Document:

Exhibit 10.7

                    DEBENTURE REGISTRATION RIGHTS AGREEMENT

     DEBENTURE  REGISTRATION  RIGHTS  AGREEMENT  (this "Agreement"), dated as of
July 14,  2006,  by and between SimplaGene USA, Inc.,  a Nevada corporation (the
"Company"), and Dutchess Private Equities Fund, LP and Dutchess Private Equities
Fund,  II,  LP  (collectively,  the  "Holder").

     WHEREAS,  upon  the terms and subject to the conditions of the Subscription
Agreement between the Holder and the Company (the "Subscription Agreement"), the
Company has agreed to issue and sell to the Holder convertible debentures of the
Company  (the  "Debentures"),  which  will  be convertible into shares of common
stock,  $.001  par  value  per  share  (the "Common Stock"), of the Company, and
warrants  ("Warrants")  of  the Company, which are exercisable into share of the
Company's  Common  Stock.

     WHEREAS,  to  induce  the  Holder  to  execute and deliver the Subscription
Agreement,  Warrant  Agreement,  Security  Agreement and the Debenture Agreement
(collectively,  the  "Transaction Documents"), the Company has agreed to provide
certain  registration  rights  under the Securities Act of 1933, as amended, and
the  rules  and  regulations  thereunder,  or  any  similar  successor  statute
(collectively,  the  "1933  Act"),  and  applicable  state securities laws, with
respect  to  the  shares  of  Common Stock issuable pursuant to the Subscription
Agreement,  Warrant  Agreement  and  Debenture  Agreement.

     NOW,  THEREFORE,  in consideration of the foregoing promises and the mutual
covenants  contained  hereinafter and other good and valuable consideration, the
receipt  and  sufficiency  of which are hereby acknowledged, the Company and the
Holder  hereby  agree  as  follows:

1.           DEFINITIONS.

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

a.  "Closing  Date" shall mean the date in the preamble of this Agreement but in
no  event  before  the  closing of the transaction outlined in the Agreement and
Plan  of  Reorganization  between  New  Colorado  Prime  Holdings,  Inc  and its
subsidiaries  and  SimplaGene,  USA,  Inc.

b.  "Debenture"  or  "Debentures"  mean  the convertible debenture issued by the
Company  to  the  Holder.

c.  "Holder"  shall mean Dutchess Private Equities Fund, LP and Dutchess Private
Equities  Fund,  II,  LP.

d.  "Effective  Date"  shall  mean  the  date  the  United States Securities and
Exchange  Commission  ("SEC")  has declared the Registration Statement effective
and  the  Company  has  filed  all necessary amendments, including the letter to
request  accelerated  effectiveness  and  the  Prospectus covering the resale of
Registrable  Securities.

e.  "Face  Amount"  means two million five hundred thousand dollars ($2,500,000)
to  be  invested  by  the  Holder.

f.   "Filing Date" shall mean the date the Registration Statement has been filed
with  the  SEC (as determined by EDGAR) and no stop order of acceptance has been
issued  by  the  SEC.

g.   "Person"  means a corporation, a limited liability company, an association,
a  partnership,  an  organization,  a business, an individual, a governmental or
political  subdivision  thereof  or  a  governmental  agency.

h.  "Potential Material Event" means any of the following: (i) the possession by
the  Company  of  material information not ripe for disclosure in a Registration
Statement, which shall be evidenced by determinations in good faith by the Board
of  Directors  of  the  Company  that  disclosure  of  such  information  in the
Registration  Statement  would be detrimental to the business and affairs of the
Company, or (ii) any event or activity concerning the Company which would, based
on  a  good  faith  determination by the Company's Board of Directors, adversely
affect  the  Company  or  its shareholders if it were included in a Registration
Statement  or  other  filing.

i.  "Principal  Market"  means either The American Stock Exchange, Inc., The New
York Stock Exchange, Inc., the Nasdaq National Market, The Nasdaq Capital Market
or the National Association of Securities Dealer's, Inc. OTC electronic bulletin
board, or Pink Sheets (provided the Company maintains the reporting requirements
associated with OTC BB or higher) whichever is the principal market on which the
Common  Stock  is  listed.

j.  "Register,"  "Registered,"  and  "Registration"  refer  to  a  registration
effected  by  preparing  and  filing  with  the  SEC  one  or  more Registration
Statements  in  compliance  with the 1933 Act and pursuant to Rule 415 under the
1933 Act or any successor rule providing for offering securities on a continuous
basis  ("Rule  415"),  and  effectiveness  of  such  Registration  Statement(s).

k.  "Registrable Securities" means the ten million (10,000,000) shares of Common
Stock  issued  or  issuable (i) pursuant to the Subscription Agreement, and (ii)
any  shares  of  capital stock issued or issuable with respect to such shares of
Common  Stock  and  Warrants,  if  any,  as  a  result of any stock split, stock
dividend,  recapitalization,  exchange or similar event or otherwise, which have
not  been  (x)  included  in  a  Registration  Statement  that has been declared
effective by the SEC, (y) sold under circumstances meeting all of the applicable
conditions  of  Rule  144,  promulgated under the Securities Act of 1933 (or any
similar  provision  then  in  force)  under the 1933 Act or (z) saleable without
limitation as to time, manner and volume pursuant to Rule 144(k) (or any similar
provision  then  in  force)  under  the  1933  Act.
l.  "Registration Statement" means a registration statement of the Company filed
under  the  1933  Act.

m.  "$"  and/or  "Dollar"  shall  mean  legal  currency  of the United States of
America.

     All  capitalized  terms  used  in  this Agreement and not otherwise defined
herein  shall  have  the  same  meaning  ascribed  to  them  in the Subscription
Agreement  or  Debenture  Agreement.

     For the purposes of determining dates for penalties or filing deadlines, as
outlined  in  this  Agreement, both parties agree that the date given by the SEC
shall  constitute  the  official  date.

     2.     REGISTRATION.

a.     Mandatory Registration.  Within thirty (30) days of the Closing Date, the
Company  shall  prepare  and  file  with  the  SEC  a  Registration Statement or
Registration  Statements  (as  is  necessary)  on Form SB-2 (or, if such form is
unavailable for such a registration, on such other form as is available for such
a registration), covering the resale of all of the Registrable Securities, which
Registration  Statement(s)  shall  state  that,  in  accordance  with  Rule  416
promulgated  under  the  1933  Act, such Registration Statement also covers such
indeterminate number of additional shares of Common Stock as may become issuable
upon  stock  splits, stock dividends or similar transactions.  The Company shall
initially  register  for resale ten million (10,000,000) shares of Common Stock.
In  the event the Company cannot register sufficient shares of Common Stock, due
to the remaining number of authorized shares of Common Stock being insufficient,
the  Company  will use its best efforts to register the maximum number of shares
it can based on the remaining balance of authorized shares and will use its best
efforts  to  increase  the number of its authorized shares as soon as reasonably
practicable.

b.     The Company shall use its best efforts to have the Registration Statement
filed  with  the  SEC  within  thirty  (30) calendar days after the Closing Date
("Filing  Deadline").  If  the  Registration  Statement covering the Registrable
Securities  required  to be filed by the Company pursuant to Section 2(a) hereof
is  not  filed by the Filing Deadline, then the Company shall pay the Holder the
sum  of  two  percent  (2%) per month, pro rata for partial periods, of the Face
Amount  of  the  Debentures  outstanding  as  liquidated  damages,  and not as a
penalty,  until  such  time  as filed with the SEC.  In addition, if the Company
fails to file the Registration Statement by the fifth calendar day following the
Filing Deadline, and for each fifteen (15) day calendar period the Company fails
to  file  the  Registration  Statement  thereafter,  the Conversion Price of the
Debentures  will decrease by ten percent (10%) of the original Conversion Price,
as  defined  in  Section 3.2 (c) of the Debenture Agreement of this date between
the  Company  and  the  Holder.  For  example,  in  the  event  that  upon  the
thirty-sixth  (36th)  day  following Closing, the Registration Statement has not
been  filed  with  the  SEC,  the Conversion Price shall decrease by ten percent
(10%).  The  Holder  shall  have  the  right  to  lower  the Conversion Price as
described  herein,  at  the  time  of  each  conversion.

     Notwithstanding  the foregoing, the amounts payable by the Company pursuant
to  this  Section  shall not be payable to the extent any delay in the filing of
the  Registration  Statement occurs because of an act of, or a failure to act or
to  act  timely  by  the  Holder  or  is  otherwise  attributable to the Holder.

     The  liquidated  damages set forth in this Section shall continue until the
obligation  is  fulfilled and shall be paid within three (3) business days after
each  thirty  (30)  day  period,  or  portion  thereof,  until  the Registration
Statement  is  filed.  Failure  of the Company to make payment within said three
(3) business days shall be considered a breach of this Agreement, and the Holder
may  elect  to  pursue  remedies  as  outlined  in  this  Section.

     The  Company  acknowledges  that  its  failure  to  have  the  Registration
Statement  filed  within  said  thirty  (30)  calendar day period will cause the
Holder  to  suffer  irreparable  harm,  and,  that  damages will be difficult to
ascertain.  Accordingly,  the parties agree that it is appropriate to include in
this  Agreement a provision for liquidated damages.  The parties acknowledge and
agree that the liquidated damages provision set forth in this section represents
the parties' good faith effort to quantify such damages and, as such, agree that
the  form  and  amount  of  such  liquidated damages are reasonable and will not
constitute  a  penalty.  The payment of liquidated damages shall not relieve the
Company from its obligations to register the Common Stock and deliver the Common
Stock  pursuant  to  the terms of this Agreement, the Subscription Agreement and
the  Debenture.

c.     The  Company  shall  use its best efforts and take all available steps to
have the Registration Statement declared effective by the SEC within one hundred
and  thirty-five (135) calendar days after the Closing Date. If the Registration
Statement  covering  the  Registrable  Securities  required  to  be filed by the
Company  pursuant  to  Section  2(a)  hereof has not become effective within one
hundred and thirty-five (135) calendar days following the Closing Date, then the
Company  shall  pay the Holder the sum of two percent (2%) of the Face Amount as
liquidated  damages,  and  not  as  a penalty, for each thirty (30) calendar day
period,  pro  rata  for  partial  periods,  compounded  daily, following the one
hundred  and  thirty-five  (135)  calendar  day  period  until  the Registration
Statement  becomes  effective.

     If  the Registration Statement covering the Registrable Securities required
to be filed by the Company pursuant to Section 2(a) hereof has become effective,
and,  thereafter,  the Holder's right to sell is suspended, for any reason, then
the  Company shall pay the Holder the sum of two percent (2%) of the Face Amount
plus  interest  and  penalties  due to the Holder for the Registrable Securities
pursuant to the Subscription Agreement for each thirty (30) calendar day period,
pro  rata for partial periods, compounded daily, following the suspension, until
such  suspension  ceases.

