Document:

CENTERSTAGING
      CORP. 

     

    OPTION
      CERTIFICATE

    (Non-Qualified
      Stock Option)

     

    

    THIS
      IS
      TO CERTIFY that CenterStaging Corp., a Delaware corporation (the “Company”),
      has
      granted to the officer named below (“Optionee”)
      a
      non-qualified stock option (the “Option”)
      to
      purchase shares of the Company’s common stock (the “Common
      Stock”)
      upon
      the terms and conditions set forth below and in the attached Stock Option
      Agreement:

     

    
      	
              Name
                of Optionee:

            	
              Paul
                Schmidman

            
	 	 
	
              Number
                of Option Shares:

            	
              3,000,000

            
	 	 
	
              Exercise
                Price:

            	
              $1.25
                per share

            
	 	 
	
              Date
                of Grant:

            	
              March
                13, 2007

            
	 	 
	
              Option
                Expiration Date:

            	
              March
                12, 2017

            

    

    

    Exercise
      Schedule:
      The
      Option shall become exercisable (“vest”) as follows:

     

    
      	
              Date

            	
              Number
                of Shares

            
	
              March
                13, 2007

            	
              1,500,000

            
	
              March
                13, 2008

            	
              1,500,000

            

    

    

    IN
      WITNESS WHEREOF, the Company has granted to Optionee the Option as of the Date
      of Grant set forth above.

    

    
      	
              OPTIONEE

               

               

              /s/
                Paul Schmidman    

              Paul
                Schmidman

            	
              CENTERSTAGING
                CORP.

               

               

              By /s/
                Howard Livingston 

              Howard
                Livingston, Chief Financial Officer

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    STOCK
      OPTION AGREEMENT

    (Non-Qualified
      Stock Option)

     

    

    This
      STOCK OPTION AGREEMENT (this “Agreement”)
      is
      made and entered into as of the Date of Grant set forth in the Option
      Certificate to which this Agreement is attached (the “Certificate”)
      by and
      between CenterStaging Corp., a Delaware corporation (the “Company”),
      and
      the optionee (the “Optionee”)
      named
      in the Certificate. 

     

    It
      is
      intended that the option not
      qualify
      as an “incentive stock option” within the meaning of Section 422 of the Internal
      Revenue Code of 1986, as amended from time to time (the “Code”).
      

     

    The
      Company and Optionee agree as follows:

     

    1. Grant
      of Option.
      The
      Company hereby grants to Optionee, upon the terms and subject to the conditions
      set forth in this Agreement, an Option (the “Option”)
      to
      purchase all or any portion of that number of shares of Common Stock set forth
      in the Certificate (the “Option
      Shares”),
      at
      the exercise price set forth in the Certificate (the “Exercise
      Price”).

     

    2. Vesting

     

    2.1. The
      Option shall “vest” and become exercisable in installments upon and after the
      dates set forth under the caption “Exercise
      Schedule”
in
      the
      Certificate. The installments shall be cumulative; i.e.,
      the
      Option may be exercised, as to any or all Shares covered by an installment,
      at
      any time or times after the installment first becomes exercisable and until
      expiration or termination of the Option.

     

    2.2. No
      vesting shall occur after the Employment Termination Date (as defined in Section
      4.2 of this Agreement).

     

    2.3. Notwithstanding
      anything to the contrary contained in this Option Agreement, the Option may
      not
      be exercised, in whole or in part, unless and until any then-applicable
      requirements of all state and federal laws and regulatory agencies shall have
      been fully complied with to the satisfaction of the Company and its
      counsel.

     

    3. Exercise
      of the Option.
      

     

    3.1. The
      Option may be exercised, in whole or in part, only by delivery to the Company
      of:

     

    3.1.1 written
      notice of the exercise of the Option in form identical to Exhibit
      “A”
      attached
      to this Agreement stating the number of Option Shares being purchased (the
      “Purchased
      Shares”);
      

     

    3.1.2 payment
      of the Exercise Price in cash, check or wire transfer; and 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.1.3 if
      the
      issuance of the Purchased Shares has not been registered under the Securities
      Act of 1933, as amended (the “Securities
      Act”),
      an
      investment letter, in form and substance satisfactory to the Company, executed
      by the Optionee containing such representations, warranties and agreements
      as
      the Company may request to permit the Company to issue the Purchased Shares
      without registration under the Securities Act.

     

    3.2. Following
      receipt of the exercise notice, any other applicable documents and the payment
      referred to above, the Company shall, within 30 days, cause certificates
      representing the Purchased Shares to be delivered to Optionee either at
      Optionee’s address set forth in the records of the Company or at such other
      address as Optionee may designate in writing to the Company; provided, however,
      that
      the Company shall not be obligated to issue a fraction or fractions of a share
      otherwise issuable upon exercise of the Option, and may pay to Optionee, in
      cash
      or cash equivalent, the fair market value of any such fraction or fractions
      of a
      share as of the date of exercise.

     

    3.3. If
      requested by the Company, Optionee shall also deliver this Agreement to the
      Secretary of the Company, who shall endorse hereon a notation of the exercise
      and return this Agreement to Optionee. The date of exercise of an Option that
      is
      validly exercised shall be deemed to be the date on which there shall have
      been
      delivered to the Company the instruments referred to in this Section 3.

