Document:

THIS
        NOTE
        HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED
        UNTIL
        (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        (THE
“ACT”)
        SHALL
        HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY
        OF AN
        OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT
        REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED
        TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS
        LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE FOR THIS
        NOTE.

       

      BENDA
        PHARMACEUTICAL, INC.

       

      Convertible
        Promissory Note

       

      
        	US $__________ 	
                 April
                  __, 2007

              

      

            

      FOR
        VALUE
        RECEIVED, Benda Pharmaceutical, Inc., a Delaware corporation (the “Company”)
        with
        its principal executive office at Changjiang Tower, 23rd
        Floor,
        No.1 Minquan Road, Wuhan, Hubei province, People’s Republic of China , promises
        to pay to the order of _________________ (the “Holder”)
        or
        registered assigns, the principal amount of ___________________ ($________)
        (the
“Principal
        Amount”),
        together
        with accrued interest on the unpaid Principal Amount from time to time
        outstanding from the date hereof until the
        earlier of (i) April __, 2009 (the “Maturity
        Date”),
        and
        (ii) the date the Holder elects to exercise its right to convert this Note,
        together with accrued and unpaid interest, and other fees and obligations
        outstanding under this Note (the “Obligations”),
        in
        accordance with the provisions hereof; and (iii) April 15, 2007 if the Sibiono
        Transaction has not closed. This Note may not be prepaid, in whole or in
        part,
        without the prior written consent of the Holder. This
        Note
        is payable in lawful money of the United States of America and in same day
        funds, without abatement, reduction, deduction, counterclaim, recoupment,
        defense or setoff, to Holder at such account as Holder may designate. Interest
        on the outstanding Principal Amount shall accrue at a rate per annum computed
        in
        accordance with Section 1 hereof and shall be payable to the Holder in
        accordance herewith. 

       

      1 Computation
        of Interest.

       

      A. Base
        Interest Rate.
        Subject
        to subsections 1B below, until such time that the Holder elects to exercise
        its
        Conversion Right, the Note shall bear interest at the rate of four percent
        (4%)
        per annum calculated on the basis of the actual number of days elapsed and
        a
        year of 365 days. Interest shall be payable in cash, semi-annually in arrears,
        on the last Business Day of each June and December. 

       

      B. Penalty
        Interest.
        In the
        event the Note is not repaid on the Maturity Date, or upon the occurrence
        of an
        Event of Default (after expiration of any applicable cure periods), the rate
        of
        interest applicable to the unpaid Principal Amount shall be adjusted to fifteen
        percent (15%) per annum (the “Default
        Rate”),
        whether by acceleration or otherwise.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2 Covenants
        of Company

       

      A. Affirmative
        Covenants.
        The
        Company covenants and agrees that, so long as any portion of the Principal
        Amount, accrued but unpaid interest or other Obligations hereunder remain
        outstanding, it will comply with its covenants and other obligations under
        the
        Investment Agreement and the other Transaction Documents (as defined in the
        Investment Agreement). 

       

      B. Negative
        Covenants.
        The
        Company covenants and agrees that, so long as any portion of the Principal
        Amount, accrued but unpaid interest or other Obligations hereunder remain
        outstanding, it will observe the following negative covenants set forth in
        this
        Section 2B:

       

      (i) Liquidation,
        Dissolution.
        Unless
        it receives the prior written consent of the Holder, the Company will not
        liquidate or dissolve;

       

      (ii) Sales
        of Assets.
        Unless
        it receives the prior written consent of the Holder, the Company will not,
        and
        will not allow any of its Subsidiaries to sell, transfer, lease or otherwise
        dispose of all or substantially all of its properties or assets to any person
        or
        entity; provided that
        this
        clause shall not restrict any disposition made in the ordinary course of
        business and consisting of

       

      (a) capital
        goods which are obsolete or have no remaining useful life; or

       

      (b) finished
        goods inventories;

       

      (iii) Negative
        Pledge.
        Unless
        it receives the prior written consent of the Holder, the Company will not,
        and
        will not allow any Subsidiary to, hereafter create, incur, assume or suffer
        to
        exist any mortgage, pledge, hypothecation, assignment, security interest,
        encumbrance, lien (statutory or other), preference, priority or other security
        agreement or preferential arrangement of any kind or nature whatsoever
        (including any conditional sale or other title retention agreement and any
        financing lease) (each, a “Lien”)
        upon
        any of its property, revenues or assets, whether now owned or hereafter
        acquired, except: 

       

      (a) Liens
        granted to secure indebtedness incurred to finance the acquisition (whether
        by
        purchase or capitalized lease) of tangible assets to be owned by the Company,
        but only on the assets acquired with the proceeds of such
        indebtedness;

       

      (b) Liens
        for
        taxes, assessments or other governmental charges or levies not at the time
        delinquent or thereafter payable without penalty or being contested in good
        faith by appropriate proceedings and for which adequate reserves in accordance
        with GAAP shall have been set aside on its books;

       

      (c) Liens
        of
        carriers, warehousemen, mechanics, materialmen and landlords incurred in
        the
        ordinary course of business for sums not overdue or being contested in good
        faith by appropriate proceedings and for which adequate reserves in accordance
        with GAAP shall have been set aside on its books;

       

      
        
          
          

        

        
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      (d) Liens
        incurred in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other forms of governmental insurance
        or
        benefits, or to secure performance of tenders, statutory obligations, leases
        and
        contracts (other than for borrowed money) entered into in the ordinary course
        of
        business or to secure obligations on surety or appeal bonds; 

       

      (e) judgment
        Liens in existence less than 60 days after the entry thereof or with respect
        to
        which execution has been stayed; and

       

      (f) present
        outstanding loans as follows: (i) $2,000,000 RMB bank loan through the Company’s
        subsidiaries domiciled in the People’s Republic of China (“PRC Subs”); and (ii)
        the Company is presently negotiating a $10,000,000 RMB bank loan with China
        Everbright Bank to support the PRC Subs operations which would require
        securitization of the Company’s and/or PRC Subs assets. 

       

      (iv) Senior
        Indebtedness.
        The
        Company hereby agrees that it will not issue any indebtedness with rights
        that
        are senior to this Note. 

       

      3. Events
        of Default.

       

      A. Within
        five (5) business days of the occurrence of any one or more of the following
        Events of Default (after any applicable cure period), the Company shall give
        written notice to the Holder of the Event of Default (the “Default
        Notice”).
        After
        receipt of the Default Notice, if such Event of Default shall continue, the
        Holder may, by written notice (the “Acceleration
        Notice”)
        to the
        Company, declare all the entire outstanding Principal Amount and accrued
        but
        unpaid interest, to be immediately due and payable within five (5) Business
        Days
        (the “Default
        Notice Period”).
        If
        within the Default Notice Period the Company cures the Event of Default in
        a
        manner acceptable to the Holder, the Acceleration Notice will be deemed
        rescinded and the Event of Default will be deemed to no longer exist and
        any
        rights and remedies of Holder pertaining to such Event of Default will be
        of no
        further force or effect.

       

      B. The
        term
“Event
        of Default”
shall
        mean any of the events set forth in this Section 3B:

       

      (i) Non-Payment
        of Obligations.
        The
        Company shall default in the payment of the outstanding Principal Amount,
        and
        accrued but unpaid interest under this Note as and when the same shall become
        due and payable, whether by acceleration or otherwise, and such default remains
        uncured for a period of ten (10) days following receipt by the Company of
        written notice from Holder demanding payment of such amount. 

       

      (ii) Non-Performance
        of Affirmative Covenants.
        The
        Company shall default in the due observance or performance of any covenant
        set
        forth in Section 2A, which default shall continue uncured for a period of
        ten
        (10) days following receipt by the Company of written notice from Holder
        of the
        Company’s failure to perform such covenant.

       

      
        
          
          

        

        
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      (iii) Failure
        to Observe Negative Covenants.
        The
        Company shall default in the due observance of any negative covenant set
        forth
        in Section 2B, which failure can not be cured within ten (10) days following
        receipt by the Company of written notice from Holder of the Company’s failure to
        observe such negative covenant.

       

      (iv) Bankruptcy,
        Insolvency, etc. 

