Document:

f8k030708ex4iv_chinayida.htm

    MAKE GOOD
AGREEMENT

    

    

            THIS MAKE GOOD
AGREEMENT (the
“Agreement”),
dated March 7, 2008, by and among Pope Investments II LLC, a Delaware limited
liability company, as the authorized agent of the Investors (as defined below)
(the “Investor
Agent”), China Yida Holding, Co., a Delaware corporation, and its current
and future subsidiaries (collectively, the “Company”) and Chen
Minhua, an individual (the “CYHC
Shareholder”).  This Agreement shall become effective upon the
execution thereof by all parties.

    WHEREAS:

    

    A.           The
Company has offered for sale (the “Offering”) certain
shares (the “Shares”) of common
stock of the Company, $.001 par value per share (“Common Stock”) and
attached warrants to purchase shares of Common Stock in accordance with that
certain Securities Purchase Agreement, dated as of the date hereof (the “Securities Purchase
Agreement”), by and among the Company and the investors signatory thereto
(the “Investors”), and
certain other papers, agreements, documents, instruments and certificates
necessary to carry out the purposes thereof (collectively, the “Transaction
Documents”).

    

    B.           The
Company presented financial projections to the Investors, indicating that the
Company will report Earnings Per Share (EPS) of at least (i) $0.084 per share
for the fiscal year ending December 31, 2007, as adjusted, based on fully
diluted shares outstanding (an aggregate of 99,999,547 shares, including all
outstanding common shares, preferred shares, any convertible security, options,
and warrants) and (ii) $0.22 per share for the fiscal year ending
December 31, 2008, as adjusted, based on fully diluted shares outstanding
(an aggregate of 68,084,333 shares, including all outstanding common shares,
preferred shares, any convertible security, options, and warrants, excluding the
6,666,667 warrants to be issued in the Offering), and based upon audits
conducted in conformity with United States generally accepted accounting
principles (“US
GAAP”).

    

    C.           As
an inducement to the Investors to enter into the Securities Purchase Agreement,
the CYHC Shareholder desires to place the Escrow Shares (as hereinafter defined)
into escrow for the benefit of the Investors in the event that the Company fails
to satisfy the FY07 Performance Threshold and/or FY08 Performance Threshold (as
hereinafter defined).

    

    D.           Pursuant
to the requirements of the Securities Purchase Agreement, the Company, the CYHC
Shareholder and the Investor Agent have agreed to establish an escrow (the
“Escrow”) on
the terms and conditions set forth in that certain Escrow Agreement, dated of
even date herewith (the “Escrow Agreement”),
by and among American Stock Transfer & Trust Company, the transfer agent for
the Company (the “Escrow Agent”) and
the parties hereto.

    

    E.           Contemporaneously
with the execution and delivery of this Agreement, the Company and the Investors
are executing and delivering a Registration Rights Agreement, dated as of even
date herewith (the “Registration Rights
Agreement”), pursuant to which the Company has agreed to provide certain
registration rights with respect to the Escrow Shares (as defined below), under
the Securities Act of 1933, as amended (the “Securities Act”), and
the rules and regulations promulgated thereunder, and applicable state
securities laws.

     

     

    
      
        
        

      

      
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    NOW, THEREFORE, in
consideration of the covenants, promises and representations set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

    

    1.           Establishment of
Escrow.

    

    (a)           Escrow
Deposit.  Concurrently with the closing of the Offering, the
CYHC Shareholder shall deliver to the Escrow Agent a stock certificate, or stock
certificates, evidencing 13,333,333 shares, in the aggregate, of Common Stock
(as adjusted for stock splits, stock dividends, and similar adjustments) (the
“Escrow
Shares”), with stock powers executed in blank in form and substance
reasonably satisfactory to the Investor Agent.

    

    (b)           Fees and
Expenses.  The Company shall be responsible for any and all
fees and costs related to the services rendered by Escrow Agent hereunder and
pursuant to the Escrow Agreement.

    

    2.           Disbursement of Escrow
Shares.

    

    (a)           Performance Threshold for
Fiscal 2007.  The Company covenants to the Investors and
Investor Agent that Adjusted EPS (as defined below) for the fiscal year ending
December 31, 2007 (“FY07 Adjusted EPS”)
of the Company will be greater than or equal to $0.084 per share, which is
equivalent to earnings of $8,365,000 divided by an aggregate of 99,999,547
shares (the “FY07
Performance
Threshold”).  The Company’s earnings shall be as set forth in
financial statements of the Company (the “FY07 Financial
Statements”) for the period ending December 31, 2007 prepared in
accordance with the published rules and regulations of US GAAP applied on a
consistent basis throughout the periods involved and audited in accordance with
the auditing standards of the Public Company Accounting Oversight Board (“PCAOB”) by a
nationally recognized independent accountant registered with PCAOB (the “Independent
Accountant”), with such statements fairly presenting in all material
respects the financial position of the Company and its subsidiaries, on a
consolidated basis, as of the fiscal year ending December 31, 2007 (the
“FY07”) and the
FY07 Financial Statements shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under
which they were made, not misleading. For the purpose of this Section 2(a),
“Adjusted EPS”
means the net income (or loss) of the Company and its subsidiaries for such
period, excluding asset sales and other one-time events, determined on a
consolidated basis divided by 99,999,547 shares; provided, however, that the
Adjusted EPS for such period will be increased by any cash charges related to
the Offering and non-cash charges incurred as a result of the Offering (due to
non-cash amortization on warrants charged to the Company’s results of operation,
if any).

     

     

    
      
        
        

      

      
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    (b)           FY07 Financial
Statements.  The Company shall provide the Investor Agent and
the Investors (as defined below) with its audited FY07 Financial Statements on
or before March 31, 2008.  Concurrently with the release of the
audited FY07 Financial Statements to the Investor Agent and the Investors,
(i) the Company shall provide to the Investor Agent and the Investors a
written certification as to the amount of the Adjusted EPS for FY07 and whether
the FY07 Performance Threshold, as adjusted, has been met and (ii) the
Company shall make such FY07 Financial Statements and certification publicly
available (as part of an Annual Report on Form 10-KSB or on a Current Report on
Form 8-K, or otherwise).  Subject to Section 3 below, in the
event the FY07 Performance Threshold, as adjusted, is not attained, the Company
and the Investor Agent shall promptly provide a joint written instruction to the
Escrow Agent (the “Investor Joint
Instructions”), to deliver as promptly as practicable (such date, the
“FY07 Released Escrow Shares
Release Date”) to the Investors, on a Pro Rata Basis (as defined below),
an aggregate amount of Escrow Shares based from the following formula (the
“FY07 Released Escrow
Shares”):

    

    (i)           If
the FY07 Adjusted EPS is less than $0.084, then the number of FY07 Released
Escrow Shares will be 13,333,333.

    

    (ii)           If
the FY07 Adjusted EPS is $0.084 or greater, then none of the Escrow Shares will
be released to the Investors.

    

    (c)           Allocation of FY07 Released
Escrow Shares; Transfer of FY07 Released Escrow Shares.

    

    (i)           In
the event the that the FY07 Performance Threshold is not met, the Investors
shall be entitled to receive allocations of the FY07 Released Escrow Shares on a
Pro Rata Basis.  For the purpose of this Section 2(c)(i), “Pro Rata Basis” means
such portion of the FY07 Released Escrow Shares equal to the product of
(i) the number of FY07 Released Escrow Shares (as calculated in accordance
with Section 2(b)
above) and (ii) the quotient of (x) the number of shares of Common
Stock acquired by such Investor in the Offering and (y) the number of
shares of Common Stock acquired by all Investors in the Offering.  Any
distribution of FY07 Released Escrow Shares hereunder shall also include a
distribution to such Investor of any dividends or other distributions in the
Escrow, which were issued or otherwise obtained or deposited with respect to
such FY07 Released Escrow Shares distributed to such Investor
hereunder.

    

    (ii)           In
the event that the FY07 Performance Threshold is not met, the Company and the
Investor Agent shall cause the Investor Joint Instructions to instruct the
Escrow Agent to either (x) deliver the FY07 Released Escrow Shares
allocated to each Investor by crediting such aggregate number of shares of
Common Stock to which such Investor is entitled to such Investor’s or such
Investor’s designee’s balance account with the Depository Trust Company through
the Deposit Withdrawal Agent Commission system or (y) if the Escrow Agent
is unable to distribute the FY07 Released Escrow Shares of any Investor in
accordance with the foregoing, to deliver stock certificates evidencing the FY07
Released Escrow Shares of such Investor registered in the name of each such
Investor or such Investor’s designee at such address as set forth in the
Securities Purchase Agreement or such other address provided to the Investor
Agent by such Investor.

