Document:

f8k0808ex10ii_guangzhou.htm

               EXHIBIT
      B

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement
      (this “Agreement”) is made and entered into as of July 31, 2007, between
      Guangzhou Global Telecom, Inc., a Florida corporation (the “Company”) and
      each of the several purchasers signatory hereto (each such purchaser, a
“Purchaser” and, collectively, the “Purchasers”).

    

                   This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof, between the Company and each Purchaser (the “Purchase
      Agreement”).

    

                   The
      Company and each Purchaser hereby agrees as follows:

    

            1.                      Definitions

    

                   Capitalized
      terms used and not otherwise defined herein that are defined in the Purchase
      Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have
      the following meanings:

    

                    
      “Advice” shall have the meaning set forth in Section 6(d).

    

    “Effectiveness
      Date” means, with respect to the Initial Registration Statement required to
      be filed hereunder, the 90th calendar
      day
      following the date hereof (or, in the event of a “full review” by the
      Commission, the 120th calendar
      day
      following the date hereof) and with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the 90th calendar
      day
      following the date on which an additional Registration Statement is required
      to
      be filed hereunder; provided, however, that in the event the
      Company is notified by the Commission that one or more of the above Registration
      Statements will not be reviewed or is no longer subject to further review and
      comments, the Effectiveness Date as to such Registration Statement shall be
      the
      fifth Trading Day following the date on which the Company is so notified if
      such
      date precedes the dates otherwise required above.

    

    “Effectiveness
      Period” shall have the meaning set forth in Section 2(a).

    

    “Event”
      shall have the meaning set forth in Section 2(b).

    

    “Event
      Date” shall have the meaning set forth in Section 2(b).

    

    “Filing
      Date” means, with respect to the Initial Registration Statement required
      hereunder, the 30th calendar
      day
      following the date hereof and, with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the earliest
      practical date on which the Company is permitted by SEC Guidance to file such
      additional Registration Statement related to the Registrable
      Securities.

     

     

    
      
        
        

      

      
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    “Holder”
      or “Holders” means the holder or holders, as the case may be, from time
      to time of Registrable Securities.

    

    “Indemnified
      Party” shall have the meaning set forth in Section 5(c).

    

    “Indemnifying
      Party” shall have the meaning set forth in Section 5(c).

    

    “Initial
      Registration Statement” means the initial Registration Statement filed
      pursuant to this Agreement.

    

    “Initial
      Shares” means a number of Registrable Securities equal to the lesser of (i)
      the total number of Registrable Securities; or (ii) one-third of the number
      of
      issued and outstanding shares of Common Stock that are held by non-affiliates
      of
      the Company on the day immediately prior to the filing date of the Initial
      Registration Statement.

    

    “Losses”
      shall have the meaning set forth in Section 5(a).

    

    “Plan
      of Distribution” shall have the meaning set forth in Section
      2(a).

    

    “Prospectus”
      means the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated by the Commission pursuant to the Securities Act), as
      amended or supplemented by any prospectus supplement, with respect to the terms
      of the offering of any portion of the Registrable Securities covered by a
      Registration Statement, and all other amendments and supplements to the
      Prospectus, including post-effective amendments, and all material incorporated
      by reference or deemed to be incorporated by reference in such
      Prospectus.

    

    “Registrable
      Securities” means 130% of (i) all the shares of Common Stock issuable upon
      conversion in full of the Debentures (assuming on the date of determination
      the
      Debentures are converted in full without regard to any conversion limitations
      therein), (ii) all shares of Common Stock issuable as interest and principal
      on
      the Debentures assuming all permissible interest and principal payments are
      made
      in shares of Common Stock and the Debentures are held until maturity and using
      the lowest VWAP in the prior 90 day period to make such calculation, (iii)
      all
      Warrant Shares (assuming on the date of determination the Warrants are exercised
      in full without regard to any exercise limitations therein), (iv) any additional
      shares of Common Stock issuable in connection with any anti-dilution provisions
      in the Debentures or the Warrants (in each case, without giving effect to any
      limitations on conversion set forth in the Debentures or limitations on exercise
      set forth in the Warrant) and (v) any securities issued or issuable upon any
      stock split, dividend or other distribution,  recapitalization or
      similar event with respect to the foregoing.

    
 

    
      
        
        

      

      
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    “Registration
      Statement” means the registration statement required to be filed hereunder
      and any additional registration statements contemplated by Section 3(c),
      including (in each case) the Prospectus, amendments and supplements to such
      registration statement or Prospectus, including pre- and post-effective
      amendments, all exhibits thereto, and all material incorporated by reference
      or
      deemed to be incorporated by reference in such registration
      statement.

    

     “Rule
      415” means Rule 415 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended or interpreted from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

    

    “Rule
      424” means Rule 424 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended or interpreted from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

    

    “Selling
      Shareholder Questionnaire” shall have the meaning set forth in Section
      3(a).

    

    “SEC
      Guidance” means (i) any publicly-available written or oral guidance,
      comments, requirements or requests of the Commission staff and (ii) the
      Securities Act.

    

            2.                      Shelf
      Registration

    

    (a)  On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a Registration Statement covering the resale of all or such maximum
      portion of the Registrable Securities as permitted by SEC Guidance (provided
      that the Company shall use diligent efforts to advocate with the Commission
      for
      the registration of all of the Registrable Securities in accordance with the
      SEC
      Guidance, including without limitation, the Manual of Publicly Available
      Telephone Interpretations D.29) that are not then registered on an effective
      Registration Statement for an offering to be made on a continuous basis pursuant
      to Rule 415.  The Registration Statement shall be on Form S-3 (except
      if the Company is not then eligible to register for resale the Registrable
      Securities on Form S-3, in which case such registration shall be on another
      appropriate form in accordance herewith) and shall contain (unless otherwise
      directed by at least a 75% majority in interest of the Holders) substantially
      the “Plan of Distribution” attached hereto as Annex
      A.  Subject to the terms of this Agreement, the Company shall use
      its best efforts to cause a Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but
      in any event prior to the applicable Effectiveness Date, and shall use its
      best
      efforts to keep such Registration Statement continuously effective under the
      Securities Act until all Registrable Securities covered by such Registration
      Statement have been sold, or may be sold without volume restrictions pursuant
      to
      Rule 144(k), as determined by the counsel to the Company pursuant to a written
      opinion letter to such effect, addressed and acceptable to the Transfer Agent
      and the affected Holders (the “Effectiveness Period”).  The
      Company shall telephonically request effectiveness of a Registration Statement
      as of 5:00 p.m. New York City time on a Trading
      Day.   

     

     

    
      
        
        

      

      
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    The
      Company shall immediately notify the Holders via facsimile or by e-mail of
      the
      effectiveness of a Registration Statement on the same Trading Day that the
      Company telephonically confirms effectiveness with the Commission, which shall
      be the date requested for effectiveness of such Registration
      Statement.  The Company shall, by 9:30 a.m. New York City time on the
      Trading Day after the effective date of such Registration Statement, file a
      final Prospectus with the Commission as required by Rule 424.  Failure
      to so notify the Holder within 1 Trading Day of such notification of
      effectiveness or failure to file a final Prospectus as foresaid shall be deemed
      an Event under Section 2(b).  Notwithstanding any other provision of
      this Agreement and subject to the payment of liquidated damages pursuant to
      Section 2(b), if any SEC Guidance sets forth a limitation on the number of
      Registrable Securities permitted to be registered on a particular Registration
      Statement (and notwithstanding that the Company used diligent efforts to
      advocate with the Commission for the registration of all or a greater portion
      of
      Registrable Securities), unless otherwise directed in writing by a Holder as
      to
      its Registrable Securities, the number of Registrable Securities to be
      registered on such Registration Statement will first be reduced by Registrable
      Securities represented by Warrant Shares (applied, in the case that some Warrant
      Shares may be registered, to the Holders on a pro rata basis based on the total
      number of unregistered Warrant Shares held by such Holders), and second by
      Registrable Securities represented by Conversion Shares (applied, in the case
      that some Conversion Shares may be registered, to the Holders on a pro rata
      basis based on the total number of unregistered Conversion Shares held by such
      Holders); provided, however, that, prior to any reduction in the
      number of Registrable Securities included in a Registration Statement as set
      forth in this sentence, the number of shares of Common Stock set forth on
      Schedule 6(b) hereto which shall have been included on such Registration
      Statement shall be reduced by up to 100% before any Registrable Securities
      are
      excluded.

