Document:

AMENDED
AND RESTATED SECURITY AGREEMENT

     

    THIS AMENDED AND RESTATED SECURITY
AGREEMENT (this “Agreement”), dated as of
December 2, 2009, is made by and among Protalex, Inc. a Delaware corporation,
(the “Grantor”), and
Niobe Ventures, LLC (the “Secured Party”) and amends and
restates in its entirety the Security Agreement dated as of November 11, 2009 by
and between Grantor and Secured Party.

     

    WHEREAS, the Grantor has
issued to the Secured Party a senior secured convertible promissory note in the
principal amount of One Million Dollars ($1,000,000) (such note, as amended or
modified from time to time, the “First Note”).

     

    WHEREAS, the Grantor has
agreed to make additional loans to the Secured Party (the “Additional Loans”) of
up to Two Million Dollars ($2,000,000) pursuant to a Credit Facility Agreement
dated as of December 1, 2009, each such Additional Loan to be represented by a
Senior Secured Convertible Promissory Note similar to the Note (a “CF Note”).

     

    WHEREAS, the Grantor and the
Secured Party have agreed to execute and deliver this Agreement, among other
things, to secure the obligations of the Grantor under the First Note and the CF
Notes (hereinafter collectively the “Notes”).

     

    The
Grantor and the Secured Party hereby agree as follows:

     

    SECTION 1.  Definitions;
Interpretation.

     

    (a)     
As used in this Agreement, the following terms shall have the following
meanings:

     

    “Collateral” means the property
described on Exhibit
A attached hereto and all Negotiable Collateral and Intellectual Property
to the extent not described on Exhibit A, except (i)
to the extent any such property is nonassignable by its terms without the
consent of the licensor thereof or another party (but only to the extent such
prohibition on transfer is enforceable under applicable law, including, without
limitation, applicable provisions of the New York Uniform
Commercial Code as amended or supplemented from time to time.), or (ii) the
granting of a security interest in such property is contrary to applicable law,
provided that upon the cessation of any such restriction or prohibition, such
property shall automatically become part of the Collateral.

     

    “Copyrights” means any and all
copyright rights, copyright applications, copyright registrations and like
protections in each work of authorship and derivative work thereof, whether
published or unpublished and whether or not the same also constitutes a trade
secret, now or hereafter existing, created, acquired or held.

     

    “Event of Default” has the
meaning set forth in the Notes.

     

    “Intellectual Property” means
all of Grantor’s right, title, and interest in and to the following, except to
the extent any security interest hereunder would cause any application for a
Trademark to be deemed invalidated, canceled or abandoned due to the grant
and/or enforcement of such security interest, including, without limitation, all
U.S. trademark applications that are based on an intent-to-use, unless and until
such time that the grant and/or enforcement of the security interest will not
affect the status or validity of such trademark:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	
              (a)

            	
              Copyrights,
      Trademarks and Patents;

            

    

     

    
      	
               
      

            	
              (b)

            	
              and
      all trade secrets, and any and all intellectual property rights in
      computer software and computer software products now or hereafter
      existing, created, acquired or
held;

            

    

     

    
      	
               
      

            	
              (c)

            	
              and
      all design rights which may be available to Grantor now or hereafter
      existing, created, acquired or
held;

            

    

     

    
      	
               
      

            	
              (d)

            	
              and
      all claims for damages by way of past, present and future infringement of
      any of the rights included above, with the right, but not the obligation,
      to sue for and collect such damages for said use or infringement of the
      intellectual property rights identified
above;

            

    

     

    
      	
               
      

            	
              (e)

            	
              licenses
      or other rights to use any of the Copyrights, Patents or Trademarks, and
      all license fees and royalties arising from such use to the extent
      permitted by such license or
rights;

            

    

     

    
      	
               
      

            	
              (f)

            	
              amendments,
      renewals and extensions of any of the Copyrights, Trademarks or Patents;
      and

            

    

     

    
      	
               
      

            	
              (g)

            	
              proceeds
      and products of the foregoing, including without limitation all payments
      under insurance or any indemnity or warranty payable in respect of any of
      the foregoing.

            

    

     

    “Lien” means any mortgage, deed
of trust, pledge, security interest, assignment, deposit arrangement, charge or
encumbrance, lien, or other type of preferential arrangement.

     

    “Obligations” means the
indebtedness, liabilities and other obligations of the Grantor to the Secured
Party under Notes including without limitation, the unpaid principal of the
Notes and all interest accrued thereon payable by the Grantor to the Secured
Party thereunder or in connection therewith.

     

    “Patents” means all patents,
patent applications and like protections, including, without limitation,
improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same.

     

    “Permitted Liens” mean: (i)
Liens in favor of the Secured Party in respect of the Obligations hereunder;
(ii) Liens for taxes, fees, assessments or other governmental charges or levies,
either not delinquent or being contested in good faith by appropriate
proceedings and which are adequately reserved for in accordance with GAAP; (iii)
Liens of materialmen, mechanics, warehousemen, carriers or employees or other
like Liens arising in the ordinary course of business and securing obligations
either not delinquent or being contested in good faith by appropriate
proceedings; (iv) Liens consisting of deposits or pledges to secure the payment
of worker’s compensation, unemployment insurance or other social security
benefits or obligations, or to secure the performance of bids, trade contracts,
leases, public or statutory obligations, surety or appeal bonds or other
obligations of a like nature incurred in the ordinary course of business; (v)
easements, rights of way, servitudes or zoning or building restrictions and
other minor encumbrances on real property and irregularities in the title to
such property which do not in the aggregate materially impair the use or value
of such property or risk the loss or forfeiture of title thereto; and (vi) Liens
upon or in any equipment now or hereafter acquired or held by the Grantor to
secure the purchase price of such equipment or indebtedness incurred solely for
the purpose of financing or refinancing the acquisition of such equipment,
provided that the Lien is confined solely to the equipment so acquired and
accessions thereon and proceeds thereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Person” means an individual,
corporation, partnership, joint venture, trust, unincorporated organization,
governmental agency or authority, or any other entity of whatever
nature.

     

    “Trademarks” means any
trademark and service mark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the parts of
the goodwill of the business connected with the use of and symbolized by such
marks.

     

    “UCC” means the Uniform
Commercial Code as the same may, from time to time, be in effect in the State of
New York.

