Document:

EXHIBIT 10.1

                      INVESTMENT MANAGEMENT TRUST AGREEMENT

          This Agreement is made as of ___________, 2006 by and between
ChinaGrowth South Acquisition Corporation (the "Company") and American Stock
Transfer & Trust Company ("Trustee").

          WHEREAS, the Company's Registration Statement on Form F-1, No. 333-
________ ("Registration Statement"), for its initial public offering of
securities ("IPO") has been declared effective as of the date hereof by the
Securities and Exchange Commission ("Effective Date"); and

          WHEREAS, Morgan Joseph & Co. Inc. ("Morgan Joseph") is acting as the
representative of the underwriters in the IPO; and

          WHEREAS, as described in the Company's Registration Statement, and in
accordance with the Company's Articles and Memorandum of Association,
$34,200,000 of the net proceeds of the IPO and sale of founding director
warrants including $720,000 in deferred underwriter's discounts and commissions
($39,330,000 if the underwriters' over-allotment option is exercised in full)
will be delivered to the Trustee to be deposited and held in a trust account for
the benefit of the Company and the holders of the Company's Ordinary Shares
issued in the IPO and in the event the units are registered in Colorado,
pursuant to Section 11-51-302(6) of the Colorado Revised Statutes, a copy of
which statute is attached hereto and made a part hereof. The amount to be
delivered to the Trustee will be referred to herein as the "Property," the
shareholders for whose benefit the Trustee shall hold the Property will be
referred to as the "Public Shareholders," and the Public Shareholders and the
Company will be referred to together as the "Beneficiaries"); and

          WHEREAS, the Company and the Trustee desire to enter into this
Agreement to set forth the terms and conditions pursuant to which the Trustee
shall hold the Property.

          IT IS AGREED:

1. AGREEMENTS AND COVENANTS OF TRUSTEE. The Trustee hereby agrees and covenants
to:

          (a) Hold the Property in trust for the Beneficiaries in accordance
with the terms of this Agreement, including the terms of Section 11-51-302(6) of
the Colorado Statute, in a segregated trust account ("Trust Account")
established by the Trustee at a branch of JPMorgan Chase NY Bank selected by the
Trustee;

          (b) Manage, supervise and administer the Trust Account subject to the
terms and conditions set forth herein;

          (c) In a timely manner, upon the instruction of the Company, to invest
and reinvest the Property in any "Government Security" within the meaning of
Section 2(a)(16) of the Investment Company Act of 1940 with a maturity of 180
days or less, or in money market funds meeting certain conditions under Rule
2a-7 promulgated under the Investment Company Act of 1940, as amended;

          (d) Collect and receive, when due, all principal and income arising
from the Property, which shall become part of the "Property," as such term is
used herein;

          (e) Notify the Company and Morgan Joseph of all communications
received by it with respect to any Property requiring action by the Company;

          (f) Supply any necessary information or documents as may be requested
by the Company in connection with the Company's preparation of the tax returns
for the Trust Account;

          (g) Participate in any plan or proceeding for protecting or enforcing
any right or interest arising from the Property if, as and when instructed by
the Company and/or Morgan Joseph to do so;

<PAGE>

          (h) Render to the Company and to Morgan Joseph, and to such other
person as the Company may instruct, monthly written statements of the activities
of and amounts in the Trust Account reflecting all receipts and disbursements of
the Trust Account;

          (i) Upon written instructions from the Company, deliver to the
Company, on a quarterly basis, from the Property in the Trust Account, an amount
equal to the taxes payable by the Company, if any, relating to interest earned
on the Property; and

          (j) Commence liquidation of the Trust Account promptly after receipt
of and only in accordance with the terms of a letter ("Termination Letter"), in
a form substantially similar to that attached hereto as either Exhibit A or
Exhibit B, signed on behalf of the Company by its Chief Executive Officer or
Chairman of the Board and affirmed by its entire Board of Directors, and
complete the liquidation of the Trust Account and distribute the Property in the
Trust Account only as directed in the Termination Letter and the other documents
referred to therein; PROVIDED, HOWEVER, that in the event that a Termination
Letter has not been received by [DATE/18 MONTHS] (or the date that is the six
month anniversary of such date, in the event that a letter of intent, agreement
in principle or definitive agreement has been executed prior to such date in
connection with a Business Combination (as defined in the Termination Letter
attached hereto as Exhibit A) that has not been consummated by [DATE/24
MONTHS]), the Trust Account shall be liquidated in accordance with the
procedures set forth in the Termination Letter attached as Exhibit B to the
shareholders of record on the record date; PROVIDED, FURTHER, that the record
date shall be within ten (10) days of [DATE/18 MONTHS] (or the date that is the
six month anniversary of such date, in the event that a letter of intent,
agreement in principle or definitive agreement has been executed prior to such
date in connection with a Business Combination that has not been consummated by
[DATE/24 MONTHS]), or as soon thereafter as is practicable.