     

     

    
      
        
        

      

      
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    (d)           Performance Threshold for
Fiscal 2008.  The
Company covenants to the Investors and Investor Agent that Adjusted EPS (as
defined below) for the fiscal year ending December 31, 2008 (“FY08 Adjusted EPS”)
of the Company will be greater than or equal to $0.22 per share, which is
equivalent to earnings of $15,000,000 divided by 68,084,333 shares (the “FY08 Performance
Threshold”).  The Company’s earnings shall be as set forth in
financial statements of the Company (the “FY08 Financial
Statements”) for the period ending December 31, 2008 prepared in
accordance with the published rules and regulations of US GAAP applied on a
consistent basis throughout the periods involved and audited in accordance with
the auditing standards of PCAOB by the Company’s Independent Accountant, with
such statements fairly presenting in all material respects the financial
position of the Company and its subsidiaries, on a consolidated basis, as of the
fiscal year ending December 31, 2008 (the “FY08”) and the FY08
Financial Statements shall not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. For the purpose of this Section 2(e), “Adjusted EPS” means
the net income (or loss) of the Company and its subsidiaries for such period,
excluding asset sales and other one-time events, determined on a consolidated
basis divided by 68,084,333 shares; provided, however, that the
Adjusted EPS for such period will be increased by any cash charges related to
the Offering and non-cash charges incurred as a result of the Offering (due to
non-cash amortization on warrants charged to the Company’s results of operation,
if any).

    

    (e)           FY08 Financial
Statements.  The Company shall provide the Investor Agent and
the Investors with its audited FY08 Financial Statements on or before
March 31, 2009.  Concurrently with the release of the audited
FY08 Financial Statements to the Investor Agent and the Investors, (i) the
Company shall provide to the Investor Agent and the Investors a written
certification as to the amount of the Adjusted EPS for FY08 and whether the FY08
Performance Threshold, as adjusted, has been met (and, if applicable, a Call
Notice as further described in Section 2.2(a) of the Securities Purchase
Agreement) and (ii) the Company shall make such FY08 Financial Statements
and certification publicly available (as part of an Annual Report on Form 10-KSB
or on a Current Report on Form 8-K, or otherwise).  Subject to
Section 3 below, in the event the FY08 Performance Threshold, as adjusted, is
not attained, the Company and the Investor Agent shall promptly provide Investor
Joint Instructions, to deliver as promptly as practicable (such date, the “FY08 Released Escrow Shares
Release Date”) to the Investors, on a Pro Rata Basis (as defined below),
an aggregate amount of Escrow Shares based from the following formula (the
“FY08 Released Escrow
Shares”):

    

    (i)           If
the FY08 Adjusted EPS is $0.11 or less, then the number of FY08 Released Escrow
Shares will be 13,333,333, decreased by the number of the FY07 Released Escrow
Shares, if any.

    

    (ii)           If
the FY08 Adjusted EPS is greater than $0.11, but less than $0.20, then the
number of FY08 Released Escrow Shares shall be calculated as
follows:

    

    A = 1.5 x
B x C

    

    where

     

     

    
      
        
        

      

      
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    A
=           the aggregate
number of FY08 Released Escrow Shares;

    

    B
=           the
percentage under the FY08 Performance Threshold; and

    

    C
=           13,333,333,
decreased by the number of the FY07 Released Escrow Shares.

    

    (iii)           If
the FY08 Adjusted EPS is $0.20 or greater, then none of the Escrow Shares will
be released to the Investors.

    

    (f)           Allocation of FY08 Released
Escrow Shares; Transfer of FY08 Released Escrow Shares.

    

    (i)           In
the event that the FY08 Performance Threshold is not met, the Investors shall be
entitled to receive allocations of the FY08 Released Escrow Shares on a Pro Rata
Basis.  For the purpose of this Section 2(f)(i), “Pro Rata Basis” means
such portion of the Released Escrow Shares equal to the product of (i) the
number of FY08 Released Escrow Shares (as calculated in accordance with Section (e)
above) and (ii) the quotient of (x) the number of shares of Common
Stock acquired by such Investor in the Offering and (y) the number of
shares of Common Stock acquired by all Investors in the Offering.  Any
distribution of FY08 Released Escrow Shares hereunder shall also include a
distribution to such Investor of any dividends or other distributions in the
Escrow, which were issued or otherwise obtained or deposited with respect to
such FY08 Released Escrow Shares distributed to such Investor
hereunder.

    

    (ii)           In
the event that the FY08 Performance Threshold is not met, the Company and the
Investor Agent shall cause the Investor Joint Instructions to instruct the
Escrow Agent to either (x) deliver the FY08 Released Escrow Shares
allocated to each Investor by crediting such aggregate number of shares of
Common Stock to which such Investor is entitled to such Investor’s or such
Investor’s designee’s balance account with the Depository Trust Company through
the Deposit Withdrawal Agent Commission system or (y) if the Escrow Agent
is unable to distribute the FY08 Released Escrow Shares of any Investor in
accordance with the foregoing, to deliver stock certificates evidencing the FY08
Released Escrow Shares of such Investor registered in the name of each such
Investor or such Investor’s designee at such address as set forth in the
Securities Purchase Agreement or such other address provided to the Investor
Agent by such Investor.

    

    (g)           Distribution of Remaining
Escrow Shares.  If there are any Escrow Shares remaining in the
Escrow after the distribution of the FY07 Released Escrow Shares and/or FY08
Released Escrow Shares, or if the Company’s FY07 Performance Threshold and/or
FY08 Performance Threshold obligation ceases in accordance with Section 3 below (the
Escrow Shares held in the Escrow at such time, the “Remaining Escrow
Shares”), the Company and the Investor Agent shall promptly thereafter
provide a joint written instruction to the Escrow Agent (the “Shareholder Joint
Instructions”) to deliver the Remaining Escrow Shares to the CYHC
Shareholder.  The Company and the Investor Agent shall cause the
Shareholder Joint Instructions to instruct the Escrow to promptly deliver stock
certificates evidencing the Remaining Escrow Shares registered in the name of
the CYHC Shareholder to the addresses set forth in the Escrow
Agreement.  Any distribution of Remaining Escrow Shares hereunder
shall also include a distribution to the CYHC Shareholder of any dividends or
other distributions in the Escrow, which were issued or otherwise obtained or
deposited with respect to such Remaining Escrow Shares distributed to the CYHC
Shareholder hereunder.

     

     

    
      
        
        

      

      
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    3.           Force
Majeure.

    

    (a)           Upon
the occurrence of an event of Force Majeure (as defined below), the obligation
of the Company to meet the FY07 Performance Threshold and/or FY08 Performance
Threshold shall cease and all Escrow Shares shall be immediately deemed
Remaining Escrow Shares for all purposes hereunder.  For the purpose
of this Agreement, “Force Majeure” means
a natural disaster (e.g., earthquakes, typhoons, flood, fire), war, epidemic,
civil disturbance, strike, or major failure of domestic transportation that
directly and substantially prevents the Company from operating a significant
part of its business, which was unforeseeable at the time of the closing and the
occurrence and consequences thereof could not reasonably be avoided or
overcome.

    

    (b)           If
the Company intends to claim a Force Majeure has occurred, it must promptly
inform the Investor Agent in writing within thirty (30) days from the occurrence
of such event and provide detailed evidence of the occurrence and the duration
of such occurrence.

    

    (c)           Should
any controversy arise with respect to the Company’s claim that a Force Majeure
has occurred and/or with respect to the right of the Investors to receive the
Escrow Shares, the Investor Agent shall have the right to consult counsel at the
expense of the Company and/or to institute an appropriate interpleader action to
determine the rights of the parties.

    

    4.           Representations and
Warranties of the CYHC Shareholder.  The CYHC Shareholder
hereby represents and warrants that:

    

    (a)           Legal Capacity;
Organization.  The CYHC Shareholder has the legal capacity and
right to execute, deliver, enter into, consummate and perform the transactions
contemplated by hereby and in the Escrow Agreement and otherwise to carry out
its obligations hereunder and thereunder.

    

    (b)           Accredited Investor
Status.  The CYHC Shareholder is an “accredited investor” as
that term is defined in Rule 501(a) of Regulation D under the
Securities Act.

    

    (c)           Securities
Ownership.  As of the Closing Date (as defined in the
Securities Purchase Agreement), the CYHC Shareholder owns the Escrow Shares to
be deposited hereunder (i) as the sole record and beneficial owner, free
from all taxes, liens, claims, encumbrances and charges and there are no
outstanding rights, options, subscriptions or other agreements or commitments
obligating the CYHC Shareholder to sell or transfer such Escrow Shares and,
except in connection with the Offering, such Escrow Shares are not subject to
any lock-up or other restriction on their transfer or on the ability of the
Investors to sell or transfer such Escrow Shares.  As of the Closing
Date, the CYHC Shareholder shall have paid any and all amounts and charges due
and owing to the Company with respect to the Escrow Shares and there shall be no
unpaid amounts or charges claimed to be due to the Company from the CYHC
Shareholder with respect to the Escrow Shares.

     

     

    
      
        
        

      

      
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    (d)           Authorization; Enforcement;
Validity.  This Agreement has been duly authorized, executed
and delivered by the CYHC Shareholder and constitutes a valid and legally
binding agreement of the CYHC Shareholder enforceable against the CYHC
Shareholder in accordance with its terms, except as such enforceability may be
limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and
remedies.

