Document:

MAKE
      GOOD ESCROW AGREEMENT

     

    This
      Make
      Good Escrow Agreement (the "Make
      Good Agreement"),
      dated
effective
      as of December 24, 2007, is entered into by and among Discovery Technologies,
      Inc., a Nevada corporation (the
      "Company"),
      the
      Investors (as defined below), Yinshing David To
      (the
"Make
      Good Pledgor")
      and
      Tri-State Title & Escrow, LLC, as escrow agent ("Escrow
      Agent").

     

    WHEREAS,
      each of the investors in the private offering of securities of the Company
      (the
"Investors")
      has
      entered into a Securities Purchase Agreement, dated December 24,
      2007
      (the "SPA"),
      evidencing their participation in the Company's private offering (the
"Offering")
      of
      securities. As an inducement to the Investors to participate in the Offering
      and
      as set forth in the SPA, (i) the Make Good Pledgor agreed to place
      certain shares of the Company’s common stock, par value $0.001 per share (the
“Common
      Stock”)
      into
      escrow for the benefit of the Investors in the event the Company fails to
      satisfy certain financial thresholds. 

     

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

     

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

     

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

     

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

     

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

     

    2. Establishment
      of Escrow.

     

    a.
      Within
      three Trading Days following the Closing, the Make Good Pledgor shall
      deliver, or cause to be delivered, to the Escrow Agent certificates evidencing
      the 2009
      Make Good Shares
      (the
"Escrow
      Shares"),
      along
      with bank signature stamped stock powers executed in blank (or such other signed
      instrument
      of transfer acceptable to the Company’s Transfer Agent). For purposes hereof,
“2009 Make Good Shares” means
      the
      following, as
      equitably adjusted for any stock splits, stock combinations, stock dividends
      or
      similar transactions:
      the
      Shares (as defined in the SPA) times 50%.
      As used
      in this Make
      Good
      Agreement, “Transfer
      Agent”
      means
      Corporate Stock Transfer, a transfer agent based in the state of Colorado,
      or
such
      other entity hereafter retained by the Company as its stock transfer agent
      as
      specified in a writing from the Company to the Escrow Agent. The Make Good
      Pledgor hereby agrees that his obligation to transfer shares of Common Stock
      to
      Investors pursuant to Section 4.11 of the SPA and this Make Good Agreement
      shall
      continue to run to
      the
      benefit of each Investor even if such Investor shall have transferred or sold
      all or any portion of its Shares, and that Investors shall have the right to
      assign its rights to receive
      all or any such shares of Common Stock to other Persons in conjunction with
      negotiated sales or transfers of any of its Shares. The Make Good Pledgor hereby
      irrevocably agrees that other than in accordance with Section 4.11 of the SPA
      and this Make
      Good
      Agreement, the Make Good Pledgor will not offer, pledge, sell, contract to
      sell,
      sell any option or contract to purchase, purchase any option or contract to
      sell, grant any
      option, right or warrant to purchase or otherwise transfer or dispose of,
      directly or indirectly, or announce the offering of any of the Escrow Shares
      (including any securities convertible
      into, or exchangeable for, or representing the rights to receive Escrow
Shares).
      In furtherance thereof, the Company will (x) place a stop order on all Escrow
      Shares
      covered by any registration statements, (y) notify the Transfer Agent in writing
      of the
      stop
      order and the restrictions on such Escrow Shares under this Make Good
Agreement
      and direct the Transfer Agent not to process any attempts by the Make Good
      Pledgor to resell or transfer any Escrow Shares under such registration
      statements or otherwise in violation of Section 4.11 of the SPA and this Make
      Good Agreement. If within
      ten (10) business days following the Closing, the Make Good Pledgor shall not
      have deposited
      all potential 2009 Make Good Shares into escrow in accordance with this Make
      Good Agreement along with bank signature stamped stock powers executed in blank
      (or such other signed instrument of transfer acceptable to the Company’s
      transfer agent), then, upon written demand from an Investor, the Make Good
      Pledgor agrees that the Company may promptly
      cancel the Escrow Shares and reissue new Escrow Shares to
      the
      Escrow Agent. The Company will notify the Investors within a reasonable time
      that the Escrow Shares have been deposited with
      the
      Escrow Agent.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    3. Representations
      of the Make Good Pledgors and the Company. The
      Make
      Good Pledgor, and the Company as to itself only,
      hereby
      represent and warrant to
      the
      Investors as follows:

     

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

     

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

     

    4. Disbursement
      of Escrow Shares.

     

    a.
      The
      Make Good Pledgor agrees that in the event that either (i) the Earnings Per
      Share (as defined in the SPA) reported in the in
      the
      Annual Report on Form 10-KSB of the Company for the fiscal year ending June
      30,
      2009, as filed with the Commission
      (the
“2009
      Annual Report”),
      is
      less than the “2009
      Guaranteed EPS”,
      as
      defined in the SPA, meaning, ninety
      three percent of the 2009 Guaranteed ATNI, as defined below, divided by the
      Closing Outstanding Shares (as defined in the SPA), as
      may be
      equitably adjusted for any stock splits, stock combinations, stock dividends
      or
      similar transactions: 

