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Unassociated Document

    THIS
      WARRANT AND ANY SHARES OF COMMON STOCK ISSUED UPON EXERCISE HEREOF HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED
      FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
      DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE AFFECTED WITHOUT AN
      EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL THAT
      SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED.

    

    

    

    TITAN
      ENERGY WORLDWIDE, INC.

    

    
 

     WARRANT
      TO PURCHASE

    

    _______
      SHARES

    

    OF
      COMMON STOCK

    

    (SUBJECT
      TO ADJUSTMENT)

    

    (Void
      after October 31, 2012)

    

    

    

    _____________

    

    

    This
      certifies that for value, __________________ or registered assigns (the
“Holder”), is
      entitled, subject to the terms set forth below, at any time from and after
      _____________ (the “Original
      Issuance Date”) and
      before 5:00 p.m., Eastern Time, on _____________ (the “Expiration
      Date”), to
      purchase from Titan
      Energy Worldwide, Inc., a Nevada
      corporation (the “Company”),
      ____________________ (_______)
      shares
      (subject to adjustment as described herein), of common stock, par value $0.0001
      per share, of the Company (the “Common
      Stock”), upon
      surrender hereof, at the principal office of the Company referred to below,
      with
      a duly executed subscription form in the form attached hereto as Exhibit
      A and
      simultaneous payment therefor in lawful, immediately available money of the
      United States or otherwise as hereinafter provided, at an initial exercise
      price
      per share of $_____ (the
      “Purchase
      Price”). The
      Purchase Price is subject to further adjustment as provided in Section
      3 below.
      The term “Common
      Stock”
      shall
      include, unless the context otherwise requires, the stock and other securities
      and property at the time receivable upon the exercise of this Warrant. The
      term
“Warrant,”
      as
      used
      herein, shall mean this Warrant and any other Warrants delivered in substitution
      or exchange therefor as provided herein.

    

    
      
        
        

      

      
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    1. Exercise.
      This
      Warrant may be exercised at any time or from time to time from and after the
      Original Issuance Date and before 5:00 p.m., Eastern Time, on _____________,
      unless such Warrant is terminated pursuant to Section 6, below, on any business
      day, for the full number of shares of Common Stock called for hereby, by
      surrendering it at the principal office of the Company, at 8880 Rio San Diego
      Drive, 8th
      Floor,
      San Diego, CA 92108, with the subscription form duly executed, together with
      payment in an amount equal to (a) the number of shares of Common Stock called
      for on the face of this Warrant, multiplied (b) by the Purchase Price. Payment
      of the Purchase Price may be made at Holder’s choosing either: (1) by payment in
      immediately available funds; or (2) in lieu of any cash payment, if this Warrant
      is exercised on a date when a Registration Statement (as defined in the
      Registration Rights Agreement), covering the resale of the shares of Common
      Stock issuable upon exercise of this Warrant has not been declared effective
      by
      the Securities and Exchange Commission (the “Commission”), or
      is no
      longer in effect, in exchange for the number of shares of Common Stock equal
      to
      the product of (x) the number of shares to which the Warrants are being
      exercised multiplied by (y) a fraction, the numerator of which is the Purchase
      Price and the denominator of which is the Fair Market Value (as defined below).
      This Warrant may be exercised for less than the full number of shares of Common
      Stock at the time called for hereby, except that the number of shares receivable
      upon the exercise of this Warrant as a whole, and the sum payable upon the
      exercise of this Warrant as a whole, shall be proportionately reduced. Upon
      a
      partial exercise of this Warrant in accordance with the terms hereof, this
      Warrant shall be surrendered, and a new Warrant of the same tenor and for the
      purchase of the number of such shares not purchased upon such exercise shall
      be
      issued by the Company to Holder without any charge therefor. A Warrant shall
      be
      deemed to have been exercised immediately prior to the close of business on
      the
      date of its surrender for exercise as provided above, and the person entitled
      to
      receive the shares of Common Stock issuable upon such exercise shall be treated
      for all purposes as the holder of such shares of record as of the close of
      business on such date. Within two (2) business days after such date, the Company
      shall issue and deliver to the person or persons entitled to receive the same
      a
      certificate or certificates for the number of full shares of Common Stock
      issuable upon such exercise, together with cash, in lieu of any fraction of
      a
      share, equal to such fraction of the then Fair Market Value on the date of
      exercise of one full share of Common Stock.

    

    “Fair
      Market Value”
      shall
      mean, as of any date: (i) if shares of the Common Stock are listed on a national
      securities exchange, the average of the closing prices as reported for composite
      transactions during the ten (10) consecutive trading days preceding the trading
      day immediately prior to such date or, if no sale occurred on a trading day,
      then the mean between the closing bid and asked prices on such exchange on
      such
      trading day; (ii) if shares of the Common Stock are not so listed but are traded
      on the NASDAQ National Market (“NNM”), the average of the closing prices as
      reported on the NNM during the ten (10) consecutive trading days preceding
      the
      trading day immediately prior to such date or, if no sale occurred on a trading
      day, then the mean between the highest bid and lowest asked prices as of the
      close of business on such trading day, as reported on the NINM; or if
      applicable, the Nasdaq Capital Market (“NCM”), (iii) if not then included for
      quotation on the NNM or the NCM, the average of the highest reported bid and
      lowest reported asked prices as reported by the OTC Bulletin Board of the
      National Quotation Bureau, as the case may be; or (iv) if the shares of the
      Common Stock are not then publicly traded, the fair market price of the Common
      Stock as determined in good faith by the independent members of the Board of
      Directors of the Company and the Holders of all Warrants.

    

    
      
        
        

      

      
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    2. Shares
      Fully Paid; Payment of Taxes.
      All
      shares of Common Stock issued upon the exercise of this Warrant shall be validly
      issued, fully paid and non-assessable, and the Company shall pay all taxes
      and
      other governmental charges (other than income taxes to the holder) that may
      be
      imposed in respect of the issue or delivery thereof.

    

    3. Transfer
      and Exchange.
      (a)
      Neither this Warrant nor the Common Stock to be issued upon exercise hereof
      (the
“Warrant
      Shares”)
      have
      been registered under the Act or any state securities laws (“Blue
      Sky Laws”). This
      Warrant has been acquired for investment purposes and not with a view to
      distribution or resale and may not be sold or otherwise transferred without:
      (i)
      an effective registration statement for such Warrant under the Act and such
      applicable Blue Sky Laws; or (ii) an opinion of counsel reasonably satisfactory
      to the Company that registration is not required under the Act or under any
      applicable Blue Sky Laws.

    

    A. Upon
      compliance with applicable federal and state securities laws as set forth in
      Section
      3(a),
      above,
      this Warrant and all rights hereunder are transferable, in whole or in part,
      on
      the books of the Company maintained for such purpose at its Principal Office
      by
      the Holder in person or by duly authorized attorney, upon surrender of this
      Warrant together with a completed and executed assignment form in the form
      attached hereto as Exhibit
      B,
      and
      payment of any necessary transfer tax or other governmental charge imposed
      upon
      such transfer. Upon any partial transfer, the Company will issue and deliver
      to
      the assignee a new Warrant with respect to the shares of Common Stock for which
      it is exercisable that have been transferred, and will deliver to the Holder
      a
      new Warrant or Warrants with respect to the shares of Common Stock not so
      transferred. A Warrant may be transferred only by the procedure set forth
      herein. No transfer shall be effective until such transfer is recorded on the
      books of the Company, provided that such transfer is recorded promptly by the
      Company, and until such transfer on such books, the Company shall treat the
      registered Holder hereof as the owner of the Warrant for all
      purposes.

    

    B. This
      Warrant is exchangeable at the Principal Office for two or more new Warrants,
      each in the form of this Warrant, to purchase the same aggregate number of
      shares of Common Stock, each new Warrant to represent the right to purchase
      such
      number of shares as the Holder shall designate at the time of such exchange,
      but
      which shall not exceed the total number of shares for which this Warrant may
      be
      from time to time exercisable.

    

    C. Transfer
      of the Warrant Shares issued upon the exercise of this Warrant shall be
      restricted in the same manner and to the same extent as the Warrant, and the
      certificates representing such Warrant Shares shall bear substantially the
      following legend, until such Warrant Shares have been registered under the
      Act
      or may be removed as otherwise permitted under the Act:

    
      
        
        

      

      
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    “THE
      SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
      STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION
      STATEMENT UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES LAWS SHALL HAVE
      BECOME EFFECTIVE WITH REGARD

    THERETO,
      OR (ii) IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY,
      REGISTRATION UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.”

    

    D. The
      Holder and the Company agree to execute such other documents and instruments
      as
      counsel to the Company deems necessary to effect the compliance of the issuance
      of this Warrant and any Warrant Shares issued upon exercise hereof with
      applicable federal and state securities laws, including compliance with
      applicable exemptions from the registration requirements of such
      laws.