       

      (a) a
        resolution is passed or an order of a court of competent jurisdiction is
        made
        that the Company be wound up or dissolved otherwise than for the purposes
        of, or
        pursuant to and followed by a consolidation, amalgamation, merger or other
        corporate reorganization (a “Corporate Transaction”), the terms of which have
        previously been approved in writing by the Required Holder Majority;

       

      (b) a
        resolution is passed or an order of a court of competent jurisdiction is
        made
        for the winding up or dissolution of any Subsidiary of the Company, except
        (i)
        for the purposes of or pursuant to and followed by a Corporate Transaction
        with
        or into the Company or any other Subsidiary, (ii) for the purposes of or
        pursuant to and followed by a Corporate Transaction (other than as described
        in
        (i) above) the terms of which shall have previously been approved by the
        Required Holder Majority, or (iii) by way of a voluntary winding up or
        dissolution where there are surplus assets in such subsidiary and such surplus
        assets attributable to the Company and/or any other subsidiary are distributed
        to the Company and/or any such other subsidiary; 

       

      (c) a
        trustee, receiver, or other custodian is appointed over the whole or a
        substantial part of the assets or undertaking of the Company or any
        Subsidiary;

       

      (d) a
        distress, execution or seizure order before judgment is levied or enforced
        upon
        or sued out against the whole or a substantial part of the property of the
        Company or any Subsidiary (as the case may be) and is not discharged within
        forty (40) days thereof; 

       

      (e) the
        Company or any Subsidiary is unable to pay its debts as and when they fall
        due,
        or the Company or any Subsidiary shall initiate or consent to proceedings
        relating to itself under any applicable bankruptcy, reorganization or insolvency
        law or make an assignment for the benefit of, or enter into any composition
        with, its creditors; 

       

      (f) proceedings
        shall have been initiated against the Company or any Subsidiary under any
        applicable bankruptcy, reorganization or insolvency law and such proceedings
        shall not have been discharged or stayed within a period of sixty (60) days;
        

       

      
        
          
          

        

        
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      (g) the
        Company shall take any corporate or other action authorizing, or in furtherance
        of, any of the foregoing.

       

      4. Conversion
        of Note.

       

      A. Conversion
        Right; Conversion Price.
        Subject
        to the terms and conditions hereof, at any time prior to the Maturity Date,
        while any portion of the Principal Amount is outstanding under this Note,
        the
        Holder shall have the right, but not the obligation, to convert the outstanding
        Principal Amount, together with all accrued but unpaid interest thereon (the
        “Conversion
        Right”),
        into
        shares of Company Common Stock. The number of shares of Company Common Stock
        the
        Holder shall be entitled to receive upon exercise of a Conversion Right shall
        be
        the quotient determined by dividing (i) the amount of the Note to be converted
        as set forth in the “Conversion Notice” (defined below) divided by (ii) the
“Conversion
        Price”
of
        $0.555 (subject to adjustment as set forth in herein). 

       

      B. Mechanics
        of Conversion.
        In
        order to exercise its Conversion Right, the Holder shall deliver written
        notice,
        in the form attached hereto as Exhibit
        A
        (the
        "Conversion
        Notice"),
        of
        the Holder's election to convert this Note and surrender the Note to the
        Company. If the Note is converted in part only, the Company shall execute
        and
        deliver to the Holder, at the expense of the Company, a new Note in Principal
        Amount equal to the unconverted portion of the Principal Amount. On or before
        the first (1st)
        Business Day following the date on which the Company has received each of
        the
        Conversion Notice, the Company shall transmit by facsimile an acknowledgment
        of
        confirmation of receipt of the Conversion Notice to the Holder and the Company's
        transfer agent (the "Transfer
        Agent").
        On or
        before the third (3rd)
        Business Day following the date on which the Company has received the Conversion
        Notice (the "Share
        Delivery Date"),
        the
        Company shall (X) provided that the Transfer Agent is participating in The
        Depository Trust Company ("DTC")
        Fast
        Automated Securities Transfer Program, upon the request of the Holder, credit
        such aggregate number of Note Shares to which the Holder is entitled pursuant
        to
        such exercise to the Holder's or its designee's balance account with DTC
        through
        its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent
        is
        not participating in the DTC Fast Automated Securities Transfer Program,
        issue
        and dispatch by overnight courier to the address as specified in the Conversion
        Notice, a certificate, registered in the Company's share register in the
        name of
        the Holder or its designee, for the number of shares of Common Stock to which
        the Holder is entitled pursuant to such conversion. In addition, if the Note
        shall have been converted prior to the effective date of an adjustment to
        the
        Conversion Price in accordance herewith, then on or before the third
        (3rd)
        Business Day following the effective date of such adjustment the Company
        shall
        issue irrevocable instructions to its transfer agent to issue certificates
        or
        credit shares to the applicable balance accounts at DTC, registered in the
        name
        of Holder or its respective nominee(s) in accordance with the preceding
        sentence, for a number of Note Shares equal to the difference between the
        number
        of Note Shares that would have been issued based on the EPS Adjusted Conversion
        Price, and the number of Conversion Shares issued upon earlier Conversion.
        Upon
        delivery of the Conversion Notice, the Holder shall be deemed for all corporate
        purposes to have become the holder of record of the Note Shares with respect
        to
        which this Note has been converted, irrespective of the date such Note Shares
        are credited to the Holder's DTC account or the date of delivery of the
        certificates evidencing such Note Shares, as the case may be. No fractional
        shares of Common Stock are to be issued upon the conversion of this Note,
        but
        rather the number of Note Shares to be issued shall be rounded up to the
        nearest
        whole number. The Company shall pay any and all taxes which may be payable
        with
        respect to the issuance and delivery of Note Shares upon any conversion of
        this
        Note. 

       

      
        
          
          

        

        
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      C. Company's
        Failure to Timely Deliver Securities.
        If the
        Company shall fail for any reason or for no reason to issue to the Holder
        within
        the three (3) Business Day time periods set forth in Section 4B above, a
        certificate for the number of Note Shares to which the Holder is entitled
        and
        register such Note Shares on the Company's share register or to credit the
        Holder's balance account with DTC for such number of Note Shares to which
        the
        Holder is entitled, then, in addition to all other remedies available to
        the
        Holder, the Company shall pay in cash to the Holder on each day after such
        third Business
        Day that the issuance of such Note Shares is not timely effected an amount
        equal
        to 2.0% of the product of (A) the sum of the number of Note Shares not issued
        to
        the Holder on a timely basis and to which the Holder is entitled and (B)
        the
        Closing Sale Price of the shares of Common Stock on the Trading Day immediately
        preceding the last possible date which the Company could have issued such
        shares
        of Common Stock to the Holder without violating Section 1(a). In addition
        to the
        foregoing, if within three (3) Trading Days after the Company's receipt of
        the
        facsimile copy of a Conversion Notice the Company shall fail to issue and
        deliver a certificate to the Holder and register such Note Shares on the
        Company's share register or credit the Holder's balance account with DTC
        for the
        number of Note Shares to which the Holder is entitled upon the Holder's
        conversion hereunder, and if on or after such Trading Day the Holder purchases
        (in an open market transaction or otherwise) shares of Common Stock to deliver
        in satisfaction of a sale by the Holder of shares of Common Stock issuable
        upon
        such exercise that the Holder anticipated receiving from the Company (a
"Buy-In"),
        then
        the Company shall, within three (3) Business Days after the Holder's request
        and
        in the Holder's discretion, either (i) pay cash to the Holder in an amount
        equal
        to the Holder's total purchase price (including brokerage commissions, if
        any)
        for the shares of Common Stock so purchased (the "Buy-In
        Price"),
        at
        which point the Company's obligation to deliver such certificate (and to
        issue
        such Note Shares) shall terminate, or (ii) promptly honor its obligation
        to
        deliver to the Holder a certificate or certificates representing such Note
        Shares and pay cash to the Holder in an amount equal to the excess (if any)
        of
        the Buy-In Price over the product of (A) such number of shares of Common
        Stock,
        times (B) the Closing Bid Price on the date of exercise.

       

      D. Disputes.
        In the
        case of a dispute as to the determination of the Conversion Price, the Company
        shall promptly issue to the Holder the number of Note Shares that are not
        disputed and resolve such dispute in accordance with Section 14.

       

      E. Insufficient
        Authorized Shares.
        If at
        any time while any of the Notes remain outstanding the Company does not have
        a
        sufficient number of authorized and unreserved shares of Common Stock to
        satisfy
        its obligation to reserve for issuance upon conversion of the Notes at least
        a
        number of shares of Common Stock equal to 150% (the "Required
        Reserve Amount")
        of the
        number of shares of Common Stock as shall from time to time be necessary
        to
        effect the conversion of all of the Notes then outstanding (an "Authorized
        Share Failure"),
        then
        the Company shall immediately take all action necessary to increase the
        Company's authorized shares of Common Stock to an amount sufficient to allow
        the
        Company to reserve the Required Reserve Amount for the Notes then outstanding.
        Without limiting the generality of the foregoing sentence, as soon as
        practicable after the date of the occurrence of an Authorized Share Failure,
        but
        in no event later than sixty (60) days after the occurrence of such Authorized
        Share Failure, the Company shall hold a meeting of its stockholders for the
        approval of an increase in the number of authorized shares of Common Stock.
        In
        connection with such meeting, the Company shall provide each stockholder
        with a
        proxy statement and shall use its best efforts to solicit its stockholders'
        approval of such increase in authorized shares of Common Stock and to cause
        its
        board of directors to recommend to the stockholders that they approve such
        proposal.

