Document:

EX-10.12

 Exhibit 10.12 

SERVICES AND SECONDMENT AGREEMENT 

among 
 PENNTEX
MIDSTREAM PARTNERS, LLC, 
 PENNTEX MIDSTREAM MANAGEMENT COMPANY, LLC, 

PENNTEX MIDSTREAM GP, LLC 

and 
 PENNTEX MIDSTREAM
PARTNERS, LP 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	ARTICLE 1 DEFINITIONS; INTERPRETATION	  	 	1	  
			
	 1.1
	  	Definitions	  	 	1	  
	 1.2
	  	Interpretation	  	 	1	  
	 1.3
	  	Legal Representation of Parties	  	 	2	  
	 1.4
	  	Titles and Headings	  	 	2	  
		
	ARTICLE 2 SECONDMENT	  	 	2	  
			
	 2.1
	  	Provided Personnel	  	 	2	  
	 2.2
	  	Period of Secondment	  	 	2	  
	 2.3
	  	Withdrawal, Departure or Resignation	  	 	3	  
	 2.4
	  	Termination of Secondment	  	 	3	  
	 2.5
	  	Supervision	  	 	3	  
	 2.6
	  	Provided Personnel Qualifications; Approval	  	 	4	  
	 2.7
	  	Workers Compensation	  	 	4	  
	 2.8
	  	Benefit Plans	  	 	4	  
		
	ARTICLE 3 REIMBURSEMENT FOR PROVIDED PERSONNEL	  	 	4	  
			
	 3.1
	  	Reimbursement for Provided Personnel	  	 	4	  
	 3.2
	  	Provided Personnel Expenses	  	 	4	  
	 3.3
	  	Adjustments for Period of Secondment	  	 	5	  
	 3.4
	  	Adjustments for Shared Services	  	 	5	  
		
	ARTICLE 4 ALLOCATION; RECORDS	  	 	5	  
			
	 4.1
	  	Allocation; Records	  	 	5	  
		
	ARTICLE 5 PARTNERSHIP AND ADMINISTRATIVE SERVICES	  	 	5	  
			
	 5.1
	  	Partnership General and Administrative Services Provided by Development	  	 	5	  
		
	ARTICLE 6 TERM; DEFAULT AND TERMINATION	  	 	7	  
			
	 6.1
	  	Term	  	 	7	  
	 6.2
	  	Default	  	 	8	  
	 6.3
	  	Termination	  	 	8	  
		
	ARTICLE 7 INDEMNIFICATION	  	 	8	  
			
	 7.1
	  	Indemnification by Development and Subsidiaries	  	 	8	  
	 7.2
	  	Indemnification Procedures	  	 	9	  
		
	ARTICLE 8 GENERAL PROVISIONS	  	 	9	  
			
	 8.1
	  	Accuracy of Recitals	  	 	9	  
	 8.2
	  	Notices	  	 	10	  
	 8.3
	  	Further Assurances	  	 	10	  
	 8.4
	  	Modifications	  	 	10	  
	 8.5
	  	No Third Party Beneficiaries	  	 	10	  

							
	 8.6
	  	Relationship of the Parties	  	 	11	  
	 8.7
	  	Assignment	  	 	11	  
	 8.8
	  	Binding Effect	  	 	11	  
	 8.9
	  	Counterparts	  	 	11	  
	 8.10
	  	Time of the Essence	  	 	11	  
	 8.11
	  	Governing Law	  	 	11	  
	 8.12
	  	Delay or Partial Exercise Not Waiver	  	 	11	  
	 8.13
	  	Entire Agreement	  	 	11	  
	 8.14
	  	Waiver	  	 	11	  
	 8.15
	  	Signatories Duly Authorized	  	 	11	  
	 8.16
	  	Incorporation of Exhibits and Schedules by References	  	 	12	  
	 8.17
	  	Arbitration	  	 	12	  

 SCHEDULES AND EXHIBITS 
  

			
	Schedule 5.1(a)	  	Partnership General and Administrative Services Provided by Development
	Exhibit A	  	Definitions
	Exhibit B	  	Provided Personnel
	Exhibit C	  	Addition/Removal/Change of Responsibility of Provided Personnel Form

  
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 SERVICES AND SECONDMENT AGREEMENT 

This Services and Secondment Agreement (“Agreement”), dated as of [•], 2015 (the “Effective
Date”), is entered into among PennTex Midstream Partners, LLC, a Delaware limited liability company (“Development”), PennTex Midstream Management Company, LLC, a Delaware limited liability company
(“Admin”), PennTex Midstream GP, LLC, a Delaware limited liability company (the “General Partner”), and PennTex Midstream Partners, LP, a Delaware limited partnership (the
“Partnership”). Each of Development, Admin, the General Partner and the Partnership is sometimes referred to herein as a “Party” and collectively as the “Parties.” 

RECITALS: 
 WHEREAS, the
General Partner is the sole general partner of the Partnership; 
 WHEREAS, the Partnership owns 100% of the limited liability company
interests in PennTex Midstream Operating, LLC, a Delaware limited liability company (“Midstream Operating”); 

WHEREAS, PennTex North Louisiana Operating, LLC, a Delaware limited liability company (“NLA Operating”), will own and
operate a natural gas processing plant located in Lincoln Parish, Louisiana and certain related pipelines (collectively, the “Assets”); 

WHEREAS, pursuant to that certain Contribution, Conveyance and Assumption Agreement, dated as of [•], 2015, PennTex North Louisiana, LLC,
a Delaware limited liability company (“PennTex JV”), has contributed all of the limited liability company interests in NLA Operating to Midstream Operating; 

WHEREAS, Admin desires to second to the General Partner, on behalf of PennTex JV, certain personnel who will be responsible for managing and
operating the Assets; and 
 WHEREAS, Development will provide the General Partner, on behalf of the Partnership Group, certain centralized
partnership and administrative services. 
 NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE 1 
 DEFINITIONS;
INTERPRETATION 
 1.1 Definitions. As used in this Agreement, (a) the terms defined in this Agreement will have the meanings
so specified, and (b) capitalized terms not defined in this Agreement will have the meanings ascribed to those terms on Exhibit A to this Agreement. 

1.2 Interpretation. In this Agreement, unless a clear contrary intention appears: (a) the singular includes the plural and vice
versa; (b) reference to any Person includes such Person’s successors and assigns but, in the case of a Party, only if such successors and assigns are permitted by this Agreement, and reference to a Person in a particular capacity excludes
such Person in any other capacity; (c) reference to any gender includes each other gender; (d) reference to any agreement (including this Agreement), document or instrument means such agreement, document, or instrument as amended or
modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of this Agreement; (e) reference to any Section means such Section of this Agreement, and references in any 

  
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Section or definition to any clause means such clause of such Section or definition; (f) “hereunder,” “hereof,” “hereto” and words of similar import will be
deemed references to this Agreement as a whole and not to any particular Section or other provision hereof or thereof; (g) “including” (and with correlative meaning “include”) means including without limiting the generality
of any description preceding such term; and (h) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means
“through and including.” 
 1.3 Legal Representation of Parties. This Agreement was negotiated by the Parties with the
benefit of legal representation, and any rule of construction or interpretation requiring this Agreement to be construed or interpreted against any Party merely because such Party drafted all or a part of such Agreement will not apply to any
construction or interpretation hereof or thereof. 
 1.4 Titles and Headings. Section titles and headings in this Agreement are
inserted for convenience of reference only and are not intended to be a part of, or to affect the meaning or interpretation of, this Agreement. 

ARTICLE 2 
 SECONDMENT

 2.1 Provided Personnel. Subject to the terms of this Agreement, Admin agrees to second, or cause its Affiliates to second, to
the General Partner, and the General Partner agrees to accept the Secondment of, those certain specifically identified individuals (the “Provided Personnel”) listed in Exhibit B (the “Provided Personnel
Schedule”) for the purpose of performing job functions related to the Assets (the “Personnel Services”). The Provided Personnel will remain employees of Admin during the Period of Secondment; however, at all
times during the Period of Secondment (and with respect to Shared Provided Personnel, during those times that the Shared Provided Personnel are performing services for the General Partner hereunder), the Provided Personnel shall work solely under
the direction, supervision and control of the General Partner. No Provided Personnel shall have authority or apparent authority to act on behalf of Admin during any period such individual is under the direction, supervision or control of the General
Partner. Individuals may be added or removed from the Provided Personnel Schedule from time to time by the execution by Admin and the General Partner of a completed “Addition/Removal/Change of Responsibility of Provided Personnel” form,
the form of which is attached to this Agreement as Exhibit C, which will be fully binding on Admin and the General Partner for all purposes under this Agreement. Those rights and obligations of Admin and the General Partner under this
Agreement that relate to individuals that were on the Provided Personnel Schedule but then later removed from the Provided Personnel Schedule, which rights and obligations accrued before the removal of such individual, will survive the removal of
such individual from the Provided Personnel Schedule to the extent necessary to enforce such rights and obligations. 
 2.2 Period of
Secondment. Admin will second, or cause its applicable Affiliate (such affiliate, a “Seconding Affiliate”) to second, to the General Partner the Provided Personnel on the Effective Date and continuing, during the period
(and only during the period) that the Provided Personnel are performing services for the General Partner, until the earlier of: 

(a) the end of the term of this Agreement; 

(b) such end date as is mutually agreed in writing by Admin and the General Partner; 

(c) a withdrawal, departure, resignation or termination of such Provided Personnel under Section 2.3; or 

  
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 (d) a termination of Secondment of such Provided Personnel under
Section 2.4. 
 The period of time that any Provided Personnel is provided by Admin to the General Partner is referred to in
this Agreement as the “Period of Secondment.” At the end of the Period of Secondment for any Provided Personnel, such Provided Personnel will no longer be subject to the supervision, control or direction of the General
Partner. Admin and the General Partner acknowledge that certain of the Provided Personnel may also provide services to Admin and its Affiliates in connection with their respective operations unrelated to the General Partner (“Shared
Provided Personnel”), and Admin and the General Partner intend that such Shared Provided Personnel shall only be seconded to the General Partner during those times that the Shared Provided Personnel are performing services for the
General Partner hereunder. 
 2.3 Withdrawal, Departure or Resignation. If any Provided Personnel tenders his resignation to Admin as
an employee of Admin, Admin will promptly notify the General Partner. During the Period of Secondment of any Provided Personnel, Admin will not voluntarily withdraw or terminate any Provided Personnel except for terminations for cause (as reasonably
determined by Admin) or with the written consent of the General Partner (which may be through the execution of a completed “Addition/Removal/Change of Responsibility of Provided Personnel” form as set forth on Exhibit C), such
consent not to be unreasonably withheld, conditioned or delayed. Upon the termination of employment, the Provided Personnel will cease performing services for the General Partner. 

2.4 Termination of Secondment. The General Partner will have the right to terminate the Secondment to the General Partner of any
Provided Personnel for any reason at any time in accordance with the policies and procedures of Admin. Upon the termination of the Period of Secondment for any Provided Personnel other than the Shared Provided Personnel, the General Partner shall be
responsible for reimbursing Admin for any and all severance costs or other expenses (which, for the avoidance of doubt, shall constitute Provided Personnel Expenses hereunder) associated with the termination of such Provided Personnel’s
employment by Admin, provided that such termination of employment occurs within thirty (30) calendar days following the termination of the applicable Period of Secondment. Upon the termination of a Secondment, the Provided Personnel will cease
performing services for the General Partner. 
 2.5 Supervision. During the Period of Secondment, the General Partner shall: 

(a) be ultimately and fully responsible for the daily work assignments of the Provided Personnel (and with respect to Shared
Provided Personnel, during those times that the Shared Provided Personnel are performing services for the General Partner hereunder), including supervision of their the day-to-day work activities and performance consistent with the purposes stated
in Section 2.1 and the job functions set forth in the Provided Personnel Schedule; 
 (b) subject to Admin’s
policies and procedures, set the hours of work and the holidays and vacation schedules for Provided Personnel (other than with respect to Shared Provided Personnel, as to which the General Partner and Admin shall jointly determine); and 

(c) have the right to determine training which will be received by the Provided Personnel. 