    

    4. Anti-Dilution
      Provisions.
      The
      Purchase Price in effect at any time and the number and kind of securities
      issuable upon conversion of this Warrant shall be subject to adjustment from
      time to time upon the happening of certain events as follows:

    

    A. Adjustment
      for Stock Splits and Combinations.
      If the
      Company at any time or from time to time on or after the date of Warrant
      issuance (the “Original
      Issuance Date”) effects
      a
      subdivision of the outstanding Common Stock, the Purchase Price then in effect
      immediately before that subdivision shall be proportionately decreased, and
      conversely, if the Company at any time or from time to time on or after the
      Original Issuance Date combines the outstanding shares of Common Stock into
      a
      smaller number of shares, the Purchase Price then in effect immediately before
      the combination shall be proportionately increased. Any adjustment under this
      Section
      4(A) shall
      become effective at the close of business on the date the subdivision or
      combination becomes effective.

    

    B. Adjustment
      for Certain Dividends and Distributions.
      If the
      Company at any time or from time to time on or after the Original Issuance
      Date
      makes or fixes a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in additional
      shares of Common Stock, then and in each such event the Purchase Price then
      in
      effect shall be decreased as of the time of such issuance or, in the event
      such
      record date is fixed, as of the close of business on such record date, by
      multiplying the Purchase Price then in effect by a fraction (1) the numerator
      of
      which is the total number of shares of Common Stock issued and outstanding
      immediately prior to the time of such issuance or the close of business on
      such
      record date and (2) the denominator of which shall be the total number of shares
      of Common Stock issued and outstanding immediately prior to the time of such
      issuance or the close of business on such record date plus the number of shares
      of Common Stock issuable in payment of such dividend or distribution;
provided, however,
      that if
      such record date is fixed and such dividend is not fully paid or if such
      distribution is not fully made on the date fixed therefor, the Purchase Price
      shall be recomputed accordingly as of the close of business on such record
      date
      and thereafter the Purchase Price shall be adjusted pursuant to this
Section
      4(B) as
      of the
      time of actual payment of such dividends or distributions.

    

    
      
        
        

      

      
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    C. Adjustments
      for Other Dividends and Distributions.
      In the
      event the Company at any time or from time to time on or after the Original
      Issuance Date makes, or fixes a record date for the determination of holders
      of
      Common Stock entitled to receive, a dividend or other distribution payable
      in
      securities of the Company other than shares of Common Stock, then and in each
      such event provision shall be made so that the Holders of Warrants shall receive
      upon exercise thereof, in addition to the number of shares of Common Stock
      receivable thereupon, the amount of securities of the Company which they would
      have received had their Warrants been exercised into Common Stock on the date
      of
      such event and had they thereafter, during the period from the date of such
      event to and including the conversion date, retained such securities receivable
      by them as aforesaid during such period, subject to all other adjustments called
      for during such period under this Section
      4 with
      respect to the rights of the Holders of the Warrants.

    

    D. Adjustment
      for Reclassification, Exchange and Substitution.
      In the
      event that at any time or from time to time on or after the Original Issuance
      Date, the Common Stock issuable upon the exercise of the Warrants is changed
      into the same or a different number of shares of any class or classes of stock,
      whether by recapitalization, reclassification or otherwise (other than a
      subdivision or combination of shares or stock dividend or a reorganization,
      merger, consolidation or sale of assets, provided for elsewhere in this
Section
      4), then
      and
      in any such event each Holder of Warrants shall have the right thereafter to
      exercise such Warrant to receive the kind and amount of stock and other
      securities and property receivable upon such recapitalization, reclassification
      or other change, by holders of the maximum number of shares of Common Stock
      for
      which such Warrants could have been exercised immediately prior to such
      recapitalization, reclassification or change, all subject to further adjustment
      as provided herein.

    

    E. Recapitalization,
      Reorganization, Reclassification, Consolidation, Merger or Sale.

    

    (i) In
      case
      the Company after the Original Issuance Date shall do any of the following
      (each, a “Triggering
      Event”):
      (a)
      consolidate or merge with or into any other individual or entity (“Person”) and
      the Company shall not be the continuing or surviving corporation of such
      consolidation or merger, or (b) permit any other Person to consolidate with
      or
      merge into the Company and the Company shall be the continuing or surviving
      Person but, in connection with such consolidation or merger, any common or
      preferred stock (“Capital Stock”) of the Company shall be changed into or
      exchanged for Securities of any other Person or cash or any other property,
      or
      (c) transfer all or substantially all of its properties or assets to any other
      Person, or (d) effect a capital reorganization or reclassification of its
      Capital Stock, then, and in the case of each such Triggering Event, proper
      provision shall be made to the Exercise Price and the number of shares of
      Warrant Shares that may be purchased upon exercise of this Warrant so that,
      upon
      the basis and the terms and in the manner provided in this Warrant, the Holder
      of this Warrant shall be entitled upon the exercise hereof at any time after
      the
      consummation of such Triggering Event, to the extent this Warrant is not
      exercised prior to such Triggering Event, to receive at the Exercise Price
      as
      adjusted to take into account the consummation of such Triggering Event, in
      lieu
      of the Common Stock issuable upon such exercise of this Warrant prior to such
      Triggering Event, the Securities, cash and property to which such Holder would
      have been entitled upon the consummation of such Triggering Event if such Holder
      had exercised the rights represented by this Warrant immediately prior thereto
      (including the right of a shareholder to elect the type of consideration it
      will
      receive upon a Triggering Event), subject to adjustments (subsequent to such
      corporate action) as nearly equivalent as possible to the adjustments provided
      for elsewhere in this Section 4, and the Exercise Price shall be adjusted to
      equal the product of (A) the closing price of the common stock of the continuing
      or surviving corporation as a result of such Triggering Event as of the date
      immediately preceding the date of the consummation of such Triggering Event
      multiplied by (B) the quotient of (i) the Exercise Price divided by (ii) the
      per
      share Fair Market Value of the Common Stock as of the date immediately preceding
      the Original Issuance Date; provided, however,
      the
      Holder at its option may elect to receive an amount in cash equal to the lesser
      of (a) the value of this Warrant calculated in accordance with the Black-Scholes
      formula; and (b) $1.00 (subject to adjustment in the event the Company affects
      a
      stock split) per Warrant Share. Immediately upon the occurrence of a Triggering
      Event, the Company shall notify the Holder in writing of such Triggering Event
      and provide the calculations in determining the number of shares of Warrant
      Shares issuable upon exercise of the new warrant and the adjusted Exercise
      Price. Upon the Holder’s request, the continuing or surviving corporation as a
      result of such Triggering Event shall issue to the Holder a new warrant of
      like
      tenor evidencing the right to purchase the adjusted number of shares of Warrant
      Shares and the adjusted Exercise Price pursuant to the terms and provisions
      of
      this Section 4(E)(i). Notwithstanding the foregoing to the contrary, this
      Section 4(E)(i) shall only apply if the surviving entity pursuant to any such
      Triggering Event is a company that has a class of equity securities registered
      pursuant to the Securities Exchange Act of 1933, as amended, and its common
      stock is listed or quoted on a national securities exchange, national automated
      quotation system or the OTC Bulletin Board. In the event that the surviving
      entity pursuant to any such Triggering Event is not a public company that is
      registered pursuant to the Securities Exchange Act of 1933, as amended, or
      its
      common stock is not listed or quoted on a national securities exchange, national
      automated quotation system or the OTC Bulletin Board, then the Holder shall
      have
      the right to demand that the Company pay to the Holder an amount in cash equal
      to the value of this Warrant calculated in accordance with the Black-Scholes
      formula.

    

    (ii) In
      the
      event that the Holder has elected not to exercise this Warrant prior to the
      consummation of a Triggering Event and has also elected not to receive an amount
      in cash equal to the value of this Warrant calculated in accordance with the
      Black-Scholes formula pursuant to the provisions of Section 4(E)(i) above (and
      subject to the limit described in Section 4(E)(i), above), so long as the
      surviving entity pursuant to any Triggering Event is a company that has a class
      of equity securities registered pursuant to the Securities Exchange Act of
      1933,
      as amended, and its common stock is listed or quoted on a national securities
      exchange, national automated quotation system or the OTC Bulletin Board, the
      surviving entity and/or each Person (other than the Company) which may be
      required to deliver any Securities, cash or property upon the exercise of this
      Warrant as provided herein shall assume, by written instrument delivered to,
      and
      reasonably satisfactory to, the Holder of this Warrant, (A) the obligations
      of
      the Company under this Warrant (and if the Company shall survive the
      consummation of such Triggering Event, such assumption shall be in addition
      to,
      and shall not release the Company from, any continuing obligations of the
      Company under this Warrant) and (B) the obligation to deliver to such Holder
      such Securities, cash or property as, in accordance with the foregoing
      provisions of this subsection (a), such Holder shall be entitled to receive,
      and
      the surviving entity and/or each such Person shall have similarly delivered
      to
      such Holder an opinion of counsel for the surviving entity and/or each such
      Person, which counsel shall be reasonably satisfactory to such Holder, or in
      the
      alternative, a written acknowledgement executed by the President or Chief
      Financial Officer of the Company, stating that this Warrant shall thereafter
      continue in full force and effect and the terms hereof (including, without
      limitation, all of the provisions of this subsection (a) shall be applicable
      to
      the Securities, cash or property which the surviving entity and/or each such
      Person may be required to deliver upon any exercise of this Warrant or the
      exercise of any rights pursuant hereto.

