Document:

Exhibit 10.2

 

EXECUTION VERSION

 

 

 BIOSCRIP, INC.

 

__________________________

 

WARRANT AGREEMENT

 

__________________________

 

Dated
As Of March 9, 2015

 

Warrants
to Purchase 3,600,000 shares of Common Stock

 

 

 

    	 

    	 

    

BIOSCRIP, INC.

 

Warrant Agreement

____________________________

 

Warrants For Common Stock

 

WARRANT AGREEMENT, dated as of March 9, 2015,
among BioScrip, Inc., a Delaware corporation (together with its successors and assigns, the “Company”), Coliseum
Capital Partners, L.P., a Delaware limited partnership, Coliseum Capital Partners II, L.P., a Delaware limited partnership, and
Blackwell Partners, LLC, Series A, a Georgia limited liability company (collectively and together with each of their respective
successors and assigns, the “Purchasers”). Capitalized terms shall have the meaning specified in Section 5.1
hereof.

 

RECITALS

 

WHEREAS, the Purchasers have agreed to
acquire from the Company, and the Company has agreed to issue to the Purchasers, Warrants to purchase the number of shares of Common
Stock set forth opposite such Person’s name on Annex 1 attached hereto, which Warrants represent the right to
purchase, in the aggregate, 3,600,000 shares of Common Stock, subject to adjustment
as set forth herein;

 

WHEREAS, each Purchaser shall be issued two
separate Warrant Certificates, each representing one half of the total Warrants to be issued to that Purchaser, and each having
the same terms and conditions except for the Initial Exercise Price, with one Warrant Certificate being exercisable at $5.295
per share of Common Stock on the Issue Date (the “Warrant No. 1 Initial Exercise Price”) and the second
Warrant Certificate being exercisable at $6.595 per share of Common Stock on the Issue
Date (the “Warrant No. 2 Initial Exercise Price”); and

 

WHEREAS, the Company and the Purchasers
wish to enter into this Agreement to govern the terms of the Warrants.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements set forth herein, the parties to this Agreement hereby agree as follows:

 

1.            FORM,
EXECUTION AND TRANSFER OF WARRANT CERTIFICATES.

 

1.1           Form
of Warrant Certificates.

 

The Warrant Certificates shall be in the form
set forth in Attachment A hereto. The Warrant Certificates may have such letters, numbers or other marks of identification
or designation as may be required to comply with any law or with any rule or regulation of any governmental authority, stock exchange
or self-regulatory organization made pursuant thereto (“Law”). Each Warrant Certificate shall be dated the date
of issuance thereof by the Company, either upon initial issuance or upon transfer or exchange. Each Warrant Certificate shall represent
the right to purchase the number of shares of Common Stock set forth in such Warrant Certificate at a price per share of Common
Stock equal to the Exercise Price applicable to that Warrant Certificate; provided, that the number of shares of Common
Stock issuable upon exercise of the Warrants and the Exercise Price thereof shall be subject to adjustment as provided herein.

 

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1.2           Execution
of Warrant Certificates; Registration Books.

 

(a)          Execution
of Warrant Certificates. The Warrant Certificates shall be executed on behalf of the Company by an officer of the Company authorized
by the Board of Directors. In case the officer of the Company who shall have signed any Warrant Certificate shall cease to be such
an officer of the Company before issuance and delivery by the Company of such Warrant Certificate, such Warrant Certificate nevertheless
may be issued and delivered with the same force and effect as though the individual who signed such Warrant Certificate had not
ceased to be such an officer of the Company, and any Warrant Certificate may be signed on behalf of the Company by any individual
who, at the actual date of the execution of such Warrant Certificate, shall be a proper officer of the Company to sign such Warrant
Certificate, although at the date of the execution of this Agreement any such individual was not such an officer.

 

(b)          Registration
Books. The Company will keep or cause to be kept at its office, maintained at the address of the Company referenced in Section
6.5, at the Company’s transfer agent, or at such other office of the Company of which the Company shall have given notice
to each holder of Warrant Certificates, books for registration and transfer of the Warrant Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the Warrant Certificates, the registration number and date
of each of the Warrant Certificates and the Denomination thereof.

 

1.3           Transfer,
Split Up, Combination and Exchange of Warrant Certificates; Lost or Stolen Warrant Certificates.

 

(a)             Transfer,
Split Up, etc.

 

(i)          Transfer.
Subject to compliance with the Securities Act and any applicable state securities laws, any Warrant Certificate (or portion thereof),
with or without other Warrant Certificates, may be transferred to any Person for a Warrant Certificate or Warrant Certificates
in an aggregate like Denomination as the Warrant Certificate or Warrant Certificates (or portions thereof) surrendered then entitled
such registered holder to purchase. Any registered holder desiring to transfer any Warrant Certificate shall make such request
in writing delivered to the Company, which request shall include the identity of the Transferee and the aggregate number of Warrants
to be transferred, and shall surrender the Warrant Certificate or Warrant Certificates (or portions thereof) to be transferred
at the office of the Company referenced in Section 6.5, whereupon the Company shall deliver promptly to such Transferee
a Warrant Certificate or Warrant Certificates, as the case may be, as so requested, which Warrant Certificate or Warrant Certificates
shall evidence, collectively, the same aggregate number of Warrants as the Warrant Certificate or Warrant Certificates (or portions
thereof) so surrendered for transfer and shall issue a new Warrant Certificate to the transferor representing the Warrants retained
by the Transferor if such transfer involved less than the entire number of Warrants held by such Transferor.

 

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(ii)         Split
Up, Combination, Exchange, etc. Any Warrant Certificate, with or without other Warrant Certificates, may be split up, combined
or exchanged for another Warrant Certificate or Warrant Certificates, in an aggregate like Denomination as the Warrant Certificate
or Warrant Certificates surrendered then entitle such registered holder to purchase. Any registered holder desiring to split up,
combine or exchange any Warrant Certificate shall make such request in writing delivered to the Company, and shall surrender the
Warrant Certificate or Warrant Certificates to be split up, combined or exchanged at the office of the Company referenced in Section
6.5, whereupon the Company shall deliver promptly to such registered holder a Warrant Certificate or Warrant Certificates,
as the case may be, as so requested, which Warrant Certificate or Warrant Certificates shall evidence, collectively, the same aggregate
Denomination as the Warrant Certificate or Warrant Certificates so surrendered for split-up, combination or exchange.

 

(b)             Loss,
Theft, etc. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of, and the loss, theft,
destruction or mutilation of, any Warrant Certificate, and:

 

(i)          in
the case of loss, theft or destruction, an affidavit of loss, together with a customary and reasonable indemnity; or

 

(ii)         in
the case of mutilation, upon surrender and cancellation thereof;

 

the Company at its own expense will execute
and deliver, in lieu thereof, a new Warrant Certificate, dated the date of such lost, stolen, destroyed or mutilated Warrant Certificate
and of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant Certificate and evidencing the same Denomination
as the Warrant Certificate so lost, stolen, destroyed or mutilated.

 

1.4           Subsequent
Issuance of Warrant Certificates.

 

Subsequent to the original issuance, no Warrant
Certificates shall be issued except:

 

(a)          Warrant
Certificates issued upon any transfer, combination, split up or exchange of Warrants pursuant to Section 1.3(a);

 

(b)          Warrant
Certificates issued in replacement of mutilated, destroyed, lost or stolen Warrant Certificates pursuant to Section 1.3(b);

 

(c)          Warrant
Certificates issued pursuant to Section 2.3 upon the partial exercise of any Warrant Certificate to evidence the unexercised
portion of such Warrant Certificate; and

 

(d)          Warrant
Certificates to reflect any adjustments pursuant to Section 4.

 

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1.5           Effect
of Issuance in Registered Form.

 

Every holder of a Warrant Certificate by accepting
the same consents and agrees with the Company and with every other holder of a Warrant Certificate that:

 

(a)          the
Warrant Certificates, to the extent then currently transferable, are transferable only on the registry books of the Company if
and when surrendered at the office of the Company referenced in Section 6.5, duly endorsed or accompanied by an instrument
of transfer (in the form attached thereto) and payment of any applicable transfer, stamp or issue tax (a “Tax”);
and

 

(b)          the
Company may deem and treat the Person in whose name each Warrant Certificate is registered as the absolute owner thereof and of
the Warrants evidenced thereby (notwithstanding any notations of ownership or writing on the Warrant Certificates made by anyone
other than the Company) for all purposes whatsoever, and the Company shall not be affected by any notice to the contrary.

 

2.            EXERCISE
OF WARRANTS; PAYMENT OF EXERCISE PRICE.

 

2.1           Exercise
of Warrants.

 

(a)          Manner
of Exercise. At any time and from time to time prior to the Expiration Time, the holder of any Warrant Certificate may exercise
the Warrants evidenced thereby, in whole or in any part, by surrender to the Company, at its office referenced in Section 6.5,
of such Warrant Certificate, together with a duly executed election to purchase (a form of which is attached to each Warrant Certificate)
and payment of the applicable Exercise Price for each share of Common Stock with respect to which the Warrants are then being exercised
and an amount equal to any applicable Tax (if not payable by the Company as provided in Section 3.3). Such Exercise Price
shall be payable in cash pursuant to Section 2.1(b).

 

(b)          Payment
in Cash. Upon exercise of any Warrants, the holder of a Warrant Certificate may pay the Exercise Price by certified or official
bank check payable to the order of the Company or by wire transfer of immediately available funds to the account of the Company.

 

(c)          Fractional
shares of Common Stock. The Company may, in accordance with Section 2.6, pay the exercising holder cash in lieu of issuing
a fractional share in connection with an exercise of Warrants; provided that, if it does not issue a fractional share in such circumstances,
it will make such cash payment.

 

2.2           Issuance
of Common Stock.

 

Upon timely receipt of a Warrant Certificate,
accompanied by the form of election to purchase duly executed, and payment of the Exercise Price for each of the shares of the
Common Stock to be purchased and by an amount equal to any applicable Tax (if not payable by the Company as provided in Section
3.3), the Company shall thereupon promptly cause certificates representing the number of whole shares of Common Stock then
being purchased to be delivered to or upon the order of the registered holder of such Warrant Certificate, registered in such name
or names as may be designated by such holder, and, promptly after such receipt deliver the cash, if any, to be paid in lieu of
fractional shares pursuant to Section 2.6 to or upon the order of the registered holder of such Warrant Certificate.

 

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2.3           Unexercised
Warrants.

 

In the event that the registered holder of any
Warrant Certificate shall exercise less than all the Warrants evidenced thereby, a new Warrant Certificate evidencing Warrants
equal in number to the number of Warrants remaining unexercised shall be issued by the Company to the registered holder of such
Warrant Certificate or to its duly authorized assigns.