In the course and scope of performing any Provided Personnel job functions, the Provided Personnel will be integrated into the organization of
the General Partner, will report into the General Partner’s management structure and will be under the direct management and supervision of the General Partner. 

  
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 2.6 Provided Personnel Qualifications; Approval. Admin will provide such suitably
qualified and experienced Provided Personnel as Admin is able to make available to the General Partner, and the General Partner will have the right to approve such Provided Personnel. 

2.7 Workers Compensation. At all times, Admin will maintain workers’ compensation or similar insurance (either through an insurance
company or self-insured arrangement) applicable to the Provided Personnel, as required by applicable state and federal workers’ compensation and similar laws, and will name the General Partner as an additional named insured under each such
insurance policy. 
 2.8 Benefit Plans. Neither the General Partner nor any Partnership Group Member shall be deemed to be a
participating employer in any Benefit Plan during the Period of Secondment. Subject to the General Partner’s reimbursement obligations hereunder, Admin (or its ERISA Affiliate) shall remain solely responsible for all obligations and liabilities
arising under the express terms of the Benefit Plans, and the Provided Personnel will be covered under the Benefit Plans subject to and in accordance with their respective terms and conditions, as they may be amended from time to time. Admin and its
ERISA Affiliates may amend or terminate any Benefit Plan in whole or in part at any time. During the Period of Secondment, neither the General Partner nor any Partnership Group Member shall assume any Benefit Plan or have any obligations,
liabilities or rights arising under the Benefit Plans, in each case except for cost reimbursement pursuant to this Agreement. 
 ARTICLE 3

 REIMBURSEMENT FOR PROVIDED PERSONNEL 

3.1 Reimbursement for Provided Personnel. On or before the fifteenth (15th) business day after the end of each month during the
Period of Secondment, Admin shall send an itemized invoice (in a form mutually agreed upon by the General Partner and Admin) to the General Partner detailing all reimbursable expenses under Section 3.2, as incurred by Admin with respect
to the Provided Personnel in connection with the performance of the Personnel Services during the preceding month (the “Services Reimbursement”). The General Partner shall, within fifteen (15) business days of receipt,
pay such invoice, except for any amounts therein being disputed in good faith by the General Partner. Any amounts that the General Partner has disputed in good faith and that are later determined by any arbitrator, court or other competent authority
having jurisdiction, or by agreement of Admin and the General Partner, to be owing from the General Partner to Admin shall be paid in full within fifteen (15) business days of such determination, together with interest thereon at the Interest
Rate from the date due under the original invoice until the date of payment. 
 3.2 Provided Personnel Expenses. Subject to
Section 3.3 and Section 3.4, the Services Reimbursement for each month during the Period of Secondment shall include all reasonable costs and expenses incurred for such month by Admin for the Provided Personnel (collectively,
the “Provided Personnel Expenses”), including, but not limited to, the following: 
 (a) salaries,
wages, bonuses or commissions (including payroll and withholding taxes associated therewith) of Provided Personnel; 
 (b)
the cost of providing the Benefit Plans to Provided Personnel; 
 (c) the cost of providing workers’ compensation
coverage and/or benefits to Provided Personnel; and 
 (d) reimbursable business expenses of Provided Personnel. 

  
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 Where it is not reasonably practicable to determine the amount of any Provided Personnel
Expenses, Admin and the General Partner shall mutually agree on the method of determining or estimating such amount, which may include the application of an agreed percentage benefit load to a Provided Personnel’s salary and wages in order to
value certain of the benefits listed above. If the actual amount of any cost or expense, once known, varies from the estimate used for billing purposes hereunder, the difference, once determined, shall be reflected as either a credit or additional
charge in the next monthly invoice issued by Admin, or in such manner as may otherwise be agreed between Admin and the General Partner. 

3.3 Adjustments for Period of Secondment. It is understood and agreed that the General Partner shall be liable for Provided Personnel
Expenses to the extent, and only to the extent, they are attributable to the Period of Secondment. As such, if the Period of Secondment begins on other than the first day of a month or ends on other than the last day of a month, the Provided
Personnel Expenses for such month shall be prorated based on the number of days during such month that the Period of Secondment was in effect. 

3.4 Adjustments for Shared Services. With respect to each Provided Personnel who is a Shared Provided Personnel, Admin (or its
applicable Seconding Affiliate) will determine in good faith the percentage of such Shared Provided Personnel’s time spent providing services to the General Partner (the “Allocation Percentage”). For each month during
the Period of Secondment, the amount of the Services Reimbursement payable by the General Partner with respect to each Shared Provided Personnel shall be calculated by multiplying the Provided Personnel Expenses for such Shared Provided Personnel by
the Allocation Percentage for such Shared Provided Personnel. 
 ARTICLE 4 

ALLOCATION; RECORDS 
 4.1
Allocation; Records. Admin will use commercially reasonable efforts to maintain an allocation schedule reflecting the direct and indirect costs of the Provided Personnel Expenses based on the services that the Provided Personnel have provided
to the General Partner in relation to the Assets. The General Partner will use commercially reasonable efforts to keep and maintain books/records reflecting hours worked and costs and expenses incurred in connection with each of the Provided
Personnel. The General Partner and its representatives will have the right to audit such records and such other records as the General Partner may reasonably require in connection with its verification of the Provided Personnel Expenses during
regular business hours and on reasonable prior notice. 
 ARTICLE 5 

PARTNERSHIP AND ADMINISTRATIVE SERVICES 

5.1 Partnership General and Administrative Services Provided by Development. 

(a) Development agrees to provide, and agrees to cause its Affiliates to provide, to the General Partner, for the Partnership
Group’s benefit, certain centralized partnership and administrative services related to the Partnership’s ownership and operation of the Assets, including, without limitation, the general and administrative services listed on
Schedule 5.1(a) to this Agreement. At the General Partner’s request from time to time, Development shall consult with the General Partner and provide such information as may be reasonably requested by the General Partner with
respect to the performance of such services. As consideration for the services provided under this Section 5.1(a), the Partnership will pay Development an administrative fee (the “Administrative Fee”) of
$2.0 million per year, payable in equal monthly installments on or before the fifteenth (15th) business day of each month, commencing in the first 

  
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month following the Effective Date; provided, however, that the Administrative Fee for the period from and including the Effective Date to March 31, 2015 will be equal to
$[•] per day. Development may increase or decrease the Administrative Fee on each anniversary of the Effective Date, commencing on the first anniversary date of the Effective Date, by a percentage equal to the change in the Producer Price
Index over the previous 12 calendar months or to reflect any increase in the cost of providing centralized partnership and administrative services to the Partnership Group due to changes in any law, rule or regulation applicable to Development
or the Partnership Group, including any interpretation of such laws, rules or regulations, including the rules of any exchange upon which the Partnership’s debt or equity is listed or traded, or to reflect any increase in the scope and extent
of the services provided to the Partnership Group; provided, however, that the Administrative Fee shall not be decreased below the initial fee provided in this Agreement unless the type or extent of such services materially decreases,
subject to the provision in Section 5.1(b) whereby Development and the Partnership may mutually agree to reduce the Administrative Fee. The General Partner may agree on behalf of the Partnership to increases in the Administrative Fee in
connection with expansions of the operations of the Partnership Group through the acquisition or construction of new assets or businesses. 

(b) The Partnership shall have the right to terminate any or all of the services listed on Schedule 5.1(a) to this
Agreement, without penalty, upon thirty (30) days’ prior written notice to Development. In addition, at the end of each calendar year, the Partnership will have the right to submit to Development a proposal to reduce the amount of the
Administrative Fee for the upcoming year if the Partnership believes, in good faith, that the centralized partnership and administrative services performed by Development for the benefit of the Partnership Group for the upcoming year will not
justify payment of the full Administrative Fee for such year. If the Partnership submits such a proposal to Development, Development agrees that it will negotiate in good faith with the Partnership to determine if the Administrative Fee for the
upcoming year should be reduced and, if so, the amount of such reduction. If Development and the Partnership agree that the Administrative Fee for that year should be reduced, then Development shall thereafter charge such reduced amount. If the
Partnership and Development cannot agree to the amount of a reduction in the Administrative Fee for that year, then the reduction amount shall become a dispute governed in accordance with Section 8.17; provided, however, that the
Administrative Fee shall not be decreased below the initial fee provided in this Agreement unless the type or extent of such services materially decreases. 

(c) The Partnership shall reimburse Development for all other direct or allocated costs and expenses incurred by Development on
behalf of the Partnership Group including, but not limited to: 
 (i) salaries, wages, bonuses or commissions (including payroll and
withholding taxes associated therewith) of employees of Development and its Affiliates (other than the Provided Personnel) who devote more than 50% of their business time to the business and affairs of the Partnership Group, to the extent, but only
to the extent, such employees perform services for the Partnership Group as determined in good faith by Development based on Development’s reasonable allocation methodologies as in effect from time to time; 

(ii) the cost of employee benefits relating to employees of Development and its Affiliates (other than the Provided Personnel) who devote more
than 50% of their business time to the business and affairs of the Partnership Group, including 401(k), pension, bonuses and health insurance benefits, to the extent, but only to the extent, such employees perform services for the Partnership Group
as determined in good faith by Development based on Development’s reasonable allocation methodologies as in effect from time to time; 

  
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 (iii) any expenses incurred or payments made by Development for insurance coverage with respect
to the Assets or the business of the Partnership Group; 
 (iv) all expenses and expenditures incurred by Development as a result of the
Partnership becoming and continuing as a publicly traded entity, including, but not limited to, costs associated with annual and quarterly reports, independent auditor fees, partnership governance and compliance, registrar and transfer agent fees,
tax return and Schedule K-1 preparation and distribution, legal fees and independent director compensation; 
 (v) all sales, use,
excise, value added or similar taxes, if any, that may be applicable from time to time with respect to the services provided by Development to the Partnership Group pursuant to Section 5.1(a); and 

(vi) all costs for outside services, including any third-party legal, consulting, tax and accounting services not included in clause
(iv) above, that are incurred for the Partnership Group’s benefit. 
 On or before the fifteenth (15th) business day
after the end of each month during the term of this Agreement, Development shall send an itemized invoice (in a form mutually agreed upon by Development and the Partnership) to the Partnership detailing all reimbursable expenses under
Section 5.1(c) incurred by Development during the preceding month. The Partnership shall, within fifteen (15) business days of receipt, pay such invoice, except for any amounts therein being disputed in good faith by the
Partnership. Any amounts that the Partnership has disputed in good faith and that are later determined by any court or other competent authority having jurisdiction, or by agreement of Development and the Partnership, to be owing from the
Partnership to Development shall be paid in full within fifteen (15) business days of such determination, together with interest thereon at the Interest Rate from the date due under the original invoice until the date of payment. For the
avoidance of doubt, the costs and expenses set forth in this Section 5.1(c) shall be paid by the Partnership in addition to, and not as a part of or included in, the Administrative Fee. 

Development does not make any representations or warranties of any kind, express or implied, with respect to the services to be provided under
this Section 5.1(c), except that the services shall be provided in a reasonably timely manner by personnel that Development deems to be competent and qualified to perform such services. 