     

    3.4. As
      a
      condition to exercise of this Option, the Company may require Optionee to pay
      over to the Company all applicable federal, state and local taxes which the
      Company is required to withhold with respect to the exercise of this Option.
      At
      the discretion of the Company and upon the request of Optionee, the minimum
      statutory withholding tax requirements may be satisfied by the withholding
      of
      Shares otherwise issuable to Optionee upon the exercise of this
      Option.

     

    4. Termination
      of Option

     

    4.1. The
      Option shall terminate and expire upon the earliest to occur of: (i) the Option
      Expiration Date set forth in the Option Certificate; (ii) the Termination Date;
      or (iii) a Corporate Transaction unless specified otherwise by the Company
      in
      accordance with Section 6 of this Agreement. Following the Employment
      Termination Date, and prior to the Termination Date, the Option may be exercised
      only to the extent vested as of the date of the Employment Termination
      Date.

     

    4.2. For
      purposes of this Agreement:

     

    4.2.1 “Employment
      Termination Date”
shall
      mean the date Optionee is no longer a director, employee or consultant to the
      Company and its subsidiaries (the “Company
      Group”).
      As
      long as Optionee is at least one of employee, director or consultant, the
      Employment Termination Date shall not be deemed to have occurred. For example,
      if Optionee is an employee and a director, the termination of employment as
      an
      employee while remaining a director shall not establish an Employment
      Termination Date (which would only be established if and when Optionee ceases
      to
      be a director). Optionee’s employment shall not be deemed to terminate by reason
      of a transfer among members of the Company Group, or sick leave, military leave
      or other leave of absence approved by the Company, if the period of any such
      leave does not exceed 90 days or, if longer, if Optionee’s right to reemployment
      by the Company Group is guaranteed either contractually or by
      statute.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.2.2 “Termination
      Date”
shall
      be: (a) the date 90 days following the Employment Termination Date unless
      Optionee’s employment is terminated as a result of the death or disability of
      Optionee or For Cause; or (b) upon the Employment Termination Date if Optionee’s
      employment is terminated For Cause; or (c) one year following the Employment
      Termination Date if the Employment Termination Date occurs as a result of the
      death or disability of Optionee. 

     

    4.2.3 “For
      Cause”
shall
      mean Optionee’s loss of employment, directorship or consulting engagement by any
      member of the Company Group due to Optionee’s (a) willful breach or habitual
      neglect or continued incapacity to perform Optionee’s required duties, (b)
      commission of acts of dishonesty, fraud, misrepresentation or other acts of
      moral turpitude in connection with Optionee’s services to any member of the
      Company Group or which in the determination of the Company would prevent the
      effective performance of Optionee’s duties or (c) termination for cause under
      any employment or consulting agreement between the Company and Optionee (as
      For
      Cause is defined therein).

     

    5. Changes
      in Capital Structure

     

    5.1. If
      outstanding shares of the Common Stock shall be subdivided into a greater number
      of shares, or a dividend in Common Stock shall be paid in respect of the Common
      Stock, the Exercise Price of the Option in effect immediately prior to such
      subdivision or at the record date of such dividend shall, simultaneously with
      the effectiveness of such subdivision or immediately after the record date
      of
      such dividend, be proportionately reduced, and conversely, if outstanding shares
      of the Common Stock of the Company shall be combined into a smaller number
      of
      shares, the Exercise Price of the Option in effect immediately prior to such
      combination shall, simultaneously with the effectiveness of such combination,
      be
      proportionately increased.

     

    5.2. When
      any
      adjustment is required to be made in the Exercise Price, the number of Option
      Shares purchasable upon the exercise of the Option shall be adjusted to that
      number of Option Shares determined by dividing (a) an amount equal to the
      number of Option Shares purchasable upon the exercise of the Option immediately
      prior to such adjustment, multiplied by the Exercise Price in effect immediately
      prior to such adjustment, by (b) the Exercise Price in effect immediately
      after such adjustment.

     

    5.3. Subject
      to Section 6 of this Agreement, following any capital reorganization, any
      reclassification of the Common Stock (other than recapitalization described
      in
      Section 5.1
      of this
      Agreement), or the consolidation or merger of the Company, upon exercise of
      the
      Option the Optionee shall be entitled to receive the securities or property
      (including cash) that the Optionee would have received had the Optionee
      exercised the Option immediately prior to such reorganization, reclassification,
      consolidation or merger, and in any such case appropriate adjustments shall
      be
      made in the application of the provisions set forth in this Agreement with
      respect to the rights and interests thereafter of the Optionee, to the end
      that
      the provisions set forth in this Agreement (including the specified changes
      and
      other adjustments to the Exercise Price) shall thereafter be applicable in
      relation to any securities or other property thereafter issuable upon exercise
      of the Option.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6. Corporate
      Transactions.
      In the
      event of a Corporate Transaction, the Option shall terminate immediately prior
      thereto unless the Company, in its sole discretion, either provides that the
      Option shall not terminate or provides that the Option shall be assumed by
      an
      applicable successor corporation or entity or any affiliate of the successor
      corporation or entity. If the Option shall terminate upon a Corporate
      Transaction, the Option shall be exercisable in full immediately prior to the
      Corporate Transaction without regard to the vesting provisions under Section
      2
      of this Agreement. For purposes of this Agreement, a “Corporate
      Transaction”
shall
      mean (a) a liquidation or dissolution of the Company; (b) a merger or
      consolidation of the Company with or into another corporation (other than a
      merger with a wholly owned subsidiary); or (c) a sale of all or
      substantially all of the assets of the Company in a single transaction or a
      series of related transactions. 