 

2.4           Cancellation
and Destruction of Warrant Certificates.

 

All Warrant Certificates surrendered to the
Company for the purpose of exercise, exchange, substitution or transfer shall be cancelled by it, and no Warrant Certificates shall
be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall cancel and
retire any other Warrant Certificates purchased or acquired by the Company otherwise than upon the exercise thereof.

 

2.5           Expiration.

 

All Warrants that have not been exercised or
purchased in accordance with the provisions of this Agreement shall expire and all rights of holders of such Warrants shall terminate
and cease at the Expiration Time.

 

2.6           Fractional
shares of Common Stock.

 

The Company shall not be required to issue fractional
shares of Common Stock upon the exercise of any Warrant. If fractional shares are not issued upon the exercise of any Warrant,
there shall be paid to the holder thereof, in lieu of any fractional share of Common Stock resulting therefrom, an amount of cash
equal to the product of:

 

(a)          the
fractional amount of such share of Common Stock; and

 

(b)          the
Market Price, as determined on the trading day immediately prior to the date of exercise of such Warrant.

 

2.7           Limitation
on Conversion

 

Notwithstanding anything herein to the contrary,
prior to the receipt of the Stockholder Approval, the Warrants Beneficially Owned by any such holder of Warrants or its Affiliates
may not be converted pursuant to this Section 2 to the extent that after giving effect to such conversion, such holder and
its Affiliates would Beneficially Own, in the aggregate, in excess of 19.99% of the shares of Common Stock outstanding immediately
after giving effect to such conversion (the “Conversion Cap”); provided, further, that for purposes of
determining the Conversion Cap pursuant to any provision of this Agreement, the aggregate number of shares of Common Stock Beneficially
Owned by a holder of Warrants or any of its respective Affiliates shall include (i) the number of shares of Common Stock Beneficially
Owned by such holder or any of its respective Affiliates as a result of prior conversion of Convertible Preferred Stock or Warrants
(excluding shares of Common Stock that could be acquired upon conversion of the such Convertible Preferred Stock or Warrants) plus
(ii) the number of shares of Common Stock issuable upon the conversion of the Warrants with respect to which the determination
of the immediately preceding proviso is being made. Notwithstanding anything herein to the contrary, (x) if the first vote of the stockholders of the Company
with respect to the Stockholder Approval occurs within six months of the date hereof, then no Warrants may be converted into Common
Stock until the earlier of (1) the receipt of the Stockholder Approval and (2) the date that is six months after the date hereof
and (y) if the first vote of the stockholders of the Company with respect to the Stockholder Approval occurs after the date that
is six months after of the date hereof, then prior to the occurrence of the first vote of the stockholders of the Company with
respect to the Stockholder Approval, no Warrants may be converted into Common Stock.

 

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3.          AGREEMENTS
OF THE COMPANY.

 

3.1           Reservation
of Common Stock.

 

The Company covenants and agrees that it will
at all times cause to be reserved and kept available out of its authorized and unissued shares of treasury shares of Common Stock
such number of shares of Common Stock as will be sufficient to permit the exercise in full of all Warrants issued hereunder into
Common Stock.

 

3.2           Common
Stock To Be Duly Authorized and Issued, Fully Paid and Nonassessable etc; Compliance with Law

 

The Company covenants and agrees that it will
take all such action as may be necessary to ensure that all shares of Common Stock delivered upon the exercise of any Warrant and
the payment of the Exercise Price pursuant to Section 2.1 (in each case, at the time of delivery of the certificates representing
such shares of Common Stock) shall (a) be duly and validly authorized and issued and fully paid and nonassessable, free of any
preemptive rights in favor of any Person in respect of such issuance and free of any security interest, pledge, mortgage, lien,
charge or other encumbrance created by, or arising out of actions of, the Company and (b) be issued without violation of any applicable
Law.

 

3.3           Taxes.

 

The Company covenants and agrees that it will
pay when due and payable any and all Taxes and charges that may be payable in respect of the initial issuance or delivery of:

 

(a)          each
Warrant Certificate;

 

(b)          each
Warrant Certificate issued in exchange for any other Warrant Certificate pursuant to Section 1.3, Section 2.3 or
Section 4; and

 

(c)          each
share of Common Stock issued upon the exercise of any Warrant.

 

The Company shall not, however, be required
to:

 

(i)          pay
any Tax that may be payable in respect of the transfer or delivery of Warrant Certificates in a name other than that of the registered
holder of the Warrant Certificate surrendered for exercise, conversion, transfer or exchange (any such Tax being payable by the
holder of such certificate at the time of surrender); or

 

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(ii)         issue
or deliver any such certificates referred to in the foregoing clause (i) until any such Tax referred to in the foregoing clause
(i) shall have been paid.

 

3.4           Common
Stock Record Date.

 

Each Person in whose name any certificate for
shares of Common Stock is issued upon the exercise of Warrants shall for all purposes be deemed to have become the holder of record
of the Common Stock represented thereby on, and such certificates (if any) shall be dated, the date upon which the Warrant Certificate
evidencing such Warrants was duly surrendered with an election to purchase attached thereto duly executed and payment of the aggregate
Exercise Price (and any applicable Taxes, if payable by such Person) was made.

 

3.5           Rights
in Respect of Common Stock.

 

Prior to the exercise of the Warrants evidenced
thereby, the holder of a Warrant Certificate shall not be entitled to any rights of a stockholder of the Company with respect to
the Common Stock into which the Warrants shall be exercisable, including, without limitation, the right to vote in respect of any
matter upon which the holders of Common Stock may vote, the right to receive any distributions of cash or property and, except
as expressly set forth herein, the right to receive any notice of any proceedings of the Company. Prior to the exercise of the
Warrants evidenced thereby, the holders of the Warrant Certificates shall not have as such any obligation in respect of any assessment
or any other obligation or liability as a stockholder of the Company, whether such obligations or liabilities are asserted by the
Company or by creditors of the Company.

 

3.6           Noncircumvention.

 

The Company hereby covenants and agrees that
the Company will not, by amendment of its charter, bylaws or through any reorganization, transfer of assets, consolidation, merger,
scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant Agreement, and will at all times in good faith carry out all the provisions
of this Warrant Agreement.

 

4.          ANTI-DILUTION
ADJUSTMENTS.

 

4.1           Adjustments.

 

The number of shares of Common Stock purchasable
upon the exercise of each Warrant, and the Exercise Price, shall be subject to adjustment as set forth in this Section 4.

 

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4.2           Stock
Splits, Subdivisions, Reclassifications or Combinations.

 

If the Company shall (i) declare and pay a dividend
or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common
Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number
of shares, the number of shares of Common Stock issuable upon exercise of any Warrants at the time of the record date for such
dividend or effective date of such split, reverse split, subdivision, combination or reclassification shall be proportionately
adjusted so that the holder of such Warrants after such date shall be entitled to purchase the number of shares of Common Stock
which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to such Warrants
after such date had such Warrants been exercised immediately prior to such date. In such event, the Exercise Price in effect at
the time of the effective date of such split, reverse split, subdivision, combination or reclassification shall be adjusted to
the number obtained by dividing (x) the product of (1) the number of shares of Common Stock issuable upon the exercise of such
Warrants before such adjustment and (2) the Exercise Price in effect immediately prior to the record or effective date, as the
case may be, for the dividend, distribution, split, reverse split, subdivision, combination or reclassification giving rise to
this adjustment by (y) the new number of shares of Common Stock issuable upon exercise of such Warrants determined pursuant to
the immediately preceding sentence; provided that the Exercise Price shall not be adjusted to be less than the par value of the
Common Stock.

 

4.3           Price
Based Anti-Dilution

 

(a)          Without
duplication of the adjustments set forth in Sections 4.2 or 4.4, if the Company shall issue or sell any shares of
Common Stock (as actually issued or, pursuant to Section 4.3(b), deemed to be issued) for a consideration per share less
than 85% of the Market Price per share immediately prior to such issuance or sale, or if earlier, upon the execution of the definitive
documentation with respect to such issuance or sale (the “Effective Time”), then immediately upon the Effective
Time the number of shares of Common Stock issuable upon exercise of any Warrants at the time of the effective date shall be increased
by multiplying such number of shares of Common Stock by a fraction, (i) the numerator of which shall be the Fully Diluted Number
of shares of Common Stock outstanding immediately prior to the Effective Time plus the number of shares of Common Stock so issued
or sold, and (ii) the denominator of which shall be the Fully Diluted Number of shares of Common Stock outstanding immediately
prior to the Effective Time plus the number of shares of Common Stock which the aggregate consideration received by the Company
for the total number of shares of Common Stock so issued or sold would purchase if such shares were sold at Market Price. For the
purposes of this Section 4.3(a), none of the following issuances shall be considered the issuance or sale of Common Stock:

 

(i)          the
issuance of the Convertible Preferred Stock;

 

(ii)         the
issuance of Common Stock upon the conversion of any then-outstanding Common Stock Equivalents (including the Convertible Preferred
Stock);

 

(iii)        the
issuance of any Common Stock or Common Stock Equivalents for which the adjustment provided in Section 4.2 applies; or

 

(iv)        the
issuance of shares of Common Stock or Common Stock Equivalents to Employees of the Company or any Company Subsidiary that is approved
by the Board of Directors.

 

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(b)            For
the purposes of Section 4.3(a), the following subparagraphs (i) to (iii), inclusive, shall also be applicable:

 

(i)          If
the Company shall grant any rights to subscribe for, or any rights or options to purchase, Common Stock Equivalents, whether or
not such rights or options or the right to convert or exchange any such Common Stock Equivalents are immediately exercisable, and
the price per share for which Common Stock is issuable upon the exercise of such rights or options or upon conversion or exchange
of such Common Stock Equivalents (determined by dividing (A) the total amount, if any, received or receivable by the Company as
consideration for the granting of such rights or options, plus the minimum aggregate amount of additional consideration payable
to the Company upon the exercise of such rights or options, plus, in the case of any such rights or options which relate to such
Common Stock Equivalents, the minimum aggregate amount of additional consideration, if any, payable upon the issue or sale of such
Common Stock Equivalents and upon the conversion or exchange thereof, by (B) the total maximum number of shares of Common Stock
issuable upon the exercise of such rights or options or upon the conversion or exchange of all such Common Stock Equivalents issuable
upon the exercise of such rights or options) shall be less than the Market Price per share of Common Stock immediately prior to
the time of the granting of such rights or options, or, if earlier, the execution of definitive documentation with respect to such
grant, then the total maximum number of shares of Common Stock issuable upon the exercise of such rights or options or upon conversion
or exchange of the total maximum amount of such Common Stock Equivalents issuable upon the exercise of such rights or options shall
(as of the date of granting of such rights or options) be deemed to be outstanding and to have been issued for such price per share;
provided that no further adjustment of the conversion price pursuant to this Section 4.3(b)(i) shall be made (i) upon
the actual issuance or sale of such Common Stock Equivalents upon the exercise of any rights to subscribe for, or any rights or
options to purchase, such Common Stock Equivalents or (ii) upon the actual issuance or sale of such Common Stock upon the exercise
of any such Common Stock Equivalents, including without limitation, in each case of clauses (i) and (ii) with respect to shares
of Common Stock Equivalents or Common Stock issued or issuable as a result of the effect of antidilution adjustments under any
such security.

