Document:

Exhibit
      4.1

    

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this "Agreement")
      is made
      and entered into as of June 29th,
      2007,
      by and among China Agritech, Inc., a Delaware corporation (the "Company"),
      and
      the investors signatory hereto (each an "Investor"
      and
      collectively, the "Investors").

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Investors (the "Purchase
      Agreement").

     

    The
      Company and the Investors hereby agree as follows: 

     

    Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement will have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms have the respective
      meanings set forth in this Section 1:

     

    "Commission
      Comments"
      means
      written comments
      pertaining solely to Rule 415 which
      are
      received by the Company from the Commission, and a copy of which shall have
      been
      provided by the Company to the Holders, to a filed Registration Statement which
      requires the Company to limit the amount of shares which may be included therein
      to a number of shares which is less than such amount sought to be included
      thereon as filed with the Commission.

     

    "Effective
      Date"
      means,
      as to a Registration Statement, the date on which such Registration Statement
      is
      first declared effective by the Commission.

     

    “Effectiveness
      Date”
      means

     

    with
      respect to the initial Registration Statement required to be filed under Section
      2(a), the earlier of

     

    (i)
      the
      120th
      day
      following the Filing Date, and 

     

    (ii)
      the
      fifth Trading Day following the date on which the Company is notified by the
      Commission that the initial Registration Statement will not be reviewed or
      is no
      longer subject to further review and comments; 

     

    with
      respect to a Registration Statement required to be filed under Section 2(b),
      the
      earlier of 

     

    (i)
      the
      60th
      day
      following the Filing
      Date for any Registration
      Statement required to be filed under Section 2(b),
      and

     

    (ii)
      the
      fifth Trading Day following the date on which the Company is notified by the
      Commission that such Registration Statement will not be reviewed or is no longer
      subject to further review and comments; and 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    with
      respect to a Registration Statement required to be filed under Section 2(c),
      the
      earlier of 

     

    (i)
      the
      120th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock, and

     

    (ii)
      the
      fifth Trading Day following the date on which the Company is notified by the
      Commission that the initial Registration Statement will not be reviewed or
      is no
      longer subject to further review and comments.

     

    "Effectiveness
      Period"
      means,
      as to any Registration Statement required to be filed pursuant to this
      Agreement, the period commencing on the Effective Date of such Registration
      Statement and ending on the earliest to occur of 

     

    (a)
      the
      second anniversary of such Effective Date, 

     

    (b)
      such
      time as all of the Registrable Securities covered by such Registration Statement
      have been publicly sold by the Holders of the Registrable Securities included
      therein, or 

     

    (c)
      such
      time as all of the Registrable Securities covered by such Registration Statement
      may be sold by the Holders pursuant to Rule 144(k) as determined by the counsel
      to the Company pursuant to a written opinion letter to such effect, addressed
      and acceptable to the Company's transfer agent and the affected
      Holders.

     

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

     

    "Filing
      Date"
      means

     

    (a)
      with
      respect to the initial Registration Statement required to be filed under Section
      2(a), the 45th
      day
      following the Closing Date,

     

    (b)
      with
      respect to any Registration Statements required to be filed under Section 2(b),
      each such Registration Statement shall be filed by the earlier of

     

    (i)
      for
      the initial Registration Statement required to be filed under Section 2(b),
      (A)
      the six-month anniversary of the Effective Date of the Registration Statement
      required to be filed under Section 2(a) and (B) the 60th
      day
      following such time as 75% of all Registrable Securities which are included
      in
      the Registration Statement required to be filed under Section 2(a) have been
      sold1 

     

    (ii)
      for
      all subsequent Registration Statements to be filed under Section 2(b), (A)
      the
      six-month anniversary of the Effective Date of the immediately preceding
      Registration Statement required to be filed under Section 2(b) and (B) the
      60th
      day
      following such time as 75% of all Registrable Securities which are included
      in
      the immediately preceding Registration Statement required to be filed under
      Section 2(b) have been sold* ,
      and

     

    
      
        

      

      *To
        be
        discussed: what is the procedure for monitoring selling by Investors and
        allowing Investors to know whether this condition has been
        triggered?

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    such
      time
      as 75% of all Registrable Securities which are included in the immediately
      preceding Registration Statement required to be filed under Section 2(b) have
      been sold* ,
      and

     

    (c)
      with
      respect to a Registration Statement required to be filed under Section 2(c),
      the
      30th
      day
      following the date on which the Company becomes eligible to utilize Form S-3
      to
      register the resale of Common Stock.

     

    "Holder"
      or
"Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
      has the
      meaning set forth in Section 5(c).

     

    “Indemnifying
      Party”
      has the
      meaning set forth in Section 5(c).

     

    “Losses”
      has the
      meaning set forth in Section 5(a).

     

    “New
      York Courts”
      means
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan.

     

    "Proceeding"
      means an
      action, claim, suit, investigation or proceeding (including, without limitation,
      an investigation or partial proceeding, such as a deposition), whether commenced
      or threatened.

     

    “Prospectus”
      means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by a Registration Statement,
      all
      other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus, and any free writing prospectus
      related to any of the foregoing.

     

    "Registrable
      Securities"
      means:
      (i) the Shares, (ii) any shares of Common Stock issuable upon exercise of
      warrants issued to any placement agent as compensation in connection with the
      financing that is the subject of the Purchase Agreement ("Placement
      Agent Warrant Shares"),
      and
      (iii) any securities issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event, or any exercise price
      adjustment with respect to any of the securities referenced in (i) or (ii)
      above.

     

    "Registration
      Statement"
      means
      the initial registration statement required to be filed in accordance with
      Section 2(a) and any additional registration statement(s) required to be filed
      under Section 2(b) and 2(c) including (in each case) the Prospectus, amendments
      and supplements to such registration statements or Prospectus, including pre-
      and post-effective amendments, all exhibits thereto, and all material
      incorporated by reference or deemed to be incorporated by reference
      therein.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

     

    "Shares"
      means
      the shares of Common Stock issued, issuable to the Investors pursuant to the
      Purchase Agreement and transferrable pursuant to the Make Good Escrow
      Agreement.

     

    Registration.
      

     

    On
      or
      prior to the applicable Filing Date, the Company shall prepare and file with
      the
      Commission a Registration Statement covering the resale of all Registrable
      Securities not already covered by an existing and effective registration
      statement for an offering to be made on a continuous basis pursuant to Rule
      415,
      on Form S-1 (or on such other form appropriate for such purpose). As of the
      date
      of this Agreement, the Company does not intend for the Registration Statement
      to
      cover the resale of any Registrable Securities issued after the performance
      of
      the Purchase Agreement. Furthermore, such Registration Statement shall contain
      (except if otherwise required pursuant to written comments received from the
      Commission upon a review of such Registration Statement) the "Plan of
      Distribution" attached hereto as Annex A. The Company shall cause such
      Registration Statement to be declared effective under the Securities Act
      as
      soon as
      possible but, in any event, no later than its Effectiveness Date, and shall
      use
      its reasonable best efforts to keep the Registration Statement continuously
      effective during the entire Effectiveness Period. The initial Registration
      Statement shall contain 1) the Shares, 2) the Placement Agent Warrant Shares
      and
      3) the securities set forth on Schedule
      3.1(w)
      to the
      Purchase Agreement. In the event that the amount of securities which may be
      included in the Registration Statement filed pursuant to this Section 2(a)
      is
      limited due to Commission Comments, the number of securities being registered
      for resale by each selling stockholder on such Registration Statement shall
      be
      cut back pro rata in relation to the aggregate number of securities of the
      Company being cut back and removed from such Registration Statement. By 5:00
      p.m. (New York City time) on the Business Day immediately following the
      Effective Date of such Registration Statement, the Company shall file with
      the
      Commission in accordance with Rule 424 under the Securities Act the final
      prospectus to be used in connection with sales pursuant to such Registration
      Statement (whether or not such filing is technically required under such
      Rule).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    If
      all of
      the Registrable Securities to be included in the Registration Statement filed
      pursuant to Section 2(a) cannot be so included due to Commission Comments,
      then
      the Company shall prepare and file by the applicable
      Filing
      Date for such Registration Statement(s),
      such
      number of
      additional Registration Statements
      as may be necessary in order to ensure that
      all
      Registrable Securities are
      covered
      by an existing and effective Registration Statement. Accordingly,
      if for example, an initial Registration Statement is filed under Section 2(b)
      to
      register Registrable Securities removed from a Registration Statement filed
      under Section 2(a) due to Commission Comments and Commission Comments again
      require shares to be removed for such newly filed Registration Statement under
      this Section 2(b), then the Company will prepare and file additional
      Registration Statements until such time as all such required shares are covered
      by effective Registration Statements. Any Registration Statements to be filed
      under this Section shall be
      for an
      offering to be made on a continuous basis pursuant to Rule 415, on Form S-1
      (or
      on such other form appropriate for such purpose). Such Registration Statement
      shall contain (except if otherwise required pursuant to written comments
      received from the Commission upon a review of such Registration Statement)
      the
      "Plan of Distribution" attached hereto as Annex
      A.
      The
      Company shall cause such Registration Statement to be declared effective under
      the Securities Act as soon as possible but, in any event, by its Effectiveness
      Date, and shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period. In the event that the amount of securities which may
      be
      included in any such Registration Statement filed pursuant to this section
      is
      limited due to Commission Comments, the number of securities being registered
      for resale by each selling stockholder on such Registration Statement shall
      be
      cut back pro rata in relation to the aggregate number of securities of the
      Company being cut back and removed from such Registration Statement. By 5:00
      p.m. (New York City time) on the Business Day immediately following the
      Effective Date of such Registration Statement, the Company shall file with
      the
      Commission in accordance with Rule 424 under the Securities Act the final
      prospectus to be used in connection with sales pursuant to such Registration
      Statement (whether or not such filing is technically required under such
      Rule).

