Document:

Exhibit 10.1

 Exhibit 10.1 
  
 MARKETING REPRESENTATION AGREEMENT 
  
 This Agreement (the “Agreement”) is made this 25th day of August, 2005 (the “Effective Date”), by and among (i) Novoste Corporation, a Florida corporation with its principal place of business at 4350
International Boulevard, Norcross, Georgia 30093 (“Novoste”), (ii) Best Vascular, Inc., a Delaware corporation with its principal place of business at 7643 Fullerton Road, Springfield, Virginia 22153 (“Representative”), and (iii)
Best Medical International, Inc., a Virginia corporation which is an affiliate of Representative, with its principal place of business at 7643 Fullerton Road, Springfield, Virginia 22153 (“BMI”), who, intending to be legally bound, hereby
agree as follows: 
  
 1. INTRODUCTION 
  
 1.1. Novoste markets, promotes, sells, leases and distributes the
Beta-CathTM system, a hand-held device to deliver
low-penetration radiation to the site of a treated blockage in a coronary artery to inhibit restenosis and associated catheters, radiation sources and other disposables (the “Products”). 
  
 1.2. Novoste wishes to engage Representative, in accordance with the terms of
this Agreement, to market, demonstrate and solicit orders for the Products in the United States, Germany and Canada (the “Territory”). 
  
 1.3. Representative hereby accepts such appointment in accordance with the terms and conditions set forth herein. 
  
 1.4. As an inducement to Novoste to enter into this Agreement, BMI wishes to
guarantee the full and faithful performance and observation by Representative of all agreements of Representative set forth in this Agreement. 
  
 1.5. Concurrently with the execution and delivery of this Agreement, Novoste, Representative and BMI are entering into an asset purchase agreement
pursuant to which Novoste would transfer to Representative substantially all of the assets of Novoste’s VBT business and Representative would assume certain specified liabilities of Novoste’s VBT business, subject to the terms and
conditions set forth therein (the “Asset Purchase Agreement”). 
  
 2.
APPOINTMENT 
  
 Subject to the terms and conditions of this
Agreement, Novoste hereby appoints Representative, and Representative agrees to serve, as a marketing representative in the Territory with authority to market and solicit orders for the Products in the Territory in accordance with Novoste’s
current Product purchase order forms and terms and conditions, which are attached hereto as Exhibit 1. The parties acknowledge that Representative has been furnished with copies of the Novoste Product purchase order forms and terms and
conditions that are in effect as of the Effective Date. From time to time in accordance with Representative’s requests, Novoste shall furnish Representative, at Novoste’s cost, with reasonable quantities of sales support materials which
Novoste may have available. Representative’s obligations shall be as follows: 
  
 2.1. Authority. Representative shall present orders for the Products on Novoste’s standard agreements executed by prospective customers; provided, however, that all such orders shall be subject to
acceptance by Novoste. Representative shall clearly communicate this acceptance requirement to all prospective customers. 
  
 2.2. Territory Limitation. Representative has no authority to, and shall not, market or solicit orders for the Products outside the Territory, and
Representative shall immediately refer to Novoste any inquiries regarding the Products that Representative receives from or for any location outside the Territory. 
  
 2.3. Staff. At Representative’s request, Novoste will provide reasonable training at Novoste’s facility
first listed above for appropriate members of Representative’s staff to enable them to market, sell, service and respond to routine inquiries regarding the Products. Such training shall be provided without charge; however, Representative shall
be responsible for all travel-related expenses incurred by its trainees who participate in such training. 
  
 2.4. Marketing Expenses. All marketing activities for the Products shall be the sole responsibility of Representative, and Novoste shall not be
obligated to incur any expenses for Product advertising, promotion or market development. 
  
 2.5. Trademark Restrictions. Representative acknowledges that the trademarks on the Products are owned or licensed by Novoste. Representative shall not make use of such marks except for the purpose of
performing its obligations under this Agreement. 

 2.6. Order Fulfillment. Novoste shall be responsible for shipping and invoicing customers for any
Product sold by Representative hereunder. 
  
 3. REGULATORY COMPLIANCE

  
 3.1. Compliance with Laws. Each party shall (a)
perform its obligations under this Agreement in a manner that complies with all applicable laws, statutes, ordinances and regulations that apply to its obligations under this Agreement, (b) obtain all required licenses, permits, authorizations and
registrations, and (c) promptly notify the other party if it receives any notice or other allegation of non-compliance with any such law, statute, ordinance or regulation by any person which relates to its performance of its obligations hereunder.

  
 3.2. Complaints Handling and Medical Device Reporting
(MDRs). Representative shall forward to Novoste or its designee, within two (2) business days after its receipt by Representative, any Product complaint or notice of claimed or suspected Product defect received by Representative. Novoste or its
designee is responsible for investigating any Product complaints or allegations of Product defects. 
  
 3.3. Promotional Materials, Labeling and Advertising. Novoste shall, at its cost and expense, provide Representative with sufficient promotional
materials, labeling and advertising for use in promoting the Products. Novoste shall update such promotional materials, labeling and advertising when necessary or required by United States Food and Drug Administration. Representative shall use only
the written promotional materials, labeling and advertising provided by Novoste and shall not make any oral statements or communications inconsistent with, or different from, such promotional materials, labeling and advertising or other written
information authorized by Novoste to be provided to customers in any other form, including but not limited to customer contracts or order forms. 
  
 4. COMPENSATION 
  
 As compensation for services performed hereunder, during the term of this Agreement, Representative shall be entitled to receive a weekly fee of $25,000
(such weekly fee to be pro rated in the case of a partial week with respect to the commencement of the term and the expiration or termination of the term of this Agreement). Such compensation shall be payable on a weekly basis. 
  
