Document:

f8k022108ex10ii_guangzhou.htm

    

     

    
      SCHEDULE
3.1(g)

      

      Capitalization:

      

      General

       

      Our
authorized capital stock consists of 75,000,000 shares of common stock at a par
value of $0.01 per share and no shares of preferred stock.

       

      Common
Stock

       

      As
of February 21, 2008 53,170,000 shares of common stock are issued and
outstanding and held by approximately 53 shareholders. Holders of our common
stock are entitled to one vote for each share on all matters submitted to a
stockholder vote.

       

      Holders
of common stock are entitled to one vote for each share of common stock owned of
record on all matters to be voted on by stockholders, including the election of
directors. The holders of common stock are entitled to receive such dividends,
if any, as may be declared from time to time by the Board of Directors, in its
discretion, from funds legally available. The common stock has no preemptive or
other subscription rights, and there are no conversion rights or redemption
provisions. All outstanding shares of common stock are validly issued, fully
paid and non-assessable.

       

      Preferred
Stock

       

      As
of February 21, 2008, we have no preferred stock authorized.

      

      Dividends

       

      We have
never declared or paid any cash dividends on shares of our capital stock. We
currently intend to retain earnings, if any, to fund the development and growth
of our business and do not anticipate paying cash dividends in the foreseeable
future.

      

      Our
payment of any future dividends will be at the discretion of our board of
directors after taking into account various factors, including our financial
condition, operating results, cash needs and growth plans.

      

      Warrants

       

      
        As
of February 21, 2008, we have 9,198,604 warrants
outstanding.  Each warrant entitles the warrant holder to one share of
our common stock. The exercise price for the warrants is $.28 per share. As the
warrants have a cashless provision, we will only receive proceeds from the
exercise of the warrants if the warrants are exercised for cash.

         

      

      Options

       

      As
of February 21, 2008, we have not granted any stock options.

      

      

      Convertible
Notes

      

      On July
31, 2007, we entered into a Securities Purchase Agreement for a total
subscription amount of $3,428,571 that included Stock Purchase Warrants and
Callable Secured Convertible Notes with Enable Growth Partners LP, Pierce
Diversified Strategy Master Fund LLC, and Enable Opportunity Partners LP
(collectively, the “Investors”).  As of the date of this Prospectus,
the Investors hold Notes aggregating $2,285,714 and are obligated to issue
additional Notes in the amount of $1,142,857.  The Callable Secured
Convertible Notes were convertible into shares of our common stock at an initial
conversion price of $0.82 per share.  We recently amended the Callable
Secured Convertible Notes, however, to reduce the conversion price to $.28 per
share.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
 

      Anti-Dilution. The Notes’
exercise/conversion price will be adjusted in certain circumstances such as if
we issue common stock at a price below those exercise/conversion prices, except
for any securities issued in connection with the Notes, if we pay a stock
dividend, subdivide or combine outstanding shares of common stock into a greater
or lesser number of shares, or take such other actions as would otherwise result
in dilution of the Investors’ position.  In particular, if, at any
time while the Notes’ are outstanding, we grant any option to purchase, or
issue, any common stock at a price per share that is lower than the conversion
price of $.28 then the exercise/ conversion price shall be reduced to equal the
lower price per share offered in such grant, issuance or sale.

       

      Warrants

      

      Based on
our aforementioned financing, we issued to the Investors and Midtown Partners,
LLC five (5) year Warrants to purchase shares of our common stock, exercisable
at $1.12 per share, except that the Warrants contain anti-dilution protections
which in certain circumstances may result in a reduction to the exercise
price.  We recently amended the warrants, however, to reduce the
exercise price to $.28 per share.  Each Warrant entitles the holder to
one share of our common stock and is exercisable for five (5) years from July
31, 2007. The Warrants are subject to registration rights.

       

      
        Enable
Growth Partners – 7,108,012

         

      

      Pierce
Diversified Strategy Master Fund LLC – 418,120

      

      Enable
Opportunity Partners – 836,236

      

      Midtown
Partners, LLC:

      

      Bruce
Jordan                                                 -           41,812

      

      Richard
Kreger                                             
-           585,365

      

      William
Crawford                                         
-           83,624

      

      Midtown Partners & Co.,
LLC                    -           125,435

      

      Total                                                             
 -           836,236

      

      Ratchet Dilution
Protection(s).  If the Company or any Subsidiary thereof, as
applicable, at any time while the Warrant is outstanding, shall sell or grant
any option to purchase, or sell or grant any right to reprice, or otherwise
dispose of or issue (or announce any offer, sale, grant or any option to
purchase or other disposition) any Common Stock entitling any Person to acquire
shares of Common Stock, at an effective price per share less than the $0.28
Exercise Price (such lower price, the “Base Share Price” and
such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share which is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then the Exercise Price shall be reduced and only reduced to
equal the Base Share Price and the number of Warrant Shares issuable hereunder
shall be increased such that the aggregate Exercise Price payable hereunder,
after taking into account the decrease in the Exercise Price, shall be equal to
the aggregate Exercise Price prior to such adjustment.  Such
adjustment shall be made whenever such Common Stock is issued.

        

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

      

      The
following table sets forth certain information regarding the ownership of our
common stock as of February 21, 2008, by: (i) each director; (ii) each person
who is known to us to be the beneficial owner of more than five percent of our
outstanding common stock; (iii) each of our executive officers named in the
Summary Compensation Table; and (iv) all our current executive officers and
directors of as a group. Except as otherwise indicated in the footnotes, all
information with respect to share ownership and voting and investment power has
been furnished to us by the persons listed. Except as otherwise indicated in the
footnotes, each person listed has sole voting power with respect to the shares
shown as beneficially owned.

       

      
        	
                Name
      and Address

              	 
      	
                Number
      of Common Shares Beneficially Owned(2)

              	 
      	 
      	
                Percent
      of Class

              	 
      
	
                Yankuan
      Li (1)

              	 
      	 
      	
                12,343,424

              	 
      	 
      	 
      	
                23.2

              	
                %

              
	
                Fintel
      Group Limited

              	 
      	 
      	
                3,503,940

              	 
      	 
      	 
      	
                6.59

              	
                %

              
	
                Yiwen
      Wu (1)

              	 
      	 
      	
                250,000

              	 
      	 
      	 
      	
                0.5

              	
                %

              
	
                Zhihan
      Hu (1)

              	 
      	 
      	
                10,000

              	 
      	 
      	 
      	
                0.02

              	
                %

              
	
                All
      directors and executive officers as a group (3 in number)
    (3)

              	 
      	 
      	
                12,603,424

              	 
      	 
      	 
      	
                23.83

              	
                %

              

      

      

      (1) The
person listed is an officer and/or director of the Company.

      (2) Based
on 53,170,000 shares of common stock issued and outstanding as of February 21,
2008.

      

      
3f8k022108ex10iii_guangzhou.htm

    SCHEDULE
3.1(i)

    

     

     

     

    Material
Changes:

    

    On
January 30, 2008, Huantong Telecom Singapore Company Pte. Ltd., a wholly owned
subsidiary of Guangzhou Global Telecom, Inc. entered into a non-binding Letter
of Intent to purchase 30% of the total authorized shares of common stock to TCAM
Technology Pte. Ltd for a total of S$200,000 and 3,000,000 shares of Guangzhou
Global Telecom, Inc.’s common stock (the “Purchase Price”).  The
Purchase Price shall be delivered within 15 days of execution of the official
agreement linking the parties to this transaction.

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