     

    Promptly
      following any date on which the Company becomes eligible to use a registration
      statement on Form S-3 to register the Registrable Securities for resale, the
      Company shall file a registration statement on Form S-3 covering the Registrable
      Securities (or a post-effective amendment on Form S-3 to the then effective
      Registration Statement) and shall cause such Registration Statement to
      filed by the Filing Date for such Registration Statement and declared effective
      as soon as possible thereafter, but in any event prior to the Effectiveness
      Date
      therefor. Such Registration Statement shall contain (except if otherwise
      required pursuant to written comments received from the Commission upon a review
      of such Registration Statement) the "Plan of Distribution" attached hereto
      as
Annex
      A.
      The
      Company shall use its reasonable best efforts to keep such Registration
      Statement continuously effective under the Securities Act during the entire
      Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day
      immediately following the Effective Date of such Registration Statement, the
      Company shall file with the Commission in accordance with Rule 424 under the
      Securities Act the final prospectus to be used in connection with sales pursuant
      to such Registration Statement (whether or not such filing is technically
      required under such Rule).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    If:
      

     

    (i)
      a
      Registration Statement is not filed on or prior to its Filing Date covering
      the
      Registrable Securities required under this Agreement to
      be
      included therein (if the Company files a Registration Statement without
      affording the Holders the opportunity to review and comment on the same as
      required by Section 3(a) hereof, the Company shall not be deemed to have
      satisfied this clause (i)), or 

     

    (ii)
      a
      Registration Statement is not declared effective by the Commission on or prior
      to its required Effectiveness Date, or if by the Business Day immediately
      following the Effective Date the Company shall not have filed a “final”
prospectus for the Registration Statement with the Commission under Rule 424(b)
      in accordance with Section 2(a), 2(b) or 2(c) herein, as the case may be
      (whether or not such a prospectus is technically required by such Rule), or
      

     

    (iii)
      after its Effective Date, without regard for the reason thereunder or efforts
      therefor, such Registration Statement ceases for any reason to be effective
      and
      available to the Holders as to all Registrable Securities to which it is
      required to cover at any time prior to the expiration of its Effectiveness
      Period for more than an aggregate of 30 Trading Days (which need not be
      consecutive) 

     

    (any
      such
      failure or breach being referred to as an “Event,” and for purposes of clauses
      (i) or (ii) the date on which such Event occurs, or for purposes of clause
      (iii)
      the date which such 30 Trading Day-period is exceeded, being referred to as
      “Event Date”),

     

    then
      in
      addition to any other rights the Holders may have hereunder or under applicable
      law: on such Event Date and on each monthly anniversary of each such Event
      Date
      (if the applicable Event shall not have been cured by such date) until the
      applicable Event is cured the Company shall pay to each Holder an amount in
      cash, as partial liquidated damages and not as a penalty, equal to 2.0% of
      the
      aggregate Investment Amount paid by such Holder for Shares pursuant to the
      Purchase Agreement. The parties agree that the Company will not be liable for
      liquidated damages under this Agreement with respect to any Placement Agent
      Warrant Shares. The Company be liable for liquidated damages as provided by
      this
      Section at the rate of 2.0% of the aggregate Investment Amount paid by the
      Holder for Shares pursuant to the Purchase Agreement per month until the maximum
      aggregate liquidated damages payable to a Holder under this Agreement of fifteen
      percent (15%) of the aggregate Investment Amount paid by such Holder pursuant
      to
      the Purchase Agreement shall be paid. Once the maximum aggregate liquidated
      damages payable to a Holder under this Agreement of fifteen percent (15%) of
      the
      aggregate Investment Amount paid by such Holder pursuant to the Purchase
      Agreement shall be paid the Company shall have no further liability for the
      occurrence of such Event. The partial liquidated damages pursuant to the terms
      hereof shall apply on a daily pro-rata basis for any portion of a month prior
      to
      the cure of an Event, except in the case of the first Event Date. The Company
      shall not be liable for liquidated damages under this Agreement as to any
      Registrable Securities which are not permitted by the Commission to be included
      in a Registration Statement due solely to Commission Comments from the time
      that
      it is determined that such Registrable Securities are not permitted to be
      registered solely due to Commission Comments until such time as the provisions
      of this Agreement as to the next applicable Registration Statement required
      to
      be filed hereunder are triggered, in which case the provisions of this Section
      2(d) shall once again apply, if applicable.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Each
      Holder agrees to furnish to the Company a completed Questionnaire in the form
      attached to this Agreement as Annex
      B
      (a
“Selling Holder Questionnaire”). The Company shall not be required to include
      the Registrable Securities of a Holder in a Registration Statement and shall
      not
      be required to pay any liquidated or other damages under Section 2(d) to any
      Holder who fails to furnish to the Company a fully completed Selling Holder
      Questionnaire at least two Trading Days prior to the Filing Date (subject to
      the
      requirements set forth in Section 3(a)). 

     

    Registration
      Procedures.

     

    In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

    Not
      less
      than four Trading Days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, or comparable
      statements under securities or Blue Sky laws of any jurisdiction, the Company
      shall furnish to each Holder a copy of such documents as proposed to be filed
      which documents will be subject to the review of such Holder. The Company shall
      not file a Registration Statement, any Prospectus or any amendments or
      supplements thereto to which any Investor reasonably objects (provided that
      if
      the Company is unable to file a Registration Statement or the filing of a
      Registration Statement is delayed due to such Investor objections the Company
      shall not be liabile to make any payment under Section 2(d) due to such delay
      or
      inability to file a Registration Statement) or in which the “Selling
      Stockholder” section thereof differs from the disclosure received from a Holder
      in its Selling Holder Questionnaire (as amended or supplemented). The Company
      shall not file a Registration Statement, any Prospectus or any amendments or
      supplements thereto in which due to Commission Comments, it 

     

    (i)
      characterizes any Holder as an underwriter, 

     

    (ii)
      excludes a particular Holder due to such Holder refusing to be named as an
      underwriter, or 

     

    (iii)
      reduces the number of Registrable Securities being registered on behalf of
      a
      Holder except in accordance with Article 2 of this Agreement, 

     

    in
      each
      case of clauses (a)(i) through (a)(iii) without such Holder’s express written
      authorization.

     

    (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to each Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep such Registration Statement continuously
      effective as to the applicable Registrable Securities for its Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so supplemented
      or
      amended to be filed pursuant to Rule 424; (iii) respond as promptly as
      reasonably possible to any comments received from the Commission with respect
      to
      each Registration Statement or any amendment thereto and, as promptly as
      reasonably possible provide the Holders true and complete copies of all
      correspondence from and to the Commission relating to such Registration
      Statement that would not result in the disclosure to the Holders of material
      and
      non-public information concerning the Company; and (iv) comply in all material
      respects with the provisions of the Securities Act and the Exchange Act with
      respect to the Registration Statements and the disposition of all Registrable
      Securities covered by each Registration Statement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Notify
      the Holders as promptly as reasonably possible (and, in the case of (i)(A)
      below, not less than three Trading Days prior to such filing and, in the case
      of
      (v) below, not less than three Trading Days prior to the financial statements
      in
      any Registration Statement becoming ineligible for inclusion therein) and (if
      requested by any such Person) confirm such notice in writing no later than
      one
      Trading Day following the day 

     

    (i)(A)
      when a Prospectus or any Prospectus supplement or post-effective amendment
      to a
      Registration Statement is proposed to be filed; (B) when the Commission notifies
      the Company whether there will be a "review" of such Registration Statement
      and
      whenever the Commission comments in writing on such Registration Statement
      (the
      Company shall provide true and complete copies thereof and all written responses
      thereto to each of the Holders that pertain to the Holders as a Selling
      Stockholder or to the Plan of Distribution, but not information which the
      Company believes would constitute material and non-public information); and
      (C)
      with respect to each Registration Statement or any post-effective amendment,
      when the same has become effective, 

     

    (ii)
      of
      any request by the Commission or any other federal or state governmental
      authority for amendments or supplements to a Registration Statement or
      Prospectus or for additional information, 

     

    (iii)
      of
      the issuance by the Commission of any stop order suspending the effectiveness
      of
      a Registration Statement covering any or all of the Registrable Securities
      or
      the initiation of any Proceedings for that purpose, 

     

    (iv)
      of
      the receipt by the Company of any notification with respect to the suspension
      of
      the qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening of
      any
      Proceeding for such purpose, and 

     

    (v)
      of
      the occurrence of any event or passage of time that makes the financial
      statements included in a Registration Statement ineligible for inclusion therein
      or any statement made in such Registration Statement or Prospectus or any
      document incorporated or deemed to be incorporated therein by reference untrue
      in any material respect or that requires any revisions to such Registration
      Statement, Prospectus or other documents so that, in the case of such
      Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Use
      its
      reasonable best efforts to avoid the issuance of, or, if issued, obtain the
      withdrawal of (i) any order suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

     

    Furnish
      to each Holder, without charge, at least two conformed copies of each
      Registration Statement and each amendment thereto and all exhibits to the extent
      requested by such Person (including those previously furnished) promptly after
      the filing of such documents with the Commission.

     

    Promptly
      deliver to each Holder, without charge, as many copies of each Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request. The Company hereby
      consents to the use of such Prospectus and each amendment or supplement thereto
      by each of the selling Holders in connection with the offering and sale of
      the
      Registrable Securities covered by such Prospectus and any amendment or
      supplement thereto.

     

    Prior
      to
      any public offering of Registrable Securities, register or qualify such
      Registrable Securities for offer and sale under the securities or Blue Sky
      laws
      of all jurisdictions within the United States as any Holder may request, to
      keep
      each such registration or qualification (or exemption therefrom) effective
      during the Effectiveness Period and to do any and all other acts or things
      necessary or advisable to enable the disposition in such jurisdictions of the
      Registrable Securities covered by the Registration Statements. If any
      registration statement or comparable statement under Blue Sky laws refers to
      any
      Holder by name or otherwise as the Holder of any Shares, then such Holder shall
      have the right to require (i) the insertion therein of language, in form and
      substance reasonably satisfactory to such Holder and the Company, to the effect
      that the holding of such Holder of such Shares is not to be construed as a
      recommendation by such Holder of the investment quality of the Company’s
      securities covered thereby and that such holding does not imply that such Holder
      will assist in meeting any future financial requirements of the Company, or
      (ii)
      in the event that such reference to such Holder by name or otherwise is not
      in
      the judgment of the Company, as advised by counsel, required by the Securities
      Act or any similar federal statute or any state Blue Sky or securities law
      then
      in force, the deletion of the reference to such Holder. If the Company is unable
      to file a Registration Statement or the filing of a Registration Statement
      is
      delayed due to a Holder’s changes to the Registration Statement in accordance
      with the prior sentence the Company shall not be liabile to make any payment
      under Section 2(d) due to such delay or inability to file a Registration
      Statement if the Company has promptly addressed each of the Holder’s comments
      within 3 business days by either filing an updated version of the Registration
      Statement or circulating an updated draft of the Registration Statement for
      further approval, as the situation would require.

     

    Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be delivered to a transferee
      pursuant to the Registration Statements, which certificates shall be free,
      to
      the extent permitted by the Purchase Agreement, of all restrictive legends,
      and
      to enable such Registrable Securities to be in such denominations and registered
      in such names as any such Holders may request.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Upon
      the
      occurrence of any event contemplated by Section 3(c)(v), as promptly as
      reasonably possible, prepare a supplement or amendment, including a
      post-effective amendment, to the affected Registration Statements or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, no Registration Statement nor any Prospectus
      will
      contain an untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not misleading.

     

    The
      Company agrees that if the Commission, either before, on or after any Effective
      Date, expresses the view that any Investor should be deemed an “underwriter” in
      connection with the offering (including by way of a comment of the staff of
      the
      Commission on the Registration Statement that is not resolved to the
      satisfaction of such Investor), then after the Registration Statements effective
      and upon the request of such Investor, the Company shall, at its expense, up
      to
      $50,000, with all additional expenses to be at the requesting Investor’s
      expense,

     

    (i) prepare
      and file with the Commission any amendments and/or supplements to the
      Registration Statement as may be necessary to respond to the Commission’s view
      and as may be desirable to cause the Registration Statement to be declared
      effective (or, if then effective, to be maintained as effective) for the
      Effectiveness Period and comply with any related requests of the Commission
      so
      that the Registration Statement may be used by such Investor in connection
      with
      the disposition of Shares,

     

    (ii) give
      such
      Investor access to the Company’s books and records, all financial and other
      records, pertinent corporate documents and properties of the Company and its
      Subsidiaries, and such opportunities to discuss the business of the Company
      and
      its Subsidiaries with their respective directors, officers and employees and
      the
      independent public accountants who have certified the Company’s and its
      Subsidiaries’ financial statements, and supply all other information and respond
      to all inquiries requested by such Investor or their respective counsel,
      accountants or other representatives or agents, as shall be necessary or
      appropriate, in the opinion of counsel to such Investor, to conduct a reasonable
      investigation within the meaning of the Securities Act,

     

    (iv)
      at
      the request of such Investor, amend the Registration Statement to remove such
      Investor as a selling shareholder and to remove such Investors Shares and
      promptly file a separate Registration Statement covering only such Investor
      and
      its Shares and use reasonable best efforts to cause it to become effective
      by
      the Effective Date applicable to the initial Registration Statement required
      to
      be filed under Section 2(a) or as soon as practicable thereafter,
      and

     

    (vi) deliver
      to such Investor an officer’s certificate from Chang Yu, the Company’s President
      and CEO, to the effect that,

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (A) the
      Registration Statement, as of the Effective Date, does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make
      the statements made not misleading,

     

    (B) the
      financial statements, and other financial information included in (or
      incorporated by reference into) the Registration Statement fairly present in
      all
      material respects the financial condition, results of operations and cash flows
      of the Company as of, and for, the periods presented, and

     

    (C) in
      addition to any other indemnity provided for elsewhere in this Agreement,
      indemnify and hold harmless the Investor, its directors, officers and other
      Persons, if any, who may control the Investor for any Losses, as incurred,
      arising out of any statement or alleged statement in or omission or alleged
      omission from the Registration Statement or as a result of the Investor being
      named as an underwriter or a deemed underwriter.