    

    (e)           Consents.  All
government and other consents that are required to have been obtained by the
CYHC Shareholder with respect to this Agreement have been obtained and are in
full force and effect and all conditions of any such consents have been complied
with.  The CYHC Shareholder has complied and will comply with all
applicable disclosure or reporting requirements in respect of the transaction
contemplated hereby.

    

    (f)           No
Conflicts.  The execution and delivery by the CYHC Shareholder
of this Agreement, the sale and delivery of the Escrow Shares and the
performance by the CYHC Shareholder of its obligations under this Agreement do
not and will not violate or conflict with (i) any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations and the rules and regulations of the Principal Market (as defined in
the Class A Warrants)), or (ii) any order or judgment of any court or other
agency of government or any of the CYHC Shareholder’s assets or any contractual
restriction binding on or affecting the CYHC Shareholder or any of the CYHC
Shareholder’s assets.

    

    (g)           Independent
Decision.  The CYHC Shareholder is acting solely for his own
account, and has made his own independent decision to enter into this Agreement
and as to whether this Agreement is appropriate or proper for the CYHC
Shareholder based upon his own judgment and upon advice of such advisors as the
CYHC Shareholder deems necessary.  The CYHC Shareholder acknowledges
and agrees that he is not relying, and has not relied, upon any communication
(written or oral) of any Investor or any affiliate, employee or agent of any
Investor with respect to the legal, accounting, tax or other implications of
this Agreement and that he has conducted his own analyses of the legal,
accounting, tax and other implications hereof and thereof; it being understood
that information and explanations related to the terms and conditions of this
Agreement shall not be considered investment advice or a recommendation to enter
into this Agreement.  The CYHC Shareholder acknowledges that no
Investor nor any affiliate, employee or agent of any Investor is acting as a
fiduciary for or an advisor to the CYHC Shareholder in respect of this
Agreement.

    

    (h)           Brokerage
Fees.  Other than amounts payable to the Investor Agent or its
affiliates, the CYHC Shareholder has taken no action that would give rise to any
claim by any person for brokerage commissions, finder’s fees or similar payments
relating to this Agreement or the transactions contemplated hereby.

     

     

     

    
      
        
        

      

      
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    (i)           Litigation.  There
is no action, suit, claim, proceeding, inquiry or investigation before or by any
court, public board, government agency or self regulatory organization or body
pending or, to the knowledge of the CYHC Shareholder, threatened against or
affecting the CYHC Shareholder that could reasonably be expected to have a
material adverse affect on his ability  to perform its obligations
hereunder.

    

    5.           Registration
Rights.  The Company acknowledges that the FY07 Released Escrow
Shares and FY08 Released Escrow Shares are Registrable Securities (as defined in
the Registration Rights Agreement) and the Investors shall have such
registration rights set forth in the Registration Rights Agreement related
thereto.

    

    6.           Termination.  This
Agreement shall terminate at such time as all of the Escrow Shares shall have
been released by the Escrow Agent from the Escrow in accordance with Section 2
hereof; provided however, that Sections 1(b),
5, 6, 7 and 8 shall survive any such termination.

    

    7.           Indemnity.  The
Investor Agent will be indemnified and held harmless, jointly and severally, by
the Company and the CYHC Shareholder from and against any expenses, including
reasonable attorneys’ fees and disbursements, damages or losses suffered by
Investor Agent in connection with any claim or demand, which, in any way,
directly or indirectly, arises out of or relates to this Agreement or the
services of Investor Agent hereunder or under the Escrow Agreement; except, that
if Investor Agent is guilty of willful misconduct, fraud or gross negligence
under this Agreement then Investor Agent will bear all losses, damages and
expenses arising as a result of such willful misconduct, fraud or gross
negligence. Promptly after the receipt by Investor Agent of notice of any such
demand or claim or the commencement of any action, suit or proceeding relating
to such demand or claim, Investor Agent will notify the other parties hereto in
writing.  For the purposes hereof, the terms “expense” and “loss” will
include all amounts paid or payable to satisfy any such claim or demand, or in
settlement of any such claim, demand, action, suit and all costs and expenses,
including, but not limited to, reasonable attorneys’ fees and disbursements,
paid or incurred in investigating or defending against any such claim, demand,
action, suit or proceeding.

    

    8.           Miscellaneous.

    

    (a)           Notices.  Any
communication, notice or document required or permitted to be given under this
Agreement shall be given in writing and shall be deemed received (i) when
personally delivered to the relevant party at such party’s address as set forth
below, (ii) if sent by mail (which must be certified or registered mail,
postage prepaid) or overnight courier, when received or rejected by the relevant
party at such party’s address indicated below, or (iii) if sent by
facsimile, when confirmation of delivery is received by the sending
party:

    
 

    If to the Investor Agent,
to:

    

    Pope Investments II LLC

    5100 Poplar Avenue, Suite
805

    Memphis, TN 38137

    Attn.: Bill Wells,
President

    tel.: (901) 763-4001

    fax.: (901) 763-4229

     

     

    
      
        
        

      

      
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    with a copy to (for informational
purposes only):

    

    Hodgson Russ, LLP

    1540 Broadway, 24th
Floor

    New York, NY 10036

    Attn.:  Eric C. Mendelson,
Esq.

    tel.: (212) 751-4300

    fax.: (212) 751-0928

    

    If to the Company, to:

    

    China Yida Holding, Co.

    RM 1302-3 13/F, Crocodile House
II

    55 Connaught Road Central

    Hong Kong

    Attn.: Chen Minhua, Chief Executive
Officer

    tel.: + 86 591 28308388

    fax.: _______________

    

    or such
other address as indicated by the Company as its primary business address in its
SEC filings.

    

    with a copy to:

    

    Anslow
& Jaclin, LLP

    195 Route
9 South, Suite 204

    Manalapan,
NJ 07726

    Attn.:
Eric Stein, Esq.

    tel.:
(732) 409-1212

    fax.: (732) 577-1188

    

    If to the CYHC Shareholder,
to:

    

    Chen Minhua

    A2, Westlake Village, No. 19 Tongpan
Road

    Fuzhou City, Fujian
Province

    Peoples’ Republic of China
350001

    tel.: + 86 591 28308388

    fax.: _______________

    

    If to the Escrow Agent:

    

    American Stock Transfer & Trust
Company

    59 Maiden Lane, Plaza
Level

    New York, NY 10038

    Attn.: Herb Lemmer

    tel.: (718) 921-8209

    fax.:
_____________________

     

     

    
      
        
        

      

      
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    (b)           Appointment of Agent for
Service of Process.  The CYHC Shareholder and the Company (the
“Foreign
Parties”) hereby irrevocably appoint Anslow & Jaclin, LLP (“Anslow”) as their
agent for the receipt of service of process in the United
States.  Each Foreign Party agrees that any document may be
effectively served on it in connection with any action, suit or proceeding in
the United States by service on its agents.  The Investor Agent
consents and agrees that each Foreign Party may, in its reasonable discretion,
irrevocably appoint a substitute agent for the receipt of service of process
located within the Untied States, and that upon such appointment, the
appointment of Anslow may be revoked.

    

    Any document shall be deemed to have
been duly served if marked for the attention of the agent at its address as set
forth in this Section 8(b) or
such other address in the United States as may be notified to the party wishing
to serve the document and (a) left at the specified address if its receipt
is acknowledged in writing; or (b) sent to the specified address by post,
registered mail return receipt requested.  In the case of (a), the document
will be deemed to have been duly served when it is left and signed
for.  In the case of (b), the document
shall be deemed to have been duly served when received and
acknowledged.

    

    If any Foreign Party’s agent at any
time ceases for any reason to act as such, such Foreign Party shall appoint a
replacement agent having an address for service in the United States and shall
notify the Investor Agent of the name and address of the replacement
agent.  Failing such appointment and notification, the holders of a
majority of the Shares (as defined in the Securities Purchase Agreement) shall
be entitled by notice to such Foreign Party to appoint a replacement agent to
act on such Foreign Party’s behalf.  The provisions of this Section 8(b)
applying to service on an agent apply equally to service on a replacement
agent.

    

    (c)           Currency.  As
used herein, “Dollar,” “US Dollar” and “$” each mean the
lawful money of the United States.

    

    (d)           Assignment;
Amendment.  This Agreement and the rights and obligations
hereunder of any of the parties hereto may not be assigned without the prior
written consent of the other parties hereto.  Subject to the
foregoing, this Agreement will be binding upon and insure to the benefit of each
of the parties hereto and their respective successors and permitted
assigns.  No portion of the Escrow Shares shall be subject to
interference or control by any creditor to any party hereto, or be subject to
being taken or reached by any legal or equitable process in satisfaction of any
debt or other liability of any such party hereto prior to the disbursement
thereof to such party hereto in accordance with the provisions of this
Agreement.  This Agreement may be changed or modified only in writing
signed by all of the parties hereto.  No provision hereof may be
waived other than by an instrument in writing signed by the party against whom
enforcement is sought.  A waiver or amendment of any term or provision
of this Agreement shall not be construed as a waiver or amendment of any other
term or provision of this Agreement or any other Transaction
Document.

