Document:

SUBSCRIPTION
      DOCUMENTS

    

    Best
      Efforts Private Offering of Common Stock (“Common Stock”)

    and
      Common Stock Purchase Warrants:

    of

    AGFEED
      INDUSTRIES, INC.

    (a
      Nevada
      corporation)

    

    Offering:
      Up to $8,250,000 of Common Stock - 2,750,000 Shares

    Minimum
      Subscription: $24,000 - 8,000 Shares Of Common Stock

    

    3
      Year Warrants for shares of Common Stock: Number of Warrant Shares equal to
      8%
      of Common Stock purchased. Initial Exercise Price $5.00 per
      share

    

    PLEASE
      READ CAREFULLY BEFORE SIGNING APPLICABLE SIGNATURE
      PAGE

    

    ALL
      SUBSCRIPTIONS ARE SUBJECT TO ACCEPTANCE BY AGFEED INDUSTRIES, INC. (THE
“COMPANY”). ALL INFORMATION REQUIRED TO BE PROVIDED HEREIN BY SUBSCRIBERS FOR
      DETERMINING INVESTOR QUALIFICATION WILL BE KEPT STRICTLY CONFIDENTIAL. HOWEVER,
      THE COMPANY MAY PRESENT THE INFORMATION TO SUCH PARTIES AS IT DEEMS APPROPRIATE
      IN ORDER TO ASSURE ITSELF THAT THE OFFER AND SALE OF THE SHARES WILL NOT RESULT
      IN A VIOLATION OF THE REGISTRATION PROVISIONS OF THE SECURITIES ACT OR A
      VIOLATION OF THE SECURITIES LAWS OF ANY STATE.

    

    THE
      SHARES OF COMMON STOCK (“SHARES”) AND THE WARRANTS ATTACHED THERETO ARE BEING
      OFFERED PURSUANT TO A PRIVATE PLACEMENT IN RELIANCE UPON EXEMPTIONS FROM THE
      REGISTRATION PROVISIONS OF THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THE REGULATIONS THEREUNDER AFFORDED BY SECTION 4 (2) OF
      THE SECURITIES ACT AND
      RULE 506 OF REGULATION D THEREUNDER, TO A LIMITED NUMBER OF ACCREDITED INVESTORS
      WITHIN THE MEANING OF REGULATION D. 

    

    THE
      SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR ANY STATE SECURITIES
      LAWS. THE SHARES MAY NOT BE SOLD OR OFFERED FOR SALE, TRANSFERRED, HYPOTHECATED
      OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
      FOR THE SHARES UNDER THE SECURITIES ACT, AND APPLICABLE STATE SECURITIES LAWS
      AND DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
      THAT SUCH REGISTRATION IS NOT REQUIRED.  

     

    Dated:
      February 15, 2007

    
      
         

         

         

      

      
         

        
          

        

      

      
         

      

    

     

    INSTRUCTIONS
      TO SUBSCRIBERS:

    

    The
      attached Subscription Agreement relates to an offer to subscribe for a minimum
      of 8,000 Shares at $3.00 per share. The subscriber shall receive a Warrant
      to
      purchase shares of common stock of the Company (“Common Stock”) at an initial
      Exercise Price equal to $5.00 per share. The number of Warrant Shares will
      be
      equal to equal to 8% of the Common Stock purchased. (By way of example only,
      if
      a Subscriber purchases 10,000 shares, the number of Warrant Shares shall equal
      800)

     

    In
      order
      to subscribe for any Shares, please complete the Subscription Documents and
      return them along with your payment in accordance with the following
      instructions:

    

    I. SUBSCRIPTION
      AGREEMENT.

    

    Complete
      the Subscription Agreement including checking the appropriate sections, as
      required. Affix your signature with all applicable information, including,
      without limitation, your address, fax number (if any), and social security
      number or taxpayer identification number on the appropriate signature
      page.

    

    II. PAYMENT

     

    Return
      the Subscription Agreement and related documents with a certified check or
      bank
      draft in an amount equal to the number of shares you wish to subscribe for
      at
      $3.00 per Share. Checks should be made payable to Continental Stock Transfer
      & Trust Company A/A/F AgFeed Escrow, as Escrow Agent.

     

    Wire
      Transfers of funds should be sent to JP Morgan Chase NY, ABA# 021000021,
      A/C Continental Stock Transfer & Trust Company A/A/F AgFeed Escrow, A/C
      No: 530- 065037,
      Ref: AgFeed
      Escrow.

     

    

    III. SUBMISSION
      OF DOCUMENTS

    Please
      return:

    (a)
      the
      original executed Subscription Agreement, 

    (b)
      a
      completed Internal Revenue Service Form W-9, 

    (c)
      your
      certified check or bank draft in the appropriate amount, payable to Continental
      Stock Transfer & Trust Company A/A/F AgFeed Escrow, as Escrow Agent (unless
      the Company has approved a wire transfer), to:

     

    AgFeed
      Industries, Inc.

    c/o
      Beckman, Lieberman and Barandes LLP

    attn:
      Robert Barandes, Esq.

    Suite
      1313, 116 John Street

    New
      York,
      NY 10038

    Tel:
      212-608-3500

    Facsimile:
      212-608-9687

    Email:
      rbarandes@blbllp.com

    
      
         

         

      

      
        2

        
          

        

      

      
         

      

    

     

    SUBSCRIPTION
      AGREEMENT

    

    Private
      Offering of Common Stock 

    and
      Common Stock Purchase Warrants 

    of
      AGFEED INDUSTRIES, INC. 

    

    

    Subscriber:
        Amount
      of Subscription $
      _____________

            
      (the “Purchase Price”)

    

    ____________________________________

    Number
      of SharesDate

    (Purchase
      Price/3)

     

    AgFeed
      Industries, Inc.

    1095
      Qing
      Lan Avenue

    Economic
      and Technical Development Zone

    Nan
      Chang
      City, Jiangxi Province

    China
      330013

    Attn:
      Attn: Mr. Junhong
      Xiong, CEO

    

    Gentlemen:

    

    
      	 	
              1.

            	
              SUBSCRIPTION

            

    

    

    
      	 	
              a.

            	
              The
                shares (“Shares”) of Common Stock of AgFeed Industries, Inc., a Nevada
                corporation (the “Company”), par value $0.001 per share (“Common Stock”),
                are being subscribed for by the undersigned in connection with an
                offering
                by the Company of up to $8,250,000 in Common Stock, and warrants
                (“Warrants”) to purchase shares of common stock of the Company (the
                “Warrant Shares”) equal to 8% of the total shares of Common Stock
                purchased. The minimum investment is $24,000 (8,000 Shares) unless
                otherwise determined in the sole discretion of the Company. The
                undersigned understands that the initial Exercise Price for the Warrant
                Shares is $5.00 per share.

            

    

     

    
      	 	
              b.

