Document:

EX-10.2

 Exhibit 10.2 

TENDER AND SUPPORT AGREEMENT 

TENDER AND SUPPORT AGREEMENT, dated as of 17, 2015 (this “Agreement”), among BCP IV GrafTech Holdings LP, a Delaware limited
partnership (“Parent”), Athena Acquisition Subsidiary Inc., a Delaware corporation (“Acquisition Sub”), and each of the Persons listed as a “Stockholder” on the signature pages hereto (collectively, the
“Stockholders”). 
 WHEREAS, as a condition and inducement to Parent’s and Acquisition Sub’s willingness to enter
into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), with GrafTech International Ltd., a Delaware corporation (the “Company”), Parent has requested the Stockholders, and the
Stockholders have agreed, to enter into this Agreement with respect to all shares of common stock, par value $0.01 per share, of the Company that the Stockholders Beneficially Own (as defined in Section 6.10 below) at any time during the
Support Period (as defined in Section 6.10 below). 
 NOW, THEREFORE, the parties hereto agree as follows: 

ARTICLE 1 

AGREEMENT TO TENDER 

Section 1.01 Tender of Shares. The Stockholders agree: (i) to promptly (and, in any event, not later than ten (10) Business
Days after commencement of the Offer) validly tender or cause to be validly tendered into the Offer, pursuant to and in accordance with the terms of the Offer and Rule 14d-2 under the Exchange Act, all of the outstanding Company Shares Beneficially
Owned by the Stockholders (free and clear of any Liens or restrictions, except for any applicable restrictions on transfer under the Securities Act and the rules and regulations promulgated thereunder that would not in any event prevent the
Stockholders from tendering their Company Shares in accordance with this Agreement or otherwise complying with the Stockholders’ obligations under this Agreement); and (ii) if the Stockholders acquire Beneficial Ownership of any additional
outstanding Company Shares during the Support Period, to promptly (and, in any event, not later than three (3) Business Days after the acquisition of Beneficial Ownership of such additional outstanding Company Shares) validly tender or cause to
be validly tendered into the Offer, pursuant to and in accordance with the terms of the Offer, all of such additional Company Shares (free and clear of any Liens or restrictions, except for any applicable restrictions on transfer under the
Securities Act and the rules and regulations promulgated thereunder that would not in any event prevent the Stockholders from tendering their Company Shares in accordance with this Agreement or otherwise complying with the Stockholders’
obligations under this Agreement). Notwithstanding anything in this Agreement to the contrary, (a) the Stockholders shall not have any obligation under this Section 1.01 to tender into the Offer if the tender would give rise to liability
(including disgorgement) under Section 16(b) of the Exchange Act, and (b) nothing herein shall require the Stockholders to exercise any Company Option or other equity award, and nothing herein shall prohibit the Stockholders from
exercising any Company Option held as of the date of this Agreement. 
 Section 1.02 No Withdrawal. The Stockholders agree not
to withdraw, and not to cause or permit to be withdrawn, any Company Shares from the Offer unless and until (i) the Offer expires without Acquisition Sub having accepted for payment any Company Shares tendered in the Offer or
(ii) termination of this Agreement in accordance with Section 6.03 hereof. 
 Section 1.03 Conditional Obligation. The
Stockholders acknowledge and agree that Acquisition Sub’s obligation to accept for payment Company Shares tendered into the Offer, including any Company Shares tendered by the Stockholders, is subject to the terms and conditions of the Merger
Agreement and the Offer. 

 ARTICLE 2 

VOTING AGREEMENT; GRANT OF PROXY 

Section 2.01. Voting Agreement. The Stockholders hereby agree that, during the Support Period, the Stockholders will not vote any
outstanding Company Shares Beneficially Owned by them in favor of, or consent to, and will vote against and not consent to, the approval of any (i) Acquisition Proposal, (ii) reorganization, recapitalization, dissolution, liquidation or
winding-up of the Company or any other extraordinary transaction involving the Company other than the Merger or (iii) corporate action the consummation of which would prevent or materially delay the consummation, of any of the transactions
contemplated by the Merger Agreement. The Stockholders shall use their commercially reasonable efforts to ensure that, during the Support Period, any other Person having voting power with respect to any outstanding Company Shares Beneficially Owned
by the Stockholders will not vote any such shares in favor of or consent to, and will vote against, the approval of the matters described in clauses (i) through (iii) of the preceding sentence. 

Section 2.02. Irrevocable Proxy. The Stockholders hereby revoke (or agree to cause to be revoked) any and all previous proxies
granted with respect to the outstanding Company Shares Beneficially Owned by the Stockholders. By entering into this Agreement, the Stockholders hereby grant a proxy appointing Parent as the Stockholders’ attorney-in-fact and proxy, with full
power of substitution, for and in the Stockholders’ name, to vote, express consent or dissent, or otherwise to utilize such voting power in the manner contemplated by Section 2.01 above as Parent or its proxy or substitute shall, in
Parent’s sole discretion, deem proper with respect to the outstanding Company Shares Beneficially Owned by the Stockholders. The proxy granted by the Stockholders pursuant to this Article 2 is irrevocable and is granted in consideration of
Parent and Acquisition Sub entering into this Agreement and the Merger Agreement and incurring certain related fees and expenses. The proxy granted by the Stockholders shall not be exercised to vote, consent or act on any matter except as
contemplated by Section 2.01 above. The proxy granted by the Stockholders shall be revoked, terminated and of no further force or effect, automatically and without further action, upon termination of this Agreement in accordance with
Section 6.03 hereof. 
 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

 The Stockholders represent and warrant to Parent that: 

Section 3.01. Authorization. The execution, delivery and performance by the Stockholders of this Agreement and the consummation by
the Stockholders of the transactions contemplated 

