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      Exhibit
        10.19

      

      UNITED
        STATES DISTRICT
        COURT

      FOR
        THE DISTRICT OF NEW JERSEY

      
        	
                 

              	
                 

              	 
	
                LEWIS
                  EDELSTEIN, Derivatively
                  on

              	
                )

              	 
	
                Behalf
                  of Nominal
                  Defendant

              	
                )

              	
                No.
07-00596
                  (FLW)

              
	
                EMCORE
                  CORPORATION,

              	
                )

              	 
	 	 	
                )

              	 
	
                Plaintiff,

              	
                )

              	 
	 	 	
                )

              	 
	
                v.

              	
                )

              	 
	 	 	
                )

              	 
	
                HOWARD
                  W. BRODIE, REUBEN
                  F.

              	
                )

              	 
	
                RICHARDS,
                  JR., RICHARD A.
                  STALL,

              	
                )

              	 
	
                THOMAS
                  G. WERTHAN,
                  CRAIG

              	
                )

              	 
	
                FARLEY,
                  THOMAS GMITTER,
                  SCOTT

              	
                )

              	 
	
                MASSIE,
                  THOMAS J.
                  RUSSELL,

              	
                )

              	 
	
                ROBERT
                  LOUIS-DREYFUS,
                  ROBERT

              	
                )

              	 
	
                BOGOMOLNY,
                  CHARLES SCOTT
                  and

              	
                )

              	 
	
                JOHN
                  GILLEN,

              	
                )

              	 
	 	 	
                )

              	 
	
                Defendants,

              	
                )

              	 
	 	 	
                )

              	 
	
                and

              	
                )

              	 
	 	 	
                )

              	 
	
                EMCORE
                  CORPORATION,

              	
                )

              	 
	 	 	
                )

              	 
	
                Nominal
                  Defendant.

              	
                )

              	 
	 	 	
                )

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      
        	
                 

              	
                 

              	 
	
                KATHRYN
                  Y. GABALDON,
                  Derivatively

              	
                )

              	 
	
                On
                  Behalf of Nominal
                  Defendant

              	
                )

              	
                No.
                  07-03185(FLW)

              
	
                EMCORE
                  CORPORATION,

              	
                )

              	 
	 	 	
                )

              	 
	
                Plaintiff,

              	
                )

              	 
	 	 	
                )

              	 
	
                v.

              	
                )

              	 
	 	 	
                )

              	 
	
                HOWARD
                  W. BRODIE, et
                  al.,

              	
                )

              	 
	 	 	
                )

              	 
	
                Defendants,

              	
                )

              	 
	 	 	
                )

              	 
	
                and

              	
                )

              	 
	 	 	
                )

              	 
	
                EMCORE
                  CORPORATION,

              	
                )

              	 
	 	 	
                )

              	 
	
                Nominal
                  Defendant.

              	
                )

              	 
	 	 	
                )

              	 
	 	 	
                 

              	 
	
                MICHAEL
                  J. SACKRISON,
                  Derivatively

              	
                )

              	 
	
                On
                  Behalf of Nominal
                  Defendant

              	
                )

              	
                No.
                  07-03186(FLW)

              
	
                EMCORE
                  CORPORATION,

              	
                )

              	 
	 	 	
                )

              	 
	
                Plaintiff,

              	
                )

              	 
	 	 	
                )

              	 
	
                v.

              	
                )

              	 
	 	 	
                )

              	 
	
                HOWARD
                  W. BRODIE, et
                  al.,

              	
                )

              	 
	 	 	
                )

              	 
	
                Defendants,

              	
                )

              	 
	 	 	
                )

              	 
	
                and

              	
                )

              	 
	 	 	
                )

              	 
	
                EMCORE
                  CORPORATION,

              	
                )

              	 
	 	 	
                )

              	 
	
                Nominal
                  Defendant.

              	
                )

              	 
	 	
                )

              	 

      

      

       

      STIPULATION
        OF COMPROMISE
        AND SETTLEMENT

       

      This
        Stipulation of Compromise and Settlement is made and entered into, subject
        to
        the approval of the Court, by and among (i) plaintiffs Lewis Edelstein, Kathryn
        Y. Gabaldon and Michael J.
        Sackrison, who have brought suit derivatively for and on behalf of
        Nominal Defendant EMCORE Corporation (“EMCORE” or the “Company”), (ii)
        Individual Defendants Howard W. Brodie, Reuben F. Richards, Jr., Richard
        A.
        Stall, Thomas G. Werthan, Craig Farley, Thomas Gmitter, Scott Massie, Thomas
        J.
        Russell, Robert Louis-Dreyfus, Robert Bogomolny, Charles Scott and John Gillen
        and (iii) Nominal Defendant EMCORE.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      
        	
                I.

              	
                DEFINITIONS
                  

              

      

       

      As
        used
        in this Stipulation, the following terms shall have the meanings specified
        below:

      
         

        1.1   “Actions”
          means the Edelstein Action and the Gabaldon and Sackrison Actions, collectively,
          as defined below. 

      

      
         

        1.2   “Board”
          means the Board of Directors of EMCORE. 

      

      
         

        1.3   “Complaints”
          means the complaints filed in the Actions. 

      

      
         

        1.4   “Court”
          means the United States District Court for the District of New Jersey.
          

      

      
         

        1.5   “Defendants”
          means the Individual Defendants and the Nominal Defendant, collectively.
          

      

      
         

        1.6   “Defendants’
          Counsel” means all counsel for the Individual Defendants and the Nominal
          Defendant, collectively. 

      

      
         

        1.7   “Edelstein”
          means plaintiff in the Edelstein Action, Lewis Edelstein. 

      

      
         

        1.8   “Effective
          Date” means the date of completion of the following:  (a) (1) entry of
          an Order and Final Judgment which approves in all material
          respects:  (i) the dismissal with prejudice of the claims that have
          been made in the Actions and (ii) the releases provided for in the Stipulation;
          and (2) either (i) expiration of the time to appeal or otherwise seek review
          of
          the Order and Final Judgment, as defined herein, without any appeal having
          been
          taken or review sought, or (ii) if an appeal is taken or review sought,
          the
          expiration of five (5) days after an appeal or review shall have been dismissed
          or finally determined by the highest court before which such appeal or
          review is
          sought and which affirms the material terms of the Settlement and/or Order
          and
          Final Judgment and is not subject to further judicial review; and (b) entry
          of
          the final Court order regarding approval of Fees and Expenses.

      

      
         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        1.9   “Edelstein
          Action” means Edelstein v.
          Brodie, et al., Case No. 07-00596, filed in the Court.

      

      
         

        1.10   “Final”
          means no longer subject to review upon appeal or review in connection with
          a
          Petition for Writ of Certiorari or other similar writ, whether by exhaustion
          of
          any possible appeal, lapse of time or otherwise. 

      

      
         

        1.11   “Gabaldon
          and Sackrison Actions” means the actions captioned Gabaldon v. Brodie,
          et al.,
          Docket No. SOM-C-012038-07 and Sackrison v. Brodie, et al.,
          Docket No. SOM-C-012037-07, which were commenced on or about May 22, 2007,
          in
          the Superior Court of New Jersey, Chancery Division, Somerset County, and
          subsequently removed to this Court. 

      

      
         

        1.12   “Individual
          Defendants” means Howard W. Brodie, Reuben F. Richards, Jr., Richard A. Stall,
          Thomas G. Werthan, Craig Farley, Thomas Gmitter, Scott Massie, Thomas J.
          Russell, Robert Louis-Dreyfus, Robert Bogomolny, Charles Scott, and John
          Gillen.

      

      
         

        1.13   “MOU”
          means the Memorandum of Understanding entered into by the Parties in the
          Edelstein Action on or about September 26, 2007 outlining the terms agreed
          upon
          by the Parties therein for the settlement of the Edelstein Action.

      

      
         

        1.14   “Nominal
          Defendant,” “EMCORE” and the “Company” mean EMCORE Corporation.

      

      
         

        1.15   “Nominal
          Defendant’s Counsel” means Jenner & Block LLP and Carella, Byrne, Bain,
          Gilfillan, Cecchi, Stewart & Olstein. 

      

      
         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        1.16   “Notice”
          means the Notice of Pendency and Settlement of Actions. 

      

      
         

        1.17   “Order
          and Final Judgment” means an order and Final judgment. 

      

      
         

        1.18   “Parties”
          means the Plaintiffs, the Individual Defendants and the Nominal Defendant.
          

      

      
         

        1.19   “Person”
          means a natural person, individual, corporation, partnership, limited
          partnership, limited liability partnership, limited liability company,
          association, joint venture, joint stock company, estate, legal representative,
          trust, unincorporated association, government or any political subdivision
          or
          agency thereof, any business or legal entity, and any spouse, heir, legatee,
          executor, administrator, predecessor, successor, representative, or assign
          of
          any of the foregoing. 

      

      
         

        1.20   “Plaintiffs”
          means Lewis Edelstein, Kathryn Y. Gabaldon and Michael J. Sackrison.

      

      
         

        1.21   “Plaintiffs’
          Counsel” means Schiffrin Barroway Topaz & Kessler, LLP, Stull, Stull &
Brody, and Weiss & Lurie. 

      

      
         

        1.22   “Preliminary
          Order” means an order preliminarily approving the Stipulation and the form of
          Notice. 

      

      
         

        1.23   “Related
          Persons” means, with respect to any Person, such Person’s present and former
          parent entities, subsidiaries (direct or indirect) and affiliates, and
          each of
          their respective present and former shareholders, general partners, limited
          partners, affiliates, divisions, joint ventures, partnerships, officers,
          directors, employees, agents, representatives, attorneys, excess insurers,
          experts, advisors, investment advisors, underwriters, fiduciaries, trustees,
          auditors, accountants, representatives, spouses and immediate family members,
          and the predecessors, heirs, legatees, successors, assigns, agents, executors,
          devisees, personal representatives, attorneys, advisors and administrators
          of
          any of them, and the predecessors, successors, and assigns of each of the
          foregoing, and any other Person in which any such Person has or had a
          controlling interest or which is or was related to or affiliated with such
          Person, and any trust of which such Person is the settler or which is for
          the
          benefit of such Person or member(s) of his or her family. 

      

      
         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        1.24   “Released
          Claims” means any and all claims, rights or causes of action, or liabilities
          whatsoever, whether asserted directly, individually, derivatively, or in
          a
          representative capacity, whether known or unknown or suspected to exist,
          whether
          based on federal, state, local, statutory, common, foreign, international,
          or
          any other law, rule, or regulation, and whether fixed or contingent, accrued
          or
          unaccrued, liquidated or unliquidated, or matured or unmatured, that have
          been
          or could have been asserted against the Individual Defendants, nominal
          defendant
          EMCORE, and each of their respective parents, subsidiaries, affiliates,
          predecessors, successors, agents, advisors or consultants (including, without
          limitation, any of their present or former officers, directors, the Board
          of
          Directors and any Committees of the Board of Directors, employees, agents,
          consultants, attorneys, stockholders, financial advisors, accountants,
          commercial bank lenders, investment bankers, representatives, affiliates,
          associates, parents, subsidiaries, general and limited partners and
          partnerships, heirs, executors, administrators, successors, and assigns),
          which
          arise out of or relate in any way to the allegations, transactions, acts,
          facts,
          matters or occurrences, representations, or omissions described, set forth,
          or
          referred to in the Complaints or any amendment thereof, including but not
          limited to (1) claims related to options back-dating, forward-dating,
          spring-loading, bullet-dodging, or any other options dating practice, procedure
          or policy, (2) claims for breach of fiduciary duty, insider trading,
          misappropriation of information, failure to disclose, abuse of control,
          breach
          of EMCORE’s policies or procedures, waste, mismanagement, gross mismanagement,
          unjust enrichment, misrepresentation, fraud, violations of law, money damages,
          or other relief and (3) claims that arise out of or relate in any way to
          any
          stock-option grants made since the inception of EMCORE through the effective
          date of this Settlement. 

