Document:

EX-4.9

 Exhibit 4.9 

WARRANT AGREEMENT 
 THIS
WARRANT AGREEMENT is made as of                     , 2015 (the “Issuance Date”), between Foundation Healthcare, Inc., an
Oklahoma corporation (the “Company”), Computershare Inc., a Delaware corporation, and its wholly-owned subsidiary, Computershare Trust Company, N.A., a federally chartered trust company (collectively, the “Warrant
Agent”), and Roy T. Oliver, Valiant Investments, LLC and Oliver Company Holdings, LLC (the “Selling Stockholders”). 

WHEREAS, the Company proposes to sell units (the “Units”), each consisting of one share of common stock, par value $0.0001
per share (the “Common Stock”), of the Company and one warrant to purchase                      of a share of Common Stock
(each, a “Warrant Share” and, collectively, the “Warrant Shares”) subject to adjustment as described herein (each, a “Warrant” and, collectively, the “Warrants”), pursuant to an
Underwriting Agreement between the Company, Roth Capital Partners, LLC, as Representative of the Underwriters named therein, and the Selling Stockholders, dated
                                , 2015 (the “Underwriting
Agreement”); 
 WHEREAS, each share of Common Stock included in a Unit and each Warrant Share consists of 0.85 of one authorized
but unissued share of Common Stock (each, a “Primary Share’) and 0.15 of one issued and outstanding share of Common Stock (each, a “Secondary Share” and, together with the Primary Shares, the
“Shares”) transferrable by the Selling Stockholders; 
 WHEREAS, the Company, Selling Stockholders, and the Warrant Agent
have entered into a Custody Agreement, dated                     , 2015, pursuant to which the Warrant Agent has agreed to act as the
custodian for the Secondary Shares included in the Units to be sold in the offering and the Secondary Shares underlying the Warrants, the warrants issuable by the Company to the Underwriters as partial compensation for their services to purchase a
total of four percent (4%) of the Units sold in the offering (the “Underwriters’ Warrants”) and the Warrants issuable upon exercise of the Underwriters’ Warrants (the “Embedded Underwriters’
Warrants”); 
 WHEREAS, the Selling Stockholders have granted certain officers of the Company (each, an
“Attorney-in-Fact”) a power of attorney (the “PoA”) to act as its attorney-in-fact with respect to the offering and sale of the Secondary Shares included in the Units and underlying the Warrants, Underwriters’
Warrants and Embedded Underwriters’ Warrants, and to negotiate and enter into this Warrant Agreement on their behalf; 
 WHEREAS, the
Units, the Underwriters’ Warrants, and the component securities thereof were registered by the Company pursuant to a registration statement on Form S-1, Registration No. 333-197219 (the “Registration Statement”) filed with
the Securities and Exchange Commission (the “Commission”) on [            ] under the Securities Act of 1933, as amended (the “Act”); and 

WHEREAS, the Company and the Selling Stockholders desire the Warrant Agent to act on their behalf, and the Warrant Agent is willing to so act,
in connection with the issuance, registration, transfer, exchange and exercise of the Warrants; and 

  
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 WHEREAS, the parties desire to provide for the form and provisions of the Warrants, the terms
upon which they shall be issued and exercised, and the respective rights, limitation of rights, and immunities of the Company, the Selling Stockholders, the Warrant Agent, and the holders of the Warrants; and 

WHEREAS, all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Warrant Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

1. Appointment of Warrant Agent. The Company and the Selling Stockholders hereby appoint the Warrant Agent to act as agent for
the Warrants and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and conditions set forth in this Warrant Agreement. 

2. Warrants. 
 (a)
Form of Warrant. Each Warrant shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein, and shall be signed by, or bear the facsimile signature of, the Chief Executive Officer,
Chief Financial Officer, President or Secretary of the Company. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant
is issued, it may be issued with the same effect as if he or she had not ceased to serve in such capacity at the date of issuance.
 (b)
Effect of Countersignature. Unless and until countersigned by the Warrant Agent pursuant to this Warrant Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof. 

(c) Registration. 

(i) Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the registration of
original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise
in accordance with instructions delivered to the Warrant Agent by the Company. The Warrants shall be represented by definitive Warrant Certificates in physical form. Definitive Warrant Certificates shall be in substantially the form annexed hereto
as Exhibit A. 
 (ii) Beneficial Owner; Registered Holder. The term “beneficial owner” shall mean any person
in whose name ownership of a beneficial interest in the Warrants evidenced by a definitive Warrant Certificate is recorded in the book-entry records of the Warrant Agent. Prior to due presentment for registration of transfer of any Warrant, the
Company and the Warrant Agent may deem and treat the person in whose name such Warrant shall be registered in the Warrant Register (“registered holder”), as the absolute owner of such Warrant and of each Warrant represented thereby
(notwithstanding any notation of ownership or other writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of 

  
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any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. 

(d) Detachability of Warrants. The securities comprising the Units will be issued separately and will be separately transferable
immediately upon issuance. 
 3. Terms and Exercise of Warrants. 

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

(b) Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) commencing
on the Issuance Date and terminating at 5:00 P.M., Eastern time on the [third] anniversary of the Issuance Date (the “Expiration Date”); provided, however, that the Exercise Period for the Embedded Underwriters’
Warrants shall begin on the date such Warrants are issued and the Expiration Date shall be, and the Exercise Period shall end, with respect to such Warrants on the fifth anniversary of the effective date of the Registration Statement. Each Warrant
not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date. 

(c) Exercise of Warrants. 

(i) Exercise and Payment. A registered holder may exercise a Warrant by delivering, not later than 5:00 P.M., Eastern time, on
any Business Day during the Exercise Period (the “Exercise Date”) to the Warrant Agent at its corporate trust department (i) the Warrant Certificate evidencing the Warrants to be exercised, (ii) an election to purchase the
Shares underlying the Warrants to be exercised (the “Election to Purchase”), properly completed and executed by the registered holder on the reverse of the Warrant Certificate, and (iii) except with respect to Embedded
Underwriters’ Warrants exercised on a cashless basis, the Warrant Price for each Warrant to be exercised in lawful money of the United States of America by certified or official bank check or by bank wire transfer in immediately available
funds. 
 (ii) Cashless Exercise of Embedded Underwriters’ Warrants. The holder of an Embedded Underwriters’
Warrant may pay the Warrant Price for such Warrant in one of the following manners: 
 (1) Cash Exercise. The holder of an
Embedded Underwriters’ Warrant may deliver immediately available funds in the manner described above; or 
 (2) Cashless
Exercise. The holder of an Embedded Underwriters’ Warrant may include in its Election to Purchase an election to utilize cashless exercise, in which event the number of Shares to be issued or transferred to such holder with respect to
the exercise of such Embedded Underwriters’ Warrant shall be determined as follows: 
 X = Y [(A-B)/A] 

where: 
 X = the number of
Shares to be issued to the Holder. 

  
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 Y = the number of Shares with respect to which the Embedded Underwriters’ Warrant is being
exercised. 
 A = the average of the daily volume weighted average price for shares of Company Common Stock for the five Trading Days
immediately prior to (but not including) the Exercise Date plus $             (representing the price per Embedded Underwriters’ Warrant). 

B = the Warrant Price. 
 For
purposes of Rule 144 promulgated under the Act, it is intended, understood and acknowledged that the Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the holder, and the holding period for the Warrants shall
be deemed to have commenced, on the date the applicable warrant was originally issued. 
 If any of (A) the Warrant Certificate,
(B) the Election to Purchase, or (C) the Warrant Price therefor (with respect to Warrants other than Embedded Underwriters’ Warrants), is received by the Warrant Agent after 5:00 P.M., Eastern time, on the specified Exercise Date, the
Warrants will be deemed to be received and exercised on the Business Day next succeeding the Exercise Date. If the date specified as the Exercise Date is not a Business Day, the Warrants will be deemed to be received and exercised on the next
succeeding day that is a Business Day. If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be returned to the registered holder
or Participant1, as the case may be, as soon as practicable. In no event will interest accrue on funds deposited with the Warrant Agent in respect of an exercise or attempted exercise of Warrants.
The validity of any exercise of Warrants will be determined by the Company in its sole discretion and such determination will be final and binding upon the registered holder and the Warrant Agent. Neither the Company nor the Warrant Agent shall have
any obligation to inform a registered holder of the invalidity of any exercise of Warrants. 
 All funds received by the Warrant Agent
under this Warrant Agreement that are to be distributed or applied by the Warrant Agent in the performance of services (the “Funds”) shall be held by the Warrant Agent for the benefit of the Company and the Selling Stockholders and
deposited in one or more bank accounts to be maintained by the Warrant Agent in its name for the benefit of the Company and the Selling Stockholders. Until paid pursuant to this Warrant Agreement, the Warrant Agent may hold or invest the Funds
through such accounts in accounts of commercial banks with Tier 1 capital exceeding $1 billion or with an average rating above investment grade by S&P (LT Local Issuer Credit Rating), Moody’s (Long Term Rating) and Fitch Ratings, Inc. (LT
Issuer Default Rating) (each as reported by Bloomberg Finance L.P.). The Warrant Agent shall have no responsibility or liability for any diminution of the Funds that may result from any deposit or investment made by the Warrant Agent in accordance
with this paragraph, including any losses resulting from a default by any bank, financial institution or other third party. The Warrant Agent may from time to time receive interest, dividends or other earnings in connection with such deposits or
investments. The Warrant Agent shall not be obligated to pay such interest, dividends or earnings to the Company, the Selling Stockholders or any holder or any other party. 
  

