Document:

MAKE
      GOOD ESCROW AGREEMENT 

     

      This
        Make
        Good Escrow Agreement (the “Make Good Agreement”), dated effective as of
        September 5, 2008, is entered into by and among Yongye
        Biotechnology International, Inc., a Nevada corporation
        (the
“Company”), the Investors (as defined below), Full Alliance
        International Limited, an international business incorporated under the laws
        of
        the British Virgin Islands, (“Make Good Pledgor”), ROTH Capital Partners, LLC
        (“Roth”)
        and
        Tri-State Title & Escrow LLC, as escrow agent (“Escrow Agent”).

     

    WHEREAS,
      each of the investors in the private offering of securities of the Company
      (the
“Investors”) has entered into a Securities Purchase Agreement, dated of even
      date herewith (the “SPA”), evidencing their participation in the Company's
      private offering (the “Offering”) of securities. As an inducement to the
      Investors to participate in the Offering and as set forth in the SPA, Make
      Good
      Pledgor agrees to place certain shares of the Company’s common stock, par value
      $0.001 per share (the “Common Stock”) into escrow for the benefit of the
      Investors in the event the Company fails to satisfy certain financial thresholds
      or complete the Restructuring (as defined in the SPA).

     

    WHEREAS,
      pursuant to the requirements of the SPA, the Company and Make Good Pledgor
      have
      agreed to establish an escrow on the terms and conditions set forth in this
      Make
      Good Agreement; 

     

    WHEREAS,
      the Escrow Agent has agreed to act as escrow agent pursuant to the terms and
      conditions of this Make Good Agreement; and 

     

    WHEREAS,
      all capitalized terms used but not defined herein shall have the meanings
      assigned them in the SPA; 

     

    NOW,
      THEREFORE, in consideration of the mutual promises of the parties and the terms
      and conditions hereof, the parties hereby agree as follows: 

     

    1.
      Appointment of Escrow Agent.
      Make
      Good Pledgor and the Company hereby appoint Escrow Agent to act in accordance
      with the terms and conditions set forth in this Make Good Agreement, and Escrow
      Agent hereby accepts such appointment and agrees to act in accordance with
      such
      terms and conditions. 

     

    2.
      Establishment of Escrow. 

     

    (a)
      Contemporaneously with the Closing, Make Good Pledgor shall deliver or cause
      to
      be delivered, to the Escrow Agent to be held in escrow, a certificate evidencing
      no less than 4,000,000 shares of the Company’s Common Stock (such shares
      delivered by Make Good Pledgor being collectively referred to as the “Escrow
      Shares”), along with stock powers executed in blank (or such other signed
      instrument of transfer acceptable to the Company’s Transfer Agent). As used in
      this Make Good Agreement, “Transfer Agent” means Empire Stock Transfer, or such
      other entity hereafter retained by the Company as its stock transfer agent
      as
      specified in a writing from the Company to the Escrow Agent. 

     

    
      
        
        

      

      
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    (b)
      Make
      Good Pledgor understands and agrees that the Investors’ right to receive
      Earnings Make Good Shares pursuant to Sections 4.11 and 4.12 of the SPA and
      Restructuring Make Good Shares as defined in Section 4.13 of the SPA and this
      Make Good Agreement shall continue to run to the benefit of each Investor even
      if such Investor shall have transferred or sold all or any portion of its
      Shares, and that each Investor shall have the right to assign its rights to
      receive all or any such shares of Common Stock to other Persons in conjunction
      with negotiated sales or transfers of any of its Shares. Make Good Pledgor
      hereby irrevocably agrees that, other than in accordance with Sections 4.11,
      4.12 and 4.13 of the SPA and this Make Good Agreement, Make Good Pledgor will
      not offer, pledge, sell, contract to sell, sell any option or contract to
      purchase, purchase any option or contract to sell, grant any option, right
      or
      warrant to purchase or otherwise transfer or dispose of, directly or indirectly,
      or announce the offering of any of the Escrow Shares (including any securities
      convertible into, or exchangeable for, or representing the rights to receive
      Escrow Shares). In furtherance thereof, the Company will (x) place a stop order
      on all Escrow Shares which shall expire on the date the Escrow Shares are
      delivered to the Investors or returned to Make Good Pledgor, (y) notify the
      Transfer Agent in writing of the stop order and the restrictions on such Escrow
      Shares under this Make Good Agreement and direct the Transfer Agent not to
      process any attempts by Make Good Pledgor to resell or transfer any Escrow
      Shares before the date the Escrow Shares delivered to the Investors are
      delivered to the investors or returned to Make Good Pledgor, or otherwise in
      violation of Sections 4.11, 4.12 and 4.13 of the SPA and this Make Good
      Agreement. The Company shall deliver a written notice to the Investors
      confirming delivery of the Escrow Shares to the Escrow Agent.

     

    (c)
      It is
      acknowledged by the parties hereto that Make Good Pledgor has in its possession
      for delivery into escrow in accordance with Section 2(a) above, one certificate
      evidencing an aggregate of 4,748,107 shares of the Company’s Common Stock (the
“Certificate”). The parties hereto agree that immediately after the Closing, the
      Escrow Agent shall forward the Certificate to the Transfer Agent, along with
      executed written instructions from the Make Good Pledgor to (a) re-issue three
      new stock certificates each in the name of the Make Good Pledgor in the
      following denominations (i) two stock certificates each in the amount of
      2,000,000 shares (the “Escrow Certificates”), and (ii) one stock certificate in
      the amount of 748,107 shares (the “Make Good Pledgor Certificate”), and (b)
      return the Escrow Certificates to the Escrow Agent and the Make Good Pledgor
      Certificate to the Make Good Pledgor.

     

    3. Representations
      of Make Good Pledgor and the Company.
      Make
      Good Pledgor and the Company hereby represent and warrant, severally and not
      jointly, as to itself only, to the Investors as follows: 

     

    (i)
      All
      of the Escrow Shares are validly issued, fully paid and nonassessable shares
      of
      the Company, and free and clear of all pledges, liens and encumbrances. Upon
      any
      transfer of Escrow Shares to Investors hereunder, Investors will receive full
      right, title and authority to such shares as holders of Common Stock of the
      Company.

     

    
      
        
        

      

      
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    (ii) Performance
      of this Make Good Agreement and compliance with the provisions hereof will
      not
      violate any provision of any applicable law and will not conflict with or result
      in any breach of any of the terms, conditions or provisions of, or constitute
      a
      default under, or result in the creation or imposition of any lien, charge
      or
      encumbrance upon, any of the properties or assets of Make Good Pledgor pursuant
      to the terms of any indenture, mortgage, deed of trust or other agreement or
      instrument binding upon Make Good Pledgor, other than such breaches, defaults
      or
      liens which would not have a material adverse effect taken as a
      whole.

     

    (iii)
      Make Good Pledgor has carefully considered and understands its obligations
      and
      rights under Sections 4.11, 4.12 and 4.13 of the SPA and this Make Good
      Agreement, and in furtherance thereof (x) has consulted with its legal and
      other
      advisors with respect thereto and (y) hereby forever waives and agrees that
      it
      may not assert any equitable defenses in any Proceeding involving the Escrow
      Shares.

