Document:

THE
SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES
HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS
AMENDED, OR (II) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE
SECURITIES LAWS.

      

      SUBJECT
TO THE PROVISIONS HEREOF, THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN
TIME ON DECEMBER 31, 2012 (THE “EXPIRATION DATE”).

      

      No.
C-         

      

      EMERALD
DAIRY INC.

      

      WARRANT
TO PURCHASE __________ SHARES OF

      COMMON
STOCK, PAR VALUE $0.001 PER SHARE

      

      FOR VALUE
RECEIVED, ____________________ (“Warrantholder”), is entitled to purchase,
subject to the provisions of this Warrant, from Emerald Dairy Inc., a Nevada
corporation (“Company”), at any time not later than 5:00 P.M., Eastern time, on
the Expiration Date (as defined above), at an exercise price per share equal to
$1.63 (the exercise price in effect being herein called the “Warrant Price”),
__________ shares (“Warrant Shares”) of the Company’s Common Stock, par value
$0.001 per share (“Common Stock”).  The number of Warrant Shares
purchasable upon exercise of this Warrant and the Warrant Price shall be subject
to adjustment from time to time as described herein.  This Warrant is
being issued pursuant to a Second Amendment, dated December 31, 2009, to a
Securities Purchase Agreement, dated as of June __, 2008 (the “Purchase
Agreement”), between the Company and the Warrantholder.  Capitalized
terms used herein have the respective meanings ascribed thereto in the Purchase
Agreement unless otherwise defined herein.

      

      Section
1.      Registration.  The
Company shall maintain books for the transfer and registration of the
Warrant.  Upon the initial issuance of this Warrant, the Company shall
issue and register the Warrant in the name of the Warrantholder.

      

      Section
2.      Transfers.  As
provided herein, this Warrant may be transferred only pursuant to a registration
statement filed under the Securities Act of 1933, as amended (the “Securities
Act”), or an exemption from such registration.  Subject to such
restrictions, the Company shall transfer this Warrant from time to time upon the
books to be maintained by the Company for that purpose, upon surrender hereof
for transfer, properly endorsed or accompanied by appropriate instructions for
transfer and such other documents as may be reasonably required by the Company,
including, if required by the Company, an opinion of its counsel to the effect
that such transfer is exempt from the registration requirements of the
Securities Act, to establish that such transfer is being made in accordance with
the terms hereof, and a new Warrant shall be issued to the transferee and the
surrendered Warrant shall be canceled by the Company.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Section
3.      Exercise of
Warrant.  Subject to the provisions hereof, the Warrantholder
may exercise this Warrant, in whole or in part, at any time prior to its
expiration upon surrender of the Warrant, together with delivery of a duly
executed Warrant exercise form, in the form attached hereto as “Appendix A” (the
“Exercise Agreement”) and payment by cash, certified check or wire transfer of
funds of the aggregate Warrant Price for
that number of Warrant Shares then being purchased, to the Company during normal
business hours on any business day at the Company’s principal executive offices
(or such other office or agency of the Company as it may designate by notice to
the Warrantholder).  The Warrant Shares so purchased shall be deemed
to be issued to the Warrantholder or the Warrantholder’s designee, as the record
owner of such shares, as of the close of business on the date on which this
Warrant shall have been surrendered (or the date evidence of loss, theft or
destruction thereof and security or indemnity satisfactory to the Company has
been provided to the Company), the Warrant Price shall have been paid and the
completed Exercise Agreement shall have been delivered.  Certificates
for the Warrant Shares so purchased shall be delivered to the Warrantholder
within a reasonable time, not exceeding three (3) business days, after this
Warrant shall have been so exercised.  The certificates so delivered
shall be in such denominations as may be requested by the Warrantholder and
shall be registered in the name of the Warrantholder or such other name as shall
be designated by the Warrantholder, as specified in the Exercise
Agreement.  If this Warrant shall have been exercised only in part,
then, unless this Warrant has expired, the Company shall, at its expense, at the
time of delivery of such certificates, deliver to the Warrantholder a new
Warrant representing the right to purchase the number of shares with respect to
which this Warrant shall not then have been exercised.  As used
herein, “business day” means a day, other than a Saturday or Sunday, on which
banks in New York City are open for the general transaction of
business.  Each exercise hereof shall constitute the re-affirmation by
the Warrantholder that the representations and warranties contained in Section 5
of the Purchase Agreement are true and correct in all material respects with
respect to the Warrantholder as of the time of such exercise.