       

      
        
          
          

        

        
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      F. Adjustment
        of Conversion Price.
        

       

      (i) Performance
        Threshold Adjustments.
        Pursuant to the Make-Good Agreement (as defined in the Investment Agreement),
        the Company made covenants with the Buyers (as defined in the Investment
        Agreement) that Net Income (as defined in the Make Good Agreement) for the
        fiscal year ending December 31, 2007 ("FY07
        Net Income")
        of the
        Company would be greater than or equal to $10.0 million (the "Make
        Good Performance
        Threshold"),
        as
        set forth in the FY07 Financial Statements (as defined in the Make Good
        Agreement). For purposes of this Note, the Company covenants with Holder
        that
        the FY07 Net Income will be greater than or equal to $10 million (the
“Note
        Performance Threshold”).
        If
        and to the extent the Note Performance Threshold is not met, then the Conversion
        Price shall be reduced based on the proportionate increase in the number
        of
        shares of Common Stock issued or to be issuable to the Buyers (without taking
        into account any limitations or qualifications) in satisfaction of the
        provisions of the Make-Good Agreement. 

       

      (ii) Adjustments
        Identical to Adjustments to Exercise Price in Warrant.
        If and
        whenever on or after the date hereof while the Note is outstanding any action
        is
        taken that would effect an adjustment to the exercise price or number of
        shares
        issuable upon exercise of the Warrant, a similar adjustment shall be made
        to the
        Conversion Price as of the same effective date.

       

      5. Rights
        Upon Distribution of Assets.
        If the
        Company shall declare or make any Distribution
        (as
        defined in the Warrant), at any time after the issuance of this Note, then
        the
        provisions of the Warrant with respect to such Distributions shall likewise
        apply to this Note, incuding without limitation, an adjustment to the Conversion
        Price.

       

      6. Purchase
        Rights; Fundamental Transactions.
        If the
        Company shall grant Purchase Rights (as defined in the Warrant) or enters
        into a
        Fundamental Transaction (as defined in the Warrant), the provisions of the
        Warrant with respect to Purchase Rights and Fundamental Transactions shall
        likewise apply to this Note.

       

      7. Noncircumvention.
        The
        noncircumvention provisions of the Warrant shall likewise apply to this
        Note.

       

      8. 
        Holder not deemed a Stockholder.
        Except
        as otherwise specifically provided herein, the Holder, solely in such Person's
        capacity as a holder of this Note, shall not be entitled to vote or receive
        dividends or be deemed the holder of share capital of the Company for any
        purpose, nor shall anything contained in this Note be construed to confer
        upon
        the Holder, solely in such Person's capacity as the Holder of this Note,
        any of
        the rights of a shareholder of the Company or any right to vote, give or
        withhold consent to any corporate action (whether any reorganization, issue
        of
        stock, reclassification of stock, consolidation, merger, conveyance or
        otherwise), receive notice of meetings, receive dividends or subscription
        rights, or otherwise, prior to the issuance to the Holder of the Note Shares
        which such Person is then entitled to receive upon the due conversion of
        this
        Note. In addition, nothing contained in this Note shall be construed as imposing
        any liabilities on the Holder to purchase any securities (upon conversion
        of
        this Note or otherwise) or as a shareholder of the Company, whether such
        liabilities are asserted by the Company or by creditors of the Company.
        Notwithstanding this Section 8, the Company shall provide the Holder with
        copies
        of the same notices and other information given to the shareholders of the
        Company generally, contemporaneously with the giving thereof to the
        shareholders.

       

      
        
          
          

        

        
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      9. Reissuance
        of Notes.

       

      A Transfer
        of Note.
        If this
        Note is to be transferred, the Holder shall surrender this Note to the Company,
        whereupon the Company will forthwith issue and deliver upon the order of
        the
        Holder a new Note, registered as the Holder may request, representing the
        right
        to the Note being transferred by the Holder and, if less then the entire
        Note is
        being transferred, a new Note to the Holder representing the portion of the
        Note
        not being transferred.

       

      B Lost,
        Stolen or Mutilated Note.
        Upon
        receipt by the Company of evidence reasonably satisfactory to the Company
        of the
        loss, theft, destruction or mutilation of this Note, and, in the case of
        loss,
        theft or destruction, of any indemnification undertaking by the Holder to
        the
        Company in customary form and, in the case of mutilation, upon surrender
        and
        cancellation of this Note, the Company shall execute and deliver to the Holder
        a
        new Note in substitution the Note so lost, stolen or mutilated.

       

      C Issuance
        of New Note.
        Whenever the Company is required to issue a new Note pursuant to the terms
        of
        this Note, such new Note (i) shall be of like tenor with this Note, (ii)
        shall
        represent, as indicated on the face of such new Note, the Principal Amount
        of
        the old Note (or in the case of a new Note being issued pursuant to Section
        9(i), the portion of the Principal Amount designated by the Holder which,
        when
        added to the Principal Amount the other new Notes issued in connection with
        such
        issuance, does not exceed the aggregate Principal Amount of this Note), (iii)
        shall have an issuance date, as indicated on the face of such new Note, which
        is
        the same as the date hereof, and (iv) shall have the same rights and conditions
        as this Note.

       

      10. Notices.
        Whenever notice is required to be given under this Note, unless otherwise
        provided herein, such notice shall be given in accordance with Section 9(f)of
        the Investment Agreement. The Company shall provide the Holder with prompt
        written notice of all actions taken pursuant to this Note, including in
        reasonable detail a description of such action and the reason therefore.
        Without
        limiting the generality of the foregoing, the Company will give written notice
        to the Holder (i) immediately upon any adjustment of the Conversion Price,
        setting forth in reasonable detail, and certifying, the calculation of such
        adjustment and (ii) at least fifteen days prior to the date on which the
        Company
        closes its books or takes a record (A) with respect to any dividend or
        distribution upon the shares of Common Stock, (B) with respect to any grants,
        issuances or sales of any Options, Convertible Securities or rights to purchase
        stock, warrants, securities or other property to holders of shares of Common
        Stock or (C) for determining rights to vote with respect to any Fundamental
        Transaction, dissolution or liquidation, provided in each case that such
        information shall be made known to the public prior to or in conjunction
        with
        such notice being provided to the Holder.

       

      
        
          
          

        

        
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      11. Amendment
        and Waiver.
        Except
        as otherwise provided herein, the provisions of this Note may be amended
        and the
        Company may take any action herein prohibited, or omit to perform any act
        herein
        required to be performed by it, only if the Company has obtained the written
        consent of the Required Holder Majority; provided that no such action may
        increase the Conversion Price, require a conversion, reduce the time period
        in
        which the Note may be converted, or grant prepayment rights to the Company,
        in
        any case without the written consent of the Holder. No such amendment shall
        be
        effective to the extent that it applies to less than all of the holders of
        the
        Notes then outstanding.

       

      12. Governing
        Law.
        This
        Note shall be governed by and construed and enforced in accordance with,
        and all
        questions concerning the construction, validity, interpretation and performance
        of this Note shall be governed by, the internal laws of the State of New
        York,
        without giving effect to any choice of law or conflict of law provision or
        rule
        (whether of the State of New York or any other jurisdictions) that would
        cause
        the application of the laws of any jurisdictions other than the State of
        New
        York.

       

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

       

      14. Dispute
        Resolution.
        In the
        case of a dispute as to the determination of the Conversion Price or the
        arithmetic calculation of the Note Shares, the Company shall submit the disputed
        determinations or arithmetic calculations via facsimile within two Business
        Days
        of receipt of the Conversion Notice giving rise to such dispute, as the case
        may
        be, to the Holder. If the Holder and the Company are unable to agree upon
        such
        determination or calculation of the Conversion Price or the Note Shares within
        three Business Days of such disputed determination or arithmetic calculation
        being submitted to the Holder, then the Company shall, within two Business
        Days
        submit via facsimile (a) the disputed determination of the Conversion Price
        to
        an independent, reputable investment bank selected by the Company and approved
        by the Required Holder Majority or (b) the disputed arithmetic calculation
        of
        the Note Shares to the Company's independent, outside accountant. The Company
        shall cause at its expense the investment bank or the accountant, as the
        case
        may be, to perform the determinations or calculations and notify the Company
        and
        the Holder of the results no later than ten (10) Business Days from the time
        it
        receives the disputed determinations or calculations. Such investment bank's
        or
        accountant's determination or calculation, as the case may be, shall be binding
        upon all parties absent demonstrable error.

       

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

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      16. Transfer.
        This
        Note may be offered for sale, sold, transferred or assigned without the consent
        of the Company.

