Document:

EX-10.01

THE HARTFORD DEFERRED STOCK UNIT PLAN

ARTICLE I

CREATION AND PURPOSE

1.1 Creation of the Plan. The Plan is created effective July 31, 2009, as authorized by
the Committee.

1.2 Purpose of the Plan. The purpose of the Plan is to provide compensation, the amount
of which is determined by reference to the value of the Stock, in an amount that the Company
determines to be appropriate to attract and retain Employees of superior ability. The Plan is
structured consistent with the limitations and restrictions on employee compensation arrangements
imposed by the Emergency Economic Stabilization Act of 2008 and the TARP Standards for Compensation
and Corporate Governance Interim Final Rule issued by the U.S. Department of the Treasury on June
10, 2009. The purpose of the Plan shall be effected through awards representing the contractual
right to receive cash payments based on the value of a specified number of shares of Stock (the
“Units”).

ARTICLE II

DEFINITIONS

“Account” means an account maintained on behalf of a Participant on the books of the
Company in accordance with the terms hereof.

“Award Date” means the date designated by the Committee for the award of Restricted
Units pursuant to the Plan.

“Beneficiary” means the beneficiary or beneficiaries designated pursuant to the Plan to
receive the amount, if any, payable under the Plan upon the death of an award recipient.

“Board” means the Board of Directors of the Company.

“Change of Control” shall have the meaning assigned by the Incentive Stock Plan.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Compensation and Personnel Committee of the Board, or such other
Committee as the Board may designate to administer the Plan.

“Company” means The Hartford Financial Services Group, Inc. and its successors and assigns.

“Deferred Units” shall have the meaning assigned by Article III of the Plan.

“Dividend Equivalents” means an amount credited with respect to an outstanding Unit equal
to the cash dividends paid or property distributions awarded upon one share of Stock.

“Employee” means a person regularly employed by a Participating Company, but shall not
include any person who performs services for a Participating Company as an independent contractor
or under any other non-employee classification, or who is classified by a Participating Company as,
or determined by a Participating Company to be, an independent contractor.

“EESA” means the Emergency Economic Stabilization Act of 2008, as amended by the American
Recovery and Reinvestment Act of 2009, and as it may be further amended, and rules and other
guidance promulgated by the U.S. Department of the Treasury thereunder.

“Fair Market Value” shall have the meaning assigned by the Incentive Stock Plan.

“Grant Date” shall have the meaning assigned by Article III of the Plan.

“Incentive Stock Plan” means The Hartford 2005 Incentive Stock Plan, as amended from time
to time, and any successor plan thereto.

“Normal Vesting Date” means the third anniversary of the Award Date, or such other date
that the Committee, or the Chairman and Chief Executive Officer or the Executive Vice President,
Human Resources with respect to awards to Employees other than Tier 1 and Tier 2 Employees, may
designate with respect to any particular award of Restricted Units.

“Participant” means an Employee who receives an award of Units pursuant to Article III or
IV of the Plan.

“Participating Company” shall have the meaning assigned by the Incentive Stock Plan.

“Plan” means this The Hartford Deferred Stock Unit Plan, as it may be amended from time to
time.

“Restricted Units” shall have the meaning assigned by Article IV of the Plan.

“Retirement” shall have the meaning assigned by the Incentive Stock Plan.

“Stock” shall have the meaning assigned by the Incentive Stock Plan.

“Subsequent Guidance” means rules and other guidance under EESA issued after the Plan’s
adoption.

“Terminated for Cause” shall mean a termination of employment for any of the following
reasons: (i) conviction of or entering a plea of guilty or nolo contendere to a felony, a
crime of moral turpitude, dishonesty, breach of trust or unethical business conduct, or any crime
involving the business of the Company or its affiliates; (ii) in the performance of duties or
otherwise to the detriment of the Company or its affiliates, engaging in (A) willful misconduct,
(B) willful or gross neglect, (C) fraud, (D) misappropriation, (E) embezzlement, or (F) theft;
(iii) willfully failing to adhere to the policies and practices of the Company or to devote
substantially all business time and effort to the affairs thereof, or disobeying the directions of
management to do either of the foregoing, (iv) being adjudicated in any civil suit to have
committed, or acknowledging in writing or in any agreement or stipulation the commission of, any
theft, embezzlement, fraud or other intentional act of dishonesty involving any other person; or
(v) willfully violating the Code of Ethics and Business Conduct of the Company.

“The Hartford” shall mean the Company and its subsidiaries, and their successors and
assigns.

