Document:

Unassociated Document

    
      Exhibit
10.19

    

     

    EXHIBIT
A

     

    COMMON
STOCK PURCHASE WARRANT

    

    AGFEED
INDUSTRIES, INC.

     

    
      
        
          
            	
                    Warrant
      Shares: [__________________

                  	
                    Initial
      Issuance Date: December __, 2008

                  
	 	 
	 
      	
                    Initial
      Exercise Date: June___,
      2009         
  

                  

          

        

      

    

    
       

       

    

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, _____________ (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after June __, 2009 the “Initial Exercise
Date”) and on or prior to the close of business on the five year
anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from AgFeed Industries, Inc.,
a Nevada corporation (the “Company”), up to
______ shares (the “Warrant Shares”) of
Common Stock.  The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

     

    Section
1.             Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated December ___, 2008, among the Company and the purchasers signatory
thereto.

     

    Section
2.

     

    (a)           Exercise. Exercise of
the purchase rights represented by this Warrant may be made, in whole or in
part, at any time or times on or after the Initial Exercise Date and on or
before the Termination Date by (1) delivery to the Company (or such other office
or agency of the Company as it may designate by notice in writing to the
registered Holder at the address of the Holder appearing on the books of the
Company) of a duly executed facsimile copy of the Notice of Exercise Form
annexed hereto; and (2) delivery to the Company of the aggregate Exercise Price
of the shares thereby purchased by wire transfer or cashier’s check drawn on a
United States bank.  Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the
Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder
shall surrender this Warrant to the Company for cancellation within three
trading Days of the date the final Notice of Exercise is delivered to the
Company.  Execution and delivery of the Notice of Exercise Form with
respect to less than all of the Warrant Shares shall have the same effect as
cancellation of the original Warrant and issuance of a new Warrant evidencing
the right to purchase the remaining number of Warrant Share.  The
Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases.  The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

    
      
         

      

      
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    (b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $2.50, subject to adjustment
hereunder (the “Exercise
Price”).

     

    (c)           Cashless
Exercise.  If at the time of exercise hereof there is no
effective registration statement registering (or the prospectus contained
therein is not available for) the issuance of the Warrant Shares to the Holder
and all of the Warrant Shares are not then registered for resale by the Holder
into the market at market prices from time to time on an effective registration
statement for use on a continuous basis (or the prospectus contained therein is
not available for use), then this Warrant may also be exercised at such time by
means of a “cashless exercise” in which the Holder shall be entitled to receive
a certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

     

    (A) = the
VWAP on the Trading Day immediately preceding the date of such
election;

    

    (B) = the
Exercise Price of this Warrant, as adjusted; and

    

    (X) = the
number of Warrant Shares issuable upon exercise of this Warrant in accordance
with the terms of this Warrant by means of a cash exercise rather than a
cashless exercise.

    

    “VWAP” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted for trading as reported by Bloomberg L.P. (based on a Trading Day from
9:30 a.m. (New York City time) to 4:02 p.m. (New York City time); (b)  if
the OTC Bulletin Board is not a Trading Market, the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on the
OTC Bulletin Board; (c) if the Common Stock is not then listed or quoted for
trading on the OTC Bulletin Board and if prices for the Common Stock are then
reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the
most recent bid price per share of the Common Stock so reported; or (d) in
all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the Holder and reasonably
acceptable to the Company, the fees and expenses of which shall be paid by the
Company.

    
      
         

      