      

      Notwithstanding
anything in this Warrant to the contrary, in no event shall the Holder of this
Warrant be entitled to exercise a number of Warrants (or portions thereof) in
excess of the number of Warrants (or portions thereof) upon exercise of which
the sum of (i) the number of shares of Common Stock beneficially owned by the
Holder and its affiliates (other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unexercised Warrants and the
unexercised or unconverted portion of any other securities of the Company
(subject to a limitation on conversion or exercise analogous to the limitation
contained herein) and (ii) the number of shares of Common Stock issuable upon
exercise of the Warrants (or portions thereof) with respect to which the
determination described herein is being made, would result in beneficial
ownership by the Holder and its affiliates of more than 9.99% of the outstanding
shares of Common Stock.  For purposes of the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13D-G
thereunder, except as otherwise provided in clause (i) of the preceding
sentence.  Notwithstanding anything to the contrary contained herein,
the limitation on exercise of this Warrant may be waived by written agreement
between the Holder and the Company; provided, however, such waiver
may not be effective less than sixty-one (61) days from the date
thereof.

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      

      Section
4.      Compliance with the
Securities Act of 1933. Except as provided in the Purchase Agreement, the
Company may cause the legend set forth on the first page of this Warrant to be
set forth on each Warrant, and a similar legend on any security issued or
issuable upon exercise of this Warrant, unless counsel for the Company is of the
opinion as to any such security that such legend is unnecessary.

      

      Section
5.      Payment of
Taxes.  The Company will pay any documentary stamp taxes
attributable to the initial issuance of Warrant Shares issuable upon the
exercise of the Warrant; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the Warrantholder in respect of which such shares are
issued, and in such case, the Company shall not be required to issue or deliver
any certificate for Warrant Shares or any Warrant until the person requesting
the same has paid to the Company the amount of such tax or has established to
the Company’s reasonable satisfaction that such tax has been
paid.  The Warrantholder shall be responsible for income taxes due
under federal, state or other law, if any such tax is due.

      

      Section
6.      Mutilated or Missing
Warrants.  In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue in exchange and substitution of
and upon surrender and cancellation of the mutilated Warrant, or in lieu of and
substitution for the Warrant lost, stolen or destroyed, a new Warrant of like
tenor and for the purchase of a like number of Warrant Shares, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction of the Warrant, and with respect to a lost, stolen or destroyed
Warrant, reasonable indemnity or bond with respect thereto, if requested by the
Company.

      

      Section
7.      Reservation of Common
Stock.  The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for
the purpose of providing for the exercise of the Company Warrants, such number
of shares of Common Stock as shall from time to time equal the number of shares
sufficient to permit the exercise of the Company Warrants in accordance with
their respective terms.  The Company agrees that all Warrant Shares
issued upon due exercise of the Warrant shall be, at the time of delivery of the
certificates for such Warrant Shares, duly authorized, validly issued, fully
paid and non-assessable shares of Common Stock of the Company.

      

      Section
8.      Adjustments.  Subject
and pursuant to the provisions of this Section 8, the Warrant Price and number
of Warrant Shares subject to this Warrant shall be subject to adjustment from
time to time as set forth hereinafter.

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      (a)      If
the Company shall, at any time or from time to time while this Warrant is
outstanding, pay a dividend or make a distribution on its Common Stock in shares
of Common Stock, subdivide its outstanding shares of Common Stock into a greater
number of shares or combine its outstanding shares of Common Stock into a
smaller number of shares or issue by reclassification of its outstanding shares
of Common Stock any shares of its capital stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then (i) the Warrant Price in effect
immediately prior to the date on which such change shall become effective shall
be adjusted by multiplying such Warrant Price by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding immediately
prior to such change and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after giving effect to such change and
(ii) the number of Warrant Shares purchasable upon exercise of this Warrant
shall be adjusted by multiplying the number of Warrant Shares purchasable upon
exercise of this Warrant immediately prior to the date on which such change
shall become effective by a fraction, the numerator of which is shall be the
Warrant Price in effect immediately prior to the date on which such change shall
become effective and the denominator of which shall be the Warrant Price in
effect immediately after giving effect to such change, calculated in accordance
with clause (i) above.  Such adjustments shall be made successively
whenever any event listed above shall occur.

