Document:

EXHIBIT
      4.5

     

    

    REGISTRATION
      RIGHTS AGREEMENT 

     

      This
        Registration Rights Agreement (this “Agreement”)
        is
        made and entered into as of September 5, 2008, by and among Yongye Biotechnology
        International, Inc., a Nevada corporation (the “Company”),
        and
        the investors signatory hereto (each an “Investor”
and
        collectively, the “Investors”).

     

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

     

    The
      Company and the Investors hereby agree as follows:

     

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

     

    “Delivery
      Date”
means
      the applicable date on which each of (i) the Restructuring Make Good Shares,
      (ii) the Make Good Shares for the fiscal year ending December 31, 2008 and
      (iii)
      the Make Good Shares for the fiscal year ending December 31, 2009 are required
      to be delivered to the Investors by the Make Good Pledgor pursuant to the Make
      Good Escrow Agreement. 

     

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

     

    “April
      2008 Holder”
or
      “April
      2008 Holders”
means
      the holder or holders, as the case may be, from time to time of April 2008
      Registrable Securities. 

     

    “April
      2008 Registrable
      Securities”
means:
      (i) the shares of Common Stock issued pursuant to the April Agreement, (ii)
      the
      2008 Make Good Shares (as defined in the April Agreement), as applicable, (iii)
      any shares of Common Stock issuable upon the exercise of warrants issued to
      the
      investors pursuant to the April Financing, (iv) any shares of Common Stock
      issuable upon the exercise of warrants issued to any placement agent in
      connection with the April Financing and (v) any securities issued or
      issuable upon any stock split, dividend or other distribution, recapitalization
      or similar event, or any price adjustment as a result of such stock splits,
      reverse stock splits or similar events with respect to any of the securities
      referenced in (i), (ii), (iii) or (iv) above. 

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    2. Registration.

     

    (a) On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of all Registrable
      Securities not already covered by an existing and effective Registration
      Statement for an offering to be made on a continuous basis pursuant to Rule
      415.
      Each Registration Statement required to be filed under this Agreement shall
      be
      filed on Form S-1 (or on such other form appropriate for such purpose) and
      contain (except if otherwise required pursuant to written comments received
      from
      the Commission upon a review of such Registration Statement, other than as
      to
      the characterization of any Holder as an underwriter, which shall not occur
      unless such characterization is required by the Commission or consented to
      by
      such Holder, or the Holder has identified itself as an underwriter in the
      Selling Holder Questionnaire) the “Plan of Distribution” attached hereto as
Annex
      A.
      The
      Company shall cause each Registration Statement required to be filed under
      this
      Agreement to be declared effective under the Securities Act as soon as possible
      but, in any event, no later than its Effectiveness Date, and shall use its
      reasonable best efforts to keep each such Registration Statement continuously
      effective during its entire Effectiveness Period. By 5:00 p.m. (New York City
      time) on the Business Day

     

    
      
        
        

      

      
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    immediately
      following the Effective Date of each Registration Statement, the Company shall
      file with the Commission in accordance with Rule 424 under the Securities Act
      the final prospectus to be used in connection with sales pursuant to such
      Registration Statement (whether or not such filing is technically required
      under
      such Rule). If for any reason other than due solely to SEC Restrictions, a
      Registration Statement is effective but not all outstanding Registrable
      Securities are registered for resale pursuant thereto, then the Company shall
      prepare and file by the applicable Filing Date an additional Registration
      Statement to register the resale of all such unregistered Registrable Securities
      for an offering to be made on a continuous basis pursuant to Rule
      415.

     

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

     

    
      
        
        

      

      
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    effective
      by the Commission such additional Registration Statements in the time frames
      set
      forth herein as necessary to ultimately cause to be covered by effective
      Registration Statements all Registrable Securities and April 2008 Registrable
      Securities (if such Registrable Securities or April 2008 Registrable Securities
      cannot at such time be resold by the Holders or the April 2008 Holders thereof
      without volume limitations pursuant to Rule 144).

     

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

     

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

     

    (e) [Intentionally
      omitted.]

     

    (f) If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date covering
      the
      Registrable Securities required under this Agreement to be included therein
      (if
      the

     

    
      
        
        

      

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

     

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

     

    3. Registration
      Procedures.
      

     

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

     

    
      
        
        

      

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

     

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

     

    (c) Notify
      the Holders as promptly as reasonably possible (and, in the case of (i)(A)
      below, not less than three Trading Days prior to such filing and, in the case
      of
      (v) below, not less than three Trading Days prior to the financial statements
      in
      any Registration Statement becoming ineligible for inclusion therein) and (if
      requested by any such Person) confirm such notice in writing no later than
      one
      Trading Day following the day (i)(A) when a Prospectus or any Prospectus
      supplement or post-effective amendment to a Registration Statement is proposed
      to be filed; (B) when the Commission notifies the Company whether there will
      be
      a “review” of such Registration Statement and whenever the Commission comments
      in writing on such Registration Statement (the Company shall provide true and
      complete copies thereof and all written responses thereto to each of the Holders
      that pertain to the Holders as a Selling Stockholder or to the Plan of
      Distribution, but not information which the Company believes would constitute
      material and non-public information); and (C) with respect to each
      Registration

     

    
      
        
        

      

      
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    Statement
      or any post-effective amendment, when the same has become effective; (ii) of
      any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission of any stop
      order suspending the effectiveness of a Registration Statement covering any
      or
      all of the Registrable Securities or the initiation of any Proceedings for
      that
      purpose; (iv) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any Proceeding for such purpose; and (v) of the occurrence of
      any
      event or passage of time that makes the financial statements included in a
      Registration Statement ineligible for inclusion therein or any statement made
      in
      such Registration Statement or Prospectus or any document incorporated or deemed
      to be incorporated therein by reference untrue in any material respect or that
      requires any revisions to such Registration Statement, Prospectus or other
      documents so that, in the case of such Registration Statement or the Prospectus,
      as the case may be, it will not contain any untrue statement of a material
      fact
      or omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading. 

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

    5. Indemnification.
      

     

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, investment advisors,
      partners, members and employees of each of them, each Person who controls any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, reasonable costs of

     

    
      
        
        

      

      
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    preparation
      and reasonable attorneys’ fees) and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in any Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, except to the extent, but only to the extent, that (1) such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement, such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose) or (2) in the case of an occurrence
      of
      an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
      of an outdated or defective Prospectus after the Company has notified such
      Holder in writing that the Prospectus is outdated or defective and prior to
      the
      receipt by such Holder of an Advice or an amended or supplemented Prospectus,
      but only if and to the extent that following the receipt of the Advice or the
      amended or supplemented Prospectus the misstatement or omission giving rise
      to
      such Loss would have been corrected. The Company shall notify the Holders
      promptly of the institution, threat or assertion of any Proceeding of which
      the
      Company is aware in connection with the transactions contemplated by this
      Agreement.

