Document:

Unassociated Document

     

    EXECUTION COPY

     

    REDEMPTION
AGREEMENT

     

    THIS REDEMPTION AGREEMENT
(this “Agreement”) is
made and entered into as of February 1, 2011, by and among Feihe International
Inc., a Utah corporation (“Company”), and each of the
persons identified in the first column from the left of Schedule A attached
hereto (each a “Redeemed
Party” and collectively the “Redeemed
Parties”).

     

    WHEREAS, the Company and the
Redeemed Parties (in the case of Sequoia Capital US Growth Fund IV. L.P., its
predecessors) entered into or became a party through due assignment to that
certain subscription agreement, dated as of August 11, 2009 (the “Subscription Agreement”),
pursuant to which each Redeemed Party purchased or was assigned the number of
issued and outstanding shares of common stock, US$0.001 par value per share, of
the Company (the “Common
Stock”) set forth in the sixth column from the left of Schedule A attached
hereto, opposite the name of such Redeemed Party (such shares of Common Stock
collectively, the “Redemption
Shares”).

     

    WHEREAS, the Redeemed Parties
desire that the Company (or any of its designated subsidiaries, variable
interest entities or affiliates (each, a “Company Designee”)) purchase
and redeem all of the Redemption Shares; and

     

    WHEREAS, the Company desires
to purchase and redeem (directly or through a Company Designee) all of the
Redemption Shares from the Redeemed Parties on the terms and conditions
hereinafter set forth; and

     

    NOW, THEREFORE, in
consideration of the foregoing, of the mutual promises herein contained and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

     

    1.           Transactions and
Closing

     

    (a)           The
Transactions.  On each Closing Date (as defined below) and
subject to the terms and conditions set forth in this Agreement, each Redeemed
Party shall sell, assign, transfer and deliver to the Company (or any Company
Designee), and the Company (or such Company Designee) shall redeem and purchase
from such Redeemed Party, the number of Redemption Shares set forth in the
second to fifth columns, as applicable, from the left of Schedule A attached
hereto, opposite the name of such Redeemed Party.  In the event that
the Company (or any Company Designee), at any time when any Redemption Shares
remain issued and outstanding, changes the number of shares of Common Stock or
securities convertible or exchangeable into or exercisable for Common Stock
issued and outstanding as a result of a reclassification, stock split (including
a reverse stock split), stock dividend or distribution, recapitalization,
merger, issuer tender or exchange offer, or other similar transaction, the
number of Redemption Shares then outstanding shall be equitably
adjusted.

     

    (b)           Closing.

     

    (i)           Time and
Place.  The transactions contemplated hereunder shall be
consummated in four (4) closings (the “Closings”, and each a “Closing”).  The
Closings shall take place at the offices of Skadden, Arps, Slate, Meagher &
Flom LLP, 30th Floor, Tower 2, China World Trade Center, No. 1 Jianguomenwai
Avenue, Beijing, China at 9:00 AM Beijing time on dates selected by the Company
(each a “Closing Date”),
provided that (i) such
dates fall within 30 days after March 31, 2011, September 30, 2011, December 31,
2011 and March 31, 2012 respectively, and (ii) the Company shall have provided
written notice to each Redeemed Party of each Closing Date selected by the
Company at least three (3) business days prior to such date.  For the
avoidance of doubt, the first Closing shall occur on a date between March 31,
2011 and April 30, 2011; the second Closing shall occur between September 31,
2011 and October 30, 2011; the third Closing shall occur between December 31,
2011 and January 30, 2012; and the fourth Closing shall occur between March 31,
2012 and April 30, 2012. Notwithstanding the foregoing, the Company shall have
the right to accelerate any Closing Date to a date prior to such Closing Date,
provided that the
Company shall have provided written notice to each Redeemed Party of such date
at least three (3) business days prior to such date.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)           Deliverables at
Closing. At each Closing, (i) each Redeemed Party shall deliver to the
Company (or any Company Designee) the original stock certificate representing
the Redemption Shares held by such Redeemed Party immediately prior to such
Closing, together with a duly executed Assignment Separate from Certificate in
the form of attached Exhibit A
representing the number of Redemption Shares to be sold, assigned, transferred
and delivered to the Company (or any Company Designee) at such Closing pursuant
to Section 1(a); and (ii) the Company (or any Company Designee) shall (A) pay to
each Redeemed Party, as full and complete consideration for such Redemption
Shares, an amount equal to the sum of (x) the amount set forth in the seventh
column from the left of Schedule A attached
hereto opposite the name of such Redeemed Party (the “Principal”) and (B) the
interest amount accrued on a daily basis on the Principal at the rate of 1.5%
per annum, compounded annually from August 27, 2009 until such Closing Date, by
wire transfer of immediately available funds in United States dollars to a bank
account designated by such Redeemed Party, and (B) other than the 4th or
final Closing on Schedule A, issue and
deliver to each Redeemed Party an original stock certificate representing the
outstanding number of Redemption Shares to be held by such Redeemed Party
immediately after such Closing.

     

    2.           Representations
and Warranties of the Redeemed Parties.  Each
Redeemed Party, severally and not jointly, represents and warrants to the
Company as of the date of this Agreement and as of each Closing Date,
that:

     

    (a)           The
Redeemed Party has the full, absolute and entire power and legal right to
execute and deliver and perform its obligations under this
Agreement.

     

    (b)           The
execution, delivery and performance of this Agreement have been duly authorized
by all necessary corporate action on the part of the Redeemed Party and this
Agreement constitutes a legal, valid and binding obligation of the Redeemed
Party enforceable against the Redeemed Party in accordance with its terms,
except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance and other similar laws of general application
affecting enforcement of creditors' rights generally and (ii) the availability
of the remedy of specific performance or injunctive or other forms of equitable
relief may be subject to equitable defenses and would be subject to the
discretion of the court before which any proceeding therefor may be
brought.

     

    (c)           The
Redeemed Party is the record owner of the Shares and has good and marketable
title thereto, free and clear of any and all liens, pledges, restrictions,
options, rights of first refusal, encumbrances, charges, agreements or claims of
any kind whatsoever.

     

    (d)           The
Redeemed Party has had access to the books and financial and operational records
of the Company and to all of the documents and information relating to the
operations and activities of the Company.  Prior to the execution of
this Agreement, the Redeemed Party has examined, or has had the opportunity to
examine, such books, records, documents, and information to such Redeemed
Party’s satisfaction, and has been given the opportunity to ask, and has asked
and received answers to, any questions such Redeemed Party has concerning any
and all aspects of the operations and activities of the
Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Representations
and Warranties of the Company.
The Company represents and warrants to each Redeemed Party as of the date of
this Agreement and as of each Closing Date, that:

     

    (a)           The
Company is a corporation duly organized and validly existing and has full
corporate power and authority to execute and deliver and perform its obligations
under this Agreement.

     

    (b)           The
execution, delivery and performance of this Agreement have been duly authorized
by all necessary corporate action on the part of the Company and this Agreement
constitutes a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other similar laws of general application affecting enforcement
of creditors' rights generally and (ii) the availability of the remedy of
specific performance or injunctive or other forms of equitable relief may be
subject to equitable defenses and would be subject to the discretion of the
court before which any proceeding therefor may be brought.