      

      (b)      If
any capital reorganization or reclassification of the capital stock of the
Company, consolidation or merger of the Company with another corporation in
which the Company is not the survivor, or sale, transfer or other disposition of
all or substantially all of the Company’s assets to another corporation shall be
effected, then, as a condition of such reorganization, reclassification,
consolidation, merger, sale, transfer or other disposition, lawful and adequate
provision shall be made whereby each Warrantholder shall thereafter have the
right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares immediately theretofore
issuable upon exercise of the Warrant, such shares of stock, securities or
assets as would have been issuable or payable with respect to or in exchange for
a number of Warrant Shares equal to the number of Warrant Shares immediately
theretofore issuable upon exercise of the Warrant, had such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition not
taken place, and in any such case appropriate provision shall be made with
respect to the rights and interests of each Warrantholder to the end that the
provisions hereof (including, without limitation, provision for adjustment of
the Warrant Price) shall thereafter be applicable, as nearly equivalent as may
be practicable in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise hereof.  The Company shall
not effect any such consolidation, merger, sale, transfer or other disposition
unless prior to or simultaneously with the consummation thereof the successor
corporation (if other than the Company) resulting from such consolidation or
merger, or the corporation purchasing or otherwise acquiring such assets or
other appropriate corporation or entity shall assume the obligation to deliver
to the Warrantholder, at the last address of the Warrantholder appearing on the
books of the Company, such shares of stock, securities or assets as, in
accordance with the foregoing provisions, the Warrantholder may be entitled to
purchase, and the other obligations under this Warrant.  The
provisions of this paragraph (b) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, sales, transfers or
other dispositions.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      (c)      In
case the Company shall fix a payment date for the making of a distribution to
all holders of Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing
corporation) of evidences of indebtedness or assets (other than cash dividends
or cash distributions payable out of consolidated earnings or earned surplus or
dividends or distributions referred to in Section 8(a)), or subscription rights
or warrants, the Warrant Price to be in effect after such payment date shall be
determined by multiplying the Warrant Price in effect immediately prior to such
payment date by a fraction, the numerator of which shall be the total number of
shares of Common Stock outstanding multiplied by the Market Price (as defined
below) per share of Common Stock immediately prior to such payment date, less
the fair market value (as determined by the Company’s Board of Directors in good
faith) of said assets or evidences of indebtedness so distributed, or of such
subscription rights or warrants, and the denominator of which shall be the total
number of shares of Common Stock outstanding multiplied by such Market Price per
share of Common Stock immediately prior to such payment date.  “Market
Price” as of a particular date (the “Valuation Date”) shall mean the following:
(a) if the Common Stock is then listed on a national stock exchange, the closing
sale price of one share of Common Stock on such exchange on the last trading day
prior to the Valuation Date; (b) if the Common Stock is then quoted on the
Financial Industry Regulatory Authority, Inc.’s OTC Bulletin Board (the
“Bulletin Board”) or such similar quotation system or association, the closing
sale price of one share of Common Stock on the Bulletin Board or such other
quotation system or association on the last trading day prior to the Valuation
Date or, if no such closing sale price is available, the average of the high bid
and the low asked price quoted thereon on the last trading day prior to the
Valuation Date; or (c) if the Common Stock is not then listed on a national
stock exchange or quoted on the Bulletin Board or such other quotation system or
association, the fair market value of one share of Common Stock as of the
Valuation Date, as determined in good faith by the Board of Directors of the
Company and the Warrantholder.  If the Common Stock is not then listed
on a national securities exchange, the Bulletin Board or such other quotation
system or association, the Board of Directors of the Company shall respond
promptly, in writing, to an inquiry by the Warrantholder prior to the exercise
hereunder as to the fair market value of a share of Common Stock as determined
by the Board of Directors of the Company.  In the event that the Board
of Directors of the Company and the Warrantholder are unable to agree upon the
fair market value in respect of subpart (c) of this paragraph, the Company and
the Warrantholder shall jointly select an appraiser, who is experienced in such
matters.  The decision of such appraiser shall be final and
conclusive, and the cost of such appraiser shall be borne equally by the Company
and the Warrantholder.  Such adjustment shall be made successively
whenever such a payment date is fixed.

      

      (d)      An
adjustment to the Warrant Price shall become effective immediately after the
payment date in the case of each dividend or distribution and immediately after
the effective date of each other event which requires an
adjustment.

      

      (e)      In
the event that, as a result of an adjustment made pursuant to this Section 8,
the Warrantholder shall become entitled to receive any shares of capital stock
of the Company other than shares of Common Stock, the number of such other
shares so receivable upon exercise of this Warrant shall be subject thereafter
to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Warrant Shares contained in
this Warrant.