     

    (iv)
      Make
      Good Pledgor is the sole record and beneficial owner of the Escrow Shares,
      and
      holds the Escrow Shares free and clear of all Liens and each has the power
      and
      authority to deposit the Escrow Shares into escrow with the Escrow Agent and
      to
      transfer or cause the Escrow Agent to transfer the Escrow Shares to the
      Investors pursuant to the provisions of this Make Good Agreement.

     

    4.
      Disbursement of Escrow Shares. 

     

    4.1
      2008
      Earnings Make Good Shares.

     

    (a)
      The
      Make Good Pledgor agrees that in the event that (i) the 2008 After Tax Net
      Income (as defined below) reported in the 2008 Annual Report is less than
      $10,263,919 (the “2008 Guaranteed ATNI”), or (ii) the Fully Diluted Earnings Per
      Share (as defined below) reported in the 2008 Annual Report ) is less than
      $0.42
      (the “2008 Guaranteed EPS”), the Escrow Agent (on behalf of the Make Good
      Pledgor) will transfer the Earnings Make Good Shares (as defined below) to
      the
      Investors on a pro-rata basis (determined by dividing each Investor's Investment
      Amount by the aggregate of all Investment Amounts delivered to the Company
      by
      the Investors under the SPA) for no consideration other than their respective
      Investment Amounts paid to the Company at Closing. After giving effect to such
      transfer of the Earnings Make Good Shares to the Investors pursuant to this
      Section 4.1(a), the Make Good Escrow shall terminate (solely with respect to
      the
      Earnings Make Good Shares) and the provisions of Section 4.2 hereof shall not
      be
      operative. The “Earnings Make Good Shares” means the 2,000,000 shares of Common
      Stock (as equitably adjusted for any stock splits, stock combinations, stock
      dividends or similar transactions) deposited with the Escrow Agent pursuant
      to
      the terms of this Make Good Agreement. “Fully Diluted Earnings Per Share” means
      After Tax Net Income divided by the weighted average diluted shares of Common
      Stock outstanding.

     

    
      
        
        

      

      
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    Any
      such
      transfer of the Earnings Make Good Shares shall be made to the Investors within
      10 Business Days after the date which the 2008 Annual Report is filed with
      the
      Commission and a copy thereof is delivered to the Escrow Agent. In
      the
      event that the 2008 After Tax Net Income or Fully Diluted Earnings Per Share
      reported in the 2008 Annual Report is less than the 2008 Guaranteed ATNI or
      2008
      Guaranteed EPS, respectively, Roth shall provide prompt written instruction
      to
      the Escrow Agent with regard to the distribution of the Earnings Make Good
      Shares in an amount to each Investor as set forth on Exhibit
      A
      attached
      hereto (as determined as set forth above). The Escrow Agent need only rely
      on
      the letter of instruction from Roth in this regard and notwithstanding anything
      to the contrary contained herein will disregard any contrary instructions.
      

     

    (b)
      In
      the event that (i) the 2008 After Tax Net Income reported in the 2008 Annual
      Report is equal to or greater than the 2008 Guaranteed ATNI and (ii) the Fully
      Diluted Earnings Per Share reported in the 2008 Annual Report is equal to or
      greater than the 2008 Guaranteed EPS, no transfer of the Earnings Make Good
      Shares shall be required by the Escrow Agent (on behalf of the Make Good
      Pledgor) to the Investors and the Earnings Make Good Shares shall be retained
      by
      the Escrow Agent, as provided in written instructions to be given to the Escrow
      Agent by Roth, and shall be available in connection with the Make Good Pledgor’s
      obligations under Section 4.2 hereof. 

     

    (c)
      Notwithstanding the foregoing or anything else to the contrary herein, for
      purposes of determining whether or not each of the 2008 Guaranteed ATNI and
      the
      2008 Guaranteed EPS has been met, the following items shall not be deemed to
      be
      an expense, charge, or any other deduction from revenues even though GAAP may
      require contrary treatment or the 2008 Annual Report filed with the Commission
      by the Company may report otherwise: (i) any accounting charges for issuing
      warrants, (ii) the release of any of the Earnings Make Good Shares to the
      Investors as a result of the operation of this Section 4.1, (iii) the release
      of
      any Existing Make Good Shares and (iv) the increase in the equity ownership
      of
      the CJV by Yong Ye in excess of 1.15% in connection with the Restructuring,
      as
      reflected in the provision for minority interest on the Company’s statement of
      operations. No
      other
      exclusions shall be made for any non-recurring expenses of the Company,
      including liquidated damages under the Transaction Documents, in determining
      whether any of the 2008 Guaranteed ATNI and 2008 Guaranteed EPS has been
      achieved. 

     

    (d)
      If
      prior to the second anniversary of the filing of the 2008 Annual Report, the
      Company or its auditors report or recognize that the financial statements
      contained in such report are subject to amendment or restatement such that
      the
      Company would recognize or report adjusted 2008 After Tax Net Income of less
      than the 2008 Guaranteed ATNI or adjusted Fully Diluted Earnings Per Share
      less
      than the 2008 Guaranteed EPS, then notwithstanding the retention of the Earnings
      Make Good Shares in the escrow by the Escrow Agent in connection with the Make
      Good Pledgor’s obligations under Section 4.2, or any prior return of Earnings
      Make Good Shares to the Make Good Pledgor under Section 4.2, as the case may
      be,
      the Make Good Pledgor will, within 10 Business Days following the earlier of
      the
      filing of such amendment or restatement or recognition, deliver the Earnings
      Make Good Shares to the Investors. For the purposes hereof, “2008 After Tax Net
      Income” shall mean the Company's operating income after taxes for the fiscal
      year ending December 31, 2008, determined in accordance with GAAP as reported
      in
      the 2008 Annual Report. 

     

    
      
        
        

      

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

     

    (f) Pursuant
      to Section 4.1(a), if Roth delivers a notice to the Escrow Agent that the
      Earnings Make Good Shares are to be transferred to the Investors, then the
      Escrow Agent shall immediately forward the Earnings Make Good Shares to the
      Company’s Transfer Agent for re-issuance to the Investors in an amount to each
      Investor as set forth on Exhibit
      A
      attached
      hereto and otherwise in accordance with this Make Good Agreement. The Company
      covenants and agrees that upon any transfer of Earnings Make Good Shares to
      the
      Investors in accordance with this Make Good Agreement, the Company shall
      promptly instruct its Transfer Agent to reissue such Earnings Make Good Shares
      in the applicable Investor’s name and deliver the same, or cause the same to be
      delivered as directed by such Investor in an amount to each Investor as set
      forth on Exhibit
      A
      attached
      hereto. If the Company does not promptly provide such instructions to the
      Transfer Agent of the Company, then Roth is hereby authorized to give such
      re-issuance instruction to the Transfer Agent of the Company. If a notice from
      Roth pursuant to Section 4.1(b) indicates that the Earnings Make Good Shares
      are
      to be retained in the escrow, then the Escrow Agent will continue to retain
      the
      Earnings Make Good Shares.