 

(ii)         If
the Company shall issue or sell any Common Stock Equivalents, whether or not the rights to exchange or convert thereunder are immediately
exercisable, and the price per share for which Common Stock is issuable upon such conversion or exchange (determined by dividing
(A) the total amount received or receivable by the Company as consideration for the issue or sale of such Common Stock Equivalents,
plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof,
by (B) the total maximum number of shares of Common Stock issuable upon the conversion or exchange of all such Common Stock Equivalents)
shall be less than the Market Price per share of Common Stock immediately prior to the Effective Time, then the total maximum number
of shares of Common Stock issuable upon conversion or exchange of such Common Stock Equivalents shall (as of the date of the issue
or sale of such Common Stock Equivalents) be deemed to be outstanding and to have been issued for such price per share, provided
that no further adjustment of the conversion price pursuant to this Section 4.3(b)(ii) shall be made upon the actual issuance
or sale of such Common Stock upon the exercise of any such Common Stock Equivalents, including without limitation, in each case
with respect to shares of Common Stock issued or issuable as a result of the effect of antidilution adjustments under any such
security.

 

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(iii)        In
case at any time any shares of Common Stock or Common Stock Equivalents or any rights or options to purchase any such Common Stock,
or Common Stock Equivalents shall be issued or sold for cash, the consideration received therefor shall be deemed to be the amount
received by the Company therefor. In case any shares of Common Stock or Common Stock Equivalents or any rights or options to purchase
any such Common Stock or Common Stock Equivalents shall be issued or sold for a consideration other than cash, the amount of the
consideration other than cash received by the Company shall be deemed to be the Fair Market Value of such consideration.

 

4.4           Other
Distributions.

 

In case the Company shall fix a record date
for the making of a dividend or distribution to all holders of shares of its Common Stock of securities, evidences of indebtedness,
assets, cash, rights or warrants (excluding dividends of its Common Stock and other dividends or distributions referred to in Section
4.2), in each such case, the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to
the price determined by multiplying the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the
Market Price of the Common Stock on the last trading day preceding the first date on which the Common Stock trades on the Exchange
on which the Common Stock is listed or admitted to trading without the right to receive such distribution, minus the amount of
cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed
in respect of one share of Common Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”)
divided by (y) such Market Price on such date specified in clause (x); such adjustment shall be made successively whenever such
a record date is fixed. In such event, the number of shares of Common Stock issuable upon the exercise of any Warrants shall be
increased to the number obtained by dividing (x) the product of (1) the number of shares of Common Stock issuable upon the exercise
of such Warrants before such adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise
to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event
that such distribution is not so made, the Exercise Price and the number of shares of Common Stock issuable upon exercise of such
Warrants then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute
such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise Price that would
then be in effect and the number of shares of Common Stock that would then be issuable upon exercise of such Warrants if such record
date had not been fixed.

 

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4.5           Business
Combinations.

 

In case of any Business Combination or reclassification
of Common Stock (other than a reclassification of Common Stock referred to in Section 4.2), a holder’s right to receive
shares of Common Stock upon exercise of any Warrants shall be converted into the right to exercise such Warrant to acquire the
number of shares of stock or other securities or property (including cash) which the Common Stock issuable (at the time of such
Business Combination or reclassification) upon exercise of such Warrants immediately prior to such Business Combination or reclassification
would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if
necessary, the provisions set forth herein with respect to the rights and interests thereafter of such holder shall be appropriately
adjusted so as to be applicable, as nearly as may reasonably be, to such holder’s right to exercise such Warrants in exchange
for any shares of stock or other securities or property pursuant to this Section 4.5; provided that a holder’s right
to receive cash consideration under this Section 4.5 shall be subject to the prior indefeasible payment in full in cash
of all outstanding Indebtedness and other obligations under the Credit Facility (and the termination of all commitments thereunder)
and the Indenture (after the termination of all commitments thereunder), each as defined in the Certificate of Designations, to
the extent the outstanding Common Stock’s right to receive cash in such transaction is subject to such payment. In determining
the kind and amount of stock, securities or the property receivable upon exercise of any Warrants following the consummation of
such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable
upon consummation of such Business Combination, then the holder of such Warrants shall be entitled to elect the kind or amount
of consideration receivable upon consummation of such Business Combination. The Company shall not enter into or be party to any
Business Combination unless the successor of the Company (if any), assumes in writing all of the obligations of the Company under
this Warrant Agreement pursuant to written agreements, including agreements to deliver to each holder of Warrants hereunder in
exchange for such Warrants a security of such successor evidenced by a written instrument substantially similar in form and substance
to this Warrant Agreement.

 

4.6           Expiration
of Rights or Options.

 

Upon the expiration of any rights or options
to subscribe for, purchase or convert or exchange Common Stock or Common Stock Equivalents in respect of the issuance, sale or
grant of which adjustment was made pursuant to Section 4.3, without the exercise thereof, the Exercise Price and the number
of shares of Common Stock purchasable upon the exercise of each Warrant shall, upon such expiration, be readjusted and shall thereafter
be such Exercise Price and such number of shares of Common Stock as would have been had such Exercise Price and such number of
shares of Common Stock not been originally adjusted (or had the original adjustment not been required, as the case may be), as
if:

 

(a)          the
only shares of Common Stock so issued were the shares of Common Stock, if any, actually issued or sold upon the exercise of such
rights or options; and

 

(b)          such
shares of Common Stock, if any, were issued or sold for the consideration actually received by the Company upon such exercise plus
the aggregate consideration, if any, actually received by the Company for the issuance, sale or grant of all of such rights or
options, whether or not exercised; provided that no such readjustment shall have the effect of increasing the Exercise Price by
an amount in excess of the amount of the reduction initially made in respect of the issuance, sale, or grant of such rights or
options.

 

    	-11-

    	 

    

 

4.7           Rounding
of Calculations; Minimum Adjustments.

 

All calculations under this Section 4
shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may
be. Any provision of this Section 4 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of
shares of Common Stock into which any Warrants are exercisable shall be made if the amount of such adjustment would be less than
$0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect
thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other
amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

 

4.8           Timing
of Issuance of Additional Common Stock Upon Certain Adjustments.

 

In any case in which the provisions of this
Section 4 shall require that an adjustment shall become effective immediately after a record date for an event, the Company
may defer until the occurrence of such event (i) issuing to the holder of any Warrants exercised after such record date and before
the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required
by such event over and above the shares of Common Stock issuable upon such exercise before giving effect to such adjustment and
(ii) paying to such holder any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the
Company upon request shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right
to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment.

 

4.9           Miscellaneous.

 

(a)          Statement
Regarding Adjustments. Whenever the Exercise Price or the number of shares of Common Stock into which any Warrants are exercisable
shall be adjusted as provided in Section 4, the Company shall forthwith file at the principal office of the Company referenced
in Section 6.5 a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that
shall be in effect and the number of shares of Common Stock into which such Warrants shall be exercisable after such adjustment,
and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each holder of Warrants
at the address appearing in the Company’s records.

 

(b)          Notice
of Adjustment Event. In the event that the Company shall propose to take any action of the type described in this Section
4 (but only if the action of the type described in this Section 4 would result in an adjustment in the Exercise Price
or the number of shares of Common Stock into which Warrants are exercisable or a change in the type of securities or property to
be delivered upon exercise of Warrants), the Company shall give notice to the holders of Warrants, in the manner set forth in Section
4.8(a), which notice shall specify the record date, if any, with respect to any such action and the approximate date on which
such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary
to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall
be deliverable upon exercise of any Warrants. In the case of any action which would require the fixing of a record date, such notice
shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least
15 days prior to the taking of such proposed action. Without limiting the foregoing, to the extent notice of any of the foregoing
actions or events is given to the holders of the Common Stock, such notice shall be provided to the holders of the Warrants on
or before such notice to the holders of Common Stock.

 

    	-12-

    	 

    

 

(c)          Proceedings
Prior to Any Action Requiring Adjustment. As a condition precedent to the taking of any action which would require an adjustment
pursuant to this Section 4, the Company shall take any action which may be necessary, including obtaining regulatory, New
York Stock Exchange, NASDAQ Stock Market or other applicable national securities exchange (an “Exchange”) or
stockholder approvals or exemptions, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable
all shares of Common Stock that the holders are entitled to receive upon exercise of this any Warrants pursuant to this Section
4.

 

(d)          Adjustment
Rules. Any adjustments pursuant to this Section 4 shall be made successively whenever an event referred to herein shall
occur. If more than one subsection of this Section 4 is applicable to a single event, the subsection shall be applied that
produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of this Section
4 so as to result in duplication. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount
below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the
par value of the Common Stock.

 

5.            INTERPRETATION
OF THIS AGREEMENT.

 

5.1           Certain
Defined Terms.

 

For the purpose of this Agreement, the following
terms shall have the meanings set forth below or set forth in the Section hereof following such term:

 

“Affiliate” means, with respect
to any Person, (a) a director, officer or shareholder of such Person, (b) a spouse, parent, sibling or descendant of such Person
(or spouse, parent, sibling or descendant of any director or executive officer of such Person) and (c) any other Person that, directly
or indirectly through one or more intermediaries, Controls, or is Controlled by, or is under common Control with, such Person,
at such time; provided, however, that none of the Purchasers shall be deemed to be an “Affiliate” of the Company and
no Person holding any one or more of the Warrants shall be deemed to be an “Affiliate” of the Company solely by virtue
of the ownership thereof.

 

“Agreement” means this Warrant
Agreement as it may from time to time be amended, restated, modified or supplemented.

 

“Board of Directors” means
the board of directors of the Company, including any duly authorized committee thereof.

 

“Beneficially Own” has the
meaning set forth in the Certificate of Designations.