      
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    (d)           Holder’s
Restrictions.  The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any portion of
this Warrant, pursuant to Section 2 or otherwise, to the extent that after
giving effect to such issuance after exercise as set forth on the applicable
Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any
other person or entity acting as a group together with the Holder or any of the
Holder’s Affiliates), would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below).  For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder
and its Affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which would be
issuable upon (A) exercise of the remaining, nonexercised portion of this
Warrant beneficially owned by the Holder or any of its Affiliates and (B)
exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any
other  Common Stock Equivalents) subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by
the Holder or any of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(d), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, it being acknowledged by the Holder that
the Company is not representing to the Holder that such calculation is in
compliance with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance
therewith.   To the extent that the limitation contained in this
Section 2(d) applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with any
Affiliates) and of which portion of this Warrant is exercisable shall be in the
sole discretion of the Holder, and the submission of a Notice of Exercise shall
be deemed to be the Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder together with
any Affiliates) and of which portion of this Warrant is exercisable, in each
case subject to the Beneficial Ownership Limitation, and the Company shall have
no obligation to verify or confirm the accuracy of such
determination.   In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 2(d), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of
outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic annual report as the case may be, (B) a more recent public announcement
by the Company or (C) any other notice by the Company or the Transfer Agent
setting forth the number of shares of Common Stock outstanding.  Upon the
written or oral request of a Holder, the Company shall within two Trading Days
confirm orally and in writing to the Holder the number of shares of Common Stock
then outstanding.  In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder or its
Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported.  The “Beneficial Ownership
Limitation” shall be [9.9/4.9%] of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of
Common Stock issuable upon exercise of this Warrant.  [The Holder,
upon not less than 61 days’ prior notice to the Company, may increase or
decrease the Beneficial Ownership Limitation provisions of this Section 2(d),
provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of
the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(d) shall continue to
apply.  Any such increase or decrease will not be effective until the
61st
day after such notice is delivered to the Company.]  The provisions of
this paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(d) to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.  The holders of Common Stock shall be third party
beneficiaries of this paragraph and the Company may not waive this paragraph
without the consent of holders of a majority of its Common
Stock.  [HOLDER ELECTS AT CLOSING]

    
      
         

      

      
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    a)           Mechanics of
Exercise.

     

    i.      Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system and either (A) there is an
effective Registration Statement permitting the issuance of the Warrant Shares
to or resale of the Warrant Shares by the Holder or (B) this Warrant is being
exercised via cashless exercise, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise within 3 Trading Days
from the delivery to the Company of the Notice of Exercise Form, surrender of
this Warrant (if required) and payment of the aggregate Exercise Price as set
forth above (including by cashless exercise, if permitted) (the “Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company.  The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record
of such shares for all purposes, as of the date the Warrant has been exercised
by payment to the Company of the Exercise Price (or by cashless exercise, if
permitted) and all taxes required to be paid by the Holder, if any, pursuant to
Section 2(e)(vi) prior to the issuance of such shares, have been
paid.

     

    ii.           Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

    
      
         

      

      
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    iii.           Rescission
Rights.  If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to Section 2(e)(i) by the Warrant Share Delivery Date,
then the Holder will have the right to rescind such exercise.

     

    iv.           Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise.  In
addition to any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder a certificate or the
certificates representing the Warrant Shares pursuant to an exercise on or
before the Warrant Share Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the
total purchase price (including brokerage commissions, if any) paid by the
Holder for such purchase of such shares (but no more than the number of Warrant
Shares for which this Warrant was exercised) exceeds (y) the amount obtained by
multiplying (1) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue times (2) the
price at which the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored or deliver to the Holder the number of shares of Common Stock that
would have been issued had the Company timely complied with its exercise and
delivery obligations hereunder.  For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with
respect to an attempted exercise of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000, under clause (1)
of the immediately preceding sentence the Company shall be required to pay the
Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of
the Company, evidence of the amount of such loss.  Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

     

    v.      No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole
share.

    
      
         

      

      
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    vi.           Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii.           Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    Section
3.             Certain
Adjustments.

     

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares, or (iv)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)           Intentionally
Omitted.

    
      
         

      

      
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    c)           Subsequent Rights
Offerings.  If the Company, at any time while the Warrant is
outstanding, shall issue rights, options or warrants to all holders of Common
Stock (and not to Holders) entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the VWAP at the record date
mentioned below, then, the Exercise Price shall be multiplied by a fraction, of
which the denominator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of additional shares of Common Stock offered for subscription or purchase, and
of which the numerator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of shares which the aggregate offering price of the total number of shares so
offered (assuming receipt by the Company in full of all consideration payable
upon exercise of such rights, options or warrants) would purchase at such
VWAP.  Such adjustment shall be made whenever such rights or warrants
are issued, and shall become effective immediately after the record date for the
determination of stockholders entitled to receive such rights, options or
warrants.

     

    d)           Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, shall distribute to all holders of Common Stock (and not to
Holders of the Warrants) evidences of its indebtedness or assets (excluding
regularly scheduled cash dividends) or rights or warrants to subscribe for or
purchase any security other than the Common Stock, then in each such case the
Exercise Price shall be adjusted by multiplying the Exercise Price in effect
immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator
shall be the VWAP determined as of the record date mentioned above, and of which
the numerator shall be such VWAP on such record date less the then per share
fair market value at such record date of the portion of such assets or evidence
of indebtedness so distributed applicable to one outstanding share of the Common
Stock as determined by the Board of Directors in good faith.  The
adjustments shall be described in a statement provided to the Holder of the
portion of assets, evidences of indebtedness or subscription rights so
distributed or such subscription rights applicable to one share of Common
Stock.  Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned
above.