    

    F. Sale
      of Shares Below Purchase Price:

    

    (i) If
      at any
      time or from time to time following the Original Issuance Date, the Company
      issues or sells, or is deemed by the express provisions of this Section 4(F)
      to
      have issued or sold, Additional Shares of Common Stock (as hereinafter defined),
      other than as a dividend or other distribution on any class of stock and other
      than upon a subdivision or combination of shares of Common Stock, in either
      case
      as provided in Section 4(A) above, for an Effective Price (as hereinafter
      defined) less than the then existing Purchase Price, then and in each such
      case
      the then existing Purchase Price shall be reduced, as of the opening of business
      on the date of such issue or sale, to a price equal to the Effective Price
      for
      such Additional Shares of Common Stock.

    
      
        
        

      

      
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    (ii) For
      the
      purpose of making any adjustment required under Section
      4(F), the
      consideration received by the Company for any issue or sale of securities shall
      (I) to the extent it consists of cash be computed at the amount of cash received
      by the Company, (II) to the extent it consists of property other than cash,
      be
      computed at the fair value of that property as determined in good faith by
      the
      board of directors of the Company (the “Board”), (III)
      if
      Additional Shares of Common Stock, Convertible Securities (as hereinafter
      defined) or rights or options to purchase either Additional Shares of Common
      Stock or Convertible Securities are issued or sold together with other stock
      or
      securities or other assets of the Company for a consideration which covers
      both,
      be computed as the portion of the consideration so received that may be
      reasonably determined in good faith by the Board to be allocable to such
      Additional Shares of Common Stock, Convertible Securities or rights or options,
      and (IV) be computed after reduction for all expenses payable by the Company
      in
      connection with such issue or sale.

    

    (iii)
       For
      the
      purpose of the adjustment required under Section
      4(F), if
      the
      Company issues or sells any rights, warrants or options for the purchase of,
      or
      stock or other securities convertible into or exchangeable for, Additional
      Shares of Common Stock (such convertible or exchangeable stock or securities
      being hereinafter referred to as “Convertible
      Securities”)
      and if
      the Effective Price of such Additional Shares of Common Stock is less than
      the
      Purchase Price then in effect, then in each case the Company shall be deemed
      to
      have issued at the time of the issuance of such rights, warrants, options or
      Convertible Securities the maximum number of Additional Shares of Common Stock
      issuable upon exercise, conversion or exchange thereof and to have received
      as
      consideration for the issuance of such shares an amount equal to the total
      amount of the consideration, if any, received by the Company for the issuance
      of
      such rights, warrants, options or Convertible Securities, plus, in the case
      of
      such rights, warrants or options, the minimum amounts of consideration, if
      any,
      payable to the Company upon the exercise of such rights, warrants or options,
      plus, in the case of Convertible Securities, the minimum amounts of
      consideration, if any, payable to the Company (other than by cancellation of
      liabilities or obligations evidenced by such Convertible Securities) upon the
      conversion or exchange thereof. No further adjustment of the Purchase Price,
      adjusted upon the issuance of such rights, warrants, options or Convertible
      Securities, shall be made as a result of the actual issuance of Additional
      Shares of Common Stock on the exercise of any such rights, warrants or options
      or the conversion or exchange of any such Convertible Securities. If any such
      rights or options or the conversion or exchange privilege represented by any
      such Convertible Securities shall expire without having been exercised, the
      Purchase Price adjusted upon the issuance of such rights, warrants, options
      or
      Convertible Securities shall be readjusted to the Purchase Price which would
      have been in effect had an adjustment been made on the basis that the only
      Additional Shares of Common Stock so issued were the Additional Shares of Common
      Stock, if any, actually issued or sold on the exercise of such rights, warrants,
      or options or rights of conversion or exchange of such Convertible Securities,
      and such Additional Shares of Common Stock, if any, were issued or sold for
      the
      consideration actually received by the Company upon such exercise, plus the
      consideration, if any, actually received by the Company for the granting of
      all
      such rights, warrants, or options, whether or not exercised, plus the
      consideration received for issuing or selling the Convertible Securities
      actually converted or exchanged, plus the consideration, if any, actually
      received by the Company 

    

    (other
      than by cancellation of liabilities or obligations evidenced by such Convertible
      Securities) on the conversion or exchange of such Convertible
      Securities.

    
      
        
        

      

      
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    (iv)
       For
      the
      purpose of the adjustment required under Section
      4(F), if
      the
      Company issues or sells, or is deemed by the express provisions of this
Section
      4 to
      have
      issued or sold, any rights or options for the purchase of Convertible Securities
      and if the Effective Price of the Additional Shares of Common Stock underlying
      such Convertible Securities is less than the Purchase Price then in effect,
      then
      in each such case the Company shall be deemed to have issued at the time of
      the
      issuance of such rights or options the maximum number of Additional Shares
      of
      Common Stock issuable upon conversion or exchange of the total amount of
      Convertible Securities covered by such rights or options and to have received
      as
      consideration for the issuance of such Additional Shares of Common Stock an
      amount equal to the amount of consideration, if any, received by the Company
      for
      the issuance of such rights, warrants or options, plus the minimum amounts
      of
      consideration, if any, payable to the Company upon the exercise of such rights,
      warrants or options, plus the minimum amount of consideration, if any, payable
      to the Company (other than by cancellation of liabilities or obligations
      evidenced by such Convertible Securities) upon the conversion or exchange of
      such Convertible Securities. No further adjustment of the Purchase Price,
      adjusted upon the issuance of such rights, warrants or options, shall be made as
      a result of the actual issuance of the Convertible Securities upon the exercise
      of such rights, warrants or options or upon the actual issuance of Additional
      Shares of Common Stock upon the conversion or exchange of such Convertible
      Securities. The provisions of paragraph (iii) above for the readjustment of
      the
      Purchase Price upon the expiration of rights, warrants or options or the rights
      of conversion or exchange of Convertible Securities shall apply mutatis mutandis
      to the
      rights, warrants options and Convertible Securities referred to in this
      paragraph (iv).

    

    (v) “Additional
      Shares of Common Stock”
      shall
      mean all shares of Common Stock (or any debt or equity securities convertible
      or
      exercisable into Common Stock) issued by the Company on or after the Original
      Issuance Date, whether or not subsequently reacquired or retired by the Company,
      other than (I) the Warrant Shares, (II) the shares of Common Stock issuable
      upon
      conversion of the Note, (III) shares of Common Stock issuable upon exercise
      of
      warrants, options and convertible securities outstanding as of the Original
      Issuance Date (provided that the terms of such warrants, options and convertible
      securities are not modified after the Original Issuance Date to adjust the
      exercise price), (IV) shares of Common Stock issued pursuant to any event for
      which adjustment is made to the Purchase Price under Section
      3 hereof
      or
      to the exercise price under the anti-dilution provisions of any securities
      outstanding as of the Original Issuance Date (including the Notes), or (V)
      up to
      3,800,000 shares that may be issued pursuant to a stock option plan, provided
      that such issuance is approved by the Board. The “Effective
      Price”
      of
      Additional Shares of Common Stock shall mean the quotient determined by dividing
      the total number of Additional Shares of Common Stock issued or sold, or deemed
      to have been issued or sold by the Company under this Section
      4(F),
      into
      the
      aggregate consideration received, or deemed to have been received, by the
      Company for such issue under this Section
      4(F),
      for
      such
      Additional Shares of Common Stock.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (vi)
       Other
      than a reduction pursuant to its applicable anti-dilution provisions, any
      reduction in the conversion price of any Convertible Security, whether
      outstanding on the Original Issuance Date or thereafter, or the price of any
      option, warrant or right to purchase Common Stock or any Convertible Security
      (whether such option, warrant or right is outstanding on the Original Issuance
      Date or thereafter), to an Effective Price less than the current Purchase Price,
      shall be deemed to be an issuance of such Convertible Security and all such
      options, warrants or rights at such Effective Price, and the provisions of
      Sections
      4(F)(iii), (iv)
      and
(v) shall
      apply thereto mutatis mutandis.