     

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon: (x) such Holder’s failure to comply timely with the prospectus delivery
      requirements of the Securities Act after receiving written notice from the
      Company that Rule 172 of the Securities Act may not be relied upon, or (y)
      any
      untrue statement of a material fact contained in any Registration Statement,
      any
      Prospectus, or any form of prospectus, or in any amendment or supplement
      thereto, or arising solely out of or based solely upon any omission of a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading to the extent, but only to the extent that, (1) such
      untrue statements or omissions are based solely upon information regarding
      such
      Holder furnished in writing to the Company by such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in
      the Registration Statement (it being understood that the Holder has approved
      Annex A hereto for this purpose), such Prospectus or such form of Prospectus
      or
      in any amendment or supplement thereto or (2) in the case of an occurrence
      of an
      event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
      of
      an outdated or defective Prospectus after the Company has notified such Holder
      in writing that the Prospectus is outdated or defective and prior to the receipt
      by such Holder of an Advice or an amended or supplemented Prospectus, but only
      if and to the extent that following the receipt of the Advice or the amended
      or
      supplemented Prospectus the misstatement or omission giving rise to such Loss
      would have

     

    
      
        
        

      

      
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    been
      corrected. In no event shall the liability of any selling Holder hereunder
      be
      greater in amount than the dollar amount of the net proceeds received by such
      Holder upon the sale of the Registrable Securities giving rise to such
      indemnification obligation. 

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

    6. Miscellaneous.

     

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

     

    (b) No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule
      3.1(v)
      to the
      Purchase Agreement, neither the Company nor any of its security holders (other
      than the Holders in such capacity pursuant hereto) may include securities of
      the
      Company in a Registration Statement other than the Registrable Securities and
      the April 2008 Registrable

     

    
      
        
        

      

      
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    Securities,
      and the Company shall not during the Effectiveness Period enter into any
      agreement providing any such right to any of its security holders. 

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

    If
      to the
      Company:

    Yongye
      Biotechnology International, Inc.

    6th
      Floor,
      Suite 608 Xue Yuan International Tower

    No.
      1
      Zhichun Road

    Haidian
      District

    Beijing,
      PRC

    Facsimile:
      +86 1082311797

    Email:
      wzs@china-yongye.com

    Attn.:
      CEO 

    With
      a
      copy to:

    Loeb
      & Loeb LLP

    345
      Park
      Avenue

    New
      York,
      NY 10154

    Facsimile:
      (212) 407-4000

    Email:
      mnussbaum@loeb.com

    Attn.:
      Mitchell S. Nussbaum, Esq.

    

    If
      to an
      Investor:

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

     

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

    

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

    

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

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

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

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

    

    YONGYE
      BIOTECHNOLOGY INTERNATIONAL, INC.

     

     

      By: 
        /s/ Zishen Wu
        
          

        

      

    Name:
      Zishen Wu

    Title:
      CEO

    

    

    

    

    [REMINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    [SIGNATURE
      PAGES OF INVESTORS TO FOLLOW]

     

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

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

    
      
        	 	
                NAME
                  OF INVESTING ENTITY

              
	 	 
	 	
                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
                  FOR NOTICE

              
	 	
                 

              
	 	
                c/o:
                  Black
                  River Asset Management
                  LLC,     

              
	 	
                Street:
                  12700
                  Whitewater
                  Drive                     

              
	 	
                City/State/Zip:
                  Minnetonka,
                  MN
                  55343         

              
	 	
                Attention:
                  Sarah
                  Kolar                                    

              
	 	
                Tel:
                  952-984-3249                                          

              
	 	
                Fax:
                  952-249-4236                                          

              
	 	
                Email:
                  ______________________________

              

      

    

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

    

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

       

      
        
          	 	
                  NAME
                    OF INVESTING ENTITY

                
	 	 
	 	
                  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
                    FOR NOTICE

                
	 	
                   

                
	 	
                  c/o:
                    Black
                    River Asset Management
                    LLC      

                
	 	
                  Street:
                    12700
                    Whitewater
                    Road                      

                
	 	
                  City/State/Zip:
                    Minnetonka,
                    MN
                    55343         

                
	 	
                  Attention:
                    Sarah
                    Kolar                                    

                
	 	
                  Tel:
                    952-984-3249                                          

                
	 	
                  Fax:
                    952-249-4236                                          

                
	 	
                  Email:
                    ______________________________

                

        

      

      
        
          
          

        

        
          -
            20
            -

          
            

          

        

        
          
          

        

      

      

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

         

        
          
            
              	 	
                      NAME
                        OF INVESTING ENTITY

                    
	 	 
	 	
                      Ardsley
                        Partners Institutional Fund, L.P.

                    
	 	
                       

                    
	 	
                      By:
                        /s/
                        Steve
                        Napoli                          

                    
	 	
                      Name:
                        Steve Napoli

                    
	 	
                      Title:
                        Partner

                    
	 	
                       

                    
	 	
                      ADDRESS
                        FOR NOTICE

                    
	 	
                       

                    
	 	
                      c/o:
                        Ardsley
                        Partners                                       

                    
	 	
                      Street:
                        262
                        Harbor
                        Dr                                      

                    
	 	
                      City/State/Zip:
                        Stamford,
                        CT
                        06902               

                    
	 	
                      Attention:
                        Steve
                        Napoli                                   

                    
	 	
                      Tel:
                        203-564-4230                                          

                    
	 	
                      Fax:
                        203-355-0715                                          

                    
	 	
                      Email:
                        Steve@ardsley.com                             

                    

            

          

        

        
          
            
            

          

          
            -
              21
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              	 	
                      NAME
                        OF INVESTING ENTITY

                    
	 	 
	 	
                      1998
                        Hempleman Family Trust, dated 2/25/98

                    
	 	
                       

                    
	 	
                      By:
                        /s/ Phil
                        Hempleman                     

                    
	 	
                      Name:
                        Phil Hempleman

                    
	 	
                      Title:
                        Advisor / Trustee

                    
	 	
                       

                    
	 	
                      ADDRESS
                        FOR NOTICE

                    
	 	
                       

                    
	 	
                      c/o:
                        Ardsley
                        Partners                                       

                    
	 	
                      Street:
                        262
                        Harbor
                        Dr                                      

                    
	 	
                      City/State/Zip:
                        Stamford,
                        CT
                        06902               

                    
	 	
                      Attention:
                        Steve
                        Napoli                                   

                    
	 	
                      Tel:
                        203-564-4230                                          

                    
	 	
                      Fax:
                        203-355-0715                                          

                    
	 	
                      Email:
                        Steve@ardsley.com                             

                    

            

          

        

        
          
            
            

          

          
            -
              22
              -

            
              

            

          

          
            
            

          

        

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

         

        
          
            
              	 	
                      NAME
                        OF INVESTING ENTITY

                    
	 	 
	 	
                      Ardsley
                        Partners Fund II, L.P.

