Document:

Registration Rights Agreement

 Exhibit 10.4 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION
RIGHTS AGREEMENT (this “Agreement”) is made as of the 11th day of February 2010, between DayStar Technologies, Inc., a Delaware corporation (the “Company”), and the individual listed on Schedule
I (the “Purchaser”). The Company and the Purchaser are sometimes referred to individually as a “Party” and collectively as the “Parties”. 
 RECITALS 
 A. The Company and the Purchaser are parties to that certain Purchase Agreement dated February 11, 2010 (the “Purchase Agreement”) pursuant to which the Company has agreed to
sell, and the Purchaser has agreed to purchase, (a) a secured convertible note of the Company (the “Note”) secured by a Security Agreement of even date (the “Security Agreement”), and (b) a
warrant to purchase up to 1,000,000 shares of common stock of the Company (the “Warrant”). The Purchase Agreement, the Note, the Security Agreement and the Warrant are herein referred to as the “Loan
Documents”. 
 B. In connection with the purchase by the Purchaser of the Note and the Warrant pursuant to the
Purchase Agreement, the Company desires to grant to the Purchaser and his successors and permitted assigns certain registration rights with respect to shares of common stock of the Company (“Common Stock”). 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter set forth, the Parties agree as follows. 
 ARTICLE I. 
 REGISTRATION RIGHTS 
 Section 1.1 Definitions. For purposes of this Agreement: 
 “Affiliate” means, with respect to any Person, (i) any other Person of which securities or other ownership
interests representing more than 50% of the voting interests are, at the time such determination is being made, owned, Controlled or held, directly or indirectly, by such Person or (ii) any other Person which, at the time such determination is
being made, is Controlling, Controlled by or under common Control with, such Person. “Control”, whether used as a noun or verb, refers to the possession, directly or indirectly, of the power to direct, or cause the direction
of, the management or policies of a Person, whether through the ownership of voting securities or otherwise. 
 “Holder” means a Person that (i) is a party to this Agreement (or a permitted transferee under Section 2.2) and (ii) owns Registrable Securities; provided, however, that for
purposes of this Agreement, Holders of Registrable Securities will not be required to convert the Note or exercise the Warrant into Common Stock to exercise the registration rights granted hereunder, until immediately before the closing of the
offering to which the registration relates. 

 “Participating Holders” means Holders participating, or electing to
participate, in an offering of Registrable Securities. 
 “Person” means any individual, firm,
corporation, company, partnership, trust, incorporated or unincorporated association, limited liability company, joint venture, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind, and will
include any successor (by merger or otherwise) of any such entity. 
 “Registrable Securities” means any
shares of Common Stock (i) issued or issuable upon conversion of the Note; (ii) issued or issuable upon exercise of the Warrant; (iii) otherwise held or which could be held upon conversion or exercise by the Purchaser; and
(iv) issued or issuable with respect to the securities referred to in clauses (i) - (iii) above by virtue of any stock split, combination, stock dividend, merger, consolidation or other similar event; provided, however, that
shares of Common Stock that are considered to be Registrable Securities will cease to be Registrable Securities (A) upon the sale thereof pursuant to an effective registration statement, (B) upon the sale thereof pursuant to Rule 144 (or
successor rule) under the Securities Act where the purchaser thereof receives unrestricted securities, (C) when such securities cease to be outstanding or (D) in a private transaction where the transferor’s rights under this Agreement
are not assigned. 
 “Registration Expenses” mean all expenses (other than underwriting discounts and
commissions) arising from or incident to the performance of or compliance with this Agreement, including without limitation (i) SEC, stock exchange, the Financial Industry Regulatory Authority (“FINRA”) and other
registration and filing fees, (ii) all fees and expenses incurred in connection with complying with any securities or blue sky laws, (iii) all printing, messenger and delivery expenses, (iv) the fees, charges and disbursements of
counsel to the Company and of its independent public accountants and any other accounting and legal fees, charges and expenses incurred by the Company (including, without limitation, any expenses arising from any special audits or “comfort
letters” required in connection with or incident to any registration), (v) the fees, charges and disbursements of any special experts retained by the Company in connection with any registration pursuant to the terms of this Agreement,
(vi) all internal expenses of the Company, and (vii) the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange, in each case regardless of whether any Registration Statement is
declared effective. 
 “Registration Statement” will mean any Registration Statement of the Company
filed with the SEC on the appropriate form pursuant to the Securities Act which covers any of the shares of Common Stock and any other Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such
Registration Statement, including post-effective amendments, in each case including the prospectus contained therein, all exhibits thereto and all materials incorporated by reference therein. 
 “SEC” means the United States Securities and Exchange Commission. 
 “Selling Expenses” will mean the underwriting fees, discounts, selling commissions and stock transfer taxes
applicable to all Registrable Securities registered by the Participating Holders. 
  

