Document:

EXHIBIT
        10.4

       

      AEROGROW
        INTERNATIONAL, INC.

       

      2005
        EQUITY COMPENSATION PLAN

       

      SECTION
        1.  PURPOSE

       

      This
        plan
        shall be known as the "AeroGrow International, Inc. 2005 Equity Compensation
        Plan" (the "Plan"). The purpose of the Plan is to promote the interests of
        AeroGrow International, Inc. (the "Company") and the Company's stockholders
        by
        (i) attracting and retaining key officers, employees and directors of, and
        consultants to, the Company; (ii) motivating such individuals by means of
        performance-related incentives to achieve long-range performance goals; (iii)
        enabling such individuals to participate in the long-term growth and financial
        success of the Company; (iv) encouraging ownership of stock in the Company
        by
        such individuals; and (v) linking their compensation to the long-term interests
        of the Company and its stockholders. With respect to any awards granted under
        the Plan that are intended to comply with the requirements of "performance-based
        compensation" under Section 162(m) of the Code, the Plan shall be interpreted
        in
        a manner consistent with such requirements.

       

      SECTION
        2.  DEFINITIONS

       

      As
        used
        in the Plan, the following terms shall have the meanings set forth
        below:

       

      (a)     "AWARD"
        shall mean any Option or Restricted Share Award granted under the Plan to
        a
        Participant by the Committee (or the Board) pursuant to such terms, conditions,
        restrictions and/or limitations, if any, as the Committee (or the Board)
        may
        establish.

       

      (b)     "AWARD
        AGREEMENT" shall mean any written agreement, contract or other instrument
        or
        document evidencing any Award, which may, but need not, be executed or
        acknowledged by a Participant.

       

      (c)     "BOARD"
        shall mean the board of directors of the Company.

       

      (d)     "CHANGE
        IN CONTROL" shall mean, unless otherwise defined in the applicable Award
        Agreement, any of the following events:

       

      (i)     An
        acquisition (other than directly from the Company) of any voting securities
        of
        the Company (the "Voting Securities") by any "Person" (as the term Person
        is
        used for purposes of Section 13(d) or 14(d) of the Exchange Act) immediately
        after which such Person has "Beneficial Ownership" (within the meaning of
        Rule
        13d-3 promulgated under the Exchange Act) of forty percent (40%) or more
        of the
        combined voting power of the then outstanding Voting Securities; provided,
        however, that in determining whether a Change in Control has occurred, Voting
        Securities which are acquired in a "Non-Control Acquisition" (as hereinafter
        defined) shall not constitute an acquisition which would cause a Change in
        Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an
        employee benefit plan (or a trust forming a part thereof) maintained by the
        Company;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (ii)     The
        individuals who, as of the date hereof, are members of the Board (the "Incumbent
        Board"), cease for any reason to constitute at least a majority of the Board;
        provided, however, that if the election or nomination for election by the
        Company's stockholders of any new director was approved by a vote of a majority
        of the Incumbent Board, such new director shall, for purposes of this Agreement,
        be considered as a member of the Incumbent Board; provided, further, however,
        that no individual shall be considered a member of the Incumbent Board if
        (1)
        such individual initially assumed office as a result of either an actual
        or
        threatened "Election Contest" (as described in Rule 14a-11 promulgated under
        the
        Exchange Act) or other actual or threatened solicitation of proxies or consents
        by or on behalf of a Person other than the Board (a "Proxy Contest") including
        by reason of any agreement intended to avoid or settle any Election Contest
        or
        Proxy Contest or (2) such individual was designated by a Person who has entered
        into an agreement with the Company to effect a transaction described in clause
        (i) or (iii) of this paragraph; or

       

      (iii)     Approval
        by stockholders of the Company of:

       

      (A)     A
        merger,
        consolidation or reorganization involving the Company, unless,

       

      (1)     The
        stockholders of the Company immediately before such merger, consolidation
        or
        reorganization, own, directly or indirectly, immediately following such merger,
        consolidation or reorganization, at least seventy-five percent (75%) of the
        combined voting power of the outstanding Voting Securities of the corporation
        (the "Surviving Corporation") in substantially the same proportion as their
        ownership of the Voting Securities immediately before such merger, consolidation
        or reorganization;

       

      (2)     The
        individuals who were members of the Incumbent Board immediately prior to
        the
        execution of the agreement providing for such merger, consolidation or
        reorganization constitute at least two-thirds of the members of the board
        of
        directors of the Surviving Corporation; and

       

      (3)     No
        Person
        (other than the Company, any employee benefit plan (or any trust forming
        a part
        thereof) maintained by the Company or the Surviving Corporation, or any Person
        who, immediately prior to such merger, consolidation or reorganization, had
        Beneficial Ownership of forty percent (40%) or more of the then outstanding
        Voting Securities) has Beneficial Ownership of forty percent (40%) or more
        of
        the combined voting power of the Surviving Corporation's then outstanding
        Voting
        Securities.

       

      (B)     A
        complete liquidation or dissolution of the Company; or

       

      (C)     An
        agreement
        for the sale or other disposition of all or substantially all of the assets
        of
        the Company to any Person.

       

      Notwithstanding
        the foregoing, a Change in Control shall not be deemed to occur solely because
        any Person (the "Subject Person") acquired Beneficial Ownership of more than
        the
        permitted amount of the outstanding Voting Securities as a result of the
        acquisition of Voting Securities by the Company which, by reducing the number
        of
        Voting Securities outstanding, increased the proportional number of shares
        Beneficially Owned by the Subject Person, provided that if a Change in Control
        would occur (but for the operation of this sentence) as a result of the
        acquisition of Voting Securities by the Company, and after such share
        acquisition by the Company, the Subject Person becomes the Beneficial Owner
        of
        any additional Voting Securities Beneficially Owned by the Subject Person,
        then
        a Change in Control shall occur.

       

      
        
          
          

        

        
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      (e)     "CODE"
        shall mean the Internal Revenue Code of 1986, as amended from time to
        time.

       

      (f)     "COMMITTEE"
        shall mean a committee of the Board which shall eventually be composed entirely
        of Non-Employee Directors, each of whom shall be a "Non-Employee Director"
        for
        purposes of Exchange Act Section 16 and Rule 16b-3 thereunder and an "outside
        director" for purposes of Section 162(m) and the regulations promulgated
        under
        the Code.

       

      (g)     "CONSULTANT"
        shall mean any consultant to the Company.

       

      (h)     "DIRECTOR"
        shall mean a member of the Board.

       

      (i)     "EMPLOYEE"
        shall mean a current or prospective officer or employee of the
        Company.