     

    (d) The
      Company and Make Good Pledgor covenant and agree to provide the Escrow Agent
      with certified tax identification numbers by furnishing appropriate forms W-9
      or
      W-8 and such other forms and documents that the Escrow Agent may request,
      including appropriate W-9 or W-8 forms for each Investor. 

     

    4.2
      2009 Earnings Make Good Shares. This
      Section 4.2 shall only be operative in the event that the Earnings Make Good
      Shares have not been distributed to the Investors as described in Section 4.1(a)
      and have been retained by the Escrow Agent to be available in connection with
      the Company’s obligations to meet the 2009 Guaranteed ATNI (as defined below)
      and 2009 Guaranteed EPS (as defined below).

     

    (a)
      The
      Make Good Pledgor agrees that in the event that (i) the 2009 After Tax Net
      Income (as defined below) reported in the 2009 Annual Report equals or exceeds
      $12,649,248 and is less than $15,811,560 (the “2009 Guaranteed ATNI”), or (ii)
      the Fully Diluted Earnings Per Share reported in the 2009 Annual Report equals
      or exceeds $0.42 and is less than $0.53 (the “2009 Guaranteed EPS”), then, in
      accordance with written instructions from Roth, the Escrow Agent (on behalf
      of
      the Make Good Pledgor) will transfer a number of Earnings Make Good Shares
      equal
      to the product of (i) (A) $15,811,560 minus the 2009 After Tax Net Income,
      divided by (B) $15,811,560, and (ii) Earnings Make Good Shares, to the Investors
      on a pro-rata basis (determined by dividing each Investor's Investment Amount
      by
      the aggregate of all Investment Amounts delivered to the Company by the
      Investors hereunder) for no consideration other than their respective Investment
      Amounts paid to the Company at Closing. The Roth instructions shall provide
      that
      any remaining Earnings Make Good Shares after transfer to the Investors in
      accordance with this Section 4.2(a) shall be transferred to the Make Good
      Pledgor. 

     

    
      
        
        

      

      
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    (b)
      In
      the event that (i) the 2009 After Tax Net Income reported in the 2009 Annual
      Report is less than $12,649,248 or (ii) the Fully Diluted Earnings Per Share
      reported in the 2009 Annual Report is less than $0.42, then, in accordance
      with
      written instructions from Roth, the Escrow Agent (on behalf of the Make Good
      Pledgor) will transfer the Earnings Make Good Shares to the Investors on a
      pro-rata basis (determined by dividing each Investor's Investment Amount by
      the
      aggregate of all Investment Amounts delivered to the Company by the Investors
      hereunder) for no consideration other than their respective Investment Amounts
      paid to the Company at Closing. 

     

    (c)
      In
      the event that (i) the 2009 After Tax Net Income reported in the 2009 Annual
      Report is equal to or greater than $15,811,560 and (ii) the Fully Diluted
      Earnings Per Share reported in the 2009 Annual Report is equal to or greater
      than $0.53, then in accordance with written instructions from Roth, no transfer
      of the Earnings Make Good Shares pursuant to this Section 4.2 to the Investors
      by the Escrow Agent (on behalf of the Make Good Pledgor) shall be required
      and
      the Earnings Make Good Shares shall be returned to the Make Good Pledgor. Any
      such transfer of the Earnings Make Good Shares, or any portion thereof, pursuant
      to this Section 4.2, shall be made to the Investors or the Make Good Pledgor,
      as
      applicable, within 10 Business Days after the date which the 2009 Annual Report
      is filed with the Commission and a copy thereof is delivered to the Escrow
      Agent. 

     

    (d)
      Notwithstanding the foregoing or anything else to the contrary herein, for
      purposes of determining whether or not each of the 2009 Guaranteed ATNI and
      the
      2009 Guaranteed EPS has been met, the following items shall not be deemed to
      be
      an expense, charge, or any other deduction from revenues even though GAAP may
      require contrary treatment or the Annual Report for the fiscal year filed with
      the Commission by the Company may report otherwise: (i) any accounting charges
      for issuing warrants, (ii) the release of any of the Earnings Make Good Shares
      to the Make Good Pledgor or the Investors, as applicable, as a result of the
      operation of this Section 4.2, (iii) the release of any Existing Make Good
      Shares and (iv) the increase in the equity ownership of the CJV by Yong Ye
      in
      excess of 1.15% in connection with the Restructuring, as reflected in the
      provision for minority interest on the Company’s statement of operations. No
      other exclusions shall be made for any non-recurring expenses of the Company,
      including liquidated damages under the Transaction Documents, in determining
      whether the 2009 Guaranteed ATNI and 2009 Guaranteed EPS has been achieved.
      

     

    
      
        
        

      

      
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    (e)
      If
      prior to the second anniversary of the filing of the 2009 Annual Report, the
      Company or its auditors report or recognize that the financial statements
      contained in such report are subject to amendment or restatement such that
      the
      Company would recognize or report adjusted After Tax Net Income of less than
      $12,649,248 or adjusted Fully Diluted Earnings Per Share less than $0.42, then
      notwithstanding any prior return of the Earnings Make Good Shares, or any
      portion thereof, pursuant to this Section 4.2, to the Make Good Pledgor, the
      Make Good Pledgor will, within 10 Business Days following the earlier of the
      filing of such amendment or restatement or recognition, deliver the relevant
      Earnings Make Good Shares to the Investors on a pro rata basis; provided,
      however, that if any Earnings Make Good Shares have been transferred to the
      Investors as provided for in the second paragraph of Section 4.1(d), the Make
      Good Pledgor shall only be responsible for transferring such number of Earnings
      Make Good Shares pursuant to this paragraph of Section 4.2 (e), up to the number
      of Earnings Make Good Shares that were previously returned to the Make Good
      Pledgor. In no event shall the Make Good Pledgor be responsible for transferring
      any number of Earnings Make Good Shares in excess of what has been previously
      returned to the Make Good Pledgor pursuant to the provisions of Section 4.1
      or
      4.2, as applicable. For the purposes hereof, “2009 After Tax Net Income” shall
      mean the Company's operating income after taxes for the fiscal year ending
      December 31, 2009, determined in accordance with GAAP as reported in the 2009
      Annual Report.

     

    (f)
      If
      the 2009 Annual Report is not filed timely with the Commission and remains
      unfiled for a period in excess of 45 days after the last day that the same
      was
      required to have been filed (taking into account the relief permitted under
      Rule
      12(b)-25 of the Exchange Act), then 2009 After Tax Net Income shall be deemed
      to
      be less than the 2009 Guaranteed ATNI, and in accordance with written
      instructions from Roth, the Escrow Agent (on behalf of the Make Good Pledgor)
      shall transfer the
      Earnings Make Good Shares to the Investors on a pro-rata basis. 