    

    (b)  If:
      (i)
      the Initial Registration Statement is not filed on or prior to its Filing Date
      (if the Company files the Initial Registration Statement without affording
      the
      Holders the opportunity to review and comment on the same as required by Section
      3(a) herein, the Company shall be deemed to have not satisfied this clause
      (i)),
      or (ii) the Company fails to file with the Commission a request for acceleration
      of a Registration Statement in accordance with Rule 461 promulgated by the
      Commission pursuant to the Securities Act, within five Trading Days of the
      date
      that the Company is notified (orally or in writing, whichever is earlier) by
      the
      Commission that such Registration Statement will not be “reviewed” or will not
      be subject to further review, or (iii) prior to the effective date of a
      Registration Statement, the Company fails to file a pre-effective amendment
      and
      otherwise respond in writing to comments made by the Commission in respect
      of
      such Registration Statement within 10 Trading Days after the receipt of comments
      by or notice from the Commission that such amendment is required in order for
      such Registration Statement to be declared effective, or (iv) as to, in the
      aggregate among all Holders on a pro-rata basis based on their purchase of
      the
      Securities pursuant to the Purchase Agreement, a Registration Statement
      registering for resale all of the Initial Shares is not declared effective
      by
      the Commission by the Effectiveness Date of the Initial Registration Statement,
      or (v) all of the Registrable Securities are not registered for resale pursuant
      to one or more effective Registration Statements on or before February 1, 2008,
      or 

     

     

    
      
        
        

      

      
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    (vi)
      after the effective date of a Registration Statement, such Registration
      Statement ceases for any reason to remain continuously effective as to all
      Registrable Securities included in such Registration Statement, or the Holders
      are otherwise not permitted to utilize the Prospectus therein to resell such
      Registrable Securities, for more than 25 consecutive calendar days or more
      than
      an aggregate of 30 calendar days (which need not be consecutive calendar days)
      during any 12-month period (any such failure or breach being referred to as
      an
“Event”, and for purposes of clause (i), (iv) and (v) the date on which
      such Event occurs, and for purpose of clause (ii) the date on which such five
      Trading Day period is exceeded, and for purpose of clause (iii) the date which
      such 10 calendar day period is exceeded, and for purpose of clause (vi) the
      date
      on which such 25 or 30 calendar day period, as applicable, is exceeded being
      referred to as “Event Date”), then, in addition to any other rights the
      Holders may have hereunder or under applicable law, on each such Event Date
      and
      on each monthly anniversary of each such Event Date (if the applicable Event
      shall not have been cured by such date) until the applicable Event is cured,
      the
      Company shall pay to each Holder an amount in cash, as partial liquidated
      damages and not as a penalty, if during the 6 month period immediately following
      the date hereof, 2% of the aggregate purchase price paid by such Holder pursuant
      to the Purchase Agreement for any unregistered Registrable Securities then
      held
      by such Holder and 1% per month of such amount thereafter.  If the
      Company fails to pay any partial liquidated damages pursuant to this Section
      in
      full within seven days after the date payable, the Company will pay interest
      thereon at a rate of 18% per annum (or such lesser maximum amount that is
      permitted to be paid by applicable law) to the Holder, accruing daily from
      the
      date such partial liquidated damages are due until such amounts, plus all such
      interest thereon, are paid in full. The partial liquidated damages pursuant
      to
      the terms hereof shall apply on a daily pro rata basis for any portion of a
      month prior to the cure of an Event.

    

    3.           Registration
      Procedures.

    

                   In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

    

    (a)  Not
      less
      than 5 Trading Days prior to the filing of each Registration Statement and
      not
      less than one Trading Day prior to the filing of any related Prospectus or
      any
      amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference), the Company
      shall (i) furnish to each Holder copies of all such documents proposed to be
      filed, which documents (other than those incorporated or deemed to be
      incorporated by reference) will be subject to the review of such Holders and
      (ii) cause its officers and directors, counsel and independent certified public
      accountants to respond to such inquiries as shall be necessary, in the
      reasonable opinion of respective counsel to each Holder, to conduct a reasonable
      investigation within the meaning of the Securities Act. The Company shall not
      file a Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities shall reasonably object in good faith, provided that the Company
      is
      notified of such objection in writing no later than 5 Trading Days after the
      Holders have been so furnished copies of a Registration Statement or 1 Trading
      Day after the Holders have been so furnished copies of any related Prospectus
      or
      amendments or supplements thereto. 

     

     

    
      
        
        

      

      
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    Each
      Holder agrees to furnish to the Company a completed questionnaire in the form
      attached to this Agreement as Annex B (a “Selling Shareholder
      Questionnaire”) not less than two Trading Days prior to the Filing Date or
      by the end of the fourth Trading Day following the date on which such Holder
      receives draft materials in accordance with this Section.

    

    (b)  (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
      424; (iii) respond as promptly as reasonably possible to any comments received
      from the Commission with respect to a Registration Statement or any amendment
      thereto and provide as promptly as reasonably possible to the Holders true
      and
      complete copies of all correspondence from and to the Commission relating to
      a
      Registration Statement (provided that the Company may excise any information
      contained therein which would constitute material non-public information as
      to
      any Holder which has not executed a confidentiality agreement with the Company);
      and (iv) comply in all material respects with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a Registration Statement during the applicable period
      in
      accordance (subject to the terms of this Agreement) with the intended methods
      of
      disposition by the Holders thereof set forth in such Registration Statement
      as
      so amended or in such Prospectus as so supplemented.

    

    (c)  If
      during
      the Effectiveness Period, the number of Registrable Securities at any time
      exceeds 100% of the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable, but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of not less than
      the
      number of such Registrable Securities.

    

    (d)  Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (iii) through (vi) hereof, be accompanied by an instruction to
      suspend the use of the Prospectus until the requisite changes have been made)
      as
      promptly as reasonably possible (and, in the case of (i)(A) below, not less
      than
      one Trading Day prior to such filing) and (if requested by any such Person)
      confirm such notice in writing no later than one Trading Day following the
      day
      (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to a Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review” of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement; and (C) with respect to a Registration Statement or
      any
      post-effective amendment, when the same has become effective;

     

     

    
      
        
        

      

      
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     (ii)
      of any request by the Commission or any other federal or state governmental
      authority for amendments or supplements to a Registration Statement or
      Prospectus or for additional information; (iii) of the issuance by the
      Commission or any other federal or state governmental authority of any stop
      order suspending the effectiveness of a Registration Statement covering any
      or
      all of the Registrable Securities or the initiation of any Proceedings for
      that
      purpose; (iv) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any Proceeding for such purpose; (v) of the occurrence of any
      event or passage of time that makes the financial statements included in a
      Registration Statement ineligible for inclusion therein or any statement made
      in
      a Registration Statement or Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference untrue in any material respect or that
      requires any revisions to a Registration Statement, Prospectus or other
      documents so that, in the case of a Registration Statement or the Prospectus,
      as
      the case may be, it will not contain any untrue statement of a material fact
      or
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading; and (vi) of the occurrence or existence of any pending
      corporate development with respect to the Company that the Company believes
      may
      be material and that, in the determination of the Company, makes it not in
      the
      best interest of the Company to allow continued availability of a Registration
      Statement or Prospectus, provided that any and all of such information shall
      remain confidential to each Holder until such information otherwise becomes
      public, unless disclosure by a Holder is required by law; provided,
further, that notwithstanding each Holder’s agreement to keep such
      information confidential, each such Holder makes no acknowledgement that any
      such information is material, non-public information.

    

    (e)  Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order stopping or suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

    

    (f)  Furnish
      to each Holder, without charge, at least one conformed copy of each such
      Registration Statement and each amendment thereto, including financial
      statements and schedules, all documents incorporated or deemed to be
      incorporated therein by reference to the extent requested by such Person, and
      all exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission; provided, that any such item which is available
      on the EDGAR system need not be furnished in physical form.

    

    (g)  Subject
      to the terms of this Agreement, the Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by each of the selling
      Holders in connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto, except
      after
      the giving of any notice pursuant to Section 3(d).

     

     

    
      
        
        

      

      
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    (h)   If
      requested by a registered broker dealer in connection with the resale of the
      Registrable Securities by any Holder, the Company shall effect a filing with
      respect to the public offering contemplated by each Registration Statement
      (an
“Issuer Filing”) with the National Association of Securities Dealers,
      Inc. (“NASD”) Corporate Financing Department pursuant to NASD Rule 2710
      as described in proposed NASD Rule 2710(b)(10)(A)(i) within one Trading Day
      of
      the date that the Registration Statement is first filed with the Commission
      and
      pay the filing fee required by such Issuer Filing.  The Company shall
      use commercially reasonable efforts to pursue the Issuer Filing until the NASD
      issues a letter confirming that it does not object to the terms of the offering
      contemplated by the Registration Statement as described in the Plan of
      Distribution attached hereto as Annex A.  A copy of the Issuer
      Filing and all related correspondence to or from the NASD with respect thereto
      shall be provided to FWS.

    

    (i)  Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided, that the Company
      shall not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified, subject the Company to any material tax
      in
      any such jurisdiction where it is not then so subject or file a general consent
      to service of process in any such jurisdiction.

    

    (j)  If
      requested by a Holder, cooperate with such Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holder may
      request.

    

    (k)  Upon
      the
      occurrence of any event contemplated by Section 3(d), as promptly as reasonably
      possible under the circumstances taking into account the Company’s good faith
      assessment of any adverse consequences to the Company and its stockholders
      of
      the premature disclosure of such event, prepare a supplement or amendment,
      including a post-effective amendment, to a Registration Statement or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither a Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. 

     

     

    
      
        
        

      

      
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    If
      the
      Company notifies the Holders in accordance with clauses (iii) through (vi)
      of
      Section 3(d) above to suspend the use of any Prospectus until the requisite
      changes to such Prospectus have been made, then the Holders shall suspend use
      of
      such Prospectus.  The Company will use its best efforts to ensure that
      the use of the Prospectus may be resumed as promptly as is
      practicable.  The Company shall be entitled to exercise its right
      under this Section 3(k) to suspend the availability of a Registration Statement
      and Prospectus, subject to the payment of partial liquidated damages otherwise
      required pursuant to Section 2(b), for a period not to exceed 60 calendar days
      (which need not be consecutive days) in any 12 month period.

    

    (l)  Comply
      with all applicable rules and regulations of the Commission.