       

      (j)     "EXCHANGE
        ACT" shall mean the Securities Exchange Act of 1934, as amended from time
        to
        time.

       

      (k)     "FAIR
        MARKET
        VALUE" with respect to the Shares, shall mean, for purposes of a grant of
        an
        Award as of any date, (i) the closing sales price of the Shares on the Nasdaq
        SmallCap Market, or any other exchange or quotation system on which the Shares
        are traded, on such date, or in the absence of reported sales on such date,
        the
        closing sales price on the immediately preceding date on which sales were
        reported or (ii) in the event there is no public market for the Shares on
        such
        date, the fair market value as determined, in good faith, by the Committee
        in
        its sole discretion, and for purposes of a sale of a Share as of any date,
        the
        actual sales price on that date.

       

      (l)     "INCENTIVE
        STOCK OPTION" shall mean an option to purchase Shares from the Company that
        is
        granted under Section 6 of the Plan and that is intended to meet the
        requirements of Section 422 of the Code or any successor provision
        thereto.

       

      (m)     "NON-QUALIFIED
        STOCK
        OPTION" shall mean an option to purchase Shares from the Company that is
        granted
        under Section 6 or 8 of the Plan and is not intended to be an Incentive Stock
        Option.

       

      (n)     "NON-EMPLOYEE
        DIRECTOR" shall mean a member of the Board who is not an officer or employee
        of
        the Company.

       

      (o)     "OPTION"
        shall mean an Incentive Stock Option or a Non-Qualified Stock
        Option.

       

      
        
          
          

        

        
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      (p)     "OPTION
        PRICE" shall mean the purchase price payable to purchase one Share upon the
        exercise of an Option.

       

      (q)     "PARTICIPANT"
        shall mean any Employee, Director, Consultant or other person who receives
        an
        Award under the Plan.

       

      (r)     "PERSON"
        shall mean any individual, corporation, partnership, limited liability company,
        associate, joint-stock company, trust, unincorporated organization, government
        or political subdivision thereof or other entity.

       

      (s)     "RESTRICTED
        SHARE" shall mean any Share granted under Section 7 or 8 of the
        Plan.

       

      (t)     "SEC"
        shall mean the Securities and Exchange Commission or any successor
        thereto.

       

      (u)     "SECTION
        16" shall mean Section 16 of the Exchange Act and the rules promulgated
        thereunder and any successor provision thereto as in effect from time to
        time.

       

      (v)     "SECTION
        162(M)" shall mean Section 162(m) of the Code and the regulations promulgated
        thereunder and any successor or provision thereto as in effect from time
        to
        time.

       

      (w)      "SHARES"
        shall mean shares of the common stock, $0.001 par value, of the
        Company.

       

      SECTION
        3.  ADMINISTRATION

       

      3.1  Authority
        of Committee.
        The
        Plan shall be administered by the Committee, which shall be appointed by
        and
        serve at the pleasure of the Board; provided, however, with respect to Awards
        to
        Directors who are members of the Committee, all references in the Plan to
        the
        Committee shall be deemed to be references to the Board. Subject to the terms
        of
        the Plan and applicable law, and in addition to other express powers and
        authorizations conferred on the Committee by the Plan, the Committee shall
        have
        full power and authority in its discretion to: (i) designate Participants;
        (ii)
        determine the type or types of Awards to be granted to a Participant; (iii)
        determine the number of Shares to be covered by, or with respect to which
        payments, rights, or other matters are to be calculated in connection with
        Awards; (iv) determine the timing, terms, and conditions of any Award; (v)
        accelerate the time at which all or any part of an Award may be settled or
        exercised; (vi) determine whether, to what extent, and under what circumstances
        Awards may be settled or exercised in cash, Shares, other securities, other
        Awards or other property, or canceled, forfeited, or suspended and the method
        or
        methods by which Awards may be settled, exercised, canceled, forfeited, or
        suspended; (vii) determine whether, to what extent, and under what circumstances
        cash, Shares, other securities, other Awards, other property, and other amounts
        payable with respect to an Award shall be deferred either automatically or
        at
        the election of the holder thereof or of the Committee; (viii) interpret
        and
        administer the Plan and any instrument or agreement relating to, or Award
        made
        under, the Plan; (ix) except to the extent prohibited by Section 6.2, amend
        or
        modify the terms of any Award at or after grant with the consent of the holder
        of the Award; (x) establish, amend, suspend, or waive such rules and regulations
        and appoint such agents as it shall deem appropriate for the proper
        administration of the Plan; and (xi) make any other determination and take
        any
        other action that the Committee deems necessary or desirable for the
        administration of the Plan, subject to the exclusive authority of the Board
        under Section 11 hereunder to amend or terminate the Plan.

       

      
        
          
          

        

        
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      3.2  Committee
        Discretion Binding.
        Unless
        otherwise expressly provided in the Plan, all designations, determinations,
        interpretations, and other decisions under or with respect to the Plan or
        any
        Award shall be within the sole discretion of the Committee, may be made at
        any
        time and shall be final, conclusive, and binding upon all Persons, including
        the
        Company, any Participant and any holder or beneficiary of any
        Award.

       

      3.3  Action
        by the Committee.
        The
        Committee shall select one of its members as its Chairperson and shall hold
        its
        meetings at such times and places and in such manner as it may determine.
        A
        majority of its members shall constitute a quorum. All determinations of
        the
        Committee shall be made by not less than a majority of its members. Any decision
        or determination reduced to writing and signed by all of the members of the
        Committee shall be fully effective as if it had been made by a majority vote
        at
        a meeting duly called and held. The exercise of an Option or receipt of an
        Award
        shall be effective only if an Award Agreement shall have been duly executed
        and
        delivered on behalf of the Company following the grant of the Option or other
        Award. The Committee may appoint a secretary and may make such rules and
        regulations for the conduct of its business, as it shall deem
        advisable.

       

      3.4  Delegation.
        Subject
        to the terms of the Plan and applicable law, the Committee may delegate to
        one
        or more officers or managers of the Company, or to a Committee of such officers
        or managers, the authority, subject to such terms and limitations as the
        Committee shall determine, to grant Awards to, or to cancel, modify or waive
        rights with respect to, or to alter, discontinue, suspend, or terminate Awards
        held by Participants who are not officers or directors of the Company for
        purposes of Section 16 or who are otherwise not subject to such
        section.

       

      3.5  No
        Liability.
        No
        member of the Board or Committee shall be liable for any action taken or
        determination made in good faith with respect to the Plan or any Award granted
        hereunder.