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 Section 1.2 Filing of Registration Statement. Obligation to File Registration
Statement. The Company will, within 45 days after the earliest of the Company obtaining stockholder approval of the issuance of Common Stock under the Warrant and Note, obtaining a letter from Nasdaq exempting the Company from obtaining such
shareholder approval, or determining that such stockholder approval is not required, file a Registration Statement under the Securities Act covering the sale or other distribution of all or any portion of the Registrable Securities pursuant to Rule
415 under the Securities Act. The Company will use its reasonable efforts to have such Registration Statement declared effective by the SEC as soon as practicable thereafter (the “Effectiveness Deadline”). 
 (a) Liquidated Damages. To the extent (a) the Registration Statement required pursuant to this
Section 1.2 is not filed with the SEC on or prior to the Effectiveness Deadline, (b) such Registration Statement has not been declared effective by the SEC on or prior to the Effectiveness Deadline, or (c) such Registration
Statement is filed and declared effective but thereafter ceases to be effective or fails to be usable for its intended purpose without being succeeded within five days by a post-effective amendment thereto that cures such failure and that is itself
declared effective within five days of filing such post-effective amendment (each, a “Registration Default”), then the Company will pay to each Holder liquidated damages in an amount equal to one percent (1%) of the
original principal amount owed under the Note, for each month or portion thereof that the Registration Default continues. However, in no event shall the Company pay liquidated damages in excess of ten percent (10%) of the principal amount of
the Notes in total to each Holder. Any liquidated damages paid hereunder by the Company shall not be considered the charge for or payment of interest under the Notes. 
 (b) Continuing Agreements. The event of a Registration Default and payment of liquidated damages by the Company will not
relieve, impair, adjust, modify or any way change the obligations of the Company under the Loan Documents. 
 Section 1.3
Piggyback Registrations. 
 (a) Right to Include Registrable Securities. In the event that a
Registration Default has occurred and is continuing, and thereafter the Company from time to time proposes for any reason to register any of its Common Stock under the Securities Act, either for its own account or for the account of a stockholder
other than pursuant to a Registration Statement on Forms S-4 or S-8 (or similar or successor forms) or pursuant to one or more secured bridge financing transactions from the Issuance Date of the Note and through the later to occur of the Maturity
Date or the date upon which the Note is paid in full (a “Proposed Registration”), the Company will promptly give written notice thereof to all of the Holders (which notice will be given not less than 30 days prior to the
expected effective date of the Company’s Registration Statement) and will offer such Holders the right to request inclusion of any of such Holder’s Registrable Securities in the Proposed Registration. No registration pursuant to this
Section 1.3 will relieve the Company of its obligation to register Registrable Securities pursuant to Section 1.2, to pay liquidated damages or under the Loan Documents. 
  

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 (b) Piggyback Procedure. Each Holder of Registrable Securities will
have 20 days from the date of receipt of the Company’s notice referred to in Section 1.3(a) to deliver to the Company a written request specifying the number of Registrable Securities such Holder intends to sell and such
Holder’s intended method of disposition. Any Holder will have the right to withdraw such Holder’s request for inclusion of such holder’s Registrable Securities in any Registration Statement pursuant to this Section 1.3 by
giving written notice to the Company of such withdrawal. Subject to Section 1.3(d), the Company will use commercially reasonable efforts to include in such Registration Statement all such Registrable Securities so requested to be
included therein; provided, however, that the Company may at any time withdraw or cease proceeding with any such Proposed Registration if it will at the same time withdraw or cease proceeding with the registration of all other shares
of Common Stock originally proposed to be registered. If the Proposed Registration by the Company is, in whole or in part, an underwritten public offering of securities of the Company, any request under this Section 1.3(b) will specify
that the Registrable Securities be included in the underwriting on the same terms and conditions as the shares, if any, otherwise being sold through underwriters under such registration. If the Company fails to notify Holder or to include
Holder’s Registrable Securities in the Proposed Registration as provided in Section 1.3(a) or (b) or the Registrable Securities are excluded under Section 1.3(d), the Company will pay Holder liquidated damages in an
amount equal to one percent (1%) of the original principal amount of the indebtedness owed under the Note, for each month or portion thereof that the default continues, subject to the limitations on liquidated damages found in Section 1.2
(a). 
 (c) Selection of Underwriters. The managing underwriter for any Proposed Registration that
involves an underwritten public offering will be one or more reputable nationally recognized investment banks selected by the Company and reasonably acceptable to a majority in interest of the Holders. 
 (d) Priority for Piggyback Registration. Notwithstanding any other provision of this Article 1, if the managing
underwriter of an underwritten public offering determines in good faith and advises the Company and the Holders that the inclusion of all Registrable Securities proposed to be included by the Holders of Registrable Securities in such offering would
materially and adversely interfere with the successful marketing of the Company’s securities, then the Holders of Registrable Securities will not be permitted to include any Registrable Securities in excess of the amount, if any, of Registrable
Securities which the managing underwriter of such offering will reasonably and in good faith agree in writing to include in such offering in addition to the amount of securities to be registered for the Company. The Company will include in such
Registration Statement, as to each Holder, only a portion of the Registrable Securities such Holder has requested be registered equal to the ratio which such Holder’s requested

  

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Registrable Securities bears to the total number of Registrable Securities requested to be included in such Registration Statement by all Holders. Pursuant to the foregoing provision, the
securities to be included in a registration initiated by the Company will be allocated: (i) first, to the Company; (ii) second, pari passu to the Holders; and (iii) third, to any others requesting registration of securities of the
Company. 
 Section 1.4 Registration Procedures. 
 (a) Obligations of the Company. Whenever registration of Registrable Securities is required pursuant to this
Agreement, the Company will use its reasonable efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of distribution thereof as promptly as possible, and in connection with any such
request, the Company will, as expeditiously as possible: 
 (i) Preparation of Registration Statement;
Effectiveness. Prepare and file with the SEC a Registration Statement on any form on which the Company then qualifies, which counsel for the Company will deem appropriate and pursuant to which such offering may be made in accordance with the
intended method of distribution thereof (except that the Registration Statement will contain such information as may reasonably be requested for marketing or other purposes by the managing underwriter), and use reasonable best efforts to cause any
registration required hereunder to become effective as soon as practicable after the initial filing thereof (unless a specific time period is otherwise set forth herein) and remain effective for a period of not less than one year from the effective
date thereof or such shorter period in which all Registrable Securities have been sold in accordance with the methods of distribution set forth in the Registration Statement; provided that, in the case of any registration of Registrable
Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such one-year period will be extended, if necessary, to keep the Registration Statement effective until all such Registrable Securities are sold,
provided that Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed basis; 
 (ii) Participation in Preparation. Provide any Participating Holder, any underwriter participating in any disposition pursuant to a Registration Statement, and any attorney, accountant or other
agent retained by any Participating Holder or underwriter (collectively, the “Inspectors”), the opportunity to participate in the preparation of such Registration Statement, each prospectus included therein or
filed with the SEC and each amendment or supplement thereto; 
  