     

    
      	 	2009 Guaranteed ATNI × 93%	 
	 	
              Closing
                Outstanding Shares

            	 

    

     

    
      
         

      

      
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    or
      (ii)
      the After Tax Net Income
      (as
      defined in the SPA) reported in the 2009 Annual Report,
      is less
      than $12,000,000 (the “2009
      Guaranteed ATNI”),
      the
      Make Good Pledgors will transfer to the Investors on a pro-rata basis
      (determined by dividing each Investor’s Investment Amount by the aggregate of
      all Investment Amounts delivered to the Company by the Investors under the
      SPA)
      for no consideration other than payment of their
      respective Investment Amount paid at Closing, the
      2009
      Make Good Shares.
      Notwithstanding
      anything to the contrary contained herein, in determining
      whether the Company has achieved the 2009 Guaranteed ATNI or 2009 Guaranteed
      EPS, the Company may disregard any compensation charge or expense required
      to be
      recognized by the Company under GAAP resulting from
      the
      release of the 2009 Make Good Shares to Make
      Good
      Pledgor if and to the extent such charge or expense is specified in
      the
      Company’s
      independent auditor’s report
      for the
relevant
      year, as filed with the Commission. No other exclusions shall be made for any
      non-recurring expenses of the Company, including liquidated damages under the
      Transaction Documents, in determining whether
      2009
      Guaranteed ATNI or 2009 Guaranteed EPS
      have
      been achieved. If prior to the second anniversary of the filing of the 2009
      Annual Report, the Company or their auditors report or recognize that the
      financial statements contained in such report are subject to amendment or
      restatement such that the Company would recognize or report adjusted After
      Tax
      Net Income of less than the 2009 Guaranteed ATNI or Earnings Per Share of less
      than the 2009 Guaranteed EPS, as applicable, then notwithstanding any prior
      return of
      2009
      Make Good Shares
      to the
      Make Good Pledgor, the Make Good Pledgor will, within 10 Business Days following
      the earlier of the filing of such amendment or restatement or recognition,
      deliver the 2009 Make Good Shares to the Investors. In
      the
      event that the After Tax Net Income reported in the 2009 Annual
      Report
      is equal
      to or greater than the 2009 Guaranteed ATNI
      and
      the Earnings Per Share for the fiscal year ending June 30, 2009, as reported
      in
      the 2009 Annual Report is equal to or greater than the 2009 Guaranteed EPS,
      no
      transfer of the 2009 Make Good Shares shall be required by the Make Good Pledgor
      to the Investors under this Section and such 2009 Make Good Shares shall be
      conveyed to Tao
      Li in
      accordance with this Make Good Agreement. Any
      transfer of the 2009 Make Good Shares under this Section
      shall be made to the Investors or the Make Good Pledgor, as applicable, within
      10 Business Days after the date which the 2009 Annual Report is
      filed
      with the Commission and otherwise in accordance
      with this Make Good Agreement. In
      the
      event that either (i) the
      Earnings Per Share for the fiscal year ending June 30, 2009 is
      less
      than the 2009 Guaranteed EPS or (ii) the After
      Tax
      Net Income
      for the
      fiscal year ending June 30, 2009, as reported in the 2009 Annual
      Report is
      less
      than the 2009 Guaranteed ATNI, the Company has agreed that
      Pinnacle
      Fund L.P. (“Pinnacle”) will
      provide prompt written instruction to the Escrow Agent with regard to the
      distribution of the 2009 Make Good Shares in an amount to each Investor as
      set
      forth on Exhibit
      A attached
      hereto (as determined as set forth above). The Escrow Agent need only
      rely
      on the letter of instruction from Pinnacle in this regard and, notwithstanding
      anything to the contrary contained herein, will disregard any contrary
      instructions. In
      the
      event that the
      (i)
      Earnings
      Per Share for the fiscal year ending June 30, 2009 reported in the 2009 Annual
      Report
      is
      equal
      to or greater than the 2009 Guaranteed EPS and (ii)
      After
      Tax Net Income
      reported
      in the 2009 Annual Report is equal to or greater than the 2009 Guaranteed ATNI,
      Pinnacle
      shall provide prompt written instructions to the Escrow Agent for the release
      of
the
      2009
      Make Good Shares to the Make Good Pledgor.