    
      
         

      

      
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    e)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are
permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of
the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or
property, (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person
acquires more than 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a
“Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction (without regard to any limitation in Section 2(d) on the
exercise of this Warrant), the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(d) on the exercise of this Warrant). For purposes of
any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental
Transaction.  Notwithstanding anything to the contrary, in the event
of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a
Fundamental Transaction involving a person or entity not traded on a national
securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market,
or the Nasdaq Capital Market, the Company or any Successor Entity (as defined
below) shall at the Holder’s option, exercisable at any time concurrently with,
or within 30 days after, the consummation of the Fundamental Transaction,
purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this
Warrant on the date of the consummation of such Fundamental
Transaction.  “Black Scholes Value”
means the value of this Warrant based on the Black and Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of
100% and the 100 day volatility obtained from the HVT function on Bloomberg as
of the Trading Day immediately following the public announcement of the
applicable Fundamental Transaction, (C) the underlying price per share used in
such calculation shall be the sum of the price per share being offered in cash,
if any, plus the value of any non-cash consideration, if any, being offered in
such Fundamental Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date.  The Company shall cause any
successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents (as defined in the Purchase Agreement) in
accordance with the provisions of this Section 3(e) pursuant to written
agreements in form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to such Fundamental
Transaction and shall, at the option of the holder of this Warrant, deliver to
the Holder in exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to
this Warrant which is exercisable for a corresponding number of shares of
capital stock of such Successor Entity (or its parent entity) equivalent to the
shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to
such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into
account the relative value of the shares of Common Stock pursuant to such
Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction
Documents with the same effect as if such Successor Entity had been named as the
Company herein.

    
      
         

      

      
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    f)           Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

    g)           Notice to
Holder.

     

    i.      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

     

    
      
         

      

      
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    ii.           Notice to Allow Exercise by
Holder.  If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. To the extent that any notice
provided hereunder constitutes, or contains, material, non-public information
regarding the Company or any of its subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Holder is entitled to exercise this Warrant during the period
commencing on the date of such notice to the effective date of the event
triggering such notice.

     

    Section
4.             Transfer of
Warrant.

     

    a)           Transferability.  This
Warrant and all rights hereunder (including, without limitation, any
registration rights) are transferable, in whole or in part, upon surrender of
this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  The Warrant, if properly
assigned, may be exercised by a new holder for the purchase of Warrant Shares
without having a new Warrant issued.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date set forth on the first page of this Warrant and shall
be identical with this Warrant except as to the number of Warrant Shares
issuable pursuant thereto.

     

    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    Section
5.             Miscellaneous.

     

    a)           No Rights as Stockholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a stockholder of the Company prior to the
exercise hereof as set forth in Section 2(e)(i).

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant certificate, if mutilated, the Company will make and deliver a new
Warrant certificate of like tenor and dated as of such cancellation, in lieu of
such Warrant certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Authorized
Shares.

     

    The
Company covenants that, during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.  The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this
Warrant.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)           Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    f)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered and the Holder does not utilize cashless exercise,
will have restrictions upon resale imposed by state and federal securities
laws.

     

    g)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or
remedies.  Without limiting any other provision of this Warrant or the
Purchase Agreement, if the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    h)           Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)           Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    j)           Remedies.  The
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive and not to
assert the defense in any action for specific performance that a remedy at law
would be adequate.

     

    k)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by the Holder or holder of Warrant Shares.

     

    l)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and  the Holder hereof.

     

    m)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    n)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

    

    (Signature
Pages Follow)

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

     

    
      
        
          
            
              
                
                  	
                          AGFEED INDUSTRIES, INC.
      

                        
	 
	
                          By:

                        	 
      
	 
      	
                          Name:

                          Title:

                        

                

              

            

          

        

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    NOTICE
OF EXERCISE

    

    TO:           AGFEED
INDUSTRIES, INC.

    

    (1)           The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

     

    (2)           Payment
shall take the form of (check applicable box):

     

     ̈ in
lawful money of the United States; or

     

     ̈ [if
permitted] the cancellation of such number of Warrant Shares as is necessary, in
accordance with the formula set forth in subsection 2(c), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection
2(c).