    

    (vii)
       Any
      time
      an adjustment is made to the Purchase Price pursuant to Section
      4(F), a
      corresponding proportionate change shall be made to the number of shares of
      Common Stock issuable upon conversion of this Warrant.

    

    G. No
      Adjustments in Certain Circumstances.
      No
      adjustment in the Purchase Price shall be required unless such adjustment would
      require an increase or decrease of at least one ($0.01) cent in such price;
      provided, however,
      that
      any adjustments which by reason of this Section
      4(G)
      are
      not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment required to be made hereunder. All calculations under
      this
Section
      4(G) shall
      be
      made to the nearest cent or to the nearest one-hundredth of a share, as the
      case
      may be.

    

    5. Notices
      of Record Date.
      In
      case:

    

    A. the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of the Warrants) for
      the
      purpose of entitling them to receive any dividend or other distribution, or
      any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities, or to receive any other right, or

    

    B. of
      any
      capital reorganization of the Company, any reclassification of the capital
      stock
      of the Company, any consolidation or merger of the Company with or into another
      corporation, or any conveyance of all or substantially all of the assets of
      the
      Company to another corporation, or

    

    C. of
      any
      voluntary dissolution, liquidation or winding-up of the Company; then, and
      in
      each such case, the Company will mail or cause to be mailed to each holder
      of a
      Warrant at the time outstanding a notice specifying, as the case may be, (a)
      the
      date on which a record is to be taken for the purpose of such dividend,
      distribution or right, and stating the amount and character of such dividend,
      distribution or right, or (b) the date on which such reorganization,
      reclassification, consolidation, merger, conveyance, dissolution, liquidation
      or
      winding-up is expected to take place, and the time, if any is to be fixed,
      as of
      which the holders of record of Common Stock (or such stock or securities at
      the
      time receivable upon the exercise of the Warrants) shall be entitled to exchange
      their shares of Common Stock (or such other stock or securities) for securities
      or other property deliverable upon such reorganization, reclassification,
      consolidation, merger, conveyance, dissolution, liquidation or winding-up,
      such
      notice shall be mailed at least ten (10) days prior to the date therein
      specified.

    

    6. Loss
      or Mutilation.
      Upon
      receipt by the Company of evidence satisfactory to it (in the exercise of
      reasonable discretion) of the ownership of and the loss, theft, destruction
      or
      mutilation of any Warrant and (in the case of loss, theft or destruction) of
      indemnity satisfactory to it (in the exercise of reasonable discretion), and
      (in
      the case of mutilation) upon surrender and cancellation thereof, the Company
      will execute and deliver in lieu thereof a new Warrant of like
      tenor.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    7. Reservation
      of Common Stock.
      The
      Company shall at all times reserve and keep available for issue upon the
      exercise of Warrants such number of its authorized but unissued shares of Common
      Stock as will be sufficient to permit the exercise in full of all outstanding
      Warrants. All of the shares of Commons Stock issuable upon the exercise of
      the
      rights represented by this Warrant will, upon issuance and receipt of the
      Purchase Price therefor, be fully paid and nonassessable, and free from all
      preemptive rights, rights of first refusal or first offer, taxes, liens and
      charges of whatever nature, with respect to the issuance thereof

    

    8. Registration
      Rights Agreement.
      The
      Holder of this Warrant is entitled to have the Warrant Shares registered for
      resale under the Act, pursuant to and in accordance with the Registration Rights
      Agreement dated as of the date hereof by and between the Holder, the Warrant
      holders and the Company.

    

    9. No
      Rights as Stockholder Conferred by Warrants.
      The
      Warrant shall not entitle the Holder hereof to any of the rights, either at
      law
      or in equity, of a stockholder of the Company. The Holder shall, upon the
      exercise thereof, not be entitled to any dividend that may have accrued or
      which
      may previously have been paid with respect to shares of stock issuable upon
      the
      exercise of the Warrant, except as may otherwise be provided in Section
      4 hereof.

    

    10. Notices.
      All
      notices and other communications from the Company to the Holder of this Warrant
      shall be mailed by first class, registered or certified mail, postage prepaid,
      and/or a nationally recognized overnight courier service to the address
      furnished to the Company in writing by the Holder.

    

    11. Change;
      Modifications; Waiver.
      No
      terms of this Warrant may be amended, waived or modified except by the express
      written consent of the Company and the holders of not less than 50.1% of the
      shares of Common Stock then issuable under outstanding Warrants issued in
      connection with the Financing; provided, however,
      that no
      such amendment or waiver shall reduce the Warrant Share Number, increase the
      Purchase Price, shorten the period during which this Warrant may be exercised
      or
      modify any provision of this Section 11 without the consent of the Holder of
      this Warrant. Notwithstanding the foregoing sentence, the Purchase Price will
      be
      subject to adjustment in the event of a forward or reverse stock split. No
      consideration shall be offered or paid to any person to amend or consent to
      a
      waiver or modification of any provision of this Warrant unless the same
      consideration is also offered to all holders of the Warrants.

    

    12. Endorsement
      of Warrants.
      The
      Warrant when presented or surrendered for exchange, transfer or registration
      shall be accompanied (if so required by the Company) by an assignment in the
      form attached hereto as Exhibit
      B
      or such
      other written instrument of transfer, in form satisfactory to the Company,
      duly
      executed by the registered Holder or by his duly authorized
      attorney.

    

    13. Agreement
      of Warrant Holders.
      The
      Holder, and to the extent that portions of this Warrant are assigned and there
      is more than one Holder of warrants exercisable for the Warrant Shares, every
      holder of a Warrant, by accepting the same, consents and agrees with the Company
      and with all other Warrant holders that: (a) the Warrants are transferable
      only
      as permitted by Section
      4 above;
      (b) the Warrants are transferable only on the registry books of the Company
      as
      herein provided; and (c) the Company may deem and treat the person in whose
      name
      the Warrant certificate is registered as the absolute owner thereof and of
      the
      Warrants evidenced thereby for all purposes whatsoever, and the Company shall
      not be affected by any notice to the contrary,

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    14. Payment
      of Taxes.
      The
      Company will pay all stamp, transfer and other similar taxes payable in
      connection with the original issuance of this Warrant and the shares of Common
      Stock issuable upon exercise thereof, provided, however, that the Company shall
      not be required to (i) pay any such tax which may be payable in respect of
      any
      transfer involving the transfer and delivery of this Warrant or the issuance
      or
      delivery of certificates for shares of Common Stock issuable upon exercise
      thereof in a name other than that of the registered Holder of this Warrant
      or
      (ii) issue or deliver any certificate for shares of Common Stock upon the
      exercise of this Warrant until any such tax required to be paid under clause
      (i)
      shall have been paid, all such tax being payable by the holder of this Warrant
      at the time of surrender.

    

    15. Ownership
      Cap and Exercise Restriction.
      Notwithstanding anything to the contrary set forth in this Warrant, at no time
      may a Holder of this Warrant exercise this Warrant if the number of shares
      of
      Common Stock to be issued pursuant to such exercise would exceed, when
      aggregated with all other shares of Common Stock owned by such Holder at such
      time, the number of shares of Common Stock which would result in such Holder
      beneficially owning (as determined in accordance with Section 13(d) of the
      Exchange Act and the rules thereunder) in excess of 9.9% of the then issued
      and
      outstanding shares of Common Stock; provided,
      however,
      that
      upon a holder of this Warrant providing the Company with sixty-one (61) days
      notice (pursuant to Section 13 hereof) (the “Waiver
      Notice”)
      that
      such Holder would like to waive this Section
      15
      with
      regard to any or all shares of Common Stock issuable upon exercise of this
      Warrant, this Section
      15
      will be
      of no force or effect with regard to all or a portion of the Warrant referenced
      in the Waiver Notice; provided, further,
      that
      this provision shall be of no further force or effect during the sixty-one
      (61)
      days immediately preceding the expiration of the term of this
      Warrant.

    

    16. Fractional
      Interest.
      The
      Company shall not be required to issue fractional shares of Common Stock on
      the
      exercise of this Warrant. If more than one Warrant shall be presented for
      exercise at the same time by the Holder, the number of full shares of Common
      Stock which shall be issuable upon such exercise shall be computed on the basis
      of the aggregate number of shares of Common Stock acquirable on exercise of
      the
      Warrants so presented. If any fraction of a share of Common Stock would, except
      for the provisions of this Section
      16,
      be
      issuable on the exercise of any Warrant (or specified portion thereof), the
      Company shall pay an amount in cash calculated by it to be equal to the Purchase
      Price per share multiplied by such fraction computed to the nearest whole cent.
      The Holder by his acceptance of this Warrant expressly waives any and all rights
      to receive any fraction of a share of Common Stock or a stock certificate
      representing a fraction of a share of Common Stock.