     

    
      
         

      

      
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    b.
      Pursuant to Section 4(a), if Pinnacle delivers a notice to the Escrow Agent
      that
      the 2009 Make Good Shares are to be transferred to the Investors, then the
      Escrow Agent shall immediately
      forward the 2009 Make Good Shares to the Company’s Transfer Agent for reissuance
      to the Investors in an amount to each Investor as set forth on Exhibit
      A
      attached
      hereto and otherwise in accordance with this Make Good Agreement. The Company
      covenants and agrees that upon any transfer of 2009 Make Good Shares to the
      Investors in accordance with this Make Good Agreement, the Company shall
      promptly instruct its Transfer Agent to reissue such 2009 Make Good Shares
      in
      the applicable Investor’s name and deliver the same as directed by such Investor
      in an amount
      to
      each Investor as set forth on Exhibit
      A attached
      hereto. If the Company does not promptly provide such instructions to the
      Transfer Agent of the Company, then Pinnacle
      is
      hereby
      authorized to give such re-issuance instruction to the Transfer Agent
of
      the
      Company. If a notice from Pinnacle pursuant to Section 4(a) indicates that
      the
      2009 Make Good Shares are to be conveyed to Tao
      Li,
      then
      the Escrow Agent will promptly deliver the 2009 Make Good Shares to Tao
      Li.

     

    c.
      The
      Company and Make Good Pledgor covenant and agree, jointly and severally, to
      provide the Escrow
      Agent with certified tax identification numbers by furnishing appropriate forms
      W-9 or W-8 and such other forms and documents that the Escrow Agent may request,
      including
      appropriate W-9 or W-8 forms for each Investor. The Company and the Make Good
      Pledgor understand that if such tax reporting documentation is not provided
      and
certified
      to the Escrow Agent, the Escrow Agent may be required by the Internal
Revenue
      Code of 1986, as amended, and the Regulations promulgated thereunder, to
withhold
      a portion of any interest or other income earned on the investment of the
Escrow
      property.

     

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

     

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

     

    
      
         

      

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

     

    8.  Exculpation
      and Indemnification of Escrow Agent and Pinnacle.

     

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

     

    
      
         

      

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

     

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

     

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

     

    
      
         

      

      
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    10. Resignation
      of Escrow Agent. At
      any
      time, upon ten (10) days' written notice to the Company, Escrow Agent may resign
      and be discharged from its duties as Escrow Agent hereunder. As soon as
      practicable after its resignation, Escrow Agent will promptly turn over to
      a
      successor escrow agent appointed by the Company the Escrow Shares held hereunder
      upon presentation of a document appointing the new escrow agent and evidencing
      its acceptance thereof. If, by the end of the 10-day period following the
giving
      of
      notice of resignation by Escrow Agent, the Company shall have failed to
appoint
      a
      successor escrow agent, Escrow Agent may interplead the Escrow Shares into
      the
      registry of any court having jurisdiction.

     

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

     

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

     

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

     

    14. Assignment
      and Modification. This
      Make
      Good Agreement and the rights and obligations hereunder of any of the parties
      hereto may not be assigned without the prior written consent of the other
      parties hereto. Subject to the foregoing, this Make Good Agreement will be
      binding upon and inure to the benefit of each of the parties hereto and
their
      respective successors and permitted assigns. No other person will acquire or
      have any
      rights under, or by virtue of, this Make Good Agreement. No portion of the
      Escrow Shares shall be subject to interference or control by any creditor of
      any
      party hereto, or be subject to being taken or reached by any legal or equitable
      process in satisfaction of any debt or other liability of any such party hereto
      prior to the disbursement thereof to such party
      hereto in accordance with the provisions of this Make Good Agreement. This
      Make
      Good
      Agreement may be amended or modified only in writing signed by all of the
      parties hereto.

     

    
      
         

      

      
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    15. Applicable
      Law. This
      Make
      Good Agreement shall be governed by and construed in accordance with the laws
      of
      the State of Virginia without giving effect to the principles of conflicts
      of
      laws thereof.

     

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

     

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

     

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

     

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        7

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Make Good Agreement as
      of
      the date set forth above.

    
      	 	 	 
	 	COMPANY:
	 	 
	 	DISCOVERY
              TECHNOLOGIES, INC.
	 
 	 
 	 
 
	
            	By:  	
              /s/
                Tao Li

            
	 	
              
Name:
              Tao Li
	 	
              Title:
                Chairman of the Board,
                
                President
                  and Chief Executive Officer
                  
                  Address:

                  Facsimile:
                    

                  Attn.:

                

              

            

    

    
      	 	 	 
	 	
              MAKE
                GOOD PLEDGOR:

            
	 	 
	 
 	 
 	 
 
	
            	  	/s/
              Yinshing David To
	 	
              
Yinshing
              David To
	 	
            

    

    
      	 	 	 
	 	
              ESCROW
                AGENT:

            
	 	 
	 	
              TRI
                STATE TITLE & ESCROW, LLC,

              as
                Escrow Agent

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	
              Title:

            
	 	
              Address:

              Facsimile:
                

              Attn.:

            

    

     

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      OF THIS PAGE INTENTIONALLY LEFT BLANK -

    SIGNATURE
      PAGE FOR OTHER PARTIES FOLLOWS]