      

      
         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        1.25   “Released
          Parties” means the Defendants and their Related Persons. 

      

      
         

        1.26   “SEC”
          means the Securities and Exchange Commission. 

      

      
         

        1.27   “Settlement”
          means the settlement and compromise of the Actions as provided for herein.
          

      

      
         

        1.28   “Settlement
          Hearing” means the hearing or hearings at which the Court will review the
          adequacy, fairness, and reasonableness of the Settlement, and whether the
          application of Plaintiffs’ Counsel for the Fees and Expenses award should be
          approved. 

      

      
         

        1.29   “Special
          Committee” means the special committee of the Board of Directors appointed to
          review the Company’s historical stock option grant procedures.

      

      
         

        1.30   “Stipulation”
          means this Stipulation of Settlement. 

         

      

      
        	
                II.

              	
                FACTUAL
                  AND PROCEDURAL HISTORY 

              

      

      
         

        2.1   On
          February 2, 2007, plaintiff Edelstein, by and through his counsel Schiffrin
          Barroway Topaz & Kessler, LLP, commenced a derivative action captioned Edelstein v. Brodie,
          et al.,
          Case No. 07-00596 (FLW), in the United States District Court for the District
          of
          New Jersey. 

      

      
         

        2.2   The
          Edelstein Action was brought by a shareholder of EMCORE on behalf of Nominal
          Defendant EMCORE and alleges that, from 1999 to 2006 (the “Relevant Period”),
          stock option grants to officers and directors of the Company were improperly
          “backdated.” 

      

      
         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        2.3   On
          November 6, 2006, in the Company’s Form 8-K filing, EMCORE announced that the
          Special Committee had concluded that it is likely that the measurement
          dates for
          certain EMCORE stock option grants differed from the recorded grant dates
          for
          such awards. 

      

      
         

        2.4   On
          November 15, 2006, EMCORE announced the results of its stock option grant
          review
          and the expectation that it would record non-cash charges for a stock-based
          compensation expense of approximately $24 million. 

      

      
         

        2.5   The
          Special Committee recommended certain remedial measures to address these
          issues,
          which the Company has implemented. 

      

      
         

        2.6   EMCORE
          has produced certain nonpublic documents to Edelstein’s counsel relating to the
          stock option granting practices of EMCORE during the Relevant Period.

      

      
         

        2.7   Counsel
          for Edelstein conferred with counsel for EMCORE on multiple occasions to
          discuss
          possible additional remedial measures beyond those recommended by the Special
          Committee and to discuss the documents provided to Edelstein’s counsel.

      

      
         

        2.8   On
          May
          22, 2007, plaintiffs Gabaldon and Sackrison, by and through their counsel
          Stull
          Stull & Brody and Weiss & Lurie, commenced derivative actions captioned
Gabaldon v. Brodie,
          et
          al., Docket No. SOM-C-012038-07 and Sackrison v.
          Brodie, et al.,
          Docket No. SOM-C-012037-07, in the Superior Court of New Jersey, Chancery
          Division, Somerset County. 

      

      
         

        2.9   The
          Gabaldon and Sackrison Actions were also brought by shareholders of EMCORE
          on
          behalf of Nominal Defendant EMCORE and allege that, from 1999 to 2006,
          stock
          option grants to officers and directors of the Company were improperly
          “backdated.” 

      

      
         

        2.10   On
          or
          about July 10, 2007, Defendants removed the Gabaldon and Sackrison Actions
          to
          federal court. 

      

      
         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        2.11   The
          Gabaldon and Sackrison Actions remain in federal court and are currently
          captioned Gabaldon v. Brodie,
          et al., Case No. 07-civ-03185(FLW)(JJH), and Sackrison v.
          Brodie, et al.,
          Case No. 07-civ-03186(FLW)(JJH). 

      

      
         

        2.12   EMCORE,
          the Individual Defendants and Plaintiffs, by and through their undersigned
          attorneys, have engaged in good-faith, arms-length discussions with regard
          to
          the settlement of the Actions. 

      

      
         

        2.13   Following
          negotiations between plaintiff Edelstein, the Individual Defendants, and
          the
          Nominal Defendant, plaintiff’s counsel in the Edelstein Action and Defendants’
Counsel reached an agreement-in-principle providing for the Settlement
          on the
          terms and conditions set forth below, and the Parties believe that the
          Settlement is in the best interests of the Parties. 

      

      
         

        2.14   On
          or
          about September 26, 2007, plaintiff Edelstein, the Individual Defendants
          and the
          Nominal Defendant entered into the MOU, pursuant to which the Parties in
          the
          Edelstein Action agreed to enter into the Settlement outlined in this
          Stipulation. 

      

      
         

        2.15   Defendants
          do not admit and expressly deny all of Plaintiffs’ claims in the Actions.

      

      
         

        2.16   Plaintiffs
          acknowledge and agree that the execution of the Stipulation by the Individual
          Defendants is not an admission on the part of any of the Individual Defendants
          that they have in any way committed or attempted to commit any alleged
          violation
          of law or breach of fiduciary duty, including a breach of any duty to EMCORE
          or
          its shareholders, or otherwise acted in any improper manner. 

      

      
         

        2.17   Plaintiffs
          do not admit that any of their claims lack merit. 

      

      
         

        2.18   Both
          Plaintiffs and EMCORE believe that the proposed Settlement is in the best
          interests of EMCORE and EMCORE’s shareholders. 

      

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      NOW,
        THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and between the undersigned
        counsel for the Parties herein, and subject to the approval of the Court
        pursuant to FED. R. CIV. P. 23.1, that all claims and causes of action that
        have
        been or could have been set forth in the Complaints in the Actions or any
        amendment thereof, and all claims or causes of action in any way relating
        to or
        arising out of any of the acts, transactions and occurrences that were or
        could
        have been set forth therein, shall be and hereby are compromised, settled,
        discontinued and dismissed with prejudice and without costs (except as defined
        herein) as to all Defendants upon the following terms and
        conditions. 

       

      
        	
                III.

              	
                SETTLEMENT
                  OF THE ACTIONS 

              

      

       

      
        	
                 

              	
                3.1

              	
                Principal
                  Terms of Settlement. 

              

      

       

      
        	
                 

              	
                a.

              	
                Stock
                  Option Grants 

              

      

       

      
        	
                 

              	
                (1)

              	
                Stock
                  options granted to newly hired employees shall be granted to such
                  employees on their first day of employment or on the date of Compensation
                  Committee approval with an exercise price not less than 100% of
                  the fair
                  market value of the Company's stock, as defined by the Company's
                  applicable stock option plan. The Company’s Compensation Committee, after
                  consultation with counsel, has determined that the historical practice
                  of
                  using the closing price on the grant date is consistent with the
                  terms of
                  the Plan and has memorialized that practice in a formal amendment
                  as
                  reported on a Form 8-K dated April 19, 2007.1

              

      

      _____________________ 
        1“Fair
          Market
          Value” of a share of Stock as of a given date shall be: (i) if the Stock
          is listed or admitted to trading on an established stock exchange (including,
          for this purpose, The Nasdaq Global Market that comprises part of The Nasdaq
          Stock Market), the closing sale price for a share of Stock on the composite
          tape
          or in Nasdaq Global Market trading as reported in The Wall Street Journal
(or,
          if not so reported, such other nationally recognized reporting source as
          the
          Committee shall select) for such date, or, if no such price is reported
          for such
          date, the most recent day for which such price is available shall be used;
          (ii)
          if the Stock is not then listed or admitted to trading on such a stock
          exchange,
          the closing sale price for a share of Stock on such date as reported by
          The
          Nasdaq Capital Market or, if not so reported, by the OTC Bulletin Board
          (or any
          successor or similar quotation system regularly reporting the market value
          of
          the Stock in the over-the-counter market), or, if no such price is reported
          for
          such date, the most recent day for which such price is available shall
          be used;
          or (iii) in the event neither of the valuation methods provided for in
          clauses
          (i) and (ii) above is practicable, the fair market value of a share of
          Stock
          determined by such other reasonable valuation method as the Committee shall,
          in
          its discretion, select and apply in good faith as of the given date; provided, however, that for
          purposes of paragraphs (a) and (b) of Section 6 of EMCORE’s Amended and Restated
          2000 Stock Option Plan, such fair market value shall be determined subject
          to
          Section 422(c)(7) of the Internal Revenue Code of 1986.

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

      

       

      
        
          	
                	
                  (2)

                	
                  The
                    Company shall not change the exercise prices of any stock options
                    after
                    Compensation Committee approval, nor exchange stock options for
                    other
                    stock options with lower exercise prices.

                

        

      

       

      
        	
                 

              	
                (3)

              	
                The
                  Company will prohibit any additions or modifications to the number
                  of
                  stock options granted to any employee after the Compensation Committee
                  has
                  approved the grants. 

              

      

       

      
        	
                 

              	
                (4)

              	
                With
                  respect to any yearly retention grants to employees, the Company
                  will
                  maintain the practice of awarding any retention grants to senior
                  management on the same date and with the same exercise price as
                  any
                  retention grants awarded to non-senior management employees.
                  

              

      

       

      
        	
                 

              	
                (5)

              	
                The
                  exercise prices for all stock options granted to employees, except
                  new-hire grants, shall be set at the closing price of the Company's
                  common
                  stock on the date on which the Compensation Committee approves
                  the grants.
                  Plaintiffs require that the exercise prices of all stock options
                  shall be
                  at least 100% of the fair market value of the Company's stock,
                  as defined
                  by the Company's applicable stock option plan, on the date on which
                  the
                  Compensation Committee approves the grants.

              

      

       

      
        	
                 

              	
                (6)

              	
                Other
                  than new-hire grants, the Company’s CEO and Vice President of Human
                  Resources will recommend to the Compensation Committee the recipients
                  of
                  grants and amount of stock options to be awarded to each
                  grantee.  The Compensation Committee may consider and approve
                  the CEO’s and Vice President of Human Resources’ recommendations in the
                  exercise of their own judgment.  The Compensation Committee
                  shall make grant determinations only at duly convened meetings
                  and not
                  through unanimous written consents.

              

      

       

      
        	
                 

              	
                (7)

              	
                All
                  stock option grants will be communicated to employees as soon as
                  practicable after the grant date, as required by applicable accounting
                  rules. Plaintiffs require written documentation identifying grantees,
                  amounts and prices of all stock options granted on a particular
                  date which
                  shall be complete and final and approved by all members of the
                  Compensation Committee on the date of grant.2 Grant
                  packages
                  shall be distributed to employees on or as soon as practicable
                  following
                  the grant date. In the event such grant package is not available
                  for
                  distribution as of the grant date, an electronic communication
                  shall be
                  sent to the respective employee within two business days of the
                  grant
                  date. Additionally, Plaintiffs require that this signed documentation
                  shall be transmitted to the Company's legal and accounting departments
                  within seven (7) days of the grant.