 

“Business Combination” means
any consolidation of the Company with, or merger of the Company with or into, another Person (other than a merger in which (a)
the Company is the surviving corporation, (b) that does not result in any reclassification or change of shares of Common Stock
outstanding immediately prior to such merger and (c) the holders of Common Stock are not entitled to receive any consideration
therefrom), or any sale or conveyance to another Person of the assets of the Company substantially as an entirety.

 

    	-13-

    	 

    

 

“business day” means any
day that is not a Saturday, Sunday or other day on which banking institutions in New York, New York are authorized or required
by Law or executive order to close.

 

“Capital Stock” means (A)
with respect to any Person that is a corporation or company, any and all shares, interests, participations or other equivalents
(however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or
company, any and all partnership or other equity interests of such Person.

 

“Certificate of Designations”
shall mean this Certificate of Designations relating to the Convertible Preferred Stock, as it may be amended from time to time.

 

“Charter” means, with respect
to any Person, its certificate or articles of incorporation, articles of association, or similar organizational document.

 

“Common Stock” means the
Company’s common stock, par value $.0001 per share.

 

“Common Stock Equivalents”
means outstanding Warrants or other securities convertible or exchangeable into Common Stock, including the Preferred Convertible
Stock.

 

“Company” has the meaning
set forth in the introductory paragraph hereof.

 

“Convertible Preferred Stock”
means the Series A convertible preferred stock issued to the Purchasers pursuant to that certain securities purchase agreement,
entered into on the date hereof, by and between the Company and the Purchasers.

 

“Control” means, with respect
to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such Person, whether through the ownership of voting Securities, by contract or otherwise.

 

“Denomination” means, in
the case of any Warrant Certificate, the number of shares of Common Stock issuable upon exercise of such Warrant Certificate represented
thereby.

 

“Effective Time” has the
meaning set forth in Section 4.3(a).

 

“Exchange” has the set forth
in Section 4.9(c).

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“Exercise Price” means, prior
to any adjustment pursuant to Section 4 of this Agreement, the Initial Exercise Price; and thereafter, the Initial Exercise
Price as successively adjusted and readjusted from time to time in accordance with the provisions of Section 4.

 

    	-14-

    	 

    

 

“Expiration Time” means 5:00
p.m., Eastern time, on the tenth (10th) year anniversary of the date hereof.

 

“Fair Market Value” means,
with respect to any security or other property, the fair market value of such security or other property as determined by the Board
of Directors, acting in good faith. The Required Warrantholders may object in writing to the Board of Director’s calculation
of Fair Market Value within 10 days of receipt of written notice thereof. If the Required Warrantholders and the Board of Directors
are unable to agree on Fair Market Value during the 10-day period following the delivery of the Required Warrantholders’
objection, then the Board of Directors shall select and approve an appraiser experienced in the business of evaluating or appraising
the market value of securities (which appraiser shall be subject to approval by the Required Warrantholders, which approval shall
not be unreasonably withheld). The Fair Market Value established by such appraiser shall be conclusive and binding on the parties.
In the event the Fair Market Value established by such appraiser is greater than the Fair Market Value previously determined by
the Board of Directors, the fees and expenses for such appraiser shall be borne by the Company. In the event the Fair Market Value
established by such appraiser is less than or equal to the Fair Market Value previously determined by the Board of Directors, the
fees and expenses for such appraiser shall be borne by the holders of Warrants.

 

“Fully Diluted Number of Common Shares”
means the sum of (i) all shares of Common Stock actually outstanding (which shall in no event include the Common Stock to be so
issued and sold and for which Section 4.3 is being applied) and (ii) all shares of Common Stock issuable upon conversion
or exchange of the Common Stock Equivalents.

 

“Initial Exercise Price”
means, with respect to each Warrant Certificate issued to a Purchaser, the Warrant No. 1 Initial Exercise Price or the Warrant
No. 2 Initial Exercise Price, as assigned to that Warrant Certificate.

 

“Issue Date” means March
9, 2015.

 

“Law” has the set forth in
Section 1.1.

 

“Market Price” means, with
respect to a particular security, on any given day, the last reported sale price or, in case no such reported sale takes place
on such day, the average of the last closing bid and ask prices, in either case on the Exchange on which the applicable securities
are listed or admitted to trading. “Market Price” shall be determined without reference to after hours or extended
hours trading. If such security is not listed and traded in a manner that the quotations referred to above are available for the
period required hereunder, the Market Price per share of Common Stock shall be deemed to be the fair market value per share of
such security as determined in good faith by the Board of Directors in reliance on an opinion of a nationally recognized independent
investment banking corporation retained by the Company for this purpose (which opinion shall be made available to the holders of
Warrants); provided that the Required Warrantholders may object in writing to the Board of Director’s calculation of fair
market value within 10 days of receipt of written notice thereof. If the Required Warrantholders and the Board of Directors are
unable to agree on fair market value during the 10-day period following the delivery of the Required Warrantholders’ objection,
then the Board of Directors shall select and approve an appraiser experienced in the business of evaluating or appraising the market
value of securities (which appraiser shall be subject to approval by the Required Warrantholders, which approval shall not be unreasonably
withheld). The Market Price established by such appraiser shall be conclusive and binding on the parties. In the event the Market
Price established by such appraiser is greater than the Market Price previously determined by the Board of Directors, the fees
and expenses for such appraiser shall be borne by the Company. In the event the Market Price established by such appraiser is less
than or equal to the Market Price previously determined by the Board of Directors, the fees and expenses for such appraiser shall
be borne by the holders of Warrants. For the purposes of determining the Market Price of the Common Stock on the “trading
day” preceding, on or following the occurrence of an event, (i) that trading day shall be deemed to commence immediately
after the regular scheduled closing time of trading on the Nasdaq Stock Market or, if trading is closed at an earlier time, such
earlier time and (ii) that trading day shall end at the next regular scheduled closing time, or if trading is closed at an earlier
time, such earlier time (for the avoidance of doubt, and as an example, if the Market Price is to be determined as of the last
trading day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the specified event
occurs at 5:00 p.m. on that day, the Market Price would be determined by reference to such 4:00 p.m. closing price).

 

    	-15-

    	 

    

 

 

“Per Share Fair Market Value”
has the meaning set forth in Section 4.4.

 

“Person” has the meaning
given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

 

“Purchasers” has the meaning
set forth in the introductory paragraph hereof.

 

“Required Warrantholders”
means, at any time, the holders of Warrants representing at least a majority of the Common Stock issuable upon exercise of the
Warrants issued hereunder and outstanding (exclusive of any Warrants directly or indirectly held by the Company or any Affiliate
of the Company).

 

“Securities Act” means the
Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“Stockholder Approval” has
the meaning set forth in the Certificate of Designations.

 

“Tax” or “Taxes”
has the meaning set forth in Section 1.5(a).

 

“trading day” means (A) if
the shares of Common Stock are not traded on any national or regional securities exchange or association or over-the-counter market,
a business day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or
over-the-counter market, a business day on which such relevant exchange or quotation system is scheduled to be open for business
and on which the shares of Common Stock (i) are not suspended from trading on any national or regional securities exchange or association
or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on
the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading
of the shares of Common Stock.

 

    	-16-

    	 

    

 

“Transferee” means any registered
transferee of all or any part of any one or more Warrant Certificates initially acquired by the Purchasers under this Agreement.

 

“U.S. GAAP” means United
States generally accepted accounting principles.

 

“Warrant” means a warrant
to initially purchase one share of Common Stock issued pursuant to this Agreement.

 

“Warrant Certificate” means
a certificate evidencing the Warrants in the form of Attachment A.

 

“Warrant No. 1 Initial Exercise Price”
has the meaning set forth in the recitals.

 

“Warrant No. 2 Initial Exercise Price”
has the meaning set forth in the recitals.

 

5.2           Section
Heading and Table of Contents and Construction.

 

(a)          Section
Headings and Table of Contents, etc. The titles of the Sections of this Agreement and the Table of Contents of this Agreement
appear as a matter of convenience only, do not constitute a part hereof and shall not affect the construction hereof. The words
“herein,” “hereof,” “hereunder” and “hereto” refer to this Agreement as a whole
and not to any particular Section or other subdivision. References to Sections are, unless otherwise specified, references to Sections
of this Agreement. References to Annexes and Attachments are, unless otherwise specified, references to Annexes and Attachments
attached to this Agreement.

 

(b)          Independent
Construction. Each covenant contained herein shall be construed (absent an express contrary provision herein) as being independent
of each other covenant contained herein, and compliance with any one covenant shall not (absent such an express contrary provision)
be deemed to excuse compliance with one or more other covenants.

 

5.3           Directly
or Indirectly.

 

Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person, including actions taken by or on behalf of any partnership in which such Person
is a general partner.

 

5.4           Governing
Law.

 

THIS AGREEMENT AND THE WARRANT CERTIFICATES
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE INTERNAL LAWS OF THE
STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS RULES THEREOF TO THE EXTENT THAT ANY SUCH RULES WOULD REQUIRE
OR PERMIT THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE DELAWARE GENERAL CORPORATION LAW
SPECIFICALLY AND MANDATORILY APPLIES.

 

    	-17-

    	 

    

 

6.            MISCELLANEOUS.

 

6.1           Expenses.

 

Issuance of certificates for shares of Common
Stock to a holder upon the exercise of any Warrants shall be made without charge to such holder for any Tax or other incidental
expense in respect of the issuance of such certificates, all of which Taxes and expenses shall be paid by the Company (other than
the Taxes not payable by the Company pursuant to Section 3.3).

 

6.2           Amendment
and Waiver.

 

This Agreement may be amended, and the observance
of any term of this Agreement may be waived, with and only with the written consent of the Company and the Required Warrantholders;
provided, however, that no amendment or waiver of the provisions of this Section 2.1, Section 6.2, Section 4
or of any term defined in Section 5.1 to the extent used herein or therein, may be made without the prior written consent
of all holders of Warrants then outstanding (excluding any Warrants directly or indirectly held by the Company or any Affiliate
of the Company); and, provided, further, that

 

(a)          no
such amendment or waiver of any of the provisions of this Agreement pertaining to the Exercise Price or the number of shares or
kind of Common Stock that may be purchased upon exercise of each Warrant; and

 

(b)          no
change accelerating the occurrence of the Expiration Time; shall be effective as to a holder of Warrants unless consented to in
writing by such holder.

 

6.3           Entire
Agreement.

 

This Agreement and the Warrant Certificates
embody the entire agreement and understanding among the Company and the Purchasers, and supersede all prior agreements and understandings,
relating to the subject matter hereof.