“Total Disability” shall have the meaning assigned by the Incentive Stock Plan.

“Units” shall have the meaning assigned by Article I of the Plan.

ARTICLE III

DEFERRED UNITS

3.1 Award of Deferred Units. The Committee may, in its discretion, award to an Employee
contractual rights to receive in accordance with the Plan cash equal to the value of a number of
whole and/or fractional shares of Stock (the “Deferred Units”) determined in accordance with this
Section 3.1. With respect to each Employee to whom Deferred Units will be granted, the Committee
shall establish a dollar amount to be provided in Deferred Units in respect of services performed
in each regular pay period. Deferred Units shall be earned ratably over a year (or such portion
thereof as shall be specified by the Committee), based on the number of regular pay periods
occurring during such year (or specified period). The sum of the amounts earned in respect of each
payroll period shall be applied on a quarterly basis (or more frequently if so required by
Subsequent Guidance) to determine the number of Deferred Units to be credited to the Participant’s
Account, by dividing such accumulated sum of payroll credits for the preceding calendar quarter (or
shorter period if required by Subsequent Guidance) by the Fair Market Value of the Stock on the
second business day following the filing of the Company’s periodic reports on SEC Form 10-Q or
10-K applicable to or filed immediately following the calendar quarter in which the amounts are
earned (each, a “Grant Date”). Should Subsequent Guidance require that Deferred Units be credited
more frequently than on a quarterly basis, the Committee shall determine the applicable Grant Date,
and the formula set forth in the immediately preceding sentence shall be applied using the Fair
Market Value of the Stock on such Grant Date. Deferred Units will be credited as of a Grant Date
in respect of any earned pay credits regardless of whether the Participant’s employment shall have
terminated as of the applicable Grant Date.

3.2 Crediting of Deferred Units to Account. The number of whole and/or fractional
Deferred Units awarded to a Participant pursuant to this Article III as of each applicable Grant
Date shall be credited to the Participant’s Account as of such date.

3.3 Vesting of Deferred Units. The rights of a Participant with respect to any Deferred
Units credited to his or her Account shall be fully vested and nonforfeitable at all times. To the
extent provided in Article VI, a Participant shall become entitled to receive cash corresponding to
any Deferred Units credited to the Participant’s Account on the applicable date identified in
Article VI. Notwithstanding the above, the Deferred Units credited to a Participant’s Account
shall be forfeited should the Participant be Terminated for Cause, to the extent permitted by EESA
and other applicable state and federal law.

ARTICLE IV

RESTRICTED UNITS

4.1 Award of Restricted Units. Except as provided below, as of the Award Date, the
Committee may, in its discretion, award to an Employee contractual rights to receive in accordance
with the Plan cash equal to the value of a number of whole and/or fractional shares of Stock (the
“Restricted Units”). Unlike Deferred Units, Restricted Units are intended to be incentive
compensation that vests over time (which is provided in accordance with applicable exceptions under
EESA), and consequently are subject to a substantial risk of forfeiture (as defined in regulations
under Section 83 of the Code) in the manner specified below.

4.2 Crediting of Restricted Units to Account. The number of whole and/or fractional
Restricted Units awarded to a Participant pursuant to this Article IV as of the Award Date shall be
credited to the Participant’s Account as of such date.

4.3 Vesting of Restricted Units. Except as otherwise provided in the Plan, a
Participant’s rights with respect to Restricted Units shall vest on the Normal Vesting Date,
although a Participant’s right to payment of such Restricted Units, even if vested, shall be
restricted or postponed to the extent required by EESA or specified by the Committee. To the
extent provided in Article VI, the Participant shall become entitled to receive cash corresponding
to such vested Restricted Units credited to the Participant’s Account on the applicable date
identified in Article VI.

A. Termination of Employment. In the event of a Participant’s termination of
employment with all Participating Companies prior to the Normal Vesting Date (i) due to
death or (ii) due to Total Disability, the Restricted Units credited to the Participant’s
Account as of the date of such termination shall, unless otherwise provided at the time of
award, become immediately vested and nonforfeitable. In the event of a Participant’s
termination of employment with all Participating Companies for any other reason, any
Restricted Units credited to the Participant’s Account that have not become vested on or
before the date of such termination shall be forfeited, unless and solely to the extent that
the Committee determines otherwise in its sole discretion and in accordance with the
applicable provisions of EESA, provided however that, unless otherwise provided by the
Committee or prohibited by EESA, Restricted Units shall, in the event of a Participant’s
Retirement, be vested pro rata in the same manner as restricted units under the Incentive
Stock Plan. A Participant shall be deemed to have terminated employment for purposes of
this Plan at the same time as the Participant is deemed to have terminated employment for
purposes of the Incentive Stock Plan. Restricted Units forfeited by a Participant pursuant
to this Section immediately shall be deducted from the Participant’s Account.
Notwithstanding the above, the Restricted Units credited to a Participant’s Account shall be
forfeited should the Participant be Terminated for Cause, to the extent permitted by EESA
and other applicable state and federal law.