 5. NO UNAUTHORIZED PRODUCT WARRANTIES 
  
 Novoste will honor all warranties given by it for the Products.
Representative shall not make, or authorize any of its employees to make, any representation or warranty whatsoever other than Novoste’s warranties. EXCEPT AS PROVIDED HEREIN, NOVOSTE MAKES NO WARRANTIES TO REPRESENTATIVE OR BMI, EXPRESS OR
IMPLIED, AS TO THE PERFORMANCE OF THE PRODUCTS, THEIR MERCHANTABILITY, OR THEIR FITNESS FOR ANY PARTICULAR PURPOSE. 
  
 6. INDEMNIFICATIONS 
  
 6.1. Novoste’s Indemnity. Novoste hereby agrees to indemnify, defend and hold Representative, BMI, their respective officers, directors,
employees, successors and assigns, harmless from and against all costs, damages, losses, and expenses incurred by Representative or BMI in connection with any claim, demand, suit or cause of action by a third party alleging that (a)
Representative’s marketing or solicitation of orders for the Products infringed any patent, copyright or other proprietary right of such third party, (b) any personal injury or death caused by a Product or (c) Novoste’s failure to comply
with applicable regulatory requirements. 
  
 6.2.
Representative’s Indemnity. Representative hereby agrees to indemnify, defend and hold Novoste, its officers, directors, employees, successors and assigns, harmless from and against all costs, damages, losses, and expenses incurred by
Novoste in connection with any claim, demand, suit or cause of action by a third party that is attributable to (a) Representative’s failure to comply with applicable regulatory requirements or (b) unauthorized warranties given by Representative
or BMI for the Products.  
  
 6.3. Responsibilities of
the Parties. The indemnified party shall (a) notify the indemnifying party in writing of any claim, demand, suit or cause of action for which indemnification is requested within fifteen (15) days of receiving notice of such claim, demand, suit
or cause of action, (b) permit the indemnifying party to control any negotiations or defense and assist the indemnifying party at the request and expense of the indemnifying party, and (c) take all reasonable steps to mitigate any potential damages
that may result. 
  

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 7. TERM AND TERMINATION 
  

7.1. Term. The term of this Agreement shall be the period commencing on the Effective Date and expiring, unless sooner terminated in accordance
with Section 7.2, upon the earliest of (a) the closing of the Asset Purchase Agreement, (b) the termination of the Asset Purchase Agreement in accordance with the terms thereof and (c) October 14, 2005. 
  
 7.2. Termination. This Agreement may be terminated by Novoste, on the
one hand, or Representative and BMI, on the other hand, upon the expiration of fifteen (15) days after written notice of material breach hereunder, if the breaching party fails to cure its breach during such cure period. 
  
 7.3. Rights After Termination. Upon any termination or expiration of
this Agreement, Representative shall immediately cease all use of Novoste’s trademarks and all demonstration and promotion of the Products. In addition, Representative shall promptly return to Novoste all demonstration samples of the Products
and related marketing and other materials in Representative’s possession. 
  
 8. LIMITATION OF LIABILITY 
  
 8.1. No
Consequential Damages. NEITHER NOVOSTE, ON THE ONE HAND, NOR REPRESENTATIVE AND BMI, ON THE OTHER HAND, WILL BE RESPONSIBLE FOR SPECIAL, INDIRECT, INCIDENTIAL, CONSEQUENTIAL OR SIMILAR DAMAGES (INCLUDING LOST PROFITS) THAT THE OTHER PARTY MAY
INCUR OR EXPERIENCE IN CONNECTION WITH THIS AGREEMENT OR THE PRODUCTS, HOWEVER CAUSED AND UNDER WHATEVER THEORY OF LIABILITY, INCLUDING NEGLIGENCE, EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  
 8.2. Exceptions. Nothing in the Agreement shall be deemed to exclude
or limit a party’s liability with respect to (a) death or personal or bodily injury arising as a result of any act or omission of such party, or (b) any indemnity given by such party in Section 6. 
  
 9. MISCELLANEOUS 
  
 9.1. Force Majeure. None of Novoste, Representative or BMI shall be deemed in default of this Agreement to the extent
that performance of its obligations or attempts to cure any breach are delayed or prevented by reason of any act of God, fire, natural disaster, accident, act of government, sabotage of material or supplies or any other cause beyond the control of
such party (“Force Majeure”), provided that such party gives the other party written notice thereof promptly and, in any event, within fifteen (15) days of discovery thereof. 
  
 9.2. Assignment. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns, provided, however, that no assignment shall relieve the assignor of any of its obligations hereunder. This Agreement shall not be assigned by a party without the prior written consent of the other parties (such
consent not to be unreasonably withheld or delayed). 
  
 9.3.
Modification. This Agreement can only be modified by a written agreement duly signed by persons authorized to sign agreements on behalf of each of the parties. 
  