 

6.4           Successors
and Assigns.

 

All covenants and other agreements in this Agreement
made by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns
of the parties hereto to the extent they become holders of Warrants (including, without limitation, any Transferee) whether so
expressed or not. Notwithstanding the foregoing sentence, the Company may not assign any of its rights, duties or obligations hereunder
or under the Warrant Certificates without the prior written consent of the Required Warrantholders.

 

6.5           Notices.

 

All communications hereunder or under the Warrants
shall be in writing and shall be delivered either by certified or registered mail, postage pre-paid, return receipt requested,
or nationally recognized overnight courier, and shall be addressed to the following addresses:

 

    	-18-

    	 

    

 

(a)          if
to a Purchaser, at its address set forth on Annex 2 to this Agreement, or at such other address as such Purchaser shall have specified
to the Company in writing;

 

(b)          if
to any other holder of any Warrant Certificate, addressed to such other holder at such address as such other holder shall have
specified to the Company in writing or, if any such other holder shall not have so specified an address to the Company, then addressed
to such other holder in care of the last holder of such Warrant Certificate that shall have so specified an address to the Company;
and

 

(c)          if
to the Company, at the address set forth on Annex 3 to this Agreement, or at such other address as the Company shall have specified
to each holder of Warrants in writing.

 

Any communication addressed and delivered as
herein provided shall be deemed to be received when actually delivered to the address of the addressee (whether or not delivery
is accepted) by a nationally recognized overnight delivery service which provides proof of delivery or on the date postmarked if
sent by registered or certified mail, as the case may be. Any communication not so addressed and delivered shall be ineffective
unless actually received by the intended addressee. Notwithstanding the foregoing provisions of this Section 6.5, service
of process in any suit, action or proceeding arising out of or relating to this Agreement or any document, agreement or transaction
contemplated hereby shall be delivered in the manner provided in Section 6.8(c).

 

6.6           Severability.

 

Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

 

6.7           Execution
in Counterpart.

 

This Agreement may be executed in one or more
counterparts and shall be effective when at least one counterpart shall have been executed by each party hereto, and each set of
counterparts that, collectively, show execution by each party hereto shall constitute one duplicate original.

 

6.8           Waiver
of Jury Trial; Consent to Jurisdiction, Etc.

 

(a)          Waiver
of Jury Trial. THE PARTIES HERETO VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE WARRANTS OR ANY OF THE DOCUMENTS, AGREEMENTS
OR TRANSACTIONS CONTEMPLATED HEREBY.

 

    	-19-

    	 

    

 

(b)          Consent
to Jurisdiction. ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE WARRANTS, OR ANY OF THE
DOCUMENTS, AGREEMENTS OR TRANSACTIONS CONTEMPLATED HEREBY (WHETHER IN TORT, CONTRACT OR OTHERWISE) OR ANY ACTION OR PROCEEDING
TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT IN RESPECT OF ANY BREACH UNDER THIS AGREEMENT, THE WARRANTS OR ANY DOCUMENT OR AGREEMENT
CONTEMPLATED HEREBY SHALL BE BROUGHT BY SUCH PARTY IN ANY NEW YORK STATE COURT OR FEDERAL DISTRICT COURT LOCATED IN THE SOUTHERN
DISTRICT OF NEW YORK AS SUCH PARTY MAY IN ITS SOLE DISCRETION ELECT, AND BY THE EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PARTIES
HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMIT TO THE IN PERSONAM JURISDICTION OF EACH SUCH COURT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES AND AGREES NOT TO ASSERT IN ANY PROCEEDING BEFORE ANY TRIBUNAL, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE,
ANY CLAIM THAT IT IS NOT SUBJECT TO THE IN PERSONAM JURISDICTION OF ANY SUCH COURT. IN ADDITION, EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN ANY SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT, AGREEMENT OR TRANSACTION CONTEMPLATED HEREBY
BROUGHT IN ANY SUCH COURT, AND HEREBY IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)          Service
of Process. EACH PARTY HERETO IRREVOCABLY AGREES THAT PROCESS PERSONALLY SERVED OR SERVED BY U.S. REGISTERED MAIL AT THE ADDRESSES
PROVIDED HEREIN FOR NOTICES SHALL CONSTITUTE, TO THE EXTENT PERMITTED BY LAW, ADEQUATE SERVICE OF PROCESS IN ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE WARRANTS OR ANY DOCUMENT, AGREEMENT OR TRANSACTION CONTEMPLATED HEREBY,
OR ANY ACTION OR PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT IN RESPECT OF ANY BREACH HEREUNDER, UNDER THE WARRANTS
OR UNDER ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY. RECEIPT OF PROCESS SO SERVED SHALL BE CONCLUSIVELY PRESUMED AS EVIDENCED
BY A DELIVERY RECEIPT FURNISHED BY THE UNITED STATES POSTAL SERVICE OR ANY COMMERCIAL DELIVERY SERVICE.

 

[Remainder of page intentionally left blank;
next page is signature page]

 

    	-20-

    	 

    

 

IN WITNESS WHEREOF, the
Parties have executed this Agreement on the date first above written.

 

	 	COMPANY:
	 	 
	 	BioScrip, Inc.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	PURCHASERS:
	 	 
	 	Coliseum Capital Partners, L.P.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	Coliseum Capital Partners II, L.P.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	Blackwell Partners, LLC, Series A 
	 	 
	 	By:  Coliseum Capital Management, LLC
	 	Attorney-in-fact
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

ATTACHMENT A

[FORM OF WARRANT CERTIFICATE]

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD
EXCEPT IN A TRANSACTION REGISTERED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT OR
STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF A CERTAIN WARRANT AGREEMENT,
DATED AS OF MARCH 9, 2015, THE PROVISIONS OF WHICH ARE INCORPORATED HEREIN BY REFERENCE. A COPY OF SUCH AGREEMENT IS AVAILABLE
FROM THE COMPANY UPON REQUEST.

 

WARRANT CERTIFICATE

 

BIOSCRIP, INC.

No. WR- Warrants

 

Date: [•], 2015

 

This Warrant Certificate certifies that______________________,
or registered assigns, is the registered holder of _____________________(_______________________) Warrants. Each Warrant entitles
the owner thereof to purchase at any time on or after the date hereof and on or prior to the Expiration Time, one (1) fully paid
and nonassessable share of Common Stock, $0.0001 par value per share (the “Common Stock”), of BIOSCRIP, INC.,
a Delaware corporation (together with its successors and assigns, the “Company”), at a purchase price (subject
to adjustment as provided in the Warrant Agreement (as defined below), the “Exercise Price”) of $[•] per
share of Common Stock upon presentation and surrender of this Warrant Certificate to the Company with a duly executed election
to purchase and payment of the Exercise Price, all in the manner set forth in the Warrant Agreement (defined below). The number
of shares of Common Stock that may be initially purchased upon exercise of each Warrant and the Exercise Price are the number and
the Exercise Price as of the date hereof, and are subject to adjustment as referred to below.

 

The Warrants are issued pursuant to a Warrant
Agreement (as it may from time to time be amended or supplemented, the “Warrant Agreement”), dated as of March 9, 2015,
among the Company and the Purchasers named therein, and are subject to all of the terms, provisions and conditions thereof, which
Warrant Agreement is hereby incorporated herein by reference and made a part hereof and to which Warrant Agreement reference is
hereby made for a full description of the rights, obligations, duties and immunities of the Company and the holders of the Warrant
Certificates. Capitalized terms used, but not defined, herein have the respective meanings ascribed to them in the Warrant Agreement.
In the event of any conflict between this Warrant Certificate and the Warrant Agreement, the Warrant Agreement shall control and
govern.

 

    	Attachment A

    	 

    

 

As provided in the Warrant Agreement, the Exercise
Price and the number of shares of Common Stock that may be purchased upon the exercise of the Warrants evidenced by this Warrant
Certificate are, upon the happening of certain events, subject to modification and adjustment. Except as otherwise set forth in,
and subject to, the Warrant Agreement, the Expiration Time of this Warrant Certificate is as set forth in the Warrant Agreement.

 

Subject to the limitations set forth in the
Warrant Agreement, this Warrant Certificate shall be exercisable, at the election of the holder, at any time on or after the date
hereof and on or prior to the Expiration Time either as an entirety or in part from time to time. If this Warrant Certificate shall
be exercised in part, the holder shall be entitled to receive, upon surrender hereof, another Warrant Certificate or Warrant Certificates
for the number of Warrants not exercised. This Warrant Certificate, with or without other Warrant Certificates, upon surrender
in the manner set forth in the Warrant Agreement and subject to the conditions set forth in the Warrant Agreement, may be transferred
or exchanged for another Warrant Certificate or Warrant Certificates of like tenor evidencing Warrants entitling the holder to
purchase a like aggregate number of shares of Common Stock as the Warrants evidenced by the Warrant Certificate or Warrant Certificates
surrendered shall have entitled such holder to purchase.

 

Except as expressly set forth in the Warrant
Agreement, no holder of this Warrant Certificate shall be entitled to vote or receive distributions or be deemed for any purpose
the holder of shares of Common Stock or of any other Securities of the Company that may at any time be issued upon the exercise
hereof, nor shall anything contained in the Warrant Agreement or herein be construed to confer upon the holder hereof, as such,
any of the rights of a holder of a share of Common Stock in the Company or any right to vote upon any matter submitted to holders
of shares of Common Stock at any meeting thereof, or to give or withhold consent to any corporate action of the Company (whether
upon any recapitalization, issuance of stock, reclassification of Securities, change of par value, consolidation, merger, conveyance,
or otherwise), or to receive dividends or subscription rights, or otherwise, until the Warrant or Warrants evidenced by this Warrant
Certificate shall have been exercised as provided in the Warrant Agreement.

 

THIS WARRANT CERTIFICATE SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE COMPANY AND THE HOLDER HEREOF SHALL BE GOVERNED BY, THE INTERNAL LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS RULES THEREOF TO THE EXTENT THAT ANY SUCH RULES WOULD REQUIRE
OR PERMIT THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE DELAWARE GENERAL CORPORATION LAW
SPECIFICALLY AND MANDATORILY APPLIES.

 

    	Attachment A

    	 

    

 

WITNESS the signature of a proper officer of the Company
as of the date first above written.

 

	 	BIOSCRIP, INC.
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	Attachment A

    	 

    

 

[FORM OF ASSIGNMENT]

(To be executed by the registered holder
if

such holder desires to transfer the Warrant
Certificate)

 

FOR VALUE RECEIVED, ________________________hereby sells,
assigns and transfers unto

 

                                                                                                                                                                                                                           

(Please print name and address of transferee.)