                    
	 	
                       

                    
	 	
                      By:
                        /s/
                        Steve
                        Napoli                          

                    
	 	
                      Name:
                        Steve Napoli

                    
	 	
                      Title:
                        Partner

                    
	 	
                       

                    
	 	
                      ADDRESS
                        FOR NOTICE

                    
	 	
                       

                    
	 	
                      c/o:
                        Ardsley
                        Partners                                       

                    
	 	
                      Street:
                        262
                        Harbor
                        Dr                                      

                    
	 	
                      City/State/Zip:
                        Stamford,
                        CT
                        06902               

                    
	 	
                      Attention:
                        Steve
                        Napoli                                   

                    
	 	
                      Tel:
                        203-564-4230                                          

                    
	 	
                      Fax:
                        203-355-0715                                          

                    
	 	
                      Email:
                        Steve@ardsley.com                             

                    

            

          

        

        
          
            
            

          

          
            -
              23
              -

            
              

            

          

          
            
            

          

        

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

         

        
          
            
              	 	
                      NAME
                        OF INVESTING ENTITY

                    
	 	 
	 	
                      Marion
                        Lynton

                    
	 	
                       

                    
	 	
                      By:
                        /s/
                        Steve
                        Napoli                          

                    
	 	
                      Name:
                        Steve Napoli

                    
	 	
                      Title:
                        Agent / Advisor

                    
	 	
                       

                    
	 	
                      ADDRESS
                        FOR NOTICE

                    
	 	
                       

                    
	 	
                      c/o:
                        Ardsley
                        Partners                                       

                    
	 	
                      Street:
                        262
                        Harbor
                        Dr                                      

                    
	 	
                      City/State/Zip:
                        Stamford,
                        CT
                        06902               

                    
	 	
                      Attention:
                        Steve
                        Napoli                                   

                    
	 	
                      Tel:
                        203-564-4230                                          

                    
	 	
                      Fax:
                        203-355-0715                                          

                    
	 	
                      Email:
                        Steve@ardsley.com                             

                    

            

          

        

        
          
            
            

          

          
            -
              24
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              
                	 	
                        NAME
                          OF INVESTING ENTITY

                      
	 	 
	 	
                        Special
                          Situations Private Equity Fund, L.P.

                      
	 	 
	 	
                        By:
                          /s/
                          David
                          Greenhouse                

                      
	 	
                        Name:
                          David Greenhouse

                      
	 	
                        Title:
                          Managing Director

                      
	 	
                         

                      
	 	
                        ADDRESS
                          FOR NOTICE

                      
	 	
                         

                      
	 	
                        c/o:                                                                  

                      
	 	
                        Street:
                          527
                          Madison Ave. Suite
                          2600              

                      
	 	
                        City/State/Zip:
                          New
                          York, N.Y.
                          10022           

                      
	 	
                        Attention:
                          David
                          Greenhouse/Marianne Kelly

                      
	 	
                        Tel:
                          212-319-6670                                           

                      
	 	
                        Fax:
                          212-319-6677                                           

                      
	 	
                        Email:
                                                                                        

                      

              

            

          

        

        
          
            
            

          

          
            -
              25
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              

                
                  	 	
                          NAME
                            OF INVESTING ENTITY

                        
	 	 
	 	
                          Special
                            Situations Cayman Fund, L.P.

                        
	 	 
	 	
                          By:
                            /s/
                            David
                            Greenhouse                

                        
	 	
                          Name:
                            David Greenhouse

                        
	 	
                          Title:
                            Managing Director

                        
	 	
                           

                        
	 	
                          ADDRESS
                            FOR NOTICE

                        
	 	
                           

                        
	 	
                          c/o:                                                                  

                        
	 	
                          Street:
                            527
                            Madison Ave. Suite
                            2600              

                        
	 	
                          City/State/Zip:
                            New
                            York, N.Y.
                            10022           

                        
	 	
                          Attention:
                            David
                            Greenhouse/Marianne Kelly

                        
	 	
                          Tel:
                            212-319-6670                                           

                        
	 	
                          Fax:
                            212-319-6677                                           

                        
	 	
                          Email:
                                                                                          

                        

                

              

            

          

        

        
          
            
            

          

          
            -
              26
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              
                

                  
                    	 	
                            NAME
                              OF INVESTING ENTITY

                          
	 	 
	 	
                            MidSouth
                              Investor Fund LP

                          
	 	 
	 	
                            By:
                              /s/
                              Lyman O.
                              Heidtke                  

                          
	 	
                            Name:
                              Lyman O. Heidtke

                          
	 	
                            Title:
                              General Partner

                          
	 	
                             

                          
	 	
                            ADDRESS
                              FOR NOTICE

                          
	 	
                             

                          
	 	
                            c/o:
                              Heidtke
                              & Company
                              Inc.                          

                          
	 	
                            Street:
                              201
                              4th Ave.
                              North Suite
                              1950              

                          
	 	
                            City/State/Zip:
                              Nashville,
                              TN
                              37219               

                          
	 	
                            Attention:
                              Lyman
                              O
                              Heidtke                           

                          
	 	
                            Tel:
                              615-254-0992                                           

                          
	 	
                            Fax:
                              615-254-1603                                           

                          
	 	
                            Email:
                              buzz@msifund.com                              

                          

                  

                

              

            

          

        

        
          
            
            

          

          
            -
              27
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              
                
                  

                    
                      	 	
                              NAME
                                OF INVESTING ENTITY

                            
	 	 
	 	
                              Hua-Mei
                                21st
                                Century Partners, LP

                            
	 	 
	 	
                              By:
                                /s/
                                Peter
                                Siris                                

                            
	 	
                              Name:
                                Peter Siris

                            
	 	
                              Title:
                                Managing Director

                            
	 	
                               

                            
	 	
                              ADDRESS
                                FOR NOTICE

                            
	 	
                               

                            
	 	
                              c/o:
                                Guerrilla
                                Capital Management,
                                LLC        

                            
	 	
                              Street:
                                237
                                Park Avenue, 9th
                                Floor                   

                            
	 	
                              City/State/Zip:
                                New
                                York, NY
                                10017             

                            
	 	
                              Attention:
                                Peter
                                Siris                                      

                            
	 	
                              Tel:
                                (212)
                                692-7692                                         

                            
	 	
                              Fax:
                                (212)
                                692-7624                                        

                            
	 	
                              Email:
                                psiris@ix.netcom.com                          

                            

                    

                  

                

              

            

          

        

        
          
            
            

          

          
            -
              28
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              
                
                  
                    

                      
                        	 	
                                NAME
                                  OF INVESTING ENTITY

                              
	 	 
	 	
                                Guerrilla
                                  Partners, LP

                              
	 	 
	 	
                                By:
                                  /s/
                                  Peter
                                  Siris                                

                              
	 	
                                Name:
                                  Peter Siris

                              
	 	
