Document:

Unassociated Document

    Exhibit
4.8

    

    

    September
19, 2007

    

    

    Re:  Investor
Warrants Proposal

    

    

    Dear
November 3, 2006 PIPE Investors:

    

    

    In
accordance with the provisions set in the Share Purchase Agreement and
Registration Rights Agreement associated with the November 3, 2006 PIPE
transactions, we  have incurred the following penalties:

    

    (1)   Maximum
penalty related to the delay in causing the registration statement
covering Investor
shares to be filed and declared effective and;

    

    (2)   Partial
penalty related to delay in settling related party transaction
balance.

    

    As a
result, according to our careful calculation, which was verified by our
independent auditors, we now have $2,010,000 in cash penalties payable to PIPE
transaction Investors.

    

    In order
to preserve cash in Duoyuan for business operation and growth, and to preserve
reported fiscal year 2007 US GAAP after tax net earnings, we now propose to
issue 793,421 stock purchase warrants instead of cash to PIPE transaction
Investors on a pro rata basis.  The basic terms of the warrants that
we are proposing to issue include:

    

    
      	
              (1) 

            	
              each
      warrant is exercisable into one Duoyuan common stock (adjusted for post
      reverse-split) at
      an strike price of $5.76 per share, which is 150% of the $3.84 (adjust for
      post reserve-split) PIPE
      price;

            

    

    

    (2)  each
warrant carries a call provision at 200% of the strike price

    

    (3)  the
warrants have a terms of 5 years.

    

    To assist
you in understanding the math associated with our proposed alternative, we offer
the following hypothetical scenario for your consideration.  As an
example:

    

    (1)  If
the market consensus on Duoyuan fiscal year 2009 reported US GAAP after tax
net earnings
is $23.9 million ($0.95 per share), in line to our  2008 Make-good
and;

    

    
      	
              (2) 

            	
               After
      our stock starts trading in late 2007, if the Duoyuan common stock were to
      trade at 10x market
      consensus on fiscal year 2008 reported US GAAP after tax net earnings,
      namely $9.56
      (10 X $0.95) per share (adjusted for post
  reverse-split).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (3)  The
warrants would have an intrinsic value of at least $3,015,000, which is 150% of
cash penalty
amount.  See attached table for details.

    

    We feel
that our warrants proposal offers a significant value proposition to
you.  We sincerely hope you will consider our warrant proposal as an
acceptable alternative to receiving the penalty payment in cash.

    

    Please
call Gene Bennett at 8610-6021-2222 ext 215, Duoyuan’s CFO, should you wish to
discuss these two options.  Alternatively, please check the
appropriate box on the attached form denoting your decision and fax back to Gene
Bennett at 8610-6021-2164.

    

    Thank
you!

    
      
        
          	 	 	 
	 	 	ASIAN
      FINANCIAL, INC.	 
	 	 	 	 
	
                   

                	
                   

                	/s/ Wenhua
      Guo	 
	 	 	Name:  Wenhua
      Guo	 
	 	 	Title:  Chief
      Executive Officer	 
	 	 	 	 

        

      

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Duoyuan

      Registration Penalty Warrant
Calculation

      

      
        	
                Total Shares
      Outstanding                                                         

              	 
      	
                25,000,000

              	
                     

              	 
      	
                25,000,000

              	 
      
	
                Price

              	
                $

              	
                3.84

              	 
      	
                $

              	
                9.56

              	 
      
	
                Market Cap

              	
                $

              	
                96,000,000

              	 
      	
                $

              	
                239,000,000

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                2008 Make
    Good

              	
                $

              	
                23,900,000

              	 
      	
                $

              	
                23,900,000

              	 
      
	
                P/E

              	 
      	
                4.0

              	
                x

              	 
      	
                10.0

              	
                x

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

       

      
        	 
      	
                Scenario
      One

              	 
      	
                Scenario
      Two

              	 
      
	
                Cash
Penalty

              	
                $

              	
                2,010,000

              	 
      	
                $

              	
                2,010,000

              	 
      
	
                Premium

              	 
      	
                1.5

              	 
      	 
      	
                1.5

              	 
      
	 
      	
                $

              	
                3,015,000

              	 
      	
                $

              	
                3,015,000

              	 
      
	
                Warrant Exercise
      Price

              	
                $

              	
                5.76

              	 
      	
                $

              	
                5.18

              	 
      
	
                Premium to PIPE
      Price

              	 
      	
                150

              	
                %

              	 
      	
                135

              	
                %

              
	
                Warrants

              	 
      	
                793,421

              	 
      	 
      	
                688,985

              	 
      
	
                Intrinsic
    Value

              	
                $

              	
                3,015,000

              	 
      	
                $

              	
                3,015,000

              	 
      

      

      

      Notes:

      (1) A 5 year term and a call provision
at 200% of the strike priceUnassociated Document

    Exhibit
4.9

    

    Asian
Financial, Inc.