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 (iii) Due Diligence. For a reasonable period prior to the filing of
any Registration Statement pursuant to this Agreement, make available for inspection and copying by the Inspectors such financial and other information and books and records, pertinent corporate documents and properties of the Company and its
subsidiaries and cause the officers, directors, employees, counsel and independent certified public accountants of the Company and its subsidiaries to respond to such inquiries and to supply all information reasonably requested by any such Inspector
in connection with such Registration Statement, as will be reasonably necessary, in the judgment of the respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act; provided, however, that if
requested by the Company, each Inspector will enter into a confidentiality agreement with the Company prior to the Company’s release or disclosure of confidential information to such Inspector; 
 (iv) General Notifications. Promptly notify in writing the Participating Holders, the sales or placement agent, if
any, therefor and the managing underwriter of the securities being sold, (A) when such Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post-effective amendment has been filed, and, with
respect to any such Registration Statement or any post-effective amendment, when the same has become effective, (B) when the SEC notifies the Company whether there will be a “review” of such Registration Statement and (C) of any
comments (oral or written) by the SEC and by the blue sky or securities commissioner or regulator of any state with respect thereto or (D) of any request by the SEC for any amendments or supplements to such Registration Statement or the
prospectus or for additional information; 
 (v) 10b-5 Notification. Promptly notify in writing the
Participating Holders, the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold pursuant to any Registration Statement at any time when a prospectus relating thereto is required to be delivered under
the Securities Act upon discovery that, or upon the happening of any event as a result of which, any prospectus included in such Registration Statement (or amendment or supplement thereto) contains an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and the Company will promptly prepare a supplement or amendment to such
prospectus and file it with the SEC (in any event no later than ten days following notice of the occurrence of such event to each Participating Holder, the sales or placement agent and the managing underwriter) so that after delivery of such
prospectus, as so amended or supplemented, to the purchasers of such Registrable Securities, such prospectus, as so amended or supplemented, will not contain an untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made; 
  

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 (vi) Notification of Stop Orders; Suspensions of Qualifications and
Exemptions. Promptly notify in writing the Participating Holders, the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold of the issuance by the SEC of (A) any stop order issued or threatened
to be issued by the SEC or (B) any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose and the Company will use reasonable efforts to (x) prevent the issuance of any such stop order, and in the event of such issuance, to obtain the withdrawal of any such stop order and (y) obtain the withdrawal of
any order suspending or preventing the use of any related prospectus or suspending the qualification of any Registrable Securities included in such Registration Statement for sale in any jurisdiction at the earliest practicable date; 
 (vii) Amendments and Supplements; Acceleration. Prepare and file with the SEC such amendments, including
post-effective amendments, as may be necessary to keep each Registration Statement continuously effective for the applicable time period required hereunder and if applicable, file any Registration Statements pursuant to Rule 462(b) under the
Securities Act; cause the related prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; and comply
with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the sellers thereof
set forth in such Registration Statement as so amended or in such prospectus as so supplemented; 
 (viii)
Copies. Furnish as promptly as practicable to each Participating Holder copies of such Registration Statement, supplement or amendment as it is proposed to be filed, and after such filing such number of copies of such Registration Statement,
each amendment and supplement thereto (in each case including all exhibits thereto), the prospectus included in such Registration Statement (including each preliminary prospectus) and such other documents as each such Participating Holder or
underwriter may reasonably request; 
 (ix) Blue Sky. Use reasonable efforts to, prior to any public
offering of the Registrable Securities, register or qualify (or seek an exemption from registration or qualifications) such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any

  

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Participating Holder or underwriter may request, and to continue such qualification in effect in each such jurisdiction for as long as is permissible pursuant to the laws of such jurisdiction, or
for as long as a Participating Holder or underwriter requests or until all of such Registrable Securities are sold, whichever is shortest, and do any and all other acts and things which may be reasonably necessary or advisable to enable any
Participating Holder to consummate the disposition in such jurisdictions of the Registrable Securities; 
 (x)
Other Approvals. Use reasonable efforts to obtain all other approvals, consents, exemptions or authorizations from such governmental agencies or authorities as may be necessary to enable the Participating Holders and underwriters to
consummate the disposition of Registrable Securities; 
 (xi) “Cold Comfort” Letter.
Obtain a “cold comfort” letter from the Company’s independent public accountants in customary form and covering such matters of the type customarily covered by “cold comfort” letters as the managing underwriter may
reasonably request, and reasonably satisfactory to a majority in interest of the Participating Holders; 
 (xii)
Legal Opinion. Furnish, at the request of any underwriter of Registrable Securities on the date such securities are delivered to the underwriters for sale pursuant to such registration, an opinion, dated such date, of counsel representing the
Company for the purposes of such registration, addressed to the Holders, and the placement agent or sales agent, if any, thereof and the underwriters, if any, thereof, covering such legal matters with respect to the registration in respect of which
such opinion is being given as such underwriter may reasonably request and as are customarily included in such opinions; 
 (xiii) Certificates, Closing. Provide officers’ certificates and other customary closing documents; 
 (xiv) FINRA. Cooperate with each Participating Holder and each underwriter participating in the disposition of such
Registrable Securities and underwriters’ counsel in connection with any filings required to be made with the FINRA; 
 (xv) Listing. Use reasonable efforts to cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed and if not
so listed, to be listed on the over-the-counter system; 
 (xvi) Private Sales. Use reasonable efforts to
assist a Holder in facilitating private sales of Registrable Securities by, among other things, providing officers’ certificates and other customary closing documents reasonably requested by a Holder; and 
  