       

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    

     

    (f)      To the
extent permitted by applicable law and the listing requirements of any stock
market or exchange on which the Common Stock is then listed, the Company from
time to time may decrease the Warrant Price by any amount for any period of time
if the period is at least twenty (20) days, the decrease is irrevocable during
the period and the Board shall have made a determination that such decrease
would be in the best interests of the Company, which determination shall be
conclusive.  Whenever the Warrant Price is decreased pursuant to the
preceding sentence, the Company shall provide written notice thereof to the
Warrantholder at least five (5) days prior to the date the decreased Warrant
Price takes effect, and such notice shall state the decreased Warrant Price and
the period during which it will be in effect.

    

    Section
9.      Fractional
Interest.  The Company shall not be required to issue fractions
of Warrant Shares upon the exercise of this Warrant.  If any
fractional share of Common Stock would, except for the provisions of the first
sentence of this Section 9, be deliverable upon such exercise, the Company, in
lieu of delivering such fractional share, shall pay to the exercising
Warrantholder an amount in cash equal to the Market Price of such fractional
share of Common Stock on the date of exercise.

    

    Section
10.    Benefits.  Nothing
in this Warrant shall be construed to give any person, firm or corporation
(other than the Company and the Warrantholder) any legal or equitable right,
remedy or claim, it being agreed that this Warrant shall be for the sole and
exclusive benefit of the Company and the Warrantholder.

    

    Section
11.    Notices to
Warrantholder.  Upon the happening of any event requiring an
adjustment of the Warrant Price, the Company shall promptly give written notice
thereof to the Warrantholder at the address appearing in the records of the
Company, stating the adjusted Warrant Price and the adjusted number of Warrant
Shares resulting from such event and setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is
based.  Failure to give such notice to the Warrantholder or any defect
therein shall not affect the legality or validity of the subject
adjustment.

    

    Section
12.    Identity of Transfer
Agent.  The Transfer Agent for the Common Stock is
Computershare, Inc., located at 350 Indiana Street, Suite 800, Golden, CO 80401.
Upon the appointment of any subsequent transfer agent for the Common Stock or
other shares of the Company’s capital stock issuable upon the exercise of the
rights of purchase represented by the Warrant, the Company will mail to the
Warrantholder a statement setting forth the name and address of such transfer
agent.

    

    Section
13.    Notices.  Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon
such delivery, (ii) if given by telex or facsimile, then such notice shall be
deemed given upon receipt of confirmation of complete transmittal, (iii) if
given by mail, then such notice shall be deemed given upon the earlier of (A)
receipt of such notice by the recipient or (B) three days after such notice is
deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier.  All
notices shall be addressed as follows: if to the Warrantholder, at its address
as set forth in the Company’s books and records and, if to the Company, at the
address as follows, or at such other address as the Warrantholder or the Company
may designate by ten days’ advance written notice to the other:

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  If
      to the Company:

                
	 
      	 
      
	 
      	
                  Emerald
      Dairy Inc.

                
	 
      	
                  11990
      Market Street, Suite 205

                
	 
      	
                  Reston,
      VA 20190

                
	 
      	
                  Attn:  Shu
      Kaneko, Chief Financial Officer

                
	 
      	
                  Fax:  (678)
      868-0633

                
	 
      	 
      
	
                  With
      a copy to:

                
	 
      	 
      
	 
      	
                  Blank
      Rome LLP

                
	 
      	
                  The
      Chrysler Building

                
	 
      	
                  405
      Lexington Ave.

                
	 
      	
                  New
      York, NY 10174

                
	 
      	
                  Attn:
      Jeffrey A. Rinde, Esq.

                
	 
      	
                  Fax:
      (212) 885-5001

                

        

      

    

    

    Section
14.    Registration
Rights.  The initial Warrantholder is entitled to the benefit
of certain registration rights with respect to the shares of Common Stock
issuable upon the exercise of this Warrant as provided in Section 7.7 of the
Purchase Agreement, and any subsequent Warrantholder may be entitled to such
rights.

    

    Section
15.    Successors.  All
the covenants and provisions hereof by or for the benefit of the Warrantholder
shall bind and inure to the benefit of its respective successors and assigns
hereunder.