  
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hereby are within the powers of the Stockholders and, if applicable, have been duly authorized by all necessary corporate, company, partnership or other action. This Agreement constitutes a
legal, valid and binding agreement of the Stockholders, enforceable against the Stockholders in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, moratorium or similar law affecting creditors’ rights
generally, to rules of law governing specific performance, injunctive relief and other equitable remedies, to approval by the Company Board of this Agreement and the Merger Agreement and the transactions contemplated hereby and thereby for purposes
of Section 203 of the DGCL and to the federal securities laws and rules promulgated thereunder, including but not limited to, any withdrawal rights under the tender offer rules. If this Agreement is being executed in representative or fiduciary
capacity, the Person signing this Agreement has full power and authority to enter into and perform this Agreement. 
 Section 3.02.
Non-Contravention. The execution, delivery and performance by the Stockholders of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) violate the certificate of incorporation or bylaws, or
other comparable charter or organizational documents, of the Stockholders, if any, (ii) violate any Applicable Law, (iii) conflict with or violate or require any consent, approval, notice or other action by any Person under, constitute a
default (with or without notice or lapse of time or both) under, or give rise to any right of termination, cancellation or acceleration or to a loss of any benefit to which the Stockholders are entitled under any provision of any Contract binding on
the Stockholders or any of the Stockholders’ properties or assets, including the Company Shares Beneficially Owned by the Stockholders, other than under the registration rights and stockholders’ agreement filed as Exhibit 10.2.0 to the
Company’s Form 8-K filed with the SEC on November 30, 2010 or (iv) result in the imposition of any Lien on any asset of the Stockholders. 

Section 3.03. Ownership of Shares. Each Stockholder is the respective Beneficial Owner of the Company Shares as set forth on
Exhibit A, free and clear of any Lien and any other limitation or restriction (including any restriction on the right to vote or otherwise dispose of the Company Shares Beneficially Owned by the Stockholders), except for any applicable restrictions
on transfer under the federal or state securities laws and the rules and regulations promulgated thereunder that would not in any event prevent the Stockholders from tendering their Company Shares in accordance with this Agreement or otherwise
complying with the Stockholders’ obligations under this Agreement. 
 Section 3.04. Total Shares. Except for the Company
Shares set forth on the signature page hereto, the Stockholders do not Beneficially Own any (i) shares of capital stock or voting securities of the Company or (ii) options, warrants or other rights to acquire, or securities convertible
into or exchangeable for (in each case, whether currently, upon lapse of time, following the satisfaction of any conditions, upon the occurrence of any event or any combination of the foregoing), any capital stock, voting securities or securities
convertible into or exchangeable for capital stock or voting securities of the Company. 
 Section 3.05. No Litigation. As of
the date of this Agreement, there is no suit, claim, action, investigation or other Proceeding pending or, to the knowledge of the Stockholders, threatened against any of the Stockholders at law or in equity before or by any Governmental Authority
that could reasonably be expected to impair the ability of the Stockholders to perform the Stockholders’ obligations hereunder or consummate the transactions contemplated hereby. 

  
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 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF PARENT AND
ACQUISITION SUB 
 Parent and Acquisition Sub represent and warrant to the Stockholders: 

Section 4.01. Authorization. The execution, delivery and performance by Parent and Acquisition Sub of this Agreement and the
consummation by Parent and Acquisition Sub of the transactions contemplated hereby are within the powers of Parent and the corporate powers of Acquisition Sub and have been duly authorized by all necessary action. This Agreement constitutes a valid
and binding agreement of Parent and Acquisition Sub, enforceable against Parent and Acquisition Sub in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, moratorium or similar law affecting creditors’
rights generally and to rules of law governing specific performance, injunctive relief and other equitable remedies. 
 ARTICLE 5 

COVENANTS OF THE STOCKHOLDERS 

The Stockholders hereby covenant and agree that: 

Section 5.01. No Proxies for, Encumbrances on or Disposition of Shares. During the Support Period, except pursuant to the terms of
this Agreement, the Stockholders shall not, without the prior written consent of Parent, directly or indirectly, (a) grant any proxies, or enter into any voting trust or other Contract, with respect to the voting of any Company Shares
Beneficially Owned by the Stockholders, (b) sell, assign, transfer, tender, encumber or otherwise dispose of, or enter into any Contract with respect to the direct or indirect sale, assignment, transfer, tender, encumbrance or other disposition
of, any such Company Shares or (c) take any other action that would make any representation or warranty of the Stockholders contained herein untrue or incorrect in any material respect or in any way restrict, limit or interfere in any material
respect with the performance of the Stockholders’ obligations hereunder, or seek to do or solicit any of the foregoing actions, or cause or permit any other Person to take any of the foregoing actions. Without limiting the generality of the
foregoing, during the Support Period, the Stockholders shall not tender, agree to tender or cause or permit to be tendered any Company Shares Beneficially Owned by the Stockholders into or otherwise in connection with any tender or exchange offer,
except pursuant to the Offer. Notwithstanding the foregoing, the Stockholders may transfer Company Shares held by the Stockholders to a trust for the benefit of any of the Stockholders; provided that a transfer referred to in this sentence
shall be permitted only if, as a precondition to such transfer, the transferee agrees in a writing, reasonably satisfactory in form and substance to Parent, to be bound by all of the terms of this Agreement. 