    

    17. Entire
      Agreement.
      This
      Warrant constitutes the full and entire understanding and agreement among the
      parties with regard to the subject matter hereof and no party shall be liable
      or
      bound to any other party in any manner by any representations, warranties,
      covenants or agreements except as specifically set forth herein.

    

    18. Successors
      and Assigns.
      All
      covenants and provisions of this Warrant by or for the benefit of the Company
      or
      the Holder of this Warrant shall bind and inure to the benefit of their
      respective successors, permitted assigns, heirs and personal
      representatives.

    

    19. Termination.
      This
      Warrant shall terminate at 5:00 p.m., Eastern Time, on the Expiration Date
      or
      upon such earlier date on which all of this Warrant has been exercised (the
      “Termination
      Date”).

    

    20. Headings.
      The
      headings in this Warrant are for purposes of convenience in reference only,
      and
      shall not be deemed to constitute a part hereof.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    

    21. Governing
      Law, Etc.
      This
      Agreement shall be governed by and construed exclusively in accordance with
      the
      internal laws of the State of New York without regard to the conflicts of laws
      principles thereof. The parties hereto hereby irrevocably agree that any suit
      or
      proceeding arising directly and/or indirectly pursuant to or under this
      Agreement, shall be brought solely in a federal or state court located in the
      City, County and State of New York. By its execution hereof, the parties hereby
      covenant and irrevocably submit to the in personam
      jurisdiction of the federal and state courts located in the City, County and
      State of New York and agree that any process in any such action may be served
      upon any of them personally, or by certified mail or registered mail upon them
      or their agent, return receipt requested, with the same full force and effect
      as
      if personally served upon them in New York City. The parties hereto waive any
      claim that any such jurisdiction is not a convenient forum for any such suit
      or
      proceeding and any defense or lack of in personam
      jurisdiction with respect thereto. In the event of any such action or
      proceeding, the party prevailing therein shall be entitled to payment from
      the
      other party hereto of all of its reasonable legal fees and
      expenses.

    

    Remainder
      of Page Intentionally Left Blank

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    

    

    Dated:
      ___________

    WARRANT
      SIGNATURE PAGE

    

    

    

    

    

    TITAN
      ENERGY WORLDWIDE,INC.

    

    

    

    

    By:_______________________________

    Name:
      _________________________

    Title:
      __________________________

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    SUBSCRIPTION
      FORM

    

    (To
      be
      executed only upon exercise of Warrant)

    

    

    The
      undersigned registered owner of this Warrant irrevocably exercises this Warrant
      and purchase ________ shares of the Common Stock of Titan Energy Worldwide,
      Inc., purchasable with this Warrant, and herewith makes payment therefor (either
      in cash or pursuant to the cashless exercise provisions set forth in
Section
      1
      of the
      Warrant), all at the price and on the terms and conditions specified in this
      Warrant.

    Dated:________________________

    

    ___________________________________________

    (Signature
      of Registered Owner)

    

    

    

    ___________________________________________

    (Street
      Address)

    

    

    

    ___________________________________________

    (City
      /
      State / Zip Code)

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    FORM
      OF ASSIGNMENT

    

    

    FOR
      VALUE RECEIVED the
      undersigned registered owner of this Warrant hereby sells, assigns and transfers
      unto the Assignee named below all of the rights of the undersigned under the
      within Warrant, with respect to the number of shares of Common Stock set forth
      below:

     

    Name
      of Assignee                 Address                     Number
      of Shares

    

    

    

    and
      does
      hereby irrevocably constitute and appoint ___________________________ Attorney
      to make such transfer on the books of Titan Energy Worldwide, Inc., maintained
      for the purpose, with full power of substitution in the premises.

    Dated:____________________________

    

    

    

    ___________________________________________

    (Signature)

    

    

    ___________________________________________

    (Witness)Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of October [___], 2007, by and among Titan Energy
      Worldwide, Inc., a Nevada corporation (the “Company”)
      and
      each purchaser (each a “Purchaser”
and
      collectively, the “Purchasers”),
      of
      securities of the Company pursuant to a Subscription Agreement (as defined
      below).

     

    This
      Agreement is made pursuant to Subscription Agreements by and between the Company
      and each Purchaser (each a “Subscription
      Agreement”),
      submitted in accordance with and subject to the terms and conditions described
      in the Subscription Agreement and the Confidential Private Placement Memorandum
      of the Company dated as of October 3, 2007 (the “PPM”),
      relating to the offering (the “Offering”)
      by the
      Company of units (the “Units”),
      each
      Unit consisting of one (1) share of Series D Convertible Preferred Stock (the
      “Preferred
      Stock”),
      one
      (1) Class A Warrant (the “A
      Warrant”)
      and
      one (1) Class B Warrant (the “B
      Warrant”
and,
      together with the A Warrant, the “Warrants”).
      Each
      A Warrant and B Warrant will entitle the holder to purchase Three thousand,
      three hundred and thirty-three shares of Common Stock (the “Warrant
      Shares”).
      The A
      Warrant and the B Warrant are immediately detachable from the Preferred Stock.
      Holders of Preferred Stock may, at any time, convert their shares, in whole
      or
      in part, into shares of Common Stock (the “Conversion
      Shares”)
      at a
      conversion price (the “Initial
      Conversion Price”)
      equal
      to the lesser of (i) $1.00 per share, or (ii) after 24 months from
      issuance, a price per share equal to the volume weighted average closing price
      (the “VWAP”)
      of the
      Common Stock for the twenty (20) trading days prior to a Closing, subject to
      adjustment, as set forth under “Conversion
      Price Adjustment,”
below.
      Assuming an Initial Conversion Price of $1.00, each one (1) share of Preferred
      Stock is convertible into 10,000 Conversion Shares. The
      Warrant Shares and the Conversion Shares have the registration rights as set
      forth herein.

     

    The
      Company and the Purchaser hereby agree as follows:

     

    1. Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have the
      following meanings:

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday or a day on which banking institutions in the State of New York are
      authorized or required by law or other governmental action to
      close.

     

    “Commission”
means
      the United States Securities and Exchange Commission.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section
      2(a).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Closing
      Date”
shall
      mean the closing of the Offering.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities (including any permitted assignee).

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section
      5(c).

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section
      5(c).

     

    “Initial
      Registration Statement”
means
      the initial Registration Statement filed pursuant to this Agreement.

     

    “Losses”
shall
      have the meaning set forth in Section
      5(a).

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    “Prospectus”
means
      the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

     

    “Registrable
      Securities”
means
      the Warrant Shares and the Conversion Shares.

     

    “Registration
      Statement”
means
      the registration statement required to be filed hereunder (which, at the
      Company’s option, may be an existing registration statement of the Company
      previously filed with the Commission, but not declared effective), including
      (in
      each case) the Prospectus, amendments and supplements to the registration
      statement or Prospectus, including pre- and post-effective amendments, all
      exhibits thereto, and all material incorporated by reference or deemed to be
      incorporated by reference in the registration statement.

     

    “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar Rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar Rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Trading
      Day”
means
      (i) a day on which the Conversion Shares or Warrant Shares are traded on a
      Trading Market, or (ii) if the Conversion Shares or Warrant Shares are not
      quoted on a Trading Market, a day on which the Conversion Shares or Warrant
      Shares are quoted in the over-the-counter market as reported by the National
      Quotation Bureau Incorporated (or any similar organization or agency succeeding
      to its functions of reporting price); provided, that in the event that the
      Conversion Shares or Warrant Shares are not listed or quoted as set forth in
      (i), and (ii) hereof, then Trading Day shall mean a Business
      Day.

     

    “Trading
      Market”
means
      the following markets or exchanges on which the Conversion Shares or Warrant
      Shares are listed or quoted for trading on the date in question: the American
      Stock Exchange, the New York Stock Exchange, the NASDAQ Global Market or the
      NASDAQ Capital Market, the OTC Bulletin Board or the Pink Sheets.