     Notwithstanding  the foregoing, the amounts payable by the Company pursuant
to  this  Section  shall  not  be  payable  to  the  extent  any  delay  in  the
effectiveness  of  the  Registration  Statement  or  any  suspension  of  the
effectiveness  occurs because of an act of, or a failure to act or to act timely
by  the  Holder  or  is  otherwise  attributable  to  the  Holder.

     The  damages  set forth in this Section shall continue until the obligation
is  fulfilled  and  shall  be paid within three (3) business days after each ten
(10)  day  period,  or  portion  thereof,  until  the  Registration Statement is
declared  effective  or  such suspension is released.  Failure of the Company to
make  payment within said three (3) business days shall be considered a default.

     The  Company  acknowledges  that  its  failure  to  have  the  Registration
Statement becomeeffective within said one hundred and thirty-five (135) calendar
day  period or to permit the suspension of the effectiveness of the Registration
Statement,  will  cause  the Holder to suffer irreparable harm and, that damages
will  be  difficult  to  ascertain.  Accordingly,  the  parties agree that it is
appropriate  to  include  in  this Agreement a provision for liquidated damages.
The  parties  acknowledge  and  agree  that the liquidated damages provision set
forth in this section represents the parties' good faith effort to quantify such
damages  and, as such, agree that the form and amount of such liquidated damages
are  reasonable  and  will  not constitute a penalty.  The payment of liquidated
damages  shall  not  relieve  the  Company  from its obligations to register the
Common  Stock  and  deliver  the  Common  Stock  pursuant  to  the terms of this
Agreement,  the  Subscription  Agreement  and  the  Debenture.

d.     The  Company  agrees to only register such securities as are necessary to
meet  its  obligations  to  the Holder and its obligation incurred in connection
with  the  transactions  outlined  in  the  Agreement and Plan of Reorganization
between  New  Colorado  Prime  Holdings and SimplaGene USA, Inc. and its related
agreements,  and  agrees  not  to  register  additional  securities  without the
Holder's  prior  written consent.  The Holder has agreed to allow the Company to
register  all  the  shares  owned  by  Crusader  Securities  and Craig Laughlin.
Furthermore,  the  Company  agrees  that it will not file any other Registration
Statement,  including  those on Form S-8 unless pursuant to a bona fide employee
stock  option  plan  as  outlined  in  Section  3 (v) the Subscription Agreement
between  the  Company  and  the Holder of this date, for other securities, until
three  hundred  and sixty (360) calendar days after the Effective Date unless it
has  the prior written approval from the Holder, which shall not be unreasonably
withheld.

     3.     RELATED  OBLIGATIONS.

     At such time as the Company is obligated to prepare and file a Registration
Statement  with  the SEC pursuant to Section 2(a), the Company will use its best
efforts  to  effect the registration of the Registrable Securities in accordance
with  the  intended method of disposition thereof and, with respect thereto, the
Company  shall  have  the  following  obligations:

a.     The  Company  shall  use  its  best  efforts  to  cause such Registration
Statement  relating to the Registrable Securities to become effective within one
hundred  and  thirty-five  (135)  calendar days after the Closing Date and shall
keep  such  Registration Statement effective pursuant to Rule 415 until the date
on  which  (A)  the Holder shall have sold all the Registrable Securities or the
shares  included  therein  otherwise cease to be Registrable Securities, and (B)
the  Holder  has  no  right  to convert the securities it owns into Common Stock
under  the  Subscription  Agreement,  Debenture  Agreement or Warrant Agreement,
respectively  (the  "Registration  Period"),  which  Registration  Statement
(including  any  amendments  or  supplements  thereto and prospectuses contained
therein)  shall,  as  of the date thereof, not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein, in light of the circumstances in which
they  were  made,  not  misleading. The Company shall respond to any and all SEC
comments  or correspondence, whether written or oral, direct or indirect, formal
or informal ("Comments"), within twenty-one (21) calendar days of receipt by the
Company  of  such Comments, the date of any such Comments shall be determined by
the  SEC's date of the comment letter, for the initial comment round received by
the  SEC.  For  each  subsequent comment letter received by the Company from the
SEC, the Company agrees to respond to all Comments within fourteen (14) calendar
days.   If  the  Company fails to respond within fourteen (14)  business days of
receipt  of SEC Comments, the Company shall pay to the Holder an amount equal to
two  percent  (2%) per month, on a pro rata basis, compounded daily, of the Face
Amount  as  liquidated  damages  and  not  as  a penalty, until such response is
submitted;  provided that the fourteen (14)  business day period provided herein
shall  be  extended  as  may  be  required  by delays caused by Holder's counsel
pursuant to paragraph 3(g) below, and, provided further, that such fourteen (14)
business day period shall be extended two (2) business days for responses to SEC
staff  accounting  comments.  The Company shall cause the Registration Statement
relating  to the Registrable Securities to become effective by filing the letter
requesting  acceleration  of  effectiveness  no later than two (2) business days
after  notice  from  the SEC that the Registration Statement has been cleared of
all  comments. Failure to do so will result in the Face Amount of the Debentures
to  be  increased,  as liquidated damages, by five percent (5%) per calendar day
for  each  day  that the Company does not request acceleration for effectiveness
from  the  SEC.

b.     The  Company  shall  prepare  and  file  with  the  SEC  such  amendments
(including  post-effective  amendments)  and  supplements  to  a  Registration
Statement  and  the  prospectus  used  in  connection  with  such  Registration
Statement,  which  prospectus  is  to  be filed pursuant to Rule 424 promulgated
under  the  1933  Act,  as  may be necessary to keep such Registration Statement
effective  during  the Registration Period, and, during such period, comply with
the  provisions  of  the  1933  Act  with  respect  to  the  disposition  of all
Registrable  Securities  of  the  Company covered by such Registration Statement
until  such  time as all of such Registrable Securities shall have been disposed
of  in  accordance with the intended methods of disposition by the Holder as set
forth  in  such  Registration  Statement.  In  the event the number of shares of
Common  Stock  available  under  a Registration Statement filed pursuant to this
Agreement  is  at  any  time  insufficient  to  cover  all  of  the  Registrable
Securities,  the  Company shall amend such Registration Statement, or file a new
Registration Statement (on the short form available therefor, if applicable), or
both, so as to cover all of the Registrable Securities, in each case, as soon as
practicable,  but  in  any  event  within  thirty  (30)  calendar days after the
necessity  therefor arises (based on the then Purchase Price of the Common Stock
and  other  relevant  factors  on  which the Company reasonably elects to rely),
assuming  the  Company  has sufficient authorized shares at that time, and if it
does  not,  within  thirty  (30) calendar days after such shares are authorized.
The  Company  shall  use  it  best  efforts  to  cause such amendment and/or new
Registration  Statement to become effective as soon as practicable following the
filing  thereof.

     Prior to conversion of all the Debentures, if at any time the conversion of
all  the  Debentures  outstanding  would  result  in  an  insufficient number of
authorized  shares of Common Stock being available to cover all the conversions,
or  in  the  event  that  Holder  deems  that  the Shares authorized will become
insufficient,  the  Company  will  move to call and hold a shareholder's meeting
within  thirty (30) calendar days for the sole purpose of authorizing additional
shares  of  Common  Stock  to facilitate the conversions.   In such an event the
Company  shall  recommend  to  all shareholders and management of the Company to
vote  their  shares  in  favor  of increasing the authorized number of shares of
Common Stock in sufficient number to fully cover the Holder's conversion rights.
The  Company represents and warrants that under no circumstances will it deny or
prevent Holder's right to convert the Debentures as permitted under the terms of
the  Subscription  Agreement or the Debenture Registration Rights Agreement. The
Holder retains the right to request additional shares upon the determination the
company  may  not  be  able  to  facilitate  conversions  in  the  future.

c     The Company shall furnish to the Holder the Registration Statement and its
legal  counsel,  if  so requested by the Holder, without charge and upon request
(i) promptly after the same is prepared and filed with the SEC at least one copy
of such Registration Statement and any amendment(s) thereto, including financial
statements  and  schedules,  all documents incorporated therein by reference and
all  exhibits, the prospectus included in such Registration Statement (including
each  preliminary  prospectus)  and,  with  regards  to  such  Registration
Statement(s),  any  correspondence  by or on behalf of the Company to the SEC or
the staff of the SEC and any correspondence from the SEC or the staff of the SEC
to  the  Company  or  its  representatives,  (ii)  upon the effectiveness of any
Registration  Statement,  a copy of the prospectus included in such Registration
Statement  and  all  amendments and supplements thereto (or such other number of
copies  as  the  Holder  may reasonably request) and (iii) such other documents,
including  copies  of  any  preliminary  or  final prospectus, as the Holder may
reasonably  request  from time to time in order to facilitate the disposition of
the  Registrable Securities.  The Company filing the documents described in this
paragraph  through  the  Electronic Data Gathering Analysis and Retrieval System
("EDGAR")  shall  constitute  delivery.

d.     The  Company shall use reasonable efforts to (i) register and qualify the
Registrable  Securities covered by a Registration Statement under the applicable
securities  or "blue sky" laws of such states of the United States as reasonably
specified  by  the  Holder,  (ii)  prepare and file in those jurisdictions, such
amendments  (including  post-effective  amendments)  and  supplements  to  such
registrations  and  qualifications  as  may  be  necessary  to  maintain  the
effectiveness  thereof  during  the  Registration  Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect  at  all  times  during  the Registration Period, and (iv) take all other
actions  reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required  in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but  for  this  Section 3(d), (y) subject itself to general taxation in any such
jurisdiction,  or  (z)  file a general consent to service of process in any such
jurisdiction.  The  Company  shall  promptly  notify  the  Holder  who  holds
Registrable  Securities  of  the receipt by the Company of any notification with
respect  to  the  suspension  of the registration or qualification of any of the
Registrable  Securities  for sale under the securities or "blue sky" laws of any
jurisdiction  in  the  United  States  or  its  receipt  of actual notice of the
initiation  or  threatening  of  any  proceeding  for  such  purpose.

e.  The  Company shall immediately notify the Holder in writing of the happening
of  any  event  as  a  result of which the prospectus included in a Registration
Statement,  as  then  in  effect,  would  then  contain an untrue statement of a
material  fact  or  omission  to state a material fact, which would otherwise be
required  to  be  stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; and, as a
result,  is required to be supplemented or as a result of which the Registration
Statement  is  required  to  be  amended  ("Registration  Default")  and use all
diligent efforts to promptly prepare any necessary supplement to such prospectus
or  amendment  to such Registration Statement and take any other necessary steps
to  cure  the Registration Default, (which, if such Registration Statement is on
Form  S-3,  may  consist  of  a document to be filed by the Company with the SEC
pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below)
and  to  be  incorporated by reference in the prospectus) to correct such untrue
statement  or omission, and deliver one (1) copy of such supplement or amendment
to  Holder  (or  such  other  number of copies as Holder may reasonably request;
delivery  via EDGAR shall constitute delivery). Failure to cure the Registration
Default  within  seven  (7)  business  days  shall  result in the Company paying
liquidated  damages  of  two  percent  (2%)  of  the  outstanding balance on the
Debentures  then  held by the Holder for each thirty (30) calendar day period or
portion  thereof,  until cured, beginning on the date of suspension. The Company
shall  also  promptly  notify  Holder  in  writing  (i) when a prospectus or any
prospectus  supplement  or  post-effective  amendment has been filed, and when a
Registration  Statement  or  any  post-effective  amendment has become effective
(notification of such effectiveness shall be delivered to Holder by facsimile on
the  same  day of such effectiveness and by overnight mail), (ii) of any request
by  the SEC for amendments or supplements to a Registration Statement or related
prospectus  or  related  information,  (iii)  of  the  Company's  reasonable
determination  that a post-effective amendment to a Registration Statement would
be  appropriate,  (iv)  in  the  event  the  Registration Statement is no longer
effective  or, (v) the Registration Statement is stale for a period of more than
three  (3)  Trading Days as a result of the Company's failure to timely file its
financials  with  the  SEC.