                                Title:
                                  Managing Director

                              
	 	
                                 

                              
	 	
                                ADDRESS
                                  FOR NOTICE

                              
	 	
                                 

                              
	 	
                                c/o:
                                  Guerrilla
                                  Capital Management,
                                  LLC        

                              
	 	
                                Street:
                                  237
                                  Park Avenue, 9th
                                  Floor                   

                              
	 	
                                City/State/Zip:
                                  New
                                  York, NY
                                  10017             

                              
	 	
                                Attention:
                                  Peter
                                  Siris                                      

                              
	 	
                                Tel:
                                  (212)
                                  692-7692                                         

                              
	 	
                                Fax:
                                  (212)
                                  692-7624                                        

                              
	 	
                                Email:
                                  psiris@ix.netcom.com                          

                              

                      

                    

                  

                

              

            

          

        

        
          
            
            

          

          
            -
              29
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              
                
                  
                    
                      
                        

                          
                            	 	
                                    NAME
                                      OF INVESTING ENTITY

                                  
	 	 
	 	
                                    Straus-GEPT
                                      Partners, L.P.

                                  
	 	 
	 	
                                    By:
                                      /s/
                                      Andrew
                                      Marks                                      

                                  
	 	
                                    Name:
                                      Andrew marks

                                  
	 	
                                    Title:
                                      CFO

                                  
	 	
                                     

                                  
	 	
                                    ADDRESS
                                      FOR NOTICE

                                  
	 	
                                     

                                  
	 	
                                    c/o:
                                      Straus
                                      Asset
                                      Management                         

                                  
	 	
                                    Street:
                                      320
                                      Park
                                      Avenue                                  

                                  
	 	
                                    City/State/Zip:
                                      New
                                      York, NY
                                      10022             

                                  
	 	
                                    Attention:
                                      Andrew
                                      Marks                                

                                  
	 	
                                    Tel:
                                      212-415-7274                                           

                                  
	 	
                                    Fax:
                                      212-415-7256                                          

                                  
	 	
                                    Email:
                                      amarks@strauspartners.com                

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

        
          
            
            

          

          
            -
              30
              -

            
              

            

          

          
            
            

          

        

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

        
          
            
              
                
                  
                    
                       

                    

                  

                

              

            

          

        

        
          	 	
                  NAME
                    OF INVESTING ENTITY

                
	 	 
	 	
                  Straus
                    Partners, L.P.

                
	 	 
	 	
                  By:
                    /s/
                    Andrew
                    Marks                      

                
	 	
                  Name:
                    Andrew Marks

                
	 	
                  Title:
                    CFO

                
	 	
                   

                
	 	
                  ADDRESS
                    FOR NOTICE

                
	 	
                   

                
	 	
                  c/o:
                    Straus
                    Asset
                    Management                         

                
	 	
                  Street:
                    320
                    Park
                    Avenue                                  

                
	 	
                  City/State/Zip:
                    New
                    York, NY
                    10022             

                
	 	
                  Attention:
                    Andrew
                    Marks                                

                
	 	
                  Tel:
                    212-415-7274                                           

                
	 	
                  Fax:
                    212-415-7256                                          

                
	 	
                  Email:
                    amarks@strauspartners.com                

                

        

        
          
            
            

          

          
            -
              31
              -

            
              

            

          

          
            
            

          

        

      

    

     

    Annex
      A

    Plan
      of
      Distribution 

     

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

     

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

     

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

     

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

     

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

     

    · privately
      negotiated transactions; 

     

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

     

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

     

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

     

    · a
      combination of any such methods of sale; and 

     

    · any
      other
      method permitted pursuant to applicable law. 

     

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

     

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

     

    
      
        
        

      

      
        -
          32
          -

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

    The
      Company has advised each Selling Stockholder that it may not use shares
      registered on this Registration Statement to cover short sales of Common Stock
      made prior to the date on which this Registration Statement shall have been
      declared effective by the Commission. If a

     

    
      
        
        

      

      
        -
          33
          -

        
          

        

      

      
        
        

      

    

    Selling
      Stockholder uses this prospectus for any sale of the Common Stock, it will
      be
      subject to the prospectus delivery requirements of the Securities Act. The
      Selling Stockholders will be responsible to comply with the applicable
      provisions of the Securities Act and Exchange Act, and the rules and regulations
      thereunder promulgated, including, without limitation, Regulation M, as
      applicable to such Selling Stockholders in connection with resales of their
      respective shares under this Registration Statement.

     

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

     

    
      
        
        

      

      
        -
          34
          -

        
          

        

      

      
        
        

      

    

    Annex
      B

    YONGYE
      BIOTECHNOLOGY INTERNATIONAL, INC. 

     

    Selling
      Securityholder Notice and Questionnaire 

     

    The
      undersigned beneficial owner of common stock (the “Common
      Stock”),
      of
YONGYE BIOTECHNOLOGY
      INTERNATIONAL, INC.,
      a
      Nevada corporation (the “Company”),
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      Registration Statement for the registration and resale of the Registrable
      Securities, in accordance with the terms of the Registration Rights Agreement,
      dated as of August 26, 2008 (the “Registration
      Rights Agreement”),
      among
      the Company and the Investors named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms used and not otherwise defined herein shall have
      the meanings ascribed thereto in the Registration Rights Agreement.

     

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

     

    QUESTIONNAIRE
      

     

    
      	
              1.

            	
              Name.

            	 
	 	
               

              (a)    Full
                Legal Name of Selling Securityholder

              _____________________________________________________________

            
	 	
               

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

              _____________________________________________________________

            
	 	
               

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

              _____________________________________________________________

            
	 	 
	
              2.

            	
              Address
                for Notices to Selling Securityholder:

            
	
              ----------______________________________________________________________________

            
	
              ----------______________________________________________________________________

            
	
              ----------______________________________________________________________________

            
	
              ----------______________________________________________________________________

            
	
              Telephone:_____________________________________________________________

            
	
              Fax: 

            
	
              Contact
                Person: 

            
	 

    

     

    
      
        
        

      

      
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          35
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              3.

            	
              Beneficial
                Ownership of Registrable Securities:

            
	 
	
              Type
                and Principal Amount of Registrable Securities beneficiary
                owned:

            
	
              ___________________________________________________________

            
	
              ___________________________________________________________

            
	
              ___________________________________________________________

            
	 
	
              4.

            	
              Broker-Dealer
                Status:

            
	 	
               

              (a)    Are
                you a broker-dealer?

               

              Yes
                 ̈ No
                 ̈

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

            
	 	
               

              (b)    Are
                you an affiliate of a broker-dealer?

               

              Yes
                 ̈ No
                 ̈

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

              Yes
                 ̈ No
                 ̈

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

            
	 	 
	
              5.

            	
              Beneficial
                Ownership of Other Securities of the Company Owned by
                the

              Selling
                Securityholder.