     

    (b)     Where
applicable and except as otherwise defined herein, terms used in this Agreement
shall have the meanings assigned to them in the UCC.

     

    (c)      In
this Agreement, (i) the meaning of defined terms shall be equally
applicable to both the singular and plural forms of the terms defined;
(ii) the captions and headings are for convenience of reference only and
shall not affect the construction of this Agreement; (iii) the words “hereof,”
“herein,” “hereto,” “hereunder” and the like mean and refer to this Agreement as
a whole and not merely to the specific Article, Section, subsection, paragraph
or clause in which the respective word appears; (iv) the words “including,”
“includes” and “include” shall be deemed to be followed by the words “without
limitation;” and (v) the term “or” shall not be limiting.

     

    SECTION 2.  Security
Interest.

     

    (a)           Subject
to the Permitted Liens, as security for the payment and performance of the
Obligations, the Grantor hereby pledges, assigns and grants to the Secured Party
a security interest in all of the Grantor’s right, title and interest in, to and
under all of the Collateral (other than as set forth in Section 2(b)
hereof).

     

    (b)           Notwithstanding
the foregoing, except for fixtures (to the extent covered by Article 9 of
the UCC), such grant of a security interest shall not extend to, and the term
“Collateral” shall not include, any asset which would be real property under the
law of the jurisdiction in which it is located.

     

    (c)           This
Agreement shall create a continuing security interest in the Collateral that
shall remain in effect until terminated in accordance with the provisions
hereof.

     

    SECTION 3. Financing Statements,
Etc.  The Grantor hereby authorizes the Secured Party to file
(with a copy thereof to be provided to the Grantor contemporaneously therewith),
at any time and from time to time thereafter, all financing statements,
financing statement assignments, continuation financing statements, and UCC
filings, in form reasonably satisfactory to the Secured Party.  The
Grantor shall execute and deliver and shall take all other action, as the
Secured Party may reasonably request, to perfect and continue perfected,
maintain the priority of or provide notice of the security interest of the
Secured Party in the Collateral (subject to the terms hereof) and to accomplish
the purposes of this Agreement.  Without limiting the generality of
the foregoing, the Grantor ratifies and authorizes the filing by the Secured
Party of any financing statements filed prior to the date hereof that accomplish
the purposes of this Agreement.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    SECTION 4. Representations and
Warranties.  The Grantor represents and warrants to the Secured
Party that:

     

    (a)           Grantor
is a business entity duly formed, validly existing and in good standing under
the law of the jurisdiction of its organization and has all requisite power and
authority to execute, deliver and perform its obligations under this
Agreement.

     

    (b)           The
execution, delivery and performance by the Grantor of this Agreement has been
duly authorized by all necessary corporate action of the Grantor, and this
Agreement constitutes the legal, valid and binding obligation of the Grantor,
enforceable against the Grantor in accordance with its terms, except as limited
by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other laws of general application affecting enforcement of
creditors’ rights generally, as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable
remedies.

     

    (c)           Except
for the filing of appropriate financing statements, no authorization, consent,
approval, license, exemption of, or filing or registration with, any
governmental authority or agency, or approval or consent of any other Person, is
required for the due execution, delivery or performance by the Grantor of this
Agreement unless the same has already been obtained or is being obtained
simultaneously in connection herewith.

     

    (d)           This
Agreement creates a security interest that is enforceable against the Collateral
in which the Grantor now has rights and will create a security interest that is
enforceable against the Collateral in which the Grantor hereafter acquires
rights at the time the Grantor acquires any such rights.

     

    (e)           The
Grantor has the right and power to grant the security interests in the
Collateral to the Secured Party in the Collateral, and the Grantor is the sole
and complete owner of the Collateral, free from any Lien other than the
Permitted Liens.

     

    SECTION 5.  Covenants of the
Grantor.  Until this Agreement has terminated in accordance
with the terms hereof, the Grantor agrees to do the following:

     

    (a)           The
Grantor shall give prompt written notice to the Secured Party (and in any event
not later than ten (10) days following any change described below in this
subsection) of: (i) any change in the Grantor’s name; (ii) any changes in the
Grantor’s identity or structure in any manner which might make any financing
statement filed hereunder incorrect or misleading; or (iii) any change in
jurisdiction of organization; provided that the
Grantor shall not locate any Collateral outside of the United States nor shall
the Grantor change its jurisdiction of organization to a jurisdiction outside of
the United States.

     

    (b)           The
Grantor shall not surrender or lose possession of, sell, lease, rent or
otherwise dispose of or transfer any of the Collateral or any right or interest
therein, except in the ordinary course of business consistent with past practice
and except to the extent of equipment that is obsolete or no longer useful to
its business.

     

    (c)           The
Grantor shall keep the Collateral free of all Liens except the Permitted
Liens.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    SECTION 6.  Collection of
Accounts.  The Grantor shall endeavor in the first instance
diligently to collect all amounts due or to become due on or with respect to the
accounts and other rights to payment.

     

    SECTION 7. Authorization; Secured Party
Appointed Attorney-in-Fact.  The Secured Party shall have the
right, to, in the name of the Grantor, or in the name of the Secured Party or
otherwise, upon notice to, but without the requirement of assent by the Grantor,
and the Grantor hereby constitutes and appoints the Secured Party (and any
employees or agents designated by a Secured Party) as the Grantor’s true and
lawful attorney-in-fact, with full power and authority to:  (i)
assert, adjust, sue for, compromise or release any claims under any policies of
insurance; and (ii), execute any and all such other documents and instruments,
and do any and all acts and things for and on behalf of the Grantor, that such
Secured Party may deem necessary or advisable to maintain, protect, realize upon
and preserve the Collateral and the Secured Party’s security interests therein
and to accomplish the purposes of this Agreement.  The Secured Party
agrees that, except upon and during the continuance of an Event of Default, it
shall not exercise the power of attorney, or any rights granted to the Secured
Party under this Section 7.  The foregoing power of attorney is
coupled with an interest and is irrevocable so long as the Obligations have not
been indefeasibly paid and performed in full and the commitments not
terminated.  The Grantor hereby ratifies, to the extent permitted by
law, all that the Secured Party shall lawfully and in good faith do or cause to
be done by virtue of and in compliance with this Section 7.

     

    SECTION 8. Remedies.