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	 	 	 
	 	
              NAME
                OF INVESTOR

            
	 
 	 
 	 
 
	 	By:  	
            
	 	
              
Name:
	 	
              Title:

            
	 	
              Address:

              Facsimile:
                

              Attn.:

            

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Exhibit
      A (attached
      as a MS Excel spreadsheet)

     

    ESCROW
      SHARES TO BE ISSUED TO INVESTORS

     

    
      	
              Investor’s Legal Name

            	
              Investor’s
Investment
                Amount

            	
              2009
                Make Good Shares Shares)

            
	 	 	 
	 	 	 

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    Exhibit
      B

     

    Initial
      Escrow Account Fee: $2,000.00

     

    Fee
      for
      each disbursement of shares : $ 500.00HOLDBACK
      ESCROW AGREEMENT

     

    This
      Holdback Escrow Agreement, dated as of December 24, 2007 (this “Agreement”),
      is
entered
      into by and among Discovery Technologies, Inc., a Nevada corporation (the
“Company”),
      the
      investors set forth on Exhibit
      A
      and
      signatory hereto (collectively, the “Investors”),
      and
      Tri-State Title & Escrow,
      LLC (the “Escrow
      Agent”).
      The
      principal address of each party hereto is set forth
      on
Exhibit
      A.
      The
      Company is sometimes referred to herein as the Escrowing Party.

     

    WITNESSETH:
      

     

    WHEREAS,
      the Company, through, Hickey Freihofner Capital, a division of Brill Securities,
      Inc, Member NASD/MSRB/SIPC (the “Placement Agent”),
      proposes to make a private offering to accredited institutional investors
      (the “Offering”)
      of the
      Company’s common stock, par value $0.001 per share (the
      “Securities”)
      in
      reliance upon available exemptions from the registration requirements
      of the U.S. Securities Act of 1933, as amended (the “Act”)
      and
      pursuant to the
      Securities Purchase Agreement (the
      “Securities
      Purchase Agreement”),
      in an
      minimum amount of twenty million dollars ($20,000,000) and a maximum aggregate
      amount of twenty six million dollars ($26,000,000) (the “Subscription
      Amount”);

     

    WHEREAS,
      the Company has agreed to deposit at the closing of the transactions
      contemplated by the Securities Purchase Agreement (the “Closing”)
      an
      aggregate of $4,250,000.00 of the proceeds received
      from subscriptions made by the investors in the Offering (the “Investors”)
      for
      the Securities
      as more fully specified in this Agreement (the “Escrowed
      Funds”)
      with
      the Escrow Agent, to be held in escrow
      and administered and distributed as described in Section 4.12 of the Securities
      Purchase Agreement and Section 3 of this Agreement;

     

    WHEREAS,
      Escrow Agent is willing to hold the Escrowed Funds in escrow subject
      to the terms and conditions of this Agreement;

     

    WHEREAS,
      in contemplation of, and as a material inducement for the Investors to
      enter
      into the Securities Purchase Agreement, the Company and Escrow Agent have each
      agreed to execute and deliver this Agreement; and

     

    WHEREAS,
      capitalized terms used but not otherwise defined herein shall have the
      respective meanings given to such terms in the Securities Purchase
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual promises herein contained and
      intending to be legally bound, the parties hereby agree as follows:

     

    1. Appointment
      of Escrow Agent.
      The
      Company hereby appoints Escrow Agent as escrow
      agent in accordance with the terms and conditions set forth herein and the
      Escrow Agent
      hereby accepts such appointment.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2. Delivery
      of the Escrowed Funds.

     

    2.1 The
      Company hereby directs that the Escrowed
      Funds be delivered simultaneously with the Closing to the Escrow Agent’s account
      (the “Escrow
      Account”)
      as
      follows:

    

    Account
      Name: Tri-State Title & Escrow, LLC

    Bank:
      Access National Bank, Reston, VA 20191

    Account
      No.: 2681757

    ABA
      No:
      .056009039 

    Escrowed
      Funds: $4,250,000.00

    

    3. Escrow
      Agent to Hold and Disburse Escrowed Funds.
      Promptly following the Closing, the Escrow Agent will provide written notice
      to
      the Company (for simultaneous distribution to the Investors) that the Escrow
      Agent has received the entire amount of Escrowed Funds in the Escrow Account.
      The Escrow Agent will hold and
      disburse the Escrowed Funds received by it pursuant to the terms of this
      Agreement, as follows: 

     

    3.1 Pursuant
      to Section 4.12 of the Securities Purchase Agreement, the Company has undertaken
      that
      no
      later than 120 days following the Closing Date, the Board of Directors of the
      Company shall be comprised of a minimum of five members, a majority of which
      shall be “independent directors” as such term is defined in NASDAQ Marketplace
      Rule 4200(a)(15). Accordingly, $2,000,000
      (the
      “Board
      Holdback Escrow
      Amount”)
      of the
      Escrowed Funds is to be held in the Escrow Account subject to the satisfaction
      of the Company’s obligations under Section 4.12 of the Securities Purchase
      Agreement. 

