Document:

Exhibit
10.2

    

    REGISTRATION
RIGHTS AGREEMENT

    

    This
Registration Rights Agreement (the “Agreement”) is made and entered into as of
this 5th day of March, 2010 by and among Response Genetics, Inc., a Delaware
corporation (the “Company”), and the “Investors” named in that certain Purchase
Agreement by and among the Company and the Investors dated as of the date hereof
(the “Purchase Agreement”).  Capitalized terms used herein have
the respective meanings ascribed thereto in the Purchase Agreement unless
otherwise defined herein.

     

    The parties hereby agree as follows:

     

    1.      Certain
Definitions.

     

    As used
in this Agreement, the following terms shall have the following
meanings:

     

    “Affiliate”
means, with respect to any Person, any other Person which directly or indirectly
through one or more intermediaries controls, is controlled by, or is under
common control with, such Person. The term “control” (including
the terms “controlling,” “controlled by” and
“under common control
with”) as used with respect to any Person means the possession, direct or
indirect, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

     

    “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.

     

    “Common
Stock” means the Company’s common stock, par value $0.01 per share, and any
securities into which such shares may hereinafter be reclassified.

     

    “Investors” means the
Investors identified in the Purchase Agreement and any
Affiliate or permitted transferee of any Investor
who is a subsequent holder of any Registrable Securities.

     

    “Person”
means an individual, corporation, partnership, limited liability company, trust,
business trust, association, joint stock company, joint venture, sole
proprietorship, unincorporated organization, governmental authority or any other
form of entity not specifically listed herein.

     

    “Prospectus”
means (i) the prospectus included in any Registration Statement, as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by such
Registration Statement and by all other amendments and supplements to the
prospectus, including post-effective amendments and all material incorporated by
reference or deemed to be incorporated by reference in such prospectus, and (ii)
any “free writing prospectus” as defined in Rule 405 under the 1933 Act (as
defined below).

     

    “Register,”
“registered” and “registration” refer to a registration made by preparing and
filing a Registration Statement or similar document in compliance with the 1933
Act, and the declaration or ordering of effectiveness of such Registration
Statement or document.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Registrable
Securities” means (i) the Shares and (ii) shares of capital stock or any other
securities issued or issuable with respect to or in exchange for the Shares;
provided, that, a security shall cease to be a Registrable Security upon (A)
sale pursuant to a Registration Statement or Rule 144 under the 1933 Act, or (B)
such security becoming eligible for sale without restriction by the Investors
pursuant to Rule 144(b)(1).

     

    “Registration
Statement” means any registration statement of the Company filed under the 1933
Act that covers the resale of any of the Registrable Securities pursuant to the
provisions of this Agreement, amendments and supplements to such Registration
Statement, including post-effective amendments, all exhibits and all material
incorporated by reference in such Registration Statement.

     

    “Required
Investors” means the Investors holding a majority of the Registrable
Securities.

     

    “SEC”
means the U.S. Securities and Exchange Commission.

     

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

     

    “Underwritten
Offering” means an offering in which shares of Common Stock are sold to an
underwriter on a firm commitment basis for reoffering to the public or an
offering that is a “bought deal” with one or more investment banks.

     

    “1933
Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “1934
Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     

    2.      Registration.

     

    (a)         Registration
Statements.  Promptly following the closing of the purchase and sale of the securities
contemplated by the Purchase Agreement (the “Closing Date”) but no later
than forty-five (45) days after the Closing
Date (the “Filing Deadline”), the Company shall prepare and file with the
SEC one Registration Statement on Form S-3 (or, if Form S-3 is not then
available to the Company, on such form of registration statement as is then
available to effect a registration for resale of the Registrable Securities),
covering the resale of the Registrable Securities.  Subject to any SEC
comments, such Registration Statement shall include the plan of distribution
attached hereto as Exhibit A; provided, however, that the Investor shall not be named as an
“underwriter” in the Registration Statement without the Investor’s prior written consent.  Such
Registration Statement also shall cover, to the extent allowable under the 1933
Act and the rules promulgated thereunder (including Rule 416), such
indeterminate number of additional shares of Common Stock resulting from stock
splits, stock dividends or similar transactions with respect to the Registrable
Securities.  Such Registration Statement
shall not include any shares of Common
Stock or other securities for the account of any other holder without the prior written consent of the
Investor.  The Registration Statement (and each amendment or
supplement thereto, and each request for acceleration of effectiveness thereof)
shall be provided in accordance with Section 3(c) to the Investor and its counsel prior to its filing or
other submission.

     

    (b)         Piggyback
Rights.

     

    
      
         

      

      
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    (i)           If
at any time during which there are Registrable Securities outstanding the
Company proposes to register any of its common equity securities under the 1933
Act (other than a registration statement on Form S-8 or on Form S-4 (or any
similar successor forms thereto or in connection with (A) an employee stock
option, stock purchase or compensation plan or securities issued or issuable
pursuant to any such plan, or (B) a dividend reinvestment plan), whether for its
own account or for the account of one or more shareholders of the Company, and
the registration form to be used may be used for any registration of Registrable
Securities (a “Piggyback
Registration”), the Company shall give prompt written notice (in any
event within 20 days after its receipt of notice of any exercise of other demand
registration rights) to the Investor of its intention to effect such a
registration and shall include in such registration all such Registrable Shares
with respect to which the Company has received written requests for inclusion
therein within 15 days after the receipt of the Company’s notice.  The
Company may postpone or withdraw the filing or the effectiveness of a Piggyback
Registration at any time in its sole discretion.

    

    (ii)         If
a Piggyback Registration is an underwritten primary registration on behalf of
the Company, and the managing underwriters advise the Company in writing that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without
having an adverse effect on such offering, the Company shall include in such
registration (i) first, the securities the Company proposes to sell, (ii)
second, the Registrable Securities requested to be included therein by the
Investors, and (iii) third, other securities requested to be included in such
registration pro rata among the holders of such securities on the basis of the
number of shares requested to be registered by such holders or as such holders
may otherwise agree.

    

    (iii)        If
a Piggyback Registration is an underwritten secondary registration on behalf of
a holder of the Company’s securities other than Registrable Securities, and the
managing underwriters advise the Company in writing that in their opinion the
number of securities requested to be included in such registration exceeds the
number which can be sold in such offering without having an adverse effect on
such offering, the Company shall include in such registration (i) first, the
securities requested to be included therein by the holders requesting such
registration, (ii) second, the Registrable Securities requested to be included
therein by the Investor, and (iii) third, other securities requested to be
included in such registration pro rata among the holders of such securities on
the basis of the number of shares requested to be registered by such holders or
as such holders may otherwise agree.

    

    (iv)        If
any Piggyback Registration is an underwritten primary offering, the Company
shall have the right to select the managing underwriter or underwriters to
administer any such offering.

    

    (c)        
Expenses.  The Company will pay all expenses associated with each
registration, including all registration, filing and securities exchange listing
fees, all word processing, duplicating and printing fees and expenses, the
Company’s counsel and accounting fees and expenses, costs associated with
registration, filing, qualification and clearing the Registrable Securities for
sale under applicable state securities laws, The Nasdaq Capital Market listing
fees, fees of the Financial Industry Regulatory Authority, transfer taxes and
fees of transfer agents and registrars, reasonable fees and expenses of the
Investor’s counsel (not to exceed $25,000) and the Investor’s reasonable expenses in connection with
the registration, but excluding discounts, commissions, fees of underwriters,
selling brokers, dealer managers or similar securities industry professionals
with respect to the Registrable Securities being sold.

    
      
         

      

      
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    (d)         Effectiveness.

     

    (i)           The
Company shall use commercially reasonable efforts to have the Registration
Statement declared effective as soon as practicable after filing, and in any
event no later than the earlier of (i) five (5) Business Days after the SEC
shall have informed the Company that no review of the Registration Statement
will be made or that the SEC has no further comments on the Registration
Statement or (ii) the 120th day
after the date hereof.  The Company shall notify the Investors by
facsimile or e-mail as promptly as practicable, and in any event, within
twenty-four (24) hours, after any Registration Statement is declared effective
and shall simultaneously provide the Investors with copies of any related Prospectus
to be used in connection with the sale or other disposition of the securities
covered thereby.

     

    (ii)         For
not more than twenty (20) consecutive days or for a total of not more than
forty-five (45) days in any twelve (12) month period, the Company may suspend
the use of any Prospectus included in any Registration Statement contemplated by
this Section in the event that the Company determines in good faith that such
suspension is necessary to (A) delay the disclosure of material non-public
information concerning the Company, the disclosure of which at the time is not,
in the good faith opinion of the Company, in the best interests of the Company
or (B) amend or supplement the affected Registration Statement or the related
Prospectus so that such Registration Statement or Prospectus shall not include
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in the case of
the Prospectus in light of the circumstances under which they were made, not
misleading (an “Allowed Delay”); provided, that the Company shall promptly (a)
notify each Investor in writing of the
commencement of and the reasons for an Allowed Delay, but shall not (without the
prior written consent of an Investor)
disclose to the Investors any material
non-public information giving rise to an Allowed Delay, (b) advise the Investors in
writing to cease all sales under the Registration Statement until the end of the
Allowed Delay and (c) use commercially reasonable efforts to terminate an
Allowed Delay as promptly as practicable.  Upon disclosure of such
information or the termination of the condition giving rise to the Allowed
Delay, the Company shall provide prompt notice to the Investors and shall
promptly terminate any suspension of sales it has put into effect and shall take
such other actions to permit registered sales of Registrable Securities as
contemplated in this Agreement.