     

    (a)           Upon
the occurrence and during the continuance of an Event of Default, the Secured
Party shall have, in addition to all other rights and remedies granted to the
Secured Party in this Agreement or the Notes, all rights and remedies of a
secured party under the UCC and other applicable laws. Without limiting the
generality of the foregoing, upon the occurrence and during the continuance of
an Event of Default, the Secured Party may sell, resell, lease, use, assign,
license, sublicense, transfer or otherwise dispose of any or all of the
Collateral in its then condition or following any commercially reasonable
preparation or processing (utilizing in connection therewith any of Grantor’s
assets, without charge or liability to any Secured Party therefor) at public or
private sale, by one or more contracts, in one or more parcels, at the same or
different times, for cash or credit, or for future delivery without assumption
of any credit risk, all as the Secured Party deem advisable; provided, however,
that the Grantor shall be credited with the net proceeds of sale only when such
proceeds are finally collected by the Secured Party.  Each Secured
Party shall have the right upon any such public sale, and, to the extent
permitted by law, upon any such private sale, to purchase the whole or any part
of the Collateral so sold, free of any right or equity of redemption, which
right or equity of redemption the Grantor hereby releases, to the extent
permitted by law.  The Grantor hereby agrees that the sending of
notice by ordinary mail, postage prepaid, to the address of the Grantor set
forth herein or subsequent address that the Grantor provides to the Secured
Party in writing, of the place and time of any public sale or of the time after
which any private sale or other intended disposition is to be made, shall be
deemed reasonable notice thereof if such notice is sent ten (10) business days
prior to the date of such sale or other disposition or the date on or after
which such sale or other disposition may occur.

     

    (b)           The
cash proceeds actually received from the sale or other disposition or collection
of the Collateral, and any other amounts received in respect of the Collateral
the application of which is not otherwise provided for herein shall be applied
first, to the
payment of the reasonable costs and expenses of the Secured Party in exercising
or enforcing their rights hereunder and in collecting or attempting to collect
any of the Collateral, and to the payment of all other amounts payable to the
Secured Party pursuant to Section 12 hereof; and second, to the
payment of the Obligations.  Any surplus thereof that exists after
payment and performance in full of the Obligations shall be promptly paid over
to the Grantor or otherwise disposed of in accordance with the UCC or other
applicable law.  The Grantor shall remain liable to the Secured Party
for any deficiency that exists after any sale or other disposition or collection
of the Collateral.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    SECTION 9.  Certain
Waivers.

     

    (a)           The
Grantor waives, to the fullest extent permitted by law:  (i) any
right of redemption with respect to the Collateral, whether before or after sale
hereunder, and all rights, if any, of marshalling of the Collateral or other
collateral or security for the Obligations; (ii) any right to require the
Secured Party to:  (A) proceed against any Person,
(B) exhaust any other collateral or security for any of the Obligations,
(C) pursue any remedy in the Secured Party’s power or (D) except as
provided herein or in any of the Notes, make or give any presentments, demands
for performance, notices of nonperformance, protests, notices of protests or
notices of dishonor in connection with any of the Collateral; and (iii) all
claims, damages and demands against the Secured Party arising out of the
repossession, retention, sale or application of the proceeds of any sale of the
Collateral.

     

    SECTION 10. Notices.  All
notices or other communications which are required or permitted hereunder shall
be in writing and sufficient if delivered personally or sent by
nationally-recognized overnight courier or by registered or certified mail,
postage prepaid, return receipt requested or by facsimile, with confirmation as
provided above addressed as follows:

     

    If to Grantor:

    

    Protalex, Inc.

    145 Union Square Drive

    New Hope, PA 18938

    Attention:  Chief Financial
Officer

    

    With copies to

    

    Morse,
Zelnick, Rose & Lander LLP

    405 Park
Avenue, Suite 1401

    New York,
NY 10022

    Attention:  Kenneth
S. Rose, Esq.

    Fax:  212-208-6809

    

    If to the Secured
Party:

    

    Niobe Ventures, LLC

    c/o Arnold P. Kling

    712 Fifth Avenue, 11th
Floor

    New York, NY 10019

    Attention: Arnold Kling, Managing
Member

    Fax:  212-713-1818

    
      
         

      

      
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    With a copy to

    

    Morse,
Zelnick, Rose & Lander LLP

    405 Park
Avenue, Suite 1401

    New York,
NY  10022

    Attention:  Kenneth
S. Rose, Esq.

    Fax:  212-838-5030

    

    SECTION 11. No Waiver; Cumulative
Remedies.  No failure on the part of the Secured Party to
exercise, and no delay in exercising, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, remedy, power or privilege preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights and remedies under this Agreement are
cumulative and not exclusive of any rights, remedies, powers and privileges that
may otherwise be available to the Secured Party.

     

    SECTION 12. Costs and
Expenses.  The Grantor agrees to pay all reasonable costs and
expenses of the Secured Party, in connection with the enforcement and
preservation of any rights or interests under, this Agreement and the
protection, sale or collection of, or other realization upon, any of the
Collateral, including all reasonable expenses of taking, collecting, holding,
sorting, handling, preparing for sale, selling or the like and other such
expenses of sales and collections of the Collateral.

     

    SECTION 13. Binding
Effect.  This Agreement shall be binding upon, inure to the
benefit of and be enforceable by the Grantor, the Secured Party and their
respective successors and assigns.

     

    SECTION 14. Governing Law. This
Agreement shall be governed by and construed under the laws of the State of New
York without regard to principles of conflict of laws.

     

    SECTION 15. Entire Agreement;
Amendment.  This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and shall not be amended
except by the written agreement of the Grantor and the Secured
Party.  Notwithstanding the foregoing, this Agreement may not be
amended and any term hereunder may not be waived with respect to any Secured
Party without the written consent of such Secured Party unless such amendment or
waiver applies to all Secured Party in the same fashion.

     

    SECTION 16. Severability.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be valid, legal and enforceable under all applicable laws and
regulations.  If, however, any provision of this Agreement shall be
invalid, illegal or unenforceable under any such law or regulation in any
jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform
to the minimum requirements of such law or regulation, or, if for any reason it
is not deemed so modified, it shall be invalid, illegal or unenforceable only to
the extent of such invalidity, illegality or limitation on enforceability
without affecting the remaining provisions of this Agreement, or the validity,
legality or enforceability of such provision in any other
jurisdiction.