 

	1 	Please define. 

  
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 (iii) Issuance of Certificates. The Warrant Agent shall, within a reasonable time
after request, advise the Company and the transfer agent and registrar in respect of (a) the Shares acquirable upon such exercise as to the number of Warrants exercised in accordance with the terms and conditions of this Warrant Agreement,
(b) the instructions of each registered holder or Participant, as the case may be, with respect to delivery of the Warrant Shares issuable upon such exercise, and the delivery of definitive Warrant Certificates, as appropriate, evidencing the
balance, if any, of the Warrants remaining after such exercise, and (c) such other information as the Company or such transfer agent and registrar shall reasonably require. 

Provided that, except with respect to Embedded Underwriters’ Warrants exercised on a cashless basis, the Warrant Agent has received
funds in the amount of the Exercise Price, the Company shall, by 5:00 P.M., Eastern time, on the third Business Day next succeeding the Exercise Date of any Warrant and, for Warrants other than Embedded Underwriters’ Warrants exercised on a
cashless basis, the clearance of the funds in payment of the Warrant Price (the “Warrant Shares Delivery Date”), execute, issue and deliver to the Warrant Agent, the Primary Shares constituting Warrant Shares, and shall cause one or
more Attorneys-in-Fact to issue instructions to the Warrant Agent concerning the transfer of the Secondary Shares constituting Warrant Shares, to which such registered holder or Participant, as the case may be, is entitled, in fully registered form,
registered in such name or names as may be directed by such registered holder or the Participant, as the case may be. Upon receipt of such Warrant Shares, the Warrant Agent shall, as soon as thereafter practicable, transmit such Warrant Shares to or
upon the order of the registered holder or Participant, as the case may be; provided, however, that the Warrant Agent shall, by 5:00 P.M. Eastern Time, on the third Business Day next succeeding such Exercise Date, deliver the Warrant Shares as
described above if the Warrant Agent shall have received by such time all required items as specified herein. 
 In lieu of delivering
physical certificates representing the Warrant Shares acquirable upon exercise, provided the Company’s transfer agent is participating in [a depository’s distribution program], the Company shall use its reasonable best efforts to cause its
transfer agent to electronically transmit the Warrant Shares acquirable upon exercise to the registered holder by crediting the account of the registered holder’s prime broker with the depository through its [Deposit Withdrawal Agent
Commission] system. The time periods for delivery described in the immediately preceding paragraph shall apply to the electronic transmittals described herein. 

If the Warrant Agent fails to comply with the preceding paragraphs in this Section 3(c)(iii) by the Warrant Shares Delivery Date, then
the registered holder will have the right to rescind its exercise. 
 (iv) Valid Issuance. All Primary Shares of Common Stock
issued upon the proper exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid and nonassessable. All Secondary Shares of Common Stock transferred upon the proper exercise of a Warrant in conformity with
this Warrant Agreement have been validly issued and are fully paid and nonassessable. 
 (v) Dividends. The accrual of
dividends, if any, on the Warrant Shares issued or transferred upon the valid exercise of any Warrant will be governed by the terms generally applicable to the Common Stock. From and after the issuance of such Warrant Shares, the former holder of
the Warrants exercised will be entitled to the benefits generally available to other holders of Common Stock and such former holder’s right to receive payments of dividends and any other amounts payable in respect of the Warrant Shares shall be
governed by, and shall be subject to, the terms and provisions generally applicable to the Common Stock. 

  
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 (vi) No Fractional Exercise. A registered holder may exercise a Warrant from time
to time only for whole shares of Common Stock. No fractional shares or scrip representing fractional shares shall be issued or transferred upon the exercise of a Warrant. As to any fraction of a share which the Holder would otherwise be entitled to
purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. If fewer than
all of the Warrants evidenced by a Warrant Certificate are exercised, a new Warrant Certificate for the number of unexercised Warrants remaining shall be executed by the Company and countersigned by the Warrant Agent as provided in Section 2 of
this Warrant Agreement, and delivered to the holder of this Warrant Certificate at the address specified on the books of the Warrant Agent or as otherwise specified by such registered holder. If fewer than all the Warrants evidenced by a Book-Entry
Warrant Certificate are exercised, a notation shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance of the Warrants remaining after
such exercise. The Company shall provide an initial funding of [one thousand dollars ($1000)] for the purpose of issuing cash in lieu of fractional shares. From time to time thereafter, the Warrant Agent may request additional funding to cover
payments for fractional Warrant Shares. The Warrant Agent shall have no obligation to make such payments for fractional Warrant Shares unless the Company shall have provided the necessary funds to pay in full all amounts due and payable with respect
thereto. 
 (vii) No Transfer Taxes. Issuance or transfer of Warrant Shares shall be made without charge to a registered
holder for any issue or transfer tax or other incidental expense in respect of the issuance or transfer of such Warrant Shares, all of which taxes and expenses related to the issuance of Primary Shares shall be paid by the Company and all of which
taxes and expenses related to the transfer of the Secondary Shares shall be paid by the Selling Stockholders, and such Warrant Shares shall be issued or transferred in the name of the registered holder or in such name or names as may be directed by
the registered holder; provided, however, that in the event Warrant Shares are to be issued or transferred in a name other than the name of the registered holder, a Warrant when surrendered for exercise shall be accompanied by the Assignment Form
attached hereto duly executed by the registered holder and the Company or Attorney-in-Fact (on behalf of the Selling Stockholders) may require, as a condition thereto, the payment of a sum sufficient to reimburse the Company or Selling Stockholders
for any transfer tax incidental thereto. The Company shall pay all transfer agent fees required for same-day processing of any exercise notice. 

(viii) Date of Issuance. Each person in whose name any such certificate for shares of Common Stock is issued shall for all
purposes be deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate, except that, if the date of
such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books
are open. 
 (ix) Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic
calculation of the Warrant Shares, the Company shall promptly issue and cause the transfer agent to promptly transfer to the registered holder the number of Warrant Shares that are not disputed. 

(x) Limitations on Exercise. The Warrant Agent shall not effect any exercise of this Warrant, and a registered holder shall not
have the right to exercise any portion of this Warrant to the extent that after giving effect to such issuance or transfer after exercise as set forth on the applicable exercise notice, the registered holder (together with the registered
holder’s affiliates, and any other persons acting as a group together with the registered holder or any of the registered holder’s affiliates), would beneficially own in excess 

  
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of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the registered holder and its
affiliates shall include the number of shares of Common Stock acquirable upon exercise of the Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be acquirable upon
(i) exercise of the remaining, nonexercised portion of any Warrant beneficially owned by the registered holder or any of its affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the registered holder or any of its affiliates.
Except as set forth in the preceding sentence, for purposes of this Section 3(c)(x), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the registered holder that the Company is not representing to the registered holder that such calculation is in compliance with Section 13(d) of the
Exchange Act and the registered holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 3(c)(x) applies, the determination of whether this Warrant
is exercisable (in relation to other securities owned by the registered holder together with any affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the registered holder, and the submission of an
exercise notice shall be deemed to be the registered holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the registered holder together with any affiliates) and of which portion of this
Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 3(c)(x), in determining the number of outstanding shares of
Common Stock, a registered holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a registered holder, the Company
shall within two Trading Days confirm orally and in writing to the registered holder the number of shares of Common Stock then outstanding as established by (A), (B) or (C) above, as applicable. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the registered holder or its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock acquirable
upon exercise of this Warrant. The registered holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 3(c)(x), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance or transfer of shares of Common Stock upon exercise of this Warrant held by the registered holder
and the provisions of this Section 3(c)(x) shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company and shall only be effective with respect to such registered
holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(c)(x) to correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly 

  
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give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. 

The Warrant Agent shall have no obligation under this Warrant Agreement to calculate, confirm or verify the accuracy of the correctness of,
the number of Warrant Shares issuable in connection with a cashless exercise. 
 (d) Cost Basis Information. 

 (i) In the event of a cash exercise, the Company hereby instructs the Warrant Agent to record cost basis for newly issued shares as
follows: [issuer to fill in calculation method] 
 (ii) In the event of a cashless exercise: the Company shall provide cost basis for
shares issued pursuant to a cashless exercise at the time the Company confirms the number of Warrant Shares issuable in connection with the cashless exercise to the Warrant Agent pursuant to Section (c)(2)(ii) hereof. 