     

    (e)         Rule 415; Cutback.  If at
any time the SEC takes the position that the offering of some or all of the
Registrable Securities in a Registration Statement is not eligible to be made on
a delayed or continuous basis under the provisions of Rule 415 under the 1933
Act or requires any Investor to be named as an “underwriter”, the Company
shall use its commercially reasonable best efforts to persuade the SEC that the
offering contemplated by the Registration Statement is a valid secondary
offering and not an offering “by or on behalf of the issuer” as defined in Rule
415 and that none of the Investors is an
“underwriter”. The Investors shall have the right to participate or have their
counsel participate in any meetings or discussions with the SEC regarding the
SEC’s position and to comment or have their counsel comment on and approve any
written submission made to the SEC with respect thereto. No such written
submission shall be made to the SEC to which Investor Counsel reasonably
objects. In the event that, despite the Company’s commercially reasonable best
efforts and compliance with the terms of this Section 2(d), the SEC refuses to
alter its position, the Company shall (i) remove from the Registration Statement
such portion of the Registrable Securities (the “Cut Back Shares”) and/or (ii)
agree to such restrictions and limitations on the registration and resale of the
Registrable Securities as the SEC may require to assure the Company’s compliance
with the requirements of Rule 415 (collectively, the “SEC Restrictions”);
provided, however, that the Company shall not agree to name any Investor as an
“underwriter” in such Registration Statement without the prior written consent
of such Investor.  From and after the Restriction
Termination Date, all of the provisions of this Section 2 shall again be
applicable to the Cut Back Shares.

    
      
         

      

      
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    3.      Company
Obligations.  The Company will use reasonable best efforts to effect
the registration of the Registrable Securities in accordance with the terms
hereof, and pursuant thereto the Company will, as expeditiously as
possible:

     

    (a)         use
commercially reasonable efforts to cause such Registration Statement to become
effective and to remain continuously effective for a period that will terminate
upon the earlier of (i) the date on which all Registrable Securities covered by
such Registration Statement as amended from time to time, have been sold, (ii)
the date on which there are no longer any Registrable Securities outstanding or
(iii) three years from the date hereof (the “Effectiveness Period”) and advise
the Investors in writing when the Effectiveness Period has
expired;

     

    (b)         prepare
and file with the SEC such amendments and post-effective amendments to the
Registration Statement and the Prospectus as may be necessary to keep the
Registration Statement effective for the Effectiveness Period and to comply with
the provisions of the 1933 Act and the 1934 Act with respect to the distribution
of all of the Registrable Securities covered thereby;

     

    (c)         provide
copies to and permit counsel designated by the Investors to
review and comment on each Registration Statement and all amendments and
supplements thereto as far in advance as reasonably practicable but no fewer
than seven (7) days prior to their filing with the SEC and not file any document
to which Investor Counsel reasonably
objects;

     

    (d)         furnish
to the Investors and their legal counsel (i) promptly after the
same is prepared and publicly distributed, filed with the SEC, or received by
the Company (but not later than two (2) Business Days after the filing date,
receipt date or sending date, as the case may be) one (1) copy of any
Registration Statement and any amendment thereto, each preliminary prospectus
and Prospectus and each amendment or supplement thereto, and each letter written
by or on behalf of the Company to the SEC or the staff of the SEC, and each item
of correspondence from the SEC or the staff of the SEC, in each case relating to
such Registration Statement (other than any portion of any thereof which
contains information for which the Company has sought confidential treatment),
and (ii) such number of copies of a Prospectus, including a preliminary
prospectus, and all amendments and supplements thereto and such other documents
as each Investor may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by such
Investor that are covered by the related
Registration Statement;

    
      
         

      

      
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    (e)         use
commercially reasonable efforts to (i) prevent the issuance of any stop order or
other suspension of effectiveness and, (ii) if such order is issued, obtain the
withdrawal of any such order at the earliest possible moment;

     

    (f)          prior
to any public offering of Registrable Securities, use commercially reasonable
efforts to register or qualify or cooperate with the Investors,
underwriters and their counsel in connection with the registration or
qualification of such Registrable Securities for offer and sale under the
securities or blue sky laws of such jurisdictions requested by the Investors
and do any and all other commercially reasonable acts or things necessary or
advisable to enable the distribution in such jurisdictions of the Registrable
Securities covered by the Registration Statement;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (i) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3(f), (ii) subject itself to general taxation in any jurisdiction where
it would not otherwise be so subject but for this Section 3(f), or (iii) file a
general consent to service of process in any such
jurisdiction;

     

    (g)         use
commercially reasonable efforts to cause all Registrable Securities covered by a
Registration Statement to be listed on The Nasdaq Capital Market or each
securities exchange, interdealer quotation system or other market on which
similar securities issued by the Company are then listed;

     

    (h)         immediately
notify the Investor and each underwriter, at any time prior to the
end of the Effectiveness Period, upon discovery that, or upon the happening of
any event as a result of which, the Prospectus includes an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing, and promptly prepare, file with the SEC and furnish
to such holder a supplement to or an amendment of such Prospectus as may be
necessary so that such Prospectus shall not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing; and

     

    (i)          upon
request, furnish to the Investors copies of any and all transmittal letters or
other correspondence with the SEC or any other governmental agency or
self-regulatory body or other body having jurisdiction (including any domestic
or foreign securities exchange) relating to such offering of Registrable
Securities;

     

    (j)          provide
a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration
statement;

     

    
      
         

      

      
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    (k)         otherwise
use commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC under the 1933 Act and the 1934 Act, including, without
limitation, Rule 172 under the 1933 Act (if applicable), file any final
Prospectus, including any supplement or amendment thereof, with the SEC pursuant
to Rule 424 under the 1933 Act in order to ensure that it shall not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, promptly inform the
Investors in writing if, at any time during the
Effectiveness Period, the Company does not satisfy the conditions specified in
Rule 172 and, as a result thereof, the Investors are required to deliver a Prospectus in
connection with any disposition of Registrable Securities and take such other
actions as may be reasonably necessary to facilitate the registration of the
Registrable Securities hereunder; and make available to its security holders, as
soon as reasonably practicable, but not later than the Availability Date (as
defined below), an earnings statement covering a period of at least twelve (12)
months, beginning after the effective date of each Registration Statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the 1933
Act, including Rule 158 promulgated thereunder (for the purpose of this
subsection 3(i), “Availability Date” means the 45th day following the end of the
fourth fiscal quarter that includes the effective date of such Registration
Statement, except that, if such fourth fiscal quarter is the last quarter of the
Company’s fiscal year, “Availability Date” means the 90th day after the end of
such fourth fiscal quarter).

     

    (l)          With
a view to making available to the Investors
the benefits of Rule 144 (or its successor rule) and any other rule or
regulation of the SEC that may at any time permit the Investors to
sell shares of Common Stock to the public without registration, the Company
covenants and agrees to:  (i) make and keep public information
available, as those terms are understood and defined in Rule 144, until the
earlier of (A) six months after such date as all of the Registrable Securities
may be sold without restriction by the holders thereof pursuant to Rule 144
without regard to any volume limitation or current information requirements
thereunder or (B) such date as all of the Registrable Securities shall have been
resold; (ii) file with the SEC in a timely manner all reports and other
documents required of the Company under the 1934 Act; and (iii) furnish to each
Investor upon request, as long as such Investor owns any Registrable Securities, (A) a
written statement by the Company that it has complied with the reporting
requirements of the 1934 Act, (B) a copy of the Company’s most recent Annual
Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other
information as may be reasonably requested in order to avail such
Investor of any rule or regulation of the SEC that permits the selling of
any such Registrable Securities without registration.

    

    (m)        take
such other actions as are reasonably requested by the Investor in order to
expedite or facilitate the disposition of such Registrable
Securities

    

    4.      Due Diligence Review;
Information.  The Company shall make available, during normal
business hours, for inspection and review by the Investors,
underwriters, advisors to and representatives of the Investors
(who may or may not be affiliated with the Investors
and who are reasonably acceptable to the Company), all financial and other
records, and all other corporate documents and properties of the Company as may
be reasonably necessary for the purpose of such review, and cause the Company’s
officers, directors and employees, within a reasonable time period, to supply
all such information reasonably requested by the Investors or
any such representative, advisor or underwriter in connection with such
Registration Statement (including, without limitation, in response to all
questions and other inquiries reasonably made or submitted by any of them),
prior to and from time to time after the filing and effectiveness of the
Registration Statement for the sole purpose of enabling the Investors
and such representatives, advisors and underwriters and their respective
accountants and attorneys to conduct initial and ongoing due diligence with
respect to the Company and the accuracy of such Registration
Statement.