     

    2. Registration.

     

    (a) Mandatory
      Registration.
      The
      Company shall, as promptly as reasonably practicable, but in no event more
      than
      90 days after the date of the Closing (the “Filing
      Date”),
      prepare and file with the Commission the Registration Statement covering the
      resale of all (or such maximum portion of the Registrable Securities as
      permitted by Commission guidance) of the Registrable Securities for an offering
      to be made on a continuous basis pursuant to Rule 415. The Registration
      Statement required hereunder shall be on Form S-1, Form SB-2 or Form S-3 (except
      if the Company is not then eligible to register for resale the Registrable
      Securities on Form S-1, Form SB-2 or Form S-3, in which case the Registration
      shall be on another appropriate form in accordance herewith). The Registration
      Statement required hereunder shall contain the Plan of Distribution,
      substantially in the form of which is attached hereto as Annex
      A
      (which
      may be modified to respond to comments, if any, received by the Commission).
      The
      Company shall use its reasonable efforts to cause the Registration Statement
      to
      be declared effective under the Securities Act as promptly as possible after
      the
      filing thereof and shall use its best efforts to keep the Registration Statement
      continuously effective under the Securities Act until the date which is the
      earliest of (i) such time as all of the Registrable Securities covered by
      the Registration Statement have been sold pursuant to the Registration Statement
      or an exemption from the registration requirements of the Securities Act, or
      (ii) such time as all of the Registrable Securities covered by such
      Registration Statement may be sold by the Holders pursuant to Rule 144(k) (the
      “Effectiveness
      Period”).

     

    (b) Piggyback
      Registration Rights.
      If, at
      any time during the Effectiveness Period, there is not an effective Registration
      Statement covering the Registrable Securities (other than the Registrable
      Securities of a Holder that failed to comply with its obligations under Section
      3(h) hereof), and the Company shall determine to prepare and file with the
      Commission a registration statement relating to an offering for its own account
      or the account of others under the Securities Act of any of its equity
      securities, other than on Form S-4 or Form S-8 (each as promulgated under the
      Securities Act) or any post-effective amendment to existing registration
      statements or their then equivalents relating to equity securities to be issued
      solely in connection with any acquisition of any entity or business or equity
      securities issuable in connection with stock option or other employee benefit
      plans, then the Company shall send to each Holder a written notice of such
      determination at least twenty (20) days prior to the filing of any such
      registration statement and shall include in such registration statement all
      Registrable Securities; provided, however, that (i) if, at any time after
      giving written notice of its intention to register any securities and prior
      to
      the effective date of the registration statement filed in connection with such
      registration, the Company determines for any reason not to proceed with such
      registration, the Company will be relieved of its obligation to register any
      Registrable Securities in connection with such registration, and (ii) in
      case of a determination by the Company to delay registration of its securities,
      the Company will be permitted to delay the registration of Registrable
      Securities for the same period as the delay in registering such other
      securities.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (c) If
      the
      Initial Registration Statement is not filed on or prior to the Filing Date
      (any
      such failure or breach being referred to as an “Event,”
and
      the
      date on which such Event occurs being referred to as the “Event
      Date”),
      then,
      in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      2%
      of the aggregate purchase price paid by such Holder pursuant to the Purchase
      Agreement for any unregistered Registrable Securities then held by such Holder
      until
      the
      applicable Event is cured; provided, however, that (x) for those certain
      Registrable Securities not permitted to be registered by the Commission in
      any
      such Registration Statement pursuant to Rule 415, late effectiveness penalties
      pursuant to this Section shall only be payable on the portion of the Holder’s
      initial investment in the Units that corresponds to the number of such
      Registrable Securities allowed to be registered by the Commission. The
      parties agree that (i) the Company shall not be liable for liquidated damages
      under this Agreement with respect to any Warrants and (ii) the maximum aggregate
      liquidated damages payable to a Holder under this Agreement shall be 18% of
      the
      aggregate Subscription Amount paid by such Holder pursuant to the Purchase
      Agreement. If the Company fails to pay any partial liquidated damages pursuant
      to this Section in full within seven (7) days after the date payable, the
      Company will pay interest thereon at a rate of 10% per annum (or such lesser
      maximum amount that is permitted to be paid by applicable law) to the Holder,
      accruing daily from the date such partial liquidated damages are due until
      such
      amounts, plus all such interest thereon, are paid in full. The partial
      liquidated damages pursuant to the terms hereof shall apply on a daily pro
      rata
      basis for any portion of a month prior to the cure of an Event.

     

    (d) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board")
      reasonably determines not to be in the Company's best interest to disclose
      and
      which the Company is not otherwise required to disclose, (ii) there is a
      significant business opportunity (including, but not limited to, the acquisition
      or disposition of assets (other than in the ordinary course of business) or
      any
      merger, consolidation, tender offer or other similar transaction) available
      to
      the Company which the Board reasonably determines not to be in the Company's
      best interest to disclose, or (iii) the Company is required to file a
      post-effective amendment to the Registration Statement to incorporate the
      Company’s quarterly and annual reports and audited financial statements on Forms
      10-QSB and 10-KSB, then, the Company may postpone or suspend filing or
      effectiveness of a Registration Statement for a period not to exceed thirty
      (30)
      consecutive days; provided,
      however,
      that
      the Company may not postpone or suspend filing or effectiveness of a
      registration statement under this Section
      2(d)
      for more
      than sixty (60) days in the aggregate during any three hundred sixty (360)
      day
      period; provided,
      however,
      that no
      such postponement or suspension shall be permitted for consecutive thirty (30)
      day periods arising out of the same set of facts, circumstances or
      transactions.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3. Registration
      Procedures.
      In
      connection with the Company’s registration obligations hereunder, and during the
      Effectiveness Period (and any other period the Company is required hereunder
      to
      or elects to keep a registration statement effective), the Company
      shall:

     

    (a) (i) Prepare
      and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep the Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period; (ii) cause the related Prospectus to be amended or supplemented by
      any required Prospectus supplement, and as so supplemented or amended to be
      filed pursuant to Rule 424; and (iii) respond to any comments received from
      the Commission with respect to the Registration Statement or any amendment
      thereto.

     

    (b) Notify
      as
      promptly as reasonably possible, but no later than three (3) business days,
      each
      Holder of Registrable Securities included in the Registration Statement:
      (i) (A) when a Prospectus or any Prospectus supplement or
      post-effective amendment to the Registration Statement has been filed,
provided
      such
      Holder has previously requested in writing to receive notice of such filing;
      (B) when the Commission notifies the Company whether there will be a
“review” of the Registration Statement and whenever the Commission comments in
      writing on the Registration Statement, provided
      such
      Holder has previously requested in writing to receive notice of such
      notification; and (C) when the Registration Statement or any post-effective
      amendment has become effective; (ii) of any request by the Commission or
      any other Federal or state governmental authority during the period of
      effectiveness of the Registration Statement for amendments or supplements to
      the
      Registration Statement or Prospectus or for additional information;
      (iii) of the issuance by the Commission or any other federal or state
      governmental authority of any stop order suspending the effectiveness of the
      Registration Statement covering any or all of the Registrable Securities or
      the
      initiation of any Proceedings for that purpose; (iv) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction, or the initiation of any Proceeding for such purpose; and
      (v) of the occurrence of any event or passage of time that makes the
      financial statements included in the Registration Statement ineligible for
      inclusion therein or any statement made in the Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      the
      Registration Statement, Prospectus or other documents so that, in the case
      of
      the Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

     

    (c) Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order suspending the effectiveness of the Registration Statement,
      or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (d) Prior
      to
      any resale of Registrable Securities by a Holder, use its best efforts to
      register or qualify or cooperate with the selling Holders in connection with
      the
      registration or qualification (or exemption from the registration or
      qualification) of such Registrable Securities for the resale by the Holder
      under
      the securities or Blue Sky laws of such jurisdictions within the United States
      as any Holder reasonably requests in writing, to keep such registration or
      qualification (or exemption therefrom) effective during the Effectiveness Period
      and to do any and all other acts or things reasonably necessary to enable the
      disposition in such jurisdictions of the Registrable Securities covered by
      the
      Registration Statement; provided, however, that the Company shall not be
      required to qualify generally to do business in any jurisdiction where it is
      not
      then so qualified, subject the Company to any material tax in any such
      jurisdiction where it is not then so subject or file a general consent to
      service of process in any such jurisdiction.

     

    (e) Upon
      the
      occurrence of any event contemplated by Section
      3(b)(v),
      as
      promptly as reasonably possible, prepare a supplement or amendment, including
      a
      post-effective amendment, to the Registration Statement or a supplement to
      the
      related Prospectus or any document incorporated or deemed to be incorporated
      therein by reference, and file any other required document so that, as
      thereafter delivered, neither the Registration Statement nor such Prospectus
      will contain an untrue statement of a material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

     

    (f) Use
      its
      best efforts to comply with all applicable rules and regulations of the
      Commission relating to the registration of the Registrable Securities pursuant
      to the Registration Statement or otherwise.

     

    (g) Each
      Holder agrees to furnish the Company a completed selling shareholder
      questionnaire in form and substance acceptable to the Company (the “Selling
      Shareholder Questionnaire”).
      The
      Company shall not be required to include the Registrable Securities of a Holder
      in a Registration Statement who fails to furnish to the Company a fully
      completed Selling Shareholder Questionnaire by the date requested by the
      Company.