     

    7. Restrictions
      on Sale of Purchased Shares.
      Optionee understands that: (a) unless the issuance of the Purchased Shares
      to
      Optionee upon exercise of the Option is registered under the Securities Act
      of
      1933, the Purchased Shares will be “restricted
      securities”
within
      the meaning of Rule 144 under the Securities Act; (b) the Purchased Shares
      may
      not be sold, transferred or assigned by the Optionee except pursuant to an
      effective registration statement under the Securities Act or an exemption from
      registration under the Securities Act; and (c) the Company is under no
      obligation to file a registration statement under the Securities Act covering
      the Option Shares. Optionee agrees that any certificates evidencing Purchased
      Shares may bear a legend indicating that their transferability is restricted
      in
      accordance with applicable state and federal securities laws.

     

    8. General
      Provisions

     

    8.1. Further
      Assurances.
      Optionee shall promptly take all actions and execute all documents requested
      by
      the Company that the Company deems to be reasonably necessary to effectuate
      the
      term and intent of this Agreement.

     

    8.2. Notices.
      All
      notices, requests, demands and other communications (collectively, “Notices”)
      given
      pursuant to this Agreement shall be in writing, and shall be delivered by
      personal service, courier, or by United States first class, registered or
      certified mail, postage prepaid, addressed to the Optionee at his address on
      the
      records of the Company or to the Company at its principal executive offices.
      Any
      Notice, other than a Notice sent by registered or certified mail, shall be
      effective when received; a Notice sent by registered or certified mail, postage
      prepaid, return receipt requested, shall be effective on the earlier of when
      received or the third day following deposit in the United States mails. Any
      party may from time to time change its address for further Notices hereunder
      by
      giving notice to the other party in the manner prescribed in this
      Section.

     

    8.3. Failure
      to Enforce Not a Waiver.
      The
      failure of the Company to enforce at any time any provision of this Agreement
      shall in no way be construed to be a waiver of such provision or of any other
      provision hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.4. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the law of
      the
      State of California applicable to contracts made in, and to be performed within,
      that State.

     

    8.5. Transfer
      of Rights Under this Agreement.
      The
      Company may at any time transfer and assign its rights and delegate its
      obligations under this Agreement to any other person, corporation, firm or
      entity, with or without consideration.

     

    8.6. Option
      Non-transferable.
      Optionee may not sell, transfer, assign or otherwise dispose of the Option
      except by will or the laws of descent and distribution, and only Optionee or
      his
      or her legal representative or guardian may exercise the Option during
      Optionee’s lifetime.

     

    8.7. No
      Right to Employment.
      Nothing
      in this Option shall interfere with or limit in any way the right of the Company
      or other member of the Company Group to terminate Optionee’s employment,
      consulting or advising at any time, nor confer upon Optionee any right to
      continue in the employ of, consult with or advise the Company or other member
      of
      the Company Group.

     

    8.8. Successors
      and Assigns.
      Except
      to the extent specifically limited by the terms and provisions of this
      Agreement, this Agreement shall be binding upon and inure to the benefit of
      the
      parties hereto and their respective successors, assigns, heirs and personal
      representatives.

     

    8.9. Miscellaneous.
      Titles
      and captions contained in this Agreement are inserted for convenience of
      reference only and do not constitute a part of this Agreement for any other
      purpose. Except as specifically provided herein, neither this Agreement nor
      any
      right pursuant hereto or interest herein shall be assignable by any of the
      parties hereto without the prior written consent of the other party
      hereto.

     

    8.10. Tax
      Treatment.
      Optionee acknowledges that the tax treatment of the Option, the Option Shares
      or
      any events or transactions with respect thereto may be dependent upon various
      factors or events that are not determined by this Agreement. The Company makes
      no representations with respect to and hereby disclaims all responsibility
      as to
      such tax treatment.

     

    The
      signature page of this Agreement consists of the last page of the
      Certificate.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      “A”

     

    NOTICE
      OF EXERCISE

     

    (To
      be
      signed only upon exercise of the Option)

    

    TO: CenterStaging
      Corp. 

     

    

    The
      undersigned, the holder of the enclosed Stock Option Agreement (Non-Qualified
      Stock Option), hereby irrevocably elects to exercise the purchase right
      represented by the Option and to purchase thereunder ______* shares of Common
      Stock of CenterStaging Corp. (the “Company”)
      and
      herewith encloses payment of $_________ in full payment of the purchase price
      of
      such shares being purchased.

     

     

    
      	
              Dated:
                

            	
               

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

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              Social
                Security Number

            

    

     

    
      	*	
              Insert
                here the number of shares being exercised, making all adjustments
                for
                stock splits, stock dividends or other additional Common Stock of
                the
                Company, other securities or property which, pursuant to the adjustment
                provisions of Section 5 of the Option, may be deliverable upon
                exercise.NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL,
      IN A
      GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
      WITH
      A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
      THE
      SECURITIES.