     

    (c)           The
consummation by the Company of the transactions contemplated by this Agreement
or compliance with the provisions hereunder by the Company will not (i) conflict
with or result in any breach of any provision of the articles of incorporation
or bylaws of the Company, each as amended to date, (ii) require any permit,
authorization, consent or approval of, any governmental entity, or (iii) violate
any order, writ, injunction, decree, statute, rule, regulation, or securities
exchange rule applicable to the Company, including, without limitation, Section
16.10a.640 of the Utah Revised Business Corporation Act.

     

    4.           Conditions
Precedent.

     

    (a)           Conditions Precedent to the
Obligations of the Company.  The
obligations of the Company to proceed to each Closing and consummate the
transactions at such Closing contemplated by this Agreement are subject to
satisfaction, or waiver in writing by the Company, of the following
conditions:

     

    (i)           The
representations and warranties of each of the Redeemed Parties set forth in
Section 2 shall be true and correct as of the Closing Date of such
Closing.

     

    (ii)           No
judgment, order, law, rule or regulation, entered, enacted, enforced or issued
against any of the Redeemed Parties by any governmental authority shall be in
effect as of the Closing Date of such Closing preventing the consummation of any
of the transactions contemplated by this Agreement at such Closing.

     

    (b)           Conditions Precedent to the
Obligations of the Redeemed Parties.  The
obligations of each Redeemed Party to proceed to each Closing and consummate the
transactions at such Closing contemplated by this Agreement are subject to
satisfaction, or waiver in writing by such Redeemed Party, of the following
conditions:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)           The
representations and warranties of the Company set forth in Section 3 shall be
true and correct as of the Closing Date of such Closing.

     

    (ii)           No
judgment, order, law, rule or regulation, entered, enacted, enforced or issued
against the Company by any governmental authority shall be in effect as of the
Closing Date of such Closing preventing the consummation of any of the
transactions contemplated by this Agreement at such Closing.

     

    5.           Termination.  This
Agreement may be terminated and the transactions contemplated hereunder, other
than the transactions the Closing(s) of which have already occurred, abandoned
at any time prior to the fourth and final Closing only as follows:

     

    (a)           by
any Redeemed Party, with respect to such Redeemed Party, if (i) all conditions
to a Closing set forth in Section 4(a) have been satisfied, and (ii) the Company
fails to consummate the transaction contemplated at such Closing under this
Agreement in compliance with Section 1(b), the delay of which exceeds 30
days; or

     

    (b)           by
the Company, if (i) all conditions to a Closing set forth in Section 4(b) have
been satisfied, and (ii) the Redeemed Parties fail to consummate the transaction
contemplated at such Closing under this Agreement in compliance with Section
1(b), the delay of which exceeds 30 days; or

     

    (c)           by
mutual agreement of the Company and the Redeemed Parties.

     

    6.           Effect
of Termination.  If
this Agreement is terminated pursuant to Section 5, this Agreement shall be of
no effect with no liability on the part of any party hereto, except (i) that the
provisions set forth in Sections 6, 8, 9, 10, 13, 14 and 15, shall survive the
termination hereof and (ii) that no such termination shall relieve any party of
any liability or damages resulting from any breaches by that party of this
Agreement prior to such termination.

     

     

    7.           Reasonable
Best Efforts.  Upon the terms and subject to the conditions set
forth in this Agreement, each of the parties agrees to use its reasonable best
efforts to take, or cause to be taken, all actions, and to do, or cause to be
done, and to assist and cooperate with the other parties in doing, all things
necessary, proper or advisable to consummate and make effective, in the most
expeditious manner practicable, the transactions contemplated hereunder,
including using reasonable best efforts to accomplish the following: (a) the
taking of all acts necessary to cause the conditions to each Closing to be
satisfied as promptly as reasonably practicable, (b) the making of all necessary
registrations and filings with any governmental authority or stock exchange, (c)
the obtaining of all necessary consents, approvals or waivers from the parties
hereto or any third parties, (d) the execution and delivery of any additional
instruments necessary to consummate and to fully carry out the purposes of the
transactions contemplated hereunder.  In the event that the Company
may seek financing from a third party investor, provided (x) the Company has
timely made the payment in full at the first Closing in compliance with Section
1(b)(ii) and (y) at the time of notice by the Company to the Redeemed Parties
summarizing the material terms of such financing, the Company has not breached
any representation, warranty, covenant or obligation of the Company under this
Agreement, then the Redeemed Parties shall give written consent to such
financing under Section 8.2 of the Subscription Agreement within five (5)
business days after receipt of such notice.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.           Termination
of Certain Rights.  From the date hereof, all rights and
obligations set forth in Section 8.6 of the Subscription Agreement are
immediately terminated and of no further force and effect.

     

    9.           Adjustment
of Interest Rate.  With
respect to the transactions contemplated at each Closing by this Agreement, in
the event that such Closing does not occur in compliance with Section 1(b), if
the conditions set forth in Section 4(a) are satisfied, the interest rate under
Section 1(b) hereof shall be increased from 1.5% to 10% per annum, compounded
annually for the entire period commencing from August 27, 2009 until the date of
such Closing.  For the sake of clarity, such increased interest will
only accrue as to the amount that the Company would be required to pay to
Sequoia at such Closing, and not any amounts that would only be required to be
paid at a future Closing.

     

    10.           Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed given only when received by the intended recipient thereof and only if
sent by certified mail, an overnight courier service, delivered personally or by
facsimile or other electronic transmission (including electronic
correspondence), to the parties at the following addresses (or at such other
address for a party as shall be specified by such party by like
notice):

     

    if to the
Redeemed Parties, to:

     

    Room
2408, Air China Plaza

    No. 36
Xiaoyun Road

    Chaoyang
District, Beijing 100027, PRC

    Attention:
George Xu

    Fax:
+86(10) 8447 5669

    Email:  xu@sequoiacap.com

     

    and

     

    300 Sand
Hill Road, 4-250

    Menlo
Park, CA 94250, USA

    Attention:
Melinda Dunn

    Fax:
+1(650) 854 2977

    Email:
melinda@sequoiacap.com

    

    with a
copy to:

     

    Suite
2215, Two Pacific Place

    88
Queensway, Hong Kong, PRC

    Attention:
Jimmy Wong

    Fax: +852
2501 5249

    Email:
wong@sequoiacap.com

    

    and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Skadden,
Arps, Slate, Meagher & Flom LLP

    30th
Floor, Tower 2, China World Trade Center

    No. 1
Jianguomenwai Avenue, Beijing 100004

    The
People’s Republic of China

    Attention:
Peter Huang, Esq.

    Fax:
+86(10) 6535 5577

    Email:
peter.huang@skadden.com

     

    if to the
Company, to:

     

    Feihe
International Inc.

    Star City
International Building

    10
Jiuxianqiao Road, C-16th Floor

    Chaoyang
District, Beijing, PRC

    Attention:
Mr. Leng You-Bin

    Fax:
+86(10) 8456 7768

    Email:
lengyoubin@feihe.com

     

    with a
copy to:

     

    DLA Piper
LLP (US)

    701 Fifth
Avenue, Suite 7000

    Seattle,
WA 98104-7044, USA

    Attention:  Matthew
D. Adler

        Andrew
Ledbetter

    Fax:
+1(206)494 1800

    Email:  matt.adler@dlapiper.com

               
andrew.ledbetter@dlapiper.com

     

    11.           Fees
and Expenses.  All
costs and expenses incurred in connection with this Agreement and the
consummation of the transactions contemplated hereby shall be paid by the party
incurring such expenses.