     

    SECTION 17. Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    SECTION 18. Termination.  Upon
the payment and performance in full of all Obligations, this Agreement shall
terminate and the Secured Party shall promptly, at the cost of the Grantor,
execute and deliver to the Grantor such documents and instruments reasonably
requested by the Grantor as shall be necessary to evidence termination of all
security interests given by the Grantor to the Secured Party hereunder;
provided, however, that the obligations of the Grantor under Section 12 hereof
shall survive such termination.

    

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

    

    
      
        
          
            
              	 
      	
                      GRANTOR:

                    
	 
      	 
      
	 
      	
                      PROTALEX,
      INC.

                    
	 	 
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Kirk
      M. Warshaw, Chief Financial Officer

                    
	 
      	 
      	 
      
	 
      	
                      NIOBE
      VENTURES, LLC

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	
                      Arnold
      P. Kling,
Manager

                    

            

          

        

      

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    COLLATERAL
DESCRIPTION ATTACHMENT TO SECURITY AGREEMENT

     

    
      
        
          	
                  DEBTOR

                	 
      	
                  PROTALEX,
      INC., a Delaware corporation

                
	 
      	 
      	 
      
	
                  SECURED
      PARTY:

                	 
      	
                  Niobe
      Ventures, LLC

                

        

      

    

     

    All
personal property of Grantor (herein referred to as “Grantor” or “Debtor”)
whether presently existing or hereafter created or acquired, and wherever
located including, without limitation:

     

    
      	
              (a)

            	
              all
      accounts (including health-care-insurance receivables), chattel paper
      (including tangible and electronic chattel paper), deposit accounts,
      documents (including negotiable documents), equipment (including all
      accessions and additions thereto), general intangibles (including payment
      intangibles and software), goods (including fixtures), instruments
      (including promissory notes), inventory (including all goods held for sale
      or lease or to be furnished under a contract of service, and including
      returns and repossessions), investment property (including securities and
      securities entitlements), letter of credit rights, money, and all
      of Grantor’s books and records with respect to any of the foregoing,
      and the computers and equipment containing said books and records;
      provided that notwithstanding the foregoing, "Collateral" shall not
      include more than 65% of the stock of any subsidiary that is not
      incorporated, formed or organized under the laws of the United States, any
      state thereof or the District of Columbia (a "Foreign Subsidiary"), or
      more than 65% of the stock of any subsidiary substantially all of the
      assets of which are stock in Foreign
  Subsidiaries;

            

    

     

    
      	
              (b)

            	
              all
      common law and statutory copyrights and copyright registrations,
      applications for registration, now existing or hereafter arising, in the
      United States of America or in any foreign jurisdiction, obtained or to be
      obtained on or in connection with any of the foregoing, or any parts
      thereof or any underlying or component elements of any of the foregoing,
      together with the right to copyright and all rights to renew or extend
      such copyrights and the right (but not the obligation) of Secured Party to
      sue in their own name and/or in the name of the Debtor for past,
      present and future infringements of
copyright;

            

    

     

    
      	
              (c)

            	
              all
      trademarks, service marks, trade names and service names and the goodwill
      associated therewith, together with the right to trademark and all rights
      to renew or extend such trademarks and the right (but not the obligation)
      of Secured Party to sue in their own name and/or in the name of the
      Debtor for past, present and future infringements of
      trademark;

            

    

     

    
      	
              (d)

            	
              all
      (i) patents and patent applications filed in the United States Patent and
      Trademark Office or any similar office of any foreign jurisdiction, and
      interests under patent license agreements, including, without limitation,
      the inventions and improvements described and claimed therein, (ii)
      licenses pertaining to any patent whether Debtor is licensor
      or  licensee, (iii) income, royalties, damages, payments,
      accounts and accounts receivable now or hereafter due and/or payable under
      and with respect thereto, including, without limitation, damages and
      payments for past, present or future infringements thereof, (iv) right
      (but not the obligation) to sue in the name of Debtor and/or in the name
      of Secured Party for past, present and future infringements thereof, (v)
      rights corresponding thereto throughout the world in all jurisdictions in
      which such patents have been issued or applied for, and (vi) reissues,
      divisions, continuations, renewals, extensions and continuations-in-part
      with respect to any of the foregoing;
and

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (e)

            	
              any
      and all cash proceeds and/or non-cash proceeds of any of the foregoing,
      including, without limitation, insurance proceeds, and all supporting
      obligations and the security therefor or for any right to
      payment.  All terms above have the meanings given to them in
      the New York Uniform Commercial Code, as amended or supplemented
      from time to time.Unassociated Document

    Exhibit
4.1

    

    THIS
NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE
SECURITIES LAWS.  THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE
UPON CONVERSION OF THIS NOTE MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND UNDER APPLICABLE STATE
SECURITIES LAWS AS TO THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS NOTE OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO YI
XIN INTERNATIONAL COPPER, INC. THAT SUCH REGISTRATION IS NOT
REQUIRED.

    

    
      	
              CN
      - _____

            	
              Dated:______________

            

    

    10%
CONVERTIBLE NOTE

    

    FOR VALUE
RECEIVED, YI XIN INTERNATIONAL, INC., a Delaware corporation (the “Company”), hereby
promises to pay to the order of _______________________, or its assigns (the
“Holder”),
without demand, the sum of __________________ ($____________), with simple
interest accruing at the rate described below.

    

    This Note
is being issued pursuant to a Subscription Agreement that is one of a series of
Subscription Agreements among the Company and the initial holders of the Company
Notes (as defined below) which Subscription Agreements (collectively, the “Subscription
Agreements”) were entered into in connection with a Private Offering
Memorandum prepared by the Company and dated October __, 2009. Capitalized terms
used herein and not otherwise defined have the respective meanings ascribed
thereto in the Subscription Agreement.