              

      

      
        _____________________

        2
          Approval
          of grants will only occur at a duly convened meeting of the Compensation
          Committee.  However, many meetings are telephonic.  It is
          impractical to ask each member of the committee to sign the grant list
          at the
          time of the meeting as that presents the same potential problem as unanimous
          written consents.

         

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  (8)

                	
                  The
                    Company will designate a member of its in-house legal and accounting
                    staffs to oversee documentation and accounting for all stock
                    option
                    grants. Plaintiffs require that the Compensation Committee shall
                    designate
                    one Company legal officer and one Company accounting officer
                    who shall be
                    responsible for ensuring compliance with applicable laws and
                    regulations
                    by option grantees (e.g., timely and accurate filing of SEC Forms
                    3, 4 and
                    5) and shall provide effective monitoring mechanisms to ensure
                    that such
                    laws and regulations, and the Company's policies, procedures
                    and stock
                    option plans, are followed. 

                

        

      

       

      
        	
                 

              	
                (9)

              	
                The
                  Board of Directors will conduct a biannual review of all new-hire
                  grants
                  to ensure compliance with the Company's policies and procedures.
                  Plaintiffs require that the Board shall biannually conduct a review
                  of all
                  stock option grants to ensure compliance with the Company's policies,
                  procedures and stock option plans. 

              

      

       

      
        	
                 

              	
                (10)

              	
                The
                  Company will monitor industry and regulatory practices and revise
                  its
                  practices as developments occur. Plaintiffs require that management
                  shall
                  annually assess the adequacy of the Company's internal controls
                  with
                  regard to stock option grants and shall report its assessment in
                  the
                  Company's annual report on internal controls pursuant to section
                  404 of
                  the Sarbanes-Oxley Act. 

              

      

       

      
        	
                 

              	
                (11)

              	
                Grants
                  of stock options to new hires shall vest over a five-year period,
                  20%
                  vesting per year. Retention grants for existing employees shall
                  vest over
                  a four-year period, 25% vesting per year.

              

      

       

      
        	
                 

              	
                (12)

              	
                The
                  Company will comply with SEC disclosure rules regarding the grantees,
                  amounts, dates, prices and vesting schedules of stock options.
                  

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

      

      
        	
                 

              	
                (13)

              	
                The
                  Company shall maintain all documentation relating to all stock
                  option
                  grants until at least seven (7) years after the expiration of the
                  pertinent stock option grants. 

              

      

       

      
        	
                 

              	
                b.

              	
                Insider
                  Trading Policy 

              

      

       

      
        	
                 

              	
                (1)

              	
                The
                  Company shall maintain an Insider Trading Policy that provides
                  as follows:
                  

              

      

       

      
        	
                 

              	
                (a)

              	
                The
                  Insider Trading Policy shall specifically prohibit all Company
                  directors,
                  officers and employees from trading in Company securities while
                  in
                  possession of material nonpublic information regarding the Company,
                  including, but not limited to, (i) information regarding actual
                  or
                  estimated results of operations and earnings; (ii) proposals or
                  agreements
                  relating to mergers, acquisitions or divestitures; and (iii) information
                  regarding significant contracts, patents or new product development.
                  

              

      

       

      
        	
                 

              	
                (b)

              	
                The
                  Insider Trading Policy shall encourage all directors and Section
                  16
                  officers who wish to trade in Company securities to adopt a valid
                  trading
                  plan pursuant to SEC Rule 10b-5-1. 

              

      

       

      
        	
                 

              	
                (c)

              	
                The
                  Insider Trading Policy shall require all Company employees who
                  wish to
                  trade in Company securities to do so only within prescribed "trading
                  windows." Each quarter there will be a Blackout Period beginning
                  on the
                  last day of the quarter and running until the business day after
                  the
                  earnings conference call of such quarter. For example, with respect
                  to the
                  quarter ended March 31, if the earnings call is scheduled for Friday,
                  May
                  3, the Blackout Period would run from March 31 through May 6, and
                  trading
                  could resume on May 7. In addition, from time to time as a result
                  of
                  material corporate developments, the Company may impose additional
                  Blackout Periods during which no trading may occur. All Executives
                  will be
                  notified of the commencement and end of such Blackout Periods by
                  the CFO
                  or the General Counsel. 

              

      

       

      
        	
                 

              	
                (2)

              	
                The
                  Board shall appoint the Company's General Counsel or another senior
                  officer to serve as the Company's "Trading Compliance Officer."
                  The Trading Compliance Officer shall be responsible for developing
                  (along
                  with the full Board); presenting to the Board for approval; and
                  monitoring
                  and updating a comprehensive program (the "Trading Compliance Program")
                  designed to ensure compliance with the foregoing insider trading
                  policies
                  and providing for appropriate sanctions for noncompliance.  The
                  independent directors shall be responsible for direct oversight
                  of the
                  Trading Compliance Program and the Trading Compliance Officer and
                  shall
                  have regular access to the Trading Compliance Officer, including
                  the
                  opportunity to meet with the Trading Compliance Officer outside
                  the
                  presence of any other senior executives.

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

      

      
        	
                 

              	
                c.

              	
                Board
                  of Directors 

              

      

       

      
        	
                 

              	
                (1)

              	
                The
                  Company shall revise its articles of incorporation and/or by-laws
                  to
                  require that at least a majority of the members of the Board be
                  independent, where independence is defined as follows:
                  

              

      

       

      
        	
                 

              	
                (a)

              	
                is
                  not, and in the past three years has not been, employed by the
                  Company or
                  any of its subsidiaries or affiliates;

              

      

       

      
        	
                 

              	
                (b)

              	
                does
                  not receive, and in the past three years has not received, any
                  remuneration as an advisor, consultant or legal counsel to the
                  Company or
                  any of its subsidiaries, affiliates, executive officers or directors;
                  

              

      

       

      
        	
                 

              	
                (c)

              	
                does
                  not have, and in the past three years has not had, any contract
                  or
                  agreement with the Company or any of its subsidiaries or affiliates
                  pursuant to which the director performed or agreed to perform any
                  personal
                  services for the Company; 

              

      

       

      
        	
                 

              	
                (d)

              	
                does
                  not have, and in the past three years has not had, any business
                  relationship or engaged in any transaction with the Company or
                  any of its
                  subsidiaries or affiliates other than his or her service as a director;
                  

              

      

       

      
        	
                 

              	
                (e)

              	
                is
                  not, and in the past three years has not been, affiliated with,
                  or
                  employed by any present or former independent auditor of the Company
                  or
                  any of its subsidiaries or affiliates;

              

      

       

      
        	
                 

              	
                (f)

              	
                is
                  not, and in the past three years has not been, a director or executive
                  officer of any company for which any executive officer of EMCORE
                  Corporation serves as a director; and

              

      

       

      
        	
                 

              	
                (g)

              	
                is
                  not a member of the immediate family of a person who is not independent
                  pursuant to subsections a-f above. 

              

      

       

      
        	
                 

              	
                (2)

              	
                Each
                  independent director shall certify in writing that he or she is
                  independent as defined above and shall immediately inform the Board
                  of any
                  change in his or her independent status.

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

         

      

      
        	
                 

              	
                (3)

              	
                In
                  the event that the Chairman of the Board is not an independent
                  director,
                  the independent directors shall annually elect or reaffirm by majority
                  vote a Lead Independent Director. The holder of the Lead Independent
                  Director position shall rotate at least once every two years. In
                  addition
                  to the duties of all Board members, which shall not be limited
                  or
                  diminished by the Lead Independent Director's role, the specific
                  responsibilities of the Lead Independent Director shall be to:
                  

              

      

       

      
        	
                 

              	
                (a)

              	
                advise
                  the Chairman of the Board as to an appropriate schedule of Board
                  meetings,
                  seeking to ensure that the independent directors can perform their
                  duties
                  responsibly while not interfering with the flow of the Company's
                  operations; 

              

      

       

      
        	
                 

              	
                (b)

              	
                provide
                  the Chairman of the Board with input as to the preparation of agendas
                  for
                  Board and Committee meetings; 

              

      

       

      
        	
                 

              	
                (c)

              	
                advise
                  the Chairman of the Board as to the quality, quantity, and timeliness
                  of
                  the flow of information from the Company's management that is necessary
                  for the independent directors to effectively and responsibly perform
                  their
                  duties; and although the Company's management is responsible for
                  the
                  preparation of materials for the Board, the Lead Independent Director
                  may
                  specifically request the inclusion of certain material;
                  

              

      

       

      
        	
                 

              	
                (d)

              	
                recommend
                  to the Chairman of the Board the retention of consultants who report
                  directly to the Board; 

              

      

       

      
        	
                 

              	
                (e)

              	
                coordinate,
                  develop the agenda, and preside at executive sessions of the independent
                  directors, which shall be held at least quarterly;
                  

              

      

       

      
        	
                 

              	
                (f)

              	
                act
                  as principal liaison between the independent directors and the
                  Chairman of
                  the Board on sensitive issues; and 

              

      

       

      
        	
                 

              	
                (g)

              	
                evaluate,
                  along with the members of the Compensation Committee (consistent
                  with the
                  Compensation Committee Charter) and the full Board, the CEO's performance
                  and meet with the CEO to discuss the Board's evaluation.
                  

              

      

       

      
        	
                 

              	
                (4)

              	
                The
                  Company shall revise its articles of incorporation and/or by-laws
                  to
                  provide a reasonable procedure whereby any shareholder or group
                  of
                  shareholders who hold an aggregate of at least 20% of the Company's
                  outstanding shares may nominate a candidate for election to the
                  Board and
                  have the nominee included in the Company's annual proxy materials.
                  

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                (5)

              	
                The
                  Company shall revise its articles of incorporation and/or by-laws
                  to
                  provide that, starting as of June 1, 2007, independent directors
                  may serve
                  on the Board for no more than a total of 10 consecutive years.
                  After
                  serving a ten-year term during any period after June 1, 2007, an
                  independent director must step down from the Board for at least
                  one year
                  before seeking re-election to the Board.

              

      

       

      
        	
                 

              	
                (6)

              	
                Directors
                  shall participate in an initial orientation program upon election
                  to the
                  Board and, if required by the rules of the applicable listing exchange,
                  in
                  regular continuing education thereafter.

              

      

       

      
        	
                 

              	
                (7)

              	
                Absent
                  extraordinary circumstances, each member of the Board shall attend
                  each
                  annual shareholder meeting in person.

              

      

       

      
        	
                 

              	
                d.

              	
                Compensation
                  Committee 

              

      

       

      
        	
                 

              	
                (1)

              	
                The
                  Compensation Committee shall circulate a comprehensive and responsible
                  set
                  of assumptions, policies and procedures for determining executive
                  compensation (e.g., company
                  compensation levels should be compared to similar-sized businesses
                  in
                  similar industries or with similar profitability), and shall establish
                  objective measures for all cash and non-cash compensation, including
                  bonuses, stock options, stock grants, and benefits such as health
                  care;
                  use of company vehicles; memberships; travel for friends, relatives
                  or
                  personal trips; personal housing; and tax or legal services paid
                  for or
                  provided by the Company. 