     

    12.           Transfer
Documents.  Each
of the Redeemed Parties and the Company shall (i) make such other agreements and
execute such other documents as the parties determine necessary to effectuate
the transactions contemplated by this Agreement, and (ii) provide the other
party with such additional information and documents as may reasonably be
requested in connection with the purchase and sale of the Redemption Shares
hereunder.

     

    13.           Governing
Law and Dispute Resolution.  This
Agreement shall be governed by, and construed in accordance with, the
substantive laws of the State of New York, without regard to New York choice of
law rules.  Any dispute arising out of or in connection with this
Agreement shall be referred to the Hong Kong International Arbitration Centre in
Hong Kong. The arbitration proceedings shall be conducted in English pursuant to
the Arbitration Rules of the United Nations Commission on International Trade
Law, as currently in effect and a decision rendered by the arbitral tribunal in
such proceedings shall be final and binding on the parties.  All
rights to apply or appeal to any court on a preliminary or other point of law
are excluded; provided,
however, that nothing
herein shall limit the ability of a party to seek specific performance or
interim injunctive relief in any court of competent
jurisdiction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    14.           Specific
Performance.  Each
of the Company, on the one side, and the Redeemed Parties, on the other side,
acknowledges that the other party would suffer irreparable damage and would not
have an adequate remedy at law for money damages in the event that any of the
covenants or agreements set forth in this Agreement were not performed by it or
them, as the case may be, in accordance with its terms.  Therefore,
each party agrees that each of the parties shall be entitled to specific
performance, injunctive and other equitable relief in addition to any other
remedy to which it may be entitled at law or in equity (without the necessity of
proving the inadequacy as a remedy of money damages or the posting of a bond or
other security).

     

    15.           Invalidity
or Unenforceability.  If
any provision of this Agreement is held to be illegal, invalid or unenforceable
under the present or future laws effective during the term of this Agreement,
such provision will be fully severable; this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this Agreement; and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance from this
Agreement.  Furthermore, in lieu of such illegal, invalid or
unenforceable provision, a Court of competent jurisdiction may add or modify, as
a part of this Agreement, a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable.

     

    16.           Assignment.
The rights and obligations of the parties hereto shall inure to the benefit of
and shall be binding upon the authorized successors and permitted assigns of
each party. No party may (a) assign its rights or obligations under this
Agreement, in whole or in part, or (b) designate another person (i) to perform
all or part of its obligations under this Agreement or (ii) to have all or part
of its rights and benefits under this Agreement (each, an “Assignment”), in each case
without the prior written consent of the other parties; provided, however, that each Redeemed
Party may effect an Assignment to an Affiliate in a transaction complying with
applicable securities laws without the prior written consent of the Company, if
such Assignment does not affect the obligations of such Redeemed Party
hereunder; provided
further,
however, that the Company may effect an Assignment to a Company Designee
without the prior written consent of the Redeemed Parties.  In the
event of any Assignment in accordance with the terms of this Agreement, the
assignee shall specifically assume and be bound by the provisions of the
Agreement.

     

    17.           Change;
Waiver.  No
change or modification of this Agreement shall be valid unless the same is in
writing and signed by the parties hereto.  No waiver of any provision
of this Agreement shall be valid unless in writing and signed by the party
waiving its rights.  The failure of either party at any time to insist
upon, or any delay by either party at any time to insist upon, strict
performance of any condition, promise, agreement or understanding set forth
herein shall not be construed as a waiver or relinquishment of the right to
insist upon strict performance of the same condition, promise, agreement or
understanding at a future time.

     

    18.           Entire
Agreement.  This
Agreement sets forth all of the promises, agreements, conditions, understandings
and covenants between the parties hereto with respect to the subject matter
referred to herein, and there are no promises other than as set forth
herein.  Any and all prior agreements with respect to such subject
matter are hereby revoked.  This Agreement is, and is intended by the
parties to be, an integration of any and all prior agreements or understandings,
oral or written, with respect to such subject matter.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    19.           No
Third Party Rights.  This
Agreement is intended solely for the benefit of the parties hereto and their
respective successors and permitted assigns and is not intended to confer any
benefits upon, or create any rights in favor of, any other person.

     

    20.           Time
of the Essence.  Each
of the parties hereto hereby agrees that, with regard to all dates and time
periods set forth or referred to in this Agreement, time is of the
essence.

     

    21.           Headings.  The
headings and other captions in this Agreement are for convenience and reference
only and shall not be used in interpreting, construing or enforcing any of the
provisions of this Agreement.

     

    22.           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one instrument.
Execution and delivery of this Agreement by facsimile or other electronic
transmission in PDF format shall be deemed due execution and delivery for all
purposes.

     

    

     

     [The remainder of
this page is intentionally left blank]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXECUTION COPY

     

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

     

    
      	 
      	
              FEIHE
      INTERNATIONAL, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/
      Leng
      You-Bin                                  
      

            
	 
      	
              Name:
      Leng You-Bin

            
	 
      	
              Title:
      Chief Executive Officer

            

    

    

    

    

    [Signature
page to Redemption Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              SEQUOIA
      CAPITAL CHINA I, L.P.

            
	 
      	
              SEQUOIA
      CAPITAL CHINA PARTNERS FUND I, L.P.

            
	 
      	
              SEQUOIA
      CAPITAL CHINA PRINCIPALS FUND I, L.P.

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              Sequoia
      Capital China Management I, L.P.,

            
	 
      	 
      	
              A
      Cayman Islands Exempted Limited partnership,

            
	 
      	 
      	
              General
      Partner of Each

            
	 
      	
              By:

            	
              SC
      China Holding Limited

            
	 
      	 
      	
              A
      Cayman Islands Exempted Limited partnership

            
	 
      	 
      	
              General
      Partner of Each

            
	 	 	 
	 	 	 
	 
      	 
      	 
      
	 
      	
                  
      /s/ Jimmy
      Wong                                     
      

            
	 
      	
              Name:
      Jimmy Wong

            
	 
      	
              Title:  Authorized
      Signatory

            
	 
      	 
      	 
      
	 
      	
              SEQUOIA
      CAPITAL CHINA GROWTH FUND I, L.P.

            
	 
      	
              SEQUOIA
      CAPITAL CHINA GROWTH PARTNERS FUND I, L.P.

            
	 
      	
              SEQUOIA
      CAPITAL CHINA GF PRINCIPALS FUND I, L.P.

            
	 	 	 
	 
      	
              By:

            	
              Sequoia
      Capital China Growth Fund Management I, L.P.

            
	 
      	 
      	
              A
      Cayman Islands Exempted Limited partnership,

            
	 
      	 
      	
              General
      Partner of Each

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              SC
      China Holding Limited

            
	 
      	 
      	
              A
      Cayman Islands Exempted Limited partnership

            
	 
      	 
      	
              General
      Partner of Each

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              
                    
      /s/ Jimmy
      Wong                                     
      

              

            
	 
      	
              Name:
      Jimmy Wong

            
	 
      	
              Title:  Authorized
      Signatory

            

    

    
 

    

    [Signature
page to Redemption Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              SEQUOIA
      CAPITAL US GROWTH FUND IV, L.P.

            
	 
      	
              SEQUOIA
      CAPITAL USGF PRINCIPALS FUND IV, L.P.

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              SCGF
      IV Management, L.P.