            	
              The
                undersigned (sometimes referred to herein as “Subscriber”), intending to
                be legally bound, irrevocably subscribes for and agrees to purchase
                the
                Shares indicated above and an attached Warrant to purchase the Warrant
                Shares in the aggregate amount indicated above (the “Purchase Price”), on
                the terms and conditions described herein. The undersigned herewith
                delivers to the Company the Purchase Price required to purchase the
                Shares
                subscribed for hereunder by delivery to the Company of a check or
                certified funds payable to the Escrow Agent for the Company in the
                amount
                of the Purchase Price. 

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              2.

            	
              ACCREDITED
                INVESTOR REPRESENTATIONS

            

    

    

    
      	 	
              a.

            	
              In
                order to insure that the Shares are sold pursuant to appropriate
                exemption
                from registration under the Securities Act of 1933, as amended (the
                “Securities Act”), and in accordance with Rule 506 of Regulation D
                promulgated thereunder, the undersigned represents and warrants that
                the
                undersigned is an accredited investor described within one of the
                following categories:

            

    

    

    
      	
              PLEASE
                CHECK THE BOX NEXT TO DEFINITION THAT
                APPLIES

            

    

    _____________________________________________________________________________

    

     

    
      	 	
              ’

            	
              i.

            	
              A
                bank as defined in section 3(a)(2) of the Securities Act, or any
                savings
                and loan association or other institution as defined in section 3(a)(5)(A)
                of the Securities Act whether acting in its individual or fiduciary
                capacity; any broker or dealer registered pursuant to section 15
                of the
                Securities Exchange Act of 1934; any insurance company as defined
                in
                section 2(13) of the Securities Act; any investment company registered
                under the Investment Company Act of 1940 or a business development
                company
                as defined in section 2(a)(48) of that Act; any Small Business Investment
                Company licensed by the U.S. Small Business Administration under
                section
                301(c) or (d) of the Small Business Investment Act of 1958; any plan
                established and maintained by a state, its political subdivisions,
                or any
                agency or instrumentality of a state or its political subdivisions,
                for
                the benefit of its employees, if such plan has total assets in excess
                of
                $5,000,000; any employee benefit plan within the meaning of the Employee
                Retirement Income Security Act of 1974 if the investment decision
                is made
                by a plan fiduciary, as defined in section 3(21) of such act, which
                is
                either a bank, savings and loan association, insurance company, or
                registered investment adviser, or if the employee benefit plan has
                total
                assets in excess of $5,000,000 or, if a self-directed plan, with
                investment decisions made solely by persons that are accredited
                investors;

            

    

     

    

    
      	 	
              ’

            	
              ii.

            	
              A
                private business development company as defined in section 202(a)22
                of the
                Investment Advisers Act of 1940;

            

    

    

    
      	 	
              ’

            	
              iii.

            	
              An
                organization described in section 501(c)3 of the Internal Revenue
                Code,
                corporation, Massachusetts or similar business trust, or partnership,
                not
                formed for the specific purpose of acquiring the securities offered,
                with
                total assets in excess of
                $5,000,000;

            

    

    

    ’ 
      iv. A
      director, executive officer, or general partner of the Company;

    

    
      	 	
              ’

            	
              v.

            	
              A
                natural person whose individual net worth, or joint net worth with
                that
                person's spouse, which, at the time of the purchase exceeds
                $1,000,000;

            

    

    

    
      	 	
              ’

            	
              vi.

            	
              A
                natural person who had an individual income in excess of $200,000
                in each
                of the two most recent years or joint income with that person's spouse
                in
                excess of $300,000 in each of those years and has a reasonable expectation
                of reaching the same income level in the current
                year;

            

    

    

    
      	 	
              ’

            	
              vii.

            	
              A
                trust, with total assets in excess of $5,000,000, not formed for
                the
                specific purpose of acquiring the securities offered, whose purchase
                is
                directed by a sophisticated person as described in Rule 505(b)(2)(ii)
                of
                Regulation D; or

            

    

    

    ’ 
      viii. An
      entity
      in which all of the equity owners are accredited investors.

    

    ______________________________________________________________________________

    

    
      	 	
              b.

            	
              The
                undersigned certifies that this representation is true and correct
                and
                hereby agrees to notify the Company of any change which occurs in
                such
                information prior to the Company’s acceptance of this
                subscription.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	 	
              3.

            	
              GENERAL
                REPRESENTATIONS AND WARRANTIES
                The undersigned hereby acknowledges, represents and warrants to and
                agrees
                with the Company, with full knowledge that the Company intends to
                rely
                hereon as follows:

            

    

    

    
      	 	
              a.

            	
              The
                undersigned is acquiring the Shares and the Warrants for the undersigned’s
                own account as principal, for investment purposes only, and not with
                a
                view to, or for, resale or distribution of all or any part of the
                Shares,
                or the Warrants, or the Warrant Shares and no other person has a
                direct or
                indirect beneficial interest in such Warrants, Shares or Warrant
                Shares;

            

    

    

    
      	 	
              b.

            	
              The
                undersigned acknowledges its understanding that:
                

            

    

    

    
      	 	
              i.

            	
              The
                Shares, Warrants and Warrant Shares are being offered and sold without
                registration under the Securities Act of 1933, as amended (the “Securities
                Act”), or the securities laws of any state, in reliance upon the
                exemptions from the registration provisions of the Securities Act
                and the
                regulations thereunder afforded by Section 4(2) of the Securities
                Act and
                Rule 506 of Regulation D promulgated thereunder (“Regulation D”), but that
                the Company does not waive other exemptions under the Securities
                Act or
                under the laws of any State which may be available to it, and, in
                furtherance thereof, the undersigned represents and warrants to and
                agrees
                with the Company that the undersigned has the financial ability to
                bear
                the economic risk of the investment by the undersigned in the Shares
                and
                Warrants, has adequate means for providing for the undersigned’s current
                needs and contingencies and has no need for liquidity with respect
                to the
                undersigned’s investment in the Shares and Warrants.
                

            

    

    

    
      	 	
              ii.

            	
              Neither
                the Shares, the Warrants nor the Warrant Shares have been registered
                under
                the Securities Act on the basis that the issuance thereof is exempt
                under
                on or more the following exemptions: Sections 4(2) or 3(b) of the
                Securities Act; under the Rules and Regulations promulgated under
                the
                Securities Act; as a transaction by an issuer not involving any public
                offering; or under Regulation D promulgated under the Securities
                Act, and
                the Company’s reliance on one or more of such exemptions is predicated in
                part on the undersigned’s representations and warranties set forth in this
                Subscription Agreement. Neither the Shares, the Warrants nor the
                Warrant
                Shares have been registered under the laws of any State (“State Laws”) in
                reliance on specific exemptions from registration thereunder, and
                no
                securities administrator of any State or the Federal Government has
                made
                any finding or determination relating to the fairness of the Offering
                and
                no securities administrator of any State or the Federal Government
                has
                recommended or endorsed the
                Offering.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	
              c.

            	
              If
                an individual, the undersigned is at least 21 years of age, and a
                bona
                fide resident of the state set forth on the signature page hereof,
                the
                address set forth is my true and correct residence address; and I
                am
                legally empowered to enter into binding contracts pursuant to the
                laws of
                such state.