     

    3.2 Pursuant
      to Section 4.15 of the Securities Purchase Agreement, the Company has undertaken
      that no later than three
      months
      following the Closing Date, the Company will hire a chief financial officer
      who
      is a
      certified public accountant or possesses experience such that he or she can
      reasonably serve as a chief financial officer, fluent in English, and
who
      has a
      working familiarity with
      (i) US
      GAAP and (ii) auditing procedures and compliance for United States public
      companies;
      provided that if the proposed CFO is not a certified public accountant, who
      is
      fluent in English and an expert in GAAP and auditing procedures and compliance
      for United States public companies, then such proposed CFO shall be subject
      to
      Pinnacle’s reasonable approval. The Company shall enter into an employment
      agreement with the CFO for a term of no less than two years. Accordingly,
      $2,000,000
      (the
      “CFO
      Holdback Escrow
      Amount”)
      of the
      Escrowed Funds is to be held in the Escrow Account subject to the satisfaction
      of the Company’s obligations under Section 4.15 of the Securities Purchase
      Agreement. 

     

    3.3 Pursuant
      to Section 4.13 of the Securities Purchase Agreement, the Company has undertaken
      that by the thirtieth day following the Closing Date, the Company shall hire
      either of CCG Elite, Hayden Communications, or Integrated Corporate Relations
      as
      the Company’s investor relations firm. Accordingly, $250,000
      (the
      “IR
      Holdback Escrow
      Amount”)
      of the
      Escrowed Funds is to be held in the Escrow Account subject to the satisfaction
      of the Company’s obligations under Section 4.13 of the Securities Purchase
      Agreement. The
      IR
      Holdback Escrow Amount shall remain in the Escrow Account and shall only be
      released by the Escrow Agent to the Company upon the Escrow Agent’s receipt of
      written notice from the Company and the Investors then holding a majority of
      the
      Shares (the “Required
      Investors”)
      that
      the Company has hired one of the aforementioned investor relations firms and
      then only to the extent that the Company evidences investor relations related
      expenses for payment; provided, however, if there are no such investor relations
      related expenses or only a portion of such IR Holdback Escrow Amount is required
      to pay investor relations related expenses, any remaining portion shall be
      returned to the Investors pro rata to the accounts for such Investors set forth
      on Schedule
      1.
      No
      other portion of the Escrowed Funds may be used by the Company for such
      purposes.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.4 If
      for
      any reason or for no reason whatsoever, the Escrow Agent does not receive the
      written notice contemplated
      herein
      from the Company and the Required Investors relating to either the release
      of
      (i) the Board Holdback Escrow Amount prior to 125 calendar days following the
      Closing Date (the “Board
      Compliance Period”)
      or
      (ii) CFO Holdback Escrow Amount prior to 95 calendar days following the Closing
      Date (the “CFO
      Compliance Period”)
      (each
      such failure or breach being referred to as an “Event,”
and
      for purposes of this Section the date such Event occurs being referred to as
      “Event
      Date”),
      then
      in addition to any other rights the Investors may have hereunder, under the
      Securities Purchase Agreement or under applicable law, on each such Event Date
      and on each monthly anniversary of 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 Investor by wire transfer an amount in immediately
      available funds, as partial liquidated damages and not as a penalty, equal
      to 1%
      of the aggregate Investment Amount paid by such Investor for Shares pursuant
      to
      the Securities Purchase Agreement. The partial liquidated damages payable under
      this Section 3.4 shall be independent of any other damages payable under this
      Agreement, the Securities Purchase Agreement or any other Transaction Document
      and shall apply on a daily pro-rata basis for any portion of a month prior
      to
      the cure of an Event. In no event will the Company be liable for partial
      liquidated damages under this Agreement in excess of 1% of the aggregate
      Investment Amount of the Investors in any 30-day period in respect of any single
      Event (it being understood that if the Company suffers an Event relating to
      its
      failure to comply with Section 4.12 of the Securities Purchase Agreement and
      an
      Event relating to its failure to comply with Section 4.15 of the Securities
      Purchase Agreement in a 30-day period it will be responsible for 2% of partial
      liquidated damages under this provision in a 30-day period). It is further
      understood that partial liquidated damages under this Agreement are limited
      to
      the Board Holdback Escrow Amount as to that Event and the CFO Holdback Escrow
      Amount as to that Event; provided that the Investors are entitled to all other
      remedies available under applicable law. On any Event Date, the Company will
      deliver to each Investor a written notice which shall set forth the relevant
      Event. Schedule
      1
      attached
      hereto shall set forth the name, address, Investment Amount and delivery
      instructions for any partial liquidated damages contemplated hereby of each
      Investor.