     

    Additionally,
      the Company agrees that if the Commission, either before, on or after any
      Effective Date, expresses the view that any Investor should be deemed an
“underwriter” in connection with the offering (including by way of a comment of
      the staff of the Commission on the Registration Statement that is not resolved
      to the satisfaction of such Investor), then after the Registration Statementis
      effective and upon the request of such Investor, the Company shall at the
      requesting Investor’s expense,

     

    (i)
      cause
      the Company’s counsel to deliver a legal opinion, addressed to such Investor, in
      the form and covering the matters (including “cold comfort” regarding the
      absence of material misstatements or omissions in the Registration Statement)
      as
      are customary in opinions of an issuer’s legal counsel delivered to
      underwriters; and

     

    (ii) cause
      one
      of the accounting firms listed on Schedule 4.14 to the Purchase Agreement (or
      such other entity serving as the Company’s independent public accountant) to
      deliver a “cold comfort” letter, addressed to such Investor, covering matters
      with respect to the Registration Statement as is customary in cold comfort
      letters of an issuer’s independent public accountants delivered to
      underwriters.

     

    The
      Company shall cooperate with any Investor making a request under this Section
      3(j). When complying with an Investor’s request, the Company shall be permitted
      to incur such reasonable legal and other fees, as appropriate, to comply with
      the Investor’s request under this Section 3(j) at its expense, until the Company
      has expended $50,000 under this Section 3(j), with all additional expendatures
      to be at the requesting Investor’s expense.

     

    Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with any
      Trading Market on which the Common Stock is then listed for trading and (B)
      to
      the extent permitted to be borne by the Company under applicable state
      securities or Blue Sky laws), (ii) all listing fees, (iii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the Registration Statement), (iv) messenger,
      telephone and delivery expenses, (v) fees and disbursements of counsel for
      the
      Company, (vi) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vii) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Indemnification.

     

    Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, investment advisors,
      partners, members and employees of each of them, each Person who controls any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, reasonable costs of preparation and reasonable
      attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising
      out
      of or relating to (i) any untrue or alleged untrue statement of a material
      fact
      contained in any Registration Statement, any Prospectus or any form of
      prospectus or in any amendment or supplement thereto or in any preliminary
      prospectus, or arising out of or relating to any omission or alleged omission
      of
      a material fact required to be stated therein or necessary to make the
      statements therein (in the case of any Prospectus or form of prospectus or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, or (ii) any untrue statement or alleged untrue statement of
      a
      material fact in the information conveyed to any purchaser at the time of the
      sale to such purchaser, or the omission or alleged omission to state therein
      a
      material fact required to be stated therein, except to the extent, but only
      to
      the extent, that (1) such untrue statements or omissions are based solely upon
      information regarding such Holder furnished in writing to the Company by such
      Holder expressly for use therein, or to the extent that such information relates
      to such Holder or such Holder's proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in the Registration Statement, such Prospectus or such form
      of
      Prospectus or in any amendment or supplement thereto (it being understood that
      the Holder has approved Annex A hereto for this purpose) or (2) in the case
      of
      an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the
      use
      by such Holder of an outdated or defective prospectus relating to the Company
      after the Company has notified such Holder in writing that such prospectus
      is
      outdated or defective and prior to the receipt by such Holder of an Advice
      or an
      amended or supplemented prospectus, but only if and to the extent that following
      the receipt of the Advice or the amended or supplemented prospectus the
      misstatement or omission giving rise to such Loss would have been corrected.
      The
      Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding of which the Company is aware in connection with
      the
      transactions contemplated by this Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising solely out of or based solely
      upon: (x) such Holder’s failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue statement of a material
      fact contained in any Registration Statement, any Prospectus, or any form of
      prospectus, or in any amendment or supplement thereto, or arising solely out
      of
      or based solely upon any omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading to the
      extent, but only to the extent that, (1) such untrue statements or omissions
      are
      based solely upon information regarding such Holder furnished in writing to
      the
      Company by such Holder expressly for use therein, or to the extent that such
      information relates to such Holder or such Holder's proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by such Holder expressly for use in the Registration Statement (it
      being understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any amendment or supplement
      thereto or (2) in the case of an occurrence of an event of the type specified
      in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder in writing that the
      Prospectus is outdated or defective and prior to the receipt by such Holder
      of
      an Advice or an amended or supplemented Prospectus, but only if and to the
      extent that following the receipt of the Advice or the amended or supplemented
      Prospectus the misstatement or omission giving rise to such Loss would have
      been
      corrected. In no event shall the liability of any selling Holder hereunder
      be
      greater in amount than the dollar amount of the net proceeds received by such
      Holder upon the sale of the Registrable Securities giving rise to such
      indemnification obligation.

     

    Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify
      the Person from whom indemnity is sought (the "Indemnifying Party") in writing,
      and the Indemnifying Party shall assume the defense thereof, including the
      employment of counsel reasonably satisfactory to the Indemnified Party and
      the
      payment of all fees and expenses incurred in connection with defense thereof;
      provided, that the failure of any Indemnified Party to give such notice shall
      not relieve the Indemnifying Party of its obligations or liabilities pursuant
      to
      this Agreement, except (and only) to the extent that it shall be finally
      determined by a court of competent jurisdiction (which determination is not
      subject to appeal or further review) that such failure shall have proximately
      and materially adversely prejudiced the Indemnifying Party.

     

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (i) the Indemnifying Party shall have failed to take reasonable steps
      necessary to defend diligently the action or proceeding within 20 days after
      receiving notice from such Indemnified Party, or (ii) if representation of
      both
      parties by the same counsel is otherwise inappropriate under applicable
      standards of professional conduct. The Indemnifying Party shall not be liable
      for any settlement of any such Proceeding effected without its written consent,
      which consent shall not be unreasonably withheld. No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending Proceeding in respect of which any Indemnified Party
      is a party, unless such settlement includes an unconditional release of such
      Indemnified Party from all liability on claims that are the subject matter
      of
      such Proceeding.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten Trading Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided, that the Indemnifying Party may require such Indemnified
      Party to undertake to reimburse all such fees and expenses to the extent it
      is
      finally judicially determined that such Indemnified Party is not entitled to
      indemnification hereunder).

     

    Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party (by reason of public policy or otherwise), then each
      Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such Losses, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties' relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses
      incurred by such party in connection with any Proceeding to the extent such
      party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      net proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission.

     

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Miscellaneous.

     

    Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall, to the fullest extent
      permitted by law, waive the defense that a remedy at law would be
      adequate.

     

    No
      Piggyback on Registrations.
      Except
      as and to the extent specified in Schedule
      3.1(w)
      to the
      Purchase Agreement, neither the Company nor any of its security holders (other
      than the Holders in such capacity pursuant hereto) may include securities of
      the
      Company in a Registration Statement other than the Registrable Securities,
      and
      the Company shall not during the Effectiveness Period enter into any agreement
      providing any such right to any of its security holders.

     

    Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

     

    Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the Registration Statement until such Holder's
      receipt of the copies of the supplemented Prospectus and/or amended Registration
      Statement or until it is advised in writing by the Company that the use of
      the
      applicable Prospectus may be resumed, and, in either case, has received copies
      of any additional or supplemental filings that are incorporated or deemed to
      be
      incorporated by reference in such Prospectus or Registration Statement. The
      Company may provide appropriate stop orders to enforce the provisions of this
      paragraph.

     

    Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to each Holder written notice of such determination and, if within
      fifteen calendar days after receipt of such notice, any such Holder shall so
      request in writing, the Company shall include in such registration statement
      all
      or any part of such Registrable Securities such holder requests to be
      registered, subject to customary underwriter cutbacks applicable to all holders
      of registration rights. In addition, if the Company files any shelf registration
      statement for the benefit of the holders of any of its securities other than
      the
      Holders, the Company agrees that it shall include in such registration statement
      such disclosures as may be required by Rule 430B (referring to the unnamed
      selling security holders in a generic manner by identifying the initial offering
      of the securities to the Holders) in order to ensure that the Holders may be
      added to such shelf registration statement at a later time through the filing
      of
      a prospectus supplement rather than a post-effective amendment, and the Company
      agrees that upon any subsequent request by a Holder, the Company shall file
      a
      prospectus supplement adding such Holder’s Registrable Securities to such shelf
      registration statement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this Section 6(f),
      may
      not be amended, modified or supplemented, and waivers or consents to departures
      from the provisions hereof may not be given, unless the same shall be in writing
      and signed by the Company and the Holders of no less than a majority in interest
      of the then outstanding Registrable Securities. Notwithstanding the foregoing,
      a
      waiver or consent to depart from the provisions hereof with respect to a matter
      that relates exclusively to the rights of certain Holders and that does not
      directly or indirectly affect the rights of other Holders may be given by
      Holders of at least a majority of the Registrable Securities to which such
      waiver or consent relates; provided,
      further, that no amendment or waiver to any provision of this Agreement relating
      to naming any Holder or requiring the naming of any Holder as an underwriter
      may
      be effected in any manner without such Holder’s prior written consent. Section
      2(a) may not be amended or waived except by written consent of each Holder
      affected by such amendment or waiver.

     

    Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via facsimile (provided the sender receives a machine-generated
      confirmation of successful transmission) at the facsimile number specified
      in
      this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b)
      the
      next Trading Day after the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number specified in this Section
      on
      a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
      on
      any Trading Day, (c) the Trading Day following the date of mailing, if sent
      by
      U.S. nationally recognized overnight courier service, or (d) upon actual receipt
      by the party to whom such notice is required to be given. The address for such
      notices and communications shall be as follows:

     

    
      	
              If
                to the Company:

            	
              China
                Agritech, Inc.

            
	 	
              A#
                Room 0706-0707, The Spaces International Center 

            
	 	
              No.
                8, Dongdaqiao Road 

            
	 	
              Chaoyang
                District, Beijing 100020 

            
	 	
              People's
                Republic of China

            
	 	
              Facsimile:
                86 10 5870 2108

            
	 	
              Attention:
                President

            

    

    

    
      	
              With
                a copy to:

            	
              Thelen
                Reid Brown Raysman & Steiner LLP

            
	 	
              701
                8th
                Street NW

            
	 	
              Washington,
                D.C. 20001

            
	 	
              Facsimile:
                (202) 508-4321

            
	 	
              Attn.:
                Joseph R. Tiano, Jr., Esq. 

            

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to a Investor: 

            	
              To
                the address set forth under such Investor's name on the signature
                pages
                hereto.