            

    

    

    
      	 	
              d.

            	
              If
                a corporation, limited liability company, partnership, trust, qualified
                plan or other entity, the undersigned is authorized and qualified
                to
                become a holder of Shares and Warrants, and the person signing this
                Subscription Agreement on behalf of such entity has been duly authorized
                to do so and has not been formed for the sole purpose of acquiring
                the
                Shares and the Warrants.

            

    

    

    
      	 	
              e.

            	
              Any
                information which the undersigned has heretofore furnished and herewith
                furnishes to the Company with respect to the undersigned’s financial
                position and business experience is correct and complete as of the
                date of
                this Agreement and if there should be any material change in such
                information prior to issuance to the undersigned of Shares and Warrants,
                the undersigned will immediately furnish such revised or corrected
                information to the Company.

            

    

    

    
      	 	
              f.

            	
              The
                undersigned acknowledges that the undersigned has not purchased the
                Shares
                Warrants and rights to the Warrant Shares as a result of any general
                solicitation or general
                advertising;

            

    

    

    
      	 	
              g.

            	
              The
                undersigned’s overall commitment to investments which are not readily
                marketable is not disproportionate to the undersigned’s net worth, and the
                undersigned’s prospective investment in the Company will not cause such
                overall commitment to become excessive,
                and

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	 	
              h.

            	
              The
                undersigned acknowledges that nothing contained herein should be
                construed
                as tax advice to him; and represents and warrants that he has secured
                independent tax advice related to his purchase of the Shares, Warrants
                and
                the Warrant Shares; that that he has consulted his own attorney,
                business
                adviser and tax adviser as to the legal, business, tax and related
                matters
                pertaining to the investment; that the Shares and Warrants are speculative
                investments which involve a high degree of risk, including, without
                limitation, the risk of loss of the entire investment; and that no
                governmental agency has made any finding or determination as to the
                fairness of the investment, nor any recommendation or endorsement
                of the
                Shares, Warrants or Warrant Shares.

            

    

    

    
      	 	
              i.

            	
              The
                undersigned further represents and warrants that the
                undersigned:

            

    

    

    
      	 	
              i.

            	
              has
                been furnished with, has carefully read and understands this Subscription
                Agreement, the form of Warrant (the “Warrant”), and the Registration
                Rights Agreement (“Registration Rights Agreement”) and has relied solely
                on the information included
                therein;

            

    

    

    
      	 	
              ii.

            	
              has
                been given the opportunity to ask questions of and receive answers
                from
                the Company concerning the terms and conditions of the Offering,
                and has
                been given the opportunity to obtain such additional information
                necessary
                for the undersigned to evaluate the merits and risks of investment
                in the
                Shares and the Warrants to the extent that the Company possesses
                such
                information or can acquire it without unreasonable effort or expense
                and
                such information has not been furnished with any other offering literature
                except as referred to herein;

            

    

    

    
      	 	
              iii.

            	
              has
                not relied on any oral representation, warranty or information in
                connection with the Offering of the Company, or any officer, employee,
                agent, representative or affiliate of the
                Company;

            

    

    

    
      	 	
              iv.

            	
              has
                determined the Shares and the Warrants are a suitable investment
                for the
                undersigned and that at this time the undersigned can bear a complete
                loss
                of the undersigned’s entire investment therein;
                and

            

    

    

    
      	 	
              v.

            	
              has
                such knowledge and experience in financial and business matters that
                the
                undersigned is capable of evaluating the merits and risks of the
                undersigned’s investment in the Shares and the
                Warrants.

            

    

    

    
      	 	
              j.

            	
              The
                foregoing acknowledgments, representations, warranties and agreements
                shall survive the closing at which the Shares and Warrants are
                issued.

            

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	 	
              4.

            	
              SUBSCRIPTION
                IRREVOCABLE BY SUBSCRIBER BUT SUBJECT TO ACCEPTANCE OR REJECTION
                BY THE
                COMPANY

            

    

    

    
      	 	
              a.

            	
              This
                Agreement is not, and shall not be, revocable by me. I intend to
                be
                legally bound by this Agreement.

            

    

    

    
      	 	
              b.

            	
              The
                Company, in its sole discretion, has the right to accept or reject
                this
                subscription, in whole or in part, for any reason
                whatsoever.

            

    

    

    
      	 	
              5.

            	
              CLOSING.
                Closings
                of the sale of Shares and Warrants in the Offering shall take place
                from
                time to time as and when the Company accepts subscriptions therefor
                (each,
                a “Closing”). At each Closing, the Company shall issue certificates
                representing the Shares and Warrants to each investor whose subscription
                therefor has been accepted by the Company prior to the date of such
                Closing, but has not yet received Shares and Warrants, in consideration
                of
                delivery by such subscribers of the Purchase Price. Until a minimum
                of
                $3,000,000 of the Offering has been subscribed, funds received from
                subscribers will be held in escrow. If the minimum amount of the
                Offering
                is not completed by February 28, 2007, as such date may be extended
                by
                AgFeed, without notice, by up to 30 days, all subscriptions will
                be
                returned to the subscribers, without interest. Where no less than
                the
                minimum has been subscribed by that date, the Company may further
                extend
                the Offering for an additional 30 days, without
                notice.

            

    

    

    
      	 	
              6.

            	
              AGREEMENT
                TO INDEMNIFY AND HOLD HARMLESS.
                The undersigned agrees to indemnify and hold harmless the Company,
                its
                affiliates and their respective directors, officers, employees, agents,
                members, controlling persons and representatives (the Company and
                each
                such person, an “Indemnified Party,” and collectively, the “Indemnified
                Parties”), from and against any and all losses, claims, damages,
                liabilities and expenses whatsoever (including, but not limited to,
                any
                and all expenses whatsoever reasonably incurred investigating, preparing
                or defending against any litigation commenced or threatened or any
                claim
                whatsoever), joint or several, as incurred, to which any such Indemnified
                Parties may become subject under any applicable United States federal
                or
                state law or the laws of any other domestic or foreign jurisdiction,
                or
                otherwise, and related to or arising out of or based upon any false
                representation, warranty or acknowledgment, or breach or failure
                by the
                undersigned to comply with any covenant or agreement made by the
                undersigned herein or in any other document furnished by the undersigned
                to any of the foregoing in connection with the Offering and the
                transactions contemplated thereby.

            

    

    

    
      	 	
              7.

            	
              GOVERNING
                LAW, ETC. This
                Agreement shall be governed by, and construed in accordance with,
                the law
                of the State of New York applicable to agreements made and to be
                performed
                wholly within such State, without giving effect to conflicts of law
                principles. All captions and section headings are for convenience
                only.
                All pronouns and any variations thereof shall be deemed to refer
                to the
                masculine, feminine, neuter, singular or plural, as the identity
                of the
                person or persons or entity or entities may require. This Agreement
                is not
                transferable or assignable by the Subscriber. If the Subscriber is
                more
                than one person, the obligations of the Subscriber shall be joint
                and
                several and the representations, warranties and agreements herein
                contained shall be deemed to be made by and be binding upon each
                such
                person and each such person’s heirs, executors, administrators and
                successors and assigns.