2. AGREEMENTS AND COVENANTS OF THE COMPANY. The Company hereby agrees and
covenants to:

          (a) Give all instructions to the Trustee hereunder in writing, signed
by the Company's Chief Executive Officer or Chairman of the Board. In addition,
except with respect to its duties under paragraph 1(j) above, the Trustee shall
be entitled to rely on, and shall be protected in relying on, any verbal or
telephonic advice or instruction which it in good faith believes to be given by
any one of the persons authorized above to give written instructions, provided
that the Company shall promptly confirm such instructions in writing;

          (b) Hold the Trustee harmless and indemnify the Trustee from and
against any and all expenses, including reasonable counsel fees and
disbursements, or loss suffered by the Trustee in connection with any action,
suit or other proceeding brought against the Trustee involving any claim, or in
connection with any claim or demand which in any way arises out of or relates to
this Agreement, the services of the Trustee hereunder, or the Property or any
income earned from investment of the Property, except for expenses and losses
resulting from the Trustee's gross negligence or willful misconduct. Promptly
after the receipt by the Trustee of notice of demand or claim or the
commencement of any action, suit or proceeding, pursuant to which the Trustee
intends to seek indemnification under this paragraph, it shall notify the
Company in writing of such claim (hereinafter referred to as the "Indemnified
Claim"). The Company shall have the right to conduct and manage the defense
against such Indemnified Claim, provided, that the Company shall obtain the
consent of the Trustee with respect to the selection of counsel, which consent
shall not be unreasonably withheld. The Trustee may participate in such action
with its own counsel at its own expense;

          (c) Pay the Trustee an initial acceptance fee of $1,000 and an annual
fee of $3,000 (it being expressly understood that the Property shall not be used
to pay such fee). The Company shall pay the Trustee the initial acceptance fee
and first year's fee at the consummation of the IPO and thereafter on the
anniversary of the Effective Date. The Trustee shall refund to the Company the
fee (on a pro rata basis) with respect to any period after the liquidation of
the Trust Fund. The Company shall not be responsible for any other fees or
charges of the Trustee except as may be provided in paragraph 2(b) hereof (it
being expressly understood that the Property shall not be used to make any
payments to the Trustee under such paragraph);

<PAGE>

          (d) Provide to the Trustee any letter of intent, agreement in
principle or definitive agreement that is executed prior to [DATE/18 MONTHS] in
connection with a Business Combination; and

          (e) In connection with any vote of the Company's shareholders
regarding a Business Combination, provide to the Trustee an affidavit or
certificate of a firm regularly engaged in the business of soliciting proxies
and tabulating shareholder votes (which firm may be the Trustee) verifying the
vote of the Company's shareholders regarding such Business Combination.

3. LIMITATIONS OF LIABILITY. The Trustee shall have no responsibility or
liability to:

          (a) Take any action with respect to the Property, other than as
directed in paragraph 1 hereof and the Trustee shall have no liability to any
party except for liability arising out of its own gross negligence or willful
misconduct;

          (b) Institute any proceeding for the collection of any principal and
income arising from, or institute, appear in or defend any proceeding of any
kind with respect to, any of the Property unless and until it shall have
received instructions from the Company given as provided herein to do so and the
Company shall have advanced or guaranteed to it funds sufficient to pay any
expenses incident thereto;

          (c) Change the investment of any Property, other than in compliance
with paragraph 1(c);

          (d) Refund any depreciation in principal of any Property;

          (e) Assume that the authority of any person designated by the Company
to give instructions hereunder shall not be continuing unless provided otherwise
in such designation, or unless the Company shall have delivered a written
revocation of such authority to the Trustee;

          (f) The other parties hereto or to anyone else for any action taken or
omitted by it, or any action suffered by it to be taken or omitted, in good
faith and in the exercise of its own best judgment, except for its gross
negligence or willful misconduct. The Trustee may rely conclusively and shall be
protected in acting upon any order, notice, demand, certificate, opinion or
advice of counsel (including counsel chosen by the Trustee), statement,
instrument, report or other paper or document (not only as to its due execution
and the validity and effectiveness of its provisions, but also as to the truth
and acceptability of any information therein contained) which is believed by the
Trustee, in good faith, to be genuine and to be signed or presented by the
proper person or persons. The Trustee shall not be bound by any notice or
demand, or any waiver, modification, termination or rescission of this agreement
or any of the terms hereof, unless evidenced by a written instrument delivered
to the Trustee signed by the proper party or parties and, if the duties or
rights of the Trustee are affected, unless it shall give its prior written
consent thereto;

          (g) Verify the correctness of the information set forth in the
Registration Statement or to confirm or assure that any acquisition made by the
Company or any other action taken by it is as contemplated by the Registration
Statement; and

          (h) Subject to the requirements of Section 1(i) of the Trust
Agreement, pay any taxes on behalf of the Trust Account to any governmental
entity or taxing authority.