    

    (m)  The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the natural persons thereof that
      have
      voting and dispositive control over the shares. During any periods that the
      Company is unable to meet its obligations hereunder with respect to the
      registration of the Registrable Securities solely because any Holder fails
      to
      furnish such information within three Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

    

            4.                      Registration
      Expenses. All fees and expenses incident to the performance of or compliance
      with this Agreement by the Company shall be borne by the Company whether or
      not
      any Registrable Securities are sold pursuant to a Registration Statement. The
      fees and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses of the Company’s counsel and auditors) (A) with respect to
      filings made with the Commission, (B) with respect to filings required to be
      made with any Trading Market on which the Common Stock is then listed for
      trading, (C) in compliance with applicable state securities or Blue Sky laws
      reasonably agreed to by the Company in writing (including, without limitation,
      fees and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities) and (D) if not
      previously paid by the Company in connection with an Issuer Filing, with respect
      to any filing that may be required to be made by any broker through which a
      Holder intends to make sales of Registrable Securities with the NASD pursuant
      to
      NASD Rule 2710, so long as the broker is receiving no more than a customary
      brokerage commission in connection with such sale, (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities), (iii) messenger, telephone and delivery expenses,
      (iv)
      fees and disbursements of counsel for the Company, (v) Securities Act liability
      insurance, if the Company so desires such insurance, and (vi) fees and expenses
      of all other Persons retained by the Company in connection with the consummation
      of the transactions contemplated by this Agreement.  In addition, the
      Company shall be responsible for all of its internal expenses incurred in
      connection with the consummation of the transactions contemplated by this
      Agreement (including, without limitation, all salaries and expenses of its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit and the fees and expenses incurred in connection with the
      listing of the Registrable Securities on any securities exchange as required
      hereunder.  In no event shall the Company be responsible for any
      broker or similar commissions of any Holder or, except to the extent provided
      for in the Transaction Documents, any legal fees or other costs of the
      Holders.

     

     

    
      
        
        

      

      
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            5.                      Indemnification.

    

    (a)  Indemnification
      by the Company. The Company shall, notwithstanding any termination of this
      Agreement, indemnify and hold harmless each Holder, the officers, directors,
      members, partners, agents, brokers (including brokers who offer and sell
      Registrable Securities as principal as a result of a pledge or any failure
      to
      perform under a margin call of Common Stock), investment advisors and employees
      (and any other Persons with a functionally equivalent role of a Person holding
      such titles, notwithstanding a lack of such title or any other title) of each
      of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, members, shareholders, partners, agents and employees (and any other
      Persons with a functionally equivalent role of a Person holding such titles,
      notwithstanding a lack of such title or any other title) of each such
      controlling Person, to the fullest extent permitted by applicable law, from
      and
      against any and all losses, claims, damages, liabilities, costs (including,
      without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to (1) any untrue or
      alleged untrue statement of a material fact contained in a Registration
      Statement, any Prospectus or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      any
      Prospectus or supplement thereto, in light of the circumstances under which
      they
      were made) not misleading or (2) any violation or alleged violation by the
      Company of the Securities Act, the Exchange Act or any state securities law,
      or
      any rule or regulation thereunder, in connection with the performance of its
      obligations under this Agreement, except to the extent, but only to the extent,
      that (i) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates to
      such Holder or such Holder’s proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in a Registration Statement, such Prospectus or in any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose) or (ii) in the case of an occurrence
      of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
      Holder of an outdated or defective Prospectus after the Company has notified
      such Holder in writing that the Prospectus is outdated or defective and prior
      to
      the receipt by such Holder of the Advice contemplated in Section
      6(d).  The Company shall notify the Holders promptly of the
      institution, threat or assertion of any Proceeding arising from or in connection
      with the transactions contemplated by this Agreement of which the Company is
      aware.

     

    
 

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b)  Indemnification
      by Holders. Each Holder shall, severally and not jointly, indemnify and hold
      harmless the Company, its directors, officers, agents and employees, each Person
      who controls the Company (within the meaning of Section 15 of the Securities
      Act
      and Section 20 of the Exchange Act), and the directors, officers, agents or
      employees of such controlling Persons, to the fullest extent permitted by
      applicable law, from and against all Losses, as incurred, to the extent arising
      out of or based solely upon: (x) such Holder’s failure to comply with the
      prospectus delivery requirements of the Securities Act or (y) any untrue or
      alleged untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or in any amendment or supplement thereto or in
      any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading (i) to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished in writing by such Holder to the Company specifically for inclusion
      in
      such Registration Statement or such Prospectus or (ii) to the extent that such
      information relates to such Holder’s proposed method of distribution of
      Registrable Securities and was reviewed and expressly approved in writing by
      such Holder expressly for use in a Registration Statement (it being understood
      that the Holder has approved Annex A hereto for this purpose), such Prospectus
      or in any amendment or supplement thereto or (ii) in the case of an occurrence
      of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
      Holder of an outdated or defective Prospectus after the Company has notified
      such Holder in writing that the Prospectus is outdated or defective and prior
      to
      the receipt by such Holder of the Advice contemplated in Section 6(d). In no
      event shall the liability of any selling Holder hereunder be greater in amount
      than the dollar amount of the net proceeds received by such Holder upon the
      sale
      of the Registrable Securities giving rise to such indemnification
      obligation.

    

    (c)  Conduct
      of Indemnification Proceedings. If any Proceeding shall be brought or
      asserted against any Person entitled to indemnity hereunder (an “Indemnified
      Party”), such Indemnified Party shall promptly notify the Person from whom
      indemnity is sought (the “Indemnifying Party”) in writing, and the
      Indemnifying Party shall have the right to assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; provided, that the failure of any Indemnified Party to give such notice
      shall not relieve the Indemnifying Party of its obligations or liabilities
      pursuant to this Agreement, except (and only) to the extent that it shall be
      finally determined by a court of competent jurisdiction (which determination
      is
      not subject to appeal or further review) that such failure shall have prejudiced
      the Indemnifying Party.

    

                   An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless:  (1) the Indemnifying Party has agreed in writing to pay such
      fees and expenses; (2) the Indemnifying Party shall have failed promptly to
      assume the defense of such Proceeding and to employ counsel reasonably
      satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
      parties to any such Proceeding (including any impleaded parties) include both
      such Indemnified Party and the Indemnifying Party, and counsel to the
      Indemnified Party shall reasonably believe that a material conflict of interest
      is likely to exist if the same counsel were to represent such Indemnified Party
      and the Indemnifying Party (in which case, if such Indemnified Party notifies
      the Indemnifying Party in writing that it elects to employ separate counsel
      at
      the expense of the Indemnifying Party, the Indemnifying Party shall not have
      the
      right to assume the defense thereof and the reasonable fees and expenses of
      no
      more than one separate counsel shall be at the expense of the Indemnifying
      Party).  

     

     

    
      
        
        

      

      
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    The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld or delayed.  No Indemnifying Party shall, without the prior
      written consent of the Indemnified Party, effect any settlement of any pending
      Proceeding in respect of which any Indemnified Party is a party, unless such
      settlement includes an unconditional release of such Indemnified Party from
      all
      liability on claims that are the subject matter of such Proceeding.

    

                   Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is judicially
      determined to be not entitled to indemnification hereunder.

    

    (d)  Contribution.
      If the indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party or insufficient to hold an Indemnified Party harmless for
      any
      Losses, then each Indemnifying Party shall contribute to the amount paid or
      payable by such Indemnified Party, in such proportion as is appropriate to
      reflect the relative fault of the Indemnifying Party and Indemnified Party
      in
      connection with the actions, statements or omissions that resulted in such
      Losses as well as any other relevant equitable considerations. The relative
      fault of such Indemnifying Party and Indemnified Party shall be determined
      by
      reference to, among other things, whether any action in question, including
      any
      untrue or alleged untrue statement of a material fact or omission or alleged
      omission of a material fact, has been taken or made by, or relates to
      information supplied by, such Indemnifying Party or Indemnified Party, and the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action, statement or omission.  The amount
      paid or payable by a party as a result of any Losses shall be deemed to include,
      subject to the limitations set forth in this Agreement, any reasonable
      attorneys’ or other fees or expenses incurred by such party in connection with
      any Proceeding to the extent such party would have been indemnified for such
      fees or expenses if the indemnification provided for in this Section was
      available to such party in accordance with its terms.

    

                   The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding
      paragraph.  

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    Notwithstanding
      the provisions of this Section 5(d), no Holder shall be required to contribute,
      in the aggregate, any amount in excess of the amount by which the net proceeds
      actually received by such Holder from the sale of the Registrable Securities
      subject to the Proceeding exceeds the amount of any damages that such Holder
      has
      otherwise been required to pay by reason of such untrue or alleged untrue
      statement or omission or alleged omission.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

            6.                 Miscellaneous.

    

    (a)  Remedies.  In
      the event of a breach by the Company or by a Holder of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, shall be entitled to
      specific performance of its rights under this Agreement.  The Company
      and each Holder agree that monetary damages would not provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall not assert
      or shall waive the defense that a remedy at law would be adequate.

    

    (b)  No
      Piggyback on Registrations; Prohibition on Filing Other Registration
      Statements. Except as set forth on Schedule 6(b) attached hereto,
      neither the Company nor any of its security holders (other than the Holders
      in
      such capacity pursuant hereto) may include securities of the Company in any
      Registration Statements other than the Registrable Securities.  The
      Company shall not file any other registration statements until all Registrable
      Securities are registered pursuant to a Registration Statement that is declared
      effective by the Commission, provided that this Section 6(b) shall not prohibit
      the Company from filing amendments to registration statements filed prior to
      the
      date of this Agreement.

    

    (c)  Compliance.
      Each Holder covenants and agrees that it will comply with the prospectus
      delivery requirements of the Securities Act as applicable to it in connection
      with sales of Registrable Securities pursuant to a Registration
      Statement.