              

      

       

      
        	
                 

              	
                (2)

              	
                At
                  least once every three years the Compensation Committee shall select
                  and
                  retain an independent consultant to conduct a comparative study
                  of the
                  Company's executive compensation policies, practices, and procedures
                  relative to other public companies and prepare and submit to the
                  Compensation Committee a report and recommendations.
                  

              

      

       

      
        	
                 

              	
                (3)

              	
                The
                  Compensation Committee shall set, in writing, annual and long-term
                  performance goals for each executive officer of the Company. The
                  Compensation Committee shall annually complete a written evaluation
                  of
                  each executive officer's performance against such goals and recommend
                  compensation (including cash bonuses, stock options, restricted
                  shares,
                  performance shares or other performance-based compensation) to
                  be awarded
                  based on whether the goals have been achieved.

              

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                e.

              	
                Audit
                  Committee 

              

      

       

      
        	
                 

              	
                (1)

              	
                At
                  least once every three years, the Audit Committee shall request
                  that its
                  independent auditing firm conduct a comprehensive review and assessment
                  of
                  the Company's internal controls and internal audit function, and
                  prepare
                  and submit to the Audit Committee a report and recommendations.
                  

              

      

       

      
        	
                 

              	
                (2)

              	
                At
                  least annually, the Audit Committee shall meet with the Company's
                  internal
                  auditors and independent auditors to review, discuss, and approve
                  the
                  Company's accounting for stock-based compensation.
                  

              

      

       

      
        f.    The
          Company represents that three current or former Section 16 officers (the
          “Section 16 Officers”) voluntarily tendered money or unexercised options to the
          Company, or otherwise committed to surrender the financial benefit that
          they may
          have received as a result of their exercise of any mispriced stock options
          that
          they were awarded since the Company became a public company (the “Tendered
          Payments”).  The Company further represents that it has not repaid any
          of the Section 16 Officers any portion of the Tendered Payments or taken
          any
          action that has the effect of repaying the Section 16 Officers the Tendered
          Payments or otherwise compensating the Section 16 Officers for any surrendered
          mispriced options.  The Company further warrants that it shall not in
          the future make any payments or take any action that has the effect of
          compensating the Section 16 Officers for any improper financial benefit
          resulting from their receipt of any options that the Company, in consultation
          with its auditors, determines were mispriced. 

      

       

      
        g.    EMCORE
          agrees that the settlement of the Actions and the remedial measures specified
          herein provide a substantial benefit to EMCORE and its shareholders.

      

       

      
        3.2   Reliance
          Upon Own
          Knowledge.  Plaintiffs expressly represent and warrant that, in
          entering into the Settlement, they relied upon their own knowledge and
          investigation (including the knowledge of and investigation performed by
          Plaintiffs’ Counsel), and not upon any promise, representation, warranty, or
          other statement made by or on behalf of any of the Defendants or their
          Related
          Persons not expressly contained in the Stipulation. 

      

      
         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

        3.3   Defendants’
Denial
          of
          Liability.  EMCORE and each of the Individual Defendants have
          denied and continue to deny all of the claims in the Actions, and have
          denied
          and continue to deny having committed, aided, or attempted to commit any
          violations of law or breach of any duty of any kind or otherwise acted
          in any
          improper manner.  Defendants are entering into the Stipulation because
          the Settlement would eliminate the expenses, burdens, and risks associated
          with
          further litigation of the Actions.  EMCORE is entering into the
          Stipulation for the further reason that it believes that the Settlement
          is in
          the best interests of EMCORE and its shareholders. 

      

      
         

        3.4   Notice.EMCORE
          shall be responsible for the cost of printing and mailing appropriate
          Court-directed individual notice to the shareholders of EMCORE entitled
          to
          receive such notice, substantially in the form of the Notice submitted
          contemporaneously herewith, and also shall be responsible for the cost
          and
          administration of any other Court-directed notice to be made by publication.
          

      

      
         

        3.5   Attorneys’
Fees
          and
          Expenses.  Subject to Court approval, EMCORE or its insurer
          shall pay, on behalf of and for the benefit of the Defendants, to Plaintiffs’
Counsel attorneys’ fees and reimbursement of expenses in the aggregate amount of
          $700,000 (the “Fees and Expenses”).  The Parties agree that the Fees
          and Expenses will be paid by the Company’s insurer on behalf of the Defendants
          into an interest-bearing escrow account with a national banking association
          and
          subject to the terms of an escrow agreement approved by the insurer within
          10
          business days of the later of (i) Defendants’ receipt of notice of the Court’s
          order approving the Settlement; and (ii) the insurer’s receipt of payee
          information.  Said monies will be paid out to Schiffrin Barroway Topaz
& Kessler, LLP, as receiving agent for Plaintiffs’ Counsel, immediately upon
          the Settlement becoming effective as set forth in paragraph 5.1
          below.  Except as expressly provided herein, Plaintiffs and
          Plaintiffs’ Counsel shall bear their own fees, costs, and expenses and no
          Defendant shall assert any claim for expenses, costs, and fees against
          Plaintiffs. 

      

      
         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

         

        3.6   Releases.  Upon
          the Effective Date, Plaintiffs, individually and derivatively on behalf
          of
          EMCORE and all other shareholders of EMCORE, and their respective heirs,
          executors, administrators, representatives, agents, successors, transferees,
          and
          assigns, will release all Released Claims against the Released
          Parties.  Plaintiffs will also release all claims against Defendants’
Counsel related to the defense of the Actions.  The Defendants shall
          also release any claims they may have against Plaintiffs and Plaintiffs’ Counsel
          related to their bringing and prosecuting the Actions. 

         

      

      
        	
                IV.

              	
                PRELIMINARY
                  ORDER AND SETTLEMENT HEARING 

              

      

      
         

        4.1   Application
          for Preliminary
          Order.  The Parties shall jointly submit the Stipulation
          together with its related documents to the Court, and the Parties shall
          apply
          for the Preliminary Order by filing proper notice and supporting papers
          with the
          Court: 

      

      
         

        a.    Approving
          the form of the Notice substantially in the form of such submitted
          contemporaneously herewith; 

      

      
         

        b.    Setting
          forth the method for providing Notice to EMCORE shareholders of the Settlement
          and Settlement Hearing; 

      

      
         

        c.    Finding
          that the methods of providing Notice set forth in the Preliminary Order
          constitute the best Notice practicable under the circumstances and meet
          all
          requirements of Rule 23.1 of the Federal Rules of Civil Procedure and due
          process; and 

      

      
         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

         

        d.    Setting
          a
          date for the Settlement Hearing to determine whether the Settlement should
          be
          approved as reasonable, adequate and in the best interests of EMCORE and
          its
          shareholders. 

         

      

      
        	
                V.

              	
                EFFECTIVE
                  DATE OF SETTLEMENT, WAIVER, OR TERMINATION

              

      

      
         

        5.1   This
          Settlement shall become effective on the Effective Date. 

      

      
         

        5.2   If
          the
          conditions identified in paragraph 1.8 fail to occur, then any of Parties
          may
          terminate the Stipulation and withdraw from the Settlement by providing
          written
          notice of such action to undersigned counsel for all of the Parties within
          thirty (30) days after the failure of such condition. In the event that
          the
          Settlement is not approved or is terminated, the Settlement and any actions
          taken in connection therewith shall be vacated and terminated and shall
          become
          null and void for all purposes, and all negotiations, transactions, and
          proceedings connected with it: (i) shall be without prejudice to the rights
          of
          any Party hereto; (ii) shall not be deemed to be or construed as evidence
          of, or
          an admission by any Party of, any fact, matter, or thing; and (iii) shall
          not be
          admissible in evidence or be used for any purpose in any subsequent proceedings
          in the Actions or any other action or proceeding. The Parties to the Stipulation
          shall be deemed to have reverted to their respective status in the Actions
          as of
          the date and time immediately prior to the execution of the MOU, and, except
          as
          otherwise expressly provided, the Parties shall proceed in all respects
          as if
          the Stipulation and any related orders had not been entered. 

      

      
         

        5.3   Standstill
          Agreement.Pending
          entry of the Final Judgment and Order based on the Settlement provided
          for in
          the Stipulation, Plaintiffs are barred and enjoined from commencing,
          prosecuting, instigating, or in any way participating in the commencement
          or
          prosecution of any action asserting any Released Claims, either directly,
          representatively, derivatively, or in any other capacity, against EMCORE
          or any
          Individual Defendant, that have been or could have been asserted, or that
          arise
          out of or relate in any way to any of the transactions or events described
          in
          the Complaints in the Actions. Plaintiffs also agree not to oppose any
          motions
          to dismiss any other proceedings to the extent any claims that are the
          subject
          of this release and dismissal contemplated by the Stipulation are asserted
          or
          continue to be asserted in any court prior to or after the entry of a judgment
          based on the Settlement in the Actions. 

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

         

      

      
        	
                VI.

              	
                MISCELLANEOUS
                  PROVISIONS 

              

      

      
         

        6.1   Cooperation
          of the
          Parties.  The Parties (a) acknowledge that it is their intent
          to consummate this Settlement, and (b) agree to cooperate to the extent
          reasonably necessary to effectuate and implement all terms and conditions
          of the
          Stipulation and to exercise their reasonable efforts to accomplish the
          foregoing
          terms and conditions of the Stipulation.  The Parties will seek the
          Court’s approval of the Preliminary Order and, when appropriate, the Final Order
          and Judgment. 

      

      
         

        6.2   Acknowledgment
          of Adequate
          Consideration.  The Parties acknowledge, represent and warrant
          to each other that the terms of the Settlement are such that each of the
          Parties
          is to receive adequate consideration for the consideration given.

      

      
         

        6.3   No
          Admissions.  Neither the Stipulation nor the Settlement, nor
          any act performed or document executed pursuant to or in furtherance of
          the
          Stipulation or the Settlement:  (a) is or may be deemed to be or may
          be used as an admission of, or evidence of the validity or lack of validity
          of
          any Released Claims, or any wrongdoing or liability of the Parties or any
          of
          their Related Persons; (b) is or may be deemed to be or may be used as
          an
          admission of, or evidence of, any fault or omission of any of the Parties
          or any
          of their Related Persons in any civil, criminal, or administrative proceeding
          in
          any court, administrative agency, or other tribunal; or (c) is or may be
          alleged
          or mentioned so as to contravene clause (a) above in any litigation or
          other
          action unrelated to the enforcement of the
          Stipulation.  Notwithstanding the foregoing, the Parties may file the
          Stipulation or any judgment or order of the Court related hereto in any
          action
          that may be brought against them in order to support a defense or a counterclaim
          based on res judicata,
          collateral estoppel, release, good-faith settlement, judgment bar or reduction,
          or any other theory of claim preclusion or issue preclusion, or similar
          defense
          or counterclaim. 

      

      
         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

        6.4   Confidentiality
          Agreements.  All agreements made during the course of the
          negotiations relating to the confidentiality of information shall survive
          the
          Stipulation and the Settlement. 

      

      
         

        6.5   Costs.Except
          as
          otherwise expressly provided herein, the Parties shall bear their own costs.
          

      

      
         

        6.6   Entire
          Agreement.  The Stipulation and all documents executed pursuant
          hereto constitute the entire agreement between the Parties with respect
          to the
          Settlement of the Actions and supersede any and all prior negotiations,
          discussions, agreements, or undertakings, whether oral or written, with
          respect
          to the Settlement of the Actions. 