            
	 	
               

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

               

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

            
	
              ___________________________________________________________

            
	
              ___________________________________________________________

            
	 
	
              6.

            	
              Relationship
                with the Company:

            
	
               

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

            

    

     

    
      
        
        

      

      
        -
          36
          -

        
          

        

      

      
        
        

      

    

     

     

    
      	
              State
                any exceptions here:

            
	
              ___________________________________________________________

            
	
              ___________________________________________________________

            
	 
	
              7.

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

            
	 	 
	 	The
              undersigned agrees to promptly notify the Company of any inaccuracies
              or
              changes in the information provided herein that may occur subsequent
              to
              the date hereof and prior to the Effective Date for the Registration
              Statement. 
	 	 
	 	Certain
              legal consequences arise from being named as a Selling Securityholder
              in
              the Registration Statement and related prospectus. Accordingly, the
              undersigned is advised to consult their own securities law counsel
              regarding the consequence of being named or not being named as a Selling
              Securityholder in the Registration Statement and the related prospectus.
              
	 	 
	 	By
              signing below, the undersigned consents to the disclosure of the
              information contained herein in its answers to Items 1 through 6 and
              the
              inclusion of such information in the Registration Statement and the
              related prospectus. The undersigned understands that such information
              will
              be relied upon by the Company in connection with the preparation or
              amendment of the Registration Statement and the related prospectus.
              The
              undersigned hereby elects to include the Registrable Securities owned
              by
              it and listed above in Item 3 (unless otherwise specified in Item 3)
              in
              the Registration Statement.

    

     

     

    
      
        
        

      

      
        -
          37
          -

        
          

        

      

      
        
        

      

    

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

     

    Dated:_______________________

    Beneficial
      Owner:________________________

     

    By:___________________________________

    Name:

    Title:

    

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

    

    Ms.
      Allyson Stewart

    Loeb
      & Loeb LLC

    345
      Park Avenue

    New
      York, New York 10154-1895

    Tel: (212)
      407-4000

    Fax: (212)
      407-4990

     

    
      
        
        

      

      
        -
          38
          -EXHIBIT
      4.7

     

      FORM
        OF INVESTOR WARRANT

    Warrant
      No.: YBI.___

    

    NEITHER
      THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A FINANCIAL INSTITUTION THAT
      IS
      AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES
      ACT.

    

    COMMON
      STOCK PURCHASE WARRANT

     

    YONGYE
      BIOTECHNOLOGY INTERNATIONAL, INC.

     

    Warrant
      Shares: _______

      Initial
        Exercise Date: September __, 2008

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, __________________ (the “Holder“)
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the five year anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Yongye Biotechnology
      International, Inc., a Nevada corporation (the “Company”),
      up to
      ____________ shares (the “Warrant
      Shares”)
      of
      Common Stock. The purchase price of one share of Common Stock under this Warrant
      shall be equal to the Exercise Price, as defined in Section 2(b).

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      of even date herewith, among the Company and the purchasers signatory
      thereto.

     

    Section
      2.  Exercise.

     

     

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

     

    (a) Exercise
      of Warrant. Exercise
      of the purchase rights represented by this Warrant may be made, in whole or
      in
      part, at any time or times on or after the Initial Exercise Date and on or
      before the Termination Date by delivery to the Company (or such other office
      or
      agency of the Company as it may designate by notice in writing to the registered
      Holder at the address of the Holder appearing on the books of the Company)
      of a
      duly executed facsimile copy of the Notice of Exercise Form annexed hereto;
      and,
      within 3 Trading Days of the date said Notice of Exercise is delivered to the
      Company, the Company shall have received payment of the aggregate Exercise
      Price
      of the shares thereby purchased by wire transfer or cashier’s check drawn on a
      United States bank. If the exercise is for less than all of the Warrant Shares,
      then the Company shall return to the Holder, together with the certificate(s)
      for the Warrant Shares, a new Warrant certificate for the balance of the Warrant
      Shares.

     

    (b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be $1.848,
      subject to adjustment hereunder (the “Exercise
      Price”);
      provided, however, after the Effective Date, the Company shall have the option
      to reduce the then Exercise Price to any amount for up to 100% of all
      outstanding Warrants.

     

    (c) Cashless
      Exercise.
      If, at
      any time after the first anniversary of the date that this Warrant is issued,
      there is no effective Registration Statement registering, or no current
      prospectus available for, the resale of the Warrant Shares by the Holder, then
      this Warrant may also be exercised at such time by means of a “cashless
      exercise” in which the Holder shall be entitled to receive a certificate for the
      number of Warrant Shares equal to the quotient obtained by dividing [(A-B)
      (X)]
      by (A), where:

     

    
      	 	
              (A)
                =

            	
              the
                VWAP on the Trading Day immediately preceding the date of such
                election;

            

    

     

    
      	 	
              (B)
                =

            	
              the
                Exercise Price of this Warrant, as adjusted;
                and

            

    

     

    
      	 	
              (X)
                =

            	
              the
                number of Warrant Shares issuable upon exercise of this Warrant in
                accordance with the terms of this Warrant by means of a cash exercise
                rather than a cashless exercise.

            

    

     

    (d) Exercise
      Limitations. The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      2 or
      otherwise, to the extent that after giving effect to such issuance after
      exercise as set forth on the applicable Notice of Exercise, the Holder (together
      with the Holder’s Affiliates, and any other person or entity acting as a group
      together with the Holder or any of the Holder’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 the Holder and its Affiliates shall include the number
      of
      shares of Common Stock issuable upon exercise of this Warrant with respect
      to
      which such determination is being made,

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

    but
      shall
      exclude the number of shares of Common Stock which would be issuable upon (A)
      exercise of the remaining, nonexercised portion of this Warrant beneficially
      owned by the Holder or any of its Affiliates and (B) exercise or conversion
      of
      the unexercised or nonconverted 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 the Holder or any of its affiliates. Except as
      set
      forth in the preceding sentence, for purposes of this Section 2(d), 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 Holder that the Company is not representing to the Holder that such
      calculation is in compliance with Section 13(d) of the Exchange Act and the
      Holder is solely responsible for any schedules required to be filed in
      accordance therewith. To the extent that the limitation contained in this
      Section 2(d) applies, the determination of whether this Warrant is exercisable
      (in relation to other securities owned by the Holder together with any
      Affiliates) and of which portion of this Warrant is exercisable shall be in
      the
      sole discretion of the Holder, and the submission of a Notice of Exercise shall
      be deemed to be the Holder’s determination of whether this Warrant is
      exercisable (in relation to other securities owned by the Holder together with
      any Affiliates) and of which portion of this Warrant is exercisable, in each
      case subject to the Beneficial Ownership Limitation, and the Company shall
      have
      no 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 2(d),
      in
      determining the number of outstanding shares of Common Stock, a Holder 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 a Holder, the Company shall
      within two Trading Days confirm orally and in writing to the Holder the number
      of shares of Common Stock then outstanding. In any case, the number of
      outstanding shares of Common Stock shall be determined after giving effect
      to
      the conversion or exercise of securities of the Company, including this Warrant,
      by the Holder or its Affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported. The “Beneficial
      Ownership Limitation”
shall
      be 4.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice
      to the Company, may increase or decrease the Beneficial Ownership Limitation
      provisions of this Section 2(d), provided that the Beneficial Ownership
      Limitation in no event exceeds 9.99% of the number of shares of the Common
      Stock
      outstanding immediately after giving effect to the issuance of shares of Common
      Stock upon exercise of this Warrant held by the Holder and the provisions of
      this Section 2(d) shall continue to apply. Any such increase or decrease will
      not be effective until the 61st
      day
      after such notice is delivered to the Company. The provisions of this paragraph
      shall be construed and implemented in a manner otherwise than in strict
      conformity with the terms of this Section 2(d) to correct this paragraph
      (or