            

    

    

    

    

    

    BALANCE
      OF PAGE INTENTIONNALLY LEFT BLANK

    
      
         

         

      

      
        8

        
          

        

      

      
         

      

    

    INDIVIDUAL
      SUBSCRIPTION SIGNATURE PAGE

    Private
      Offering Common Stock 

    and
      Common Stock Purchase Warrants 

    of
      AGFEED INDUSTRIES, INC. 

    (a
      Nevada Corporation)

     

    The
      undersigned, desiring to purchase Common Stock (“Common Stock”) and Common Stock
      Purchase Warrants of AgFeed Industries, Inc., a Nevada corporation (the
“Company”), hereby agrees to all the terms of the Subscription Agreement to
      which this Signature Page was attached and, upon acceptance of the Subscription
      Agreement by the Company, agrees to be bound by the terms and provisions
      thereof, and the Warrant and Registration Rights Agreement issued in connection
      with the Offering. This Subscription Signature Page shall be deemed and may
      be
      attached as the signature page for the undersigned to the Warrant and
      Registration Rights Agreement issued in accordance herewith.

    

    By
      executing this Subscription Signature Page, the undersigned hereby

    

    
      	
              A.

            	 	
              executes,
                adopts and agrees to all terms, conditions and representations of
                this
                Subscription Agreement, the Warrant and the Registration Rights Agreement
                and

            

    

    

    
      	
              B.

            	 	
              subscribes
                for ____________ Shares of Common Stock, and Warrants to purchase
                the
                number of shares of Common Stock for each share of Common Stock purchased
                determined by the Company in accordance with the terms of the Subscription
                Agreement, at $3.00 per Share of Common Stock (minimum purchase,
                8,000
                Shares).

            

    

    

    Printed
      Name & Residence Address (Note: Business
      Address will NOT be accepted.)

    
      	
              Name_________________________________

              Street_________________________________

              City_____________
                State____ Zip _________

            	
               

              Phone
                ( )_________________ 

              Fax
                ( )________________ 

              E-Mail_________________________ 

            
	
              Signature
                ___________________________
                

               

              Social
                Security Number____________________
                 

            	
              Date: 

            

    

    Subscription
      accepted as of

    

     ,
      2007

    AgFeed
      Industries, Inc.

    

    

    By:______________________

    Authorized
      Signatory

    
      
         

         

      

      
        9

        
          

        

      

      
         

      

    

    ENTITY
      SUBSCRIPTION PAGE

    

    Private
      Offering of Common Stock 

    and
      Common Stock Purchase Warrants 

    of
      AGFEED INDUSTRIES, INC. 

    (a
      Nevada corporation)

     

    The
      undersigned, desiring to purchase Common Stock and Common Stock Purchase
      Warrants of AgFeed Industries, Inc., a Nevada corporation (the “Company”),
      hereby agrees to all the terms of the Subscription Agreement to which this
      Signature Page was attached and, upon acceptance of the Subscription Agreement
      by the Company, agrees to be bound by the terms and provisions thereof, and
      the
      Warrant and Registration Rights Agreement issued in connection with the
      Offering. This Subscription Signature Page shall be deemed and may be attached
      as the signature page for the undersigned to the Warrant and Registration Rights
      Agreement issued in accordance herewith.

    

    

    By
      executing this Subscription Agreement Page, the undersigned hereby:

    

    
      	
              a.

            	 	
              executes,
                adopts and agrees to all terms, conditions and representations of
                this
                Subscription Agreement, the Warrant and the Registration Rights Agreement
                and

            

    

    

    
      	
              b.

            	 	
              subscribes
                for ____________ Shares of Common Stock, and Warrants to purchase
                the
                number of shares of Common Stock determined by the Company in accordance
                with the terms of the Subscription Agreement for each share of Common
                Stock purchased, at $3.00 per Share of Common Stock (minimum purchase,
                8,000 Shares).

            

    

     

    
      	
              Printed
                Name & Address of Principal Place of Business

               

              Name
                ________________________ 

              Street
                _________________________

              City
                _________________________ 
                State_____   Zip ________

            	
              State
                of Organization (if different from of Principal Place of
                Business:

               

               

              Phone
                (
                _____________ ) 

              E-mail
                __________________ 

            

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    FORM
      OF
      OWNERSHIP — Check type of Subscriber.

    

    _________ TRUST
      (Please include name of trust, name of trustee, date trust was formed and copy
      of the trust agreement).

    

    _________ PARTNERSHIP
      (Please include copy of the Partnership agreement authorizing
      signature).

    

    __________ CORPORATION
      (Please include certified corporate resolution(s) authorizing signature and
      purchase of Shares).

    

    __________ OTHER
      (Please specify and include copy of document authorizing
      signature).

    

    The
      undersigned trustee, partner or officer warrants that he has full power and
      authority from all beneficiaries, partners or shareholders of the entity named
      above to execute this Subscription Agreement Signature Page on behalf of such
      entity and that investment is not prohibited by the governing documents of
      such
      entity.

    

    
      	
              Dated:
                ___________________

               

               

               

               

               

               

               

               

              Subscription
                accepted as of

               

               ______________,
                2007

            	
              _________________________________

              (Name
                of Entity)

               

              By:
                _______________________________

              (Trustee,
                partner or authorized corporate officer)

               

              ___________________________________

              Taxpayer
                Identification Number

               

              AgFeed
                Industries, Inc.

               

              By:
                __________________________

              Authorized
                Signatory

            

    

    

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    

    TERM
      SHEET

    February
      15, 2007

    Best
      Efforts 

    Private
      Placement 

    By

    

    AgFeed
      Industries, Inc. 

    (US
      Stock symbol: AGFI)

    (“AgFeed”
      or “Company”)

    of

    

    UNITS

    consisting
      of

    

    Common
      Stock of AgFeed - $.001 per Share

    and

    Warrants
      to Purchase Common Stock (8% coverage - exercise price $5.00)

    

    Total
      Number of Units Offered - 2,750,00

    Cost
      of Each Unit - $3

    Total
      Offering - $8,250,000

    Minimum
      Amount to Close - $3,000,000

    Minimum
      Investment $24,000 - 8,000 Units

    

    
      	
              Total
                Offering Price:

            	
              $8,250,000

            
	
              Terms
                of the Offering:

            	
              The
                Units are being offered on a best efforts basis by AgFeed. Until
                a minimum
                of $3,000,000 of the Offering has been subscribed, funds received
                from
                subscribers will be held in escrow. If the minimum amount of the
                Offering
                is not completed by February 28, 2007, as such date may be extended
                by
                AgFeed without notice by up to 30 days, all subscriptions will be
                returned
                to the subscribers, without interest. Where no less than the minimum
                has
                been subscribed by that date, the Company may further extend the
                Offering
                for an additional 30 days, without notice.