      

      
         

        6.7   Counterparts.The
          Stipulation may be executed in one or more counterparts, and all such
          counterparts together shall be deemed to be one and the same instrument.
          

      

      
         

        6.8   Binding
          Effect.  The Stipulation shall be binding upon, and inure to
          the benefit of all Parties.  The Stipulation is not intended, and
          shall not be construed, to create rights in or confer benefits on any other
          Persons, and there shall not be any third-party beneficiaries hereto, except
          as
          expressly provided hereby with respect to such aforementioned Persons who
          are
          not Parties hereto. 

      

      
         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

         

        6.9   Judicial
          Enforcement.The
          Court
          shall retain jurisdiction with respect to the implementation and enforcement
          of
          the terms of the Stipulation and the Settlement, and the Parties submit
          to the
          jurisdiction of the Court for purposes of implementing and enforcing the
          terms
          of the Stipulation and Settlement. 

      

      
         

        6.10  
            Choice
          of
          Law.  The Stipulation shall be governed by the laws of the
          State of New Jersey, without regard to New Jersey’s choice of law rules.

      

      
         

        6.11  
            Warrant
          of
          Authority.Each
          counsel or person executing the Stipulation or any of the related documents
          on
          behalf of any Party hereto hereby warrants that such Person has the full
          authority to do so. 

      

      
         

        6.12  
            Waiver
          of
          Breach.  The Parties may not waive or vary any right hereunder
          except by an express written waiver or variation.  Any failure to
          exercise or any delay in exercising any of such rights, or any partial
          or
          defective exercise of such rights, shall not operate as a waiver or variation
          of
          that or any other such right.  The waiver by one Party of any breach
          of the Stipulation by another Party shall not be deemed a waiver of any
          other
          prior or subsequent breach of the Stipulation. 

      

      
         

        6.13  
            Fair
          Construction.  The Stipulation shall not be construed more
          strictly against one Party than another merely by virtue of the fact that
          it, or
          any part of it, may have been prepared by counsel for one of the Parties,
          it is
          recognized as the result of arm’s length negotiations between the Parties, and
          all Parties have contributed substantially and materially to the preparation
          of
          the Stipulation. 

      

      
         

        6.14  
            No
          Assignment of
          Claims.  Plaintiffs hereby represent and warrant that they have
          not assigned any rights, claims, or causes of action that were asserted
          or could
          have been asserted in connection with, under or arising out of any of the
          claims
          being settled or released herein. 

      

      
         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

        6.15  
            Facsimile
          and Scanned
          Signatures.Any
          signature to the Stipulation, to the extent signed and delivered by means
          of a
          facsimile machine or electronically scanned and sent via email, shall be
          treated
          in all manner and respects as an original signature and shall be considered
          to
          have the same binding legal effect as if it were the original signed version
          thereof delivered in person. At the request of a Party to the Stipulation,
          any
          other Party to the Stipulation so executing and delivering this document
          by
          means of a facsimile machine or via email shall reexecute original forms
          thereof
          and deliver them to the requesting Party. No Party to the Stipulation shall
          raise the use of a facsimile machine or email to deliver a signature or
          the fact
          that any signature or agreement was transmitted or communicated through
          the use
          of a facsimile machine as a defense to the formation or the enforceability
          of
          the Stipulation and each such Person forever waives any such defense.

      

      
         

        6.16  
            Extensions
          of
          Time.  Without further order of the Court, the Parties hereto
          may agree to reasonable extensions of time to carry out any of the provisions
          of
          the Stipulation. 

      

       

      The
        Parties have caused the Stipulation to be duly executed and delivered by
        their
        counsel of record:

       

      IT
        IS
        HEREBY AGREED by the undersigned as dated below.

       

      
        	
                DATED:  November
                  28, 2007

                
                

                
                

              	
                SCHIFFRIN
                  BARROWAY TOPAZ & KESSLER, LLP

                 

                
                

                By:     
/s/
                  Michael J.
                  Hynes         
                  

                Eric
                  Zagar

                Michael
                  Hynes

                Alison
                  Clark

                 

                
                

                280
                  King of Prussia Road

                Radnor,
                  PA  19087

                Telephone:  (610)
                  667-7706

                Facsimile:  (610)
                  667-7056

                 

                
                

                Lead
                  Counsel for Plaintiff in the Edelstein Action

                 

                
                

                LITE
                  DEPALMA GREENBERG & RIVAS, LLC

                Joseph
                  L. DePalma

                Susan
                  D. Pontonriero

                Two
                  Gateway Center, 12th
                  Floor

                Newark,
                  NJ 07102

                Tel:
                  (973) 623-6000

                Fax:
                  (973) 623-0858

                
                

                
                

                Liaison
                  Counsel for Plaintiff in the Edelstein Action

                
                

                
                

              

         

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

         

      

      
        
          	
                  DATED:  November
                    28, 2007

                	
                  KANTROWITZ,
                    GOLDHAMER & GRAIFMAN

                   

                  
                  

                  By:      /s/
                    Gary S.
                    Graifman     
                    

                  Gary
                    S. Graifman

                   

                  
                  

                  210
                    Summit Avenue

                  Montvale,
                    NJ 07645

                  Tel:
                    (201) 391-7000

                  Fax:
                    (201) 391-1086

                    

                  
                  

                  Jules
                    Brody

                  Aaron
                    Brody

                  James
                    E. Lahm

                  STULL,
                    STULL & BRODY

                  6
                    East 45th Street

                  New
                    York, NY 10017

                  Tel:
                    (212) 687-7230

                  Fax:
                    (212) 490-2022

                    

                  
                  

                  Joseph
                    H. Weiss

                  WEISS
                    & LURIE

                  551
                    Fifth Avenue

                  New
                    York, NY 10176

                  Tel:
                    (212) 682-3025

                  Fax:
                    (212) 682-3010

                    

                  
                  

                  
                  

                  Counsel
                    for Plaintiffs in the Gabaldon and Sackrison Actions

                

        

         

        
          
             

          

          
            25

            
              

            

          

          
             

          

           

        

        
          	
                  DATED:
                    November 27, 2007

                	
                  JENNER
                    & BLOCK LLP

                     

                  By:      /s/
                    Michael K.
                    Lowman     
                    

                  Michael
                    K. Lowman

                  Howard
                    S. Suskin

                     

                  330
                    North Wabash Avenue

                  Chicago,
                    IL 60611

                  Tel:  (312)
                    923-2604

                  Fax:  (312)
                    840-7604

                     

                  Richard
                    Ross

                  CARELLA,
                    BYRNE, BAIN, GILFILLAN, CECCHI, STEWART & OLSTEIN

                  5
                    Becker Farm Rd.

                  Roseland,
                    NJ 07068

                  Tel:  (973)
                    994-1700

                  Fax:  (973)
                    994-1744

                     

                  Attorneys
                    for EMCORE Corporation

                

        

        

        
          	
                  DATED:  November
                    13. 2007

                	
                     

                  By:    
 /s/
                    Jerry
                    Isenberg     
                    

                  Jerry
                    Isenberg

                  ALSTON
                    & BIRD LLP

                  The
                    Atlantic Building

                  950
                    F Street NW

                  Washington,
                    D.C. 20004

                  Tel:  (202)
                    756-5596

                  Fax:  (202)
                    654-4886

                     

                  Attorney
                    for Individual Defendants Dr. Richard A. Stall, Thomas Gmitter,
                    and Craig
                    Farley

                

        

        

        
          	
                  DATED:  November
                    9, 2007

                	
                     

                  By:    
 /s/
                    James R.
                    Doty     
                    

                  James
                    R. Doty

                  BAKER
                    BOTTS LLP

                  The
                    Warner

                  1299
                    Pennsylvania Ave, NW

                  Washington,
                    D.C.  20004

                  Tel:  (202)
                    639-7792

                  Fax:  (202)
                    585-1018

                     

                  Attorney
                    for Individual Defendant Reuben F. Richards, Jr.

                

        

         

        
          
             

          

          
            26

            
              

            

          

          
             

          

        

         

        
          	
                  DATED:  November
                    14, 2007

                	
                     

                  By:   
  /s/
                    Seymour
                    Glanzer     
                    

                  Seymour
                    Glanzer

                  DICKSTEIN
                    & SHAPIRO LLP

                  1825
                    Eye Street NW

                  Washington,
                    D.C.  20006

                  Tel:  (202)
                    420-2210

                  Fax:  (202)
                    420-2201

                     

                  Attorney
                    for Individual Defendant Robert Bogomolny

                

        

        

        
          	
                  DATED:  November
                    20, 2007

                	
                     

                  By:      /s/
                    Teresa L.
                    Davis     
                    

                  Teresa
                    L. Davis

                  KATTEN
                    MUCHIN ROSENMAN, LLP

                  525
                    West Monroe Street, Suite 1900

                  Chicago,
                    IL  60661

                  Tel:  (312)
                    902-5452

                  Fax:  (312)
                    577-4481

                  
                  

                  Attorney
                    for Individual Defendants Thomas Werthan and Scott Massie

                

        

        

        
          	
                  DATED:  November
                    9, 2007

                	
                     

                  By:  
                       /s/ Robert
                    Mahoney     
                    

                  Robert
                    Mahoney

                  NORRIS,
                    MCLAUGHLIN & MARCUS, P.A.

                  P.O.
                    Box 1018

                  Somerville,
                    NJ  08876

                  Tel:  (908)
                    722-0700

                  Fax:  (908)
                    722-0755

                     

                  Attorney
                    for Individual Defendant Howard W. Brodie

                

        

        

        
          	
                  DATED:  November
                    21, 2007

                	
                     

                  By:    
 /s/
                    Michael R.
                    Young     
                    

                  dsMichael
                    R. Young

                  WILLKIE
                    FARR & GALLAGHER, LLP

                  787
                    Seventh Avenue

                  New
                    York, NY  10019

                  Tel:  (212)
                    728-8280

                  Fax:  (212)
                    728-9280

                     

                  Attorney
                    for Individual Defendants John Gillen, Robert Louis-Dreyfus,
                    Thomas J.
                    Russell, and Charles Scott

                

        

         

        
27Exhibit

     

    NEITHER
      THIS NOTE NOR THE SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK OR COMMON
      STOCK
      OR WARRANTS ISSUABLE UPON CONVERSION OF THIS NOTE HAS BEEN REGISTERED UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, AND SUCH
      SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR STATE LAW OR AN OPINION
      OF
      COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

    

    
      	
              $1,200,000
                

            	 	
              New
                York, New York 

              December
                17, 2007     

            

    

    

    ACHIEVERS
      MAGAZINE, INC.

    

    3%
      CONVERTIBLE SUBORDINATED NOTE DUE DECEMBER 31, 2008

    

    FOR
      VALUE
      RECEIVED, Achievers Magazine, Inc., a Nevada corporation (the “Company”), hereby
      promises to pay to the order of XingGuang Investment Corporation Limited or
      registered assigns (the “Holder”), the principal amount of $1,200,000 on
      December 31, 2008 (the “Maturity Date”). Interest on the outstanding principal
      balance shall be paid at the rate of three percent (3%) per annum, payable
      on
      the Maturity Date. Interest shall be computed on the basis of a 360-day year,
      using the number of days actually elapsed. This Note is issued pursuant to
      that
      certain Securities Purchase Agreement (the “Agreement”), dated December 17,
      2007, by and among the Company and XingGuang Investment Corporation Limited.
      All
      terms defined in the Agreement and used in this Note shall have the same meaning
      in this Note as in the Agreement.