    

    (d)  Discontinued
      Disposition.  By its acquisition of Registrable Securities, each
      Holder agrees that, upon receipt of a notice from the Company of the occurrence
      of any event of the kind described in Section 3(d)(iii) through (vi), such
      Holder will forthwith discontinue disposition of such Registrable Securities
      under a Registration Statement until it is advised in writing (the
“Advice”) by the Company that the use of the applicable Prospectus (as it
      may have been supplemented or amended) may be resumed.  The Company
      will use its best efforts to ensure that the use of the Prospectus may be
      resumed as promptly as is practicable.  The Company agrees and
      acknowledges that any periods during which the Holder is required to discontinue
      the disposition of the Registrable Securities hereunder shall be subject to
      the
      provisions of Section 2(b).

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
 

    (e)  Piggy-Back
      Registrations. If, at any time during the Effectiveness Period, there is not
      an effective Registration Statement covering all of the Registrable Securities
      and the Company shall determine to prepare and file with the Commission a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with the Company’s stock option or other
      employee benefit plans, then the Company shall deliver to each Holder a written
      notice of such determination and, if within fifteen days after the date of
      the
      delivery of such notice, any such Holder shall so request in writing, the
      Company shall include in such registration statement all or any part of such
      Registrable Securities such Holder requests to be registered; provided,
however, that the Company shall not be required to register any
      Registrable Securities pursuant to this Section 6(e) that are eligible for
      resale pursuant to Rule 144(k) promulgated by the Commission pursuant to the
      Securities Act or that are the subject of a then effective Registration
      Statement.

    

    (f)  Amendments
      and Waivers. The provisions of this Agreement, including the provisions of
      this sentence, may not be amended, modified or supplemented, and waivers or
      consents to departures from the provisions hereof may not be given, unless
      the
      same shall be in writing and signed by the Company and the Holders of a majority
      of the then outstanding Registrable Securities (including, for this purpose
      any
      Registrable Securities issuable upon exercise or conversion of any
      Security).  If a Registration Statement does not register all of the
      Registrable Securities pursuant to a waiver or amendment done in compliance
      with
      the previous sentence, then the number of Registrable Securities to be
      registered for each Holder shall be reduced pro rata among all Holders and
      each
      Holder shall have the right to designate which of its Registrable Securities
      shall be omitted from such Registration Statement. Notwithstanding the
      foregoing, a waiver or consent to depart from the provisions hereof with respect
      to a matter that relates exclusively to the rights of a Holder or some Holders
      and that does not directly or indirectly affect the rights of other Holders
      may
      be given by such Holder or Holders of all of the Registrable Securities to
      which
      such waiver or consent relates; provided, however, that the
      provisions of this sentence may not be amended, modified, or supplemented except
      in accordance with the provisions of the first  sentence of this
      Section 6(f).

    

    (g)  Notices.
      Any and all notices or other communications or deliveries required or permitted
      to be provided hereunder shall be delivered as set forth in the Purchase
      Agreement.

    

    (h)  Successors
      and Assigns. This Agreement shall inure to the benefit of and be binding
      upon the successors and permitted assigns of each of the parties and shall
      inure
      to the benefit of each Holder. The Company may not assign (except by merger)
      its
      rights or obligations hereunder without the prior written consent of all of
      the
      Holders of the then outstanding Registrable Securities. Each Holder may assign
      their respective rights hereunder in the manner and to the Persons as permitted
      under the Purchase Agreement.

    

    (i)  No
      Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has
      entered, as of the date hereof, nor shall the Company or any of its
      Subsidiaries, on or after the date of this Agreement, enter into any agreement
      with respect to its securities, that would have the effect of impairing the
      rights granted to the Holders in this Agreement or otherwise conflicts with
      the
      provisions hereof.  Except as set forth on Schedule 6(i),
      neither the Company nor any of its Subsidiaries has previously entered into
      any
      agreement granting any registration rights with respect to any of its securities
      to any Person that have not been satisfied in full.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    (j)  Execution
      and Counterparts. This Agreement may be executed in two or more
      counterparts, all of which when taken together shall be considered one and
      the
      same agreement and shall become effective when counterparts have been signed
      by
      each party and delivered to the other party, it being understood that both
      parties need not sign the same counterpart.  In the event that any
      signature is delivered by facsimile transmission or by e-mail delivery of a
      “.pdf” format data file, such signature shall create a valid and binding
      obligation of the party executing (or on whose behalf such signature is
      executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

    

    (k)  Governing
      Law.  All questions concerning the construction, validity,
      enforcement and interpretation of this Agreement shall be determined in
      accordance with the provisions of the Purchase Agreement.

    

    (l)  Cumulative
      Remedies. The remedies provided herein are cumulative and not exclusive of
      any other remedies provided by law.

    

    (m)  Severability.
      If any term, provision, covenant or restriction of this Agreement is held by
      a
      court of competent jurisdiction to be invalid, illegal, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions set forth
      herein shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated, and the parties hereto shall use their commercially
      reasonable efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

    (n)  Headings.
      The headings in this Agreement are for convenience only, do not constitute
      a
      part of the Agreement and shall not be deemed to limit or affect any of the
      provisions hereof.

    

    (o)  Independent
      Nature of Holders’ Obligations and Rights. The obligations of each Holder
      hereunder are several and not joint with the obligations of any other Holder
      hereunder, and no Holder shall be responsible in any way for the performance
      of
      the obligations of any other Holder hereunder. Nothing contained herein or
      in
      any other agreement or document delivered at any closing, and no action taken
      by
      any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders
      as a partnership, an association, a joint venture or any other kind of entity,
      or create a presumption that the Holders are in any way acting in concert with
      respect to such obligations or the transactions contemplated by this Agreement.
      Each Holder shall be entitled to protect and enforce its rights, including
      without limitation the rights arising out of this Agreement, and it shall not
      be
      necessary for any other Holder to be joined as an additional party in any
      proceeding for such purpose.

    

    ********************

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
 

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

    

    
      	
              GUANGZHOU
                GLOBAL TELECOM, INC.

               

               

            
	
              By: 
                /s/  Li Yankuan            

                   Name:
                Li Yankuan

                   Title:
                Chief Executive Officer

               

            

    

    

    

    

    

    

    

    

    

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
 

    [SIGNATURE
      PAGE OF HOLDERS TO GZGT RRA]

    

    

    Name
      of
      Holder: __________________________

    

    Signature
      of Authorized Signatory of Holder: __________________________

    

    Name
      of
      Authorized Signatory: _________________________

    

    Title
      of
      Authorized Signatory: __________________________

    

    

    

    [SIGNATURE
      PAGES CONTINUE]

     

     

    
      
        
        

      

      
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    Annex
      A

    

    Plan
      of Distribution

    

    Each
      Selling Stockholder (the “Selling Stockholders”) of the common stock and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of common stock on the principal Trading
      Market or any other stock exchange, market or trading facility on which the
      shares are traded or in private transactions.  These sales may be at
      fixed or negotiated prices.  A Selling Stockholder may use any one or
      more of the following methods when selling shares:

     

    
      	
              ·  

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	
              ·  

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	
              ·  

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	
              ·  

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	
              ·  

            	
              privately
                negotiated transactions;

            

    

     

    
      	
              ·  

            	
              settlement
                of short sales entered into after the effective date of the registration
                statement of which this prospectus is a
                part;

            

    

     

    
      	
              ·  

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	
              ·  

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or
                otherwise;

            

    

     

    
      	
              ·  

            	
              a
                combination of any such methods of sale;
                or

            

    

     

    
      	
              ·  

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities Act”), if available, rather than
      under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales.  Broker-dealers may receive commissions or
      discounts from the Selling Stockholders (or, if any broker-dealer acts as agent
      for the purchaser of shares, from the purchaser) in amounts to be negotiated,
      but, except as set forth in a supplement to this Prospectus, in the case of
      an
      agency transaction not in excess of a customary brokerage commission in
      compliance with NASDR Rule 2440; and in the case of a principal transaction
      a
      markup or markdown in compliance with NASDR IM-2440.

     

     

    
      
        
        

      

      
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    In
      connection with the sale of the common stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume.  The Selling
      Stockholders may also sell shares of the common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities.  The
      Selling Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales.  In such event, any
      commissions received by such broker-dealers or agents and any profit on the
      resale of the shares purchased by them may be deemed to be underwriting
      commissions or discounts under the Securities Act.  Each Selling
      Stockholder has informed the Company that it does not have any written or oral
      agreement or understanding, directly or indirectly, with any person to
      distribute the Common Stock. In no event shall any broker-dealer receive fees,
      commissions and markups which, in the aggregate, would exceed eight percent
      (8%).

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares.  The Company has agreed to
      indemnify the Selling Stockholders against certain losses, claims, damages
      and
      liabilities, including liabilities under the Securities Act.

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act including Rule 172 thereunder.  In addition, any
      securities covered by this prospectus which qualify for sale pursuant to Rule
      144 under the Securities Act may be sold under Rule 144 rather than under this
      prospectus.  There is no underwriter or coordinating broker acting in
      connection with the proposed sale of the resale shares by the Selling
      Stockholders.

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(k) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to this prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect.  The resale shares will be sold
      only through registered or licensed brokers or dealers if required under
      applicable state securities laws. In addition, in certain states, the resale
      shares may not be sold unless they have been registered or qualified for sale
      in
      the applicable state or an exemption from the registration or qualification
      requirement is available and is complied with.