    

    (e)           Entire
Agreement.  This Agreement, together with the Escrow Agreement
and the other Transaction Documents, contains the entire understanding and
agreement between the parties hereto with respect to the subject matter of this
Agreement, and all prior writings and discussions are hereby merged into this
Agreement.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
 

    (f)           Counterparts.  This
Agreement may be executed by facsimile signatures and in multiple counterparts,
each of which shall be deemed an original. It shall not be necessary that each
party executes each counterpart, or that any one counterpart be executed by more
than one party so long as each party executes at least one
counterpart.

    

    (g)           Headings.  The
headings contained in this Agreement are for convenience or reference only and
shall not affect the construction of this Agreement.

    

    (h)           Governing Law;
Jurisdiction.  All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York.  The parties hereby
agree that all actions or proceedings arising directly or indirectly from or in
connection with this Agreement shall be litigated only in the Supreme Court of
the State of New York or the United States District Court for the Southern
District of New York located in New York County, New York.  The
parties consent to the jurisdiction and venue of the foregoing courts and
consent that any process or notice of motion or other application to any of said
courts or a judge thereof may be served inside or outside the State of New York
or the Southern District of New York by registered mail, return receipt
requested, directed to the party being served at its address set forth on the
signature ages to this Agreement (and service so made shall be deemed complete
three (3) days after the same has been posted as aforesaid) or by personal
service or in such other manner as may be permissible under the rules of said
courts.  Each of the parties hereto irrevocably waives, to the fullest
extent permitted by law, any objection which it may now or hereafter have to the
laying of the venue of any such suit, action, or proceeding brought in such a
court and any claim that suit, action, or proceeding has been brought in an
inconvenient forum. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

    

    (i)           Third-Party
Beneficiaries.  The Investors shall be intended third party
beneficiaries of this Agreement to the same extent as if they were parties
hereto, and shall be entitled to enforce the provisions hereof.

    

    (j)           Severability.  If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of this Agreement is not affected in
any manner materially adverse to any party.  Upon such determination
that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the terms of this
Agreement remain as originally contemplated to the fullest extent
possible.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    (k)           Dispute
Resolution.  In the case of a dispute as to the determination
of the number of FY07 Released Escrow Shares, FY08 Released Escrow Shares,
Remaining Escrow Shares or other arithmetic calculation hereunder, the Company
shall submit the disputed determinations or arithmetic calculations via
facsimile within one (1) Business Day (as defined in the Securities Purchase
Agreement) of receipt, or deemed receipt, of the event giving rise to such
dispute, as the case may be, to the Investor Agent.  If the Investor
Agent and the Company are unable to agree upon such determination or calculation
within one (1) Business Day of such disputed determination or arithmetic
calculation being submitted to the Investor Agent, then the Company shall,
within one Business Day submit via facsimile the disputed determination or (the
disputed arithmetic calculation to the Independent Accountant. The Company at
the Company’s expense, shall cause the Independent Accountant to perform the
determinations or calculations and notify the Company and the Investor Agent of
the results no later than five (5) Business Days from the time it receives the
disputed determinations or calculations.  The Independent Accountant’s
determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error.

    

     

    [The
remainder of the page is intentionally left blank]

     

     

    
      
        
        

      

      
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    IN WITNESS WHEREOF, each of
the parties hereto has executed this Agreement by the authorized officer named
below.

    

     

    INVESTOR
AGENT:

     

    POPE
INVESTMENTS II LLC

     

    

    By: /s/
William Wells  
    

    Name:  William Wells      
                               

    Its:   Managing
Member/President

    Dated:     3/6/2008                                     

     

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    IN WITNESS WHEREOF, each of
the parties hereto has executed this Agreement by the authorized officer named
below.

    

     

    THE
COMPANY:

     

    CHINA
YIDA HOLDING, CO.

     

    

    By: /s/ Chen Minhua          

    Name:Chen Minhua                  
                                

    Its: Chairman and Chief Executive
Officer       

    Dated: March 7,
2008              
                                                           

    

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, each of
the parties hereto has executed this Agreement by the authorized officer named
below.

    

     

    THE
CYHC SHAREHOLDER:

     

    

    Name:
/s/ Chen
Minhua            

    Dated: 
March 7,
2008                                     
   

     

     

     

     

     

     

     

    15f8k030708ex4v_chinayida.htm

    THE SECURITIES REPRESENTED HEREBY MAY
NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE
PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE
SOLD PURSUANT TO RULE 144(K), OR (III) THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE
WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 OR QUALIFICATION UNDER
APPLICABLE STATE SECURITIES LAWS.

    

    SUBJECT TO THE PROVISIONS HEREOF, THIS
WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON SEPTEMBER 7, 2011 (THE
“EXPIRATION DATE”).

    

    No.  A-                      

    

    CHINA
YIDA HOLDING, CO.

     

    CLASS
A WARRANT TO PURCHASE _______ SHARES OF

    COMMON
STOCK, PAR VALUE $0.001 PER SHARE

    

    For VALUE RECEIVED,
____________________ (“Warrantholder”), is entitled to purchase, subject to the
provisions of this Warrant, from China Yida Holding, Co., a Delaware corporation
(“Company”), at any time on or after September __, 2008 but not later than
5:00 P.M., Eastern time, on the Expiration Date (as defined above), at an
exercise price per share equal to $1.25 (the exercise price in effect being
herein called the “Warrant Price”), ______ shares1
(“Warrant Shares”) of the Company’s Common Stock, par value $0.001 per share
(“Common Stock”).  The number of Warrant Shares purchasable upon
exercise of this Warrant and the Warrant Price shall be subject to adjustment
from time to time as described herein.  This Warrant is being issued
pursuant to the Securities Purchase Agreement, dated as of March __, 2008
(the “Purchase Agreement”), among the Company and the initial holders of the
Company Warrants (as defined below), in connection with an offering of units of
securities of the Company (the “Offering”).  Capitalized terms used
herein have the respective meanings ascribed thereto in the Purchase Agreement
unless otherwise defined herein.

    

    Section
1.                                Registration.  The
Company shall maintain books for the transfer and registration of the
Warrant.  Upon the initial issuance of this Warrant, the Company shall
issue and register the Warrant in the name of the Warrantholder.

    

    Section
2.                      Transfers.  As
provided herein, this Warrant and any underlying Warrant Shares may be
transferred only pursuant to a registration statement filed under the Securities
Act of 1933, as amended (the “Securities Act”), or an exemption from such
registration.  Subject to such restrictions, the Company shall
transfer this Warrant and any underlying Warrant Shares from time to time upon
the books to be maintained by the Company for that purpose, upon surrender
hereof for transfer, properly endorsed or accompanied by appropriate
instructions for transfer and such other documents as may be reasonably required
by the Company, including, if 

    ______________________________

      1
50% warrant coverage (subject to Section 18(a) hereof).

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    required
by the Company, an opinion of its counsel to the effect that such transfer is
exempt from the registration requirements of the Securities Act, to establish
that such transfer is being made in accordance with the terms hereof, and a new
Warrant shall be issued to the transferee and the surrendered Warrant shall be
canceled by the Company.

    

    Section
3.                      Exercise of
Warrant.

    

    (a)           General. Subject to
Section 18(a) and the other provisions hereof, the Warrantholder may exercise
this Warrant, in whole or in part, at any time prior to its expiration upon
surrender of the Warrant, together with delivery of a duly executed Warrant
exercise form, in the form attached hereto as Appendix A (the
“Exercise Agreement”) and payment by cash, certified check or wire transfer of
funds (or, in certain circumstances, by cashless
exercise as provided in Section 3(c) below) of the aggregate Warrant
Price for that number of Warrant Shares then being purchased, to the Company
during normal business hours on any business day at the Company’s principal
executive offices (or such other office or agency of the Company as it may
designate by notice to the Warrantholder).  The Warrant Shares so
purchased shall be deemed to be issued to the Warrantholder or the
Warrantholder’s designee, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered (or the
date evidence of loss, theft or destruction thereof and security or indemnity
satisfactory to the Company has been provided to the Company), the Warrant Price
shall have been paid and the completed Exercise Agreement shall have been
delivered.  Certificates for the Warrant Shares so purchased shall be
delivered to the Warrantholder within a reasonable time, not exceeding three (3)
business days, after this Warrant shall have been so exercised.  The
certificates so delivered shall be in such denominations as may be requested by
the Warrantholder and shall be registered in the name of the Warrantholder or
such other name as shall be designated by the Warrantholder, as specified in the
Exercise Agreement.  If this Warrant shall have been exercised only in
part, then, unless this Warrant has expired, the Company shall, at its expense,
at the time of delivery of such certificates, deliver to the Warrantholder a new
Warrant representing the right to purchase the number of shares with respect to
which this Warrant shall not then have been exercised.  As used
herein, “business day” means a day, other than a Saturday or Sunday, on which
banks in New York City are open for the general transaction of
business.  Each exercise hereof shall constitute the re-affirmation by
the Warrantholder that the representations and warranties contained in Section 5
of the Purchase Agreement are true and correct in all material respects with
respect to the Warrantholder as of the time of such exercise.