    

    Article
      1.

    Events
      of Default; Acceleration

    

    (a) Events
      of Default Defined.
      The
      entire unpaid principal amount of this Note, together with interest thereon
      shall, on written notice to the Company given by the holders of this Note,
      forthwith become and be due and payable if any one or more the following events
      (“Events of Default”) shall have occurred (for any reason whatsoever and whether
      such happening shall be voluntary or involuntary or be affected or come about
      by
      operation of law pursuant to or in compliance with any judgment, decree, or
      order of any court or any order, rule or regulation of any administrative or
      governmental body) and be continuing. An Event of Default shall
      occur:

     

    (i) if
      failure shall be made in the payment of the principal or interest on the Note
      when and as the same shall become due and such failure shall continue for a
      period of five (5) business days after such payment is due; or

     

    (ii) if
      the
      Company shall violate or breach any of the representations, warranties and
      covenants contained in the Note or the Agreement and such violation or breach
      shall continue for thirty (30) days after written notice of such breach shall
      been received by the Company from the Holder; or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii) if
      the
      Company or any Significant Subsidiary (which term shall mean any subsidiary
      of
      the Company which would be considered a significant subsidiary, as defined
      in
      Rule 1-02 of Regulation S-X of the SEC shall consent to the appointment of
      a
      receiver, trustee or liquidator of itself or of a substantial part of its
      property, or shall admit in writing its inability to pay its debts generally
      as
      they become due, or shall make a general assignment for the benefit of
      creditors, or shall file a voluntary petition in bankruptcy, or an answer
      seeking reorganization in a proceeding under any bankruptcy law (as now or
      hereafter in effect) or an answer admitting the material allegations of a
      petition filed against the Company or any Significant Subsidiary, in any such
      proceeding, or shall by voluntary petition, answer or consent, seek relief
      under
      the provisions of any other now existing or future bankruptcy or other similar
      law providing for the reorganization or winding up of corporations, or an
      arrangement, composition, extension or adjustment with its or their creditors,
      or shall, in a petition in bankruptcy filed against it or them be adjudicated
      a
      bankrupt, or the Company or any Significant Subsidiary or their directors or
      a
      majority of its stockholders shall vote to dissolve or liquidate the Company
      or
      any Significant Subsidiary other than a liquidation involving a transfer of
      assets from a Subsidiary to the Company or another Subsidiary; or

     

    (iv) if
      an
      involuntary petition shall be filed against the Company or any Significant
      Subsidiary seeking relief against the Company or any Significant Subsidiary
      under any now existing or future bankruptcy, insolvency or other similar law
      providing for the reorganization or winding up of corporations, or an
      arrangement, composition, extension or adjustment with its or their creditors,
      and such petition shall not be vacated or set aside within ninety (90) days
      from
      the filing thereof; or

     

    (v) if
      a
      court of competent jurisdiction shall enter an order, judgment or decree
      appointing, without consent of the Company or any Significant Subsidiary, a
      receiver, trustee or liquidator of the Company or any Significant Subsidiary,
      or
      of all or any substantial part of the property of the Company or any Significant
      Subsidiary, or approving a petition filed against the Company or any Significant
      Subsidiary seeking a reorganization or arrangement of the Company or any
      Significant Subsidiary under the Federal bankruptcy laws or any other applicable
      law or statute of the United States of America or any State thereof, or any
      substantial part of the property of the Company or any Significant Subsidiary
      shall be sequestered; and such order, judgment or decree shall not be vacated
      or
      set aside within ninety (90) days from the date of the entry thereof;
      or

     

    (vi) if,
      under
      the provisions of any law for the relief or aid of debtors, any court of
      competent jurisdiction shall assume custody or control of the Company or any
      Significant Subsidiary or of all or any substantial part of the property of
      the
      Company or any Significant Subsidiary and such custody or control shall not
      be
      terminated within ninety (90) days from the date of assumption of such custody
      or control.

     

    (b) Rights
      of Note Holder.
      Nothing
      in this Note shall be construed to modify, amend or limit in any way the right
      of the holder of this Note to bring an action against the Company.

     

    Article
      2.

    Conversion

    

    (a) Automatic
      Conversion.
      Upon
      the filing of both the Restated Certificate and the Certificate of Designation,
      the principal and interest of this Note shall be automatically converted into
      such number of shares of Series A Preferred Stock and Warrants to purchase
      the
      number of shares of Common Stock as is set forth on Schedule A to this Agreement
      without any action on the part of the holder. Such shares of Series A Preferred
      Stock and Warrants are referred to as the Automatic Conversion Securities.
      Upon
      such conversion, this Note and the Company’s obligations under this Note
      (including the obligation to pay interest) shall terminate. 

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    (b) Conversions
      at Option of Holder.
      This
      Note shall be initially convertible (subject to the 4.9% Limitations, as defined
      in Section 3(d) of this Note), in whole at any time or in part from time to
      time
      into such number of shares of Common Stock and Warrants to purchase such number
      of shares of Common Stock as is determined by multiplying each element of the
      Optional Conversion Securities by a fraction, the numerator of which is the
      principal amount being converted and the denominator of which is the initial
      principal amount of this Note. The Optional Conversion Securities are set forth
      on Schedule B to this Agreement. Holders shall effect conversions by providing
      the Company with the form of conversion notice attached hereto as Annex
      A
      (a
“Notice
      of Conversion”)
      executed by the Holder, together with the delivery by the Holder to the Company
      of this Note, with this Note being duly endorsed in full for transfer to the
      Company or with an applicable stock power duly executed by the Holder in the
      manner and form as deemed reasonable by the transfer agent of the Common Stock;
      provided, however, that at the election of the Holder, the Holder may execute
      the Notice of Conversion and transmit the Notice of Conversion to the Company.
      Each Notice of Conversion shall specify the principal amount of this Note to
      be
      converted, the principal amount of this Note outstanding prior to the conversion
      at issue, the principal amount of this Note owned subsequent to the conversion
      at issue, and the date on which such conversion is to be effected, which date
      may not be prior to the date the Holder delivers such Notice of Conversion
      and
      the Note to the Company by overnight delivery service or by telecopier or PDF
      (the “Conversion
      Date”).
      If no
      Conversion Date is specified in a Notice of Conversion, the Conversion Date
      shall be the Trading Day immediately following the date that such Notice of
      Conversion and applicable stock certificates are received by the Company. The
      calculations and entries set forth in the Notice of Conversion shall control
      in
      the absence of manifest or mathematical error. The principal amount of this
      Note
      being converted into Optional Conversion Securities in accordance with the
      terms
      of this Section 3(b) shall be canceled and may not be reissued. 

     

    (c) Automatic
      Conversion Upon Change of Control.
      This
      Note shall be automatically converted into the Optional Conversion Securities
      upon the close of business on the business day immediately preceding the date
      fixed for consummation of any transaction resulting in a Change of Control
      of
      the Company (an “Automatic
      Conversion Event”).
      A
“Change in Control” means a consolidation or merger of the Company with or into
      another company or entity in which the Company is not the surviving entity
      or
      the sale of all or substantially all of the assets of the Company to another
      company or entity not controlled by the then existing stockholders of the
      Company in a transaction or series of transactions. The Company shall not be
      obligated to issue certificates evidencing the Common Stock and Warrants or
      other consideration issuable upon such conversion unless this Note is either
      delivered to the Company or its transfer agent or the Holder notifies the
      Company or its transfer agent in writing that such certificates have been lost,
      stolen, or destroyed and executes an agreement satisfactory to the Company
      to
      indemnify the Company from any loss incurred by it in connection therewith.
      Upon
      the conversion of this Note pursuant to this Section 3(c), the Company shall
      promptly send written notice thereof, by hand delivery or by overnight delivery,
      to the Holder at its address then shown on the records of the Company, which
      notice shall state that this Note must be surrendered at the office of the
      Company (or of its transfer agent for the Common Stock, if
      applicable).

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    (d) Beneficial
      Ownership Limitation.
      Except
      as provided in Section 3(c) of this Note, which shall apply as stated therein
      if
      an Automatic Conversion Event shall occur, the Company shall not effect any
      conversion of this Note, and the Holder shall not have the right to convert
      any
      portion of this Note to the extent that after giving effect to such conversion,
      the Holder (together with the Holder’s Affiliates) would beneficially own in
      excess of 4.9% of the number of shares of the Common Stock outstanding
      immediately after giving effect to such conversion.  For purposes of the
      foregoing sentence, the number of shares of Common Stock beneficially owned
      by
      the Holder and its affiliates shall include the number of shares of Common
      Stock
      issuable upon conversion of the Note and upon exercise of the Warrants issued
      upon conversion of this Note with respect to which the determination of
      beneficial ownership is being made, but shall exclude the number of shares
      of
      Common Stock which would be issuable upon (A) conversion of the remaining,
      non-converted portion of this Note beneficially owned by the Holder or any
      of
      its affiliates, and (B) exercise or conversion of the unexercised or
      non-converted portion of any other securities of the Company (including
      warrants) subject to a limitation on conversion or exercise analogous to the
      limitation contained herein beneficially owned by the Holder or any of its
      affiliates, so long as such other securities of the Company are not exercisable
      nor convertible within sixty (60) days from the date of such
      determination.  For purposes of this Section 3(d), in determining the
      number of outstanding shares of Common Stock, the Holder may rely on the number
      of outstanding shares of Common Stock as reflected in the most recent of the
      following: (A) the Company’s most recent quarterly reports, Form 10-Q, Form
      10-QSB, Annual Reports, Form 10-K, or Form 10-KSB, as the case may be, as filed
      with the Commission under the Exchange Act (B) a more recent public announcement
      by the Company or (C) any other written notice by the Company or the Company’s
      transfer agent setting forth the number of shares of Common Stock
      outstanding.  Upon the written or oral request of the Holder, the Company
      shall within two (2) Trading Days confirm orally and in writing to the Holder
      the number of shares of Common Stock then outstanding.  In any case, the
      number of outstanding shares of Common Stock shall be determined after giving
      effect to the conversion or exercise of securities of the Company, including
      the
      Note, by the Holder or its affiliates since the date as of which such number
      of
      outstanding shares of Common Stock was publicly reported by the Company.
      Beneficial ownership shall be calculated in accordance with Section 13(d) of
      the
      Exchange Act. This Section 3(d) may be not be waived or amended. The limitation
      set forth in this Section 3(d) is referred to as the “4.9%
      Limitation.”

     

    (i) Reservation
      of Shares Issuable Upon Conversion.
      The
      Company covenants that it will at all times reserve and keep available out
      of
      its authorized and unissued shares of Common Stock solely for the purpose of
      issuance upon conversion of this Note and upon conversion of the Series A
      Preferred Stock issuable upon conversion of this Note and upon exercise of
      the
      Warrants issuable upon conversion of this Note, each as herein provided, free
      from preemptive rights or any other actual contingent purchase rights of persons
      other than the Holders, not less than such number of shares of the Common Stock
      as shall (subject to any additional requirements of the Company as to
      reservation of such shares set forth in the Purchase Agreement) be issuable
      upon
      the conversion of this Note including shares of Common Stock issuable upon
      exercise of any Warrants issued or issuable upon conversion of this Note. The
      Company covenants that all shares of Common Stock that shall be so issuable
      shall, upon issue, be duly and validly authorized, issued and fully paid,
      non-assessable and, if the Conversion Shares Registration Statement is then
      effective under the 1933 Act, registered for public sale in accordance with
      such
      Conversion Shares Registration Statement.