            
	 	 
	If
              to any other Person who is then the registered
              Holder:

    

     

    
      	 	
              To
                the address of such Holder as it appears in the stock transfer books
                of
                the Company

            

    

     

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

     

    Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of each Holder. Each Holder may assign their
      respective rights hereunder in the manner and to the Persons as permitted under
      the Purchase Agreement.

     

    Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement (whether brought against a party hereto or its
      respective Affiliates, employees or agents) will be commenced in the New York
      Courts. Each party hereto hereby irrevocably submits to the exclusive
      jurisdiction of the New York Courts for the adjudication of any dispute
      hereunder or in connection herewith or with any transaction contemplated hereby
      or discussed herein, and hereby irrevocably waives, and agrees not to assert
      in
      any Proceeding, any claim that it is not personally subject to the jurisdiction
      of any New York Court, or that such Proceeding has been commenced in an improper
      or inconvenient forum. Each party hereto hereby irrevocably waives personal
      service of process and consents to process being served in any such Proceeding
      by mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      Proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If either party shall commence a Proceeding to enforce
      any
      provisions of this Agreement, then the prevailing party in such Proceeding shall
      be reimbursed by the other party for its attorneys’ fees and other costs and
      expenses incurred with the investigation, preparation and prosecution of such
      Proceeding.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their reasonable efforts to
      find and employ an alternative means to achieve the same or substantially the
      same result as that contemplated by such term, provision, covenant or
      restriction. It is hereby stipulated and declared to be the intention of the
      parties that they would have executed the remaining terms, provisions, covenants
      and restrictions without including any of such that may be hereafter declared
      invalid, illegal, void or unenforceable.

     

    Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    Independent
      Nature of Investors' Obligations and Rights.
      The
      obligations of each Investor under this Agreement are several and not joint
      with
      the obligations of each other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      this
      Agreement. Nothing contained herein or in any Transaction Document, and no
      action taken by any Investor pursuant thereto, shall be deemed to constitute
      the
      Investors as a partnership, an association, a joint venture or any other kind
      of
      entity, or create a presumption that the Investors are in any way acting in
      concert or as a group with respect to such obligations or the transactions
      contemplated by this Agreement or any other Transaction Document. Each Investor
      acknowledges that no other Investor will be acting as agent of such Investor
      in
      enforcing its rights under this Agreement. Each Investor shall be entitled
      to
      independently protect and enforce its rights, including without limitation
      the
      rights arising out of this Agreement, and it shall not be necessary for any
      other Investor to be joined as an additional party in any Proceeding for such
      purpose. The Company acknowledges that each of the Investors has been provided
      with the same Registration Rights Agreement for the purpose of closing a
      transaction with multiple Investors and not because it was required or requested
      to do so by any Investor.

     

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      OF PAGE INTENTIONALLY LEFT BLANK

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      PAGES TO FOLLOW]

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    
      	 	
              CHINA
                AGRITECH, INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:
                Yu Chang

            
	 	 	
              Title:
                Chief Executive Officer

            

    

     

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      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES OF INVESTORS TO FOLLOW]

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

    

    
      	 	
              NAME
                OF INVESTING ENTITY

            
	 	 	 	 
	 	   
	   
	   

	 	 	 	 
	 	
              By:
                

            	   
	    

	 	 	
              Name:

            	 
	 	 	
              Title:

            	 
	 	 	 	 
	 	
              ADDRESS
                FOR NOTICE

            
	 	 	 	 
	 	
              c/o:
                

            	     

	 	 	 	 
	 	
              Street:
                

            	    
 

	 	 	 	 
	 	
              City/State/Zip:
                

            	   
 

	 	 	 	 
	 	
              Attention:
                

            	   

	 	 	 	 
	 	
              Tel:

            	   

	 	 	 	 
	 	
              Fax:

            	   

	 	 	 	 
	 	
              Email:

            	   

    

    
 

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    Annex
      A

    Plan
      of
      Distribution

     

    The
      Selling Stockholders and any of their pledgees, donees, transferees, assignees
      and successors-in-interest may, from time to time, sell any or all of their
      shares of Common Stock on any stock exchange, market or trading facility on
      which the shares are traded or quoted or in private transactions. These sales
      may be at fixed, negotiated or prevailing prices. The shares may be sold by
      the
      Selling Stockholders directly to one or more purchasers, through agents
      designated from time to time or to or through broker-dealers designated from
      time to time. In the event the shares are publicly offered through
      broker-dealers or agents, the Selling Stockholders may enter into agreements
      with respect thereto. The Selling Stockholders may use any one or more of the
      following methods when selling shares:

     

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

     

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

     

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

     

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

     

    privately
      negotiated transactions;

     

    to
      cover
      short sales made after the date that this Registration Statement is declared
      effective by the Commission; 

     

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

     

    a
      combination of any such methods of sale; and

     

    any
      other
      method permitted pursuant to applicable law.

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus. The Selling Stockholders
      may also engage in short sales against the box, puts and calls and other
      transactions in the Company’s securities or derivatives of the Company’s
      securities and may sell or deliver shares in connection with these
      trades.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. The
      Selling Stockholders do not expect these commissions and discounts to exceed
      what is customary in the types of transactions involved.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    The
      Selling Stockholders may from time to time pledge or grant a security interest
      in some or all of the Shares owned by them and, if they default in the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell shares of Common Stock from time to time under this prospectus,
      or under an amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933 amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus.

     

    Upon
      the
      Company being notified in writing by a Selling Stockholder that any material
      arrangement has been entered into with a broker-dealer for the sale of Common
      Stock through a block trade, special offering, exchange distribution or
      secondary distribution or a purchase by a broker or dealer, a supplement to
      this
      prospectus will be filed, if required, pursuant to Rule 424(b) under the
      Securities Act, disclosing (i) the name of each such Selling Stockholder and
      of
      the participating broker-dealer(s), (ii) the number of shares involved, (iii)
      the price at which such the shares of Common Stock were sold, (iv) the
      commissions paid or discounts or concessions allowed to such broker-dealer(s),
      where applicable, (v) that such broker-dealer(s) did not conduct any
      investigation to verify the information set out or incorporated by reference
      in
      this prospectus, and (vi) other facts material to the transaction. In addition,
      upon the Company being notified in writing by a Selling Stockholder that a
      donee
      or pledgee intends to sell more than 500 shares of Common Stock, a supplement
      to
      this prospectus will be filed if then required in accordance with applicable
      securities law.

     

    The
      Selling Stockholders also may transfer the shares of Common Stock in other
      circumstances, in which case the transferees, pledgees or other successors
      in
      interest will be the selling beneficial owners for purposes of this
      prospectus.

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be "underwriters" within the meaning of
      the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Discounts, concessions, commissions and
      similar selling expenses, if any, that can be attributed to the sale of Shares
      will be paid by the Selling Stockholder and/or the purchasers. Each Selling
      Stockholder has represented and warranted to the Company that it acquired the
      securities subject to this registration statement in the ordinary course of
      such
      Selling Stockholder’s business and, at the time of its purchase of such
      securities such Selling Stockholder had no agreements or understandings,
      directly or indirectly, with any person to distribute any such securities.
      

     

    The
      Company has advised each Selling Stockholder that it may not use shares
      registered on this Registration Statement to cover short sales of Common Stock
      made prior to the date on which this Registration Statement shall have been
      declared effective by the Commission. If a Selling Stockholder uses this
      prospectus for any sale of the Common Stock, it will be subject to the
      prospectus delivery requirements of the Securities Act. The Selling Stockholders
      will be responsible to comply with the applicable provisions of the Securities
      Act and Exchange Act, and the rules and regulations thereunder promulgated,
      including, without limitation, Regulation M, as applicable to such Selling
      Stockholders in connection with resales of their respective shares under this
      Registration Statement.

     

    The
      Company is required to pay all fees and expenses incident to the registration
      of
      the shares, but the Company will not receive any proceeds from the sale of
      the
      Common Stock. The Company has agreed to indemnify the Selling Stockholders
      against certain losses, claims, damages and liabilities, including liabilities
      under the Securities Act. 

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    Annex
      B

     

    CHINA
      AGRITECH, INC.

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock (the “Common
      Stock”),
      of
      China Agritech, Inc., a Delaware corporation (the “Company”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      Registration Statement for the registration and resale of the Registrable
      Securities, in accordance with the terms of the Registration Rights Agreement,
      dated as of June 29th,
      2007
      (the “Registration
      Rights Agreement”),
      among
      the Company and the Investors named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms used and not otherwise defined herein shall have
      the meanings ascribed thereto in the Registration Rights Agreement.

     

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    1. Name.

     

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

     

    
      	   

	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

     

    
      	   

	 

    

    

    
      	 	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by the
                questionnaire):

            

    

     

    
      	   

	 

    

     

    2.
      Address for Notices to Selling Securityholder:

     

    
      	   
	   
              
	   
	     
	   
	  

	
              Telephone: 

            	   
              
	
              Fax: 

            	   
              
	
              Contact
                Person: 

            	   
              

    

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
3.
      Beneficial Ownership of Registrable Securities:

     

    
      	 	 	
              Type
                and Principal Amount of Registrable Securities beneficially
                owned:

            

    

     

    
      	 
	 
	 
	 

    

     

    4.
      Broker-Dealer Status:

     

    
      	 	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes
o  No
o

     

    
      	 	
              Note:

            	
              If
                yes, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    
      	 	
              (b)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    
      Yes
o  No
o

       

    

    
      	 	
              (c)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                bought
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    
      Yes
o  No
o

       

    

    
      	 	
              Note:

            	
              If
                no, the Commission’s staff has indicated that you should be identified as
                an underwriter in the Registration
                Statement.

            

    

     

    5.
      Beneficial Ownership of Other Securities of the Company Owned by the Selling
      Securityholder.

     

    Except
      as set forth below in this Item 5, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the Registrable
      Securities listed above in Item 3.

     

    
      	 	 	
              Type
                and Amount of Other Securities beneficially owned by the Selling
                Securityholder:

            

    

     

    
      	 
	 
	 

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    6.
      Relationships with the Company:

     

    Except
      as
      set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

     

    
      	 
	 
	 

    

     

    7. The
      Company has advised each Selling Stockholder that it may not use shares
      registered on the Registration Statement to cover short sales of Common Stock
      made prior to the date on which the Registration Statement is declared effective
      by the Commission, in accordance with 1997 Securities and Exchange Commission
      Manual of Publicly Available Telephone Interpretations Section A.65. If a
      Selling Stockholder uses the prospectus for any sale of the Common Stock, it
      will be subject to the prospectus delivery requirements of the Securities Act.
      The Selling Stockholders will be responsible to comply with the applicable
      provisions of the Securities Act and Exchange Act, and the rules and regulations
      thereunder promulgated, including, without limitation, Regulation M, as
      applicable to such Selling Stockholders in connection with resales of their
      respective shares under the Registration Statement.The undersigned agrees to
      promptly notify the Company of any inaccuracies or changes in the information
      provided herein that may occur subsequent to the date hereof and prior to the
      Effective Date for the Registration Statement.

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus. The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

     

    
      
        	Dated:
                	   
                	 	Beneficial
                Owner: 	   
                

      
  

    
      	
            	By:  	        
	 	 	Name:
	 	 	Title: 

    

     

    
      
         

      

      
        25BIO
      SOLUTIONS MANUFACTURING, INC.