4. Adjustments. 

(a) Stock Dividends and Splits. If the Company, at any time while a Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any Primary Shares of Common Stock
issued by the Company upon exercise of a Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a
smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of
shares acquirable upon exercise of a Warrant shall be proportionately adjusted such that the aggregate Exercise Price of a Warrant shall remain unchanged. Any adjustment made pursuant to this Section 4(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 

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

  
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made whenever any such distribution is made and shall become effective immediately after the record date mentioned above. 

(c) Fundamental Transaction. If, at any time while a Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person (other than a merger with a wholly-owned subsidiary of the Company for purposes of offering a corporate name change), (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has
been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or
any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a
stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such
stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of a Warrant, the registered holders each shall have the right to receive, for each Warrant
Share that would have been acquirable upon such exercise immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 3(c)(x) on the exercise of a Warrant), the number of shares of Common
Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a
holder of the number of shares of Common Stock for which a Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 3(c)(x) on the exercise of a Warrant). For purposes of any such
exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given
any choice as to the securities, cash or property to be received in a Fundamental Transaction, then each registered holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of a Warrant following such
Fundamental Transaction. 
 The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant Agreement in accordance with the provisions of this Section 4(c) pursuant to written agreements in form and
substance reasonably satisfactory to the registered holder and approved by the registered holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the registered holder, deliver to the registered holder
in exchange for a Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its
parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of a Warrant (without regard to any limitations on the exercise of a Warrant) prior to such Fundamental Transaction, and with an exercise price

  
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which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and
the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of a Warrant immediately prior to the consummation of such Fundamental Transaction), and
which is reasonably satisfactory in form and substance to the registered holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of a Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company
under a Warrant with the same effect as if such Successor Entity had been named as the Company herein. 
 (d)
Notices. 
 (i) Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any
provision of this Section 4, the Company shall give reasonable written notice thereof to the Warrant Agent, which notice shall set forth the Exercise Price after such adjustment and set forth a brief statement of the facts requiring such
adjustment. The Company agrees that it will provide the Warrant Agent with any new or amended exercise terms. 
 (ii) Notices of
Certain Events to Allow Exercise. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption
of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights, options or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of
any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the
Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of
the Company, then, in each case, the Company shall cause to be mailed to each registered holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights, options or warrants, or if a record is not to be taken, the date as of which the
holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights, options or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be
specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the subsidiaries, the Company shall simultaneously file such notice with the
Commission pursuant to a Current Report on Form 8-K. The registered holder shall remain entitled to exercise a Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may
otherwise be expressly set forth herein. 
 (e) Form of Warrant. The form of Warrant need not be changed because of any
adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the same Warrant Price and the 

  
 10 

 
same number of shares as is stated in the Warrants initially issued pursuant to this Warrant Agreement. However, the Company may at any time in its sole discretion make any change in the form of
Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so
changed. 
 (f) Calculations. All calculations under this Section 4 shall be made to the nearest cent or the nearest
1/100th of a share, as the case may be. For purposes of this Section 4, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding. 
 5. Transfer and Exchange of Warrants. 

(a) Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon
the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon request. 

(b) Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for
exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the registered holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided,
however, that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend. Upon any such registration of transfer, the Company shall execute, and the Warrant Agent shall countersign and deliver,
in the name of the designated transferee a new Warrant Certificate or Warrant Certificates of any authorized denomination evidencing in the aggregate a like number of unexercised Warrants. 

A party requesting transfer of Warrants must provide any evidence of authority that may be required by the Warrant Agent, including but not
limited to, a signature guarantee from an eligible guarantor institution participating in a signature guarantee program approved by the Securities Transfer Association. 

(c) Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will
result in the issuance of a warrant certificate or a for a fraction of a warrant. 
 (d) Service Charges. No service charge
shall be made for any exchange or registration of transfer of Warrants. 
 (e) Warrant Execution and Countersignature. The
Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Warrant Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the
Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose. 
 6. Other
Provisions Relating to Rights of Registered Holders of Warrants. 

  
 11 

 (a) No Rights as Stockholder. Except as otherwise specifically provided herein, a
registered holder, solely in its capacity as a holder of a Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant Agreement be
construed to confer upon a registered holder, solely in its capacity as the registered holder of a Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance or transfer to the registered
holder of the Warrant Shares which it is then entitled to receive upon the due exercise of a Warrant. In addition, nothing contained in this Warrant Agreement shall be construed as imposing any liabilities on a registered holder to purchase any
securities (upon exercise of a Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. A Warrant does not entitle the registered holder thereof to any of the
rights of a stockholder. 
 (b) Lost, Stolen or Destroyed Warrants. The Warrant Agent shall issue replacement Warrants in a
form mutually agreed to by Warrant Agent and the Company for those certificates alleged to have been lost, stolen or destroyed, upon receipt by the Warrant Agent of an open penalty surety bond satisfactory to it and holding it and Company harmless,
absent notice to Warrant Agent that such certificates have been acquired by a bona fide purchaser. The Warrant Agent may, at its option, issue replacement Warrants for mutilated certificates upon presentation thereof without such indemnity. 

(c) Authorized Shares. The Company covenants that, during the period the Warrants are outstanding, it will reserve from its
authorized and unissued Common Stock a sufficient number of Primary Shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under a Warrant. The Company further covenants that its issuance of the Warrants
shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Primary Shares constituting Warrant Shares upon the exercise of the purchase rights under the Warrants.
The Company will take all such reasonable action as may be necessary to assure that such Primary Shares constituting Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the
Trading Market upon which the Common Stock may be listed. The Company covenants that all Primary Shares constituting Warrant Shares which may be issued upon the exercise of the purchase rights represented by a Warrant will, upon exercise of the
purchase rights represented by a Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and all Secondary Shares constituting Warrant Shares which may be transferred upon
the exercise of the purchase rights represented by a Warrant have been duly authorized and validly issued and are fully paid and nonassessable, free from all taxes, liens and charges created by the Company in respect of the issue or transfer thereof
(other than taxes in respect of any transfer occurring contemporaneously with such issue). 
 (d) Observance of Terms of
Warrant. Except and to the extent as waived or consented to by a registered holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of a Warrant, but will at all times in good faith assist in the carrying
out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of a registered holder as set forth in this Warrant Agreement against impairment. Without limiting the generality of the foregoing,
the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon 

  
 12 

 
such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid
and nonassessable Primary Shares constituting Warrant Shares upon the exercise of a Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant Agreement. 
 Before taking
any action which would result in an adjustment in the number of Warrant Shares for which a Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof. 
 (e) Assurance of No Securities Law
Violation. The Company covenants that it will take all such action as may be necessary to ensure that the shares of Common Stock acquirable upon the exercise of the Warrants may be so issued or transferred without violation of any applicable
federal or state law or regulation, or of any requirements of any securities exchange upon which any Common Stock of the Company may be listed, if any. 

(f) Registration of Common Stock. The Company covenants that prior to the Expiration Date, it shall use its best efforts to
prepare and file with the Commission such post-effective amendments to the Registration Statement, or a new registration statement, for the registration under the Act of the Common Stock acquirable upon exercise of the Warrants, and it shall take
such action as is necessary to qualify for sale, in those states in which the Warrants were initially offered by the Company, the Common Stock acquirable upon exercise of the Warrants. In either case, the Company will use its best efforts to
maintain the effectiveness of such registration statement and ensure that a prospectus is available for delivery to the Warrant holders until the expiration of the Warrants in accordance with the provisions of this Warrant Agreement. The Warrants
(other than Embedded Underwriters’ Warrants) shall not be exercisable and the Company shall not be obligated to issue or cause the transfer of Common Stock unless, at the time a holder seeks to exercise Warrants, a prospectus related to the
Common Stock acquirable upon exercise of the Warrants is current and the Common Stock has been registered or qualified or deemed to be exempt under the laws of the state of residence of the holder of the Warrants. In addition, the Company agrees to
use its best efforts to register such securities under the blue sky laws of the states of residence of exercising Warrant holders, if permitted by the blue sky laws of such jurisdictions, in the event that an exemption is not available. The
provisions of this Section 6(f) may not be modified, amended or deleted without the prior written consent of Roth Capital Partners, LLC. 

7. Concerning the Warrant Agent and Other Matters. 

(a) Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company
or the Warrant Agent in respect of the issuance or delivery of Primary Shares of Common Stock upon the exercise of Warrants and the Selling Stockholder will from time to time promptly pay all taxes and charges that may be imposed upon the Selling
Stockholder or the Warrant Agent in respect of the transfer or delivery of Secondary Shares of Common Stock upon the exercise of Warrants. The Warrant Agent shall not register any transfer or issue or deliver any Warrant Certificate(s) or Warrant
Shares unless or until the persons requesting the registration or issuance shall have paid to the Warrant Agent for the account of the Company the amount of such tax, if any, or shall have established to the reasonable satisfaction of the Company
and the Warrant Agent that such tax, if any, has been paid. 
 (b) Resignation, Consolidation, or Merger of Warrant
Agent. 