ARTICLE 6 
 TERM; DEFAULT
AND TERMINATION 
 6.1 Term. The term of this Agreement will commence on the Effective Date and will continue for an initial
period of ten (10) years. Upon the expiration of the initial ten-year period, the term of this Agreement shall automatically extend for an additional five-year period, unless either Party provides at least 30 days’ prior written notice to
the other Party prior to the expiration of such initial period that the Party wishes for this Agreement to expire at the end of the initial ten-year period. After the initial five-year renewal period, the term of this Agreement shall automatically
extend for additional five-year periods, unless either Party provides prior written notice at least 30 days prior to the expiration of the applicable five-year period, that the Party wishes for this Agreement to expire at the end of such five-year
period. Upon proper notice by a Party to the other Party, in accordance with this Article 6, that the Party 

  
 7 

 
wishes for this Agreement to expire on the expiration of the applicable five- or ten-year period, this Agreement shall not automatically extend, but shall instead expire upon the expiration of
the five- or ten-year period and only those provisions that, by their terms, expressly survive this Agreement shall so survive. 
 6.2
Default. A Party shall be in default under this Agreement if: (a) it fails to perform a material obligation; (b) such failure continues for a period of thirty (30) days after notice thereof or, if such failure cannot reasonably
be cured within such thirty (30) day period, such longer period (not to exceed sixty (60) days) so long as such Party is diligently and continuously engaged in curing such failure. In the event a Party is in default of this Agreement, the
non-defaulting Party may terminate this Agreement upon notice to the defaulting Party or submit any claims regarding the defaulting Party’s non-performance to arbitration in accordance with Section 8.17, which, for the avoidance of
doubt, permits the non-defaulting Party to seek interim relief and specific performance in connection with such arbitration proceedings. 

6.3 Termination. This Agreement may be terminated as follows, and only those provisions that, by their terms, expressly survive this
Agreement shall so survive: 
 (a) by the Partnership Group at any time upon thirty (30) days’ prior written notice
to Admin or Development; 
 (b) by any Party upon a default of this Agreement by any other Party that has an obligation to
such Party; or 
 (c) by any Party at any time upon a Partnership Change of Control. 

Any termination pursuant to this Section 6.3 shall be evidenced by a notice given by the Party effectuating such termination. 

ARTICLE 7 

INDEMNIFICATION 
 7.1
Indemnification by Development and Subsidiaries. Development and its Subsidiaries shall indemnify, protect and defend the Partnership Group and all of the officers, directors, employees and agents of any Partnership Group Member (each, an
“Indemnified Party” and, collectively, the “Indemnified Parties”) against, and hold the Indemnified Parties harmless from, any and against all losses (including lost profits), costs, damages, injuries,
taxes, penalties, interests, expenses, obligations, claims and liabilities (joint or severable) of any kind or nature whatsoever (collectively, the “Claims”) that are incurred by such Indemnified Parties in connection with,
relating to or arising out of (a) the breach by Development or any of its Subsidiaries, or their respective directors, officers, employees, agents, contractors, subcontractors or consultants of any term or condition of this Agreement, or
(b) the performance of any services under this Agreement; provided, however, that Development and its Subsidiaries shall not be obligated to indemnify, reimburse, defend or hold harmless any Indemnified Party for any Claims
incurred by such Indemnified Party in connection with, relating to or arising out of (i) a breach by such Indemnified Party of this Agreement, (ii) the gross negligence, willful misconduct, bad faith or reckless disregard of such
Indemnified Party with respect to any services provided under this Agreement or (iii) the fraudulent or dishonest acts of such Indemnified Party. 

  
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 7.2 Indemnification Procedures. 

(a) An Indemnified Party agrees that promptly after it becomes aware of facts giving rise to a Claim under this Article
7, it will provide notice thereof to Admin or Development, as applicable, pursuant to Section 7.1 (the “Indemnifying Party”), specifying the nature of and specific basis for such claim, copies of all
correspondence with third parties, Governmental Authorities or other individuals relating to the claim, and other relevant information reasonably requested by the Indemnifying Party. 

(b) The Indemnifying Party shall have the right to control all aspects of the response to and/or defense of (and any
counterclaims with respect to) any Claims brought against the Indemnified Party that are covered by the indemnification under this Article 7, including correspondence and negotiation with Governmental Authorities, the selection of counsel and
engineering and other consultants, determination of the scope of and approach to any investigation or remediation, determination of whether to appeal any decision of any court, determination of whether to enter into any voluntary agreement with any
Governmental Authority, and the settling of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent of the Indemnified Party unless it includes a full release
of the Indemnified Party from such matter or issues, as the case may be. 
 (c) The Indemnified Party agrees to cooperate
fully with the Indemnifying Party, with respect to all aspects of the defense of any Claims covered by the indemnification under this Article 7, including the prompt furnishing to the Indemnifying Party of any correspondence or other notice
relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the
Indemnified Party that the Indemnifying Party considers relevant to such defense and the making available to the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in connection therewith the
Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the
Indemnified Party pursuant to this Section 7.2. In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the
Indemnified Party an obligation to hire and pay for counsel in connection with the defense of any Claims covered by the indemnification set forth in this Article 7; provided, however, that the Indemnified Party may, at its own option,
cost and expense, hire and pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall
have the right to retain sole control over such defense. 
 (d) In determining the amount of any loss, cost, damage or
expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such correlative insurance
benefit shall be net of any incremental insurance premiums that become due and payable by the Indemnified Party as a result of such claim and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from third Persons.

 ARTICLE 8 
 GENERAL
PROVISIONS 
 8.1 Accuracy of Recitals». The paragraphs contained in the recitals to this Agreement are incorporated in
this Agreement by this reference, and the Parties to this Agreement acknowledge the accuracy thereof. 

  
 9 

 8.2 Notices. Any notice, demand, or communication required or permitted under this
Agreement shall be in writing and delivered personally, by reputable courier, or by facsimile, and shall be deemed to have been duly given as of the date and time reflected on the delivery receipt if delivered personally or sent by reputable courier
service, or on the automatic telecopier receipt if sent by telecopier, addressed as follows: 
 Development: 

PennTex Midstream Partners, LLC 

11931 Wickchester Ln., Suite 300 

Houston, TX 77043 
 Attn:
Stephen M. Moore 
 Facsimile: (832) 456-4050 

Admin: 
 PennTex
Midstream Management Company, LLC 
 11931 Wickchester Ln., Suite 300 

Houston, TX 77043 
 Attn:
Stephen M. Moore 
 Facsimile: (832) 456-4050 

General Partner: 

PennTex Midstream GP, LLC 

11931 Wickchester Ln., Suite 300 

Houston, TX 77043 
 Attn:
Stephen M. Moore 
 Facsimile: (832) 456-4050 

Partnership: 
 PennTex
Midstream Partners, LP 
 11931 Wickchester Ln., Suite 300 

Houston, TX 77043 
 Attn:
Stephen M. Moore 
 Facsimile: (832) 456-4050 

A Party may change its address for the purposes of notices hereunder by giving notice to the other Parties specifying such changed address in the manner
specified in this Section 8.2. 
 8.3 Further Assurances. The Parties agree to execute such additional instruments,
agreements and documents, and to take such other actions, as may be necessary to effect the purposes of this Agreement. 
 8.4
Modifications. Any actions or agreement by the Parties to modify this Agreement, in whole or in part, shall be binding upon the Parties, so long as such modification shall be in writing and shall be executed by all Parties with the same
formality with which this Agreement was executed. 
 8.5 No Third Party Beneficiaries. No Person not a Party to this Agreement will
have any rights under this Agreement as a third party beneficiary or otherwise, including, without limitation, Provided Personnel. 

  
 10 

 8.6 Relationship of the Parties. Nothing in this Agreement will constitute any Partnership
Group Member, Development, Admin or their respective Affiliates as members of any partnership, joint venture, association, syndicate or other entity. 

8.7 Assignment. No Party will, without the prior written consent of the other Parties, which consent shall not be unreasonably withheld,
assign, mortgage, pledge or otherwise convey this Agreement or any of its rights or duties hereunder; provided, however, that (a) a Party may assign or convey this Agreement without the prior written consent of the other Parties
to an Affiliate and (b) the Partnership may make a collateral assignment of this Agreement to secure financing for the Partnership Group without the prior written consent of the other Parties. Unless written consent is not required under this
Section 8.7, any attempted or purported assignment, mortgage, pledge or conveyance by a Party without the written consent of the other Parties shall be void and of no force and effect. No assignment, mortgage, pledge or other conveyance
by a Party shall relieve the Party of any liabilities or obligations under this Agreement. 
 8.8 Binding Effect. This Agreement will
be binding upon, and will inure to the benefit of, the Parties and their respective successors, permitted assigns and legal representatives. 

8.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all
of which together shall constitute one and the same Agreement. Each Party may execute this Agreement by signing any such counterpart. 
 8.10
Time of the Essence. Time is of the essence in the performance of this Agreement. 
 8.11 Governing Law. This Agreement shall
be deemed to be a contract made under, and for all purposes shall be construed in accordance with and governed by, the laws of the State of Delaware excluding its conflicts of laws principles that would apply the laws of another jurisdiction, except
that the arbitration agreement in Section 8.17 and any arbitration shall be governed by the Federal Arbitration Act, Chapters 1 and 2, to the exclusion of state law inconsistent therewith. 

8.12 Delay or Partial Exercise Not Waiver. No failure or delay on the part of any Party to exercise any right or remedy under this
Agreement will operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy under this Agreement preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or any
related document. The waiver by a Party of a breach of any provisions of this Agreement will not constitute a waiver of a similar breach in the future or of any other breach or nullify the effectiveness of such provision. 

8.13 Entire Agreement. This Agreement constitutes and expresses the entire agreement between the Parties with respect to the subject
matter hereof. All previous discussions, promises, representations and understandings relative thereto are hereby merged in and superseded by this Agreement. 

8.14 Waiver. To be effective, any waiver or any right under this Agreement will be in writing and signed by a duly authorized officer or
representative of the Party bound thereby. 
 8.15 Signatories Duly Authorized. Each of the signatories to this Agreement represents
that he is duly authorized to execute this Agreement on behalf of the Party for which he is signing, and that such signature is sufficient to bind the Party purportedly represented. 

  
 11 

 8.16 Incorporation of Exhibits and Schedules by References. Any reference herein to any
exhibit or schedule to this Agreement will incorporate it herein, as if it were set out in full in the text of this Agreement. 
 8.17
Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration
Rules and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The place of arbitration shall be Houston, Texas, and the hearings shall be conducted in Houston, Texas. If the claim in the demand
for arbitration is less than $1 million, there shall be one (1) arbitrator; otherwise, there shall be three (3) arbitrators. In the case of one (1) arbitrator, the arbitrator shall be jointly appointed by the Parties within thirty
(30) days of the filing of the demand for arbitration. In the case of three (3) arbitrators, one shall be appointed by the claimant(s) in the demand for arbitration, the second appointed by the respondent(s) within thirty (30) days of
receipt of the demand for arbitration, and the third, who shall act as chairman of the arbitral tribunal, appointed by the Parties within thirty (30) days of the appointment of the second arbitrator. If any arbitrators are not appointed within
these time periods, the American Arbitration Association shall make the appointment(s). All arbitrators must (a) be neutral parties who have never been officers, directors or employees of any Partnership Group Member, Development, Admin or
their respective Affiliates and (b) have not less than seven years’ experience in the energy industry. An arbitral tribunal constituted under this agreement may, unless consolidation would prejudice the rights of any Party, consolidate an
arbitration hereunder with arbitration under the Omnibus Agreement if the arbitration proceedings raise common questions of law or fact. If two or more arbitral tribunals under these agreements issue consolidation orders, the order issued first
shall prevail. The award shall be made within twelve months of the filing of the notice of intention to arbitrate (demand), and the arbitrators shall agree to comply with this schedule before accepting appointment. However, this time limit may be
extended by the arbitrators for good cause shown, or by mutual agreement of the Parties. The arbitrators shall have no right to grant or award indirect, consequential, punitive or exemplary damages of any kind. The award of the arbitrators shall be
accompanied by a reasoned opinion. Except as may be required by law, neither a Party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of the other Parties. 