     

    3.5 In
      the
      event that the Escrow Agent does not timely receive the written notice from
      the
      Company and the Required Investors in accordance with the terms hereof prior
      to
      the expiration of either of the Board Compliance Period and/or the CFO
      Compliance Period, as relevant, the Company hereby irrevocably directs the
      Escrow Agent to automatically, and without any action on the part of the parties
      hereto, disburse the partial liquidated damages applicable to any such Event
      to
      the Investors as contemplated herein until the earlier of (i) such time as
      all
      Escrowed Funds applicable to such Event have been disbursed to the Investors
      or
      (ii) such time as the Escrow Agent receives written notice from the Company
      and
      the Required Investors that the obligations of the Company under the Securities
      Purchase Agreement applicable to such Event have been adequately complied
      with.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4.
      Interpleader.
      Should
      any controversy arise among the parties hereto with respect
      to this Agreement or with respect to the right to receive the Escrowed Funds,
      the Escrow Agent shall have the right to consult counsel and/or to institute
      an
      appropriate interpleader
      action to determine the rights of the parties. The Escrow Agent is also
hereby
      authorized to institute an appropriate interpleader action upon receipt of
      a
      written letter of direction executed by the parties so directing the Escrow
      Agent. If the Escrow Agent
      is
      directed to institute an appropriate interpleader action, it shall institute
      such action
      not prior to thirty (30) days after receipt of such letter of direction and
      not
      later than
      sixty (60) days after such date. Any interpleader action instituted in
      accordance with this
      Section 4 shall be filed in any court of competent jurisdiction in Virginia,
      and
      the portion of the Escrowed Funds in dispute shall be deposited with the court
      and in such event the Escrow Agent shall be relieved of and discharged from
      any
      and all obligations and liabilities under and pursuant to this Agreement with
      respect to that portion of the Escrowed Funds.

    

    5.
      Exculpation
      and Indemnification of Escrow Agent and Investors.

     

    5.1
       The
      Escrow Agent and the Investors shall have no duties or responsibilities
other
      than those expressly set forth herein. The Escrow Agent and the Investors shall
      have no duty
      to
      enforce any obligation of any person to make any payment or delivery, or to
      direct
      or
      cause any payment or delivery to be made, or to enforce any obligation of any
      person
      to
      perform any other act. The Escrow Agent and the Investors shall be under no
      liability
      to the other parties hereto or anyone else, by reason of any failure, on the
      part of any
      party
      hereto or any maker, guarantor, endorser or other signatory of a document or
      any
      other
      person, to perform such person’s obligations under any such document. Except for
      amendments to this Agreement
      referenced below, and except for written instructions given to the Escrow Agent
      by the Company and the Required Investors relating to the Escrowed Funds, the
      Escrow Agent shall not be obligated to recognize any other
      agreement.

     

    5.2
       Neither
      the Escrow Agent nor the Investors shall be liable to the Company or
to
      anyone
      else for any action taken or omitted by it, or any action suffered by it to
      be
taken
      or
      omitted, in good faith and acting upon any order, notice, demand, certificate,
      opinion
      or advice of counsel (including counsel chosen by the Escrow Agent), statement,
      instrument,
      report, or other paper or document (not only as to its due execution and the
      validity
      and effectiveness of its provisions, but also as to the truth and acceptability
      of any
      information therein contained), which is believed by the Escrow Agent or the
      Investors to be
      genuine and to be signed or presented by the proper person or persons. The
      Escrow Agent
      shall not be bound by any of the terms thereof, unless evidenced by written
      notice delivered
      to the Escrow Agent signed by the proper party or parties and, if the duties
      or
rights
      of
      the Escrow Agent are affected, unless it shall give its prior written consent
      thereto.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.3
       Neither
      the Escrow Agent nor the Investors shall be responsible for the sufficiency
      or accuracy of the form, or of the execution, validity, value or genuineness
      of,
any
      document or property received, held or delivered to it hereunder, or of any
      signature or
      endorsement thereon, or for any lack of endorsement thereon, or for any
      description therein;
      nor shall the Escrow Agent or the Investors be responsible or liable to the
      Company or
      to
      anyone else in any respect on account of the identity, authority or rights,
      of
      the person
      executing or delivering or purporting to execute or deliver any document or
      property or this Agreement.
      The
      Escrow Agent shall have no responsibility with respect
      to the use or application of the Escrowed Funds pursuant to the provisions
      hereof.

     

    5.4
       The
      Escrow Agent shall have the right to assume, in the absence of written
notice
      to
      the contrary from the proper person or persons, that a fact or an event, by
      reason of
      which
      an action would or might be taken by the Escrow Agent, does not exist or has
      not
      occurred, without incurring liability to the Company or to anyone else for
      any
      action taken or omitted to be taken or omitted, in good faith and in the
      exercise of its own best judgment, in reliance upon such
      assumption.