 9.4. Notices. All communications required to be sent or given under the Agreement will be in writing and will be duly
given and effective upon confirmation of delivery if mailed by certified mail return receipt requested or sent via a nationally recognized overnight courier service as follows: 
  

			
	 If to Novoste:
 Novoste Corporation
 4350 International Boulevard
 Norcross, Georgia 30093
 Attention: Alfred J. Novak, President and CEO
  
 With a copy to:
 Novoste Corporation
 4350 International Boulevard
 Norcross, Georgia 30093
 Attention: Daniel G. Hall, Esq., General Counsel
	 	 If to Representative:
 Best Vascular,
Inc.
 7643 Fullerton Road
 Springfield, Virginia 22153

Attention: Krishnan Suthanthiran, President
  
 With a copy to:
 Best Medical International, Inc.
 7643 Fullerton Road
 Springfield, Virginia 22153
 Attention: Shawn R. Weingast, Esq., General Counsel
  
 If to BMI:
 Best Medical International, Inc.
 7643 Fullerton Road
 Springfield, Virginia 22153
 Attention: Krishnan Suthanthiran, President
  
 With a copy to:
 Best Medical International, Inc.
 7643 Fullerton Road
 Springfield, Virginia 22153
 Attention: Shawn R. Weingast, Esq., General Counsel

  

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 9.5. Independent Contractors. Novoste, on the one hand, and Representative and BMI, on the other
hand, shall be deemed to have the status of independent contractors, and nothing in this Agreement shall be deemed to place them in the relationship of employer-employee, principal-agent, or partners or joint venturers. 
  
 9.6. Governing Law. This Agreement shall be governed by the
substantive laws of the State of Georgia, without regard to conflict-of-laws issues. 
  
 9.7. Survival. The provisions of Sections 6, 7.3, 8 and 9 shall survive termination and expiration of the Agreement. 
  
 9.8. Waiver. Any waiver of any right or default hereunder shall be effective only in the instance given and shall not
operate as or imply a waiver of any similar right or default on any subsequent occasion. 
  
 9.9. Severability. No determination by a court of competent jurisdiction that any term or provision of this Agreement is invalid or otherwise unenforceable shall operate to invalidate or render unenforceable
any other term or provision of this Agreement and all remaining provisions shall be enforced in accordance with their terms. 
  
 9.10. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document. 
  
 9.11.
Titles and Captions. Section headings are used for convenience and shall not affect the interpretation or construction of any provision of this Agreement. 
  
 9.12. Entire Agreement. This Agreement constitutes the entire agreement among the parties pertaining to the subject
matter hereof and supersedes all prior and contemporaneous agreements, negotiations and understandings, oral or written. Novoste understands and agrees that no representations as to the marketing of the Products are made by Representative other than
as expressly stated in this Agreement. 
  
 9.13.
Confidentiality. Representative and BMI will keep confidential and non-public any and all data and other information obtained from Novoste in the course of performing their obligations under this Agreement except to the limited extent
necessary to perform their obligations under this Agreement. 
  
 9.14 Guaranty. (a) BMI, for itself and its successors in interest and assigns, hereby irrevocably and unconditionally guarantees the full and faithful performance and observation by Representative under this Agreement of all
representations, warranties, covenants, conditions, indemnities and agreements set forth in this Agreement provided to be performed and observed by Representative. BMI does hereby waive notice of acceptance of this guaranty, notice of protest or
compliance with the terms and provisions of this Agreement and notice of non-performance or non-observance hereof. Each default in payment or performance of any obligations hereunder shall give rise to a separate cause of action under this Section
9.14 and separate suits may be brought hereunder as each cause of action arises. Novoste agrees that prior to exercising any rights under this Section 9.14, Novoste shall use Commercially Reasonable Efforts (as defined in the Asset Purchase
Agreement) to collect or enforce the guaranteed obligation from or against Representative for a period of sixty (60) days; it being understood that following the expiration of such sixty (60) day period, Novoste shall be free to exercise any and all
of its rights against BMI pursuant to this Section 9.14. 
  
 (b)
The obligations of BMI hereunder shall not be affected by or contingent upon (i) the liquidation or dissolution of, or the merger or consolidation of Representative with or into any entity, or any sale or transfer by Representative of all or any
part of its property or assets, (ii) the bankruptcy, receivership, insolvency, reorganization or similar proceedings involving or affecting Representative or any surviving person of any such merger or consolidation, (iii) any modification,
alteration, amendment or addition of or to this Agreement, or (iv) any disability of Representative or any other person and any other circumstance whatsoever (with or without notice to or knowledge of BMI) which may or might in any manner or to any
extent vary the risks of BMI or might otherwise constitute a legal or equitable discharge of a surety or a guarantor or otherwise. 
  
 [Remainder of Page Intentionally Left Blank] 
  

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 Accepted and agreed to by the parties by their duly authorized representatives as of the date first set forth above.

  

							
	NOVOSTE CORPORATION	 	BEST VASCULAR, INC.
				
	By:	 	 /s/ Alfred J. Novak

	 	By:	 	 /s/ Krishnan Suthanthiran

	Title:	 	 President and Chief Executive Officer

	 	Title:	 	 President

	Date:	 	 August 25, 2005

	 	Date:	 	 August 25, 2005

			
	BEST MEDICAL INTERNATIONAL, INC.	 	 	 	 
				
	By:	 	 /s/ Krishnan Suthanthiran

	 	 	 	 
	Title:	 	 President

	 	 	 	 
	Date:	 	 August 25, 2005

	 	 	 	 

  

 - 5 -Form of Unit Purchase Option to be granted to the Representative

 Exhibit 4.5 
  

THE REGISTERED HOLDER OF THIS PURCHASE OPTION, BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION, EXCEPT AS HEREIN
PROVIDED, AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN
(I) ROTH CAPITAL PARTNERS, LLC OR ITS AFFILIATES (“ROTH CAPITAL”) OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING (DEFINED HEREIN), OR (II) A BONA FIDE OFFICER, PARTNER OR EMPLOYEE OF ROTH CAPITAL OR OF ANY SUCH
UNDERWRITER OR SELECTED DEALER. 
  