     

    (3)           Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
__________________________________________________

    Name of
Authorized Signatory:
____________________________________________________________________

    Title of
Authorized Signatory:
_____________________________________________________________________

    Date:
________________________________________________________________________________________

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    

    
      
        
          
            	
                    Holder’s Signature:

                  	
                    _____________________________

                  
	 
      	 
      
	
                    Holder’s
      Address:

                  	
                    _____________________________

                  
	 
      	 
      
	
                     

                  	
                    _____________________________ 
      

                  

          

        

      

    

    

    Signature
Guaranteed:  ___________________________________________

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.Unassociated Document

    Sixth
Amendment to

    Receivables
Sale Agreement and Waiver Agreement

     

    This
Sixth Amendment and Waiver Agreement (herein, the “Amendment and Waiver
Agreement”), dated as of December 30, 2008, is entered into among
Crompton & Knowles Receivables Corporation, a Delaware corporation, as
Seller (the “Seller”),
Chemtura Corporation (f/k/a Crompton Corporation), a Delaware corporation, as
the initial Collection Agent (the “Initial Collection Agent”),
and, together with any successor thereto, the “Collection Agent”), The
Royal Bank of Scotland plc (as successor to ABN AMRO Bank N.V.), as agent for
the Purchaser Group to which Amsterdam is a party and the Purchasers (the “Agent”), Calyon New York
Branch (“Calyon”), as
the Purchaser Agent for the Purchaser Group to which Atlantic is a party,
Wachovia Bank, National Association (“Wachovia”), as Letter of
Credit issuer (in such capacity, the “LC Issuer”) and as Purchaser
Agent for the Purchaser Group to which VFCC is a party, the other Purchaser
Agents from time to time party hereto, the related bank purchasers party hereto
(the “Related Bank
Purchasers”), Amsterdam Funding Corporation (“Amsterdam”), as a Conduit
Purchaser, Atlantic Asset Securitization LLC (“Atlantic”), as a Conduit
Purchaser, Variable Funding Capital Company, LLC (“VFCC”), as a Conduit
Purchaser.

     

    Witnesseth:

     

    A.Reference
is hereby made to that certain Fourth Amended and Restated Receivables Sale
Agreement, dated as of September 28, 2006 (as amended, supplemented or
otherwise modified through the date hereof, the “Sale Agreement”), among the
Seller, the Initial Collection Agent, the Purchaser Agents from time to time
party thereto, the Related Bank Purchasers from time to time party thereto, the
Conduit Purchasers from time to time party thereto and the
Agent.  Terms used herein and not otherwise defined herein which are
defined in the Sale Agreement or the other Transaction Documents (as defined in
the Sale Agreement) shall have the same meaning herein as defined
therein.

     

    B.Chemtura
has in certain fiscal quarters occurring prior to September 30, 2008 not been in
compliance, and for the calendar quarter ending December 31, 2008 may not be in
compliance, with certain of the financial covenants (the “Credit Agreement Defaults”)
set forth in Section 5.03 of the Chemtura Credit Agreement (as such agreement
was in effect as of July 1, 2005 without regard to any subsequent amendment,
supplement, waiver or termination thereof).  As a result of such
Credit Agreement Defaults, Termination Events have previously occurred and may
in the future occur under clause (m) of the definition of “Termination Event”
contained in the Sale Agreement (collectively, together with the “Waived
Termination Events”).  In addition, to the extent of the occurrence of
the Waived Termination Events prior to September 30, 2008, the Seller should not
have been permitted to accept any additional Purchases under Section 7.2 of the
Sale Agreement and the Collection Agent is required to set aside and hold in
trust all Collections for application pursuant to Section 2.3(b) of the Sale
Agreement.  Failure
to comply with such obligations would also result in Potential Termination
Events or Termination Events under the Sale Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    C.The
Seller has requested that the Purchasers temporarily waive exercising certain
rights and remedies under the Transaction Documents under the terms and
conditions set forth herein.

     

    D.In
order to accommodate the Seller’s request, during and only during the period
(the “Waiver Period”)
beginning on the date of this Agreement and ending on March 30, 2009 (the “Scheduled Waiver Expiration
Date”), the
Agent and Purchaser Agents (collectively, the “Waiving Parties”) are
willing to temporarily waive from exercising certain rights and remedies
available solely by reason of the Waived Termination Events on the terms,
conditions, and provisions contained in this Amendment and Waiver
Agreement.