    2007
      STOCK INCENTIVE PLAN

     

    1.
         Purpose.    The
      purpose of the 2007 Stock Incentive Plan of Bio Solutions Manufacturing, Inc.
      is
      to further align the interests of employees, directors and non-employee
      Consultants with those of the stockholders by providing incentive compensation
      opportunities tied to the performance of the Common Stock and by promoting
      increased ownership of the Common Stock by such individuals. The Plan is also
      intended to advance the interests of the Company and its stockholders by
      attracting, retaining and motivating key personnel upon whose judgment,
      initiative and effort the successful conduct of the Company’s business is
      largely dependent. 

     

    2.
         Definitions.    Wherever
      the following capitalized terms are used in the Plan, they shall have the
      meanings specified below: 

     

    “Affiliate”
      means
      (i) any entity that would be treated as an “affiliate” of the Company for
      purposes of Rule 12b-2 under the Exchange Act and (ii) any joint venture or
      other entity in which the Company has a direct or indirect beneficial ownership
      interest representing at least one-third (1/3) of the aggregate voting power
      of
      the equity interests of such entity or one-third (1/3) of the aggregate fair
      market value of the equity interests of such entity, as determined by the
      Committee.

     

    “Award”
      means an
      award of a Stock Option, Stock Award, or Restricted Stock Award granted under
      the Plan. 

     

    “Award
      Agreement”
      means a
      written or electronic agreement entered into between the Company and a
      Participant setting forth the terms and conditions of an Award granted to a
      Participant. 

     

    “Board”
      means
      the Board of Directors of the Company. 

     

    “Code”
      means
      the Internal Revenue Code of 1986, as amended. 

     

    “Common
      Stock”
      means
      the Company’s common stock, $0.001 par value per share. 

     

    “Committee”
      means
      the Compensation Committee of the Board, or such other committee of the Board
      appointed by the Board to administer the Plan, or if no such committee exists,
      the Board. 

     

    “Company”
      means
      Bio Solutions Manufacturing, Inc., a New York corporation. 

    

    “Consultant”
      means
      any
      person which is a consultant or advisor to the Company and which is a natural
      person and who provides bona fide services to the Company which are not in
      connection with the offer or sale of securities in a capital-raising transaction
      for the Company, and do not directly or indirectly promote or maintain a market
      for the Company’s securities.

    

    “Date
      of Grant”
      means
      the date on which an Award under the Plan is made by the Committee, or such
      later date as the Committee may specify to be the effective date of an Award.
      

     

    “Disability”
      means a
      Participant being considered “disabled” within the meaning of Section
      409A(a)(2)(C) of the Code, unless otherwise provided in an Award Agreement.
      

     

    “Eligible
      Person”
      means
      any person who is an employee of the Company or any Affiliate or any person
      to
      whom an offer of employment with the Company or any Affiliate is extended,
      as
      determined by the Committee, or any person who is a Non-Employee Director,
      or
      any person who is Consultant to the Company.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended. 

     

    “Fair
      Market Value”
      means
      the mean between the highest and lowest reported sales prices of the Common
      Stock on the New York Stock Exchange Composite Tape or, if not listed on such
      exchange, on any other national securities exchange on which the Company’s
      common stock is listed or on The Nasdaq Stock Market, or, if not so listed
      on
      any other national securities exchange or The Nasdaq Stock Market, then the
      average of the bid price of the Company’s common stock during the last five
      trading days on the OTC Bulletin Board immediately preceding the last trading
      day prior to the date with respect to which the Fair Market Value is to be
      determined. If the Company’s common stock is not then publicly traded, then the
      Fair Market Value of the Common Stock shall be the book value of the Company
      per
      share as determined on the last day of January, April, July, or October in
      any
      year closest to the date when the determination is to be made. For the purpose
      of determining book value hereunder, book value shall be determined by adding
      as
      of the applicable date called for herein the capital, surplus, and undivided
      profits of the Company, and after having deducted any reserves theretofore
      established; the sum of these items shall be divided by the number of shares
      of
      the Company’s common stock outstanding as of said date, and the quotient thus
      obtained shall represent the book value of each share of the Company’s common
      stock.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Incentive
      Stock Option”
      means a
      Stock Option granted under Section 6 hereof that is intended to meet the
      requirements of Section 422 of the Code and the regulations thereunder.

     

    “Non-Employee
      Director”
      means
      any member of the Board who is not an employee of the Company. 

     

    “Nonqualified
      Stock Option”
      means a
      Stock Option granted under Section 6 hereof that is not an Incentive Stock
      Option. 

     

    “Participant”
      means
      any Eligible Person who holds an outstanding Award under the Plan. 

     

    “Plan”
      means
      the 2007 Stock Incentive Plan of Bio Solutions Manufacturing, Inc. as set forth
      herein, as amended from time to time. 

    

    “Restricted
      Stock Award”
      means a
      grant of shares of Common Stock to an Eligible Person under Section 8 hereof
      that is issued subject to such vesting and transfer restrictions as the
      Committee shall determine and set forth in an Award Agreement. 

     

    “Service”
      means a
      Participant’s employment with the Company or any Affiliate or a Participant’s
      service as a Non-Employee Director with the Company, as applicable.

     

    “Stock
      Award”
      means a
      grant of shares of Common Stock to an Eligible Person under Section 7 hereof
      that are issued free of transfer restrictions and forfeiture conditions.

     

    “Stock
      Option”
      means a
      contractual right granted to an Eligible Person under Section 6 hereof to
      purchase shares of Common Stock at such time and price, and subject to such
      conditions, as are set forth in the Plan and the applicable Award Agreement.
      

     

    3.
         Administration. 

     

    3.1    Committee
      Members.    The
      Plan shall be administered by a Committee comprised of one or more members
      of
      the Board, or if no such committee exists, the Board.

     

    3.2    Committee
      Authority.    The
      Committee shall have such powers and authority as may be necessary or
      appropriate for the Committee to carry out its functions as described in the
      Plan. Subject to the express limitations of the Plan, the Committee shall have
      authority in its discretion to determine the Eligible Persons to whom, and
      the
      time or times at which, Awards may be granted, the number of shares, units
      or
      other rights subject to each Award, the exercise, base or purchase price of
      an
      Award (if any), the time or times at which an Award will become vested,
      exercisable or payable, the performance goals and other conditions of an Award,
      the duration of the Award, and all other terms of the Award. Subject to the
      terms of the Plan, the Committee shall have the authority to amend the terms
      of
      an Award in any manner that is not inconsistent with the Plan, provided that
      no
      such action shall adversely affect the rights of a Participant with respect
      to
      an outstanding Award without the Participant’s consent. The Committee shall also
      have discretionary authority to interpret the Plan, to make factual
      determinations under the Plan, and to make all other determinations necessary
      or
      advisable for Plan administration, including, without limitation, to correct
      any
      defect, to supply any omission or to reconcile any inconsistency in the Plan
      or
      any Award Agreement hereunder. The Committee may prescribe, amend, and rescind
      rules and regulations relating to the Plan. The Committee’s determinations under
      the Plan need not be uniform and may be made by the Committee selectively among
      Participants and Eligible Persons, whether or not such persons are similarly
      situated. The Committee shall, in its discretion, consider such factors as
      it
      deems relevant in making its interpretations, determinations and actions under
      the Plan including, without limitation, the recommendations or advice of any
      officer or employee of the Company or such attorneys, consultants, accountants
      or other advisors as it may select. All interpretations, determinations and
      actions by the Committee shall be final, conclusive, and binding upon all
      parties. 

    
      
         

      

      
        Page
          2 of 11

        
          

        

      

      
         

      

    

    3.3    Delegation
      of Authority.    The
      Committee shall have the right, from time to time, to delegate to one or more
      officers of the Company the authority of the Committee to grant and determine
      the terms and conditions of Awards granted under the Plan, subject to the
      requirements of state law and such other limitations as the Committee shall
      determine. In no event shall any such delegation of authority be permitted
      with
      respect to Awards to any members of the Board or to any Eligible Person who
      is
      subject to Rule 16b-3 under the Exchange Act or Section 162(m) of the Code.
      The
      Committee shall also be permitted to delegate, to any appropriate officer or
      employee of the Company, responsibility for performing certain ministerial
      functions under the Plan. In the event that the Committee’s authority is
      delegated to officers or employees in accordance with the foregoing, all
      provisions of the Plan relating to the Committee shall be interpreted in a
      manner consistent with the foregoing by treating any such reference as a
      reference to such officer or employee for such purpose. Any action undertaken
      in
      accordance with the Committee’s delegation of authority hereunder shall have the
      same force and effect as if such action was undertaken directly by the Committee
      and shall be deemed for all purposes of the Plan to have been taken by the
      Committee. 

     

    4.
         Shares Subject to the Plan. 

     

    4.1    Maximum
      Share Limitations.    Subject
      to Section 4.3 hereof, the maximum aggregate number of shares of Common Stock
      that may be issued and sold under all Awards granted under the Plan shall be
      ten
      million (10,000,000) shares. Shares of Common Stock issued and sold under the
      Plan may be either authorized but unissued shares or shares held in the
      Company’s treasury. To the extent that any Award involving the issuance of
      shares of Common Stock is forfeited, cancelled, returned to the Company for
      failure to satisfy vesting requirements or other conditions of the Award, or
      otherwise terminates without an issuance of shares of Common Stock being made
      thereunder, the shares of Common Stock covered thereby will no longer be counted
      against the foregoing maximum share limitations and may again be made subject
      to
      Awards under the Plan pursuant to such limitations. Any Awards or portions
      thereof that are settled in cash and not in shares of Common Stock shall not
      be
      counted against the foregoing maximum share limitations. 

     

    4.2    Adjustments.
         If
      there shall occur any change with respect to the outstanding shares of Common
      Stock by reason of any recapitalization, reclassification, stock dividend,
      extraordinary dividend, stock split, reverse stock split or other distribution
      with respect to the shares of Common Stock, or any merger, reorganization,
      consolidation, combination, spin-off or other similar corporate change, or
      any
      other change affecting the Common Stock, the Committee may, in the manner and
      to
      the extent that it deems appropriate and equitable to the Participants and
      consistent with the terms of the Plan, cause an adjustment to be made in (i)
      the
      maximum number and kind of shares provided in Section 4.1 hereof, (ii) the
      number and kind of shares of Common Stock, or other rights subject to then
      outstanding Awards, (iii) the exercise or base price for each share or other
      right subject to then outstanding Awards, and (iv) any other terms of an Award
      that are affected by the event. Notwithstanding the foregoing, in the case
      of
      Incentive Stock Options, any such adjustments shall, to the extent practicable,
      be made in a manner consistent with the requirements of Section 424(a) of the
      Code. 

    

    4.3
      Anti-Dilution.
      Notwithstanding anything contained in the Plan to cover the contrary, including
      any adjustments discussed in this Section 4, the maximum aggregate number of
      shares of Common Stock that may be issued and sold under all Awards granted
      under the Plan shall be anti-dilutive in the event of a reverse stock split
      by
      the Company and shall not result in any reduction in the number of shares
      available and authorized under the Plan at the effective time of such reverse
      stock split(s).

    

    5.
         Participation and Awards.

     

    5.1    Designations
      of Participants.    All
      Eligible Persons are eligible to be designated by the Committee to receive
      Awards and become Participants under the Plan. The Committee has the authority,
      in its discretion, to determine and designate from time to time those Eligible
      Persons who are to be granted Awards, the types of Awards to be granted and
      the
      number of shares of Common Stock or units subject to Awards granted under the
      Plan. In selecting Eligible Persons to be Participants and in determining the
      type and amount of Awards to be granted under the Plan, the Committee shall
      consider any and all factors that it deems relevant or appropriate.