     

    4.3 Restructuring
      Make Good Shares.

     

    (a)
      The
      Make Good Pledgor agrees that in the event that the License has not been issued
      to, and received by the CJV by June 30, 2009, or such later date as the Company
      and Investors holding a majority of the Shares at such time consent to in
      writing (the “License Grant Date”), in accordance with written instructions from
      Roth, the Escrow Agent (on behalf of the Make Good Pledgor) shall transfer
      the
      Restructuring Make Good Shares (as defined below), to the Investors on a
      pro-rata basis (determined by dividing each Investor's Investment Amount by
      the
      aggregate of all Investment Amounts delivered to the Company by the Investors
      hereunder) for no consideration other than their respective Investment Amounts
      paid to the Company at Closing. In the event the License has been issued by
      the
      License Grant Date, but the Restructuring is not completed by the Restructuring
      Completion Date (as defined below), the Restructuring Make Good Shares shall
      be
      transferred in accordance with the Make Good Escrow Agreement to the Investors
      on a pro-rata basis (determined by dividing each Investor’s Investment Amount by
      the aggregate of all Investment Amounts delivered to the Company by the
      Investors under the SPA) for no consideration other than their respective
      Investment Amounts paid to the Company at Closing.

     

    
      
        
        

      

      
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    (b)
      The
“Restructuring
      Make Good Shares”
means
      2,000,000 shares of Common Stock (as equitably adjusted for any stock splits,
      stock combinations, stock dividends or similar transactions) required to be
      deposited with the Escrow Agent pursuant to the terms of this Make Good
      Agreement. 

     

    (c)
      The
“Restructuring
      Completion Date”
means
      the License Grant Date plus 132 calendar days.

     

    (d)
      In
      the event that the Restructuring is consummated by the Restructuring Completion
      Date, in accordance with written instructions from Roth, the Escrow Agent (on
      behalf of the Make Good Pledgor) shall not be required to transfer the
      Restructuring Make Good Shares to the Investors, but shall return the
      Restructuring Make Good Shares to the Make Good Pledgor. Any such transfer
      of
      the Restructuring Make Good Shares shall be made to the Investors or the Make
      Good Pledgor, as applicable, within 10 Business Days after the earlier of (i)
      the date of consummation of the Restructuring and (ii) the Restructuring
      Completion Date. Notwithstanding the foregoing or anything else to the contrary
      herein, for purposes of determining whether or not the Restructuring has been
      consummated, the following conditions (which shall not be deemed to be a
      complete list of all closing conditions required to be satisfied) shall have
      been satisfied: (A) execution and completion of the asset transfer agreement
      (in
      such form acceptable to the Investors) in relation to the Yong Ye Assets
      Acquisition, (B) the increase and full contribution of the registered capital
      of
      the CJV in relation to the Yong Ye Assets Acquisition, (C) the amendments of
      the
      articles of association of the CJV and the joint venture agreement between
      the
      CJV and its shareholders (in such forms acceptable to the Investors) to enable
      the CJV to distribute 95% of its distributable profits to Asia Standard Oil
      Ltd.
      and 5% of its distributable profits to Yong Ye, (D) bring down of
      representations and warranties contained in the asset transfer agreement,
      including, but not limited to, representations and warranties relating to the
      valid title of the Yong Ye Assets being transferred, (E) issuance of a legal
      opinion by Han Kun Law Offices, the legal advisers to the CJV, in a form
      acceptable to the Investors, and (F) securing and drawing down the CJV Bank
      Loan.

     

    
      
        
        

      

      
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    4.4.
      Limitation on Disbursement of Earnings Make Good Shares and Restructuring Make
      Good Shares to Investors.

     

    The
      Escrow Agent (on behalf of the Make Good Pledgor) shall not disburse any of
      the
      Earnings Make Good Shares or Restructuring Make Good Shares to the Investors
      as
      provided for in this Section 4, and an Investor shall not have the right to
      have
      any such Earnings Make Good Shares or Restructuring Make Good Shares issued
      to
      such Investor, pursuant to Section 4 or otherwise, to the extent that after
      giving effect to such issuance in accordance with instructions provided by
      Roth,
      an Investor (together with such Investor’s Affiliates, and any other person or
      entity acting as a group together with such Investor or any of such Investor’s
      Affiliates), would beneficially own in excess of the Beneficial Ownership
      Limitation (as defined below). For purposes of the foregoing sentence, the
      number of shares of Common Stock beneficially owned by such Investor and its
      Affiliates shall include the number of shares of Common Stock issuable upon
      disbursement of the Earnings Make Good Shares or the Restructuring Make Good
      Shares with respect to which such determination is being made, but shall exclude
      the number of shares of Common Stock which would be issuable upon (A) exercise
      of any Warrants beneficially owned by an Investor or any of its Affiliates
      and
      (B) exercise or conversion of the unexercised or unconverted portion of any
      other securities of the Company (including, without limitation, any other Common
      Stock Equivalents) subject to a limitation on conversion or exercise analogous
      to the limitation contained herein beneficially owned by such Investor or any
      of
      its Affiliates.
      Except
      as set forth in the preceding sentence, for purposes of this Section 4.4,
      beneficial ownership shall be calculated in accordance with Section 13(d) of
      the
      Exchange Act and the rules and regulations promulgated thereunder, it being
      acknowledged by the Investors that none of the Escrow Agent, the Company, the
      Make Good Pledgor and Roth are representing to the Investors that such
      calculation is in compliance with Section 13(d) of the Exchange Act and the
      Investors are solely responsible for any schedules required to be filed in
      accordance therewith. To the extent that the limitation contained in this
      Section 4.4 applies, the determination of whether the relevant Earnings Make
      Good Shares or Restructuring Make Good Shares should be disbursed to such
      Investor (in relation to other securities owned by such Investor together with
      any Affiliates) shall be in the sole discretion of such Investor, and the
      submission of a Notice of Disbursement to the Escrow Agent, along with the
      written instructions the Escrow Agent will receive from Roth that the Investor
      shall be entitled to such disbursement, shall be deemed to be the Investor’s
      determination of whether such Earnings Make Good Shares or Restructuring Make
      Good Shares (in
      relation to other securities owned by such Investor together with any
      Affiliates) subject to the Beneficial Ownership Limitation, and none of Escrow
      Agent, the Company, the Make Good Pledgor and Roth shall have any obligation
      to
      verify or confirm the accuracy of such determination. In addition, a
      determination as to any group status as contemplated above shall be determined
      in accordance with Section 13(d) of the Exchange Act and the rules and
      regulations promulgated thereunder. For purposes of this Section 4.4, in
      determining the number of outstanding shares of Common Stock, an Investor may
      rely on the number of outstanding shares of Common Stock as reflected in (A)
      the
      Company’s most recent periodic or annual report, as the case may be, (B) a more
      recent public announcement by the Company or (C) any other notice by the Company
      or the Transfer Agent setting forth the number of shares of Common Stock
      outstanding. Upon the written or oral request of an Investor, the Company shall
      within two Trading Days confirm orally and in writing to the Investor the number
      of shares of Common Stock then outstanding. With respect to Black River Small
      Cap Fund Ltd. and Black River Commodity Select Fund Ltd, the “Beneficial
      Ownership Limitation” shall be 9.99%, and with respect to the other Investors,
      the “Beneficial Ownership Limitation” shall be 4.99%, of the number of shares of
      the Common Stock outstanding at the time of such disbursement. The Investor,
      upon not less than 75 days’ prior notice to the Escrow Agent, the Company, the
      Make Good Pledgor and Roth, may increase or decrease the Beneficial Ownership
      Limitation provisions of this Section 4.4 and the provisions of this Section
      4.4
      shall continue to apply. Any such increase or decrease will not be effective
      until the 75th
      day
      after such notice is delivered to the Escrow Agent, the Company, the Make Good
      Pledgor and Roth. The provisions of this paragraph shall be construed and
      implemented in a manner otherwise than in strict conformity with the terms
      of
      this Section 4.4 to correct this paragraph (or any portion hereof) which may
      be
      defective or inconsistent with the intended Beneficial Ownership Limitation
      herein contained or to make changes or supplements necessary or desirable to
      properly give effect to such limitation. The limitations contained in this
      paragraph shall apply to a successor holder of the Earnings Make Good Shares
      or
      Restructuring Make Good Shares. The provisions of this Section 4.4. shall not
      apply to the Special Situations Private Equity Fund, L.P. or to the Special
      Situations Cayman Fund, L.P.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    5.
      Duration.
      This
      Make Good Agreement shall terminate upon the distribution of all the Escrow
      Shares in accordance with the terms of this Make Good Agreement. The Company
      agrees to promptly provide the Escrow Agent written notice of the filing with
      the Commission of any financial statements or reports referenced
      herein.