            
	 
      	 
      	
              A
      Cayman Islands exempted limited partnership

            
	 
      	 
      	
              General
      Partner of Each

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              SCGF
      GenPar, Ltd

            
	 
      	 
      	
              A Cayman
      Islands limited liability company

            
	 
      	 
      	
              Its
      General Partner

            
	 	 	 
	 	 	 
	 
      	 
      	 
      
	 
      	
                  
      /s/ Scott
      Carter                                        
      

            
	 
      	
              Name:
      Scott Carter

            
	 
      	
              Title:  Managing
      Director

            

    

    
 

    

    [Signature
page to Redemption Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    SCHEDULE
A

    

    
      	 
      	
              Redemption
      Shares to be redeemed at:

            	 
      	 
      	 
      
	
              Redeemed
      Party

            	
              1st
      Closing

            	
              2nd
      Closing

            	
              3rd
      Closing

            	
              4th
      Closing

            	
              Redemption
      Shares (Total)

            	
              Principal
      for each Closing (US$)

            	
              Total
      Purchase Price (US$)

            
	
              Sequoia
      Capital China I, L.P.

            	
              24,613

            	
              24,612

            	
              24,613

            	
              24,612

            	
              98,450

            	
              590,700.00

            	
              2,362,800.00

            
	
              Sequoia
      Capital China Partners Fund I, L.P.

            	
              2,828

            	
              2,828

            	
              2,828

            	
              2,828

            	
              11,312

            	
              67,875.00

            	
              271,500.00

            
	
              Sequoia
      Capital China Principals Fund I, L.P.

            	
              3,809

            	
              3,810

            	
              3,809

            	
              3,810

            	
              15,238

            	
              91,425.00

            	
              365,700.00

            
	
              Sequoia
      Capital China Growth Fund I, L.P.

            	
              363,417

            	
              363,416

            	
              363,417

            	
              363,416

            	
              1,453,666

            	
              8,721,997.50

            	
              34,887,990.00

            
	
              Sequoia
      Capital China Growth Partners Fund I, L.P.

            	
              8,666

            	
              8,667

            	
              8,666

            	
              8,667

            	
              34,666

            	
              207,997.50

            	
              831,990.00

            
	
              Sequoia
      Capital China GF Principals Fund I, L.P.

            	
              44,583

            	
              44,584

            	
              44,583

            	
              44,584

            	
              178,334

            	
              1,070,002.50

            	
              4,280,010.00

            
	
              Sequoia
      Capital US Growth Fund IV, L.P.

            	
              199,667

            	
              199,667

            	
              199,667

            	
              199,666

            	
              798,667

            	
              4,792,000.50

            	
              19,168,002.00

            
	
              Sequoia
      Capital USGF Principals Fund IV, L.P.

            	
              8,667

            	
              8,666

            	
              8,667

            	
              8,667

            	
              34,667

            	
              208,002.00

            	
              832,008.00

            
	
               

              Total

            	
              656,250

            	
              656,250

            	
              656,250

            	
              656,250

            	
              2,625,000

            	
              15,750,000

            	
              63,000,000.00

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    Exhibit A

    

    

    ASSIGNMENT
SEPARATE FROM CERTIFICATE

    

    

    FOR VALUE
RECEIVED, the undersigned hereby assigns, transfers and conveys to
________________ an aggregate of ______________ shares of common stock of Feihe
International, Inc., a Utah corporation (the “Company”), pursuant that
certain redemption agreement dated January __, 2011 (the “Redemption Agreement”) by and
among the Company and the Redeemed Parties (as defined in the Redemption
Agreement), standing in the name of the undersigned on the books of the Company,
represented by Certificate No. _____ for _______________ shares, delivered
herewith, and hereby irrevocably constitutes and appoints Progressive Transfer
Co. to transfer said shares on the books of the Company with full power of
substitution in the premises.

    

    EXECUTED
this _______ day of _______________, 20____.

    

    
      	 
      	
               

              Redeemed
      Holder: _____________________________

               

               

              By:
      ________________________________________

              Name:
      ______________________________________

              Its:
      ________________________________________Unassociated Document

    UNDER
FINRA RULE 5110(g) AND SUBJECT TO LIMITED EXCEPTIONS, THIS WARRANT AND THE
UNDERLYING SHARES OF COMMON STOCK SHALL NOT BE SOLD DURING THE PUBLIC OFFERING
OF THE COMPANY'S COMMON STOCK (THE "PUBLIC OFFERING") OR SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF ANY HEDGING, SHORT
SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE
ECONOMIC DISPOSITION OF THIS WARRANT OR THE SECURITIES UNDERLYING THIS WARRANT
BY ANY PERSON FOR A PERIOD OF 180 DAYS IMMEDIATELY FOLLOWING THE DATE OF
EFFECTIVENESS OR COMMENCEMENT OF SALES OF THE PUBLIC OFFERING.

    
       

      WARRANT
TO PURCHASE COMMON STOCK

      OF

      CHINA
CENTURY DRAGON MEDIA, INC.

       

      NO.
__ February __, 2011

       

      THIS CERTIFIES THAT, for
$_____ and other valuable consideration received by CHINA CENTURY DRAGON MEDIA,
INC., a Delaware corporation (the “Company”),
[WESTPARK CAPITAL, INC.],
or its permitted registered assigns (“Holder”),
is entitled, subject to the terms and conditions of this Warrant, at any time or
from time to time after February __, 2012 (the “Effective
Date”), and before 5:00 p.m. Pacific Time on _________, 2016 (the “Expiration
Date”), to purchase from the Company, _________ shares of Common Stock of
the Company at a price per share equal to $_____ (the “Purchase
Price”).  Both the number of shares of Common Stock purchasable
upon exercise of this Warrant and the Purchase Price are subject to adjustment
and change as provided herein.

       

      The
Company has filed with the Securities and Exchange Commission (the “Commission”)
a Registration Statement, No. 333-166866 on Form S-1 ("Registration
Statement") for the registration under the Securities Act of 1933, as
amended ("Securities Act") of,
among other securities, the Warrant and the shares of Common Stock issuable upon
exercise of the Warrant (the “Warrant
Shares”).

       

      1.           CERTAIN
DEFINITIONS.  As used in this Warrant the following terms shall
have the following respective meanings:

       

      1.1           “Fair Market
Value” of a share of Common Stock as of a particular date shall
mean:

       

      If traded
on a securities exchange, the Fair Market Value shall be deemed to be the
average of the closing prices of the Common Stock of the Company on such
exchange or market over the five (5) trading days ending immediately prior to
the applicable date of valuation;

       

      If
actively traded over-the-counter, the Fair Market Value shall be deemed to be
the average of the closing bid prices over the thirty (30)-day period ending
immediately prior to the applicable date of valuation; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      If there
is no active public market, the Fair Market Value shall be the value thereof, as
agreed upon by the Company and the Holder; provided, however, that if the Company
and the Holder cannot agree on such value, such value shall be determined by an
independent valuation firm experienced in valuing businesses such as the Company
and jointly selected in good faith by the Company and the
Holder.  Fees and expenses of the valuation firm shall be paid for in
equal proportions by the Company and the Holder.

       

      1.2           “Registered
Holder” shall mean any Holder in whose name this Warrant is registered
upon the books and records maintained by the Company.

       

      1.3           “Warrant”
as used herein, shall include this Warrant and any warrant delivered in
substitution or exchange therefor as provided herein.

       

      1.4           “Common
Stock” shall mean the Common Stock of the Company and any other
securities at any time receivable or issuable upon exercise of this
Warrant.