     

    THIS
      WARRANT MAY NOT, IN ANY EVENT, BE TRANSFERRED TO ANY PERSON OR ENTITY THAT
      IS
      NOT AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(c)
OF
      REGULATION D OF THE SECURITIES ACT OF 1933, AS AMENDED.

     

    

    Void
      after 5:00 p.m., Mountain time, on March ___, 2012

    

    COMMON
      STOCK PURCHASE WARRANT

    

    OF

    

    AEROGROW
      INTERNATIONAL, INC.

    

     

    AEROGROW
      INTERNATIONAL, INC., a Nevada corporation (the “Company”), hereby certifies
      that, for value received, ______________ (the “Warrant Holder” and collectively
      with all other holders of Warrants issued pursuant to the Securities Purchase
      Agreement defined below, the “Warrant Holders”) is the owner of this Warrant to
      purchase, at any time during the period commencing on the Commencement Date
      (as
      defined in Section 2.1)
      and
      ending on the Expiration Date (as defined Section 2.4),
      up to
      __________ fully paid and non-assessable shares of common stock, par value
      $0.001 per share, of the Company (“Common Stock”) at a per share purchase price
      equal to the Exercise Price (as defined in Section 1.2)
      in
      lawful money of the United States of America. This Warrant is part of the duly
      authorized issuance of up to ____________ Units, each Unit consisting of one
      share of Common Stock and a warrant to purchase one share of Common Stock,
      issued or to be issued by the Company as part of a certain private offering
      (“Offering”) pursuant a Securities Purchase Agreement dated March 12, 2007
      between the Buyers (as defined therein) and the Company (the “Securities
      Purchase Agreement”). The warrants issued pursuant to the Securities Purchase
      Agreement are referred to herein as the “Warrants." 

     

    
      	
            	1.	
              WARRANT;
                EXERCISE PRICE.

            

    

     

    1.1    Each
      share of Common Stock to which the Warrant Holder is entitled to purchase
      pursuant to this Warrant is referred to herein individually as a “Warrant Share”
and severally, the “Warrant Shares.”

     

    1.2    The
      purchase price payable upon exercise (“Exercise Price”) shall be $7.50 per
      share, subject to adjustment as provided in Section
      8. 

     

    
      	
            	2.	
              EXERCISE
                OF WARRANT; EXPIRATION DATE.
                

            

    

     

    2.1    Exercise.
      This
      Warrant is exercisable during the period commencing on March ___, 2007
      (“Commencement Date”) and ending on the Expiration Date as provided in
Section
      2.4
      below,
      in whole, or from time to time, in part, at the option of the Warrant Holder,
      upon surrender of this Warrant to the Company, or such other person as the
      Company may designate, together with a duly completed and executed form of
      exercise attached hereto (indicating exercise by payment of the Exercise Price)
      and payment of an amount equal to the then applicable Exercise Price multiplied
      by the number of Warrant Shares then being purchased upon such exercise. The
      payment of the Exercise Price shall be in cash or by certified check or official
      bank check, payable to the order of the Company. This warrant is exercisable
      in
      whole share increments only.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2    Effectiveness.
      Each
      exercise of a Warrant shall be deemed to have been effected immediately prior
      to
      the close of business on the day on which such Warrant shall have been
      surrendered to the Company as provided in Section
      2.1.
      At such
      time, the person or persons in whose name or names any certificates for Warrant
      Shares shall be issuable upon such exercise as provided in Section
      2.3
      below
      shall be deemed to have become the holder or holders of record of the Warrant
      Shares represented by such certificates.

     

    2.3    Issuance.
      As soon
      as practicable after the exercise of this Warrant, in full or in part, the
      Company, at its expense, will use its best efforts to cause to be issued in
      the
      name of, and delivered to, the Warrant Holder, or, subject to the terms and
      conditions hereof, to such other individual or entity as such Warrant Holder
      may
      direct: 

     

    (a)    
      a
      certificate or certificates for the number of full Warrant Shares to which
      such
      Warrant Holder shall be entitled upon such exercise; and

     

    (b)    
      in
      case
      such exercise is in part only, a new Warrant (dated the date hereof) of like
      tenor, stating on the face or faces thereof the number of shares currently
      stated on the face of this Warrant minus the number of such shares purchased
      by
      the Warrant Holder upon such exercise as provided in Section
      2.1
      (prior
      to any adjustments made thereto pursuant to the provisions of this
      Warrant).

     

    The
      Company shall not be required upon the exercise of this Warrant to issue any
      fractional shares, as this Warrant shall be exercisable in whole share
      increments only.

     

    2.4    Expiration
      Date.
      The
      term “Expiration Date” shall mean 5:00 p.m., Mountain time, on March ___, 2012,
      or if such date shall in the State of Colorado be a holiday or a day on which
      banks are authorized to close, then 5:00 p.m., Mountain time the next following
      day which in the State of Colorado is not a holiday or a day on which banks
      are
      authorized to close.

    

    2.5    Mandatory
      Exercise of Warrant.
      The
      Company shall have the right to require the Warrant Holder to exercise this
      Warrant in accordance with the following terms:

    

    (a)    In
      the
event:
      (i) the Common Stock is quoted on the NASDAQ Capital Market and (ii) for a
      period of 20 consecutive trading days, the closing bid price of the Common
      Stock
      has been above $10.00 per share and the daily trading volume of the Common
      Stock
      as reported by NASDAQ has been at least 50,000 shares, in each case on each
      of
      the 20 consecutive trading days, the Company may, in its sole discretion,
      require the Warrant Holder to exercise the Warrant upon written notice delivered
      to the Warrant Holder (such requirement, a “Mandatory Exercise”). 