     

    6.
      Escrow Shares.
      If any
      Escrow Shares are deliverable to the Investors pursuant to the SPA and in
      accordance with this Make Good Agreement, (i) Make Good Pledgor covenants and
      agrees to execute all such instruments of transfer (including stock powers
      and
      assignment documents) as are customarily executed to evidence and consummate
      the
      transfer of the Escrow Shares from Make Good Pledgor to the Investors, to the
      extent not done so in accordance with Section 2, and (ii) following its receipt
      of the documents referenced in Section 6(i), the Company consent to any such
      transfer and will provide to the Investors and to the Transfer Agent written
      confirmation of such consent, and each of the Company and Escrow Agent covenant
      and agree to cooperate with the Transfer Agent so that the Transfer Agent
      promptly reissues such Escrow Shares in the applicable Investor’s name and
      delivers the same as directed by such Investor. Until such time as (if at all)
      the Escrow Shares are required to be delivered pursuant to the SPA and in
      accordance with this Make Good Agreement, (i) any dividends payable in respect
      of the Escrow Shares and all voting rights applicable to the Escrow Shares
      shall
      be retained by Make Good Pledgor and (ii) should the Escrow Agent receive
      dividends or voting materials, such items shall not be held by the Escrow Agent,
      but shall be passed immediately on to Make Good Pledgor and shall not be
      invested or held for any time longer than is needed to effectively re-route
      such
      items to Make Good Pledgor. In the event that the Escrow Agent receives a
      communication requiring the conversion of the Escrow Shares to cash or
      the exchange of the Escrow Shares for that of an acquiring company, the Escrow
      Agent shall solicit and follow the written instructions of Make Good
      Pledgor; provided,
      that
      the cash or exchanged shares are instructed to be redeposited into the Escrow
      Account. Make Good Pledgor shall be responsible, respectively, for all taxes
      resulting from any such conversion or exchange.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    7.
      Interpleader. 
      Should
      any controversy arise among the parties hereto with respect to this Make Good
      Agreement or with respect to the right to receive the Escrow Shares, Escrow
      Agent and/or Roth shall have the right to consult and hire counsel and/or to
      institute an appropriate interpleader action to determine the rights of the
      parties. Escrow Agent and/or Roth are also each hereby authorized to institute
      an appropriate interpleader action upon receipt of a written letter of direction
      executed by the parties so directing either Escrow Agent or Roth. If Escrow
      Agent or Roth is directed to institute an appropriate interpleader action,
      it
      shall institute such action not prior to thirty (30) days after receipt of
      such
      letter of direction and not later than sixty (60) days after such date. Any
      interpleader action instituted in accordance with this Section 7 shall be filed
      in any court of competent jurisdiction in the State of New York, and the Escrow
      Shares in dispute shall be deposited with the court and in such event Escrow
      Agent and Roth shall be relieved of and discharged from any and all obligations
      and liabilities under and pursuant to this Make Good Agreement with respect
      to
      the Escrow Shares and any other obligations hereunder. 

     

    8. Exculpation
      and Indemnification of Escrow Agent and Roth. 

     

    a. Escrow
      Agent is not a party to, and is not bound by or charged with notice of any
      agreement out of which this escrow may arise. Escrow Agent acts under this
      Make
      Good Agreement as a depositary only and is not responsible or liable in any
      manner whatsoever for the sufficiency, correctness, genuineness or validity
      of
      the subject matter of the escrow, or any part thereof, or for the form or
      execution of any notice given by any other party hereunder, or for the identity
      or authority of any person executing any such notice. Escrow Agent will have
      no
      duties or responsibilities other than those expressly set forth herein. Escrow
      Agent will be under no liability to anyone by reason of any failure on the
      part
      of any party hereto (other than Escrow Agent) or any maker, endorser or other
      signatory of any document to perform such person's or entity's obligations
      hereunder or under any such document. Except for this Make Good Agreement and
      instructions to Escrow Agent pursuant to the terms of this Make Good Agreement,
      Escrow Agent will not be obligated to recognize any agreement between or among
      any or all of the persons or entities referred to herein, notwithstanding its
      knowledge thereof. Roth’s sole obligation under this Make Good Agreement is to
      provide written instruction to Escrow Agent (following such time as the Company
      files certain periodic financial reports as specified in Section 4 hereof)
      directing the distribution of the Escrow Shares. Roth will provide such written
      instructions upon review of the relevant After Tax Net Income amount reported
      in
      such periodic financial reports as specified in Section 4 hereof. Roth is not
      charged with any obligation to conduct any investigation into the financial
      reports or make any other investigation related thereto. In the event of any
      actual or alleged mistake or fraud of the Company, its auditors or any other
      person (other than Roth) in connection with such financial reports of the
      Company, Roth shall have no obligation or liability to any party
      hereunder.

     