Section 5.02. Other Offers. Neither the Stockholders (in the Stockholders’ capacity as such), nor any of the
Stockholders’ Subsidiaries, if any, shall, nor shall the Stockholders or any of the Stockholders’ Subsidiaries, if any, authorize any of their or their respective Representatives to, and the Stockholders shall instruct, and cause each
applicable Subsidiary of the Stockholders to instruct, each such Representative not to, directly or indirectly, take any of the following actions: (i) solicit, initiate, cause or induce the making, submission or announcement of, or knowingly
encourage, facilitate or assist, an Acquisition Proposal; (ii) furnish to any Person (other than Parent, Acquisition Sub or any designees of Parent or 

  
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Acquisition Sub) any non-public information relating to the Company or any of its Subsidiaries, or afford to any Person (other than Parent, Acquisition Sub or any designees of Parent or
Acquisition Sub) access to the business, properties, assets, books, records or other non-public information, or to any personnel, of the Company or any of its Subsidiaries, in any such case with the intent to induce the making, submission or
announcement of, or the intent to encourage, facilitate or assist, an Acquisition Proposal or any inquiries or the making of any proposal that would reasonably be expected to lead to an Acquisition Proposal; (iii) participate or engage in
discussions or negotiations with any Person with respect to an Acquisition Proposal; or (iv) enter into any Contract contemplating or otherwise relating to an Acquisition Transaction. The Stockholders shall, and shall cause their Subsidiaries,
if any, and Representatives to immediately cease any and all existing discussions or negotiations with any Persons conducted heretofore with respect to any Acquisition Proposal, and shall request the return from all such Persons or the destruction
by such Persons of all copies of confidential information previously provided to such Persons by the Stockholders, their Subsidiaries or Representatives. Nothing in this Agreement shall be construed to prohibit any Stockholder or any of such
Stockholder’s Representatives who is an officer or member of the Board of Directors of the Company from taking any action in his or her capacity as an officer or member of the Board of Directors of the Company or, subject to the limitations set
forth in the Merger Agreement, from taking any action with respect to any Acquisition Proposal as an officer or member of such Board of Directors. 

Section 5.03. Communications. The Stockholders, and each of the Stockholders’ Subsidiaries, if any, shall not, and shall
cause their respective officers, directors, employees or other Representatives, if any, not to, directly or indirectly, make any press release, public announcement or other public communication that criticizes or disparages this Agreement or the
Merger Agreement or any of the transactions contemplated hereby and thereby, without the prior written consent of Parent. The Stockholders hereby (i) consent to and authorize the publication and disclosure by Parent, Acquisition Sub and the
Company (including in the Schedule TO, the Schedule 14D-9 or any other publicly filed documents relating to the Merger, the Offer or any other transaction contemplated by the Merger Agreement) of: (a) the Stockholders’ identity;
(b) the Stockholders’ Beneficial Ownership of Company Shares; and (c) the nature of the Stockholders’ commitments, arrangements and understandings under this Agreement and (ii) agrees as promptly as practicable to notify
Parent, Acquisition Sub and the Company of any required corrections with respect to any written information supplied by the Stockholders specifically for use in any such disclosure document. Notwithstanding the foregoing, nothing herein shall limit
or affect any actions taken by the Stockholders (or any affiliated officer or director of the Company) in compliance with the Merger Agreement. 

Section 5.04. Additional Shares. In the event that the Stockholders acquire Beneficial Ownership of, or the power to dispose of or
vote or direct the disposition or voting of, any additional Company Shares or other interests in or with respect to the Company, such Company Shares or other interests shall, without further action of the parties, be subject to the provisions of
this Agreement, and the number of Company Shares Beneficially Owned by the Stockholders set forth on the signature page hereto will be deemed amended accordingly. The Stockholders shall promptly notify Parent and Acquisition Sub of any such event.

 Section 5.05. Waiver of Appraisal and Dissenters’ Rights and Actions. The Stockholders hereby (i) waive and agree
not to exercise any rights (including under Section 262 of the General 

  
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Corporation Law of the State of Delaware) to demand appraisal of any Company Shares Beneficially Owned by the Stockholders or rights to dissent from the Merger which may arise with respect to the
Merger and (ii) agrees not to commence or participate in, and to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or other Proceeding, against Parent, Acquisition Sub, the Company or
any of their respective successors relating to the negotiation, execution or delivery of this Agreement or the Merger Agreement or the making or consummation of the Offer or consummation of the Merger, including any Proceeding (x) challenging
the validity of, or seeking to enjoin the operation of, any provision of this Agreement or (y) alleging a breach of any fiduciary duty of the Board of Directors of the Company in connection with the Merger Agreement or the transactions
contemplated thereby. 
 ARTICLE 6 

MISCELLANEOUS 

Section 6.01. Other Definitional and Interpretative Provisions. Unless specified otherwise, in this Agreement the obligations of
any party hereto consisting of more than one Person are several and not joint. The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles and Sections are to Articles and Sections
of this Agreement unless otherwise specified. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import. The word “or” has the inclusive meaning represented by the
phrase “and/or.” “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any Person include the successors
and permitted assigns of that Person. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. 

Section 6.02. Further Assurances. The Stockholders shall, to the extent requested by Parent, promptly: (i) use commercially
reasonable efforts to cause each other Person having voting power with respect to any Company Shares Beneficially Owned by the Stockholders to execute and deliver to Parent a proxy with respect to such shares, which shall be identical to the proxy
in Section 2.02 above; and (ii) upon request, surrender the certificates representing the Company Shares owned of record by the Stockholders, and use commercially reasonable efforts to request the certificates representing any other
outstanding Company Shares Beneficially Owned by the Stockholders, to be surrendered so that the transfer agent for such shares may affix thereto an appropriate legend referring to this Agreement. 