    

    (b)    If
      the
      Company requires a Mandatory Exercise, the Company shall provide notice to
      the
      Warrant Holder as provided in Section 18 of this Warrant (a “Mandatory Exercise
      Notice”). Upon receipt of the Mandatory Exercise Notice (the “Date of Receipt”),
      the holder shall, within five business days of the Date of Receipt, exercise
      this warrant for such number of shares (up to the total number of shares for
      which this Warrant is exercisable) as the Warrant Holder shall desire upon
      surrender of this Warrant to the Company, or such other person as the Company
      may designate, together with a duly completed and executed form of exercise
      attached hereto (indicating exercise by payment of the Exercise Price) and
      payment of an amount equal to the then applicable Exercise Price multiplied
      by
      the number of Warrant Shares then being purchased upon such exercise. The
      payment of the Exercise Price shall be in cash or by certified check or official
      bank check, payable to the order of the Company. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c)    If
      a
      Warrant Holder shall fail to exercise this Warrant within thirty calendar days
      of the Date of Receipt, then all rights under this Warrant shall be
      automatically extinguished and of no further force or effect. 

    

    
      	
            	3.	
              REGISTRATION
                AND TRANSFER ON COMPANY BOOKS.
                

            

    

     

    3.1    The
      Company (or an agent of the Company) will maintain a register containing the
      names and addresses of the Warrant Holders. Any Warrant Holder may change its,
      his or her address as shown on the warrant register by written notice to the
      Company requesting such change. 

     

    3.2    The
      Company shall register upon its books any transfer of a Warrant upon surrender
      of same as provided in Section
      5.
      

     

    4.    RESERVATION
      OF SHARES.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery upon the exercise of this Warrant, such Warrant Shares and other stock,
      securities and property, as from time to time shall be issuable upon the
      exercise of this Warrant. The Company covenants that all shares of Warrant
      Shares so issuable when issued will be duly and validly issued and fully paid
      and non-assessable. 

     

    5.    EXCHANGE,
      LOSS OR MUTILATION OF WARRANT.
      This
      Warrant is exchangeable, without expense, at the option of the Warrant Holder,
      upon presentation and surrender hereof to the Company for other warrants of
      different denominations entitling the holder thereof to purchase in the
      aggregate the same number of shares of Common Stock purchasable hereunder on
      the
      same terms and conditions as provided herein. Subject to the provisions of
      Section
      6,
      if
      applicable, this Warrant may be divided or combined with other warrants which
      carry the same rights upon presentation of such warrants at the Company’s office
      together with a written notice specifying the names and denominations in which
      new warrants are to be issued and signed by the Warrant Holder hereof. The
      term
“Warrant” as used herein includes any warrants into which this Warrant may be
      divided or exchanged. Upon receipt by the Company of reasonable evidence of
      the
      ownership and the loss, theft, destruction or mutilation of this Warrant and,
      in
      the case of loss, theft or destruction, receipt of indemnity reasonably
      satisfactory to the Company, or, in the case of mutilation, upon surrender
      and
      cancellation of the mutilated Warrant, the Company shall execute and deliver
      in
      lieu thereof a new Warrant of like tenor and date representing an equal number
      of shares of Common Stock. 

     

    6.    LIMITATION
      ON EXERCISE AND SALES.
      

     

    6.1    Each
      Warrant Holder acknowledges that the Warrants and the Warrant Shares have not
      been registered under the Securities Act of 1933, as amended (“the Securities
      Act”) and the rules and regulations thereunder, or any successor legislation,
      and agrees not to sell, pledge, distribute, offer for sale, transfer or
      otherwise dispose of any Warrant, or any Warrant Shares issued upon its
      exercise, in except in compliance with the requirements of Section
      6.2.

     

    6.2    This
      Warrant and the rights granted to the Warrant Holder are transferable only
      to
      Accredited Investors (as defined in Section 502 of the Securities Act) in whole
      or in part, upon surrender of this Warrant, together with a properly executed
      assignment in the form attached hereto, at the office or to the agent of the
      Company; provided,
      however, that
      if
      at the time of the surrender of this Warrant in connection with any exercise,
      transfer or exchange of this Warrant, this Warrant (or, in the case of any
      exercise, the Warrant Shares issuable hereunder), shall not be registered for
      resale under the Securities Act or under applicable state securities or blue
      sky
      laws, then the Company may require, as a condition of allowing such exercise,
      transfer or exchange, (i) a written opinion of counsel, which opinion and
      counsel are acceptable to the Company, to the effect that such exercise,
      transfer or exchange may be made without registration under the Securities
      Act
      or under applicable state securities or blue sky laws, (ii) that any transferee
      of the Warrant execute and deliver to the Company a document containing
      investment representations and warranties substantially similar to those set
      forth in the Securities Purchase Agreement pursuant to which the initial Warrant
      Holder acquired this Warrant, and (iii) prior to exercise of the Warrant, the
      Warrant Holder shall have executed the form of exercise annexed
      hereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    6.3    Certificates
      delivered to the Warrant Holder upon exercise hereof shall be imprinted with
      a
      legend in substantially the following form if such Warrant Shares are not
      registered at the time of exercise: 

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
      THE
      ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY
      ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
      SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
      THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
      MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
      

     

    THIS WARRANT
      MAY NOT, IN ANY EVENT, BE TRANSFERRED TO ANY PERSON OR ENTITY THAT IS NOT AN
      ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(c)
      OF
      REGULATION D OF THE SECURITIES ACT OF 1933, AS AMENDED.