ARTICLE V

DIVIDEND EQUIVALENTS

5.1 Dividend Equivalents on Deferred Units. As soon as practicable after any dividend is
paid on the Stock, a Participant’s Account shall be credited with additional Deferred Units. All
Dividend Equivalents payable in respect of Deferred Units shall be deemed reinvested in that number
of Deferred Units determined based on the Fair Market Value on the date the corresponding dividend
on the Stock is payable to stockholders.

5.2 Dividend Equivalents on Restricted Units. As soon as practicable after any dividend
is paid on the Stock, a Participant’s Account shall be credited with additional Restricted Units.
All Dividend Equivalents payable in respect of Restricted Units shall be deemed reinvested in that
number of Restricted Units determined based on the Fair Market Value on the date the corresponding
dividend on the Stock is payable to stockholders.

5.3 Treatment of Units Credited in respect of Dividend Equivalents. Any additional Units
credited to the Account of a Participant pursuant to this Article V shall, as of the date so
credited, be treated for all purposes of this Plan (including, without limitation, the provisions
hereof pertaining to the distribution of amounts from the Participant’s Account, the crediting of
future Dividend Equivalents and the vesting of Restricted Units) as though part of the grant of the
Deferred Units granted on the Grant Date and the award of Restricted Units awarded on the Award
Date, respectively, in relation to which such additional Units were credited.

5.4 Non-Cash Dividends. In the event that a stock dividend is paid on the Company’s
Stock, the appropriate Dividend Equivalent for purposes of this Article V shall be determined in
accordance with Section 8.3 hereof.

ARTICLE VI

RECEIPT OF CASH IN RESPECT OF UNITS

6.1 Deferred Units – General Rule. Except as otherwise provided herein, with respect to
Deferred Units attributable to services performed by a Participant prior to January 1, 2010 (other
than by an Employee who is hired, on or after October 1, 2009, as a Senior Executive Officer as
defined in EESA), as soon as practicable after, and in any event within 90 days after, the second
anniversary of a Grant Date (or, in the event that Grant Dates are more frequent than quarterly,
the second anniversary of the end of the calendar quarter during which the Grant Date occurs), the
Company shall pay to a Participant cash in an amount equal to the Fair Market Value on such second
anniversary of the number of full and fractional shares of Stock attributable to the number of
Deferred Units credited to the Participant’s Account as of such Grant Date(s).

Except as otherwise provided herein, with respect to (i) Deferred Units attributable to services
performed by an Employee who is hired, on or after October 1, 2009, as a Senior Executive Officer
as defined under EESA, and (ii) Deferred Units attributable to services performed by any
Participant on or after January 1, 2010, payments in respect of Deferred Units credited to such
Participant as of any Grant Date shall be payable as follows:

	•	 	as soon as practicable after, and in any event within 90 days after, the first anniversary
of such Grant Date (or, in the event that Grant Dates are more frequent that quarterly, the
first anniversary of the end of the calendar quarter during which the Grant Date occurs), the
Company shall pay to the Participant cash in an amount equal to the Fair Market Value on such
first anniversary of 1/3 of the number of full and fractional shares of Stock attributable to
the number of Deferred Units credited to the Participant’s Account as of such Grant Date(s);

	•	 	as soon as practicable after, and in any event within 90 days after, the second anniversary
of such Grant Date (or, in the event that Grant Dates are more frequent that quarterly, the
second anniversary of the end of the calendar quarter during which the Grant Date occurs), the
Company shall pay to the Participant cash in an amount equal to the Fair Market Value on such
second anniversary of a second 1/3 of the number of full and fractional shares of Stock
attributable to the number of Deferred Units credited to the Participant’s Account as of such
Grant Date(s); and

	•	 	as soon as practicable after, and in any event within 90 days after, the third anniversary
of such Grant Date (or, in the event that Grant Dates are more frequent that quarterly, the
third anniversary of the end of the calendar quarter during which the Grant Date occurs), the
Company shall pay to the Participant cash in an amount equal to the Fair Market Value on such
third anniversary of the final 1/3 of the number of full and fractional shares of Stock
attributable to the number of Deferred Units credited to the Participant’s Account as of such
Grant Date(s).