     

    
      
        
        

      

      
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          3 -

        
          

        

      

      
        
        

      

    

    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
      this Warrant.

     

    (d) [Alternate
      provision for Black River investing entities in lieu of 4.99% blocker provision
      above]
      [Exercise
      Limitations. The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      2 or
      otherwise, to the extent that after giving effect to such issuance after
      exercise as set forth on the applicable Notice of Exercise, the Holder (together
      with the Holder’s Affiliates, and any other person or entity acting as a group
      together with the Holder or any of the Holder’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 the Holder and its Affiliates shall include the number
      of
      shares of Common Stock issuable upon exercise of this Warrant 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 the remaining,
      unexercised portion of this Warrant beneficially owned by the Holder 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
      the
      Holder or any of its Affiliates. Except as set forth in the preceding sentence,
      for purposes of this Section 2(d), 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 Holder that the Company
      is
      not representing to the Holder that such calculation is in compliance with
      Section 13(d) of the Exchange Act and the Holder is solely responsible for
      any
      schedules required to be filed in accordance therewith. To the extent that
      the
      limitation contained in this Section 2(d) applies, the determination of whether
      this Warrant is exercisable (in relation to other securities owned by the Holder
      together with any Affiliates) and of which portion of this Warrant is
      exercisable shall be in the sole discretion of the Holder, and the submission
      of
      a Notice of Exercise shall be deemed to be the Holder’s determination of whether
      this Warrant is exercisable (in relation to other securities owned by the Holder
      together with any Affiliates) and of which portion of this Warrant is
      exercisable, in each case subject to the Beneficial Ownership Limitation, and
      the Company shall have no 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 2(d), in determining the number of outstanding shares of Common
      Stock, a Holder 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 a
      Holder, the Company shall within two Trading Days confirm orally and in writing
      to the Holder the number of shares of Common Stock then outstanding. In any
      case, the number of outstanding shares of Common Stock shall be

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    determined
      after giving effect to the conversion or exercise of securities of the Company,
      including this Warrant, by the Holder or its Affiliates since the date as of
      which such number of outstanding shares of Common Stock was reported. The
“Beneficial
      Ownership Limitation”
shall
      be 9.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice
      to the Company, may increase or decrease the Beneficial Ownership Limitation
      provisions of this Section 2(d) and the provisions of this Section 2(d) shall
      continue to apply. Any such increase or decrease will not be effective until
      the
      61st
      day
      after such notice is delivered to the Company. The provisions of this paragraph
      shall be construed and implemented in a manner otherwise than in strict
      conformity with the terms of this Section 2(d) 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
      this Warrant.]

    

    (e) Mechanics
      of Exercise.

     

    (i) Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the Transfer
      Agent to the Holder by crediting the account of the Holder’s prime broker with
      the Depository Trust Company through its Deposit Withdrawal Agent Commission
      (“DWAC”)
      system
      if the Company is then a participant in such system and either (A) there is
      an
      effective Registration Statement permitting the resale of the Warrant Shares
      by
      the Holder or (B) the shares are eligible for resale without volume or
      manner-of-sale limitations pursuant to Rule 144, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant (if required) and payment of the aggregate Exercise
      Price as set forth above (the “Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise, if permitted) and all taxes required to be
      paid
      by the Holder, if any, pursuant to Section 2(e)(vi) prior to the issuance of
      such shares, have been paid. If the Company fails for any reason to deliver
      to
      the Holder certificates evidencing the Warrant Shares subject to a Notice of
      Exercise by the Warrant Share Delivery Date, the Company shall pay to the
      Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
      of
      Warrant Shares subject to such exercise (based on the VWAP of the Common Stock
      on the date of the applicable Notice of Exercise), $10 per Trading Day
      (increasing to $20 per Trading Day on the fifth Trading Day after such
      liquidated damages begin to accrue) for each Trading Day after such Warrant
      Share Delivery Date until such certificates are delivered. For purposes hereof,
      the term “VWAP” shall
      mean, for any date, the price determined

     

    
      
        
        

      

      
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          5 -

        
          

        

      

      
        
        

      

    

    by
      the
      first of the following clauses that applies: (a) if the Common Stock is then
      listed or quoted on a Trading Market, the daily volume weighted average price
      of
      the Common Stock for such date (or the nearest preceding date) on the Trading
      Market on which the Common Stock is then listed or quoted as reported by
      Bloomberg L.P. (based on a Trading Day from 9:30 a.m. New York City time to
      4:02
      p.m. New York City time); (b) if the OTC Bulletin Board is not a Trading Market,
      the volume weighted average price of the Common Stock for such date (or the
      nearest preceding date) on the OTC Bulletin Board; (c) if the Common Stock
      is
      not then listed or quoted for trading on the OTC Bulletin Board and if prices
      for the Common Stock are then reported in the “Pink Sheets “ published by Pink
      Sheets, LL.0 (or a similar organization or agency succeeding to its functions
      of
      reporting prices), the most recent bid price per share of the Common Stock
      so
      reported; or (d) in all other cases, the fair market value of a share of Common
      Stock as determined by an independent appraiser selected in good faith by the
      Purchasers of a majority in interest of the Securities then outstanding and
      reasonably acceptable to the Company, the fees and expenses of which shall
      be
      paid by the Company.

     

    (ii) Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    (iii) Rescission
      Rights.
      If the
      Company fails to cause the Transfer Agent to transmit to the Holder a
      certificate or the certificates representing the Warrant Shares pursuant to
      Section 2(e)(i) by the Warrant Share Delivery Date, then, the Holder will have
      the right to rescind such exercise.