     

     

    7.    REGISTRATION
      RIGHTS OF WARRANT HOLDER.
      The
      initial Warrant Holder (and certain permitted assignees thereof) is entitled
      to
      the benefit of registration rights in respect of Warrant Shares in accordance
      with and subject to the terms and conditions of the Registration Rights
      Agreement executed and delivered by the initial Warrant Holder and the Company.
      

     

    8.    ADJUSTMENT
      OF PURCHASE PRICE AND NUMBER OF SHARES DELIVERABLE.
      The
      Exercise Price and the number of Warrant Shares purchasable pursuant to each
      Warrant shall be subject to adjustment from time to time as hereinafter set
      forth in this Section
      8: 

     

    (a)    If
      the
      Company shall (i) issue any shares of its Common Stock as a stock dividend
      or
      (ii) subdivide the number of outstanding shares of its Common Stock into a
      greater number of shares, the Exercise Price shall be proportionately reduced
      and the number of Warrant Shares at that time purchasable pursuant to this
      Warrant shall be proportionately increased. If the Company shall reduce the
      number of outstanding shares of Common Stock by combining such shares into
      a
      smaller number of shares, the Exercise Price per Warrant Share shall be
      proportionately increased and the number of Warrant Shares at that time
      purchasable pursuant to this Warrant shall be proportionately decreased. If
      the
      Company shall, at any time during the life of this Warrant, declare a dividend
      payable in cash on its Common Stock and shall at substantially the same time
      offer to its stockholders a right to purchase new Common Stock from the proceeds
      of such dividend or for an amount substantially equal to the dividend, for
      purposes of this Warrant, all Common Stock so issued shall be deemed to have
      been issued as a stock dividend. Any dividend paid or distributed upon the
      Common Stock in stock of any other class of securities convertible into shares
      of Common Stock shall be treated as a dividend paid in Common Stock to the
      extent that shares of Common Stock are issuable upon conversion
      thereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)    If
      the
      Company shall be recapitalized by reclassifying its outstanding Common Stock,
      (other than a change in par value or a subdivision or combination as provided
      in
Section
      8(a)),
      or the
      Company or a successor corporation shall consolidate or merge with or convey
      all
      or substantially all of its or of any successor corporation’s property and
      assets to any other corporation or corporations (any such other corporations
      being included within the meaning of the term “successor corporation”
hereinbefore used), then, as a condition of such recapitalization,
      consolidation, merger or conveyance, lawful and adequate provision shall be
      made
      whereby the Warrant Holder shall thereafter have the right to receive upon
      the
      exercise hereof the kind and amount of shares of stock or other securities
      or
      property which such Warrant Holder would have been entitled to receive if,
      immediately prior to any such reorganization or reclassification, such Warrant
      Holder had held the number of shares of Common Stock which were then purchasable
      upon the exercise of this Warrant. In any such case, appropriate adjustment
      shall be made in the application of the provisions set forth herein with respect
      to the rights and interest thereafter of the Warrant Holder such that the
      provisions set forth in this Section
      8
      (including provisions with respect to adjustment of the Exercise Price and
      number of shares purchasable upon the exercise of this Warrant) shall thereafter
      be applicable, as nearly as may be in relation to any shares of stock or other
      securities or property thereafter deliverable upon the exercise of this
      Warrant.

     

    (c)    If
      the
      Company shall sell all or substantially all of its property or dissolve,
      liquidate, or wind up its affairs, lawful provision shall be made as part of
      the
      terms of any such sale, dissolution, liquidation or winding up, so that the
      holder of this Warrant may thereafter receive upon exercise hereof in lieu
      of
      each Warrant Share that it would have been entitled to receive, the same kind
      and amount of any securities or assets as may be issuable, distributable or
      payable upon any such sale, dissolution, liquidation or winding up with respect
      to each share of Common Stock of the Company, provided,
      however,
      that in
      any case of any such sale or of dissolution, liquidation or winding up, the
      right to exercise this Warrant shall terminate on a date fixed by the Company;
      such date so fixed to be not earlier than 5:00 p.m., Mountain time, on the
      45th
      day next succeeding the date on which notice of such termination of the right
      to
      exercise this Warrant has been given by mail to the registered holder of this
      Warrant at its address as it appears on the books of the Company.

     

    (d)    No
      adjustment in the per share Exercise Price shall be required unless such
      adjustment would require an increase or decrease in the Exercise Price by at
      least $0.01; provided,
      however,
      that
      any adjustments that by reason of this subsection are not required to be made
      shall be carried forward and taken into account in any subsequent adjustment.
      All calculations under this Section
      8
      shall be
      made to the nearest cent or to the nearest 1/100th
      of a
      share, as the case may be.