 THIS PURCHASE OPTION IS NOT EXERCISABLE
PRIOR TO THE LATER OF (I)                       , 2006 AND (II) THE CONSUMMATION BY BOULDER SPECIALTY BRANDS, INC.
(“COMPANY”) OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION OR OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS COMBINATION”) (AS DESCRIBED MORE FULLY IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)). THIS
PURCHASE OPTION SHALL BE VOID AFTER 5:00 P.M, NEW YORK CITY TIME, ON
                                , 2010. 
  
 UNIT PURCHASE OPTION 
  
 FOR THE PURCHASE OF 
  
 850,000 UNITS 
  
 OF 
  
 BOULDER SPECIALTY BRANDS, INC. 
  
 1. Purchase Option. 
  
 THIS CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of Roth Capital Partners, LLC (collectively, with its successors and permitted
assigns and/or transferees, the “Holder”), as registered owner of this Purchase Option, to Boulder Specialty Brands, Inc. (the “Company”), Holder is entitled, at any time or from time to time upon the
later of (i) the consummation of a Business Combination and (ii)                     , 2006 (“Commencement
Date”), and at or before 5:00 p.m., Eastern Time,                     , 2010 (“Expiration Date”), but not
thereafter, to subscribe for, purchase and receive, in whole or in part, up to Eight Hundred Fifty Thousand (850,000) units (the “Units”) of the Company, each Unit consisting of one share of common stock of the Company,
par value $.0001 per share (the “Common Stock”), and one warrant (the “Warrant(s)”) expiring four years from the effective 

 
date (“Effective Date”) of the registration statement (“Registration Statement”) pursuant to which Units are
offered for sale to the public (the “Offering”). Each Warrant is on the same terms and conditions as the warrants included in the Units being registered for sale to the public by way of the Registration Statement, including
that the Warrants underlying the Units comprising this Purchase Option have an exercise price of $6.00 per share. If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Option may be
exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate the Purchase Option. This Purchase
Option is initially exercisable at $10.00 per Unit so purchased; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Option, including the exercise price per
Unit and the number of Units (and shares of Common Stock and Warrants) to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted
exercise price, depending on the context. 
  
 2. Exercise.

  
 2.1 Exercise Form. In order to exercise this Purchase
Option, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Option and payment of the Exercise Price for the Units being purchased payable in cash or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., New York City Time, on the Expiration Date, this Purchase Option shall become and be void without further force or effect, and all
rights represented hereby shall cease and expire. 
  
 2.2
Legend. Each certificate for the securities purchased under this Purchase Option shall bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended (the “Act”):

  
 “The securities represented by this certificate have not
been registered under the Securities Act of 1933, as amended (“Act”) or applicable state law. The securities may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act,
or pursuant to an exemption from registration under the Act and applicable state law.” 
  
 2.3 Cashless Exercise. In lieu of the payment of the Exercise Price multiplied by the number of Units for which this Purchase Option is exercisable (and in lieu of being entitled to receive Common Stock and
Warrants) in the manner required by Section 2.1, the Holder shall have the right (but not the obligation) to convert any exercisable but unexercised portion of this Purchase Option into Units (the “Conversion Right”) as
follows: upon exercise of the Conversion Right, the Company shall deliver to the Holder (without payment by the Holder of any of the Exercise Price in cash) that number of shares of Common Stock and Warrants 

  

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comprising that number of Units equal to the quotient obtained by dividing (x) the “Value” (as defined below) of the portion of the Purchase
Option being converted by (y) the Current Market Value (as defined below) of the portion of the Purchase Option being converted. The “Value” of the portion of the Purchase Option being converted shall equal the remainder
derived from subtracting (a) (i) the Exercise Price multiplied by (ii) the number of Units underlying the portion of this Purchase Option being converted from (b) the Current Market Value of a Unit multiplied by the number
of Units underlying the portion of the Purchase Option being converted. As used herein, the term “Current Market Value” per Unit at any date means: (A) in the event that neither the Units nor Warrants are still trading,
the remainder derived from subtracting (x)(i) the exercise price of the Warrants multiplied by the number of shares of Common Stock issuable upon exercise of the Warrants underlying one Unit plus (ii) the exercise price of the Unit from
(y) (i) the Current Market Price of the Common Stock multiplied by (ii) the number of shares of Common Stock underlying one Unit, which shall include the shares of Common Stock underlying the Warrants included in such Unit;
(B) in the event that the Units, Common Stock and Warrants are still trading, (i) if the Units are listed on a national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or
successor such as the Bulletin Board Exchange), the last sale price of the Units in the principal trading market for the Units as reported by the exchange, Nasdaq or the NASD, as the case may be, on the last trading day preceding the date in
question; or (ii) if the Units are not listed on a national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC Bulletin Board (or successor exchange), but is traded in the residual
over-the-counter market, the closing bid price for Units on the last trading day preceding the date in question for which such quotations are reported by the Pink Sheets, LLC or similar publisher of such quotations; and (C) in the event that
the Units are not still trading but the Common Stock and Warrants underlying the Units are still trading, the Current Market Price of the Common Stock plus the product of (x) the Current Market Price of the Warrants and (y) the number of
shares of Common Stock underlying the Warrants included in one Unit. The “Current Market Price” shall mean (i) if the Common Stock (or Warrants, as the case may be) is listed on a national securities exchange or quoted
on the Nasdaq National Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the last sale price of the Common Stock (or Warrants) in the principal trading market for the Common Stock as
reported by the exchange, Nasdaq or the NASD, as the case may be, on the last trading day preceding the date in question; (ii) if the Common Stock (or Warrants, as the case may be) is not listed on a national securities exchange or quoted on
the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC Bulletin Board (or successor exchange), but is traded in the residual over-the-counter market, the closing bid price for the Common Stock (or Warrants) on the last trading day
preceding the date in question for which such quotations are reported by the Pink Sheets, LLC or similar publisher of such quotations; and (iii) if the fair market value of the Common Stock cannot be determined pursuant to clause (i) or
(ii) above, such price as the Board of Directors of the Company shall determine, in good faith. 
  