       

      SECTION
        4.  SHARES
        AVAILABLE FOR AWARDS

       

      4.1  Shares
        Available.
        Subject
        to the provisions of Section 4.2 hereof, the stock to be subject to Awards
        under
        the Plan shall be the Shares of the Company and the maximum number of Shares
        with respect to which Awards may be granted under the Plan shall be 1,505,000,
        which includes 195,131 Shares with respect to which awards under the AeroGrow
        International, Inc. 2003 Stock Option Plan ("2003 Plan") were authorized
        but not
        granted. Notwithstanding the foregoing and subject to adjustment as provided
        in
        Section 4.2, the maximum number of Shares with respect to which Awards may
        be
        granted under the Plan shall be increased by the number of Shares with respect
        to which Options or other Awards were granted under the 2003 Plan, as of
        the
        effective date of this Plan, but which terminate, expire unexercised, or
        are
        settled for cash, forfeited or canceled without the delivery of Shares under
        the
        terms of the 2003 Plan after the effective date of this Plan. The number
        of
        Shares to which Awards may be granted under the Plan may not be increased
        unless
        such increase is approved by at least a majority of the outstanding
        Shares.

       

      
        
          
          

        

        
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      If,
        after
        the effective date of the Plan, any Shares covered by an Award granted under
        this Plan, or to which such an Award relates, are forfeited, or if such an
        Award
        is settled for cash or otherwise terminates, expires unexercised, or is canceled
        without the delivery of Shares, then the Shares covered by such Award, or
        to
        which such Award relates, or the number of Shares otherwise counted against
        the
        aggregate number of Shares with respect to which Awards may be granted, to
        the
        extent of any such settlement, forfeiture, termination, expiration, or
        cancellation, shall again become Shares with respect to which Awards may
        be
        granted. In the event that any Option or other Award granted hereunder is
        exercised through the delivery of Shares or in the event that withholding
        tax
        liabilities arising from such Award are satisfied by the withholding of Shares
        by the Company, the number of Shares available for Awards under the Plan
        shall
        be increased by the number of Shares so surrendered or withheld.

       

      4.2  Adjustments.
        In the
        event that the Committee determines that any dividend or other distribution
        (whether in the form of cash, Shares, other securities, or other property)
        recapitalization, stock split, reverse stock split, reorganization, merger,
        consolidation, split-up, spin-off, combination, repurchase, or exchange of
        Shares or other securities of the Company, issuance of warrants or other
        rights
        to purchase Shares or other securities of the Company, or other similar
        corporate transaction or event affects the Shares such that an adjustment
        is
        determined by the Committee, in its sole discretion, to be appropriate, then
        the
        Committee shall, in such manner as it may deem equitable (and, with respect
        to
        Incentive Stock Options, in such manner as is consistent with Section 422
        of the
        Code and the regulations thereunder): (i) adjust any or all of (1) the aggregate
        number of Shares or other securities of the Company (or number and kind of
        other
        securities or property) with respect to which Awards may be granted under
        the
        Plan; (2) the number of Shares or other securities of the Company (or number
        and
        kind of other securities or property) subject to outstanding Awards under
        the
        Plan; and (3) the grant or exercise price with respect to any Award under
        the
        Plan, provided that the number of Shares subject to any Award shall always
        be a
        whole number; (ii) if deemed appropriate, provide for an equivalent award
        in
        respect of securities of the surviving entity of any merger, consolidation
        or
        other transaction or event having a similar effect; or (iii) if deemed
        appropriate, make provision for a cash payment to the holder of an outstanding
        Award.

       

      4.3  Sources
        of Shares Deliverable Under Awards.
        Any
        Shares delivered pursuant to an Award may consist, in whole or in part, of
        authorized and unissued Shares or of issued Shares that have been reacquired
        by
        the Company.

       

      SECTION
        5.  ELIGIBILITY

       

      Any
        Employee, Director or Consultant shall be eligible to be designated a
        Participant; provided, however, that Non-Employee Directors shall only be
        eligible to receive Awards granted consistent with Section 8.1.

       

      SECTION
        6.  STOCK
        OPTIONS

       

      6.1  Grant.
        Subject
        to the provisions of the Plan, the Committee shall have sole and complete
        authority to determine the Participants to whom Options shall be granted,
        the
        number of Shares subject to each Award, the exercise price and the conditions
        and limitations applicable to the exercise of each Option. The Committee
        shall
        have the authority to grant Incentive Stock Options or Non-Qualified Stock
        Options or to grant both types of Options. In the case of Incentive Stock
        Options, the terms and conditions of such grants shall be subject to and
        comply
        with such rules as may be prescribed by Section 422 of the Code, as from
        time to
        time amended, and any regulations implementing such statute. A person who
        has
        been granted an Option under this Plan may be granted additional Options
        under
        the Plan if the Committee shall so determine; provided, however, that to
        the
        extent the aggregate Fair Market Value (determined at the time the Incentive
        Stock Option related thereto is granted) of the Shares with respect to which
        all
        Incentive Stock Options related to such Option are exercisable for the first
        time by an Employee during any calendar year (under all plans described in
        subsection (d) of Section 422 of the Code of the Company) exceeds $100,000
        (or
        such higher amount as is permitted in the future under Section 422(d) of
        the
        Code), such Options shall be treated as Non-Qualified Stock
        Options.

       

      
        
          
          

        

        
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      6.2  Price.
        The
        Committee in its sole discretion shall establish the Option Price at the
        time
        each Option is granted. The Option Price of an Option may not be less than
        100%
        of the Fair Market Value of the Shares with respect to which the Option is
        granted on the date of grant of such Option. Notwithstanding the foregoing
        and
        except as permitted by the provisions of Section 4.2 and Section 11 hereof,
        the
        Committee shall not have the power to (i) amend the terms of previously granted
        Options to reduce the Option Price of such Options, or (ii) cancel such Options
        and grant substitute Options with a lower Option Price than the canceled
        Options.

       

      6.3  Term.
        Subject
        to the Committee's authority under Section 3.1 and the provisions of Section
        6.5, each Option and all rights and obligations thereunder shall expire on
        the
        date determined by the Committee and specified in the Award Agreement. The
        Committee shall be under no duty to provide terms of like duration for Options
        granted under the Plan. Notwithstanding the foregoing, no Option that relates
        to
        such Option shall be exercisable after the expiration of five (5) years from
        the
        date such Option was granted.

       

      6.4  Exercise.

       

      (a)     Each
        Option shall be exercisable at such times and subject to such terms and
        conditions as the Committee may, in its sole discretion, specify in the
        applicable Award Agreement or thereafter. The Committee shall have full and
        complete authority to determine, subject to Section 6.5 herein, whether an
        Option will be exercisable in full at any time or from time to time during
        the
        term of the Option, or to provide for the exercise thereof in such installments,
        upon the occurrence of such events and at such times during the term of the
        Option as the Committee may determine.