    b. Escrow
      Agent will not be liable for any action taken or omitted by it, or any action
      suffered by it to be taken or omitted, absent gross negligence or willful
      misconduct. Escrow Agent may rely conclusively on, and will be protected in
      acting upon, any order, notice, demand, certificate, or opinion or advice of
      counsel (including counsel chosen by 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 reasonably believed
      by Escrow Agent to be genuine and to be signed or presented by the proper person
      or persons. The duties and responsibilities of the Escrow Agent hereunder shall
      be determined solely by the express provisions of this Make Good Agreement
      and
      no other or further duties or responsibilities shall be implied, including,
      but
      not limited to, any obligation under or imposed by any laws of the State of
      New
      York upon fiduciaries. THE
      ESCROW AGENT SHALL NOT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (I) DAMAGES,
      LOSSES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN
      DAMAGES, LOSSES OR EXPENSES WHICH HAVE BEEN FINALLY ADJUDICATED TO HAVE DIRECTLY
      RESULTED FROM THE ESCROW AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II)
      SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR LOSSES OF ANY KIND WHATSOEVER
      (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), EVEN IF THE ESCROW AGENT HAS
      BEEN
      ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE
      FORM
      OF ACTION.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    c. The
      Company and Make Good Pledgor each hereby, jointly and severally, indemnify
      and
      hold harmless each of Escrow Agent, Roth and any of their principals, partners,
      agents, employees and affiliates from
      and
      against any expenses, including reasonable attorneys' fees and disbursements,
      damages or losses suffered by Escrow Agent or Roth in connection with any claim
      or demand, which, in any way, directly or indirectly, arises out of or relates
      to this Make Good Agreement or the services of Escrow Agent or Roth hereunder;
      except, that if Escrow Agent or Roth is guilty of willful misconduct or gross
      negligence under this Make Good Agreement, then Escrow Agent or Roth, as the
      case may be, will bear all losses, damages and expenses arising as a result
      of
      its own willful misconduct or gross negligence. Promptly after the receipt
      by
      Escrow Agent or Roth of notice of any such demand or claim or the commencement
      of any action, suit or proceeding relating to such demand or claim, Escrow
      Agent
      or Roth, as the case may be, will notify the other parties hereto in writing.
      For the purposes hereof, the terms "expense" and "loss" will include all amounts
      paid or payable to satisfy any such claim or demand, or in settlement of any
      such claim, demand, action, suit or proceeding settled with the express written
      consent of the parties hereto, and all costs and expenses, including, but not
      limited to, reasonable attorneys' fees and disbursements, paid or incurred
      in
      investigating or defending against any such claim, demand, action, suit or
      proceeding. The provisions of this Section 8 shall survive the termination
      of
      this Make Good Agreement, and the resignation or removal of the Escrow Agent.
      

     

    9.
      Compensation of Escrow Agent.
      Escrow
      Agent shall be entitled to compensation for its services as stated in the fee
      schedule attached hereto as Exhibit
      B,
      which
      compensation shall be paid by the Company. The fee agreed upon for the services
      rendered hereunder is intended as full compensation for Escrow Agent's services
      as contemplated by this Make Good Agreement; provided,
      however,
      that in
      the event that Escrow Agent renders any material service not contemplated in
      this Make Good Agreement, or there is any assignment of interest in the subject
      matter of this Make Good Agreement, or any material modification hereof, or
      if
      any material controversy arises hereunder, or Escrow Agent is made a party
      to
      any litigation pertaining to this Make Good Agreement, or the subject matter
      hereof, then Escrow Agent shall be reasonably compensated by the Company for
      such extraordinary services and reimbursed for all costs and expenses, including
      reasonable attorney's fees, occasioned by any delay, controversy, litigation
      or
      event, and the same shall be recoverable from the Company. Prior
      to
      incurring any costs and/or expenses in connection with the foregoing sentence,
      Escrow Agent shall be required to provide written notice to the Company of
      such
      costs and/or expenses and the relevancy thereof and Escrow Agent shall not
      be
      permitted to incur any such costs and/or expenses which are not related to
      litigation prior to receiving written approval from the Company, which approval
      shall not be unreasonably withheld.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    10.
      Resignation of Escrow Agent.
      At any
      time, upon ten (10) Business Days' written notice to the Company and the
      Investors, Escrow Agent may resign and be discharged from its duties as Escrow
      Agent hereunder. As soon as practicable after its resignation, Escrow Agent
      will
      promptly turn over to a successor escrow agent appointed by the Company the
      Escrow Shares held hereunder upon presentation of a document appointing the
      new
      escrow agent and evidencing its acceptance thereof. If, by the end of the
      10-Business Day period following the giving of notice of resignation by Escrow
      Agent, the Company shall have failed to appoint a successor escrow agent, Escrow
      Agent shall deposit the Escrow Shares as directed by Roth with the understanding
      that such Escrow Shares will continue to be subject to the provisions of this
      Make Good Agreement.

     

    11.
      Records.
      Escrow
      Agent shall maintain accurate records of all transactions hereunder. Promptly
      after the termination of this Make Good Agreement or as may reasonably be
      requested by the parties hereto from time to time before such termination,
      Escrow Agent shall provide the parties hereto, as the case may be, with a
      complete copy of such records, certified by Escrow Agent to be a complete and
      accurate account of all such transactions. The authorized representatives of
      each of the parties hereto shall have access to such books and records at all
      reasonable times during normal business hours upon reasonable notice to Escrow
      Agent and at the requesting party’s expense. 

     

    12.
      Notice.
      All
      notices, communications and instructions required or desired to be given under
      this Make Good Agreement must be in writing and shall be deemed to be duly
      given
      if sent by registered or certified mail, return receipt requested, or overnight
      courier, to the addresses listed on the signature pages hereto.

     

    13.
      Execution in Counterparts.
      This
      Make Good Agreement may be executed in counterparts, each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. 

     

    14.
      Assignment and Modification.
      This
      Make Good Agreement and the rights and obligations hereunder of the Company
      may
      be assigned by the Company only following the prior written consent of Roth.
      This Make Good Agreement and the rights and obligations hereunder of the Escrow
      Agent may be assigned by the Escrow Agent only with the prior consent of the
      Company and Roth. This Make Good Agreement and the rights and obligations
      hereunder of Make Good Pledgor may not be assigned by the Make Good Pledgor.
      Subject to the requirements under federal and state securities laws, an Investor
      may assign its rights under this Make Good Agreement without any consent from
      any other party. This Make Good Agreement may not be changed orally or modified,
      amended or supplemented without an express written agreement executed by the
      Escrow Agent, the Company, Make Good Pledgor and Roth. This Make Good Agreement
      is binding upon and intended to be for the sole benefit of the parties hereto
      and their respective successors, heirs and permitted assigns, and none of the
      provisions of this Make Good Agreement are intended to be, nor shall they be
      construed to be, for the benefit of any third person. No portion of the Escrow
      Shares shall be subject to interference or control by any creditor of any party
      hereto, or be subject to being taken or reached by any legal or equitable
      process in satisfaction of any debt or other liability of any such party hereto
      prior to the disbursement thereof to such party hereto in accordance with the
      provisions of this Make Good Agreement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    15.
      Applicable Law.
      This
      Make Good Agreement shall be governed by, and construed in accordance with,
      the
      internal laws of the State of New York. The representations and warranties
      contained in this Make Good Agreement shall survive the execution and delivery
      hereof and any investigations made by any party. Each party agrees that all
      legal proceedings concerning the interpretations, enforcement and defense of
      the
      transactions contemplated by this Make Good Agreement shall be commenced
      exclusively in the state and federal courts sitting in the City of New York,
      Borough of Manhattan (the “New York Courts”). Each party hereto hereby
      irrevocably submits to the exclusive jurisdiction of the New York Courts for
      the
      adjudication of any dispute hereunder or in connection herewith, and hereby
      irrevocably waives, and agrees not to assert in any such proceeding, any claim
      that it is not personally subject to the jurisdiction of any such New York
      Court, or that such proceeding has been commenced in an improper or inconvenient
      forum. Each party hereto hereby irrevocably waives personal service of process
      and consents to process being served in any such proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with evidence
      of
      delivery) to such party at the address in effect for notices to it under this
      Make Good Agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. Nothing contained herein
      shall
      be deemed to limit in any way any right to serve process in any manner permitted
      by law.