     

    (h) The
      Company shall either (a) cause all the Registrable Securities covered by a
      Registration Statement to be listed on each securities exchange on which
      securities of the same class or series issued by the Company are then listed,
      if
      any, if the listing of such Registrable Securities is then permitted under
      the
      rules of such exchange, or (b) secure designation and quotation of all the
      Registrable Securities covered by the Registration Statement on the OTC Bulletin
      Board, or if it is unable to secure such quotation, the Pink
      Sheets.

     

    (i) The
      Company covenants that it shall file the reports required to be filed by it
      under the Securities Act and the Exchange Act and the rules and regulations
      adopted by the Commission thereunder so long as the Holder owns any Registrable
      Securities, but in no event longer than two (2) years; provided,
      however,
      the
      Company may delay any such filing but only pursuant to Rule 12b-25 under the
      Exchange Act, and the Company shall take such further reasonable action as
      the
      Holder may reasonably request (including taking reasonable action to obtain
      required legal opinions from Company counsel necessary to effect the sale of
      Registrable Securities under Rule 144), all to the extent required from time
      to
      time to enable such Holder to sell Registrable Securities without registration
      under the Securities Act within the limitation of the exemptions provided by
      Rule 144. Upon the request of any Holder of Registrable Securities, the Company
      will deliver to such Holder a written statement as to whether it has complied
      with such requirements.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    4. Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to the Registration Statement, other
      than fees and expenses of counsel or any other advisor retained by the Holders
      and discounts and commissions with respect to the sale of any Registrable
      Securities by the Holders. The fees and expenses referred to in the foregoing
      sentence shall include, without limitation, (i) all registration and filing
      fees (including, without limitation, fees and expenses (A) with respect to
      filings required to be made with the Trading Market on which the Common Stock
      is
      then listed for trading, and (B) in compliance with applicable state
      securities or Blue Sky laws), (ii) printing expenses (including, without
      limitation, expenses of printing certificates for Registrable Securities and
      of
      printing prospectuses if the printing of prospectuses is reasonably requested
      by
      the holders of a majority of the Registrable Securities included in the
      Registration Statement), (iii) messenger, telephone and delivery expenses,
      (iv) fees and disbursements of counsel for the Company, (v) Securities
      Act liability insurance, if the Company so desires such insurance, and
      (vi) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement.

     

    5. Indemnification.

     

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless the Holder, the officers, directors, agents and employees of
      it,
      each Person who controls the Holder (within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act) and the officers, directors,
      agents and employees of each such controlling Person, to the fullest extent
      permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, reasonable
      attorneys’ fees) and expenses (including the cost (including without limitation,
      reasonable attorneys’ fees) and expenses relating to an Indemnified Party’s
      actions to enforce the provisions of this Section
      5)
      (collectively, “Losses”),
      as
      incurred, to the extent arising out of or relating to any untrue or alleged
      untrue statement of a material fact contained in the Registration Statement,
      any
      Prospectus or any form of prospectus or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising out of or relating to any omission
      or alleged omission of a material fact required to be stated therein or
      necessary to make the statements therein (in the case of any Prospectus or
      form
      of prospectus or supplement thereto, in light of the circumstances under which
      they were made) not misleading, except to the extent, but only to the extent,
      that (1) such untrue statements or omissions are based solely upon
      information regarding such Holder furnished (or in the case of an omission,
      not
      furnished) in writing to the Company by or on behalf of such Holder expressly
      for use therein, or to the extent that such information relates to such Holder
      or such Holder’s proposed method of distribution of Registrable Securities and
      was reviewed and expressly approved in writing by such Holder expressly for
      use
      in the Registration Statement, such Prospectus or such form of Prospectus or
      in
      any amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose), (2) in the case of an occurrence
      of an event of the type specified in Section
      3(c)(ii)-(v),
      the use
      by such Holder of an outdated or defective Prospectus after the Company has
      notified such Holder in writing that the Prospectus is outdated or defective
      and
      prior to the receipt by such Holder of the Advice contemplated in Section
      6(b),
      or
      (3) the failure of the Holder to deliver a prospectus prior to the
      confirmation of a sale. The Company shall notify the Holders promptly of the
      institution, threat or assertion of any Proceeding of which the Company is
      aware
      in connection with the transactions contemplated by this
      Agreement.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b) Indemnification
      by Holder.
      The
      Holder shall indemnify and hold harmless the Company, its directors, officers,
      agents and employees, each Person who controls the Company (within the meaning
      of Section 15 of the Securities Act and Section 20 of the Exchange Act), and
      the
      directors, officers, agents or employees of such controlling Persons, to the
      fullest extent permitted by applicable law, from and against all Losses, as
      incurred, to the extent arising out of or based upon: (x) the Holder’s
      failure to comply with the prospectus delivery requirements of the Securities
      Act or (y) any untrue or alleged untrue statement of a material fact
      contained in any Registration Statement, any Prospectus, or any form of
      prospectus, or in any amendment or supplement thereto or in any preliminary
      prospectus, or arising out of or relating to any omission or alleged omission
      of
      a material fact required to be stated therein or necessary to make the
      statements therein not misleading (i) to the extent, but only to the
      extent, that such untrue statement or omission is contained in any information
      so furnished (or in the case of an omission, not furnished) in writing by or
      on
      behalf of such Holder to the Company specifically for inclusion in the
      Registration Statement or such Prospectus or (ii) to the extent that
      (1) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished (or in the case of an omission, not furnished)
      in writing to the Company by or on behalf of such Holder expressly for use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities, such
      Prospectus or such form of Prospectus or in any amendment or supplement thereto,
      or (2) in the case of an occurrence of an event of the type specified in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder in writing that the
      Prospectus is outdated or defective and prior to the receipt by such Holder
      of
      the Advice contemplated in Section 6(b), or (3) the failure of the Holder
      to deliver a Prospectus prior to the confirmation of a sale. In no event shall
      the liability of any selling Holder hereunder be greater in amount than the
      dollar amount of the Subscription Amount paid by the Holder in the
      SPA.

     

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided,
      that
      the failure of any Indemnified Party to give such notice shall not relieve
      the
      Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
      except (and only) to the extent that such failure shall have materially
      prejudiced the Indemnifying Party.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees
      and expenses; (2) the Indemnifying Party shall have failed promptly to
      assume the defense of such Proceeding and to employ counsel reasonably
      satisfactory to such Indemnified Party in any such Proceeding; or (3) the
      named parties to any such Proceeding (including any impleaded parties) include
      both such Indemnified Party and the Indemnifying Party, and such Indemnified
      Party shall have been advised by counsel that a conflict of interest is likely
      to exist if the same counsel were to represent such Indemnified Party and the
      Indemnifying Party (in which case, if such Indemnified Party notifies the
      Indemnifying Party in writing that it elects to employ separate counsel at
      the
      expense of the Indemnifying Party, the Indemnifying Party shall not have the
      right to assume the defense thereof and the reasonable fees and expenses of
      one
      separate counsel for all Indemnified Parties in any matters related on a factual
      basis shall be at the expense of the Indemnifying Party). The Indemnifying
      Party
      shall not be liable for any settlement of any such Proceeding affected without
      its written consent, which consent shall not be unreasonably withheld. No
      Indemnifying Party shall, without the prior written consent of the Indemnified
      Party, effect any settlement of any pending Proceeding in respect of which
      any
      Indemnified Party is a party, unless such settlement includes an unconditional
      release of such Indemnified Party from all liability on claims that are the
      subject matter of such Proceeding.

     

    All
      reasonable fees and expenses of the Indemnified Party (including reasonable
      fees
      and expenses to the extent incurred in connection with investigating or
      preparing to defend such Proceeding in a manner not inconsistent with this
      Section) shall be paid to the Indemnified Party, as incurred, within ten (10)
      Trading Days of written notice thereof to the Indemnifying Party; provided,
      that
      the Indemnified Party shall promptly reimburse the Indemnifying Party for that
      portion of such fees and expenses applicable to such actions for which such
      Indemnified Party is not entitled to indemnification hereunder, determined
      based
      upon the relative faults of the parties.