 

the accompanying Warrant Certificate, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint:

 

                                                                                                                                                                                                                           

 

attorney, to transfer the accompanying Warrant Certificate on the
books of the Company with full power of substitution.

 

Dated:                                    ,20 .

[HOLDER]

By:

 

NOTICE

The signature to the foregoing Assignment must correspond to the
name as written upon the face of the accompanying Warrant Certificate or any prior assignment thereof in every particular, without
alteration or enlargement or any change whatsoever.

 

    	Attachment A

    	 

    

 

 

[FORM OF ELECTION TO PURCHASE]

(To be executed by the registered holder
if

such holder desires to exercise the Warrant
Certificate)

 

To: BIOSCRIP, INC.

 

The undersigned hereby irrevocably elects to exercise_____________________Warrants
represented by the accompanying Warrant Certificate to purchase the shares of Common Stock issuable upon the exercise of such Warrants,
and requests that certificates for such shares be issued in the name of:

 

                                                                                                                                                                                                                           

(Please print name and address.)

 

                                                                                                                                                                                                                           

(Please insert social security or other identifying number.)

 

If such number of Warrants shall not be all the Warrants evidenced
by the accompanying Warrant Certificate, a new Warrant Certificate for the balance remaining of such Warrants shall be registered
in the name of and delivered to:

 

                                                                                                                                                                                                                           

(Please print name and address.)

 

                                                                                                                                                                                                                           

(Please insert social security or other identifying number.)

 

The undersigned is paying the Exercise Price for the Common Stock
to be issued on exercise of the foregoing Warrants, unless payment of such Exercise Price has been waived by the Company by certified
or bank check by wire transfer pursuant to Section 2.1(a)(i) of the Warrant Agreement.

 

Dated:                                    ,20 .

[HOLDER]

By:

 

NOTICE

The signature to the foregoing Election to Purchase must correspond
to the name as written upon the face of the accompanying Warrant Certificate or any prior assignment thereof in every particular,
without alteration or enlargement or any change whatsoever.

 

    	Attachment A

    	 

    

 

ANNEX 1

Warrants Issuable to the Purchasers

 

	Purchaser	 	Total No. of Warrants 

(No.1)	 	 	Total No. of Warrants 

(No.2)	 
	Coliseum Capital Partners, L.P.	 	 	1,133,188	 	 	 	1,133,188	 
	Coliseum Capital Partners II, L.P.	 	 	253,569	 	 	 	253,569	 
	Blackwell Partners, LLC, Series A	 	 	413,243	 	 	 	413,243	 

 

    	Annex 1

    	 

    

 

ANNEX 2

Address for Purchasers for Notices

 

Coliseum Capital Management, LLC

One Station Place, 7th Floor South

Stamford, CT 06902

Attention: Christopher Shackelton;

 

with a copy to:

 

Paul Hastings LLP

75 East 55th Street

New York, NY 10022

Attention: Barry A. Brooks

 

    	Annex 2

    	 

    

 

ANNEX 3

Address of Company for Notices

BioScrip, Inc.

100 Clearbrook Road

Elmsford, New York 10523

Attention: Chief Executive Officer

 

with a copy to:

 

Polsinelli PC

100 S. Fourth Street, Suite 1000

St. Louis, MO 63102

Attention: Mark H. Goran

 

    	Annex 3EXHIBIT
10.1

TRANSITION
AGREEMENT

This Transition Agreement (the “Agreement”) is
made as of March 4, 2015 (the “Effective Date”), by and between Qumu
Corporation (the “Company”) and James R. Stewart (“Executive”). 

WHEREAS, Executive is employed by the Company as its
Chief Financial Officer;

WHEREAS, the parties have mutually agreed to continue
Executive’s employment for a transition period, on the terms and conditions set
forth in this Agreement, to facilitate a smooth transition to a successor Chief
Financial Officer. 

NOW, THEREFORE, in consideration of the mutual
covenants set forth below, as well as other good and valuable consideration,
the Parties hereby agree as follows: 

          1.          
Transition Period. Subject to the terms and conditions of this
Agreement, the Company will continue to employ Executive and Executive will
remain employed with the Company from the Effective Date through September 30,
2015, unless Executive’s employment with the Company is earlier terminated
pursuant to Section 4(a) (the “Transition Period”). If Executive’s
employment is not earlier terminated pursuant to Section 4(a), Executive
will cease to be an employee of the Company effective September 30, 2015,
without further action by either Executive or the Company. The date of
termination of Executive’s employment with the Company for any reason shall be
the “Separation Date.” 

          2.          
Compensation and Benefits During Transition Period. During the
Transition Period, the Company will pay Executive a base salary at the same
base salary rate in effect for Executive on the Effective Date, subject to applicable
tax withholding and payable in
accordance with the Company’s regular payroll practices. In addition, during the Transition Period,
Executive will continue to participate in such employee benefit plans and
programs for which Executive may be eligible and in which Executive
participated on the Effective Date, pursuant to the terms and conditions of
such plans, including without limitation (i) the long-term incentive program
and related long-term incentive bonus agreement dated February 21, 2013 between Executive and
the Company (“Long-Term Incentive Plan”) and (ii) an annual
physical for 2015 which may be taken through September 30, 2015. Executive
agrees that the termination of Executive’s employment effective September 30,
2015 in accordance with Section 1 of this Agreement shall be deemed to be a
voluntary resignation by Executive for the purposes of the Long-Term Incentive
Plan and for the purposes of any other plan, program, agreement or benefit
relating to severance or separation from employment. All earned but unused
vacation shall be paid with the first payroll following the Separation Date.

          3.          
2015 Incentive Plan. Executive will be eligible to participate
in the short-term cash incentive compensation plan for 2015 as approved by the
Compensation Committee on February 18, 2015 (the “2015 Incentive Plan”)
and Executive shall be treated consistently with how executive officer participants
are treated under the 2015 Incentive Plan and historical practices; provided
that notwithstanding anything to the contrary in the 2015 Incentive Plan
and provided that Executive’s employment is not terminated by the
Company for Cause or by 

1

Executive for any reason prior to September 30, 2015 (a) the amount to which Executive would
otherwise be entitled under the 2015 Incentive Plan based upon 2015 performance
shall be multiplied by a fraction, the numerator
of which is the number of days elapsed in the year through the Separation Date
and the denominator of which is 365 and (b) any payment to Executive
under the terms of the 2015 Incentive Plan shall be paid on the same date as
payments are made to executive officer participants in the 2015 Incentive Plan,
but not later than March 15, 2016.

          4.         Employment
During Transition Period. 

	
  

 	
  

 	
  

 
	
  

 	
             a.          If
 Executive’s employment is terminated by the Company for Cause or by Executive
 for any reason prior to September 30, 2015, Executive will not be eligible to
 receive the severance or the other compensation or benefits described in
 Section 6(a). Prior to September 30, 2015, the Company may only terminate
 Executive’s employment for Cause. Executive’s employment during the Transition Period will continue on
 a full-time basis and Executive will devote Executive’s full time, attention,
 skill and efforts as necessary to the faithful performance of such duties; provided,
 however, that notwithstanding the foregoing, the Company may, without
 terminating Executive’s employment, relieve Executive of Executive’s active
 performance of Executive’s duties during the Transition Period at any time in
 its sole discretion.

 
	
  

 	
  

 	
  

 
	
  

 	
             b.          “Cause”
 for purposes of this Agreement has the definition provided in that certain
 Amended and Restated Severance/Change in Control Letter Agreement by and
 between the Company and Executive made as of February 21, 2013 (the “Change
 in Control Agreement”). 

 

          5.         Duties and Authority During Transition Period. During the Transition Period, Executive
will continue to have the responsibilities and to perform the duties of Chief
Financial Officer until such time that the Company appoints a successor Chief
Financial Officer. Following appointment by the Company of a successor Chief
Financial Officer, (a) Executive will be a non-executive officer employee of
the Company with such title, if any, as may be determined by the Company’s
Chief Executive Officer; (b) Executive will report to the Company’s Chief
Executive Officer; (c) Executive’s duties and responsibilities will include
providing transition assistance, completing projects related to Executive’s
prior responsibilities as Chief Financial Officer, and providing such advice,
expertise, or knowledge with respect to Executive’s prior duties as Chief Financial Officer or other
matters in which Executive was involved, and such other duties as may be
requested by the Company’s Chief Executive Officer; (d) or, upon the earlier
request of the Company, Executive will resign all positions then held as an
officer of the Company and as a director or officer of any subsidiary or
affiliated entity of the Company, and will promptly execute and provide to the
Company any further documentation, as requested by the Company, to confirm such
resignation; and (e) Executive will timely
execute and deliver such acknowledgements, instruments, certificates, and other
ministerial documents (including without limitation, certification as to
specific actions performed by Executive in Executive’s capacity as an officer
of the Company) as may be necessary or appropriate to formalize and complete
the applicable corporate records and to ensure compliance with federal
securities laws. 

2

           6.      Post-Termination Compensation. 

	
  

 	
  

 	
  

 
	
  

 	
           a.        Subject
 to Section 6(b), the Company will:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
            i.           continue
 to pay Executive’s base salary as in effect for Executive on the Effective
 Date, subject to applicable tax withholding, in accordance with the Company’s
 regular payroll practices for a period of twelve (12) months, beginning with
 the first payroll with a cutoff date following the Effective Release Date;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
            ii.          pay
 Executive an amount equal to the average of the annual short-term incentive
 bonus amounts Executive received with respect to 2012, 2013 and 2014, such
 bonus severance payment to be made in equal installments, subject to
 applicable tax withholding, in accordance with the Company’s regular payroll
 practices over a period of twelve (12) months, beginning with the first
 payroll with a cutoff date following the Effective Release Date; and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
            iii.         if
 Executive is eligible for and elects COBRA or state continuation of the
 Company’s health, dental and group life insurance benefits, pay the portion
 of such COBRA premium that it pays for active employees until the earlier of:
 (A) twelve (12) months from the date COBRA coverage begins; or (B) the date
 COBRA coverage otherwise terminates. Executive shall pay the remaining
 portion of the premiums for such benefits during such period and, if
 applicable, the full premium thereafter. Payment of the COBRA premium shall
 be made contemporaneous with the date the premiums are incurred and may not be
 exchanged for any other benefit or cash payment. Payment of premiums in one
 year will not affect the payment of premiums in any other year. In the event
 the payment of premiums under this paragraph would result in a discriminatory
 benefit under the Patient Protection and Affordable Care Act (the “Act”),
 the amount of the payment shall be treated as taxable income to Executive, or
 otherwise revised to comply with the Act, preserving, to the greatest extent
 possible, the economic benefit provided by such premium payment.