Section 6.03. Amendments; Termination. Any provision of this Agreement may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement or in the case of a waiver, by the party against whom the waiver is to be effective. This Agreement shall terminate automatically with respect to a
Stockholder upon the earliest of (i) the Effective Time, (ii) the termination of the 

  
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Merger Agreement in accordance with its terms, (iii) any Company Board Recommendation Change made in accordance with Section 7.4 of the Merger Agreement, (iv) the acquisition by
Parent of all of the outstanding Company Shares Beneficially Owned by such Stockholder, whether pursuant to the Offer or otherwise or (v) the entry, without the prior written consent of such Stockholder, into any amendment or modification to
the Merger Agreement or any waiver of any of the Company’s rights under the Merger Agreement, in each case, that reduces the amount, changes the form or otherwise adversely effects the consideration payable to the Stockholders under the Merger
Agreement as in effect on the date hereof; provided, however, that no termination of this Agreement shall relieve any party hereto from any liability for any breach of any provision of this Agreement prior to such termination and this
Section 6.03 shall survive any termination of this Agreement. 
 Section 6.04. Expenses. All costs and expenses incurred in
connection with this Agreement shall be paid by the party incurring such cost or expense. 
 Section 6.05. Successors and
Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that the Stockholders may not assign, delegate or otherwise transfer any
of their rights or obligations under this Agreement without the prior written consent of Parent except in accordance with the terms of this Agreement. Any assignment, delegation or transfer in violation of the foregoing shall be null and void. 

Section 6.06. Governing Law. This Agreement shall be governed by and construed in accordance with and governed by the laws of the
State of Delaware, without regard to the conflicts of law rules of such State that would result in the application of any law other than the law of the State of Delaware. 

Section 6.07. Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in PDF form or by any other electronic means designed to
preserve the original graphic and pictorial appearance of a document, will be deemed to have the same effect as physical delivery of the paper document bearing the original signatures. This Agreement shall become effective when each party hereto
shall have received counterparts hereof signed by all of the other parties hereto and the Merger Agreement has become effective. Until and unless each party has received a counterpart hereof signed by the other party hereto and the Merger Agreement
has become effective, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). 

Section 6.08. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired
or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such a determination, the parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the 

  
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original intent of the parties hereto as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest
extent possible. 
 Section 6.09. Specific Performance. The parties hereto agree that irreparable damage to Parent or
Acquisition Sub would occur, damages would be incalculable and would be an insufficient remedy and no other adequate remedy would exist at law or in equity, in each case in the event that any provision of this Agreement were not performed by the
Stockholders in accordance with the terms hereof, and that each of Parent and Acquisition Sub shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the Stockholders’ performance of
the terms and provisions hereof, in addition to any other remedy to which Parent or Acquisition Sub may be entitled at law or in equity. The Stockholders hereby waive any defenses based on the adequacy of any other remedy, whether at law or in
equity, that might be asserted as a bar to the remedy of specific performance of any of the terms or provisions hereof or injunctive relief in any action brought therefor by Parent or Acquisition Sub. 

Section 6.10. Defined Terms. For the purposes of this Agreement: 

(i) Capitalized terms used but not defined herein shall have the respective meanings set forth in the Merger Agreement. 

(ii) The Stockholders shall be deemed to “Beneficially Own” or to have acquired “Beneficial
Ownership” of a security if any of the Stockholders (a) is the record owner of such security; or (b) is the “beneficial owner” with respect to the investment authority of such security (within the meaning of Rule 13d-3
under the Exchange Act) of such security. 
 (iii) “Support Period” shall mean the period from the date of
this Agreement through the date upon which this Agreement terminates in accordance with its terms. 
 Section 6.11. Action in the
Stockholders’ Capacity Only. The Stockholders, if directors or officers of the Company, do not make any agreement or understanding herein as a directors or officers of the Company. The Stockholders sign this Agreement solely in their
capacity as a Beneficial Owner of the Company Shares Beneficially Owned by the Stockholders, and nothing herein shall limit or affect any actions taken in a Stockholder’s capacity as an officer or director of the Company, including complying
with or exercising such Stockholder’s fiduciary duties as a member of the Board of Directors of the Company. 

  
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 Section 6.12. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly delivered and received hereunder (i) four (4) Business Days after being sent by registered or certified mail, return receipt requested, postage prepaid, (ii) one (1) Business Day
after being sent for next Business Day delivery, fees prepaid, via a reputable nationwide overnight courier service, or (iii) immediately upon delivery by hand or by facsimile (with a written or electronic confirmation of delivery), in each
case to the intended recipient as set forth below: 
 if to Parent or Acquisition Sub, to: 

BCP IV GrafTech Holdings LP 

c/o Brookfield Capital Partners Ltd. 

Brookfield Place 
 181 Bay
Street, Suite 300 
 Toronto, Ontario M5J 2T3 

			
	Attn:		David Nowak
			Peter Gordon
	Email:		david.nowak@brookfield.com
			peter.gordon@brookfield.com
	Fax:		416-365-9642

 with a copy to: 

Weil, Gotshal & Manges LLP 

767 Fifth Avenue 
 New York, NY
10153 

			
	Attention:		Michael J. Aiello
			Jaclyn L. Cohen

			
	Email:		michael.aiello@weil.com
			jackie.cohen@weil.com

 Fax: (212) 310-8007 

if to a Stockholder, to: 

Jordanmill Ventures LLC 

			
	Attn:		Nathan Milikowsky

 822 Boylston Street 

Chestnut Hill, MA 02467 

E-mail: nmilikowsky@jordanmill.com 

with a copy to: 
 Kirkland &
Ellis LLP 
 601 Lexington Avenue 

New York, New York 10022 

			
	Attn:		David B. Feirstein
	E-mail:		david.feirstein@kirkland.com

 Fax: 212-446-4900 

Section 6.13. Submission to Jurisdiction. Each party to this Agreement hereby irrevocably and unconditionally (i) consents to
the submission to the exclusive jurisdiction of the Court of Chancery of the State of Delaware sitting in Wilmington, Delaware for any Legal Proceedings arising out of or relating to this Agreement or the transactions contemplated hereby,
(ii) agrees not to commence any Legal Proceeding relating thereto except in such court and in 