    

    (b)           Conversion
Limitation. Notwithstanding anything in this Warrant to the contrary, in
no event shall the Warrantholder be entitled to exercise a number of Warrants
(or portions thereof) in excess of the number of Warrants (or portions thereof)
upon exercise of which the sum of (i) the number of shares of Common Stock
beneficially owned by the Warrantholder and its affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the
unexercised Warrants and the unexercised or unconverted portion of any other
securities of the Company (subject to a limitation on conversion or exercise
analogous to the limitation contained herein) and (ii) the number of shares of
Common Stock issuable upon exercise of the Warrants (or portions thereof) with
respect to which the determination described herein is being made, would result
in beneficial ownership by the Warrantholder and its affiliates of more than
9.99% of the outstanding shares of the Company’s Common
Stock.  

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    For
purposes of the immediately preceding sentence, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended, and Regulation 13D-G thereunder, except as otherwise provided
in clause (i) of the preceding sentence.  Notwithstanding anything in
this Warrant to the contrary, the limitation on exercise of this Warrant may be
waived by written agreement between the Warrantholder and the Company; provided, however, such waiver
may not be effective less than sixty-one (61) days from the date
thereof.

    

    (c)           Cashless
Exercise.  Notwithstanding any other provision contained herein
to the contrary, from and after the six month anniversary of the Closing Date
and so long as the Company is required under the Registration Rights Agreement
to have effected the registration of the Warrant Shares for resale to the public
pursuant to a Registration Statement (as such term is defined in the
Registration Rights Agreement), if the Warrant Shares may not be freely sold to
the public due to the failure of the Company to have effected the registration
of the Warrant Shares or to have a current prospectus available for delivery or
otherwise, and if an exemption for such sale is not otherwise available pursuant
to Rule 144 promulgated under the Securities Act, the Warrantholder may elect to
receive, without the payment by the Warrantholder of the aggregate Warrant Price
in respect of the shares of Common Stock to be acquired, shares of Common Stock
of equal value to the value of this Warrant, or any specified portion hereof, by
the surrender of this Warrant (or such portion of this Warrant being so
exercised) together with a Net Issue Election Notice, in the form annexed hereto
as Appendix B,
duly executed, to the Company.  Thereupon, the Company shall issue to
the Warrantholder such number of fully paid, validly issued and nonassessable
shares of Common Stock as is computed using the following formula:

    

    X = Y (A -
B)

           A

    

    where

    

    X
=           the number of
shares of Common Stock to which the Warrantholder is entitled upon such cashless
exercise;

    

    Y
=           the total
number of shares of Common Stock covered by this Warrant for which the
Warrantholder has surrendered purchase rights at such time for cashless exercise
(including both shares to be issued to the Warrantholder and shares as to which
the purchase rights are to be canceled as payment therefor);

    

    A
=           the “Market
Price” of one share of Common Stock as at the date the net issue election is
made; and

    

    B
=           the Warrant
Price in effect under this Warrant at the time the net issue election is
made.

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    Section
4.                      Compliance with the
Securities Act. Except as provided in the Purchase Agreement, the Company
may cause the legend set forth on the first page of this Warrant to be set forth
on each Warrant, and a similar legend on any security issued or issuable upon
exercise of this Warrant, unless counsel for the Company is of the opinion as to
any such security that such legend is unnecessary.

    

    Section
5.                      Payment of
Taxes.  The Company will pay any documentary stamp taxes
attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the Warrantholder in respect of which such shares are
issued, and in such case, the Company shall not be required to issue or deliver
any certificate for Warrant Shares or any Warrant until the person requesting
the same has paid to the Company the amount of such tax or has established to
the Company’s reasonable satisfaction that such tax has been
paid.  The Warrantholder shall be responsible for income taxes due
under federal, state or other law, if any such tax is due.

    

    Section
6.                      Mutilated or Missing
Warrants.  In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue in exchange and substitution of
and upon surrender and cancellation of the mutilated Warrant, or in lieu of and
substitution for the Warrant lost, stolen or destroyed, a new Warrant of like
tenor and for the purchase of a like number of Warrant Shares, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction of the Warrant, and with respect to a lost, stolen or destroyed
Warrant, reasonable indemnity or bond with respect thereto, if requested by the
Company.

    

    Section
7.                      Reservation of Common
Stock.  The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for
the purpose of providing for the exercise of the Company Warrants, such number
of shares of Common Stock as shall from time to time equal the number of shares
sufficient to permit the exercise of the Company Warrants in accordance with
their respective terms.  The Company agrees that all Warrant Shares
issued upon due exercise of the Warrant shall be, at the time of delivery of the
certificates for such Warrant Shares, duly authorized, validly issued, fully
paid and non-assessable shares of Common Stock of the Company.

    

    Section
8.                      Adjustments.  Subject
and pursuant to the provisions of this Section 8, the Warrant Price and number
of Warrant Shares subject to this Warrant shall be subject to adjustment from
time to time as set forth hereinafter.

    

    (a)           If
the Company shall, at any time or from time to time while this Warrant is
outstanding, pay a dividend or make a distribution on its Common Stock in shares
of Common Stock, subdivide its outstanding shares of Common Stock into a greater
number of shares or combine its outstanding shares of Common Stock into a
smaller number of shares or issue by reclassification of its outstanding shares
of Common Stock any shares of its capital stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then (i) the Warrant Price in effect
immediately prior to the date on which such change shall become effective shall
be adjusted by multiplying such

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

     Warrant
Price by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding immediately prior to such change and the denominator of
which shall be the number of shares of Common Stock outstanding immediately
after giving effect to such change and (ii) the number of Warrant Shares
purchasable upon exercise of this Warrant shall be adjusted by multiplying the
number of Warrant Shares purchasable upon exercise of this Warrant immediately
prior to the date on which such change shall become effective by a fraction, the
numerator of which is shall be the Warrant Price in effect immediately prior to
the date on which such change shall become effective and the denominator of
which shall be the Warrant Price in effect immediately after giving effect to
such change, calculated in accordance with clause (i) above.  Such
adjustments shall be made successively whenever any event listed above shall
occur.

    

    (b)           If
any capital reorganization or reclassification of the capital stock of the
Company, consolidation or merger of the Company with another corporation in
which the Company is not the survivor, or sale, transfer or other disposition of
all or substantially all of the Company’s assets to another corporation shall be
effected, then, as a condition of such reorganization, reclassification,
consolidation, merger, sale, transfer or other disposition, lawful and adequate
provision shall be made whereby each Warrantholder shall thereafter have the
right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares immediately theretofore
issuable upon exercise of the Warrant, such shares of stock, securities or
assets as would have been issuable or payable with respect to or in exchange for
a number of Warrant Shares equal to the number of Warrant Shares immediately
theretofore issuable upon exercise of the Warrant, had such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition not
taken place, and in any such case appropriate provision shall be made with
respect to the rights and interests of each Warrantholder to the end that the
provisions hereof (including, without limitation, provision for adjustment of
the Warrant Price) shall thereafter be applicable, as nearly equivalent as may
be practicable in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise hereof.  The Company shall
not effect any such consolidation, merger, sale, transfer or other disposition
unless prior to or simultaneously with the consummation thereof the successor
corporation (if other than the Company) resulting from such consolidation or
merger, or the corporation purchasing or otherwise acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver
to the Warrantholder, at the last address of the Warrantholder appearing on the
books of the Company, such shares of stock, securities or assets as, in
accordance with the foregoing provisions, the Warrantholder may be entitled to
purchase, and the other obligations under this Warrant.  The
provisions of this paragraph (b) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, sales, transfers or
other dispositions.

    

    (c)           In
case the Company shall fix a payment date for the making of a distribution to
all holders of Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing
corporation) of evidences of indebtedness or assets (other than cash dividends
or cash distributions payable out of consolidated earnings or earned surplus or
dividends or distributions referred to in Section 8(a)), or subscription rights
or warrants, the Warrant Price to be in effect after such payment date shall be
determined by multiplying the Warrant Price in effect immediately prior to such
payment date by a fraction, the numerator of which shall be the total number of
shares of Common Stock outstanding multiplied by the Market Price (as defined
below) per share of Common Stock immediately prior to such payment date, less
the fair market value (as determined by the Company’s Board of Directors in good
faith) of said assets or evidences of indebtedness so distributed, or of such
subscription rights or warrants, and the denominator of which shall be the total
number of shares of Common Stock outstanding multiplied by such Market Price per
share of Common Stock immediately prior to such payment
date.  