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to the common stock for the applicable restricted
      period, as defined in Regulation M, prior to the commencement of the
      distribution.  In addition, the Selling Stockholders will be subject
      to applicable provisions of the Exchange Act and the rules and regulations
      thereunder, including Regulation M, which may limit the timing of purchases
      and
      sales of shares of the common stock by the Selling Stockholders or any other
      person.  We will make copies of this prospectus available to the
      Selling Stockholders and have informed them of the need to deliver a copy of
      this prospectus to each purchaser at or prior to the time of the sale (including
      by compliance with Rule 172 under the Securities Act).

     

     

     

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

     

    Annex
      B

     

    Guangzhou
      Global Telecom, Inc.

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock (the “Registrable
      Securities”) of Guangzhou Global Telecom, Inc., a Florida corporation (the
“Company”), understands that the Company has filed or intends to file
      with the Securities and Exchange Commission (the “Commission”) a
      registration statement (the “Registration Statement”) for the
      registration and resale under Rule 415 of the Securities Act of 1933, as amended
      (the “Securities Act”), of the Registrable Securities, in accordance with
      the terms of the Registration Rights Agreement (the “Registration Rights
      Agreement”) to which this document is annexed.  A copy of the
      Registration Rights Agreement is available from the Company upon request at
      the
      address set forth below.  All capitalized terms not otherwise defined
      herein shall have the meanings ascribed thereto in the Registration Rights
      Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus.  Accordingly,
      holders and beneficial owners of Registrable Securities are advised to consult
      their own securities law counsel regarding the consequences of being named
      or
      not being named as a selling securityholder in the Registration Statement and
      the related prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling Securityholder”) of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it in the Registration Statement.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    
      	
               

            	
              1.

            	
              Name.

            

    

     

    
      	
               

            	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 
	 

    

    

    
      	
               

            	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities are
                held:

            

    

    
       

      
        	 
	 

      

      

    

    
      	
               

            	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by this
                Questionnaire):

            

    

    
       

      
        	 
	 

    

    
      	
               

            	
              2.  Address
                for Notices to Selling
                Securityholder:

            

    

     

    
      	 
	 
	 
	
              Telephone:
                

            
	
              Fax:

            
	
              Contact
                Person:

            

    

    

    
      	
               

            	
              3.  Broker-Dealer
                Status:

            

    

     

    
      	
               

            	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes   o                      No   o

     

    
      	
               

            	
              (b)

            	
              If
                “yes” to Section 3(a), did you receive your Registrable Securities as
                compensation for investment banking services to the
                Company?

            

    

    
       

      Yes   o                      No   o

       

    

    
      	
              Note:

            	
              If
                “no” to Section 3(b), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

     

    
      	
               

            	
              (c)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    
                      Yes   o                      No   o

       

    

     

    
      	
               

            	
              (d)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                purchased
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    
                      Yes   o                      No   o

       

    

    
      	
              Note:

            	
              If
                “no” to Section 3(d), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    
      	
               

            	
              4.  Beneficial
                Ownership of Securities of the Company Owned by the Selling
                Securityholder.

            

    

     

    Except
      as set forth below in this Item 4, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the securities
      issuable pursuant to the Purchase Agreement.

     

    
      	
               

            	
              (a)

            	
              Type
                and Amount of other securities beneficially owned by the Selling
                Securityholder:

            

    

     

    
      	 
	 
	 

    

    

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              5.  Relationships
                with the Company:

            

    

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    
      	
               

            	
              State
                any exceptions here:

            

    

     

    
      	 
	 
	 

    

    

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 5 and the inclusion of such
      information in the Registration Statement and the related prospectus and any amendments or supplements
      thereto.  The undersigned understands that such information
      will be relied upon by the Company in connection with the preparation or
      amendment of the Registration Statement and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    Date:  _____________________________                 Beneficial
      Owner:_____________________________________                                                                         

    

    By:  _______________________________________________                                                                       

    Name:

    Title:

    

    PLEASE
      FAX OR E-MAIL (BY PDF) A COPY OF THE COMPLETED AND EXECUTED NOTICE AND
      QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL,
      TO:

    

    Anslow
      & Jaclin, LLP

    195
      Route
      9 South, Suite 204

    Manalapan,
      New Jersey 07726

    Attn:
      Richard I. Anslow, Esq.

    FAX:
      (732) 577-1188

    Email:
      ranslow@anslowlaw.com

     

    24f8k0808ex10iii_guangzhou.htm

    
      EXHIBIT
        F

      

      SUBSIDIARY
        GUARANTEE

      

      SUBSIDIARY
        GUARANTEE, dated as of July 31, 2007 (this “Guarantee”), made by each of
        the signatories hereto (together with any other entity that may become a
        party
        hereto as provided herein, the “Guarantors”), in favor of the purchasers
        signatory (the “Purchasers”) to that certain Securities Purchase
        Agreement, dated as of the date hereof, between Guangzhou Global Telecom,
        Inc, a
        Florida corporation (the “Company”) and the Purchasers.

       

      

      W
        I T N E S S E T H:

      

      WHEREAS,
        pursuant to that certain Securities Purchase Agreement, dated as of the date
        hereof, by and between the Company and the Purchasers (the “Purchase
        Agreement”), the Company has agreed to sell and issue to the Purchasers, and
        the Purchasers have agreed to purchase from the Company the Company’s Secured
        Convertible Debentures (the “Debentures”), subject to the terms and
        conditions set forth therein; and

      

      WHEREAS,
        each Guarantor will directly
        benefit from the extension of credit to the Company represented by the issuance
        of the Debentures; and

      

      NOW,
        THEREFORE, in consideration of the
        premises and to induce the Purchasers to enter into the Purchase Agreement
        and
        to carry out the transactions contemplated thereby, each Guarantor hereby
        agrees
        with the Purchasers as follows:

      

      1.  Definitions.
        Unless otherwise defined herein, terms defined in the Purchase Agreement
        and
        used herein shall have the meanings given to them in the Purchase Agreement.
        The
        words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import
        when used in this Guarantee shall refer to this Guarantee as a whole and
        not to
        any particular provision of this Guarantee, and Section and Schedule references
        are to this Guarantee unless otherwise specified. The meanings given to terms
        defined herein shall be equally applicable to both the singular and plural
        forms
        of such terms.  The following terms shall have the following
        meanings:

      

      “Guarantee”
        means this Subsidiary Guarantee, as the same may be amended, supplemented
        or
        otherwise modified from time to time.

      

                   “Obligations”
        means, in addition to all other costs and expenses of collection incurred
        by
        Purchasers in enforcing any of such Obligations and/or this Guarantee, all
        of
        the liabilities and obligations (primary, secondary, direct, contingent,
        sole,
        joint or several) due or to become due, or that are now or may be hereafter
        contracted or acquired, or owing to, of any Debtor to the Secured Parties,
        including, without limitation, all obligations under this Agreement, the
        Debentures, this Guarantee and any other instruments, agreements or other
        documents executed and/or delivered in connection herewith or therewith,
        in each
        case, whether now or hereafter existing, voluntary or involuntary, direct
        or
        indirect, absolute or contingent, liquidated or unliquidated, whether or
        not
        jointly owed with others, and whether or not from time to time decreased
        or
        extinguished and later increased, created or incurred, and all or any portion
        of
        such obligations or liabilities that are paid, to the extent all or any part
        of
        such payment is avoided or recovered directly or indirectly from any of the
        Secured Parties as a preference, fraudulent transfer or otherwise as such
        obligations may be amended, supplemented, converted, extended or modified
        from
        time to time.  

       

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      Without
        limiting the generality of the foregoing, the term “Obligations” shall include,
        without limitation: (i) principal of, and interest on the Debentures and
        the
        loans extended pursuant thereto; (ii) any and all other fees, indemnities,
        costs, obligations and liabilities of the Debtors from time to time under
        or in
        connection with this Agreement, the Debentures, the Guarantee and any other
        instruments, agreements or other documents executed and/or delivered in
        connection herewith or therewith; and (iii) all amounts (including but not
        limited to post-petition interest) in respect of the foregoing that would
        be
        payable but for the fact that the obligations to pay such amounts are
        unenforceable or not allowable due to the existence of a bankruptcy,
        reorganization or similar proceeding involving any Debtor.

      

      2.  Guarantee.

      

      (a)  Guarantee.

      

      
        	
                (i)  

              	
                The
                  Guarantors hereby, jointly and severally, unconditionally and irrevocably,
                  guarantee to the Purchasers and their respective successors, indorsees,
                  transferees and assigns, the prompt and complete payment and performance
                  by the Company when due (whether at the stated maturity, by acceleration
                  or otherwise) of the Obligations.

              

      

      

      
        	
                (ii)  

              	
                Anything
                  herein or in any other Transaction Document to the contrary
                  notwithstanding, the maximum liability of each Guarantor hereunder
                  and
                  under the other Transaction Documents shall in no event exceed
                  the amount
                  which can be guaranteed by such Guarantor under applicable federal
                  and
                  state laws, including laws relating to the insolvency of debtors,
                  fraudulent conveyance or transfer or laws affecting the rights
                  of
                  creditors generally (after giving effect to the right of contribution
                  established in Section 2(b)).

              

      

      

      
        	
                (iii)  

              	
                Each
                  Guarantor agrees that the Obligations may at any time and from
                  time to
                  time exceed the amount of the liability of such Guarantor hereunder
                  without impairing the guarantee contained in this Section 2 or
                  affecting
                  the rights and remedies of the Purchasers
                  hereunder.

              

      

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
 

      
        	
                (iv)  

              	
                The
                  guarantee contained in this Section 2 shall remain in full force
                  and
                  effect until all the Obligations and the obligations of each Guarantor
                  under the guarantee contained in this Section 2 shall have been
                  satisfied
                  by payment in full.