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 (xvii) Reasonable Efforts. Use reasonable efforts to take all other
actions necessary to effect the registration of the Registrable Securities contemplated hereby. 
 (b) Seller
Information. The Company may require each Participating Holder as to which any registration of such Holder’s Registrable Securities is being effected to furnish to the Company with such information regarding such Participating Holder and
such Participating Holder’s method of distribution of such Registrable Securities as the Company may from time to time reasonably request in writing. 
 (c) Notice to Discontinue. Each Participating Holder whose Registrable Securities are covered by a Registration Statement filed pursuant to this Agreement will, upon receipt of written notice from
the Company of the happening of any event of the kind described in Section 1.4(a)(v), forthwith discontinue the disposition of Registrable Securities until such Participating Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 1.4(a)(v) or until it is advised in writing by the Company that the use of the prospectus may be resumed and has received copies of any additional or supplemental filings which are incorporated
by reference into the prospectus. If the Company will give any such notice, the Company will extend the period during which such Registration Statement is to be maintained effective by the number of days during the period from and including the date
of the giving of such notice pursuant to Section 1.4(a)(v) to and including the date when the Participating Holder will have received the copies of the supplemented or amended prospectus contemplated by, and meeting the requirements of,
Section 1.4(a)(v). 
 Section 1.5 Registration Expenses. Except as otherwise provided herein, all
Registration Expenses will be borne by the Company. All Selling Expenses relating to Registrable Securities registered will be borne by the Participating Holders of such Registrable Securities pro rata on the basis of the number of shares so
registered. 
 Section 1.6 Indemnification 
 (a) Indemnification by the Company. Notwithstanding termination of this Agreement, the Company will indemnify and hold
harmless to the fullest extent permitted by law, each Holder, each of its directors, officers, employees, advisors, agents and general or limited partners (and the directors, officers, employees, advisors and agents thereof), their respective
Affiliates and each Person who controls (within the meaning of the Securities Act or the Exchange Act) any of such Persons, and each underwriter and each Person who controls (within the meaning of the Securities Act or the Exchange Act) any
underwriter (collectively, “Holder Indemnified Parties”) from and against any and all losses,

  

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claims, damages, expenses (including, without limitation, reasonable costs of investigation and fees, disbursements and other charges of counsel, any amounts paid in settlement effected with the
Company’s consent, which consent will not be unreasonably withheld or delayed and any costs incurred in enforcing the Company’s indemnification obligations hereunder) or other liabilities (collectively,
“Losses”) to which any such Holder Indemnified Party may become subject under the Securities Act, Exchange Act, any other federal law, any state or common law or any rule or regulation promulgated thereunder or
otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) are resulting from or arising out of or based upon (i) any untrue, or alleged untrue, statement of a material fact contained in
any Registration Statement, prospectus or preliminary prospectus (as amended or supplemented) or any document incorporated by reference in any of the foregoing or resulting from or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made), not misleading or (ii) any violation by the Company
of the Securities Act, Exchange Act, any other federal law, any state or common law or any rule or regulation promulgated thereunder or otherwise incident to any registration, qualification or compliance or (iii) any violation by the Company of
this Agreement, and in any such case, the Company will promptly reimburse each such Holder Indemnified Party for any legal and any other Losses reasonably incurred in connection with investigating, preparing or defending any such claim, loss,
damage, liability, action or investigation or proceeding (collectively, a “Claim”); provided, however, that the liability of the Company under this Section 1.6(a) will be limited to an amount equal
to the sum of the principal amount of the Note plus all accrued unpaid interest earned thereon at the time the Claim was made and the exercise price of the Warrant and that the Company will not be liable to any Holder Indemnified Party for any
Losses that arise out of or are based upon (x) written information provided by a Holder Indemnified Party expressly for use in the Registration Statement or (y) sales of Registrable Securities by a Holder Indemnified Party to a person to
whom there was not sent or given, at or before the written confirmation of such sale, a copy of the prospectus (excluding documents incorporated by reference) or the prospectus as then amended or supplemented (excluding documents incorporated by
reference) if the Company has previously furnished in a timely manner a reasonable number of copies thereof to such Holder Indemnified Party in compliance with this Agreement and the Losses of such Holder Indemnified Party results from an untrue
statement or omission of a material fact contained in such preliminary prospectus which was corrected in the prospectus (or the prospectus as then amended or supplemented). Such indemnity will remain in full force and effect regardless of any
investigation made by or on behalf of the Holder Indemnified Parties and will survive the transfer of Registrable Securities by such Holder Indemnified Parties. 
  

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 (b) Indemnification by Holders. In connection with any proposed
registration in which a Holder is participating pursuant to this Agreement, each such Holder will furnish to the Company in writing such information with respect to such Holder as the Company may reasonably request or as may be required by law for
use in connection with any Registration Statement or prospectus or preliminary prospectus to be used in connection with such registration and each Holder, severally and not jointly, will indemnify and hold harmless the Company, any underwriter
retained by the Company and their respective directors, officers, partners, employees, advisors and agents, their respective Affiliates and each Person who controls (within the meaning of the Securities Act or the Exchange Act) any of such Persons
to the same extent as the foregoing indemnity from the Company to the Holders as set forth in Section 1.6(a) (subject to the exceptions set forth in the foregoing indemnity, the proviso to this sentence and applicable law), but only with
respect to any such information furnished in writing by such Holder expressly for use therein and not with respect to any other Holder or the Company; provided, however, that the liability of any Holder under this
Section 1.6(b) will be limited to the amount of the net proceeds received by such Holder in the offering giving rise to such liability. Such indemnity obligation will remain in full force and effect regardless of any investigation made
by or on behalf of the Holder Indemnified Parties (except as provided above) and will survive the transfer of Registrable Securities by such Holder. 
 (c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) will give prompt written notice to the
indemnifying party (the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in
writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, however, that, the failure so to notify the Indemnifying Party will not relieve the Indemnifying Party of
any liability that it may have to the Indemnified Party hereunder unless and to the extent such Indemnifying Party is materially prejudiced by such failure. If notice of commencement of any such action is given to the Indemnifying Party as above
provided, the Indemnifying Party will be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense, with counsel chosen by it and
reasonably satisfactory to such Indemnified Party. The Indemnified Party will have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel will be paid by the
Indemnified Party unless the Indemnifying Party fails to assume the defense of such action with counsel The Indemnifying Party will not have the right to assume the defense of such action on behalf of such Indemnified Party. No Indemnifying Party
will be liable for any settlement entered into without its written consent, which consent will not be unreasonably withheld. No Indemnifying Party will, without the written consent of the Indemnified Party, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (A)

  