4. TERMINATION. This Agreement shall terminate as follows:

          (a) If the Trustee gives written notice to the Company that it desires
to resign under this Agreement, the Company shall use its reasonable efforts to
locate a successor trustee. At such time that the Company notifies the Trustee
that a successor trustee has been appointed by the Company and has agreed to
become subject to the terms of this Agreement, the Trustee shall transfer the
management of the Trust Account to the successor trustee, including but not
limited to the transfer of copies of the reports and statements relating to the
Trust Account, whereupon this Agreement shall terminate; provided, however,
that, in the event that the Company does not locate a successor trustee within
ninety days of receipt of the resignation

<PAGE>

notice from the Trustee, the Trustee may submit an application to have the
Property deposited with the United States District Court for the Southern
District of New York and upon such deposit, the Trustee shall be immune from any
liability whatsoever that arises due to any actions or omissions to act by any
party after such deposit; or

          (b) At such time that the Trustee has completed the liquidation of the
Trust Account in accordance with the provisions of paragraph 1(j) hereof, and
distributed the Property in accordance with the provisions of the Termination
Letter, this Agreement shall terminate except with respect to Paragraph 2(b).

5. MISCELLANEOUS.

          (a) The Company and the Trustee each acknowledge that the Trustee will
follow the security procedures set forth below with respect to funds transferred
from the Trust Account. Upon receipt of written instructions, the Trustee will
confirm such instructions with an Authorized Individual at an Authorized
Telephone Number listed on the attached Exhibit C. The Company and the Trustee
will each restrict access to confidential information relating to such security
procedures to authorized persons. Each party must notify the other party
immediately if it has reason to believe unauthorized persons may have obtained
access to such information, or of any change in its authorized personnel. In
executing funds transfers, the Trustee will rely upon account numbers or other
identifying numbers of a beneficiary, beneficiary's bank or intermediary bank,
rather than names. The Trustee shall not be liable for any loss, liability or
expense resulting from any error in an account number or other identifying
number, provided it has accurately transmitted the numbers provided.

          (b) This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York, without giving effect to
conflict of laws. It may be executed in several counterparts, each one of which
shall constitute an original, and together shall constitute but one instrument.

          (c) This Agreement contains the entire agreement and understanding of
the parties hereto with respect to the subject matter hereof. This Agreement or
any provision hereof may only be changed, amended or modified by a writing
signed by each of the parties hereto; provided, however, that no such change,
amendment or modification may be made without the prior written consent of
Morgan Joseph. As to any claim, cross-claim or counterclaim in any way relating
to this Agreement, each party waives the right to trial by jury.

          (d) The parties hereto consent to the jurisdiction and venue of any
state or federal court located in the City of New York for purposes of resolving
any disputes hereunder.

          (e) Any notice, consent or request to be given in connection with any
of the terms or provisions of this Agreement shall be in writing and shall be
sent by express mail or similar private courier service, by certified mail
(return receipt requested), by hand delivery or by facsimile transmission:

if to the Trustee, to:

American Stock Transfer
& Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
Attn: Herb Lemmer, Vice President
Fax No.: 718-331-1852

if to the Company, to:

ChinaGrowth South Acquisition Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park

<PAGE>

Shanghai, China 201417
Attn: Michael Zhang, Chief Executive Officer
Fax No.: (86) 5744-8338

in either case with a copy to:

Ellenoff Grossman & Schole LLP
370 Lexington Avenue, 19th Floor
New York, New York 10017
Attn: Douglas S. Ellenoff, Esq.
Fax No.: (212) 370-7889

and

Morgan Joseph & Co. Inc.
600 Fifth Avenue, 19th Floor
New York, New York 10020
Attn: Dennis Galgano
Fax No.: (212) 218-3760

and

DLA Piper Rudnick Gray Cary US LLP
1251 Avenue of the Americas
New York, New York 10020-1104
Attn: Bill Haddad, Esq.
Fax No.: (212) 835-6001

          (f) This Agreement may not be assigned by the Trustee without the
prior written consent of the Company and Morgan Joseph.