              

      

      

      
        	
                (v)  

              	
                No
                  payment made by the Company, any of the Guarantors, any other guarantor
                  or
                  any other Person or received or collected by the Purchasers from
                  the
                  Company, any of the Guarantors, any other guarantor or any other
                  Person by
                  virtue of any action or proceeding or any set-off or appropriation
                  or
                  application at any time or from time to time in reduction of or
                  in payment
                  of the Obligations shall be deemed to modify, reduce, release or
                  otherwise
                  affect the liability of any Guarantor hereunder which shall,
                  notwithstanding any such payment (other than any payment made by
                  such
                  Guarantor in respect of the Obligations or any payment received
                  or
                  collected from such Guarantor in respect of the Obligations), remain
                  liable for the Obligations up to the maximum liability of such
                  Guarantor
                  hereunder until the Obligations are paid in
                  full.

              

      

      

      
        	
                (vi)  

              	
                Notwithstanding
                  anything to the contrary in this Agreement, with respect to any
                  defaulted
                  non-monetary Obligations the specific performance of which by the
                  Guarantors is not reasonably possible (e.g. the issuance of the
                  Company's
                  Common Stock), the Guarantors shall only be liable for making the
                  Purchasers whole on a monetary basis for the Company's failure
                  to perform
                  such Obligations in accordance with the Transaction
                  Documents.

              

      

      

      (b)  Right
        of Contribution. Each Guarantor hereby agrees that to the extent that a
        Guarantor shall have paid more than its proportionate share of any payment
        made
        hereunder, such Guarantor shall be entitled to seek and receive contribution
        from and against any other Guarantor hereunder which has not paid its
        proportionate share of such payment. Each Guarantor's right of contribution
        shall be subject to the terms and conditions of Section 2(c). The provisions
        of
        this Section 2(b) shall in no respect limit the obligations and liabilities
        of
        any Guarantor to the Purchasers, and each Guarantor shall remain liable to
        the
        Purchasers for the full amount guaranteed by such Guarantor
        hereunder.

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
 

      (c)  No
        Subrogation.  Notwithstanding any payment made by any Guarantor
        hereunder or any set-off or application of funds of any Guarantor by the
        Purchasers, no Guarantor shall be entitled to be subrogated to any of the
        rights
        of the Purchasers against the Company or any other Guarantor or any collateral
        security or guarantee or right of offset held by the Purchasers for the payment
        of the Obligations, nor shall any Guarantor seek or be entitled to seek any
        contribution or reimbursement from the Company or any other Guarantor in
        respect
        of payments made by such Guarantor hereunder, until all amounts owing to
        the
        Purchasers by the Company on account of the Obligations are paid in full.
        If any
        amount shall be paid to any Guarantor on account of such subrogation rights
        at
        any time when all of the Obligations shall not have been paid in full, such
        amount shall be held by such Guarantor in trust for the Purchasers, segregated
        from other funds of such Guarantor, and shall, forthwith upon receipt by
        such
        Guarantor, be turned over to the Purchasers in the exact form received by
        such
        Guarantor (duly indorsed by such Guarantor to the Purchasers, if required),
        to
        be applied against the Obligations, whether matured or unmatured, in such
        order
        as the Purchasers may determine.

      

      (d)  Amendments,
        Etc. With Respect to the Obligations. Each Guarantor shall remain obligated
        hereunder notwithstanding that, without any reservation of rights against
        any
        Guarantor and without notice to or further assent by any Guarantor, any demand
        for payment of any of the Obligations made by the Purchasers may be rescinded
        by
        the Purchasers and any of the Obligations continued, and the Obligations,
        or the
        liability of any other Person upon or for any part thereof, or any collateral
        security or guarantee therefor or right of offset with respect thereto, may,
        from time to time, in whole or in part, be renewed, extended, amended, modified,
        accelerated, compromised, waived, surrendered or released by the Purchasers,
        and
        the Purchase Agreement and the other Transaction Documents and any other
        documents executed and delivered in connection therewith may be amended,
        modified, supplemented or terminated, in whole or in part, as the Purchasers
        may
        deem advisable from time to time, and any collateral security, guarantee
        or
        right of offset at any time held by the Purchasers for the payment of the
        Obligations may be sold, exchanged, waived, surrendered or released. The
        Purchasers shall have no obligation to protect, secure, perfect or insure
        any
        Lien at any time held by them as security for the Obligations or for the
        guarantee contained in this Section 2 or any property subject
        thereto.

      

      (e)  Guarantee
        Absolute and Unconditional. Each Guarantor waives any and all notice of the
        creation, renewal, extension or accrual of any of the Obligations and notice
        of
        or proof of reliance by the Purchasers upon the guarantee contained in this
        Section 2 or acceptance of the guarantee contained in this Section 2; the
        Obligations, and any of them, shall conclusively be deemed to have been created,
        contracted or incurred, or renewed, extended, amended or waived, in reliance
        upon the guarantee contained in this Section 2; and all dealings between
        the
        Company and any of the Guarantors, on the one hand, and the Purchasers, on
        the
        other hand, likewise shall be conclusively presumed to have been had or
        consummated in reliance upon the guarantee contained in this Section 2.

       

       

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      Each
        Guarantor waives to the extent permitted by law diligence, presentment,
        protest, demand for payment and notice of default or nonpayment to or upon
        the
        Company or any of the Guarantors with respect to the Obligations. Each Guarantor
        understands and agrees that the guarantee contained in this Section 2 shall
        be
        construed as a continuing, absolute and unconditional guarantee of payment
        without regard to (a) the validity or enforceability of the Purchase Agreement
        or any other Transaction Document, any of the Obligations or any other
        collateral security therefor or guarantee or right of offset with respect
        thereto at any time or from time to time held by the Purchasers, (b) any
        defense, set-off or counterclaim (other than a defense of payment or performance
        or fraud or misconduct by Purchasers) which may at any time be available
        to or
        be asserted by the Company or any other Person against the Purchasers, or
        (c)
        any other circumstance whatsoever (with or without notice to or knowledge
        of the
        Company or such Guarantor) which constitutes, or might be construed to
        constitute, an equitable or legal discharge of the Company for the Obligations,
        or of such Guarantor under the guarantee contained in this Section 2, in
        bankruptcy or in any other instance. When making any demand hereunder or
        otherwise pursuing its rights and remedies hereunder against any Guarantor,
        the
        Purchasers may, but shall be under no obligation to, make a similar demand
        on or
        otherwise pursue such rights and remedies as they may have against the Company,
        any other Guarantor or any other Person or against any collateral security
        or
        guarantee for the Obligations or any right of offset with respect thereto,
        and
        any failure by the Purchasers to make any such demand, to pursue such other
        rights or remedies or to collect any payments from the Company, any other
        Guarantor or any other Person or to realize upon any such collateral security
        or
        guarantee or to exercise any such right of offset, or any release of the
        Company, any other Guarantor or any other Person or any such collateral
        security, guarantee or right of offset, shall not relieve any Guarantor of
        any
        obligation or liability hereunder, and shall not impair or affect the rights
        and
        remedies, whether express, implied or available as a matter of law, of the
        Purchasers against any Guarantor. For the purposes hereof, “demand” shall
        include the commencement and continuance of any legal proceedings.

      

      (f)  Reinstatement.
        The guarantee contained in this Section 2 shall continue to be effective,
        or be
        reinstated, as the case may be, if at any time payment, or any part thereof,
        of
        any of the Obligations is rescinded or must otherwise be restored or returned
        by
        the Purchasers upon the insolvency, bankruptcy, dissolution, liquidation
        or
        reorganization of the Company or any Guarantor, or upon or as a result of
        the
        appointment of a receiver, intervenor or conservator of, or trustee or similar
        officer for, the Company or any Guarantor or any substantial part of its
        property, or otherwise, all as though such payments had not been
        made.

      

      (g)  Payments.
        Each Guarantor hereby guarantees that payments hereunder will be paid to
        the
        Purchasers without set-off or counterclaim in U.S. dollars at the address
        set
        forth or referred to in the Purchase Agreement.

       

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
 

      3.  Representations
        and Warranties. Each Guarantor hereby makes the following representations
        and warranties to Purchasers as of the date hereof:

      

      (a)  Organization
        and Qualification. The Guarantor is a corporation, duly incorporated,
        validly existing and in good standing under the laws of the applicable
        jurisdiction set forth on Schedule 1, with the requisite corporate power
        and
        authority to own and use its properties and assets and to carry on its business
        as currently conducted. The Guarantor has no subsidiaries other than those
        identified as such on the Disclosure Schedules to the Purchase Agreement.
        The
        Guarantor is duly qualified to do business and is in good standing as a foreign
        corporation in each jurisdiction in which the nature of the business conducted
        or property owned by it makes such qualification necessary, except where
        the
        failure to be so qualified or in good standing, as the case may be, could
        not,
        individually or in the aggregate, (x) adversely affect the legality, validity
        or
        enforceability of any of this Guaranty in any material respect, (y) have
        a
        material adverse effect on the results of operations, assets, prospects,
        or
        financial condition of the Guarantor or (z) adversely impair in any material
        respect the Guarantor's ability to perform fully on a timely basis its
        obligations under this Guaranty (a “Material Adverse
        Effect”).

      

      (b)  Authorization;
        Enforcement.  The Guarantor has the requisite corporate power and
        authority to enter into and to consummate the transactions contemplated by
        this
        Guaranty, and otherwise to carry out its obligations hereunder. The execution
        and delivery of this Guaranty by the Guarantor and the consummation by it
        of the
        transactions contemplated hereby have been duly authorized by all requisite
        corporate action on the part of the Guarantor. This Guaranty has been duly
        executed and delivered by the Guarantor and constitutes the valid and binding
        obligation of the Guarantor enforceable against the Guarantor in accordance
        with
        its terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
        laws
        relating to, or affecting generally the enforcement of, creditors' rights
        and
        remedies or by other equitable principles of general application.