    
      
         

      

      
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    The Company shall not disclose material nonpublic
information to the Investors, or to advisors to or representatives of the
Investors, unless prior to disclosure of such information
the Company identifies such information as being material nonpublic information
and provides the Investors, such advisors and representatives with the
opportunity to accept or refuse to accept such material nonpublic information
for review and any Investor wishing to
obtain such information enters into an appropriate confidentiality agreement
with the Company with respect thereto.

     

    5.      Obligations
of the Investors.

     

    (a)         Each
Investor shall furnish in writing to the Company such information
regarding itself, the Registrable Securities held by it and the intended method
of disposition of the Registrable Securities held by it, as shall be reasonably
required to effect the registration of such Registrable Securities and shall
execute such documents in connection with such registration as the Company may
reasonably request.  At least five (5) Business Days prior to the
first anticipated filing date of any Registration Statement, the Company shall
notify the Investor of the information the
Company requires from such Investor if the
Investor elects to have any of the
Registrable Securities included in the Registration Statement.  The Investor shall provide such information to
the Company at least two (2) Business Days prior to the first anticipated filing
date of such Registration Statement if the Investor elects to have any of the Registrable
Securities included in the Registration Statement.

     

    (b)         Each
Investor, by its acceptance of the
Registrable Securities agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless such Investor has notified the Company in writing of
its election to exclude all of its Registrable Securities from such Registration
Statement.

     

    (c)         Each
Investor agrees that, upon receipt of any
notice from the Company of either (i) the commencement of an Allowed Delay
pursuant to Section 2(c)(ii) or (ii) the happening of an event pursuant to
Section 3(h) hereof, such Investor will
immediately discontinue disposition of Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities, until the Investor is advised by the Company in writing
that such dispositions may again be made.

     

    
      
         

      

      
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    6.      Indemnification.

     

    (a)         Indemnification
by the Company.  The Company shall indemnify and hold harmless each
Investor and its officers, directors, members, employees and agents, successors
and assigns, and each other person, if any,
who controls such Investor within the
meaning of the 1933 Act, against any losses, claims, damages, expenses or
liabilities (including reasonable attorneys’ fees and expenses) (collectively,
“Losses”), joint or several, to which they may become subject under the 1933
Act, the 1934 Act or otherwise, insofar as such Losses (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon: (i) any untrue statement or alleged untrue statement or
omission or alleged omission of any material fact contained in any Registration
Statement, any preliminary Prospectus or final Prospectus, or any amendment or
supplement thereof, or any free writing prospectus related thereto; (ii) any
blue sky application or other document executed by the Company specifically for
that purpose or based upon written information furnished by the Company filed in
any state or other jurisdiction in order to qualify any or all of the
Registrable Securities under the securities laws thereof (any such application,
document or information herein called a “Blue Sky Application”); (iii) the
omission or alleged omission to state in a Blue Sky Application a material fact
required to be stated therein or necessary to make the statements therein not
misleading; (iv) any violation by the Company or its agents of any rule or
regulation promulgated under the 1933 Act or the 1934 Act applicable to the
Company or its agents and relating to action or inaction required of the Company
in connection with such registration; or (v) any failure to register or qualify
the Registrable Securities included in any such Registration Statement in any
state where the Company or its agents has affirmatively undertaken or agreed in
writing that the Company will undertake such registration or qualification on
an
Investor’s behalf and will reimburse such
Investor, and each such officer,
director or member and each such controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such Loss, action or proceeding; provided, however, that the
Company will not be liable in any such case if and to the extent that any such
Loss arises out of or is based upon (1) an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with information
furnished by such Investor or any such
controlling person in writing specifically for use in such Registration
Statement or Prospectus or (2) the delivery by such
Investor of an outdated or defective Prospectus after the Company has
notified such
Investor in writing that the Company does not meet the conditions for use
of Rule 172 and that (A) as a result the Investor must deliver a Prospectus in connection
with any sales under the Registration Statement and (B) the Prospectus is
outdated or defective and prior to the receipt by such
Investor of an amended or supplemented Prospectus, but only if and to the
extent that following the receipt of the amended or supplemented Prospectus the
misstatement or omission giving rise to such loss, claim, damage or liability
would have been corrected.

     

    (b)         Indemnification
by the Investors. Each Investor shall, severally but not jointly, indemnify and
hold harmless, to the fullest extent permitted by applicable law, the Company,
its directors, officers, employees, stockholders and each person who controls
the Company (within the meaning of the 1933 Act) against any Losses (including
reasonable attorney fees) resulting from (x) such
Investor’s failure to deliver a Prospectus in connection with any sales
under the Registration after the Company has advised the Investor in writing that (A) the Company does not
meet the conditions for use of Rule 172 and (B) as a result the Investor must deliver a Prospectus in connection
with any sales under the Registration Statement or (y) any untrue statement of a
material fact or any omission of a material fact required to be stated in the
Registration Statement or Prospectus or preliminary Prospectus or amendment or
supplement thereto or necessary to make the statements therein not misleading,
to the extent, but only to the extent that such untrue statement or omission is
contained in (1) any information furnished in writing by such
Investor to the Company specifically for inclusion in such Registration
Statement or Prospectus or amendment or supplement thereto or (2) in an outdated
or defective Prospectus delivered by the Investor in connection with any sales under the
Registration Statement after the Company has notified such
Investor in writing that the Company does not meet the conditions for use
of Rule 172 and that (A) as a result the Investor must deliver a Prospectus in connection
with any sales under the Registration Statement and (B) the Prospectus is
outdated or defective and prior to the receipt by such
Investor of an amended or supplemented Prospectus, but only if and to the
extent that following the receipt of the amended or supplemented Prospectus the
misstatement or omission giving rise to such loss, claim, damage or liability
would have been corrected.  In no event shall the liability of an Investor
be greater in amount than the dollar amount of the proceeds (net of all expense
paid by such
Investor in connection with any claim relating to this Section 6 and the
amount of any damages such Investor has otherwise been required to pay by
reason of such untrue statement or omission) received by such
Investor upon the sale of the Registrable Securities included in the
Registration Statement giving rise to such indemnification
obligation.

    
      
         

      

      
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    (c)         Conduct
of Indemnification Proceedings.  Any person entitled to
indemnification hereunder shall (i) give prompt notice to the indemnifying party
of any claim with respect to which it seeks indemnification and (ii) permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided that any person entitled to
indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such
counsel shall be at the expense of such person unless (a) the indemnifying party
has agreed to pay such fees or expenses, or (b) the indemnifying party shall
have failed to assume the defense of such claim within a reasonable period of
time and employ counsel reasonably satisfactory to such person or (c) in the
reasonable judgment of any such person, based upon written advice of its
counsel, a conflict of interest exists between such person and the indemnifying
party with respect to such claims (in which case, if the person notifies the
indemnifying party in writing that such person elects to employ separate counsel
at the expense of the indemnifying party, the indemnifying party shall not have
the right to assume the defense of such claim on behalf of such person); and
provided, further, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall
materially adversely affect the indemnifying party in the defense of any such
claim or litigation.  It is understood that the indemnifying party
shall not, in connection with any proceeding in the same jurisdiction, be liable
for fees or expenses of more than one separate firm of attorneys at any time for
all such indemnified parties.  No indemnifying party will, except with
the consent of the indemnified party, consent to entry of any judgment or enter
into any settlement that does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect of such claim or litigation.  No indemnifying
party shall be liable for any settlement of any proceeding effected without its
written consent, which consent shall not be unreasonably withheld, but if
settled with such consent, or if there be a final judgment for the plaintiff,
the indemnifying party shall indemnify and hold harmless such indemnified party
from and against any loss or liability by reason of such settlement or
judgment.

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

    

    (d)         Contribution.  If
for any reason the indemnification provided for in the preceding paragraphs (a)
and (b) is unavailable to an indemnified party or insufficient to hold it
harmless, other than as expressly specified therein, then the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a
result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnified party and the
indemnifying party, as well as any other relevant equitable
considerations.  No person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be entitled to
contribution from any person not guilty of such fraudulent
misrepresentation.  In no event shall the contribution obligation of a
holder of Registrable Securities be greater in amount than the dollar amount of
the proceeds (net of all expenses paid by such holder in connection with any
claim relating to this Section 6 and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission) received by it upon the sale of the
Registrable Securities giving rise to such contribution obligation.

     

    (e)         The
indemnification provided for under this Section 6 shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party and shall survive the transfer of securities.

     

    (f)          The
provisions of this Section 6 shall be in
addition to any other rights to indemnification or contribution which an
indemnified party may have pursuant to law, equity, contract or
otherwise.

     

    7.      Miscellaneous.

     

    (a)         Amendments
and Waivers.  This Agreement may be amended only by a writing signed
by the Company and the Required Investors; provided, however, that no such
amendment which adversely affects an Investor shall be binding on such Investor
without its written consent.  The Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company shall have obtained the written consent to such amendment,
action or omission to act, of the Required Investors; provided, however, that no
such amendment, action or omission which disproportionately and materially
adversely affects an Investor shall be binding on such Investor without its
written consent.

     

    (b)         Notices.   All
notices and other communications provided for or permitted hereunder shall be
made as set forth in Section 9.4 of the Purchase Agreement.

