Document:

EXHIBIT
      4.4

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is made
      and entered into as of April 17, 2008, by and among Yongye Biotechnology
      International, Inc., a Nevada corporation (the “Company”),
      and
      the investors signatory hereto (each a “Investor”
      and
      collectively, the “Investors”).

     

    This
      Agreement is made in connection with the Securities Purchase Agreement, dated
      as
      of the date hereof among the Company and the Investors (the “Purchase
      Agreement”).

     

    The
      Company and the Investors hereby agree as follows:

     

    1. Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement will have the respective meanings given such terms in the
      Purchase Agreement. As used in this Agreement, the following terms have the
      respective meanings set forth in this Section 1:

     

    “2008
      Delivery Date” means
      the
      date on which the 2008 Make Good Shares are required to be delivered to the
      Investors by the Make Good Pledgor pursuant to the Make Good Escrow
      Agreement.

     

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

     

    “Commission
      Comments” means
      written comments
      pertaining solely to Rule 415 which
      are
      received by the Company from the Commission to a filed Registration Statement,
      a
      copy of which shall have been provided by the Company to the Holders, which
      either (i) requires the Company to limit the number of Registrable Securities
      which may be included therein to a number which is less than the number sought
      to be included thereon as filed with the Commission or (ii) requires the Company
      to either exclude Registrable Securities held by specified Holders or deem
      such
      Holders to be underwriters with respect to Registrable Securities they seek
      to
      include in such Registration Statement.

     

    “Cut
      Back Shares” has
      the
      meaning set forth in Section 2(b).

     

    “Effective
      Date”
      means,
      as to a Registration Statement, the date on which such Registration Statement
      is
      first declared effective by the Commission.

     

    “Effectiveness
      Date”
      means
      (a) with respect to the initial Registration Statement required to be filed
      pursuant to Section 2(a), the earlier of: (i) the 150th
      day
      following the Closing Date and (ii) the fifth Trading Day following the date
      on
      which the Company is notified by the Commission that the initial Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments; (b) with respect to any additional Registration Statements required
      to
      be filed pursuant to Section 2(a), the earlier of: (i) the 120th
      day
      following the applicable Filing Date for such additional Registration
      Statement(s) and (ii) the fifth Trading Day following the date on which the
      Company is notified by the Commission that such additional Registration
      Statement(s) will not be reviewed or is no longer subject to further review;
      (c)
      with respect to any additional Registration Statements required to be filed
      solely due to SEC Restrictions, the earlier of: (i) the 120th
      day
      following the applicable Restriction Termination Date and (ii) the fifth Trading
      Day following the date on which the Company is notified by the Commission that
      such Registration Statement will not be reviewed or is no longer subject to
      further review and comments; (d) with respect to a Registration Statement
      required to be filed under Section 2(c), the earlier of: (i) the 60th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock; provided,
      that,
      if the Commission reviews and has written comments to such filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (d)(i) shall
      be the 90th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock, and (ii) the fifth Trading Day following
      the date on which the Company is notified by the Commission that the
      Registration Statement will not be reviewed or is no longer subject to further
      review and comments; and (e) with respect to a Registration Statement required
      to be filed under Section 2(d), the earlier of: (i) the 120th
      day
      following the 2008 Delivery Date; provided,
      that,
      if the Commission reviews and has written comments to such filed Registration
      Statement that would require the filing of a pre-effective amendment thereto
      with the Commission, then the Effectiveness Date under this clause (e)(i) shall
      be the 150th
      day
      following the 2008 Delivery Date, and (ii) the fifth Trading Day following
      the
      date on which the Company is notified by the Commission that the Registration
      Statement will not be reviewed or is no longer subject to further review and
      comments.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Effectiveness
      Period”
      means,
      as to any Registration Statement required to be filed pursuant to this
      Agreement, the period commencing on the Effective Date of such Registration
      Statement and ending on the later to occur of (a) the first anniversary of
      such
      Effective Date, (b) such time as all of the Registrable Securities covered
      by
      such Registration Statement have been publicly sold by the Holders of the
      Registrable Securities included therein, or (c) such time as all of the
      Registrable Securities covered by such Registration Statement may be sold by
      the
      Holders without volume restrictions pursuant to Rule 144 as determined by the
      counsel to the Company pursuant to a written opinion letter to such effect,
      addressed and acceptable to the Company’s transfer agent and the affected
      Holders.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended.

     

    “Filing
      Date” means (a) with respect to the initial Registration Statement
      required to be filed pursuant to Section 2(a), the 45th day following
      the Closing Date; (b) with respect to any additional Registration Statements
      required to be filed pursuant to Section 2(a), the 15th day following
      the Effective Date for the last Registration Statement filed pursuant to this
      Agreement under Section 2(a); (c) with respect to any additional Registration
      Statements required to be filed due to SEC Restrictions, the 15th day
      following the applicable Restriction Termination Date; (d) with respect to
      a
      Registration Statement required to be filed under Section 2(c), the
      30th day following the date on which the Company becomes eligible to
      utilize Form S-3 to register the resale of Common Stock, and (e) with respect
      to
      the Registration Statement required to be filed under Section 2(d), the
      45th day following the 2008 Delivery Date (provided that if the
      Company is then eligible to utilize Form S-3 to register the resale of Common
      Stock, the Filing Date under this clause (e) shall be 30 days following the
      2008
      Delivery Date).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

    “Proceeding”
      means an
      action, claim, suit, investigation or proceeding (including, without limitation,
      an investigation or partial proceeding, such as a deposition), whether commenced
      or threatened.

     

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

     

    “Registrable
      Securities”
      means:
      (i) the Shares, (ii) the 2008 Make Good Shares, as applicable, (iii) any shares
      of Common Stock issuable upon the exercise of warrants issued to the Investors
      (the “Investor
      Warrant Shares”),
      (iv)
      any shares of Common Stock issuable upon the exercise of warrants issued to
      any
      placement agent (the “Placement
      Agent Warrant Shares”
and,
      collectively, with the Investor Warrant Shares, the “Warrant
      Shares”)
      as
      compensation in connection with the financing that is the subject of the
      Purchase Agreement and (v) any securities issued or issuable upon any stock
      split, dividend or other distribution, recapitalization or similar event, or
      any
      price adjustment as a result of such stock splits, reverse stock splits or
      similar events with respect to any of the securities referenced in (i), (ii),
      (iii) or (iv) above.

     

    “Registration
      Statement”
      means
      the initial registration statement required to be filed in accordance with
      Section 2(a) and any additional registration statements required to be filed
      under this Agreement, including in each case the Prospectus, amendments and
      supplements to such registration statements or Prospectus, including pre- and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference or deemed to be incorporated by reference therein.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Restriction
      Termination Date” has the meaning set forth in Section
      2(b).

     

    “Rule
      144”
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

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

     

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

     

    “SEC
      Restrictions” has the meaning set forth in Section 2(b).

     

    “Securities
      Act”
      means
      the Securities Act of 1933, as amended.

     

    “Selling
      Holder Questionnaire”
      means
      the selling security holder notice and questionnaire attached as Annex B
      hereto.

     

    “Shares”
      means
      the shares of Common Stock issued or issuable to the Investors pursuant to
      the
      Purchase Agreement.

     

    2. Registration.

     

    (a) On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of all Registrable
      Securities (other than in the case of the initial Registration Statement to
      be
      filed under this Section 2(a), the 2008 Make Good Shares) not already covered
      by
      an existing and effective Registration Statement for an offering to be made
      on a
      continuous basis pursuant to Rule 415. Each Registration Statement required
      to
      be filed under this Agreement shall be filed on Form S-1 (or on such other
      form
      appropriate for such purpose) and contain (except if otherwise required pursuant
      to written comments received from the Commission upon a review of such
      Registration Statement, other than as to the characterization of any Holder
      as
      an underwriter, which shall not occur unless such characterization is required
      by the Commission or consented to by such Holder, or the Holder has identified
      itself as an underwriter in the Selling Holder Questionnaire) the “Plan of
      Distribution” attached hereto as Annex
      A.
      The
      Company shall cause each Registration Statement required to be filed under
      this
      Agreement to be declared effective under the Securities Act as soon as possible
      but, in any event, no later than its Effectiveness Date, and shall use its
      reasonable best efforts to keep each such Registration Statement continuously
      effective during its entire Effectiveness Period. By 5:00 p.m. (New York City
      time) on the Business Day immediately following the Effective Date of each
      Registration Statement, the Company shall file with the Commission in accordance
      with Rule 424 under the Securities Act the final prospectus to be used in
      connection with sales pursuant to such Registration Statement (whether or not
      such filing is technically required under such Rule). If for any reason other
      than due solely to SEC Restrictions, a Registration Statement is effective
      but
      not all outstanding Registrable Securities are registered for resale pursuant
      thereto, then the Company shall prepare and file by the applicable Filing Date
      an additional Registration Statement to register the resale of all such
      unregistered Registrable Securities for an offering to be made on a continuous
      basis pursuant to Rule 415.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Notwithstanding
      anything to the contrary contained in this Section 2, if the Company receives
      Commission Comments, and following discussions with and responses to the
      Commission in which the Company uses its reasonable best efforts and time to
      cause as many Registrable Securities
      (other than the 2008
      Make Good Shares, unless the 2008
      Delivery Date shall have occurred) for
      as
      many Holders as possible to be included in the Registration Statement filed
      pursuant to Section 2(a) without characterizing any Holder as an underwriter
      unless such characterization is consistent with written information provided
      by
      the Holder in the Selling Holder Questionnaire (and in such regard uses its
      reasonable best efforts to cause the Commission to permit the affected Holders
      or their respective counsel to participate in Commission conversations on such
      issue together with Company Counsel, and timely conveys relevant information
      concerning such issue with the affected Holders or their respective counsel),
      the Company is unable to cause the inclusion of all Registrable Securities,
      then
      the Company may, following not less than three (3) Trading Days prior written
      notice to the Holders (i) remove from the Registration Statement such
      Registrable Securities (the “Cut
      Back Shares”)
      and/or
      (ii) agree to such restrictions and limitations on the registration and resale
      of the Registrable Securities, in each case as the Commission may require in
      order for the Commission to allow such Registration Statement to become
      effective; provided,
      that in
      no event may the Company characterize any Holder as an underwriter unless such
      characterization is required by the Commission or consented to by such Holder,
      or the Holder has identified itself as an underwriter in the Selling Holder
      Questionnaire (collectively, the “SEC
      Restrictions”).
      Unless the SEC Restrictions otherwise require, any cut-back imposed pursuant
      to
      this Section 2(b) shall be allocated among the Registrable Securities of the
      Holders on a pro rata basis. The required Effectiveness Date for such
      Registration Statement will be tolled until such time as the Company is able
      to
      effect the registration of the Cut Back Shares in accordance with any SEC
      Restrictions if such Registrable Securities cannot at such time be resold by
      the
      Holders thereof without volume limitations pursuant to Rule 144 (such date,
      the
“Restriction
      Termination Date”).
      From
      and after the Restriction Termination Date, all provisions of this Section
      2
      shall again be applicable to the Cut Back Shares (which, for avoidance of doubt,
      retain their character as “Registrable Securities”) if such Registrable
      Securities cannot at such time be resold by the Holders thereof without volume
      limitations pursuant to Rule 144 so that the Company will be required to file
      with and cause to be declared effective by the Commission such additional
      Registration Statements in the time frames set forth herein as necessary to
      ultimately cause to be covered by effective Registration Statements all
      Registrable Securities (if such Registrable Securities cannot at such time
      be
      resold by the Holders thereof without volume limitations pursuant to Rule
      144).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Promptly
      following any date on which the Company becomes eligible to use a registration
      statement on Form S-3 to register Registrable Securities for resale, the Company
      shall file a Registration Statement on Form S-3 covering all such Registrable
      Securities permitted to be registered thereon (or a post-effective amendment
      on
      Form S-3 to the then effective Registration Statement) and shall cause such
      Registration Statement to be filed by the Filing Date for such Registration
      Statement and declared effective under the Securities Act as soon as possible
      thereafter, but in any event prior to the Effectiveness Date therefor. Such
      Registration Statement shall contain (except if otherwise required pursuant
      to
      written comments received from the Commission upon a review of such Registration
      Statement, other than as to the characterization of any Holder as an
      underwriter, which shall not occur unless such characterization is consistent
      with written information provided by the Holder in the Selling Holder
      Questionnaire) the “Plan of Distribution” attached hereto as Annex
      A.
      The
      Company shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day
      immediately following the Effective Date of such Registration Statement, the
      Company shall file with the Commission in accordance with Rule 424 under the
      Securities Act the final prospectus to be used in connection with sales pursuant
      to such Registration Statement (whether or not such filing is technically
      required under such Rule).

     

    (d) On
      or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a Registration Statement covering the resale of the 2008 Make Good Shares on
      Form S-3 if the Company is then eligible to utilize such Form (or on such other
      form appropriate for such purpose) and shall cause such Registration Statement
      to be filed by the Filing Date for such Registration Statement and declared
      effective under the Securities Act as soon as possible thereafter, but in any
      event prior to the Effectiveness Date therefor. Such Registration Statement
      shall contain (except if otherwise required pursuant to written comments
      received from the Commission upon a review of such Registration Statement,
      other
      than as to the characterization of any Holder as an underwriter, which shall
      not
      occur without such Holder’s consent) the “Plan of Distribution” attached hereto
      as Annex
      A.
      The
      Company shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period which is applicable to it. By 5:00 p.m. (New York City
      time) on the Business Day immediately following the Effective Date of such
      Registration Statement, the Company shall file with the Commission in accordance
      with Rule 424 under the Securities Act the final prospectus to be used in
      connection with sales pursuant to such Registration Statement (whether or not
      such filing is technically required under such Rule).

     

    (e) [Intentionally
      omitted.]

     

    (f) If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date covering
      the
      Registrable Securities required under this Agreement to be included therein
      (if
      the Company files a Registration Statement without affording the Holders the
      opportunity to review and comment on the same as required by Section 3(a)
      hereof, the Company shall not be deemed to have satisfied this clause (i)),
      or
      (ii) the Company does not respond as promptly as reasonably possible to, and
      in
      no event later than 21 calendar days following receipt of, any comments received
      from the Commission with respect to each Registration Statement and prepare
      and
      file with the Commission such amendments, including pre-effective amendments,
      to
      each Registration Statement and the Prospectus, or (iii) the Company fails
      to
      file with the Commission a request for acceleration of a Registration Statement
      in accordance with Rule 461 of the Securities Act within 10 Trading Days of
      the
      date that the Company is notified by the Commission that such Registration
      Statement will not be “reviewed” or will not be subject to further review, (iv)
      if, after the Effective Date of a Registration Statement, such Registration
      Statement ceases to remain continuously effective as to all Registrable
      Securities covered thereby or the Holders otherwise are not permitted to utilize
      the Prospectus therein to resell such Registrable Securities, for more than
      10
      consecutive calendar days or more than an aggregate of 15 calendar days (which
      need not be consecutive calendar days) during any 12-month period, (v) the
      Effectiveness Date for the Registration Statement required to be filed under
      Section 2(a) above shall occur later than the date that is 150 days after the
      Filing Date, or (vi) the Company shall fail for any reason to satisfy the
      current public information requirement under Rule 144 as to the applicable
      Registrable Securities at a time when there is no effective Registration
      Statement (any such failure or breach being referred to as an “Event,”
      and for
      purposes of clauses (i) - (vi), the date on which such Event occurs, being
      referred to as “Event
      Date”),
      then
      in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      1.0% of the aggregate Investment Amount paid by such Holder for Shares pursuant
      to the Purchase Agreement. The
      parties agree that in no event will the Company be liable for liquidated damages
      under this Agreement in excess of 1.0% of the aggregate Investment Amount of
      the
      Holders in any 30-day period or 10% for all liquidated damages payable under
      this Section 2(f).
      The
      partial liquidated damages pursuant to the terms hereof shall apply on a daily
      pro-rata basis for any portion of a month prior to the cure of an Event (except
      in the case of the first Event Date), and shall cease to accrue (unless earlier
      cured) upon the expiration of the Effectiveness Period.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling
      Holder Questionnaire”).
      The
      Company shall not be required to include the Registrable Securities of a Holder
      in a Registration Statement and shall not be required to pay any liquidated
      or
      other damages under Section 2(f) to any Holder who fails to furnish to the
      Company a fully completed Selling Holder Questionnaire at least two Trading
      Days
      prior to the Filing Date (subject to the requirements set forth in Section
      3(a)).

     

    3. Registration
      Procedures.

     

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

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) Not
      less
      than four Trading Days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, the Company shall
      furnish to each Holder copies of the “Selling Stockholders” section of such
      document, the “Plan of Distribution” and any risk factor contained in such
      document that addresses specifically this transaction or the Selling
      Stockholders, as proposed to be filed, which documents will be subject to the
      review of such Holder. Such documents may be delivered to such Holder via
      electronic mail (i.e., e-mail). The Company shall not file a Registration
      Statement, any Prospectus or any amendments or supplements thereto in which
      the
“Selling Stockholder” section thereof differs from the disclosure received from
      a Holder in its Selling Holder Questionnaire (as amended or supplemented).
      The
      Company shall not file a Registration Statement, any Prospectus or any
      amendments or supplements thereto in which it (i) characterizes any Holder
      as an underwriter, unless such characterization is consistent with written
      information provided by the Holder in the Selling Holder Questionnaire, (ii)
      excludes a particular Holder due to such Holder refusing to be named as an
      underwriter, or (iii) reduces the number of Registrable Securities being
      registered on behalf of a Holder except pursuant to, in the case of subsection
      (iii), the Commission Comments, without, in each case, such Holder’s express
      written authorization, unless such reduction is made pursuant to Section 2(b)
      hereof.

     

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to each Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep such Registration Statement continuously
      effective as to the applicable Registrable Securities for its Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so supplemented
      or
      amended to be filed pursuant to Rule 424; (iii) respond as promptly as
      reasonably possible to any comments received from the Commission with respect
      to
      each Registration Statement or any amendment thereto and, as promptly as
      reasonably possible provide the Holders true and complete copies of all
      correspondence from and to the Commission relating to such Registration
      Statement that would not result in the disclosure to the Holders of material
      and
      non-public information concerning the Company; and (iv) comply in all material
      respects with the provisions of the Securities Act and the Exchange Act with
      respect to the Registration Statement(s) and the disposition of all Registrable
      Securities covered by each Registration Statement.

     

    (c) Notify
      the Holders as promptly as reasonably possible (and, in the case of (i)(A)
      below, not less than three Trading Days prior to such filing and, in the case
      of
      (v) below, not less than three Trading Days prior to the financial statements
      in
      any Registration Statement becoming ineligible for inclusion therein) and (if
      requested by any such Person) confirm such notice in writing no later than
      one
      Trading Day following the day (i)(A) when a Prospectus or any Prospectus
      supplement or post-effective amendment to a Registration Statement is proposed
      to be filed; (B) when the Commission notifies the Company whether there will
      be
      a “review” of such Registration Statement and whenever the Commission comments
      in writing on such Registration Statement (the Company shall provide true and
      complete copies thereof and all written responses thereto to each of the Holders
      that pertain to the Holders as a Selling Stockholder or to the Plan of
      Distribution, but not information which the Company believes would constitute
      material and non-public information); and (C) with respect to each Registration
      Statement or any post-effective amendment, when the same has become effective;
      (ii) of any request by the Commission or any other Federal or state governmental
      authority for amendments or supplements to a Registration Statement or
      Prospectus or for additional information; (iii) of the issuance by the
      Commission of any stop order suspending the effectiveness of a Registration
      Statement covering any or all of the Registrable Securities or the initiation
      of
      any Proceedings for that purpose; (iv) of the receipt by the Company of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and (v) of the occurrence of any event or passage of time that makes
      the financial statements included in a Registration Statement ineligible for
      inclusion therein or any statement made in such Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      such
      Registration Statement, Prospectus or other documents so that, in the case
      of
      such Registration Statement or the Prospectus, as the case may be, it will
      not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    (e) Furnish
      to each Holder, without charge and at the option of the Company in electronic
      format, at least one conformed copy of each Registration Statement and each
      amendment thereto and all exhibits to the extent requested by such Person
      (including those previously furnished) promptly after the filing of such
      documents with the Commission.