       

      17. Miscellaneous.

       

      A. Parties
        in Interest.
        All
        covenants, agreements and undertakings in this Note binding upon the Company
        or
        the Holder shall bind and inure to the benefit of the successors and permitted
        assigns of the Company and the Holder, respectively, whether so expressed
        or
        not.

       

      B. Costs
        and Expenses.
        Company
        agrees to pay on demand all costs and expenses, if any, including counsel
        fees
        and expenses, in connection with the enforcement (whether through negotiations,
        legal proceedings or otherwise) of this Note. 

       

      C. Waiver.
        Except
        as otherwise provided for in this Note, and to the fullest extent permitted
        by
        applicable law, Company waives: (a) presentment, notice, demand and protest,
        and
        notice of presentment, dishonor, intent to accelerate, acceleration, protest,
        default, nonpayment, maturity, release, compromise, settlement, extension
        or
        renewal of this Note at any time held by Holder on which Company may in any
        way
        be liable, and hereby ratifies and confirms whatever Holder may do in this
        regard; (b) all rights to notice and a hearing prior to Holder’s taking
        possession or control of, or to Holder’s replevy, attachment or levy upon, any
        property, real or personal, tangible or intangible of Company or any bond
        or
        security which might be required by any court prior to allowing Holder to
        exercise any of its remedies; and (c) the benefit of all valuation, appraisal
        and exemption laws.

       

      D. Maximum
        Payments.
        Nothing
        contained herein 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. In the event that the rate of interest required to be paid or other
        charges
        hereunder exceed the maximum permitted by such law, any payments in excess
        of
        such maximum shall be credited against amounts owed by the Borrower to the
        Holder and the remainder, if any, refunded to the Borrower.

       

      [Signature
        Page Follows]

      

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

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

       

      
        	 	 	 
	 	BENDA
                PHARMACEUTICAL,
                INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
                  

                

                Name: Yiqing Wan

                Title: Chief Executive Officer 

              

      

       

      EXHIBIT
        A

      

      CONVERSION
        NOTICE

       

      TO
        BE EXECUTED BY THE REGISTERED HOLDER TO CONVERT THIS

      NOTE
        INTO COMMON STOCK

       

      BENDA
        PHARMACEUTICAL, INC.

       

      The
        undersigned holder hereby exercises the right to convert _____________________of
        the Note into shares of Common Stock ("Note
        Shares")
        of
        Benda Pharmaceutical, Inc., a Delaware corporation (the "Company"),
        evidenced by the attached Note (the "Note").
        Capitalized terms used herein and not otherwise defined shall have the
        respective meanings set forth in the Note.

      

      1.
        Delivery of Note Shares. The Company shall deliver to the holder __________
        Note
        Shares in accordance with the terms of the Note.

      

      Date:
        _______________ __, ______

      
        	 	 	 	 
	 	 	 	 
	
                
Name
                of Holder	 	 	
              

      

       

      
        	 	 	 	 
	By: 
                	 	 	 
	
                
                  

                

                Name:

                Title:

              	 	 	
              

      

       

      
        
          
          

        

        
          -11-

          
            

          

        

         

      

      ACKNOWLEDGMENT

      

      The
        Company hereby acknowledges this Conversion Notice and hereby directs
        Computershare Trust Company, Inc. to issue the above indicated number of
        shares
        of Common Stock in accordance with the Transfer Agent Instructions dated
        _____________from the Company and acknowledged and agreed to by Computershare
        Trust Company, Inc.

      
        	 	 	 
	 	BENDA
                PHARMACEUTICAL, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:

                Title:

              

      

       

      
        
          
          

        

        
          -12-NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
      (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
      FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO
      RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
      SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
      OTHER
      LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

    

    BENDA
      PHARMACEUTICAL, INC.

    

    Warrant
      To Purchase Common Stock

    

    Warrant
      No.: 

    Number
      of
      Shares of Common Stock: 

    Date
      of
      Issuance: April __, 2007 ("Issuance
      Date")

    

    Benda
      Pharmaceutical, Inc., a Delaware corporation (the "Company"),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, [BUYERS], the registered holder
      hereof or its permitted assigns (the "Holder"),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      the Exercise Price (as defined below) then in effect, upon surrender of this
      Warrant to Purchase Common Stock (including any Warrants to Purchase Common
      Stock issued in exchange, transfer or replacement hereof, the "Warrant"),
      at
      any time or times on or after two (2) years from the date hereof, but not after
      11:59 p.m., New York time, on the Expiration Date (as defined below),
      ____________________ (_____________)1 
      fully
      paid nonassessable shares of Common Stock (as defined below) (the
      "Warrant
      Shares").
      Except as otherwise defined herein, capitalized terms in this Warrant shall
      have
      the meanings set forth in Section 15. This Warrant is the Warrant to purchase
      Common Stock issued pursuant to that certain Investment Agreement, dated as
      of
      April __, 2007 (the "Subscription
      Date"),
      by
      and among the Company and Holder (the "Investment
      Agreement").
      Capitalized terms not defined herein shall have the same meaning as defined
      in
      the Investment Agreement. 

     

    
      

    

    1 Insert
      a
      number of shares equal to the number of Common Shares (as defined in the
      Securities Purchase Agreement) purchased by the Holder pursuant to the
      Securities Purchase Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.  EXERCISE
      OF WARRANT.

     

    (a)  Mechanics
      of Exercise.
      Subject
      to the terms and conditions hereof (including, without limitation, the
      limitations set forth in Section 1(f)), this Warrant may be exercised by the
      Holder on any day on or after the date hereof, in whole or in part, by
      (i) delivery of a written notice, in the form attached hereto as
Exhibit
      A
      (the
      "Exercise
      Notice"),
      of
      the Holder's election to exercise this Warrant and (ii) payment to the Company
      of an amount equal to the applicable Exercise Price multiplied by the number
      of
      Warrant Shares as to which this Warrant is being exercised (the "Aggregate
      Exercise Price")
      in
      cash or by wire transfer of immediately available funds. The Holder shall not
      be
      required to deliver the original Warrant in order to affect an exercise
      hereunder. Execution and delivery of the Exercise Notice with respect to less
      than all of the Warrant Shares shall have the same effect as cancellation of
      the
      original Warrant and issuance of a new Warrant evidencing the right to purchase
      the remaining number of Warrant Shares. On or before the first (1st)
      Business Day following the date on which the Company has received each of the
      Exercise Notice and the Aggregate Exercise Price (the "Exercise
      Delivery Documents"),
      the
      Company shall transmit by facsimile an acknowledgment of confirmation of receipt
      of the Exercise Delivery Documents to the Holder and the Company's transfer
      agent (the "Transfer
      Agent").
      On or
      before the third (3rd)
      Business Day following the date on which the Company has received all of the
      Exercise Delivery Documents (the "Share
      Delivery Date"),
      the
      Company shall (X) provided that the Transfer Agent is participating in The
      Depository Trust Company ("DTC")
      Fast
      Automated Securities Transfer Program, upon the request of the Holder, credit
      such aggregate number of Warrant Shares to which the Holder is entitled pursuant
      to such exercise to the Holder's or its designee's balance account with DTC
      through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer
      Agent is not participating in the DTC Fast Automated Securities Transfer
      Program, issue and dispatch by overnight courier to the address as specified
      in
      the Exercise Notice, a certificate, registered in the Company's share register
      in the name of the Holder or its designee, for the number of shares of Common
      Stock to which the Holder is entitled pursuant to such exercise. Upon delivery
      of the Exercise Delivery Documents, the Holder shall be deemed for all corporate
      purposes to have become the holder of record of the Warrant Shares with respect
      to which this Warrant has been exercised, irrespective of the date such Warrant
      Shares are credited to the Holder's DTC account or the date of delivery of
      the
      certificates evidencing such Warrant Shares, as the case may be. If this Warrant
      is submitted in connection with any exercise pursuant to this Section 1(a)
      and
      the number of Warrant Shares represented by this Warrant submitted for exercise
      is greater than the number of Warrant Shares being acquired upon an exercise,
      then the Company shall as soon as practicable and in no event later than three
      Business Days after any exercise and at its own expense, issue a new Warrant
      (in
      accordance with Section 7(d)) representing the right to purchase the number
      of
      Warrant Shares purchasable immediately prior to such exercise under this
      Warrant, less the number of Warrant Shares with respect to which this Warrant
      is
      exercised. No fractional shares of Common Stock are to be issued upon the
      exercise of this Warrant, but rather the number of shares of Common Stock to
      be
      issued shall be rounded up to the nearest whole number. The Company shall pay
      any and all taxes which may be payable with respect to the issuance and delivery
      of Warrant Shares upon exercise of this Warrant. 