       

      (b)     The
        Committee may impose such conditions with respect to the exercise of Options,
        including without limitation, any relating to the application of federal,
        state
        or foreign securities laws or the Code, as it may deem necessary or advisable.
        The exercise of any Option granted hereunder shall be effective only at such
        time as the sale of Shares pursuant to such exercise will not violate any
        state
        or federal securities or other laws.

       

      (c)     An
        Option
        may be exercised in whole or in part at any time, with respect to whole Shares
        only, within the period permitted thereunder for the exercise thereof, and
        shall
        be exercised by written notice of intent to exercise the Option, delivered
        to
        the Company at its principal office, and payment in full to the Company at
        the
        direction of the Committee of the amount of the Option Price for the number
        of
        Shares with respect to which the Option is then being exercised.

       

      
        
          
          

        

        
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      (d)     Payment
        of
        the Option Price shall be made in cash or cash equivalents, or, at the
        discretion of the Committee, (i) in whole Shares valued at the Fair Market
        Value
        of such Shares on the date of exercise, together with any applicable withholding
        taxes, or (ii) by a combination of such cash (or cash equivalents) and such
        Shares; provided, however, that the optionee shall not be entitled to tender
        Shares pursuant to successive, substantially simultaneous exercises of an
        Option
        or any other stock option of the Company. Subject to applicable securities
        laws,
        an Option may also be exercised by (i) delivering a notice of exercise of
        the
        Option and simultaneously selling the Shares thereby acquired, pursuant to
        a
        brokerage or similar agreement approved in advance by proper officers of
        the
        Company, using the proceeds of such sale as payment of the Option Price,
        together with any applicable withholding taxes, or (ii) any other exercise
        method (including attestation of shares) approved by the Committee. Until
        the
        optionee has been issued the Shares subject to such exercise, he or she shall
        possess no rights as a stockholder with respect to such Shares.

       

      6.5  Ten
        Percent Stock Rule.
        Notwithstanding any other provisions in the Plan, if at the time an Option
        is
        otherwise to be granted pursuant to the Plan the optionee or rights holder
        owns
        directly or indirectly (within the meaning of Section 424(d) of the Code)
        Shares
        of the Company possessing more than ten percent (10%) of the total combined
        voting power of all classes of Stock of the Company, then any Incentive Stock
        Option to be granted to such optionee or rights holder pursuant to the Plan
        shall satisfy the requirement of Section 422(c)(5) of the Code, and the Option
        Price shall be not less than 110% of the Fair Market Value of the Shares
        of the
        Company, and such Option by its terms shall not be exercisable after the
        expiration of five (5) years from the date such Option is granted.

       

      SECTION
        7.  RESTRICTED
        SHARES

       

      7.1  Grant.

       

      (a)     Subject
        to the provisions of the Plan, the Committee shall have sole and complete
        authority to determine the Participants to whom Restricted Shares shall be
        granted, the number of Restricted Shares to be granted to each Participant,
        the
        duration of the period during which, and the conditions under which, the
        Restricted Shares may be forfeited to the Company, and the other terms and
        conditions of such Awards. The Restricted Shares shall be evidenced by Award
        Agreements in such form as the Committee shall from time to time approve,
        which
        agreements shall comply with and be subject to the terms and conditions provided
        hereunder and any additional terms and conditions established by the Committee
        that are consistent with the terms of the Plan.

       

      (b)     Each
        Restricted Share made under the Plan shall be for such number of Shares as
        shall
        be determined by the Committee and set forth in the Award Agreement containing
        the terms of such Restricted Share Award. The Award Agreement for employees
        may
        set forth a period of time during which the grantee must remain in the
        continuous employment of the Company in order for the forfeiture and transfer
        restrictions to lapse. If the Committee so determines, the restrictions may
        lapse during such restricted period in installments with respect to specified
        portions of the Shares covered by the Restricted Share Award. The Award
        Agreement may also, in the discretion of the Committee, set forth performance
        or
        other conditions that will subject the Shares to forfeiture and transfer
        restrictions. The Committee may, at its discretion, waive all or any part
        of the
        restrictions applicable to any or all outstanding Restricted Share
        Awards.

       

      
        
          
          

        

        
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      7.2  Delivery
        of Shares and Transfer Restrictions.
        At the
        time of a Restricted Share Award, a certificate representing the number of
        Shares awarded thereunder shall be registered in the name of the grantee.
        Such
        certificate shall be held by the Company or any custodian appointed by the
        Company for the account of the grantee subject to the terms and conditions
        of
        the Plan, and shall bear such a legend setting forth the restrictions imposed
        thereon as the Committee, in its discretion, may determine. The grantee shall
        have all rights of a stockholder with respect to the Restricted Shares,
        including the right to receive dividends and the right to vote such Shares,
        subject to the following restrictions: (i) the grantee shall not be entitled
        to
        delivery of the stock certificate until the expiration of the restricted
        period
        and the fulfillment of any other restrictive conditions set forth in the
        Award
        Agreement with respect to such Shares; (ii) none of the Shares may be sold,
        assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed
        of during such restricted period or until after the fulfillment of any such
        other restrictive conditions; and (iii) except as otherwise determined by
        the
        Committee at or after grant, all of the Shares shall be forfeited and all
        rights
        of the grantee to such Shares shall terminate, without further obligation
        on the
        part of the Company, unless any restrictive conditions set forth in the Award
        Agreement relating to the Restricted Share Award are met. Any Shares, any
        other
        securities of the Company and any other property (except for cash dividends)
        distributed with respect to the Shares subject to Restricted Share Awards
        shall
        be subject to the same restrictions, terms and conditions as such restricted
        Shares.

       

      7.3  Termination
        of Restrictions.
        At the
        end of the restricted period and provided that any other restrictive conditions
        of the Restricted Share Award are met, or at such earlier time as otherwise
        determined by the Committee, all restrictions set forth in the Award Agreement
        relating to the Restricted Share Award or in the Plan shall lapse as to the
        restricted Shares subject thereto, and a stock certificate for the appropriate
        number of Shares, free of the restrictions and restricted stock legend, other
        than any legends required by applicable securities laws, shall be delivered
        to
        the Participant or the Participant's beneficiary or estate, as the case may
        be.

       

      SECTION
        8.  DIRECTOR
        AWARDS

       

      8.1  Awards
        to Non-Employee Directors.
        The
        Board may provide that all or a portion of a Non-Employee Director's annual
        retainer, meeting fees and/or other awards or compensation as determined
        by the
        Board, be payable (either automatically or at the election of a Non-Employee
        Director) in the form of Non-Qualified Stock Options or Restricted Shares.
        The
        Board shall determine the terms and conditions of any such Awards, including
        the
        terms and conditions which shall apply upon a termination of the Non-Employee
        Director's service as a member of the Board, and shall have full power and
        authority in its discretion to administer such Awards, subject to the terms
        of
        the Plan and applicable law.