     

    (iv) Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause the Transfer Agent to transmit to the Holder a certificate or the
      certificates representing the Warrant Shares pursuant to an exercise on or
      before the Warrant Share Delivery Date, and if after such date the Holder is
      required by its broker to purchase (in an open market transaction or otherwise)
      or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to
      deliver in satisfaction of a sale by the Holder of the Warrant Shares which
      the
      Holder anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (A) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (1) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (2) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (B) at the option of the Holder, either reinstate the portion
      of
      the Warrant and

     

    
      
        
        

      

      
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          6 -

        
          

        

      

      
        
        

      

    

    equivalent
      number of Warrant Shares for which such exercise was not honored or deliver
      to
      the Holder the number of shares of Common Stock that would have been issued
      had
      the Company timely complied with its exercise and delivery obligations
      hereunder. For example, if the Holder purchases Common Stock having a total
      purchase price of $11,000 to cover a Buy-In with respect to an attempted
      exercise of shares of Common Stock with an aggregate sale price giving rise
      to
      such purchase obligation of $10,000, under clause (A) of the immediately
      preceding sentence the Company shall be required to pay the Holder $1,000.
      The
      Holder shall provide the Company written notice indicating the amounts payable
      to the Holder in respect of the Buy-In and, upon request of the Company,
      evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
      to pursue any other remedies available to it hereunder, at law or in equity
      including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the Warrant
      as
      required pursuant to the terms hereof.

     

    (v) No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall, at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

     

    (vi) Charges.
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided, however,
      that in the event certificates for Warrant Shares are to be issued in a name
      other than the name of the Holder, this Warrant when surrendered for exercise
      shall be accompanied by the Assignment Form attached hereto duly executed by
      the
      Holder and the Company may require, as a condition thereto, the payment of
      a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    (vii) Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    
      
        
        

      

      
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    Section
      3. Certain
      Adjustments.

     

    (a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (i) pays a stock
      dividend or otherwise make a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (ii) subdivides outstanding shares of Common Stock into a larger number of
      shares, (iii) combines (including by way of reverse stock split) outstanding
      shares of Common Stock into a smaller number of shares or (iv) issues by
      reclassification of shares of the Common Stock any shares of capital stock
      of
      the Company, then in each case the Exercise Price shall be multiplied by a
      fraction of which the numerator shall be the number of shares of Common Stock
      (excluding treasury shares, if any) outstanding immediately before such event
      and of which the denominator shall be the number of shares of Common Stock
      outstanding immediately after such event and the number of shares issuable
      upon
      exercise of this Warrant shall be proportionately adjusted such that the
      aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
      made pursuant to this Section 3(a) shall become effective immediately after
      the
      record date for the determination of stockholders entitled to receive such
      dividend or distribution and shall become effective immediately after the
      effective date in the case of a subdivision, combination or
      re-classification.

     

    (b) Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, at any time while this Warrant
      is outstanding, shall sell or grant any option to purchase, or sell or grant
      any
      right to reprice, or otherwise dispose of or issue (or announce any offer,
      sale, grant or any option to purchase or other disposition) any Common Stock
      or
      Common Stock Equivalents entitling any Person to acquire shares of Common Stock,
      at an effective price per share less than the then Exercise Price (such lower
      price, the “Base
      Share Price”
and
      such issuances collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents so issued shall
      at
      any time, whether by operation of purchase price adjustments, reset provisions,
      floating conversion, exercise or exchange prices or otherwise, or due to
      warrants, options or rights per share which are issued in connection with such
      issuance, be entitled to receive shares of Common Stock at an effective price
      per share which is less than the Exercise Price, such issuance shall be deemed
      to have occurred for less than the Exercise Price on such date of the Dilutive
      Issuance), then, (x) the Exercise Price shall be reduced to a price equal to
      the
      Base Share Price. Such adjustment shall be made whenever such Common Stock
      or
      Common Stock Equivalents are issued. Notwithstanding the foregoing, no
      adjustments shall be made, paid or issued under this Section 3(b) in respect
      of
      an Exempt Issuance. The Company shall notify the Holder, in writing, no later
      than the Trading Day following the issuance of any Common Stock or Common Stock
      Equivalents subject to this Section 3(b), indicating therein the applicable
      issuance price, or applicable reset price, exchange price, conversion price
      and
      other pricing terms (such notice, the “Dilutive
      Issuance Notice”).

     

    
      
        
        

      

      
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    (c) Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the VWAP at the record date mentioned below, then, the
      Exercise Price shall be multiplied by a fraction, of which the denominator
      shall
      be the number of shares of the Common Stock outstanding on the date of issuance
      of such rights or warrants plus the number of additional shares of Common Stock
      offered for subscription or purchase, and of which the numerator shall be the
      number of shares of the Common Stock outstanding on the date of issuance of
      such
      rights or warrants plus the number of shares which the aggregate offering price
      of the total number of shares so offered (assuming receipt by the Company in
      full of all consideration payable upon exercise of such rights, options or
      warrants) would purchase at such VWAP. Such adjustment shall be made whenever
      such rights or warrants are issued, and shall become effective immediately
      after
      the record date for the determination of stockholders entitled to receive such
      rights, options or warrants.

     

    (d) Pro
      Rata Distributions.
      If the
      Company, at any time while this Warrant is outstanding, shall distribute to
      all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      Indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

     

    (e) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (i) the Company effects any merger
      or consolidation of the Company with or into another Person, (ii) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (iii) any tender offer or exchange offer (whether by
      the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property or (iv) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (each “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction,
      the

     

    
      
        
        

      

      
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    number
      of
      shares of Common Stock of the successor or acquiring corporation or of the
      Company, if it is the surviving corporation, and any additional consideration
      (the “Alternate
      Consideration”)
      receivable as a result of such merger, consolidation or disposition of assets
      by
      a holder of the number of shares of Common Stock for which this Warrant is
      exercisable immediately prior to such event. For purposes of any such exercise,
      the determination of the Exercise Price shall be appropriately adjusted to
      apply
      to such Alternate Consideration based on the amount of Alternate Consideration
      issuable in respect of one share of Common Stock in such Fundamental
      Transaction, and the Company shall apportion the Exercise Price among the
      Alternate Consideration in a reasonable manner reflecting the relative value
      of
      any different components of the Alternate Consideration. If holders of Common
      Stock are given any choice as to the securities, cash or property to be received
      in a Fundamental Transaction, then the Holder shall be given the same choice
      as
      to the Alternate Consideration it receives upon any exercise of this Warrant
      following such Fundamental Transaction. To the extent necessary to effectuate
      the foregoing provisions, any successor to the Company or surviving entity
      in
      such Fundamental Transaction shall issue to the Holder a new warrant consistent
      with the foregoing provisions and evidencing the Holder’s right to exercise such
      warrant into Alternate Consideration. The terms of any agreement pursuant to
      which a Fundamental Transaction is effected shall include terms requiring any
      such successor or surviving entity to comply with the provisions of this Section
      3(e) and insuring that this Warrant (or any such replacement security) will
      be
      similarly adjusted upon any subsequent transaction analogous to a Fundamental
      Transaction. Notwithstanding anything to the contrary, in the event of a
      Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3
      transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a
      Fundamental Transaction involving a person or entity not traded on a national
      securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market,
      or the Nasdaq Capital Market, the Company or any successor
      entity shall pay at the Holder’s option, exercisable at any time concurrently
      with or within 30 days after the consummation of the Fundamental Transaction,
      an
      amount of cash equal to the value of this Warrant as determined in accordance
      with the Black Scholes Option Pricing Model obtained from the “OV” function on
      Bloomberg L.P. using (A) a price per share of Common Stock equal to the VWAP
      of
      the Common Stock for the Trading Day immediately preceding the date of
      consummation of the applicable Fundamental Transaction, (B) a risk-free interest
      rate corresponding to the U.S. Treasury rate for a 30 day period immediately
      prior to the consummation of the applicable Fundamental Transaction, (C) an
      expected volatility equal to the 100 day volatility obtained from the “HVT”
function on Bloomberg L.P. determined as of the Trading Day immediately
      following the public announcement of the applicable Fundamental Transaction
      and
      (D) a remaining option time equal to the time between the date of the public
      announcement of such transaction and the Termination Date. 