     

    (b)  Exercise
      Price.
      For
      purposes of this Warrant, "Exercise
      Price"
      means
      $0.555, subject to adjustment as provided herein. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (c)  Company's
      Failure to Timely Deliver Securities.
      If the
      Company shall fail for any reason or for no reason to issue to the Holder within
      three (3) Business Days of receipt of the Exercise Delivery Documents, a
      certificate for the number of shares of Common Stock to which the Holder is
      entitled and register such shares of Common Stock on the Company's share
      register or to credit the Holder's balance account with DTC for such number
      of
      shares of Common Stock to which the Holder is entitled upon the Holder's
      exercise of this Warrant, then, in addition to all other remedies available
      to
      the Holder, the Company shall pay in cash to the Holder on each day after such
      third Business
      Day that the issuance of such shares of Common Stock is not timely effected
      an
      amount equal to 2.0% of the product of (A) the sum of the number of shares
      of
      Common Stock not issued to the Holder on a timely basis and to which the Holder
      is entitled and (B) the Closing Sale Price of the shares of Common Stock on
      the
      Trading Day immediately preceding the last possible date which the Company
      could
      have issued such shares of Common Stock to the Holder without violating Section
      1(a). In addition to the foregoing, if within three (3) Trading Days after
      the
      Company's receipt of the facsimile copy of a Exercise Notice the Company shall
      fail to issue and deliver a certificate to the Holder and register such shares
      of Common Stock on the Company's share register or credit the Holder's balance
      account with DTC for the number of shares of Common Stock to which the Holder
      is
      entitled upon the Holder's exercise hereunder, and if on or after such Trading
      Day the Holder purchases (in an open market transaction or otherwise) shares
      of
      Common Stock to deliver in satisfaction of a sale by the Holder of shares of
      Common Stock issuable upon such exercise that the Holder anticipated receiving
      from the Company (a "Buy-In"),
      then
      the Company shall, within three (3) Business Days after the Holder's request
      and
      in the Holder's discretion, either (i) pay cash to the Holder in an amount
      equal
      to the Holder's total purchase price (including brokerage commissions, if any)
      for the shares of Common Stock so purchased (the "Buy-In
      Price"),
      at
      which point the Company's obligation to deliver such certificate (and to issue
      such Warrant Shares) shall terminate, or (ii) promptly honor its obligation
      to
      deliver to the Holder a certificate or certificates representing such Warrant
      Shares and pay cash to the Holder in an amount equal to the excess (if any)
      of
      the Buy-In Price over the product of (A) such number of shares of Common Stock,
      times (B) the Closing Bid Price on the date of exercise.

     

    (d)  Cashless
      Exercise.
       The
      Warrants are not subject to cashless exercise.  

     

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

     

    (f)  Insufficient
      Authorized Shares.
      If at
      any time while any of the Warrants remain outstanding the Company does not
      have
      a sufficient number of authorized and unreserved shares of Common Stock to
      satisfy its obligation to reserve for issuance upon exercise of the Warrants
      at
      least a number of shares of Common Stock equal to 150% (the "Required
      Reserve Amount")
      of the
      number of shares of Common Stock as shall from time to time be necessary to
      effect the exercise of all of the Warrants then outstanding (an "Authorized
      Share Failure"),
      then
      the Company shall immediately take all action necessary to increase the
      Company's authorized shares of Common Stock to an amount sufficient to allow
      the
      Company to reserve the Required Reserve Amount for the Warrants then
      outstanding. Without limiting the generality of the foregoing sentence, as
      soon
      as practicable after the date of the occurrence of an Authorized Share Failure,
      but in no event later than sixty (60) days after the occurrence of such
      Authorized Share Failure, the Company shall hold a meeting of its stockholders
      for the approval of an increase in the number of authorized shares of Common
      Stock. In connection with such meeting, the Company shall provide each
      stockholder with a proxy statement and shall use its best efforts to solicit
      its
      stockholders' approval of such increase in authorized shares of Common Stock
      and
      to cause its board of directors to recommend to the stockholders that they
      approve such proposal.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

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

     

    (a)  Adjustment
      upon Issuance of shares of Common Stock.
      If and
      whenever on or after the Subscription Date the Company issues or sells, or
      in
      accordance with this Section 2 is deemed to have issued or sold, any shares
      of
      Common Stock (including the issuance or sale of shares of Common Stock owned
      or
      held by or for the account of the Company, but excluding shares of Common Stock
      deemed to have been issued by the Company in connection with any Excluded
      Securities) for a consideration per share (the "New
      Issuance Price")
      less
      than $0.555 (as adjusted for stock splits, stock dividends, reverse stock
      splits, recapitalizations, reclassifications and similar events, or for failure
      to meet the Performance Threshold as defined herein below) (the "Applicable
      Price")
      (the
      foregoing a "Dilutive
      Issuance"),
      then
      immediately after such Dilutive Issuance, the Exercise Price then in effect
      shall be reduced to an amount equal to the New Issuance Price.
      Upon
      each such adjustment of the Exercise Price hereunder, the number of Warrant
      Shares shall be adjusted to the number of shares of Common Stock determined
      by
      multiplying the Exercise Price in effect immediately prior to such adjustment
      by
      the number of Warrant Shares acquirable upon exercise of this Warrant
      immediately prior to such adjustment and dividing the product thereof by the
      Exercise Price resulting from such adjustment. For purposes of determining
      the
      adjusted Exercise Price under this Section 2(a), the following shall be
      applicable:

     

    (i)
      Issuance
      of Options.
      If the
      Company in any manner grants any Options and the lowest price per share for
      which one share of Common Stock is issuable upon the exercise of any such Option
      or upon conversion, exercise or exchange of any Convertible Securities issuable
      upon exercise of any such Option is less than the Applicable Price, then such
      share of Common Stock shall be deemed to be outstanding and to have been issued
      and sold by the Company at the time of the granting or sale of such Option
      for
      such price per share. For purposes of this Section 2(a)(i), the "lowest price
      per share for which one share of Common Stock is issuable upon exercise of
      such
      Options or upon conversion, exercise or exchange of such Convertible Securities"
      shall be equal to the sum of the lowest amounts of consideration (if any)
      received or receivable by the Company with respect to any one share of Common
      Stock upon the granting or sale of the Option, upon exercise of the Option
      and
      upon conversion, exercise or exchange of any Convertible Security issuable
      upon
      exercise of such Option. No further adjustment of the Exercise Price or number
      of Warrant Shares shall be made upon the actual issuance of such shares of
      Common Stock or of such Convertible Securities upon the exercise of such Options
      or upon the actual issuance of such shares of Common Stock upon conversion,
      exercise or exchange of such Convertible Securities. 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (ii)
      Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any Convertible Securities and the lowest
      price per share for which one share of Common Stock is issuable upon the
      conversion, exercise or exchange thereof is less than the Applicable Price,
      then
      such share of Common Stock shall be deemed to be outstanding and to have been
      issued and sold by the Company at the time of the issuance or sale of such
      Convertible Securities for such price per share. For the purposes of this
      Section 2(a)(ii), the "lowest price per share for which one share of Common
      Stock is issuable upon the conversion, exercise or exchange" shall be equal
      to
      the sum of the lowest amounts of consideration (if any) received or receivable
      by the Company with respect to one share of Common Stock upon the issuance
      or
      sale of the Convertible Security and upon conversion, exercise or exchange
      of
      such Convertible Security. No further adjustment of the Exercise Price or number
      of Warrant Shares shall be made upon the actual issuance of such shares of
      Common Stock upon conversion, exercise or exchange of such Convertible
      Securities, and if any such issue or sale of such Convertible Securities is
      made
      upon exercise of any Options for which adjustment of this Warrant has been
      or is
      to be made pursuant to other provisions of this Section 2(a), no further
      adjustment of the Exercise Price or number of Warrant Shares shall be made
      by
      reason of such issue or sale. 