     The  Company acknowledges that its failure to cure the Registration Default
within  seven (7) business days will cause the Holder irreparable harm, and that
damages  will be difficult to ascertain.  Accordingly, the parties agree that it
is  appropriate to include in this Agreement a provision for liquidated damages.
The  parties  acknowledge  and  agree  that the liquidated damages provision set
forth in this section represents the parties' good faith effort to quantify such
damages  and, as such, agree that the form and amount of such liquidated damages
are  reasonable  and  will  not  constitute  a  penalty.

It  is the intention of the parties that interest payable under any of the terms
of  this  Agreement  shall  not  exceed  the  maximum amount permitted under any
applicable law. If a law, which applies to this Agreement which sets the maximum
interest  amount, is finally interpreted so that the interest in connection with
this  Agreement  exceeds the permitted limits, then: (1) any such interest shall
be  reduced  by  the  amount  necessary  to reduce the interest to the permitted
limit; and (2) any sums already collected (if any) from the Company which exceed
the  permitted limits will be refunded to the Company.  The Holder may choose to
make  this  refund  by  reducing  the  amount  that  the Company owes under this
Agreement or by making a direct payment to the Company.  If a refund reduces the
amount  that  the  Company  owes  the Holder, the reduction will be treated as a
partial payment.  In the event that any provision of this Agreement is held by a
court of competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible,
so  that  it is enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Agreement will not in any way
be  affected  or  impaired  thereby.

f.     The  Company  shall  use  its best efforts to prevent the issuance of any
stop order or other  suspension of effectiveness of a Registration Statement, or
the  suspension  of  the  qualification of any of the Registrable Securities for
sale  in  any  jurisdiction  and,  if such an order or suspension is issued,  to
obtain  the  withdrawal  of  such  order  or suspension at the earliest possible
moment  and  to  notify  the  Holder  of  the  issuance  of  such  order and the
resolution  thereof.  The  Company  will  immediately  notify  the  Holder  of a
proceeding,  or  threat  of  proceeding,  the  result  of which could effect the
effectiveness  of  the  registration  statement.

g.     The  Company  shall  permit  the  Holder and its counsel, of the Holder's
choosing, to review and comment upon all Registration Statements, amendments and
supplements, at least five (5) days prior to filing.  The Company shall not file
any  Registration Statement with which Holder or its counsel reasonably objects.

h.     Intentionally  Omitted.

i.     The  Company  shall  make  available for inspection by (i) the Holder and
(ii)  one firm of attorneys and one firm of accountants or other agents retained
by the Holder (collectively, the "Inspectors") all pertinent financial and other
records,  and  pertinent  corporate  documents  and  properties  of  the Company
(collectively,  the  "Records"), as shall be reasonably deemed necessary by each
Inspector,  and  cause the Company's officers, directors and employees to supply
all  information  which any Inspector may reasonably request; provided, however,
that  each  Inspector  shall  hold  in  strict confidence and shall not make any
disclosure  (except  to  the  Holder)  or use of any Record or other information
which  the  Company  determines  in  good faith to be confidential, and of which
determination  the Inspectors are so notified, unless (a) the disclosure of such
Records  is  necessary  to  avoid  or  correct a misstatement or omission in any
Registration  Statement  or  is  otherwise  required under the 1933 Act, (b) the
release  of such Records is ordered pursuant to a final, non-appealable subpoena
or  order  from a court or government body of competent jurisdiction, or (c) the
information  in  such  Records  has  been made generally available to the public
other  than  by  disclosure in violation of this or any other agreement of which
the  Inspector  has  knowledge.  The  Holder agrees that it shall, upon learning
that  disclosure of such Records is sought in or by a court or governmental body
of  competent  jurisdiction  or  through  other means, give prompt notice to the
Company  and  allow the Company, at its expense, to undertake appropriate action
to  prevent  disclosure  of,  or  to  obtain a protective order for, the Records
deemed  confidential.

j.     The  Company  shall  hold  in  confidence  and not make any disclosure of
information  concerning  the Holder unless (i) disclosure of such information is
necessary  to  comply with federal or state securities laws, (ii) the disclosure
of  such information is necessary to avoid or correct a misstatement or omission
in  any Registration Statement, (iii) the release of such information is ordered
pursuant  to  a  subpoena  or  other final, non-appealable order from a court or
governmental  body  of competent jurisdiction, or (iv) such information has been
made  generally available to the public other than by disclosure in violation of
this  Agreement  or any other agreement.  The Company agrees that it shall, upon
learning that disclosure of such information concerning a Holder is sought in or
by  a  court  or  governmental  body  of competent jurisdiction or through other
means,  give  prompt  written  notice to the Holder and allow the Holder, at the
Holder's  expense,  to undertake appropriate action to prevent disclosure of, or
to  obtain  a  protective  order  for,  such  information.

k.     The  Company  shall  use  its  best  efforts  to  secure  designation and
quotation  of  all  the  Registrable  Securities  covered  by  any  Registration
Statement  on the Principal Market.  If, despite the Company's best efforts, the
Company  is  unsuccessful  in  satisfying this obligation, it shall use its best
efforts  to  cause  all  the  Registrable Securities covered by any Registration
Statement  to be listed on each other national securities exchange and automated
quotation system, if any, on which securities of the same class or series issued
by  the  Company  are  then  listed,  if any, if the listing of such Registrable
Securities  is  then  permitted under the rules of such exchange or system.  If,
despite  the  Company's  best efforts, the Company is unsuccessful in satisfying
its  obligation  in  this  Section,  it  will use its best efforts to secure the
inclusion  for  quotation with Pink Sheets, LLC.  The Company shall pay all fees
and  expenses  in  connection  with satisfying its obligation under this Section
3(k).

l.     The  Company  shall  cooperate  with  the Holder to facilitate the timely
preparation  and  delivery  of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement  and  enable such certificates to be in such denominations or amounts,
as  the case may be, as the Holder may reasonably request and registered in such
names  of  the  Persons  who  shall acquire such Registrable Securities from the
Holder,  as  the  Holder  may  request.

m.     The  Company  shall  provide  a  transfer  agent  for all the Registrable
Securities  not  later than the Closing Date of the first Registration Statement
filed  pursuant  hereto.

n.     If  requested  by the Holder, the Company shall (i) as soon as reasonably
practical,  incorporate  in  a prospectus supplement or post-effective amendment
such  information  as  Holder  reasonably  determines should be included therein
relating  to  the  sale  and  distribution of Registrable Securities, including,
without  limitation, information with respect to the offering of the Registrable
Securities  to  be sold in such offering; (ii) make all required filings of such
prospectus  supplement  or  post-effective  amendment as soon as notified of the
matters  to  be  incorporated  in  such  prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any Registration Statement
if  reasonably  requested  by  Holder.

o.     The  Company  shall  use  its  best  efforts  to  cause  the  Registrable
Securities  covered  by  the  applicable Registration Statement to be registered
with  or  approved  by such other governmental agencies or authorities as may be
necessary  to  consummate  the  disposition  of  such  Registrable  Securities.

p.     The  Company  shall  make  available  to the Holder as soon as reasonably
practical,  but  not later than ninety (90) calendar days after the close of the
period  covered  thereby,  an  earnings  statement  (in  form complying with the
provisions  of  Rule  158  under  the  1933  Act) covering a twelve-month period
beginning  not  later  than  the  first day of the Company's fiscal quarter next
following  the  effective  date of any Registration Statement.  Filing via EDGAR
shall  constitute  delivery.

q.     The  Company  shall  otherwise  use  its  best efforts to comply with all
applicable  rules and regulations of the SEC in connection with any registration
hereunder.

r.     Within  one  (1)  business  day  after  the  Registration Statement which
includes  Registrable  Securities  is declared effective by the SEC, the Company
shall  deliver, and shall cause legal counsel for the Company to deliver, to the
transfer  agent  for  such  Registrable  Securities,  with copies to the Holder,
confirmation that such Registration Statement has been declared effective by the
SEC  in  the  form  attached  hereto  as  Exhibit  A.

s.     After  the SEC declares the Registration Statement is declared effective,
the  Company  shall  file  a  prospectus  covering  the  resale  of  the  Shares
("Prospectus")  within  two (2) trading days.  In the event the Company does not
file  the Prospectus within two (2) trading days of the Effective Date, then the
Holder  shall have the right to request the sum of five percent (5%) of the Face
Amount  due  to  the  Holder  for  each  two  (2)  trading day period, pro rata,
compounded  daily, following the two (2) trading day period until the Prospectus
is  filed.

t.     The Company shall take all other reasonable actions necessary to expedite
and  facilitate disposition by the Holder of the Registrable Securities pursuant
to  a  Registration  Statement.