     

    (f) Promptly
      deliver to each Holder, without charge, as many copies of each Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request. The Company hereby
      consents to the use of such Prospectus and each amendment or supplement thereto
      by each of the selling Holders in connection with the offering and sale of
      the
      Registrable Securities covered by such Prospectus and any amendment or
      supplement thereto.

     

    (g) Prior
      to
      any public offering of Registrable Securities, register or qualify such
      Registrable Securities for offer and sale under the securities or Blue Sky
      laws
      of all jurisdictions within the United States as any Holder may request, to
      keep
      each such registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period and to do any and all other acts or things
      necessary or advisable to enable the disposition in such jurisdictions of the
      Registrable Securities covered by the Registration Statements; provided,
      however,
      in
      connection with any such registration or qualification, the Company shall not
      be
      required to (i) qualify to do business in any jurisdiction where the Company
      would not otherwise be required to qualify, (ii) subject itself to general
      taxation in any such jurisdiction, (iii) file a general consent to service
      of
      process in any jurisdiction, or (iv) make any change to the Company’s Articles
      of Incorporation or bylaws.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    (i) Upon
      the
      occurrence of any event contemplated by Section 3(c)(v), as promptly as
      reasonably possible, prepare a supplement or amendment, including a
      post-effective amendment, to the affected Registration Statements or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, no Registration Statement nor any Prospectus
      will
      contain an untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not
      misleading.

     

    4. Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with any
      Trading Market on which the Common Stock is then listed for trading, and (B)
      in
      compliance with applicable state securities or Blue Sky laws), (ii) printing
      expenses (including, without limitation, expenses of printing certificates
      for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the Registration Statement), (iii) messenger,
      telephone and delivery expenses, (iv) fees and disbursements of counsel for
      the
      Company, (v) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. In no event shall the Company be
      responsible for any broker or similar commissions incurred by any Holder or,
      except to the extent provided for in the Transaction Documents, any legal fees
      or other cost of the Holders in connection with this Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Indemnification.

     

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, investment advisors,
      partners, members and employees of each of them, each Person who controls any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, reasonable costs of preparation and reasonable
      attorneys’ fees) and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in any Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, except to the extent, but only to the extent, that (1) such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement, such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose) or (2) in the case of an occurrence
      of
      an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
      of an outdated or defective Prospectus after the Company has notified such
      Holder in writing that the Prospectus is outdated or defective and prior to
      the
      receipt by such Holder of an Advice or an amended or supplemented Prospectus,
      but only if and to the extent that following the receipt of the Advice or the
      amended or supplemented Prospectus the misstatement or omission giving rise
      to
      such Loss would have been corrected. The Company shall notify the Holders
      promptly of the institution, threat or assertion of any Proceeding of which
      the
      Company is aware in connection with the transactions contemplated by this
      Agreement.

     

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon: (x) such Holder’s failure to comply timely with the prospectus delivery
      requirements of the Securities Act after receiving written notice from the
      Company that Rule 172 of the Securities Act may not be relied upon, or (y)
      any
      untrue statement of a material fact contained in any Registration Statement,
      any
      Prospectus, or any form of prospectus, or in any amendment or supplement
      thereto, or arising solely out of or based solely upon any omission of a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading to the extent, but only to the extent that, (1) such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement (it being understood that the Holder has approved
      Annex A hereto for this purpose), such Prospectus or such form of Prospectus
      or
      in any amendment or supplement thereto or (2) in the case of an occurrence
      of an
      event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
      of
      an outdated or defective Prospectus after the Company has notified such Holder
      in writing that the Prospectus is outdated or defective and prior to the receipt
      by such Holder of an Advice or an amended or supplemented Prospectus, but only
      if and to the extent that following the receipt of the Advice or the amended
      or
      supplemented Prospectus the misstatement or omission giving rise to such Loss
      would have been corrected. In no event shall the liability of any selling Holder
      hereunder be greater in amount than the dollar amount of the net proceeds
      received by such Holder upon the sale of the Registrable Securities giving
      rise
      to such indemnification obligation.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall have been advised
      by counsel that a conflict of interest is likely to exist if the same counsel
      were to represent such Indemnified Party and the Indemnifying Party (in which
      case, if such Indemnified Party notifies the Indemnifying Party in writing
      that
      it elects to employ separate counsel at the expense of the Indemnifying Party,
      the Indemnifying Party shall not have the right to assume the defense thereof
      and such counsel shall be at the expense of the Indemnifying Party); provided
      that, the Indemnifying Party shall pay for no more than two separate sets of
      counsel for all Indemnified Parties and such legal counsel shall be selected
      by
      Holders of no less than a majority in interest of the then outstanding
      Registrable Securities The Indemnifying Party shall not be liable for any
      settlement of any such Proceeding effected without its written consent, which
      consent shall not be unreasonably withheld. No Indemnifying Party shall, without
      the prior written consent of the Indemnified Party, effect any settlement of
      any
      pending Proceeding in respect of which any Indemnified Party is a party, unless
      such settlement includes an unconditional release of such Indemnified Party
      from
      all liability on claims that are the subject matter of such
      Proceeding.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten Trading Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided, that the Indemnifying Party may require such Indemnified
      Party to undertake to reimburse all such fees and expenses to the extent it
      is
      finally judicially determined that such Indemnified Party is not entitled to
      indemnification hereunder).

     

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

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    6. Miscellaneous.

     

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

     

    (b) No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule
      3.1(v)
      to the
      Purchase Agreement, neither the Company nor any of its security holders (other
      than the Holders in such capacity pursuant hereto) may include securities of
      the
      Company in a Registration Statement other than the Registrable Securities,
      and
      the Company shall not during the Effectiveness Period enter into any agreement
      providing any such right to any of its security holders.

     

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

     

    (d) Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the Registration Statement until such Holder’s
      receipt of the copies of the supplemented Prospectus and/or amended Registration
      Statement or until it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company may provide appropriate stop orders to
      enforce the provisions of this paragraph.

     

    (e) Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen calendar days after receipt of such notice, any such Holder shall so
      request in writing, the Company shall include in such registration statement
      all
      or any part of such Registrable Securities such holder requests to be
      registered, subject to customary underwriter cutbacks applicable to all holders
      of registration rights.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this Section 6(f),
      may
      not be amended, modified or supplemented, and waivers or consents to departures
      from the provisions hereof may not be given, unless the same shall be in writing
      and signed by the Company and the Holders of no less than a majority in interest
      of the then outstanding Registrable Securities. Notwithstanding the foregoing,
      a
      waiver or consent to depart from the provisions hereof with respect to a matter
      that relates exclusively to the rights of certain Holders and that does not
      directly or indirectly affect the rights of other Holders may be given by
      Holders of at least a majority of the Registrable Securities to which such
      waiver or consent relates; provided,
      further
      that no amendment or waiver to any provision of this Agreement relating to
      naming any Holder or requiring the naming of any Holder as an underwriter may
      be
      effected in any manner inconsistent with the written information provided by
      the
      Holder in the Selling Holder Questionnaire. Section 2(a) may not be amended
      or
      waived except by written consent of each Holder affected by such amendment
      or
      waiver.

     

    (g) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via facsimile (provided the sender receives a machine-generated
      confirmation of successful transmission) at the facsimile number specified
      in
      this Section or (ii) electronic mail (i.e., Email) prior to 6:30 p.m. (New
      York
      City time) on a Trading Day, (b) the next Trading Day after the date of
      transmission, if such notice or communication is delivered via facsimile at
      the
      facsimile number specified in this Section or (ii) electronic mail (i.e.,
      Email)on a day that is not a Trading Day or later than 6:30 p.m. (New York
      City
      time) on any Trading Day, (c) the Trading Day following the date of mailing,
      if
      sent by U.S. nationally recognized overnight courier service, or (d) upon actual
      receipt by the party to whom such notice is required to be given. The address
      for such notices and communications shall be as follows:

     

    
      	
              If
                to the Company:

            	
              Yongye
                Biotechnology International, Inc.

            
	 	
              6th
                Floor, Suite 608 Xue Yuan International Tower

            
	 	
              No.
                1 Zhichun Road

            
	 	
              Haidian
                District

            
	 	
              Beijing,
                PRC

            
	 	
              Facsimile:
                : +86 1082311797

            
	 	
              Email:
                wzs@china-yongye.com

            
	 	
              Attn.:
                CEO

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              With
                a copy to:

            	
              Loeb
                & Loeb LLP

            
	 	
              345
                Park Avenue

            
	 	
              New
                York, NY 10154

            
	 	 
	 	
              Facsimile:
                (212) 407-4000

            
	 	
              Email:
                mnussbaum@loeb.com

            
	 	
              Attn.:
                Mitchell S. Nussbaum, Esq.

            
	
              If
                to an Investor: 

               

            	
              To
                the address set forth under such Investor’s name on the signature pages
                hereto.

            
	 	 
	If
              to any other Person who is then the registered
              Holder:

    

    

      To
        the
        address of such Holder as it appears in the stock  transfer
        books of the Company

    

     

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

     

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

     

    (i) Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (j) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement (whether brought against a party hereto or its
      respective Affiliates, employees or agents) will be commenced in the New York
      Courts. Each party hereto hereby irrevocably submits to the exclusive
      jurisdiction of the New York Courts for the adjudication of any dispute
      hereunder or in connection herewith or with any transaction contemplated hereby
      or discussed herein, and hereby irrevocably waives, and agrees not to assert
      in
      any Proceeding, any claim that it is not personally subject to the jurisdiction
      of any New York Court, or that such Proceeding has been commenced in an improper
      or inconvenient forum. Each party hereto hereby irrevocably waives personal
      service of process and consents to process being served in any such Proceeding
      by mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      Proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence a Proceeding to enforce
      any
      provisions of this Agreement, then the prevailing party in such Proceeding
      shall
      be reimbursed by the other party for its attorney’s fees and other costs and
      expenses incurred with the investigation, preparation and prosecution of such
      Proceeding.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (m) Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (n) Independent
      Nature of Investors’ Obligations and Rights.
      The
      obligations of each Investor under this Agreement are several and not joint
      with
      the obligations of each other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      this
      Agreement. Nothing contained herein or in any Transaction Document, and no
      action taken by any Investor pursuant thereto, shall be deemed to constitute
      the
      Investors as a partnership, an association, a joint venture or any other kind
      of
      entity, or create a presumption that the Investors are in any way acting in
      concert or as a group with respect to such obligations or the transactions
      contemplated by this Agreement or any other Transaction Document. Each Investor
      acknowledges that no other Investor will be acting as agent of such Investor
      in
      enforcing its rights under this Agreement. Each Investor shall be entitled
      to
      independently protect and enforce its rights, including without limitation
      the
      rights arising out of this Agreement, and it shall not be necessary for any
      other Investor to be joined as an additional party in any Proceeding for such
      purpose. The Company acknowledges that each of the Investors has been provided
      with the same Registration Rights Agreement for the purpose of closing a
      transaction with multiple Investors and not because it was required or requested
      to do so by any Investor.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    
      	YONGYE
              BIOTECHNOLOGY INTERNATIONAL, INC.
	 
	
              By:

            	
              /s/
                Zishen Wu

            
	 	
              Name:
                Zishen Wu

            
	 	
              Title:
                CEO

            

    

     

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      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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      PAGES OF INVESTORS TO FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

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

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                MARION
                  LYNTON

              
	 	 
	 	
                By:

              	
                /s/
                  Steve Napoli

              
	 	
                Name:

              	
                Steve
                  Napoli

              
	 	
                Title:

              	
                Agent/Advisor

              
	 	
                Investment
                  Amount:

              	
                $43,878.60

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Ardsley
                  Partners

              
	 	
                Street:

              	
                262
                  Harbor Drive, 4th Floor

              
	 	
                City/State/Zip:

              	
                Stamford,
                  CT 06902

              
	 	
                Attention:

              	
                Steve
                  Napoli

              
	 	
                Tel:

              	
                (203)
                  564-4230

              
	 	
                Fax:

              	
                (203)
                  355-0715

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                ARDSLEY
                  PARTNERS FUND II, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Steve Napoli

              
	 	
                Name:

              	
                Steve
                  Napoli

              
	 	
                Title:

              	
                Agent/Advisor

              
	 	
                Investment
                  Amount:

              	
                $1,708,956

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Ardsley
                  Partners

              
	 	
                Street:

              	
                262
                  Harbor Drive, 4th Floor

              
	 	
                City/State/Zip:

              	
                Stamford,
                  CT 06902

              
	 	
                Attention:

              	
                Steve
                  Napoli

              
	 	
                Tel:

              	
                (203)
                  564-4230

              
	 	
                Fax:

              	
                (203)
                  355-0715

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                ARDSLEY
                  OFFSHORE FUND, LTD

              
	 	 
	 	
                By:

              	
                /s/
                  Steve Napoli

              
	 	
                Name:

              	
                Steve
                  Napoli

              
	 	
                Title:

              	
                Agent/Advisor

              
	 	
                Investment
                  Amount:

              	
                $1,108,512

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Ardsley
                  Partners

              
	 	
                Street:

              	
                262
                  Harbor Drive, 4th Floor

              
	 	
                City/State/Zip:

              	
                Stamford,
                  CT 06902

              
	 	
                Attention:

              	
                Steve
                  Napoli

              
	 	
                Tel:

              	
                (203)
                  564-4230

              
	 	
                Fax:

              	
                (203)
                  355-0715

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                ARDSLEY
                  PARTNERS INSTITUTIONAL FUND, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Steve Napoli

              
	 	
                Name:

              	
                Steve
                  Napoli

              
	 	
                Title:

              	
                Agent/Advisor

              
	 	
                Investment
                  Amount:

              	
                $1,139,304

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Ardsley
                  Partners

              
	 	
                Street:

              	
                262
                  Harbor Drive, 4th Floor

              
	 	
                City/State/Zip:

              	
                Stamford,
                  CT 06902

              
	 	
                Attention:

              	
                Steve
                  Napoli

              
	 	
                Tel:

              	
                (203)
                  564-4230

              
	 	
                Fax:

              	
                (203)
                  355-0715

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                SPECIAL
                  SITUATIONS PRIVATE EQUITY FUND, L.P.

              
	 	 
	 	
                By:

              	
                /s/David
                  Greenhouse

              
	 	
                Name:

              	
                David
                  Greenhouse

              
	 	
                Title:

              	
                Managing
                  Director

              
	 	
                Investment
                  Amount:

              	
                $700,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Special
                  Situations Private Equity Fund, L.P.

              
	 	
                Street:

              	
                527
                  Madison Avenue, Suite 2600

              
	 	
                City/State/Zip:

              	
                New
                  York, New York 10022

              
	 	
                Attention:

              	
                Marianne
                  Hicks/David Greenhouse

              
	 	
                Tel:

              	
                (631)
                  725-3779 ext 3

              
	 	
                Fax:

              	
                (631)
                  319-6670

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                SPECIAL
                  SITUATIONS CAYMAN FUND, L.P.

              
	 	 
	 	
                By:

              	
                /s/David
                  Greenhouse

              
	 	
                Name:

              	
                David
                  Greenhouse

              
	 	
                Title:

              	
                Managing
                  Director

              
	 	
                Investment
                  Amount:

              	
                $1,300,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Special
                  Situations Private Equity Fund, L.P.

              
	 	
                Street:

              	
                527
                  Madison Avenue, Suite 2600

              
	 	
                City/State/Zip:

              	
                New
                  York, New York 10022

              
	 	
                Attention:

              	
                Marianne
                  Hicks/David Greenhouse

              
	 	
                Tel:

              	
                (631)
                  725-3779 ext 3

              
	 	
                Fax:

              	
                (631)
                  319-6670

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                JAYHAWK
                  PRIVATE EQUITY FUND, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Michael D. Schmitz

              
	 	
                Name:

              	
                Michael
                  D. Schmitz

              
	 	
                Title:

              	
                CFO
                  of 6P of 6P

              
	 	
                Investment
                  Amount:

              	
                $940,767.34

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Jayhawk
                  Capital

              
	 	
                Street:

              	
                5410
                  West 61st Place, Suite 100

              
	 	
                City/State/Zip:

              	
                Mission,
                  KS 66205

              
	 	
                Attention:

              	
                Michael
                  Schmitz

              
	 	
                Tel:

              	
                (913)
                  642-2611

              
	 	
                Fax:

              	
                (913)
                  642-8661

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                JAYHAWK
                  PRIVATE EQUITY CO-INVEST FUND, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Michael D. Schmitz

              
	 	
                Name:

              	
                Michael
                  D. Schmitz

              
	 	
                Title:

              	
                CFO
                  of 6P of 6P

              
	 	
                Investment
                  Amount:

              	
                $59,232.66

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Jayhawk
                  Capital

              
	 	
                Street:

              	
                5410
                  West 61st Place, Suite 100

              
	 	
                City/State/Zip:

              	
                Mission,
                  KS 66205

              
	 	
                Attention:

              	
                Michael
                  Schmitz

              
	 	
                Tel:

              	
                (913)
                  642-2611

              
	 	
                Fax:

              	
                (913)
                  642-8661

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                BTG
                  INVESTMENTS, LLC

              
	 	 
	 	
                By:

              	
                /s/Gordon
                  J. Roth

              
	 	
                Name:

              	
                Gordon
                  J. Roth

              
	 	
                Title:

              	
                Manager

              
	 	
                Investment
                  Amount:

              	
                $725,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                BTG
                  Investments, LLC

              
	 	
                Street:

              	
                24
                  Corporate Plaza

              
	 	
                City/State/Zip:

              	
                New
                  port Beach, CA 92660

              
	 	
                Attention:

              	
                Gordon
                  J. Roth

              
	 	
                Tel:

              	 
	 	
                Fax:

              	 
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                MIDSOUTH
                  INVESTOR FUND LP

              
	 	 
	 	
                By:

              	
                /s/
                  Lyman O. Heidtke

              
	 	
                Name:

              	
                Lyman
                  O. Heidtke

              
	 	
                Title:

              	
                General
                  Partner

              
	 	
                Investment
                  Amount:

              	
                $250,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Lyman
                  O. Heidtke

              
	 	
                Street:

              	
                201
                  4th
                  Avenue, North Suit 1950

              
	 	
                City/State/Zip:

              	
                Nashville,
                  TN 37219

              
	 	
                Attention:

              	
                Lyman
                  O. Heidtke

              
	 	
                Tel:

              	 
	 	
                Fax:

              	
                (615)
                  254-1603

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                STRAUS
                  PARTNERS, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Andrew Marks

              
	 	
                Name:

              	
                Andrew
                  Marks

              
	 	
                Title:

              	
                CFO

              
	 	
                Investment
                  Amount:

              	
                $300,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Straus
                  Asset Management

              
	 	
                Street:

              	
                320
                  Park Avenue, 10th Floor

              
	 	
                City/State/Zip:

              	
                New
                  York, NY 10022

              
	 	
                Attention:

              	
                Andrew
                  Marks

              
	 	
                Tel:

              	
                (212)
                  415-7274

              
	 	
                Fax:

              	
                (212)
                  415-7256

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                STRAUS-GEPT
                  PARTNERS, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Andrew Marks

              
	 	
                Name:

              	
                Andrew
                  Marks

              
	 	
                Title:

              	
                CFO

              
	 	
                Investment
                  Amount:

              	
                $200,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Straus
                  Asset Management

              
	 	
                Street:

              	
                320
                  Park Avenue, 10th Floor

              
	 	
                City/State/Zip:

              	
                New
                  York, NY 10022

              
	 	
                Attention:

              	
                Andrew
                  Marks

              
	 	
                Tel:

              	
                (212)
                  415-7274

              
	 	
                Fax:

              	
                (212)
                  415-7256

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                ANDREW
                  PARK

              
	 	 
	 	
                By:

              	
                /s/
                  Andrew Park

              
	 	
                Name:

              	
                Andrew
                  Park

              
	 	
                Title:

              	 
	 	
                Investment
                  Amount:

              	
                $75,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Spyglass
                  Capital Partners, LLC

              
	 	
                Street:

              	
                201
                  Post Street, 11th Floor

              
	 	
                City/State/Zip:

              	
                San
                  Francisco, CA 94108

              
	 	
                Attention:

              	
                Andrew
                  Park

              
	 	
                Tel:

              	
                (415)
                  394-3409

              
	 	
                Fax:

              	
                (415)
                  946-3555

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                BAI
                  YE FENG

              
	 	 
	 	
                By:

              	
                /s/
                  Bai Ye Feng

              
	 	
                Name:

              	
                Bai
                  Ye Feng

              
	 	
                Title:

              	 
	 	
                Investment
                  Amount:

              	
                $450,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	
                86
                  Wellington Street

              
	 	
                City/State/Zip:

              	
                Central
                  Hong Kong

              
	 	
                Attention:

              	
                Bai
                  Ye Feng

              
	 	
                Tel:

              	
                +
                  852-975-81851

              
	 	
                Fax:

              	
                +
                  852-301-58525

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                RICHARD
                  D. SQUIRES

              
	 	 
	 	
                By:

              	
                /s/
                  Richard D. Squires

              
	 	
                Name:

              	
                Richard
                  D. Squires

              
	 	
                Title:

              	 
	 	
                Investment
                  Amount:

              	
                $100,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	
                100
                  Crescent Court, Suite 450

              
	 	
                City/State/Zip:

              	
                Dallas,
                  TX 75201

              
	 	
                Attention:

              	
                Richard
                  D. squires

              
	 	
                Tel:

              	
                (214)
                  270-2150

              
	 	
                Fax:

              	
                (214)
                  468-8870

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                COOPER
                  FAMILY TRUST DTD 08/01/04

              
	 	 
	 	
                By:

              	
                /s/
                  Chad Cooper

              
	 	
                Name:

              	
                Chad
                  Cooper

              
	 	
                Title:

              	
                Co-Trustee

              
	 	
                Investment
                  Amount:

              	
                $25,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Roth
                  Capital Partners

              
	 	
                Street:

              	
                24
                  Corporate Plaza

              
	 	
                City/State/Zip:

              	
                New
                  Port Beach, CA 92660

              
	 	
                Attention:

              	
                Chad
                  Cooper

              
	 	
                Tel:

              	
                (949)
                  533-5380

              
	 	
                Fax:

              	 
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                CHESTNUT
                  RIDGE PARTNERS, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Kenneth Holz

              
	 	
                Name:

              	
                Kenneth
                  Holz

              
	 	
                Title:

              	
                CFO

              
	 	
                Investment
                  Amount:

              	
                $275,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                Chestnut
                  Ridge, LP

              
	 	
                Street:

              	
                50
                  Tice Boulevard

              
	 	
                City/State/Zip:

              	
                Woodcliff
                  Lake, NJ 07677

              
	 	
                Attention:

              	
                Kenneth
                  Holtz

              
	 	
                Tel:

              	
                (201)
                  802-9494

              
	 	
                Fax:

              	
                (201)
                  802-9450

              
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                CORONADO
                  CAPITAL PARTNERS, LP

              
	 	 
	 	
                By:

              	
                /s/
                  Zach Easton

              
	 	
                Name:

              	
                Zach
                  Easton

              
	 	
                Title:

              	
                President

              
	 	
                Investment
                  Amount:

              	
                $250,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                MS
                  Howells

              
	 	
                Street:

              	
                20555
                  North Pima Road, #100

              
	 	
                City/State/Zip:

              	
                Scottsdale,
                  AZ 85255

              
	 	
                Attention:

              	
                Zach
                  Easton

              
	 	
                Tel:

              	 
	 	
                Fax:

              	 
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                SEI
                  PRIVATE TRUST Co FAO

              
	 	
                The
                  JM SMUCKER CO MASTER TRUST

              
	 	 	 
	 	
                By:

              	
                /s/
                  Zach Easton

              
	 	
                Name:

              	
                Zach
                  Easton

              
	 	
                Title:

              	
                President,
                  Coronado Capital Management

              
	 	
                Investment
                  Amount:

              	
                $250,000

              
	 	 	 
	 	
                ADDRESS
                  FOR NOTICE

              
	 	 
	 	
                c/o:

              	
                SPTC
                  Specialized Trust Admin Services

              
	 	
                Street:

              	
                1
                  Freedom Valley Drive

              
	 	
                City/State/Zip:

              	
                Oaks,
                  PA 19456

              
	 	
                Attention:

              	
                Suzanne
                  Rokosny

              
	 	
                Tel:

              	 
	 	
                Fax:

              	 
	 	 	 
	 	
                DELIVERY
                  INSTRUCTIONS

              
	 	
                (if
                  different from above)

              
	 	 
	 	
                c/o:

              	 
	 	
                Street:

              	 
	 	
                City/State/Zip:

              	 
	 	
                Attention:

              	 
	 	
                Tel:

              	 
	 	
                Fax:

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Annex
      A

     

    Plan
      of
      Distribution

     

    The
      Selling Stockholders and any of their pledgees, donees, transferees, assignees
      and successors-in-interest may, from time to time, sell any or all of their
      shares of Common Stock on any stock exchange, market or trading facility on
      which the shares are traded or quoted or in private transactions. These sales
      may be at fixed or negotiated prices. The Selling Stockholders may use any
      one
      or more of the following methods when selling shares:

     

    
      	
              ཉ

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

            

    

     

    
      	
              ཉ

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

            

    

     

    
      	
              ཉ

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

            

    

     

    
      	
              ཉ

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

            

    

     

    
      	
              ཉ

            	
              privately
                negotiated transactions;

            

    

     

    
      	
              ཉ

            	
              to
                cover short sales made after the date that this Registration Statement
                is
                declared effective by the
                Commission;

            

    

     

    
      	
              ཉ

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

            

    

     

    
      	
              ཉ

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

            

    

     

    
      	
              ཉ

            	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	
              ཉ

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. The
      Selling Stockholders do not expect these commissions and discounts to exceed
      what is customary in the types of transactions involved.

     

    The
      Selling Stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of Common Stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

     

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, a supplement to
      this
      prospectus will be filed, if required, pursuant to Rule 424(b) under the
      Securities Act, disclosing (i) the name of each such Selling Stockholder and
      of
      the participating broker-dealer(s), (ii) the number of shares involved, (iii)
      the price at which such the shares of Common Stock were sold, (iv)the
      commissions paid or discounts or concessions allowed to such broker-dealer(s),
      where applicable, (v) that such broker-dealer(s) did not conduct any
      investigation to verify the information set out or incorporated by reference
      in
      this prospectus, and (vi) other facts material to the transaction. In addition,
      upon the Company being notified in writing by a Selling Stockholder that a
      donee
      or pledgee intends to sell more than 500 shares of Common Stock, a supplement
      to
      this prospectus will be filed if then required in accordance with applicable
      securities law.

     

    The
      Selling Stockholders also may transfer the shares of Common Stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of
      Securities will be paid by the Selling Stockholder and/or the purchasers. Each
      Selling Stockholder has represented and warranted to the Company that it
      acquired the securities subject to this Registration Statement in the ordinary
      course of such Selling Stockholder’s business and, at the time of its purchase
      of such securities such Selling Stockholder had no agreements or understandings,
      directly or indirectly, with any person to distribute any such
      securities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company has advised each Selling Stockholder that it may not use shares
      registered on this Registration Statement to cover short sales of Common Stock
      made prior to the date on which this Registration Statement shall have been
      declared effective by the Commission. If a Selling Stockholder uses this
      prospectus for any sale of the Common Stock, it will be subject to the
      prospectus delivery requirements of the Securities Act. The Selling Stockholders
      will be responsible to comply with the applicable provisions of the Securities
      Act and Exchange Act, and the rules and regulations thereunder promulgated,
      including, without limitation, Regulation M, as applicable to such Selling
      Stockholders in connection with resales of their respective shares under this
      Registration Statement.

     

    The
      Company is required to pay all fees and expenses incident to the registration
      of
      the shares, but the Company will not receive any proceeds from the sale of
      the
      Common Stock. The Company has agreed to indemnify the Selling Stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the Securities Act.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Annex
      B

     

    YONGYE
      BIOTECHNOLOGY INTERNATIONAL, INC.

     

    Selling
      Securityholder Notice and Questionnaire

     

    THE
      UNDERSIGNED BENEFICIAL OWNER OF COMMON STOCK (THE “COMMON
      STOCK”),
      OF
      YONGYE BIOTECHNOLOGY INTERNATIONAL, INC., A NEVADA CORPORATION (THE “COMPANY”),
      UNDERSTANDS THAT THE COMPANY HAS FILED OR INTENDS TO FILE WITH THE SECURITIES
      AND EXCHANGE COMMISSION (THE “COMMISSION”)
      A
      REGISTRATION STATEMENT FOR THE REGISTRATION AND RESALE OF THE REGISTRABLE
      SECURITIES, IN ACCORDANCE WITH THE TERMS OF THE REGISTRATION RIGHTS AGREEMENT,
      DATED AS OF APRIL __, 2008 (THE “REGISTRATION
      RIGHTS AGREEMENT”),
      AMONG
      THE COMPANY AND THE INVESTORS NAMED THEREIN. A COPY OF THE REGISTRATION RIGHTS
      AGREEMENT IS AVAILABLE FROM THE COMPANY UPON REQUEST AT THE ADDRESS SET FORTH
      BELOW. ALL CAPITALIZED TERMS USED AND NOT OTHERWISE DEFINED HEREIN SHALL HAVE
      THE MEANINGS ASCRIBED THERETO IN THE REGISTRATION RIGHTS AGREEMENT.

     

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

     

    QUESTIONNAIRE

     

    
      	1.	
              Name.

            

    

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	 
	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

     

    
      	 
	 

    

    

    
      	 	
              (c)

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

            

    

     

    
      	 
	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      2.Address
        for Notices to Selling Securityholder:

    

     

    
      	 
	 
	 
	
              Telephone:

            
	
              Fax:

            
	
              Contact
                Person:

            

    

    

    
      3.Beneficial
        Ownership of Registrable Securities:

    

     

    Type
      and
      Principal Amount of Registrable Securities beneficially owned:

     

    
      	
               

            
	 
	 

    

    

    
      4.Broker-Dealer
        Status:

    

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
མ
       No
      མ

     

    
      	 	
              Note:

            	
              If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (b)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes
མ
       No
      མ

     

    
      	 	
              (c)

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

            

    

     

    Yes
མ
       No
      མ

     

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      5.Beneficial
        Ownership of Other Securities of the Company Owned by the Selling
        Securityholder.

    

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Type
      and
      Amount of Other Securities beneficially owned by the Selling
      Securityholder:

     

    
      	 
	 
	 

    

    

    6.
      Relationships with the Company:

     

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

     

    State
      any
      exceptions here:

     

    
      	 
	 
	 

    

    

    7.
      The
      Company has advised each Selling Stockholder that it may not use shares
      registered on the Registration Statement to cover short sales of Common Stock
      made prior to the date on which the Registration Statement is declared effective
      by the Commission, in accordance with 1997 Securities and Exchange Commission
      Manual of Publicly Available Telephone Interpretations Section A.65. If a
      Selling Stockholder uses the prospectus for any sale of the Common Stock, it
      will be subject to the prospectus delivery requirements of the Securities Act.
      The Selling Stockholders will be responsible to comply with the applicable
      provisions of the Securities Act and Exchange Act, and the rules and regulations
      thereunder promulgated, including, without limitation, Regulation M, as
      applicable to such Selling Stockholders in connection with resales of their
      respective shares under the Registration Statement.

     

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      and prior to the Effective Date for the Registration Statement.

     

    Certain
      legal consequences arise from being named as a Selling Securityholder in the
      Registration Statement and related prospectus. Accordingly, the undersigned
      is
      advised to consult their own securities law counsel regarding the consequence
      of
      being named or not being named as a Selling Securityholder in the Registration
      Statement and the related prospectus.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus. The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus. The undersigned hereby elects to include the
      Registrable Securities owned by it and listed above in Item 3 (unless otherwise
      specified in Item 3) in the Registration Statement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    [SIGNATURE
      PAGE TO FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    Dated:
        

     

    By:

    Name:

    Title:

     

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:EXHIBIT
        10.1

       

    

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of April 17, 2008, by and among Yongye Biotechnology International,
      Inc., a Nevada corporation (the “Company”),
      Fullmax Pacific Limited, an international business company incorporated in
      the
      British Virgin Islands (“BVI”),
      Inner
      Mongolia Yongye Nong Feng Biotechnology Co., Ltd., a cooperative joint venture
      organized under the laws of the People’s Republic of China (“CJV”),
      and
      the investors listed on the Schedule of Investors attached hereto as
Appendix
      A
      (each,
      an “Investor”
and
      collectively, the “Investors”).

     

    WHEREAS,
      on the date hereof, the Company entered into a Share Exchange Agreement, which
      will be filed with the Company’s Current Report on Form 8-K under the Exchange
      Act (as defined below) (the “Exchange
      Agreement”)
      as an
      exhibit (a draft of which Form 8-K (the “Super
      8-K”)
      is
      attached hereto as Appendix
      B),
      with
      BVI and the Company, and the shareholder of BVI, pursuant to which the Company
      will, subject to the terms and conditions thereof, acquire all of the equity
      interest of BVI and, indirectly, all of BVI’s subsidiaries, in exchange for at
      least 84.7% of the total outstanding shares of Common Stock (hereinafter
      defined) on a fully diluted basis as of the time of the closing of the exchange
      under the Exchange Agreement and immediately prior to the Closing under this
      Agreement (the “Exchange”).

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      exemptions from registration under the Securities Act (as defined below), the
      Company desires to issue and sell to each Investor, and each Investor, severally
      and not jointly, desires to purchase from the Company, shares of the Company’s
      Common Stock, as more fully described in this Agreement.

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and the Investors agree as
      follows:

     

    ARTICLE
      1.

    DEFINITIONS

     

    1.1 Definitions.
      In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms shall have the meanings indicated in this
      Section 1.1:

     

    “2008
      Annual
      Report” means
      the
      Annual Report of the Company for the fiscal year ending December 31, 2008,
      as
      filed with the Commission on Form 10-K (or such other form appropriate for
      such
      purpose as promulgated by the Commission).

     

    “2008
      Guaranteed ATNI” has
      the
      meaning set forth in Section 4.11.

     

    “2008
      Make Good Shares”
      has
      the
      meaning set forth in Section 4.11.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Action”
as
      to
      any Person, means any action, suit, inquiry, notice of violation, proceeding
      (including any partial proceeding such as a deposition) or investigation pending
      or threatened in writing against or affecting such Person, any of such Person’s
      Subsidiaries or any of such Person’s or such Subsidiaries’ respective
      properties, before or by any court, arbitrator, governmental or administrative
      agency, regulatory authority (federal, state, county, local or foreign), stock
      market, stock exchange or trading facility.

     

    “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.

     

    “After
      Tax Net Income”
shall
      have the meaning set forth in Section 4.11.

     

    “Available
      Undersubscription Amount”
has
      the
      meaning set forth in Section 4.15.

     

    “Basic
      Amount”
has
      the
      meaning set forth in Section 4.15(b).

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which is a federal legal holiday
      or
      a day on which banking institutions in the State of New York or State of Nevada
      are authorized or required by law or other governmental action to
      close.

     

    “Buy-In” has
      the
      meaning set forth in Section 4.1(c).

     

    “BVI”
has
      the
      meaning set forth in the recitals to this Agreement.

     

    “CJV”
has
      the
      meaning set forth in the recitals to this Agreement.

     

    “CJV
      Founder”
means
      Mr. Zishen Wu.

     

    “Closing”
      means
      the closing of the purchase and sale of the Shares pursuant to Article
      II.

     

    “Closing
      Date”
means
      the Business Day on which all of the conditions set forth in Sections 5.1 and
      5.2 hereof are satisfied, or such other date as the parties may
      agree.

     

    “Closing
      Escrow Agreement”
means
      the Closing Escrow Agreement, dated as of the date hereof, among the Company,
      the CJV, the Placement Agent (defined below), the Investors and the Escrow
      Agent
      (defined below), in the form of Exhibit
      A
      hereto,
      as may be amended from time to time pursuant to Section 6.4 of this
      Agreement.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      the common stock of the Company, par value $0.001 per share, and any securities
      into which such common stock may hereafter be reclassified or for which it
      may
      be exchanged as a class.

     

    “Company” has
      the
      meaning set forth in the recitals to this Agreement.

     

    “Company
      Entities”
means
      the Company, BVI, CJV and all existing Subsidiaries of any such entities and
      any
      other entities which hereafter become Subsidiaries of any such
      entities.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Common
      Stock Equivalents”
means
      any securities of the Company or any Subsidiary which entitle the holder thereof
      to acquire Common Stock at any time, including without limitation, any debt,
      preferred stock, rights, options, warrants or other instrument that is at any
      time convertible into or exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock or other securities that entitle the holder
      to
      receive, directly or indirectly, Common Stock.

     

    “Company
      U.S. Counsel”
means
      Loeb & Loeb LLP, having an address at 345 Park Avenue, New York, NY 10154,
      Attention: Mitchell S. Nussbaum, Esq., with a Fax No. of (212)
      407-4990.

     

    “Company
      Deliverables”
has
      the
      meaning set forth in Section 2.2(a).

     

    “Disclosure
      Materials”
has
      the
      meaning set forth in Section 3.1(h).

     

    “Effective
      Date”
means
      the date that the Registration Statement required by Section 2(a) of the
      Registration Rights Agreement is first declared effective by the
      Commission.

     

    “Escrow
      Agent”
means
      Tri-State Title & Escrow, LLC with an address at 360 Main Street,
      Washington, VA 22747.

     

    “Evaluation
      Date” has
      the
      meaning set forth in Section 3.1(s).

     

    “Exchange”
has
      the
      meaning set forth in the recitals to this Agreement.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Exchange
      Agreement”
has
      the
      meaning set forth in the recitals to this Agreement.

     

    “Existing
      Company Entities”
means
      the Company, BVI, CJV and their respective Subsidiaries.

     

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

     

    “Initial
      Financing”
shall
      mean the issuance, after the date hereof and within 120 days after the date
      hereof, of Common Stock or convertible debt securities to not more than five
      accredited investors (with any such investors as shall be affiliated being
      considered as one such investor) for an aggregate consideration to the Company
      in an amount not to exceed $10 million, provided that such accredited investors
      shall meet the definition thereof contained in Rule 501(a)(1), (2), (3) or
      (7)
      under the Securities Act.

     

    “Intellectual
      Property Rights”
has
      the
      meaning set forth in Section 3.1(p).

     

    “Intellectual
      Property Rights Licensing Agreements”
has
      the
      meaning set forth in Section 3.1(p).

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Investment
      Amount”
means,
      with respect to each Investor, the Investment Amount indicated on such
      Investor’s signature page to this Agreement, which is also reflected on the
      Schedule of Investors attached hereto as Appendix
      A.

     

    “Investor
      Deliverables”
has
      the
      meaning set forth in Section 2.2(b).

     

    “Investor
      Party”
has
      the
      meaning set forth in Section 4.7.

     

    “Investor
      Warrants”
shall
      mean the warrant certificates in the form of Exhibit
      B-1,
      attached hereto and made a part hereof, respecting the holders’ rights to
      purchase 1,623,905 shares of Common Stock in the aggregate, at a price per
      share
      of $1.848.

     

    “Lien”
means
      any lien, charge, encumbrance, security interest, right of first refusal, right
      of participation or other restrictions of any kind.

     

    “Lockup
      Agreement”
means
      the Lockup Agreement, dated as of the date hereof, by and between the Company
      and each person listed as a signatory thereto, in the form attached as
Exhibit
      E
      hereto.

     

    “Losses”
has
      the
      meaning set forth in Section 4.7.

     

    “Make
      Good Escrow Agreement” means
      the
      Make Good Escrow Agreement, dated as of the date hereof, among the Company,
      Tri-State
      Title & Escrow, LLC,
      as
      escrow agent (the “Make
      Good Escrow Agent”),
      the
      Make Good Pledgor (defined below) and the Investors, in the form of Exhibit
      C
      hereto,
      as may be amended from time to time pursuant to Section 6.4 of this
      Agreement.

     

    “Make
      Good Pledgor” means,
      Full Alliance International Limited, an international business company
      incorporated under the laws of the British Virgin Islands, as to 2,000,000
      shares of the Company’s Common Stock issued to the Make Good Pledgor,
      constituting the 2008 Make Good Shares.

     

    “Material
      Adverse Effect”
means
      any of (i) a material and adverse effect on the legality, validity or
      enforceability of any Transaction Document, (ii) a material and adverse effect
      on the results of operations, assets, properties, prospects, business or
      condition (financial or otherwise) of the Company and the Subsidiaries, taken
      as
      a whole, or (iii) a material and adverse impairment to the Company’s ability to
      perform on a timely basis its obligations under any Transaction Document, or
      the
      Exchange Agreement.