  
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accordance with the provisions of this Agreement, (iii) agrees that service of any process, summons, notice or document by U.S. registered mail, or otherwise in the manner provided for
notices in Section 6.12 hereof, shall be effective service of process for any such Legal Proceeding brought against it in any such court, (iv) waives, to the fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any such Legal Proceeding in such courts and (v) agrees not to plead or claim in any court that any such Legal Proceeding brought in any such court has been brought in an inconvenient forum. Each
of the parties hereto agrees that a final judgment in any such Legal Proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other manner permitted by Applicable Law. 
 Section 6.14
Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 6.15. Rules of Construction. The parties hereto agree that they have been represented by counsel during the negotiation
and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or
document. 
 Section 6.16. Waiver. No failure on the part of any party to exercise any power, right, privilege or remedy under
this Agreement, and no delay on the part of any party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power,
right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. A party hereto shall not be deemed to have waived any claim arising out of this Agreement, or any power, right,
privilege or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of such party; and any such waiver shall not be
applicable or have any effect except in the specific instance in which it is given. 
 Section 6.17. No Ownership Interest. All
rights, ownership and economic benefits of and relating to the Company Shares Beneficially Owned by the Stockholders at a given time shall remain vested in and belong to the Stockholders as of such time, and Parent shall have no authority to
exercise any power or authority to direct the Stockholders in the voting of any of the Company Shares Beneficially Owned by the Stockholders, except as otherwise specifically provided herein, or in the performance of the Stockholders’ duties or
responsibilities as stockholders of the Company. 
 Section 6.18 Entire Agreement. This Agreement constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, among the parties hereto with respect to the subject matter hereof. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year
first above written. 
  

					
	 BCP IV GRAFTECH HOLDINGS LP,
 a
Delaware limited partnership

		
	By:		BPE IV (Non Cdn) GP LP,
			its general partner

 
					
		
	    By:		Brookfield Capital Partners, Ltd.,
			its general partner
		
			 /s/ David Nowak

			Name:		David Nowak
			Title:		Managing Partner
		
			 /s/ J. Peter Gordon

			Name:		J. Peter Gordon
			Title:		Managing Partner
	
	 ATHENA ACQUISITION SUBSIDIARY INC.,

a Delaware corporation

		
	By:		 /s/ David Neiman

			Name:		David Neiman
			Title:		Senior Vice President

  
 [Signature Page to
Tender and Support Agreement] 

					
	
	STOCKHOLDER:
	
	 /s/ Daniel Milikowsky

	 Daniel Milikowsky

	
	STOCKHOLDER
	Daniel Milikowsky Family Holdings, LLC
		
	By:		 /s/ Daniel Milikowsky

	Name:		Daniel Milikowsky
	Title:		Investment Manager
	
	STOCKHOLDER
	The Daniel and Sharon Milikowsky Family Foundation, Inc.
		
	By:		 /s/ Daniel Milikowsky

	Name:		Daniel Milikowsky
	Title:		President
	
	STOCKHOLDER
	The Rebecca and Nathan Milikowsky Family Foundation
		
	By:		 /s/ Nathan Milikowsky

	Name:		Nathan Milikowsky
	Title:		Trustee
	
	STOCKHOLDER
	
	 /s/ Nathan Milikowsky

	Nathan Milikowsky
	
	STOCKHOLDER
	
	 /s/ Rebecca Milikowsky

	Rebecca Milikowsky

 [Signature Page to Tender and Support Agreement] 

 Exhibit A 
  

													
	 Name
	  	Shares
Beneficially
Owned	 	 	Shares Owned
of Record	 	  	Shares subject to
Company Options	 
	 Nathan Milikowsky
	  	 	6,521,228	1 	 	 	11,795	  	  	 	15,000	2 
	 Daniel Milikowsky
	  	 	8,757,741	3 	 	 	0	  	  	 	0	  
	 The Rebecca and Nathan Milikowsky Family Foundation
	  	 	147,360	  	 	 	0	  	  	 	0	  
	 The Daniel and Sharon Milikowsky Family Foundation, Inc.
	  	 	1,257,360	  	 	 	0	  	  	 	0	  
	 Daniel Milikowsky Family Holdings, LLC
	  	 	5,005,489	  	 	 	0	  	  	 	0	  

  

	1 	The 6,521,228 shares include the 147,360 shares beneficially owned by The Rebecca and Nathan Milikowsky Family Foundation as well as the 15,000 Company Options held by Nathan Milikowsky. 

	2 	The 15,000 Company Options consist of 5,000 Company Options which have vested and are currently exercisable and 10,000 Company Options that will become exercisable on June 5, 2015. 

	3 	The 8,757,741 shares include the 1,257,360 shares beneficially owned by The Daniel and Sharon Milikowsky Family Foundation, Inc. and the 5,005,489 shares beneficially owned by Daniel Milikowsky Family Holdings, LLC.Exhibit 4.1

 

NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY.

 

NEPHROS, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

	Warrant No. 2015-[●]	 	Original Issue Date: May [●], 2015

 

Nephros, Inc., a Delaware corporation
(the “Company”), hereby certifies that, for value received, [●] or its permitted registered assigns (the
“Holder”), is entitled to purchase from the Company up to a total of [●] shares of common stock, $0.001
par value (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all
such shares, the “Warrant Shares”) at an exercise price per share equal to $0.85 (as adjusted from time to time
as provided in Section 9 herein, the “Exercise Price”), at any time and from time to time from on or after the
date hereof (the “Trigger Date”) and through and including 5:30 P.M., New York City time, on May [●], 2020 (the
“Expiration Date”), and subject to the following terms and conditions:

 

This Warrant (this “Warrant”)
is one of a series of similar warrants issued pursuant to that certain Securities Purchase Agreement, dated May 12, 2015, by and
among the Company and the Purchasers identified therein (the “Purchase Agreement”). All such warrants are referred
to herein, collectively, as the “Warrants.”