    

    Section
16.    Governing Law; Consent to
Jurisdiction; Waiver of Jury Trial.  This Warrant shall be
governed by, and construed in accordance with, the internal laws of the State of
New York, without reference to the choice of law provisions
thereof.  The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably submits to the exclusive jurisdiction of the
courts of the State of New York located in New York County and the United States
District Court for the Southern District of New York for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Warrant
and the transactions contemplated hereby.  Service of process in
connection with any such suit, action or proceeding may be served on each party
hereto anywhere in the world by the same methods as are specified for the giving
of notices under this Warrant.  The Company and, by accepting this
Warrant, the Warrantholder, each irrevocably consents to the jurisdiction of any
such court in any such suit, action or proceeding and to the laying of venue in
such court.  The Company and, by accepting this Warrant, the
Warrantholder, each irrevocably waives any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and irrevocably
waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY ITS
ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL
BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT
COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    Section
17.    No Rights as
Stockholder.  Prior to the exercise of this Warrant, the
Warrantholder shall not have or exercise any rights as a stockholder of the
Company by virtue of its ownership of this Warrant.

    

    Section
18.    Amendment;
Waiver.  Any term of this Warrant may be amended or waived upon
the written consent of the Company and the Warrantholder.

    

    Section
19.    Section
Headings.  The section headings in this Warrant are for the
convenience of the Company and the Warrantholder and in no way alter, modify,
amend, limit or restrict the provisions hereof.

    

    [The
remainder of this page is left blank intentionally.  Signature page
follows.]

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company has
caused this Warrant to be duly executed, as of the 31st day of December,
2009.

    

    
      
        	
                EMERALD
      DAIRY INC.

              
	 
      	 
      
	
                By:

              	
                  

              
	 
      	
                Name:
      Shu Kaneko

              
	 
      	
                Title:
      Chief Financial Officer

              

      

    

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    APPENDIX
A

    EMERALD
DAIRY INC.

    WARRANT
EXERCISE FORM

    

    To:
Emerald Dairy Inc.:

    

    The undersigned hereby irrevocably
elects to exercise the right of purchase represented by the within Warrant
(“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price
and surrender of the Warrant, _______________ shares of Common Stock (“Warrant
Shares”) provided for therein, and requests that certificates for the Warrant
Shares be issued as follows:

    
      
        	
                  

              
	
                Name

              
	
                  

              
	
                Address

              
	
                  

              
	
                Federal
      Tax ID or Social Security No.

              

      

    

    

    
      
        	
                and
      delivered by:

              	
                certified
      mail to the above address, or

              
	 
      	
                electronically
      (provide DWAC

              
	 
      	
                Instructions:___________________),
      or

              
	 
      	
                other
      (specify):__________________________________________).

              

      

    

    

    and, if
the number of Warrant Shares shall not be all the Warrant Shares purchasable
upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
Shares purchasable upon exercise of this Warrant be registered in the name of
the undersigned Warrantholder or the undersigned’s Assignee as below indicated
and delivered to the address stated below.

    

    Dated:
___________________, ____

    

    
      
        	
                Note:

              	
                The
      signature must correspond
with

              

      

    

    Signature:______________________________

    
      
        
          
            
              
                
                  
                    	
                            the
      name of the Warrantholder as written

                          	 
      	 
	
                            on
      the first page of the Warrant in every

                          	
                              

                          	 
	
                            particular,
      without alteration or enlargement

                          	
                            Name
      (please print)

                          	 
	
                            or
      any change whatever, unless the Warrant

                          	
                              

                          	 
	
                            has
      been assigned.

                          	
                            Address

                          	 
	 
      	
                              

                          	 
	 
      	
                            Federal
      Identification or

                          	 
	 
      	
                            Social
      Security No.

                          	 
	 
      	 
      	 
	 
      	
                            Assignee:SECOND AMENDMENT TO SECURITIES PURCHASE
AGREEMENT

    

    THIS SECOND AMENDMENT TO SECURITIES
PURCHASE AGREEMENT is dated as of December 31, 2009 (this “Second Amendment”),
by and among Emerald Dairy Inc., a Nevada
corporation (the “Company”), and the
investors set forth on the signature page hereto (each, an “Investor,” and
collectively, the “Investors”).

    

    RECITALS:

    

    A.           In
June 2008, the Company conducted a private offering of up to a maximum of (a)
$3,000,000 of its 8% promissory notes, due on December 31, 2008 (the “Original Notes”) and
(b) three-year warrants to purchase 300,000 shares of its Common Stock, at an
exercise price of $2.61 per share (the “Original Warrants”),
pursuant to the terms and conditions of a Securities Purchase Agreement (the
“Purchase
Agreement”).