     

    “Money
      Laundering Laws”
has
      the
      meaning set forth in Section 3.1(ff).

     

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

     

    “Notice” has
      the
      meaning set forth in Section 4.13.

     

    “Notice
      of Acceptance”
has
      the
      meaning set forth in Section 4.15.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Offer”
has
      the
      meaning set forth in Section 4.15.

     

    “Offer
      Notice”
has
      the
      meaning set forth in Section 4.15.

     

    “Offer
      Period”
has
      the
      meaning set forth in Section 4.15.

     

    “Offered
      Securities”
has
      the
      meaning set forth in Section 4.15.

     

    “OFAC”
has
      the
      meaning set forth in Section 3.1(ee).

     

    “Outside
      Date”
means
      the fifteenth calendar day (if such calendar day is a Trading Day and if not,
      then the first Trading Day following such fifteenth calendar day) following
      the
      date of this Agreement.

     

    “Per
      Share Purchase Price”
equals
      $1.5396.

     

    “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.

     

    “Placement
      Agent Warrant”
shall
      mean the warrant certificate issued to ROTH Capital Partners, LLC in the form
      of
Exhibit
      B-2,
      attached hereto and made a part hereof, representing the warrant holder’s right
      to purchase 649,562 shares of Common Stock at a price per share of
      $1.848.

     

    “PRC”
means,
      for the purpose of this Agreement, the People’s Republic of China, not including
      Taiwan, Hong Kong and Macau.

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or, to the knowledge of the Company, threatened.

     

    “Refused
      Securities”
has
      the
      meaning set forth in Section 4.15.

     

    “Registrable
      Securities”
shall
      mean, collectively, the Shares, the Make Good Shares and the Warrant
      Shares.

     

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated as of the date hereof, among the
      Company and the Investors, in the form of Exhibit
      D
      hereto.

     

    “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Investors of the
      Shares.

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    “SEC
      Reports”
has
      the
      meaning set forth in Section 3.1(h).

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Securities”
has
      the
      meaning set forth in Section 4.1(c).

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Share
      Delivery Date”
has
      the
      meaning set forth in Section 4.1(c).

     

    “Shares”
means
      the 6,495,619 shares of Common Stock being issued and sold to the Investors
      by
      the Company hereunder.

     

    “Short
      Sales”
      include, without limitation, all “short sales” as defined in Rule 200
      promulgated under Regulation SHO under the Exchange Act and all types of direct
      and indirect stock pledges, forward sale contracts, options, puts, calls, swaps
      and similar arrangements (including on a total return basis), and sales and
      other transactions through non-US broker dealers or foreign regulated
      brokers.

     

    “Subsequent
      Placement”
has
      the
      meaning set forth in Section 4.15.

     

    “Subsequent
      Placement Agreement”
has
      the
      meaning set forth in Section 4.15.

     

    “Subsidiary”
of
      any
      Person means any “subsidiary” as defined in Rule 1-02(x) of the Regulation S-X
      promulgated by the Commission under the Exchange Act of such Person.
      Notwithstanding anything to the contrary set forth in any Transaction Document,
      BVI, CJV and their respective subsidiaries are each considered a Subsidiary
      of
      the Company.

     

    “Trading
      Day”
means
      (i) a day on which the Common Stock is traded on a Trading Market or (ii) if
      the
      Common Stock is not listed or quoted on any Trading Market, a day on which
      the
      Common Stock is quoted in the over–the–counter market as reported by the Pink
      Sheets LLC (or any similar organization or agency succeeding to its functions
      of
      reporting prices); provided, that in the event that the Common Stock is not
      listed or quoted as set forth in (i) or (ii) hereof, then Trading Day shall
      mean
      a Business Day.

     

    “Trading
      Market”
means
      whichever of the New York Stock Exchange, the American Stock Exchange, the
      NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
      or OTC Bulletin Board on which the Common Stock is listed or quoted for trading
      on the date in question.

     

    “Transaction
      Documents”
means
      this Agreement, the Registration Rights Agreement, the Closing Escrow Agreement,
      the Make Good Escrow Agreement, the Lockup Agreement and any other documents
      or
      agreements executed in connection with the transactions contemplated
      hereunder.

     

    “Transfer
      Agent”
means
      Empire Stock Transfer Inc., the current transfer agent of the Company with
      a
      mailing address of 2470 Saint Rose Parkway, Suite 304, Henderson, NV 89074
      and a
      facsimile number of (702) 974-1444, and any successor transfer agent of the
      Company.

     

    “Trigger
      Date”
has
      the
      meaning set forth in Section 4.15.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Undersubscription
      Amount”
has
      the
      meaning set forth in Section 4.15.

     

    “Warrant
      Shares”
shall
      mean, collectively, the Common Stock to be issued under the Investor Warrants
      together with the Common Stock to be issued under the Placement Agent
      Warrant.

     

    ARTICLE
      2.

    PURCHASE
      AND SALE

     

    2.1 Closing.
      Subject
      to the terms and conditions set forth in this Agreement, at the Closing the
      Company shall issue and sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company, the Shares representing
      such Investor’s Investment Amount, calculated as the quotient of such Investor’s
      Investment Amount divided by the Per Share Purchase Price. The Closing shall
      take place at the offices of Loeb & Loeb LLP on the Closing Date or at such
      other location or time as the parties may agree.

     

    2.2 Closing
      Deliveries.
      (a)
      At the
      Closing, the Company shall deliver or cause to be delivered to each Investor
      the
      following (the “Company
      Deliverables”):

     

    (i) a
      single
      certificate, dated the Closing Date, issued to each Investor, respectively,
      representing that number of aggregate Shares to be issued and sold at Closing
      to
      such Investor, determined under Section 2.1, registered in the name of such
      Investor;

     

    (ii) an
      Investor Warrant, dated the Closing Date, issued to each Investor, respectively,
      representing the Investor’s right to purchase its pro rata portion of 1,623,905
      aggregate Shares at a per Share price of $1.848;

     

    (iii) the
      Placement Agent Warrant, dated the Closing Date;

     

    (iv) the
      legal
      opinion of Company U.S. Counsel, in agreed form, addressed to the Investors;
      and

     

    (v) the
      legal
      opinion of special PRC counsel to CJV , in agreed form, addressed to the
      Investors.

     

    (b) By
      the
      Closing, each Investor shall deliver or cause to be delivered the agreements
      specified in Section 5.2(d), each duly signed by such Investor (collectively,
      the “Investor
      Deliverables”).

     

    (c) Within
      two (2) Trading Days following the date of this Agreement, each Investor shall
      deliver to the Escrow Agent for deposit and disbursement in accordance with
      the
      Closing Escrow Agreement, its Investment Amount, in United States Dollars and
      in
      immediately available funds, by wire transfer to an account designated in
      writing by the Company for such purpose.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      3.

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1 Representations
      and Warranties of the Company.
      The
      Company, BVI and CJV hereby jointly and severally make the following
      representations and warranties to each Investor:

     

    (a) Subsidiaries.
      None of
      the Existing Company Entities have any direct or indirect Subsidiaries other
      than as disclosed in Schedule 3.1(a) hereto. Except as disclosed in Schedule
      3.1(i) hereto, upon the consummation of the Exchange, (i) the Company owns,
      directly or indirectly, all of the capital stock of each other Existing Company
      Entity, and each other Existing Company Entity alone or together with other
      Existing Company Entities owns, directly or indirectly, all of the capital
      stock
      of its respective Subsidiaries, in each case free and clear of any and all
      Liens, and (ii) all the issued and outstanding shares of capital stock of each
      Existing Company Entity and each Subsidiary are validly issued and are fully
      paid, non-assessable and free of preemptive and similar rights.

     

    (b) Organization
      and Qualification.
      Each
      Existing Company Entity, and the Make Good Pledgor, is duly incorporated or
      otherwise organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its incorporation or organization (as applicable), with the
      requisite power and authority to own and use its respective properties and
      assets and to carry on its respective business as currently conducted and as
      to
      be conducted as specified in the Exchange Agreement or otherwise in the Current
      Report on Form 8-K to be filed in accordance with Section 4.5 herein. No
      Existing Company Entity is, and neither is the Make Good Pledgor, in violation
      of any of the provisions of its respective certificate or articles of
      incorporation, bylaws or other organizational or charter documents. Each
      Existing Company Entity, and the Make Good Pledgor, is duly qualified to conduct
      its respective businesses 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, except where the
      failure to be so qualified or in good standing, as the case may be, could not,
      individually or in the aggregate, have or reasonably be expected to result
      in a
      Material Adverse Effect.

     

    (c) Authorization;
      Enforcement.
      Each
      Existing Company Entity which is or is to become party to any Transaction
      Document and the Exchange Agreement, and the Make Good Pledgor, has the
      requisite corporate and other power and authority to enter into and to
      consummate the transactions contemplated by each such Transaction Document
      and
      the Exchange Agreement to which it is a party and otherwise to carry out its
      obligations thereunder. The execution and delivery of the Transaction Documents,
      by each Existing Company Entity, and by the Make Good Pledgor, to be party
      thereto and the consummation by each of them of the transactions contemplated
      thereby have been duly authorized by all necessary action on the part of such
      Existing Company Entity, or the Make Good Pledgor, as the case may be, and
      no
      further action is required by any of them in connection with such authorization.
      Each Transaction Document and the Exchange Agreement has been (or upon delivery
      will have been) duly executed by the Company, each other Existing Company Entity
      and the Make Good Pledgor, required to execute the same and each Subsidiary
      (to
      the extent any of them is a party thereto) and, when delivered in accordance
      with the terms hereof, will constitute the valid and binding obligation of
      the
      Company, such Existing Company Entity, the Make Good Pledgor and such
      Subsidiary, enforceable against the Company, the Existing Company Entity, the
      Make Good Pledgor and the Subsidiary, as the case may be, each 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. The execution
      and delivery of the Exchange Agreement by each party thereto and the
      consummation by each of them of the transactions contemplated thereby have
      been
      duly authorized by all necessary action on the part of each such party thereto,
      and no further action is required by any of them in connection with such
      authorization. The Exchange Agreement has been duly executed by each party
      thereto and will constitute the valid and binding obligation of each party
      thereto enforceable against each party thereto 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.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents and the
      Exchange Agreement by the Company, and each other Existing Company Entity and
      Subsidiary, and the Make Good Pledgor (to the extent a party thereto) and the
      consummation by the Company, and such other Existing Company Entities and
      Subsidiaries, and the Make Good Pledgor, of the transactions contemplated
      thereby do not and will not (i) conflict with or violate any provision of the
      Company’s, such Existing Company Entity’s or any Subsidiary’s or the Make Good
      Pledgor’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 an Existing
      Company Entity or Subsidiary or Make Good Pledgor debt or otherwise) or other
      understanding to which any Existing Company Entity or any Subsidiary, or the
      Make Good Pledgor is a party or by which any property or asset of the Company
      or
      any Subsidiary or the Make Good Pledgor is bound or affected, or (iii) result
      in
      a violation of any law, rule, regulation, order, judgment, injunction, decree
      or
      other restriction of any United States or PRC court or governmental authority
      to
      which the Company or a Subsidiary or the Make Good Pledgor is subject (including
      federal and state securities laws and regulations), or by which any property
      or
      asset of the Company or a Subsidiary or the Make Good Pledgor is bound or
      affected; except in the case of each of clauses (ii) and (iii), such as could
      not, individually or in the aggregate, have or reasonably be expected to result
      in a Material Adverse Effect.

     

    (e) Filings,
      Consents and Approvals.
      No
      Existing Company Entity is, and the Make Good Pledgor is not, required to obtain
      any consent, waiver, authorization or order of, give any notice to, or make
      any
      filing or registration with, any United States or PRC court or other federal,
      state, local or other governmental authority or other Person in connection
      with
      the execution, delivery and performance by the Company, and each Subsidiary,
      and
      the Make Good Pledgor, to the extent such Subsidiary or the Make Good Pledgor,
      as the case may be, is a party thereto, of the Transaction Documents or the
      Exchange Agreement, 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, (v) filings, consents and approvals required by the rules and
      regulations of the applicable Trading Market, (vi) those that have been made
      or
      obtained prior to the date of this Agreement, (vii) registrations, notices
      or
      filings required to be made in order to comply with the currency and exchange
      control requirements imposed by the Chinese government and/or Chinese law,
      if
      any, and (vii) other post closing securities filings or notifications required
      to be made under federal or state securities laws.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (f) Issuance
      of the Shares.
      The
      Shares and the Warrant Shares 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. As of the
      Closing, the Company has reserved from its duly authorized capital stock the
      shares of Common Stock issuable pursuant to this Agreement in order to issue
      the
      Shares and the Warrant Shares.

     

    (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 Schedule
      3.1(g).
      Except
      as specified in Schedule
      3.1(g),
      no
      securities of any Existing Company Entity 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 Schedule
      3.1(g),
      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 or any
      Subsidiary 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 Shares hereunder will not, immediately or with the
      passage of time, obligate the Company or any Subsidiary to issue shares of
      Common Stock or other securities to any Person (other than the Investors) and
      will not result in a right of any holder of Company or Subsidiary securities
      to
      adjust the exercise, conversion, exchange or reset price under such securities.
      Except as set forth in Schedule
      3.1(g),
      no
      Existing Company Entity has issued any capital stock in a private placement
      transaction, including, without limitation, in a transaction commonly referred
      to in the PRC as a “1 1⁄2 transaction.”

     

    (h) 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,
      for the twelve months preceding the date hereof (or such shorter period as
      the
      Company was required by law to file such reports), (the foregoing materials
      being collectively referred to herein as the “SEC
      Reports”
and,
      together with Appendix
      B
      hereto
      and the schedules to this Agreement, the “Disclosure
      Materials”)
      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 and
      each
      Subsidiary 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 and its
      consolidated Subsidiaries 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.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (i) Press
      Releases.
      To the
      knowledge of the Company, the press releases disseminated by the Company during
      the twelve months preceding the date of this Agreement taken as a whole do
      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 and when
      made,
      not misleading.

     

    (j) Material
      Changes.
      Except
      as specifically disclosed in the Disclosure Materials, since December 31, 2007
      (i) there has been no event, occurrence or development that has had or that
      could reasonably be expected to result in a Material Adverse Effect, (ii) no
      Existing Company Entity has 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 in excess of $100,000 in the aggregate not required to be
      reflected in the Company’s or its Subsidiaries’ financial statements pursuant to
      GAAP or required to be disclosed in filings made with the Commission, (iii)
      no
      Existing Company Entity has altered its method of accounting or the identity
      of
      its auditors, (iv) no Existing Company Entity has 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) no Existing Company Entity has issued any equity securities
      to
      any officer, director or Affiliate, except pursuant to existing Company stock
      option plans. The Company does not have pending before the Commission any
      request for confidential treatment of information.

     

    (k) Litigation.
      There
      is no Action which (i) adversely affects or challenges the legality, validity
      or
      enforceability of any of the Transaction Documents or the Shares or (ii) if
      there were an unfavorable decision, individually or in the aggregate, result
      in
      a loss or liability in an amount in excess of $10,000 or have or reasonably
      be
      expected to result in a Material Adverse Effect. No Existing Company Entity,
      nor
      any director or officer thereof (in his or her capacity as such), is or has
      been, and the Make Good Pledgor and none of its directors or officers are or
      have been, the subject of any Action involving a claim of violation of or
      liability under federal or state securities laws or a claim of breach of
      fiduciary duty, except as specifically disclosed in the SEC Reports. There
      has
      not been, and to the knowledge of the Company, there is not pending any
      investigation by the Commission involving any Existing Company Entity or the
      Make Good Pledgor or any of their respective current or former directors or
      officers (in his or her capacity as such). The Commission has not issued any
      stop order or other order suspending the effectiveness of any registration
      statement filed by the Company or any Subsidiary under the Exchange Act or
      the
      Securities Act.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (l) Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of any Existing Company Entity. No Existing
      Company Entity has any employment or labor contracts, agreements or other
      understandings with any Person.

     

    (m) Indebtedness;
      Compliance.
      Except
      as disclosed on Schedule
      3.1(m),
      no
      Existing Company Entity is, and the Make Good Pledgor is not, a party to any
      indenture, debt, capital lease obligations, mortgage, loan or credit agreement
      by which it or any of its properties is bound. No Existing Company Entity is,
      and the Make Good Pledgor is not, (i) in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse of
      time or both, would result in a default by such entity under), nor has any
      Existing Company Entity nor the Make Good Pledgor received notice of a claim
      that it is in default under or that it is in violation of, any indenture, loan
      or credit agreement or any other agreement or instrument to which it is a party
      or by which it or any of its properties is bound (whether or not such default
      or
      violation has been waived), (ii) in violation of any order of any court,
      arbitrator or governmental body, or (iii) in violation of any statute, rule
      or
      regulation of any governmental authority, including without limitation all
      foreign, federal, state and local laws relating to taxes, environmental
      protection, occupational health and safety, product quality and safety and
      employment and labor matters, except in each case as could not, individually
      or
      in the aggregate, have or reasonably be expected to result in a Material Adverse
      Effect. The Exchange Agreement complies with all applicable laws, rules and
      regulations of the United States and the PRC. The Company is in compliance
      with
      all effective requirements of the Sarbanes-Oxley Act of 2002, as amended, and
      the rules and regulations thereunder that are applicable to it, except where
      such noncompliance could not have or reasonably be expected to result in a
      Material Adverse Effect.

     

    (n) Regulatory
      Permits.
      The
      Existing Company Entities possess all certificates, authorizations and permits
      issued by the appropriate federal, state, local or foreign regulatory
      authorities necessary to conduct their respective businesses as described in
      the
      SEC Reports, except where the failure to possess such permits could not,
      individually or in the aggregate, have or reasonably be expected to result
      in a
      Material Adverse Effect, and no Existing Company Entity has received any notice
      of proceedings relating to the revocation or modification of any such
      permits.

     

    (o) Title
      to Assets.
      There
      is no real property that is material to the respective businesses of the
      Existing Company Entities, except as disclosed in the Disclosure Materials.
      The
      Existing Entities have good and marketable title in all personal property owned
      by them that is material to their respective businesses, in each case free
      and
      clear of all Liens, except for Liens as do not materially affect the value
      of
      such property and do not materially interfere with the use made and proposed
      to
      be made of such property by such Existing Company Entity. Any real property
      and
      facilities held under lease by any Existing Company Entity are held by them
      under valid, subsisting and enforceable leases of which such Existing Company
      Entity is in compliance, except as could not, individually or in the aggregate,
      have or reasonably be expected to result in a Material Adverse
      Effect.

    
      
        
        

      

      
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    (p) Patents
      and Trademarks.
      The
      Disclosure Materials have disclosed patents, patent applications, trademarks,
      trademark applications, service marks, trade names, copyrights, licenses and
      other similar rights that the Existing Company Entities own or have the rights
      to use (collectively, the “Intellectual
      Property Rights”).
      The
      Intellectual Property Rights constitute all of the patents, patent applications,
      trademarks, trademark applications, service marks, trade names, copyrights,
      licenses and other similar rights that are necessary and material to the
      business of the Existing Company Entities in connection with their respective
      businesses as described in the Disclosure Materials. No Existing Company Entity
      has received a written notice that the Intellectual Property Rights used by
      any
      of them violates or infringes upon the rights of any Person. Except as otherwise
      disclosed in the Disclosure Materials, to the knowledge of the Existing Company
      Entities, all such Intellectual Property Rights are enforceable and there is
      no
      existing infringement by another Person of any of the Intellectual Property
      Rights. To the knowledge of the Existing Company Entities, no former or current
      employee, no former or current consultant, and no third-party joint developer
      of
      any Existing Company Entity has any Intellectual Property Rights that are
      necessary and material to the business of the Existing Company Entities made,
      developed, conceived, created or written by the aforesaid employee, consultant
      or third-party joint developer during the period of his or her retention by,
      or
      joint venture with, such Existing Company Entity which has been asserted against
      any Existing Company Entity. The Intellectual Property Rights and the owner
      thereof or agreement through which they are licensed to any of the Existing
      Company Entities are set forth in the Disclosure Materials

     

    (q) Insurance.
      Each
      Existing Company Entity is insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are prudent
      and customary in the businesses it is engaged and in the country in which the
      Existing Company Entities operate. The Company has no reason to believe that
      it
      or any Existing Company Entity will not be able to renew its existing respective
      insurance coverage as and when such coverage expires or to obtain similar
      coverage from similar insurers as may be necessary to continue its business
      on
      terms consistent with market for the Company’s and such other Existing Company
      Entity’s respective lines of business.