          (g) Each of the Trustee and the Company hereby represents that it has
the full right and power and has been duly authorized to enter into this
Agreement and to perform its respective obligations as contemplated hereunder.
The Trustee acknowledges and agrees that it shall not make any claims or proceed
against the Trust Account, including by way of set-off, and shall not be
entitled to any funds in the Trust Account under any circumstance.

<PAGE>

 IN WITNESS WHEREOF, the parties have duly executed this Investment Management
Trust Agreement as of the date first written above.

                               AMERICAN STOCK TRANSFER & TRUST
                                COMPANY, as Trustee
                               By:
                                    --------------------------------------------
                                    Name:
                                    Title:

                               CHINAGROWTH SOUTH ACQUISITION CORPORATION
                               By:
                                    --------------------------------------------
                                    Name:
                                    Title:

<PAGE>

EXHIBIT A
                             [LETTERHEAD OF COMPANY]
[INSERT DATE]
American Stock Transfer
  & Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
Attn: Herb Lemmer

              Re:  TRUST ACCOUNT NO. [              ] TERMINATION LETTER
Gentlemen:

          Pursuant to paragraph 1(j) of the Investment Management Trust
Agreement between ChinaGrowth South Acquisition Corporation ("Company") and
American Stock Transfer & Trust Company ("Trustee"), dated as of ________, 200_
("Trust Agreement"), this is to advise you that the Company has entered into an
agreement ("Business Agreement") with _____________________ ("Target Business")
to consummate a business combination with Target Business ("Business
Combination") on or about [insert date]. The Company shall notify you at least
48 hours in advance of the actual date of the consummation of the Business
Combination ("Consummation Date").

          In accordance with paragraph ___ of the Amended and Restated Articles
and Memorandum of Association of the Company, the Business Combination has been
approved by the shareholders of the Company and by the Public Shareholders
holding a majority of the IPO Shares, and Public Shareholders holding less than
20% of the IPO Shares have voted against the Business Combination and given
notice of exercise of their conversion rights described in paragraph __ of the
Amended and Restated Articles and Memorandum of Association of the Company.
Pursuant to Section 2(e) of the Trust Agreement, we are providing you with [an
affidavit][a certificate] of _________, which verifies the vote of the Company's
shareholders in connection with the Business Combination. In accordance with the
terms of the Trust Agreement, we hereby authorize you to commence liquidation of
the Trust Account to the effect that, on the Consummation Date, all of funds
held in the Trust Account will be immediately available for transfer to the
account or accounts that the Company shall direct on the Consummation Date.

          On the Consummation Date (i) counsel for the Company shall deliver to
you written notification that (a) the Business Combination has been consummated
and (b) the provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado
Statute have been met, and (ii) the Company shall deliver to you written
instructions with respect to the transfer of the funds held in the Trust Account
("Instruction Letter"). You are hereby directed and authorized to transfer the
funds held in the Trust Account immediately upon your receipt of the counsel's
letter and the Instruction Letter, in accordance with the terms of the
Instruction Letter. In the event that certain deposits held in the Trust Account
may not be liquidated by the Consummation Date without penalty, you will notify
the Company of the same and the Company shall direct you as to whether such
funds should remain in the Trust Account and distributed after the Consummation
Date to the Company. Upon the distribution of all the funds in the Trust Account
pursuant to the terms hereof, the Trust Agreement shall be terminated.

          In the event that the Business Combination is not consummated on the
Consummation Date described in the notice thereof and we have not notified you
on or before the original Consummation Date of a new Consummation Date, then the
funds held in the Trust Account shall be reinvested as provided in the Trust
Agreement on the business day immediately following the Consummation Date as set
forth in the notice.

<PAGE>

                                    Very truly yours,

                                    CHINAGROWTH SOUTH
                                    ACQUISITION CORPORATION

                                    By:
                                         -------------------------------------
                                         Name:
                                         Title:

                                     AFFIRMED:

                                         Global Vestor Capital Partners LLC

                                         -------------------------------------
                                         Name:
                                         Title:

                                         -------------------------------------
                                         Name:
                                         Title:

                                         Chum Capital Group Limited

                                         -------------------------------------
                                         Name:
                                         Title:

                                         Guorun Group Limited

                                         -------------------------------------
                                         Name:
                                         Title:

                                         Venture Link Assets Limited

                                         -------------------------------------
                                         Name:
                                         Title:

<PAGE>

EXHIBIT B
                             [LETTERHEAD OF COMPANY]