    4/F, No.
3 Jinyuan Road

    Daxing
District Industrial Development Zone

    Beijing,
102600 China

    

    

    October
26, 2007

    

    [Investor
address]

    

    Re:
Investor Warrants Proposal Supplemental Letter

    

    Dear
Investors:

    

    We refer
to our letter to you dated September 19, 2007 relating to the Registration
Rights Agreement dated October 24, 2006, by and among Asian Financial, Inc. (the
“Company” or “we”) and the investors (the “Investors”) and our incurrence of
maximum penalty related to various Events as defined in the Registration Rights
Agreement, including but not limited to the delay in causing the registration
statement covering Investor shares to be filed and declared
effective.

    

    As stated
in our earlier letter, we calculated that we had incurred $1,883,935.96 in cash
penalties payable to the Investors and we offered two proposals for your
consideration. You have the options either to receive cash penalty in the amount
of $_______ or our warrant proposal, which will give you warrants to purchase
_________ shares of the Company in lieu of cash. As stated in our earlier
letter, warrants proposal offers a significant value proposition to you. For
those investors electing the warrant options, please provide a statement in the
form attached to this supplemental letter, even if you have sent an election
notice to the Company before. If you are making the election now, please use the
statement attached to this supplemental letter.

    

    Please
call Gene Bennett, our CFO, at 8610-6021-2222 ext 215 should you wish to discuss
these two options. Please fax back to Gene Bennett at 8610-6021-2164 if you
elect to sign the statement attached hereto.

    

    Thank
you!

    
      
        
          	 	 	 
	 	 ASIAN
      FINANCIAL, INC	 
	
                   

                	
                  By:
      

                	 	 
	 	Name: 
      	Wenhua
      Guo	 
	 	Title:
      	Chief
      Executive Officer	 
	 	 	 	 

        

      

    

    

    Attached:
Asian Financial Penalty Election

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Election
and Statement to Receive Warrant Penalty

    

    Pursuant
to the above Investor Warrants Proposal Supplemental Letter, the undersigned
hereby elects to receive the penalty payment in warrants to purchase ________
shares of Asian Financial, Inc. Upon the receipt of the warrants, the
undersigned hereby expressly acknowledges and agrees that the Company has
satisfied in full its obligations under the penalty provisions in the
Registration Rights Agreement and that the undersigned irrevocably waives any
further claim to request such penalty payment from the Company. The undersigned
further acknowledges that such warrants and shares of common stock issued or
issuable upon the exercise of the warrants are not registered under the
Securities Act of 1933, as amended, are restricted securities and can
only be
transferred if they are registered or exempt from the registration requirement.
The undersigned’s representations in Section 3.2 of the Securities Purchase
Agreement among the Company and the undersigned dated October 24, 2006 are true
and correct as of the date hereof.

    
      
        
          
            
              
                
                  
                    
                      
                        	 	 	 
	 	[Investor]	 
	 	 	 	 
	 	 	 	 
	
                                 

                              	
                                By:
      

                              	 	 
	 	Name: 
      	 	 
	 	Title:	 	 
	 	Date:
      	 	 

                      

                    

                  

                

              

            

          

        

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Election
to Receive Cash Penalty

      

      Pursuant
to the above Investor Warrants Proposal Supplemental Letter, we hereby elect to
receive the penalty payment in cash in the amount of $______.

      
         

        
          
            
              
                
                  
                    
                      
                        
                          
                            	 	 	 
	 	[Investor]	 
	 	 	 	 
	 	 	 	 
	
                                     

                                  	
                                    By:
      

                                  	 	 
	 	Name: 
      	 	 
	 	Title:	 	 
	 	Date:

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