     

    (c)         Assignments
and Transfers by Investors.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the Investors and their respective successors and
assigns.  An Investor may
transfer or assign, in whole or from time to time in part, to one or more
persons its rights hereunder in connection with the transfer of Registrable
Securities by such Investor to such person,
provided that such Investor complies with all laws applicable
thereto and provides written notice of assignment to the Company promptly after
such assignment is effected.

     

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    (d)         Assignments
and Transfers by the Company.  This Agreement may not be assigned by
the Company (whether by operation of law or otherwise) without the prior written
consent of the Required Investors, provided, however, that the Company may assign
its rights and delegate its duties hereunder to any surviving or successor
corporation in connection with a merger or consolidation of the Company with
another corporation, or a sale, transfer or other disposition of all or
substantially all of the Company’s assets to another corporation, without the
prior written consent of the Required Investors,
after notice duly given by the Company to each
Investor.

     

    (e)         Benefits
of the Agreement.  The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective permitted successors
and assigns of the parties.  Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

     

    (f)          Counterparts;
Faxes.  This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.  This Agreement may also be
executed and transmitted via facsimile, or by portable document format via
electronic mail, which shall be deemed an original.

     

    (g)         Titles
and Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     

    (h)         Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof but shall be interpreted as if it were written so as to be
enforceable to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.  To the
extent permitted by applicable law, the parties hereby waive any provision of
law which renders any provisions hereof prohibited or unenforceable in any
respect.

     

    (i)          Further
Assurances.  The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be
required to carry out the transactions contemplated hereby and to evidence the
fulfillment of the agreements herein contained.

     

    (j)          Entire
Agreement.  This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein.  This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

     

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

    (k)         Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Agreement
shall be governed by, and construed in accordance with, the internal laws of the
State of New York without regard to the choice of law principles
thereof.  Each of the parties hereto 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 Agreement 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
Agreement.  Each of the parties hereto 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.  Each party hereto 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
PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

     

    (l)           Specific
Performance.  Damages in the event of breach of this Agreement by a
party hereto may be difficult, if not impossible, to ascertain, and it is
therefore agreed that each such Person, in addition to and without limiting any
other remedy or right it may have, will have the right to an injunction or other
equitable relief in any court of competent jurisdiction, enjoining any such
breach, and enforcing specifically the terms and provisions hereof, and each of
the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction
or other equitable relief.  The existence of this right will not
preclude any such Person from pursuing any other rights and remedies at law or
in equity which such Person may have.

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties have
executed this Agreement or caused their duly authorized officers to execute this
Agreement as of the date first above written.

     

    
      
        
          
            
              	
                      The
      Company:

                    	
                      RESPONSE
      GENETICS, INC.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Kathleen Danenberg

                    
	 
      	
                      Name:  Kathleen
      Danenberg

                    
	 
      	
                      Title:    
      President and Chief Executive
Officer

                    

            

          

        

      

    

     

    
      
         

      

      
        - 14
-

        
          

        

      

      
         

      

    

    

    
      
        	
                The
      Investors:

              	
                LANSDOWNE
      UK STRATEGIC INVESTMENT MASTER FUND LIMITED

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Stuart Roden

              
	 
      	
                Name:   Stuart
      Roden

              
	 
      	
                Title:   Director,
      Lansdowne Partners Limited

              
	 
      	
                being
      the General Partner of

              
	 
      	
                Lansdowne
      Partners Limited Partnership

              
	 
      	
                the
      duly authorized agent for

              
	 
      	
                Lansdowne
      UK Strategic Investment Master Fund

              
	 
      	
                Limited

              
	 
      	 
      
	 
      	
                SRB
      GREEENWAY OPPORTUNITY FUND, Q.P., L.P.

              
	 
      	 
      	 
      
	 
      	
                By:  SRB
      Management, L.P., General Partner

              
	 
      	 
      
	 
      	
                By:  BC
      Advisors, L.L.C., General Partner

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Steven R. Becker

              
	 
      	
                Name: 
      Steven R. Becker, Member

              
	 
      	 
      	 
      
	 
      	
                SRB
      GREEENWAY OPPORTUNITY FUND, L.P.

              
	 
      	 
      
	 
      	
                By:
      SRB Management, L.P., General Partner

              
	 
      	 
      
	 
      	
                By:
      BC Advisors, L.L.C., General Partner

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Steven R. Becker

              
	 
      	
                Name: 
      Steven R. Becker, Member

              
	 
      	 
      	 
      
	 
      	
                PARAGON
      ASSOCIATES JV

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Scot Palmer

              
	 
      	
                Name:   Scott
      Palmer

              
	 
      	
                Title:   Analyst

              

      

    

     

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

    

    
      
        	
                By:

              	
                /s/ Steven Becker

              
	 
      	
                Steven
      Becker

              
	 
      	 
      
	
                By:

              	
                /s/ Matthew Drapkin

              
	 
      	
                Mathew
      Drapkin

              

      

    

     

    
      
         

      

      
        - 16
-

        
          

        

      

      
         

      

    

    Exhibit
A

    

    Plan
of Distribution

    

    The selling stockholders, which as used
herein includes donees, pledgees, transferees or other successors-in-interest
selling shares of common stock or interests in shares of common stock received
after the date of this prospectus from a selling stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell,
transfer or otherwise dispose of any or all of their shares of common stock or
interests in shares of common stock on any stock exchange, market or trading
facility on which the shares are traded or in private
transactions.  These dispositions may be at fixed prices, at
prevailing market prices at the time of sale, at prices related to the
prevailing market price, at varying prices determined at the time of sale, or at
negotiated prices.

    

    The selling stockholders may use any
one or more of the following methods when disposing of shares or interests
therein:

    

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

    

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

    

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

    

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

    

    - public or privately negotiated
transactions;

    

    - on the
Nasdaq Capital Market (or through the facilities of any national securities
exchange or U.S. inter-dealer quotation system of a registered national
securities association, on which the shares are then listed, admitted to
unlisted trading privileges or included for quotation);

    

    - through underwriters, brokers or
dealers (who may act as agents or principals) or directly to one or more
purchasers;

    

    - to
cover short sales effected after the date the registration statement of which
this Prospectus is a part is declared effective by the SEC;

    

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

    

    - broker-dealers may agree with the
selling stockholders to sell a specified number of such shares at a stipulated
price per share; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
       - a
combination of any such methods of sale; and

    

    

    
      any other
method permitted pursuant to applicable law.

    

     

    In
connection with distributions of the shares or otherwise, the selling
stockholders may:

     

    
      	
              ·

            	
              enter
      into hedging transactions with broker-dealers or other financial
      institutions, which may in turn engage in short sales of the shares in the
      course of hedging the positions they
assume;

            

    

    
      	
              ·

            	
              sell
      the shares short and redeliver the shares to close out such short
      positions;

            

    

    
      	
              ·

            	
              enter
      into option or other transactions with broker-dealers or other financial
      institutions which require the delivery to them of shares offered by this
      prospectus, which they may in turn resell;
and

            

    

    
      	
              ·

            	
              pledge
      shares to a broker-dealer or other financial institution, which, upon a
      default, they may in turn resell.

            

    

    

    The selling stockholders may, from time
to time, pledge or grant a security interest in some or all of the shares of
common stock owned by them and, if they default in the performance of their
secured obligations, the pledgees or secured parties may offer and sell the
shares of common stock, from time to time, under this prospectus, or under an
amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act amending the list of selling stockholders to include the
pledgee, transferee or other successors in interest as selling stockholders
under this prospectus.  The selling stockholders also may transfer the
shares of common stock in other circumstances, in which case the transferees,
pledgees or other successors in interest will be the selling beneficial owners
for purposes of this prospectus.

    

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

    

    The aggregate proceeds to the selling
stockholders from the sale of the common stock offered by them will be the
purchase price of the common stock less discounts or commissions, if
any.  Each of the selling stockholders reserves the right to accept
and, together with their agents from time to time, to reject, in whole or in
part, any proposed purchase of common stock to be made directly or through
agents.  We will not receive any of the proceeds from this
offering.

    

    The selling stockholders also may
resell all or a portion of the shares in open market transactions in reliance
upon Rule 144 under the Securities Act of 1933, provided that they meet the
criteria and conform to the requirements of that rule.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The selling stockholders and any
underwriters, broker-dealers or agents that participate in the sale of the
common stock or interests therein may be "underwriters" within the meaning of
Section 2(11) of the Securities Act.  Any discounts, commissions,
concessions or profit they earn on any resale of the shares may be underwriting
discounts and commissions under the Securities Act.  Selling
stockholders who are "underwriters" within the meaning of Section 2(11) of the
Securities Act will be subject to the prospectus delivery requirements of the
Securities Act.

    

    To the extent required, the shares of
our common stock to be sold, the names of the selling stockholders, the
respective purchase prices and public offering prices, the names of any agents,
dealer or underwriter, any applicable commissions or discounts with respect to a
particular offer will be set forth in an accompanying prospectus supplement or,
if appropriate, a post-effective amendment to the registration statement that
includes this prospectus.