            
	
              Escrow:

            	
              Continental
                Stock Transfer & Trust Company shall act as Escrow Agent for the
                Offering. All funds raised shall be deposited and held in escrow
                as
                provided for in this term sheet at:

               

              JP
                Morgan Chase NY

              ABA#
                021000021

              A/C
                Continental Stock Transfer & Trust Company

              A/A/F
                AgFeed Escrow 

              A/C
                No: 5 3 0 - 0 6 5 0 3 7

              Ref: AgFeed
                Escrow

            
	
              Description
                of Units:

            	 
	 	
              General
                Description

            	
              Each
                Unit, being sold for $3, represents the purchase of (i) one share
                of
                Common Stock of AgFeed and (ii) a three (3) year Warrant to purchase
                Common Stock of AgFeed with an initial exercise price of $5.00 (8%
                coverage).

            
	 	
              Registrations
                Rights

            	
              A
                registration statement covering the Shares and the shares underlying
                the
                Warrants, will be filed within 60 days of the final closing of sales
                pursuant to the Offering.

               

              The
                Company warrants and agrees that no stock held by such persons known
                by
                Company to own five percent (5%) or more of the outstanding shares
                of the
                Company prior to the commencement of the Offering; nor any shares
                held by
                the officers and directors of the Company, all as disclosed in the
                publicly filed reports of the Company, will be included in such
                registration statement.

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              Minimum
                Purchase:

            	
              Eight
                Thousand Units - $24,000

            
	
              Nature
                of Offering:

            	
              The
                Units are being offered pursuant to a private placement, in reliance
                upon
                the exemptions from the registration provisions of the Securities
                Act of
                1933, as amended and the regulations thereunder afforded by Section
                4 (2)
                of the Securities Act and rule 506 of Regulation D promulgated thereunder,
                to a limited number of Accredited Investors within the meaning of
                Regulation D. The sale of the Shares will be made in a private placement
                only to persons the Company reasonably believes are “accredited
                investors,” as defined in Rule 501(a) of Regulation D under the Securities
                Act. Generally, included within the category of an accredited investor
                is
                any person whose individual net worth, or joint net worth with that
                person’s spouse, exceeds $1,000,000, or who had an individual income in
                excess of $200,000 in each of the two most recent years, or joint
                income
                with that person’s spouse in excess of $300,000 in each of those years,
                and who has a reasonable expectation of reaching the same income
                level in
                the current year. Prospective investors that are not individuals
                must also
                meet specific criteria set forth in Rule 501 of Regulation D.
                

            
	
              Investor
                Suitability:

            	
              An
                investment in the Units is suitable only for those persons and entities
                whose financial means will permit them to assume the risks of a
                speculative, illiquid, long-term investment. Each subscriber will
                be asked
                to represent that (a) the Units are being purchased for that subscriber’s
                own account for investment and not for the interest of any other
                person or
                entity not allowed by law; (b) the Units are not being purchased
                for the
                purpose of resale to others; and (c) the subscriber understands that
                his,
                her or its right to transfer the Common Stock represented by the
                Units is
                restricted by applicable securities laws, rules and
                regulations.

            
	
              Subscription
                Procedure:

            	
              In
                order to insure that the Units are sold pursuant to appropriate exemption
                from registration under the Securities Act of 1933 as amended, and
                in
                accordance with Regulation D §506 promulgated thereunder, each purchaser
                will have to sign a Subscription Agreement, represent and warrant
                that
                they are an Accredited Investor, and deliver their Purchase Price
                with the
                delivery of that document.

               

              Except
                as required by law, the Subscription Agreement will be irrevocable
                by the
                prospective investor and, unless the subscription is rejected or
                the
                Offering is withdrawn, the subscriber will become an investor in
                this
                Offering. Subscriptions may be rejected by the Company for failure
                to
                conform to the requirements of the Offering, insufficient documentation,
                over subscription of the Offering or any such other reason, whatsoever,
                as
                the Company, in its sole discretion, may
                determine.

            
	
              The
                Company

            	
              The
                information in this Term Sheet is summary in nature and any prospective
                subscriber seeking additional information is referred to the periodic
                and
                other reports of the Company with the Securities and Exchange Commission
                and available for review at www.sec.gov.

            
	 	
              General:

            	
              AgFeed
                Industries, Inc. (US stock symbol: AGFI, website: www.agfeedinc.com
                ) is a
                US company with its main business in China. AGFI is the first China
                based
                animal feed and nutritional product company publicly traded in the
                US.
                Through its three operating subsidiaries located in China, the profitable
                company is a leading manufacturer and marketer of animal feed products
                targeting China’s vast and fast growing markets ($34.5 billion in 2005).
                AGFI is the only China based animal feed company publicly traded
                in the
                US.

            
	 	
              Market
                Cap

            	
              $98.4
                million (January 30, 2007)

            
	 	
              Shares
                Outstanding

            	
              (common
                stock only): 24,000,000

            
	 	
              Management:

            	
              Ownership
                by management and affiliates - restricted:
                19,200,000

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              AGFEED
                COMMON STOCK

            	 
	 	
              Offering
                Price

            	
              $3
                per share - with 8% Warrant coverage.

            
	 	
              Common
                Stock being offered

            	
              2,750,000
                shares of Common Stock are being offered at a purchase price of $3
                per
                share for an aggregate of $8,250,000.

            
	 	
              Status
                of AgFeed

            	
              AgFeed
                is a Nevada corporation. The Common Stock of the Company is listed
                on the
                OTC-Bulletin Board. Recent share price: $4.65 (February 15,
                2007)

            
	 	
              Purpose
                of Offering:

            	
              The
                Board of Directors of AgFeed has determined that it is in the best
                interest of the shareholders and the company that it secure funding
                for
                working capital and potential business acquisitions by the sale of
                shares
                and warrants.

            
	 	
              Outstanding
                Shares:

               

              Common
                Stock

               

            	
               

              Authorized
                Capital - 75,000,000 shares of $.001 par value common stock.

               

              There
                are currently 24,000,000 shares of Common Stock outstanding.
                

            
	 	
              Use
                of Proceeds 

            	
              The
                net proceeds of the sale of the Units will be used for working capital,
                product development, investing in or acquiring other companies or
                assets,
                and general corporate purposes, and may be reallocated as management
                may
                determine in its sole discretion without the need for shareholder
                approval
                with respect to any such allocations, subject to the limitations
                imposed
                by AgFeed’s Articles of Incorporation. 

            
	
              CONTACT:

            	
              Robert
                Barandes, Esq.

              (Email:
                rbarandes@blbllp.com) 

              Corporate
                Counsel

              AgFeed
                Industries, Inc. 