       

      8.2  Awards
        of Restricted Shares to Directors.
        Grants
        of Restricted Shares to Directors in lieu of cash stipends, in whole or in
        part,
        shall have no minimum vesting period or restrictive period as may be determined
        in the sole discretion of the Committee.

       

      
        
          
          

        

        
          -
            9
            -

          
            

          

        

        
          
          

        

      

       

      SECTION
        9.  TERMINATION

       

      The
        Committee shall have the full power and authority to determine the terms
        and
        conditions that shall apply to any Award upon a termination of employment,
        consulting arrangement or directorship with the Company, including a termination
        by the Company with or without cause, by a Participant voluntarily, or by
        reason
        of death, disability or retirement, and may provide such terms and conditions
        in
        the Award Agreement or in such rules and regulations as it may
        prescribe.

       

      SECTION
        10.  CHANGE
        IN CONTROL

       

      Upon
        a
        Change in Control, all outstanding Awards shall vest, become immediately
        exercisable or payable and have all restrictions lifted. 

       

      SECTION
        11.  AMENDMENT
        AND TERMINATION

       

      11.1  Amendments
        to the Plan.
        The
        Board may amend, alter, suspend, discontinue, or terminate the Plan or any
        portion thereof at any time; provided that no such amendment, alteration,
        suspension, discontinuation or termination shall be made without stockholder
        approval if such approval is necessary to comply with any tax or regulatory
        requirement for which or with which the Board deems it necessary or desirable
        to
        comply; provided that any such waiver, amendment, alteration, suspension,
        discontinuance or termination that would adversely affect the rights of any
        Participants, or any holder or beneficiary, under any Award theretofore granted,
        shall not to that extent be effective without the consent of the affected
        Participant, holder, or beneficiary.

       

      11.2  Amendments
        to Awards.
        Subject
        to the restrictions of Section 6.2, the Committee may waive any conditions
        or
        rights under, amend any terms of, or alter, suspend, discontinue, cancel
        or
        terminate, any Award theretofore granted, prospectively or retroactively;
        provided that any such waiver, amendment, alteration, suspension,
        discontinuance, cancellation or termination that would adversely affect the
        rights of any Participants, or any holder or beneficiary of any Award
        theretofore granted, shall not to that extent be effective without the consent
        of the affected Participant, holder, or beneficiary.

       

      11.3  Adjustments
        of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
        Events.
        The
        Committee is hereby authorized to make adjustments in the terms and conditions
        of, and the criteria included in, Awards in recognition of unusual or
        nonrecurring events (including, without limitation, the events described
        in
        Section 4.2 hereof) affecting the Company or the financial statements of
        the
        Company, or of changes in applicable laws, regulations, or accounting
        principles, whenever the Committee determines that such adjustments are
        appropriate in order to prevent dilution or enlargement of the benefits or
        potential benefits intended to be made available under the Plan.

       

      SECTION
        12.  GENERAL
        PROVISIONS

       

      12.1  Limited
        Transferability of Awards.
        Except
        as otherwise provided in the Plan, no Award shall be assigned, alienated,
        pledged, attached, sold or otherwise transferred or encumbered by a Participant,
        except by will or the laws of descent and distribution and/or as may be provided
        by the Committee in its discretion, at or after grant, in the Award Agreement.
        No transfer of an Award by will or by laws of descent and distribution shall
        be
        effective to bind the Company unless the Company shall have been furnished
        with
        written notice thereof and an authenticated copy of the will and/or such
        other
        evidence as the Committee may deem necessary or appropriate to establish
        the
        validity of the transfer.

       

      
        
          
          

        

        
          -
            10
            -

          
            

          

        

        
          
          

        

      

       

      12.2  Dividend
        Equivalents.
        In the
        sole and complete discretion of the Committee, an Award may provide the
        Participant with dividends or dividend equivalents, payable in cash, Shares,
        other securities or other property on a current or deferred basis. All dividend
        or dividend equivalents which are not paid currently may, at the Committee's
        discretion, accrue interest, be reinvested into additional Shares and paid
        to
        the Participant if and when, and to the extent that, payment is made pursuant
        to
        such Award. The total number of Shares available for grant under Section
        4 shall
        not be reduced to reflect any dividends or dividend equivalents that are
        reinvested into additional Shares.

       

      12.3  No
        Rights to Awards.
        No
        Person shall have any claim to be granted any Award, and there is no obligation
        for uniformity of treatment of Participants or holders or beneficiaries of
        Awards. The terms and conditions of Awards need not be the same with respect
        to
        each Participant.

       

      12.4  Share
        Certificates.
        All
        certificates for Shares or other securities of the Company delivered under
        the
        Plan pursuant to any Award or the exercise thereof shall be subject to such
        stop
        transfer orders and other restrictions as the Committee may deem advisable
        under
        the Plan or the rules, regulations and other requirements of the SEC or any
        state securities commission or regulatory authority, any stock exchange or
        other
        market upon which such Shares or other securities are then listed, and any
        applicable Federal or state laws, and the Committee may cause a legend or
        legends to be put on any such certificates to make appropriate reference
        to such
        restrictions.

       

      12.5  Withholding.
        A
        Participant may be required to pay to the Company and the Company shall have
        the
        right and is hereby authorized to withhold from any Award, from any payment
        due
        or transfer made under any Award or under the Plan, or from any compensation
        or
        other amount owing to a Participant the amount (in cash, Shares, other
        securities, other Awards or other property) of any applicable withholding
        or
        other taxes in respect of an Award, its exercise, or any payment or transfer
        under an Award or under the Plan and to take such other action as may be
        necessary in the opinion of the Company to satisfy all obligations for the
        payment of such taxes. The Committee may provide for additional cash payments
        to
        holders of Options to defray or offset any tax arising from the grant, vesting,
        exercise or payment of any Award.

       

      12.6  Award
        Agreements.
        Each
        Award hereunder shall be evidenced by an Award Agreement that shall be delivered
        to the Participant and may specify the terms and conditions of the Award
        and any
        rules applicable thereto. In the event of a conflict between the terms of
        the
        Plan and any Award Agreement, the terms of the Plan shall prevail.

       

      12.7  No
        Limit on Other Compensation Arrangements.
        Nothing
        contained in the Plan shall prevent the Company from adopting or continuing
        in
        effect other compensation arrangements, which may, but need not, provide
        for the
        grant of Options, Restricted Shares or other types of Awards provided for
        hereunder.