     

    E.The
parties hereto also desire to amend the Sale Agreement pursuant to Section 9.6
of the Sale Agreement under the terms and conditions provided herein;

     

    Now,
Therefore, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

     

    1.Incorporation of Recitals; Defined
Terms.  Each of the Seller and the Collection Agent
acknowledges that the Recitals set forth above are true and correct in all
material respects.  The defined terms in the Recitals set forth above
are hereby incorporated into this Amendment and Waiver Agreement by
reference.  All other capitalized terms used herein without definition
shall have the same meanings herein as such terms have in the Sale Agreement.

     

    2.Acknowledgment of Termination
Events.  The Termination Events arising out of Credit Agreement
Defaults have occurred during certain fiscal quarters occurring prior to
September 30, 2008.  Each of the Seller and Collection Agent
represents to the Agent and Purchaser Agents that there are no Potential
Termination Events other than the Waived Termination Events.

     

    3.Waiver.  Unless and
until a Waiver Termination occurs, the Purchasers will permit Reinvestment
Purchases to continue during the Waiver Period and Incremental Purchases to
continue through and including February 27, 2009 in each case in accordance
with the terms of the Agreement and each Purchaser will not exercise any other
rights or remedies it may have as a result of the occurrence of the Waived
Termination Events.

     

    4.Waiver
Termination.  As used in this Amendment and Waiver Agreement,
“Waiver Termination”
shall mean the occurrence of the Scheduled Waiver Expiration Date, or, if
earlier, the occurrence of any one or more of the following events: (a) any
Termination Event under the Sale Agreement, other than the Waived Termination
Event; (b) any failure by the Seller for any reason to comply with any
term, condition, or provision contained in this Amendment and Waiver Agreement;
(c) any representation made by the Seller in this Amendment and Waiver
Agreement proves to be incorrect or misleading in any material respect when
made; or (d) the
Parent Credit Agreement Waiver (as hereinafter defined) shall cease to be
effective.  The
occurrence of any Waiver Termination shall be deemed a Termination Event under
the Sale Agreement.  Upon the occurrence of a Waiver Termination, the
Waiver Period is automatically terminated without notice, all Purchases shall
cease and the Purchasers shall be entitled to exercise all rights and remedies
available to them.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    5.No Waiver and Reservation of
Rights.  The
Seller acknowledges and agrees that immediately upon expiration of the Waiver
Period or upon a Waiver Termination, the Agent and the Purchasers have all of
their rights and remedies with respect to the Waived Termination Event to the
same extent, and with the same force and effect, as if this waiver had not
occurred.  The Seller will not assert and hereby forever waives any
right to assert that (i) the Agent or the Purchasers are obligated in any way to
continue beyond the Waiver Period or upon a Waiver Termination, to extend any
Waiver Period, or otherwise to forbear from enforcing their rights or remedies
or (ii) that the Agent and the Purchasers are not entitled to act on the Waived
Termination Event after the occurrence of a Waiver Termination as if such
default had occurred and the Waiver Period had
never existed.  The
Seller acknowledges that the Agent and the Purchasers have made no
representations as to what actions, if any, the Agent and the Purchasers will
take after the Waiver Period or upon the occurrence of any Waiver Termination, a
Potential Termination Event or Termination Event (other than a Waived
Termination Event during the Waiver Period), and the Purchasers and the Agent
must and do hereby specifically reserve any and all rights, remedies, and claims
they have (after giving effect hereto) with respect to the Waived Termination
Events and each other Potential Termination Event or Termination Event that may
occur.

     

    6.Release.  FOR VALUE
RECEIVED, INCLUDING WITHOUT LIMITATION, THE AGREEMENTS OF THE PURCHASERS IN THIS
AMENDMENT AND WAIVER AGREEMENT, THE SELLER HEREBY RELEASES THE AGENT, EACH
PURCHASER AGENT AND EACH PURCHASER, ITS CURRENT AND FORMER SHAREHOLDERS,
DIRECTORS, OFFICERS, AGENTS, EMPLOYEES, ATTORNEYS, CONSULTANTS, AND PROFESSIONAL
ADVISORS (COLLECTIVELY, THE “RELEASED
PARTIES”)
OF AND FROM ANY AND ALL DEMANDS, ACTIONS, CAUSES OF ACTION, SUITS,
CONTROVERSIES, ACTS AND OMISSIONS, LIABILITIES, AND OTHER CLAIMS OF EVERY KIND
OR NATURE WHATSOEVER, BOTH IN LAW AND IN EQUITY, KNOWN OR UNKNOWN, WHICH THE
SELLER HAS OR EVER HAD AGAINST THE RELEASED PARTIES FROM THE BEGINNING OF THE
WORLD TO THIS DATE, INCLUDING, WITHOUT LIMITATION, THOSE ARISING OUT OF THE
AGREEMENT, AND THE SELLER FURTHER ACKNOWLEDGES THAT, AS OF THE DATE HEREOF, IT
DOES NOT HAVE ANY COUNTERCLAIM, SET-OFF, OR DEFENSE AGAINST THE RELEASED
PARTIES, EACH OF WHICH THE SELLER HEREBY EXPRESSLY WAIVES.