     

    5.5 To
      the
      extent that the Escrow Agent becomes liable for the payment of taxes,
      including withholding taxes, in respect of income derived from the investment
      of
the
      Escrowed Funds, or any payment made hereunder, the Escrow Agent may pay such
      taxes;
      and the Escrow Agent may withhold from any payment to the Company (but not
      from
      any partial liquidated damages paid to Investors) of the Escrowed Funds
such
      amount as the Escrow Agent estimates to be sufficient to provide for the payment
      of such
      taxes not yet paid, and may use the sum withheld for that purpose. The Escrow
      Agent
      shall be indemnified and held harmless by the Company against any liability
      for
      taxes and for any penalties
      in respect of taxes, on such investment income or payments in the manner
provided
      in Section 5.6.

     

    5.6 The
      Escrow Agent will be indemnified and held harmless by the Company
      from and against all expenses, including all counsel fees and disbursements,
      or
loss
      suffered by the Escrow Agent in connection with any action, suit or proceedings
      involving
      any claim, or in connection with any claim or demand, which in any way,
directly
      or indirectly, arises out of or relates to this Agreement, the services of
      the
Escrow
      Agent hereunder, except for claims relating to gross negligence by Escrow Agent
      or
      breach
      of this Agreement by the Escrow Agent, or the monies or other property
      held by it hereunder. Promptly after the receipt of the Escrow Agent of notice
      of any demand or claim or the commencement of any action, suit or proceeding,
      the Escrow Agent shall, if a claim in respect thereof is to be made against
      the
      Escrowing Party,
      notify it thereof in writing, but the failure by the Escrow Agent to give such
      notice shall
      not
      relieve any such party from any liability which an Escrowing Party may have
      to
the
      Escrow Agent hereunder. Notwithstanding any obligation to make payments and
      deliveries hereunder, the Escrow Agent may retain and hold for such time as
      it
      deems necessary such amount of monies or property as it shall, from time to
      time, in its sole discretion, seem sufficient to indemnify itself for any such
      loss or expense and for any amounts due it under Section 8.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    5.7 For
      purposes hereof, the term “expense or loss” shall include all amounts
paid
      or
      payable to satisfy any claim, demand or liability, or in settlement of any
      claim, demand, action, suit or proceeding settled with the express written
      consent of the Escrow Agent, and all costs and expenses, including, but not
      limited to, counsel fees and disbursements, paid or incurred in investigating
      or
      defending against any such claim, demand, action, suit or
      proceeding.

     

    6. Termination
      of Agreement and Resignation of Escrow Agent.

     

    6.1 This
      Agreement
      shall
      terminate upon disbursement of all of the Escrowed Funds, provided that the
      rights of the Escrow Agent and the Investors and the obligations of the Company
      under Section 5 shall survive the termination hereof.

     

    6.2 The
      Escrow Agent may resign at any time and be discharged from its duties
      as
      Escrow Agent hereunder by giving the Company at least five (5) business days
      written
      notice thereof (the “Notice
      Period”).
      As
      soon as practicable after its resignation, the
      Escrow Agent shall, if it receives notice from the Company within the Notice
      Period, turn
      over
      to a successor escrow agent appointed by the Company all Escrowed Funds
(less
      such amount as the Escrow Agent is entitled to retain pursuant to Section 8)
      upon presentation
      of the document appointing the new escrow agent and its acceptance thereof.
      If
      no new
      agent is so appointed within the Notice Period, the Escrow Agent shall return
      the
      Escrowed Funds to the parties from which they were received without interest
      or
      deduction.

     

    7. Form
      of Payments by Escrow Agent.

     

    7.1 Any
      payments of the Escrowed Funds by the Escrow Agent pursuant to the
      terms
      of this Agreement
      shall be
      made by wire transfer unless directed to be made by check by the receiving
      party.

     

    7.2 All
      amounts referred to herein are expressed in United States Dollars and
all
      payments by the Escrow Agent shall be made in such dollars.

     

    8. Compensation. Escrow
      Agent shall be entitled to the following compensation from
      the
      Company (it being understood that no Investor shall be responsible to pay the
      Escrow Agent any compensation hereunder):

     

    8.1 Documentation
      Fee: The
      Company shall pay a documentation fee to the Escrow
      Agent of $2,000 receipt of which is hereby acknowledged by Escrow
      Agent.

     

    8.2 Interest:
      The
      Escrowed Funds shall accrue interest (the “Accrued
      Interest”)
      at the
      available rate obtained by the Escrow Agent with respect to the period during
      which such funds are held in the Escrow Account.
      Each
      time Escrowed Funds are disbursed to the Company in accordance with this
Agreement,
      the Company shall be paid Accrued Interest of 2.0% per annum on the aggregate
      amount of Escrowed Funds disbursed to the Company at such time and the balance
      of Accrued Interest, if any, shall be retained by the Escrow Agent.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    9. Notices. All
      notices, requests, demands, and other communications provided herein shall
      be in
      writing, shall be delivered by hand or by first-class mail, shall be
deemed
      given when received and shall be addressed to parties hereto at their respective
      addresses first set forth on Exhibit
      A
      hereto.