       

      
        
          
          

        

        
          -
            11
            -

          
            

          

        

        
          
          

        

      

       

      12.8  No
        Right to Employment.
        The
        grant of an Award shall not be construed as giving a Participant the right
        to be
        retained in the employ of the Company. Further, the Company may at any time
        dismiss a Participant from employment, free from any liability or any claim
        under the Plan, unless otherwise expressly provided in an Award
        Agreement.

       

      12.9  No
        Rights as Stockholder.
        Subject
        to the provisions of the Plan and the applicable Award Agreement, no Participant
        or holder or beneficiary of any Award shall have any rights as a stockholder
        with respect to any Shares to be distributed under the Plan until such person
        has become a holder of such Shares. Notwithstanding the foregoing, in connection
        with each grant of Restricted Shares hereunder, the applicable Award Agreement
        shall specify if and to what extent the Participant shall not be entitled
        to the
        rights of a stockholder in respect of such Restricted Shares.

       

      12.10  Governing
        Law.
        The
        validity, construction and effect of the Plan and any rules and regulations
        relating to the Plan and any Award Agreement shall be determined in accordance
        with the laws of the State of Colorado without giving effect to conflicts
        of
        laws principles.

       

      12.11  Severability.
        If any
        provision of the Plan or any Award is, or becomes, or is deemed to be invalid,
        illegal, or unenforceable in any jurisdiction or as to any Person or Award,
        or
        would disqualify the Plan or any Award under any law deemed applicable by
        the
        Committee, such provision shall be construed or deemed amended to conform
        to the
        applicable laws, or if it cannot be construed or deemed amended without,
        in the
        determination of the Committee, materially altering the intent of the Plan
        or
        the Award, such provision shall be stricken as to such jurisdiction, Person
        or
        Award and the remainder of the Plan and any such Award shall remain in full
        force and effect.

       

      12.12  Other
        Laws.
        The
        Committee may refuse to issue or transfer any Shares or other consideration
        under an Award if, acting in its sole discretion, it determines that the
        issuance or transfer of such Shares or such other consideration might violate
        any applicable law or regulation (including applicable non-U.S. laws or
        regulations) or entitle the Company to recover the same under Exchange Act
        Section 16(b), and any payment tendered to the Company by a Participant,
        other
        holder or beneficiary in connection with the exercise of such Award shall
        be
        promptly refunded to the relevant Participant, holder, or
        beneficiary.

       

      12.13  No
        Trust or Fund Created.
        Neither
        the Plan nor any Award shall create or be construed to create a trust or
        separate fund of any kind or a fiduciary relationship between the Company
        and a
        Participant or any other Person. To the extent that any Person acquires a
        right
        to receive payments from the Company pursuant to an Award, such right shall
        be
        no greater than the right of any unsecured general creditor of the
        Company.

       

      12.14  No
        Fractional Shares.
        No
        fractional Shares shall be issued or delivered pursuant to the Plan or any
        Award, and the Committee shall determine whether cash, other securities,
        or
        other property shall be paid or transferred in lieu of any fractional Shares
        or
        whether such fractional Shares or any rights thereto shall be canceled,
        terminated or otherwise eliminated.

       

      
        
          
          

        

        
          -
            12
            -

          
            

          

        

        
          
          

        

      

       

      12.15  Headings.
        Headings are given to the sections and subsections of the Plan solely as
        a
        convenience to facilitate reference. Such headings shall not be deemed in
        any
        way material or relevant to the construction or interpretation of the Plan
        or
        any provision thereof.

       

      SECTION
        13.  TERM
        OF THE PLAN

       

      13.1  Effective
        Date.
        The
        Plan shall be effective as of August ____, 2005, provided it has been approved
        by the Company's stockholders on or prior to August ____, 2006.

       

      13.2  Expiration
        Date.
        No new
        Awards shall be granted under the Plan after the tenth (10th) anniversary
        of the
        Effective Date. Unless otherwise expressly provided in the Plan or in an
        applicable Award Agreement, any Award granted hereunder may, and the authority
        of the Board or the Committee to amend, alter, adjust, suspend, discontinue,
        or
        terminate any such Award or to waive any conditions or rights under any such
        Award shall, continue after the tenth (10th) anniversary of the Effective
        Date.

       

       

      
        
          
          

        

        -
          13
          -EXHIBIT
        10.5

      

      STOCK
        OPTION AGREEMENT

      RELATING
        TO THE 

      AEROGROW
        INTERNATIONAL, INC.

      2005
        EQUITY COMPENSATION PLAN

       

      This
        Stock Option Agreement dated as of this ______ day of ______________ 2005
        ("Option Agreement") is between AeroGrow International, Inc., a Nevada
        corporation (the "Company"), and ______________________ (the
        "Optionee").

       

      RECITALS

       

      WHEREAS,
        the Company has adopted the AeroGrow International, Inc. 2005 Equity
        Compensation Plan (the "Plan") for the purpose of providing employees,
        consultants and directors of the Company with additional incentive to promote
        the success of the business, to increase their proprietary interest in the
        success of the Company, and to encourage them to remain in the employ of,
        or as
        a consultant or director to, the Company; and

       

      WHEREAS,
        the Company, acting through the Compensation Committee of its Board of Directors
        (the "Committee"), has determined that its interests will be advanced by
        the
        issuance to Optionee of stock options under the Plan;

       

      NOW,
        THEREFORE, for and in consideration of the promises contained herein and
        the
        benefits to be derived herefrom, the parties agree as follows:

       

      1.  Option.
        Subject
        to the terms and conditions contained herein, the Company hereby irrevocably
        grants to Optionee [incentive stock options as defined in Section 422 of
        the
        Internal Revenue Code of 1986, as amended ("Code") OR non-qualified stock
        options as defined in the Plan] ("Options") to purchase from the Company
        ______________ shares of the Company's common stock, $0.001 par value ("Common
        Stock"), at a price of $_____________ per share (the "Option Price") which
        the
        Committee has in good faith determined to be no less than 100% of the fair
        market value of the Common Stock as of the date of this Agreement.