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includes an unconditional release of the Indemnified Party from all liability arising out of such action or claim and (B) does not include a statement as to, or an admission of, fault,
culpability or a failure to act by or on behalf of any Indemnified Party. The rights afforded to any Indemnified Party hereunder will be in addition to any rights that such Indemnified Party may have at common law, by separate agreement or
otherwise. 
 (d) Contribution. If the indemnification provided for in this Section 1.6 from
the Indemnifying Party is unavailable or insufficient to hold harmless an Indemnified Party in respect of any Losses referred to herein, then the Indemnifying Party, in lieu of indemnifying the Indemnified Party, will contribute to the amount paid
or payable by the Indemnified Party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and the Indemnified Party, as well as any other relevant equitable considerations. The
relative faults of the Indemnifying Party and Indemnified Party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact, was made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the Indemnifying Party’s and Indemnified Party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such action; provided, however, that the liability of any Holder under this Section 1.6(d) will be limited to the amount of the net proceeds received by such Holder in the offering giving
rise to such liability and the liability of the Company will be limited to an amount as stated in Section 1.6(a). The amount paid or payable by a party as a result of the Losses or other liabilities referred to above will be deemed to
include, subject to the limitations set forth in Sections 1.6(a), 1.8(b) and 1.6(c), any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding. The Parties
agree that it would not be just and equitable if contribution pursuant to this Section 1.6(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to in the foregoing. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution pursuant to this Section 1.6(d). 
 Section 1.7 Rule 144 and Rule 144A; Other Exemptions. With a view to making available to the Holders the benefits of Rule 144
and Rule 144A promulgated under the Securities Act and other rules and regulations of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration, the Company covenants that it will (i) file
in a timely manner all reports and other documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder and (ii) take such further action as each Holder may
reasonably request (including, but not limited to, providing any information necessary to comply with Rule 144 and Rule 144A, if available with respect to resales of the Registrable Securities under the Securities Act), at all times from and after
the date hereof all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the

  

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limitation of the exemptions provided by (x) Rule 144 and Rule 144A (if available with respect to resales of the Registrable Securities) under the Securities Act, as such rules may be
amended from time to time or (y) any other rules or regulations now existing or hereafter adopted by the SEC. 
 Section
1.8 Certain Limitations On Registration Rights. No Holder may participate in any Registration Statement hereunder unless such Holder completes and executes all questionnaires and other documents reasonably required and will sell such
Holder’s Registrable Securities on the basis provided in any underwriting agreement approved by the Holder or Holders entitled hereunder to approve such arrangements. Such Holders of Registrable Securities to be sold by such underwriters may,
at their option, require that any or all of the representations and warranties by, and the other agreements on the part of the Company to and for the benefit of such underwriters, will also be made to and for the benefit of such Holders and that any
or all of the conditions precedent to the obligations of the underwriters under the underwriting agreement be conditions precedent to the obligations of the Holders. 
 ARTICLE II. 
 GENERAL PROVISIONS 
 Section 2.1 Entire Agreement. This Agreement, together with the Schedules hereto and any certificates, documents, instruments
and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the Parties in respect of the subject matter hereof and supersedes all prior understandings, agreements or representations by or among the
Parties, written or oral, to the extent they relate in any way to the subject matter hereof. 
 Section 2.2 Assignment;
Binding Effect. No Party may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the other Party; provided that the rights of a Holder may be transferred or
assigned in connection with a transfer of Registrable Securities to the extent that all of the following additional conditions are satisfied: (a) such transfer or assignment is effected in accordance with applicable securities laws;
(b) such transferee or assignee agrees in writing to become subject to the terms of this Agreement; and (c) the Company is given written notice by such Holder of such transfer or assignment, stating the name and address of the transferee
or assignee and identifying the Registrable Securities with respect to which such rights are being transferred or assigned. All of the terms, agreements, covenants, representations, warranties and conditions of this Agreement are binding upon, and
inure to the benefit of and are enforceable by, the Parties and their respective successors and permitted assigns. 
 Section
2.3 Notices. All notices or other communications to a Party required or permitted hereunder will be in writing and will be delivered personally or by facsimile (receipt confirmed electronically) to such Party (or, in the case of an
entity, to an executive officer of such party) or will be sent by a reputable express delivery service or by certified mail, postage prepaid with return receipt requested, addressed as follows: 
 If to the Purchaser, to the address set forth on Schedule I. 
  

 13 

 If to the Company: 
 DayStar Technologies, Inc. 
 2972 Stender Way 
 Santa Clara, California 
 Attn: Mr. William Steckel 
           Chief Executive Officer 
 with a copy to: 
 Phillips Lytle LLP 
 30 South Pearl Street 
 Albany, New York 12207 
 Attn: Richard E. Honen, Esq. 
 Any party may change the above specified recipient and/or mailing address by notice to all other parties given in the manner herein prescribed. All notices will be deemed given on the day when actually
delivered as provided above (if delivered personally or by facsimile, provided that any such facsimile is received during regular business hours at the recipient’s location) or on the day shown on the return receipt (if delivered by mail or
delivery service). 
 Section 2.4 Specific Performance; Remedies. Each Party agrees that the other Party
would be damaged irreparably if any provision of this Agreement were not performed in accordance with its specific terms or were otherwise breached. Accordingly, the Parties will be entitled to an injunction or injunctions to prevent breaches of the
provisions of this Agreement and to enforce specifically this Agreement and its provisions in any action or proceeding instituted any court of the United States or any state thereof having jurisdiction over the Parties and the matter, in addition to
any other remedy to which they may be entitled, at law or in equity. Except as expressly provided herein, the rights, obligations and remedies created by this Agreement are cumulative and in addition to any other rights, obligations or remedies
otherwise available at law or in equity. Except as expressly provided herein, nothing herein will be considered an election of remedies. 
 Section 2.5 Governing Law; Waiver of Jury Trial. This Agreement will be governed by and construed under the laws of the State of New York, without giving effect to conflicts of laws
principles that would require the application of the laws of any other jurisdiction. THE PARTIES EACH HEREBY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, WAIVE THEIR RESPECTIVE RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF
THIS AGREEMENT OR ANY OTHER AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS. 
 Section
2.6 Headings. The titles and headings to the Sections herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. This Agreement will
be construed without regard to any presumption or other rule requiring construction hereof against the party causing this Agreement to be drafted. 
  