       

      2.           EXERCISE OF
WARRANT.

       

      2.1           Payment.  Subject
to compliance with the terms and conditions of this Warrant and applicable
securities laws, this Warrant may be exercised, in whole or in part at any time
or from time to time, on or before the Expiration Date by the delivery
(including, without limitation, delivery by facsimile) of the form of Notice of
Exercise attached hereto as Exhibit A (the
“Notice of
Exercise”), duly executed by the Holder, at the principal office of the
Company, and as soon as practicable after such date, surrendering

       

      (a)           this
Warrant at the principal office of the Company, and

       

      (b)           payment,
(i) in cash (by check) or by wire transfer, (ii) by cancellation by
the Holder of indebtedness of the Company to the Holder; or (iii) by a
combination of (i) and (ii), of an amount equal to the product obtained by
multiplying the number of shares of Common Stock being purchased upon such
exercise by the then effective Purchase Price (the “Exercise
Amount”).

       

      2.2           Net Issue Exercise.
In lieu of the payment methods set forth in Section 2.1(b) above,
the Holder may elect to exchange all or some of this Warrant for shares of
Common Stock equal to the value of the amount of the Warrant being exchanged on
the date of exchange.  If Holder elects to exchange this Warrant as
provided in this Section 2.2, Holder
shall tender to the Company the Warrant for the amount being exchanged, along
with written notice of Holder’s election to exchange some or all of the Warrant,
and the Company shall issue to Holder the number of shares of the Common Stock
computed using the following formula:

       

      
        	
                X
      =  

              	
                Y
      (A-B)

              	 
      
	 
      	
                A

              	
                 

              

      

       

      
        	
                Where:   X
      =  

              	
                the
      number of shares of Common Stock to be issued to
Holder.

              
	
                Y
      =  

              	
                the
      number of shares of Common Stock purchasable under the amount of the
      Warrant being exchanged (as adjusted to the date of such
      calculation).

              
	
                A
      =  

              	
                the
      Fair Market Value of one share of the Common Stock on the date that the
      relevant Notice of Exercise is received by the Company.

              
	
                B
      =  

              	
                Purchase
      Price (as adjusted to the date of such
  calculation).

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      2.3           Stock Certificates; Direct
Registration; Fractional Shares.  As soon as practicable on or
after the date of any exercise of this Warrant, the Company shall issue and
deliver to the person or persons entitled to receive the same a certificate or
certificates for the number of whole shares of Common Stock issuable upon such
exercise, together with cash in lieu of any fraction of a share equal to such
fraction of the current Fair Market Value of one whole share of Common Stock as
of such date of exercise.  No fractional shares or scrip representing
fractional shares shall be issued upon an exercise of this
Warrant.  In lieu of providing a stock certificate pursuant to this
Section 2.3, the Holder may request that the Company provide the securities in
book-entry (uncertificated form) if, at such time, the Company is direct
registration eligible. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any securities pursuant to the exercise of this Warrant
unless a registration statement under the Securities Act with respect to the
Warrant Shares is effective and such securities are qualified for sale or exempt
from qualification under applicable securities laws of the states or other
jurisdictions in which the registered holders reside.

       

      2.4           Partial Exercise; Effective
Date of Exercise.  In case of any partial exercise of this
Warrant, the Company shall cancel this Warrant upon surrender hereof and shall
execute and deliver a new Warrant of like tenor and date for the balance of the
shares of Common Stock purchasable hereunder.  This Warrant shall be
deemed to have been exercised immediately prior to the close of business on the
date of its surrender for exercise as provided above.  The person
entitled to receive the Warrant Shares shall be treated for all purposes as the
holder of record of such shares as of the close of business on the date the
Holder is deemed to have exercised this Warrant.

       

      2.5           Vesting.  This
Warrant shall vest fully upon issuance.

       

      2.6           Restrictions on
Exercise:  Notwithstanding anything to contrary herein, in no
event will the registered holder of this Warrant be entitled to receive a
net-cash settlement or other consideration in lieu of physical settlement in
shares of Common Stock if the Warrant Shares are not covered by an effective
registration statement filed with the Securities and Exchange Commission under
the Securities Act. Accordingly, the Warrant may expire unexercised and
worthless if a current registration statement covering the Warrant Shares is not
effective.

       

      3.           VALID ISSUANCE;
TAXES.  All shares of Common Stock issued upon the exercise of
this Warrant shall be validly issued, fully paid and nonassessable, and the
Company shall pay all taxes and other governmental charges that may be imposed
in respect of the issue or delivery thereof.  The Company shall not be
required to pay any tax or other charge imposed in connection with any transfer
involved in the issuance of any certificate for shares of Common Stock in any
name other than that of the Registered Holder of this Warrant, and in such case
the Company shall not be required to issue or deliver any stock certificate or
security until such tax or other charge has been paid, or it has been
established to the Company’s reasonable satisfaction that no tax or other charge
is due.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      4.           ADJUSTMENT OF PURCHASE PRICE AND
NUMBER OF SHARES.  The number of shares of Common Stock
issuable upon exercise of this Warrant (or any shares of stock or other
securities or property receivable or issuable upon exercise of this Warrant) and
the Purchase Price are subject to adjustment upon occurrence of the following
events:

       

      4.1           Adjustment for Stock Splits,
Stock Subdivisions or Combinations of Shares.  The Purchase
Price of this Warrant shall be proportionally decreased and the number of shares
of Common Stock issuable upon exercise of this Warrant (or any shares of stock
or other securities at the time issuable upon exercise of this Warrant) shall be
proportionally increased to reflect any stock split or subdivision of the
Company’s Common Stock.  The Purchase Price of this Warrant shall be
proportionally increased and the number of shares of Common Stock issuable upon
exercise of this Warrant (or any shares of stock or other securities at the time
issuable upon exercise of this Warrant) shall be proportionally decreased to
reflect any combination of the Company’s Common Stock.

       

      4.2           Adjustment for Dividends or
Distributions of Stock or Other Securities or Property.  In
case the Company shall make or issue, or shall fix a record date for the
determination of eligible holders entitled to receive, a dividend or other
distribution with respect to the Common Stock (or any shares of stock or other
securities at the time issuable upon exercise of the Warrant) payable in (a)
securities of the Company or (b) assets (excluding cash dividends), then, in
each such case, the Holder of this Warrant on exercise hereof at any time after
the consummation, effective date or record date of such dividend or other
distribution, shall receive, in addition to the shares of Common Stock (or such
other stock or securities) issuable on such exercise prior to such date, and
without the payment of additional consideration therefor, the securities or such
other assets of the Company to which such Holder would have been entitled upon
such date if such Holder had exercised this Warrant on the date hereof and had
thereafter, during the period from the date hereof to and including the date of
such exercise, retained such shares and all such additional securities or other
assets distributed with respect to such shares as aforesaid during such period
giving effect to all adjustments called for by this Section
4.

       

      4.3           Reclassification.  If
the Company, by reclassification of securities or otherwise, shall change any of
the securities as to which purchase rights under this Warrant exist into the
same or a different number of securities of any other class or classes, this
Warrant shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change, and the Purchase
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section
4.  No adjustment shall be made pursuant to this Section 4.3 upon any
conversion or redemption of the Common Stock which is the subject of Section
4.5.