     

    10. Further
      Assurances. From
      time
      to time on and after the date hereof, the Company
      shall deliver or cause to be delivered to the Escrow Agent such further
documents
      and instruments and shall do and cause to be done such further acts as the
      Escrow Agent shall reasonably request (it being understood that the Escrow
      Agent
      shall have
      no
      obligation to make any such request) to carry out more effectively the
      provisions and
      purposes of this Agreement, to evidence compliance herewith or to assure
itself
      that it is protected in acting hereunder.

     

    11. Consent
      to Service of Process.
      The
      Company hereby irrevocably consents to the jurisdiction
      of the courts of the State of Virginia and of any Federal court located in
      such
state
      in
      connection with any action, suit or proceedings arising out of or relating
      to
      this Agreement
      or any action taken or omitted hereunder, and waives personal service
of
      any
      summons, complaint or other process and agrees that the service thereof may
      be
made
      by
      certified or registered mail directed to it at the address listed on
Exhibit
      A hereto.

     

    12. Miscellaneous.

     

    12.1 This
      Agreement shall be construed without regard to any presumption
      or other rule requiring construction against the party causing such instrument
      to be drafted. The terms “hereby,” “hereof,” “hereunder,” and any similar
terms,
      as
      used in this Agreement, refer to the Agreement in its entirety and
      not
      only to the particular portion of this Agreement
      where
      the term is used. The word “person” shall mean any natural person, partnership,
      corporation, government and any other form of business of legal entity. All
      words or terms used in this Agreement,
      regardless of the number or gender in which they were used, shall be deemed
      to
      include any other number and any other gender as the context may require. This
      Agreement
      shall
      not be admissible in evidence to construe the provisions of any prior
      agreement.

     

    12.2 This
      Agreement
      and the
      rights and obligations hereunder of the Company may not be assigned. This
Agreement
      and the
      rights and obligations hereunder of the Escrow Agent may be assigned by the
      Escrow Agent, with the prior consent
      of the Company and the Required Investors. This Agreement shall be binding
      upon
      and inure to
      the
      benefit of each party’s respective successors, heirs and permitted assigns. No
      other person
      shall acquire or have any rights under or by virtue of this Agreement. This
      Agreement
      may not
      be changed orally or modified, amended or supplemented without an express
      written agreement executed by the Escrow Agent, the Company and the Required
      Investors. This Agreement
      is
      intended to be for the sole benefit of the parties hereto and
      their
      respective successors, heirs and permitted assigns, and none of the provisions
      of this
      Agreement are intended to be, nor shall they be construed to be, for the
benefit
      of any third person.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    12.3 This
      Agreement shall be governed by, and construed in accordance
      with, the internal laws of the State of Virginia. The representations and
      warranties contained in this Agreement
      shall
      survive the execution and delivery hereof
      and any investigations made by any party. The headings in this
      Agreement
      are for
      purposes of reference only and shall not limit or otherwise affect any
of
      the
      terms thereof. 

     

    12.4 This
      Agreement may be executed in a number
      of
      counterparts, by facsimile, each of which shall be deemed to be an original
      as
of
      those
      whose signature appears thereon, and all of which shall together constitute
      one
and
      the
      same instrument. This Agreement shall become binding when one or more of the
      counterparts hereof, individually or taken together, are signed by all the
      parties.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Holdback Escrow
      Agreement on the day and year first above written.

     

    TRI-STATE
      TITLE & ESCROW, LLC

    

    

    By: 
      /s/
      Guy W
      Turner 

    
      

    

    Name:
      Guy
      W. Turner

    Title:
      President

    

    

    DISCOVERY
      TECHNOLOGIES, INC.

    

    

    By: 
      /s/
      Tao
      Li

    
      

    

    Name:
      Tao
      Li

    Title:
      Chairman of the Board, 

    President
      and Chief Executive Officer

    

    

    NAME
      OF INVESTOR:

     

    ___________________________________

     

    By:

    
      

    

    Name:
      

    Title:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

      EXHIBIT
        A

    

     

    PARTIES
      TO AGREEMENT

     

    Tri
      State Title & Escrow LLC 

    360
      Main
      Street, 1st
      Floor

    P.O.
      Box
      391

    Washington,
      VA 22747

    (800)
      984-2155

    Attention:
      Johnnie L. Zarecor

    

    Telephone:   
      (540)
      675-2155 

    Fax:               (540)
      675-2155

    Email:            escrow@tristatetitle.net

    

    Discovery
      Technologies, Inc.

    45
      Old
      Millstone Drive, Unit 6,

    East
      Windsor, NJ 08520

    Attn:
      Mr.
      Yinshing David To

    

    [Insert
      Investors]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Schedule
      1

     

    
      
        
        

      

      
        11

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