unrecognised emulation mode: cpu=cortex-m3

Hi,
I have attached the makefile that I use to compile compile my first 
simple code (main.c) for the stm32VL board. My operating system is OS X 
Maverics and I use Yagarto with STLINK. I attached the bash_profile file 
to show how the Yagarto toolchain is set. The main.c file gets operated 
first by the local Makefile (attached) which calls the Makefile.common.

When I run the make command I get the following error. Any ideas how I 
can fix this?

Demo Ruslan$ make
/Users/Ruslan/yagarto/yagarto-4.7.2/bin/arm-none-eabi-ld 
-T/Users/Ruslan/STM32-Template/stm32f100.ld -mthumb -mcpu=cortex-m3  -o 
Demo.elf startup_stm32f10x.o system_stm32f10x.o  main.o
/Users/Ruslan/yagarto/yagarto-4.7.2/bin/arm-none-eabi-ld: unrecognised 
emulation mode: cpu=cortex-m3
Supported emulations: armelf
make: *** [Demo.elf] Error 1