     

    (iii)
      Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion, exercise or exchange of any Convertible
      Securities, or the rate at which any Convertible Securities are convertible
      into
      or exercisable or exchangeable for shares of Common Stock increases or decreases
      at any time, the Exercise Price and the number of Warrant Shares in effect
      at
      the time of such increase or decrease shall be adjusted to the Exercise Price
      and the number of Warrant Shares which would have been in effect at such time
      had such Options or Convertible Securities provided for such increased or
      decreased purchase price, additional consideration or increased or decreased
      conversion rate, as the case may be, at the time initially granted, issued
      or
      sold. For purposes of this Section 2(a)(iii), if the terms of any Option or
      Convertible Security that was outstanding as of the date of issuance of this
      Warrant are increased or decreased in the manner described in the immediately
      preceding sentence, then such Option or Convertible Security and the shares
      of
      Common Stock deemed issuable upon exercise, conversion or exchange thereof
      shall
      be deemed to have been issued as of the date of such increase or decrease.
      No
      adjustment pursuant to this Section 2(a) shall be made if such adjustment would
      result in an increase of the Exercise Price then in effect or a decrease in
      the
      number of Warrant Shares.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    (iv)
      Calculation
      of Consideration Received.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction in which no specific
      consideration is allocated to such Options by the parties thereto, the Options
      will be deemed to have been issued for a consideration of $0.01. If any shares
      of Common Stock, Options or Convertible Securities are issued or sold or deemed
      to have been issued or sold for cash, the consideration received therefor will
      be deemed to be the net amount received by the Company therefor. If any shares
      of Common Stock, Options or Convertible Securities are issued or sold for a
      consideration other than cash, the amount of such consideration received by
      the
      Company will be the fair value of such consideration, except where such
      consideration consists of securities, in which case the amount of consideration
      received by the Company will be the Closing Sale Price of such security on
      the
      date of receipt. If any shares of Common Stock, Options or Convertible
      Securities are issued to the owners of the non-surviving entity in connection
      with any merger in which the Company is the surviving entity, the amount of
      consideration therefor will be deemed to be the fair value of such portion
      of
      the net assets and business of the non-surviving entity as is attributable
      to
      such shares of Common Stock, Options or Convertible Securities, as the case
      may
      be. The fair value of any consideration other than cash or securities will
      be
      determined jointly by the Company and the Required Holders. If such parties
      are
      unable to reach agreement within ten (10) days after the occurrence of an event
      requiring valuation (the "Valuation
      Event"),
      the
      fair value of such consideration will be determined within five (5) Business
      Days after the tenth day following the Valuation Event by an independent,
      reputable appraiser jointly selected by the Company and the Required Holders.
      The determination of such appraiser shall be final and binding upon all parties
      absent manifest error and the fees and expenses of such appraiser shall be
      borne
      by the Company.

     

    (v)
      Record
      Date.
      If the
      Company takes a record of the holders of shares of Common Stock for the purpose
      of entitling them (A) to receive a dividend or other distribution payable
      in shares of Common Stock, Options or in Convertible Securities or (B) to
      subscribe for or purchase shares of Common Stock, Options or Convertible
      Securities, then such record date will be deemed to be the date of the issue
      or
      sale of the shares of Common Stock deemed to have been issued or sold upon
      the
      declaration of such dividend or the making of such other distribution or the
      date of the granting of such right of subscription or purchase, as the case
      may
      be.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (b)  Adjustment
      upon Subdivision or Combination of Common Stock.
      If the
      Company at any time on or after the Subscription Date subdivides (by any stock
      split, stock dividend, recapitalization or otherwise) one or more classes of
      its
      outstanding shares of Common Stock into a greater number of shares, the Exercise
      Price in effect immediately prior to such subdivision will be proportionately
      reduced and the number of Warrant Shares will be proportionately increased.
      If
      the Company at any time on or after the Subscription Date combines (by
      combination, reverse stock split or otherwise) one or more classes of its
      outstanding shares of Common Stock into a smaller number of shares, the Exercise
      Price in effect immediately prior to such combination will be proportionately
      increased and the number of Warrant Shares will be proportionately decreased.
      Any adjustment under this Section 2(b) shall become effective at the close
      of
      business on the date the subdivision or combination becomes
      effective.

     

    (c)  Other
      Events.
      If any
      event occurs of the type contemplated by the foregoing provisions of this
      Section 2 but not expressly provided for by such provisions (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Company's Board of Directors will
      make an appropriate adjustment in the Exercise Price and the number of Warrant
      Shares so as to protect the rights of the Holder; provided that no such
      adjustment pursuant to this Section 2(c) will increase the Exercise Price or
      decrease the number of Warrant Shares as otherwise determined pursuant to this
      Section 2.

     

    3.  RIGHTS
      UPON DISTRIBUTION OF ASSETS.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of shares of Common Stock, by
      way
      of return of capital or otherwise (including, without limitation, any
      distribution of cash, stock or other securities, property or options by way
      of a
      dividend, spin off, reclassification, corporate rearrangement, scheme of
      arrangement or other similar transaction) (a "Distribution"),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (a)  any
      Exercise Price in effect immediately prior to the close of business on the
      record date fixed for the determination of holders of shares of Common Stock
      entitled to receive the Distribution shall be reduced, effective as of the
      close
      of business on such record date, to a price determined by multiplying such
      Exercise Price by a fraction of which (i) the numerator shall be the Closing
      Bid
      Price of the shares of Common Stock on the Trading Day immediately preceding
      such record date minus the value of the Distribution (as determined in good
      faith by the Company's Board of Directors) applicable to one share of shares
      of
      Common Stock, and (ii) the denominator shall be the Closing Bid Price of the
      shares of Common Stock on the Trading Day immediately preceding such record
      date; and

    

    (b)  the
      number of Warrant Shares shall be increased to a number of shares equal to
      the
      number of shares of Common Stock obtainable immediately prior to the close
      of
      business on the record date fixed for the determination of holders of shares
      of
      Common Stock entitled to receive the Distribution multiplied by the reciprocal
      of the fraction set forth in the immediately preceding paragraph (a); provided
      that in the event that the Distribution is of shares of Common Stock (or common
      stock) ("Other
      Shares of Common Stock")
      of a
      company whose common shares are traded on a national securities exchange or
      a
      national automated quotation system, then the Holder may elect to receive a
      warrant to purchase Other Shares of Common Stock in lieu of an increase in
      the
      number of Warrant Shares, the terms of which shall be identical to those of
      this
      Warrant, except that such warrant shall be exercisable into the number of shares
      of Other Shares of Common Stock that would have been payable to the Holder
      pursuant to the Distribution had the Holder exercised this Warrant immediately
      prior to such record date and with an aggregate exercise price equal to the
      product of the amount by which the exercise price of this Warrant was decreased
      with respect to the Distribution pursuant to the terms of the immediately
      preceding paragraph (a) and the number of Warrant Shares calculated in
      accordance with the first part of this paragraph (b).

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    4.  PURCHASE
      RIGHTS; FUNDAMENTAL TRANSACTIONS.

     

    (a)  Purchase
      Rights.
      In
      addition to any adjustments pursuant to Section 2 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of shares of Common Stock (the "Purchase
      Rights"),
      then
      the Holder will be entitled to acquire, upon the terms applicable to such
      Purchase Rights, the aggregate Purchase Rights which the Holder could have
      acquired if the Holder had held the number of shares of Common Stock acquirable
      upon complete exercise of this Warrant (without regard to any limitations on
      the
      exercise of this Warrant) immediately before the date on which a record is
      taken
      for the grant, issuance or sale of such Purchase Rights, or, if no such record
      is taken, the date as of which the record holders of shares of Common Stock
      are
      to be determined for the grant, issue or sale of such Purchase
      Rights.

     

    (b)  Fundamental
      Transactions.
      The
      Company shall not enter into or be party to a Fundamental Transaction unless
      (i)  the Successor Entity assumes in writing all of the obligations of the
      Company under this Warrant and the other Transaction Documents in accordance
      with the provisions of this Section (4)(b) pursuant to written agreements in
      form and substance satisfactory to the Required Holders and approved by the
      Required Holders prior to such Fundamental Transaction, including agreements
      to
      deliver to each holder of Warrants in exchange for such Warrants a security
      of
      the Successor Entity evidenced by a written instrument substantially similar
      in
      form and substance to this Warrant, including, without limitation, an adjusted
      exercise price equal to the value for the shares of Common Stock reflected
      by
      the terms of such Fundamental Transaction, and exercisable for a corresponding
      number of shares of capital stock equivalent to the shares of Common Stock
      acquirable and receivable upon exercise of this Warrant (without regard to
      any
      limitations on the exercise of this Warrant) prior to such Fundamental
      Transaction, and satisfactory to the Required Holders and (ii) the
      Successor Entity (including its Parent Entity) is a publicly traded corporation
      whose common stock is quoted on or listed for trading on an Eligible Market
      (a
      "Public
      Successor").
      Upon
      the occurrence of any Fundamental Transaction, the Successor Entity shall
      succeed to, and be substituted for (so that from and after the date of such
      Fundamental Transaction, the provisions of this Warrant referring to the
      "Company" shall refer instead to the Successor Entity), and may exercise every
      right and power of the Company and shall assume all of the obligations of the
      Company under this Warrant with the same effect as if such Successor Entity
      had
      been named as the Company herein. Upon consummation of the Fundamental
      Transaction, the Successor Entity shall deliver to the Holder confirmation
      that
      there shall be issued upon exercise of this Warrant at
      any
      time after the consummation of the Fundamental Transaction, in lieu of the
      shares of the Common Stock (or
      other
      securities, cash, assets or other property) issuable
      upon the exercise of the Warrant
      prior
      to
      such Fundamental Transaction,
      such
      shares of the publicly traded Common Stock (or its equivalent) of the Successor
      Entity (including its Parent Entity) which the Holder would have been entitled
      to receive upon the happening of such Fundamental Transaction had this Warrant
      been converted immediately prior to such Fundamental Transaction, as adjusted
      in
      accordance with the provisions of this Warrant. In addition to and not in
      substitution for any other rights hereunder, prior to the consummation of any
      Fundamental Transaction pursuant to which holders of shares of Common Stock
      are
      entitled to receive securities or other assets with respect to or in exchange
      for shares of Common Stock (a "Corporate
      Event"),
      the
      Company shall make appropriate provision to insure that the Holder will
      thereafter have the right to receive upon an exercise of this Warrant at any
      time after the consummation of the Fundamental Transaction but prior to the
      Expiration Date, in lieu of the shares of the Common Stock (or other securities,
      cash, assets or other property) issuable upon the exercise of the Warrant prior
      to such Fundamental Transaction,
      such
      shares of stock, securities, cash, assets or any other property whatsoever
      (including warrants or other purchase or subscription rights) which the Holder
      would have been entitled to receive upon the happening of such Fundamental
      Transaction had the Warrant been exercised immediately prior to such Fundamental
      Transaction. Provision
      made pursuant to the preceding sentence shall be in a form and substance
      reasonably satisfactory to the Required Holders. The provisions of this Section
      shall apply similarly and equally to successive Fundamental Transactions and
      Corporate Events and shall be applied without regard to any limitations on
      the
      exercise of this Warrant. 