       

      4.4           Adjustment for Capital
Reorganization, Merger or Consolidation.  In case of any
capital reorganization of the capital stock of the Company (other than a
combination, reclassification, exchange or subdivision of shares otherwise
provided for herein), or any merger or consolidation of the Company with or into
another corporation, or the sale of all or substantially all the assets of the
Company then, and in each such case, as a part of such reorganization, merger,
consolidation, sale or transfer, lawful provision shall be made so that the
Holder of this Warrant shall thereafter be entitled to receive upon exercise of
this Warrant, during the period specified herein and upon payment of the
Purchase Price then in effect, the number of shares of stock or other securities
or property of the successor corporation resulting from such reorganization,
merger, consolidation, sale or transfer that a holder of the shares deliverable
upon exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation, merger, sale or transfer if this Warrant had been
exercised immediately before such reorganization, merger, consolidation, sale or
transfer, all subject to further adjustment as provided in this Section
4.  The foregoing provisions of this Section 4.4 shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation that are
at the time receivable upon the exercise of this Warrant.  If the
per-share consideration payable to the Holder hereof for shares in connection
with any such transaction is in a form other than cash or marketable securities,
then the value of such consideration shall be determined in good faith by the
Company’s Board of Directors.  In all events, appropriate adjustment
(as determined in good faith by the Company’s Board of Directors) shall be made
in the application of the provisions of this Warrant with respect to the rights
and interests of the Holder after the transaction, to the end that the
provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      4.5           Conversion of Common
Stock.  In case all or any portion of the authorized and
outstanding shares of Common Stock of the Company are redeemed or converted or
reclassified into other securities or property pursuant to the Company’s
Certificate of Incorporation or otherwise, or the Common Stock otherwise ceases
to exist, then, in such case, the Holder of this Warrant, upon exercise hereof
at any time after the date on which the Common Stock is so redeemed or
converted, reclassified or ceases to exist (the “Termination
Date”), shall receive, in lieu of the number of shares of Common Stock
that would have been issuable upon such exercise immediately prior to the
Termination Date, the securities or property that would have been received if
this Warrant had been exercised in full and the Common Stock received thereupon
had been simultaneously converted immediately prior to the Termination Date, all
subject to further adjustment as provided in this
Warrant.  Additionally, the Purchase Price shall be immediately
adjusted to equal the quotient obtained by dividing (x) the aggregate Purchase
Price of the maximum number of shares of Common Stock for which this Warrant was
exercisable immediately prior to the Termination Date by (y) the number of
shares of Common Stock of the Company for which this Warrant is exercisable
immediately after the Termination Date, all subject to further adjustment as
provided herein.

       

      5.           CERTIFICATE AS TO
ADJUSTMENTS.  In each case of any adjustment in the Purchase
Price, or number or type of shares issuable upon exercise of this Warrant, the
Chief Financial Officer or Controller of the Company shall compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment and showing in detail the facts upon
which such adjustment is based, including a statement of the adjusted Purchase
Price.  The Company shall promptly send (by facsimile and by either
first class mail, postage prepaid or overnight delivery) a copy of each such
certificate to the Holder.

       

      6.           LOSS OR
MUTILATION.  Upon receipt of evidence reasonably satisfactory
to the Company of the ownership of and the loss, theft, destruction or
mutilation of this Warrant, and of indemnity reasonably satisfactory to it, and
(in the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will execute and deliver in lieu thereof a new Warrant of like tenor as
the lost, stolen, destroyed or mutilated Warrant.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      7.           RESERVATION OF COMMON
STOCK.  The Company hereby covenants that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant such
number of shares of Common Stock or other shares of capital stock of the Company
as are from time to time issuable upon exercise of this Warrant and, from time
to time, will take all steps necessary to amend its Certificate of Incorporation
to provide sufficient reserves of shares of Common Stock issuable upon exercise
of this Warrant.  All such shares shall be duly authorized, and when
issued upon such exercise, shall be validly issued, fully paid and
non-assessable, free and clear of all liens, security interests, charges and
other encumbrances or restrictions on sale and free and clear of all preemptive
rights, except encumbrances or restrictions arising under federal or state
securities laws. Issuance of this Warrant shall constitute full authority to the
Company’s Officers who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for shares of Common Stock upon
the exercise of this Warrant.

       

      8.           TRANSFER AND
EXCHANGE.  Subject to the terms and conditions of this Warrant
and compliance with all applicable securities laws, this Warrant and all rights
hereunder may be transferred to any Registered Holder’s parent, subsidiary or
affiliate, or, if the Registered Holder is a partnership, to any partner of such
Registered Holder, in whole or in part, on the books of the Company maintained
for such purpose at the principal office of the Company referred to above, by
the Registered Holder hereof in person, or by duly authorized attorney, upon
surrender of this Warrant properly endorsed and upon payment of any necessary
transfer tax or other governmental charge imposed upon such
transfer.  Upon any permitted partial transfer, the Company will issue
and deliver to the Registered Holder a new Warrant or Warrants with respect to
the shares of Common Stock not so transferred.  Each taker and holder
of this Warrant, by taking or holding the same, consents and agrees that when
this Warrant shall have been so endorsed, the person in possession of this
Warrant may be treated by the Company, and all other persons dealing with this
Warrant, as the absolute owner hereof for any purpose and as the person entitled
to exercise the rights represented hereby, any notice to the contrary
notwithstanding; provided, however, that until a
transfer of this Warrant is duly registered on the books of the Company, the
Company may treat the Registered Holder hereof as the owner for all
purposes.  Notwithstanding anything to the contrary, this Warrant and
the Common Stock issued or issuable upon exercise hereof, shall be subject to
the restrictions on transfer contained in FINRA Rule 5110(g) and may not be sold
during the offering pursuant to which such Warrant was issued, or sold,
transferred, assigned, pledged, or hypothecated, or be the subject of any
hedging, short sale, derivative, put, or call transaction that would result in
the effective economic disposition of the securities by any person for a period
of 180 days immediately following the Effective Date, except as provided in
subparagraph (g)(2) of FINRA Rule 5110.

       

      9.           REGISTRATION OF COMMON
STOCK.

       

      9.1           The
Company agrees that prior to the Effective Date, it shall file with the
Commission a post-effective amendment to the Registration Statement, or a new
registration statement, for the registration, under the Securities Act, of, and
it shall take such action as is necessary to qualify for sale, in those states
in which the Warrant was initially offered by the Company, the Warrant Shares
and any shares of Common Stock issued as (or issuable upon the conversion or
exercise of any warrant, right or other security which is issued as) a dividend
or other distribution with respect to, or in exchange for or in replacement of
any Warrant Shares (collectively, the “Registrable
Securities”).  In either case, the Company will use its
commercially reasonable efforts to cause the same to become effective on or
prior to the Effective Date and to maintain the effectiveness of such
registration statement until the expiration of this Warrant in accordance with
the provisions herein.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      9.2           The
Company shall pay all expenses incurred in connection with the registration of
the Registrable Securities pursuant to this Section 9 (excluding underwriters’
or brokers’ discounts and commissions relating to shares sold by the Holders of
Registrable Securities (the “Registrable
Securities Holders”) and legal fees of counsel for the Registrable
Securities Holders), including without limitation federal and “blue sky”
registration, filing and qualification fees, printers’ and accounting fees, and
fees and disbursements of counsel.  The Company shall furnish to the
Registrable Securities Holders such number of copies of a prospectus, including
a preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents as they may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by them that are
included in such registration statement.  The Company shall use its
commercially reasonable efforts to register and qualify the securities covered
by such registration statement under such other securities or Blue Sky laws of
such states as shall be reasonably requested by the Registrable Securities
Holders, provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions.  The
Company shall notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing.