[INSERT DATE]
American Stock Transfer
  & Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
Attn: Herb Lemmer

              Re:  TRUST ACCOUNT NO. [           ] TERMINATION LETTER
Gentlemen:

          Pursuant to paragraph 1(j) of the Investment Management Trust
Agreement between ChinaGrowth South Acquisition Corporation ("Company") and
American Stock Transfer & Trust Company dated as of May __, 2006 ("Trust
Agreement"), this is to advise you that the Board of Directors of the Company
has voted to dissolve and liquidate the Company. Attached hereto is a copy of
the minutes of the meeting of the Board of Directors of the Company relating
thereto, certified by the Secretary of the Company as true and correct and in
full force and effect.

          In accordance with the terms of the Trust Agreement, we hereby (a)
certify to you that the provisions of Section 11-51-302(6) and Rule 51-3.4 of
the Colorado Statute have been met and (b) authorize you, to commence
liquidation of the Trust Account. In connection with this liquidation, you are
hereby authorized to establish a record date for the purposes of determining the
shareholders of record entitled to receive their per share portion of the Trust
Account. The record date shall be within ten (10) days of the liquidation date,
or as soon thereafter as is practicable. You will notify the Company in writing
as to when all of the funds in the Trust Account will be available for immediate
transfer ("Transfer Date") in accordance with the terms of the Trust Agreement
and the Articles and Memorandum of Association of the Company. You shall
commence distribution of such funds in accordance with the terms of the Trust
Agreement and the Articles and Memorandum of Association of the Company and you
shall oversee the distribution of the funds. Upon the payment of all the funds
in the Trust Account, the Trust Agreement shall be terminated.

                                          Very truly yours,

                                          CHINAGROWTH SOUTH
                                          ACQUISITION CORPORATION

                                          By:
                                             -----------------------------------
                                             Name:
                                             Title:

<PAGE>

                                   AFFIRMED:

                                   Global Vestor Capital Partners LLC

                                   --------------------------------------------
                                   Name:
                                   Title:

                                   --------------------------------------------
                                   Name:
                                   Title:

                                   Chum Capital Group Limited

                                   --------------------------------------------
                                   Name:
                                   Title:

                                   Guorun Group Limited

                                   --------------------------------------------
                                   Name:
                                   Title:

                                   Venture Link Assets Limited

                                   --------------------------------------------
                                   Name:
                                   Title:

<PAGE>

EXHIBIT C

AUTHORIZED INDIVIDUAL(S)                                    AUTHORIZED
FOR TELEPHONE CALL BACK                                     TELEPHONE NUMBER(S)
-----------------------------------------                   --------------------

COMPANY:

ChinaGrowth South Acquisition Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417                                      21-5744-8336

Attn: Michael Zhang, Chief Executive
Officer

TRUSTEE:

American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10004

Attn: Herb Lemmer, Vice President                           (718) 921-8209EXHIBIT 10.2

                           SECURITIES ESCROW AGREEMENT

     SECURITIES ESCROW AGREEMENT, dated as of _____ __, 2006 ("Agreement"), by
and among the parties listed under Existing Shareholders on Exhibit A hereto
(each an "Existing Shareholder" and collectively the "Existing Shareholders"),
CHINAGROWTH SOUTH ACQUISITION CORPORATION, a company organized under the laws of
the Cayman Islands ("the Company") and AMERICAN STOCK TRANSFER & TRUST COMPANY,
a New York corporation ("Escrow Agent").

          WHEREAS, the Company has entered into an Underwriting Agreement, dated
_________ __, 2006 ("Underwriting Agreement"), with Morgan Joseph & Co. Inc.
acting as representative ("Representative") of the several underwriters
(collectively, the "Underwriters"), pursuant to which, among other matters, the
Underwriters have agreed to purchase 4,500,000 (5,175,000 if the over-allotment
is exercised) units ("Units") of the Company. Each Unit consists of one ordinary
share, par value $.001 per share ("Ordinary Share"), and one Warrant, each
Warrant to purchase one Ordinary Share, all as more fully described in the
Company's final Prospectus, dated ___________ __, 2006 ("Prospectus") comprising
part of the Company's Registration Statement on Form F-1 (File No.
333-_________) under the Securities Act of 1933, as amended ("Registration
Statement"), declared effective on __________ __, 2006 ("Effective Date").

          WHEREAS, the Existing Shareholders have agreed as a condition of the
sale of the Units to deposit its Ordinary Shares of the Company, as set forth
opposite its name in Exhibit A attached hereto (collectively "Escrow Shares"),
in escrow as hereinafter provided.