  
 13 

 (i) Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to
it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company pursuant to Section 8(b) hereof. If the office of the
Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of 30
days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of the Warrant (who shall, with such notice, submit his Warrant for inspection by the Company), then the holder of any Warrant may
apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a
corporation organized and existing under applicable laws to exercise the powers of a transfer agent and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the
authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or
appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and
upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority,
powers, rights, immunities, duties, and obligations. 
 (ii) Notice of Successor Warrant Agent. In the event a successor
Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than thirty (30) days before the effective date of any such appointment. 

(iii) Merger or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or converted or with
which it may be consolidated or any entity resulting from any merger, conversion, or consolidation to which the Warrant Agent shall be a party, or any entity succeeding to the business of the Warrant Agent, shall be the successor Warrant Agent under
this Warrant Agreement without any further act. 
 (c) Fees and Expenses of Warrant Agent. 

(i) Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent
hereunder and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder. 

(ii) Further Assurances. The Company and Selling Stockholders shall perform, acknowledge and deliver or cause to be performed,
acknowledged and delivered all such further and other acts, documents, instruments and assurances as may be reasonably required by the Warrant Agent for the carrying out or performing by the Warrant Agent of the provisions of this Warrant
Agreement.
 (d) Liability of Warrant Agent. 

(i) Reliance. Whenever in the performance of its duties under this Warrant Agreement, the Warrant Agent shall deem it necessary
or desirable that any fact or matter be proved or 

  
 14 

 
established by the Company or Selling Stockholders prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer, Chief Financial Officer, President or Chairman of the Board of the Company or any Attorney-in-Fact on behalf of the Selling
Stockholders and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Warrant Agreement. 

(ii) Indemnification. The Company covenants and agrees to indemnify and to hold the Warrant Agent harmless against any costs,
expenses (including reasonable fees of its legal counsel), losses or damages, which may be paid, incurred or suffered by or to which it may become subject, arising from or out of, directly or indirectly, any claims or liability resulting from its
actions as Warrant Agent pursuant hereto; provided, that such covenant and agreement do not extend to, and the Warrant Agent shall not be indemnified with respect to, such costs, expenses, losses and damages incurred or suffered by the Warrant Agent
as a result of, or arising out of, its gross negligence, bad faith, or willful misconduct (each as determined by a final judgment of a court of competent jurisdiction). 

(iii) Instructions. From time to time, the Company and/or Attorneys-in-Fact may provide the Warrant Agent with instructions
concerning the services performed by the Warrant Agent hereunder. In addition, at any time Warrant Agent may apply to any officer of Company or Attorney-in-Fact for instruction, and may consult with legal counsel for Warrant Agent or Company or
Selling Stockholders with respect to any matter arising in connection with the services to be performed by the Warrant Agent under this Warrant Agreement. The Warrant Agent and its agents and subcontractors shall not be liable and shall be
indemnified by the Company and for any action taken or omitted by the Warrant Agent in reliance upon any Company or Attorney-in-Fact instructions or upon the advice or opinion of such counsel. The Warrant Agent shall not be held to have notice of
any change of authority of any person, until receipt of written notice thereof from the Company or an Attorney-in-Fact. 
 (iv)
Rights and Duties of Warrant Agent. (a) The Warrant Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the
Warrant Agent as to any action taken or omitted by it in accordance with such opinion. 
 (b) The Warrant Agent shall not be liable for or
by reason of any of the statements of fact or recitals contained in this Warrant Agreement or in the Warrant Certificates (except its countersignature thereof) or be required to verify the same, and all such statements and recitals are and shall be
deemed to have been made by the Company only. 
 (c) The Warrant Agent shall not have any duty or responsibility in the case of the receipt
of any written demand from any holder of Warrants with respect to any action or default by the Company, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law
or otherwise or to make any demand upon the Company. 
 (d) The Warrant Agent and any stockholder, director, officer or employee of the
Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act
as fully and freely as though it were not Warrant Agent under this 

  
 15 

 
Warrant Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 

(e) The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or
by or through its attorney or agents, and the Warrant Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorney or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, absent gross negligence, bad faith or willful misconduct (each as determined by a final judgment of a court of competent jurisdiction) in the selection and continued employment thereof. 

(f) The Warrant Agent may rely on and shall be held harmless and protected and shall incur no liability for or in respect of any action
taken, suffered or omitted to be taken by it in reliance upon any certificate, statement, instrument, opinion, notice, letter, facsimile transmission, telegram or other document, or any security delivered to it, and believed by it to be genuine and
to have been made or signed by the proper party or parties, or upon any written or oral instructions or statements from the Company with respect to any matter relating to its acting as Warrant Agent hereunder. 

(g) The Warrant Agent shall not be obligated to expend or risk its own funds or to take any action that it believes would expose or subject
it to expense or liability or to a risk of incurring expense or liability, unless it has been furnished with assurances of repayment or indemnity satisfactory to it. 

(h) The Warrant Agent shall not be liable or responsible for any failure of the Company to comply with any of its obligations relating to any
registration statement filed with the Commission or this Warrant Agreement, including without limitation obligations under applicable regulation or law. 

(i) The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the Company of any Warrants authenticated
by the Warrant Agent and delivered by it to the Company pursuant to this Warrant Agreement or for the application by the Company of the proceeds of the issue and sale, or exercise, of the Warrants. 

(j) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties shall be determined solely by the express
provisions hereof (and no duties or obligations shall be inferred or implied). The Warrant Agent shall not assume any obligations or relationship of agency or trust with any of the owners or holders of the Warrants. 

(k) The Warrant Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) any guaranty of signature
by an “eligible guarantor institution” that is a member or participant in the Securities Transfer Agents Medallion Program or other comparable “signature guarantee program” or insurance program in addition to, or in substitution
for, the foregoing; or (b) any law, act, regulation or any interpretation of the same even though such law, act, or regulation may thereafter have been altered, changed, amended or repealed. 

(l) In the event the Warrant Agent believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request
or other communication, paper or document received by the Warrant Agent hereunder, the Warrant Agent, may, in its sole discretion, refrain from taking any action, and shall be fully protected and shall not be liable in any way to the Company, the
holder of any 

  
 16 

 
Warrant Certificate or Book-Entry Warrant Certificate or any other person or entity for refraining from taking such action, unless the Warrant Agent receives written instructions signed by the
Company which eliminates such ambiguity or uncertainty to the satisfaction of Warrant Agent. 
 (v) Exclusions. The Warrant
Agent shall have no responsibility with respect to the validity of this Warrant Agreement or with respect to the validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company or
the Selling Stockholders of any covenant or condition contained in this Warrant Agreement or in any Warrant; nor shall it be responsible to make any adjustments or calculation required under the provisions of this Warrant Agreement hereof or
responsible for the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock to be issued pursuant to this Warrant Agreement or any Warrant or as to whether any shares of Common Stock are or will when issued be valid and fully paid and nonassessable. The Warrant
Agent shall have no obligation under this Warrant Agreement to determine whether an adjustment or event set forth under Section 4 hereof has occurred or is scheduled or contemplated to occur. 

(e) Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to
perform the same upon the terms and conditions herein set forth and among other things, shall account promptly to the Company and Selling Stockholders with respect to Warrants exercised and concurrently account for, and pay to the Company and
Selling Stockholders, all moneys received by the Warrant Agent for the purchase of shares of Common Stock through the exercise of Warrants. 

(f) Limitation on Liability of Warrant Agent. Notwithstanding anything contained herein to the contrary, the Warrant
Agent’s aggregate liability during any term of this Warrant Agreement with respect to, arising from, or arising in connection with this Warrant Agreement, or from all services provided or omitted to be provided under this Warrant Agreement,
whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid hereunder by the Company to the Warrant Agent as fees and charges, but not including reimbursable expenses, during the twelve (12) months
immediately preceding the event for which recovery from Warrant Agent is being sought. 
 (g) Survival. The provisions of this
Section 7 shall survive termination of this Warrant Agreement or any removal of the Warrant Agent. 
 (h) Opinion of
Counsel. The Company shall provide an opinion of counsel to the Warrant Agent prior to the Issuance Date to set up a reserve of Warrants and related Common Stock. The opinion shall state that all Warrants or Common Stock, as applicable, are:

 (i) registered under the Act, or are exempt from such registration; 

(ii) as to Common Stock, validly issued, fully paid and non-assessable; and 

(iii) as to Warrants, valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms.

 8. Miscellaneous Provisions. 

  
 17 

 (a) Successors. Subject to applicable securities laws, all the covenants and
provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns. 

(b) Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent or by
the holder of any Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service, addressed (until another address is filed in writing by the
Company with the Warrant Agent), as follows: 
 Foundation Healthcare, Inc. 