     

    (d) Contribution.
      If a
      claim for indemnification under Section
      5(a)
      or
Section
      5(b)
      is
      unavailable to an Indemnified Party (by reason of public policy or otherwise),
      then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
      shall contribute to the amount paid or payable by such Indemnified Party as
      a
      result of such Losses, in such proportion as is appropriate to reflect the
      relative fault of the Indemnifying Party and Indemnified Party in connection
      with the actions, statements or omissions that resulted in such Losses as well
      as any other relevant equitable considerations. The relative fault of such
      Indemnifying Party and Indemnified Party shall be determined by reference to,
      among other things, whether any action in question, including any untrue or
      alleged untrue statement of a material fact or omission or alleged omission
      of a
      material fact, has been taken or made by, or relates to information supplied
      by,
      such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in Section
      5(c),
      any
      reasonable attorneys’ or other reasonable fees or expenses incurred by such
      party in connection with any Proceeding to the extent such party would have
      been
      indemnified for such fees or expenses if the indemnification provided for in
      this Section was available to such party in accordance with its
      terms.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6. Miscellaneous.

     

    (a) Compliance.
      The
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to the Registration Statement.

     

    (b) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and each Holder of the then outstanding Registrable
      Securities.

     

    (c) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (i) the Trading Day following the date of delivery to
      the courier service, if sent by nationally recognized overnight courier service,
      (ii) the third Trading Day following the date of mailing, if sent by
      first-class, registered or certified mail, postage prepaid, (iii) the
      Trading Day following transmission by electronic mail with receipt confirmed
      or
      acknowledged, or (iv) upon actual receipt by the party to whom such notice
      is required to be given. The address for such notices and communications shall
      be delivered and addressed as set forth in the SPA or to such other address
      as
      shall be designated in writing from time to time by a party hereto.

     

    (d) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      the
      Holder.

     

    (e) Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (f) Governing
      Law.
      This
      Agreement shall be governed by and construed exclusively in accordance with
      the
      internal laws of the State of New York without regard to the conflicts of laws
      principles thereof. The parties hereto hereby irrevocably agree that any suit
      or
      proceeding arising directly and/or indirectly pursuant to or under this
      Agreement shall be brought solely in a federal or state court located in the
      City, County and State of New York. By its execution hereof, the parties hereby
      covenant and irrevocably submit to the in personam jurisdiction of the federal
      and state courts located in the City, County and State of New York and agree
      that any process in any such action may be served upon any of them personally,
      or by certified mail or registered mail upon them or their agent, return receipt
      requested, with the same full force and effect as if personally served upon
      them
      in New York City. The parties hereto waive any claim that any such jurisdiction
      is not a convenient forum for any such suit or proceeding and any defense or
      lack of in personam jurisdiction with respect thereto. In the event of any
      such
      action or proceeding, the party prevailing therein shall be entitled to payment
      from the other party hereto of its reasonable counsel fees and
      disbursements.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (g) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

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

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Registration Rights Agreement as of the date first
      written above.

     

    
      	
              TITAN
                ENERGY WORLDWIDE, INC.

            
	 	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

     

    See
      Omnibus Signature Page in the Subscription Document for Purchasers’
Signatures

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    ANNEX
      A

     

    Plan
      of Distribution

     

    The
      selling stockholders and any of their pledgees, assignees and
      successors-in-interest may, from time to time, sell any or all of their shares
      of common stock on any stock exchange, market or trading facility on which
      the
      shares are traded or in private transactions. These sales may be at fixed or
      negotiated prices. The selling stockholders may use any one or more of the
      following methods when selling shares:

     

    
      	 	
              ·

            	
              ordinary
                brokerage transactions and transactions in which the broker/dealer
                solicits purchasers;

            

    

     

    
      	 	
              ·

            	
              block
                trades in which the broker/dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	 	
              ·

            	
              purchases
                by a broker/dealer as principal and resale by the broker/dealer for
                its
                account;

            

    

     

    
      	 	
              ·

            	
              an
                exchange distribution in accordance with the Rules of the applicable
                exchange;

            

    

     

    
      	 	
              ·

            	
              privately
                negotiated transactions;

            

    

     

    
      	 	
              ·

            	
              broker/dealers
                may agree with the selling stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	 	
              ·

            	
              a
                combination of any such methods of sale;
                and

            

    

     

    
      	 	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      selling stockholders may also sell shares under Rule 144 under the Securities
      Act, if available, rather than under this prospectus.

     

    Broker/dealers
      engaged by the selling stockholders may arrange for other broker/dealers to
      participate in sales. Broker/dealers may receive commissions from the selling
      stockholders (or, if any broker/dealer acts as agent for the purchaser of
      shares, from the purchaser) in amounts to be negotiated. The selling
      stockholders do not expect these commissions to exceed what is customary in
      the
      types of transactions involved.

     

    The
      selling stockholders may from time to time pledge or grant a security interest
      in some or all of the shares of common stock owned by them and, if they default
      in the performance of their secured obligations, the pledgees or secured parties
      may offer and sell the shares of common stock from time to time under this
      prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
      other applicable provision of the Securities Act of 1933 amending the list
      of
      selling stockholders to include the pledgee, transferee or other successors
      in
      interest as selling stockholders under this prospectus.

    
      
        
        

      

      
        A
–
1

        
          

        

      

      
        
        

      

    

    In
      connection with the sale of our common stock or interests therein, the selling
      stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume. The selling
      stockholders may also sell shares of our common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities. The selling
      stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      aggregate proceeds to the selling stockholders from the sale of the common
      stock
      offered by them will be the purchase price of the common stock less discounts
      or
      commissions, if any. Each of the selling stockholders reserves the right to
      accept and, together with their agents from time to time, to reject, in whole
      or
      in part, any proposed purchase of common stock to be made directly or through
      agents. We will not receive any of the proceeds from this offering. Upon any
      exercise of the warrants by payment of cash, however, we will receive the
      exercise price of the warrants.

     

    The
      selling stockholders also may resell all or a portion of the shares in open
      market transactions in reliance upon Rule 144 under the Securities Act of 1933,
      provided that they meet the criteria and conform to the requirements of that
      rule.

     

    The
      selling stockholders and any underwriters, broker-dealers or agents that
      participate in the sale of the common stock or interests therein may be
“underwriters” within the meaning of Section 2(11) of the Securities Act. Any
      discounts, commissions, concessions or profit they earn on any resale of the
      shares may be underwriting discounts and commissions under the Securities Act.
      Selling stockholders who are “underwriters” within the meaning of Section 2(11)
      of the Securities Act will be subject to the prospectus delivery requirements
      of
      the Securities Act. If a selling stockholder is deemed to be an underwriter,
      the
      selling stockholder may be subject to certain statutory liabilities including,
      but not limited to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5
      under the Exchange Act. Selling stockholders who are deemed underwriters within
      the meaning of the Securities Act will be subject to the prospectus delivery
      requirements of the Securities Act. The SEC staff is of a view that selling
      stockholders who are registered broker-dealers or affiliates of registered
      broker-dealers may be underwriters under the Securities Act. We will not pay
      any
      compensation or give any discounts or commissions to any underwriter in
      connection with the securities being offered by this prospectus.

     

    To
      the
      extent required, the shares of our common stock to be sold, the names of the
      selling stockholders, the respective purchase prices and public offering prices,
      the names of any agents, dealer or underwriter, any applicable commissions
      or
      discounts with respect to a particular offer will be set forth in an
      accompanying prospectus supplement or, if appropriate, a post-effective
      amendment to the registration statement that includes this
      prospectus.

     

    In
      order
      to comply with the securities laws of some states, if applicable, the common
      stock may be sold in these jurisdictions only through registered or licensed
      brokers or dealers. In addition, in some states the common stock may not be
      sold
      unless it has been registered or qualified for sale or an exemption from
      registration or qualification requirements is available and is complied
      with.

    
      
        
        

      

      
        A
–
2

        
          

        

      

      
        
        

      

    

    We
      have
      advised the selling stockholders that the anti-manipulation rules of Regulation
      M under the Exchange Act may apply to sales of shares in the market and to
      the
      activities of the selling stockholders and their affiliates. In addition, we
      will make copies of this prospectus (as it may be supplemented or amended from
      time to time) available to the selling stockholders for the purpose of
      satisfying the prospectus delivery requirements of the Securities Act. The
      selling stockholders may indemnify any broker-dealer that participates in
      transactions involving the sale of the shares against certain liabilities,
      including liabilities arising under the Securities Act.

     

    We
      are
      required to pay certain fees and expenses incident to the registration of the
      shares. We have agreed to indemnify the selling stockholders against
      liabilities, including liabilities under the Securities Act and state securities
      laws, relating to the registration of the shares offered by this
      prospectus.

     

    We
      have
      agreed with the selling stockholders to keep the registration statement of
      which
      this prospectus constitutes a part effective until the earlier (i) the date
      that is two (2) years after the last day of the calendar month following the
      month in which the effective date of the registration statement occurs,
      (ii) the date when the selling stockholder may sell all securities
      registered under the registration statement under Rule 144 without volume or
      other restrictions or limits or (iii) the date the selling stockholders no
      longer own any of the securities registered under the registration
      statement.

     

    
      
        
        

      

      
        A
–
3

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