     

    (r) Transactions
      With Affiliates and Employees; Customers.
      Except
      as set forth in the Disclosure
      Materials,
      none of
      the officers, directors or 5% or more shareholders of any Existing Company
      Entity, and, to the knowledge of the Company, none of the employees of any
      Existing Company Entity, is presently a party to any transaction with any
      Existing Company Entity (other than for services as employees, officers and
      directors), including any contract, agreement or other arrangement providing
      for
      the furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any such Person
      or, to the knowledge of the Company, any entity in which any officer, director,
      or such employee or 5% or more shareholder has a substantial interest or is
      an
      officer, director, trustee or partner. None of the Existing Company Entities
      owes any money or other compensation to any of their respective officers or
      directors or shareholders, except to extent of contracts and ordinary course
      compensation arrangements specified in Schedule
      3.1(r).
      No
      material customer of any Existing Company Entity has indicated their intention
      to diminish their relationship with such Existing Company Entity and no Existing
      Company Entity has any knowledge from which it could reasonably conclude that
      any such customer relationship may be adversely affected.

    
      
        
        

      

      
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    (s) Internal
      Accounting Controls.
      The
      Existing Company Entities maintain a system of internal accounting controls
      sufficient to provide reasonable assurance that (i) transactions are executed
      in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization, and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences. The Company is establishing disclosure
      controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e)) for the Company Entities and designed such disclosure controls and
      procedures to ensure that material information relating to the Company Entities
      is made known to the certifying officers by others within those entities,
      particularly during the period in which the Company’s Form 10-KSB or 10-QSB, as
      the case may be, is being prepared. The Company’s certifying officers have
      evaluated the effectiveness of the Company’s controls and procedures in
      accordance with Item 307 of Regulation S-B under the Exchange Act for the
      Company’s most recently ended fiscal quarter or fiscal year-end (such date, the
“Evaluation
      Date”).
      The
      Company presented in its most recently filed Form 10-KSB or Form 10-QSB the
      conclusions of the certifying officers about the effectiveness of the disclosure
      controls and procedures based on their evaluations as of the Evaluation
      Date.

     

    (t) Solvency.
      Based
      on the financial condition of the Company, including the Existing Company
      Entities, as of the Closing Date (and assuming that the Closing shall have
      occurred), (i) each Existing Company Entity’s assets do not constitute
      unreasonably small capital to carry on their respective business for the current
      fiscal year as now conducted and as proposed to be conducted including its
      capital needs taking into account the particular capital requirements of the
      business conducted by such Existing Company Entity, and projected capital
      requirements and capital availability thereof and (ii) the current cash flow
      of
      such Existing Company Entity, together with the proceeds such Existing Company
      Entities would receive, were they to liquidate all of their respective assets,
      after taking into account all anticipated uses of the cash, would be sufficient
      to pay all amounts on or in respect of its debt when such amounts are required
      to be paid. The Existing Company Entities do not intend to incur debts beyond
      their respective ability to pay such debts as they mature (taking into account
      the timing and amounts of cash to be payable on or in respect of its debt).
      The
      Make Good Pledgor is not insolvent.

     

    (u) Certain
      Fees.
      Except
      as described in Schedule
      3.1(u),
      no
      brokerage or finder’s fees or commissions are or will be payable by any Existing
      Company Entity to any broker, financial advisor or consultant, finder, placement
      agent, investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement. The Investors shall have no obligation with
      respect to any fees or with respect to any claims (other than such fees or
      commissions owed by an Investor pursuant to written agreements executed by
      such
      Investor which fees or commissions shall be the sole responsibility of such
      Investor) made by or on behalf of other Persons for fees of a type contemplated
      in this Section that may be due in connection with the transactions contemplated
      by this Agreement.

     

    (v) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Sections 3.2(b)-(e), no registration under the Securities Act is required
      for
      the offer and sale of the Shares by the Company to the Investors under the
      Transaction Documents. The Company is eligible to register its Common Stock
      for
      resale by the Investors under Form S-1 promulgated under the Securities Act.
      Except as specified in Schedule
      3.1(v),
      no
      Existing Company Entity has granted or agreed to grant to any Person other
      than
      the Investors pursuant to the Registration Rights Agreement any rights
      (including “piggy–back” registration rights) to have any securities of the
      Company registered with the Commission or any other governmental authority
      that
      have not been satisfied.

    
      
        
        

      

      
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    (w) Listing
      and Maintenance Requirements.
      Except
      as specified in the SEC Reports, the Company has not, in the two years preceding
      the date hereof, received notice from any Trading Market to the effect that
      the
      Company is not in compliance with the listing or maintenance requirements
      thereof. The Company is, and has no reason to believe that it will not in the
      foreseeable future continue to be, in compliance with the listing and
      maintenance requirements for continued listing of the Common Stock on the
      Trading Market on which the Common Stock is currently listed or quoted. The
      issuance and sale of the Shares under the Transaction Documents does not
      contravene the rules and regulations of the Trading Market on which the Common
      Stock is currently listed or quoted, and no approval of the stockholders of
      the
      Company thereunder is required for the Company to issue and deliver to the
      Investors the Shares as contemplated by the Transaction Documents.

     

    (x) Investment
      Company.
      The
      Company is not, and is not an Affiliate of, and immediately following the
      Closing will not have become, an “investment company” within the meaning of the
      Investment Company Act of 1940, as amended.

     

    (y) Application
      of Takeover Protections.
      The
      Company has taken all necessary action, if any, in order to render inapplicable
      any control share acquisition, business combination, poison pill (including
      any
      distribution under a rights agreement) or other similar anti–takeover provision
      under the Company’s Certificate of Incorporation (or similar charter documents)
      or the laws of its state of incorporation that is or could become applicable
      to
      the Investors as a result of the Investors and the Company fulfilling their
      obligations or exercising their rights under the Transaction Documents,
      including, without limitation, the Company’s issuance of the Shares and the
      Investors’ ownership of the Shares.

     

    (z) No
      Additional Agreements.
      No
      Existing Company Entity has any agreement or understanding with any Investor
      with respect to the transactions contemplated by the Transaction Documents
      other
      than as specified in the Transaction Documents.

     

    (aa) Consultation
      with Auditors.
      The
      Company has consulted its independent auditors concerning the accounting
      treatment of the transactions contemplated by the Transaction Documents, and
      in
      connection therewith has furnished such auditors complete copies of the
      Transaction Documents.

     

    (bb) Make
      Good Shares.
      The
      Make Good Pledgor is the sole record and beneficial owner of the 2008 Make
      Good
      Shares, and holds such shares free and clear of all Liens.

    
      
        
        

      

      
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    (cc) Foreign
      Corrupt Practices Act.
      No
      Existing Company Entity, nor to the knowledge of the Company, any agent or
      other
      person acting on behalf of any Existing Company Entity, has, directly or
      indirectly, (i) used any funds, or will use any proceeds from the sale of the
      Shares, for unlawful contributions, gifts, entertainment or other unlawful
      expenses related to foreign or domestic political activity, (ii) made any
      unlawful payment to foreign or domestic government officials or employees or
      to
      any foreign or domestic political parties or campaigns from corporate funds,
      (iii) failed to disclose fully any contribution made by the Company or any
      such
      Existing Company Entity (or made by any Person acting on their behalf of which
      the Company is aware) which is in violation of law, or (iv) has violated in
      any
      material respect any provision of the Foreign Corrupt Practices Act of 1977,
      as
      amended, and the rules and regulations thereunder.

     

    (dd) PFIC.
      The
      Company is not, and does not intend to become a “passive foreign investment
      company” within the meaning of Section 1297 of the U.S. Internal Revenue Code of
      1986, as amended.

     

    (ee) OFAC.
      No
      Existing Company Entity nor, to the knowledge of the Company, any director,
      officer, agent, employee, Affiliate or Person acting on behalf of any Existing
      Company Entity, is currently subject to any U.S. sanctions administered by
      the
      Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
      and
      the Company will not directly or indirectly use the proceeds of the sale of
      the
      Shares, or lend, contribute or otherwise make available such proceeds to any
      Subsidiary, joint venture partner or other Person or entity, towards any sales
      or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country
      sanctioned by OFAC or for the purpose of financing the activities of any Person
      currently subject to any U.S. sanctions administered by OFAC.

     

    (ff) Money
      Laundering Laws.
      The
      operations of each Existing Company Entity are and have been conducted at all
      times in compliance with the money laundering statutes of applicable
      jurisdictions, the rules and regulations thereunder and any related or similar
      rules, regulations or guidelines, issued, administered or enforced by any
      applicable governmental agency (collectively, the “Money
      Laundering Laws”)
      and no
      action, suit or proceeding by or before any court or governmental agency,
      authority or body or any arbitrator involving any Existing Company Entity with
      respect to the Money Laundering Laws is pending or, to the best knowledge of
      the
      Company, threatened.

     

    (gg) Other
      Representations and Warranties Relating to CJV.

     

    (i) All
      material consents, approvals, authorizations or licenses requisite under PRC
      law
      for the due and proper establishment and operation of CJV have been duly
      obtained from the relevant PRC governmental authorities and are in full force
      and effect.

     

    (ii) All
      filings and registrations with the PRC governmental authorities required in
      respect of CJV and its capital structure and operations including, without
      limitation, the registration with the Ministry of Commerce, the China Securities
      Regulatory Commission, the State Administration of Industry and or their
      respective local divisions of Commerce, the State Administration of Foreign
      Exchange, tax bureau and customs authorities have been duly completed in
      accordance with the relevant PRC rules and regulations, except where, the
      failure to complete such filings and registrations does not, and would not,
      individually or in the aggregate, have a Material Adverse
      Effect.

    
      
        
        

      

      
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    (iii) CJV
      has
      complied with all relevant PRC laws and regulations regarding the contribution
      and payment of its registered share capital, the payment schedule of which
      has
      been approved by the relevant PRC governmental authorities. There are no
      outstanding commitments made by the Company or any Subsidiary to sell any equity
      interest in CJV.

     

    (iv) CJV
      has
      not received any letter or notice from any relevant PRC governmental authority
      notifying it of revocation of any licenses or qualifications issued to it or
      any
      subsidy granted to it by any PRC governmental authority for non-compliance
      with
      the terms thereof or with applicable PRC laws, or the lack of compliance or
      remedial actions in respect of the activities carried out by CJV, except such
      revocation as does not, and would not, individually or in the aggregate, have
      a
      Material Adverse Effect.

     

    (v) CJV
      has
      conducted its business activities within the permitted scope of business or
      has
      otherwise operated its business in compliance with all relevant legal
      requirements and with all requisite licenses and approvals granted by competent
      PRC governmental authorities other than such non-compliance that do not, and
      would not, individually or in the aggregate, have a Material Adverse Effect.
      As
      to licenses, approvals and government grants and concessions requisite or
      material for the conduct of any material part of CJV’s business which is subject
      to periodic renewal, the Company has no knowledge of any reasons related to
      the
      CJV for which such requisite renewals will not be granted by the relevant PRC
      governmental authorities.

     

    (vi) With
      regard to employment and staff or labor, CJV has complied with all applicable
      PRC laws and regulations in all material respects, including without limitation,
      laws and regulations pertaining to welfare funds, social benefits, medical
      benefits, insurance, retirement benefits, pensions or the like, other than
      such
      non-compliance that do not, and would not, individually or in the aggregate,
      have a Material Adverse Effect.

     

    (vii) All
      agreements to which CVJ is a party, and that are material to the business of
      CJV, are valid, enforceable and free of defaults on the part of all parties
      thereto except for defaults as are of a nonmaterial nature not entitling any
      party to terminate such agreement(s).

     

    (hh) Disclosure.
      Neither
      any Company Entity nor any Person acting on its behalf has provided any Investor
      or its respective agents or counsel with any information that any Company Entity
      believes constitutes material, non-public information concerning the Company,
      the Subsidiaries or their respective businesses, except insofar as the existence
      and terms of the proposed transactions contemplated hereunder may constitute
      such information. The Company understands and confirms that the Investors will
      rely on the foregoing representations and covenants in effecting transactions
      in
      securities of the Company. All disclosure provided to the Investors regarding
      the Company Entities and their respective businesses and the transactions
      contemplated hereby, furnished by or on behalf of the Company Entities
      (including their respective representations and warranties set forth in this
      Agreement and the disclosure set forth in any diligence report or business
      plan
      provided by any Company Entity or any Person acting on such Company Entity’s
      behalf) are true and correct and do not contain any untrue statement of a
      material fact or omit to state any material fact necessary in order to make
      the
      statements made therein, in light of the circumstances under which they were
      made, not misleading.

    
      
        
        

      

      
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    3.2. Representations
      and Warranties of the Investors.
      Each
      Investor hereby, for itself and for no other Investor, represents and warrants
      to the Company as follows:

     

    (ii) Organization;
      Authority.
      Such
      Investor is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with the requisite
      corporate or partnership power and authority to enter into and to consummate
      the
      transactions contemplated by the Transaction Documents to which it is a party
      or
      a signatory and otherwise to carry out its obligations thereunder. The
      execution, delivery and performance by such Investor of the transactions
      contemplated by this Agreement has been duly authorized by all necessary
      corporate or, if such Investor is not a corporation, such partnership, limited
      liability company or other applicable like action, on the part of such Investor.
      Each Transaction Document executed by such Investor has been duly executed
      by
      such Investor, and when delivered by such Investor in accordance with the terms
      hereof, will constitute the valid and legally binding obligation of such
      Investor, enforceable against it 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.

     

    (jj) Investment
      Intent.
      Such
      Investor is acquiring the Shares as principal for its own account and not with
      a
      view to or for distributing or reselling such Shares or any part thereof,
      without prejudice, however, to such Investor’s right at all times to sell or
      otherwise dispose of all or any part of such Shares in compliance with
      applicable federal and state securities laws. Subject to the immediately
      preceding sentence, nothing contained herein shall be deemed a representation
      or
      warranty by such Investor to hold the Shares for any period of time. Such
      Investor is acquiring the Shares hereunder in the ordinary course of its
      business. Such Investor does not have any agreement or understanding, directly
      or indirectly, with any Person to distribute any of the Shares.

     

    (kk) Investor
      Status.
      At the
      time such Investor was offered the Shares, it was, and at the date hereof it
      is,
      an “accredited investor” as defined in Rule 501(a) under the Securities Act.
      Such Investor is not a registered broker-dealer under Section 15 of the Exchange
      Act. Such Investor has such experience in business and financial matters that
      it
      is capable of evaluating the merits and risks of an investment in the Shares.
      Such Investor acknowledges that an investment in the Shares is speculative
      and
      involves a high degree of risk.

     

    (ll) General
      Solicitation.
      Such
      Investor is not purchasing the Shares as a result of any advertisement, article,
      notice, meeting, or other communication regarding the Shares published in any
      newspaper, magazine or similar media or broadcast over television or radio
      or
      presented at any seminar or any other general solicitation or general
      advertisement.

    
      
        
        

      

      
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    (mm) Access
      to Information.
      Such
      Investor acknowledges that it has reviewed the Disclosure Materials and has
      been
      afforded (i) the opportunity to ask such questions as it has deemed necessary
      of, and to receive answers from, representatives of the Company concerning
      the
      terms and conditions of the offering of the Shares and the merits and risks
      of
      investing in the Shares; (ii) access to information about the Company and the
      Subsidiaries and their respective financial condition, results of operations,
      business, properties, management and prospects sufficient to enable it to
      evaluate its investment; and (iii) the opportunity to obtain such additional
      information that the Company possesses or can acquire without unreasonable
      effort or expense that is necessary to make an informed investment decision
      with
      respect to the investment. Neither such inquiries nor any other investigation
      conducted by or on behalf of such Investor or its representatives or counsel
      shall modify, amend or affect such Investor’s right to rely on the truth,
      accuracy and completeness of the Disclosure Materials and the Existing Company
      Entities’ representations and warranties contained in the Transaction
      Documents.

     

    (nn) Certain
      Trading Activities.
      Such
      Investor has not directly or indirectly, nor has any Person acting on behalf
      of
      or pursuant to any understanding with such Investor, engaged in any transactions
      in the securities of the Company (including, without limitations, any Short
      Sales involving the Company’s securities) since the earlier to occur of (1) the
      time that such Investor was first contacted by the Company or Roth Capital
      Partners, LLC regarding an investment in the Company and (2) the 30th
      day
      prior to the date of this Agreement. Such Investor covenants that neither it
      nor
      any Person acting on its behalf or pursuant to any understanding with it will
      engage in any transactions in the securities of the Company (including Short
      Sales) prior to the time that the transactions contemplated by this Agreement
      are publicly disclosed.

     

    (oo) Independent
      Investment Decision.
      Such
      Investor has independently evaluated the merits of its decision to purchase
      the
      Shares pursuant to the Transaction Documents, and such Investor confirms that
      it
      has not relied on the advice of any other Investor’s business and/or legal
      counsel in making such decision. Such Investor has not relied on the business
      or
      legal advice of ROTH Capital Partners, LLC or any of its agents, counsel or
      Affiliates in making its investment decision hereunder, and confirms that none
      of such Persons has made any representations or warranties to such Investor
      in
      connection with the transactions contemplated by the Transaction
      Documents.

     

    (pp) Rule 144.
      Such
      Investor understands that the Securities must be held indefinitely unless such
      Securities are registered under the Securities Act or an exemption from
      registration is available. Such Investor acknowledges that it is familiar with
      Rule 144 and that such Investor has been advised that Rule 144 permits
      resales only under certain circumstances. Such Investor understands that to
      the
      extent that Rule 144 is not available, such Investor will be unable to sell
      any Securities without either registration under the Securities Act or the
      existence of another exemption from such registration requirement.

     

    (qq) General.
      Such
      Investor understands that the Securities are being offered and sold in reliance
      on a transactional exemption from the registration requirements of federal
      and
      state securities laws and the Company is relying upon the truth and accuracy
      of
      the representations, warranties, agreements, acknowledgments and understandings
      of such Investor set forth herein in order to determine the applicability of
      such exemptions and the suitability of such Investor to acquire the Securities.
      Such Investor understands that no United States federal or state agency or
      any
      government or governmental agency has passed upon or made any recommendation
      or
      endorsement of the Securities.

    
      
        
        

      

      
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    The
      Existing Company Entities acknowledge and agree that no Investor has made or
      makes any representations or warranties with respect to the transactions
      contemplated hereby other than those specifically set forth in this Section
      3.2.

     

    ARTICLE
      4.

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1. Transferability;
      Certificate.
      (a)
      Shares
      may only be disposed of in compliance with state and federal securities laws.
      In
      connection with any transfer of the Shares other than pursuant to an effective
      registration statement, to the Company, to an Affiliate of an Investor or in
      connection with a pledge as contemplated in Section 4.1(b), the Company may
      require the transferor thereof to provide to the Company an opinion of counsel
      selected by the transferor, the form and substance of which opinion shall be
      reasonably satisfactory to the Company, to the effect that such transfer does
      not require registration of such transferred Shares under the Securities
      Act.

     

    (b) Certificates
      evidencing Securities (as defined in Section 4.1(c)) will contain the following
      legend, until such time as they are not required under Section
      4.1(c):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE
      SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
      IN
      RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
      EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT
      OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO,
      THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
      TO
      THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
      ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
      A
      BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

     

    The
      Company acknowledges and agrees that an Investor may from time to time pledge,
      and/or grant a security interest in some or all of the Securities pursuant
      to a
      bona fide margin agreement in connection with a bona fide margin account and,
      if
      required under the terms of such agreement or account, such Investor may
      transfer pledged or secured Shares to the pledgees or secured parties. Such
      a
      pledge or transfer would not be subject to approval or consent of the Company
      and no legal opinion of legal counsel to the pledgee, secured party or pledgor
      shall be required in connection with the pledge, but such legal opinion may
      be
      required in connection with a subsequent transfer following default by the
      Investor transferee of the pledge. No notice shall be required of such pledge.
      At the appropriate Investor’s expense, the Company will execute and deliver such
      reasonable documentation as a pledgee or secured party of Securities may
      reasonably request in connection with a pledge or transfer thereof including
      the
      preparation and filing of any required prospectus supplement under Rule
      424(b)(3) of the Securities Act or other applicable provision of the Securities
      Act to appropriately amend the list of selling stockholders thereunder. Except
      as otherwise provided in Section 4.1(c), any Securities subject to a pledge
      or
      security interest as contemplated by this Section 4.1(b) shall continue to
      bear
      the legend set forth in this Section 4.1(b) and be subject to the restrictions
      on transfer set forth in Section 4.1(a).