     

     

    
      
        
        

      

      
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    “Market
Price” as of a particular date (the “Valuation Date”) shall mean the following:
(a) if the Common Stock is then listed on a national stock exchange, the closing
sale price of one share of Common Stock on such exchange on the last trading day
prior to the Valuation Date; (b) if the Common Stock is then quoted on The
Nasdaq Stock Market, Inc. (“Nasdaq”), the National Association of Securities
Dealers, Inc. OTC Bulletin Board (the “Bulletin Board”) or such similar
quotation system or association, the closing sale price of one share of Common
Stock on Nasdaq, the Bulletin Board or such other quotation system or
association on the last trading day prior to the Valuation Date or, if no such
closing sale price is available, the average of the high bid and the low asked
price quoted thereon on the last trading day prior to the Valuation Date; or (c)
if the Common Stock is not then listed on a national stock exchange or quoted on
Nasdaq, the Bulletin Board or such other quotation system or association, the
fair market value of one share of Common Stock as of the Valuation Date, as
determined in good faith by the Board of Directors of the Company and the
Warrantholder.  If the Common Stock is not then listed on a national
securities exchange, Nasdaq the Bulletin Board or such other quotation system or
association, the Board of Directors of the Company shall respond promptly, in
writing, to an inquiry by the Warrantholder prior to the exercise hereunder as
to the fair market value of a share of Common Stock as determined by the Board
of Directors of the Company.  In the event that the Board of Directors
of the Company and the Warrantholder are unable to agree upon the fair market
value in respect of subpart (c) of this paragraph, the Company and the
Warrantholder shall jointly select an appraiser, who is experienced in such
matters.  The decision of such appraiser shall be final and
conclusive, and the cost of such appraiser shall be borne equally by the Company
and the Warrantholder.  Such adjustment shall be made successively
whenever such a payment date is fixed.

    

    (d)           An
adjustment to the Warrant Price shall become effective immediately after the
payment date in the case of each dividend or distribution and immediately after
the effective date of each other event which requires an
adjustment.

    

    (e)           In
the event that, as a result of an adjustment made pursuant to this Section 8,
the Warrantholder shall become entitled to receive any shares of capital stock
of the Company other than shares of Common Stock, the number of such other
shares so receivable upon exercise of this Warrant shall be subject thereafter
to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Warrant Shares contained in
this Warrant.

    

    (f)           Provided
that this Warrant shall still be in effect and has not either expired or been
exercised in its entirety, except as provided in subsection (g) hereof, if and
whenever the Company shall issue or sell, or is, in accordance with any of
subsections (f)(l) through (f)(4) hereof, deemed to have issued or sold, any
Additional Shares of Common Stock for no consideration or for a consideration
per share less than the Warrant Price in effect immediately prior to the time of
such issue or sale, then and in each such case (a “Trigger Issuance”)
the then-existing Warrant Price shall be reduced, as of the close of business on
the effective date of the Trigger Issuance, to a price determined as
follows:

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    Adjusted
Warrant Price = (A x
B) + D

                A+C

    

    where

    

    “A” equals the number of shares of
Common Stock outstanding, including Additional Shares of Common Stock (as
defined below) deemed to be issued hereunder, immediately preceding such Trigger
Issuance;

    

    “B” equals the Warrant Price in effect
immediately preceding such Trigger Issuance;

    

    “C” equals the number of Additional
Shares of Common Stock issued or deemed issued hereunder as a result of the
Trigger Issuance; and

    

    “D” equals the aggregate consideration,
if any, received or deemed to be received by the Company upon such Trigger
Issuance;

    

    provided,
however, that in no event shall the Warrant Price after giving effect to such
Trigger Issuance be greater than the Warrant Price in effect prior to such
Trigger Issuance.

    

    For purposes of this subsection (f),
“Additional Shares of Common Stock” shall mean all shares of Common Stock issued
by the Company or deemed to be issued pursuant to this subsection (f), other
than Excluded Issuances (as defined in subsection (g) hereof).

    

    For purposes of this subsection (f),
the following subsections (f)(l) to (f)(7) shall also be
applicable:

    

    
      	
               
      

            	
              (f)(1)  Issuance of Rights or
      Options.  In case at any time the Company shall in any
      manner grant (directly and not by assumption in a merger or otherwise) any
      warrants or other rights to subscribe for or to purchase, or any options
      for the purchase of, Common Stock or any stock or security convertible
      into or exchangeable for Common Stock (such warrants, rights or options
      being called “Options” and such convertible or exchangeable stock or
      securities being called “Convertible Securities”) whether or not such
      Options or the right to convert or exchange any such Convertible
      Securities are immediately exercisable, and the price per share for which
      Common Stock is issuable upon the exercise of such Options or upon the
      conversion or exchange of such Convertible Securities (determined by
      dividing (i) the sum (which sum shall constitute the applicable
      consideration) of (x) the total amount, if any, received or receivable by
      the Company as consideration for the granting of such Options, plus
      

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      

      
        	
                 
      

              	
                (y)
      the aggregate amount of additional consideration payable to the Company
      upon the exercise of all such Options, plus (z), in the case of such
      Options which relate to Convertible Securities, the aggregate amount of
      additional consideration, if any, payable upon the issue or sale of such
      Convertible Securities and upon the conversion or exchange thereof, by
      (ii) the total maximum number of shares of Common Stock issuable upon the
      exercise of such Options or upon the conversion or exchange of all such
      Convertible Securities issuable upon the exercise of such Options) shall
      be less than the Warrant Price in effect immediately prior to the time of
      the granting of such Options, then the total number of shares of Common
      Stock issuable upon the exercise of such Options or upon conversion or
      exchange of the total amount of such Convertible Securities issuable upon
      the exercise of such Options shall be deemed to have been issued for such
      price per share as of the date of granting of such Options or the issuance
      of such Convertible Securities and thereafter shall be deemed to be
      outstanding for purposes of adjusting the Warrant Price.  Except
      as otherwise provided in subsection 8(f)(3), no adjustment of the Warrant
      Price shall be made upon the actual issue of such Common Stock or of such
      Convertible Securities upon exercise of such Options or upon the actual
      issue of such Common Stock upon conversion or exchange of such Convertible
      Securities.

              

      

       

    

    
      	
               
      

            	
              (f)(2)  Issuance of
      Convertible Securities.  In case the Company shall in any
      manner issue (directly and not by assumption in a merger or otherwise) or
      sell any Convertible Securities, whether or not the rights to exchange or
      convert any such Convertible Securities are immediately exercisable, and
      the price per share for which Common Stock is issuable upon such
      conversion or exchange (determined by dividing (i) the sum (which sum
      shall constitute the applicable consideration) of (x) the total amount
      received or receivable by the Company as consideration for the issue or
      sale of such Convertible Securities, plus (y) the aggregate amount of
      additional consideration, if any, payable to the Company upon the
      conversion or exchange thereof, by (ii) the total number of shares of
      Common Stock issuable upon the conversion or exchange of all such
      Convertible Securities) shall be less than the Warrant Price in effect
      immediately prior to the time of such issue or sale, then the total
      maximum number of shares of Common Stock issuable upon conversion or
      exchange of all such Convertible Securities shall be deemed to have been
      issued for such price per share as of the date of the issue or sale of
      such Convertible Securities and thereafter shall be deemed to be
      outstanding for purposes of adjusting the Warrant Price, provided that (a)
      except as otherwise provided in subsection 8(f)(3), no adjustment of the
      Warrant Price shall be made upon the actual issuance of such Common Stock
      upon conversion or exchange of such Convertible Securities and (b) no
      further adjustment of the Warrant Price shall be made by reason of the
      issue or sale of Convertible Securities upon exercise of any Options to
      purchase any such Convertible Securities for which adjustments of the
      Warrant Price have been made pursuant to the other provisions of
      subsection 8(f).

            

    

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              (f)(3)
      Change in Option
      Price or Conversion Rate.  Upon the happening of any of
      the following events, namely, if the purchase price provided for in any
      Option referred to in subsection 8(f)(l) hereof, the additional
      consideration, if any, payable upon the conversion or exchange of any
      Convertible Securities referred to in subsections 8(f)(l) or 8(f)(2), or
      the rate at which Convertible Securities referred to in subsections
      8(f)(l) or 8(f)(2) are convertible into or exchangeable for Common Stock
      shall change at any time (including, but not limited to, changes under or
      by reason of provisions designed to protect against dilution), the Warrant
      Price in effect at the time of such event shall forthwith be readjusted to
      the Warrant Price which would have been in effect at such time had such
      Options or Convertible Securities still outstanding provided for such
      changed purchase price, additional consideration or conversion rate, as
      the case may be, at the time initially granted, issued or
      sold.  On the termination of any Option for which any adjustment
      was made pursuant to this subsection 8(f) or any right to convert or
      exchange Convertible Securities for which any adjustment was made pursuant
      to this subsection 8(f) (including without limitation upon the redemption
      or purchase for consideration of such Convertible Securities by the
      Company), the Warrant Price then in effect hereunder shall forthwith be
      changed to the Warrant Price which would have been in effect at the time
      of such termination had such Option or Convertible Securities, to the
      extent outstanding immediately prior to such termination, never been
      issued.