    

    B.           As
of June 12, 2008, one Investor purchased, for a purchase price of $1,500,000, an
Original Note in the principal amount of $1,500,000, and Original Warrants to
purchase 150,000 shares of the Company’s Common Stock.

    

    C.           On
June 20, 2008, an additional Investor purchased, for a purchase price of
$750,000, an Original Note in the principal amount of $750,000, and Original
Warrants to purchase 75,000 shares of the Company’s Common Stock.

    

    D.           As
of December 31, 2008, the Company and the Investors entered into an Amendment to
the Purchase Agreement (the “First Amendment”),
pursuant to which, among other things: (i) the maturity date of each Original
Note was extended from December 31, 2008 to December 31, 2009, (ii) as of
December 31, 2008, the initial interest rate of the Original Notes of 8% per
annum was increased to 10% per annum, (iii) the Company issued and delivered to
each Investor, against delivery by such Investor of his or its Original Note,
marked “canceled”, a duly executed Amended and Restated Note (the “First Amended Notes”)
reflecting the changes set forth in (i) and (ii) above, (iv) the expiration date
of the Original Warrants was extended from the third anniversary of their
original issue date to the fifth anniversary of their original issue date, (v)
the per share exercise price of the Original Warrants was reduced from $2.61 to
$1.63; and (vi) the Company issued and delivered to each Investor, against
delivery by such Investor of his or its Original Warrants, marked “canceled,”
duly executed amended and restated warrants (the “Amended Warrants”)
reflecting the changes set forth in (iv) and (v) above.

    

    E.           The
parties desire to further amend the Purchase Agreement and to amend the First
Amended Notes, in order to, among other things, modify the terms and conditions
thereof upon the terms and subject to the conditions set forth in this Second
Amendment and the Exhibits hereto.

    

    NOW, THEREFORE, in
consideration of the premises and the other mutual covenants contained herein,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.           Accuracy
of Recitals; Definitions.  Each of the Company and the
Investors acknowledges and agrees that the foregoing Recitals are true and
accurate and are incorporated herein by reference.  The Purchase
Agreement, First Amendment, First Amended Notes and Amended Warrants shall be
referred to herein collectively as the “Transaction
Documents.”  Capitalized terms used and not otherwise defined herein
are used as defined in the Transaction Documents.

    

    2.           Amendments
to the First Amended Notes.

    

    2.1           Upon
satisfaction of the conditions set forth in Section 4 below, the First Amended
Notes shall be amended so that:

    

    (a)           Accrued
and unpaid interest on the Original Notes and First Amended Notes, in the
aggregate amount of $323,301, shall be added to the principal amount of the
Second Amended Notes (as defined below), as follows:

    

    
      
        
          
            
              
                	
                        Name

                      	 	
                        Accrued

                        Interest

                        ($)

                      	 	 	
                        Principal 

                        Amount Due 

                        ($)

                      	 
	
                        JAG
      Multi Investments, LLC

                      	 	$	216,411	 	 	$	1,716,411	 
	
                        John
      Winfield

                      	 	$	106,890	 	 	$	856,890	 
	
                        Total

                      	 	$	323,301	 	 	$	2,573,301	 

              

            

          

        

      

    

    

    (b)           The
Maturity Date of each First Amended Note is extended from December 31, 2009 to December 31,
2010.

    

    2.2           The Company shall issue and deliver, or cause to be
delivered, to each Investor, against delivery by such Investor of his or its
First Amended Note, marked “canceled”, a duly executed amended and restated
promissory note reflecting the changes set forth in Section 2.1 above, in the
form of Second Amended and Restated Promissory Note attached hereto as
Exhibit
A (the “Second Amended Notes”).