     

    7.Waiving Parties
Representation.  The Waiving Parties hereby represent and
warrant to the Seller and the Collection Agent that The Royal Bank of Scotland
plc has effectively assumed and/or succeeded to the right and obligations of ABN
AMRO N.V. under the Transaction Documents in accordance with terms
thereof.

     

    8.Amendments to the Sale
Agreement.  (a)  The following covenant shall be
added as a new covenant to the end of Section 5.1:

     

    “(q)(x)
If the Funding Commitments are in place by December 31, 2008, by no later
than January 31, 2009, or (y) otherwise by no later than January 15,
2009, the Seller (i) shall cause each Lock-Box Bank to transfer all of the
Lock-Box Accounts to the name of the Seller pursuant to an agreement
substantially in the form of Exhibit J hereto and, in any event, in form and
substance satisfactory to the Agent, and (ii) shall cause new Lock-Box Letters
to be executed with respect to all such Lock-Box Accounts in form and substance
satisfactory to the Agent.  As used herein, “Funding Commitments”
means commitments in form and substance satisfactory to each Purchaser Agent for
a lending facility in an amount at least equal to $100,000,000, the initial
proceeds of which must be used to refinance the Matured Aggregate
Investment.”

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (b)Clause
(d) of the definition of “Termination Date” appearing
in Schedule I to the Sale Agreement shall be amended by deleting the date “August 30, 2010” appearing
therein and inserting the date “March 30, 2009” in lieu
thereof.

     

    (c)Schedule II
to the Sale Agreement is hereby amended in its entirety and as so amended shall
read as set forth on Schedule II attached hereto.

     

    (d)Exhibit
J attached hereto shall be incorporated into and attached to the Sale Agreement
as a new Exhibit J thereto.

     

    
      (e)The
defined term “Purchase
Limit” appearing in Schedule I to the Sale Agreement is hereby amended in
its entirety and as so amended shall read as follows:

      

      “Purchase Limit” means
$100,000,000.

    

     

    9.Conditions Precedent. This
Amendment and Waiver Agreement shall become effective on the date that each of
the following shall have been satisfied  (with the date on which such
conditions shall have been satisfied or waived shall be referred to as the “Effective Date”)
(i) the Agent shall have received counterparts hereof executed by the
Seller, the Initial Collection Agent, each Purchaser, each Purchaser Agent and
the Agent, (ii) the Seller shall have paid to each Purchaser Agent an
upfront fee equal to 50 basis points (0.50%) on the revised Commitments of each
Purchaser Group set forth on Schedule II hereto, (iii) the Agent shall have
received an executed copy of the Waiver and Amendment No. 2 to the Amended and
Restated Credit Agreement dated as of December 30, 2008 relating to the
Chemtura Credit Agreement (the “Chemtura Credit Agreement
Waiver”), and (iv) the Seller shall have paid all of the invoiced and
outstanding legal fees of Chapman and Cutler LLP, counsel to the Agent, and all
outstanding legal fees of counsel to the Purchasers as well as any other
outstanding costs and expenses of the Agent or the Purchasers owing pursuant to
the Sale Agreement, including, without limitation, the amounts owing to Ernst
& Young LLP in connection with their review of the securitization
facility.

     