 

1.          Definitions.
In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings
given to such terms in the Purchase Agreement.

 

2.          
Registration of Warrants. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder (which shall include the initial Holder or,
as the case may be, any registered assignee to which this Warrant is permissibly assigned hereunder) from time to time. The Company
may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

    	 

    	 

    

3.          
Registration of Transfers. Subject to the restrictions on transfer set forth in Section 4.1 of the Purchase Agreement and
compliance with all applicable securities laws, the Company shall register the transfer of all or any portion of this Warrant in
the Warrant Register, upon (i) surrender of this Warrant, with the Form of Assignment attached as Schedule 2 hereto duly
completed and signed, to the Company’s transfer agent or to the Company at its address specified herein and (ii) if the Registration
Statement is not effective, (x) delivery, at the request of the Company, of an opinion of counsel reasonably satisfactory to the
Company to the effect that the transfer of such portion of this Warrant may be made pursuant to an available exemption from the
registration requirements of the Securities Act and all applicable state securities or blue sky laws and (y) delivery by the transferee
of a written statement to the Company certifying that the transferee is an “accredited investor” as defined in Rule
501(a) under the Securities Act and making the representations and certifications set forth in Section 3.2(b), (c) and (d) of the
Purchase Agreement, to the Company at its address specified in the Purchase Agreement. Upon any such registration or transfer,
a new warrant to purchase Common Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”)
evidencing the portion of this Warrant so transferred shall be issued to the transferee, and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a Holder of
a Warrant.

 

4.           Exercise
and Duration of Warrants.

 

(a)          All
or any part of this Warrant shall be exercisable by the registered Holder at any time and from time to time on or after the Trigger
Date and through and including 5:30 P.M. New York City time on the Expiration Date. Subject to Section 11 hereof (unless
intentionally omitted), at 5:30 P.M., New York City time, on the Expiration Date, the portion of this Warrant not exercised prior
thereto shall be and become void and of no value and this Warrant shall be terminated and no longer outstanding;

 

(b)          The
Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached as Schedule 1
hereto (the “Exercise Notice”), appropriately completed and duly signed and (ii) payment of the Exercise Price
in immediately available funds for the number of Warrant Shares as to which this Warrant is being exercised, and the date such
items are delivered to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date.”
The delivery by (or on behalf of) the Holder of the Exercise Notice and the applicable Exercise Price as provided above shall constitute
the Holder’s certification to the Company that its representations contained in Section 3.2(b), (c) and (d) of the Purchase
Agreement are true and correct as of the Exercise Date as if remade in their entirety (or, in the case of any transferee Holder
that is not a party to the Purchase Agreement, such transferee Holder’s certification to the Company that such representations
are true and correct as to such assignee Holder as of the Exercise Date). The Holder shall not be required to deliver the original
Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation
of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares.

 

    	2

    	 

    

 

5.           Delivery
of Warrant Shares. 

 

(a)          Upon
exercise of this Warrant, the Company shall promptly (but in no event later than three Trading Days after the Exercise Date) issue
or cause to be issued and cause to be delivered to or upon the written order of the Holder and in such name or names as the Holder
may designate (provided that, if the Registration Statement is not effective and the Holder directs the Company to deliver a certificate
for the Warrant Shares in a name other than that of the Holder or an Affiliate of the Holder, it shall deliver to the Company on
the Exercise Date an opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such Warrant
Shares in such other name may be made pursuant to an available exemption from the registration requirements of the Securities Act
and all applicable state securities or blue sky laws), a certificate for the Warrant Shares issuable upon such exercise, free of
restrictive legends, unless a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling
stockholder thereunder is not then effective or the Warrant Shares are not freely transferable pursuant to Rule 144 under the Securities
Act pursuant to transactions in which paragraph (c)(1) of such rule do not apply. The Holder, or any Person permissibly so designated
by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise
Date. If the Warrant Shares are to be issued free of all restrictive legends, the Company shall, upon the written request of the
Holder, use its best efforts to deliver, or cause to be delivered, Warrant Shares hereunder electronically through The Depository
Trust Company or another established clearing corporation performing similar functions, if available; provided, that, the Company
may, but will not be required to, change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically
through such a clearing corporation.

 

(b)          If
(1) a certificate representing the Warrant Shares is not delivered to the Holder within three (3) Trading Days of the due exercise
of this Warrant by the Holder and (2) prior to the time such certificate is received by the Holder, the Holder, or any third party
on behalf of the Holder or for the Holder’s account, purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by the Holder of shares represented by such certificate (a “Buy-In”),
then the Company shall pay in cash to the Holder (for costs incurred either directly by such Holder or on behalf of a third party)
the amount by which the total purchase price paid for Common Stock as a result of the Buy-In (including brokerage commissions,
if any) exceeds the proceeds received by such Holder as a result of the sale to which such Buy-In relates. The Holder shall provide
the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss.

 

6.          Charges,
Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be
made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense in respect
of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that
the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of
any certificates for Warrant Shares or Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall
be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

 

    	3

    	 

    

 

7.          
Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant,
but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case) and,
in each case, a customary and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a New
Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then
the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue
the New Warrant.

 

8.          
Reservation of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate
of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares
upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the
Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares
so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and nonassessable. The Company will take all such action as may be
necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Shares may be
listed.

 

9.          Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 9.

 

(a)          Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides
its outstanding shares of Common Stock into a larger number of shares, or (iii) combines its outstanding shares of Common Stock
into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction, the numerator of
which shall be the number of shares of Common Stock outstanding immediately before such event and the denominator of which shall
be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of
this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive
such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately
after the effective date of such subdivision or combination.