              Beckman,
                Lieberman and Barandes LLP 

              New
                York City 

              Tel:
                212-608-3500

            

    

     

     

    Forward
      Looking Statements

    All
      statements other than statements of historical fact included herein, including
      without limitation statements regarding the Company's financial position and
      projections of estimated revenue, business strategy, and the plans and
      objectives of the Company's management for future operations, are forward
      looking statements. When used in this term
      sheet, words such as "anticipate", "believes", "estimate", "expect", "should",
      "intend", "projects", "objective," and similar expressions, as they relate
      to
      the Company or its management, identify forward-looking statements. Such
      forward-looking statements are based on the beliefs of the Company's management,
      as well as assumptions made by and information currently available to the
      Company's management. Actual results could differ materially from those
      contemplated by the forward-looking statements as a result of certain factors,
      including but not limited to, business and economic conditions, ability to
      raise
      additional funds, competitive factors, pricing pressure, capacity and supply
      constraints and the ability of our sales force to achieve revenue growth. Such
      statements reflect the views of the Company with respect to future events and
      are subject to these and other risks, uncertainties, and assumptions relating
      to
      the operations, results of operations, growth strategy and liquidity of the
      Company. Investors are cautioned not to place undue reliance on these
      forward-looking statements. The Company does not undertake any obligation to
      release publicly any revisions to these forward-looking statements to reflect
      future events or circumstances or to reflect the occurrence of unanticipated
      events.AGFEED
      INDUSTRIES, INC.

    

    SUBSCRIPTION
      AGREEMENT

    

    

    This
      Subscription Agreement pertains to the offering by AgFeed Industries, Inc.
      (the
      "Company")
      of
      Seven Hundred Fifty Thousand (750,000) units (the "Units"),
      with
      each Unit consisting of one (1) share of the Company’s common stock (the
      "Shares")
      and
      warrants to purchase twenty-five percent (25%) of one (1) share of the Company’s
      common stock at an exercise price of Five Dollars and Sixty Cents ($5.60) per
      share (the "Warrants"),
      at a
      purchase price of Four Dollars ($4.00) per Unit (the "Offering").

     

    The
      undersigned, intending to be legally bound, hereby offers to pur-chase from
      the
      Company and the Company hereby agrees to sell to the undersigned 750,000 Units
      for an aggregate purchase price of $3,000,000 (the “Purchase
      Price”).

     

    The
      Company shall execute the Receipt and Acceptance attached to this Subscription
      Agreement concurrently with the undersigned’s execution of this Subscription
      Agreement and will thereby be deemed to have accepted this offer and be bound
      by
      all representations, warranties, covenants and other terms and conditions
      contained herein. 

     

    1.  Definitions.
      In
      addition to the terms defined elsewhere in this Subscription Agreement, for
      all
      purposes of this Subscription Agreement, the following terms shall have the
      meanings indicated in this Section 1:

     

    "Affiliate"
      means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person, as such
      terms are used in and construed under Rule 144.

     

    "Commission"
      means
      the Securities and Exchange Commission.

     

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

     

    “GAAP”
      means
      U.S. generally accepted accounting principles.

     

    “New
      York Courts”
      means
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan.

     

    "Person"
      means an
      individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

     

    "Transaction
      Documents"
      means
      this Subscription Agreement, the Warrants, the Registration Rights Agreement
      and
      any other documents or agreements executed in connection with the transactions
      contemplated hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Warrant
      Shares" means
      the
      shares of Common Stock issuable upon exercise of the Warrants.

     

    2.  Verification
      of Investor Suitability under Regulation D. The
      undersigned understands that in order to subscribe for the Units in this
      Offering, the undersigned must be an "accredited investor" as defined in Section
      501 of Regulation D under the Securities Act and the undersigned hereby
      represents and warrants that it is an “accredited investor” as such term is
      defined in Rule 501(a) promulgated under the Securities Act.

     

    3.  Amount
      and Method of Payment.
      Concurrently with the execution of this Subscription Agreement, the Purchase
      Price shall be paid by tender of a check made payable to AgFeed Industries,
      Inc.
      or wire transfer of immediately available funds to the account set forth on
      the
      last page hereof under the caption “Wire Transfer Instructions” in the amount of
      Three Million Dollars ($3,000,000).

     

    4.  Registration
      Rights.

     

    Concurrently
      with the execution of this Subscription Agreement, the Company and the
      undersigned have entered into a Registration Rights Agreement regarding the
      Shares, the Warrants and the Warrant Shares. 

     

    5.  Restrictions
      on Resale or Transfer.

     

    (a)  The
      Units, Shares, Warrants and Warrant Shares have not been registered under the
      Securities Act or any state securities laws, and may not be sold or transferred
      unless (i) such sale or transfer is subsequently registered thereunder;
      (ii) the undersigned shall have delivered to the Company an opinion of
      counsel (the substance of which shall be reasonably acceptable to the Company)
      to the effect that the securities to be sold or transferred may be sold or
      transferred pursuant to an exemption from such registration; (iii) the
      securities are sold pursuant to Rule 144 promulgated under the Securities
      Act (or a successor rule); or (iv) such sale or transfer is to an Affiliate
      of
      the undersigned.

     

     
       (b) The
      certificate(s) representing the Shares and the Warrant Shares and the Warrants
      shall each bear restrictive legends in substantially the following form (and
      a
      stop-transfer order may be placed against transfer of the certificates for
      such
      securities to the extent such transfer does not comply with the provisions
      set
      forth in Section 6(a) above):

     

    "The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (the "Securities
      Act"),
      or
      applicable state securities laws, and accordingly may not be offered for sale,
      sold or otherwise transferred in the absence of an effective registration
      statement for the securities under the Securities Act or in a transaction not
      subject to the registration requirements of the Securities Act, in each case
      in
      accordance with applicable state securities laws and in the case of a
      transaction exempt from registration, the Company has received an opinion of
      counsel, in substance reasonably acceptable to the Company, that registration
      is
      not required under the Securities Act or unless sold pursuant to Rule 144 under
      the Securities Act."

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) The
      restrictive legend set forth in Section 5(b) shall be removed upon (i) a sale
      or
      transfer pursuant to an effective registration statement, (ii) a sale or
      transfer pursuant to an exemption from registration, (iii) a sale or transfer
      pursuant to Rule 144, or (iv) once eligible for resale under Rule
      144(k).

    

    6.  Delivery
      of the Stock Certificate and Warrants.
      The
      Company will execute and deliver certificate(s) representing the Shares and
      Warrants to the subscriber within five (5) business days after the date
      hereof.