     4.     OBLIGATIONS  OF  THE  HOLDER.

a.     At  least  five  (5)  calendar days prior to the first anticipated filing
date of a Registration Statement, the Company shall notify the Holder in writing
of  the information the Company requires from the Holder.   The Holder covenants
and  agrees  that, in connection with any resale of Registrable Securities by it
pursuant  to  a  Registration  Statement,  it  shall  comply  with  the "Plan of
Distribution"  section  of  the current prospectus relating to such Registration
Statement.

b.     The  Holder,  by  the  Holder's acceptance of the Registrable Securities,
agrees  to  cooperate with the Company as reasonably requested by the Company in
connection  with  the  preparation  and  filing  of  any  Registration Statement
hereunder  and  in  responding  to  SEC  comments  in  connection  therewith.

c.     The  Holder  agrees  that, upon receipt of any notice from the Company of
the  happening  of  any event of the kind described in Section 3(f) or the first
sentence  of  3(e),  the  Holder  will  immediately  discontinue  disposition of
Registrable  Securities  pursuant to any Registration Statement(s) covering such
Registrable  Securities until Holder's receipt of the copies of the supplemented
or  amended  prospectus  contemplated  by  Section 3(f) or the first sentence of
3(e).

     5.     EXPENSES  OF  REGISTRATION.

     All  expenses,  other than underwriting discounts and commissions, incurred
in connection with registrations, filings or qualifications pursuant to Sections
2  and  3,  including,  without  limitation,  all  registration,  listing  and
qualifications  fees,  printing  and  accounting  fees,  and reasonable fees and
disbursements  of  counsel  for  the  Company shall be paid by, and are the sole
obligation  of,  the  Company.

     6.     INDEMNIFICATION.

     In  the  event  any  Registrable  Securities are included in a Registration
Statement  under  this  Agreement:

a.          To the fullest extent permitted by law, the Company will, and hereby
agrees  to,  indemnify,  hold  harmless  and  defend  the  Holder who holds such
Registrable  Securities,  the  directors, officers, partners, employees, agents,
representatives  of,  and  each  Person,  if any, who controls Holder within the
meaning  of the 1933 Act or the Securities Exchange Act of 1934, as amended (the
"1934  Act")  (each,  an  "Indemnified  Person"),  against  any  losses, claims,
damages,  liabilities,  judgments,  fines, penalties, charges, costs, attorneys'
fees,  amounts  paid  in settlement or expenses, joint or several (collectively,
"Claims"),  incurred in investigating, preparing or defending any action, claim,
suit,  inquiry,  proceeding, investigation or appeal taken from the foregoing by
or  before any court or governmental, administrative or other regulatory agency,
body  or  the  SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
may  become  subject  insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any  untrue  statement  or  alleged  untrue  statement  of  a material fact in a
Registration  Statement or any post-effective amendment thereto or in any filing
made  in  connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered  ("Blue  Sky  Filing"),  or  the omission or alleged omission to state a
material  fact required to be stated therein or necessary to make the statements
therein,  in  light of the circumstances under which the statements therein were
made, not misleading, (ii) any untrue statement or alleged untrue statement of a
material  fact contained in the final prospectus (as amended or supplemented, if
the  Company  files any amendment thereof or supplement thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make  the statements made therein, in light of the circumstances under which the
statements  therein were made, not misleading, or (iii) any violation or alleged
violation  by  the  Company  of  the  1933  Act,  the  1934  Act, any other law,
including,  without  limitation,  any  state  securities  law,  or  any  rule or
regulation  thereunder  relating  to  the  offer  or  sale  of  the  Registrable
Securities  pursuant  to  a Registration Statement (the matters in the foregoing
clauses  (i)  through  (iii) being, collectively, "Violations").  Subject to the
restrictions  set  forth  in  Section  6(c)  with respect to the number of legal
counsel,  the  Company  shall  reimburse  the  Holder  and each such controlling
person,  promptly as such expenses are incurred and are due and payable, for any
reasonable  legal  fees  or  other  reasonable  expenses  incurred  by  them  in
connection  with  investigating  or  defending  any  such Claim. Notwithstanding
anything  to  the  contrary  contained  herein,  the  indemnification  agreement
contained in this Section 6(a): (i) shall not apply to a Claim arising out of or
based  upon  a  Violation committed by any Indemnified Person or which occurs in
reliance  upon  and  in  conformity with information furnished in writing to the
Company  by  any  Indemnified  Person  expressly  for use in connection with the
preparation  of  the  Registration  Statement  or  any such amendment thereof or
supplement thereto, if such prospectus were timely made available by the Company
pursuant  to  Section 3(c); (ii) shall not be available to the extent such Claim
is  based  on (a) a failure of the Holder to deliver or to cause to be delivered
the prospectus made available by the Company or (b) the Indemnified Person's use
of  an  incorrect  prospectus  despite  being promptly advised in advance by the
Company  in  writing  not  to use such incorrect prospectus; and (iii) shall not
apply  to amounts paid in settlement of any Claim if such settlement is effected
without  the  prior  written  consent of the Company, which consent shall not be
unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless  of  any investigation made by or on behalf of the Indemnified Person
and  shall  survive  the  resale  of  the  Registrable  Securities by the Holder
pursuant  to  the  Registration  Statement.

b.          In connection with any Registration Statement in which the Holder is
participating,  the  Holder  agrees to severally and not jointly indemnify, hold
harmless  and defend, to the  same extent and in the same manner as is set forth
in  Section  6(a), the Company, each of its  directors, each of its officers who
signs  the Registration Statement, each Person, if any, who controls the Company
within  the  meaning  of the 1933 Act or the 1934 Act (collectively and together
with  an  Indemnified  Person,  an  "Indemnified  Party"),  against any Claim or
Indemnified Damages to which any of them may become subject, under the 1933 Act,
the  1934  Act  or otherwise, insofar as such Claim or Indemnified Damages arise
out  of or are based upon any Violation, in each case to the extent, and only to
the  extent,  that such Violation occurs in reliance upon and in conformity with
written  information  furnished  to  the  Company by Holder expressly for use in
connection  with  such  Registration  Statement;  and,  subject to Section 6(c),
Holder will reimburse any legal or other expenses reasonably incurred by them in
connection  with  investigating  or defending any such Claim; provided, however,
that  the  indemnity  agreement contained in this Section 6(b) and the agreement
with  respect  to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written  consent  of  Holder,  which consent shall not be unreasonably withheld;
provided,  further,  however, that the Holder shall be liable under this Section
6(b)  for  only that amount of a Claim or Indemnified Damages as does not exceed
the  net  proceeds  to  Holder as a result of the sale of Registrable Securities
pursuant  to  such  Registration Statement.  Such indemnity shall remain in full
force  and  effect  regardless of any investigation made by or on behalf of such
Indemnified  Party and shall survive the resale of the Registrable Securities by
the  Holder  pursuant to the Registration Statement. Notwithstanding anything to
the  contrary  contained herein, the indemnification agreement contained in this
Section  6(b)  with respect to any preliminary prospectus shall not inure to the
benefit of any Indemnified Party if the untrue statement or omission of material
fact contained in the preliminary prospectus were corrected on a timely basis in
the  prospectus,  as  then  amended  or  supplemented.

c.          Promptly after receipt by an Indemnified Person or Indemnified Party
under  this  Section 6 of notice of the commencement of any action or proceeding
(including  any  governmental  action  or  proceeding)  involving  a Claim, such
Indemnified  Person or Indemnified Party shall, if a Claim in respect thereof is
to  be  made against any indemnifying party under this Section 6, deliver to the
indemnifying  party  a  written  notice  of  the  commencement  thereof, and the
indemnifying  party  shall  have the right to participate in, and, to the extent
the  indemnifying  party  so  desires, jointly with any other indemnifying party
similarly  noticed,  to  assume  control  of  the  defense  thereof with counsel
mutually  satisfactory  to  the indemnifying party and the Indemnified Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person  or Indemnified Party shall have the right to retain its own
counsel  with the fees and expenses to be paid by the indemnifying party, if, in
the  reasonable  opinion  of  counsel  retained  by  the indemnifying party, the
representation  by  such  counsel of the Indemnified Person or Indemnified Party
and  the  indemnifying  party  would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other  party  represented  by such counsel in such proceeding.  The indemnifying
party  shall pay for only one separate legal counsel for the Indemnified Persons
or the Indemnified Parties, as applicable, and such counsel shall be selected by
the  Holder,  if  the  Holder  is  entitled to indemnification hereunder, or the
Company, if the Company is entitled to indemnification hereunder, as applicable.
The  Indemnified  Party  or  Indemnified  Person  shall cooperate fully with the
indemnifying  party  in  connection  with any negotiation or defense of any such
action  or claim by the indemnifying party and shall furnish to the indemnifying
party  all  information  reasonably  available  to  the  Indemnified  Party  or
Indemnified  Person  which  relates  to  such action or claim.  The indemnifying
party  shall  keep the Indemnified Party or Indemnified Person fully apprised at
all  times  as  to the status of the defense or any settlement negotiations with
respect  thereto.  No  indemnifying  party shall be liable for any settlement of
any  action, claim or proceeding effected without its written consent, provided,
however,  that  the indemnifying party shall not unreasonably withhold, delay or
condition  its  consent. No indemnifying party shall, without the consent of the
Indemnified  Party  or  Indemnified  Person, consent to entry of any judgment or
enter  into  any  settlement  or  other  compromise which does not include as an
unconditional  term  thereof  the  giving  by  the claimant or plaintiff to such
Indemnified  Party  or  Indemnified  Person  of  a release from all liability in
respect to such Claim.  Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party or
Indemnified  Person  with  respect  to  all third parties, firms or corporations
relating  to the matter for which indemnification has been made.  The failure to
deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any
liability  to  the Indemnified Person or Indemnified Party under this Section 6,
except  to  the extent that the indemnifying party is actually prejudiced in its
ability  to  defend  such  action.

d.          The  indemnification  required  by  this  Section 6 shall be made by
periodic  payments  of the amount thereof during the course of the investigation
or  defense, as and when bills are received or Indemnified Damages are incurred.

e.          The  indemnity  agreements  contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or Indemnified
Person  against  the  indemnifying party or others, and (ii) any liabilities the
indemnifying  party  may  be  subject  to  pursuant  to  the  law.

     7.     CONTRIBUTION.

     To the extent any indemnification by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6  to  the  fullest  extent  permitted  by  law; provided, however, that: (i) no
contribution  shall  be  made under circumstances where the maker would not have
been  liable  for indemnification under the fault standards set forth in Section
6;  (ii)  no  seller  of  Registrable  Securities  guilty  of  fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled  to  contribution from any seller of Registrable Securities who was not
guilty  of fraudulent misrepresentation; and (iii) contribution by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received  by  such  seller  from  the  sale  of  such  Registrable  Securities.