14000 N. Portland Avenue, Ste. 200 

Oklahoma City, Oklahoma 73134 

Attn: [    ] 

Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the holder of any Warrant or by the Company to or
on the Warrant Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service addressed (until another address is filed in writing by the Warrant Agent with the Company),
as follows: 
 Computershare Inc. 

Computershare Trust Company, N.A. 

250 Royall Street 
 Attn: Client
Administration 
 with a copy in each case to: 

Roth Capital Partners, LLC 
 6183
Paseo Del Norte, Ste. 290 
 Carlsbad, California 92011 

Attn: [    ] 

and 
 DLA Piper LLP (US) 

2525 E. Camelback Rd., Ste. 1000 

Phoenix, Arizona 85016 
 Attn:
Steven D. Pidgeon, Esq. 
 Ann Lawrence, Esq. 

and 
 Roy T. Oliver 

Valiant Investments, LLC 
 Oliver
Company Holdings, LLC 
 101 North Robinson, Ste. 900 

Oklahoma City, Oklahoma 73102 

Attn: Roy T. Oliver 

  
 18 

 Any notice, sent pursuant to this Warrant Agreement shall be effective when sent. 

(c) Jurisdiction. The validity, interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed
in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The Company and the Selling Stockholders hereby agree
that any action, proceeding or claim against it arising out of or relating in any way to this Warrant Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New
York, and irrevocably submit to such jurisdiction, which jurisdiction shall be exclusive. The Company and the Selling Stockholders hereby waive any objection to such exclusive jurisdiction and that such courts represent an inconvenience forum. Any
such process or summons to be served upon the Company or the Selling Stockholders may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in
Section 8(b) hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company or the Selling Stockholder in any action, proceeding or claim. 

(d) Persons Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be
implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the registered holders of the Warrants, any right, remedy, or claim under or by
reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant Agreement shall be for the sole and exclusive
benefit of the parties hereto and their successors and assigns and of the registered holders of the Warrants. 
 (e) Examination of
the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office of the Warrant Agent designated for such purpose for inspection by the registered holder of any Warrant. The Warrant Agent may
require any such holder to submit his Warrant for inspection by it. 
 (f) Counterparts. This Warrant Agreement may be
executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this
Warrant Agreement transmitted electronically shall have the same authority, effect, and enforceability as an original signature. 
 (g)
Effect of Headings. The Section headings herein are for convenience only and are not part of this Warrant Agreement and shall not affect the interpretation thereof. 

(h) Amendments. This Warrant Agreement may be amended by the parties hereto without the consent of any registered holder:
(i) for the purpose of curing any ambiguity or (ii) of curing, correcting or supplementing any defective provision contained herein or (iii) adding or for the purpose of changing any other provisions with respect to matters or
questions arising under this Warrant Agreement as the parties may deem necessary or desirable and that the parties deem shall not materially adversely affect the interest of the registered holders. Any modifications or amendments to
Section 3(c)(x) shall require the written consent of all the registered holders. All other modifications or amendments, including any amendment to increase the Warrant Price or shorten the Exercise Period, shall require the written consent of
the registered holders of Warrants equal to at least 67% of the Warrant Shares acquirable upon exercise of all then outstanding Warrants. 

  
 19 

 
As a condition precedent to the Warrant Agent’s execution of any amendment, the Company shall deliver to the Warrant Agent a certificate from a duly authorized officer of the Company that
states that the proposed amendment is in compliance with the terms of this Section 8(h). 
 (i) Severability. Wherever
possible, each provision of this Warrant Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant Agreement. 

(j) Restrictions. Each registered holder acknowledges that the Warrant Shares acquired upon the exercise of a Warrant, if not
registered, will have restrictions upon resale imposed by state and federal securities laws. 
 (k) Nonwaiver and Expenses. No
course of dealing or any delay or failure to exercise any right hereunder on the part of a registered holder shall operate as a waiver of such right or otherwise prejudice such a registered holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant Agreement or the Underwriting Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant Agreement or the Warrants, which results in any material damages to a registered
holder, the Company shall pay such registered holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the
registered holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 

(l) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the registered holder to exercise
a Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of a registered holder, shall give rise to any liability of each registered holder for the purchase price of any Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of the Company. 
 (m) Remedies. The registered
holders, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of their rights under this Warrant Agreement. The Company and the Selling Stockholders agree that
monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant Agreement and hereby agree to waive and not to assert the defense in any action for specific performance that a
remedy at law would be adequate. 
 (n) Confidentiality. The Warrant Agent, Company and Selling Stockholders agree that all
books, records, information and data pertaining to the business of the other party, including inter alia, personal, non-public warrant holder information, which are exchanged or received pursuant to the negotiation or the carrying out of this
Warrant Agreement including the fees for services provided under separate cover shall remain confidential, and shall not be voluntarily disclosed to any other person, except as may be required by law, including, without limitation, pursuant to
subpoenas from state or federal government authorities. 
 (o) Consequential Damages. No party to this Warrant Agreement shall
be liable to the other party for any consequential, indirect, special, or incidental damages under any provisions of this Warrant 

  
 20 

 
Agreement or for any consequential, indirect, penal, special or incidental damages arising out of any act or failure to act hereunder even if that party has been advised of or has foreseen the
possibility of such damages. 
 (p) Force Majeure. Notwithstanding anything to the contrary contained herein, the Warrant
Agent will not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or
malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest. 

9. Certain Definitions. For purposes of this Warrant Agreement, the following terms shall have the following meanings: 

(a) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York
are authorized or required by law or executive order to remain closed. 
 (b) “Common Stock” means (i) the
Company’s shares of Common Stock and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. 

(c) “Control” (including the terms “controlling”, “controlled by” or “under common
control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

(d) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity and a government or any department or agency thereof. 
 (e) “Trading Day”
means a day on which the principal Trading Market is open for trading. 
 (f) “Trading Market” means any of the following
markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange, the OTC Bulletin
Board or the Pink OTC Markets, Inc. (or any successors to any of the foregoing). 
 (g) “VWAP” means, for any date, the
price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market (as defined below), the daily volume weighted average price of the Common Stock for such date (or the
nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC
Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC
Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price
per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Company and reasonably acceptable to the holders of a
majority in interest of the total number of 

  
 21 

 
Warrants issued under the Underwriting Agreement then outstanding, the fees and expenses of which shall be paid by the Company. 

[Signature Page Follows.] 

  
 22 

 IN WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties hereto as of the
day and year first above written. 
  

			
	FOUNDATION HEALTHCARE, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	COMPUTERSHARE INC.
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	COMPUTERSHARE TRUST COMPANY, N.A.
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	 ROY T. OLIVER
 VALIANT
INVESTMENTS, LLC
 OLIVER COMPANY HOLDINGS, LLC

		
	By:	 	 
		 	As Attorney-in-Fact acting on behalf of the Selling Stockholders

  
 Warrant Agreement

 EXHIBIT A 

WARRANT NUMBER: ____ 
 FOUNDATION HEALTHCARE, INC.

 WARRANT CERTIFICATE2 

THIS CERTIFIES THAT, for value received 

_________________________ 
 is the registered holder of a
Warrant or Warrants (the “Warrant”) expiring on              subject to extension in certain events (“Expiration Date”), to purchase
             fully paid and non-assessable shares (“Shares”) of Common Stock, par value $0.0001 per share (“Common Stock”), of Foundation
Healthcare, Inc., an Oklahoma corporation (the “Company”). The Warrant entitles the holder thereof to purchase such number of shares of Common Stock at the price of
$             per share (subject to adjustment), upon surrender of this Warrant Certificate and, with respect to Warrants other than Embedded Underwriters’ Warrants, payment of
the Warrant Price to Computershare Inc. and Computershare Trust Company, N.A. (collectively, the “Warrant Agent”), at its corporate trust department, but only subject to the conditions set forth herein and in the Warrant Agreement
between the Company and the Warrant Agent (as may be amended from time to time, the “Warrant Agreement”). The Warrant Agreement provides that upon the occurrence of certain events, the Warrant Price and the number of Shares
purchasable hereunder, set forth on the face hereof, may, subject to certain conditions, be adjusted. The term “Warrant Price” as used in this Warrant Certificate refers to the price per share of Common Stock at which Shares may be
purchased at the time the Warrant is exercised. Capitalized terms used and not defined herein shall have the meanings set forth in the Warrant Agreement. 

No fraction of a Share will be issued upon any exercise of a Warrant. If the holder of a Warrant would be entitled to receive a fraction of a
Share upon any exercise of a Warrant, the Company shall, at its election, either pay a cash adjustment in respect of such fraction in an amount equal to such fraction multiplied by the Exercise Price or round up such fraction to the next whole
share. 
 Upon any exercise of the Warrant for less than the total number of full Shares provided for herein, there shall be issued to the
registered holder hereof or the registered holder’s assignee a new Warrant Certificate covering the number of Shares for which the Warrant has not been exercised. 