       

      2.  Option
        Period.
        The
        Options herein granted may be exercised by Optionee in whole or in part on
        or
        after the dates on which the right to exercise the Option for such shares
        of
        Common Stock has vested ("Option Period"), in accordance with the following
        schedule, unless sooner terminated pursuant to the terms of this Option
        Agreement: [for
        example]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          	 	 	
                  Number
                    of

                	 
	
                  Date

                	 	
                  Shares
                    Purchasable

                	 
	
                  __________,
                    2005

                	 	 	
                  _____________

                	 
	
                  __________,
                    2006

                	 	 	
                  _____________

                	 
	
                  __________,
                    2007

                	 	 	
                  _____________

                	 
	
                  __________,
                    2008

                	 	 	
                  _____________

                	 
	
                  __________,
                    2009

                	 	 	
                  _____________

                	 
	
                  __________,
                    2010

                	 	 	
                  _____________

                	 
	 	 	 	 	 

        

      

      Notwithstanding
        anything in this Agreement to the contrary, the Committee in its sole discretion
        may waive the foregoing schedule of vesting and, upon written notice to the
        Optionee, accelerate the earliest date on which any of the Options granted
        hereunder are exercisable. Notwithstanding any other provisions contained
        herein, the Options shall not be exercisable after the fifth anniversary
        of this
        Option Agreement.

       

      3.  Procedure
        for Exercise.
        The
        Options may be exercised by written notice by Optionee to the Secretary of
        the
        Company setting forth the number of shares of Common Stock with respect to
        which
        the Option is to be exercised accompanied by payment of the Option Price
        for the
        shares to be purchased, and specifying the address to which the certificate
        for
        such shares is to be mailed. Payment shall be by means of cash or personal
        check
        payable to the order of the Company, together with any applicable withholding
        taxes pursuant to Section 13. As promptly as practicable after receipt of
        such
        written notification and payment, the Company shall deliver to Optionee
        certificates for the number of shares of Common Stock with respect to which
        such
        Option has been so exercised.

       

      4.  Termination
        of [Employment/Directorship/Consulting Arrangement.]
        If
        Optionee's [employment/directorship/consulting arrangement] with the Company
        is
        terminated during the Option Period for any reason, Options granted to him
        which
        are not exercisable on such date thereupon terminate. Subject to Sections
        5, 10
        and 16 below, any Options that are exercisable on the date of such termination
        which have not been exercised within [90 days of such termination [for ISOs]
        OR
        180 days of such termination [for NQs to employees] OR the fifth anniversary
        of
        this Option Agreement [for NQs to consultants]] shall expire and be of no
        force
        or effect.

       

      5.  Retirement,
        Disability or Death.
        If
        Optionee's [employment/consulting arrangement/directorship] with the Company
        is
        terminated by his retirement, disability or death, all Options hereunder
        exercisable at the date of such retirement, disability or death shall be
        thereafter exercisable by Optionee, his executor or administrator, or the
        person
        or persons to whom his rights under this Option Agreement shall pass by will
        or
        by the laws of descent and distribution, as the case may be, for a period
        of
        three (3) years from the date of Optionee's retirement, disability or death
        unless this Option Agreement should earlier terminate in accordance with
        its
        other terms. Optionee shall be deemed to be disabled if, in the option of
        a
        physician selected by the Committee, he is incapable of performing services
        for
        the Company by reason of any medically determinable physical or mental
        impairment which can be expected to result in death or to be of long, continued
        and indefinite duration. Retirement means Optionee has: (1) reached age 65
        and
        completed five (5) years of service with the Company; (2) with the consent
        of
        the Committee, completed five (5) years of service with the Company prior
        to age
        65 but after reaching age 60; or (3) in such other circumstances as may be
        determined by the Committee in its sole discretion and judgment. Such
        determination of the Committee shall be final and binding on the Company,
        the
        Optionee, and his heirs or representatives.

       

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

       

      6.  Transferability.
        This
        Option Agreement shall not be transferable by Optionee otherwise than by
        Optionee's will or by the laws of descent and distribution. During the lifetime
        of Optionee, the Options shall be exercisable only by Optionee. Any heir
        or
        legatee of Optionee shall take rights herein granted subject to the terms
        and
        conditions hereof. No such transfer of this Option Agreement to heirs or
        legatees of Optionee shall be effective to bind the Company unless the Company
        shall have been furnished with written notice thereof and a copy of such
        evidence as the Committee may deem necessary to establish the validity of
        the
        transfer and the acceptance by the transferee or transferees of the terms
        and
        conditions hereof.

       

      7.  No
        Rights as Stockholder.
        Optionee shall have no rights as a stockholder with respect to any shares
        of
        Common Stock covered by this Option Agreement until the date of issuance
        of a
        certificate for shares of Common Stock purchased pursuant to this Option
        Agreement. Until such time, Optionee shall not be entitled to dividends or
        to
        vote at meetings of the stockholders of the Company. Except as provided in
        Section 9 hereof, no adjustment shall be made for dividends (ordinary or
        extraordinary, whether in cash or securities or other property) paid or
        distributions or other rights granted in respect of any share of Common Stock
        for which the record date for such payment, distribution or grant is prior
        to
        the date upon which the Optionee shall have been issued share certificates,
        as
        provided hereinabove.

       

      8.  Extraordinary
        Corporate Transactions.
        If the
        Company recapitalizes or otherwise changes its capital structure, or merges,
        consolidates, sells all of its assets or dissolves (each of the foregoing
        a
        "Fundamental Change"), then thereafter upon any exercise of Options theretofore
        granted, the Optionee shall be entitled to purchase, in lieu of the number
        of
        shares of Common Stock as to which Options shall then be exercisable, the
        number
        and class of shares of stock and securities to which the Optionee would have
        been entitled pursuant to the terms of the Fundamental Change if, immediately
        prior to such Fundamental Change, the Optionee had been the holder of record
        of
        the number of shares of Common Stock as to which such Options is then
        exercisable.

       

      9.  Changes
        in Capital Structure.
        The
        existence of outstanding Options shall not affect in any way the right or
        power
        of the Company or its shareholders to make or authorize any or all adjustments,
        recapitalizations, reorganizations or other changes in the Company's capital
        structure or its business, or any merger or consolidation of the Company,
        or any
        issuance of Common Stock or subscription rights thereto, or any issuance
        of
        bonds, debentures, preferred or prior preference stock ahead of or affecting
        the
        Common Stock or the rights thereof, or the dissolution or liquidation of
        the
        Company, or any sale or transfer of all or any part of its assets or business,
        or any other corporate act or proceedings, whether of a similar character
        or
        otherwise. If the outstanding shares of Common Stock of the Company shall
        at any
        time be changed or exchanged by declaration of a stock dividend, stock split,
        combination of shares, or recapitalization, then the number and kind of shares
        subject to the Plan or subject to any Options theretofore granted, and the
        Option Price and the prices at which portions of the Options may be exercisable
        on an accelerated basis as set forth in Section 2, shall be appropriately
        and
        equitably adjusted so as to maintain the proportionate number of shares without
        changing the aggregate Option Price.

