Document:

Unassociated Document

    

    WAIVER
AND CONSENT

    

    THIS WAIVER AND CONSENT (this “Agreement”)
is made on the 30th of
June, 2009 by and among CHINA GREEN AGRICULTURE, INC., a Nevada corporation (the
“Company”),
and the undersigned Investors. Each of the capitalized terms not otherwise
defined herein shall have the meanings ascribed to them in the Stock Purchase
Agreement described below.

    

    RECITALS

    

    WHEREAS, on December 26, 2007,
the Company, previously known as Discovery Technologies, Inc., and the
Investors, consummated a private placement by entering into a Securities
Purchase Agreement (the “SPA”) and its ancillary documents pursuant to which the
Company issued and sold to the Investors an aggregate of 6,313,617 shares of
common stock, par value $.001 per share, of the Company for total gross proceeds
of $20,519,255;

    

    WHEREAS, pursuant to Section
4.14 of the SPA, the Investors have a right of first refusal on any new offering
of the Company’s securities until August 6, 2009, being one year anniversary of
the effectiveness of the Registration Statement on Form S-1 which was declared
effective by the U.S. Securities and Exchange Commission (the “SEC”) on August
6, 2008;

    

    WHEREAS, the Company filed
with the SEC a registration statement on Form S-3 for a shelf registration of up
to $50,000,000 on June 8, 2009 (the “S-3”) which was declared effective by the
SEC on June 12, 2009;

    

    WHEREAS, the Company deems it
is in its best interest to proceed with a takedown from the S-3 in the form of
an underwritten offering on or around July 1, 2009 or any appropriate date
thereafter (the “S-3 Shelf Takedown”);

    

    WHEREAS, as of the date hereof
the Company granted an aggregate of 198,000 options to its directors, officers
and employees (the “Option Grant”) which were subject to the Investors’ right of
first refusal pursuant to Section 4.14 of the SPA;

    

    WHEREAS, Section 4.16 of the
SPA setting forth Liquidated Damages for Governmental Rescission of the
Transaction triggered the accounting treatment that the 6,313,617 shares issued
pursuant to the SPA are deemed temporary equity instead of permanent equity
because they are subject to redemption; and

    

    WHEREAS, Section 6.4 of the SPA enables the
Company and Investors holding a majority of the Shares to waive and/or amend
provisions of the SPA by written agreement and the undersigned Investors
constitute “Investors holding a majority of the Shares.”

    
      
         

      

      
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    NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, pursuant to Section 6.4 of the SPA, the parties hereby agree as
follows:

    

    Section
1.          Consent and Waiver of Right
of First Refusal with regard to S-3 Shelf
Takedown.    The Investors hereby waive the right of
first refusal with respect to the S-3 Shelf Takedown and any offering of
securities thereafter so that it therefore ceases to have any effect whatsoever
as of the date hereof.

    

    Section
2.          Consent and Waiver of Right
of First Refusal with regard to the Option Grant.  The
Investors hereby consent to the Option Grant and hereby waive the right of first
refusal and any claim(s) arising from said right of first refusal each with
respect to the Option Grant, effective as of the dates of each grant
constituting the Option Grant.

    

    Section
3.          Consent on the Termination
of the Effect of Section 4.16 of the SPA.  The Investors hereby
waive any and all rights arising under Section 4.16 of the SPA and agree that
the SPA shall be amended as of the date hereof to delete Section 4.16 in its
entirety.

    

    Section
4.          Miscellaneous.

    

    (a)           Expenses.  Each
party shall bear its own costs and expenses, including legal fees, incurred or
sustained in connection with the preparation of this Agreement and related
matters.

     

    (b)           Amendments and
Waivers.  The provisions of this Agreement, including the
provisions of this sentence, 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 Investors
holding a majority of the Shares.

     

    (c)           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be delivered as set forth in the SPA.

     

    (d)           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.

     

    (e)           Execution and
Counterparts.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

    
      
         

      

      
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    (f)           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined in
accordance with the provisions of the SPA.

     

    (g)           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 commercially
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.

     

    (h)          Headings.  The
headings in this Agreement are for convenience only, do not constitute a part of
the Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    (i)           Except
as specifically contemplated by this Agreement, the SPA shall remain in full
force and effect, unaffected by this Agreement.

     

    (j)           Independent Nature of
Investors’ Obligations and Rights.  The obligations of each
Investor hereunder are several and not joint with the obligations of any other
Investors hereunder, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor hereunder. Nothing
contained herein or in any other agreement or document delivered at any closing,
and no action taken by any Investor pursuant hereto, 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 with respect to such obligations or the transactions
contemplated by this Agreement. Each Investor shall be entitled to 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.