    

    In order to comply with the securities
laws of some states, if applicable, the common stock may be sold in these
jurisdictions only through registered or licensed brokers or
dealers.  In addition, in some states the common stock may not be sold
unless it has been registered or qualified for sale or an exemption from
registration or qualification requirements is available and is complied
with.

    

    We have advised the selling
stockholders that the anti-manipulation rules of Regulation M under the Exchange
Act may apply to sales of shares in the market and to the activities of the
selling stockholders and their affiliates.  In addition, to the extent
applicable we will make copies of this prospectus (as it may be supplemented or
amended from time to time) available to the selling stockholders for the purpose
of satisfying the prospectus delivery requirements of the Securities
Act.  The selling stockholders may indemnify any broker-dealer that
participates in transactions involving the sale of the shares against certain
liabilities, including liabilities arising under the Securities
Act.

    

    We have agreed to indemnify the selling
stockholders against liabilities, including liabilities under the Securities Act
and state securities laws, relating to the registration of the shares offered by
this prospectus.

    

    We have agreed with the selling
stockholders to keep the registration statement of which this prospectus
constitutes a part effective until the earlier of (1) such time as all of the
shares covered by this prospectus have been disposed of pursuant to and in
accordance with the registration statement or (2) the date on which the shares
may be sold without restriction pursuant to Rule 144 of the Securities Act
without regard to any volume limitation requirements
thereunder.Exhibit
10.13

     

    CONFIDENTIAL
TREATMENT

    REQUESTED
PURSUANT TO RULE 406

     

    Certain
portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 under the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.

     

    PIAGGIO
AMERICA, INC.

    1515
Perimeter Road

    West
Palm Beach, FL 33406

    P180
Avanti II Aircraft Purchase Agreement

     

    Date:  November
10, 2005

     

    
      
        
          
            	
                    BUYER
      Name:

                  	
                    Avantair,
      Inc.

                  
	
                    Address/Registered
      Office:

                  	
                    27
      Wright Way, Fairfield, New Jersey 07004

                  
	
                    Aircraft
      Make and Model:

                  	
                    Piaggio
      P-l 80 Avanti II

                  
	
                    Aircraft
      Serial Number:

                  	
                    To
      Be Assigned.  Aircraft will be delivered according to the
      following schedule:  Twelve (12) aircraft in 2008; Twelve (12)
      aircraft in 2009; and Twelve (12) aircraft in 2010.  Place of
      Delivery:  To Be
Assigned.

                  

          

        

      

    

     

    BUYER
submits its order for the purchase of thirty-six (36) Aircraft described herein
(Avantair #44 through Avantair #79).  BUYER agrees to pay for said
Aircraft the Sum for each as follows:

     

    Standard
Aircraft as described herein (see Exhibit A-1 for specific part
numbers).  All aircraft described herein to be the Piaggio P.180
Avanti II aircraft, outfitted consistent with the Piaggio Aero Industries
S.p.A Piaggio P.180 Avanti II Specification and Description, the existing
Avantair specification and the P.l80 Avanti IIAvantair Interior
Description.  Should BUYER desire any features not included in the
P-l80 Avanti II Avantair Interior Description, PIAGGIO will work with BUYER
to determine whether we can accommodate such changes within our established
completion facility schedule.  If so, the Total Purchase Price and
Outfitted Delivery Date will be adjusted appropriately via a Work Change
Request, 50% of the value of which will be due a the time of approval of the
Work Change Request by BUYER.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Aircraft

                                      	
                                        12 Aircraft

                                      	
                                        12 Aircraft

                                      	
                                        12 Aircraft

                                      
	 
      	 
      	 
      	 
      
	
                                        Scheduled
      Delivery Date

                                      	
                                        2008

                                      	
                                        2009

                                      	
                                        2010

                                      
	
                                        Scheduled
      Price in 2006 US Dollars

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Total
      A/C Purchase Price in 2006 US Dollars

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Sales
      Tax (If Applicable)  TBD

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Total
      Balance Dub in 2006 US Dollars

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Deposit
      Per Aircraft Due At Purchase Agreement Execution (Not Later Than December
      31, 2005)

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Progress
      Payment Per Aircraft Due June 29, 2007

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Progress
      Payment Per Aircraft Due June 30, 2008

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Progress
      Payment Per Aircraft Due June 30, 2009

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Progress
      Payment Per Aircraft Due at Green C of A

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      
	
                                        Balance
      Due on Delivery In 2006 US Dollars

                                      	
                                        [***]

                                      	
                                        [***]

                                      	
                                        [***]

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    NOTE:
ALL PRICES LISTED ABOVE ARE SUBJECT TO ESCALATION AS PROVIDED IN EXHIBIT
B

     

    
      [***]
Confidential information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a confidential treatment
request.

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      Exhibits:              Exhibit A
– Aircraft Specification Description, and Performance

    

    
      Exhibit B
– Aircraft Price Escalation Formula

    

    
      Exhibit C
– Piaggio Aero Industries New Aircraft Warranty

    

    
      Exhibit D
– Special Terms and Conditions

    

    
      Exhibit E
– Optional Equipment Modifications

    

     

    THE
UNDERSIGNED HAS READ THE TERMS AND CONDITIONS SET OUT IN THIS AGREEMENT,
INCLUDING ALL ATTACHED EXHIBITS, AND AGREES THAT SUCH TERMS AND CONDITIONS ARE
INCLUDED IN AND ARE MADE A PART OF THIS PURCHASE AGREEMENT.

     

    
      
        
          	
                  Accepted
      by SELLER:

                	 
      	
                  Accepted
      by BUYER:

                
	
                  PIAGGIO
      AMERICA, INC.

                	 
      	
                  AVANTAIR,
      INC.

                
	
                  1515
      Perimeter Road

                	 
      	
                  27
      Wright Way

                
	
                  West
      Palm Beach, FL 33406

                	 
      	
                  Fairfield,
      NJ 007004

                
	 
      	 
      	 
      	 
      	 
      
	
                  By:

                	
                    /s/ James L. Holcombe

                	 
      	
                  By:

                	
                  /s/ Alfred A.
  Rapetti

                

        

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            Print Name: 

                          	
                            James L. Holcombe

                          	 
      	
                            Print Name: 

                          	
                              Alfred A.
Rapetti

                          

                  

                

              

            

          

        

      

    

    

    
      
        
          
            	
                    Title:

                  	
                    EVP Sales & Marketing /
    COO

                  	 
      	
                    Title:

                  	
                    Executive Chairman

                  
	 
      	 
      	 
      	 
      	 
      
	
                    Date:

                  	
                    11/10/05

                  	 
      	
                    Date:

                  	
                    11/10/05

                  

          

        

      

    

     

    [***] Confidential information has
been omitted and filed separately with the Securities and Exchange Commission
pursuant to a confidential treatment request.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.           Defined Terms.

     

    Terms
that are not defined in the sections that follow have the meanings specified on
the first page of this Agreement.

     

    2.           BUYER Standard
Specifications.

     

    BUYER
must specify all standard options and modifications, including modifications to
the exterior finishing, interior furnishings and avionics of the P-180
Avanti II aircraft being sold pursuant to this Agreement (the “Aircraft”)
by submitting its request no later than nine months before the Scheduled
Delivery Date (the “Options Closing Date”).  Any such standard
specifications will result in purchase price adjustment in accordance with
SELLER’S Optional Equipment Price List specified in Exhibit A (the
“Optional Equipment Price List”) valid at the Options Closing Date.

     

    All such
price adjustments will be included in the Balance Due on
Delivery.  SELLER shall be entitled to, and BUYER agrees to pay, the
amount of $[***] for each
day of delay thereafter in providing those standard
specifications.  In addition, in the event such delay exceeds thirty
(30) days, SELLER shall have the right to reposition the Aircraft in its
production cycle and adjust the Scheduled Delivery Date accordingly, and/or to
make choices on BUYER’s behalf with respect to such optional equipment and
modifications, in each case in its sole discretion upon written notice to
BUYER.

     

    3.           Non-Standard
Specifications.

     

    In
addition to the standard specifications, BUYER may request additional
non-standard optional equipment or modifications, from the Optional Equipment
List identified in Exhibit A hereto (the “Optional Equipment List”) or
otherwise.  BUYER must submit its final order for all such requests by
the Options Closing Date.  If the installation of BUYER’S Options
would increase the time required to complete the Aircraft, the Scheduled
Delivery Date will be adjusted accordingly.

     

    For
non-standard specifications that are on the Optional Equipment List, there will
be a purchase price adjustment in the amount specified on the Optional Equipment
Price List on the Options Closing Date.  For any other non-standard
specifications, SELLER will provide BUYER an estimate of the additional cost and
there will be a purchase price adjustment in this estimated amount.

     

    SELLER
agrees to fulfill all requests for non-standard specifications that are on the
Optional Equipment List and that are submitted by the Options Closing
Date.  For all other requests, SELLER will use commercially reasonable
efforts to fulfill such request in a reasonably timely way, subject to time,
availability and effect on certification, but SELLER does not guarantee
fulfillment of such requests by the Scheduled Delivery Date or at
all.