     

    7.  Representations
      and Warranties of the Undersigned. The
      undersigned hereby acknowledges, represents and warrants to, and agrees with,
      the Company as follows:

     

     (a)  The
      undersigned understands that the offering and sale of the Units by the Company
      to the undersigned is intended to be exempt from registration under the
      Securities Act by virtue of Section 4(2) of the Securities Act and the
      provisions of Rule 506 of Regulation D promulgated thereunder and, in accordance
      therewith and in furtherance thereof, the undersigned represents and warrants
      to
      and agrees with the Company as follows:

     

    (i)  The
      undersigned is acquiring the Shares and the Warrants for the undersigned’s own
      account as principal, for investment purposes only, and not with a view to,
      or
      for, resale or distribution of all or any part of the Shares, the Warrants,
      or
      the Warrant Shares and no other person has a direct or indirect beneficial
      interest in such Warrants, Shares or Warrant Shares; 

     

    (ii)  Neither
      the undersigned nor the undersigned’s investment advisors, if any, have been
      furnished any offering literature other than this Subscription Agreement and
      the
      exhibits attached hereto;

     

    (iii)  The
      undersigned acknowledges that it has conducted its own independent evaluation
      of
      the Company and has analyzed the risks associated with an investment in the
      Units and has based its decision to invest in the Units on the results of this
      evaluation and analysis;

     

    (iv)  The
      undersigned (A) has such knowledge of, and experience in, business and financial
      matters so as to enable it to utilize the information made available to it
      in
      connection with the offering of the Units in order to evaluate the merits and
      risks of an investment in the Units and to make an informed investment decision
      with respect thereto, and (B) the undersigned has evaluated the risks of
      investing;

     

    (v)  The
      undersigned understands that the certificate(s) evidencing ownership of the
      Shares and the Warrant Shares and the Warrants will each bear a restrictive
      legend and have not been registered under the Securities Act or any state
      securities laws, and may not be sold or transferred unless (i) such sale or
      transfer is subsequently registered thereunder; (ii) the undersigned shall
      have delivered to the Company an opinion of counsel (the substance of which
      shall be reasonably acceptable to the Company) to the effect that the securities
      to be sold or transferred may be sold or transferred pursuant to an exemption
      from such registration; (iii) the securities are sold pursuant to
      Rule 144 promulgated under the Securities Act (or a successor rule); or
      (iv) such sale or transfer is to an Affiliate of the undersigned;
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (vi)  Any
      information provided by the undersigned to the Company with respect to the
      undersigned’s financial position and business experience is true and correct and
      the undersigned understands that the Company is relying upon such information in
      connection with the purchase of the Units by the undersigned.

     

    (b)  The
      undersigned understands that no federal or state agency has passed upon the
      Units or made any finding or determination as to the fairness of this investment
      in the Units. 

     

    (c)  The
      undersigned acknowledges and agrees that the Company intends to pay commissions
      to Four Tong Investments, Ltd. These commissions will consist of (i) cash equal
      to eight percent (8%) of the gross proceeds received by the Company from such
      sales, plus (ii) a warrant to purchase that number of shares of common stock
      equal to eight percent (8%) of the aggregate Units sold in the Offering at
      an
      exercise price per share equal to$5.60. The warrant described in subsection
      (ii)
      shall be in the form attached as Exhibit "A" hereto.

     

        8. Representations
      and Warranties of the Company.
      The
      Company hereby acknowledges, represents and warrants to, and agrees with, the
      undersigned as follows:

     

     
      (a) Organization
      and Qualification.
      The
      Company is duly incorporated or otherwise organized, validly existing and in
      good standing under the laws of the jurisdiction of its incorporation or
      organization, with the requisite power and authority to own and use its
      properties and assets and to carry on its business as currently conducted.
      The
      Company is not in violation of any of the provisions of its certificate or
      articles of incorporation, bylaws or other organizational or charter documents.
      The Company is duly qualified to conduct its business and is in good standing
      as
      a foreign corporation or other entity in each jurisdiction in which the nature
      of the business conducted or property owned by it makes such qualification
      necessary.

     

     (b) Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action is required by the Company in connection therewith. Each Transaction
      Document has been (or upon delivery will have been) duly executed by the Company
      and, when delivered in accordance with the terms hereof, will constitute the
      valid and binding obligation of the Company enforceable against the Company
      in
      accordance with its terms, except as such enforceability may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      or
      similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by other equitable principles of general application.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     (c) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby
      do
      not and will not (i) conflict with or violate any provision of the Company's
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents, or (ii) conflict with, or constitute a default (or an event
      that with notice or lapse of time or both would become a default) under, or
      give
      to others any rights of termination, amendment, acceleration or cancellation
      (with or without notice, lapse of time or both) of, any agreement, credit
      facility, debt or other instrument (evidencing a Company debt or otherwise)
      or
      other understanding to which the Company is a party or by which any property
      or
      asset of the Company is bound or affected, or (iii) result in a violation of
      any
      law, rule, regulation, order, judgment, injunction, decree or other restriction
      of any court or governmental authority to which the Company is subject
      (including federal and state securities laws and regulations), or by which
      any
      property or asset of the Company is bound or affected.

     

     (d) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local, foreign or other governmental authority or other
      Person in connection with the execution, delivery and performance by the Company
      of the Transaction Documents, other than (i) the filing with the Commission
      of
      one or more Registration Statements in accordance with the requirements of
      the
      Registration Rights Agreement, (ii) filings required by state securities laws,
      (iii) the filing of a Notice of Sale of Securities on Form D with the Commission
      under Regulation D of the Securities Act, (iv) the filings required in
      accordance with Section 4.5 and (v) those that have been made or obtained prior
      to the date of this Subscription Agreement.

     

    (e) Issuance
      of the Units.
      The
      Units have been duly authorized and, when issued and paid for in accordance
      with
      the Transaction Documents, will be duly and validly issued, fully paid and
      nonassessable, free and clear of all liens and encumbrances. The Company has
      reserved from its duly authorized capital stock the shares of Common Stock
      issuable pursuant to this Agreement and the Warrants in order to issue the
      Shares and the Warrant Shares.

     

    (f) SEC
      Reports; Financial Statements.
      The
      Company has filed all reports required to be filed by it under the Securities
      Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
      since November 1, 2006 (the foregoing materials being collectively referred
      to
      herein as the “SEC
      Reports”)
      on a
      timely basis or has timely filed a valid extension of such time of filing and
      has filed any such SEC Reports prior to the expiration of any such extension.
      As
      of their respective dates, the SEC Reports complied in all material respects
      with the requirements of the Securities Act and the Exchange Act and the rules
      and regulations of the Commission promulgated thereunder, and none of the SEC
      Reports, when filed, contained any untrue statement of a material fact or
      omitted 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. The financial statements of the Company included
      in the SEC Reports comply in all material respects with applicable accounting
      requirements and the rules and regulations of the Commission with respect
      thereto as in effect at the time of filing. Such financial statements have
      been
      prepared in accordance with GAAP applied on a consistent basis during the
      periods involved, except as may be otherwise specified in such financial
      statements or the notes thereto, and fairly present in all material respects
      the
      financial position of the Company as of and for the dates thereof and the
      results of operations and cash flows for the periods then ended, subject, in
      the
      case of unaudited statements, to normal, immaterial, year-end audit adjustments.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) Capitalization.
      The
      number of shares and type of all authorized, issued and outstanding capital
      stock of the Company, and all shares of Common Stock reserved for issuance
      under
      the Company’s various option and incentive plans, is specified in the SEC
      Reports. Except as specified in the SEC Reports, no securities of the Company
      are entitled to preemptive or similar rights, and no Person has any right of
      first refusal, preemptive right, right of participation, or any similar right
      to
      participate in the transactions contemplated by the Transaction Documents.
      Except as specified in the SEC Reports, there are no outstanding options,
      warrants, scrip rights to subscribe to, calls or commitments of any character
      whatsoever relating to, or securities, rights or obligations convertible into
      or
      exchangeable for, or giving any Person any right to subscribe for or acquire,
      any shares of Common Stock, or contracts, commitments, understandings or
      arrangements by which the Company is or may become bound to issue additional
      shares of Common Stock, or securities or rights convertible or exchangeable
      into
      shares of Common Stock. The issue and sale of the Securities will not,
      immediately or with the passage of time, obligate the Company to issue shares
      of
      Common Stock or other securities to any Person (other than the undersigned)
      and
      will not result in a right of any holder of Company securities to adjust the
      exercise, conversion, exchange or reset price under such
      securities.