    
      
        
        

      

      
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    (c) Certificates
      evidencing Shares and Make Good Shares, if ever Make Good Shares are due to
      be
      delivered pursuant to the Transaction Documents (collectively with the Shares,
      the “Securities”),
      shall
      not contain any legend (including the legend set forth in Section 4.1(b)):
      (i)
      while a registration statement (including the Registration Statement) covering
      such Securities is then effective, or (ii) following a sale or transfer of
      such
      Securities pursuant to Rule 144 (assuming the transferee is not an Affiliate
      of
      the Company), or (iii) while such Securities are eligible for sale by the
      selling Investor without volume restrictions under Rule 144. The Company agrees
      that following the Effective Date or such other time as legends are no longer
      required to be set forth on certificates representing Securities under this
      Section 4.1(c), it will, no longer than three (3) Trading Days following the
      delivery by an Investor to the Company or the Transfer Agent of a certificate
      representing such Securities containing a restrictive legend, deliver or
      instruct the Transfer Agent to deliver to such Investor, Securities which are
      free of all restrictive and other legends. If the Company is then eligible,
      certificates for Securities subject to legend removal hereunder shall be
      transmitted by the Transfer Agent to an Investor by crediting the prime
      brokerage account of such Investor with the Depository Trust Company System
      as
      directed by such Investor. If an Investor shall make a sale or transfer of
      Securities either (x) pursuant to Rule 144 or (y) pursuant to a registration
      statement and in each case shall have delivered to the Company or the Company’s
      transfer agent the certificate representing the applicable Securities containing
      a restrictive legend which are the subject of such sale or transfer and a
      representation letter in customary form (the date of such sale or transfer
      and
      Securities delivery being the “Share
      Delivery Date”)
      and
      (1) the Company shall fail to deliver or cause to be delivered to such Investor
      a certificate representing such Securities that is free from all restrictive
      or
      other legends by the third Trading Day following the Share Delivery Date and
      (2)
      following such third Trading Day after the Share Delivery Date and prior to
      the
      time such Securities are received free from restrictive legends, the Investor,
      or any third party on behalf of such Investor, purchases (in an open market
      transaction or otherwise) shares of Common Stock to deliver in satisfaction
      of a
      sale by the Investor of such Securities (a “Buy-In”),
      then,
      in addition to any other rights available to the Investor under the Transaction
      Documents and applicable law, the Company shall pay in cash to the Investor
      (for
      costs incurred either directly by such Investor or on behalf of a third party)
      the amount by which the total purchase price paid for Common Stock as a result
      of the Buy-In (including brokerage commissions, if any) exceed the proceeds
      received by such Investor as a result of the sale to which such Buy-In relates.
      The Investor shall provide the Company written notice indicating the amounts
      payable to the Investor in respect of the Buy–In. The Company may not make any
      notation on its records or give instructions to any transfer agent of the
      Company that enlarge the restrictions on transfer set forth in this
      Section.

    
      
        
        

      

      
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    4.2 Furnishing
      of Information.
      As long
      as any Investor owns any Securities, the Company covenants to timely file (or
      obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to the Exchange Act. As long as any Investor owns Securities, if the
      Company is not required to file reports pursuant to such laws, it will prepare
      and furnish to the Investors and make publicly available in accordance with
      Rule
      144(c) such information as is required for the Investors to sell the Securities
      under Rule 144. The Company further covenants that it will take such further
      action as any holder of Securities may reasonably request, all to the extent
      required from time to time to enable such Person to sell the Securities without
      registration under the Securities Act within the limitation of the exemptions
      provided by Rule 144.

     

    4.3 Integration.
      Except
      in connection with the Initial Financing, the Company shall not, and shall
      use
      its best efforts to ensure that no Affiliate of the Company shall, sell, offer
      for sale or solicit offers to buy or otherwise negotiate in respect of any
      security (as defined in Section 2 of the Securities Act) that would be
      integrated with the offer or sale of the Shares in a manner that would require
      the registration under the Securities Act of the sale of the Shares to the
      Investors, or that would be integrated with the offer or sale of the Shares
      for
      purposes of the rules and regulations of any Trading Market in a manner that
      would require stockholder approval of the sale of the Shares to the
      Investors.

     

    4.4 Subsequent
      Registrations.
      Except
      as may be required in connection with the Initial Financing, he Company may
      not
      file any registration statement with the Commission with respect to any
      securities of the Company prior to the time that all Registrable Shares are
      registered pursuant to one or more effective Registration Statement(s), and
      the
      prospectuses forming a portion of such Registration Statement(s) is available
      for the resale of all Registrable Shares.

     

    4.5 Securities
      Laws Disclosure; Publicity.
      By 5:00
      p.m. (New York time) on the Trading Day following the Closing Date, (a) the
      Company shall issue a press release, disclosing the transactions contemplated
      by
      the Transaction Documents (including, without limitation, details with respect
      to the make good provision and threshold (i.e. After Tax Net Income) contained
      in Section 4.11 herein as well as projected revenue estimates for the Company
      for the fiscal year ending December 31, 2008) and the Closing and (b) the
      Company will file the Super 8-K substantially in the form attached hereto as
      Appendix B, disclosing the material terms of the Transaction Documents,
      including details with respect to the make good provision and threshold (i.e.
      After Tax Net Income) contained in Section 4.11 herein (and attach as exhibits
      thereto all existing Transaction Documents) and the Closing. The Company
      covenants that following such disclosure, the Investors shall no longer be
      in
      possession of any material, non-public information with respect to any of the
      Existing Company Entities. In addition, the Company will make such other filings
      and notices in the manner and time required by the Commission and the Trading
      Market on which the Common Stock is listed. Notwithstanding the foregoing,
      the
      Company shall not publicly disclose the name of any Investor, or include the
      name of any Investor in any filing with the Commission (other than the
      Registration Statement and any exhibits to filings made in respect of this
      transaction in accordance with periodic filing requirements under the Exchange
      Act) or any regulatory agency or Trading Market, without the prior written
      consent of such Investor, except to the extent such disclosure is required
      by
      law or Trading Market regulations.

    
      
        
        

      

      
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    4.6 Limitation
      on Issuance of Future Priced Securities.
      During
      the twelve months following the Closing Date, the Company shall not issue any
      “Future Priced Securities” as such term is described by NASD
      IM-4350-1.

     

    4.7 Indemnification
      of Investors.
      In
      addition to the indemnity provided in the Registration Rights Agreement, the
      Company Entities will jointly and severally indemnify and hold the Investors
      and
      their directors, officers, shareholders, partners, employees and agents (each,
      an “Investor
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation in respect thereof (collectively, “Losses”)
      that
      any such Investor Party may suffer or incur as a result of or relating to any
      misrepresentation, breach or inaccuracy of any representation, warranty,
      covenant or agreement made by any of the Company Entities in any Transaction
      Document. In addition to the indemnity contained herein, the Company will
      reimburse each Investor Party for its reasonable legal and other expenses
      (including the cost of any investigation, preparation and travel in connection
      therewith) incurred in connection therewith, as such expenses are incurred.
      Except as otherwise set forth herein, the mechanics and procedures with respect
      to the rights and obligations under this Section 4.7 shall be the same as those
      set forth in Section 5 of the Registration Rights Agreement.

     

    4.8 Non-Public
      Information.
      The
      Company covenants and agrees that neither it, any Company Entity nor any other
      Person acting on its or their behalf will provide any Investor or its agents
      or
      counsel with any information that the Company believes constitutes material
      non-public information, unless prior thereto such Investor shall have executed
      a
      written agreement regarding the confidentiality and use of such information.
      The
      Company understands and confirms that each Investor shall be relying on the
      foregoing representations in effecting transactions in securities of the
      Company.

     

    4.9 Listing
      of Shares.
      The
      Company agrees, (i) if the Company applies to have the Common Stock traded
      on
      any other Trading Market, it will include in such application the Shares, and
      will take such other action as is necessary or desirable to cause the Shares
      to
      be listed on such other Trading Market as promptly as possible, and (ii) the
      Company will take all action reasonably necessary to continue the listing and
      trading of its Common Stock on a Trading Market and will comply in all material
      respects with the Company’s reporting, filing and other obligations under the
      bylaws or rules of the Trading Market.

     

    4.10 Use
      of
      Proceeds.
      The
      Company will use the net proceeds from the sale of the Shares hereunder for
      capital expenditures, research and development, marketing, sales and
      distribution expansion and working capital purposes and for the purchase from
      Inner Mongolia Yongye Biotechnology Co. Limited of existing finished goods
      inventory and for no other purposes.

    
      
        
        

      

      
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    4.11 Make
      Good Shares.

     

    (a) The
      Make
      Good Pledgor
      agrees
      that in
      the
      event that the After Tax Net Income (as defined below) reported in the 2008
      Annual Report is less than $10,263,919 (the “2008
      Guaranteed ATNI”),
      all
      of the 2008 Make Good Shares (as defined below) shall be transferred
      in
      accordance with the Make Good Escrow Agreement to the Investors on a pro-rata
      basis (determined by dividing each Investor’s Investment Amount by the aggregate
      of all Investment Amounts delivered to the Company by the Investors hereunder)
      for no consideration other than their respective Investment Amounts paid to
      the
      Company at Closing. The “2008
      Make Good Shares”
means
      the 2,000,000 shares of Common Stock (as
      equitably adjusted for any stock splits, stock combinations, stock dividends
      or
      similar transactions)
      required
      to be deposited with the Make Good Escrow Agent pursuant to the Make Good Escrow
      Agreement.
      In the
      event that the After Tax Net Income reported in the 2008 Annual Report is equal
      to or greater than the 2008 Guaranteed ATNI, no transfer of the 2008 Make Good
      Shares shall be required by the Make Good Pledgor to the Investors and such
      2008
      Make Good Shares shall be returned to the Make Good Pledgor in accordance with
      the Make Good Escrow Agreement. Any such transfer of the 2008 Make Good Shares
      shall be made to the Investors or the Make Good Pledgor, as applicable, within
      10 Business Days after the date which the 2008 Annual Report is filed with
      the
      Commission and a copy thereof is delivered to Make Good Escrow Agent.
      Notwithstanding the foregoing or anything else to the contrary herein, for
      purposes of determining whether or not the 2008 Guaranteed ATNI has been met,
      the following items shall not be deemed to be an expense, charge, or any other
      deduction from revenues even though GAAP may require contrary treatment or
      the
      Annual Report for the fiscal year filed with the Commission by the Company
      may
      report otherwise: (i) any accounting charges for issuing warrants, and (ii)
      the
      release of any of the 2008 Make Good Shares to the Make Good Pledgor as a result
      of the operation of this Section 4.11.

     

    No
      other
      exclusions shall be made for any non-recurring expenses of the Company,
      including liquidated damages under the Transaction Documents, in determining
      whether the 2008 Guaranteed ATNI has been achieved. If prior to the second
      anniversary of the filing of the 2008 Annual Report, the Company or their
      auditors report or recognize that the financial statements contained in such
      report are subject to amendment or restatement such that the Company would
      recognize or report adjusted After Tax Net Income of less than the 2008
      Guaranteed ATNI, then notwithstanding any prior return of 2008 Make Good Shares
      to the Make Good Pledgor, the Make Good Pledgor will, within 10 Business Days
      following the earlier of the filing of such amendment or restatement or
      recognition, deliver the relevant 2008 Make Good Shares to the
      Investors. “After
      Tax Net Income”
shall
      mean the Company’s operating income after taxes for the fiscal year ending
      December 31, 2008, determined in accordance with GAAP as reported in the 2008
      Annual Report.

     

    (b) If
      the
      2008 Annual Report is not filed timely with the Commission and remains unfiled
      for a period in excess of 45 days after the last day that the same was required
      to have been filed (taking into account the relief permitted under Rule 12(b)-25
      of the Exchange Act), then ATNI for the fiscal year ending December 31, 2008
      shall be deemed to be less than the 2008 Guaranteed ATNI, and all of the 2008
      Make Good Shares shall be transferred
      in
      accordance with the Make Good Escrow Agreement to the Investors on a pro-rata
      basis.

    
      
        
        

      

      
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    (c) In
      connection with the foregoing,
      the Make
      Good Pledgor
      agrees
      that, contemporaneously with, and as a condition to, the Closing, the
      Make
      Good Pledgor will
      deposit all 2008 Make Good Shares into escrow in accordance with the Make Good
      Escrow Agreement along with stock powers executed in blank (or such other signed
      instrument of transfer acceptable to the Company’s transfer agent), and the
      handling and disposition of the 2008 Make Good Shares shall be governed by
      this
      Section 4.11 and the Make Good Escrow Agreement. The
      Make
      Good Escrow Agent shall notify the Investors when it has received from the
      Make
      Good Pledgor the 2008 Make Good Shares and associated stock powers. The
Make
      Good
      Pledgor
      understands and agrees that the Investors’ right to receive 2008 Make Good
      Shares pursuant to this Section 4.11 and the Make Good Escrow Agreement shall
      continue to run to the benefit of each Investor even if such Investor shall
      have
      transferred or sold all or any portion of its Shares, and that each Investor
      shall have the right to assign its rights to receive all or any such shares
      of
      Common Stock to other Persons in conjunction with negotiated sales or transfers
      of any of its Shares. The Make Good Pledgor represents and warrants that it
      has
      carefully considered and understands its obligations and rights under this
      Section 4.11 and the Make Good Escrow Agreement, and in furtherance thereof
      (x)
      has consulted with its legal and other advisors with respect thereto and (y)
      hereby forever waives and agrees that it may not assert any equitable defenses
      in any Proceeding involving the 2008 Make Good Shares.

     

    (d) The
      Company covenants and agrees that upon any transfer of 2008 Make Good Shares
      to
      the Investors in accordance with the Make Good Escrow Agreement, the Company
      shall promptly instruct its Transfer Agent to reissue such 2008 Make Good Shares
      in the applicable Investor’s name and deliver the same as directed by such
      Investor.

     

    (e) If
      any
      term or provision of this Section 4.11 contradicts or conflicts with any term
      or
      provision of the Make Good Escrow Agreement, the terms of the Make Good Escrow
      Agreement shall control.

     

    4.12 Intentionally
      Omitted.

     

    4.13 Further
      Assurances.
      The
      Company will, and will cause all of the Company Entities and their management
      to, use their best efforts to satisfy all of the closing conditions under
      Section 5.1, and will not take any action which could frustrate or delay the
      satisfaction of such conditions. In addition, either prior to or following
      the
      Closing, the CJV Founder and each Company Entity signatory hereto will, and
      will
      cause each other Company Entity and its management to, perform, or cause to
      be
      done and performed, all such further acts and things, and shall execute and
      deliver all such other agreements, certificates, instruments and documents,
      as
      any other party may reasonably request in order to carry out the intent and
      accomplish the purposes of this Agreement and the consummation of the
      transactions contemplated hereby.

     

    4.14 Financial
      Professionals. (a) The
      Company covenants and agrees that, no later than 365 days following the Closing
      Date, the Company will hire a chief financial officer who has experience as
      a
      senior financial officer of a United States public reporting company and who
      is
      (i) fluent in English, (ii) residing or will reside, upon employment by the
      Company, in Asia, and (iii) familiar with (x) GAAP and (y) auditing procedures
      and compliance for United States public companies (such a chief financial
      officer being referred to as a “Qualified
      CFO”).
      The
      Company shall enter into an employment agreement with the Qualified CFO for
      a
      term of no less than two years. Should the Qualified CFO be dismissed at any
      time prior to the second anniversary of the Closing Date, then the Company
      shall
      replace the Qualified CFO with a chief financial officer who fits the criteria
      set forth herein as soon as practicable. By
      9:00
      a.m. (New York time) on the second Trading Day following the hiring of such
      Qualified CFO, the Company will file a Current Report on Form 8-K disclosing
      the
      information required by Item 5.02 of Form 8-K. If the Company fails to comply
      timely with the appointment of a Qualified CFO and filing of a Current Report
      on
      Form 8-K disclosing the information required by Item 5.02 of Form 8-K, as
      required in this Section 4.14(a) above (the “Qualified CFO Requirement”), then
      commencing on the date that the Qualified CFO Requirement was to have been
      satisfied hereunder, and on each monthly anniversary thereof, until the
      Qualified CFO Requirement is satisfied, the Company shall pay to the Investors,
      as liquidated damages and not as a penalty, by wire transfer in immediately
      available funds, an aggregate amount equal to 1% of the total Investment Amount
      hereunder for all of the Investors, which shall be paid to the Investors pro
      rata in accordance with their respective Investment Amounts, until such time
      as
      the Qualified CFO Requirement is satisfied. The
      liquidated damages pursuant to the terms of this Section 4.14(a) in no event
      shall exceed, in the aggregate, an amount equal to 6% of
      the
      total Investment Amount hereunder for all of the Investors in the aggregate,
      but
shall
      be
      independent of any other damages payable under Section 4.14(b) and elsewhere
      in
      this Agreement or any other Transaction Document.

    
      
        
        

      

      
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    (b) The
      Company covenants and agrees that, no later than 180 days following the
      Effective Date, the Company shall have hired a “top 15” independent registered
      public accounting firm having its principal office in the United States (or
      other independent registered public accounting firm reasonably acceptable to
      the
      Placement Agent), that has experience as the independent registered public
      accounting firm for a United States public reporting company and having
      principals who are (i) a certified public accountants, (ii) fluent in English,
      and (iii) an expert in (x) GAAP and (y) auditing procedures and compliance
      for
      United States public companies (such audit firm being referred to as a
“Qualified
      Auditor”).
      The
      Company shall enter into an audit engagement agreement with the Qualified
      Auditor for a term of no less than 12 months, to conduct the annual financial
      audit of the Company, prepare the audited annual financial statements of the
      Company required to be included in its United States public company filings
      and
      review and assist in the preparation of the unaudited quarterly financial
      statements of the Company required to be included in its United States public
      company filings. Should the Qualified Auditor be dismissed at any time within
      18
      months after the Closing Date, then the Company shall replace the Qualified
      Auditor with another independent registered public accounting firm that
      satisfies the criteria set forth herein as soon as practicable. By
      9:00
      a.m. (New York time) on the second Trading Day following the engagement of
      such
      Qualified CFO, the Company will file a Current Report on Form 8-K disclosing
      the
      information required by Item 4.01 of Form 8-K. If the Company fails to comply
      timely with the appointment of a Qualified Auditor and filing of a Current
      Report on Form 8-K disclosing the information required by Item 4.01 of Form
      8-K,
      as required in this Section 4.14(b) above (the “Qualified Auditor Requirement”),
      then commencing on the date that the Qualified Auditor Requirement was to have
      been satisfied hereunder, and on each monthly anniversary thereof, until the
      Qualified Auditor Requirement is satisfied, the Company shall pay to the
      Investors, as liquidated damages and not as a penalty, by wire transfer in
      immediately available funds, an aggregate amount equal to 1% of the total
      Investment Amount hereunder for all of the Investors, which shall be paid to
      the
      Investors pro rata in accordance with their respective Investment Amounts,
      until
      such time as the Qualified Auditor Requirement is satisfied. The
      liquidated damages pursuant to the terms of this Section 4.14(b) in no event
      shall exceed, in the aggregate, an amount equal to 6% of
      the
      total Investment Amount hereunder for all of the Investors in the aggregate,
      but
shall
      be
      independent of any other damages payable under Section 4.14(a) and elsewhere
      in
      this Agreement or any other Transaction Document.