     

    (ii) Fractional
      Shares.
      Upon a
      conversion hereunder, the Company shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock. All
      fractional shares shall be carried forward and any fractional shares which
      remain after the Holder converts the full principal amount of this Note shall
      be
      dropped and eliminated.

     

    (iii) Transfer
      Taxes.
      The
      issuance of certificates for shares of the Common Stock and Warrants on
      conversion of this Note shall be made without charge to the Holders thereof
      for
      any documentary stamp or similar taxes that may be payable in respect of the
      issue or delivery of such certificate, provided that the Company shall not
      be
      required to pay any tax that may be payable in respect of any transfer involved
      in the issuance and delivery of any such certificate upon conversion in a name
      other than that of the Holder, and the Company shall not be required to issue
      or
      deliver such certificates unless or until the person or persons requesting
      the
      issuance thereof shall have paid to the Company the amount of such tax or shall
      have established to the satisfaction of the Company that such tax has been
      paid.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    (iv) Absolute
      Obligation.
      Except
      as expressly provided herein, no provision of this Note shall alter or impair
      the obligation of the Company, which is absolute and unconditional, to pay
      the
      liquidated damages (if any) on, this Note at the time, place, and rate, and
      in
      the coin or currency, herein prescribed.

     

    (e) Certain
      Adjustments.

     

    (i) Stock
      Dividends and Stock Splits.
      If the
      Company, at any time from and after the Closing Date, while this Note is
      outstanding: (A) shall pay a stock dividend or otherwise make a distribution
      or
      distributions on shares of its Common Stock or any other equity or equity
      equivalent securities payable in shares of Common Stock (which, for avoidance
      of
      doubt, shall not include any shares of Common Stock issued by the Company
      pursuant to this Note), (B) subdivide outstanding shares of Common Stock into
      a
      larger number of shares, (C) combine (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (D)
      issue
      by reclassification of shares of the Common Stock any shares of capital stock
      of
      the Company, then the number of shares of Common Stock in the Optional
      Conversion Securities shall be multiplied by a fraction of which the numerator
      shall be the number of shares of Common Stock outstanding after such event
      and
      of which the denominator shall be the number of shares of Common Stock
      (excluding treasury shares, if any) outstanding before such event. Any
      adjustment made pursuant to this Section 3(f)(i) shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution and shall become effective immediately
      after the effective date in the case of a subdivision, combination or
      re-classification.

     

    (ii) Warrants
      and Series A Preferred Stock.
      The
      number of shares of Series A Preferred Stock and the number of shares of Common
      Stock issuable upon exercise of the Warrants shall be adjusted as provided
      in
      the Certificate of Designation and in the Warrants, respectively, with respect
      to any events of the type described in this Section 3(f) which occur subsequent
      to the Closing Date.

     

    (f) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be.

     

    (g) Notice
      to Holders.
      If (A)
      the Company shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Company shall declare a redemption of the Common Stock; (C)
      the
      Company shall authorize the granting to all holders of the Common Stock rights
      or warrants to subscribe for or purchase any shares of capital stock of any
      class or of any rights; (D) the approval of any stockholders of the Company
      shall be required in connection with any reclassification of the Common Stock
      or
      any Fundamental Transaction, (E) the
      Company shall authorize the voluntary or involuntary dissolution, liquidation
      or
      winding up of the affairs of the Company; then in each case, the Company shall
      cause to be filed at each office or agency maintained for the purpose of
      conversion of this Note, and shall cause to be mailed
      to
      the Holders at their last addresses as they shall appear upon the stock
      books of
      the
      Company, at least 30 calendar days prior to the applicable record or effective
      date hereinafter specified, a notice stating (x)
      the
      date on which a record is to be taken for the purpose of such dividend,
      distribution, redemption, rights or warrants, or if a record is not to be taken,
      the date as of which the holders of the Common Stock of record to be entitled
      to
      such dividend, distributions, redemption, rights or warrants are to be
      determined or (y) the date on which such reclassification is expected to become
      effective or close, and the date as of which it is expected that holders of
      the
      Common Stock of record shall be entitled to exchange their shares of the Common
      Stock for securities, cash or other property deliverable upon such
      reclassification or Fundamental Transaction; provided, that the failure to
      mail
      such notice or any defect therein or in the mailing thereof shall not affect
      the
      validity of the corporate action required to be specified in such
      notice.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    (h) Exempt
      Issuance.
      Notwithstanding the foregoing, no adjustment in the Conversion Price will be
      made in respect of an Exempt Issuance.

     

    (i) Fundamental
      Transaction.
      If, at
      any time while this Note is outstanding, (A) the Company effects any merger
      or
      consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental Transaction”), then upon any subsequent
      conversion of this Note, the Holder shall have the right to receive, for each
      Conversion Share that would have been issuable upon such conversion absent
      such
      Fundamental Transaction, the same kind and amount of securities, cash or
      property as it would have been entitled to receive upon the occurrence of such
      Fundamental Transaction if it had been, immediately prior to such Fundamental
      Transaction, the holder of one share of Common Stock (the “Alternate
      Consideration”). For purposes of any such conversion, the determination of the
      Conversion Price shall be appropriately adjusted to apply to such Alternate
      Consideration based on the amount of Alternate Consideration issuable in respect
      of one share of Common Stock in such Fundamental Transaction, and the Company
      shall apportion the Conversion Price among the Alternate Consideration in a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration. If holders of Common Stock are given any choice
      as
      to the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any conversion of this Note following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall assume this Note. 

     

    Article
      3.

    Subordination

     

    (a) Agreement
      of Subordination.
      The
      Company, for itself, its successors and assigns, covenants and agrees, and
      the
      Holder of this Note by his or her acceptance of this Note likewise covenants
      and
      agrees, that the payment of the principal of and interest on this Note is hereby
      expressly subordinated, to the extent and in the manner hereinafter set forth,
      to the prior payment in full of all Senior Indebtedness, as hereinafter defined.
      The provisions of this Article 4 shall constitute a continuing offer to all
      persons who, in reliance upon such provision, become holders of, or continue
      to
      hold, Senior Indebtedness, and such provisions are made for the benefit of
      the
      holders of Senior Indebtedness, and such holders are hereby made obligees
      hereunder the same as if their names were written herein as such, and they
      and/or each of them may proceed to enforce such provisions.

     

    (b) Company
      Not to Make Payments with Respect to Note in Certain
      Circumstances.

     

    (i) Upon
      the
      maturity of any Senior Indebtedness by lapse of time, acceleration or otherwise,
      all principal thereof and premium, if any, and interest thereon shall first
      be
      paid in full, or such payment duly provided for in cash or in a manner
      satisfactory to the holder or holders of such Senior Indebtedness, before any
      payment is made by the Company (A) on account of the principal of or interest
      on
      this Note or (B) to acquire this Note.

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

    (ii) Upon
      the
      happening of an event of default with respect to any Senior Indebtedness, as
      such event of default is defined therein or in the instrument under which it
      is
      outstanding, permitting the holders to accelerate the maturity thereof, then,
      unless and until such event of default shall have been cured or waived or shall
      have ceased to exist, no payment shall be made by the Company (A) on account
      of
      the principal of or interest on this Note or (B) to acquire this
      Note.

     

    (iii) Subject
      to Paragraphs 4(b)(i) and (ii), as long as any Senior Indebtedness shall be
      outstanding, (A) the Company shall not make any payment of principal on this
      Note except upon the Maturity Date, and (B) the Company may pay interest on
      this
      Note as long as the payment of such principal or interest will not result in
      an
      event of default under the terms of the instruments pursuant to which the Senior
      Indebtedness is issued.

     

    (iv) In
      the
      event that, notwithstanding the provision of this Paragraph 4(b), the Company
      shall make any payment to the Holder of this Note on account of the principal
      of
      or interest on this Note after the happening of a default in payment of the
      principal of or premium, if any, or interest on Senior Indebtedness or after
      receipt by the Company of written notice of an event of default with respect
      to
      any Senior Indebtedness, then unless and until such default or event of default
      shall have been cured or waived or shall have ceased to exist, such payment
      shall be held by the holder of this Note in trust for the benefit of, and shall
      be paid forthwith over and delivered to, the holders of Senior Indebtedness
      (pro
      rata as to each of such holders on the basis of the respective amounts of Senior
      Indebtedness held by them) or their representative or the trustee under the
      indenture or other agreement (if any) pursuant to which any instruments
      evidencing any Senior Indebtedness may have been issued, as their respective
      interests may appear, for application to the payment of all Senior Indebtedness
      remaining unpaid to the extent necessary to pay all Senior Indebtedness in
      full
      in accordance with the terms of such Senior Indebtedness, after giving effect
      to
      any concurrent payment or distribution to or for the holders of Senior
      Indebtedness.

     

    (c) Notes
      Subordinated to Prior Payment of all Senior Indebtedness on Dissolution,
      Liquidation or Reorganization of Company.
      Upon
      any distribution of assets of the Company upon any dissolution, winding up,
      liquidation or reorganization of the Company (whether in bankruptcy, insolvency
      or receivership proceedings or upon an assignment for the benefit of creditors
      or otherwise):

     

    (i) The
      holders of all Senior Indebtedness shall first be entitled to receive payment
      in
      full of the principal thereof, premium, if any, and interest due thereon before
      the holder of this Note are entitled to receive any payment on account of the
      principal of or interest on this Note (other than securities of the Company
      or
      any other entity provided for by a plan of reorganization or readjustment which
      stock and securities are subordinated to the payment of all Senior Indebtedness
      and securities received in lieu thereof which may at the time be outstanding);
      and

     

    (ii) Any
      payment or distribution of assets of the Company of any kind or character
      whether in cash, property or securities (other than securities that are
      subordinated to the payment of all Senior Indebtedness and securities received
      in lieu thereof which may at the time be outstanding), to which the holder
      of
      this Note would be entitled except for the provisions of this Article 4, shall
      be paid by the liquidating trustee or agent or other person making such payment
      of distribution, whether a trustee in bankruptcy, a receiver or liquidating
      trustee or other trustee or agent, directly to the holders of Senior
      Indebtedness or their representative or representatives, or to the trustee
      or
      trustees under any indenture under which any instruments evidencing any of
      such
      Senior Indebtedness may have been issued, to the extent necessary to make
      payment in full of all Senior Indebtedness remaining unpaid, after giving effect
      to any concurrent payment or distribution or provision therefor to the holders
      of such Senior Indebtedness.