6.2 Restricted Units – General Rule. As soon as practicable after, and in any event
within 90 days after, the latest to occur of (i) the date that Restricted Units vest in accordance
with Section 4.3, (ii) the date the value of such Restricted Units can be paid in accordance with
applicable restrictions under EESA, or (iii) such later date as may be specified by the Committee
at the time of award (the “Valuation Date”), the Company shall pay to a Participant cash in an
amount equal to the Fair Market Value on the Valuation Date of the number of full and fractional
shares of Stock corresponding to the number of Restricted Units credited to the Participant’s
Account that have become vested or payable as of such Valuation Date.

6.3 Death or Total Disability. To the extent permitted under EESA and regulations
promulgated under Section 409A of the Code, should a Participant die or become Totally Disabled
prior to distribution of the Participant’s Units in accordance with Section 6.1or 6.2, distribution
shall be made as soon as practicable after, and in any event within 90 days after, the date of
death or Total Disability. In such case the Company shall pay to such Participant (or the
Participant’s Beneficiary in the event of the Participant’s death) cash equal to the Fair Market
Value of a number of full and fractional shares of Stock corresponding to the number of Deferred
Units and Restricted Units credited to the Participant’s Account, based on the Fair Market Value on
the date of death or Total Disability, as applicable. If such earlier payment is not permitted by
EESA or regulations promulgated under Section 409A of the Code, payment in respect of such
Participant’s Units shall be made in accordance with the provisions of Section 6.1 or 6.2.as
applicable.

6.4 Change of Control. Notwithstanding anything herein to the contrary, upon the
occurrence of a Change of Control, any Restricted Units then credited to each Participant’s Account
shall immediately become fully vested, provided that such vesting is then permitted by EESA. If
the Change of Control also constitutes a “change in control” as defined in regulations promulgated
under Section 409A of the Code, the Company shall pay to Participants cash in an amount equal to
the Fair Market Value on the date of the Change of Control of the number of full and fractional
shares of Stock corresponding to the number of Units then credited to the Participant’s Account,
such payment to be made within 30 days following the Change of Control, to the extent that such
distribution is permitted by EESA. Should payment not be made with respect to any Units upon the
occurrence of a Change of Control in accordance with the preceding sentence, the Committee shall,
in its discretion, provide that Accounts will continue to be valued either (i) in relation to
Stock, or (ii) in relation to such other notional investment as the Committee may deem appropriate,
including, without limitation, equity of an acquiring company or a fixed income investment.
Nothing in the preceding sentence shall preclude the Committee from providing Participants with a
choice of notional investments to determine the value of the Participant’s Account.

ARTICLE VII

ADMINISTRATION

7.1 Administration by Committee. Except as otherwise delegated by the Committee, this
Plan shall be administered by the Committee.

(A) All decisions, determinations or actions of the Committee made or taken pursuant to grants
of authority under the Plan shall be made or taken in the sole discretion of the Committee and
shall be final, conclusive and binding on all persons for all purposes.

(B) The Committee shall have full power, discretion and authority to interpret, construe and
administer the Plan and any part thereof, and its interpretations and constructions thereof and
actions taken thereunder shall be, except as otherwise determined by the Board, final, conclusive
and binding on all persons for all purposes.

(C) The Committee’s decisions and determinations under the Plan need not be uniform and may be
made selectively among Employees, whether or not such Employees are similarly situated.

(D) The Committee may, in its sole discretion, delegate such of its powers as it deems
appropriate to the Executive Vice President, Human Resources (or other person holding a similar
position) or the Chairman and Chief Executive Officer, except that awards to Tier 1 and Tier 2
Employees shall be made, and matters related thereto shall be determined, solely by the Committee
or the Board or any other appropriate committee of the Board. Either of the Chairman and Chief
Executive Officer or the Executive Vice President, Human Resources may make awards to Employees
other than Tier 1 and Tier 2 Employees.

7.2 Applicability of EESA Restrictions. In the event of a conflict between the terms of
this Plan and the requirements of EESA, the EESA requirements shall control. All amounts payable
under the Plan and the number of Units credited under the Plan shall be adjusted if and to the
extent required to comply with EESA.