    
      
        
        

      

      
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    4.15 .
       Right
      of First Refusal. (a)
      From the
      date hereof until the one year anniversary of the Effective Date (plus one
      additional day for each Trading Day following the Effective Date of any
      Registration Statement during which either (1) the Registration Statement
      is not effective or (2) the prospectus forming a portion of the
      Registration Statement is not available for the resale of all Registrable
      Securities (as defined in the Registration Rights Agreement)) (the “Trigger
      Date”),
      the
      Company will not, directly or indirectly, offer, sell, grant any option to
      purchase, or otherwise dispose of (or announce any offer, sale, grant or any
      option to purchase or other disposition of) any of its equity or equity
      equivalent securities, including, without limitation, any debt, preferred stock
      or other instrument or security that is, at any time during its life and under
      any circumstances, convertible into or exchangeable or exercisable for shares
      of
      Common Stock or Common Stock Equivalents, or if the Company shall receive an
      offer regarding the purchase of the Company’s securities and desires to offer
      securities consistent with or otherwise in connection with or in furtherance
      of
      such offer (any such offer, sale, grant, disposition or announcement being
      referred to as a “Subsequent
      Placement”)
      unless
      the Company shall have first complied with this Section 4.15. If the Company
      desires to engage in a Subsequent Placement it shall deliver to each of the
      Investors a written notice requesting their written approval to receive
      nonpublic information regarding the Company. The Investors shall have ten (10)
      days to deliver to the Company such approval. Any Investor failing to deliver
      timely to the Company such written approval, or who shall have delivered to
      the
      Company a written notice withholding such approval, shall be deemed to have
      waived its rights under this Section 4.15 with regard to such Subsequent
      Placement. The Investors who, in response to such request from the Company,
      shall have delivered timely to the Company a written approval to receive
      nonpublic information regarding the Company (collectively, the “Responding
      Investors” and each a “Responding Investor”), shall receive a written notice
      that the Company desires to engage in a Subsequent Placement specifying the
      general terms of the offering the Company desires to make (including, without
      limitation, all information relating to price, structure and amount of such
      offering, but not including the identity of any potential investors therein)
      and
      for a period of at least twenty (20) Business Days after the giving of such
      notice the Company agrees to negotiate in good faith with the Responding
      Investors the terms of a sale of the Company’s securities to the Responding
      Investors.

     

    (b) In
      the
      event that a Subsequent Placement contemplated in the last sentence of Section
      4.15(a) shall not have closed by the 30th
      Business
      Day following the delivery to the Responding Investors of the written notice
      for
      such Subsequent Placement, and in any event prior to such Subsequent Placement,
      the Company shall deliver to the Responding Investors a written notice
      (the “Offer
      Notice”)
      of any
      proposed or intended issuance or sale or exchange (the “Offer”)
      of the
      securities being offered (the “Offered
      Securities”)
      in a
      Subsequent Placement, which Offer Notice shall (v) identify and describe the
      Offered Securities, (x) include the final form of documents and agreements
      governing the Subsequent Placement, (y) specify the price and other terms
      upon which the Offered Securities are to be issued, sold or exchanged, and
      the
      number or amount of the Offered Securities to be issued, sold or exchanged,
      and
      (z) offer to issue and sell to or exchange with such Investors all of the
      Offered Securities, allocated among such Responding Investors (a) based on
      such
      Responding Investor’s pro rata portion of the total Investment Amount hereunder
      attributable to such Responsing Investors (the “Basic
      Amount”),
      and
      (b) with respect to each of the Responding Investors that elects to purchase
      its
      Basic Amount, any additional portion of the Offered Securities attributable
      to
      the Basic Amounts of other Responding Investors as such Responding Investor
      shall indicate it will purchase or acquire should the other Responding Investors
      subscribe for less than their Basic Amounts (the “Undersubscription
      Amount”),
      which
      process shall be repeated until the Responding Investors shall have an
      opportunity to subscribe for any remaining Undersubscription
      Amount.

    
      
        
        

      

      
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    (c) To
      accept
      an Offer, in whole or in part, such Responding Investor must deliver a written
      notice to the Company prior to the end of the fifth Business Day after such
      Responding Investor’s receipt of the Offer Notice (the “Offer
      Period”),
      setting forth the portion of such Responding Investor’s Basic Amount that such
      Responding Investor elects to purchase and, if such Responding Investor shall
      elect to purchase all of its Basic Amount, the Undersubscription Amount, if
      any,
      that such Responding Investor elects to purchase (in either case, the
“Notice
      of Acceptance”).
      If
      the Basic Amounts subscribed for by all Responding Investors are less than
      the
      total of all of the Basic Amounts, then each Responding Investor who has set
      forth an Undersubscription Amount in its Notice of Acceptance shall be entitled
      to purchase, in addition to the Basic Amounts subscribed for, the
      Undersubscription Amount it has subscribed for; provided,
      however,
      that if
      the Undersubscription Amounts subscribed for exceed the difference between
      the
      total of all the Basic Amounts and the Basic Amounts subscribed for (the
“Available
      Undersubscription Amount”),
      each
      Responding Investor who has subscribed for any Undersubscription Amount shall
      be
      entitled to purchase only that portion of the Available Undersubscription Amount
      as the Basic Amount of such Investor bears to the total Basic Amounts of all
      Responding Investors that have subscribed for Undersubscription Amounts, subject
      to rounding by the Company to the extent its deems reasonably
      necessary.

     

    (d) The
      Company shall have sixty (60) Business Days from the expiration of the Offer
      Period above to (i) offer, issue, sell or exchange all or any part of such
      Offered Securities as to which a Notice of Acceptance has not been given by
      the
      Responding Investors (the “Refused
      Securities”),
      but
      only to the offerees described in the Offer Notice (if so described therein)
      and
      only upon terms and conditions (including, without limitation, unit prices
      and
      interest rates) that are not more favorable to the acquiring person or persons
      or less favorable to the Company than those set forth in the Offer Notice and
      (ii) to publicly announce (a) the execution of such Subsequent Placement
      Agreement (as defined below), and (b) either (x) the consummation of the
      transactions contemplated by such Subsequent Placement Agreement or (y) the
      termination of such Subsequent Placement Agreement, which shall be filed with
      the Commission on a Current Report on Form 8-K with such Subsequent Placement
      Agreement and any documents contemplated therein filed as exhibits thereto.
      If
      no disclosure has been made by the Company by the end of the sixty (60) Business
      Day period referred to in this subsection (d), the Subsequent Placement shall
      be
      deemed to have been abandoned and the Responding Investors shall no longer
      be
      deemed to be in possession of any non-public information with respect to the
      Company.

     

    (e) In
      the
      event the Company shall propose to sell less than all the Refused Securities
      (any such sale to be in the manner and on the terms specified in this Section
      4.15), then each Responding Investor may, at its sole option and in its sole
      discretion, reduce the number or amount of the Offered Securities specified
      in
      its Notice of Acceptance to an amount that shall be not less than the number
      or
      amount of the Offered Securities that such Responding Investor elected to
      purchase pursuant to Section 4.15(c) above multiplied by a fraction, (i) the
      numerator of which shall be the number or amount of Offered Securities the
      Company actually proposes to issue, sell or exchange (including Offered
      Securities to be issued or sold to Investors pursuant to Section 4.15(c) above
      prior to such reduction) and (ii) the denominator of which shall be the original
      amount of the Offered Securities. In the event that any Responding Investor
      so
      elects to reduce the number or amount of Offered Securities specified in its
      Notice of Acceptance, the Company may not issue, sell or exchange more than
      the
      reduced number or amount of the Offered Securities unless and until such
      securities have again been offered to the Responding Investors in accordance
      with Section 4.15(b) above.

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (f) Upon
      the
      closing of the issuance, sale or exchange of all or less than all of the Refused
      Securities, the Responding Investors shall acquire from the Company, and the
      Company shall issue to the Responding Investors, the number or amount of Offered
      Securities specified in the Notices of Acceptance, as reduced pursuant to
      Section 4.15(e) above if the Responding Investors have so elected, upon the
      terms and conditions specified in the Offer. The purchase by the Responding
      Investors of any Offered Securities is subject in all cases to the preparation,
      execution and delivery by the Company and the Responding Investors of a purchase
      agreement relating to such Offered Securities substantially the same in form
      and
      substance as the agreement disclosed above in Section 4.15(b)(x) and otherwise
      reasonably satisfactory to Responding Investors’ counsel (such agreement, the
“Subsequent
      Placement Agreement”).

     

    (g) Any
      Offered Securities not acquired by the Responding Investors or other persons
      in
      accordance with Section 4.15(f) above may not be issued, sold or exchanged
      until
      they are again offered to the Investors under the procedures specified in this
      Agreement.

     

    (h) In
      exchange for the Company’s willingness to agree to these procedures, each
      Responding Investor hereby irrevocably agrees that it will hold in strict
      confidence any and all Offer Notices, the information contained therein, and
      the
      fact that the Company is contemplating a Subsequent Placement, until such time
      as the Company is obligated to make the disclosures required by Section 4.15(d),
      or unless it notifies the Company in writing that it no longer desires to
      receive Offer Notices.

     

    (i) The
      rights contained in this Section 4.15 shall not apply to the issuance and sale
      by the Company of (i) shares of Common Stock or Common Stock Equivalents in
      connection with the Initial Financing, (ii) shares of Common Stock or Common
      Stock Equivalents issued as consideration for the acquisition of another company
      or business in which the shareholders of the Company do not have an ownership
      interest, and where the primary purpose is not to raise capital for the Company
      or any Subsidiary, which acquisition has been approved by the Board of Directors
      of the Company, or (iii) securities issued in connection with the Initial
      Financing.

     

    ARTICLE
      5.

    CONDITIONS
      PRECEDENT TO CLOSING

     

    5.1. Conditions
      Precedent to the Obligations of the Investors to Purchase Shares.
      The
      obligation of each Investor to acquire Shares at the Closing is subject to
      the
      satisfaction or waiver by such Investor, at or before the Closing, of each
      of
      the following conditions:

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of the Existing Company Entities contained herein
      shall be true and correct in all material respects as of the date when made
      and
      as of the Closing as though made on and as of such date;

     

    (b) Performance.
      The
      Existing Company Entities and the Make Good Pledgor shall have performed,
      satisfied and complied in all material respects with all covenants, agreements
      and conditions required by the Transaction Documents to be performed, satisfied
      or complied with by it at or prior to the Closing;

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

     

    (d) Adverse
      Changes.
      Since
      the date of execution of this Agreement, no event or series of events shall
      have
      occurred that reasonably could have or result in a Material Adverse Effect
      or a
      material adverse change with respect to the Company or the
      Subsidiaries;

     

    (e) CJV
      Intellectual Property Rights.
      The CJV
      shall provide to the Investors evidence acceptable to the Investors that all
      Intellectual Property Rights are either (i) validly owned by the CJV, or (ii)
      (a) if owned by any Person other than the CJV or its predecessor, subject to
      valid and binding Intellectual Property Right Licensing Agreements which may
      not
      be terminated for any reason until any such Intellectual Property Right covered
      thereby is validly owned by the CJV, or (b) if owned by the predecessor of
      the
      CJV, the application for the change of the registered owner information from
      that of the CJV’s predecessor to the CJV’s current name, address and other
      related updates which is or may be required by relevant PRC authorities in
      charge of such Intellectual Property is submitted by the CJV to the relevant
      PRC
      authority on or before the Closing.

     

    (f) PRC,
      Nevada, and US Opinions.
      The
      Company shall have delivered to the Investors, and the Investors shall be able
      to rely upon, the legal opinions that the Company shall have received from
      its
      legal counsel in Nevada and the PRC (which, among other things, shall confirm
      the legality arrangements between PRC operating entity and its corporate
      ownership structure, including CJV, BVI and the Company, under applicable PRC
      law and the legality of the restructuring being effected with BVI in connection
      with the Exchange) and with regard to the same and the Make Good Pledgor and
      from Company U.S. Counsel and Nevada counsel with regard to the Exchange and
      the
      enforceability of the Transaction Documents;

     

    (g) Closing
      Officer’s Certificate.
      At the
      Closing, the Company shall have delivered to each Investor an officer’s
      certificate to the effect that each of the conditions specified in Sections
      5.1(a) - 5.1(e) is satisfied in all respects;

     

    (h) Company
      Agreements.
      The
      Company shall have delivered or cause to be delivered:

     

    (i) This
      Agreement, duly executed by the Company, BVI and CJV;

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Closing Escrow Agreement, duly executed by the Company and the Escrow
      Agent;

     

    (iii) The
      Make
      Good Escrow Agreement, duly executed by all parties thereto (other than the
      Investors) and certificates for the Make Good Shares, with stock powers in
      respect of the same, executed in blank by the Make Good Pledgor shall have
      been
      delivered to the Make Good Escrow Agent;

     

    (iv) The
      Registration Rights Agreement, duly executed by the Company; and

     

    (v) Lockup
      Agreements, duly executed by the Company and each officer and member of the
      Board of Directors of the Company listed on Schedule 5.1(h)(v) attached
      hereto;.

     

    (i) Company
      Deliverables.
      The
      Company shall have delivered the Company Deliverables in accordance with Section
      2.2(a);

     

    (j) Exchange.
      The
      Exchange, as described in, and to be effectuated pursuant to, the Exchange
      Agreement, shall have been completed; and

     

    (k) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    5.2 Conditions
      Precedent to the Obligations of the Company to Sell Shares.
      The
      obligation of the Company to sell Shares at the Closing is subject to the
      satisfaction or waiver by the Company, at or before the Closing, of each of
      the
      following conditions:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of each Investor contained herein shall be true
      and correct in all material respects as of the date when made and as of the
      Closing Date as though made on and as of such date;

     

    (b) Performance.
      Each
      Investor shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by such Investor at or
      prior to the Closing;

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

     

    (d) Investor
      Deliverables.
      Each
      Investor shall have delivered the Registration Rights Agreement, the Closing
      Escrow Agreement and the Make Good Escrow Agreement, each duly executed by
      such
      Investor and a completed Selling Holder Questionnaire (as defined in the
      Registration Rights Agreement); and

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    (e) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    ARTICLE
      6.

    MISCELLANEOUS

     

    6.1 Fees
      and Expenses.
      Each
      party shall pay the fees and expenses of its advisers, counsel, accountants
      and
      other experts, if any, and all other expenses incurred by such party incident
      to
      the negotiation, preparation, execution, delivery and performance of the
      Transaction Documents. The Company shall pay all stamp and other taxes and
      duties levied in connection with the sale of the Shares.

     

    6.2 Entire
      Agreement.
      The
      Transaction Documents, together with the Exhibits,
      Appendix
      A
      and
Appendix
      B,
      and
      Schedules thereto, contain the entire understanding of the parties with respect
      to the subject matter hereof and supersede all prior agreements, understandings,
      discussions and representations, oral or written, with respect to such matters,
      which the parties acknowledge have been merged into such documents, exhibits
      and
      schedules.

     

    6.3 Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via (i) facsimile (provided the sender receives a machine-generated
      confirmation of successful transmission) at the facsimile number specified
      in
      this Section or (ii) electronic mail (i.e., Email) prior to 6:30 p.m. (New
      York
      City time) on a Trading Day, (b) the next Trading Day after the date of
      transmission, if such notice or communication is delivered via (i) facsimile
      at
      the facsimile number specified in this Section or (ii) electronic mail (i.e.,
      Email) on a day that is not a Trading Day or later than 6:30 p.m. (New York
      City
      time) on any Trading Day, or (c) the Trading Day following the date of mailing,
      if sent by U.S. nationally recognized overnight courier service, or (d) upon
      actual receipt by the party to whom such notice is required to be given, if
      sent
      by any means other than facsimile or Email transmission. The address for such
      notices and communications shall be as follows:

     

    
      	 	
              If to the Company:

            	
              Yongye Biotechnology International, Inc.

              6th Floor, Suite 608 Xue Yuan International Tower

              No. 1 Zhichun Road

              Haidian District

              Beijing 100083

              PR China

              Facsimile:  +86 10.8231.1797

              Email: wzs@china-yongye.com

              Attn.:  CEO

            
	 	 	 
	 	
              With a copy to:

            	
              Loeb & Loeb LLP

              345 Park Avenue

              New York, NY 10154

              Facsimile: (212) 407-4000

              Email: mnussbaum@loeb.com

              Attention: Mitchell S. Nussbaum, Esq.

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    
      	 	
              If to an Investor:

            	
              To the address set forth under such Investor’s name on the signature pages hereof;

            

    

     

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

     

    6.4 Amendments;
      Waivers; No Additional Consideration.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investors holding a majority of the
      Shares at the time of the waiver or amendment. No waiver of any default with
      respect to any provision, condition or requirement of this Agreement shall
      be
      deemed to be a continuing waiver in the future or a waiver of any subsequent
      default or a waiver of any other provision, condition or requirement hereof,
      nor
      shall any delay or omission of either party to exercise any right hereunder
      in
      any manner impair the exercise of any such right. No consideration shall be
      offered or paid to any Investor to amend or consent to a waiver or modification
      of any provision of any Transaction Document unless the same consideration
      is
      also offered to all Investors who then hold Shares.

     

    6.5 Termination.
      This
      Agreement may be terminated prior to Closing:

     

    (a) by
      written agreement of the Investors and the Company, a copy of which shall be
      provided to the Escrow Agent; and

     

    (b) by
      the
      Company or an Investor (as to itself but no other Investor) upon written notice
      to the other, with a copy to the Escrow Agent, if the Closing shall not have
      taken place by 6:30 p.m. Eastern time on the Outside Date; provided, that the
      right to terminate this Agreement under this Section 6.5(b) shall not be
      available to any Person whose failure to comply with its obligations under
      this
      Agreement has been the cause of or resulted in the failure of the Closing to
      occur on or before such time.

     

    In
      the
      event of a termination pursuant to Section 6.5(a) or 6.5(b), each Investor
      shall
      have the right to a return of up to its entire Investment Amount deposited
      with
      the Escrow Agent pursuant to Section 2.2(b)(i), without interest or deduction.
      The Company covenants and agrees to cooperate with such Investor in obtaining
      the return of its Investment Amount, and shall not communicate any instructions
      to the contrary to the Escrow Agent.

     

    In
      the
      event of a termination pursuant to this Section 6.5, the Company shall promptly
      notify all non-terminating Investors. Upon a termination in accordance with
      this
      Section 6.5, the Company and the terminating Investor(s) shall not have any
      further obligation or liability (including as arising from such termination)
      to
      the other and no Investor will have any liability to any other Investor under
      the Transaction Documents as a result therefrom.

     

    6.6 Construction.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party. This Agreement shall be
      construed as if drafted jointly by the parties, and no presumption or burden
      of
      proof shall arise favoring or disfavoring any party by virtue of the authorship
      of any provisions of this Agreement or any of the Transaction
      Documents.

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    6.7 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of the Investors. Any Investor may assign any or all of its rights
      under
      this Agreement to any Person to whom such Investor assigns or transfers any
      Shares, provided such transferee agrees in writing to be bound, with respect
      to
      the transferred Shares, by the provisions hereof that apply to the
“Investors.”

     

    6.8 No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.7 (as to each Investor Party).

     

    6.9 Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement and any other Transaction Documents (whether
      brought against a party hereto or its respective Affiliates, employees or
      agents) shall be commenced exclusively in the New York Courts. Each party hereto
      hereby irrevocably submits to the exclusive jurisdiction of the New York Courts
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein (including with respect
      to the enforcement of the any of the Transaction Documents), and hereby
      irrevocably waives, and agrees not to assert in any Proceeding, any claim that
      it is not personally subject to the jurisdiction of any such New York Court,
      or
      that such Proceeding has been commenced in an improper or inconvenient forum.
      Each party hereto hereby irrevocably waives personal service of process and
      consents to process being served in any such Proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with evidence
      of
      delivery) to such party at the address in effect for notices to it under this
      Agreement and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by law.
      Each party hereto hereby irrevocably waives, to the fullest extent permitted
      by
      applicable law, any and all right to trial by jury in any legal proceeding
      arising out of or relating to this Agreement or the transactions contemplated
      hereby. If either party shall commence a Proceeding to enforce any provisions
      of
      a Transaction Document, then the prevailing party in such Proceeding shall
      be
      reimbursed by the other party for its reasonable attorneys’ fees and other costs
      and expenses incurred with the investigation, preparation and prosecution of
      such Proceeding.

     

    6.10 Survival.
      The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and the delivery of the Shares.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

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

     

    6.12 Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

     

    6.13 Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever any Investor
      exercises a right, election, demand or option under a Transaction Document
      and
      the Company does not timely perform its related obligations within the periods
      therein provided, then such Investor may rescind or withdraw, in its sole
      discretion from time to time upon written notice to the Company, any relevant
      notice, demand or election in whole or in part without prejudice to its future
      actions and rights.

     

    6.14 Replacement
      of Shares.
      If any
      certificate or instrument evidencing any Shares is mutilated, lost, stolen
      or
      destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or destruction and
      customary and reasonable indemnity, if requested. The applicants for a new
      certificate or instrument under such circumstances shall also pay any reasonable
      third-party costs associated with the issuance of such replacement Shares.
      If a
      replacement certificate or instrument evidencing any Shares is requested due
      to
      a mutilation thereof, the Company may require delivery of such mutilated
      certificate or instrument as a condition precedent to any issuance of a
      replacement.