     

    (e)    The
      Company will not, by amendment of 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 to be observed or
      performed hereunder by the Company but will at all times in good faith assist
      in
      the carrying out of all the provisions of this Section
      8
      and in
      the taking of all such actions as may be necessary or appropriate in order
      to
      protect against impairment of the rights of the Warrant Holder to adjustments
      in
      the Exercise Price.

     

    (f)    Upon
      the
      happening of any event requiring an adjustment of the Exercise Price hereunder,
      the Company shall give written notice thereof to the Warrant Holder stating
      the
      adjusted Exercise Price and the adjusted number of Warrant Shares resulting
      from
      such event and setting forth in reasonable detail the method of calculation
      and
      the facts upon which such calculation is based.

     

    9.    
VOLUNTARY
      ADJUSTMENT BY THE COMPANY.
      The
      Company may, at its option, at any time during the term of this Warrant, reduce
      the then current Exercise Price to any amount deemed appropriate by the Board
      of
      Directors of the Company and/or extend the date of the expiration of this
      Warrant. 

     

    10.    RIGHTS
      OF THE HOLDER.
      The
      Warrant Holder shall not, by virtue hereof, be entitled to any rights of a
      stockholder in the Company, either at law or equity, and the rights of the
      Warrant Holder are limited to those expressed in this Warrant and are not
      enforceable against the Company except to the extent set forth herein.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    11.    NOTICES
      OF RECORD DATE.
      In
      case: (a) the Company shall take a record of the holders of its Common Stock
      (or
      other stock or securities at the time deliverable upon the exercise of this
      Warrant) for the purpose of entitling or enabling them to receive any dividend
      or other distribution, or to receive any right to subscribe for or purchase
      any
      shares of any class or any other securities, or to receive any other right,
      or
      (b) of any capital reorganization of the Company, any reclassification of the
      capital stock of the Company, any consolidation or merger of the Company with
      or
      into another corporation (other than a consolidation or merger in which the
      Company is the surviving entity), or any transfer of all or substantially all
      of
      the assets of the Company, or (c) of the voluntary or involuntary dissolution,
      liquidation or winding-up of the Company, then, and in each such case, the
      Company will mail or cause to be mailed to the Warrant Holder a notice
      specifying, as the case may be: (i) the date on which a record is to be taken
      for the purpose of such dividend, distribution or right, and stating the amount
      and character of such dividend, distribution or right, or (ii) the effective
      date on which such reorganization, reclassification, consolidation, merger,
      transfer, dissolution, liquidation or winding-up is to take place, and the
      time,
      if any is to be fixed, as of which the holders of record of Common Stock (or
      such other stock or securities at the time deliverable upon the exercise of
      this
      Warrant) shall be entitled to exchange their shares of Common Stock (or such
      other stock or securities) for securities or other property deliverable upon
      such reorganization, reclassification, consolidation, merger, transfer,
      dissolution, liquidation or winding-up. Such notice shall be mailed at least
      20
      days prior to the record date or effective date for the event specified in
      such
      notice, provided that the failure to mail such notice shall not affect the
      legality or validity of any such action.

     

    12.    SUCCESSORS.
      The
      rights and obligations of the parties to this Warrant will inure to the benefit
      of and be binding upon the parties hereto and their respective permitted heirs,
      successors, assigns, pledgees, transferees and purchasers. 

     

    13.    CHANGE
      OR WAIVER.
      Any
      term of this Warrant may be changed or waived only by an instrument in writing
      signed by the party against whom enforcement of the change or waiver is sought.
      

     

    14.    HEADINGS.
      The
      headings in this Warrant are for purposes of reference only and shall not limit
      or otherwise affect the meaning of any provision of this Warrant.

     

    15.    GOVERNING
      LAW.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of Colorado as such laws are applied to contracts made and to be fully
      performed entirely within that state between residents of that state
      except
      to the extent the laws of the State of Nevada mandatorily apply because the
      Company is incorporated in the State of Nevada.

     

    16.    JURISDICTION
      AND VENUE.
      The
      Company and the Warrant Holder (i) agree that any legal suit, action or
      proceeding arising out of or relating to this Warrant shall be instituted
      exclusively in the federal courts located in Denver, Colorado, U.S.A., (ii)
      waive any objection to the venue of any such suit, action or proceeding and
      the
      right to assert that such forum is not a convenient forum, and (iii) irrevocably
      consent to the jurisdiction of the federal courts located in Denver, Colorado,
      U.S.A. in any such suit, action or proceeding, and the Company further agrees
      to
      accept and acknowledge service or any and all process that may be served in
      any
      such suit, action or proceeding in the federal courts located in Denver,
      Colorado, U.S.A. in person or by certified mail addressed as provided in
      Section 18.

     

    17.    AMENDMENT
      AND WAIVER.
      Any
      amendment or waiver of any of the terms or conditions of the Warrants by the
      Company must be in writing and must be duly executed by the Company or on its
      behalf. Any of the terms or conditions of the Warrants may be amended or waived
      by the Warrant Holders only upon the written consent of Warrant Holders
      representing 51% of the Warrants then outstanding. Any such amendment or waiver
      shall be binding on all Warrant Holders whether they consented or not or whether
      their consent was solicited or not. The failure of a party to exercise any
      of
      its rights hereunder or to insist upon strict adherence to any term or condition
      hereof on any one occasion shall not be construed as a waiver or deprive that
      party of the right thereafter to insist upon strict adherence to the terms
      and
      conditions of this Warrant at a later date. Further, no waiver of any of the
      terms and conditions of this Warrant shall be deemed to or shall constitute
      a
      waiver of any other term of condition hereof (whether or not
      similar).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    18.    MAILING
      OF NOTICES, ETC.
      All
      notices and other communications under this Warrant (except payment) shall
      be in
      writing and shall be sufficiently given if delivered to the addressees in
      person, by Federal Express or similar overnight courier service, or if mailed,
      postage prepaid, by certified mail, return receipt requested, as follows:

     

    
      	 	
              Registered
                

              Holder

            	
              :

            	
               

              To
                his or her last known address as indicated on the Company’s books and
                records.