ARTICLE VIII

MISCELLANEOUS

8.1 Tax Withholding. The Committee or the Executive Vice President, Human Resources (or
other person holding a similar position) shall have the right to make such provisions as deemed
appropriate in its sole discretion to satisfy any obligation of a Participating Company to withhold
federal, state or local income or other taxes incurred by reason of the operation of the Plan or an
award under the Plan, including crediting Units under the Plan net of any taxes then due.

8.2 No Employment Rights. The Plan shall not, directly or indirectly, create in any
Participant any right with respect to continuation of employment with any of the Participating
Companies or to the receipt of any bonus or other compensation. The Plan shall not interfere in
any way with the rights of the applicable Participating Company to terminate, or otherwise modify,
the employment of any Participant or its bonus or other compensation policies at any time.

8.3 Adjustments for Corporate Transactions. Upon the occurrence of an event described in
Section 13 of the Incentive Stock Plan, the Committee shall adjust the number of Units credited to
the Account of a Participant in accordance with the terms of that Section.

8.4 Delivery of Account in the Event of Death. In the event of the death of a
Participant, payment in respect of the Participant’s Account shall be made to such Beneficiary or
Beneficiaries as are properly designated by the Participant for purposes of this Plan. If no such
designation is in effect at the time of the Participant’s death, or if no designated Beneficiary
survives the Participant or if any Beneficiary designation conflicts with applicable law, such cash
shall be paid to the Participant’s estate. If the Committee is in doubt as to the right of any
person to receive such amount, the Company may retain such amount, without liability for any
interest thereon, until the Committee determines the rights thereto, or the Company may pay such
amount into any court of appropriate jurisdiction and such payment shall be a complete discharge of
the liability of the Company therefore.

8.5 Rights Not Transferable. The rights of a Participant under the Plan shall not be
sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of, other than by will,
or by the laws of descent or distribution. The foregoing restriction shall be in addition to any
restrictions imposed by applicable law on a Participant’s ability to dispose of Units awarded under
the Plan.

8.6 Effect of Plan. The provisions of the Plan shall be binding upon all successors and
assigns of a Participant, including without limitation the Participant’s estate and the executors,
administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or
representative of creditors of the Participant.

8.7 Use of Funds and Assets. All funds and assets received or held by the Company
pursuant to or in connection with the Plan may be used by the Company for any corporate purpose,
and the Company shall not be obligated to segregate such amounts from its general assets. The
Company may, in its sole discretion, establish a trust or other entity to aid in meeting its
obligations under the Plan.

8.8 Amendment and Termination of the Plan. The Committee may amend or terminate this Plan
at any time in its sole discretion; provided that, in the event of a Change of Control, no
amendment or termination thereafter shall impair or reduce the rights of any person with respect to
any award made under the Plan. Notwithstanding any other provision of the Plan to the contrary,
the Board or the Committee may amend the Plan or an award document to take effect retroactively or
otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an award
document to EESA or to any other present or future law relating to plans of this or similar nature
and the administrative regulations and rulings promulgated thereunder (including, but not limited
to, amendments deemed necessary or advisable to avoid payments being subject to additional tax
under Code Section 409A).

8.9 Governing Law. The laws of the State of Connecticut shall govern all matters
relating to the Plan, except to the extent such laws are superseded by the laws of the United
States.

8.10 Severability of Provisions. If any provision of the Plan shall be held invalid or
unenforceable,

such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan
shall be construed and enforced as if such invalid or unenforceable provisions had not been
included herein.exhibit_4-6.htm

Exhibit 4.6

 

 

COMMON STOCK PURCHASE WARRANT

AKEENA SOLAR, INC.

 

Warrant Shares:          

 

Initial Exercise Date:        , 2009

 

Original Issue Date:      , 2009

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the three year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Akeena Solar, Inc., a Delaware corporation (the “Company”),
up to ______________ shares (the “Warrant Shares”) of Common Stock  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.                      Definitions.  Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated October ___, 2009, among the Company and the purchasers signatory thereto.

 

Section 2.                      Exercise.

 

a) Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto; and, within three (3) Trading Days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate
Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank or, if available, pursuant to the cashless exercise procedure specified in Section 2(c) below.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records
showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise Form within 1 Business Day of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for
purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b) Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be as set forth on Annex
A attached hereto, subject to adjustment hereunder (the “Exercise Price”).

 

c) Cashless Exercise.  If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available
for the issuance of the Warrant Shares to the Holder and all of the Warrant Shares are not then registered for resale by Holder into the market at market prices from time to time on an effective registration statement for use on a continuous basis (or the prospectus contained therein is not available for use), then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of
Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time), (b)  if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the
Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

 

 

 

d) Mechanics of Exercise.