            

    

     

    
      	
               
      

            	
              (f)(4)
      Stock
      Dividends.  Subject to the provisions of this Section
      8(f), in case the Company shall declare or pay a dividend or make any
      other distribution upon any stock of the Company (other than the Common
      Stock) payable in Common Stock, Options or Convertible Securities, then
      any Common Stock, Options or Convertible Securities, as the case may be,
      issuable in payment of such dividend or distribution shall be deemed to
      have been issued or sold without
consideration.

            

    

    

    
      	
               
      

            	
              (f)(5)
      Consideration
      for Stock.  In case any shares of Common Stock, Options
      or Convertible Securities shall be issued or sold for cash, the
      consideration received therefor shall be deemed to be the net amount
      received by the Company therefor, after deduction therefrom of any
      expenses incurred or any underwriting commissions or concessions paid or
      allowed by the Company in connection therewith.  In case any
      shares of Common Stock, Options or Convertible Securities shall be issued
      or sold for a consideration other than cash, the amount of the
      consideration other than cash received by the Company shall be deemed to
      be the fair value of such consideration as determined in good faith by the
      Board of Directors of the Company, after deduction of any expenses
      incurred or any underwriting commissions or concessions paid or allowed by
      the Company in connection therewith.  In case any Options shall
      be issued in connection with the issue and sale of other securities of the
      Company, together comprising one integral transaction in which no specific
      consideration is allocated to such Options by the parties thereto, such
      Options shall be deemed to have been issued for such consideration as
      determined in good faith by the Board of Directors of the
      Company.  

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      

      
        	
                 
      

              	
                If
      Common Stock, Options or Convertible Securities shall be issued or sold by
      the Company and, in connection therewith, other Options or Convertible
      Securities (the “Additional Rights”) are issued, then the consideration
      received or deemed to be received by the Company shall be reduced by the
      fair market value of the Additional Rights (as determined using the
      Black-Scholes option pricing model or another method mutually agreed to by
      the Company and the Warrantholder).  The Board of Directors of
      the Company shall respond promptly, in writing, to an inquiry by the
      Warrantholder as to the fair market value of the Additional
      Rights.  In the event that the Board of Directors of the Company
      and the Warrantholder are unable to agree upon the fair market value of
      the Additional Rights, the Company and the Warrantholder shall jointly
      select an appraiser, who is experienced in such matters.  The
      decision of such appraiser shall be final and conclusive, and the cost of
      such appraiser shall be borne evenly by the Company and the
      Warrantholder.

              

      

       

    

    
      	
               
      

            	
              (f)(6)
      Record
      Date.  In case the Company shall take a record of the
      holders of its Common Stock for the purpose of entitling them (i) to
      receive a dividend or other distribution payable in Common Stock, Options
      or Convertible Securities or (ii) to subscribe for or purchase Common
      Stock, Options or Convertible Securities, then such record date shall be
      deemed to be the date of the issue or sale of the shares of Common Stock
      deemed to have been issued or sold upon the declaration of such dividend
      or the making of such other distribution or the date of the granting of
      such right of subscription or purchase, as the case may
  be.

            

    

    

    
      	
               
      

            	
              (f)(7)
      Treasury
      Shares.  The number of shares of Common Stock outstanding
      at any given time shall not include shares owned or held by or for the
      account of the Company or any of its wholly-owned subsidiaries, and the
      disposition of any such shares (other than the cancellation or retirement
      thereof) shall be considered an issue or sale of Common Stock for the
      purpose of this subsection (f).

            

    

    

    (g)           Anything herein to the contrary notwithstanding, the
Company shall not be required to make any adjustment of the Warrant Price in the
case of the issuance of (A) capital stock, Options or Convertible
Securities issued to directors, officers, employees or consultants of the
Company in connection with their service as directors of the Company, their
employment by the Company or their retention as consultants by the Company
pursuant to an equity compensation program approved by the Board of Directors of
the Company or the compensation committee of the Board of Directors of the
Company, (B) shares of Common Stock issued upon the conversion or exercise of
Options or Convertible Securities issued prior to the date hereof, provided such
securities are not amended after the date hereof to increase the number of
shares of Common Stock issuable thereunder or to lower the exercise or
conversion price thereof, (C) securities issued pursuant to the Purchase
Agreement and securities issued upon the exercise or conversion of those
securities, (D) shares of Common Stock issued or issuable by reason of a
dividend, stock split or other distribution on shares of Common Stock (but only
to the extent that such a dividend, split or distribution results in an
adjustment in the Warrant Price pursuant to the other provisions of this
Warrant), and (E) capital stock, Options or Convertible Securities issued to
strategic partners of the Company in connection with transactions consummated
with such strategic partners in furtherance of the Company’s business objectives
(collectively, “Excluded Issuances”).

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
 

    (h)           Upon
any adjustment to the Warrant Price pursuant to Section 8(f) above, the number
of Warrant Shares purchasable hereunder shall not also be adjusted.

    

    (i)           To
the extent permitted by applicable law and the listing requirements of any stock
market or exchange on which the Common Stock is then listed, the Company from
time to time may decrease the Warrant Price by any amount for any period of time
if the period is at least twenty (20) days, the decrease is irrevocable during
the period and the Board shall have made a determination that such decrease
would be in the best interests of the Company, which determination shall be
conclusive.  Whenever the Warrant Price is decreased pursuant to the
preceding sentence, the Company shall provide written notice thereof to the
Warrantholder at least five (5) days prior to the date the decreased Warrant
Price takes effect, and such notice shall state the decreased Warrant Price and
the period during which it will be in effect.

    

    Section
9.                      Fractional
Interest.  The Company shall not be required to issue fractions
of Warrant Shares upon the exercise of this Warrant.  If any
fractional share of Common Stock would, except for the provisions of the first
sentence of this Section 9, be deliverable upon such exercise, the Company, in
lieu of delivering such fractional share, shall pay to the exercising
Warrantholder an amount in cash equal to the Market Price of such fractional
share of Common Stock on the date of exercise.

    

    Section
10.                                Adjustment to Expiration
Date.  If the Company fails to cause any Registration Statement
covering Registrable Securities (unless otherwise defined herein, capitalized
terms are as defined in the Registration Rights Agreement relating to the
Warrant Shares, dated as of even date herewith (the “Registration Rights
Agreement”)), to be declared effective prior to the applicable dates set forth
therein, then the Expiration Date of this Warrant shall be extended one day for
each day the delay continues.

    

    Section
11.                                Benefits.  Nothing
in this Warrant shall be construed to give any person, firm or corporation
(other than the Company and the Warrantholder) any legal or equitable right,
remedy or claim, it being agreed that this Warrant shall be for the sole and
exclusive benefit of the Company and the Warrantholder.

    

    Section
12.                                Notices to
Warrantholder.  Upon the happening of any event requiring an
adjustment of the Warrant Price or the Warrant Shares, the Company shall
promptly give written notice thereof to the Warrantholder at the address
appearing in the records of the Company, stating the adjusted Warrant Price or
the adjusted number of Warrant Shares resulting from such event and setting
forth in reasonable detail the method of calculation and the facts upon which
such calculation is based.  Failure to give such notice to the
Warrantholder or any defect therein shall not affect the legality or validity of
the subject adjustment.

    

    Section
13.                                Identity of Transfer
Agent.  The Transfer Agent for the Common Stock is American
Stock Transfer & Trust Company, 59 Maiden Lane, Plaza Level, New York, NY
10038.  Upon the appointment of any subsequent transfer agent for the
Common Stock or other shares of the Company’s capital stock issuable upon the
exercise of the rights of purchase represented by the Warrant, the Company will
mail to the Warrantholder a statement setting forth the name and address of such
transfer agent.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    Section
14.                                Notices.  Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon
such delivery, (ii) if given by telex or facsimile, then such notice shall be
deemed given upon receipt of confirmation of complete transmittal, (iii) if
given by mail, then such notice shall be deemed given upon the earlier of (A)
receipt of such notice by the recipient or (B) three days after such notice is
deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier.  All
notices shall be addressed as follows: if to the Warrantholder, at its address
as set forth in the Company’s books and records and, if to the Company, at the
address as follows, or at such other address as the Warrantholder or the Company
may designate by ten days’ advance written notice to the other:

    

    If to the Company:

    

    China Yida Holding, Co.

    RM 1302-3 13/F, Crocodile House
II

    55 Connaught Road Central

    Hong Kong

    Attn: Chen Minhua, Chief Executive
Officer

    Fax: + 86 591 28308388

    

    With a copy to:

    

    Anslow
& Jaclin, LLP

    195 Route
9 South, Suite 204

    Manalapan,
NJ 07726

    Attn:
Eric Stein, Esq.

    Fax:
(732) 577-1188

    

    Section
15.                                Registration
Rights.  The initial Warrantholder is entitled to the benefit
of certain registration rights with respect to the shares of Common Stock
issuable upon the exercise of this Warrant as provided in the Registration
Rights Agreement, and any subsequent Warrantholder may be entitled to such
rights.

    

    Section
16.                                Successors.  All
the covenants and provisions hereof by or for the benefit of the Warrantholder
shall bind and inure to the benefit of its respective successors and assigns
hereunder.