[Signature page follows] 

  
 12 

 AS WITNESS HEREOF, the Parties have caused this Agreement to be executed by their duly authorized
representatives on the date herein above mentioned. 
  

			
	PennTex Midstream Partners, LLC
		
	By:	 	  

	Name:	 	Steven R. Jones
	Title:	 	Chief Financial Officer
	
	PennTex Midstream Management Company, LLC
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PennTex Midstream GP, LLC
		
	By:	 	  

	Name:	 	Steven R. Jones
	Title:	 	Chief Financial Officer
	
	PennTex Midstream Partners, LP
	
	By: PennTex Midstream GP, LLC, its general partner
		
	By:	 	  

	Name:	 	Steven R. Jones
	Title:	 	Chief Financial Officer

 Signature Page to Services and Secondment Agreement 

 SCHEDULE 5.1(a) 

Partnership General and Administrative Services Provided by Development 

 

	(i)	Executive services of employees of the General Partner who devote less than 50% of their business time to the business and affairs of the Partnership Group 

 

	(ii)	Financial and administrative services (including treasury and accounting) 

  

	(iii)	Information technology 

  

	(iv)	Legal services 

  

	(v)	Health, safety and environmental services 

  

	(vi)	Human resources services 

  

	(vii)	Business development services 

  

	(viii)	Investor relations and government relations 

  

	(ix)	Tax matters 

  

	(x)	Insurance administration 

  
 Schedule 5.1(a) 

 EXHIBIT A 

Definitions 

“Admin” has the meaning set forth in the preamble to this Agreement. 

“Administrative Fee” has the meaning set forth in Section 5.1(a). 

“Affiliate” means, with respect to any Person, (a) any other Person directly or indirectly Controlling,
Controlled By or under common control with such Person, (b) any Person owning or controlling fifty percent (50%) or more of the voting interests of such Person, (c) any officer or director of such Person, or (d) any Person who is
the officer, director, trustee, or holder of fifty percent (50%) or more of the voting interest of any Person described in clauses (a) through (c). For purposes of this definition, the term “controls,” “is
controlled by” or “is under common control with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of Voting
Securities, by contract or otherwise. For purposes of this Agreement, no Partnership Group Member shall be deemed to be an Affiliate of Development or Admin nor shall Development or Admin be deemed to be an Affiliate of any Partnership Group Member
or of each other. 
 “Agreement” shall mean this Services and Secondment Agreement, including all Exhibits,
Schedules and amendments to this Agreement. 
 “Applicable Law” means all statutes, regulations, rules, ordinances,
codes, licenses, permits, orders, approvals and rules of common law of each Governmental Authority having jurisdiction over the Parties, including Environmental Laws, all health, building, fire, safety and other codes, ordinances and requirements,
in each case, as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree, judgment or settlement; in each case, as applicable to any Party or the Assets. 

“Assets” has the meaning set forth in the Recitals to this Agreement. 

“Allocation Percentage” has the meaning set forth in Section 3.4. 

“Benefit Plans” means each employee benefit plan, as defined in Section 3(3) of ERISA, and any other plan,
policy, program, practice, agreement, understanding or arrangement (whether written or oral) providing compensation or other benefits to any Provided Personnel (or to any dependent or beneficiary thereof), including, without limitation, any
equity-based compensation, bonus or incentive compensation, deferred compensation, profit sharing, holiday, cafeteria, medical, disability or other employee benefit plan, program, policy, agreement or arrangement sponsored, maintained, or
contributed to by Admin or any of its ERISA Affiliates, or under which Admin or any of its ERISA Affiliates may have any obligation or liability, whether actual or contingent, in respect of or for the benefit of any Provided Personnel. 

“Claims” has the meaning set forth in Section 7.1. 

“Control” (including with correlative meaning, the term “Controlled by”) means, as used with
respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of a majority of the Voting Securities, by contract or
otherwise. 

  
 Exhibit A-1 

 “Development” has the meaning set forth in the preamble to this
Agreement. 
 “Effective Date” has the meaning set forth in the preamble to this Agreement. 

“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, judgments,
ordinances, codes, injunctions, decrees, permits and other legally enforceable requirements and rules of common law now or hereafter in effect, relating to (a) pollution or protection of human health, natural resources, wildlife and the
environment including, without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Federal
Water Pollution Control Act, the Toxic Substances Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, and other environmental conservation and protection laws and the regulations promulgated
pursuant thereto, and any state or local counterparts, each as amended from time to time, and (b) the generation, manufacture, processing, distribution, use, treatment, storage, transport, or handling of any hazardous wastes. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“ERISA Affiliate” means any entity that would be treated as a single employer with an Operator under Sections 414(b),
(c) or (m) of the Code or Section 4001(b)(1) of ERISA. 
 “General Partner” has the meaning set forth
in the preamble to this Agreement. 
 “Governmental Authority” means any federal, state, local or foreign government
or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission,
board, bureau, agency, instrumentality or administrative body of any of the foregoing. 
 “Indemnified Party” or
“Indemnified Parties” has the meaning set forth in Section 7.1. 
 “Indemnifying
Party” has the meaning set forth in Section 7.2(a). 
 “Interest Rate” means the lesser of
(i) two percent (2%) over the one month London Interbank Offered Rate (LIBOR) prevailing during the period in question, and (ii) the maximum rate permitted by Applicable Law. 

“Midstream Operating” has the meaning set forth in the Recitals to this Agreement. 

“NLA Operating” has the meaning set forth in the Recitals to this Agreement. 

“Omnibus Agreement” means that certain Omnibus Agreement, dated as of [l], 2015, by and among the Partnership, the General Partner, Development and PennTex JV. 

“Partnership” has the meaning set forth in the preamble to this Agreement. 

“Partnership Change of Control” means Development ceases to Control the General Partner. 

“Partnership Group” means the General Partner, the Partnership and all of the Partnership’s Subsidiaries, treated
as a single consolidated entity. 
 “Partnership Group Member” means any member of the Partnership Group. 

  
 Exhibit A-2 

 “Party” or “Parties” has the meaning set forth in
the preamble to this Agreement. 
 “PennTex JV” has the meaning set forth in the Recitals to this Agreement. 

“Period of Secondment” has the meaning set forth in Section 2.2. 

“Person” means any individual or any partnership, corporation, limited liability company, trust, or other legal
entity. 
 “Personnel Services” has the meaning set forth in Section 2.1. 

“Producer Price Index” shall have the meaning ascribed to the term “PPI,” as published by the United
States Bureau of Labor Statistics. 
 “Provided Personnel” has the meaning set forth in
Section 2.1. 
 “Provided Personnel Expenses” has the meaning set forth in Section 3.2. 

“Provided Personnel Schedule” has the meaning set forth in Section 2.1. 

“Seconding Affiliate” has the meaning set forth in Section 2.2. 

“Secondment” means each assignment of any Provided Personnel to the General Partner from Admin or its applicable
Seconding Affiliate in accordance with the terms of this Agreement. 
 “Services Reimbursement” has the meaning set
forth in Section 3.1. 
 “Shared Provided Personnel” has the meaning set forth in
Section 2.2. 
 “Subsidiary” means, with respect to any Person, (a) a corporation of which more
than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by
such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner
of such partnership, but only if such Person, directly or by one or more Subsidiaries of such Person, or a combination thereof, Controls such partnership on the date of determination, or (c) any other Person (other than a corporation or a
partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct
the election of a majority of the directors, managers or other governing body of such Person. 
 “Voting Securities”
of a Person means securities of any class of such Person entitling the holders thereof to vote in the election of, or to appoint, members of the board of directors or other similar governing body of the Person; provided that, if such Person
is a limited partnership, Voting Securities of such Person shall be the general partner interest in such Person. 

  
 Exhibit A-3 

 EXHIBIT B 

Provided Personnel 

In reference to that certain Services and Secondment Agreement, dated as of
[l], 2015 (the “Secondment Agreement;” terms with initial capital letters used but not defined herein
shall have the meanings ascribed to such terms in the Secondment Agreement), among PennTex Midstream Partners, LLC, a Delaware limited liability company, PennTex Midstream Management Company, LLC, a Delaware limited liability company, PennTex
Midstream GP, LLC, a Delaware limited liability company, and PennTex Midstream Partners, LP, a Delaware limited partnership. 
  

					
	 Company
	 	 Name of Provided

Personnel
	 	 Title and Job Functions

		 		 	

  
 Exhibit B-1 

 EXHIBIT C 

Addition/Removal/Change of Responsibility of Provided Personnel Form 

In reference to that certain Services and Secondment Agreement, dated [•], 2015 (the “Secondment Agreement;”
terms with initial capital letters used but not defined herein shall have the meanings ascribed to such terms in the Secondment Agreement), among PennTex Midstream Partners, LLC, a Delaware limited liability company, PennTex Midstream Management
Company, LLC, a Delaware limited liability company (“Admin”), PennTex Midstream GP, LLC, a Delaware limited liability company (the “General Partner”), and PennTex Midstream Partners, LP, a Delaware
limited partnership. 
 In accordance with Section 2.1 of the Secondment Agreement, Admin and the General Partner hereto wish to
add remove, or change the responsibilities of the following individual or individuals to the Provided Personnel Schedule (all information must be filled in for this form to be valid): 

Provided Personnel 
  

					
	 Company
	  	 Name of Provided

Personnel
	  	 Title and Job Functions

		  		  	

  

			
	PENNTEX MIDSTREAM GP, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	PENNTEX MIDSTREAM MANAGEMENT COMPANY, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Exhibit C-1Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (this "Agreement") is dated as of December 12, 2014, by and among PHOTOMEDEX, INC., a Nevada corporation (the "Company"), and the investors listed on the Schedule of Investors attached hereto (individually, an "Investor" and collectively, the "Investors").

WHEREAS, the Company desires to issue and sell to the Investors pursuant to this Agreement an aggregate of 645,000 shares (the "Shares") of common stock, $0.01 par value per share, of the Company (the "Common Stock") and warrants in the form attached hereto as Exhibit A (the "Warrants") to purchase an aggregate of 322,500 shares (the "Warrant Shares") of Common Stock of the Company (the Shares, Warrant and Warrant Shares are collectively referred to as the "Securities"); and

WHEREAS, each Investor wishes to purchase such number of Shares as is set forth opposite such Investor's name in column (3) on the Schedule of Investors and Warrants to purchase such number of Warrant Shares as is set forth opposite such Investor's name in column (4) on the Schedule of Investors, in each case on the terms and subject to the conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the mutual agreements, representations, warranties and covenants herein contained, the parties hereto agree as follows:

1.            Definitions.  As used in this Agreement, the following terms shall have the following respective meanings:

 

           (a)            "Affiliate" shall mean, as to any Person (the "subject Person"), any other Person (a) that directly or indirectly through one or more intermediaries controls or is controlled by, or is under direct or indirect common control with, the subject Person, (b) that directly or indirectly beneficially owns or holds ten percent (10%) or more of any class of voting equity of the subject Person, or (c) ten percent (10%) or more of the voting equity of which is directly or indirectly beneficially owned or held by the subject Person. For the purposes of this definition, "control" when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, through representation on such Person's board of directors or other management committee or group, by contract or otherwise.

            (b)            "Company Commission Reports" shall mean all reports under Section 13 of the Exchange Act filed by the Company with the Commission during the year prior to the date hereof.

 

            (c)            "Commission" shall mean the Securities and Exchange Commission.