    
      
         

      

      
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    5.2    Determination
      of Awards.    The
      Committee shall determine the terms and conditions of all Awards granted to
      Participants in accordance with its authority under Section 3.2 hereof. An
      Award
      may consist of one type of right or benefit hereunder or of two or more such
      rights or benefits granted in tandem or in the alternative. In the case of
      any
      fractional share or unit resulting from the grant, vesting, payment or crediting
      of dividends or dividend equivalents under an Award, the Committee shall have
      the discretionary authority to (i) disregard such fractional share or unit,
      (ii)
      round such fractional share or unit to the nearest lower or higher whole share
      or unit, or (iii) convert such fractional share or unit into a right to receive
      a cash payment. To the extent deemed necessary by the Committee, an Award shall
      be evidenced by an Award Agreement as described in Section 11.1 hereof.

     

    6.
         Stock Options. 

     

    6.1    Grant
      of Stock Options.    A
      Stock Option may be granted to any Eligible Person selected by the Committee.
      Subject to the provisions of Section 6.8 hereof and Section 422 of the Code,
      each Stock Option shall be designated, in the discretion of the Committee,
      as an
      Incentive Stock Option or as a Nonqualified Stock Option. 

     

    6.2    Exercise
      Price.    The
      exercise price per share of a Stock Option shall not be less than 85 percent
      of
      the Fair Market Value of the shares of Common Stock on the Date of Grant,
      provided that the Committee may in its discretion specify for any Stock Option
      an exercise price per share that is higher than the Fair Market Value on the
      Date of Grant, except that the price shall not be less than 110 percent of
      the
      Fair Market Value in the case of any person who owns securities possessing
      more
      than 10 percent of the total combined voting power of all classes of securities
      of the Company.

     

    6.3    Vesting
      of Stock Options.    The
      Committee shall in its discretion prescribe the time or times at which, or
      the
      conditions upon which, a Stock Option or portion thereof shall become vested
      and/or exercisable, and may accelerate the vesting or exercisability of any
      Stock Option at any time, provided, however, that any Stock Option shall vest
      at
      the rate of at least twenty percent (20%) per year over five (5) years from
      the
      date the Stock Option is granted, subject to reasonable conditions as may be
      provided for in the Award Agreement. However, in the case of a Stock Option
      granted to officers, Non-employee Directors, managers or Consultants of the
      Company, the Stock Option may become fully exercisable, subject to reasonable
      conditions, at anytime or during any period established by the Company. The
      requirements for vesting and exercisability of a Stock Option may be based
      on
      the continued Service of the Participant with the Company or its Affiliates
      for
      a specified time period (or periods) or on the attainment of specified
      performance goals established by the Committee in its discretion. 

     

    6.4    Term
      of Stock Options.    The
      Committee shall in its discretion prescribe in an Award Agreement the period
      during which a vested Stock Option may be exercised, provided that the maximum
      term of a Stock Option shall be ten years from the Date of Grant. Except as
      otherwise provided in this Section 6 or as otherwise may be provided by the
      Committee, no Stock Option issued to an employee or a Non-Employee Director
      of
      the Company may be exercised at any time during the term thereof unless the
      employee or a Non-Employee Director Participant is then in the Service of the
      Company or one of its Affiliates. 

     

    6.5    Termination
      of Service.    Subject
      to Section 6.8 hereof with respect to Incentive Stock Options, the Stock Option
      of any Participant whose Service with the Company or one of its Affiliates
      is
      terminated for any reason shall terminate on the earlier of (A) the date that
      the Stock Option expires in accordance with its terms or (B) unless otherwise
      provided in an Award Agreement, and except for termination for cause (as
      described in Section 10.2 hereof), the expiration of the applicable time period
      following termination of Service, in accordance with the following: (1) twelve
      months if Service ceased due to Disability, (2) eighteen months if Service
      ceased at a time when the Participant is eligible to elect immediate
      commencement of retirement benefits at a specified retirement age under a
      pension plan to which the Company or any of its Affiliates had made
      contributions, (3) eighteen months if the Participant died while in the Service
      of the Company or any of its Affiliates, or (iv) three months if Service ceased
      for any other reason. During the foregoing applicable period, except as
      otherwise specified in the Award Agreement or in the event Service was
      terminated by the death of the Participant, the Stock Option may be exercised
      by
      such Participant in respect of the same number of shares of Common Stock, in
      the
      same manner, and to the same extent as if he or she had remained in the
      continued Service of the Company or any Affiliate during the first three months
      of such period; provided that no additional rights shall vest after such three
      months. The Committee shall have authority to determine in each case whether
      an
      authorized leave of absence shall be deemed a termination of Service for
      purposes hereof, as well as the effect of a leave of absence on the vesting
      and
      exercisability of a Stock Option. Unless otherwise provided by the Committee,
      if
      an entity ceases to be an Affiliate of the Company or otherwise ceases to be
      qualified under the Plan or if all or substantially all of the assets of an
      Affiliate of the Company are conveyed (other than by encumbrance), such
      cessation or action, as the case may be, shall be deemed for purposes hereof
      to
      be a termination of the Service. 

    
      
         

      

      
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    6.6    Stock
      Option Exercise; Tax Withholding.    Subject
      to such terms and conditions as shall be specified in an Award Agreement, a
      Stock Option may be exercised in whole or in part at any time during the term
      thereof by notice in the form required by the Company, together with payment
      of
      the aggregate exercise price therefor and applicable withholding tax. Payment
      of
      the exercise price shall be made in the manner set forth in the Award Agreement,
      unless otherwise provided by the Committee: (i) in cash or by cash equivalent
      acceptable to the Committee, (ii) by payment in shares of Common Stock that
      have
      been held by the Participant for at least six months (or such period as the
      Committee may deem appropriate, for accounting purposes or otherwise) valued
      at
      the Fair Market Value of such shares on the date of exercise, (iii) through
      an
      open-market, broker-assisted sales transaction pursuant to which the Company
      is
      promptly delivered the amount of proceeds necessary to satisfy the exercise
      price, (iv) by a combination of the methods described above or (v) by such
      other
      method as may be approved by the Committee and set forth in the Award Agreement.
      In addition to and at the time of payment of the exercise price, the Participant
      shall pay to the Company the full amount of any and all applicable income tax,
      employment tax and other amounts required to be withheld in connection with
      such
      exercise, payable under such of the methods described above for the payment
      of
      the exercise price as may be approved by the Committee and set forth in the
      Award Agreement.

     

    6.7    Limited
      Transferability of Nonqualified Stock Options.    All
      Stock Options shall be nontransferable except (i) upon the Participant’s death,
      in accordance with Section 11.2 hereof or (ii) in the case of Nonqualified
      Stock
      Options only, for the transfer of all or part of the Stock Option to a
      Participant’s “family member” (as defined for purposes of the Form S-8
      registration statement under the Securities Act of 1933), as may be approved
      by
      the Committee in its discretion at the time of proposed transfer. The transfer
      of a Nonqualified Stock Option may be subject to such terms and conditions
      as
      the Committee may in its discretion impose from time to time. Subsequent
      transfers of a Nonqualified Stock Option shall be prohibited other than in
      accordance with Section 11.2 hereof. 

     

    6.8    Additional
      Rules for Incentive Stock Options. 

     

    (a)    Eligibility.
         An
      Incentive Stock Option may only be granted to an Eligible Person who is
      considered an employee for purposes of Treasury Regulation §1.421-7(h) with
      respect to the Company or any Affiliate that qualifies as a “subsidiary
      corporation” with respect to the Company for purposes of Section 424(f) of the
      Code. 

     

    (b)     Termination
      of Employment.    An
      Award of an Incentive Stock Option may provide that such Stock Option may be
      exercised not later than 3 months following termination of employment of the
      Participant with the Company and all Subsidiaries, or not later than one year
      following a permanent and total disability within the meaning of Section
      22(e)(3) of the Code, as and to the extent determined by the Committee to comply
      with the requirements of Section 422 of the Code. 

     

    (c)    Other
      Terms and Conditions; Nontransferability.    Any
      Incentive Stock Option granted hereunder shall contain such additional terms
      and
      conditions, not inconsistent with the terms of the Plan, as are deemed necessary
      or desirable by the Committee, which terms, together with the terms of the
      Plan,
      shall be intended and interpreted to cause such Incentive Stock Option to
      qualify as an “incentive stock option” under Section 422 of the Code. An Award
      Agreement for an Incentive Stock Option may provide that such Stock Option
      shall
      be treated as a Nonqualified Stock Option to the extent that certain
      requirements applicable to “incentive stock options” under the Code shall not be
      satisfied. An Incentive Stock Option shall by its terms be nontransferable
      other
      than by will or by the laws of descent and distribution, and shall be
      exercisable during the lifetime of a Participant only by such Participant.
      

     

    (d)    Disqualifying
      Dispositions.    If
      shares of Common Stock acquired by exercise of an Incentive Stock Option are
      disposed of within two years following the Date of Grant or one year following
      the transfer of such shares to the Participant upon exercise, the Participant
      shall, promptly following such disposition, notify the Company in writing of
      the
      date and terms of such disposition and provide such other information regarding
      the disposition as the Company may reasonably require. 

    
      
         

      

      
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    6.9    Repricing
      Prohibited.    Subject
      to the adjustment provisions contained in Section 4.2 hereof, without the prior
      approval of the Company’s stockholders, evidenced by a majority of votes cast,
      neither the Committee nor the Board shall cause the cancellation, substitution
      or amendment of a Stock Option that would have the effect of reducing the
      exercise price of such a Stock Option previously granted under the Plan, or
      otherwise approve any modification to such a Stock Option that would be treated
      as a “repricing” under the then applicable rules, regulations or listing
      requirements. 

     

    7.
         Stock Awards. 

     

    7.1    Grant
      of Stock Awards.    A
      Stock Award may be granted to any Eligible Person selected by the Committee.
      A
      Stock Award may be granted for past services, in lieu of bonus or other cash
      compensation, as directors’ compensation or for any other valid purpose as
      determined by the Committee. A Stock Award granted to an Eligible Person
      represents shares of Common Stock that are issued without restrictions on
      transfer and other incidents of ownership and free of forfeiture conditions,
      except as otherwise provided in the Plan and the Award Agreement. The deemed
      issuance price of shares of Common Stock subject to each Stock Award shall
      not
      be less than 85 percent of the Fair Market Value of the Common Stock on the
      date
      of the grant. In the case of any person who owns securities possessing more
      than
      ten percent of the combined voting power of all classes of securities of the
      issuer or its parent or subsidiaries possessing voting power, the deemed
      issuance price of shares of Common Stock subject to each Stock Award shall
      be at
      least 100 percent of the Fair Market Value of the Common Stock on the date
      of
      the grant. The Committee may, in connection with any Stock Award, require the
      payment of a specified purchase price. 

     

    7.2    Rights
      as Stockholder.    Subject
      to the foregoing provisions of this Section 7 and the applicable Award
      Agreement, upon the issuance of the Common Stock under a Stock Award the
      Participant shall have all rights of a stockholder with respect to the shares
      of
      Common Stock, including the right to vote the shares and receive all dividends
      and other distributions paid or made with respect thereto. 

    

    8.    Restricted
      Stock Awards. 

     

    8.1    Grant
      of Restricted Stock Awards.    A
      Restricted Stock Award may be granted to any Eligible Person selected by the
      Committee. The deemed issuance price of shares of Common Stock subject to each
      Restricted Stock Award shall not be less than 85 percent of the Fair Market
      Value of the Common Stock on the date of the grant. In the case of any person
      who owns securities possessing more than ten percent of the combined voting
      power of all classes of securities of the issuer or its parent or subsidiaries
      possessing voting power, the deemed issuance price of shares of Common Stock
      subject to each Restricted Stock Award shall be at least 100 percent of the
      Fair
      Market Value of the Common Stock on the date of the grant. The Committee may
      require the payment by the Participant of a specified purchase price in
      connection with any Restricted Stock Award. 