    

    ARTICLE
I

    GENERAL
PROVISIONS

    

    1.1           Payments.  Interest
payable on the outstanding principal of this Note shall accrue from the Closing
Date at a rate per annum (the “Interest Rate”) equal
to ten percent (10%), subject to adjustment pursuant to Section 1.2 (the “Interest”).  Interest
shall be compounded annually, and shall be payable on each anniversary of the
date hereof (the “Closing
Date”).  Interest shall be computed for actual days elapsed on
the basis of a 360 day year consisting of twelve 30-day months. The principal of
this Note (the “Principal”) and
accrued but unpaid Interest thereon shall, unless earlier converted, be payable
in full on the date that shall be twelve (12) months after the Closing Date or
the closing of a public offering by the Company of the common stock of the
Company pursuant to an effective registration statement under the Securities Act
of 1933, as amended (the “Securities Act”)
resulting in gross proceeds to the Company before deducting any discounts, fees
or costs associated with the offering) of not less than $10,000,000 following
the date hereof, whichever is earlier (the “Maturity Date”). On
the Maturity Date, the Holder shall deliver, by hand or nationally recognized
overnight delivery service, to the Company at its principal executive offices
this Note.  Payment of the outstanding Principal and Interest on the
Maturity Date shall be made by the Company to the Holder against receipt of this
Note (as provided in this Section 1.1).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Upon any
conversion in part by the Holder in accordance with Article II, the Holder and
the Company shall in good faith recalculate the outstanding Principal balance
and the Interest payable with respect to the converted portion.  Upon
any full conversion by the Holder in accordance with Article II, all of the
payments of Principal due hereunder shall terminate and no further Interest
shall accrue. All payments in respect of the Principal or Interest shall be made
in cash in U.S. dollars and in immediately available funds, and payments shall
be applied first to Interest and then to Principal and thereafter to charges and
expenses owing under or in connection with this Note.  Each conversion
hereof shall constitute the re-affirmation by the Holder that the
representations and warranties contained in the Subscription Agreement are true
and correct in all material respects with respect to the Holder as of the time
of such conversion.

    

    1.2           Default
Interest.   Any amount of Principal or Interest which is
not paid when due shall bear interest at the rate of fifteen percent (15%) per
annum from the due date thereof until the same is paid (“Default
Interest”).

    

    1.3           Conversion
Rights.  The conversion rights set forth in Article II shall
remain in full force and effect immediately from the date hereof and until the
Note is paid in full or converted in full regardless of the occurrence of an
Event of Default.  The Note shall be payable in full on the Maturity
Date as provided in Section 1.1, except to the extent previously converted into
Company common stock (the “Common Stock”) in
accordance with Article II hereof.

    

    1.4           Prepayment
Option.  At any time after the Effective Date (defined below),
the Company may prepay in cash all or any portion of the outstanding principal
amount of this Note upon ten (10) days prior written notice to the Holder at a
price equal to one hundred ten percent (110%) of the outstanding principal
amount of this Note plus accrued Interest. Notwithstanding the foregoing, the
Company may effect a prepayment only upon the earlier of: (i) the Effective
Date, or (ii) the date upon which the Conversion Shares become eligible for sale
pursuant to Rule 144 under the Securities Act of 1933. “Effective Date” has
the meaning provided in the Registration Rights Agreement.

    

    ARTICLE
II

    CONVERSION
RIGHTS

    

    The
Holder shall have the right to convert the Principal and accrued and unpaid
Interest due under this Note into shares of the Company’s Common Stock, as set
forth below.  Shares of stock issuable upon conversion of the Note may
be referred to as “Conversion
Shares.”

    
      
         

      

      
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    2.1         Conversion
into the Company’s Common Stock.

    

    (a)           The
Holder shall have the right from and after the date of the issuance of this Note
and then at any time until this Note is fully paid, to convert any outstanding
and unpaid Principal portion of this Note, and accrued Interest on such portion,
at the election of the Holder into fully paid and non-assessable shares of
Common Stock, or any shares of capital stock of the Company into which such
Common Stock shall hereafter be changed or reclassified (the “Conversion Shares”),
at the conversion price as defined in Section 2.1(b) hereof (the “Conversion Price”),
determined as provided herein.  Upon delivery to the Company at its
principal offices of a completed Notice of Conversion (in the form attached
hereto), together with this Note (the date of such delivery being a “Conversion Date”),
the Company shall issue and deliver to the Holder within five (5) business days
from the Conversion Date that number of shares of Common Stock for the portion
of the Note and related Interest converted in accordance with the
foregoing.  The number of shares of Common Stock to be issued upon
each conversion of this Note shall be determined by dividing that portion of the
Principal of the Note and accrued Interest to be converted, by the Conversion
Price.  No fractional shares will be issued and any portion of the
Principal and accrued Interest attributable to any such unissued fractional
share shall be refunded to the Holder.  Notwithstanding anything in
Section 4.2 to the contrary, to be effectively delivered, a Notice of Conversion
(together with this Note), must actually be received by the Company in order to
be considered delivered.

    

    (b)           Subject
to adjustment as provided in Section 2.1(c) hereof, the Conversion Price per
share shall be $0.78.

    

    (c)           The
Conversion Price and number and kind of share of Common Stock or to be issued
upon conversion determined pursuant to Section 2.1(a), shall be subject to
adjustment from time to time upon the happening of certain events while this
Note remains outstanding, as follows:

     

    (i)          Reorganization,
Consolidation, Merger, etc. In case at any time or from time to time, the
Company shall effect any merger, reorganization, restructuring, reverse stock
split, consolidation, sale of all or substantially all of the Company’s assets
or any similar transaction or related transactions (each such transaction, a
“Fundamental
Change”), then, in each such case, as a condition to the consummation of
such a transaction, proper and adequate provision shall be made by the Company
whereby the Holder of this Note, on the Conversion Date, with respect to any
conversion occurring at any time after the occurrence of such Fundamental
Change, shall receive, in lieu of the Common Stock (or other securities)
issuable on such conversion prior to the occurrence of such Fundamental Change,
the stock and other securities and property (including cash) to which such
Holder would have been entitled upon the occurrence of a Fundamental Change if
such Holder had so converted this Note, immediately prior thereto, all subject
to further adjustment thereafter as provided herein.

     

    If the
Company at any time shall, by reclassification or otherwise, change the Common
Stock into the same or a different number of securities of any class or classes
that may be issued or outstanding, this Note, as to the unpaid Principal portion
thereof and accrued Interest thereon, shall thereafter be deemed to evidence the
right to be issued an adjusted number of such securities and kind of securities
as would have been issuable upon conversion of this Note as the result of such
change with respect to the Common Stock immediately prior to such
reclassification or other change.