     

    
      
        
        

      

      
        -
          7
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    (iii) In
      the
      event that, notwithstanding the foregoing provision of this Paragraph 4(c),
      any
      payment or distribution of assets of the Company of any kind or character,
      whether in cash, property or securities (other than shares representing equity
      of the Company as reorganized or readjusted, or securities of the Company or
      any
      other entity provided for by a plan of reorganization or readjustment which
      stock and securities are subordinated to the payment of all Senior Indebtedness
      and securities received in lieu thereof which may at the time be outstanding),
      shall be received by the holder of this Note on account of principal of or
      interest on this Note before all Senior Indebtedness is paid in full, or
      effective provision made for its payment or distribution, such payment or
      distribution shall be received and held in trust for and shall be paid over
      to
      the holders of the Senior Indebtedness remaining unpaid or unprovided for or
      their representative or representatives, or to the trustee or trustees under
      any
      indenture under which any instruments evidencing any of such Senior Indebtedness
      may have been issued, for application to the payment of such Senior Indebtedness
      until all such Senior Indebtedness shall have been paid in full, after giving
      effect to any concurrent payment or distribution or provision therefor to the
      holders of such Senior Indebtedness.

     

    (d) Noteholder
      to be Subrogated to Right of Holders of Senior Indebtedness.
      Subject
      to the payment in full of all Senior Indebtedness, the holders of the Notes
      shall be subrogated, pro rata, to the rights of the holders of Senior
      Indebtedness to receive payments or distributions of assets of the Company
      applicable to the Senior Indebtedness until all amounts owing on the Notes
      shall
      be paid in full, and, for the purpose of such subrogation, no payments or
      distributions to the holders of the Senior Indebtedness by or on behalf of
      the
      Company or by or on behalf of the holder of this Notes by virtue of this Article
      4 which otherwise would have been made to the holder of this Notes shall, as
      between the Company and the holder of this Note, be deemed to be payment by
      the
      Company to or on account of the Senior Indebtedness, it being understood that
      the provisions of this Article 4 are, and are intended solely, for the purpose
      of defining the relative rights of the holders of the Notes, on the one hand,
      and the holders of the Senior Indebtedness, on the other hand.

     

    (e) Obligation
      of the Company Unconditional.
      Nothing
      contained in this Article 4 or elsewhere in this Note is intended to or shall
      impair as between the Company and the holder of this Note, the obligation of
      the
      Company, which is absolute and unconditional, to pay to the holder of this
      Note
      the principal of and interest on this Note as and when the same shall become
      due
      and payable in accordance with its terms, or is intended to or shall affect
      the
      relative rights of the holder of this Note and creditors of the Company other
      than the holders of the Senior Indebtedness, nor shall anything herein or
      therein prevent the holder of this Note of this Note from exercising all
      remedies otherwise permitted by applicable law upon default under this Note,
      subject to the rights, if any, under this Article 4 of the holders of Senior
      Indebtedness in respect of cash, property or securities of the Company received
      upon the exercise of any such remedy; provided, however, that the holder of
      this
      Note shall not exercise any remedies if the exercise of such remedies would
      result in an event of default under the terms of the Senior Indebtedness. Upon
      any distribution of assets of the Company referred to in this Article 4, the
      holders of this Note shall be entitled to rely upon any order or decree made
      by
      any court of competent jurisdiction in which any dissolution, winding up,
      liquidation or reorganization proceedings are pending, or a certificate of
      the
      liquidating trustee or agent or other person making any distribution to the
      holder of this Note for the purpose of ascertaining the persons entitled to
      participate in such distribution, the holders of the Senior Indebtedness and
      other indebtedness of the Company, the amount thereof or payable thereon, the
      amount or amounts paid or distributed thereon and all other facts pertinent
      thereto or to this Article 4. In no event shall any provision of this Article
      4
      be interpreted as limiting or abrogating the right of the holder of this Note
      to
      convert principal and interest thereon pursuant to Article 3 of this
      Note.

     

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

     

    (f) Subordination
      Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior
      Indebtedness.
      No
      right of any present or future holders of any Senior Indebtedness to enforce
      subordination as herein provided shall at any time in any way be prejudiced
      or
      impaired by any act or failure to act on the part of the Company or by any
      act
      or failure to act, in good faith, by any such holder, or by any noncompliance
      by
      the Company with the terms, provisions and covenants of this Note, regardless
      of
      any knowledge thereof which any such holder may have or be otherwise charged
      with.

     

    (g) Definition
      of Senior Indebtedness.
      The
      term “Senior Indebtedness” is defined to mean the principal of and premium, if
      any, and interest on and any obligations of the Company with respect to the
      Company’s indebtedness to all indebtedness and obligations (other than the
      Notes) of the Company to banks, insurance companies and other institutional
      lenders.

     

    (h) Additional
      Agreement.
      The
      holder of this Note, by its acceptance of this Note, agrees to execute any
      formal instruments of subordination which may be reasonably requested by any
      holder of Senior Indebtedness. 

     

    Article
      4.

    Miscellaneous

    

    (a) Transferability.
      This
      Note shall not be transferred except in a transaction exempt from registration
      pursuant to the 1933 Act and applicable state securities law. The Company shall
      treat as the owner of this Note the person shown as the owner on its books
      and
      records.

     

    (b) Limited
      Right of Prepayment.
      The
      Company shall have no right to prepay this Note without the prior written
      consent of the Holder, which consent may be given or withheld by the Holder
      in
      its sole discretion. Any prepayment shall be accompanied by interest on this
      Note to the date of prepayment.

     

    (c) WAIVER
      OF TRIAL BY JURY.
      IN ANY
      LEGAL PROCEEDING TO ENFORCE PAYMENT OF THIS NOTE, THE COMPANY WAIVES TRIAL
      BY
      JURY.

     

    (d) WAIVER
      OF ANY RIGHT OF COUNTERCLAIM.
      EXCEPT
      AS PROHIBITED BY LAW, THE COMPANY HEREBY WAIVES ANY RIGHT TO ASSERT ANY CLAIM
      IT
      MAY HAVE AGAINST THE HOLDER OF THIS NOTE BY WAY OF A COUNTERCLAIM (OTHER THAN
      A
      COMPULSORY COUNTERCLAIM) IN ANY ACTION ON THIS NOTE.

     

    (e) Usury
      Saving Provision.
      All
      payment obligations arising under this Note are subject to the express condition
      that at no time shall the Company be obligated or required to pay interest
      at a
      rate which could subject the holder of this Note to either civil or criminal
      liability as a result of being in excess of the maximum rate which the Company
      is permitted by law to contract or agree to pay. If by the terms of this Note,
      the Company is at any time required or obligated to pay interest at a rate
      in
      excess of such maximum rate, the applicable rate of interest shall be deemed
      to
      be immediately reduced to such maximum rate, and interest thus payable shall
      be
      computed at such maximum rate, and the portion of all prior interest payments
      in
      excess of such maximum rate shall be applied and shall be deemed to have been
      payments in reduction of principal.

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

     

    (f) Notice
      to Company.
      Notice
      to the Company shall be given to the Company at its principal executive offices,
      presently located at c/o
      Xinghe
      Xingyong Carbon Co., Ltd., 787 Xicheng Wai, Chengguantown, Xinghe County, Inner
      Mongolia, China, Attention:
      Dengyong
      Jin, CEO, with a copy to Asher S. Levitsky PC, Sichenzia Ross Friedman Ference
      LLP, 61 Broadway, 32 Floor, New York, NY 10006, or to such other address or
      person as the Company may, from time to time, advise the holder of this Note,
      or
      to the holder of this Note at the address set forth on the Company’s records.
      Notice shall be given by hand delivery, certified or registered mail, return
      receipt requested, overnight courier service which provides evidence of
      delivery, or by telecopier if confirmation of receipt is given or of
      confirmation of transmission is sent as herein provided.

     

    (g) Governing
      Law.
      This
      Note shall be governed by the laws of the State of New York applicable to
      agreements executed and to be performed wholly within such state. The Company
      hereby (i) consents to the exclusive jurisdiction of the United States District
      Court for the Southern District of New York and Supreme Court of the State
      of
      New York in the County of New York in any action relating to or arising out
      of
      this Note, (ii) agrees that any process in any such action may be served upon
      it
      either (x) by certified or registered mail, return receipt requested, or by
      an
      overnight courier service which obtains evidence of delivery, with the same
      full
      force and effect as if personally served upon him in New York City or (y) any
      other manner permitted by law, and (iii) waives any claim that the jurisdiction
      of any such tribunal is not a convenient forum for any such action and any
      defense of lack of in personam jurisdiction with respect thereto.

     

    (h) Expenses.
      In the
      event that the Holder commences a legal proceeding in order to enforce its
      rights under this Note, the Company shall pay all reasonable legal fees and
      expenses incurred by the holder with respect thereto.

     

    IN
      WITNESS WHEREOF, the Company has executed this Note as of the date and year
      first aforesaid.

    

      
        	 	
                ACHIEVERS
                  MAGAZINE, INC.

              
	 	 
	 	 
	 	
                By:
                  /s/ Dengyong Jin, CEO

              	 
	 	
                Dengyong
                  Jin, CEO

              

      

    

     

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    

    NOTICE
      OF
      CONVERSION

     

    [To
      be
      Signed Only Upon Conversion

    of
      Part
      or All of Notes]

    

    Achievers
      Magazine, Inc.

    

    The
      undersigned, the holder of the foregoing Note, hereby surrenders such Note
      for
      conversion into shares of Common Stock of Achievers Magazine, Inc. to the extent
      of $       * unpaid principal amount of due
      on such Note, and requests that the certificates for such shares and Warrants
      be
      issued in the name
      of                                                                       
,
      and
      delivered
      to                                                           
,
      whose
      address
      is                                                                                           
.

    

    Dated:                                                   
      

    

      
        	 	 
	
                (Signature)

              	 

      

    

     

    (Signature
      must conform in all respects to name of holder as specified on the face of
      the
      Note.)

     

    * Insert
      here the unpaid principal amount of the Note (or, in the case of a partial
      conversion, the
      portion thereof as to which the Note is being converted). In the case of a
      partial conversion, a new Note will be issued and delivered, representing the
      unconverted portion of the unpaid principal amount of this Note, to or upon
      the
      order of the holder surrendering such Note.

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

    Schedule
      A –
      Automatic
      Conversion Securities

    

    The
      number determined by dividing the principal amount of this Note by $1,200,000
      and multiplying the result by each of the following (i) 1,200,499 
      shares
      of the Company’s Series A Convertible Preferred Stock, par value $.001 per share
      (“Series A Preferred Stock”), with each share of Series A Preferred Stock being
      initially convertible into one (1) share of the Company’s Common Stock, par
      value $.001 per share, subject to adjustment, (ii) Warrants to purchase
      3,000,000 shares of Common Stock at $1.20 per share, and (iii) Warrants to
      purchase 3,000,000 shares of Common Stock at $1.20 per share. The number of
      shares of Common Stock and the number of shares of Common Stock issuable upon
      exercise of Warrants that were issued as Optional Conversion Securities shall
      reduce, on a share for share basis, the number of shares of Series A Preferred
      Stock and the number of shares issuable upon exercise of Warrants, respectively,
      issuable as Automatic Conversion Securities.

    

    Schedule
      B – Optional Conversion Securities 

    

    The
      number determined by dividing the principal amount of this Note by $1,200,000
      and multiplying the result by each of the following (i) 1,200,499 shares
      of
      the Common Stock, subject to adjustment, (ii) Warrants to purchase 3,000,000
      shares of Common Stock at $1.20 per share, and (iii) Warrants to purchase
      3,000,000 shares of Common Stock at $2.00 per share.

    

    
      
        
        

      

      
        -
          12
          -

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