 

    	4

    	 

    

 

(b)          
Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the Company effects any merger or consolidation
of the Company with or into another Person, in which the shareholders of the Company as of immediately prior to the transaction
own less than a majority of the outstanding stock of the surviving entity, (ii) the Company effects any sale of all or substantially
all of its assets or a majority of its Common Stock is acquired by a third party, in each case, in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which all or substantially
all of the holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property and
would result in the shareholders of the Company immediately prior to such tender offer or exchange offer owning less than a majority
of the outstanding stock after such tender offer or exchange offer, or (iv) the Company effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section
9(a) above) (in any such case, a “Fundamental Transaction”), then the Holder shall have the right thereafter
to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled
to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant without regard to any limitations
on exercise contained herein (the “Alternate Consideration”). The Company shall not effect any such Fundamental
Transaction unless prior to or simultaneously with the consummation thereof, any successor to the Company, surviving entity or
the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or entity shall assume the obligation
to deliver to the Holder, such Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be entitled
to purchase and/or receive (as the case may be), and the other obligations under this Warrant. The provisions of this paragraph
(c) shall similarly apply to subsequent transactions analogous to a Fundamental Transaction.

 

(c)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to Subparagraph 9(a), the number
of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that
after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall
be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

(d)          Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as
applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for
the account of the Company, and the sale or issuance of any such shares shall be considered an issue or sale of Common Stock.

 

(e)           Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will,
at the written request of the Holder, compute such adjustment, in good faith, in accordance with the terms of this Warrant and
prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or
type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the
Company will deliver a copy of each such certificate to the Holder and to the Company’s transfer agent.

 

10.         Payment
of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds; provided, however, that if,
on any Exercise Date the shares issuable upon exercise of this Warrant are not freely resalable without restriction under the Securities
Act, the Holder may, in its sole discretion, satisfy its obligation to pay the Exercise Price through a “cashless exercise”,
in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

 

    	5

    	 

    

 

X = Y [(A-B)/A]

 

where:

X = the number of Warrant Shares to be issued to the
Holder.

 

Y = the total number of Warrant Shares with respect
to which this Warrant is being exercised.

 

A = the average of the Closing Sale Prices of the shares
of Common Stock (as reported by Bloomberg Financial Markets) for the five Trading Days ending on the date immediately preceding
the Exercise Date.

 

B = the Exercise Price then in effect for the applicable
Warrant Shares at the time of such exercise.

 

For purposes of this Warrant, “Closing Sale Price”
means, for any security as of any date, the last trade price for such security on the principal securities exchange or trading
market for such security, as reported by Bloomberg Financial Markets, or, if such exchange or trading market begins to operate
on an extended hours basis and does not designate the last trade price, then the last trade price of such security prior to 4:00:00
p.m., New York Time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last trade price of such
security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial Markets,
or, if no last trade price is reported for such security by Bloomberg Financial Markets, the average of the bid prices, or the
ask prices, respectively, of any market makers for such security as reported in the OTC Markets, LLC. If the Closing Sale Price
cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security
on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder
are unable to agree upon the fair market value of such security, then the Company shall, within two business days submit via facsimile
(a) the disputed determination of the Warrant Exercise Price to an independent, reputable investment bank selected by the Company
and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside
accountant. The Company shall cause, at its sole expense, the investment bank or the accountant, as the case may be, to perform
the determinations or calculations and notify the Company and the Holder of the results no later than ten business days from the
time it receives the disputed determinations or calculations. Such investment bank's or accountant's determination or calculation,
as the case may be, shall be binding upon all parties absent demonstrable error. All such determinations to be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period

 

    	6

    	 

    

 

For purposes of Rule 144 promulgated under the Securities Act, it
is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have
been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this
Warrant was originally issued pursuant to the Purchase Agreement (provided that the Commission continues to take the position that
such treatment is proper at the time of such exercise).

 

11.         [Intentionally
Omitted.] [OR] [Limitations on Exercise. [THIS BLOCKER PROVISIONS TO BE INCLUDED ONLY IF REQUEST OF THE HOLDER.]

 

(a)          Notwithstanding
anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of
this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that, following such exercise
(or other issuance), the total number of shares of Common Stock then beneficially owned by the Holder and its Affiliates and any
other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d)
of the Exchange Act, does not exceed 4.99% of the total number of issued and outstanding shares of Common Stock (including for
such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Each delivery of an
Exercise Notice by the Holder will constitute a representation by the Holder that it has evaluated the limitation set forth in
this Section and determined that issuance of the full number of Warrant Shares requested in such Exercise Notice is permitted under
this Section. The Company’s obligation to issue shares of Common Stock in excess of the limitation referred to in this Section
shall be suspended (and, except as provided below, shall not terminate or expire notwithstanding any contrary provisions hereof)
until such time, if any, as such shares of Common Stock may be issued in compliance with such limitation; provided, that, if, as
of 5:30 P.M., New York City time, on the Expiration Date, the Company has not received written notice that the shares of Common
Stock may be issued in compliance with such limitation, the Company’s obligation to issue such shares shall terminate. This
provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine
the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated
in Section 9 of this Warrant. By written notice to the Company, the Holder may waive the provisions of this Section but
any such waiver will not be effective until the 61st day after such notice is delivered to the Company, nor will any
such waiver effect any other Holder.

 

(b)          
Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon
any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that, following
such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates
and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section
13(d) of the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of Common Stock (including
for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Each delivery of an
Exercise Notice hereunder will constitute a representation by the Holder that it has evaluated the limitation set forth in this
Section and determined that issuance of the full number of Warrant Shares requested in such Exercise Notice is permitted under
this Section. The Company’s obligation to issue shares of Common Stock in excess of the limitation referred to in this Section
shall be suspended (and, except as provided below, shall not terminate or expire notwithstanding any contrary provisions hereof)
until such time, if any, as such shares of Common Stock may be issued in compliance with such limitation; provided, that, if, as
of 5:30 p.m., New York City time, on the Expiration Date, the Company has not received written notice that the shares of Common
Stock may be issued in compliance with such limitation, the Company’s obligation to issue such shares shall terminate. This
provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine
the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated
in Section 9 of this Warrant. This restriction may not be waived.]