    
      
         

      

      
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    (ii)           Dissolution. In the
event of any dissolution of the Company following the transfer of all or
substantially all of its properties or assets, the Company, prior to such
dissolution, shall at its expense deliver or cause to be delivered the stock and
Other Securities and Property receivable by the Holder of this Note after the
effective date of such dissolution pursuant to this Article II to a bank or
trust company (a “Trustee”) having its
principal office in New York, New York, as trustee for the Holder.

    

    (iii)           Continuation of
Terms. Upon any Fundamental Change or transfer (and any dissolution
following any transfer) referred to in this Article II, this Note shall continue
in full force and effect and the terms hereof shall be applicable to any other
securities and property receivable on the conversion of this Note after the
consummation of such Fundamental Change or transfer or the effective date of
dissolution following such transfer, as the case may be, and shall be binding
upon the issuer of any other securities and property, including, in the case of
any such transfer, the person acquiring all or substantially all of the
properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Note as provided in Section 2.1(c)(iv). In
the event this Note does not continue in full force and effect after the
consummation of the transaction described in this Article II, then only in such
event will the Company’s securities and property (including cash, where
applicable) receivable by the Holder of the Notes be delivered to the Trustee as
contemplated by Section 2.1(c)(ii).

    

    (iv)           Extraordinary Events
Regarding Common Stock. In the event that the Company shall (A) issue
additional shares of Common Stock as a dividend or other distribution on
outstanding Common Stock, (B) subdivide its outstanding shares of Common Stock,
or (C) combine its outstanding shares of Common Stock into a smaller number of
shares of Common Stock, then, in each such event, the Conversion Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the
then Conversion Price by a fraction, the numerator of which shall be the number
of shares of Common Stock outstanding immediately prior to such event and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately after such event, and the product so obtained shall thereafter be
the Conversion Price then in effect. The Conversion Price, as so adjusted, shall
be readjusted in the same manner upon the happening of any successive event or
events described in this Section 2.1(c)(iv). The number of Conversion Shares
that the Holder of this Note shall thereafter, on the conversion hereof as
provided in Article II, be entitled to receive shall be adjusted to a number
determined by multiplying the number of Conversion Shares that would otherwise
(but for the provisions of this Section 2.1(c)(iv)) be issuable on such
conversion by a fraction of which (x) the numerator is the Conversion Price that
would otherwise (but for the provisions of this Section 2.1(c)(iv)) be in
effect, and (y) the denominator is the Conversion Price in effect on the date of
such conversion.

    

    (d)           Effectiveness of
Adjustment. An adjustment to the Conversion Price or to the number of
Conversion Shares issuable hereunder, shall become effective immediately after
the payment date in the case of each dividend or distribution and immediately
after the effective date of each other event which requires an
adjustment.

    

    (e)           Notice of Adjustment.
Upon the happening of any event requiring an adjustment of the Conversion Price,
the Company shall promptly give written notice thereof to the Holder at the
address appearing in the records of the Company, stating the adjustments
resulting from such event and setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is
based.  Failure to give such notice to the Holder or any defect
therein shall not affect the legality or validity of the subject
adjustment.

    
      
         

      

      
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    (f)  
  Accredited
Investor Status.  In no event may the Holder convert this Note
into Conversion Shares unless, at the time of such conversion, Holder is an
“accredited investor” as defined in Regulation D under the Securities
Act.  This Warrant may be transferred only to “accredited
investors.”

    

    2.2         Method of
Conversion.  This Note may be converted by the Holder in whole
or in part as described in Section 2.1(a) hereof and the Subscription Agreement.
Upon partial conversion of this Note, a new Note containing the same date and
provisions of this Note shall, at the request of the Holder, be issued by the
Company to the Holder for the remaining Principal balance of this Note and
Interest which shall not have been paid.

    

    2.3         Conversion
of Note.

    

    (a)           Upon
the conversion of a Note or part thereof, the Company shall, at its own cost and
expense, take all necessary action, including obtaining and delivering an
opinion of counsel, to assure that the Company’s transfer agent shall issue
stock certificates in the name of Holder (or its nominee) or such other persons
as designated by Holder and in such denominations to be specified at conversion
representing the number of shares of Common Stock issuable upon such
conversion.  The Company warrants that no instructions other than
these instructions have been or will be given to the transfer agent of the
Company’s Common Stock.  In the event of any partial conversion of
this Note, the Company shall issue to the Holder a replacement Note reflecting
the then outstanding Principal.

    

    (b)           Nothing
contained herein or in any document referred to herein or delivered in
connection herewith shall be deemed to establish or require the payment of a
rate of interest or other charges in excess of the maximum permitted by
applicable law.

    

    2.4         Reservation
of Conversion Shares.  During the period the conversion right
exists pursuant to Article II, the Company shall reserve and keep available out
of its authorized but unissued shares of Common Stock, solely for the purpose of
providing for the exercise of the Company Notes, such number of shares of Common
Stock as shall from time to time equal the number of shares sufficient to permit
the conversion of the Company Notes in accordance with their respective terms.
The Company agrees that all Conversion Shares issued upon due conversion of the
Notes shall be, at the time of delivery of the certificates for such Conversion
Shares, duly authorized, validly issued, fully paid and non-assessable shares of
Common Stock of the Company.  The Company agrees that its issuance of
this Note shall constitute full authority to its officers, agents and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary certificates for shares of Common Stock upon
the conversion of this Note and accrued Interest as provided for
herein.

    
      
         

      

      
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    2.5           Beneficial
Ownership Limitation.
Notwithstanding anything to the contrary set forth in Article II of this
Note, at no time may the Holder convert all or a portion of this Note if the
number of Conversion Shares to be issued pursuant to such conversion, when
aggregated with all other shares of Common Stock beneficially owed by the Holder
at such time (including pursuant to any other convertible securities of the
Company), would result in the Holder beneficially owning (as determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
and the rules thereunder) more than 9.99% of all of the Common Stock outstanding
at such time. Notwithstanding anything to the contrary contained herein, the
limitation on conversion of this Note may be waived by written agreement between
the Holder and the Company; provided, however, such waiver
may not be effective less than sixty-one (61) days from the date
thereof.