 

            (d)            "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and all of the rules and regulations promulgated thereunder.

            (e)            "Person" shall mean any individual, corporation, trust, association, company, partnership, joint venture, limited liability company, joint stock company, governmental authority or other entity.

 

            (f)            "Registration Rights Agreement" shall mean that certain Registration Rights Agreement, dated as of the date hereof, by and among the Company and the Investors.

 

            (g)            "Securities Act" shall mean the Securities Act of 1933, as amended, and all of the rules and regulations promulgated thereunder.

 

            (h)            "Subsidiary" shall mean any corporation or other entity of which at least a majority of the outstanding shares of stock or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors (or persons performing similar functions) of such corporation or entity (regardless of whether or not at the time, in the case of a corporation, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by the Company or one or more of its Subsidiaries or by the Company and one or more of its Subsidiaries.

 

            (i)            "Transaction Documents" shall mean this Agreement, the Registration Rights Agreement and the Warrants.

2.            Purchase and Sale of Shares and Warrant.

 

            2.1            Shares and Warrants.  Subject to the satisfaction (or waiver) of the conditions set forth in Section 5 below, the Company shall issue and sell to each Investor, and each Investor severally, but not jointly, agrees to purchase from the Company on the Closing Date (as defined below), the number of Shares as is set forth opposite such Investor's name in column (3) on the Schedule of Investors, along with the Warrants to acquire that number of Warrant Shares as is set forth opposite such Investor's name in column (4) on the Schedule of Investors.

 

            2.2            Closing. The closing (the "Closing") of the purchase of the Shares and the Warrants by the Investors shall occur at the offices of Proskauer Rose LLP, 11 Times Square, New York, New York 10036.  The date and time of the Closing (the "Closing Date") shall be 10:00 a.m., New York City time, on December 12, 2014, subject to the notification of satisfaction (or waiver) of the conditions to the Closing set forth in Section 5 below (or such later date as is mutually agreed to by the Company and each Investor).  As used herein "Business Day" means any day other than a Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

 

            2.3            Purchase Price. The aggregate purchase price for the Shares and the Warrants to be purchased by each Investor (the "Purchase Price") shall be the amount set forth opposite such Investor's name in column (5) on the Schedule of Investors.  Each Investor shall pay $2.19 for each Share and the related Warrants to be purchased by such Investor at the Closing.

- 2 -

            2.4            Form of Payment. On the Closing Date, (A) each Investor shall pay its respective Purchase Price to the Company for the Shares and the Warrants to be issued and sold to such Investor at the Closing, by wire transfer of immediately available funds in accordance with the Company's written wire instructions and (B) the Company shall deliver to each Investor a stock certificate evidencing the Shares (in such amount as is set forth opposite such Investor's name in column (3) on the Schedule of Investors), along with the Warrants (exercisable for the number of shares of Common Stock as is set forth opposite such Investor's name in column (4) on the Schedule of Investors) duly executed on behalf of the Company, in each case registered in the name of such Investor or its designee.

 

3.            Representations and Warranties of the Company.  The Company hereby represents and warrants to each Investor as follows.

 

            3.1            Incorporation.  Each of the Company and the Subsidiaries is duly organized, validly existing and, where applicable as a legal concept, in good standing under the laws of the jurisdiction of its incorporation or organization and has all requisite corporate power and authority to carry on its business as now conducted.  Each of the Company and the Subsidiaries is qualified to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification, except where the failure to so qualify would not have a material adverse effect on the business, financial condition or results of operations of the Company and its Subsidiaries, taken as a whole (a "Material Adverse Effect").

 

            3.2            Capitalization.  The authorized capital stock of the Company consists of Fifty Million (50,000,000) shares of Common Stock and Five Million (5,000,000) shares of preferred stock, par value $0.01 per share, of the Company (the "Preferred Stock").  As of December 11, 2014, (i) 19,049,582 shares of Common Stock were issued and outstanding, all of which were validly issued, fully paid and nonassessable, (ii) zero (0) shares of Common Stock were held by the Company in its treasury and (iii) no shares of Preferred Stock were issued and outstanding.  The Company or a Subsidiary owns all of the capital stock of each Subsidiary, which capital stock is validly issued, fully paid and, where applicable as a legal concept, nonassessable.

            

 

            3.3            Authorization.  All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the Registration Rights Agreement and the consummation of the transactions contemplated herein and therein has been taken.  When executed and delivered by the Company and the Investors, each of this Agreement and the Registration Rights Agreement shall constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, and except as may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors' rights generally and by general equitable principles.  The Company has all requisite corporate power to enter into this Agreement and the Registration Rights Agreement and to carry out and perform its obligations under the terms of this Agreement and the Registration Rights Agreement.

- 3 -

            3.4            Valid Issuance of the Shares and Warrant Shares.  The Shares being purchased by the Investors hereunder will, upon issuance pursuant to the terms hereof, and the Warrant Shares will, upon exercise of the Warrants in accordance with their terms, be duly authorized, validly issued, fully paid and nonassessable.

            3.5            Consents.  All consents, approvals, orders and authorizations required on the part of the Company in connection with the execution, delivery or performance of this Agreement and the Registration Rights Agreement and the consummation of the transactions contemplated herein and therein have been obtained and will be effective as of the Closing Date, other than such filings required to be made after the Closing under applicable federal and state securities laws and the registration statement contemplated by the Registration Rights Agreement.

 

            3.6            No Conflict.  The execution and delivery of this Agreement and the Registration Rights Agreement by the Company and the consummation of the transactions contemplated hereby and thereby will not conflict with or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a benefit under (a) any provision of the Certificate of Incorporation or Bylaws of the Company or (b) any agreement or instrument, permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulation, applicable to the Company or its properties or assets other than, in the case of (b) above, any violation, default, right of termination, cancellation, acceleration or loss of benefits the occurrence of which would not be likely to have a Material Adverse Effect.

 

            3.7            Reports and Financial Statements.  The Company has previously made available to the Investors complete and accurate copies, as amended or supplemented, of the Company Commission Reports.  As of their respective dates, the Company Commission Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein as necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.  The audited financial statements and unaudited interim financial statements of the Company included in the Company Commission Reports, as of their respective dates, (a) complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the Commission with respect thereto as in effect as of the time of filing, (b) were prepared in accordance with United States generally accepted accounting principles applied on a consistent basis throughout the periods covered thereby (except as may be indicated therein or in the notes thereto, and in the case of quarterly financial statements, to the extent they may exclude footnotes or may be condensed or summary statements) and (c) fairly represented in all material respects the financial position of the Company as of the dates thereof and the results of operations and cash flows of the Company for the periods then ended (subject, in the case of unaudited statements, to normal year-end adjustments).

 

            3.8  Absence of Certain Changes or Events. As of the date hereof, there has been no material adverse change in the business, financial condition or results of operations of the Company, other than changes occurring in the ordinary course of business (which changes have not, individually or in the aggregate, had a Material Adverse Effect) since September 30, 2014, the date of the balance sheets included in the Company's Form 10-Q for the quarterly

- 4 -

 period ending September 30, 2014, except as disclosed by the Company on one or more Current Reports on Form 8-K.

 

            3.9            Exchange Act Registration; Listing.  The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed on the Nasdaq Global Select Market.  The Company currently meets the continuing eligibility requirements for listing on the Nasdaq Global Select Market and has not received any written notice from such market that it does not currently satisfy such requirements or that such continued listing is in any way threatened.  The Company has taken no action designed to, or which, to the knowledge of the Company, would reasonably be expected to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Nasdaq Global Select Market.

 

            3.10            Investment Company Status. The Company is not, and immediately after receipt of payment for the Shares and the Warrants issued under this Agreement will not be, an "investment company" or an entity "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended (the "Investment Company Act"), and shall conduct its business in a manner so that it will not become subject to the Investment Company Act.

 

            3.11            Form S-3.  The Company is eligible to register the Shares and Warrant Shares for resale in a secondary offering by each Investor on a registration statement on Form S-3 under the Securities Act.

 

            3.12            Brokers or Finders.  The Company has not incurred, and shall not incur, directly or indirectly, any liability for any brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement or any transaction contemplated hereby.

 

4.            Representations and Warranties of each Investor.  Each Investor hereby, severally and not jointly, represents and warrants to the Company with respect to himself/itself as follows:

 

            4.1            Incorporation.  Such Investor is duly organized, validly existing and, where applicable as a legal concept, in good standing under the laws of the jurisdiction of its incorporation or organization and has all requisite corporate power and authority to carry on its business as now conducted.

 

            4.2            Authorization.  All action on the part of such Investor and its Affiliates necessary for the authorization, execution, delivery and performance of this Agreement and the Registration Rights Agreement and the consummation of the transactions contemplated herein and therein has been taken.  When executed and delivered by the Company and the Investors, each of this Agreement and the Registration Rights Agreement shall constitute the legal, valid and binding obligation of such Investor, enforceable against such Investor in accordance with its terms, except as such may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors' rights generally and by general equitable principles.  Such Investor has all requisite power to enter into each of this Agreement and the Registration Rights Agreement and to carry out and perform its obligations under the terms of this Agreement and the Registration Rights Agreement.

- 5 -

            4.3            Purchase Entirely for Own Account, Etc.  Such Investor is acquiring the Securities for its own account, and not with a view to, or for sale in connection with, any distribution in violation of the Securities Act.  Except as contemplated by this Agreement, such Investor has no present agreement, undertaking, arrangement, obligation or commitment providing for the disposition of the Securities.  Such Investor has not been organized, reorganized or recapitalized specifically for the purpose of investing in the Securities.

            4.4            Investor Status, Etc.  Such Investor certifies and represents to the Company that at the time the Investor acquires any of the Securities, such Investor will be an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act.  Such Investor's financial condition is such that it is able to bear the risk of holding the Shares for an indefinite period of time and the risk of loss of its entire investment.  Such Investor has sufficient knowledge and experience in investing in companies similar to the Company so as to be able to evaluate the risks and merits of its investment in the Company.

 

            4.5            Information.  The Company has, prior to the date hereof, provided such Investor with information regarding the business, operations and financial condition of the Company and has, prior to the date hereof, granted to such Investor the opportunity to ask questions of and receive answers from representatives of the Company, its officers, directors, employees and agents concerning the Company and materials relating to the terms and conditions of the purchase and sale of the Shares and Warrants hereunder, in order for such Investor to make an informed decision with respect to its investment in the Shares and Warrants.  Neither such information nor any other investigation conducted by such Investor or any of its representatives shall modify, amend or otherwise affect such Investor's right to rely on the Company's representations and warranties contained in this Agreement.

 

            4.6            Securities Not Registered.  Such Investor understands that the Securities have not been registered under the Securities Act and that the Securities must continue to be held by such Investor unless a subsequent disposition thereof is registered under the Securities Act or is exempt from such registration.  Such Investor understands that the exemptions from registration afforded by Rule 144 (the provisions of which are known to it) promulgated under the Securities Act depend on the satisfaction of various conditions, and that, if applicable, Rule 144 may afford the basis for sales only in limited amounts.

 

            4.7            Reliance on Exemptions.  Such Investor understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations and warranties of such Investor set forth in this Article 4 in order to determine the availability of such exemptions and the eligibility of such Investor to acquire the Securities.  Such Investor is relying on the representations, acknowledgments and agreements made by the Company in Article 3 and elsewhere in this Agreement in making investing, trading and/or other decisions concerning the Company's securities.

 

              4.8    Non-Affiliate Status; Common Stock Ownership. Such Investor is not acting in association or concert with any other Person in regard to its purchase of Shares and Warrants or otherwise in respect of the Company. Such Investor's investment in Shares and

- 6 -

 

Warrants is not for the purpose of acquiring, directly or indirectly, control of, and it has no intent to acquire or exercise control of, the Company or to influence the decisions or policies of the Board of Directors of the Company.