     

    16.
      Headings.
      The
      headings contained in this Make Good Agreement are for convenience of reference
      only and shall not affect the construction of this Make Good Agreement.

     

    17.
      Attorneys' Fees.
      If any
      action at law or in equity, including an action for declaratory relief, is
      brought to enforce or interpret the provisions of this Make Good Agreement,
      the
      prevailing party shall be entitled to recover reasonable attorneys' fees from
      the other party (unless such other party is the Escrow Agent), which fees may
      be
      set by the court in the trial of such action or may be enforced in a separate
      action brought for that purpose, and which fees shall be in addition to any
      other relief that may be awarded.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    18.
      Merger or Consolidation.
      Any
      corporation or association into which the Escrow Agent may be converted or
      merged, or with which it may be consolidated, or to which it may sell or
      transfer all or substantially all of its corporate trust business and assets
      as
      a whole or substantially as a whole, or any corporation or association resulting
      from any such conversion, sale, merger, consolidation or transfer to which
      the
      Escrow Agent is a party, shall be and become the successor escrow agent under
      this Make Good Agreement and shall have and succeed to the rights, powers,
      duties, immunities and privileges as its predecessor, without the execution
      or
      filing of any instrument or paper or the performance of any further act.

     

    [THE
      REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Make Good Agreement as
      of
      the date set forth opposite their respective names.

     

    
      	
              COMPANY:

              YONGYE
                BIOTECHNOLOGY

              INTERNATIONAL,
                INC. 

            	 	
              MAKE
                GOOD PLEDGOR:

              FULL
                ALLIANCE INTERNATIONAL

              LIMITED.
                

            
	 	 	 
	
              By:

            	 /s/
              Zishen Wu 	 	
              By:

            	/s/
              Zhong Xingmei
	
              Name:
                Zishen Wu 

              Title:
                CEO

              Address:

              6th
                Floor, Suite 608 Xue Yuan International Tower

              No.
                1 Zhichu Road

              Haidian
                District

              Beijing,
                PRC

              Facsimile:
                +86 10.8231.1797

              Email:
                wzs@china-yongye.com

            	 	
              Name:
                Zhong Xingmei

              Title:
                Director

              Address:

              OMC
                Chambers

              P.O.
                Box 3152, 

              Road
                Town, Tortola, 

              British
                Virgin Islands

            

    

     

    
      	
              ESCROW
                AGENT:

              TRI-STATE
                TITLE & ESCROW, LLC

            	 	
              ROTH
                CAPITAL PARTNERS, LLC

            
	 	 	 
	
              By:

            	/s/
              Frank M. Howard 	 	
              By:

            	/s/
              Aaron M. Gurewitz 
	
              Name:
                Frank
                M. Howard

              Title:
                

               

              Address:

              8381
                Old Courthouse Rd., Suite 140

              Vienna,
                VA 22182

              Facsimile:
                

            	 	
              Name: Aaron
                M. Gurewitz

              Title:
                Managing Director, Head of Equity Capital Markets

               

              Address:
                

              24
                Corporate Plaza Drive

              Newport
                Beach, CA 92660 

              Facsimile:
                (949) 720-7223 

            

    

    

    [Investor
      Signature Pages to Follow]

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
       

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

      

      
        
          
            	
                    NAME OF
                      INVESTOR

                      

                    
                      Black
                        River Small Capitalization Fund Ltd.

                      
                        by: 
Black
                          River Asset Management
                          LLC,

                        its
                          Investment Adviser

                      

                    

                  	
                  	 

          

        

      

       

      
        	
                By:

              	/s/
                Eric Larson
	 	
                Name:  
                  Eric Larson

                
                  Title:    
                    Principal 

                

              
	 
	
                Address:    c/o
                  Black River Asset Management

              
	
                  
       12700
                  Whitewater
                  Drive

              
	
                       
      Minnetonka,
                  MN
                  55343

              
	 
	
                Facsimile:  
                  952-249-4236

              
	
                 

                Attn.: Sarah
                  Kolar

              

      

       

        
          

        

      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
       

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

        

        
          
            
              	
                      NAME OF
                        INVESTOR

                        

                      
                        Black
                          River Commodity Select Fund Ltd.

                        
                          by: 
Black
                            River Asset Management
                            LLC

                          its
                            Investment Adviser

                        

                      

                    	
                    	 

            

          

        

         

        
          	
                  By:

                	/s/
                  Eric Larson
	 	
                  Name:  
                    Eric Larson

                  
                    Title:    
                      Principal 

                  

                
	 
	
                  Address:   
                         c/o Black River Asset Management
                    LLC

                
	
                    
       12700
                    Whitewater
                    Drive

                
	
                         
      Minnetonka,
                    MN
                    55343

                
	 
	
                  Facsimile:  
                    952-249-4236

                
	
                   

                  Attn.: Sarah
                    Kolar

                

        

         

          
            

          

        

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      
         

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

        

      

       

      
        	NAME OF
                INVESTOR : Marion Lynton

      

       

      
        	By: 	/s/
                Steve Napoli 

      

      
        Name:
          Steve Napoli

      

      Title:
        Agent / Advisor

       

      Address:
        262 Harbor Dr., 4th floor

      Stamford,
        CT 06902

       

      Facsimile:
        203-355-0715

      Attn.:
        Steve Napoli

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

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

          

        

         

        
          	NAME OF
                  INVESTOR : Ardsley Partners Fund II,
                  L.P.

        

         

        
          
            	By: 	/s/
                    Steve Napoli 

          

        

        Name:
          Steve Napoli

        Title:
          Partner

         

        Address:   262
          Harbor Dr., 4th floor

        Stamford,
          CT 06902

         

        Facsimile:
          203-355-0715

        Attn.:
          Steve Napoli

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

      

       

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

            

          

           

          
            	NAME OF
                    INVESTOR : 1998 Hempleman Family
                    Trust

          

           

          
            
              	By: 	/s/
                      Phil Hempleman

            

          

          Name:
            Phil Hempleman

          Title:
            Advisor / Trustee

           

          Address:   262
            Harbor Dr., 4th floor

          Stamford,
            CT 06902

           

          Facsimile:
            203-355-0715

          Attn.:
            Steve Napoli

           

          
            
              
              

            

            
              21

              
                

              

            

            
              
              

            

          

        

      

       

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

            

          

           

          
            	NAME OF
                    INVESTOR : Ardsley Partners Institutional Fund,
                    L.P.

          

           

          
            	By:	
                    /s/
                      Steve Napoli 

                  

          

          
            	
                    Name: Steve
                      Napoli

                    Title:
                      Partner

                  

          

           

          Address:   262
            Harbor Dr., 4th floor

          Stamford,
            CT 06902

           

          Facsimile:
            203-355-0715

          Attn.:
            Steve Napoli

        

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

     

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

          

          
            
              
                	NAME OF
                        INVESTOR    Special
                        Situations Private Equity Fund,
                        L.P.