          8.     REPORTS  UNDER  THE  EXHANGE  ACT.
With  a  view  to  making  available  to  the  Holders  the benefits of Rule 144
promulgated  under  the  Securities Act or any similar rule or regulation of the
SEC  that may at any time permit the Investors to sell securities of the Company
to  the  public  without  registration  ("Rule  144")  the  Company  agrees  to:
(a)  make  and  keep public information available, as those terms are understood
and  defined  in  Rule  144;
(b)  file  with  the  SEC  in  a  timely  manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act so long as
the  Company remains subject to such requirements and the filing of such reports
and  other  documents  as are required by the applicable provisions of Rule 144;
and
(c)  furnish  to  the  Holder so long as the Holder owns Registrable Securities,
promptly  upon  request,  (i)  a  written  statement  by the Company that it has
complied with the reporting requirements of Rule 144, the Securities Act and the
Exchange  Act,  (ii) a copy of the most recent annual or quarterly report of the
Company  and such other reports and documents so filed by the Company, and (iii)
such other information as may be reasonably requested to permit the Investors to
sell  such  securities  pursuant  to  Rule  144  without  registration.

     9.     NO  ASSIGNMENT  OF  REGISTRATION  RIGHTS.

     The  registration  rights and obligations under this Agreement shall not be
assignable.

     10.     AMENDMENT  OF  REGISTRATION  RIGHTS.

     Provisions  of this Agreement may be amended and the observance thereof may
be waived (either generally or in a particular instance and either retroactively
or  prospectively),  only  with  the written consent of both the Company and the
Holder  of  the  Registrable  Securities.  Any  amendment  or waiver effected in
accordance  with  this  Section  10  shall  be  binding  upon the Holder and the
Company.  No  such amendment shall be effective to the extent that it applies to
less  than  all  of the Holders of the Registrable Securities.  No consideration
shall  be  offered  or  paid  to  any  Person to amend or consent to a waiver or
modification  of  any  provision  of  any  of  this  Agreement  unless  the same
consideration  also  is  offered  to  all  of  the  parties  to  this Agreement.

     11.     MISCELLANEOUS.

a.     Any  notices,  consents,  waivers  or  other  communications  required or
permitted  to  be given under the terms of this Agreement must be in writing and
will  be  deemed  to  have  been  delivered  (i)  upon  receipt,  when delivered
personally;  (ii)  upon receipt, when sent by facsimile (provided a confirmation
of  transmission is mechanically or electronically generated and kept on file by
the  sending  party);  or  (iii)  one  (1)  day  after deposit with a nationally
recognized  overnight  delivery  service, in each case properly addressed to the
party  to  receive  the  same.  The  addresses  and  facsimile  numbers for such
communications  shall  be:
If  to  the  Company:

Paul  Roman
Simpla  Gene,  Inc,
500  Bi-County  Blvd.  Ste.  400
 Farmingdale,  NY  11735-3940
Telephone:  631-694-1111
Facsimile:  631-694-8493

With  copy  to:

Gary  T.  Moomjian
Moomjian  &  Waite,  LLP
100  Jericho  Quadrangle  -  Suite  225
Jericho,  New  York  11753
Phone:  516-937-5900,  Ext.  47
Fax:  516-937-5050

If  to  the  Holder:

     At  the  address  listed  in  the  Questionnaire.

     Each  party  shall provide five (5) business days prior notice to the other
party  of  any  change  in  address,  phone  number  or  facsimile  number.

a.     Failure of any party to exercise any right or remedy under this Agreement
or  otherwise, or delay by a party in exercising such right or remedy, shall not
operate  as  a  waiver  thereof.

b.     All  disputes  arising  under  this  agreement  shall  be governed by and
interpreted  in  accordance  with the laws of the Commonwealth of Massachusetts,
without regard to principles of conflict of laws.  The parties to this agreement
will  submit all disputes arising under this agreement to arbitration in Boston,
Massachusetts before a single arbitrator of the American Arbitration Association
("AAA").  The  arbitrator  shall  be selected by application of the rules of the
AAA, or by mutual agreement of the parties, except that such arbitrator shall be
an  attorney  admitted to practice law in the Commonwealth of Massachusetts.  No
party  to  this agreement will challenge the jurisdiction or venue provisions as
provided  in  this  section.  Nothing  in  this section shall limit the Holder's
right  to  obtain  an  injunction for a breach of this Agreement from a court of
law.

c.     This  Agreement  and  the  Transaction  Documents  (as  defined  in  the
Subscription Agreement)constitute the entire set of agreements among the parties
hereto  with  respect  to  the  subject matter hereof and thereof.  There are no
restrictions,  promises,  warranties or undertakings, other than those set forth
or  referred  to  in  the  Transaction  Documents.

d.     This  Agreement  and  the  Transaction  Documents  supersede  all  prior
agreements  and  understandings  among  the  parties  hereto with respect to the
subject  matter  hereof  and  thereof.

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

f.     This  Agreement may be executed in two or more counterparts, all of which
taken  together shall constitute one instrument.  Execution and delivery of this
Agreement  by  exchange of facsimile copies bearing the facsimile signature of a
party  shall  constitute  a  valid  and  binding  execution and delivery of this
Agreement  by  such  party.  Such  facsimile copies shall constitute enforceable
original  documents.

g.     Each  party  shall do and perform, or cause to be done and performed, all
such  further  acts  and  things,  and  shall execute and deliver all such other
agreements,  certificates,  instruments  and  documents,  as the other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of  this Agreement and the consummation of the transactions contemplated hereby.

h.     All  consents  and other determinations to be made by the Holder pursuant
to  this  Agreement shall be made, unless otherwise specified in this Agreement,
by  the  Holder  holding  a  majority  of  the  Registrable  Securities.

i.     The  language  used  in  this Agreement will be deemed to be the language
chosen  by  the  parties  to  express their mutual intent and no rules of strict
construction  will  be  applied  against  any  party.

          12.  WAIVER.

     The  Holder's  delay  or  failure at any time or times hereafter to require
strict performance by Company of any undertakings, agreements or covenants shall
not  waive,  affect, or diminish any right of the Holder under this Agreement to
demand  strict  compliance and performance herewith. Any waiver by the Holder of
any  Event  of  Default  shall  not  waive or affect any other Event of Default,
whether  such Event of Default is prior or subsequent thereto and whether of the
same  or a different type. None of the undertakings, agreements and covenants of
the  Company  contained  in  this  Agreement,  and no Event of Default, shall be
deemed  to  have  been  waived by the Holder, nor may this Agreement be amended,
changed  or  modified,  unless such waiver, amendment, change or modification is
evidenced  by an instrument in writing specifying such waiver, amendment, change
or  modification  and  signed  by  the  Holder.

          13.  PAYMENT  OF  PENALTIES

     Any  accrued penalties incurred herein by the Company for failure to act in
a  timely  manner,  as described in this Agreement, shall be charged to the Face
Amount of the Debenture (as defined in the Debenture), unless specifically noted
otherwise.  The  Holder reserves the rights to take Payment of Penalties in cash
or  in  Common Stock priced at the Conversion Price (as defined in the Debenture
Agreement).

                                      * * *

<PAGE>

IN  WITNESS  WHEREOF, the parties have caused this Registration Rights Agreement
to be duly executed as of the day and year first above written.  Duly authorized
to  sign  on  behalf  of:

                              SIMPLAGENE USA, INC

   By:     /s/Paul  Roman
           --------------
 Name:     Paul  Roman
Title:     President  &  Chief  Executive  Officer

   By:     /s/Thomas  McNeill
           ------------------
 Name:     Thomas  McNeill
Title:     Vice  President  &  Chief  Financial  Officer

                    DUTCHESS  PRIVATE  EQUITIES  FUND,  L.P.
                    DUTCHESS  PRIVATE  EQUITIES  FUND,  II,  L.P.
                    BY  ITS  GENERAL  PARTNER  DUTCHESS
                    CAPITAL  MANAGEMENT,  LLC

   By:     /s/Douglas  H.  Leighton
           ------------------------
 Name:     Douglas  H.  Leighton
Title:     A  Managing  Member

<PAGE>

                                    EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

                                             Date:  __________
[TRANSFER  AGENT]

     Re:     SimplaGene  USA,  Inc
             ---------------------

Ladies  and  Gentlemen:

     We  are  counsel  to  SimplaGene  USA,  Inc,  a  Nevada  corporation (the
                           ----------------------
"Company"),  and  have  represented  the Company in connection with that certain
Subscription Agreement (the "Subscription  Agreement") entered into by and among
the  Company  and _________________________ (the "Holder") pursuant to which the
Company  has agreed to issue to the Holder shares of the Company's common stock,
$.001  par  value per share (the "Common Stock") on the terms and conditions set
forth  in  the  Subscription Agreement.  Pursuant to the Subscription Agreement,
the  Company  also  has  entered  into  a Registration Rights Agreement with the
Holder  (the  "Registration  Rights  Agreement")  pursuant  to which the Company
agreed,  among  other things, to register the Registrable Securities (as defined
in  the  Registration  Rights  Agreement),  including the shares of Common Stock
issued  or issuable under the Subscription Agreement under the Securities Act of
1933, as amended (the "1933 Act").  In connection with the Company's obligations
under  the Registration Rights Agreement, on ____________ ___, 2006, the Company
filed  a  Registration  Statement  on  Form  S- ___ (File No. 333-________) (the
"Registration  Statement")  with  the  Securities  and  Exchange Commission (the
"SEC")  relating  to  the  Registrable  Securities  which  names the Holder as a
selling  shareholder  thereunder.

     In connection with the foregoing, we advise you that [a member of the SEC's
                                                          =
staff  has  advised  us by telephone that the SEC has entered an order declaring
the  Registration  Statement  effective]  [the Registration Statement has become
                                          ======================================
effective] under the 1933 Act at [enter the time of effectiveness] on [enter the
==========                        -------------------------------      ---------
date  of  effectiveness]  and  to  the  best  of our knowledge, after telephonic
-----------------------
inquiry  of  a  member  of  the  SEC's  staff,  no  stop  order  suspending  its
effectiveness  has  been  issued and no proceedings for that purpose are pending
before,  or  threatened by, the SEC and the Registrable Securities are available
for  resale  under  the  1933  Act  pursuant  to  the  Registration  Statement.

                                   Very  truly  yours,

                                   [Company  Counsel]

     By:     ____________________
     cc:     [Holder]Exhibit 10.8

                               SECURITY AGREEMENT

     SECURITY AGREEMENT  (this  "Agreement"),  dated as of July 14, 2006, by and
                                  ---------
among  SimplaGene  USA USA, Inc  a Nevada corporation, ("Company"), and Dutchess
                                                         -------
Private  Equities  Fund,  LP  and  Dutchess  Private Equities Fund, II, LP, both
Delaware Limited partnerships, as the secured parties signatory hereto and their
respective  endorsees,  transferees  and  assigns  (collectively,  the  "Secured
                                                                         -------
Party")  (sometimes  hereinafter  the  Company  and  the  Secured  Party  are
collectively  referred  to  as  the  "parties").