       

      9.3           If
requested by the Company, it shall be a condition precedent to the obligations
of the Company to take any action pursuant to this Section 9 that the
selling Registrable Securities Holders shall furnish to the Company such
information regarding themselves, the Registrable Securities held by them, and
the intended method of disposition of such securities as shall be required to
timely effect the registration of their Registrable Securities.

       

      10.           INDEMNIFICATION.  In
the event any Registrable Securities are included in a registration statement
under Section
9:

       

      10.1           By the
Company.  To the extent permitted by law; the Company will
indemnify and hold harmless each Registrable Securities Holder, the partners,
officers and directors of each Registrable Securities Holder, any underwriter
(as determined in the Securities Act) for such Registrable Securities Holder and
each person, if any, who controls such Registrable Securities
Holder  or underwriter within the meaning of the Securities Act or the
Securities Exchange Act of 1934, as amended, (the “1934
Act”), against any losses, claims, damages, or liabilities (joint or
several) to which they may become subject under the Securities Act, the 1934 Act
or other federal or state law, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereof) arise out of or are based upon any
of the following statements, omissions or violations (collectively a “Violation”):

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      (a)           any
untrue statement or alleged untrue statement of a material fact contained in
such registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements
thereto;

       

      (b)           the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading,
or

       

      (c)           any
violation or alleged violation by the Company of the Securities Act, the 1934
Act, any federal or state securities law or any rule or regulation promulgated
under the Securities Act, the 1934 Act or any federal or state securities law in
connection with the offering covered by such registration
statement;

       

      and the
Company will reimburse each such Registrable Securities Holder, partner, officer
or director, underwriter or controlling person for any legal or other expenses
reasonably incurred by them, as incurred, in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this Section 10 shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld), nor shall the Company be
liable in any such case for any such loss, claim, damage, liability or action to
the extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with written information furnished expressly for
use in connection with such registration by such Registrable Securities Holder,
partner, officer, director, underwriter or controlling person of such
Registrable Securities Holder.

       

      10.2           By Selling
Holders.  To the extent permitted by law, each selling
Registrable Securities Holder will indemnify and hold harmless the Company, each
of its directors, each of its officers who have signed the registration
statement, each person, if any, who controls the Company within the meaning of
the Securities Act, any underwriter and any other Registrable Securities Holder
selling securities under such registration statement or any of such other
Registrable Securities Holder’s partners, directors or officers or any person
who controls such Registrable Securities Holder within the meaning of the
Securities Act or the 1934 Act, against any losses, claims, damages or
liabilities (joint or several) to which the Company or any such director,
officer, controlling person, underwriter or other such Registrable Securities
Holder, partner or director, officer or controlling person of such other
Registrable Securities Holder may become subject under the Securities Act, the
1934 Act or other federal or state law, insofar as such losses, claims, damages
or liabilities (or actions in respect thereto) arise out of or are based upon
any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Registrable Securities Holder expressly for use in connection
with such registration; and each such Registrable Securities Holder will
reimburse any legal or other expenses reasonably incurred by the Company or any
such director, officer, controlling person, underwriter or other Registrable
Securities Holder, partner, officer, director or controlling person of such
other Registrable Securities Holder in connection with investigating or
defending any such loss, claim, damage, liability or action: provided, however, that the indemnity
agreement contained in this Section 10.2 shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Registrable Securities Holder, which consent shall not be unreasonably withheld;
and provided, further, that the total
amounts payable in indemnity by a Registrable Securities Holder under this Section 10.2 in
respect of any Violation shall not exceed the net proceeds received by such
Registrable Securities Holder in the registered offering out of which such
Violation arises.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      10.3           Notice.  Promptly
after receipt by an indemnified party under this Section 10 of notice
of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 10, deliver
to the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified
party shall have the right to retain its own counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate
due to actual or potential conflict of interests between such indemnified party
and any other party represented by such counsel in such
proceeding.  The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall
relieve such indemnifying party of liability to the indemnified party under this
Section 10 to
the extent the indemnifying party is prejudiced as a result thereof, but the
omission so to deliver written notice to the indemnified party will not relieve
it of any liability that it may have to any indemnified party otherwise than
under this Section
10.

       

      10.4           Defect Eliminated in Final
Prospectus.  The foregoing indemnity agreements of the Company
and Registrable Securities Holders are subject to the condition that, insofar as
they relate to any Violation made in a preliminary prospectus but eliminated or
remedied in the amended prospectus on file with the SEC at the time the
registration statement in question becomes effective or the amended prospectus
filed with the SEC pursuant to SEC Rule 424(b) (the “Final
Prospectus”), such indemnity agreement shall not inure to the benefit of
any person if a copy of the Final Prospectus was timely furnished to the
indemnified party and was not furnished to the person asserting the loss,
liability, claim or damage at or prior to the time such action is required by
the Securities Act.

       

      10.5           Contribution.  In
order to provide for just and equitable contribution to joint liability under
the Securities Act in any case in which either (i) any Registrable Securities
Holder exercising rights under this Warrant, or any controlling person of any
such Registrable Securities Holder, makes a claim for indemnification pursuant
to this Section
10 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 10 provides
for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any such selling Registrable Securities Holder or
any such controlling person in circumstances for which indemnification is
provided under this Section 10; then, and
in each such case, the Company and such Registrable Securities Holder will
contribute to the aggregate losses, claims, damages or liabilities to which they
may be subject (after contribution from others) in such proportion so that such
Registrable Securities Holder is responsible for the portion represented by the
percentage that the public offering price of its Registrable Securities offered
by and sold under the registration statement bears to the public offering price
of all securities offered by and sold under such registration statement, and the
Company and other selling Registrable Securities Holders are responsible for the
remaining portion; provided, however, that, in any such
case: (A) no such Registrable Securities Holder will be required to contribute
any amount in excess of the public offering price of all such Registrable
Securities offered and sold by such Registrable Securities Holder pursuant to
such registration statement; and (B) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      10.6           Survival.  The
obligations of the Company and Registrable Securities Holders under this Section 10 shall
survive until the fifth anniversary of the completion of any offering of
Registrable Securities in a registration statement, regardless of the expiration
of any statutes of limitation or extensions of such statutes.

       

      11.           NO RIGHTS OR LIABILITIES AS
STOCKHOLDERS.  This Warrant shall not entitle the Holder to any
voting rights or other rights as a stockholder of the Company.  In the
absence of affirmative action by such Holder to purchase Common Stock by
exercise of this Warrant or Common Stock upon conversion thereof, no provisions
of this Warrant, and no enumeration herein of the rights or privileges of the
Holder hereof shall cause such Holder hereof to be a stockholder of the Company
for any purpose.

       

      12.           REPRESENTATIONS AND WARRANTIES OF THE
COMPANY.  The Company hereby represents and warrants to Holder
that:

       

      12.1           Due Authorization;
Consents.  All corporate action on the part of the Company, its
officers, directors and stockholders necessary for (a) the authorization,
execution and delivery of, and the performance of all obligations of the Company
under, this Warrant, and (b) the authorization, issuance, reservation for
issuance and delivery of all of the Common Stock issuable upon exercise of this
Warrant, has been duly taken.  This Warrant constitutes a valid and
binding obligation of the Company enforceable in accordance with its terms,
subject, as to enforcement of remedies, to applicable bankruptcy, insolvency,
moratorium, reorganization and similar laws affecting creditors’ rights
generally and to general equitable principles.