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (c)  Notwithstanding
      the foregoing and the provisions of Section 4(b) above, in the event of a
      Fundamental Transaction where the Successor Entity is not a Public Successor,
      if
      the Holder has not exercised the Warrant in full prior to the consummation
      of
      the Fundamental Transaction, then the Company may enter into a Fundamental
      Transaction pursuant to which the Holder shall receive, simultaneously with
      the
      consummation of the Fundamental Transaction, in lieu of the warrant referred
      to
      in Section 4(b) cash in the amount equal to the value of the remaining
      unexercised portion of this Warrant on the date of such consummation, which
      value shall be determined by use of the Black and Scholes Option Pricing
      Model

     

    5.  NONCIRCUMVENTION.
      The
      Company hereby covenants and agrees that the Company will not, by amendment
      of
      its Certificate of Incorporation, Bylaws or through any reorganization, transfer
      of assets, consolidation, merger, scheme of arrangement, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms of this Warrant, and will at
      all
      times in good faith carry out all the provisions of this Warrant and take all
      action as may be required to protect the rights of the Holder. Without limiting
      the generality of the foregoing, the Company (i) shall not increase the par
      value of any shares of Common Stock receivable upon the exercise of this Warrant
      above the Exercise Price then in effect, (ii) shall take all such actions
      as may be necessary or appropriate in order that the Company may validly and
      legally issue fully paid and nonassessable shares of Common Stock upon the
      exercise of this Warrant, and (iii) shall, so long as any of the Warrants are
      outstanding, take all action necessary to reserve and keep available out of
      its
      authorized and unissued shares of Common Stock, solely for the purpose of
      effecting the exercise of the Warrants and the SPA Warrants and for effecting
      the conversion of the Convertible Note, 150% of the number of shares of Common
      Stock as shall from time to time be necessary to effect the exercise of such
      Warrants then outstanding and Conversion of such Convertible Note (without
      regard to any limitations on exercise).

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    6.  WARRANT
      HOLDER NOT DEEMED A STOCKHOLDER.
      Except
      as otherwise specifically provided herein, the Holder, solely in such Person's
      capacity as a holder of this Warrant, shall not be entitled to vote or receive
      dividends or be deemed the holder of share capital of the Company for any
      purpose, nor shall anything contained in this Warrant be construed to confer
      upon the Holder, solely in such Person's capacity as the Holder of this Warrant,
      any of the rights of a shareholder of the Company or any right to vote, give
      or
      withhold consent to any corporate action (whether any reorganization, issue
      of
      stock, reclassification of stock, consolidation, merger, conveyance or
      otherwise), receive notice of meetings, receive dividends or subscription
      rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
      which such Person is then entitled to receive upon the due exercise of this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on the Holder to purchase any securities (upon exercise
      of this Warrant or otherwise) or as a shareholder of the Company, whether such
      liabilities are asserted by the Company or by creditors of the Company.
      Notwithstanding this Section 6, the Company shall provide the Holder with copies
      of the same notices and other information given to the shareholders of the
      Company generally, contemporaneously with the giving thereof to the
      shareholders.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    7.  REISSUANCE
      OF WARRANT.

     

    (a)  Transfer
      of Warrant.
      If this
      Warrant is to be transferred, the Holder shall surrender this Warrant to the
      Company, whereupon the Company will forthwith issue and deliver upon the order
      of the Holder a new Warrant (in accordance with Section 7(d)), registered as
      the
      Holder may request, representing the right to purchase the number of Warrant
      Shares being transferred by the Holder and, if less then the total number of
      Warrant Shares then underlying this Warrant is being transferred, a new Warrant
      (in accordance with Section 7(d)) to the Holder representing the right to
      purchase the number of Warrant Shares not being transferred.

     

    (b)  Lost,
      Stolen or Mutilated Warrant.
      Upon
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Warrant, and, in the case of
      loss, theft or destruction, of any indemnification undertaking by the Holder
      to
      the Company in customary form and, in the case of mutilation, upon surrender
      and
      cancellation of this Warrant, the Company shall execute and deliver to the
      Holder a new Warrant (in accordance with Section 7(d)) representing the right
      to
      purchase the Warrant Shares then underlying this Warrant.

     

    (c)  Exchangeable
      for Multiple Warrants.
      This
      Warrant is exchangeable, upon the surrender hereof by the Holder at the
      principal office of the Company, for a new Warrant or Warrants (in accordance
      with Section 7(d)) representing in the aggregate the right to purchase the
      number of Warrant Shares then underlying this Warrant, and each such new Warrant
      will represent the right to purchase such portion of such Warrant Shares as
      is
      designated by the Holder at the time of such surrender; provided, however,
      that
      no Warrants for fractional shares of Common Stock shall be given.

     

    (d)  Issuance
      of New Warrants.
      Whenever the Company is required to issue a new Warrant pursuant to the terms
      of
      this Warrant, such new Warrant (i) shall be of like tenor with this Warrant,
      (ii) shall represent, as indicated on the face of such new Warrant, the right
      to
      purchase the Warrant Shares then underlying this Warrant (or in the case of
      a
      new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant
      Shares designated by the Holder which, when added to the number of shares of
      Common Stock underlying the other new Warrants issued in connection with such
      issuance, does not exceed the number of Warrant Shares then underlying this
      Warrant), (iii) shall have an issuance date, as indicated on the face of such
      new Warrant which is the same as the Issuance Date, and (iv) shall have the
      same
      rights and conditions as this Warrant.

     

    8.  NOTICES.
      Whenever notice is required to be given under this Warrant, unless otherwise
      provided herein, such notice shall be given in accordance with the Schedule
      to
      the Investment Agreement. The Company shall provide the Holder with prompt
      written notice of all actions taken pursuant to this Warrant, including in
      reasonable detail a description of such action and the reason therefore. Without
      limiting the generality of the foregoing, the Company will give written notice
      to the Holder (i) immediately upon any adjustment of the Exercise Price, setting
      forth in reasonable detail, and certifying, the calculation of such adjustment
      and (ii) at least fifteen days prior to the date on which the Company closes
      its
      books or takes a record (A) with respect to any dividend or distribution upon
      the shares of Common Stock, (B) with respect to any grants, issuances or sales
      of any Options, Convertible Securities or rights to purchase stock, warrants,
      securities or other property to holders of shares of Common Stock or (C) for
      determining rights to vote with respect to any Fundamental Transaction,
      dissolution or liquidation, provided in each case that such information shall
      be
      made known to the public prior to or in conjunction with such notice being
      provided to the Holder.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    9.  AMENDMENT
      AND WAIVER.
      Except
      as otherwise provided herein, the provisions of this Warrant may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company has obtained the
      written consent of the Required Holders; provided that no such action may
      increase the exercise price of the Warrant or decrease the number of shares
      or
      class of stock obtainable upon exercise of this Warrant without the written
      consent of the Holder. If there are more than one Warrants subsequently issued.
      Then no such amendment shall be effective to the extent that it applies to
      less
      than all of the holders of the Warrants then outstanding.