          WHEREAS, the Company has entered into a Warrant Purchase Agreement
with the Existing Shareholders, dated __________ __, 2006 ("Warrant Agreement"),
pursuant to which the Existing Shareholders have agreed to purchase 900,000
warrants (the "Founding Director Warrants") in a private placement transaction;

          WHEREAS, the Existing Shareholders have agreed as a condition of the
sale of the Founding Director Warrants to deposit its Founding Director
Warrants, as set forth opposite its name in Exhibit B attached hereto
(collectively "Escrow Warrants" and together with the Escrow Shares, "Escrow
Securities");

          WHEREAS, the Company and the Existing Shareholders desire that the
Escrow Agent accept the Escrow Securities, in escrow, to be held and disbursed
as hereinafter provided.

          IT IS AGREED:

     1. APPOINTMENT OF ESCROW AGENT. The Company and the Existing Shareholders
hereby appoint the Escrow Agent to act in accordance with and subject to the
terms of this Agreement and the Escrow Agent hereby accepts such appointment and
agrees to act in accordance with and subject to such terms.

     2. DEPOSIT OF ESCROW SECURITIES. On or before the Effective Date, the
Existing Shareholders shall deliver to the Escrow Agent a certificate
representing their respective Escrow Securities, to be held and disbursed
subject to the terms and conditions of this Agreement. The Existing Shareholders
acknowledge that the certificates representing their respective Escrow
Securities are legended to reflect the deposit of such Escrow Securities under
this Agreement.

<PAGE>

     3. DISBURSEMENT OF THE ESCROW SECURITIES.

          3.1 DISBURSEMENT OF THE ESCROW SHARES. The Escrow Agent shall hold the
Escrow Shares until one year from the date of consummation of a Business
Combination (as such term is defined in the Registration Statement) ("Escrow
Period"), on which date it shall, upon written instructions from an Existing
Shareholder, disburse Escrow Shares to such Existing Shareholder; provided,
however, that if the Escrow Agent is notified by the Company pursuant to Section
6.7 hereof that the Company is being liquidated at any time during the Escrow
Period, then immediately prior to the effectiveness of such liquidation, the
Escrow Agent shall promptly destroy the certificates representing the Escrow
Shares and the Escrow Shares shall no longer be considered issued and
outstanding securities of the Company. The Escrow Agent shall have no further
duties hereunder after the disbursement or destruction of the Escrow Shares in
accordance with this Section 3.1.

          3.2 DISBURSEMENT OF THE ESCROW WARRANTS. The Escrow Agent shall hold
the Escrow Warrants until such time that the Company consummates a Business
Combination (as such term is defined in the Registration Statement); provided,
however, that if the Escrow Agent is notified by the Company pursuant to Section
6.7 hereof that the Company is being liquidated at any time during the Escrow
Period, then immediately prior to the effectiveness of such liquidation, the
Escrow Agent shall promptly destroy the certificates representing the Escrow
Warrants and the Escrow Warrants shall no longer be considered issued and
outstanding securities of the Company. The Escrow Agent shall have no further
duties hereunder after the disbursement or destruction of the Escrow Warrants in
accordance with this Section 3.2.

     4. RIGHTS OF EXISTING SHAREHOLDER IN ESCROW SHARES.

          4.1 VOTING RIGHTS AS A SHAREHOLDER. Subject to the terms of the
Insider Letter described in Section 4.4 hereof and except as herein provided,
the Existing Shareholders shall retain all of their rights as Shareholders of
the Company during the Escrow Period, including, without limitation, the right
to vote such shares.

          4.2 DIVIDENDS AND OTHER DISTRIBUTIONS IN RESPECT OF THE ESCROW SHARES.
During the Escrow Period, all dividends payable in cash with respect to the
Escrow Shares shall be paid to the Existing Shareholders, but all dividends
payable in shares or other non-cash property ("Non-Cash Dividends") shall be
delivered to the Escrow Agent to hold in accordance with the terms hereof. As
used herein, the term "Escrow Shares" shall be deemed to include the Non-Cash
Dividends distributed thereon, if any.