 

            4.9     Consents.  All consents, approvals, orders and authorizations required on the part of such Investor in connection with the execution, delivery or performance of this Agreement and the consummation of the transactions contemplated herein have been obtained and are effective as of the Closing Date.

 

            4.10         No Conflict.  The execution and delivery of this Agreement and the Registration Rights Agreement by such Investor and the consummation of the transactions contemplated hereby and thereby will not conflict with or result in any violation of or default by such Investor (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit under (a) any provision of the organizational documents of such Investor or (b) any agreement or instrument, permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to the Investor or its properties or assets other than, in the case of (b) above, any violation, default, right of termination, cancellation, acceleration or loss of benefits the occurrence of which would not be likely to have a material adverse effect on the business, financial condition or results of operations of such Investor.

 

            4.11         Brokers or Finders.  Such Investor has not incurred, and shall not incur, directly or indirectly, any liability for any brokerage or finders' fees or agents' commissions or any similar charges in connection with this Agreement or any transaction contemplated hereby.

 

5.            Conditions Precedent.

 

            5.1            Conditions to the Obligation of each Investor to Consummate the Closing.  The obligation of each Investor to consummate the Closing and to purchase and pay for the Shares and Warrants being purchased by it pursuant to this Agreement is subject to the satisfaction of the following conditions precedent:

            (a)            The representations and warranties contained herein of the Company shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date (it being understood and agreed by each Investor that, in the case of any representation and warranty of the Company contained herein (i) which is not hereinabove qualified by application thereto of a materiality standard, such representation and warranty need be true and correct only in all material respects in order to satisfy as to such representation or warranty the condition precedent set forth in the foregoing provisions of this Section 5.1(a) or (ii) which is made as of a specific date, such representation and warranty need be true and correct only as of such specific date in order to satisfy as to such representation and warranty the condition precedent set forth in the foregoing provisions of this Section 5.1(a)).

 

            (b)            The Registration Rights Agreement shall have been executed and delivered by the Company.

 

 

7

 

            (c)            The Company shall have performed in all material respects all obligations and conditions herein required to be performed or observed by the Company on or prior to the Closing Date.

 

            (d)            No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall be pending.

 

            (e)            The purchase of and payment for the Shares and the Warrants by such Investor shall not be prohibited by any law or governmental order or regulation.

 

            (f)            All instruments and corporate proceedings in connection with the transactions contemplated by this Agreement to be consummated at the Closing shall be satisfactory in form and substance to such Investor, and such Investor shall have received copies (executed or certified, as may be appropriate) of all documents which such Investor may have reasonably requested in connection with such transactions.

 

            5.2            Conditions to the Obligation of the Company to Consummate the Closing.  The obligation of the Company to consummate the Closing and to issue and sell to each Investor the Shares and the Warrants to be purchased by it at the Closing is subject to the satisfaction of the following conditions precedent:

 

            (a)            The representations and warranties contained herein of such Investor shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date (it being understood and agreed by the Company that, in the case of any representation and warranty of such Investor contained herein which is not hereinabove qualified by application thereto of a materiality standard, such representation and warranty need be true and correct only in all material respects in order to satisfy as to such representation or warranty the condition precedent set forth in the foregoing provisions of this Section 5.2(a)).

 

            (b)            The Registration Rights Agreement shall have been executed and delivered by such Investor.

 

            (c)            Such Investor shall have performed in all material respects all obligations and conditions herein required to be performed or observed by such Investor on or prior to the Closing Date.

 

            (d)            No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall be pending.

 

            (e)     The sale of the Shares and the Warrants by the Company shall not be prohibited by any law or governmental order or regulation.

 

            (f)            All instruments and corporate proceedings in connection with the transactions contemplated by this Agreement to be consummated at the Closing shall be

 

 

8

 

satisfactory in form and substance to the Company, and the Company shall have received copies (executed or certified, as may be appropriate) of all documents which the Company may have reasonably requested in connection with such transactions.

 

6.            Transfer, Legends, Short Positions.

 

            6.1            Securities Law Transfer Restrictions.  No Investor shall sell, assign, pledge, transfer or otherwise dispose of or encumber any of the Securities, except (i) pursuant to an effective registration statement under the Securities Act or (ii) pursuant to an available exemption from registration under the Securities Act and applicable state securities laws and, if requested by the Company, upon delivery by such Investor of an opinion of counsel reasonably satisfactory to the Company to the effect that the proposed transfer is exempt from registration under the Securities Act and applicable state securities laws.  Any transfer or purported transfer of the Shares or Warrants in violation of this Section 6.1 shall be voidable by the Company.  The Company shall not register any transfer of the Shares or Warrants in violation of this Section 6.1.  The Company may, and may instruct any transfer agent for the Company to, place such stop transfer orders as may be required on the transfer books of the Company in order to ensure compliance with the provisions of this Section 6.1.

 

            6.2            Legends.  Certificates representing the Shares and Warrant Shares shall be endorsed with the legends set forth below, and each Investor covenants that, except to the extent such restrictions are waived by the Company, it shall not transfer any shares represented by any such certificate without complying with the restrictions on transfer described in this Agreement and the legends endorsed on such certificates: "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER SAID ACT AND, IF REQUESTED BY THE COMPANY, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM SAID ACT."

 

            6.3            Short Positions.  Each Investor covenants and agrees that, so long as such Investor owns any Shares, such Investor and its Affiliates, taken as a whole, shall not maintain a net short position in the Common Stock (as determined under Regulation SHO under the Exchange Act ("Regulation SHO") taking into account all positions of such Investor and its Affiliates whether or not such Investor and its Affiliates otherwise would constitute an independent trading unit under Regulation SHO) (a "Net Short Position").  Each Investor covenants and agrees, severally and not jointly, to provide the Company with written notice within one (1) Business Day of any establishment by it and its Affiliates, taken as a whole, of a Net Short Position.

 

7.            Miscellaneous Provisions.

 

            7.1            Further Assurances.  The parties agree to cooperate fully with the other parties and to execute such further instruments, documents and agreements and to give such further written assurances, as may be reasonably requested by the other parties to better evidence 

 

 

9

 

and reflect the transactions described herein and contemplated hereby, and to carry into effect the intents and purposes of this Agreement.

 

            7.2            Expenses.  Each party will bear its own costs and expenses in connection with this Agreement.

 

            7.3            Notices.  Any notice, demand or request required or permitted to be given by the Company or an Investor pursuant to the terms of this Agreement shall be in writing and shall be deemed delivered (i) when delivered personally or by verifiable facsimile transmission, unless such delivery is made on a day that is not a Business Day, in which case such delivery will be deemed to be made on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a reputable overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid), addressed as follows:

 

                  If to the Company:

                  PhotoMedex, Inc.

                  100 Lakeside Drive, Ste. 100

                  Horsham, PA 19044

                  Attention: Chief Financial Officer

                  Facsimile: (215) 619-3209

                  If to a Investor, to its address and facsimile number set forth on the Schedule of Investors, with copies to such Investor's representatives as set forth on the Schedule of Investors,

            7.4            Severability.  Should any part or provision of this Agreement be held unenforceable or in conflict with the applicable laws or regulations of any jurisdiction, the invalid or unenforceable part or provisions shall be replaced with a provision which accomplishes, to the extent possible, the original business purpose of such part or provision in a valid and enforceable manner, and the remainder of this Agreement shall remain binding upon the parties hereto.

 

            7.5            No Reliance.  Each party acknowledges that (i) it has such knowledge in business and financial matters as to be fully capable of evaluating this Agreement, the other Transaction Documents and the transactions contemplated hereby and thereby, (ii) it is not relying on any advice or representation of any other party in connection with entering into this Agreement, the other Transaction Documents or such transactions (other than the representations made in this Agreement or the other Transaction Documents), (iii) it has not received from any other party any assurance or guarantee as to the merits (whether legal, regulatory, tax, financial or otherwise) of entering into this Agreement or the other Transaction Documents or the performance of its obligations hereunder and thereunder, and (iv) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisors to the extent that it has deemed necessary, and has entered into this Agreement and the other Transaction Documents based on its own independent judgment and on the advice of its advisors as it has deemed necessary, and not on any view (whether written or oral) expressed by any other party.

10

            7.6            Independent Nature of Investors' Obligations and Rights.  The obligations of each Investor hereunder are several and not joint with the obligations of the other Investors hereunder, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor hereunder.  Nothing contained herein or in any other agreement or document delivered at any Closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or a "group" as described in Section 13(d) of the Exchange Act, or create a presumption that the Investors are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement.  Each Investor has been represented by its own separate counsel in connection with the transactions contemplated hereby, shall be entitled to protect and enforce its rights, including without limitation rights arising out of this Agreement or the other Transaction Documents, individually, and shall not be required to be join any other Investor as an additional party in any proceeding for such purpose.

            7.7            Amendment; Waiver.  Except as expressly provided herein, neither this Agreement nor any term hereof may be amended or waived except pursuant to a written instrument executed by the Company and the Investors.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Investor and the Company.  The failure of any party to exercise any right or remedy under this Agreement or otherwise, or the delay by any party in exercising such right or remedy, shall not operate as a waiver thereof.  No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement.

 

            7.8            Assignment.  The rights and obligations of the parties hereto shall inure to the benefit of and shall be binding upon the authorized successors and permitted assigns of each party.  No party hereto may assign its rights or obligations under this Agreement or designate another person (i) to perform all or part of its obligations under this Agreement or (ii) to have all or part of its rights and benefits under this Agreement, in each case without the prior written consent of the other parties.  In the event of any assignment in accordance with the terms of this Agreement, the assignee shall specifically assume and be bound by the provisions of the Agreement by executing and agreeing to an assumption agreement reasonably acceptable to the other parties.

 

            7.9            Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall be deemed one and the same instrument.  This Agreement, once executed by a party, may be delivered to any other party hereto by facsimile transmission.

 

            7.10            Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within the State of Nevada.

 

            7.11            Survival.  The respective representations and warranties given by the parties hereto, and the other covenants and agreements contained herein, shall survive the

 

 

11

Closing Date and the consummation of the transactions contemplated herein for a period of two years.

 

            7.12            Pronouns.  All pronouns or any variation thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require.

 

            7.13            Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

            7.14            Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

            7.15            Entire Agreement.   This Agreement, the Registration Rights Agreement and the Warrants constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.  This Agreement, the Registration Rights Agreement and the Warrants supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

12

IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal as of the day and year first above written.

PHOTOMEDEX, INC.

By:            __________________________

Name: Dennis M. McGrath

Title:   President & Chief Financial Officer

[INVESTOR]

By:            __________________________

Name:

Title:

13

SCHEDULE OF INVESTORS

	
(1)

	
(2)

	
(3)

	
(4)

	
(5)

	
(6)

	 	 	 	 	 	 
	

 

Investor

	

 

Address and Facsimile Number

	

 

Aggregate Amount of Shares

	

 

Aggregate Number of Warrant Shares

	
Aggregate Purchase Price

	
Legal Representative's

Address and Facsimile Number

	 	 	 	 	 	 
	
Charles Frisher, accredited high net worth investor, shareholder

 

	
 [address redacted]

 

	
100,000

	
50,000

	
$219,000.00

	 
	
Neal Goldman, accredited high net worth investor, shareholder

 

	
 [address redacted]

	
50,000

	
25,000

	
$109,500.00

	 
	
James Sight, Board Member

	
 [address redacted]

 

	
150,000

	
75,000

	
$328,500.00

	 
	
Yoav Ben-Dror, Board Member

	
 [address redacted]

 

	
115,000

	
57,500

	
$251,850.00

	 
	
Lewis C. Pell, Board Member

	
 [address redacted]

 

	
230,000

	
115,000

	
$503,700.00

	 

EXHIBIT A

[FORM OF WARRANT]

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR THE CORPORATION HAS BEEN FURNISHED WITH AN OPINION OF LEGAL COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER. SUBJECT TO COMPLIANCE WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT (I) MAY BE PLEDGED OR HYPOTHECATED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THIS WARRANT OR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT AND (II) MAY BE TRANSFERRED OR ASSIGNED TO AN AFFILIATE OF THE HOLDER HEREOF.