 14 

 Section 2.7 Amendments. This Agreement may not be amended or modified
without the written consent of the Company and at least a majority in interest of the Holders. 
 Section 2.8 Extensions;
Waivers. No waiver by any Party of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation or breach of warranty or
covenant hereunder or affect in any way any rights arising because of any prior or subsequent such occurrence. Neither the failure nor any delay on the part of any party to exercise any right or remedy under this Agreement will operate as a waiver
thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise of the same or of any other right or remedy. 
 Section 2.9 Severability. The provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or
enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied to any party or to any circumstance, is judicially determined not to be enforceable in accordance with its terms, the Parties agree that the
court judicially making such determination may modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its modified form, such provision will then be enforceable
and will be enforced. 
 Section 2.10 Counterparts. This Agreement may be executed in two or more counterparts,
each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
 Section
2.11 Adjustments for Stock Splits, Etc. Wherever in this Agreement there is a reference to a specific number of shares of the Company’s capital stock of any class or series, then, upon the occurrence of any subdivision, combination
or stock dividend of such class or series of stock, the specific number of shares so referenced in this Agreement will automatically be proportionally adjusted to reflect the effect of such subdivision, combination or stock dividend on the
outstanding shares of such class or series of stock. 
 [SIGNATURE PAGE FOLLOWS] 
  

 15 

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

									
	COMPANY:	 		 	DAYSTAR TECHNOLOGIES, INC.
					
		 		 		 	By:	 	\s\ William S. Steckel
		 		 		 	Name:	 	William S. Steckel
		 		 		 	Title:	 	Chief Executive Officer
			
	PURCHASER:	 		 	Tejas Securities Group, Inc. 401k Plan and Trust,
FBO John J. Gorman, John J. Gorman TTEE
					
		 		 		 	By:	 	\s\ John Gorman
		 		 		 	Name:	 	John Gorman
		 		 		 	Title:	 	Trustee

 SCHEDULE I 
 PURCHASER 
 Name, Address and Facsimile Number

 Tejas Securities Group, Inc. 401k Plan and Trust, FBO John J. Gorman, John J. Gorman TTEEWarrant to Purchase

 Exhibit 10.5 
 THIS WARRANT MAY NOT BE TRANSFERRED EXCEPT AS OTHERWISE DESCRIBED BELOW. 
 THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. 
 Warrant No. CSW-1003 
 DAYSTAR TECHNOLOGIES, INC. 
 VOID AFTER 5:00 P.M. PST ON February 10, 2017 
 Warrant to Purchase 1,000,000 Shares 
 of Common Stock Dated February 11, 2010 
 WARRANT FOR THE PURCHASE OF
SHARES OF COMMON STOCK 
 THIS CERTIFIES THAT, FOR VALUE RECEIVED, Tejas Securities Group, Inc. 401K Plan and Trust FBO John J.
Gorman, John J. Gorman TTEE, or its registered assign(s) (the “Holder”), is entitled to purchase from Daystar Technologies, Inc., a Delaware corporation (the “Company”), subject to the terms and conditions set forth
in this Warrant, up to 1,000,000 fully paid and nonassessable shares of common stock (“Common Stock”), of the Company, at any time commencing on the date hereof (the “Commencement Date”) and expiring at 5:00 p.m.
PST, on February 10, 2017 (the “Expiration Date”). The price for each share of Common Stock purchased hereunder (as adjusted as set forth herein, collectively the “Warrant Shares”) is $0.80 per share until
expiration of this Warrant (as adjusted as set forth herein, the “Purchase Price”). 
 The Holder agrees with the Company that
this Warrant is issued, and all the rights hereunder shall be held, subject to all of the conditions, limitations and provisions set forth herein. 
 1. EXERCISE OF WARRANT. 
 A. MANNER OF EXERCISE. Except as set forth in Section 1(D), this Warrant
may be exercised in whole at any time, or in part from time to time, during the period commencing on the sixth month anniversary of the Commencement Date and expiring on the Expiration Date or, if any such day is a day on which banking institutions
in the City of San Francisco, California, are authorized by law to close, then on the next succeeding day that shall

 
not be such a day, by presentation and surrender of this Warrant to the Company at its principal office with the Purchase Form attached as Annex I (the “Purchase Form”)
duly executed and accompanied by payment (either in cash or by certified or official bank check, payable to the order of the Company) of the Purchase Price for the number of shares specified in the Purchase Form and instruments of transfer, if
appropriate, duly executed by the Holder or its duly authorized attorney. This Warrant may also be exercised on a cashless basis according to the following: [the fair market value of the warrant – exercise price] ÷ closing price per
share on the market close on the last trading day prior to the exercise date. 
 B. STATUS AS HOLDER OF WARRANT SHARES;
TAXES; EXPIRATION. Upon receipt by the Company of this Warrant, the duly executed Purchase Form and any other appropriate instruments of transfer, together with the Purchase Price, at its office, the Holder shall be deemed to be the holder of
record of the Warrant Shares issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder. The
Company shall pay any and all documentary stamp or similar issue taxes payable in respect of the issue or delivery of Warrant Shares. This Warrant shall become void, and all rights hereunder shall cease, at the close of business on the Expiration
Date. The Company in its sole discretion may extend the duration of this Warrant by delaying the Expiration Date. 
 C.
ISSUANCE OF CERTIFICATES. As soon as practicable after the exercise of all or any portion of this Warrant, the Company shall, within three (3) Trading Days (defined below), (i) issue to the Holder a certificate or certificates for
the number of full Warrant Shares to which the Holder is entitled, or, at the Holder’s request, deliver such Warrant Shares electronically if such means is otherwise presently available to and utilized by the Company, registered in such name or
names as may be directed by the Holder, and (ii) if this Warrant has not been exercised in full, issue to the Holder a new countersigned warrant in substantially the same form for the Warrant Shares as to which this Warrant shall not have been
exercised. This Warrant may not be exercised by, or securities issued to, any Holder in any state in which such exercise would be unlawful. 
 D. SHAREHOLDER APPROVAL. The Company represents and warrants that: (i) such exercise does not require the Company to obtain prior stockholder approval, or (ii) stockholders have
pre-approved the issuance of shares of Common Stock to Holder upon exercise of this Warrant. 
 2. RESERVATION OF SHARES. The Company
will at all times reserve for issuance and delivery upon exercise of this Warrant all Warrant Shares or other shares of capital stock of the Company (and other securities and property) from time to time receivable upon exercise of this Warrant. All
such shares (and other securities and property) shall be duly authorized and, when issued upon such exercise, shall be validly issued, fully paid and nonassessable and free of all preemptive rights. 
  