 2.4 Mechanics of Cashless Exercise. The Cashless Exercise Right may be exercised by the Holder on any business day on or after the Commencement
Date and not later than the Expiration Date by delivering the Purchase Option with the duly executed exercise form attached hereto with the cashless exercise section completed to the Company, exercising the 

  

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Cashless Exercise Right and specifying the total number of Units the Holder will purchase pursuant to such Cashless Exercise Right. 
  
 3. Transfer. 
  
 3.1 General Restrictions. The registered Holder of this Purchase
Option, by its acceptance hereof, agrees that it will not sell, transfer, assign, pledge or hypothecate this Purchase Option for a period of one year following the Effective Date to anyone other than (i) Roth Capital or an underwriter or a
selected dealer in connection with the Offering, or (ii) a bona fide officer or partner of Roth Capital or of any such underwriter or selected dealer. On and after the first anniversary of the Effective Date, transfers to others may be made
subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase
Option and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five business days transfer this Purchase Option on the books of the Company and shall execute and deliver a new Purchase Option or Purchase
Options of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Units purchasable hereunder or such portion of such number as shall be contemplated by any such assignment. 
  
 3.2 Restrictions Imposed by the Act. The securities evidenced by this
Purchase Option shall not be transferred unless and until (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Act and applicable state
securities laws, the availability of which is established to the reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Ellenoff Grossman & Schole LLP shall be deemed satisfactory evidence of the
availability of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to such securities has been filed by the Company and declared effective by the Securities and Exchange
Commission and compliance with applicable state securities law has been established. 
  
 4. New Purchase Options to be Issued. 
  
 4.1 Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Option may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof
in part only, upon surrender of this Purchase Option for cancellation, together with the duly executed exercise or assignment form and, except in the case of an exercise of this Purchase Option contemplated by Section 2.3 hereof, funds
sufficient to pay any Exercise Price and/or transfer tax, the Company shall cause to be delivered to the Holder without charge a new Purchase Option of like tenor to this Purchase Option in the name of the Holder evidencing the right of the Holder
to purchase the number of Units purchasable hereunder as to which this Purchase Option has not been exercised or assigned. 
  
 4.2 Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase
Option and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a 

  

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new Purchase Option of like tenor and date. Any such new Purchase Option executed and delivered as a result of such loss, theft, mutilation or destruction
shall constitute a substitute contractual obligation on the part of the Company. 
  
 5. Registration Rights. 
  
 5.1 Demand Registration. 
  
 5.1.1 Grant of
Right. The Company, upon written demand (an “Initial Demand Notice”) of the Holder(s) of at least 51% of the Purchase Options and/or the underlying Units and/or the underlying securities (the “Majority
Holders”), agrees to register on one occasion, all or any portion of the Purchase Options requested by the Majority Holders in the Initial Demand Notice and all of the securities underlying such Purchase Options, including the Units,
Common Stock, the Warrants and the Common Stock underlying the Warrants (collectively, the “Registrable Securities”). On such occasion, the Company will file a registration statement or a post-effective amendment to the
Registration Statement covering the Registrable Securities within sixty days after receipt of the Initial Demand Notice and use its best efforts to have such registration statement or post-effective amendment declared effective as soon as possible
thereafter. The demand for registration may be made at any time during a period of five years beginning on the Effective Date. The Company covenants and agrees to give written notice of its receipt of any Initial Demand Notice by any Holder(s) to
all other registered Holders of the Purchase Options and/or the Registrable Securities within ten days from the date of the receipt of any such Initial Demand Notice. 
  
 5.1.2 Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities,
including the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities, but the Holders shall pay any and all underwriting commissions. The Company agrees to use its reasonable
best efforts to qualify or register the Registrable Securities in such States as are reasonably requested by the Majority Holder(s); provided, however, that in no event shall the Company be required to register the Registrable Securities in a
State in which such registration would cause (i) the Company to be obligated to qualify to do business in such State, or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction or (ii) the
principal stockholders of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration statement or post-effective amendment filed pursuant to the demand rights granted under
Section 5.1.1 to remain effective for a period of two (2) years from the effective date of such registration statement or post-effective amendment. 
  
 5.2 “Piggy-Back” Registration. 
  
 5.2.1 Grant of Right. In addition to the demand right of registration, the Holders of the Purchase Options shall have the right for a period of
seven years commencing on the Effective Date, to include the Registrable Securities as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the
Act or pursuant to Form S-8); provided, however, that if, in 

  

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the written opinion of the Company’s managing underwriter or underwriters, if any, for such offering, the inclusion of the Registrable Securities, when
added to the securities being registered by the Company or the selling stockholder(s), will exceed the maximum amount of the Company’s securities (the “Maximum Number of Shares”) which can be marketed (i) at a price
reasonably related to their then current market value, and (ii) without materially and adversely affecting the entire offering, then the Company shall include in any such registration: 
  
 (i) If the registration is undertaken for the Company’s account:
(A) first, the shares of Common Stock or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clause (A), the shares of Common Stock, if any, including the Registrable Securities, as to which registration has been requested pursuant to written contractual piggy-back registration rights of security holders (pro rata in
accordance with the number of shares of Common Stock which each such person has actually requested to be included in such registration, regardless of the number of shares of Common Stock with respect to which such persons have the right to request
such inclusion) that can be sold without exceeding the Maximum Number of Shares; and 
  