     

    (f) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    
      
        
        

      

      
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    (g) 
      Notice
      to Holder.

     

    (i) Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to the Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. If the Company enters into a Future Priced
      Securities Transaction, despite the prohibition thereon in the Purchase
      Agreement, the Company shall be deemed to have issued Common Stock or Common
      Stock Equivalents at the lowest possible conversion or exercise price at which
      such securities may be converted or exercised.

     

    (ii) Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock, (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock, (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights, (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property,
      or (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company, then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least 20 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      period commencing on the date of such notice to the effective date of the event
      triggering such notice.

     

    
      
        
        

      

      
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    Section
      4. Transfer
      of Warrant.

     

    (a) Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof and to the provisions of the Purchase Agreement, this
      Warrant and all rights hereunder (including, without limitation, any
      registration rights) are transferable, in whole or in part, upon surrender
      of
      this Warrant at the principal office of the Company or its designated agent,
      together with a written assignment of this Warrant substantially in the form
      attached hereto duly executed by the Holder or its agent or attorney and funds
      sufficient to pay any transfer taxes payable upon the making of such transfer.
      Upon such surrender and, if required, such payment, the Company shall execute
      and deliver a new Warrant or Warrants in the name of the assignee or assignees,
      as applicable, and in the denomination or denominations specified in such
      instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant shall
      promptly be cancelled. The Warrant, if properly assigned, may be exercised
      by a
      new holder for the purchase of Warrant Shares without having a new Warrant
      issued.

     

    (b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice. All Warrants issued on transfers or exchanges shall be dated
      the original Issue Date and shall be identical with this Warrant except as
      to
      the number of Warrant Shares issuable pursuant thereto.

     

    (c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”,
      in the
      name of the record Holder hereof from time to time. The Company may deem and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    (d) Transfer
      Restrictions.
      If, at
      the time of the surrender of this Warrant in connection with any transfer of
      this Warrant, the transfer of this Warrant shall not be either (i) registered
      pursuant to an effective registration statement under the Securities Act and
      under applicable state securities or blue sky laws or (ii) eligible for resale
      without volume or manner-of-sale restrictions pursuant to Rule 144, the Company
      may require, as a condition of allowing such transfer, that the Holder or
      transferee of this Warrant, as the case may be, comply with the provisions
      of
      Section 5.7 of the Purchase Agreement.

     

    Section
      5.  Miscellaneous.

     

     

    
      
        
        

      

      
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    (a) No
      Rights as Stockholder until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      stockholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(i). 

     

    (b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security . reasonably satisfactory. to
      it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    (c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then, such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    (d) Authorized
      Shares.
      The
      Company covenants that, during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      The Company covenants that all Warrant Shares which may be issued upon the
      exercise of the purchase rights represented by this Warrant will, upon exercise
      of the purchase rights represented by this Warrant, be duly authorized, validly
      issued, fully paid and nonassessable and free from all taxes, liens and charges
      created by the Company in respect of the issue thereof (other than taxes in
      respect of any transfer occurring contemporaneously with such issue).

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities 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 actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (i) not increase the par value of any Warrant
      Shares above the amount

     

    
      
        
        

      

      
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    payable
      therefor upon such exercise immediately prior to such increase in par value,
      (ii) take all such action as may be necessary or appropriate in order that
      the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant and (iii) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof, as may be, necessary to
      enable the Company to perform its obligations under this Warrant. 

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    (e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

    (f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    (g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

    (h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    (i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    
      
        
        

      

      
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    (j) Remedies.
      The
      Holder, in addition to being entitled to exercise all rights granted by law,
      including recovery of damages, will be entitled to specific performance of
      its
      rights under this Warrant. The Company agrees that monetary damages would not
      be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    (k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by the Holder or
      holder of Warrant Shares.

     

    (l) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and Holders holding Warrants at least equal
      to
      67% of the Warrant Shares issuable upon exercise of all then outstanding
      Warrants.

     

    (m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    (n) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    (Signature
      Pages Follow)

    
      
        
        

      

      
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          15 -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized as of the date first above
      indicated.

    

    YONGYE
      BIOTECHNOLOGY INTERNATIONAL, INC.

     

     

    By: 
      __________________________________________

    Name:
      Zishen Wu

    Title:
      CEO

    
      
        
        

      

      
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    NOTICE
      OF EXERCISE

    

    

    TO:
      YONGYE BIOTECHNOLOGY INTERNATIONAL, INC.

     

    (1) The
      undersigned hereby elects to purchase __________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any. Payment shall take the form a wire transfer
      or certified check in lawful money of the United States.

     

    (2) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    ___________________________

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    ___________________________

    ___________________________

    ___________________________

    

    (3) Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

     

    

    [SIGNATURE
      OF HOLDER]

    

    Name
      of
      Investing Entity: 
________________________________________________________________________________

     

    Signature
      of Authorized Signatory of Investing Entity:
      __________________________________________________________

     

    Name
      of
      Authorized Signatory:
      ____________________________________________________________________________

     

    Title
      of
      Authorized Signatory:
      _____________________________________________________________________________

     

    Date:
      ________________________________________________________________________________________________

     

    
      
        
        

      

      
        -
          17 -

        
          

        

      

      
        
        

      

    

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute 

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

    FOR
      VALUE
      RECEIVED, [_______] all of or [_________ ]
      shares
      of the foregoing Warrant and all rights evidenced thereby are hereby assigned
      to
      ____________________________ whose
      address is
      __________________________________________________________

    ____________________________________________________________________________________________________

     

    

    Dated:
      _______________________________________________________________________________________________

    

    Holder’s
      Signature:
      _____________________________________________________________________________________

    

    Holder’s
      Address:
      ______________________________________________________________________________________

     

    ____________________________________________________________________________________________________

    

    Signature
      Guaranteed:
      ___________________________________________________________________________________

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or bust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.

     

     

    -
      18 -

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