     

    10.  GOVERNING
      LAW.
      This
      Warrant shall be governed by and construed and enforced in accordance with,
      and
      all questions concerning the construction, validity, interpretation and
      performance of this Warrant shall be governed by, the internal laws of the
      State
      of New York, without giving effect to any choice of law or conflict of law
      provision or rule (whether of the State of New York or any other jurisdictions)
      that would cause the application of the laws of any jurisdictions other than
      the
      State of New York.

     

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

     

    12.  DISPUTE
      RESOLUTION.
      In the
      case of a dispute as to the determination of the Exercise Price or the
      arithmetic calculation of the Warrant Shares, the Company shall submit the
      disputed determinations or arithmetic calculations via facsimile within two
      Business Days of receipt of the Exercise Notice giving rise to such dispute,
      as
      the case may be, to the Holder. If the Holder and the Company are unable to
      agree upon such determination or calculation of the Exercise Price or the
      Warrant Shares within three Business Days of such disputed determination or
      arithmetic calculation being submitted to the Holder, then the Company shall,
      within two Business Days submit via facsimile (a) the disputed determination
      of
      the Exercise Price to an independent, reputable investment bank selected by
      the
      Company and approved by the Holder or (b) the disputed arithmetic calculation
      of
      the Warrant Shares to the Company's independent, outside accountant. The Company
      shall cause at its expense the investment bank or the accountant, as the case
      may be, to perform the determinations or calculations and notify the Company
      and
      the Holder of the results no later than ten Business Days from the time it
      receives the disputed determinations or calculations. Such investment bank's
      or
      accountant's determination or calculation, as the case may be, shall be binding
      upon all parties absent demonstrable error.

     

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

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    14.  TRANSFER.This
      Warrant may be offered for sale, sold, transferred or assigned without the
      consent of the Company, except as may otherwise be required by Section 2(f)
      of
      the Securities Purchase Agreement.

     

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

     

    (a)  "Approved
      Stock Plan"
      means
      any employee benefit plan which has been approved by the Board of Directors
      of
      the Company on any such approval date, pursuant to which the Company's
      securities may be issued to any employee, officer or director for services
      provided to the Company.

     

    (b)  "Bloomberg"
      means
      Bloomberg Financial Markets.

     

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

     

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

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (e)  "Common
      Stock"
      means
      (i) the Company's shares of Common Stock, par value $0.001 per share, and
      (ii) any share capital into which such Common Stock shall have been changed
      or any share capital resulting from a reclassification of such Common
      Stock.

     

    (f)  "Convertible
      Note"
      means
      that certain convertible promissory note in the original principal amount of
      $___________ and issued by the Company to Buyer pursuant to the Investment
      Agreement.

     

    (g)  "Convertible
      Securities"
      means
      any stock or securities (other than Options) directly or indirectly convertible
      into or exercisable or exchangeable for shares of Common Stock.

     

    (h)  "Dollar",
      "US
      Dollar"
      and
      "$"
      each
      mean the lawful money of the United States.

     

    (i)  "Eligible
      Market"
      means
      the Principal Market, The New York Stock Exchange, Inc., the American Stock
      Exchange, The NASDAQ Global Market, The NASDAQ Capital Market or The NASDAQ
      Global Select Market.

     

    (j)  "Excluded
      Securities"
      means
      any Common Stock issued or issuable: (i) in connection with any Approved Stock
      Plan; (ii) upon the exercise of this Warrant or the SPA Warrants; (iii) upon
      conversion of the Convertible Note, (iv) warrants issued by the Company to
      the
      Placement Agent (as defined in the Securities Purchase Agreement), and (v)
      in
      connection with the Sibiono Acquisition (provided, however, that the aggregate
      number of shares of Common Stock issued in connection with the Sibiono
      Acquisition which shall be considered Excluded Securities may not exceed
      9,952,008).

     

    (k)  "Expiration
      Date"
      means
      the date November 14, 2011, or if such day is other than a Business Day or
      a day
      on which trading does not take place on the Principal Market (a "Holiday"),
      the
      next date that is not a Holiday.

     

    (l)  "Fundamental
      Transaction"
      means
      that the Company shall, directly or indirectly, in one or more related
      transactions, (i) consolidate or merge with or into (whether or not the Company
      is the surviving corporation) another Person, or (ii) sell, assign, transfer,
      convey or otherwise dispose of all or substantially all of the properties or
      assets of the Company to another Person, or (iii) allow another Person to make
      a
      purchase, tender or exchange offer that is accepted by the holders of more
      than
      the 50% of the outstanding shares of Common Stock (not including any shares
      of
      Common Stock held by the Person or Persons making or party to, or associated
      or
      affiliated with the Persons making or party to, such purchase, tender or
      exchange offer), or (iv) consummate a stock purchase agreement or other business
      combination (including, without limitation, a reorganization, recapitalization,
      spin-off or scheme of arrangement) with another Person whereby such other Person
      acquires more than the 50% of the outstanding shares of Common Stock (not
      including any shares of Common Stock held by the other Person or other Persons
      making or party to, or associated or affiliated with the other Persons making
      or
      party to, such stock purchase agreement or other business combination), (v)
      reorganize, recapitalize or reclassify its Common Stock, or (vi) any "person"
      or
      "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of
      the
      Exchange Act) is or shall become the "beneficial owner" (as defined in Rule
      13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
      ordinary voting power represented by issued and outstanding Common
      Stock..

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (m)  "Options"
      means
      any rights, warrants or options to subscribe for or purchase shares of Common
      Stock or Convertible Securities.

     

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

     

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

     

    (p)  "Principal
      Market"
      means
      the NASD OTC Bulletin Board.

     

    (q)  "Registration
      Rights Agreement"
      means
      that certain registration rights agreement by and among the Company and
      Holder.

     

    (r)  "Required
      Holders"
      means
      the holders of this Warrant, or if this Warrant is subdivided into or exchanged
      for more than one Warrant, then the holders of those Warrants representing
      at
      least a majority of shares of Common Stock underlying all of the Warrants then
      outstanding.

     

    (s)  "Securities
      Purchase Agreement"
      means
      that certain securities purchase agreement dated as of November 15, 2006 among
      the Company (then known as Applied Spectrum Technologies, Inc.), Ever Leader
      Holdings, Limited and the Persons referred to as “Buyers” as set forth
      therein.

     

    (t)  “Sibiono
      Acquisition”
means
      the Company, through its subsidiary Hubei Tongi Benda Ebei Pharmaceutical Co.,
      Ltd, a People’s Republic of China entity) (“Tongi
      Benda”)
      has
      entered into various share purchase agreements with certain shareholders of
      Shenzhan Sibiono Gene Tech Co., Ltd, a People’s Republic of China company
      (“Sibiono” and the shareholders referred to as the “Sibiono
      Shareholders”)
      pursuant to which the Company, through Tongi Benda, would acquire approximately
      sixty eight percent (68%), and possibly more, of the outstanding capital stock
      of Sibiono (the “Sibiono
      Acquisition”).

     

    (u)  "SPA
      Securities"
      means,
      collectively, any Common Stock issued pursuant to the Securities Purchase
      Agreement and any Common Stock issuable upon exercise of any SPA
      Warrants.

     

    (v)  “SPA
      Warrants” means
      the
      warrants issued pursuant to the Securities Purchase Agreement.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	 	
              BENDA
                PHARMACEUTICAL,
                INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                Yiqing Wan  

              Title:
                Chief Executive Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    EXERCISE
      NOTICE

    TO
      BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

    WARRANT
      TO PURCHASE COMMON STOCK

    

    BENDA
      PHARMACEUTICAL, INC.

     

    The
      undersigned holder hereby exercises the right to purchase _________________
      of
      the shares of Common Stock ("Warrant
      Shares")
      of
      Benda Pharmaceutical, Inc., a Delaware corporation (the "Company"),
      evidenced by the attached Warrant to Purchase Common Stock (the "Warrant").
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    1.
      Payment of Exercise Price. The holder shall pay the Aggregate Exercise Price
      in
      the sum of $___________________ to the Company in accordance with the terms
      of
      the Warrant.

    

    2.
      Delivery of Warrant Shares. The Company shall deliver to the holder __________
      Warrant Shares in accordance with the terms of the Warrant.

    

    Date:
      _______________ __, ______

     

    
      	 	 	 	 
	 	 	 	 
	
              
                
Name
                of Registered Holder

            	 	 	
            

    

     

    
      	 	 	 	 
	
              By:  

            	 	 	 
	
              
                

              

              Name:

              Title:

            	 	 	
            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    ACKNOWLEDGMENT

    

    The
      Company hereby acknowledges this Exercise Notice and hereby directs
      Computershare Trust Company, Inc. to issue the above indicated number of shares
      of Common Stock in accordance with the Instructions set forth above from the
      Company and acknowledged and agreed to by Computershare Trust Company,
      Inc.

    
      	 	 	 
	 	BENDA
              PHARMACEUTICAL, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]