     

    [***] Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a
confidential treatment request.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.           Delivery

     

    Delivery
of the Aircraft and transfer of title will take place at the Place of
Delivery.  At the time of delivery, BUYER or its representative shall
execute a receipt reasonably acceptable to SELLER acknowledging delivery of the
Aircraft.

     

    5.           Title
and Risk of Loss.

     

    Upon
receipt of the Balance Due on Delivery, SELLER shall transfer clear and
unencumbered title to the Aircraft by means of a Bill of Sale.  Upon
delivery of such Bill of Sale, the risk of loss or damage to the Aircraft shall
pass from SELLER to BUYER.

     

    6.           Airworthiness.

     

    SELLER
shall furnish BUYER with a standard airworthiness export certificate issued by
the Federal Aviation Administration which certifies that, as of the date of such
issuance, the Aircraft has been inspected and has been found to conform in all
respects with such certificate and the applicable Type Certificate, and to be in
the condition for safe operation.

     

    7.           Publications.

     

    SELLER
shall furnish BUYER with one copy each or the applicable documentation as set
forth in Exhibit A for each Aircraft, and for a period of one (1) year
after delivery of the Aircraft shall, at its expense, furnish BUYER with any
revisions thereto.

     

    8.           Limited
Warranties.

     

    THERE ARE
NO EXPRESS OR IMPLIED WARRANTIES EXCEPT FOR THE PROVISIONS SET FORTH IN
EXHIBIT C.  THERE ARE NO WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR OTHERWISE. THE EXTENT OF SELLER’S LIABILITY UNDER
THIS WARRANTY IS LIMITED TO THE REPAIR OR REPLACEMENT OF DEFECTIVE ITEMS IN THE
MANNER DESCRIBED IN EXHIBIT C.  EXCEPT AS PROVIDED IN SECTIONS 17
AND 21 OF THIS AGREEMENT, TO THE EXTENT PERMITTED BY APPLICABLE LAW ALL OTHER
REMEDIES AGAINST SELLER FOR DAMAGES, INCLUDING FOR CONSEQUENTIAL, INCIDENTAL OR
OTHER DAMAGES ARISING OUT OF THE SALE, USE OR OPERATION OF THE AIRCRAFT ARE
EXCLUDED.

     

    9.           Training.

     

    SELLER or
its designee shall, within one year before or after the delivery of each
Aircraft, furnish ground school instruction for 2 (two) pilots trainee per
aircraft and flight instruction for the 2 (two) pilots trainee and ground school
instruction for one (1) maintenance trainee per aircraft.

     

    All
training will be provided at Flight Safety International, West Palm Beach, FL
unless otherwise specified by SELLER.  For the pilot trainee, the type
and amount of training shall be commensurate with the requirements for aircraft
with the same FAA type rating as the Aircraft.  SELLER shall bear all
costs of the instruction and training mentioned herein with the exception of the
costs for trainees travel, subsistence and lodging and the cost of operating the
Aircraft during the training period, all of which will be borne solely by
BUYER.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.         Payments.

     

    The
Deposit Due at Purchase Agreement Execution is due in full upon BUYER’S
execution of this Agreement. Progress Payments Due on June 29, 2007 and at
Green Certificate of Airworthiness (CofA) are due in full on the due
date.  The Balance Due on Delivery is due in full upon delivery,
inspection and acceptance of the Aircraft.  Late payments will be
subject to accrual of interest at the 12-month LIBOR rate (in US$) reported in
the Wall Street Journal on the date of the due payment plus two percent (2%) per
annum (the “Default Rate”).  Late payments will also entitle SELLER to
invoke the remedies provided in paragraph 21.  For the Balance Due on
Delivery, the Default Rate will begin to accrue on the 7th day after the
Aircraft has been tendered or re-tendered to BUYER for
delivery.  Payments should be made via wire transfer to Piaggio
America, Inc., Account [***].

     

    11.         Aircraft
Inspection.

     

    BUYER
shall inspect the Aircraft promptly after receipt of notice that it is ready for
delivery, including an acceptance flight if desired.  If BUYER finds
the Aircraft reasonably acceptable on this inspection or on any re-inspection,
BUYER shall promptly pay the Balance Due on Delivery and take title to the
Aircraft as contemplated hereby.

     

    If BUYER
declines to accept the Aircraft, BUYER shall immediately give SELLER notice of
the specific reasons for such refusal in writing.

     

    BUYER
shall promptly re-inspect the Aircraft after receipt of notice from SELLER that
all defects have been corrected.  Following this re-inspection, BUYER
shall pay the Balance Due on Delivery or give its notice of reasons for refusal
as provided above.

     

    12.         Liability During Training
Program.

     

    BUYER
shall indemnify and hold SELLER harmless from all causes or claims for damages,
including personal injury or death, sustained by BUYER or BUYER’S agents or
employees or any third party during the training program provided for
herein.

     

    13.         Taxes.

     

    At the
time of delivery of the Aircraft, BUYER shall remit to SELLER any amounts due
under the laws of the place of delivery for sales or use tax or any other tax
which SELLER is required to collect from BUYER and remit to the taxing
jurisdiction of the Place of Delivery.  BUYER shall indemnify and hold
SELLER harmless for all sales or use taxes or any other taxes applicable to the
sale, delivery and use of the Aircraft which were not collected by SELLER at the
time of delivery.  SELLER shall comply with the taxing regulations of
the Place of Delivery regarding any amounts so collected for taxes from BUYER
and hold BUYER harmless therefor.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    14.         Import Licenses.

     

    The sole
responsibility far obtaining any required import licenses or any other related
license or documentation shall rest with BUYER.

     

    15.         Aircraft
Registration.

     

    It is
BUYER’S sole responsibility to obtain and to communicate to SELLER any special
Registration Number of the Aircraft within four weeks from the signature of this
contract.

     

    16.         Damage
or Destruction of Aircraft

     

    SELLER
shall have no liability to BUYER hereunder due to its failure to perform
hereunder resulting from damage to or destruction of the Aircraft due to
incidents beyond the control of SELLER including those listed in
Section.

     

    17.         Delay in
Delivery.

     

    SELLER
shall not be responsible for failure or delay in the performance of this
Agreement when the failure or delay is due to causes beyond the reasonable
control of SELLER and/or without its fault or negligence.  Such causes
include but are not limited to:  acts of God; Force Majeure; any act
of government or delay in transportation not caused by or attributable to acts
or omissions by SELLER; strikes or labor trouble causing cessation, slow-down or
interruption of work; or the inability after due and timely diligence of SELLER
to procure materials, accessories, equipment or parts.  The occurrence
of such a cause of SELLER’S failure or delay shall extend the Scheduled Delivery
Date by the period of time required for SELLER to correct the cause of the
failure or delay by using commercially reasonable efforts to eliminate such
cause or to overcome the effect thereof, provided that such delay does not
exceed one hundred eighty (180) calendar days.  If a delay is
anticipated by SELLER to exceed 180 days, SELLER shall give prompt written
notice to BUYER and BUYER may terminate this Agreement pursuant to
Section 21 below, provided that such election to terminate is exercised
within thirty (30) days of BUYER’S receipt of such notice from
SELLER.  SELLER shall notify BUYER of the expected actual completion
date of the aircraft in writing four (4) months prior to the beginning of the
specified delivery month set forth on the first page of this
Agreement.  SELLER shall be deemed to have timely delivered an
Aircraft if the Aircraft is delivered to BUYER with all agreed specifications
and Optional Equipment within thirty-days of the Scheduled Delivery
Date.  If SELLER fails to deliver the aircraft within such 30 days due
to SELLER’S fault or negligence, SELLER shall be liable to BUYER for the delay
and a penalty of $[***]
per day shall accrue until the date of actual delivery or for one hundred and
eighty (180) days, whichever comes first SELLER shall provide complete payment
of any penalties to BUYER at the time of delivery of the late
Aircraft.

     

    18.         Changes.

     

    Upon
written notice to BUYER, SELLER may change the General Specifications identified
in Exhibit A where SELLER deems such change to be necessary or appropriate,
provided such change would not increase the price of the Aircraft, cause a delay
in delivery, result in a substantial increase in the specified weight of the
Aircraft, substantially affect the Aircraft’s performance or result in a
substantial reduction in the inter-changeability of the Aircraft’s
parts.  Except for Optional items specified in Exhibit A which
may be installed during manufacture without disruption of SELLER’S production
schedule and except as otherwise provided for herein, any other change requested
by BUYER may be made only after delivery of the Aircraft and shall be handled as
transactions outside the scope of this Agreement.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    19.         Title and Risk of
Loss.

     

    Title and
risk of loss shall remain in SELLER until delivery of the Aircraft at which time
title and risk of loss shall pass to BUYER.  BUYER covenants to have
appropriate insurance arrangements made at the time of delivery.

     

    20.         Assignment

     

    BUYER’S
rights hereunder may not be assigned and any purported assignment shall be
without force or legal effect unless SELLER has provided BUYER written
approval.  SELLER may assign its rights hereunder upon written notice
to BUYER.