    

    3.           Issuance
of Additional Warrants.

    

    3.1           Upon
satisfaction of the conditions set forth in Section 4 below, the Company shall issue and deliver, or cause to be
delivered, to the Investors, additional three-year warrants to purchase an
aggregate of 789,356 shares of the Company’s common stock at
an  exercise price of $1.63 per share, in the form attached hereto as
Exhibit
B (the “Additional Warrants”), in the
following denominations:

    

    
      
        
          
            	
                    Name

                  	 	
                    Additional

                    Warrants

                    ($)

                  	 
	
                    JAG
      Multi Investments, LLC

                  	 	 	526,506	 
	
                    John
      Winfield

                  	 	 	262,850	 
	
                    Total

                  	 	 	789,356	 

          

        

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.           Pledge of
Shares. As further inducement to the Investors to
enter into the Second Amendment, the Corporation’s
obligations under the Second Amended Notes will be secured by a pledge of an
aggregate of 3,157,425 shares of common stock of the Company beneficially owned
by Yang Yong Shan, the Company’s Chief Executive Officer (the “Pledgor”),
pursuant to the terms and conditions of a Pledge Agreement to be entered into by
the Pledgor, the Investors and the Corporation (the “Pledge Agreement”), as soon
as practicable, but in no event more than 15 days following the date
hereof.  Upon execution, the Pledge Agreement shall be deemed to be a
Transaction Document, as defined hereunder.

    

    5.           Conditions
Precedent.  The effectiveness
of this Second Amendment is subject to satisfaction of each of the following
conditions precedent:

    

    5.1           The
representations and warranties made by the Company in this Second Amendment are
accurate in all respects.

    

    5.2           No
Event of Default shall be in existence under the First Amended
Notes.

    

    5.3           No
Material Adverse Effect shall have occurred since the date of filing of the
Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September
30, 2009, which has not otherwise been disclosed to the Investors.

    

    5.4           No
suit, proceeding or action shall have been commenced against or involving the
Company which, if successful, would result in a Material Adverse
Effect.

    

    5.5           Each
Investor shall have received the following documents and other items from the
Company, duly executed by an authorized representative of the Company, as
necessary:

    

    (a)           An
executed copy of this Second Amendment.

    

    (b)           Evidence
that the execution, delivery and performance of this Second Amendment by the
Company has been duly authorized by all necessary corporate action.

    

    5.6           The
Company shall have received the following documents and other items from each
Investor, duly executed by an authorized representative of such Investor, as
necessary:

    

    (a)           An
executed copy of this Second Amendment.

    

    (b)           Evidence
that the execution, delivery and performance of this Second Amendment by the
Investor has been duly authorized by all necessary corporate action, as
applicable.

    

    6.           Post-Closing
Covenants.  As soon as
practicable, but in no event more than 15 days following the date hereof, the
parties agree that:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    6.1           Each
Investor shall receive the following documents and other items from the Company,
duly executed by an authorized representative of the Company:

    

     (a)           An
executed copy of the Pledge Amendment.

    

     (b)           An
executed original Second Amended Note.

    

     (c)           An
executed original Additional Warrant.

    

    6.2           The
Company shall have received the following documents and other items from each
Investor, duly executed by an authorized representative of such Investor, as
applicable:

    

     (a)           An
executed copy of the Pledge Amendment.

    

     (b)           The
First Amended Note, marked “canceled”.

    

    7.           Transaction
Documents in Full Force and Effect as Amended.  Except as
specifically amended hereby, the Transaction Documents shall remain in full
force and effect and hereby are ratified and confirmed as so
amended.  This Second Amendment shall not constitute a novation,
satisfaction and accord, cure, release and/or satisfaction of the Transaction
Documents, but shall constitute an amendment thereof.  The parties
hereto agree to be bound by the terms and conditions of the Transaction
Documents as amended by this Second Amendment, as though such terms and
conditions were set forth herein and therein in full.  Each reference
in the Transaction Documents or any other document or instrument to any
Transaction Documents, or words of similar import shall mean and be a reference
to the Transaction Documents as amended hereby.

    

    8.           Representations.  The Company
hereby represents and warrants to the Investors as follows: (a) it is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization; (b) the execution, delivery and performance by it
of this Second Amendment are within its powers, have been duly authorized, and
do not contravene (i) its articles of incorporation, bylaws or other
organizational documents, or (ii) any applicable law, statute, regulation,
ordinance, tariff or order; (c) no consent, license, permit, approval or
authorization of, or registration, filing or declaration with any governmental
authority or other person is required in connection with the execution,
delivery, performance, validity or enforceability of this Second Amendment by or
against it; (d) this Second Amendment has been duly executed and delivered by
it; (e) this Second Amendment constitutes its legal, valid and binding
obligations enforceable against it in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally or by general principles of equity; (f) to the best of its knowledge, it is in compliance with all covenants and
agreements in the Transaction Documents and it is not in default under the
Transaction Documents, and no Event of Default exists, has occurred and is
continuing or would result by the execution, delivery or performance of this
Second Amendment; and (g) the representations and warranties contained in the
Transaction Documents are true and correct in all material respects as of the
date hereof as if made on the date hereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    7.           Miscellaneous.