      

      (c)  No
        Conflicts. The execution, delivery and performance of this Guaranty by the
        Guarantor and the consummation by the Guarantor of the transactions contemplated
        thereby do not and will not (i) conflict with or violate any provision of
        its
        Certificate of Incorporation or By-laws or (ii) conflict with, constitute
        a
        default (or an event which with notice or lapse of time or both would become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation of, any agreement, indenture or instrument to
        which
        the Guarantor is a party, or 

       

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

       

      (iii)
        result in a violation of any law, rule, regulation, order, judgment, injunction,
        decree or other restriction of any court or governmental authority to which
        the
        Guarantor is subject (including Federal and state securities laws and
        regulations), or by which any material property or asset of the Guarantor
        is
        bound or affected, except in the case of each of clauses (ii) and (iii),
        such
        conflicts, defaults, terminations, amendments, accelerations, cancellations
        and
        violations as could not, individually or in the aggregate, have or result
        in a
        Material Adverse Effect. The business of the Guarantor is not being conducted
        in
        violation of any law, ordinance or regulation of any governmental authority,
        except for violations which, individually or in the aggregate, do not have
        a
        Material Adverse Effect.

      

      (d)  Consents
        and Approvals. The Guarantor is not required to obtain any consent, waiver,
        authorization or order of, or make any filing or registration with, any court
        or
        other federal, state, local, foreign or other governmental authority or other
        person in connection with the execution, delivery and performance by the
        Guarantor of this Guaranty.

      

      (e)  Purchase
        Agreement. The representations and warranties of the Company set forth in
        the Purchase Agreement as they relate to such Guarantor, each of which is
        hereby
        incorporated herein by reference, are true and correct as of each time such
        representations are deemed to be made pursuant to such Purchase Agreement,
        and
        the Purchasers shall be entitled to rely on each of them as if they were
        fully
        set forth herein, provided that each reference in each such representation
        and
        warranty to the Company's knowledge shall, for the purposes of this Section
        3,
        be deemed to be a reference to such Guarantor's knowledge.

      

      (f)  Foreign
        Law.  Each Guarantor has consulted with appropriate foreign legal
        counsel with respect to any of the above representations for which non-U.S.
        law
        is applicable. Such foreign counsel have advised each applicable Guarantor
        that
        such counsel knows of no reason why any of the above representations would
        not
        be true and accurate. Such foreign counsel was provided with copies of this
        Subsidiary Guarantee and the Transaction Documents prior to rendering their
        advice.

      

      4.  Covenants.

      

      (a)  Each
        Guarantor covenants and agrees with the Purchasers that, from and after the
        date
        of this Guarantee until the Obligations shall have been paid in full, such
        Guarantor shall take, and/or shall refrain from taking, as the case may be,
        each
        commercially reasonable action that is necessary to be taken or not taken,
        as
        the case may be, so that no Event of Default is caused by the failure to
        take
        such action or to refrain from taking such action by such
        Guarantor.

      

      (b)  So
        long
        as any of the Obligations are outstanding, unless Purchasers holding at least
        75% of the aggregate principal amount of the then outstanding Debentures
        shall
        otherwise consent in writing, each Guarantor will not directly or indirectly
        on
        or after the date of this Guarantee:

       

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
 

      i.  Except
        with respect to a Permitted Indebtedness (as defined in the Debentures),
        enter
        into, create, incur, assume or suffer to exist any indebtedness for borrowed
        money of any kind, including but not limited to, a guarantee, on or with
        respect
        to any of its property or assets now owned or hereafter acquired or any interest
        therein or any income or profits therefrom;

      

      ii.  Except
        with respect to a Permitted Liens (as defined in the Debentures), enter into,
        create, incur, assume or suffer to exist any liens of any kind, on or with
        respect to any of its property or assets now owned or hereafter acquired
        or any
        interest therein or any income or profits therefrom;

      

      iii.  amend
        its
        certificate of incorporation, bylaws or other charter documents so as to
        adversely affect any rights of the Holder hereunder;

      

      iv.  repay,
        repurchase or offer to repay, repurchase or otherwise acquire more than a
        de
        minimis number of shares of its securities or debt obligations;

      

      v.  pay
        cash
        dividends on any equity securities of the Company;

      

      vi.  enter
        into any transaction with any Affiliate of the Guarantor which would be required
        to be disclosed in any public filing of the Company with the Commission,
        unless
        such transaction is made on an arm’s-length basis and expressly approved by a
        majority of the disinterested directors of the Company (even if less than
        a
        quorum otherwise required for board approval); or

      

      vii.  enter
        into any agreement with respect to any of the foregoing.

      

      5.  Miscellaneous.

      

      (a)  Amendments
        in Writing. None of the terms or provisions of this Guarantee may be waived,
        amended, supplemented or otherwise modified except in writing by the
        Purchasers.

      

      (b)  Notices.
        All notices, requests and demands to or upon the Purchasers or any Guarantor
        hereunder shall be effected in the manner provided for in the Purchase
        Agreement, provided that any such notice, request or demand to or upon any
        Guarantor shall be addressed to such Guarantor at its notice address set
        forth
        on Schedule 5(b).

       

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
 

      (c)  No
        Waiver By Course Of Conduct; Cumulative Remedies. The Purchasers shall not
        by any act (except by a written instrument pursuant to Section 5(a)), delay,
        indulgence, omission or otherwise be deemed to have waived any right or remedy
        hereunder or to have acquiesced in any default under the Transaction Documents
        or Event of Default. No failure to exercise, nor any delay in exercising,
        on the
        part of the Purchasers, any right, power or privilege hereunder shall operate
        as
        a waiver thereof. No single or partial exercise of any right, power or privilege
        hereunder shall preclude any other or further exercise thereof or the exercise
        of any other right, power or privilege. A waiver by the Purchasers of any
        right
        or remedy hereunder on any one occasion shall not be construed as a bar to
        any
        right or remedy which the Purchasers would otherwise have on any future
        occasion. The rights and remedies herein provided are cumulative, may be
        exercised singly or concurrently and are not exclusive of any other rights
        or
        remedies provided by law.

      

      (d)  Enforcement
        Expenses; Indemnification.

      

      
        	
                (i)  

              	
                Each
                  Guarantor agrees to pay, or reimburse the Purchasers for, all its
                  costs
                  and expenses incurred in collecting against such Guarantor under
                  the
                  guarantee contained in Section 2 or otherwise enforcing or preserving
                  any
                  rights under this Guarantee and the other Transaction Documents
                  to which
                  such Guarantor is a party, including, without limitation, the reasonable
                  fees and disbursements of counsel to the
                  Purchasers.

              

      

      

      
        	
                (ii)  

              	
                Each
                  Guarantor agrees to pay, and to save the Purchasers harmless from,
                  any and
                  all liabilities with respect to, or resulting from any delay in
                  paying,
                  any and all stamp, excise, sales or other taxes which may be payable
                  or
                  determined to be payable in connection with any of the transactions
                  contemplated by this Guarantee.

              

      

      

      
        	
                (iii)  

              	
                Each
                  Guarantor agrees to pay, and to save the Purchasers harmless from,
                  any and
                  all liabilities, obligations, losses, damages, penalties, actions,
                  judgments, suits, costs, expenses or disbursements of any kind
                  or nature
                  whatsoever with respect to the execution, delivery, enforcement,
                  performance and administration of this Guarantee to the extent
                  the Company
                  would be required to do so pursuant to the Purchase
                  Agreement.

              

      

      

      
        	
                (iv)  

              	
                The
                  agreements in this Section shall survive repayment of the Obligations
                  and
                  all other amounts payable under the Purchase Agreement and the
                  other
                  Transaction Documents.

              

      

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      
 

      (e)  Successor
        and Assigns. This Guarantee shall be binding upon the successors and assigns
        of each Guarantor and shall inure to the benefit of the Purchasers and their
        respective successors and assigns; provided that no Guarantor may assign,
        transfer or delegate any of its rights or obligations under this Guarantee
        without the prior written consent of the Purchasers.

      
 

      (f)  Set-Off.
        Each Guarantor hereby irrevocably authorizes the Purchasers at any time and
        from
        time to time while an Event of Default under any of the Transaction Documents
        shall have occurred and be continuing, without notice to such Guarantor or
        any
        other Guarantor, any such notice being expressly waived by each Guarantor,
        to
        set-off and appropriate and apply any and all deposits, credits, indebtedness
        or
        claims, in any currency, in each case whether direct or indirect, absolute
        or
        contingent, matured or unmatured, at any time held or owing by the Purchasers
        to
        or for the credit or the account of such Guarantor, or any part thereof in
        such
        amounts as the Purchasers may elect, against and on account of the obligations
        and liabilities of such Guarantor to the Purchasers hereunder and claims
        of
        every nature and description of the Purchasers against such Guarantor, in
        any
        currency, whether arising hereunder, under the Purchase Agreement, any other
        Transaction Document or otherwise, as the Purchasers may elect, whether or
        not
        the Purchasers have made any demand for payment and although such obligations,
        liabilities and claims may be contingent or unmatured. The Purchasers shall
        notify such Guarantor promptly of any such set-off and the application made
        by
        the Purchasers of the proceeds thereof, provided that the failure to give
        such
        notice shall not affect the validity of such set-off and application. The
        rights
        of the Purchasers under this Section are in addition to other rights and
        remedies(including, without limitation, other rights of set-off) which the
        Purchasers may have.