    10.Representations and Warranties.
To induce the Agent and the Purchasers to enter into this Amendment and
Waiver Agreement, the Seller and Collection Agent represent and warrant to the
Agent and the Purchasers that after taking into effect this Amendment and Waiver
Agreement:  (a) the representations and warranties contained in
the Transaction Documents, are true and correct in all material respects as of
the date hereof (other than, in the case of Section 5.1(i) of the Purchase
Agreement, any change in the financial condition of the Parent as set forth in
the consolidated financial statements of Chemtura as of September 30, 2008 and
for the nine month period then ended) with the same effect as though made on the
date hereof (it being understood and agreed that any representation or warranty
which by its terms is made as of a specified date shall be required to be true
and correct in all material respects only as of such specified date);
(b) no other Potential Termination Events, other than the Waived
Termination Events exists; (c) this Amendment and Waiver Agreement has been
duly authorized by all necessary corporate proceedings and duly executed and
delivered by each of the Seller and the Collection Agent, and the Sale
Agreement, as amended by this Amendment and Waiver Agreement, and each of the
other Transaction Documents are the legal, valid and binding obligations of the
Seller and the Collection Agent, enforceable against the Seller and the
Collection Agent in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency or other similar laws of
general application affecting the enforcement of creditors’ rights or by general
principles of equity; and (d) no consent, approval, authorization, order,
registration or qualification with any governmental authority is required for,
and in the absence of which would adversely effect, the legal and valid
execution and delivery or performance by the Seller or the Collection Agent of
this Amendment and Waiver Agreement or the performance by the Seller or the
Collection Agent of the Sale Agreement, as amended by this Amendment and Waiver
Agreement, or any other Transaction Document to which they are a
party.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    11.Counterparts.  This
Amendment and Waiver Agreement may be executed in any number of counterparts and
by the different parties on separate counterparts and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Amendment and Waiver Agreement.

     

    12.Guarantor
Consent.  By executing this Amendment, Chemtura Corporation
confirms that it is the “Guarantor” under the Limited
Guaranty and that the Limited Guaranty and Chemtura Corporation’s obligations
thereunder remain in full force and effect.

     

    13.Transaction Documents Remain
Effective, Miscellaneous. Except as specifically provided above, the Sale
Agreement and the other Transaction Documents and all of the obligations of the
Seller thereunder, the rights and benefits of the Agent and Purchasers
thereunder, and the security interests and other property rights created thereby
remain in full force and effect and are hereby ratified and confirmed in all
respects.  Without limiting the foregoing, the Seller agrees to comply
with all of the terms, conditions, and provisions of the Transaction Documents
as amended hereby and agreed to herein.  The execution, delivery, and
effectiveness of this Amendment and Waiver Agreement shall not operate as a
waiver of any right, power, or remedy of any Agent or any Purchaser under the
Sale Agreement or any of the other Transaction Documents, nor constitute a
waiver or modification of any provision of any of the other Transaction
Documents other than as expressly set forth herein.  Any provision of
this Amendment and Waiver Agreement held invalid, illegal, or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality, or unenforceability without affecting the validity,
legality, and enforceability of the remaining provision hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.  The parties
hereto hereby acknowledge and agree that this Amendment and Waiver Agreement
shall constitute a Transaction Document for all purposes of the Sale Agreement
and the other Transaction Documents.  Unless otherwise expressly
stated herein, the provisions of this Amendment and Waiver Agreement shall
survive the termination of the Waiver Period.

     

    14.Governing
Law.  This Amendment and Waiver Agreement and the rights and
obligations of the parties hereunder shall be construed in accordance with and
be governed by the law of the State of New York.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    In
Witness Whereof, the parties have caused this Amendment and Waiver Agreement to
be executed and delivered by their duly authorized officers as of the date first
above written.

     

    
      
        	 	
                The
      Royal Bank of Scotland plc (as 

                successor
      to ABN AMRO N.V.), as Agent 

                and
      as a Committed Purchaser

              	 
	 	 	 	 
	 	By:	Greenwich
      Capital Markets, Inc., as agent	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Daniel P.
      McGarvey	 
	 	 	Name:
      Daniel P. McGarvey	 
	 	 	Title:
      Managing Director	 

      

    

     

    
      
        	 	 	 
	
                 

              	
                Address:
      

              	
                c/o
      ABN AMRO Bank N.V.
540 West Madison Street

                
                  27th
      Floor

                

                
                  Chicago,
      Illinois  60661

                

                
                  Attention:  Agent

                

                
                  Telephone:  (312)
      338-3491

                

                
                  Telecopy:  (312)
      338-0140

                

              	 

      

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                Amsterdam
      Funding Corporation

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Jill A. Russo	 
	 	 	Name:
      Jill A. Russo	 
	 	 	Title:
      Vice President	 

      

    

    
       

      
        	 	
                Address:

                
                  
                    c/o
      Global Securitization Services, LLC

                  

                  
                    68
      South Service Road

                  

                  
                    Suite
      120

                  

                  
                    Melville,
      New York  11747

                  

                  
                    Attention:  Frank
      B. Bilotta

                  

                  
                    Telephone:  (212)
      302-5151

                  

                  
                    Telecopy:  (212)
      302-8767

                  

                   

                  
                    With
      a copy to:

                  

                   

                  The
      Royal Bank of Scotland plc

                  
                    Greenwich
      Capital Markets, Inc., as agent

                  

                  
                    c/o
      ABN AMRO Bank N.V.