    

    7.1           The execution, delivery and
effectiveness of this Second Amendment shall not, except as expressly provided
herein, be deemed to be an amendment or
modification of, or operate as a waiver of, any provision of the
Transaction Documents, or any right, power or remedy of the Investors, nor
constitute a waiver of any provision of the Transaction Documents, or any other
document, instrument and/or agreement executed or delivered in connection
therewith or of any Event of Default under any of the foregoing, in each case
whether arising before or after the date hereof or as a result of performance
hereunder or thereunder.  This Second Amendment shall not preclude the
future exercise of any right, remedy, power or privilege available to the
parties whether under the Transaction Documents,
at law, or otherwise.

    

    7.2           This
Second Amendment may be executed in any number of counterparts (including by
facsimile), and by the different parties hereto or thereto on the same or
separate counterparts, each of which shall be deemed to be an original
instrument but all of which together shall constitute one and the same
agreement.  Each party agrees that it will be bound by its own
facsimile signature and that it accepts the facsimile signature of
each other party.  The descriptive headings of the various sections of this
Second Amendment are inserted for convenience of reference only and shall not be
deemed to affect the meaning or construction
of any of the provisions hereof or thereof.  Whenever the context and
construction so require, all words herein in the singular number herein shall be
deemed to have been used in the plural, and vice
versa, and the masculine gender shall
include the feminine and neuter and the neuter shall include the masculine and
feminine.

    

    7.3           This
Second Amendment may not be changed, amended, restated, waived, supplemented,
discharged, canceled, terminated or otherwise modified
orally or by any course of dealing or in any manner other
than as provided in the applicable Transaction Documents.  This Second
Amendment shall be considered part of the Transaction Documents for all purposes
under the Transaction Documents.  In the event of any inconsistency
between this Second Amendment and any of the other Transaction Documents, the
terms of this Second Amendment shall control.

    

    7.4           This
Second Amendment, the Second Amended Notes, Additional Warrants and the
Transaction Documents constitute the final, entire agreement and understanding
between the parties with respect to the subject matter hereof and thereof and
may not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements between the parties, and shall be binding upon and inure to the
benefit of the successors and assigns of the parties hereto and
thereto.  There are no unwritten oral agreements between the parties
with respect to the subject matter hereof and thereof.  If any
provision of this Second Amendment is adjudicated to be invalid under applicable
laws or regulations, such provision shall be inapplicable to the extent of such
invalidity without affecting the validity or enforceability of the remainder of
this Second Amendment which shall be given effect so far as
possible.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    7.5           THIS
SECOND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL
BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE CHOICE OF
LAW PROVISIONS SET FORTH IN THE TRANSACTION DOCUMENTS, AS AMENDED BY THIS SECOND
AMENDMENT.

    

    7.7           Each
party shall execute and deliver such other documents, certificates and/or
instruments and
take such other actions as reasonably requested by the other party in
order more effectively to consummate the transactions contemplated
hereby.

    

    [SIGNATURES
APPEAR ON THE NEXT PAGES]

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF,
the parties have caused this Second Amendment to be executed under seal
by their respective
officers thereunder duly authorized, as of the date first above
written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    COMPANY:

                                  
	 
      	 
      
	 
      	
                                    EMERALD
      DAIRY INC.

                                  
	 
      	 
      	 
      
	 
      	
                                    By:

                                  	
                                    /s/
      Shu Kaneko

                                  
	 
      	
                                    Name:

                                  	
                                    Shu
      Kaneko

                                  
	 
      	
                                    Title:

                                  	
                                    Chief
      Financial Officer

                                  
	 
      	 
      	 
      
	 
      	
                                    INVESTORS:

                                  
	 
      	 
      	 
      
	 
      	
                                    /s/
      John Winfield

                                  
	 
      	
                                    John
      Winfield

                                  
	 
      	 
      	 
      
	 
      	
                                    JAG
      MULTI INVESTMENTS LLC

                                  
	 
      	 
      	 
      
	 
      	
                                    By:

                                  	
                                    /s/
      Alexander Goren

                                  
	 
      	
                                    Name:

                                  	
                                    Alexander
      Goren

                                  
	 
      	
                                    Title:

                                  	
                                    Managing
      Member

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    (Form of
Second Amended Note)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

     

    (Form of
Additional Warrants)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]