              

            

          

           

          
            	
                    By:
  

                  	/s/
                    David Greenhouse
	
                    Name:  
                      David Greenhouse

                    Title:    
                      Managing Director

                  
	 
	
                    Address:   527
                      Madison Avenue, Suite 2600

                  
	
                    New
                      York, N.Y. 10022

                  
	 
	
                    Facsimile:  
                      212-319-6677

                  
	
                    Attn.: David
                      Greenhouse / Marianne Kelly

                  

          

           

            
              

            

          

        

      

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      
         

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

              

              
                
                  
                    	NAME OF
                            INVESTOR    Special
                            Situations Cayman Fund,
                            L.P.

                  

                

              

               

              
                	
                        By:
   

                      	/s/
                        David Greenhouse
	
                        Name:  
                          David Greenhouse

                        Title:    
                          Managing Director

                      
	 
	
                        Address:  
                          527 Madison Avenue, Suite 2600

                      
	
                        New
                          York, N.Y. 10022

                      
	 
	
                        Facsimile:  
                          212-319-6677

                      
	
                        Attn.: David
                          Greenhouse / Marianne Kelly

                      

              

               

                
                  

                

              

            

          

           

          
            
              
              

            

            
              24

              
                

              

            

            
              
              

            

          

          
             

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

                

              

            

          

        

      

      
        
          
            
              	 	 
	NAME OF
                      INVESTOR    Guerrilla Partners,
                      LP

            

          

        

         

        
          	
                  By:
   

                	/s/
                  Peter Siris
	
                  Name:  
                    Peter Siris

                  Title:    
                    Managing Director

                
	 
	
                  Address:   237
                    Park Avenue, 9th Floor 

                
	
                   
                     New York, NY 10017

                
	 
	
                  Facsimile:  
                    (212) 692-7624

                
	
                  Attn.: Peter
                    Siris

                

        

         

          
            

          

        

      

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      
        
           

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

              

            

          

        

      

      
        
          
            
              	 
	NAME OF
                      INVESTOR    Hua - Mei
                      21st Century Partners,
                      LP

            

          

        

         

        
          	
                  By:  
 

                	/s/
                  Peter Siris
	
                  Name:  
                    Peter Siris

                  Title:    
                    Managing Director

                
	 
	
                  Address:   237
                    Park Avenue, 9th Floor 

                
	
                  New
                    York, NY 10017

                
	 
	
                  Facsimile:  
                    (212) 692-7624

                
	
                  Attn.: Peter
                    Siris

                

        

         

          
            

          

        

      

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
      
         

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

            

          

        

      

    

    
      
        
          
            
              
                	 	 
	NAME OF
                        INVESTOR     Straus
                        Partners, L.P.

              

            

          

           

          
            	
                    By:
   

                  	/s/
                    Andrew Marks
	
                    Name:  
                      Andrew Marks

                    Title:    
                      CFO

                  
	 
	
                    Address:   320
                      Park Avenue 

                  
	
                     
                       10th Floor 

                     
                       New York, NY 10022

                  
	 
	
                    Facsimile:  
                      212-415-7256

                  
	
                    Attn.: Andrew
                      Marks

                  

          

           

            
              

            

          

        

      

       

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      
        
           

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

              

            

          

        

      

      
        
          
            
              
                
                  	 	 
	NAME OF
                          INVESTOR    Straus-GEPT
                          Partners, L.P.

                

              

            

             

            
              	
                      By:
   

                    	/s/
                      Andrew Marks
	
                      Name:  
                        Andrew Marks

                      Title:    
                        CFO

                    
	 
	
                      Address:   320
                        Park Avenue 

                    
	
                       
                         10th Floor 

                       
                         New York, NY 10022

                    
	 
	
                      Facsimile:  
                        212-415-7256

                    
	
                      Attn.: Andrew
                        Marks

                    

            

             

              
                

              

            

          

        

         

      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      
        
          
             

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

                

              

            

          

        

        
          
            
              
                
                  
                    	 	 
	NAME OF
                            INVESTOR    MidSouth Investor
                            Fund LP

                  

                

              

               

              
                	
                        By:
   

                      	/s/
                        Lyman O Heidtke
	
                        Name:  
                          Lyman O Heidtke

                        Title:    
                          General Partner

                      
	 
	
                        Address:  201
                          4th Ave. North 

                      
	
                          Suite
                          1950 

                         
                          Nashville, TN 37219

                      
	 
	
                        Facsimile:  
                          615-254-1603

                      
	
                        Attn.: 

                      

              

               

                
                  

                

              

            

          

           

        

        
          
            
            

          

          
            29

            
              

            

          

          
            
            

          

        

         

      

    

    Exhibit
      A
      (attached as a MS Excel spreadsheet)

    

    ESCROW
      SHARES TO BE ISSUED TO INVESTORS

    

    
      	
              Investor’s Legal

              Name

            	 	
              Investor’s

              Investment

              Amount

            	 	
              Make Good

              (2008)

            	 	
              Make Good

              (2009)

            	 	
              Restructuring

              Make Good

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Make
      Good
      Escrow Fee

    Tri-State
      Title & Escrow LLC $1,000.00

    

    
      
        
        

      

      
        31Exhibit 10.1

ROSS MILLER                                                      Document Number
Secretary of State                                                20080551837-69
206 North Carson Street                                     Filing Date and Time
Carson City, Nevada 89701-4299                               08/19/2008 11:00 AM
(775) 684 5708                                                     Entity Number
Website: secretaryofstate.biz                                      E0483492006-0

                                                         Filed in the office of

                                                             /s/ Ross Miller
                                                             ROSS MILLER
                                                             Secretary of State
                                                             State of Nevada

CERTIFICATE OF CHANGE PURSUANT
          TO NRS 78.209

                                              ABOVE SPACE IS FOR OFFICE USE ONLY

               CERTIFICATE OF CHANGE FILED PURSUANT TO NRS 78.209
                         FOR NEVADA PROFIT CORPORATIONS

1.   Name of corporation:

     YOUR DIGITAL MEMORIES INC.

2.   The board of directors have adopted a resolution pursuant to NRS 78.209 and
     have obtained any required approval of the stockholders.

3.   The current number of authorized  shares at the par value,  if any, of each
     class or series, if any, of shares before the change:

     150,000,000 shares of common stock with $0.0001 par value

4.   The number of authorized shares and the par value, if any, of each class or
     series, if any, of shares after the change:

     3,600,000,000 shares of common stock with $0.0001 par value

5.   The number of shares of each affected class or series, if any, to be issued
     after the change in  exchange  for each  issued  share of the same class or
     series:

     The  corporation  shall  issue 25 shares of common  stock for every one (1)
     share of common  stock  issued  and  outstanding  immediately  prior to the
     effective date of the forward stock split.

6.   The provisions,  if any, for the issuance of fractional  shares, or for the
     payment  of  money or the  issuance  of  scrip  to  stockholders  otherwise
     entitled to a fraction of a share and the percentage of outstanding  shares
     affected thereby:

     No fractional shares shall be issued.

7.   Effective date of filing (optional):              September 4, 2008
                 (must not be later than 90 days after the certificate is filed)

8.   Officer Signature X  /s/ A. Bard                                 President
                        Signature of Officer                   Title

IMPORTANT: Failure to include any of the above information and submit the proper
fees may cause this filing to be rejected.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]