Upon surrender of the Warrant Certificate for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer, the Warrant Agent shall register the transfer. A new Warrant Certificate or Warrant Certificates evidencing in the aggregate a like number of Warrants shall be issued and the old Warrant Certificate shall be canceled. 

Warrant Certificates, when surrendered to the Warrant Agent, may be transferred or exchanged in the manner and subject to the limitations
provided in the Warrant Agreement, but without payment of any service 
  

	2 	 NTD: Legend 

  
 A-1 

 
charge, for another Warrant Certificate or Warrant Certificates evidencing in the aggregate a like number of Warrants. 

The Company and the Warrant Agent may deem and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. 

This Warrant Certificate does not entitle the registered holder to any of the rights of a stockholder of the Company. 

[Remainder of page intentionally left blank. Signature page follows.] 

  
 A-2 

 
			
	FOUNDATION HEALTHCARE, INC.
		
	By:		 
	Name:		
	Title:		
	
	COUNTERSIGNED:
	
	 COMPUTERSHARE INC.
 as
Warrant Agent

		
	By:		 
	Authorized Officer
	
	 COMPUTERSHARE TRUST COMPANY, N.A.

as Warrant Agent

		
	By:		 
	Authorized Officer

 [Signature page to Warrant Certificate] 

 SUBSCRIPTION FORM 

(to be executed by the registered holder in order to exercise Warrants) 

The undersigned registered holder irrevocably elects to exercise Warrants to purchase
                     shares of Common Stock represented by this Warrant Certificate, and to purchase such shares of Common Stock acquirable
upon the exercise of such Warrants. If the Warrant is an Embedded Underwriters’ Warrant, the holder intends that payment of the Warrant Price shall be made as (i) a “cash exercise” with respect to
                     shares of Common Stock; and/or (ii) a “cashless exercise” with respect to
                     shares of Common Stock, and, accordingly, that
                     shares of Common Stock shall be delivered pursuant to the exercise of such Embedded Underwriters’ Warrant hereby.

 The holder requests that Certificates for such shares shall be issued in the name of 

 

	
	(PLEASE TYPE OR PRINT NAME AND ADDRESS)
	 
	 
	 
	 

 (SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER) 

and be delivered to: 
  

 
 (PLEASE PRINT OR TYPE NAME AND ADDRESS) 

and, if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such
Warrants be registered in the name of, and delivered to, the registered holder at the address stated below: 
 Dated: 

 
  

(SIGNATURE) 
  

 
  

 
 (ADDRESS) 

 
  
  

 
 (TAX IDENTIFICATION NUMBER) 

 ASSIGNMENT 

(to be executed by the registered holder in order to assign Warrants) 

For Value Received,
                                 hereby sells, assigns, and transfers unto 

 

	
	 (PLEASE TYPE OR PRINT NAME AND ADDRESS)

	 
	 
	 
	 

 (SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER) 

and be delivered to 
  

	
	 (PLEASE PRINT OR TYPE NAME AND ADDRESS)

 Warrants to purchase
                                     shares of Common Stock
represented by this Warrant Certificate, and hereby irrevocably constitutes and appoints
                                         
        Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises. 

Dated:
                                         
   
                                         
        
 (SIGNATURE) 

The signature to the assignment of the Subscription Form must correspond to the name written upon the face of this Warrant Certificate in every particular,
without alteration or enlargement or any change whatsoever, and must be guaranteed by a commercial bank or trust company or a member firm of the American Stock Exchange, New York Stock Exchange, Pacific Stock Exchange or Chicago Stock Exchange.Exhibit 10.1

 

Separation and Release of Claims Agreement

 

This Separation and Release of
Claims Agreement ("Agreement") is entered into by and between American DG Energy Inc., a Delaware Corporation,
(the "Employer") on behalf of itself, its subsidiary EuroSite Power Inc., its related party Ilios Dynamics Inc,
its related party Tecogen Inc and each of their respective employees, officers, directors, owners, shareholders and agents (collectively
referred to herein as the "Employer Group"), and Barry Sanders (the "Employee") (the Employer
and the Employee are collectively referred to herein as the "Parties") as of February 6, 2015 (the "Execution
Date").

 

The Employee's last day of employment with
the Employer is February 6, 2015 (the "Separation Date"). After the Separation Date, the Employee will not represent
himself as being an employee, officer, attorney, agent or representative of the Employer Group for any purpose. Except as otherwise
set forth in this Agreement, the Separation Date will be the employment termination date for the Employee for all purposes, meaning
the Employee will no longer be entitled to any further compensation, monies or other benefits from the Employer Group, including
coverage under any benefits plans or programs sponsored by the Employer Group.

 

1.Return of Property. By the Separation Date, the
Employee must return all Employer Group property, including identification cards or badges, access codes or devices, keys, credit
cards, electronically stored documents or files, physical files and any other Employer Group property in the Employee's possession.
Any files and records at home or elsewhere that contain proprietary Employer information should be destroyed.

 

2.Employee Representations. The Employee
hereby represents that he intends to irrevocably and unconditionally fully and forever release and discharge any and all
claims he may have, have ever had or may in the future have against the Employer Group that may lawfully be waived and
released arising out of or in any way related to his hire, benefits, employment or separation from employment with the
Employer Group. The Employee specifically represents, warrants and confirms that: (a) he has no claims, complaints or actions
of any kind filed against the Employer Group with any court of law, or local, state or federal government or agency; and (b)
he has been properly paid for all hours worked for the Employer Group, and that all commissions, bonuses and other
compensation due to him has been paid, including his final payroll check for his salary through and including the Separation
Date, which will be paid on the next regularly scheduled payroll date for the pay period including the Separation Date. Any
vested benefits under any of the Employer Group's employee benefit plans are excluded and shall be governed by the terms of
the applicable plan documents and award agreements. The Employee specifically represents, warrants and confirms that he has
not engaged in, and is not aware of, any unlawful conduct in relation to the business of the Employer Group. If any of these
statements are not true, the Employee cannot sign this Agreement and must notify the Employer Group immediately, in writing,
of the statements that are not true. Such notice will not automatically disqualify the Employee from receiving these
benefits, but will require the Employer Group review and consideration.

 

    	 

    	 

    

 

3.Separation Benefits. In
consideration for the Employee's execution, non-revocation of, and compliance with this Agreement, including the waiver and
release of claims in Section 4, the Employer Group agrees to provide the following benefits:

 

(a)Installment payments equal to
the Employee's current salary for a period of five months following the Separation Date, minus all relevant taxes and other withholdings
to be paid every other Thursday starting on the first pay period following the Effective Date. The first installment payment shall
include all amounts that would otherwise have been paid to the Employee during the period beginning on the Separation Date and
ending on the first payment date. Notwithstanding the foregoing, no payment shall be made or begin before the Effective Date of
this Agreement.

 

(b)Health insurance reimbursements
for six months at a rate of $1,000.00 per month.

 

(c)All existing
Employee options for American DG Energy, EuroSite Power, Ilios Dynamics and Tecogen will continue to vest for a period of two
years. For this two year period that options continue to vest, Employee will make himself available to Employer for the
purpose of consultation as outlined in item 7, Cooperation. After one year, should Employee work for a direct competitor to
Employer as defined in Section 6d of this Agreement, options and consulting shall cease to vest upon notification to Employee
by Employer. At that time, contractual exercise terms shall apply.

 

(d)Employee shall keep
his computer, mobile phone and mobile phone number and for a period of one year from the effective date Employer will continue
to pay for Employee’s mobile phone service without changes in plan benefits.

 

(e)Upon the Employee's
signed request, the Employer Group will provide the Employee and/or a prospective employer written confirmation of the Employee's
employment with the Employer Group, including his job titles, dates of employment and salary information.

 

(f)The Employee understands, acknowledges
and agrees that these benefits exceed what he is otherwise entitled to receive upon separation from employment, and that these
benefits are in exchange for executing this Agreement. The Employee further acknowledges no entitlement to any additional payment
or consideration not specifically referenced herein.

 

4.Release.