          4.3 RESTRICTIONS ON TRANSFER. During the Escrow Period, no sale,
transfer or other disposition may be made of any or all of the Escrow Securities
except (i) upon the dissolution and liquidation of an Existing Shareholder and
the distribution of assets to its partners; (ii) by gift to a immediate family
member of an Existing Shareholder's partners or to a trust, the beneficiary of
which is a partner of an Existing Shareholder or a member of the immediate
family of an Existing Shareholder's partners, (iii) by virtue of the laws of
descent and distribution upon death of any partner of an Existing Shareholder,
or (iv) pursuant to a qualified domestic relations order; provided, however,
that such permissive transfers may be implemented only upon the respective
transferee's written agreement to be bound by the terms and conditions of this
Agreement and of the Insider Letter signed by an Existing Shareholder
transferring the Escrow Securities. During the Escrow Period, the Existing
Shareholders shall not pledge or

<PAGE>

grant a security interest in the Escrow Securities or grant a security interest
in its rights under this Agreement.

          4.4 INSIDER LETTERS. The Existing Shareholders have executed a letter
agreement with the Representative and the Company, dated as indicated on Exhibit
A hereto, and which is filed as an exhibit to the Registration Statement
("Insider Letter"), respecting the rights and obligations of such Existing
Shareholders in certain events, including but not limited to the liquidation of
the Company.

     5. CONCERNING THE ESCROW AGENT.

          5.1 GOOD FAITH RELIANCE. The Escrow Agent shall not be liable for any
action taken or omitted by it in good faith and in the exercise of its own best
judgment, and may rely conclusively and shall be protected in acting upon any
order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained) which is believed by the Escrow Agent to be
genuine and to be signed or presented by the proper person or persons. The
Escrow Agent shall not be bound by any notice or demand, or any waiver,
modification, termination or rescission of this Agreement unless evidenced by a
writing delivered to the Escrow Agent signed by the proper party or parties and,
if the duties or rights of the Escrow Agent are affected, unless it shall have
given its prior written consent thereto.

          5.2 INDEMNIFICATION. The Escrow Agent shall be indemnified and held
harmless by the Company from and against any expenses, including counsel fees
and disbursements, or loss suffered by the Escrow Agent in connection with any
action, suit or other proceeding involving any claim which in any way, directly
or indirectly, arises out of or relates to this Agreement, the services of the
Escrow Agent hereunder, or the Escrow Securities held by it hereunder, other
than expenses or losses arising from the gross negligence or willful misconduct
of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice of
any demand or claim or the commencement of any action, suit or proceeding, the
Escrow Agent shall notify the other parties hereto in writing. In the event of
the receipt of such notice, the Escrow Agent, in its sole discretion, may
commence an action in the nature of interpleader in an appropriate court to
determine ownership or disposition of the Escrow Securities or it may deposit
the Escrow Securities with the clerk of any appropriate court or it may retain
the Escrow Securities pending receipt of a final, non-appealable order of a
court having jurisdiction over all of the parties hereto directing to whom and
under what circumstances the Escrow Securities are to be disbursed and
delivered. The provisions of this Section 5.2 shall survive in the event the
Escrow Agent resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

          5.3 COMPENSATION. The Escrow Agent shall be entitled to reasonable
compensation from the Company for all services rendered by it hereunder. The
Escrow Agent shall also be entitled to reimbursement from the Company for all
expenses paid or incurred by it in the administration of its duties hereunder
including, but not limited to, all counsel, advisors' and agents' fees and
disbursements and all taxes or other governmental charges.

          5.4 FURTHER ASSURANCES. From time to time on and after the date
hereof, the Company and the Existing Shareholders shall deliver or cause to be
delivered to the Escrow Agent such further documents and instruments and shall
do or cause to be done such further acts as the Escrow Agent shall reasonably
request to carry out more effectively the provisions and purposes of

<PAGE>

this Agreement, to evidence compliance herewith or to assure itself that it is
protected in acting hereunder.

          5.5 RESIGNATION. The Escrow Agent may resign at any time and be
discharged from its duties as escrow agent hereunder by its giving the other
parties hereto written notice and such resignation shall become effective as
hereinafter provided. Such resignation shall become effective at such time that
the Escrow Agent shall turn over to a successor escrow agent appointed by the
Company, the Escrow Securities held hereunder. If no new escrow agent is so
appointed within the 60 day period following the giving of such notice of
resignation, the Escrow Agent may deposit the Escrow Securities with any court
it reasonably deems appropriate.

          5.6 DISCHARGE OF ESCROW AGENT. The Escrow Agent shall resign and be
discharged from its duties as escrow agent hereunder if so requested in writing
at any time by the other parties hereto, jointly, provided, however, that such
resignation shall become effective only upon acceptance of appointment by a
successor escrow agent as provided in Section 5.5.

          5.7 LIABILITY. Notwithstanding anything herein to the contrary, the
Escrow Agent shall not be relieved from liability hereunder for its own gross
negligence or its own willful misconduct.