     

    [Signature
Pages Follow]

    
      
         

      

      
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    IN WITNESS WHEREOF, the
parties have executed and delivered this Waiver and Consent as of the date first
written above.

     

    
      
        
          
            	
                    COMPANY:

                  
	 
      
	
                    CHINA
      GREEN AGRICULTURE, INC.

                  
	 
      	 
      	 
      
	
                    By:

                  	
                    /s/ Tao Li

                  
	 
      	
                    Name:

                  	
                    Tao
      Li

                  
	 
      	
                    Title:

                  	
                    President
      & Chief Executive
Officer

                  

          

        

      

    

    

    INVESTORS:

    

    
      
        	ARDSLEY
      PARTNERS FUND II, L.P.	 
	 
      	 
      	 
      
	
                By:

              	
                /s/ Steve Napol

              	 
      
	
                Name:

              	Steve
      Napol	 
      
	
                Title:

              	Partner	 
      
	 
      	 
      	 
      
	
                ARDSLEY OFFSHORE FUND, LTD.

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Steve Napol

              	 
      
	
                Name:

              	Steve
      Napol	 
      
	
                Title:

              	Agent/Advisor	 
      
	 
      	 
      	 
      
	
                ARDSLEY PARTNERS INSTITUTIONALFUND,
      LLC

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Steve Napol

              	 
      
	
                Name:

              	Steve
      Napol	 
      
	
                Title:

              	Partner	 
      
	 
      	 
      	 
      
	
                MARION LYNTON

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                
                  /s/ Steve Napol

                

              	 
      
	
                Name:

              	
                Steve Napol

              	 
      
	
                Title:

              	Agent/Advisor	 
      
	 	 	 
	Chestnut
      Ridge Partners, LP	 
	
                 

              	 	 
	
                By: 

              	/s/
      Kenneth Holz	 
	
                Name:

              	Kenneth
      Holz	 
	
                Title:

              	Chief
      Financial Officer	 

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

        
          	MidSouth
      Investor Fund LP	 
	 
      	 
      	 
      
	
                  By:

                	
                  /s/ Lyman O. Heidtke

                	 
      
	Name:	Lyman
      O. Heidtke	 
	
                  Title:

                	General
      Partner	 
      
	 
      	 
      	 
      
	
                  The Pinnacle Fund., L.P.

                	 
      
	 
      	 
      	 
      
	
                  By:

                	
                  /s/ Barry M. Kitt

                	 
      
	Name:	Barry
      M. Kitt	 
	
                  Title:

                	General
      Partner	 
      
	 
      	 
      	 
      
	
                  Pinnacle China Fund, LP

                	 
      
	 
      	 
      	 
      
	
                  By:

                	
                  /s/ Barry M. Kitt

                	 
      
	Name:	Barry
      M. Kitt	 
	
                  Title:

                	Manager	 
      
	 
      	 
      	 
      
	
                  Sandor Capital Masterfund
LP

                	 
      
	 
      	 
      	 
      
	
                  By:

                	
                  
                    /s/ John S Lemak

                  

                	 
      
	Name:	John
      S Lemak	 
	
                  Title:

                	General
      Partner	 
      

        

      

      
        

          
            
               

            

            
              5LOCK-UP
AGREEMENT

    

    July 20,
2009

    

    Roth
Capital Partners, LLC

    24
Corporate Plaza

    Newport
Beach, CA 92660

    

    Re:       China
Green Agriculture, Inc. (the “Company”)

    

    Ladies
& Gentlemen:

    

    The
undersigned is an owner of record or beneficially of certain shares of common
stock, par value $.001 per share, of the Company (“Common Stock”) or securities
convertible into, exchangeable, or exercisable for Common Stock, the number of
which as of the date of this Agreement is indicated on the signature page below
(“Securities”).  The
Company proposes to carry out a public offering of Common Stock (the “Offering”) for which you will
act as the underwriter. The undersigned recognizes that the Offering will be of
benefit to the undersigned. The undersigned acknowledges that you are relying on
the representations and agreements of the undersigned contained in this letter
in carrying out the Offering and in entering into an Underwriting Agreement (the
“Underwriting
Agreement”) with the Company with respect to the Offering.