                              W I T N E S S E T H:

     WHEREAS,  pursuant to Subscription Agreement, dated the date hereof between
Company and the Secured Party (the "Subscription Agreement"), Company has agreed
                                    ----------------------
to  issue to the Secured Party and the Secured Party has agreed to purchase from
Company  certain  of Company's ten percent (10%) Secured Convertible Debentures,
due  five years from the date of issue (the "Debentures"), which are convertible
                                             ----------
into  shares  of  Company's Common Stock, par value $.001 per share (the "Common
                                                                          ------
Stock").  In  connection  therewith,  Company  shall  issue to the Secured Party
-----
certain  Common  Stock purchase warrants dated as of the date hereof to purchase
the  number  of  shares  of  Common  Stock  (the  "Warrants");  and
                                                   --------

WHEREAS,  in  order  to  induce  the  Secured  Party to purchase the Debentures,
Company  has  agreed  to execute and deliver to the Secured Party this Agreement
for  the  benefit  of  the  Secured  Party  and  to grant to it a first priority
security  interest  in certain property of Company to secure the prompt payment,
performance  and  discharge  in  full  of all of Company's obligations under the
Debentures and exercise and discharge in full of Company's obligations under the
Warrants.

NOW,  THEREFORE,  in  consideration  of  the agreements herein contained and for
other  good  and valuable consideration, the receipt and sufficiency of which is
hereby  acknowledged,  the  parties  hereto  hereby  agree  as  follows:

1.     Certain  Definitions.  As  used  in  this  Agreement, the following terms
       --------------------
shall  have  the  meanings  set  forth  in  this  Section 1.  Terms used but not
otherwise  defined  in  this  Agreement that are defined in Article 9 of the UCC
(such  as  "general  intangibles"  and  "proceeds")  shall  have  the respective
            --------------------         --------
meanings  given  such  terms  in  Article  9  of  the  UCC.
(a)     "Collateral"  means the collateral in which the Secured Party is granted
         ----------
a  security  interest  by  this Agreement and which shall include the following,
whether  presently  owned  or  existing  or  hereafter  acquired  or coming into
existence,  and  all  additions and accessions thereto and all substitutions and
replacements  thereof,  and  all  proceeds,  products  and  accounts  thereof,
including,  without  limitation,  all  proceeds from the sale or transfer of the
Collateral  and  of  insurance  covering  the  same  and  of  any tort claims in
connection  therewith.

(i)     All  Goods of the Company, including, without limitation, all inventory,
machinery,  equipment,  computers,  motor vehicles, trucks, tanks, boats, ships,
appliances,  furniture,  special  and  general tools, fixtures, test and quality
control  devices  and  other  equipment  of  every  kind and nature and wherever
situated,  together  with  all documents of title and documents representing the
same,  all  additions  and  accessions thereto, replacements therefor, all parts
therefor,  and all substitutes for any of the foregoing and all other items used
and  useful  in  connection  with  the Company's businesses and all improvements
thereto  (collectively,  the  "Equipment");  and
                               ---------

(ii)     Intentionally  omitted;  and,

(iii)     All  of  the  Company's  contract  rights  and  general  intangibles,
including,  without  limitation,  all  partnership  interests,  stock  or  other
securities,  licenses,  distribution  and  other  agreements,  computer software
development  rights,  leases,  franchises,  customer  lists,  quality  control
procedures,  grants  and  rights,  goodwill,  trademarks,  service  marks, trade
styles, trade names, patents, patent applications, copyrights, deposit accounts,
     and  income  tax  refunds  (collectively,  the  "General Intangibles"); and
                                                      -------------------

(iv)     All  Receivables  of  the  Company, except those liens held by Shoppers
Charge  Accounts  Co, including all insurance proceeds, and rights to refunds or
indemnification  whatsoever  owing, together with all instruments, all documents
of  title  representing  any  of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent,
and  all  right,  title,  security  and   guaranties   with   respect   to  each
Receivable,  including  any  right  of  stoppage  in  transit;  and

(v)     All  of  the  Company's documents, instruments and chattel paper, files,
records,  books  of account, business papers, computer programs and the products
and  proceeds  of  all of the foregoing Collateral set forth in clauses (i)-(iv)
above.

(b)     "Company"  shall mean, collectively, Company and all of the subsidiaries
         -------
of  Company,  a  list  of  which  is  contained  in Schedule A, attached hereto.
                                                    ----------

(c)     "Obligations"  means  all  of  the  Company's  obligations  under  this
         -----------
Agreement  and  the Debentures, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
     or  unliquidated,  whether  or not jointly owed with others, and whether or
not  from time to time decreased or extinguished and later decreased, created or
incurred,  and  all  or  any portion of such obligations or liabilities that are
paid,  to  the  extent  all  or any part of such payment is avoided or recovered
directly  or  indirectly  from  the  Secured  Party  as a preference, fraudulent
transfer  or  otherwise  as  such  obligations  may  be  amended,  supplemented,
converted,  extended  or  modified  from  time  to  time.

(d)     "UCC"  means  the Uniform Commercial Code, as currently in effect in the
         ---
Commonwealth  of  Massachusetts.

2.     Grant  of  Security  Interest.  As an inducement for the Secured Party to
       -----------------------------
purchase  the  Debentures  and  to  secure  the  complete  and  timely  payment,
performance  and  discharge  in  full,  as  the  case  may  be,  of  all  of the
Obligations,  the  Company  hereby,  unconditionally  and  irrevocably, pledges,
grants and hypothecates to the Secured Party, a continuing security interest in,
     a  continuing  first  lien  upon,  an  unqualified  right to possession and
disposition  of  and  a  right  of  set-off against, in each case to the fullest
extent  permitted  by  law,  all  of  the Company's right, title and interest of
whatsoever  kind  and nature in and to the Collateral (the "Security Interest").
                                                            -----------------

3.     Representations,  Warranties,  Covenants  and  Agreements of the Company.
       ------------------------------------------------------------------------
The  Company  represents  and  warrants  to,  and covenants and agrees with, the
Secured  Party  as  follows:

(a)     The  Company  has  the  requisite corporate power and authority to enter
into  this Agreement and otherwise to carry out its obligations thereunder.  The
execution,  delivery  and  performance  by the Company of this Agreement and the
filings  contemplated  therein have been duly authorized by all necessary action
on  the  part  of  the Company and no further action is required by the Company.
This  Agreement constitutes a legal, valid and binding obligation of the Company
enforceable  in  accordance  with  its  terms,  except  as enforceability may be
limited  by  bankruptcy,  insolvency, reorganization, moratorium or similar laws
affecting  the  enforcement  of  creditor's  rights  generally.

(b)     The  Company represents and warrants that it has no place of business or
offices  where  its respective books of account and records are kept (other than
temporarily  at  the  offices  of  its attorneys or accountants) or places where
Collateral  is  stored  or  located,  except as set forth on Schedule A attached
                                                             ----------
hereto;

(c)     The  Company  is  the  sole  owner  of  the  Collateral  (except  for
non-exclusive  licenses  granted  by  the  Company  in  the  ordinary  course of
business),  free  and  clear  of  any liens, except those liens held by Shoppers
Charge  Accounts Co., security interests, encumbrances, rights or claims, and is
fully authorized to grant the Security Interest in and to pledge the Collateral.
There is not on file in any governmental  or  regulatory  authority,  agency  or
recording  office  an effective financing statement, security agreement, license
or  transfer  or  any notice of any of the foregoing (other than those that have
been filed in favor of the Secured Party pursuant to this Agreement) covering or
affecting any of the  Collateral.  So long as this Agreement shall be in effect,
the  Company  shall  not execute and shall not knowingly permit to be on file in
any  such  office  or  agency  any such financing statement or other document or
instrument (except to the extent filed or recorded in favor of the Secured Party
pursuant  to  the  terms  of  this  Agreement).

(d)     No  part of the Collateral has been judged invalid or unenforceable.  No
written  claim has been received that any Collateral or the Company's use of any
Collateral  violates  the  rights  of any third party. There has been no adverse
decision  to  the  Company's claim of ownership rights in or exclusive rights to
use  the  Collateral  in  any jurisdiction or to the Company's right to keep and
maintain  such  Collateral  in full force and effect, and there is no proceeding
involving  said  rights  pending  or,  to  the  best  knowledge  of the Company,
threatened before any court, judicial body, administrative or regulatory agency,
arbitrator  or  other  governmental  authority.

(e)     The Company shall at all times maintain its books of account and records
relating  to  the  Collateral  at  its  principal  place  of  business  and  its
Collateral  at the locations set forth on Schedule A attached hereto and may not
                                          ----------
relocate  such  books  of  account  and records or tangible Collateral unless it
delivers  to  the  Secured  Party  at least 30 days prior to such relocation (i)
written  notice  of  such relocation and the new location thereof (which must be
within  the  United  States)  and  (ii)  evidence  that  appropriate  financing
statements  and other necessary documents have been filed and recorded and other
steps have been taken to perfect the Security Interest to create in favor of the
Secured  Party  valid,  perfected  and  continuing  first  priority liens in the
Collateral.

(f)     This  Agreement  creates  in favor of the Secured Party a valid security
interest  in  the  Collateral  securing  the  payment  and  performance  of  the
Obligations  and, upon making the filings described in the immediately following
sentence,  a  perfected  first  priority  security  interest in such Collateral.
Except  for the filing of financing statements on Form-1 under the UCC with  the
jurisdictions  indicated  on  Schedule  B,  attached hereto, no authorization or
                              -----------
approval of or filing with or notice to any governmental authority or regulatory
body  is  required  either  (i)  for  the  grant  by  the  Company  of,  or  the
effectiveness  of,  the  Security  Interest granted hereby or for the execution,
delivery  and  performance  of  this  Agreement  by  the Company or (ii) for the
perfection  of  or  exercise  by  the  Secured  Party of its rights and remedies
hereunder.

(g)     On  the date of execution of this Agreement, the Company will deliver to
the  Secured  Party one or more executed UCC financing statements on Form-1 with
respect to the Security Interest for filing with  the jurisdictions indicated on
Schedule  B,  attached  hereto  and  in  such  other  jurisdictions  as  may  be
-----------
requested  by  the  Secured  Party.

(h)     The  execution,  delivery  and  performance  of  this Agreement does not
conflict with or cause a breach or default, or an event that with or without the
passage  of time or notice, shall constitute a  breach  or  default,  under  any
agreement  to which the Company is a party or by which the Company is bound.  No
consent  (including,  without limitation, from stock holders or creditors of the
Company)  is  required for the Company to enter into and perform its obligations
hereunder.