 (ii) If the registration is a “demand” registration undertaken at the demand of persons other than the holders of Registrable Securities pursuant to written contractual arrangements with such persons,
(A) first, the shares of Common Stock for the account of the demanding persons that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (A), the shares of Common Stock or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (A) and (B), the Registrable Securities as to which registration has been requested under this Section 5.2 (pro rata in accordance with the number of shares of Registrable Securities held by each such
holder); and (D) fourth, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A), (B) and (C), the shares of Common Stock, if any, as to which registration has been requested pursuant to written
contractual piggy-back registration rights which other shareholders desire to sell that can be sold without exceeding the Maximum Number of Shares. 
  
 5.2.2 Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities, including the expenses of any legal
counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities but the Holders shall pay any and all underwriting commissions related to the Registrable Securities. In the event of such a proposed
registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than fifteen days written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall
continue to be given for each applicable registration statement filed (during the period in which the Purchase Option is exercisable) by the Company until such time as all of the Registrable Securities have been registered and sold. The holders of
the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written notice, within ten days of the receipt of the Company’s notice of its intention to file a registration statement. The Company

  

 -6- 

 
shall cause any registration statement filed pursuant to the above “piggyback” rights to remain effective for at least nine months from the date
that the Holders of the Registrable Securities are first given the opportunity to sell all of such securities. The Company agrees, at its sole expenses, to use its reasonable best efforts to qualify or register the Registrable Securities in such
States as are reasonably requested by the Majority Holder(s); provided, however, that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would cause (i) the Company to be
obligated to qualify to do business in such State, or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction or (ii) the principal stockholders of the Company to be obligated to escrow their shares of
capital stock of the Company. 
  
 5.3 Damages. Should the
registration or the effectiveness thereof required by Sections 5.1 and 5.2 hereof be delayed by the Company or the Company otherwise materially fails to comply with such provisions, the Company shall, in addition to any other equitable or other
relief available to the Holder(s), be liable for any and all incidental, special and consequential damages sustained by the Holder(s), including, but not limited to, the loss of any profits that might have been received by the holder upon the sale
of shares of Common Stock or Warrants (and shares of Common Stock underlying the Warrants) underlying this Purchase Option. 
  
 5.4 General Terms. 
  
 5.4.1 Indemnification. The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement
hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any of their
respective heirs, successors, permitted assigns and transfers, and agents and representatives, against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in
investigating, preparing or defending against litigation, commenced or threatened, or any claim whatsoever whether arising out of any action between the underwriter and the Company or between the underwriter and any third party or otherwise) to
which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify
the underwriters contained in Section 6 of the Underwriting Agreement between the Company, Roth Capital and the other underwriters named therein dated the Effective Date. The Holder(s) of the Registrable Securities to be sold pursuant to such
registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration
statement to the same extent and with the same effect as the provisions contained in Section 5 of the Underwriting Agreement pursuant to which the underwriters have agreed to indemnify the Company. 
  

 -7- 

 5.4.2 Exercise of Purchase Options. Nothing contained in this Purchase Option shall be construed
as requiring the Holder(s) to exercise their Purchase Options or Warrants underlying such Purchase Options prior to or after the initial filing of any registration statement or the effectiveness thereof. 
  
 5.4.3 Documents Delivered to Holders. The Company shall furnish Roth
Capital, as representative of the Holders participating in any of the foregoing offerings, a signed counterpart, addressed to the participating Holders, of (i) an opinion of counsel to the Company, dated the effective date of such registration
statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort” letter dated the effective date of
such registration statement (and, if such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent public accountants who have issued a report on the
Company’s financial statements included in such registration statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such
accountants’ letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public
offerings of securities. The Company shall also deliver promptly to Roth Capital, as representative of the Holders participating in the offering, the correspondence and memoranda described below and copies of all correspondence between the
Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and permit Roth Capital, as representative of the Holders, to do such
investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of the National Association of
Securities Dealers, Inc. (the “NASD”). Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such
reasonable extent and at such reasonable times and as often as Roth Capital, as representative of the Holders, shall reasonably request. The Company shall not be required to disclose any confidential information or other records to Roth Capital, as
representative of the Holders, or to any other person, until and unless such persons shall have entered into reasonable confidentiality agreements (in form and substance reasonably satisfactory to the Company), with the Company with respect thereto.

  
 5.4.4 Underwriting Agreement. The Company shall enter
into an underwriting agreement with the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to this Section 5, which managing underwriter shall be reasonably acceptable to the
Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other terms as are
customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that any
or all the representations, warranties and covenants of the Company to or for the benefit of such 

  

 -8- 

 
underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or
agreements with the Company or the underwriters except as they may relate to such Holders and their intended methods of distribution. Such Holders, however, shall agree to such covenants and indemnification and contribution obligations for selling
stockholders as are customarily contained in agreements of that type used by the managing underwriter. Further, such Holders shall execute appropriate custody agreements and otherwise cooperate fully in the preparation of the registration statement
and other documents relating to any offering in which they include securities pursuant to this Section 5. Each Holder shall also furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended
method of disposition of such securities as shall be reasonably required to effect the registration of the Registrable Securities. 
  