            

    

    

    
      	 	
              The

               Company

            	
              :

            	
              To
                the Company’s Chief Executive Officer at the address of the Company’s
                principal office as set forth in the last filing by the Company with
                the
                Securities and Exchange Commission 

            

    

     

    or
      to
      such other address as any of them, by notice to the others, may designate from
      time to time. Notice shall be deemed given (a) when personally delivered, (b)
      on
      the scheduled delivery date if sent by Federal Express or other overnight
      courier service or (c) the fifth day after sent by certified mail.

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
      authorized officer as of the 12th day of March, 2007.

     

    

    
      	 	 	 
	 	AEROGROW
              INTERNATIONAL, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            
	 	Michael
              Bissonnette, Chief Executive Officer 

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Notice
      of Exercise

    To
      be
      Executed by the Warrant Holder

    in
      Order
      to Exercise Warrant

     

    The
      undersigned Warrant Holder hereby irrevocably elects to exercise the attached
      Warrant for ______ shares of Common Stock represented by this Warrant by payment
      of the Exercise Price in cash pursuant to Section 2.1(a) of the Warrant for
      the
      shares of Common Stock issuable upon the exercise of such Warrant, and requests
      that certificates for such shares of Common Stock shall be issued in the name
      of: 

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

    

    
      	
               

            

    

     

     

    
      	 
	 
	 

    

    (Please
      print or type name and address)

    and
      be
      delivered to

     

     

    
      
        	 
	 
	 

      

    

    (Please
      print or type name and address)

    

    and
      if
      such number of shares of Common stock shall not be all the shares of Common
      Stock into which this Warrant may be exercised, that a new Warrant for the
      balance of such shares of Common Stock be registered in the name of, and
      delivered to, the registered Warrant Holder at the address stated
      above.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    The
      undersigned hereby represents and warrants to the Company that it is an
“Accredited Investor” within the meaning of Rule 501(c) of Regulation D of the
      Securities Act of 1933, as amended (the “Securities Act”), and is acquiring
      these securities for its own account and not with a view to, or for sale in
      connection with, any distribution thereof, nor with any present intention of
      distributing or selling the same provided, however, the undersigned may sell
      such securities in accordance with federal and state securities laws. The
      undersigned further represents that it does not have any contract, agreement,
      understanding or arrangement with any person to sell, transfer or grant the
      shares of Common Stock issuable under this Warrant. The undersigned understands
      that the shares it will be receiving are “restricted securities” under federal
      securities laws inasmuch as they are being acquired from AEROGROW INTERNATIONAL,
      INC., in transactions not including any public offering and that under such
      laws, such shares may only be sold pursuant to an effective and current
      registration statement under the Securities Act or an exemption from the
      registration requirements of the Securities Act and any other applicable
      restrictions including the requirements of state securities and “blue sky” laws,
      in which event a legend or legends will be placed upon the certificate(s)
      representing the Common Stock issuable under this Warrant denoting such
      restrictions. The undersigned understands and acknowledges that the Company
      will
      rely on the accuracy of these representations and warranties in issuing the
      securities underlying the Warrant.

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	Dated:
              _______________	  	__________________________________________
	 	
              (Signature
                of Registered Holder)

            
	 	
               

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
      FORM

    To
      be
      executed by the Warrant Holder

    in
      order
      to Assign Warrants

    

    FOR
      VALUE
      RECEIVED,____________________________________ hereby sell, assigns and transfer
      unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

     

    

    
      	
               

            

    

     

     

    
      
        
          	 
	 
	 
	 
	 

        

      

    

    (Please
      print or type name and address)

    

     

    ______________________
      of the shares of Common Stock into which this Warrant is exercisable, and hereby
      irrevocably constitutes and appoints ________________________ Attorney to
      transfer this Warrant on the books of the Company, with full power of
      substitution in the premises.

     

    
      
        	 	 	 
	 	 
	 
 	 
 	 
 
	Dated:
                _______________	  	__________________________________________
	 	
                (Signature
                  of Registered Holder)

              
	 	
                 

              

      

       

       

       
CERTIFICATION
      OF STATUS OF TRANSFEREE

    TO
      BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT

    

    The
      undersigned transferee hereby certifies to the registered holder of this Warrant
      and to AEROGROW INTERNATIONAL, INC. that the transferee is an “Accredited
      Investor” within the meaning of Rule 501 of Regulation D of the Securities Act
      of 1933, as amended.

    
       

      
        	 	 	 
	 	 
	 
 	 
 	 
 
	Dated:
                _______________	  	__________________________________________
	 	
                (Signature
                  of Transferee)

              
	 	
                 

              

      

       

      10

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