     

    In
consideration of the foregoing, the undersigned hereby agrees that the
undersigned will not, without the prior written consent of Roth Capital
Partners, LLC (which consent may be withheld in its sole discretion), directly
or indirectly, sell, offer to sell, contract to sell, or grant any option for
the sale (including without limitation any short sale), grant any security
interest in, pledge, hypothecate, hedge, establish an open “put equivalent
position” within the meaning of Rule 16a-1(h) under the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder
(collectively, the “Exchange
Act”) or otherwise dispose of or enter into any transaction which is
designed to, or could be expected to, result in the disposition (whether by
actual disposition or effective economic disposition due to cash settlement or
otherwise by the Company or any affiliate of the Company or any person in
privity with the Company or any affiliate of the Company) of any shares of
Common Stock or any Securities (collectively, a “Disposition”) currently or
hereafter owned either of record or beneficially (as defined in Rule 13d-3 under
the Exchange Act) by the undersigned, or publicly announce the undersigned’s
intention to do any of the foregoing (provided, however, that the
undersigned may complete one or more gift transfers of Securities to immediate
family member(s) (as defined in Item 404(a) of Regulation S-K under the Exchange
Act) or transfer Securities to one or more trusts for bona fide estate planning
purposes without prior written consent and upon written notice to Roth Capital
Partners), for a period commencing on the date hereof and ending ninety (90)
days after the Closing Date, as defined in the Underwriting Agreement, subject
to adjustment as discussed below (the “Lock-up
Period”).  The undersigned also agrees and consents to the
entry of stop transfer instructions with the Company’s transfer agent and
registrar against the transfer of shares of Common Stock or securities
convertible into or exchangeable or exercisable for Common Stock held by the
undersigned except in compliance with the foregoing restrictions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
foregoing restriction has been expressly agreed to preclude the holder of the
Securities from engaging in any hedging or other transaction which is designed
to or reasonably expected to lead to or result in a Disposition of Securities
during the Lock-up Period, even if such Securities would be disposed of by
someone other than such holder.  Such prohibited hedging or other
transactions would include, without limitation, any short sale (whether or not
against the box) or any purchase, sale, or grant of any right (including,
without limitation, any put or call option) with respect to any Securities or
with respect to any security (other than a broad-based market basket or index)
that included, relates to, or derives any significant part of its value from
Securities.  The undersigned also agrees and consents to the entry of
stop transfer instructions with the Company’s transfer agent and registrar
against the transfer of shares of Common Stock or Securities held by the
undersigned except in compliance with the foregoing restrictions.

     

    For the
purpose of allowing Roth Capital Partners, LLC to comply with NASD Rule
2711(f)(4), or the applicable successor FINRA Rule when published, if (1) during
the last 17 days of the Lock-Up Period, the Company releases earnings results or
publicly announces other material news or a material event relating to the
Company occurs or (2) prior to the expiration of the Lock-Up Period, the Company
announces that it will release earnings results during the 16 day period
beginning on the last day of the Lock-Up Period, then in each case the Lock-Up
Period will be extended until the expiration of the 18 day period beginning on
the date of release of the earnings results or the public announcement regarding
the material news or the occurrence of the material event, as applicable, unless
Roth Capital Partners, LLC waives, in writing, such extension.  Roth
Capital Partners, LLC agrees to waive such extension if the provisions of NASD
Rule 2711(f)(4) or any applicable successor rule are not applicable to the
Offering.

     

    The
undersigned understands that, if the Underwriting Agreement does not become
effective, or if the Underwriting Agreement (other than the provisions thereof
which survive termination) shall terminate or be terminated prior to payment for
and delivery of the Common Stock to be sold thereunder, the undersigned shall be
released from, all obligations under this Lock-Up Agreement.

     

    This
agreement is irrevocable and will be binding on the undersigned and the
respective successors, heirs, personal representatives, and assigns of the
undersigned.

     

    Nothing
in this Lock-up Agreement shall constitute an obligation to purchase shares of
Common Stock or Securities of the Company.

     

    This
Lock-Up Agreement shall be governed by and construed in accordance with the laws
of the State of California, without regard to the conflict of laws principles
thereof.

     

    

    
      
        
          	
                  Tao Li

                	 
      
	
                  Printed
      Name of Holder

                	 
      
	 
      	 
      	 
      
	
                  By:

                	
                   /s/ Tao Li

                	 
      
	 
      	
                  Signature

                	 
      

        

      

    

    

    Number of
Shares: 4,740,902 shares of Common Stock

     

    
      
         

      

      
        - 2
-

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