WARRANT

TO PURCHASE COMMON STOCK 

OF

PHOTOMEDEX, INC.

Issue Date:  December __, 2014  Warrant No. 2014-__

THIS CERTIFIES that [____________] and its permitted assigns (the "Holder"), has the right to purchase from PHOTOMEDEX, INC., a Nevada corporation (the "Company"), upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, up to [__________] fully paid and nonassessable shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), subject to adjustment as provided herein, at a price per share equal to the Exercise Price (as defined below), at any time and from time to time beginning on December 12, 2015 and ending at 6:00 p.m., Eastern time, on December 12, 2017 (the "Expiration Date").  This Warrant is issued pursuant to a Securities Purchase Agreement, dated as of December 12, 2014 (the "Securities Purchase Agreement").

1.            Exercise.

(a)            Right to Exercise; Exercise Price.  The Holder shall have the right to exercise this Warrant at any time and from time to time during the period beginning on December 12, 2015 and ending on the Expiration Date as to all or any part of the shares of Common Stock covered hereby (the "Warrant Shares").  The "Exercise Price" for each Warrant Share purchased by the Holder upon the exercise of this Warrant shall be equal to $2.25 subject to adjustment for the events specified in Section 4 below.

(b)            Exercise Notice.  In order to exercise this Warrant, the Holder shall send to the Company by facsimile transmission, at any time prior to 6:00 p.m., eastern time, on the business day on which the Holder wishes to effect such exercise (the "Exercise Date"), (i) a notice of exercise in substantially the form attached hereto as Exhibit A (the "Exercise Notice"), and (ii) a copy of the original Warrant, and, in the case of a Cash Exercise (as defined below), the Holder shall pay the Exercise Price to the Company by wire transfer.  The Exercise Notice shall state the name or names in which the shares of Common Stock that are issuable on such exercise shall be issued.  In the case of a dispute between the Company and the Holder as to the calculation of the Exercise Price or the number of Warrant Shares issuable hereunder (including, without limitation, the calculation of any adjustment pursuant to Section 4 below), the Company shall issue to the Holder the number of Warrant Shares that are not disputed within the time periods specified in Section 2 below and shall submit the disputed calculations to a certified public accounting firm of national reputation (other than the Company's regularly retained accountants) within two (2) business days following the date on which the Holder's Exercise Notice is delivered to the Company.  The Company shall cause such accountant to calculate the Exercise Price and/or the number of Warrant Shares issuable hereunder and to notify the Company and the Holder of the results in writing no later than three (3) business days following the day on which such accountant received the disputed calculations (the "Dispute Procedure"). Such accountant's calculation shall be deemed conclusive absent manifest error.  The fees of any such accountant shall be borne by the party whose calculations were most at variance with those of such accountant.

(c)            Holder of Record.  The Holder shall, for all purposes, be deemed to have become the holder of record of the Warrant Shares specified in an Exercise Notice on the Exercise Date specified therein, irrespective of the date of delivery of such Warrant Shares.  Except as specifically provided herein, nothing in this Warrant shall be construed as conferring upon the Holder hereof any rights as a stockholder of the Company prior to the Exercise Date.

(d)            Cancellation of Warrant.  This Warrant shall be canceled upon its exercise in full and, if this Warrant is exercised in part, the Company shall, at the time that it delivers Warrant Shares to the Holder pursuant to such exercise as provided herein, issue a new warrant, and deliver to the Holder a certificate representing such new warrant, with terms identical in all respects to this Warrant (except that such new warrant shall be exercisable into the number of shares of Common Stock with respect to which this Warrant shall remain unexercised); provided, however, that the Holder shall be entitled to exercise all or any portion of such new warrant at any time following the time at which this Warrant is exercised, regardless of whether the Company has actually issued such new warrant or delivered to the Holder a certificate therefor.

2

2.            Delivery of Warrant Shares Upon Exercise.  Upon receipt of an Exercise Notice pursuant to Section 1 above, the Company shall, (A) in the case of a Cash Exercise, no later than the close of business on the later to occur of (i) the third (3rd) Trading Day (as defined below) following the Exercise Date specified in such Exercise Notice and (ii) the date on which the Company shall have received payment of the Exercise Price, (B) in the case of a Cashless Exercise (as defined below), no later than the close of business on the third (3rd) Trading Day following the Exercise Date specified in such Exercise Notice, and (C) with respect to Warrant Shares that are the subject of a Dispute Procedure, the close of business on the third (3rd) business day following the determination made pursuant to Section 1(b) (each of the dates specified in (A), (B) or (C) being referred to as a "Delivery Date"), issue and deliver or caused to be delivered to the Holder the number of Warrant Shares as shall be determined as provided herein.  The Company shall effect delivery of Warrant Shares to the Holder, as long as the Company's designated transfer agent or co-transfer agent in the United States for the Common Stock (the "Transfer Agent") participates in the Depository Trust Company ("DTC") Fast Automated Securities Transfer program ("FAST") and no restrictive legend is required pursuant to the terms of this Warrant, the Securities Purchase Agreement or the Securities Act of 1933, as amended (the "Securities Act"), by crediting the account of the Holder or its nominee at DTC (as specified in the applicable Exercise Notice) with the number of Warrant Shares required to be delivered, no later than the close of business on such Delivery Date.  In the event that the Transfer Agent is not a participant in FAST, if the Holder so specifies in a Exercise Notice or otherwise in writing on or before the Exercise Date or if a restrictive legend is required pursuant to the terms of this Warrant, the Securities Purchase Agreement or the Securities Act, the Company shall effect delivery of Warrant Shares by delivering to the Holder or its nominee physical certificates representing such Warrant Shares, no later than the close of business on such Delivery Date.  Warrant Shares delivered to the Holder shall not contain any restrictive legend unless such legend is required pursuant to the Securities Act.

3.            Payment of the Exercise Price; Cashless Exercise.  The Holder may pay the Exercise Price in either of the following forms or, at the election of Holder, a combination thereof:

(a)            through a cash exercise (a "Cash Exercise") by delivering immediately available funds, or

(b)            if an effective Registration Statement is not available for the resale of all of the Warrant Shares issuable hereunder at the time an Exercise Notice is delivered to the Company, through a cashless exercise (a "Cashless Exercise"), as hereinafter provided.  The Holder may effect a Cashless Exercise by surrendering this Warrant to the Company and noting on the Exercise Notice that the Holder wishes to effect a Cashless Exercise, upon which the Company shall issue to the Holder the number of Warrant Shares determined as follows:

X = Y x (A-B)/A

	where:	X = the number of Warrant Shares to be issued to the Holder;

3

Y = the number of Warrant Shares with respect to which this Warrant is being exercised (which shall include both the number of Warrant Shares issued to the Holder and the number of Warrant Shares subject to the portion of the Warrant being cancelled in payment of the Exercise Price);

A = the Market Price (as defined below) as of the Exercise Date; and

B = the Exercise Price.

(c)            When used herein, the following terms shall have the respective meanings indicated:

(i)            "Market Price" means, as of a particular date, the average of the daily VWAP on each of the five (5) consecutive Trading Days occurring immediately prior to (but not including) such date.

(ii)            "VWAP" on a Trading Day means the volume weighted average price of the Common Stock for such Trading Day on the Principal Market as reported by Bloomberg Financial Markets or, if Bloomberg Financial Markets is not then reporting such prices, by a comparable reporting service of national reputation selected by the Holder and reasonably satisfactory to the Company.  If the Common Stock is not listed on an exchange or market as of the Exercise Date, the Market Price shall be deemed to be the amount most recently determined by the Board of Directors of the Company (the "Board") to represent the fair market value per share of the Common Stock (including without limitation a determination for purposes of granting Common Stock options or issuing Common Stock under any plan, agreement or arrangement with employees of the Company); and, upon request of the Holder, the Board (or a representative thereof) shall, as promptly as reasonably practicable but in any event not later than 10 days after such request, notify the Holder of the Market Price and furnish the Holder with reasonable documentation of the Board's determination of such Market Price.  Notwithstanding the foregoing, if the Board has not made such a determination within the three-month period prior to the Exercise Date, then (A) the Board shall make, and shall provide or cause to be provided to the Holder notice of, a determination of the Market Price within 15 days of a request by the Holder that it do so, and (B) the exercise of this Warrant pursuant to Section 3(b) shall be delayed until such determination is made and notice thereof is provided to the Holder.  All such determinations shall be appropriately adjusted for any stock dividend, stock split or other similar transaction during such period.

(iii)            "Principal Market" means the principal exchange or market on which the Common Stock is listed or traded.

(iv)            "Trading Day" means any day on which the Common Stock is purchased and sold on the Principal Market.

4.            Anti-Dilution Adjustments; Distributions; Other Events. The Exercise Price and the number of Warrant Shares issuable hereunder shall be subject to adjustment from time to time as provided in this Section 4.  In the event that any adjustment of the Exercise Price required herein results in a fraction of a cent, the Exercise Price shall be rounded up or down to the nearest one hundredth of a cent.

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(a)            Subdivision or Combination of Common Stock.  If the Company, at any time after the date on which this Warrant is originally issued (the "Issue Date"), subdivides (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) the outstanding shares of Common Stock into a greater number of shares, then, effective upon the close of business on the record date for effecting such subdivision, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced.  If the Company, at any time after the Issue Date, combines (by reverse stock split, recapitalization, reorganization, reclassification or otherwise) the outstanding shares of Common Stock into a smaller number of shares, then, effective upon the close of business on the record date for effecting such combination, the Exercise Price in effect immediately prior to such combination will be proportionally increased.

(b)            Distributions.  If, at any time after the Issue Date, the Company declares or makes any distribution of cash or any other assets (or rights to acquire such assets) to holders of Common Stock, including without limitation any dividend or distribution to the Company's stockholders in shares (or rights to acquire shares) of capital stock of a subsidiary (a "Distribution"), the Company shall deliver written notice of such Distribution (a "Distribution Notice") to the Holder at least fifteen (15) days prior to the earlier to occur of (i) the record date for determining stockholders entitled to such Distribution (the "Record Date") and (ii) the date on which such Distribution is made (the "Distribution Date") (the earlier of such dates being referred to as the "Determination Date").  In the Distribution Notice to a Holder, the Company shall indicate whether the Company has elected (A) to deliver to such Holder, upon any exercise of this Warrant on or after the Determination Date, the same amount and type of assets (including, without limitation, cash) being distributed as though the Holder were, on the Determination Date, a holder of a number of shares of Common Stock into which this Warrant is exercisable as of such Determination Date (such number of shares to be determined without giving effect to any limitations on such exercise) or (B) upon any exercise of this Warrant on or after the Determination Date, to reduce the Exercise Price applicable to such exercise by reducing the Exercise Price in effect on the business day immediately preceding the Record Date by an amount equal to the fair market value of the assets to be distributed divided by the number of shares of Common Stock as to which such Distribution is to be made, such fair market value to be reasonably determined in good faith by the Company's Board of Directors.  If the Company does not notify the Holders of its election pursuant to the preceding sentence on or prior to the Determination Date, the Company shall be deemed to have elected clause (A) of the preceding sentence.