 

(a)General Release and Waiver of Claims

 

    	2

    	 

    

 

In
exchange for the consideration provided in this Agreement, the Employee and his heirs, executors, representatives, agents, insurers,
administrators, successors and assigns (collectively, the "Releasors") irrevocably and unconditionally fully and
forever waive, release and discharge the Employer Group, including the Employer's/each member of the Employer Group's parents,
subsidiaries, affiliates, predecessors, successors and assigns, and all of their respective officers, directors, employees, shareholders,
trustees, partners and OTHER RELATED PERSONS OR ENTITIES, in their corporate and individual capacities (collectively, the "Releasees")
from any and all claims, demands, actions, causes of actions, obligations, judgments, rights, fees, damages, debts, obligations,
liabilities and expenses (inclusive of attorneys' fees) of any kind whatsoever (collectively, "Claims"), whether
known or unknown, from the beginning of time to the date of the Employee's execution of this Agreement, including, without limitation,
any claims under any federal, state, local or foreign law, that Releasors may have, have ever had or may in the future have arising
out of, or in any way related to the Employee's hire, benefits, employment, termination or separation from employment with the
Employer Group and any actual or alleged act, omission, transaction, practice, conduct, occurrence or other matter, including,
but not limited to (i) any and all claims under Title VII of the Civil Rights Act, as amended, the Americans with Disabilities
Act, as amended, the Family and Medical Leave Act, as amended, the Fair Labor Standards Act, the Equal Pay Act, as amended, the
Employee Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights Act of 1991, as amended,
Section 1981 of U.S.C. Title 42, the Sarbanes-Oxley Act of 2002, as amended, the Worker Adjustment and Retraining Notification
Act, as amended, the National Labor Relations Act, as amended, the Age Discrimination in Employment Act, as amended, the Uniform
Services Employment and Reemployment Rights Act, as amended, the Genetic Information Nondiscrimination Act of 2008, all of their
respective implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise)
that may be legally waived and released; (ii) any and all claims for compensation of any type whatsoever, including but not limited
to claims for salary, wages, bonuses, commissions, incentive compensation, vacation and/or severance; (iii) any and all claims
arising under tort, contract and/or quasi-contract law, including but not limited to claims of breach of an expressed or implied
contract, tortious interference with contract or prospective business advantage, breach of the covenant of good faith and fair
dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness or any
other harm, wrongful or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment, negligent or intentional
infliction of emotional distress; and (iv) any and all claims for monetary or equitable relief, including but not limited to attorneys'
fees, back pay, front pay, reinstatement, experts' fees, medical fees or expenses, costs and disbursements.

 

5.Knowing and Voluntary Acknowledgment. The
Employee specifically agrees and acknowledges that: (i) the Employee has read this Agreement in its entirety and understands
all of its terms; (ii) the Employee has been advised of his right to consult with his attorney prior to executing this
Agreement; (iii) the Employee knowingly, freely and voluntarily assents to all of its terms and conditions including, without
limitation, the waiver, release and covenants contained herein; (iv) the Employee is executing this Agreement, including the
waiver and release, in exchange for good and valuable consideration in addition to anything of value to which he is otherwise
entitled; (v) the Employee understands that the waiver and release in this Agreement is being requested in connection with
the cessation of his employment with the Employer Group.

 

    	3

    	 

    

 

The Employee further acknowledges
that he has been give twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of his choice,
although he may sign it sooner if desired. Further, the Employee acknowledges that he shall have an additional seven (7) days
from the date on which he signs this Agreement to revoke consent to his release by delivering notice of revocation to Gabriel
Parmese at the Employer Group, 45 First Ave, Waltham, MA 02451, before the end of such seven-day period. In the event of such
revocation by the Employee, the Employer Group shall have the option of treating this Agreement as null and void in its entirety.

 

This Agreement shall not become
effective, until the eighth (8th) business day after the Employee and the Employer Group execute this Agreement. Such date shall
be the Effective Date of this Agreement. No payments due to the Employee hereunder shall be made or begin before the Effective
Date.

 

6.Post-termination Obligations and Restrictive Covenants.

 

(a) Acknowledgment

 

The Employee understands and acknowledges
that by virtue of his employment with the Employer Group, he had access to and knowledge of Confidential Information, was in a
position of trust and confidence with the Employer Group, and benefitted from the Employer Group's goodwill. The Employee understands
and acknowledges that the Employer Group invested significant time and expense in developing the Confidential Information and goodwill.

 

The Employee further understands
and acknowledges that the restrictive covenants below are necessary to protect the Employer's legitimate business interests in
its Confidential Information and goodwill and in the Employee's unique, special or extraordinary services. The Employee further
understands and acknowledges that the Employer Group's ability to reserve these for the exclusive knowledge and use of the Employer
Group is of great competitive importance and commercial value to the Employer Group and that the Employer Group would be irreparably
harmed if the Employee violates the restrictive covenants below.

 

    	4

    	 

    

 

(b)Confidential
Information

 

The Employee understands and acknowledges
that during the course of his employment by the Employer, he has had access to and learned about confidential, secret and proprietary
documents, materials and other information, in tangible and intangible form, of and relating to the Employer Group and its businesses
and existing and prospective customers, suppliers, investors and other associated third parties ("Confidential Information").
The Employee further understands and acknowledges that this Confidential Information and the Employer's ability to reserve it for
the exclusive knowledge and use of the Employer Group is of great competitive importance and commercial value to the Employer,
and that improper use or disclosure of the Confidential Information by the Employee might cause the Employer to incur financial
costs, loss of business advantage, liability under confidentiality agreements with third parties, civil damages and criminal penalties.

 

For purposes of this Agreement, Confidential
Information includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic
or any other form or medium, relating directly or indirectly to: the Employer’s business processes, practices, methods, policies,
plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements,
transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer
software, applications, operating systems, software design, web design, work-in-process, databases, manuals, records, articles,
systems, material, sources of material, supplier information, vendor information, financial information, results, accounting information,
accounting records, legal information, marketing information, advertising information, pricing information, credit information,
design information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists,
developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information,
revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs,
inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results,
specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists,
distributor lists, and buyer lists of the Employer Group or its businesses or any existing or prospective customer, supplier, investor
or other associated third party, or of any other person or entity that has entrusted information to the Employer in confidence.

 

The Employee understands that the
above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified
as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the
context and circumstances in which the information is known or used.

 

    	5

    	 

    

 

The
Employee understands and agrees that Confidential Information developed by him in the course of his employment by the Employer
shall be subject to the terms and conditions of this Agreement as if the Employer furnished the same Confidential Information to
the Employee in the first instance. Confidential Information shall not include information that is generally available to and known
by the public at the time of disclosure to the Employee, provided that such disclosure is through no direct or indirect fault of
the Employee or person(s) acting on the Employee's behalf.

 

(c)Disclosure and Use Restrictions

 

The Employee agrees and covenants: (i) to
treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate
or make available Confidential Information, or allow it to be disclosed, published, communicated or made available, in whole or
part, to any entity or person whatsoever (including other employees of the Employer Group) not having a need to know and authority
to know and use the Confidential Information in connection with the business of the Employer Group and, in any event, not to anyone
outside of the direct employ of the Employer Group except as required in the performance of any of the Employee's remaining authorized
employment duties to the Employer and only after execution of a confidentiality agreement by the third party with whom Confidential
Information will be shared or with the prior consent of an authorized officer acting on behalf of the Employer Group in each instance
(and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to
access or use any Confidential Information, and not to copy any documents, records, files, media or other resources containing
any Confidential Information, or remove any such documents, records, files, media or other resources from the premises or control
of the Employer Group, except as required in the performance of any of the Employee's remaining authorized employment duties to
the Employer or with the prior consent of an authorized officer acting on behalf of the Employer Group in each instance (and then,
such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed
to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid
order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the
extent of disclosure required by such law, regulation or order. The Employee shall promptly provide written notice of any such
order to an authorized officer of the Employer Group.

 

The Employee understands and acknowledges
that his obligations under this Agreement with regard to any particular Confidential Information shall commence immediately and
shall continue during and after his employment by the Employer until such time as such Confidential Information has become public
knowledge other than as a result of the Employee's breach of this Agreement or breach by those acting in concert with the Employee
or on the Employee's behalf.

 

    	6

    	 

    

 

(d)Non-competition

 

Because of Employer Group's legitimate business
interest as described herein and the good and valuable consideration offered to the Employee, for the period of six months, beginning
on the last day of the Employee's employment with the Employer Group, the Employee agrees and covenants not to engage in any CHP
Competitive Activity (combined heat and power) with turn-key or onsite applications that require CHP systems of 200 kWh or less.

 

For purposes of this non-compete clause, "Competitive
Activity" means to, directly or indirectly, in whole or in part, engage in, provide services to or otherwise participate
in, whether as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, director, stockholder, officer,
volunteer, intern or any other similar capacity, any entity whose “Primary Business” is selling cogeneration
equipment specified at 200 kWh’s or less. Primary Business means business from which greater than 50% of a company’s
revenue is derived.

 

(e)Non-solicitation of Employees

 

The Employee understands and acknowledges
that the Employer has expended and continues to expend significant time and expense in recruiting and training its employees and
that the loss of employees would cause significant and irreparable harm to the Employer. The Employee agrees and covenants that
he shall not, for a period of six (6) months beginning on Employee’s last day of employment with the Employer directly or
indirectly solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee who has
been an employee of the Employer Group during the one (1) year period prior to the Employee’s last day of Employment.