    

    Section
17.                                Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Warrant shall be
governed by, and construed in accordance with, the internal laws of the State of
New York, without reference to the choice of law provisions
thereof.  

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    The
Company and, by accepting this Warrant, the Warrantholder, each irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York
located in New York County and the United States District Court for the Southern
District of New York for the purpose of any suit, action, proceeding or judgment
relating to or arising out of this Warrant and the transactions contemplated
hereby.  Service of process in connection with any such suit, action
or proceeding may be served on each party hereto anywhere in the world by the
same methods as are specified for the giving of notices under this
Warrant.  The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably consents to the jurisdiction of any such court
in any such suit, action or proceeding and to the laying of venue in such
court.  The Company and, by accepting this Warrant, the Warrantholder,
each irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. EACH OF THE COMPANY AND, BY ITS
ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL
BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

    

    Section
18.                                Call
Provisions.

    

    (a)           The
Company covenants to the Investors that the Adjusted EPS (as defined below) for
the fiscal year ending December 31, 2008 (“FY08 Adjusted EPS”)
of the Company will be greater than or equal to $0.22 per share (the “FY08 Performance
Threshold”), as determined pursuant to Section 2(d) of the Make Good
Agreement.  Pursuant to Section 2(e) of the Make Good Agreement, the
Company shall (i) provide the Investors with its audited financial statements
(the “FY08 Financial
Statements”) for the fiscal year ended December 31, 2008 (“FY08”) on or before
March 31, 2009 (the “Evaluation Date”),
and (ii) concurrently with the release of the FY08 Financial Statements to the
Investors, the Company shall (A)  provide to the Investors a written
certification  as to the amount of the Adjusted EPS for FY08 and
whether the FY08 Performance Threshold, as adjusted, has been met (the “EPS Certification”),
and (B) the Company shall make such FY08 Financial Statements and EPS
Certification publicly available (as part of an Annual Report on Form 10-KSB or
on a Current Report on Form 8-K, or otherwise).  In the event
that the Company attains the FY08 Performance Threshold, it shall have the
right, but not the obligation, to include with the EPS Certification provided to
the Investors (i) a written notice (the “Call Notice”) that it
is exercising its option to call fifty (50%) percent of the Warrants originally
issued to the Investors (the “Callable Warrants”),
at a redemption price equal to $0.001 per share (the “Redemption Price”) of
Common Stock then purchasable pursuant to such Warrants, and (ii) a check to
each Investor in the amount of the aggregate Redemption Price for the applicable
number of Warrants to be redeemed from such Investor; provided, however, that the
Company may only call all, but  not less than all, of the Callable
Warrants.  Upon receipt of a Call Notice, assuming the Company has in
fact attained the FY08 Performance Threshold, each Investor shall return fifty
(50%) percent of the Warrants he, she or it purchased hereunder to the Company
within ten (10) business days.  With regard to the foregoing, between
the six-month anniversary of the Closing Date and the Evaluation Date, each
Investor shall have the right to exercise only up to fifty (50%) percent of the
Warrants he, she or it has purchased under the Securities Purchase
Agreement.  In the event that the Company does not meet the FY08
Performance Threshold, or, if no Call Notice is included with the EPS
Certification, each Investor shall have the right to exercise the remaining
fifty (50%) percent of the Warrants he, she or it purchased under the Securities
Purchase Agreement at any time prior to the Expiration
Date.  

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

    For the
purpose of this Section 18(a), “Adjusted EPS” means the net income (or loss) of
the Company and its subsidiaries for such period, determined on a consolidated
basis divided by 67,833,333 shares; provided, however, that the
Adjusted EPS for such period will be increased by any cash charges related to
the Offering and non-cash charges incurred as a result of the Offering (due to
non-cash amortization on warrants charged to the Company’s results of operation,
if any).

    

    (b)           In the
event that the Company attains consolidated net income for the fiscal year ended
December 31, 2010 greater than or equal to $39,000,000, as set forth in the
audited financial statements of the Company for the period ending December 31,
2010 (excluding non-cash, one-time gains, acceptable to Investors), it shall
have the right, but not the obligation, upon thirty (30) days prior written
notice (“Notice
Period”) given to the Investors, to call one hundred (100%) percent of
the Warrants issued to each Investor pursuant to the Securities Purchase
Agreement at a redemption price equal to $0.001 per share of Common Stock then
purchasable pursuant to such Warrants, to the extent that such number of
Warrants have not been previously exercised by any Investor; provided that (i)
the Company simultaneously calls all of the remaining Warrants sold pursuant to
the Securities Purchase Agreement on the same terms, (ii) all of the shares of
Common Stock issuable under the Warrants either (A) are registered pursuant to
an effective Registration Statement (as defined in the Registration Rights
Agreement) which has not been suspended and for which no stop order is in
effect, and pursuant to which the Investor is able to sell such shares of Common
Stock at all times during the Notice Period, or (B) no longer constitute
Registrable Securities (as defined in the Registration Rights Agreement), and
(iii) the Warrants are fully exercisable for the full amount of Warrant Shares
covered thereby.  Notwithstanding any such notice by the Company, each
Investor shall have the right to exercise all, but not less than all, of
his, her, or its Warrants prior to the end of the Notice
Period.

    

    Section
19.                                No Rights as
Stockholder.  Prior to the exercise of this Warrant, the
Warrantholder shall not have or exercise any rights as a stockholder of the
Company by virtue of its ownership of this Warrant.

    

    Section
20.                                Amendment;
Waiver.  This Warrant is one of a series of Warrants of like
tenor issued by the Company pursuant to the Purchase Agreement and initially
covering an aggregate of up to 6,666,667 shares of Common Stock, except as
otherwise subject to adjustment, including the adjustments contemplated by
Section 18 hereof (collectively, the “Company
Warrants”).  Except as otherwise set forth herein, any term of
this Warrant may be amended or waived (including the adjustment provisions
included in Section 8 of this Warrant) only upon the written consent of the
Company and the holders of Company Warrants representing at least 66.67% of the
number of shares of Common Stock then subject to all outstanding Company
Warrants (the “Majority Holders”);
provided, that
(x) any such amendment or waiver must apply to all Company Warrants; and (y) the
number of Warrant Shares subject to this Warrant, the Warrant Price and the
Expiration Date may not be amended, and the right to exercise this Warrant may
not be altered or waived in any manner adverse to the Warrantholder, without the
written consent of the Warrantholder.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
 

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

     

     

     

     

     

     

     

    
 

    
      
        
          --

        

         

      

      
        15

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company has
caused this Warrant to be duly executed, as of the 7th day of March,
2008.

    

    CHINA YIDA HOLDING, CO.

    

    

    
      By:  /s/
Chen Minhua__________________________

      Name:
Chen Minhua

                                      Title: Chairman and
Chief Executive Officer

    

    
      
        
          --

        

         

      

      
        16

        
          

        

      

      
         

      

    

    APPENDIX
A

    CHINA
YIDA HOLDING, CO.

    WARRANT
EXERCISE FORM

    

    To China
Yida Holding, Co.:

    

    The undersigned hereby irrevocably
elects to exercise the right of purchase represented by the within Warrant
(“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price
and surrender of the Warrant, _______________ shares of Common Stock (“Warrant
Shares”) provided for therein, and requests that certificates for the Warrant
Shares be issued as follows:

    _______________________________

    Name

    ________________________________

    Address

    ________________________________

    ________________________________

    Federal Tax ID or Social Security
No.

    

    and delivered
by                                           (certified
mail to the above address, or

    (electronically (provide DWAC
Instructions: _________________),

    or

    (other (specify):
________________________________________).

    

    and, if
the number of Warrant Shares shall not be all the Warrant Shares purchasable
upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
Shares purchasable upon exercise of this Warrant be registered in the name of
the undersigned Warrantholder or the undersigned’s Assignee as below indicated
and delivered to the address stated below.

    

    Dated:
___________________, ____

    

    Note:  The
signature must correspond
with                                                                                                Signature:______________________________

    the name
of the Warrantholder as written

    on the
first page of the Warrant in
every                                                                                                                    
______________________________

    particular,
without alteration or
enlargement                                                                                                              
Name (please print)

    or any
change whatever, unless the Warrant

    has been
assigned.                                                                              ______________________________

    ______________________________

    Address

    ______________________________

    Federal Identification or

    Social Security No.

    

    Assignee:

    _______________________________

    _______________________________

    _______________________________

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    APPENDIX
B

    CHINA
YIDA HOLDING, CO.

    NET ISSUE
ELECTION NOTICE

    

    

    

    To: China
Yida Holding, Co.

    Date:[_________________________]

    

    

    The
undersigned hereby elects under Section 3(c) of this
Warrant to surrender the right to purchase [____________] shares of Common Stock
pursuant to this Warrant and hereby requests the issuance of [_____________]
shares of Common Stock.  The certificate(s) for the shares issuable
upon such net issue election shall be issued in the name of the undersigned or
as otherwise indicated below.

    

    

    _________________________________________

    Signature

    _________________________________________

    Name for
Registration

    _________________________________________

    
    

    Mailing
Address

     

     

     

    18

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