, the Financing or any shares
      issued in connection with the Financing shall not be considered a Fundamental
      Transaction. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (viii)      
       “Options”
means
      any rights, warrants or options to subscribe for or purchase Shares or
      Convertible Securities.

     

    (ix)        
       “Shares”
means
      (i) the Company’s Common Stock, par value $0.001 per share, and
      (ii) any share capital into which such Shares shall have been changed or
      any share capital resulting from a reclassification of such Shares.

     

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

     

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

     

    (xii)         “Principal
      Market”
means,
      from time to time, the Eligible Market upon which the Common Stock is admitted
      or listed and principally trades.

     

    (xiii)        “Registration
      Rights Agreement”
means
      that certain registration rights agreement by and among the Company and the
      Buyers.

     

    (xiv)        “Required
      Holders”
means
      the holders of the Warrants representing at least a majority of Shares issuable
      upon exercise of the Warrants then outstanding (without regard to any
      limitations on exercise thereof); provided, that any Warrant that is held by
      an
      Affiliate of the Company shall not be deemed to be outstanding for purposes
      of
      the determination of “Required Holders.”

     

    (xv)         “Subscription
      Date”
means
      August 31, 2007.

     

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

     

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

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (xviii)    
       “Voting
      Shares”
of
      a
      Person means capital stock of such Person of the class or classes pursuant
      to
      which the holders thereof have the general voting power to elect, or the general
      power to appoint, at least a majority of the board of directors, managers or
      trustees of such Person (irrespective of whether or not at the time capital
      stock of any other class or classes shall have or might have voting power by
      reason of the happening of any contingency).

     

    [Signature
      Page Follows]

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

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

     

    

      
        	 	
                GOLDEN
                  AUTUMN HOLDINGS INC.

              
	 	 
	 	 
	 	
                By:

              	
                /s
                  /Charles Fu 
                  

                

              
	 	
                Name: Charles
                  Fu

              
	 	
                Title: President

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    EXERCISE
      NOTICE

    TO
      BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
      TO PURCHASE COMMON STOCK

    

    GOLDEN
      AUTUMN HOLDINGS INC.

    The
      undersigned holder hereby exercises the right to purchase _________________
      of
      the Shares of Golden Autumn Holdings Inc. (the “Shares”),
      a
      Nevada corporation (the “Company”),
      pursuant to the Warrant to Purchase Shares (Warrant No: ______________) (as
      adjusted by all the partial exercises thereof prior to the date hereof, the
      “Warrant”.
      The
      total number of Shares issuable upon exercise of the Warrant, the “Warrant
      Shares”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    1.
      Form
      of Exercise Price. The Holder intends that payment of the Exercise Price shall
      be made as:

     

    
      ___________ a
“Cash
        Exercise” in respect of ___________ Warrant Shares; and/or

    

    

    When
      available pursuant to the terms of the Warrant, ___________ a
      “Cashless Exercise” in respect of ___________ Warrant Shares.

    

    2.
      Cash
      Exercise. In the event that the holder has elected a Cash Exercise in respect
      of
      some or all of the Warrant Shares to be issued pursuant hereto, the undersigned
      holder hereby exercises the right to purchase _________________ of the Shares
      (“Warrant
      Shares”)
      of
      Golden Autumn Holdings Inc., a Nevada corporation (the “Company”),
      evidenced by the attached Warrant to Purchase Shares (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    3.
      Payment of Exercise Price. The holder shall pay the Aggregate Exercise Price
      in
      the sum of $___________________ to the Company in accordance with the terms
      of
      the Warrant.

    

    4.
      Delivery of Warrant Shares. The Company shall deliver to the holder __________
      Warrant Shares in accordance with the terms of the Warrant.

    

    
      	 	
              Issue
                to: 
                ___________________________________________________

            
	 	 
	 	
              Address: 
                ___________________________________________________

            
	 	 
	 	
              Facsimile
                Number: 
                ____________________________________________

            
	 	 
	 	
              Authorization:  ________________________

            
	 	 
	 	
              By: 
                ________________________________

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Title: 
                _______________________________

            
	 	 
	 	
              Dated: 
                ______________________________

            
	 	 
	 	DTC
              Participant Number and Name (if electronic book entry transfer): 
              ____________________
	 	 
	 	Account
              Number (if electronic book entry transfer): 
              ___________________________________

    

     

    The
      undersigned holder hereby acknowledges that the execution and delivery of this
      Exercise Notice with respect to less than all of Warrant Shares shall have
      the
      same effect as cancellation of the Warrant and issuance of a new warrant
      evidencing the right to purchase the remaining number of Warrant Shares.

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGMENT

    

    The
      Company hereby acknowledges this Exercise Notice and hereby directs
      ________________________________ to issue the above indicated number of Shares
      in accordance with the Transfer Agent Instructions dated ____________________,
      2007 from the Company and acknowledged and agreed to by
      ______________________________ 

    
      	 	 	 
	 	
              GOLDEN
                AUTUMN HOLDINGS INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            
	 	    Name:
	 	    Title 

    

    

    
      
        
        

      

      
        -
          3
          -

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