     

    6.15 Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Investors and the Company will
      be entitled to specific performance under the Transaction Documents. The parties
      agree that monetary damages may not be adequate compensation for any loss
      incurred by reason of any breach of obligations described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be
      adequate.

     

    6.16 Payment
      Set Aside.
      To the
      extent that the Company makes a payment or payments to any Investor pursuant
      to
      any Transaction Document or an Investor enforces or exercises its rights
      thereunder, and such payment or payments or the proceeds of such enforcement
      or
      exercise or any part thereof are subsequently invalidated, declared to be
      fraudulent or preferential, set aside, recovered from, disgorged by or are
      required to be refunded, repaid or otherwise restored to the Company, a trustee,
      receiver or any other person under any law (including, without limitation,
      any
      bankruptcy law, state or federal law, common law or equitable cause of action),
      then to the extent of any such restoration the obligation or part thereof
      originally intended to be satisfied shall be revived and continued in full
      force
      and effect as if such payment had not been made or such enforcement or setoff
      had not occurred.

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    6.17 Independent
      Nature of Investors’ Obligations and Rights.
      The
      obligations of each Investor under any Transaction Document are several and
      not
      joint with the obligations of any other Investor, and no Investor shall be
      responsible in any way for the performance of the obligations of any other
      Investor under any Transaction Document. The decision of each Investor to
      purchase Shares pursuant to the Transaction Documents has been made by such
      Investor independently of any other Investor. Nothing contained herein or in
      any
      Transaction Document, and no action taken by any Investor pursuant thereto,
      shall be deemed to constitute the Investors as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Investors are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Documents.
      Each
      Investor acknowledges that no other Investor has acted as agent for such
      Investor in connection with making its investment hereunder and that no Investor
      will be acting as agent of such Investor in connection with monitoring its
      investment in the Shares or enforcing its rights under the Transaction
      Documents. Each Investor shall be entitled to independently protect and enforce
      its rights, including without limitation the rights arising out of this
      Agreement or out of the other Transaction Documents, and it shall not be
      necessary for any other Investor to be joined as an additional party in any
      proceeding for such purpose. The Company acknowledges that each of the Investors
      has been provided with the same Transaction Documents for the purpose of closing
      a transaction with multiple Investors and not because it was required or
      requested to do so by any Investor.

     

    6.18 Limitation
      of Liability.
      Notwithstanding anything herein to the contrary, the Company acknowledges and
      agrees that the liability of an Investor arising directly or indirectly, under
      any Transaction Document of any and every nature whatsoever shall be satisfied
      solely out of the assets of such Investor, and that no trustee, officer, other
      investment vehicle or any other Affiliate of such Investor or any investor,
      shareholder or holder of shares of beneficial interest of such a Investor shall
      be personally liable for any liabilities of such Investor.

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    [SIGNATURE
      PAGES TO FOLLOW]

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      IN
        WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
        Agreement to be duly executed by their respective authorized signatories
        as of
        the date first indicated above.

      

        
          	 	
                  YONGYE
                    BIOTECHNOLOGY INTERNATIONAL, INC.

                
	 	 
	 	 
	 	
                  By:

                	
                    /s/
                    Zishen Wu

                	
                
	 	
                  Name:  Zishen
                    Wu

                
	 	
                  Title:    CEO

                
	 	 	 
	 	 	 
	 	
                  FULLMAX
                    PACIFIC LIMITED

                
	 	 
	 	 
	 	
                  By:

                	
                    /s/
                    Zhong Xingmei

                	
                
	 	
                  Name:  Zhong
                    Xingmei

                
	 	
                  Title:    Director

                
	 	 	 
	 	 	 
	 	
                  INNER
                    MONGOLIA YONGYE NONG FENG

                  BIOTECHNOLOGY
                    CO., LTD.

                
	 	 
	 	 
	 	
                  By:

                	
                   
                    /s/ Zishen Wu

                	
                
	 	
                  Name:  Zishen
                    Wu

                
	 	
                  Title:    CEO

                
	 	 	 
	 	 	 
	 	
                  Only
                    as to Sections 4.11 and 4.13 herein:

                
	 	
                  FULL
                    ALLIANCE INTERNATIONAL LIMITED

                
	 	 
	 	 
	 	
                  By:

                	
                   
                    /s/ Zhong Xingmei

                	
                
	 	
                  Name:  Zhong
                    Xingmei

                
	 	
                  Title:    Director

                

        

      

       

      [THE
        REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

      [SIGNATURE
        PAGES FOR INVESTORS TO FOLLOW]

      

        Signature
          Page to the Securities Purchase Agreement

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              MARION
                LYNTON

               

            
	
              By:

            	
              /s/
                Steve Napoli

            
	
              Name:

            	
              Steve
                Napoli

            
	
              Title:

            	
              Agent/Advisor

            
	
              Investment
                Amount:

            	
              $43,878.60

            
	
              Tax
                ID No.:

            	
               

            
	
               

            
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Ardsley
                Partners

            
	
              Street:

            	
              262
                Harbor Drive, 4th Floor

            
	
              City/State/Zip:

            	
              Stamford,
                CT 06902

            
	
              Attention:

            	
              Steve
                Napoli

            
	
              Tel:

            	
              (203)
                564-4230 

            
	
              Fax:

            	
              (203)
                355-0715

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	
               

            
	
              Street:

            	
               

            
	
              City/State/Zip:

            	
               

            
	
              Attention:

            	
               

            
	
              Tel:

            	
               

            
	
              Fax:

            	
               

            

    

    
       

    

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          1 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              ARDSLEY
                PARTNERS FUND II, LP

               

            
	
              By:

            	
              /s/
                Steve Napoli

            
	
              Name:

            	
              Steve
                Napoli

            
	
              Title:

            	
              Agent/Advisor

            
	
              Investment
                Amount:

            	
              $1,708,956

            
	
              Tax
                ID No.:

            	
              13-3476175

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Ardsley
                Partners

            
	
              Street:

            	
              262
                Harbor Drive, 4th Floor

            
	
              City/State/Zip:

            	
              Stamford,
                CT 06902

            
	
              Attention:

            	
              Steve
                Napoli

            
	
              Tel:

            	
              (203)
                564-4230 

            
	
              Fax:

            	
              (203)
                355-0715

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          2 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              ARDSLEY
                OFFSHORE FUND, LTD

               

            
	
              By:

            	
              /s/
                Steve Napoli

            
	
              Name:

            	
              Steve
                Napoli

            
	
              Title:

            	
              Agent/Advisor

            
	
              Investment
                Amount:

            	
              $1,108,512

            
	
              Tax
                ID No.:

            	
              n/a

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Ardsley
                Partners

            
	
              Street:

            	
              262
                Harbor Drive, 4th Floor

            
	
              City/State/Zip:

            	
              Stamford,
                CT 06902

            
	
              Attention:

            	
              Steve
                Napoli

            
	
              Tel:

            	
              (203)
                564-4230 

            
	
              Fax:

            	
              (203)
                355-0715

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          3 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              ARDSLEY
                PARTNERS INSTITUTIONAL FUND, LP

               

            
	
              By:

            	
              /s/
                Steve Napoli

            
	
              Name:

            	
              Steve
                Napoli

            
	
              Title:

            	
              Agent/Advisor

            
	
              Investment
                Amount:

            	
              $1,139,304

            
	
              Tax
                ID No.:

            	
              061-1399855

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Ardsley
                Partners

            
	
              Street:

            	
              262
                Harbor Drive, 4th Floor

            
	
              City/State/Zip:

            	
              Stamford,
                CT 06902

            
	
              Attention:

            	
              Steve
                Napoli

            
	
              Tel:

            	
              (203)
                564-4230 

            
	
              Fax:

            	
              (203)
                355-0715

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          4 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              SPECIAL
                SITUATIONS PRIVATE EQUITY FUND, L.P.

               

            
	
              By:

            	
              /s/David
                Greenhouse

            
	
              Name:

            	
              David
                Greenhouse

            
	
              Title:

            	
              Managing
                Director

            
	
              Investment
                Amount:

            	
              $700,000

            
	
              Tax
                ID No.:

            	
              13-3916551

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Special
                Situations Private Equity Fund, L.P.

            
	
              Street:

            	
              527
                Madison Avenue, Suite 2600

            
	
              City/State/Zip:

            	
              New
                York, New York 10022 

            
	
              Attention:

            	
              Marianne
                Hicks/David Greenhouse

            
	
              Tel:

            	
              (631)
                725-3779 ext 3

            
	
              Fax:

            	
              (631)
                319-6670

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          5 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              SPECIAL
                SITUATIONS CAYMAN FUND, L.P.

               

            
	
              By:

            	
              /s/David
                Greenhouse

            
	
              Name:

            	
              David
                Greenhouse

            
	
              Title:

            	
              Managing
                Director

            
	
              Investment
                Amount:

            	
              $1,300,000

            
	
              Tax
                ID No.:

            	
              98-0132442

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Special
                Situations Private Equity Fund, L.P.

            
	
              Street:

            	
              527
                Madison Avenue, Suite 2600

            
	
              City/State/Zip:

            	
              New
                York, New York 10022 

            
	
              Attention:

            	
              Marianne
                Hicks/David Greenhouse

            
	
              Tel:

            	
              (631)
                725-3779 ext 3

            
	
              Fax:

            	
              (631)
                319-6670

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          6 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              JAYHAWK
                PRIVATE EQUITY FUND, LP

               

            
	
              By:

            	
              /s/
                Michael D. Schmitz

            
	
              Name:

            	
              Michael
                D. Schmitz

            
	
              Title:

            	
              CFO
                of 6P of 6P

            
	
              Investment
                Amount:

            	
              $940,767.34

            
	
              Tax
                ID No.:

            	
              20-5004931

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Jayhawk
                Capital

            
	
              Street:

            	
              5410
                West 61st Place, Suite 100

            
	
              City/State/Zip:

            	
              Mission,
                KS 66205

            
	
              Attention:

            	
              Michael
                Schmitz

            
	
              Tel:

            	
              (913)
                642-2611

            
	
              Fax:

            	
              (913)
                642-8661

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          7 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              JAYHAWK
                PRIVATE EQUITY CO-INVEST FUND, LP

               

            
	
              By:

            	
              /s/
                Michael D. Schmitz

            
	
              Name:

            	
              Michael
                D. Schmitz

            
	
              Title:

            	
              CFO
                of 6P of 6P

            
	
              Investment
                Amount:

            	
              $59,232.66

            
	
              Tax
                ID No.:

            	
              20-5249125

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Jayhawk
                Capital

            
	
              Street:

            	
              5410
                West 61st Place, Suite 100

            
	
              City/State/Zip:

            	
              Mission,
                KS 66205

            
	
              Attention:

            	
              Michael
                Schmitz

            
	
              Tel:

            	
              (913)
                642-2611

            
	
              Fax:

            	
              (913)
                642-8661

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

    

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          8 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              BTG
                INVESTMENTS, LLC

               

            
	
              By:

            	
              /s/Gordon
                J. Roth

            
	
              Name:

            	
              Gordon
                J. Roth

            
	
              Title:

            	
              Manager

            
	
              Investment
                Amount:

            	
              $725,000

            
	
              Tax
                ID No.:

            	
              20-0306951

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              BTG
                Investments, LLC

            
	
              Street:

            	
              24
                Corporate Plaza

            
	
              City/State/Zip:

            	
              New
                port Beach, CA 92660

            
	
              Attention:

            	
              Gordon
                J. Roth

            
	
              Tel:

            	
              (949)
                720-5774

            
	
              Fax:

            	
              (949)
                720-7241

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          9 of
          19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above

    

    
      	
              NAME
                OF INVESTOR

               

              MIDSOUTH
                INVESTOR FUND LP

               

            
	
              By:

            	
              /s/
                Lyman O. Heidtke

            
	
              Name:

            	
              Lyman
                O. Heidtke

            
	
              Title:

            	
              General
                Partner

            
	
              Investment
                Amount:

            	
              $250,000

            
	
              Tax
                ID No.:

            	
              58-2566576

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Lyman
                O. Heidtke

            
	
              Street:

            	
              201
                4th
                Avenue, North Suit 1950

            
	
              City/State/Zip:

            	
              Nashville,
                TN 37219

            
	
              Attention:

            	
              Lyman
                O. Heidtke

            
	
              Tel:

            	
              (615)
                254-0992

            
	
              Fax:

            	
              (615)
                254-1603

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          10
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              STRAUS
                PARTNERS, LP 

               

            
	
              By:

            	
              /s/
                Andrew Marks

            
	
              Name:

            	
              Andrew
                Marks

            
	
              Title:

            	
              CFO

            
	
              Investment
                Amount:

            	
              $300,000

            
	
              Tax
                ID No.:

            	
              13-3976076

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Straus
                Asset Management

            
	
              Street:

            	
              320
                Park Avenue, 10th Floor

            
	
              City/State/Zip:

            	
              New
                York, NY 10022

            
	
              Attention:

            	
              Andrew
                Marks

            
	
              Tel:

            	
              (212)
                415-7274

            
	
              Fax:

            	
              (212)
                415-7256

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          11
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              STRAUS-GEPT
                PARTNERS, LP

               

            
	
              By:

            	
              /s/
                Andrew Marks

            
	
              Name:

            	
              Andrew
                Marks

            
	
              Title:

            	
              CFO

            
	
              Investment
                Amount:

            	
              $200,000

            
	
              Tax
                ID No.:

            	
              13-4054804

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Straus
                Asset Management

            
	
              Street:

            	
              320
                Park Avenue, 10th Floor

            
	
              City/State/Zip:

            	
              New
                York, NY 10022

            
	
              Attention:

            	
              Andrew
                Marks

            
	
              Tel:

            	
              (212)
                415-7274

            
	
              Fax:

            	
              (212)
                415-7256

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

    

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          12
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              ANDREW
                PARKo

               

            
	
              By:

            	
              /s/
                Andrew Park

            
	
              Name:

            	
              Andrew
                Park    

            
	
              Title:

            	 
	
              Investment
                Amount:

            	
              $75,000

            
	
              Tax
                ID No.:

            	 
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Spyglass
                Capital Partners, LLC

            
	
              Street:

            	
              201
                Post Street, 11th Floor

            
	
              City/State/Zip:

            	
              San
                Francisco, CA 94108

            
	
              Attention:

            	
              Andrew
                Park

            
	
              Tel:

            	
              (415)
                394-3409

            
	
              Fax:

            	
              (415)
                946-3555

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

     

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          13
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              BAI
                YE FENG

               

            
	
              By:

            	
              /s/
                Bai Ye Feng

            
	
              Name:

            	
              Bai
                Ye Feng

            
	
              Title:

            	 
	
              Investment
                Amount:

            	
              $450,000

            
	
              Tax
                ID No.:

            	 
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	 
	
              Street:

            	
              86
                Wellington Street

            
	
              City/State/Zip:

            	
              Central
                Hong Kong

            
	
              Attention:

            	
              Bai
                Ye Feng

            
	
              Tel:

            	
              +
                852-975-81851

            
	
              Fax:

            	
              +
                852-301-58525

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

    

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          14
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              RICHARD
                D. SQUIRES

               

            
	
              By:

            	
              /s/
                Richard D. Squires

            
	
              Name:

            	
              Richard
                D. Squires

            
	
              Title:

            	 
	
              Investment
                Amount:

            	
              $100,000

            
	
              Tax
                ID No.:

            	 
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	 
	
              Street:

            	
              100
                Crescent Court, Suite 450

            
	
              City/State/Zip:

            	
              Dallas,
                TX 75201 

            
	
              Attention:

            	
              Richard
                Squires

            
	
              Tel:

            	
              (214)
                270-2150

            
	
              Fax:

            	
              (214)
                468-8870

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

    

    
      
        Investor
          Signature Page to the Securities Purchase Agreement

      

      
        Page
          15
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              COOPER
                FAMILY TRUST DTD 08/01/04

               

            
	
              By:

            	
              /s/Chad
                Cooper

            
	
              Name:

            	
              Chad
                Cooper

            
	
              Title:

            	
              Co-Trustee

            
	
              Investment
                Amount:

            	
              $25,000

            
	
              Tax
                ID No.:

            	 
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Roth
                Capital Partners, LLC

            
	
              Street:

            	
              24
                Corporate Plaza

            
	
              City/State/Zip:

            	
              New
                Port Beach, CA 92660

            
	
              Attention:

            	
              Chad
                Cooper

            
	
              Tel:

            	
              (949)
                533-5380

            
	
              Fax:

            	 
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

      Investor
        Signature Page to the Securities Purchase Agreement

    

    
      
        Page
          16
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

    

    
      	
              NAME
                OF INVESTOR

               

              CHESTNUT
                RIDGE PARTNERS, LP

               

            
	
              By:

            	
              /s/
                Kenneth Holz

            
	
              Name:

            	
              Kenneth
                Holz

            
	
              Title:

            	
              CFO

            
	
              Investment
                Amount:

            	
              $275,000

            
	
              Tax
                ID No.:

            	
              03-0404154

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              Chestnut
                Ridge, LP

            
	
              Street:

            	
              50
                Tice Boulevard

            
	
              City/State/Zip:

            	
              Woodcliff
                Lake, NJ 07677

            
	
              Attention:

            	
              Kenneth
                Holtz

            
	
              Tel:

            	
              (201)
                802-9494

            
	
              Fax:

            	
              (201)
                802-9450

            
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	
              c/o
                Goldman Sachs & Co

            
	
              Street:

            	
              1
                New York Plaza, 44th
                Floor

            
	
              City/State/Zip:

            	
              New
                York, New York 10004

            
	
              Attention:

            	
              Simba
                Mhungu

            
	
              Tel:

            	
              (212)
                902-8059

            
	
              Fax:

            	
               

            

    

    
       

      Investor
        Signature Page to the Securities Purchase Agreement

    

    
      
        Page
          17
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              CORONADO
                CAPITAL PARTNERS, LP

               

            
	
              By:

            	
              /s/
                Zach Easton

            
	
              Name:

            	
              Zach
                Easton

            
	
              Title:

            	
              President

            
	
              Investment
                Amount:

            	
              $250,000

            
	
              Tax
                ID No.:

            	
              20-2427088

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              MS
                Howells

            
	
              Street:

            	
              20555
                North Pima Road, #100

            
	
              City/State/Zip:

            	
              Scottsdale,
                AZ 85255

            
	
              Attention:

            	
              Zach
                Easton

            
	
              Tel:

            	
              (408)
                415-0093

            
	
              Fax:

            	 
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	
              c/o
                Jefferies & Co

            
	
              Street:

            	
              FAO
                Coronado Capital Partners

              20555
                N. Pine Road , #100

            
	
              City/State/Zip:

            	
              Scottsdale,
                AZ 85255

            
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

      Investor
        Signature Page to the Securities Purchase Agreement

    

    
      
        Page
          18
          of 19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESSWHEREOF, the parties hereto have caused the Securities Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    
      	
              NAME
                OF INVESTOR

               

              SEI
                PRIVATE TRUST Co FAO

               

              The
                JM SMUCKER CO MASTER TRUST

               

            
	
              By:

            	
              /s/
                Zach Easton

            
	
              Name:

            	
              Zach
                Easton

            
	
              Title:

            	
              President,
                Coronado Capital Management

            
	
              Investment
                Amount:

            	
              $350,000

            
	
              Tax
                ID No.:

            	
              23-3060382

            
	 
	
              ADDRESS
                FOR NOTICE

               

            
	
              c/o:

            	
              SPTC
                Specialized Trust Admin Services

            
	
              Street:

            	
              1
                Freedom Valley Drive

            
	
              City/State/Zip:

            	
              Oaks,
                PA 19456

            
	
              Attention:

            	
              Suzanne
                Rokosny

            
	
              Tel:

            	 
	
              Fax:

            	 
	
               

              DELIVERY
                INSTRUCTIONS

                 
                (if different from above)

               

            
	
              c/o:

            	 
	
              Street:

            	 
	
              City/State/Zip:

            	 
	
              Attention:

            	 
	
              Tel:

            	 
	
              Fax:

            	 

    

    
       

      Investor
        Signature Page to the Securities Purchase Agreement

    

    
      Page
        19
        of 19

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