     

    21.         Termination
and Liquidated Damages.

     

    If
(a) SELLER fails to tender delivery of any Aircraft within [***] days of the Scheduled
Delivery Date (after giving effect to any extension thereof and/or any revised
Scheduled Delivery Date acknowledged by BUYER) for that Aircraft if the delay is
not due to a cause set forth in section 16 or 17, or (b) SELLER fails
to tender delivery of any Aircraft within [***] days of the Scheduled
Delivery Date (after giving effect to any extension thereof and/or any revised
Scheduled Delivery Date acknowledged by BUYER) for that Aircraft due to a cause
set forth in section 16 or 17, then BUYER may terminate this Agreement
immediately with respect to all undelivered Aircraft, hi order to so terminate,
BUYER shall provide SELLER written notice within [***] days after the end of the
[***]-day period in clause
(a) above or within [***] days of the end of the
[***] day period in clause
(b) above.  Upon receipt of such notice, SELLER shall promptly return
to BUYER all consideration paid hereunder for aircraft that have not been
delivered together with nil accrued interest thereon as well as any appropriate
penalties incurred pursuant to section 17, and the parties shall be
released from all further obligations under this Agreement with respect to
undelivered Aircraft; however, the parties’ obligations with respect to
delivered Aircraft shall remain in full force and effect.  If BUYER
fails to deliver notice of termination of this Agreement within the time period
set forth in this paragraph, BUYER shall forfeit the right to terminate this
Agreement with respect to me delivery default that gave rise to the termination
right and the Specified Delivery Date for the late aircraft shall be extended to
be the same date as the Specified Delivery Date for the next Aircraft to be
delivered hereunder, or if the late Aircraft is the last Aircraft to be
delivered hereunder, the Specified Delivery Date shall be extended [***] days.

     

    SELLER
may terminate this Agreement upon [***] days written notice to
BUYER, as a result of (a) BUYER’S unwarranted failure or refusal to accept
delivery of the Aircraft within [***] days after SELLER has
tendered the Aircraft for delivery or (b) BUYER’S failure to pay any
installment of the Purchase Price when due, or (c) BUYER’S failure to make
final payment of the Purchase Price at the time SELLER tenders delivery of the
Aircraft. In addition, SELLER may terminate this Agreement on written notice at
any time prior to SELLER’S receipt of the Deposit Due at Purchase Agreement
Execution.  If this Agreement is terminated as a result of (a), (b) or
(c) above, SELLER shall retain all payments theretofore made by BUYER as
liquidated damages and not as a penalty, and the parties shall thenceforth be
released from all further obligations hereunder with respect to undelivered
Aircraft; however, the parties’ obligations with respect to delivered Aircraft
shall remain in full force and effect.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    22.         Notices.

     

    All
notices permitted or required hereunder shall be deemed sent when deposited in
the mails, registered or certified, or sent by e-mail, telegram or telefax
followed by confirmation letter addressed to the parties at the addresses shown
below;

     

    
      	
               
      

            	
              To
      SELLER:

            	
              Piaggio
      America, Inc

            

    

    
      	
               
      

            	
              Fax
      561-253-0238

            

    

    
      	
               
      

            	
              1515
      Perimeter Road

            

    

    
      	
               
      

            	
              West
      Palm Beach, FL 33406

            

    

    
      	
               
      

            	
              [***]

            

    

     

    
      	
               
      

            	
              To
      BUYER:

            	
              Avantair,
      Inc.

            

    

    
      	
               
      

            	
              27
      Wright Way

            

    

    
      	
               
      

            	
              Fairfield,
      NJ 07004

            

    

    
      	
               
      

            	
              Fax
      973-227-6957

            

    

    
      	
               
      

            	
              [***]

            

    

     

    23.         Amendment

     

    Except as
otherwise explicitly contemplated herein, this Agreement may be amended only by
a writing signed by both parties hereto.

     

    24.         Applicable Law.

     

    This
Agreement shall be governed and construed in accordance with the laws of the
State of New York without giving effect to any provision (whether of the State
of New York or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of New York other than
non-waivable provisions of U.S. federal law.  The parties hereto
consent to the jurisdiction of the courts of the State of New York and the U.S.
federal courts each located in New York, New York and waive any right to object
to venue or forum in or jurisdiction of such courts, in each case in connection
with any and all claims brought therein in connection with any disputes arising
out of or in any way relating to this Agreement.  Should any dispute
arising out of or in any way relating to this Agreement not be resolved by
negotiation or mediation, the parties hereto hereby agree that all claims
related to such disputes shall be brought in either courts of the State of New
York or the United States federal district court located in or closest to New
York, New York.

     

    25.         Binding
Effect

     

    This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    26.         Waiver.

     

    No
failure or delay on the part of any Party in exercising any right hereunder
shall operate as a waiver of, or impair, any such right No single or partial
exercise of any such right shall preclude any other or further exercise thereof
or the exercise of any other rights.  No waiver of any such right
shall be effective unless given in writing.  No waiver of any such
right shall be deemed a waiver of any other right hereunder.

     

    27.         Interpretation.

     

    The
headings of the various sections hereof are for convenience of reference only
and shall not affect the meaning or construction of any provision
hereof.

     

    28.         Severability.

     

    In the
event that any provision of this Agreement should for any reason be held
ineffective, the remainder of this Agreement shall remain in full force and
effect.

     

    29.         Authority
to Contract

     

    SELLER
and BUYER hereby represent and warrant to each other that each has the power and
authority to enter into this Agreement and that this Agreement upon due
execution and delivery by the parties, shall constitute a valid, binding and
enforceable order of each of them.

     

    30.         Mediation

     

    If a
dispute arises out of or in any way relates to this Agreement and if the dispute
cannot be settled through negotiation, the parties agree first to try in good
faith to settle the dispute by mediation before resorting to arbitration,
litigation, or some other formal dispute resolution procedure.  Any
such dispute shall be submitted to a mediator selected by mutual agreement of
the parties.  Unless the parties agree to an alternative arrangement
the mediator’s fee and expenses shall be equally divided between the
parties.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    P.180
Avanti II Sales Price

    Contractual
Price Escalation Formula

     

    The price
of the Aircraft shall be $[***], expressed in January
2006, United States dollars (“The Reference Price”), escalated to the estimated
date of final delivery of the Aircraft (“The Escalated Price”), by an index
determined through the analysis of prices of “competitive
aircraft”.  The “competitive aircraft” are determined by an objective
analysis of list price, zero fuel weight, passenger load, and
range.  The following steps are taken in order to determine the
escalation factor:

     

    
      	
               
      

            	
              1.

            	
              Each
      aircraft determined to be competitive is weighted according to unit sales
      volume so that the total equals the total universe or
  1.

            

    

     

    
      	
               
      

            	
              2.

            	
              The
      year-to-year change in list price for each aircraft (as published in the
      Business and Commercial Aviation Annual Purchase Planning Handbook) is
      then multiplied by the weighting
factor.

            

    

     

    
      	
               
      

            	
              3.

            	
              The
      price escalation factor is determined by the sum of the two preceding
      steps.

            

    

     

    The
Escalated Price shall be equal to the Reference Price, multiplied by an
escalation factor as calculated in (a), (b) and (c) below:

     

    
      	
               
      

            	
              a.

            	
              The
      initial list of competitive aircraft is comprised
  of:

            

    

     

    
      
        
          
            
              	 
      	 
      	
                      Weighting

                    
	
                      1)

                    	
                      Cessna
      CJ 2+

                    	
                      [***]

                    
	
                      2)

                    	
                      Cessna
      CJ3

                    	
                      [***]

                    
	
                      3)

                    	
                      Cessna
      Citation Bravo

                    	
                      [***]

                    
	
                      4)

                    	
                      Beechcraft
      King Air B200

                    	
                      [***]

                    
	
                      5)

                    	
                      Beechcraft
      King Air 350

                    	
                      [***]

                    
	
                      6)

                    	
                      Beechcraft
      Premier I

                    	
                      [***]

                    
	
                      7)

                    	
                      Hawker
      400XP

                    	
                      [***]

                    

            

          

        

         

      

    

    
      	
               
      

            	
              b.

            	
              The
      year-to-year percentage price increase as reported in the Business &
      Commercial Aviation Annual Purchase Planning Handbook is as
      follows:

            

    

     

    
      
        
          
            
              
                
                  
                    	
                            Aircraft

                          	 
      	
                            2005

                          	 	
                            2004

                          	 	
                            2003

                          
	 
      	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Cessna
      CJ 2+

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Cessna
      CJ3

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Cessna
      Citation Bravo

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Beechcraft
      King Air B200

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Beechcraft
      King Air 350

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Beechcraft
      Premier 1

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          
	
                            Hawker
      400XP

                          	 
      	
                            [***]

                          	 	
                            [***]

                          	 	
                            [***]

                          

                  

                

              

            

          

        

      

    

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
        Exhibit
B-1

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              c.