     6. MISCELLANEOUS.

          6.1 GOVERNING LAW. This Agreement shall for all purposes be deemed to
be made under and shall be construed in accordance with the laws of the State of
New York, without giving effect to conflicts of law principles that would result
in the application of the substantive laws of another jurisdiction.

          6.2 THIRD PARTY BENEFICIARIES. The Existing Shareholders hereby
acknowledge that the Underwriters are third party beneficiaries of this
Agreement and this Agreement may not be modified or changed without the prior
written consent of the Representative.

          6.3 ENTIRE AGREEMENT. This Agreement contains the entire agreement of
the parties hereto with respect to the subject matter hereof and, except as
expressly provided herein, may not be changed or modified except by an
instrument in writing signed by the party to the charged.

          6.4 HEADINGS. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation thereof.

          6.5 BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of the respective parties hereto and their legal representatives,
successors and assigns.

          6.6 NOTICES. Any notice or other communication required or which may
be given hereunder shall be in writing and either be delivered personally or be
mailed, certified or registered mail, or by private national courier service,
return receipt requested, postage prepaid, and shall be deemed given when so
delivered personally or, if mailed, two days after the date of mailing, as
follows:

<PAGE>

          If to the Company, to:

                    ChinaGrowth South Acquisition Corporation
                    1818 Canggong Road, Fengxian
                    Shanghai Chemical Industry Park
                    Shanghai, China 201417
                    Attn:    Michael Zhang, Chief Executive Officer

          If to an Existing Shareholder, to his address set forth in Exhibit A.

          and if to the Escrow Agent, to:

                   American Stock Transfer & Trust Company
                   59 Maiden Lane
                   Plaza Level
                   New York, New York 10038
                   Attn: Herb Lemmer, Vice President

          A copy of any notice sent hereunder shall be sent to:

                  Morgan Joseph & Co. Inc.
                  600 Fifth Avenue, 19th Floor
                  New York, New York 10020
                  Attn: Dennis Galgano
                  Fax No.: (212) 218-3760

          and:

                  DLA Piper Rudnick Gray Cary US LLP
                  1251 Avenue of the Americas
                  New York, New York 10020-1104
                  Attn: William Haddad, Esq.
                  Fax No.: (212) 835-6001

          and:

                 Ellenoff Grossman & Schole LLP
                 370 Lexington Avenue
                 New York, New York 10017
                 Attn: Douglas S. Ellenoff, Esq.
                 Fax No.: (212) 370-7889

          The parties may change the persons and addresses to which the notices
or other communications are to be sent by giving written notice to any such
change in the manner provided herein for giving notice.

          6.7 LIQUIDATION OF THE COMPANY. The Company shall give the Escrow
Agent written notification of the liquidation and dissolution of the Company in
the event that the Company fails to consummate a Business Combination within the
time period(s) specified in the Prospectus.

<PAGE>

          6.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN WITNESS WHEREOF, this Securities Escrow Agreement has been duly executed
by the parties hereto as of the date first above written.

                                       CHINAGROWTH SOUTH
                                         ACQUISITION CORPORATION

                                       By: ___________________________
                                           Name:
                                           Title:

                                       EXISTING SHAREHOLDERS:

                                       Global Vestor Capital Partners LLC

                                       By: ___________________________
                                           Name:
                                           Title:

                                       Chum Capital Group Limited

                                       By: ___________________________
                                           Name:
                                           Title:

                                       Guorun Group Limited

                                       By: ___________________________
                                           Name:
                                           Title:

                                       Venture Link Assets Limited

                                       By: ___________________________
                                           Name:
                                           Title:

                                       AMERICAN STOCK TRANSFER
                                       & TRUST COMPANY

                                       By: ___________________________
                                           Name:
                                           Title:

<PAGE>

                                    EXHIBIT A

Name and Address of                  Number         Share            Date of
Existing Shareholder               of Shares  Certificate Number  Insider Letter
--------------------               ---------  ------------------  --------------

Guorun Group Limited                270,000
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Venture Link Assets Limited         180,000
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Chum Capital Group Limited          337,500
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Global Vestor Capital Partners LLC  337,500
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

<PAGE>

                                    EXHIBIT B

                                                       Number of
Name and Address of                                Founding Director
Existing Shareholder                                   Warrants
--------------------                               -----------------

Guorun Group Limited                                   180,000
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Venture Link Assets Limited                            180,000
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Chum Capital Group Limited                             180,000
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Global Vestor Capital Partners LLC                     360,000
c/o ChinaGrowth South Acquisition
Corporation
1818 Canggong Road, Fengxian
Shanghai Chemical Industry Park
Shanghai, China 201417

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]