(i)     The  Company shall at all times maintain the liens and Security Interest
provided  for hereunder as valid and perfected first priority liens and security
interests  in  the Collateral in favor of the Secured Party until this Agreement
and  the  Security  Interest  hereunder  shall terminate pursuant to Section 11.
The  Company  hereby agrees to defend the same against any and all persons.  The
Company  shall  safeguard  and  protect  all  Collateral  for the account of the
Secured  Party.  At  the request of the Secured Party, the Company will sign and
deliver  to  the  Secured  Party  at  any  time or from time to time one or more
financing  statements  pursuant  to the UCC (or any other applicable statute) in
form  reasonably  satisfactory  to  the  Secured  Party and will pay the cost of
filing  the  same  in all public offices wherever filing is, or is deemed by the
Secured Party to be, necessary or desirable to effect the rights and obligations
provided  for herein. Without limiting the  generality  of  the  foregoing,  the
Company  shall  pay  all fees, taxes and other amounts necessary to maintain the
Collateral and the Security Interest hereunder, and the Company shall obtain and
furnish  to  the  Secured  Party  from  time to time, upon demand, such releases
and/or  subordinations of claims and liens which may be required to maintain the
priority  of  the  Security  Interest  hereunder.

(j)     The  Company  will  not transfer, pledge, hypothecate, encumber, license
(except in the ordinary course of business), sell or otherwise dispose of any of
the  Collateral  without  the  prior  written consent of the Secured Party.

(k)     The  Company  shall keep and preserve its Equipment, Inventory and other
tangible Collateral in good condition, repair and order and shall not operate or
locate any such Collateral (or cause to be operated  or  located)  in  any  area
excluded  from  insurance  coverage.

(l)     The  Company shall, within ten (10) days of obtaining knowledge thereof,
advise  the  Secured  Party  promptly,  in sufficient detail, of any substantial
change  in the Collateral, and of the occurrence of any event which would have a
material adverse effect on the value of the Collateral or on the Secured Party's
security  interest  therein.

(m)     The Company shall promptly execute and deliver to the Secured Party such
further   deeds,   mortgages,   assignments,   security   agreements,  financing
statements or other instruments, documents, certificates and assurances and take
such  further  action as the Secured Party may from time to time request and may
in  its  sole  discretion  deem  necessary  to  perfect,  protect or enforce its
security interest in the Collateral including, without limitation, the execution
and  delivery  of  a  separate  security agreement with respect to the Company's
intellectual  property ("Intellectual Property Security Agreement") in which the
                         ----------------------------------------
Secured Party has been granted a security interest hereunder, substantially in a
form  acceptable  to  the  Secured  Party,  which Intellectual Property Security
Agreement,  other  than  as stated therein, shall be subject to all of the terms
and  conditions  hereof.

(n)     The  Company  shall permit the Secured Party and its representatives and
agents  to  inspect  the  Collateral  at any time, and to make copies of records
pertaining  to the Collateral as may be requested by the Secured Party from time
to  time.

(o)     The  Company  will  take  all  steps  reasonably necessary to diligently
pursue  and  seek to preserve, enforce and collect any rights, claims, causes of
action  and  accounts  receivable  in  respect  of  the  Collateral.

(p)     The Company shall promptly notify the Secured Party in sufficient detail
upon  becoming  aware  of  any   attachment,  garnishment,  execution  or  other
legal  process  levied  against any Collateral in excess of ten thousand dollars
($10,000)  and  of  any  other  information  received  by  the  Company that may
materially  affect  the  value  of  the Collateral, the Security Interest or the
rights  and  remedies  of  the  Secured  Party  hereunder.

(q)     All  information heretofore, herein or hereafter supplied to the Secured
Party  by or on behalf of the Company with respect to the Collateral is accurate
and  complete  in  all  material  respects  as  of  the  date  furnished.

(r)     Schedule A attached hereto contains a list of all of the subsidiaries of
        ----------
Company.

4.     Defaults.  The  following  events  shall  be  "Events  of  Default":
       --------                                       -------------------

(a)     The  occurrence  of  an  Event of Default (as defined in the Transaction
Documents)  under  the  Transaction  Documents,  or  breach  of the terms of the
Transaction  Documents.

(b)     Any  representation  or  warranty of the Company in this Agreement shall
prove  to  have  been  incorrect  in  any  material  respect  when  made;

(c)     The  failure by the Company to observe or perform any of its obligations
hereunder  in  any  material  respect.

5.     Duty  To  Hold In Trust.  Upon the occurrence of any Event of Default and
       -----------------------
at  any  time  thereafter  while uncured, if subject to cure, the Company shall,
upon  receipt by it of any revenue, income or other sums subject to the Security
Interest,  whether  payable  pursuant  to the Debentures or otherwise, or of any
check,  draft,  note,  trade  acceptance  or  other  instrument  evidencing  an
obligation to pay any such sum, hold the same in trust for the Secured Party and
shall forthwith endorse and transfer any such  sums  or  instruments,  or  both,
to  the  Secured  Party  for application to the satisfaction of the Obligations.

6.     Rights  and  Remedies  Upon  Default.  Upon  occurrence  of  any Event of
       ------------------------------------
Default  and  at  any  time  thereafter  while  uncured, if subject to cure, the
Secured  Party  shall  have  the right to exercise all of the remedies conferred
hereunder  and  under  the  Debentures, and the Secured Party shall have all the
rights and remedies of a secured party under the UCC and/or any other applicable
law (including the Uniform Commercial Code of  any  jurisdiction  in  which  any
Collateral  is  then located).  Without limitation, the Secured Party shall have
the  following  rights  and  powers:

(a)     The  Secured  Party  shall  have  the  right  to  take possession of the
Collateral  set  forth  in Section 1 (a), and, for that purpose, enter, with the
aid and assistance of any person, any premises where the Collateral, or any part
thereof,  is  or  may  be placed and remove the  same,  and  the  Company  shall
assemble  the  Collateral  and  make it available to the Secured Party at places
which  the  Secured  Party  shall  reasonably  select,  whether at the Company's
premises  or  elsewhere,  and make available to the Secured Party, without rent,
all  of  the Company's respective premises and facilities for the purpose of the
Secured  Party  taking  possession  of,  removing  or  putting the Collateral in
saleable  or  disposable  form.

(b)     The  Secured  Party  shall have the right to operate the business of the
Company  using the Collateral and shall have the right to assign, sell, lease or
otherwise dispose of and deliver all or any part of the Collateral, at public or
private  sale  or  otherwise,  either with  or  without  special  conditions  or
stipulations,  for  cash  or on credit or for future delivery, in such parcel or
parcels  and  at  such  time or times and at such place or places, for such sale
price  or  prices,  and  upon such terms and conditions as the Secured Party may
deem  commercially  reasonable,  all  without  (except  as  shall be required by
applicable  statute and cannot be waived) advertisement or demand upon or notice
to the Company or right of redemption of the Company, which are hereby expressly
waived.  Upon each such sale, lease, assignment or other transfer of Collateral,
the  Secured  Party  may,  unless  prohibited  by applicable law which cannot be
waived,  purchase  all  or  any part of the Collateral being sold, free from and
discharged  of  all  trusts,  claims,  right  of  redemption and equities of the
Company,  which  are  hereby  waived  and  released.

7.     Applications  of Proceeds.  The proceeds of any such sale, lease or other
       -------------------------
disposition  of the Collateral hereunder shall be applied first, to the expenses
of  retaking,  holding, storing, processing and preparing for sale, selling, and
the  like  (including,  without  limitation,  any  taxes,  fees  and other costs
incurred  in  connection  therewith)  of  the  Collateral,  to  the  reasonable
attorneys'  fees  and  expenses  incurred  by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the  Obligations,  and  to  the  payment
of  any  other amounts required by applicable law, after which the Secured Party
shall  pay  to  the Company any surplus proceeds.  If, upon the sale, license or
other  disposition  of  the Collateral, the proceeds thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency, together with interest thereon, at the rate of 18%
per  annum  (the  "Default  Rate"),  and  the  reasonable  fees of any attorneys
                   -------------
employed  by  the  Secured  Party  to  collect  such  deficiency.  To the extent
permitted  by applicable law, the Company waives all claims, damages and demands
against the Secured Party arising out of the repossession, removal, retention or
sale of the Collateral, unless due to the gross negligence or willful misconduct
of  the  Secured  Party.

8.     Costs and Expenses.     The Company agrees to pay all out-of-pocket fees,
       -------------------
     costs  and  expenses  incurred  in  connection  with  any  filing  required
hereunder,  including without limitation, any financing statements, continuation
statements,  partial  releases  and/or termination statements related thereto or
any  expenses  of  any  searches  reasonably required by the Secured Party.  The
Company  shall  also  pay  all  other claims and charges which in the reasonable
opinion  of  the  Secured Party might prejudice, imperil or otherwise affect the
Collateral  or  the  Security  Interest  therein.  The  Company  will also, upon
demand,  pay to the Secured Party the amount of any and all reasonable expenses,
including the reasonable fees and expenses of its counsel and of any experts and
agents, which the Secured Party may incur in connection with (i) the enforcement
of  this  Agreement,  (ii)  the  custody  or  preservation  of,  or the sale of,
collection  from, or other realization upon, any of the Collateral, or (iii) the
exercise  or  enforcement  of  any  of the rights of the Secured Party under the
Debentures.  Until  so  paid,  any  fees payable hereunder shall be added to the
principal  amount of the Debentures and shall bear interest at the Default Rate.

9.     Responsibility  for  Collateral.  The Company assumes all liabilities and
       -------------------------------
responsibility  in  connection  with  all Collateral, and the obligations of the
Company hereunder or under the Transaction Documents shall in no way be affected
or diminished by reason of the loss, destruction, damage  or  theft  of  any  of
the  Collateral  or  its  unavailability  for  any  reason.