 

i. Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder by crediting
the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is then a participant in such system and either (A) there is an effective Registration Statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery
to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise Form, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”).  This Warrant shall be deemed
to have been exercised on the first date on which all of the foregoing have been delivered to the Company.  The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any,
pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day
(increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such certificates are delivered or Holder rescinds such exercise.

 

ii. Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender
of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii. Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant
Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then, the Holder will have the right to rescind such exercise.

 

iv. Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise.  In addition to any other rights available to the Holder, if the Company
fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such
exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which
the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.  Notwithstanding anything contained herein to the contrary, if the Company is required to make payment in respect of
a Buy-In for the failure to timely deliver certificates hereunder and, if the Company has previously paid such Holder liquidated damages under Section 2(d)(i) in respect of the certificates resulting in such Buy-In prior to such Buy-In, such amounts paid under Section 2(d)(i) shall be deducted from the amount to be paid in respect of such certificates pursuant to this Section 2(d)(iv)).

 

v. No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As
to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi. Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this
Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 

vii. Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant
to the terms hereof.

 

 

 

 

e) Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion
of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock
beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the
Company (including, without limitation, any other  Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that
the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.   To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall
be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.   In addition, a determination
as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement
by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon not less than 61 days’ prior written
notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.  Any such increase or decrease will not be effective until the 61st day
after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Warrant.

 

Section 3.                      Certain Adjustments.

 

a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions
on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common
Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise
Price of this Warrant shall remain unchanged.  Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

 

 

 

b) Fundamental Transaction.  If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares
for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common
Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this
Warrant).  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders
of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  Notwithstanding anything to the contrary in this Warrant, in the event of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the
Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a national securities exchange, including, but not limited to, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an
amount of cash equal to the product obtained by multiplying (A-B) by (X), where:

 

	
(A)  
	
 = the VWAP on the last Trading Day immediately preceding the date of the consummation of the Fundamental Transaction;

	
(B)  
	
 = the Exercise Price of this Warrant, as adjusted hereunder; and

 

	
(X)  
	
 = the number of Warrant Shares that would be issuable upon exercise in full of this Warrant in accordance with the terms of this Warrant.

 

The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance
with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Warrant, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares
of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares
of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant
and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

 

 

 

c) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section
3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

d) Notice to Holder.

 

i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

ii. Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of
the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it
is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  The Holder shall remain entitled to exercise this Warrant during
the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section 4.                      Transfer of Warrant.

 

a) Transferability.  This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in
the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date set forth on
the first page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

d) Representation by the Holder.  The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof,
will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

 

 

 

Section 5.                      Miscellaneous.

 

a) No Rights as Stockholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company
prior to the exercise hereof as set forth in Section 2(d)(i).

 

b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

 

c) Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall
not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d) Authorized Shares.  The Company covenants that, during the period the Warrant
is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by
this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, 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, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions
of the Purchase Agreement.

 

f) Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize
cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g) Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice Holder’s rights, powers or remedies.  Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

 

 

 

h) Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance
with the notice provisions of the Purchase Agreement.

 

i) Limitation of Liability.  No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j) Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance
of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k) Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and
be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l) Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m) Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but
if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n) Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

(Signature Pages Follow)

  

  

  

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

 

 

	
AKEENA SOLAR, INC.

 

 

	
By:__________________________________________

     Name:  Gary Effren

     Title:  Chief Financial Officer

 

 

 

 

  

  

  

NOTICE OF EXERCISE

TO:           AKEENA SOLAR, INC.

(1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company with an exercise price of $_________ pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise
price in full, together with all applicable transfer taxes, if any.

 

(2) Payment shall take the form of (check applicable box):

 

[  ] in lawful money of the United States; or

 

[ ] [if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

_______________________________

_______________________________

_______________________________

[SIGNATURE OF HOLDER]

Name of Investing Entity:

Signature of Authorized Signatory of Investing Entity:

Name of Authorized Signatory:

Title of Authorized Signatory:

Date:

 

 

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________ whose address is

 

 

_______________________________________________________________.

_______________________________________________________________

 

 

Dated:  ______________, _______

 

Holder’s Signature: 

 

 _____________________________

 

 

Holder’s Address: 

 

_____________________________

 

 

_____________________________

Signature Guaranteed:  ___________________________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

  

  

  

ANNEX A

 

Warrant Shares                                                                                     Exercise
Price

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