 
	
  

 	
  

 	
  

 
	
  

 	
           The
 term “Effective Release Date” means the date of expiration of any
 right to rescind or revoke the properly executed, delivered and accepted
 Release (as defined below) as provided therein.

 
	
  

 	
  

 	
  

 
	
  

 	
           b.        Notwithstanding
 any other provision of this Agreement, the Company will pay to Executive the
 severance and provide the other compensation and benefits described in
 Section 6(a) only if Executive satisfies all of the following
 conditions: (i) Executive does not resign from employment with the
 Company prior to September 30, 2015; (ii) Executive is not terminated by the
 Company for Cause prior to September 30, 2015; (iii) following September 30, 2015
 but on or before October 21, 2015, Executive signs and does not rescind or
 revoke a release of claims in favor of the Company and its affiliates and
 related entities, and their directors, officers, insurers, employees and
 agents, in the form attached to this Agreement as Exhibit A (subject
 to revisions due to changes in applicable laws) (the “Release”);
 (iv) Executive has not breached Executive’s 

 

3

	
  

 	
  

 	
  

 
	
  

 	
 obligations pursuant to
 the terms of this Agreement; and (v) Executive has not breached Executive’s
 obligations pursuant to that certain Nondisclosure and Noncompetition
 Agreement dated the Effective Date by and between the Company and Executive
 (the “Confidentiality Agreement”) provided that, in the event of a
 breach of the Confidentiality Agreement that by its nature is capable of
 being cured, Executive shall have the opportunity to cure such breach within
 30 days after delivery to Executive of a notice from the Company requesting
 cure. If Executive does not satisfy all of the conditions of this Section
 6(b), Executive will be deemed to have waived any right to severance
 and other compensation or benefits under Section 6(a).

 
	
  

 	
  

 	
  

 
	
  

 	
           c.          Each
 installment of the severance and other compensation or benefits described
 above shall be considered a separate payment for purposes of Section 409A of
 the Internal Revenue Code of 1986 (the “Code”). Executive acknowledges
 that Executive is not relying upon advice or representation of the Company
 with respect to the tax treatment of any of the compensation set forth or
 described herein. The benefits provided in Section 6(a) are intended to be
 exempt from or compliant with Section 409A of the Code. The Company
 makes no representation or warranty and shall have no liability to Executive
 or to any other person if any of the provisions of this Agreement, including
 Section 6(a), are determined to constitute deferred compensation subject to
 Section 409A but not to satisfy an exemption for, or the conditions of,
 that section. Notwithstanding anything to the contrary, if on the date of
 Executive’s “separation from service” (within the meaning of Treas. Reg.
 §1.409A-1(h)), Executive is a “specified employee” within the meaning of
 Treas. Reg. §1.409-1(i), then payment of any amount under this Agreement that
 constitutes nonqualified deferred compensation shall be delayed until the earlier
 of (i) the first day of the seventh month following Executive’s separation
 from service or the first date on which such payment would not be
 non-deductible as a result of Section 162(m) of the Code, whichever is later;
 or (ii) Executive’s death, and in the event any such payment is so delayed,
 the amount of the first payment shall be increased for interest earned on the
 delayed payment based upon interest for the period of delay, compounded
 annually, equal to the prime rate (as published in the Wall Street Journal)
 in effect as of the date the payment should otherwise have been provided.

 
	
  

 	
  

 	
  

 
	
  

 	
 7.       Other
 Post-Termination Obligations.

 
	
  

 	
  

 	
  

 
	
  

 	
           a.          Upon
 termination of Executive’s employment with the Company, Executive will resign
 all positions then held by Executive, including any director, officer or
 other position with any subsidiary or affiliated entity of the Company, and
 will promptly execute and provide to the Company any further documentation,
 as requested by the Company, to confirm such resignation.

 
	
  

 	
  

 	
  

 
	
  

 	
           b.          Executive
 acknowledges and agrees that Executive will continue to be a designated
 insider under the Qumu Corporation Policy
 Regarding Buying and Selling Securities – Insider Trading until either
 (i) Executive’s Separation Date, if such date occurs during an open
 trading window; or (ii) such date that the trading window for insiders
 opens, if Executive’s Separation Date occurs during a closed trading window.

 

4

          8.          Post-Employment
Assistance. If Executive satisfies all of conditions of Section 6(b), then
for a period from the Separation Date through March 31, 2016 (the “Assistance
Period”), Executive agrees to cooperate with the Company in providing
reasonable assistance as requested by the Company with respect to the
transitioning of Executive’s work, and that Executive will be available to the
Company for these purposes or any other purposes reasonably requested by the
Company. This cooperation and assistance (the “Post-Employment Assistance”) is
expected to include availability to answer questions regarding the operation of
the Company and the finance department and, if necessary, to attend meetings.
The time commitment for the Post-Employment Assistance will be limited to
twenty hours per month. The Company does not intend for the Post-Employment
Assistance to interfere with Executive obtaining new employment on a part- or
full-time basis provided that such new employment permits the Post-Employment
Assistance and is not in violation of the Confidentiality Agreement. The
Company shall, to the extent practicable, provide Executive with advance (via
email and/or phone) notice of any Post-Employment Assistance it requires from
Executive during the Assistance Period and shall endeavor to reasonably
accommodate Executive’s personal and potential new employment schedule in
requesting the Post-Employment Assistance. In addition, if practical, Executive
may offer Post-Employment Assistance during non-business hours (evenings and
weekends) and doing so would not be a violation of this Section 8. As
payment for Executive’s availability to provide Post-Employment Assistance, the
Company will make a lump sum payment to Executive on January 8, 2016 of $57,000
and on April 8, 2016 of $57,000 provided that Executive has complied with
Executive’s obligations under this Section and the Confidentiality Agreement; provided that, in the event of a breach of
the Confidentiality Agreement that by its nature is capable of being cured,
Executive shall have the opportunity to cure such breach within 30 days after
delivery to Executive of a notice from the Company requesting cure.

          9.          Public
Statements. Executive hereby acknowledges and agrees that the Company will
be required under federal securities laws to disclose the terms of this
Agreement and to file a copy of this Agreement with the Securities and Exchange
Commission. Executive will not defame or disparage the reputation, character,
image, products or services of the Company, or the reputation or character of
the Company’s directors, officers, employees or agents. Officers and directors
of the Company will not defame or disparage the reputation or character of
Executive. Nothing in this Section will be construed to limit or restrict
Executive or the Company from taking any action that such party in good faith
reasonably believes is necessary to fulfill such party’s fiduciary obligations
to the Company or from providing truthful information in connection with any
legal proceeding, government investigation or other legal matter. 

          10.        Tax
Withholding. The Company may withhold from any amounts payable under this
Agreement such federal, state and local income and employment taxes as the
Company shall determine are required to be withheld pursuant to any applicable
law or regulation. The Company makes no assurances to Executive as to the tax
treatment of any payments hereunder and, except with respect to tax amounts
withheld by the Company, Executive will be responsible for payment and remittance
of all taxes due with respect to compensation received or imputed under this
Agreement. 

5

          11.        Assignment.
This Agreement is binding on Executive and on the Company and its successors
and assigns. The rights and obligations of the Company under this Agreement may
be assigned to a successor, including, but not limited to, a purchaser of all
or substantially all of the business or assets of the Company. No rights or
obligations of Executive hereunder may be assigned by Executive’s to any other
person or entity. 

	
  

 	
  

 	
  

 
	
           12.        Entire Agreement; Effect on Prior Agreements.
 

 
	
  

 	
  

 	
  

 
	
  

 	
              a.          This
 Agreement, the Confidentiality Agreement, the Long-Term Incentive Plan, any written stock option agreements
 and restricted stock award agreements to which Executive and the Company are
 parties, and the employee benefit plans sponsored by the Company in which
 Executive is a participant are intended to define the full extent of the
 legally enforceable undertakings of the parties, and no promises or
 representations, written or oral, that are not set forth or referenced
 explicitly in this Agreement, such other agreements or such other plans are
 intended by either party to be legally binding.

 
	
  

 	
  

 	
  

 
	
  

 	
              b.          This
 Agreement supersedes both the offer letter from the Company to Executive
 dated July 6, 2010 and the Change in Control Agreement, which both shall terminate and have no further force and
 effect as of the Effective Date.

 
	
  

 	
  

 	
  

 
	
  

 	
              c.          The
 Company and Executive hereby amend the Confidentiality Agreement such that
 the non-compete obligations of Executive pursuant to Section 3(b) of the
 Confidentiality Agreement and the notification obligations of Executive
 pursuant to Section 7 of the Confidentiality Agreement shall be in effect for
 a period of one (1) year following the Separation Date. Executive
 acknowledges and agrees that the Confidentiality Agreement, as amended by
 this Agreement, remains in full force and effect and Executive affirms
 Executive’s continuing obligations to the Company under the Confidentiality
 Agreement, as amended hereby. Executive agrees that the Company may, in
 addition to other remedies provided under the Confidentiality Agreement,
 withhold payments due to Executive under this Agreement for violation of the
 Confidentiality Agreement; provided
 that, in the event of a breach of the Confidentiality Agreement that by its
 nature is capable of being cured, Executive shall have the opportunity to
 cure such breach within 30 days after delivery to Executive of a notice from
 the Company requesting cure.

 

          13.        Amendments.
No amendment or modification of this Agreement will be effective unless made in
writing and signed by Executive and the Company. 

          14.        No
Waiver. No term or condition of this Agreement shall be deemed to have been
waived, except by a statement in writing signed by the party against whom
enforcement of the waiver is sought. Any written waiver shall not be deemed a
continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived. 

          15.        Headings.
The descriptive headings of the paragraphs and subparagraphs of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement. 

6

        16.          Governing
Law. All matters relating to the interpretation, construction, application,
validity and enforcement of this Agreement shall be governed by the laws of the
State of Minnesota without giving effect to any choice or conflict of law
provision or rule, whether of the State of Minnesota or any other jurisdiction,
that would cause the application of laws of any jurisdiction other than the
State of Minnesota. 

        17.          Jurisdiction
and Venue. Executive and the Company consent to jurisdiction of the courts
of the State of Minnesota and/or the United States District Court, District of
Minnesota, for the purpose of resolving all issues of law, equity, or fact
arising out of or in connection with this Agreement. Any action involving claims of a breach of this
Agreement must be brought exclusively in such courts. Each party consents to
personal jurisdiction over such party in the state and/or federal courts of
Minnesota and hereby waives any defense of lack of personal jurisdiction. The
Company agrees that if Executive prevails in any legal action relating to the
Company’s breach or threatened breach of any term of this Agreement or the
Confidentiality Agreement, Executive shall be entitled to payment of his
reasonable attorney fees’ and costs incurred in bringing and prevailing in such
an action.