 5.4.5 Rule 144 Sale. Notwithstanding anything contained in this Section 5 to the contrary, the Company shall have no obligation pursuant
to Sections 5.1 or 5.2 for the registration of Registrable Securities held by any Holder (i) where such Holder would then be entitled to sell under Rule 144 within any three month period (or such other period prescribed under Rule 144 as may be
provided by amendment thereof) all of the Registrable Securities held by such Holder, and (ii) where the number of Registrable Securities held by such Holder is within the volume limitations under paragraph (e) of Rule 144 (calculated as
if such Holder were an affiliate within the meaning of Rule 144). 
  
 5.4.6 Supplemental Prospectus. Each Holder agrees, that upon receipt of any notice from the Company of the happening of any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, such Holder will immediately discontinue
disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Holder’s receipt of the copies of a supplemental or amended prospectus, and, if so desired by the Company, such Holder
shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of such destruction) all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice. 
  
 6. Adjustments. 
  
 6.1
Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of Units underlying the Purchase Option shall be subject to adjustment from time to time as hereinafter set forth: 
  
 6.1.1 Stock Dividends—Split-Ups. If after the date hereof, and
subject to the provisions of Section 6.4 below, the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or other similar event, then, on the
effective date thereof, the number of shares of Common Stock underlying each of the Units purchasable hereunder shall be increased in proportion to such increase in outstanding shares. In such case, the number of shares of Common 

  

 -9- 

 
Stock, and the exercise price applicable thereto, underlying the Warrants underlying each of the Units purchasable hereunder shall be adjusted in accordance
with the terms of the Warrants. For example, if the Company declares a two-for-one stock dividend and at the time of such dividend this Purchase Option is for the purchase of one Unit at $10.00 per whole Unit (each Warrant underlying the Units is
exercisable for $6.00 per share), upon effectiveness of the dividend, this Purchase Option will be adjusted to allow for the purchase of one Unit at $10.00 per Unit, each Unit entitling the holder to receive two shares of Common Stock and two
Warrants (each Warrant exercisable for $3.00 per share). 
  
 6.1.2 Aggregation of Shares. If after the date hereof, and subject to the provisions of Section 6.4, the number of outstanding shares of Common Stock is decreased by a consolidation, combination or reclassification of shares of
Common Stock or other similar event, then, on the effective date thereof, the number of shares of Common Stock underlying each of the Units purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares. In such case,
the number of shares of Common Stock, and the exercise price applicable thereto, underlying the Warrants underlying each of the Units purchasable hereunder shall be adjusted in accordance with the terms of the Warrants. 
  
 6.1.3 Replacement of Securities upon Reorganization, etc. In case of
any reclassification or reorganization of the outstanding shares of Common Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such shares of Common Stock, or in the case of any merger or
consolidation of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding shares of
Common Stock), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase
Option shall have the right thereafter (until the expiration of the right of exercise of this Purchase Option) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and
amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of shares
of Common Stock of the Company obtainable upon exercise of this Purchase Option and the underlying Warrants immediately prior to such event; and if any reclassification also results in a change in shares of Common Stock covered by Section 6.1.1
or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations,
sales or other transfers. 
  
 6.1.4 Changes in Form of
Purchase Option. This form of Purchase Option need not be changed because of any change pursuant to this Section, and Purchase Options issued after such change may state the same Exercise Price and the same number of Units as are stated in the
Purchase Options initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Options reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after
the Commencement Date or the computation thereof. 
  

 -10- 

 6.2 Substitute Purchase Option. In case of any consolidation of the Company with, or merger of the
Company with, or merger of the Company into, another corporation (other than a consolidation or merger which does not result in any reclassification or change of the outstanding Common Stock), the corporation formed by such consolidation or merger
shall execute and deliver to the Holder a supplemental Purchase Option providing that the holder of each Purchase Option then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Option) to
receive, upon exercise of such Purchase Option, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or merger, by a holder of the number of shares of Common Stock of the Company for which such
Purchase Option might have been exercised immediately prior to such consolidation, merger, sale or transfer. Such supplemental Purchase Option shall provide for adjustments which shall be identical to the adjustments provided in Section 6. The
above provision of this Section shall similarly apply to successive consolidations or mergers. 
  
 6.3 Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of shares of Common Stock or Warrants upon the exercise of the Purchase Option, nor shall
it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down to the nearest whole number of Warrants, shares
of Common Stock or other securities, properties or rights. 
  
 7.
Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock, solely for the purpose of issuance upon exercise of the Purchase Options or the Warrants underlying the Purchase
Option, such number of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Options and payment of the Exercise Price
therefor, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any stockholder. The Company further covenants and agrees
that upon exercise of the Warrants underlying the Purchase Options and payment of the respective Warrant exercise price therefor, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully
paid and non-assessable and not subject to preemptive rights of any stockholder. As long as the Purchase Options shall be outstanding, the Company shall use its best efforts to cause all (i) Units and shares of Common Stock issuable upon
exercise of the Purchase Options, (ii) Warrants issuable upon exercise of the Purchase Options and (iii) shares of Common Stock issuable upon exercise of the Warrants included in the Units issuable upon exercise of the Purchase Option to
be listed (subject to official notice of issuance) on all securities exchanges (or, if applicable on the Nasdaq National Market, SmallCap Market, OTC Bulletin Board or any successor trading market) on which the Units, the Common Stock or the
Warrants may then be listed and/or quoted. 
  
 8. Certain
Notice Requirements. 
  
 8.1 Holder’s Right to Receive
Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent as a stockholder for the election of 

  

 -11- 

 
directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of the
Purchase Options and their exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen days prior to the date fixed as a record date
or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation,
winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other
stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders. 
  