 

(f)Non-solicitation of Customers

 

The Employee understands and acknowledges
that the Employer has expended and continues to expend significant time and expense in developing customer relationships, customer
information and goodwill, and that because of the Employee's experience with and relationship to the Employer Group, he/she has
had access to and learned about much or all of the Employer Group's customer information. Customer Information includes, but is
not limited to, names, phone numbers, addresses, e-mail addresses, order history, order preferences, chain of command, pricing
information and other information identifying facts and circumstances specific to the customer and relevant to sales and services.

 

The Employee understands and
acknowledges that loss of this customer relationship and/or goodwill will cause significant and irreparable harm to the
Employer. The Employee agrees and covenants that, for a period of six months beginning on the last day of the Employee's
employment with the Employer Group, not to directly or indirectly solicit, Group's current and former customers for purposes
of offering or accepting goods or services competitive with those offered by the Employer Group as defined in Section 6d of
this Agreement.

 

This restriction shall only apply to each of the
following:

 

    	7

    	 

    

 

(i)customers the Employee contacted
in any way during the 1 year before the last day of the Employee's employment with the Employer;

 

(ii)customers about
whom the Employee has trade secret or Confidential Information;

 

(iii)customers who became
customers during the Employee's employment with the Employer Group; and

 

(iv)customers about
whom the Employee has information that is not available publicly.

 

7.Cooperation. The parties agree that certain
matters in which the Employee has been involved during his employment may necessitate the Employee's cooperation with the Employer
in the future. Accordingly, for a period of five months following the Separation Date, to the extent reasonably requested by the
Employer, the Employee shall cooperate with the Employer in connection with matters arising out of the Employee's service to the
Employer; provided that the Employer shall make reasonable efforts to minimize disruption of the Employee's other activities. Employer
shall reimburse the Employee for reasonable expenses incurred in connection with such cooperation.

 

8.Consulting. Employee and Employer agree to
a consulting agreement for two years from the effective date. For consulting services over a two year period, the Employer will
pay Employee at a rate of $150.00 per hour. After the first year from the effective date, should Employee work for a direct competitor,
as defined in Paragraph 6(d) hereof Employer shall have no further obligation to utilize Employee’s services as a consultant.

 

Non-disparagement. The Employee agrees
and covenants that he shall not at any time make, publish or communicate to any person or entity or in any public forum any defamatory
or disparaging remarks, comments or statements concerning the Employer Group or its businesses, or any of its employees or officers,
and existing and prospective customers, suppliers, investors and other associated third parties. Employer agrees and covenants
that neither it nor members of its senior leadership team or board of directors shall at any time make, publish or communicate
to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Employee.

 

This Section does not, in any way,
restrict or impede either party from exercising protected rights to the extent that such rights cannot be waived by agreement
or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an
authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order.
The parties shall promptly provide written notice of any such order to the other .

 

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10.Confidentiality. The parties agree
and covenant that they shall not disclose any of the terms of or amount paid under this Agreement or the negotiation thereof to
any individual or entity; provided, however, that the Employee will not be prohibited from making disclosures to his attorney,
tax advisors and/or immediate family members, or as may be required by law.

 

This Section does not, in any
way, restrict or impede either party from exercising protected rights to the extent that such rights cannot be waived by agreement
or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized
government agency, provided that such compliance does not exceed that required by the law, regulation or order. The parties shall
promptly provide written notice of any such order to the other.

 

11.Remedies. In the event of a breach or threatened
breach by either party of any of the provisions of this Agreement, the aggrieved party shall be entitled to seek, in addition to
other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach
from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford
an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall
be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

 

In the event of a material breach
by either party of any of the provisions of this Agreement, the parties consent and agree that the aggrieved party shall be entitled
to seek, in addition to other available remedies, an award for liquidated damages for each material breach (the "Liquidated
Damages"). The parties acknowledge and agree that the harm caused by a material breach would be impossible or very difficult
to accurately estimate at the time of the breach and that the Liquidated Damages are a reasonable estimate of the anticipated or
actual harm that might arise from a material breach.

 

Should the Employee fail to abide by any
of the terms of this Agreement or post-termination obligations contained herein, or if he revokes the release contained in Section
4 within the seven-day revocation period, the Employer may, in addition to any other remedies it may have, reclaim any amounts
paid to the Employee under the provisions of this Agreement or terminate any benefits or payments that are later due under this
Agreement, without waiving the releases provided herein.

 

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12.Successors
and Assigns.

 

(a)Assignment by the Employer Group

 

The Employer Group may freely assign
this Agreement at any time. This Agreement shall inure to the benefit of the Employer Group and its successors and assigns.

 

(b)No Assignment by the Employee

 

The Employee may not assign this
Agreement or any part hereof. However, any benefit of this Agreement shall inure to the benefit of Employee’s estate. Any
purported assignment by the Employee shall be null and void from the initial date of purported assignment.

 

13.Arbitration. The parties agree that any
dispute, controversy or claim arising out of or related to the Employee's employment with the Employer, this Agreement,
including the validity of this arbitration clause, or any breach of this Agreement shall be submitted to and decided by
binding arbitration in Boston Massachusetts. Arbitration shall be administered under the rules of the American Arbitration
Association and any requirements imposed by MA law. Each party shall pay its own costs of arbitration. Any arbitral award
determination shall be final and binding upon the Parties and may be entered as a judgment in a court of competent
jurisdiction.

 

14.Governing Law: Jurisdiction and Venue. This
Agreement, for all purposes, shall be construed in accordance with the laws of Massachusetts without regard to
conflicts-of-law principles. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought
only in any state or federal court located in the state of Massachusetts, county of Suffolk. The Parties hereby irrevocably
submit to the non exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any
such action or proceeding in such venue.

 

15.Entire Agreement. Unless specifically
provided herein, this Agreement contains all the understandings and representations between the Employee and the Employer
Group pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements,
representations and warranties, both written and oral, with respect to such subject matter.

 

The Parties mutually agree that the Agreement
can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.

 

16.Modification and Waiver. No provision of
this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the
Employee and by Benjamin Locke of the Employer. No waiver by either of the Parties of any breach by the other party hereto of
any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any
similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay
by either of the Parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any
other or further exercise thereof or the exercise of any other such right, power or privilege.

 

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17.Severability. Should any provision
of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement
shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement,
the balance of which shall continue to be binding upon the Parties with any such modification to become a part hereof and treated
as though originally set forth in this Agreement.

 

The Parties further agree that
any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable
provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending
provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out
the intent and agreement of the Parties as embodied herein to the maximum extent permitted by law.

 

The Parties expressly agree that
this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one
or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided
above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

 

18.Captions. Captions and headings of
the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed
by reference to the caption or heading of any section or paragraph.

 

19.Counterparts. This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the
same instrument.

 

20.Non-admission. Nothing in this Agreement
shall be construed as an admission of wrongdoing or liability on the part of the Employer Group.

 

21.Notices. All notices under this Agreement
must be given in writing by regular mail at the addresses indicated in this Agreement or any other address designated in writing
by either party. When providing written notice to the Employer

 

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22.Tolling. Should the Employee violate
any of the terms of the post-termination obligations articulated herein, the obligation at issue will run from the first date on
which the Employee ceases to be in violation of such obligation.

 

23.Attorneys' Fees. Should the Employee
breach any of the terms of this Agreement or the post-termination obligations articulated referenced herein, to the extent authorized
by Massachusetts law, the Employee will be responsible for payment of all reasonable attorneys' fees and costs that Employer incurred
in the course of enforcing the terms of the Agreement, including demonstrating the existence of a breach and any other contract
enforcement efforts.

 

24.Section 409A. This Agreement is intended to comply
with Section 409A of the Internal Revenue Code of 1986, as amended (Section 409A) or an exemption thereunder and shall be construed
and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under
this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments
under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service
or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each
installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement
upon a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding
the foregoing, the Employer makes no representations that the payments and benefits provided under this Agreement comply with Section
409A and in no event shall the Employer be liable for all or any portion of any taxes, penalties, interest or other expenses that
may be incurred by the Employee on account of non-compliance with Section 409A.

 

25.Acknowledgment of Full Understanding. THE EMPLOYEE
ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES
AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.
THE EMPLOYEE FURTHER ACKNOWLEDGES THAT HIS SIGNATURE BELOW IS AN AGREEMENT TO RELEASE AMERICAN DG ENERGY INC. FROM ANY AND ALL
CLAIMS.

 

SIGNATURE
PAGE FOLLOWS

 

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IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Execution Date above.

 

	 	 	 	AMERICAN DG ENERGY INC. 

AND EMPLOYER GROUP
	 	 	 	 	 
	 	 	 	By	/s/ Benjamin Locke
	 	 	 	 	 
	 	 	 	Name: Benjamin Locke
	 	 	 	Title: Co-CEO
	Signature:	/s/ Barry Sanders	 	 	 
	 	 	 	 	 
	Print Name: Barry Sanders	 	 

 

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