    

    ARTICLE
III

    EVENTS OF
DEFAULT

    

    The
occurrence of any of the following events of default (each an “Event of Default”),
if not cured within a reasonable period of time after of notice of such event is
received by the Company from the Holder shall, at the option of the Holder
hereof, make all sums of Principal and Interest then remaining unpaid hereon and
all other amounts payable hereunder immediately due and payable, upon
demand:

    

    3.1           Failure
to Pay Principal or Interest.  The Company fails to pay any
installment of Principal, Interest or other sum due under this
Note.

    

    3.2           Receiver
or Trustee.  The Company shall make an assignment for the
benefit of creditors, or apply for or consent to the appointment of a receiver
or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee shall otherwise be appointed.

    

    3.3           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Company and if instituted against the Company are not dismissed
within fifteen (90) days of initiation.

    

    3.4           Delisting. 
Following the initial listing of the Common Stock, the delisting of the Common
Stock from the OTC Bulletin Board or such other trading market or exchange on
which the Common Stock is listed or quoted for trading. 

    

    3.5           Failure
to Deliver Common Stock.  The Company’s failure to deliver
Common Stock to the Holder pursuant to this Note.

    

    3.6           Reservation
Default.  Failure by the Company to have reserved for issuance
upon conversion of the Note and accrued Interest the amount of Common
Stock.

    
      
         

      

      
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    ARTICLE
IV

    MISCELLANEOUS

    

    4.1         Failure
or Indulgence Not Waiver.  No failure or delay on the part of
Holder hereof 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.  All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

    

    4.2         Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally delivered, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (A) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received),
or (B) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be: (x) if to the Company to: Yi Xin International Copper,
Inc., No. 1 Guiba Road, Guixi District, Yingtan City, 335419 Jiangxi Province,
the People's Republic of China, Attn:  Chief Executive Officer,
telecopier number (86) (701) 333-8888, with a copy by telecopier only to: Blank
Rome, LLP, 405 Lexington Ave., 24th Floor,
New York, NY 10174, Attn.: Jeffrey A. Rinde, Esq., telecopier number: (917)
332-3009, and (y) if to the Holder, to the one or more addresses and facsimile
numbers provided in the Subscription Agreement, or any other address or
facsimile number provided by the Holder in a manner consistent with this Section
4.2 after the date hereof.

    

    4.3           Amendment
Provision.  The term “Note” and all
reference thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as
so amended or supplemented.  The Company may from time to time
supplement or amend this Note without the approval of any holder of Notes in
order to cure any ambiguity or to be correct or supplement any provision
contained herein which may be defective or inconsistent with any other
provision, or to make any other provisions in regard to matters or questions
herein arising hereunder which the Company may deem necessary or desirable and
which shall not materially adversely affect the interest of the
Holder.  This Note is one of a series of Notes of like tenor issued by
the Company in an aggregate principal amount of up to $5,000,000 (collectively,
the “Company
Notes”). In addition to any amendment permitted by the foregoing
provisions of this Section 4.3, any term of this Note may be amended or waived
upon the written consent of the Company and the holders of Company Notes
representing over 50% of the number of shares of Common Stock into which all
outstanding Company Notes may be converted (the “Majority Holders”);
provided , that
(x) any such amendment or waiver must apply to all Company Notes; and (y) the
number of Conversion Shares subject to this Note, the Conversion Price and the
Maturity Date may not be amended, and the right to convert this Note may not be
altered or waived in any manner adverse to the Holder, without the written
consent of the Holder.  In addition to the foregoing, this Note may be
amended in any respect upon the written consent of the Company and the
Holder.

    
      
         

      

      
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      4.4         
 Trasferability
and Assignability.

    

    

    (a)           
Subject to Section 4.7 hereof, this Note may be transferred by a Holder, in
whole, or, so long as the portion to be transferred is equal to or greater than
$250,000 and is a multiple of $250,000, in part, subject only to the
restrictions specified in this Note and in the Subscription
Agreement.  If transferred pursuant to this paragraph, this Note may
be transferred on the books of the Company by the Holder hereof in person or by
duly authorized attorney, upon surrender of this Note at the principal office of
the Company, properly endorsed (by the Holder executing an assignment in the
form attached hereto), together with the transferee’s portion of the assignment
duly completed and executed by the transferee, and accompanied by such other
documents as may be reasonably required by the Company, including, if required
by the Company, an opinion of its counsel to the effect that such transfer is
exempt from the registration requirements of the Securities Act and any
applicable state securities laws, to establish that such transfer is being made
in accordance with the terms hereof, and a new Note shall be issued to the
transferee and the surrendered Note shall be canceled by the
Company.  This Note may be transferred only to “accredited investors”
as defined under the Securities Act.

    

    (b)        
   This Note shall be binding upon the Company and its successors
and assigns, and shall inure to the benefit of the Holder and its successors and
permitted assigns.

    

    4.5           Cost of
Collection.  If default is made in the payment of this Note,
the Company shall pay the Holder hereof reasonable costs of collection,
including reasonable attorneys’ fees.

    

    4.6           Governing
Law; Consent to Jurisdiction.  This Note shall be governed by
and construed in accordance with the laws of the State of New York, without
giving effect to its conflict of laws principles.  Any action brought
by either party against the other concerning the transactions contemplated by
this Agreement shall be brought only in the state courts of New York or in the
federal courts located in the state of New York.  The Company and the
Holder agree to submit to the jurisdiction of such courts.  The
prevailing party shall be entitled to recover from the other party its
reasonable attorney’s fees and costs.

    

    4.7           Compliance
with Securities Laws.

    

    (a)           The
Holder of this Note, by acceptance hereof, acknowledges that this Note and the
Conversion Shares to be issued upon conversion hereof are being acquired solely
for the Holder's own account and not as a nominee for any other party, and for
investment, and that the Holder will not offer, sell or otherwise dispose this
Note or any Conversion Shares to be issued upon conversion hereof except
pursuant to an effective registration statement, or an exemption from
registration, under the Securities Act and any applicable state securities
laws.

    
      
         

      

      
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    (b)           All
certificates representing Conversion Shares issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following
form:

    

    THE
SECURITIES ISSUED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED OR ANY STATE SECURITIES LAWS.  THE SECURITIES ISSUED
HEREBY MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OF 1933, AS AMENDED AND UNDER APPLICABLE STATE SECURITIES LAWS AS TO SUCH
SECURITIES OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO YI XIN
INTERNATIONAL COPPER, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

    

    4.8           Stockholder
Status.  The Holder shall not have rights as a stockholder of
the Company with respect to unconverted portions of this
Note.  However, the Holder will have all the rights of a stockholder
of the Company with respect to the shares of Common Stock to be received by
Holder after delivery by the Holder of a Notice of Conversion, together with
this note, to the Company in compliance with the provisions of Article
II.