        18.          Waiver
of Jury Trial. To the extent permitted by law, Executive and the Company
waive any and all rights to a jury trial with respect to any dispute arising
out of or relating to this Agreement. 

        19.          Notices.
Any notice required or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been duly given when (a) delivered
personally; (b) one business day after being sent by a national overnight
courier service; or (c) three business days after being sent by registered
or certified mail, postage prepaid, and addressed as follows: 

	
  

 	
  

 
	
 If to the Company:

 	
 Chief Executive Officer

 
	
  

 	
 Qumu Corporation

 
	
  

 	
 7725 Washington Avenue
 South

 
	
  

 	
 Minneapolis, MN 55439-0242

 
	
  

 	
  

 
	
 If to Executive:

 	
 James R. Stewart

 
	
  

 	
 [address]

 
	
  

 	
 [address]

 

        20.          Counterparts.
This Agreement may be executed in several counterparts, each of which shall
constitute an original and all of which, when taken together, shall constitute
one agreement. 

7

IN WITNESS WHEREOF, the parties have executed this
Transition Agreement on the date first stated above. 

	
  

 	
  

 
	
  

 	
 QUMU CORPORATION

 
	
  

 	
  

 
	
  

 	
 /s/ Sherman L. Black

 
	
  

 	
 Sherman L. Black, Chief
 Executive Officer

 
	
  

 	
  

 
	
  

 	
 /s/ James R. Stewart

 
	
  

 	
 James R. Stewart 

 

8

EXHIBIT A

RELEASE BY
JAMES R. STEWART

THIS RELEASE AGREEMENT (the
“Release Agreement” or the “Release”) is entered into as of __________, by and
between Qumu Corporation (“Qumu” or the “Company”) and James R. Stewart. 

Definitions. I intend all words used in
this Release to have their plain meanings in ordinary English. Specific terms
that I use in this Release have the following meanings: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 I, me, and my
 include both me and anyone who has or obtains any legal rights or claims
 through me. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Qumu means Qumu Corporation, any
 company related to Qumu Corporation in the present or past (including,
 without limitation, its predecessors, parents, subsidiaries, affiliates, and
 divisions), and any successors of Qumu Corporation. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Company means Qumu; the present
 and past officers, directors, committees, shareholders, and employees of
 Qumu; any company providing insurance to Qumu in the present or past; the
 present and past employee benefit plans sponsored or maintained by Qumu and
 the present and past fiduciaries of such plans; the attorneys for Qumu; and anyone
 who acted on behalf of Qumu or on instructions from Qumu. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 Agreement means the Transition
 Agreement between Qumu and me made as of March 4, 2015. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 E.

 	
 My Claims means all of my rights
 that I now have to any relief of any kind from the Company, including without
 limitation: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.

 	
 all claims arising out of or relating to my
 employment with Qumu or the termination of that employment, or otherwise,
 including, without limitation, all claims arising out of or relating to the
 Company’s Offer Letter to me dated July 6, 2010, the Amended and Restated
 Severance/Change in Control Letter Agreement between me and Qumu made as of
 February 21, 2013, the long-term
 incentive program and related long-term incentive bonus agreement dated February 21, 2013 between me and the
 Qumu, and the Company’s short-term cash incentive compensation plan
 for 2015;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.

 	
 all claims arising out of or relating to the
 statements, actions, or omissions of the Company;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.

 	
 all claims I may have for wages, bonuses, deferred
 compensation, commissions, penalties, vacation pay, separation pay and/or
 benefits, defamation, improper discharge or retaliation (based on contract,
 common law, or statute, including any federal, state or local statute or
 ordinance prohibiting discrimination or retaliation in employment), alleged
 violation 

 

9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 of the Minnesota Human Rights Act, Title VII of the
 Civil Rights Act of 1964 as amended, the Older Workers Benefit Protection Act
 and Age Discrimination in Employment Act, the Americans with Disabilities
 Act, the Family and Medical Leave Act, and any claim for discrimination,
 harassment, retaliation, or reprisal based on a protected class under local,
 state or federal law.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 4.

 	
 all claims for alleged wrongful discharge; breach of
 contract; breach of implied contract; failure to keep any promise; breach of
 a covenant of good faith and fair dealing; breach of fiduciary duty;
 estoppel; my activities, if any, as a “whistleblower”; defamation; infliction
 of emotional distress; fraud; misrepresentation; negligence; harassment;
 retaliation or reprisal; constructive discharge; assault; battery; false
 imprisonment; invasion of privacy; interference with contractual or business
 relationships; any other wrongful employment practices; and violation of any
 other principle of common law;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.

 	
 all claims for compensation of any kind, including
 without limitation, base salary, bonuses, commissions, incentive compensation
 (whether payable in cash or equity and whether performance or time based),
 equity compensation of any kind (including stock options or restricted
 stock), vacation pay, perquisites, relocation expenses, and expense
 reimbursements;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.

 	
 all claims for back pay, front pay, reinstatement,
 other equitable relief, compensatory damages, damages for alleged personal
 injury, liquidated damages, and punitive damages;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 7.

 	
 all claims that a past unlawful decision has or
 has had a continuing effect on my compensation; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.

 	
 all claims for attorneys’ fees, costs, and interest.

 

However, My Claims
does not include any claims that the law does not allow to be waived; any
claims that may arise after the date on which I sign this Release; any claims
for breach of the Agreement; any rights I have under any written stock option
or restricted stock award agreement with Qumu; my right to benefits under any
employee benefit plan sponsored by Qumu in which I am currently a participant;
or any rights that I may have to indemnification from Qumu as a current or
former officer, director, or employee of Qumu, including without limitation
indemnification rights under applicable laws, the Articles of Incorporation or
Bylaws of Qumu, or any liability insurance policy maintained by Qumu. 

Not withstanding the
foregoing, I understand that nothing contained in this Release Agreement shall
be construed to prohibit me from seeking recourse through a government agency
exercising any rights that are not allowed to be released by law or to testify,
assist, or participate in an investigation, hearing or proceeding conducted by
a state or federal governmental agency regarding a charge or claim of alleged
discrimination, harassment or retaliation filed with the 

10

governmental agency. I
understand, however, that this Release includes a release of my right to file a
court action or to seek individual remedies or damages in any court action
filed by any such government agency and my release of these rights shall apply
with full force and effect to any proceedings arising from or relating to such
recourse including, but not limited to, the right to monetary damages or other
individual legal or equitable relief awarded by any governmental agency. 

Further, I understand that
nothing contained in this Release shall prevent me from providing a copy of this
Release to a human rights agency including, but not limited to, the Equal
Employment Opportunity Commission (“EEOC”), to demonstrate that I have
knowingly and voluntarily executed a general release of claims or from
providing information to the EEOC or any similar government agency regarding
any employee disputes (including, but not limited to, my own). 

Agreement to Release My Claims. I
acknowledge that I will receive consideration from Qumu as set forth in the
Agreement if I sign and do not rescind or revoke this Release as provided
below. I understand and acknowledge that that consideration is in addition to
anything of value that I would be entitled to receive from Qumu if I did not
sign this Release or if I rescinded or revoked this Release. In exchange for
that consideration, I hereby release, agree not to sue, and forever discharge
the Company from all of My Claims to the full extent allowed by law. I will not
make any demands or claims against the Company for compensation or damages
relating to My Claims. The consideration that I am receiving is a fair
consideration for the release of My Claims. 

Additional Agreements and
Understandings. Even though Qumu will provide consideration
for me to settle and release My Claims, the Company does not admit that it is
responsible or legally obligated to me. In fact, the Company denies that it is
responsible or legally obligated to me for My Claims, denies that it engaged in
any unlawful or improper conduct toward me, and denies that it treated me
unfairly. 

Advice to Consult with an Attorney. I
understand and acknowledge that I am hereby being advised by the Company to
consult with an attorney prior to signing this Release. My decision whether to
sign this Release is my own voluntary decision made with full knowledge that
the Company has advised me to consult with an attorney. 

Period to Consider the Release. I
understand that I have 21 days from the day that I receive this Release, not
counting the day upon which I receive it, to consider whether I wish to sign
this Release. If I sign this Release before the end of the 21-day period, it
will be my voluntary decision to do so and I waive any remaining days in the
21-day period. 

My Right to Rescind/Revoke this
Release. I understand that I have the right to revoke
this Agreement within 7 calendar days of signing this Agreement to reinstate
federal claims under the Age Discrimination in Employment Act and that I have
the right to rescind this Agreement within 15 calendar days of signing this
Agreement to reinstate claims arising under the Minnesota Human Rights Act.
This Release will not become effective or enforceable unless and until the
7-day or 15-day revocation or rescission period has expired without my revoking
or rescinding it. 

11

Procedure for Accepting or Rescinding/Revoking
the Release. To accept the terms of this Release, I must
deliver the Release, after I have signed and dated it, to Qumu by hand or by
mail no later than the last day of the 21-day period that I have to consider
this Release. To rescind or revoke my acceptance of this Release, I must
deliver a written, signed statement that I rescind or revoke my acceptance to
Qumu by hand or by mail within the applicable rescission or revocation period.
All deliveries must be made to Qumu at the following address: 

	
  

 	
  

 
	
  

 	
 Chief Executive Officer

 
	
  

 	
 Qumu Corporation 

 
	
  

 	
 7725 Washington Avenue
 South

 
	
  

 	
 Minneapolis, MN 55439-0242

 

If I choose to deliver my
acceptance or the rescission/revocation of my acceptance by mail, it must be: 

	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 postmarked within the period
 stated above; and 

 
	
  

 	
 (2)

 	
 properly addressed to Qumu
 at the address stated above. 

 

Interpretation of the Release. This Release should be interpreted as
broadly as possible to achieve my intention to resolve all of My Claims against
the Company. If this Release is held by a court to be inadequate to release a
particular claim encompassed within My Claims, this Release will remain in full
force and effect with respect to all the rest of My Claims. 

My Representations. I am
legally able and entitled to receive the consideration being provided to me in
settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with Qumu.
No child support orders, garnishment orders, or other orders requiring that
money owed to me by Qumu be paid to any other person are now in effect. 

I have read this Release
carefully. I understand all of its terms. In signing this Release, I have not
relied on any statements or explanations made by the Company except as
specifically set forth in the Agreement. I am voluntarily releasing My Claims
against the Company. I intend this Release and the Agreement to be legally
binding. 

	
  

 	
  

 	
  

 
	
  

 	
 James R. Stewart

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Date

 	
  

 

12

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