 - 2 - 

 3. NO FRACTIONAL SHARES. No fractional shares or scrip representing fractional shares shall be issued
upon the exercise of this Warrant. If the holder of this Warrant would be entitled, upon the exercise of this Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, purchase such fractional interest, determined
as follows: 
  

	 	(a)	If the Common Stock is listed on a national securities exchange (which includes the Nasdaq Capital Market) or admitted to unlisted trading privileges on such exchange
or listed for trading on the OTC Bulletin Board, the current value shall be the last reported sale price of the Common Stock on such exchange on the last business day prior to the date of exercise of this Warrant or if no such sale is made on such
day, the average of the closing bid and asked prices for such day on such exchange; or 

  

	 	(b)	If the Common Stock is not listed or admitted to unlisted trading privileges, the current value shall be the mean of the last reported bid and asked prices reported by
the National Quotation Bureau, Inc. on the last business day prior to the date of the exercise of this Warrant; or 

  

	 	(c)	If the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the current value shall be an amount
determined (i) in good faith by the Board of Directors of the Company and certified in a Board resolution, based on the most recently completed arm’s-length transaction between the issuer of such security and a Person other than an
affiliate of such person, the closing of which occurred on such date or within the six-month period preceding such date, or (ii) if no such transaction has occurred on such date or within such six-month period, the value of the security as
determined by an independent financial expert. 

 4. STOCK DIVIDENDS; SPLIT-UPS. If after the issuance of this Warrant, and
subject to the provisions herein the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or other similar event, then, on the effective day
thereof, the number of Warrant Shares shall be increased in proportion to such increase in outstanding shares and the then applicable Purchase Price shall be correspondingly decreased. 
 5. AGGREGATION OF SHARES. If after the date hereof, and subject to the provisions herein, the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse
stock split, or reclassification of shares of Common Stock or other similar event, then, after the effective date of such consolidation, combination or reclassification, the number of Warrant Shares shall be decreased in proportion to such decrease
in outstanding shares and the then applicable Purchase Price shall be correspondingly increased. 
 6. REORGANIZATION, ETC. If after the
date hereof any capital reorganization or reclassification of the Common Stock, or consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its assets to another corporation or other similar event
shall be effected, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, lawful and fair provision shall be made whereby the registered holders shall thereafter have the right to purchase and receive, upon the
basis and upon the terms and conditions specified in this Warrant and in lieu of the securities of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such shares of stock, securities or
assets as may be issued or payable with respect to or in exchange for the number of outstanding shares of such Common Stock equal to the number of shares of

  

 - 3 - 

 
Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant, had such reorganization, reclassification, consolidation, merger, or
sale not taken place and in such event appropriate provision shall be made with respect to the rights and interests of the registered holders to the end that the provisions hereof (including, without limitation, provisions for adjustments of the
Purchase Price and the Warrant Shares) shall thereafter be applicable, as nearly as may be in relation to any share of stock, securities or assets thereafter deliverable upon the exercise hereof. The Company shall not effect any such consolidation,
merger or sale unless prior to the consummation thereof the successor corporation (if other than the Company) resulting from such consolidation or merger, or the corporation purchasing such assets, shall assume by written instrument executed and
delivered to the Company the obligation to deliver to the registered holders such shares of stock, securities or assets as, in accordance with the foregoing provisions, such holders may be entitled to purchase. 
 7. FORM OF WARRANT. This Warrant need not be changed because of any adjustment pursuant to the terms herein, and any form of warrant issued after
such adjustment may state the same Purchase Price and the same number of shares as is stated in this Warrant. However, the Company may at any time in its sole discretion make any change in the form of this Warrant that the Company may deem
appropriate and that does not affect the substance thereof, and any warrant thereafter issued, whether in exchange or substitution for this Warrant or otherwise, may be in the form as so changed. The Company agrees to notify the Holder of any
adjustment to the number of shares or Purchase Price of the Warrant, any changes to the form of this Warrant or any other change pursuant to the terms herein. 
 8. TRANSFER OF WARRANTS. This Warrant and the Warrant Shares have not been registered under the 1933 Act or similar state laws. This Warrant and Warrant Shares cannot be sold or transferred by an
investor unless (i) they are so registered or (ii) an exemption from registration is available at the time of transfer and, if requested by the Company, an opinion of counsel satisfactory to the Company to the effect that such registration
is not required is delivered to the Company. Subject to the foregoing limitations, the Company shall register the transfer, from time to time, of this Warrant upon the Company’s warrant register, upon surrender of this Warrant for transfer,
accompanied by a duly executed Assignment Form in the form attached as Annex II, with signatures properly guaranteed as indicated. Upon any such transfer, a new warrant or warrants representing the aggregate number of this Warrant shall be
issued and this Warrant shall be cancelled by the Company. 
 A restrictive legend shall be placed upon each share certificate acquired upon
exercise of this Warrant in substantially the following form: 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AMENDED, OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION
THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
SECURITIES ACT. 
  