                  

                  
                    540
      West Madison Street

                  

                  
                    27th
      Floor

                  

                  
                    Chicago,
      Illinois  60661

                  

                  
                    Attention:  Amsterdam
      Administrator

                  

                  
                    Telephone:  (312)
      338-3491

                  

                  
                    Telecopy:  (312)
      338-0140

                  

                

              	 

      

       

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              
                Wachovia
      Bank, National Association, as 

                the
      LC Issuer, the Related Bank Purchaser for 

                VFCC
      and as the VFCC Purchaser Agent

              

            	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/ Michael J. Landry	 
	 	 	Name:
      Michael J. Landry	 
	 	 	Title:
      Vice President	 

    

    
       

    

    
      	 	
              
                
                  Variable
      Funding Capital Company, LLC

                

              

            	 
	 	 	 	 
	
               

            	
              By:
      

            	
              Wachovia
      Capital Markets, LLC,

              as Attorney-in-Fact

            	 

    

     

    
      	
               

            	
              By:
      

            	/s/ Douglas R. Wilson, Sr.	 
	 	 	Name:
      Douglas R. Wilson, Sr.	 
	 	 	Title:
      Director	 

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
       

      
        	 	
                
                  
                    Calyon
      New York Branch, as the Related 

                    Bank
      Purchaser for Atlantic and as the 

                    Atlantic
      Purchaser Agent

                  

                

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Sam Pilcer	 
	 	 	Name:
      Sam Pilcer	 
	 	 	Title:
      Managing Director	 

      

      
         

      

      
        	 	
                
                  
                    
                      Atlantic
      Asset Securitization LLC

                    

                  

                

              	 

      

       

      
        	
                 

              	
                By:
      

              	/s/ Sam Pilcer	 
	 	 	Name:
      Sam Pilcer	 
	 	 	Title:
      Managing Director 	 

      

       

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      
         

        
          	 	
                  
                    
                      
                        Crompton
      & Knowles Receivables 

                        Corporation,
      as Seller

                      

                    

                  

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Stephen Forsyth	 
	 	 	Name:
      Stephen Forsyth 	 
	 	 	Title:
      President	 

        

        
           

        

        
          	 	
                  Chemtura
      Corporation (f/k/a Crompton 

                  Corporation),
      as Initial Collection Agent

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Stephen Forsyth	 
	 	 	Name:
      Stephen Forsyth	 
	 	 	Title:
      Chief Financial Officer	 

        

         

      

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Schedule II

     

    Related
Bank Purchasers

     and
Commitments of Related Bank Purchasers and Purchase Groups

     

    
      	
              Conduit
      Purchaser

            	
              Name
      of Related

              Bank
      Purchaser

            	
              Commitment

            
	 	 	 
	
              Amsterdam
      Funding Corporation

            	
              The
      Royal Bank of Scotland plc

            	
              $46,365,120

            
	
              Atlantic
      Asset Securitization LLC

            	
              Calyon
      New York Branch

            	
              27,817,440

            
	
              Variable
      Funding Capital Company, LLC

            	
              Wachovia
      Bank, National Association

            	
              27,817,440

            

    

    

     

    Purchaser
Group Commitments

     

    
      	
              Purchaser
      Group

            	
              Commitment

            
	
              Amsterdam
      Purchaser Group

            	
              $46,365,120

            
	
              Atlantic
      Purchaser Group

            	
              27,817,440

            
	
              VFCC
      Purchaser Group

            	
              27,817,440

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    Exhibit
J

     

    Transfer
of Lock-Box Accounts

     

    January
__, 2009

     

    Citigroup

    4500 New
Linden Hill Road

    Wilmington,
Delaware  19808

    Attention:  Mary
Jo Huelsman

     

    Ladies
and Gentlemen:

     

    We hereby
notify you of the transfer by Crompton Sales Company of lock-box numbers
7247-8429 and the associated lock-box demand deposit account number 40555094 to
Crompton & Knowles Receivables Corporation.  You are hereby
instructed to update your records to reflect the foregoing. 

     

    
      
        	 	
                Very
      truly yours,

                 

                
                  Crompton
      Sales Company

                

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	Name 	 	 
	 	Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]