10.     Security  Interest  Absolute.  All  rights  of the Secured Party and all
        ----------------------------
Obligations  of  the  Company  hereunder,  shall  be absolute and unconditional,
irrespective  of:  (a) any lack of validity or enforceability of this Agreement,
the  Debentures,  the  Warrants or any agreement entered into in connection with
the  foregoing,  or  any  portion hereof or thereof; (b) any change in the time,
manner  or  place  of payment or performance of, or in any other term of, all or
any  of  the  Obligations, or any other amendment or waiver of or any consent to
any  departure from the Debentures, the Warrants  or any other agreement entered
into  in  connection  with  the  foregoing;  (c)  any  exchange,  release  or
nonperfection of any of the Collateral, or any release or amendment or waiver of
or  consent to departure from any other collateral  for,  or  any  guaranty,  or
any  other  security,  for  all or any of the Obligations; (d) any action by the
Secured  Party  to  obtain, adjust, settle and cancel in its sole discretion any
insurance  claims  or matters made or arising in connection with the Collateral;
or  (e)  any  other  circumstance  which might otherwise constitute any legal or
equitable defense available to the Company, or a discharge of all or any part of
the  Security  Interest  granted  hereby.  Until the Obligations shall have been
paid  and performed in full, the rights of the Secured Party shall continue even
if the Obligations are barred for any reason, including, without limitation, the
running  of  the  statute  of  limitations or bankruptcy.  The Company expressly
waives presentment, protest, notice of protest, demand, notice of nonpayment and
demand  for  performance.  In  the  event  that  at any time any transfer of any
Collateral  or  any  payment  received  by  the Secured Party hereunder shall be
deemed  by  final  order  of  a  court  of competent jurisdiction to have been a
voidable  preference or fraudulent conveyance under the bankruptcy or insolvency
laws  of  the United States, or shall be deemed to be otherwise due to any party
other than the Secured Party, then, in any such event, the Company's obligations
hereunder  shall  survive  cancellation  of  this  Agreement,  and  shall not be
discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement,  but  shall  remain  a  valid  and  binding obligation enforceable in
accordance  with  the terms and provisions hereof.  The Company waives all right
to require the Secured Party to proceed against any other person or to apply any
Collateral  which  the Secured Party may hold at any time, or to marshal assets,
or to pursue any other remedy.  The Company waives any defense arising by reason
of  the  application  of  the  statute  of limitations to any obligation secured
hereby.

11.     Term  of  Agreement.  This  Agreement  and  the  Security Interest shall
        -------------------
terminate  on the date on which all payments under the Debentures have been made
in  full  and all other Obligations of the Company have been paid or discharged.
Upon  such  termination, the Secured Party, at the request and at the expense of
the  Company,  will  join in executing any termination statement with respect to
any  financing  statement  executed  and  filed  pursuant  to  this  Agreement.

12.     Power  of  Attorney;  Further  Assurances.
        -----------------------------------------

(a)     The  Company  authorizes  the  Secured  Party,  and  does  hereby  make,
constitute  and  appoint  it, and its respective officers, agents, successors or
assigns  with  full  power  of  substitution,  as  the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after  the occurrence and during the continuance of  an  Event  of  Default  (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including  payments  payable under or in respect of any policy of insurance) in
respect  of  the  Collateral that may come into possession of the Secured Party;
(ii)  to sign and endorse any UCC financing statement or any invoice, freight or
express  bill,  bill  of  lading,  storage or warehouse receipts, drafts against
debtors, assignments, verifications and notices in connection with accounts, and
other  documents  relating  to  the Collateral; (iii) to pay or discharge taxes,
liens,  security interests or other encumbrances at any time levied or placed on
or  threatened  against  the  Collateral;  (iv) to demand, collect, receipt for,
compromise,  settle and sue for monies due in respect of the Collateral; and (v)
generally,  to  do,  at  the  option  of the Secured Party, and at the Company's
expense,  at  any  time,  or  from  time  to time, all acts and things which the
Secured  Party  deems  necessary  to  protect,  preserve  and  realize  upon the
Collateral  and  the  Security  Interest  granted therein in order to effect the
intent  of  this  Agreement,  the  Debentures and the Warrants, all as fully and
effectually  as  the  Company might or could do; and the Company hereby ratifies
all  that  said attorney shall lawfully do or cause to be done by virtue hereof.
This  power of attorney is coupled with an interest and shall be irrevocable for
the  term  of  this  Agreement  and thereafter as long as any of the Obligations
shall  be  outstanding.

(b)     On  a  continuing  basis,  the  Company will make, execute, acknowledge,
deliver, file and record, as the case may be, in the proper filing and recording
places    in    any    jurisdiction,    including,   without   limitation,   the
jurisdictions  indicated  on  Schedule B, attached hereto, all such instruments,
                              ----------
and  take all such action as may reasonably be deemed necessary or advisable, or
as  reasonably  requested by the Secured Party, to perfect the Security Interest
granted  hereunder  and  otherwise  to carry out the intent and purposes of this
Agreement,  or  for  assuring  and  confirming to the Secured Party the grant or
perfection  of  a  security  interest  in  all  the  Collateral.

(c)     The  Company  hereby  irrevocably  appoints  the  Secured  Party  as the
Company's  attorney-in-fact,  with  full authority in the place and stead of the
Company and in the name of the Company, from time to time in the Secured Party's
discretion,  to  take  any  action  and to  execute  any  instrument  which  the
Secured Party may deem necessary or advisable to accomplish the purposes of this
Agreement,  including  the  filing,  in  its  sole  discretion,  of  one or more
financing  or continuation statements and amendments thereto, relative to any of
the  Collateral  without  the  signature  of the Company where permitted by law.

13.     Notices.  All  notices,  requests,  demands  and  other  communications
        -------
hereunder  shall be in writing, with copies to all the other parties hereto, and
shall  be  deemed  to  have  been duly given when (i) if delivered by hand, upon
receipt,  (ii)  if  sent by facsimile, upon receipt of proof of sending thereof,
(iii)  if  sent  by  nationally  recognized  overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
     certified  mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

If  to  the  Company:

Paul  Roman
SimplaGene  USA,  Inc,
500  Bi-County  Blvd.  Ste.  400
Farmingdale,  NY  11735-3940
Telephone:  631-694-1111
Facsimile:  631-694-8493

With  Copy  to:

Gary  T.  Moomjian
Moomjian  &  Waite,  LLP
100  Jericho  Quadrangle  -  Suite  225
Jericho,  New  York  11753
Phone:  516-937-5900,  Ext.  47
Fax:  516-937-5050

If  to  the  Secured  Party:

Dutchess  Capital  Management,  LLC
Douglas  Leighton
50  Commonwealth  Ave,  Suite  2
Boston,  MA  02116
(617)  301-4700
(617)  249-0947

14.     Other Security.  To the extent that the Obligations are now or hereafter
        --------------
secured   by   property   other   than  the  Collateral  or  by  the  guarantee,
endorsement  or property of any other person, firm, corporation or other entity,
then  the Secured Party shall have the right, in its sole discretion, to pursue,
relinquish,  subordinate,  modify or take any other action with respect thereto,
without  in any way modifying or affecting any of the Secured Party's rights and
remedies  hereunder.

15.     Miscellaneous.
        -------------

(a)     No  course of dealing between the Company and the Secured Party, nor any
failure  to  exercise,  nor  any delay in exercising, on the part of the Secured
Party,  any  right,  power  or privilege hereunder or under the Debentures shall
operate  as  a  waiver  thereof; nor shall any single or partial exercise of any
right,  power or privilege hereunder or thereunder preclude any other or further
exercise  thereof  or  the  exercise  of  any  other  right, power or privilege.

(b)     All  of the rights and remedies of the Secured Party with respect to the
Collateral,  whether  established  hereby  or  by the Debentures or by any other
agreements,  instruments  or  documents or by law shall be cumulative and may be
exercised  singly  or  concurrently.

(c)     This  Agreement  constitutes  the  entire  agreement of the parties with
respect  to  the  subject  matter  hereof and is intended to supersede all prior
negotiations,  understandings  and agreements with respect to the subject matter
hereof.  Except  as  specifically  set  forth in this Agreement, no provision of
this  Agreement  may  be  modified  or  amended  except  by  a written agreement
specifically  referring  to  this  Agreement  and  signed by the parties hereto.

(d)     In the event that any provision of this Agreement is held to be invalid,
prohibited or unenforceable in any jurisdiction  for  any  reason,  unless  such
provision is narrowed by judicial construction, this Agreement shall, as to such
jurisdiction,  be  construed  as  if  such  invalid, prohibited or unenforceable
provision  had  been  more narrowly drawn so as not to be invalid, prohibited or
unenforceable.  If,  notwithstanding  the  foregoing,  any  provision  of  this
Agreement  is  held  to  be  invalid,  prohibited  or  unenforceable  in  any
jurisdiction,  such  provision, as to such jurisdiction, shall be ineffective to
the  extent  of  such  invalidity,  prohibition  or  unenforceability  without
invalidating  the remaining portion of such provision or the other provisions of
this  Agreement  and  without  affecting  the validity or enforceability of such
provision  or  the other provisions of this Agreement in any other jurisdiction.

(e)     No  waiver  of  any  breach or default or any right under this Agreement
shall  be considered valid unless in writing and signed by the party giving such
waiver,  and no such waiver shall be deemed a waiver of any subsequent breach or
default  or  right,  whether  of  the  same  or  similar  nature  or  otherwise.

(f)     This  Agreement  shall  be binding upon and inure to the benefit of each
party  hereto  and  its  successors  and  assigns.

(g)     Each  party  shall take such further action and execute and deliver such
further  documents  as may be necessary or appropriate in order to carry out the
provisions  and  purposes  of  this  Agreement.

(h)     The validity, terms, performance and enforcement of this Agreement shall
be  governed  and construed by the provisions  hereof  and  in  accordance  with
the  laws of the Commonwealth of Massachusetts applicable to agreements that are
negotiated,  executed,  delivered  and  performed  solely in the Commonwealth of
Massachusetts.

(i)     All  disputes  arising  under  this  agreement  shall be governed by and
interpreted  in  accordance  with the laws of the Commonwealth of Massachusetts,
without regard to principles of conflict of laws.  The parties to this agreement
will  submit  all  disputes  arising under  this  agreement  to  arbitration  in
Boston,  Massachusetts  before  a  single arbitrator of the American Arbitration
Association  ("AAA").  The  arbitrator  shall  be selected by application of the
rules  of  the  AAA,  or  by  mutual  agreement of the parties, except that such
arbitrator  shall be an attorney admitted to practice law in the Commonwealth of
Massachusetts.  No  party  to  this agreement will challenge the jurisdiction or
venue  provisions  as  provided  in this section.  Nothing in this section shall
limit  the Holder's right to obtain an injunction for a breach of this Agreement
from  a  court  of  law.

(j)     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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      *.*.*

IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be
duly  executed  on  the  day  and  year  first  above  written.

                              SIMPLAGENE USA, INC.
                             ----------------------

   By:     /s/Paul  Roman
           --------------
 Name:     Paul  Roman
Title:     President  &  Chief  Executive  Officer

   By:     /s/Thomas  McNeill
           ------------------
 Name:     Thomas  McNeill
Title:     Vice  President  &  Chief  Financial  Officer

                              DUTCHESS  PRIVATE  EQUITIES  FUND,  L.P.
                              DUTCHESS  PRIVATE  EQUITIES  FUND,  II,  L.P.
                              BY  ITS  GENERAL  PARTNER  DUTCHESS
                              CAPITAL  MANAGEMENT,  LLC

   By:     /s/Douglas  H.  Leighton
           ------------------------
 Name:     Douglas  H.  Leighton
Title:     A  Managing  Member

<PAGE>

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