 

    	7

    	 

    

 

12.         No
Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of
any fractional shares which would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded to the nearest
whole number.

 

13.          Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall
be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in the Purchase Agreement prior to 5:30 p.m. (New York City time)
on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number specified in the Purchase Agreement on a day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight
courier service specifying next business day delivery, or (iv) upon actual receipt by the party to whom such notice is required
to be given, if by hand delivery. The address and facsimile number of a party for such notices or communications shall be as set
forth in the Purchase Agreement unless changed by such party by two Trading Days’ prior notice to the other party in accordance
with this Section 13.

 

14.          Warrant
Agent. The Company shall serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the
Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation
resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be
a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice
of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last
address as shown on the Warrant Register.

 

    	8

    	 

    

 

15.         Miscellaneous.
 

 

(a)          The
Holder, solely in such Person's capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be
deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to
confer upon the Holder, solely in such Person's capacity as the Holder of this Warrant, any of the rights of a stockholder of the
Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon
the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities
on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether
such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 15(a), the Company
shall provide the Holder with copies of the same notices and other information given to the shareholders of the Company, contemporaneously
with the giving thereof to the shareholders.

 

(b)          Subject
to the restrictions on transfer set forth on the first page hereof and in Section 4.1 of the Purchase Agreement, and compliance
with applicable securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company except
to a successor in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the parties
hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed
to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this
Warrant. This Warrant may be amended only in writing signed by the Company and the Holder, or their successors and assigns.

 

(c)          GOVERNING
LAW; VENUE; WAIVER OF JURY TRIAL. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS
WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE
TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT
IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY
HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING
BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE
ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE
OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER
PERMITTED BY LAW. THE COMPANY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 

 

    	9

    	 

    

 

(d)          The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

 

(e)           In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby, and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(f)           Except
as otherwise set forth herein, prior to exercise of this Warrant, the Holder hereof shall not, by reason of by being a Holder,
be entitled to any rights of a stockholder with respect to the Warrant Shares.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

 

    	10

    	 

    

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	NEPHROS, INC.
	 	 
	 	By:	 
	 	 	Daron Evans
	 	 	President and Chief Executive Officer

 

    	11

    	 

    

 

SCHEDULE 1

 

FORM OF EXERCISE NOTICE

 

(To be executed by the Holder to exercise the
right to purchase shares

of Common Stock under the foregoing Warrant)

  

To:        Nephros, Inc.

 

(1)         The
undersigned is the Holder of Warrant No. __________ (the “Warrant”) issued by Nephros, Inc. a Delaware corporation
(the “Company”). Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth
in the Warrant.

 

(2)         The
undersigned hereby exercises its right to purchase __________ Warrant Shares pursuant to the Warrant.

  

(3)         The
Holder intends that payment of the Exercise Price shall be made as (check one):

 

	 	€	Cash Exercise 
	 	€	“Cashless Exercise” under Section 10

 

(4)         If
the Holder has elected a Cash Exercise, the Holder shall pay the sum of $_______ in immediately available funds to the Company
in accordance with the terms of the Warrant.

 

(5)         Pursuant
to this Exercise Notice, the Company shall deliver to the Holder _____________ Warrant Shares in accordance with the terms of the
Warrant.

 

[(6)         [INCLUDE
ONLY IF WARRANT CONTAINS BLOCKER PROVISION AT THE REQUEST OF THE PURCHASER.] [By its delivery of this Exercise Notice, the undersigned
represents and warrants to the Company that in giving effect to the exercise evidenced hereby, the Holder will not beneficially
own in excess of the number of shares of Common Stock (as determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934) permitted to be owned under Section 11 of this Warrant to which this notice relates.]

 

Dated:_______________, _____

 

	Name of Holder:	 	 

 

	By:	 	 

	Name:	 	 

	Title:	 	 
	(Signature must conform in all respects to name of  Holder as specified on the face of the Warrant)	 

 

    	 

    	 

    

 

SCHEDULE 2

 

NEPHROS, INC.

 

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer
of Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto                             
(the “Transferee” the right represented by the within Warrant to purchase                 
shares of Common Stock of Nephros, Inc. (the “Company”) to which the within Warrant relates and appoints                             
attorney to transfer said right on the books of the Company with full power of substitution in the premises. In connection therewith,
the undersigned represents, warrants, covenants and agrees to and with the Company that:

 

		(a)	the offer and sale of the Warrant contemplated hereby is being made in compliance with Section
4(1) of the United States Securities Act of 1933, as amended (the “Securities Act”) or another valid exemption from
the registration requirements of Section 5 of the Securities Act and in compliance with all applicable securities laws of the states
of the United States;

 

		(b)	the undersigned has not offered to sell the Warrant by any form of general solicitation or general
advertising, including, but not limited to, any advertisement, article, notice or other communication published in any newspaper,
magazine or similar media or broadcast over television or radio, and any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising;

 

		(c)	the undersigned has read the Transferee’s investment letter included herewith, and to its
actual knowledge, the statements made therein are true and correct; and

 

		(d)	the undersigned understands that the Company may condition the transfer of the Warrant contemplated
hereby upon the delivery to the Company by the undersigned or the Transferee, as the case may be, of a written opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect
that such transfer may be made without registration under the Securities Act and under applicable securities laws of the states
of the United States.

 

	Dated:__________	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 
	 	Address of Transferee:
	 	 	 
	 	 	 
	 	 	 

 

	In the presence of:

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