    

    4.9           Taxes.  The
Company shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the issuance or delivery of any certificates
for Conversion Shares in a name other than that of the Holder in respect of
which such shares are issued, and in such case, the Company shall not be
required to issue or deliver any certificate for Conversion Shares or any Note
until the person requesting the same has paid to the Company the amount of such
tax or has established to the Company’s reasonable satisfaction that such tax
has been paid. The Holder shall be responsible for income taxes due under
federal, state or other law, if any such tax is due.

    

    4.10         Entire
Agreement.  This Note, the Subscription Agreement and the other
transaction documents (including all schedules and exhibits thereto) constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof.  There are no restrictions, promises, warranties
or undertakings, other than those set forth or referred to herein and
therein.  This Note and the Subscription Agreement supersede all prior
agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.  In the event of a conflict between
this Note and the Subscription Agreement, the terms of the Subscription
Agreement shall be controlling.

    

    4.11          Section
Headings. The section headings in this Note are for the convenience of
the Company and the Holder and in no way alter, modify, amend, limit or restrict
the provisions hereof.

    
      
         

      

      
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    4.12         Loss,
Theft, Destruction of Note.  Upon receipt of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Note and, in the case of any such loss, theft or destruction, upon receipt
of indemnity or security reasonably satisfactory to the Company, or, in the case
of any such mutilation, upon surrender and cancellation of this Note, the
Company shall make, issue and deliver, in lieu of such lost, stolen, destroyed
or mutilated Note, a new Note of like tenor and unpaid Principal dated as of the
date hereof.  This Note shall be held and owned upon the express
condition that the provisions of this Section 4.12 are exclusive with respect to
the replacement of a mutilated, destroyed, lost or stolen Note and shall
preclude any and all other rights and remedies notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement of negotiable instruments or other securities without the surrender
thereof.

    

    4.13         Who
Deemed Absolute Owner.  The Company may deem the person or
entity in whose name this Note shall be registered upon the registry books of
the Company to be, and may treat it as, the absolute owner of this Note (whether
or not this Note shall be overdue) for the purpose of receiving payment of or on
account of the Principal of this Note or Interest, for the conversion of this
Note and for all other purposes, and the Company shall not be affected by any
notice to the contrary.    

    

     4.14           Registration
Rights Agreement.  The Conversion Shares are subject to a
Registration Rights Agreement among the Investor, certain other investors, and
the Company dated ____________ (the “Registration Rights
Agreement”) and the registration rights with respect to the Conversion
Shares issuable upon conversion of this Note by a Holder may be assigned only in
accordance with the terms and provisions of the Registration Rights
Agreement.

    

    [REMAINDER
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    IN WITNESS WHEREOF, the
Company has caused this Note to be signed in its name by an authorized officer
as of the ______ day of ________, 20__.

    

    
      
        
          
            
              
                
                  
                    	
                            Witness:

                          	 	YI
      XIN INTERNATIONAL COPPER, INC.
	 
      	 	 
      	 
      
	 
      	 	By:	
                              

                          

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    	 
      	
                                

                          	 
      	
                            Name:

                          	
                              

                          	 
	
                              

                          	 
      	 
      	
                            Title:

                          	
                              

                          	 

                  

                

              

            

          

        

      

    

    
      
         

      

      
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    NOTICE
OF CONVERSION

    

    (To be
executed by the Registered Holder in order to convert the Note)

    

    The
undersigned hereby elects to convert $_________ of the Principal and accrued
Interest with respect to such Principal of the 10% Convertible Note (the “Note”) issued by YI
XIN INTERNATIONAL COPPER, INC. on _________________, 20___ into shares of Common
Stock of YI XIN INTERNATIONAL COPPER, INC. according to the conditions set forth
in such Note, as of the date written below.

    

    The
undersigned represents and warrants to the Company that the undersigned is an
“accredited investor” as defined in Regulation D under the Securities Act of
1933, as amended.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Date
      of Conversion:

                                	 	
                                     

                                
	 
      	 	 
      
	
                                  Conversion
      Price:

                                	 	
                                     

                                
	 
      	 	 
      
	
                                  Common
      Stock To Be

                                	 	
                                     

                                
	
                                  Delivered:

                                	 	 
      

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Signature:

                              	
                                   

                              	 
	 
      	 
      	 
	
                                Print
      Name:

                              	
                                   

                              	 
	 
      	 
      	 
	
                                Address:

                              	
                                   

                              	 
	 
      	
                                   

                              	 
	 
      	
                                   

                              	 

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    ASSIGNMENT

    

    FOR VALUE
RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within 10% Convertible Note and all rights evidenced
thereby and does irrevocably constitute and appoint _____________, attorney, to
transfer the said Note on the books of Yi Xin International Copper, Inc. (the
“Company”).

    

    The
undersigned represents and warrants that the foregoing assignment is made in
compliance with all applicable law and the terms of the 10% Convertible
Note.

    

    
      
        
          	
                  Dated:
      ________________________________

                	
                  Signature

                	
                  _____________________________________

                
	 
      	 
      	 
      
	 
      	
                  Address

                	
                  ________________________________

                
	 
      	 
      	
                  ________________________________

                

        

      

    

    

    TRANSFEREE’S
REPRESENTATIONS AND WARRANTIES

     

    The
undersigned transferee hereby represents and warrants to the Company that the
transferee is an “accredited investor” as defined by Rule 501 under the
Securities Act of 1933, as amended and that the address set forth below is the
undersigned’s principal residence (if an individual) or principal place of
business (if a corporation or other entity).

     

    
      
        
          	
                  Dated:
      ________________________________

                	
                  Signature

                	
                  

                    _____________________________________

                  

                
	 
      	 
      	
                  Name:

                
	 
      	 
      	 
      
	 
      	
                  Address

                	
                  

                    ________________________________

                  

                
	 
      	 
      	
                  

                    ________________________________

                  

                

        

      

    

    
      
         

      

      
        13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]