      

      (g)  Counterparts.
        This Guarantee may be executed by one or more of the parties to this Guarantee
        on any number of separate counterparts (including by telecopy), and all of
        said
        counterparts taken together shall be deemed to constitute one and the same
        instrument.

      

      (h)  Severability.
        Any provision of this Guarantee which is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof, and any such prohibition or unenforceability in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction.

      

      (i)  Section
        Headings. The Section headings used in this Guarantee are for convenience of
        reference only and are not to affect the construction hereof or be taken
        into
        consideration in the interpretation hereof.

      

      (j)  Integration.
        This Guarantee and the other Transaction Documents represent the agreement
        of
        the Guarantors and the Purchasers with respect to the subject matter hereof
        and
        thereof, and there are no promises, undertakings, representations or warranties
        by the Purchasers relative to subject matter hereof and thereof not expressly
        set forth or referred to herein or in the other Transaction
        Documents.

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
 

      (k)  Governing
        Law. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
        IN
        ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY
        PRINCIPLES OF CONFLICTS OF LAWS.

      

      (l)  Submission
        to Jurisdictional; Waiver. Each Guarantor hereby

      irrevocably
        and unconditionally:

      

      
        	
                (i)  

              	
                submits
                  for itself and its property in any legal action or proceeding relating
                  to
                  this Guarantee and the other Transaction Documents to which it
                  is a party,
                  or for recognition and enforcement of any judgment in respect thereof,
                  to
                  the non-exclusive general jurisdiction of the Courts of the State
                  of New
                  York, located in New York County, New York, the courts of the United
                  States of America for the Southern District of New York, and appellate
                  courts from any thereof;

              

      

      

      
        	
                (ii)  

              	
                consents
                  that any such action or proceeding may be brought in such courts
                  and
                  waives any objection that it may now or hereafter have to the venue
                  of any
                  such action or proceeding in any such court or that such action
                  or
                  proceeding was brought in an inconvenient court and agrees not
                  to plead or
                  claim the same;

              

      

      

      
        	
                (iii)  

              	
                agrees
                  that service of process in any such action or proceeding may be
                  effected
                  by mailing a copy thereof by registered or certified mail (or any
                  substantially similar form of mail), postage prepaid, to such Guarantor
                  at
                  its address referred to in the Purchase Agreement or at such other
                  address
                  of which the Purchasers shall have been notified pursuant
                  thereto;

              

      

      

      
        	
                (iv)  

              	
                agrees
                  that nothing herein shall affect the right to effect service of
                  process in
                  any other manner permitted by law or shall limit the right to sue
                  in any
                  other jurisdiction; and

              

      

      

      
        	
                (v)  

              	
                waives,
                  to the maximum extent not prohibited by law, any right it may have
                  to
                  claim or recover in any legal action or proceeding referred to
                  in this
                  Section any special, exemplary, punitive or consequential
                  damages.

              

      

      

      (m)  Acknowledgements.  Each
        Guarantor hereby acknowledges that:

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
 

      
        	
                (i)  

              	
                it
                  has been advised by counsel in the negotiation, execution and delivery
                  of
                  this Guarantee and the other Transaction Documents to which it
                  is a
                  party;

              

      

      

      
        	
                (ii)  

              	
                the
                  Purchasers have no fiduciary relationship with or duty to any Guarantor
                  arising out of or in connection with this Guarantee or any of the
                  other
                  Transaction Documents, and the relationship between the Guarantors,
                  on the
                  one hand, and the Purchasers, on the other hand, in connection
                  herewith or
                  therewith is solely that of debtor and creditor;
                  and

              

      

      

      
        	
                (iii)  

              	
                no
                  joint venture is created hereby or by the other Transaction Documents
                  or
                  otherwise exists by virtue of the transactions contemplated hereby
                  among
                  the Guarantors and the Purchasers.

              

      

      

      (n)  Additional
        Guarantors.  The Company shall cause each of its subsidiaries
        formed or acquired on or subsequent to the date hereof to become a Guarantor
        for
        all purposes of this Guarantee by executing and delivering an

      Assumption
        Agreement in the form of Annex 1 hereto.

      

      (o)  Release
        of Guarantors. Subject to Section 2.6, each Guarantor will be released from
        all liability hereunder concurrently with the repayment in full of all amounts
        owed under the Purchase Agreement, the Debentures and the other Transaction
        Documents.

      

      (p)  Seniority.
        The Obligations of each of the Guarantors hereunder rank senior in priority
        to
        any other Indebtedness (as defined in the Purchase Agreement) of such
        Guarantor.

      

      (q)  Waiver
        of Jury Trial. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE
        PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN
        ANY
        LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM
        THEREIN.

       

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      
 

      IN
        WITNESS WHEREOF, each of the undersigned has caused this Guarantee to
        be
        duly executed and delivered as of the date first above written.

      

      

      
        	
                 

              	
                GLOBAL
                  TELECOM HOLDING LIMIT

              

      

      

      
        	
                 

              	
                By: 
                  /s/ Li Yankuan                

              

      

      
        	
                 

              	
                            Name:
                  Li Yankuan

              

      

      
        	
                 

              	
                            Title:   Chief
                  Executive Officer

              

      

      

      
        	
                 

              	
                GUANGZHOU
                  GLOBAL TELECOMMUNICATION
                  COMPNAYLIMITED

              

      

      

      
        	
                 

              	
                By:
                  /s/ Li Yankuan                

              

      

      
        	
                 

              	
                Name:
                  Li Yankuan

              

      

      
        	
                 

              	
                Title:
                  Chief Executive Officer

              

      

      

      

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      

      

      SUBSIDIARY
        GUARANTEE SCHEDULES

      

      

      SCHEDULE
        1

      JURISDICTION

       

       

      
        
          	 	
                  Jurisdiction

                	
                  Percentage
                    Owned by Company

                
	
                   

                	
                   

                	
                   

                
	
                  Global
                    Telecom Holding Limited

                	
                  British
                    Virgin Islands

                	
                  100%

                
	
                   

                	
                   

                	
                   

                
	
                  Guangzhou
                    Global Telecom Limited

                	
                  广州寰球通讯有限公司

                	
                  *
                    -
                    100%

                
	
                   

                	
                  People’s
                    Republic of China

                	
                   

                

        

      

      *
        - 100%
        owned by Global Telecom Holding Limited

       

       

       

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      
 

      SCHEDULE
        5(b)

      NOTICES

      

      Global
        Telecom Holding Limited

      c/o
        Guangzhou Global Telecom, Inc.

      APT
        29D,
        Block E

      No.11
        Hao
        Jing Street, Zhu Jiang Di Jing Yuan

      YiZhou
        Road, HaiZhu District,

      Guangzhou
        China, 510310

      

      Guangzhou
        Global Telecom Limited

      c/o
        Guangzhou Global Telecom, Inc.

      APT
        29D,
        Block E

      No.11
        Hao
        Jing Street, Zhu Jiang Di Jing Yuan

      YiZhou
        Road, HaiZhu District,

      Guangzhou
        China, 510310

       

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      
 

      Annex
        1
        to

      SUBSIDIARY
        GUARANTEE

      

      ASSUMPTION
        AGREEMENT, dated as of ____ __, ______ made by ______________________________,
        a
        ______________ corporation (the “Additional Guarantor”), in favor of the
        Purchasers pursuant to the Purchase Agreement referred to below. All capitalized
        terms not defined herein shall have the meaning ascribed to them in such
        Purchase Agreement.

      

                                                 W
        I T N E S S E T H :

      

                 WHEREAS,
        [COMPANY], a [___________ corporation (the “Company”) and the Purchasers
        have entered into a Securities Purchase Agreement, dated as of [________
        ___,
        2007 (as amended, supplemented or otherwise modified from time to time, the
        “Purchase Agreement”);

      

                 WHEREAS,
        in connection with the Purchase Agreement, the Company and its Subsidiaries
        (other than the Additional Guarantor) have entered into the Subsidiary
        Guarantee, dated as of [______________ ____, 2007 (as amended, supplemented
        or
        otherwise modified from time to time, the “Guarantee”) in favor of the
        Purchasers;

      

                 WHEREAS,
        the Purchase Agreement requires the Additional Guarantor to become a party
        to
        the Guarantee; and

      

                 WHEREAS,
        the Additional Guarantor has agreed to execute and

      deliver
        this Assumption Agreement in order to become a party to the
        Guarantee;

      

                                      NOW,
        THEREFORE, IT IS AGREED:

      

      1.  Guarantee.
        By executing and delivering this Assumption Agreement, the Additional Guarantor,
        as provided in Section 5(n) of the Guarantee, hereby becomes a party to the
        Guarantee as a Guarantor thereunder with the same force and effect as if
        originally named therein as a Guarantor and, without limiting the generality
        of
        the foregoing, hereby expressly assumes all obligations and liabilities of
        a
        Guarantor thereunder. The information set forth in Annex 1-A hereto is hereby
        added to the information set forth in Schedule 1 to the Guarantee. The
        Additional Guarantor hereby represents and warrants that each of the
        representations and warranties contained in Section 3 of the Guarantee is
        true
        and correct on and as the date hereof as to such Additional Guarantor (after
        giving effect to this Assumption Agreement) as if made on and as of such
        date.

      

      2.  Governing
        Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
        INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

       

       

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

                        IN
        WITNESS WHEREOF, the undersigned has caused this Assumption Agreement
        to be duly executed and delivered as of the date first above
        written.

      

      

                                                 [ADDITIONALGUARANTOR]

      

                                                  By:                                                                                                           

                                                  Name:

                                                  Title:

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