            	
              The
      year-to-year weighted percentage price increase and resulting Escalation
      Index based on the data above Is as
follows:

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Aircraft

                                  	 	
                                    Weight

                                  	 	
                                    2005

                                  	 	
                                    2004

                                  	 	
                                    2003

                                  
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	
                                    Cessna
      CJ 2+

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Cessna
      CJ3

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Cessna
      Citation Bravo

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Beechcraft
      King Air B200

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Beechcraft
      King Air 350

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Beechcraft
      Premier I

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Hawker
      400XP

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	 
      	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  
	
                                    Yearly
      Escalation Index

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  	 	
                                    [***]

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    On an
annual basis, due to unforeseen and changing market conditions, either the BUYER
or the SELLER may request that the list of “competitive aircraft” be reviewed
and amended to reflect current market conditions.  Should the parties
be unable to agree on the competitive aircraft to be included in the
calculations, the list of competitive aircraft will include all competitive
aircraft that meet the following criteria:

     

    
      
        	 	
                1)

              	
                Zero
      Fuel Weight between 9,500 pounds and 13,000
  pounds.

              

      

    

    
      	
               
      

            	
              2)

            	
              Must
      have a minimum of 7 certified passenger seats and 2 crew
      seats.

            

    

    
      	
               
      

            	
              3)

            	
              Must
      have a list price within $2,000,000 of the previous years list price of
      the Avanti II as listed in Business & Commercial
    Aviation.

            

    

    
      	
               
      

            	
              4)

            	
              Must
      have a published ferry range of between 1,350 nm and 2,000
    nm.

            

    

    
      	
               
      

            	
              5)

            	
              A
      sales volume for that year of at least 10
  aircraft.

            

    

     

    Solely as
an example of how to conduct the calculations contemplated in this provision,
with the Reference Price set at January 2006 ($[***]), and the calendar month
prior to delivery being March 2008, using the yearly escalation index of years
2004 and 2005 (as a substitute for years 2007 and 2008) reported in section c
above as the sample Escalation Index, the Escalated Price would be calculated as
follows:

     

    Escalated
Price equals [***]

     

    Escalated
Price equals [***]

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
        Exhibit
B-2

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    P180
Avanti II NEW AIRCRAFT WARRANTY

     

    A.  AIRCRAFT
MANUFACTURER’S LIMITED WARRANTY

     

    Manufacturer
warrants that the Aircraft, at the time of its delivery from Manufacturer, shall
be free from all defects in material and workmanship and from defects inherent
in its design relative to the known state of the art at the time of such
design.  This warranty does not apply to Aircraft operated or
maintained contrary to Manufacturer’s service and flight manuals, as they may be
in effect from time to time, provided same are provided to Buyer on an ongoing
basis.  (The first year updates are offered at no
charge.)

     

    Upon
receipt of prompt written notification from Buyer, including satisfactory
evidence of the defects and return of the defective part when possible,
Manufacturer shall:

     

    1)  if
the failure occurs both within the first 1,000 flight hours and within 24 months
after acceptance by and delivery of the aircraft to Buyer, either repair or
replace all defective items which are manufactured by Manufacturer or those
which are manufactured by vendors to Manufacturer’s detailed design
specifications.

     

    2)  if
the failure occurs both within the first 5,000 flight hours and within 60 months
after delivery of the Aircraft to Buyer, either repair or replace any defective
fuselage, empennage, wing, or control surface.

     

    B.  ENGINES
WARRANTED BY PRATT & WHITNEY

     

    Engine
warranty will be administered by the engine manufacturer (Pratt & Whitney
Canada Inc.).  Specific details for the implementation of such
warranty will be furnished to the Buyer by the Manufacturer upon delivery of the
Aircraft.

    (2 Years
or 1000 hours, whichever comes first.)

     

    C.  AVIONICS
WARRANTED BY APPLICABLE MANUFACTURERS.

     

    The
Avionics equipment and components are warranted by their respective
manufacturers for varying periods of time. (Five years for Collins Avionics
Package).  Buyer will receive any remaining life of those warranties
in accordance with each respective manufacturer’s warranty program.

     

    D.  LABOR
STATEMENT

     

    With
regard to paragraphs A(1), A(2), above, the repair or replacement of defective
parts under this warranty will be made by or through any Avanti Authorized
Service Center or, by prior agreement with Seller only, at a service center
chosen by Buyer, without charge for parts and/or labor for removal, installation
and/or actual repair of such defective parts.

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

    
      
         

      

      
        Exhibit
C-1

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

    SPECIAL
TERMS AND CONDITIONS

    AVANTAIR,
INC.

    NOVEMBER
3, 2005

     

    Cost of Aircraft/First Right of
Refusal – As an inducement to SELLER to enter into this agreement, BUYER
agrees to use all aircraft purchased hereunder for fractional ownership or
charter business except as otherwise explicitly provided in this
paragraph.  BUYER acknowledges that SELLER would not have entered into
this agreement but for BUYER’S compliance with the covenants set forth in this
paragraph.  [***].  BUYER shall
not resell any aircraft purchased under this Agreement as a whole aircraft
within [***]of delivery of
that aircraft without first offering, in writing, to resell such aircraft to
SELLER at a price equal to [***], which offer shall be
binding on BUYER if accepted by SELLER as contemplated in this
paragraph.  BUYER agrees to offer any aircraft it proposes to resell
as a whole aircraft to SELLER as provided in this paragraph prior to contacting
any other entity and/or prior to placing such aircraft on the open
market.  SELLER must give BUYER written notice of its intention to
exercise its repurchase right under this paragraph within [***] days from the date of
SELLER’S receipt of BUYER’S written offer of resale, which notification shall be
binding on SELLER.  If BUYER resells any aircraft purchased under this
agreement as a whole aircraft within [***] of delivery of that
aircraft, regardless of whether such aircraft was offered for resale to SELLER
or whether SELLER declined any such resale offer, BUYER shall return to SELLER
[***].  SELLER
agrees to provide BUYER with right of first refusal on any like configured
aircraft for which right of first refusal has not already been granted as of
this Agreement, which may come available as a result of cancellation or
unexercised option.  SELLER agrees to contact BUYER prior to
contacting any other entity and/or prior to placing same on the open
market.  BUYER agrees to make its intentions known to SELLER within
[***] of
notification.  All the provisions of this paragraph terminate upon the
delivery of the last aircraft delivered under this contract.

     

    Green Aircraft Acquisition -
At Buyer’s option, Buyer may elect to take delivery of the aircraft in a “green”
(uncompleted) condition as it comes from the factory.  If the Buyer
elects to exercise this option, the aircraft price will be $[***] in 2006 US dollars and
shall be subject to the same escalation index as outlined in Exhibit B of
this Agreement.  The total purchase price shall be due and payable
upon Green Aircraft Acceptance in Greenville, SC.  Aircraft must be
completed in a Piaggio America Authorized Completion Center.

     

    [***] Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a
confidential treatment request.

    
      
         

      

      
        Exhibit
D-1

        
          

        

      

      
         

      

    

    EXHIBIT
E

    AVANTAIR,
INC.

    Optional
Equipment/Modifications

     

    
      
        
          	
                  OPTION

                	 	
                  COST

                
	
                  1.

                	 	 
      
	
                  2.

                	 	 
      
	
                  3.

                	 	 
      
	
                  4.

                	 	 
      
	
                  5.

                	 	 
      
	
                  6.

                	 	 
      
	
                  TOTAL

                	 	 
      

        

      

    

     

    [***] Confidential information has
been omitted and filed separately with the Securities and Exchange Commission
pursuant to a confidential treatment request.

     

    
      
         

      

      
        Exhibit
E-1

        
          

        

      

      
         

      

    

     

    November
10, 2005

     

    Mr.
Steven F. Santo

    Chief
Executive Officer

    Avantair,
Inc.

    27 Wright
Way

    Fairfield,
NJ 07004

     

    Dear Mr.
Santo:

     

    This
letter will confirm an agreement with Avantair, Inc. for the rebate of certain
funds upon the full payment for certain aircraft.  This letter will
reference Avantair #44 through Avantair #79, Piaggio Avanti Serial Numbers To Be
Assigned Aircraft to be delivered according to the following
schedule:  Twelve (12) aircraft in 2008; Twelve (12) aircraft in 2009;
and Twelve (12) aircraft in 2010.

     

    Upon
receipt of the Total Due on Delivery from the Purchase Agreement, Piaggio
America, Inc. will provide the following rebates:

     

    
      
        
          
            
              	
                      Avantair
      #44-#79 Serial Numbers 1XXX-1XXX

                    	
                       
      [***]

                    	
                      To
      be rebated at
closing

                    

            

          

        

      

    

     

    Thank you
for your business.  If this letter is agreeable to you, please sign
below.

     

    
      
        
          	
                  Sincerely,

                	
                  Accepted:

                
	 
      	 
      
	
                  /s/
      James L. Holcombe

                	
                  /s/
      Alfred Rapetti

                
	 
      	 
      
	
                  James
      L. Holcombe

                  Executive
      Vice President, Sales & Marketing

                  Chief
      Operating Officer

                	
                  Alfred
      Rapetti

                  Executive
      Chairman

                  Avantair,
      Inc.

                

        

      

    

     

    Piaggio
America, Inc.

    1515
Perimeter Road    West Palm Beach, FL
33406    Phone:  (561)
253-0104    Fax:  (561) 253-0238

    EAST\42745661.2

     

    [***] Confidential information has been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment
request.

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