     

    8.2    Vesting
      Requirements.    The
      restrictions imposed on shares granted under a Restricted Stock Award shall
      lapse in accordance with the vesting requirements specified by the Committee
      in
      the Award Agreement, provided that the Committee may accelerate the vesting
      of a
      Restricted Stock Award at any time. Such vesting requirements may be based
      on
      the continued Service of the Participant with the Company or its Affiliates
      for
      a specified time period (or periods) or on the attainment of specified
      performance goals established by the Committee in its discretion. If the vesting
      requirements of a Restricted Stock Award shall not be satisfied, the Award
      shall
      be forfeited and the shares of Common Stock subject to the Award shall be
      returned to the Company. 

     

    8.3    Restrictions.    Shares
      granted under any Restricted Stock Award may not be transferred, assigned or
      subject to any encumbrance, pledge, or charge until all applicable restrictions
      are removed or have expired, unless otherwise allowed by the Committee. Failure
      to satisfy any applicable restrictions shall result in the subject shares of
      the
      Restricted Stock Award being forfeited and returned to the Company. The
      Committee may require in an Award Agreement that certificates representing
      the
      shares granted under a Restricted Stock Award bear a legend making appropriate
      reference to the restrictions imposed, and that certificates representing the
      shares granted or sold under a Restricted Stock Award will remain in the
      physical custody of an escrow holder until all restrictions are removed or
      have
      expired. 

     

    8.4    Rights
      as Stockholder.    Subject
      to the foregoing provisions of this Section 8 and the applicable Award
      Agreement, the Participant shall have all rights of a stockholder with respect
      to the shares granted to the Participant under a Restricted Stock Award,
      including the right to vote the shares and receive all dividends and other
      distributions paid or made with respect thereto. The Committee may provide
      in an
      Award Agreement for the payment of dividends and distributions to the
      Participant at such times as paid to stockholders generally or at the times
      of
      vesting or other payment of the Restricted Stock Award. 

    
      
         

      

      
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    8.5    Section
      83(b) Election.    If
      a Participant makes an election pursuant to Section 83(b) of the Code with
      respect to a Restricted Stock Award, the Participant shall file, within 30
      days
      following the Date of Grant, a copy of such election with the Company and with
      the Internal Revenue Service, in accordance with the regulations under Section
      83 of the Code. The Committee may provide in an Award Agreement that the
      Restricted Stock Award is conditioned upon the Participant’s making or
      refraining from making an election with respect to the Award under Section
      83(b)
      of the Code. 

     

    9.
         Change in Control. 

     

    9.1    Effect
      of Change in Control.    Except
      to the extent an Award Agreement provides for a different result (in which
      case
      the Award Agreement will govern and this Section 9 of the Plan shall not be
      applicable), notwithstanding anything elsewhere in the Plan or any rules adopted
      by the Committee pursuant to the Plan to the contrary, if a Triggering Event
      shall occur within the 12-month period beginning with a Change in Control of
      the
      Company, then, effective immediately prior to such Triggering Event, each
      outstanding Stock Option, to the extent that it shall not otherwise have become
      vested and exercisable, shall automatically become fully and immediately vested
      and exercisable, without regard to any otherwise applicable vesting requirement.
      

     

    9.2    Definitions 

     

    (a)    Cause.
         For
      purposes of this Section 9, the term “Cause” shall mean a determination by the
      Committee that a Participant (i) has been convicted of, or entered a plea of
      nolo contendere to, a crime that constitutes a felony under Federal or state
      law, (ii) has engaged in willful gross misconduct in the performance of the
      Participant’s duties to the Company or an Affiliate or (iii) has committed a
      material breach of any written agreement with the Company or any Affiliate
      with
      respect to confidentiality, noncompetition, nonsolicitation or similar
      restrictive covenant. Subject to the first sentence of Section 9.1 hereof,
      in
      the event that a Participant is a party to an employment agreement with the
      Company or any Affiliate that defines a termination on account of “Cause” (or a
      term having similar meaning), such definition shall apply as the definition
      of a
      termination on account of “Cause” for purposes hereof, but only to the extent
      that such definition provides the Participant with greater rights. A termination
      on account of Cause shall be communicated by written notice to the Participant,
      and shall be deemed to occur on the date such notice is delivered to the
      Participant. 

     

    (b)    Change
      in Control.    For
      purposes of this Section 9, a “Change in Control” shall be deemed to have
      occurred upon: 

     

    (i)
      the
      occurrence of an acquisition by any individual, entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) of a percentage of the combined voting power of the then
      outstanding voting securities of the Company entitled to vote generally in
      the
      election of directors (the “Company Voting Securities”) (but excluding (1) any
      acquisition directly from the Company (other than an acquisition by virtue
      of
      the exercise of a conversion privilege of a security that was not acquired
      directly from the Company), (2) any acquisition by the Company or an Affiliate
      and (3) any acquisition by an employee benefit plan (or related trust) sponsored
      or maintained by the Company or any Affiliate) (an “Acquisition”) that is thirty
      percent (30%) or more of the Company Voting Securities; 

     

    (ii)
      at
      any time during a period of two (2) consecutive years or less, individuals
      who
      at the beginning of such period constitute the Board (and any new directors
      whose election by the Board or nomination for election by the Company’s
      stockholders was approved by a vote of at least two-thirds (2/3) of the
      directors then still in office who either were directors at the beginning of
      the
      period or whose election or nomination for election was so approved) cease
      for
      any reason (except for death, Disability or voluntary retirement) to constitute
      a majority thereof;

    
      
         

      

      
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    (iii)
      an
      Acquisition that is fifty percent (50%) or more of the Company Voting
      Securities; 

     

    (iv)
      the
      consummation of a merger, consolidation, reorganization or similar corporate
      transaction, whether or not the Company is the surviving company in such
      transaction, other than a merger, consolidation, or reorganization that would
      result in the Persons who are beneficial owners of the Company Voting Securities
      outstanding immediately prior thereto continuing to beneficially own, directly
      or indirectly, in substantially the same proportions, at least fifty percent
      (50%) of the combined voting power of the Company Voting Securities (or the
      voting securities of the surviving entity) outstanding immediately after such
      merger, consolidation or reorganization; 

     

    (v)
      the
      sale or other disposition of all or substantially all of the assets of the
      Company; 

     

    (vi)
      the
      approval by the stockholders of the Company of a complete liquidation or
      dissolution of the Company; or 

     

    (vii)
      the
      occurrence of any transaction or event, or series of transactions or events,
      designated by the Board in a duly adopted resolution as representing a change
      in
      the effective control of the business and affairs of the Company, effective
      as
      of the date specified in any such resolution. 

     

    (c)    Constructive
      Termination.    For
      purposes of this Section 9, a “Constructive Termination” shall mean a
      termination of employment by a Participant within sixty (60) days following
      the
      occurrence of any one or more of the following events without the Participant’s
      written consent (i) any reduction in position, title (for Vice Presidents or
      above), overall responsibilities, level of authority, level of reporting (for
      Vice Presidents or above), base compensation, annual incentive compensation
      opportunity, aggregate employee benefits or (ii) a request that the
      Participant’s location of employment be relocated by more than fifty (50) miles.
      Subject to the first sentence of Section 9.1 hereof, in the event that a
      Participant is a party to an employment agreement with the Company or any
      Affiliate (or a successor entity) that defines a termination on account of
      “Constructive Termination,” “Good Reason” or “Breach of Agreement” (or a term
      having a similar meaning), such definition shall apply as the definition of
      “Constructive Termination” for purposes hereof in lieu of the foregoing, but
      only to the extent that such definition provides the Participant with greater
      rights. A Constructive Termination shall be communicated by written notice
      to
      the Committee, and shall be deemed to occur on the date such notice is delivered
      to the Committee, unless the circumstances giving rise to the Constructive
      Termination are cured within five (5) days of such notice. 

     

    (d)    Triggering
      Event.    For
      purposes of this Section 9, a “Triggering Event” shall mean (i) the termination
      of Service of a Participant by the Company or an Affiliate (or any successor
      thereof) other than on account of death, Disability or Cause, (ii) the
      occurrence of a Constructive Termination or (iii) any failure by the Company
      (or
      a successor entity) to assume, replace, convert or otherwise continue any Award
      in connection with the Change in Control (or another corporate transaction
      or
      other change effecting the Common Stock) on the same terms and conditions as
      applied immediately prior to such transaction, except for equitable adjustments
      to reflect changes in the Common Stock pursuant to Section 4.2 hereof.

     

    9.3    Excise
      Tax Limit.    In
      the event that the vesting of Awards together with all other payments and the
      value of any benefit received or to be received by a Participant would result
      in
      all or a portion of such payment being subject to the excise tax under Section
      4999 of the Code, then the Participant’s payment shall be either (i) the full
      payment or (ii) such lesser amount that would result in no portion of the
      payment being subject to excise tax under Section 4999 of the Code (the “Excise
      Tax”), whichever of the foregoing amounts, taking into account the applicable
      Federal, state, and local employment taxes, income taxes, and the Excise Tax,
      results in the receipt by the Participant, on an after-tax basis, of the
      greatest amount of the payment notwithstanding that all or some portion of
      the
      payment may be taxable under Section 4999 of the Code. All determinations
      required to be made under this Section 9 shall be made by Sherb & Co., LLP
      or any other accounting firm which is the Company’s outside auditor immediately
      prior to the event triggering the payments that are subject to the Excise Tax
      (the “Accounting Firm”). The Company shall cause the Accounting Firm to provide
      detailed supporting calculations of its determinations to the Company and the
      Participant. All fees and expenses of the Accounting Firm shall be borne solely
      by the Company. The Accounting Firm’s determinations must be made with
      substantial authority (within the meaning of Section 6662 of the Code). For
      the
      purposes of all calculations under Section 280G of the Code and the application
      of this Section 9.3, all determinations as to present value shall be made using
      120 percent of the applicable Federal rate (determined under Section 1274(d)
      of
      the Code) compounded semiannually, as in effect on December 30, 2004.

    
      
         

      

      
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    10.
         Forfeiture Events. 

     

    10.1    General.
         The
      Committee may specify in an Award Agreement at the time of the Award that the
      Participant’s rights, payments and benefits with respect to an Award shall be
      subject to reduction, cancellation, forfeiture or recoupment upon the occurrence
      of certain specified events, in addition to any otherwise applicable vesting
      or
      performance conditions of an Award. Such events shall include, but shall not
      be
      limited to, termination of Service for cause, violation of material Company
      policies, breach of noncompetition, confidentiality or other restrictive
      covenants that may apply to the Participant, or other conduct by the Participant
      that is detrimental to the business or reputation of the Company. 

     

    10.2    Termination
      for Cause.    Unless
      otherwise provided by the Committee and set forth in an Award Agreement, if
      a
      Participant’s employment with the Company or any Affiliate shall be terminated
      for cause, the Company may, in its sole discretion, immediately terminate such
      Participant’s right to any further payments, vesting or exercisability with
      respect to any Award in its entirety. In the event a Participant is party to
      an
      employment (or similar) agreement with the Company or any Affiliate that defines
      the term “cause,” such definition shall apply for purposes of the Plan. The
      Company shall have the power to determine whether the Participant has been
      terminated for cause and the date upon which such termination for cause occurs.
      Any such determination shall be final, conclusive and binding upon the
      Participant. In addition, if the Company shall reasonably determine that a
      Participant has committed or may have committed any act which could constitute
      the basis for a termination of such Participant’s employment for cause, the
      Company may suspend the Participant’s rights to exercise any option, receive any
      payment or vest in any right with respect to any Award pending a determination
      by the Company of whether an act has been committed which could constitute
      the
      basis for a termination for “cause” as provided in this Section 10.2.