(c)            Major Transactions.  In the event of a merger, consolidation, business combination, tender offer, exchange of shares, recapitalization, reorganization, redemption or other similar event, as a result of which shares of Common Stock shall be changed into the same or a different number of shares of the same or another class or classes of stock or securities or other assets of the Company or another entity or the Company shall sell all or substantially all of its assets (each of the foregoing, other than a transaction described in Sections 4(a) and 4(b), being a "Major Transaction"), the Company will give the Holder at least ten (10) Trading Days written notice prior to the earlier of (x) the closing or effectiveness of such Major Transaction and (y) the record date for the receipt of such shares of stock or securities or other assets.  In the

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event of a Major Transaction, the Holder shall be permitted (but not required) to exercise this Warrant in whole or in part at any time prior to the record date for the receipt of suchconsideration and shall be entitled to receive, for each share of Common Stock issuable to the Holder upon such exercise, the same per share consideration payable to the other holders of Common Stock in connection with such Major Transaction. If and to the extent any portion of this Warrant remains unexercised following such record date, such portion shall be cancelled in its entirety.

(d)            Adjustments; Additional Shares, Securities or Assets.  In the event that at any time, as a result of an adjustment made pursuant to this Section 4, the Holder of this Warrant shall, upon exercise of this Warrant, become entitled to receive securities or assets (other than Common Stock), then, wherever appropriate, all references herein to shares of Common Stock shall be deemed to refer to and include such shares and/or other securities or assets; and thereafter the number of such shares and/or other securities or assets shall be subject to adjustment from time to time in a manner and upon terms as nearly equivalent as practicable to the provisions of this Section 4.  Any adjustment made herein pursuant to Section 4(a) that results in a decrease in the Exercise Price shall also effect a proportional increase in the number of shares of Common Stock into which this Warrant is exercisable.

5.            Forced Exercise.

(a)            Forced Exercise.  If at any time from and after the Issuance Date (the "Forced Exercise Eligibility Date"), the arithmetic average of the VWAP of the Common Stock for any twenty (20) Trading Days during a consecutive twenty (20) Trading Day period that commences following the Forced Exercise Eligibility Date (the "Forced Exercise Measuring Period") equals or exceeds $5.00 (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the Issuance Date), the Company shall have the right to require the Holder to exercise all or any portion of the unexercised portion of this Warrant, in each case as designated in the Forced Exercise Notice (as defined below) into fully paid, validly issued and nonassessable shares of Common Stock in accordance with Section 1 hereof at the Exercise Price as of the Forced Exercise Date (as defined below) (a "Forced Exercise").  The Company may exercise its right to require Forced Exercise under this Section 5 by delivering within not more than two (2) Trading Days following the end of such Forced Exercise Measuring Period a written notice thereof by facsimile and overnight courier to all, but not less than all, of the holders of Warrants and the Transfer Agent (the "Forced Exercise Notice" and the date all of the holders received such notice by facsimile is referred to as the "Forced Exercise Notice Date").  The Forced Exercise Notice shall be irrevocable.  The Forced Exercise Notice shall state (A) the Trading Day selected for the Forced Exercise, which Trading Day shall be no sooner than twenty (20) Trading Days nor later than forty (40) Trading Days following the Forced Exercise Notice Date (the "Forced Exercise Date"), (B) the aggregate number of Warrant Shares subject to Forced Exercise from the Holder (the "Forced Exercise Share Number") and all of the holders of the Warrants pursuant to this Section 5 (the "Holders'Aggregate Forced Exercise Share Number") (and analogous provisions under the other Warrants), and (C) the number of shares of Common Stock to be issued to the Holder on the Forced Exercise Date.  Notwithstanding the foregoing, the Company may not deliver more than two (2) Forced Exercise Notices hereunder and a Forced Exercise Notice may not be

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delivered until at least thirty (30) Trading Days after the immediately preceding Forced Exercise Date.  Notwithstanding the foregoing, nothing in this subsection shall prevent the Holder from exercising this Warrant, in whole or part, on or prior to the Forced Exercise Date.  The Company

covenants and agrees that it will honor all Exercise Notices tendered from the time of delivery of the Forced Exercise Notice through the Forced Exercise Date.

(b)            Pro Rata Forced Exercise Requirement.  If the Company elects a Forced Exercise of this Warrant pursuant to Section 5(a), then it must simultaneously take the same action in the same proportion with respect to all of the Warrants.  If  the Company elects a Forced Exercise of this Warrant pursuant to Section 5(a) (or similar provisions under the other Warrants) with respect to less than all of the Warrant Shares then outstanding under this Warrant, then the Company shall require a forced exercise of a number of Warrant Shares from each of the holders of the Warrants equal to each Holders' Pro Rata Amount of the total number of warrant shares subject to such Forced Exercise pursuant to all of the Warrants (such fraction with respect to each Holder is referred to as its "Forced Exercise Allocation Percentage," and such amount with respect to each Holder is referred to as its "Pro Rata Forced Exercise Amount"); provided, however, that in the event that any Holder's Pro Rata Forced Exercise Amount exceeds the outstanding number of warrant shares of such holder's Warrant, then such excess Pro Rata Forced Exercise Amount shall be allocated amongst the remaining holders of Warrants in accordance with the foregoing formula.  In the event that the initial holder of any Warrants shall sell or otherwise transfer any of such Holder's Warrants, the transferee shall be allocated a pro rata portion of such Holder's Forced Exercise Allocation Percentage and the Pro Rata Forced Exercise Amount.

6.            Fractional Interests.

No fractional shares or scrip representing fractional shares shall be issuable upon the exercise of this Warrant, but on exercise of this Warrant, the Holder hereof may purchase only a whole number of shares of Common Stock.  If, on exercise of this Warrant, the Holder hereof would be entitled to a fractional share of Common Stock or a right to acquire a fractional share of Common Stock, the Company shall, in lieu of issuing any such fractional share, pay to the Holder an amount in cash equal to the product resulting from multiplying such fraction by the Market Price as of the Exercise Date.

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7.            Transfer of this Warrant.

The Holder may sell, transfer, assign, pledge or otherwise dispose of this Warrant, in whole or in part, as long as such transfer or other disposition is made pursuant to an effective registration statement or an exemption from the registration requirements of the Securities Act of 1933, as amended, and is otherwise made in accordance with the applicable provisions of the Securities Purchase Agreement.  Upon such transfer or other disposition (other than a pledge), the Holder shall deliver this Warrant to the Company together with a written notice to the Company, substantially in the form of the Transfer Notice attached hereto as Exhibit B (the "Transfer Notice"), indicating the person or persons to whom this Warrant shall be transferred and, if less than all of this Warrant is transferred, the number of Warrant Shares to be covered by the part of this Warrant to be transferred to each such person. Within three (3) business days of receiving a Transfer Notice and the original of this Warrant, the Company shall deliver to the each transferee designated by the Holder a Warrant or Warrants of like tenor and terms for the appropriate number of Warrant Shares and, if less than all this Warrant is transferred, shall deliver to the Holder a Warrant for the remaining number of Warrant Shares.

8.            Benefits of this Warrant.

This Warrant shall be for the sole and exclusive benefit of the Holder of this Warrant and nothing in this Warrant shall be construed to confer upon any person other than the Holder of this Warrant any legal or equitable right, remedy or claim hereunder.

9.            Reservation of Stock.  The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of this Warrant, such number of Warrant Shares and other securities, cash and/or property, as from time to time shall be issuable upon the exercise of this Warrant.

10.            Loss, theft, destruction or mutilation of Warrant.

Upon receipt by the Company of evidence of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of indemnity reasonably satisfactory to the Company, and upon surrender of this Warrant, if mutilated, the Company shall execute and deliver a new Warrant of like tenor and date.

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11.            No Rights as Stockholder.

Until the exercise of this Warrant, the Holder shall not have or exercise any rights by virtue hereof as a stockholder of the Company.  Notwithstanding the foregoing, in the event (i) the Company effects a split of the Common Stock by means of a stock dividend and the Exercise Price of and the number of Warrant Shares are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), and (ii) the Holder exercises this Warrant between the record date and the distribution date for such stock dividend, the Holder shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend.

12.            Notice or Demands.

Any notice, demand or request required or permitted to be given by the Company or the Holder pursuant to the terms of this Warrant shall be in writing and shall be deemed delivered (i) when delivered personally or by verifiable facsimile transmission, unless such delivery is made on a day that is not a business day, in which case such delivery will be deemed to be made on the next succeeding business day, (ii) on the next business day after timely delivery to an overnight courier and (iii) on the business day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid), addressed as follows:

If to the Company:

PhotoMedex, Inc.

100 Lakeside Drive, Ste. 100

Horsham, PA 19044

Attention: Chief Financial Officer

Facsimile: (215) 619-3209

and if to the Holder, at such address as the Holder shall have furnished the Company in writing.

13.            Amendments.

Neither this Warrant nor any term hereof may be amended or waived except pursuant to a written instrument executed by the Company and  the Warrant Holders holding warrants issued by the Company pursuant to the Securities Purchase Agreement which are exercisable for at least two-thirds (2/3) of the number of shares into which all of the then outstanding warrants issued by the Company pursuant to the Securities Purchase Agreement are exercisable (without regard to any limitation contained herein on such exercise).  Any amendment or waiver effected in accordance with this Section 11 shall be binding upon each Warrant Holder, each future Warrant Holder and the Company.  Notwithstanding the foregoing, this Warrant may be amended and the observance of any term hereunder may be waived without the written consent of the Holder only if such amendment and waiver applies to the warrants issued to Warrant Holders pursuant to the Securities Purchase Agreement all in the same fashion. 

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 The failure of any party to exercise any right or remedy under this Warrant or otherwise, or the delay by any party in exercising such right or remedy, shall not operate as a waiver thereof.  No waiver of any term, provision or condition of this Warrant, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Warrant.

14.            Applicable Law.

This Warrant is issued under and shall for all purposes be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within the State of Nevada.

15.            Pronouns.  All pronouns or any variation thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require.

 

16.            Headings.  The headings in this Warrant are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

17.            Entire Agreement.

 

This Warrant, the Securities Purchase Agreement and the Registration Rights Agreement (as defined in the Securities Purchase Agreement) (the "Transaction Documents") constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.  This Warrant, the Securities Purchase Agreement and the Registration Rights Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

[Signature Page to Follow]

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IN WITNESS WHEREOF, the Company has duly executed and delivered this Warrant as of the Issue Date.

PHOTOMEDEX, INC.

By:            __________________________

                                                                                                                      Name: Dennis M. McGrath

Title: President & Chief Financial Officer

 

EXHIBIT A to WARRANT

EXERCISE NOTICE

The undersigned Holder hereby irrevocably exercises the right to purchase                 of the shares of Common Stock ("Warrant Shares") of ___________________________ evidenced by the attached Warrant (the "Warrant").  Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

1.            Form of Exercise Price.  The Holder intends that payment of the Exercise Price shall be made as:

______ a Cash Exercise with respect to _________________ Warrant Shares; and/or

______ a Cashless Exercise with respect to _________________ Warrant Shares, as permitted by Section 3(b) of the attached Warrant.

2.            Payment of Exercise Price.  In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the sum of $________________ to the Company in accordance with the terms of the Warrant.

Date: ______________________

___________________________________

Name of Registered Holder

By:  _______________________________

       Name:

       Title:

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EXHIBIT B to WARRANT

TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder of the attached Warrant hereby sells, assigns and transfers unto the person or persons named below the right to purchase            shares of the Common Stock of _____________________ evidenced by the attached Warrant.

Date: ______________________

___________________________________

Name of Registered Holder

By:  _______________________________

       Name:

       Title:

Transferee Name and Address:

                                                                                                  

                                                                                                  

                                                                                                  

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