       

      12.2           Organization.  The
Company is a corporation duly organized and validly existing under the laws of
the State of Delaware and has all requisite corporate power to own, lease and
operate its property and to carry on its business as now being conducted and as
currently proposed to be conducted.

       

      13.           NOTICES.  Except as
may be otherwise provided herein, all notices, requests, waivers and other
communications made pursuant to this Agreement shall be in writing and shall be
conclusively deemed to have been duly given (a) when hand delivered to the other
party; (b) when received when sent by facsimile at the address and number set
forth below; (c) three business days after deposit in the U.S. mail with first
class or certified mail receipt requested postage prepaid and addressed to the
other party as set forth below; or (d) the next business day after deposit with
a national overnight delivery service, postage prepaid, addressed to the parties
as set forth below with next-business-day delivery guaranteed, provided that the
sending party receives a confirmation of delivery from the delivery service
provider.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                To the
      Company:

              	
                To the
      Holder:

              
	 
      	 
      
	
                Room
      801, No. 7, Wenchanger Road

                Jiangbei,
      Huizhou City

                Guangdong
      Province, China

              	 
      

      

       

      Each
person making a communication hereunder by facsimile shall promptly confirm by
telephone to the person to whom such communication was addressed each
communication made by it by facsimile pursuant hereto but the absence of such
confirmation shall not affect the validity of any such
communication.  A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 13 by giving
the other party written notice of the new address in the manner set forth
above.

       

      14.           HEADINGS.  The
headings in this Warrant are for purposes of convenience in reference only, and
shall not be deemed to constitute a part hereof.

       

      15.           LAW GOVERNING.  This
Warrant shall be construed and enforced in accordance with, and governed by, the
laws of the State of California, with regard to conflict of law principles of
such state.

       

      16.           NO IMPAIRMENT.  The
Company will not, by amendment of its Certificate of Incorporation or bylaws, or
through reorganization, consolidation, merger, dissolution, issue or sale of
securities, sale of assets or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Warrant, but will at
all times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Registered Holder of this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company (a) will not increase the par value of any shares of stock issuable upon
the exercise of this Warrant above the amount payable therefor upon such
exercise, and (b) will take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon exercise of this Warrant.

       

      17.           NOTICES OF RECORD
DATE.  In case:

       

      17.1           the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time receivable upon the exercise of this Warrant), for the
purpose of entitling them to receive any dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any other
securities or to receive any other right; or

       

      17.2           of
any consolidation or merger of the Company with or into another corporation, any
capital reorganization of the Company, any reclassification of the capital stock
of the Company, or any conveyance of all or substantially all of the assets of
the Company to another corporation in which holders of the Company’s stock are
to receive stock, securities or property of another corporation; or

       

      17.3           of
any voluntary dissolution, liquidation or winding-up of the Company;
or

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

      

      17.4           of
any redemption or conversion of all outstanding Common Stock;

       

      then, and
in each such case, the Company will mail or cause to be mailed to the Registered
Holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or
right, or (ii) the date on which such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed,
as of which the holders of record of Common Stock or (such stock or securities
as at the time are receivable upon the exercise of this Warrant), shall be
entitled to exchange their shares of Common Stock (or such other stock or
securities), for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up.  The Company shall use all
reasonable efforts to ensure such notice shall be delivered at least thirty (30)
days prior to the date therein specified.

       

      18.           SEVERABILITY.  If
any term, provision, covenant or restriction of this Warrant is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Warrant shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated.

       

      19.           COUNTERPARTS.  For
the convenience of the parties, any number of counterparts of this Warrant may
be executed by the parties hereto and each such executed counterpart shall be,
and shall be deemed to be, an original instrument.

       

      20.           NO INCONSISTENT
AGREEMENTS.  The Company will not on or after the date of this
Warrant enter into any agreement with respect to its securities which is
inconsistent with the rights granted to the Holders of this Warrant or otherwise
conflicts with the provisions hereof.  The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to holders of the Company’s securities under any other
agreements, except rights that have been waived.

       

      21.           SATURDAYS, SUNDAYS AND
HOLIDAYS.  If the Expiration Date falls on a Saturday, Sunday
or legal holiday, the Expiration Date shall automatically be extended until 5:00
p.m. PST the next business day.

       

      22.           ENTIRE
AGREEMENT.  This Warrant contains the sole and entire agreement
and understanding of the parties with respect to the entire subject matter of
this Warrant, and any and all prior discussions, negotiations, commitments and
understandings, whether oral or otherwise, related to the subject matter of this
Warrant are hereby merged herein.

       

      [Signatures
appear on following page.]

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed as of the Effective
Date.

       

      
        
          	 	CHINA
      CENTURY DRAGON MEDIA, INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	 	HaiMing
      Fu, Chief Executive Officer	 
	 	 	 	 
	 	 	 	 

        

      

      
         

         

         

         

         

         

         

         

         

        
          Signature
page to Warrant to Purchase Common Stock

        

        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
A

       

      NOTICE
OF EXERCISE

       

      (To be
executed upon exercise of Warrant)

       

      To: China
Century Dragon Media, Inc.

       

      The
undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant Certificate for, and to purchase thereunder,
the securities of the Company, as provided for therein, and (check the
applicable box):

       

      
        	o	
                tenders
      herewith payment of the exercise price in full in the form of cash or a
      certified or official bank check in same-day funds in the amount of
      $____________ for _________ such securities.

                 

              
	o	
                elects
      the Net Issue Exercise option pursuant to Section 2.2 of the Warrant, and
      accordingly requests delivery of a net of ______________ of such
      securities.

              

      

       

      Please
issue a certificate or certificates for such securities in the name of, and pay
any cash for any fractional share to (please print name, address and social
security number):

       

      
        	
                Name:

              	 
      
	
                Address:

              	 
      
	
                Signature:

              	 
      

      

      

      Note:  The
above signature should correspond exactly with the name on the first page of
this Warrant Certificate or with the name of the assignee appearing in the
assignment form below.

       

      If said
number of shares shall not be all the shares purchasable under the within
Warrant Certificate, a new Warrant Certificate is to be issued in the name of
said undersigned for the balance remaining of the shares purchasable thereunder
rounded up to the next higher whole number of shares.

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
B

       

      ASSIGNMENT

       

      (To be
executed only upon assignment of Warrant Certificate)

       

      For value
received, hereby sells, assigns and transfers unto ____________________________
the within Warrant Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint
____________________________ attorney, to transfer said Warrant Certificate on
the books of the within-named Company with respect to the number of Warrants set
forth below, with full power of substitution in the premises:

       

      
        	
                Name(s)
      of Assignee(s)

              	
                Address

              	
                #
      of Warrants

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      

      And if
said number of Warrants shall not be all the Warrants represented by the Warrant
Certificate, a new Warrant Certificate is to be issued in the name of said
undersigned for the balance remaining of the Warrants registered by said Warrant
Certificate.

       

      
        	
                Dated:

              	 
      
	
                Signature:

              	 
      

      

       

      Notice:  The
signature to the foregoing Assignment must correspond to the name as written
upon the face of this security in every particular, without alteration or any
change whatsoever; signature(s) must be guaranteed by an eligible guarantor
institution (banks, stock brokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program)
pursuant to Securities and Exchange Commission Rule 17Ad-15.

       

      
        
          
          

        

        
          B-1

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