     

    11.
         General Provisions. 

     

    11.1    Award
      Agreement.    To
      the extent deemed necessary by the Committee, an Award under the Plan shall
      be
      evidenced by an Award Agreement in a written or electronic form approved by
      the
      Committee setting forth the number of shares of Common Stock or units subject
      to
      the Award, the exercise price, base price, or purchase price of the Award,
      the
      time or times at which an Award will become vested, exercisable or payable
      and
      the term of the Award. The Award Agreement may also set forth the effect on
      an
      Award of termination of Service under certain circumstances. The Award Agreement
      shall be subject to and incorporate, by reference or otherwise, all of the
      applicable terms and conditions of the Plan, and may also set forth other terms
      and conditions applicable to the Award as determined by the Committee consistent
      with the limitations of the Plan. Award Agreements evidencing Incentive Stock
      Options shall contain such terms and conditions as may be necessary to meet
      the
      applicable provisions of Section 422 of the Code. The grant of an Award under
      the Plan shall not confer any rights upon the Participant holding such Award
      other than such terms, and subject to such conditions, as are specified in
      the
      Plan as being applicable to such type of Award (or to all Awards) or as are
      expressly set forth in the Award Agreement. The Committee need not require
      the
      execution of an Award Agreement by a Participant, in which case, acceptance
      of
      the Award by the Participant shall constitute agreement by the Participant
      to
      the terms, conditions, restrictions and limitations set forth in the Plan and
      the Award Agreement as well as the administrative guidelines of the Company
      in
      effect from time to time. 

     

    11.2    No
      Assignment or Transfer; Beneficiaries.    Except
      as provided in Section 6.7 hereof, Awards under the Plan shall not be assignable
      or transferable by the Participant, except by will or by the laws of descent
      and
      distribution, and shall not be subject in any manner to assignment, alienation,
      pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee
      may
      provide in the terms of an Award Agreement that the Participant shall have
      the
      right to designate a beneficiary or beneficiaries who shall be entitled to
      any
      rights, payments or other benefits specified under an Award following the
      Participant’s death. During the lifetime of a Participant, an Award shall be
      exercised only by such Participant or such Participant’s guardian or legal
      representative. In the event of a Participant’s death, an Award may to the
      extent permitted by the Award Agreement be exercised by the Participant’s
      beneficiary as designated by the Participant in the manner prescribed by the
      Committee or, in the absence of an authorized beneficiary designation, by the
      legatee of such Award under the Participant’s will or by the Participant’s
      estate in accordance with the Participant’s will or the laws of descent and
      distribution, in each case in the same manner and to the same extent that such
      Award was exercisable by the Participant on the date of the Participant’s death.

    
      
         

      

      
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    11.3    Deferrals
      of Payment.    The
      Committee may in its discretion permit a Participant to defer the receipt of
      payment of cash or delivery of shares of Common Stock that would otherwise
      be
      due to the Participant by virtue of the exercise of a right or the satisfaction
      of vesting or other conditions with respect to an Award. If any such deferral
      is
      to be permitted by the Committee, the Committee shall establish rules and
      procedures relating to such deferral in a manner intended to comply with the
      requirements of Section 409A of the Code, including, without limitation, the
      time when an election to defer may be made, the time period of the deferral
      and
      the events that would result in payment of the deferred amount, the interest
      or
      other earnings attributable to the deferral and the method of funding, if any,
      attributable to the deferred amount. 

     

    11.4    Rights
      as Stockholder.    A
      Participant shall have no rights as a holder of shares of Common Stock with
      respect to any unissued securities covered by an Award until the date the
      Participant becomes the holder of record of such securities. Except as provided
      in Section 4.2 hereof, no adjustment or other provision shall be made for
      dividends or other stockholder rights, except to the extent that the Award
      Agreement provides for dividend payments or dividend equivalent rights.

     

    11.5    Employment
      or Service.    Nothing
      in the Plan, in the grant of any Award or in any Award Agreement shall confer
      upon any Eligible Person any right to continue in the Service of the Company
      or
      any of its Affiliates, or interfere in any way with the right of the Company
      or
      any of its Affiliates to terminate the Participant’s employment or other service
      relationship for any reason at any time. 

     

    11.6    Securities
      Laws.    No
      shares of Common Stock will be issued or transferred pursuant to an Award unless
      and until all then applicable requirements imposed by Federal and state
      securities and other laws, rules and regulations and by any regulatory agencies
      having jurisdiction, and by any exchanges upon which the shares of Common Stock
      may be listed, have been fully met. As a condition precedent to the issuance
      of
      shares pursuant to the grant or exercise of an Award, the Company may require
      the Participant to take any reasonable action to meet such requirements. The
      Committee may impose such conditions on any shares of Common Stock issuable
      under the Plan as it may deem advisable, including, without limitation,
      restrictions under the Securities Act of 1933, as amended, under the
      requirements of any exchange upon which such shares of the same class are then
      listed, and under any blue sky or other securities laws applicable to such
      shares. The Committee may also require the Participant to represent and warrant
      at the time of issuance or transfer that the shares of Common Stock are being
      acquired only for investment purposes and without any current intention to
      sell
      or distribute such shares. 

     

    11.7    Tax
      Withholding.    The
      Participant shall be responsible for payment of any taxes or similar charges
      required by law to be withheld from an Award or an amount paid in satisfaction
      of an Award, which shall be paid by the Participant on or prior to the payment
      or other event that results in taxable income in respect of an Award. The Award
      Agreement may specify the manner in which the withholding obligation shall
      be
      satisfied with respect to the particular type of Award. 

     

    11.8    Unfunded
      Plan.    The
      adoption of the Plan and any reservation of shares of Common Stock or cash
      amounts by the Company to discharge its obligations hereunder shall not be
      deemed to create a trust or other funded arrangement. Except upon the issuance
      of Common Stock pursuant to an Award, any rights of a Participant under the
      Plan
      shall be those of a general unsecured creditor of the Company, and neither
      a
      Participant nor the Participant’s permitted transferees or estate shall have any
      other interest in any assets of the Company by virtue of the Plan.
      Notwithstanding the foregoing, the Company shall have the right to implement
      or
      set aside funds in a grantor trust, subject to the claims of the Company’s
      creditors or otherwise, to discharge its obligations under the Plan.

     

    11.9    Other
      Compensation and Benefit Plans.    The
      adoption of the Plan shall not affect any other share incentive or other
      compensation plans in effect for the Company or any Affiliate, nor shall the
      Plan preclude the Company from establishing any other forms of share incentive
      or other compensation or benefit program for employees of the Company or any
      Affiliate. The amount of any compensation deemed to be received by a Participant
      pursuant to an Award shall not constitute includable compensation for purposes
      of determining the amount of benefits to which a Participant is entitled under
      any other compensation or benefit plan or program of the Company or an
      Affiliate, including, without limitation, under any pension or severance
      benefits plan, except to the extent specifically provided by the terms of any
      such plan. 

     

    11.10    Plan
      Binding on Transferees.    The
      Plan shall be binding upon the Company, its transferees and assigns, and the
      Participant, the Participant’s executor, administrator and permitted transferees
      and beneficiaries. 

    
      
         

      

      
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    11.11    Severability.
         If
      any provision of the Plan or any Award Agreement shall be determined to be
      illegal or unenforceable by any court of law in any jurisdiction, the remaining
      provisions hereof and thereof shall be severable and enforceable in accordance
      with their terms, and all provisions shall remain enforceable in any other
      jurisdiction. 

     

    11.12    Foreign
      Jurisdictions.    The
      Committee may adopt, amend and terminate such arrangements and grant such
      Awards, not inconsistent with the intent of the Plan, as it may deem necessary
      or desirable to comply with any tax, securities, regulatory or other laws of
      other jurisdictions with respect to Awards that may be subject to such laws.
      The
      terms and conditions of such Awards may vary from the terms and conditions
      that
      would otherwise be required by the Plan solely to the extent the Committee
      deems
      necessary for such purpose. Moreover, the Board may approve such supplements
      to
      or amendments, restatements or alternative versions of the Plan, not
      inconsistent with the intent of the Plan, as it may consider necessary or
      appropriate for such purposes, without thereby affecting the terms of the Plan
      as in effect for any other purpose. 

     

    11.13    Substitute
      Awards in Corporate Transactions.    Nothing
      contained in the Plan shall be construed to limit the right of the Committee
      to
      grant Awards under the Plan in connection with the acquisition, whether by
      purchase, merger, consolidation or other corporate transaction, of the business
      or assets of any corporation or other entity. Without limiting the foregoing,
      the Committee may grant Awards under the Plan to an employee or director of
      another corporation who becomes an Eligible Person by reason of any such
      corporate transaction in substitution for awards previously granted by such
      corporation or entity to such person. The terms and conditions of the substitute
      Awards may vary from the terms and conditions that would otherwise be required
      by the Plan solely to the extent the Committee deems necessary for such purpose.
      

     

    11.14
      Governing Law. The
      Plan
      and all rights hereunder shall be subject to and interpreted in accordance
      with
      the laws of the State of New York, without reference to the principles of
      conflicts of laws, and to applicable Federal securities laws. 

    

    11.15
      Financial Statements. All
      Participants shall receive the financial statements of the Company at least
      annually.  

    

    11.16 Performance
      Based Awards.    For
      purposes of Stock Awards and Restricted Stock Awards granted under the Plan
      that
      are intended to qualify as “performance-based” compensation under Section 162(m)
      of the Code, such Awards shall be granted to the extent necessary to satisfy
      the
      requirements of Section 162(m) of the Code. 

    

    11.17
      Stockholder Approval. The
      Plan
      must be approved by the stockholders by a majority of all shares entitled to
      vote within twelve (12) months after the date the Plan was adopted by the Board.
      Any Incentive Stock Options granted before stockholder approval is obtained
      shall be converted into Nonqualified Stock Options if stockholder approval
      is
      not obtained within twelve (12) months before or after the Plan was adopted.
      

     

    12.
         Effective Date; Amendment and Termination.

     

    12.1    Effective
      Date.    The
      Plan shall become effective following its adoption by the Board. The term of
      the
      Plan shall be ten (10) years from the date of adoption by the Board, subject
      to
      Section 12.3 hereof. 

     

    12.2    Amendment.
         
      The Board may at any time and from time to time and in any respect, amend or
      modify the Plan. The Board may seek the approval of any amendment or
      modification by the Company’s stockholders to the extent it deems necessary or
      advisable in its discretion for purposes of compliance with Section 162(m)
      or
      Section 422 of the Code, or exchange or securities market or for any other
      purpose. No amendment or modification of the Plan shall adversely affect any
      Award theretofore granted without the consent of the Participant or the
      permitted transferee of the Award. 

     

    12.3    Termination.
         The
      Plan shall terminate on the tenth anniversary of the date of its adoption by
      the
      Board. The Board may, in its discretion and at any earlier date, terminate
      the
      Plan. Notwithstanding the foregoing, no termination of the Plan shall adversely
      affect any Award theretofore granted without the consent of the Participant
      or
      the permitted transferee of the Award.  

    
      
         

      

      
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