 8.2 Events Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to receive a dividend or distribution, or (ii) the Company shall offer to all the holders of its Common Stock any
additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding
up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property, assets and business or a merger of the Company wherein the separate existence of the Company shall cease shall be
proposed. 
  
 8.3 Notice of Change in Exercise Price. The
Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change (a “Price Notice”). The Price Notice shall describe the
event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s President and Chief Financial Officer. 
  
 8.4 Transmittal of Notices. All notices, requests, consents and other communications under this Purchase Option shall
be in writing and shall be deemed to have been duly made when hand delivered, mailed by express mail or private courier service, or sent by facsimile transmission, with confirmation of receipt: (i) If to the registered Holder of the Purchase
Option, to the address and/or fax number of such Holder as shown on the books of the Company, or (ii) if to the Company, to the following address or fax number or to such other address or and fax number as the Company may designate by notice to
the Holders: 
  
 Boulder Specialty Brands, Inc. 
 6106 Sunrise Ranch Drive 
 Longmont, CO 80503

 Attn: Stephen B. Hughes, CEO 
 Fax No.: (303) 682-1978 
  
 9. Miscellaneous.

  

 -12- 

 9.1 Amendments. The Company and Roth Capital may from time to time supplement or amend this
Purchase Option without the approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, or to make any other
provisions in regard to matters or questions arising hereunder that the Company and Roth Capital may deem necessary or desirable and that the Company and Roth Capital deem shall not adversely affect the interest of the Holders. All other
modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought. 
  

9.2 Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Option. 
  
 10. Entire Agreement. This Purchase Option (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Option) constitutes the entire agreement of the
parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof. 
  
 10.1 Binding Effect. This Purchase Option shall inure solely to the
benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or
claim under or in respect of or by virtue of this Purchase Option or any provisions herein contained. 
  
 10.2 Governing Law; Submission to Jurisdiction. This Purchase Option shall be governed by and construed and enforced in accordance with the laws of
the State of California, without giving effect to conflict of laws. Each of the Company and Roth Capital agree that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Option shall be brought and
enforced in the courts of the State of California located in the County of Los Angeles or of the United States of America for the Central District of California, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
Each of the Company and Roth Capital hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof
by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any
action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses relating to such action or
proceeding and/or incurred in connection with the preparation therefor. 
  
 10.3 Waiver, Etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Option shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the
validity of this Purchase Option or any 

  

 -13- 

 
provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Option. No waiver of any breach,
non-compliance or non-fulfillment of any of the provisions of this Purchase Option shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver
of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment. 
  
 10.4 Execution in Counterparts. This Purchase Option may be executed in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed
by each of the parties hereto and delivered to each of the other parties hereto. 
  
 10.5 Exchange Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Option, Holder agrees that, at any time prior to the complete exercise of this Purchase Option by Holder, if
the Company and Roth Capital enter into an agreement (an “Exchange Agreement”) pursuant to which they agree that all outstanding Purchase Options will be exchanged for securities or cash or a combination of both, then Holder
shall agree to such exchange and become a party to the Exchange Agreement. 
  
 10.6 Underlying Warrants. At any time after exercise by the Holder of this Purchase Option, the Holder may exchange his Warrants for Public Warrants upon payment to the Company of the difference between the
exercise price of his Warrant and the exercise price of the Public Warrants, if any. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 -14- 

 IN WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by its duly authorized
officer as of the          day of                         , 2005.

  

			
	 BOULDER SPECIALTY BRANDS, INC.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 -15- 

 Form to be used to exercise Purchase Option 
  

					
	 Boulder Specialty Brands, Inc.
	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 Date:                                     
       , 200    
	 	 	 	 

  
 The undersigned hereby
elects irrevocably to exercise all or a portion of the within Purchase Option and to purchase                      Units of Boulder Specialty
Brands, Inc. and hereby makes payment of $             (at the rate of $             per Unit) in payment of the
Exercise Price pursuant thereto. Please issue the Common Stock and Warrants as to which this Purchase Option is exercised in accordance with the instructions given below. 
  
 or 
  
 The undersigned hereby elects irrevocably to convert its right to purchase
                     Units purchasable under the within Purchase Option by surrender of the unexercised portion of the attached Purchase
Option (with a “Value” based of $             based on a “Market Price” of $            ).
Please issue the securities comprising the Units as to which this Purchase Option is exercised in accordance with the instructions given below. 
  
  

					
	 	 	 	 	
 Signature

			
	 	 	 	 	
 Signature Guaranteed

  
  
 INSTRUCTIONS FOR REGISTRATION OF SECURITIES 
  
 Name                                      
                                        
                                        
                                        
                                        
                                        
         
 (Print in Block Letters) 
  
 Address                                     
                                        
                                        
                                        
                                        
                                        
     
  
 NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND
WITH THE NAME AS WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM
HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE. 
  

 -16- 

 Form to be used to assign Purchase Option 
  
 ASSIGNMENT 
  
 (To be executed by the registered Holder to effect a transfer of the within Purchase Option): 
  
 FOR VALUE RECEIVED,
                                        
                                        
             does hereby sell, assign and transfer unto
                                        
                                        
             the right to purchase                      Units of Boulder
Specialty Brands, Inc. (the “Company”) evidenced by the within Purchase Option and does hereby authorize the Company to transfer such right on the books of the Company. 
  

					
	 Dated:                                     
       , 200    
	 	 	 	 
			
	 	 	 	 	
 Signature

			
	 	 	 	 	
 Signature Guaranteed

  
 NOTICE: THE SIGNATURE TO THIS FORM
MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY
OR BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE. 
  

 -17-

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