     

     (g) Material
      Changes.
      Since
      the date of the latest audited financial statements included within the SEC
      Reports, except as specifically disclosed in the SEC Reports, there has been
      no
      event, occurrence or development that has had or that could reasonably be
      expected to result in a material adverse effect on the Company, (ii) the Company
      has not incurred any liabilities (contingent or otherwise) other than (A) trade
      payables, accrued expenses and other liabilities incurred in the ordinary course
      of business consistent with past practice and (B) liabilities not required
      to be
      reflected in the Company's financial statements pursuant to GAAP or required
      to
      be disclosed in filings made with the Commission, (iii) the Company has not
      altered its method of accounting or the identity of its auditors, (iv) the
      Company has not declared or made any dividend or distribution of cash or other
      property to its stockholders or purchased, redeemed or made any agreements
      to
      purchase or redeem any shares of its capital stock, and (v) the Company has
      not
      issued any equity securities to any officer, director or affiliate, except
      pursuant to existing Company stock option or restricted stock plans. The Company
      does not have pending before the Commission any request for confidential
      treatment of information.

     

    8.  Indemnification.
      The
      undersigned agrees to indemnify and hold harmless the Company and the officers
      and directors thereof and each other person, if any, who controls the Company,
      within the meaning of Section 15 of the Securities Act, against any and all
      loss, liability, claim, damage and expense whatsoever (including, but not
      limited to, any and all expenses reasonably incurred in investigating, preparing
      or defending against any litigation commenced or threatened or any claim
      whatsoever) arising out of or based upon any false representations or warranty
      or breach or failure by the undersigned to comply with any covenant or agreement
      made by the undersigned herein or in any other document furnished by the
      undersigned to the Company in connection with this transaction.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.  Modification.
      Neither
      this Subscription Agreement nor any provisions hereof shall be waived, modified,
      discharged or terminated except by an instrument in writing signed by the party
      against whom any such waiver, modification, discharge or termination is
      sought.

     

    10.  Notices.
      Any
      notice, demand or other communication that any party hereto may be required,
      or
      may elect, to give to any other party hereunder shall be sufficiently given
      if
      (a) deposited, postage prepaid, in a United States mail box, stamped, registered
      or certified mail, return receipt requested, addressed to such address as may
      be
      listed on the books of the Company, or (b) delivered personally at such
      address.

     

    11.  Counterparts.
      This
      Subscription Agreement may be executed through the use of separate signature
      pages or in any number of counterparts, and each of such counterparts shall,
      for
      all purposes, constitute one agreement binding on all parties, notwithstanding
      that all parties are not signatories to the same counterpart. This Subscription
      Agreement may be executed and delivered via electronic facsimile transmission
      with the same force and effect as if it were executed and delivered by the
      parties simultaneously in the presence of one another.

     

    12.  Entire
      Agreement.
      This
      Subscription Agreement, including the exhibits attached hereto, contains the
      entire agreement of the parties with respect to the subject matter hereof and
      there are no representations, covenants or other agreements except as stated
      or
      referred to herein.

     

    13.  Severability.
      Each
      provision of this Subscription Agreement is intended to be severable from every
      other provision, and the invalidity or illegality of any provision shall not
      affect the validity or legality of the remaining provisions.

     

    14.  Assignability.
      This
      Subscription Agreement is not transferable or assignable by the
      undersigned.

     

    15.  Applicable
      Law.
      This
      Subscription Agreement shall be governed by and construed in accordance with
      the
      laws of the State of New York as applied to residents of that jurisdiction
      executing contracts wholly to be performed therein.

     

    16.  Choice
      of Jurisdiction.
      The
      undersigned agrees that any action or proceeding directly or indirectly relating
      to or arising out of this Subscription Agreement, any breach hereof, or any
      transaction covered hereby shall be resolved, whether by arbitration or
      otherwise, within the State of New York. Accordingly, the parties consent and
      submit to the jurisdiction of the New York Courts. The parties further agree
      that any such relief whatsoever in connection with this Subscription Agreement
      shall be commenced by such party exclusively in the New York
      Courts.

     

    17.  Reimbursement.
      If any
      action or other proceeding is brought for the enforcement of this Subscription
      Agreement or because of an alleged dispute, breach, default or misrepresentation
      in connection with any of the provisions of this Subscription Agreement, the
      suc-cessful or prevailing party or parties shall be entitled to recover
      reasonable attorney’s fees and other costs incurred in such action or proceeding
      in addition to any other relief to which they may be entitled.

     

    18.  Further
      Assurances.
      Each of
      the parties shall execute said documents and other instruments and take such
      further actions as maybe reasonably required or desirable to carry out the
      provisions hereof and the transactions contemplated hereby.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    

    APOLLO
      ASIA OPPORTUNITY MASTER FUND, L.P.

     
      

    

    By:   
      Apollo Asia Management, L.P.

    By: 
      Apollo Asia Management GP, LLC

    

    By:__________________________________

    Name:
      Laurie Medley

    Title:
      Vice President

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
      PORTION NOT TO BE COMPLETED BY SUBSCRIBER

     

      
        

      

    

    

    RECEIPT
      AND ACCEPTANCE

    

    CASH
      OR
      CHECK AND SUBSCRIPTION AGREEMENT RECEIVED ON____________,
      2007.

    

    By:____________________________

    

    SUBSCRIPTION
      ACCEPTED ON________,
      2007.

    

    AGFEED
      INDUSTRIES, INC.

     

    By:_____________________________

    
      	 	Name:
	 	Title :

    

    
       

      
        

      

    

     

    WIRE
      TRANSFER INSTRUCTIONS

    

    If
      Subscriber wishes to wire transfer the purchase price of his Units, he or she
      shall wire transfer immediately available funds in the amount of the Purchase
      Price subscribed for hereunder, as follows: 

     

    
      	Bank Name: 	XXXXXXX	 
	 	 	 
	Bank ABA #:	XXXXXXX	 
	 	 	 
	Beneficiary: 	XXXXXXX	 
	 	 	 
	Account No.:	XXXXXXX	 
	 	 	 
	For Further
              Credit:	XXXXXXX	 
	 	 	 
	Account Name: 	XXXXXXX	 
	 	 	 
	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    FORM
      OF STOCK PURCHASE WARRANT

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