       

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

       

      10.  Change
        of Control.
        In the
        event that there is a proposed Change in Control (as defined in the Plan),
        the
        Options shall become immediately exercisable notwithstanding the provisions
        of
        Section 2. Optionee shall be given reasonable notice of such Change of Control
        Event and shall have a period of at least thirty (30) days thereafter to
        exercise the Options.

       

      11.  Compliance
        With Securities Laws.
        Upon
        the acquisition of any shares pursuant to the exercise of the Options herein
        granted, Optionee (or any person acting under Section 6) will enter into
        such
        written representations, warranties and agreements as the Company may reasonably
        request in order to comply with applicable securities laws or with this Option
        Agreement.

       

      12.  Compliance
        With Laws.
        Notwithstanding any of the other provisions hereof, Optionee agrees that
        he or
        she will not exercise the Options granted hereby, and that the Company will
        not
        be obligated to issue any shares pursuant to this Option Agreement, if the
        exercise of the Options or the issuance of such shares of Common Stock would
        constitute a violation by the Optionee or by the Company of any provision
        of any
        law or regulation of any governmental authority.

       

      13.  Withholding
        of Tax.
        To the
        extent that the exercise of the Options or the disposition of shares of Common
        Stock acquired by exercise of Options results in compensation income to the
        Optionee for federal or state income tax purposes, the Optionee shall pay
        to the
        Company at the time of such exercise or disposition (or such other time as
        the
        law permits if the Optionee is subject to Section 16(b) of the Exchange Act)
        such amount of money as the Company may require to meet its obligation under
        applicable tax laws or regulations; and, if the Optionee fails to do so,
        the
        Company is authorized to withhold from any cash remuneration then or thereafter
        payable to the Optionee, any tax required to be withheld by reason of such
        resulting compensation income or Company may otherwise refuse to issue or
        transfer any shares otherwise required to be issued or transferred pursuant
        to
        the terms hereof.

       

      14.  Resolution
        of Disputes.
        As a
        condition of the granting of the Options hereby, the Optionee and his heirs
        and
        successors agree that any dispute or disagreement which may arise hereunder
        shall be determined by the Committee in its sole discretion and judgment,
        and
        that any such determination and any interpretation by the Committee of the
        terms
        of this Option Agreement shall be final and shall be binding and conclusive,
        for
        all purposes, upon the Company, Optionee, his heirs and personal
        representatives.

       

      15.  Legends
        on Certificate.
        The
        certificates representing the shares of Common Stock purchased by exercise
        of
        Options will be stamped or otherwise imprinted with legends in such form
        as the
        Company or its counsel may require with respect to any applicable restrictions
        on sale or transfer and the stock transfer records of the Company will reflect
        stop-transfer instructions with respect to such shares.

       

      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

       

      16.  Forfeiture.
        If
        [Optionee's employment or consulting arrangement is terminated For Cause
        OR
        Optionee is removed as a director For Cause] (as defined below), Optionee
        agrees
        that (i) all unexercised Options shall terminate, (ii) the Company shall
        have
        the right to repurchase any or all shares of Common Stock received upon the
        exercise of Options and which were then held by Optionee for an amount equal
        to
        the Option Price times the number of shares of Common Stock so repurchased
        and
        (iii) the Optionee shall pay to the Company the amount by which the proceeds
        from any sale of the Common Stock received upon exercise of Options exceeded
        the
        Option Price of such Common Stock sold. "For Cause" shall mean (i) gross
        disregard of the Company's best interest, (ii) misappropriation or embezzlement
        of corporate funds or other property (iii) conviction of a felony involving
        moral turpitude or which in the opinion of the Committee brings Optionee
        into
        disrepute or causes harm to the Company's business, customer relations,
        financial condition or prospects, or (iv) violation of any statutory or common
        law duty of loyalty to the Company.

       

      17.  Notices.
        Every
        notice hereunder shall be in writing and shall be given by registered or
        certified mail. All notices of the exercise of any Options hereunder shall
        be
        directed to AeroGrow International, Inc., 900 28th Street, Suite 201, Boulder,
        Colorado 80303, Attention: Secretary. Any notice given by the Company to
        Optionee directed to him at his address on file with the Company shall be
        effective to bind him and any other person who shall acquire rights hereunder.
        The Company shall be under no obligation whatsoever to advise Optionee of
        the
        existence, maturity or termination of any of Optionee's rights hereunder
        and
        Optionee shall be deemed to have familiarized him or herself with all matters
        contained herein and in the Plan which may affect any of Optionee's rights
        or
        privileges hereunder.

       

      18.  Construction
        and Interpretation.
        Whenever the term "Optionee" is used herein under circumstances applicable
        to
        any other person or persons to whom this award, in accordance with the
        provisions of Section 6 hereof, may be transferred, the word "Optionee" shall
        be
        deemed to include such person or persons. References to the masculine gender
        herein also include the feminine gender for all purposes.

       

      19.  Option
        Agreement Subject to Plan.
        This
        Option Agreement is subject to the Plan. The terms and provisions of the
        Plan
        (including any subsequent amendments thereto) are hereby incorporated herein
        by
        reference thereto. In the event of a conflict between any term or provision
        contained herein and a term or provision of the Plan, the applicable terms
        and
        provisions of the Plan will govern and prevail. All definitions of words
        and
        terms contained in the Plan shall be applicable to this Option
        Agreement.

       

      20.  Optionee's
        Relationship.
        Any
        questions as to whether and when there has been a termination of Optionee's
        employment, directorship or consulting arrangement, and the cause of such
        termination, shall be determined by the Committee and its determination shall
        be
        final. Nothing contained herein shall be construed as conferring upon the
        Optionee the right to continue in the employ of the Company, nor shall anything
        contained herein be construed or interpreted to limit the "employment at
        will"
        relationship between the Optionee and the Company.

       

      21.  Binding
        Effect.
        This
        Option Agreement shall be binding upon and inure to the benefit of any
        successors to the Company and all persons lawfully claiming under
        Optionee.

       

      22.  Governing
        Law.
        This
        Option Agreement shall be construed in accordance with the laws of the State
        of
        Colorado and the Code.

       

      
        
          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Option Agreement on the day
        and
        year first indicated above.

       

      
        
          
             

            
              	 	 	AEROGROW
                      INTERNATIONAL, INC.
	 	 	 	 
	 	 	
                      By:

                    	 

                      

                    
	
                    	 	
                      Name:

                    	 

                      

                    
	 	 	
                      Title:

                    	 

                      

                    
	 	 	 	 
	 	 	OPTIONEE	 
	 	 	 	 
	 	 	Signature:	 

                      

                    
	 	 	
                      Name:

                    	
                       

                      
                        

                         

                    

            

          

           

        

         

      

      
        
          
          

        

        -
          6
          -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]