 - 4 - 

 The foregoing legend will be removed from the certificates representing any Warrant Shares, at the request
of the holder thereof, at such time as they become the subject of an effective resale registration statement or they become eligible for resale pursuant to Rule 144 under the 1933 Act. 
 9. NO RIGHTS AS STOCKHOLDERS. Prior to the exercise of this Warrant in accordance with the terms hereof and payment of the full exercise price
therefor, the Holder will not be entitled to any rights by virtue hereof as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends or other distributions, to exercise any preemptive rights, to consent
or to receive notice as stockholders of the Company in respect to the meetings of stockholders or the election of directors of the Company or any other matter. 
 10. LOST, STOLEN, MUTILATED OR DESTROYED WARRANTS. If this Warrant is lost, stolen, mutilated, or destroyed, the Company may on such terms as to indemnity or otherwise as it may in its discretion
impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new warrant of like denomination, tenor, and date. Any such new warrant shall constitute a substitute contractual obligation of the Company, whether or
not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone. 
 11. GOVERNING LAW. This
Warrant shall be governed by and construed in accordance with the laws of New York State without giving effect to conflicts of laws principles that would require the application of the law of another jurisdiction. 
 12. NOTICES OF CERTAIN ACTIONS. In the event: 
  

	 	(a)	the Company sets a record date with respect to the holders of Common Stock for the purpose of entitling or enabling them to receive any dividend or other distribution,
or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; 

  

	 	(b)	the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or other
similar event; 

  

	 	(c)	the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split, or reclassification of shares of Common Stock or
other similar event; 

  

	 	(d)	of any capital reorganization or reclassification of the Common Stock, or consolidation or merger of the Company with another corporation, or the sale of all or
substantially all of its assets to another corporation or other similar event; 

  

 - 5 - 

	 	(e)	of the voluntary or involuntary dissolution, liquidation or winding-up of the Company; 

  

	 	(f)	the bankruptcy whether voluntary or involuntary of the Company; 

 then, and in each such case, the Company will provide written notice (an “Event Notice”) to the Holder at least ten days prior to (i) the record date in the case of (a) above,
specifying the record date and the amount and character of such dividend, distribution or right, and (ii) the effective date of any event specified in clause (b), (c), (d), (e), of (f) above, specifying the effective date on which such
event is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock will be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such event, if applicable. Any
failure to mail an Event Notice required by this Section 12 or any defect therein or in the mailing thereof will not affect the validity of the corporate action required to be specified in such Event Notice. Nothing herein shall prohibit the
Holder from exercising this Warrant during the ten day period commencing on the date of an Event Notice, provided that such exercise occurs prior to the Expiration Date and the Holder otherwise complies with the terms hereof. 
 13. DELIVERY OF NOTICE. Notices and other communications to be given to the Holder of this Warrant evidenced by this certificate shall be deemed to
have been sufficiently given, if delivered or mailed, addressed in the name and at the address of such owner appearing on the records of the Company, and if mailed, sent registered or certified mail, postage prepaid. Notices or other communications
to the Company shall be deemed to have been sufficiently given if delivered by hand or mailed, by registered or certified mail, postage prepaid, to the Company at 2972 Stender Way, Santa Clara, California 95054, Attn: Mr. William S.
Steckel, Chief Executive Officer, or at such other address as the Company shall have designated by written notice to the registered owner as herein provided. Notice by mail shall be deemed given when deposited in the United States mail as herein
provided. 
 [Remainder of page intentionally left blank] 
  

 - 6 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, manually or in
facsimile, by the undersigned thereunto duly authorized, as of the date first written above. 
  

					
	DAYSTAR TECHNOLOGIES, INC.
		
	By:	 	\s\ William S. Steckel
		 	Name:	 	William S. Steckel
		 	Title:	 	Chief Executive Officer

 [SIGNATURE
PAGE TO WARRANT] 

 ANNEX I 
 TO COMMON STOCK PURCHASE WARRANT 
 PURCHASE FORM 
  

			
	 To:                            
	  	Dated:                    

 The undersigned, pursuant to the provisions set forth in the attached Warrant
(No.         ) (the “Warrant”), hereby irrevocably elects to purchase
                     shares of the Common Stock covered by such Warrant. 
 The undersigned herewith makes payment of the full exercise price for such shares at the price per share provided for in such Warrant, which
is $                 in lawful money of the United States. 
 IF PAYMENT FOR ANY OF THE SHARES TO BE ISSUED HEREUNDER IS PURSUANT TO THE CASHLESS EXERCISE PROVISION IN SECTION 1(B) OF THE WARRANT, PLEASE PROVIDE THE FOLLOWING INFORMATION: 
 Number of Warrant Shares to be purchased under this Warrant:
                                 
 Closing Price per share of Common Stock on the Trading Day before this Purchase Form and the Warrant are surrendered:
$                         as of
                                    , 20__* 
 Number of shares of Common Stock to be issued to the undersigned pursuant to the purchase described herein based upon the calculation in
Section 1(B) of the Warrant:                                * 
  

	*	Note: The undersigned understands that this information is provided by the undersigned solely for informational purposes, and that it is not binding on the Company for
any purpose. The terms of the Warrant, and not this Purchase Form, will govern the calculation of these items and the actual number of shares of Common Stock to be received by the undersigned pursuant to the purchase of shares of Common Stock
hereunder. 

 Capitalized terms used but not defined herein have the meaning assigned to such terms in the
Warrant. 
  

			
	 [Name]
  
	 	 
	Name:	 	 
	Title:	 	 
	Address:	 	 

 [ANNEX I TO WARRANT]

 ANNEX II 
 TO COMMON STOCK PURCHASE WARRANT 
 ASSIGNMENT FORM 
 FOR VALUE RECEIVED,
                                         
                                         
                                       hereby sells,
assigns and transfers all of the rights of the undersigned under the attached Warrant (No.         ) with respect to the number of shares of Common Stock covered thereby set forth below, unto:

  

					
	 Name of Assignee
	  	 Address
	  	 No. of Shares

		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

 Dated:                                    

  

	
	[Name]
	
	  
	Name:
	Title:

  
 Signature Guaranteed: 

			
		
	By:	 	 

 The signature should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. 
 [ANNEX II TO WARRANT]

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