Document:

Unassociated Document

    Execuserve
Corp.

    Independent
Sales Representative Agreement

    

    THIS AGREEMENT is made and
entered into this 15 day of June, 2010 and between Execuserve Corp., a Virginia
Corporation, having its principal place of business at 6688 Main Street,
Gloucester VA 23061 (hereinafter referred to as “EXECUSERVE”) and EPC, LLC,
having its principal place of business at Box 456, Mathews, VA 23109 (“Sales
Representative.”)

    

    RECITALS

    

    
      	
            	
              A.

            	
              EXECUSERVE
      is in the business of providing workforce automation services to its
      customers and desires to retain Sales Representative on a non-exclusive
      basis to secure new customers for its workforce automation
      services.

            

    

    

    
      	
            	
              B.

            	
              Sales
      Representative desires to sell Execuserve’s workforce automation services
      to new customers and has the professional expertise to sell and market
      workforce automation services.

            

    

    

    
      	
            	
              C.

            	
              “EXECUSERVE”
      shall also mean to include tests from eSkill and Understanding Corp, as
      well as the eLearnNow LMS system when EXECUSERVE utilizes one to provide
      service.

            

    

    

    NOW
THEREFORE, in consideration of the mutual covenants and promises made herein,
the parties agree as follows:

    

    
      	
              1.

            	
              TERM
      AND TERMINATION

            

    

    

    
      	
            	
              1.1

            	
              Term of
      Agreement.  Except as otherwise provided herein, the term
      (the “Term”) of this Agreement shall be for a period of one (1) year,
      commencing on June 1, 2010, upon execution of this
      agreement.  Thereafter, the Agreement shall remain in force and
      effect unless and until terminated by either party upon thirty (30) day’s
      written notice to the other party.

            

    

    

    
      	
            	
              1.2

            	
              Termination for
      Cause.  Notwithstanding anything to the contrary
      contained herein, EXECUSERVE may terminate this Agreement at any time
      during the Term immediately upon written notice,
      to the Sales Representative in the event
that:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Sales
      Representative makes (or is discovered to have made) any material
      false   representations, reports, or claims to EXECUSERVE
      or to any third party in connection with this Agreement, the services of
      EXECUSERVE, or EXECUSERVE as a whole;
or

            

    

    

    
      	
               
      

            	
              (b)

            	
              Sales
      Representative engages in fraudulent, criminal or negligent conduct or
      violates any laws in the connection with the business relationship of the
      parties or the performance of its services hereunder;
  or

            

    

    

    
      	
               
      

            	
              (c)

            	
              Sales
      Representative attempts to assign this Agreement or any of Sales
      Representative’s duties under this Agreement to another
    party.

            

    

     

     

    
      
        	
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                 (EXECUSERVE)

              	 
      	
                (
      Sales Rep)

              
	
                Execuserve
      EPC Sales Rep Agreement Form V12-3

              	 
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (d)

            	
              Sales
      Representative markets, sells, or assist any third party in the sale of
      any products that are competitive with EXECUSERVE workforce automations
      services.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Sales
      Representative continues to violate any provision(s) of this agreement
      after 5 days notice to cure

            

    

    

    
      	
              2.

            	
              RETENTION
      OF SALES REPRESENTATIVE

            

    

    

    
      	
            	
              2.1

            	
              Retention.
      EXECUSERVE hereby retains Sales Representative on a non-exclusive basis to
      perform the tasks and responsibilities specified herein under the terms
      and conditions stated in this Agreement.  During the Term and
      thereafter, EXECUSERVE reserves the right, without obligation or liability
      to Sales Representative, to market the same workforce automations services
      as EXECUSERVE deems appropriate, whether in any territory including but
      not limited to the Designated Territory (as defined
    herein).

            

    

    

    
      	
            	
              2.2

            	
              Sales Representative’s
      Authority. Sales Representative shall perform the duties and
      provide the services specified in this Agreement, which shall consist of
      marketing those workforce automation services set forth in Exhibit A (the
      “EXECUSERVE Services”) to potential customers.  During the term
      of this agreement, the Sales Representative shall not market, sell, or
      assist any third party in the sale of any products that are competitive
      with EXECUSERVE workforce automations services. All customers obtained
      through the efforts of the Sales Representative shall belong to
      Execuserve. Sales Representative  at all times, during the term
      of this agreement shall act in good faith assisting in the retention of
      all such customer as  EXECUSERVE customers, on an on-going
      basis.

            

    

     

    
      	
            	
              2.3

            	
              EXECUSERVE reserves
      the right, from time to time, to modify the EXECUSERVE
      Services.  Sales Representative shall not have the authority to
      bind EXECUSERVE, except as expressly set forth herein. All customer
      billing and collection shall be exclusively performed by
      Execuserve.

            

    

    

    
      	
            	
              2.4

            	
              EXECUSERVE Dealings
      With Customers.  EXECUSERVE shall have the right to deal
      directly with the customer in all matters relating to the provisioning of
      EXECUSERVE Services, including but not limited to additional marketing of
      EXECUSERVE Services.

            

    

    

    
      	
              3.

            	
              COMPENSATION

            

    

    

    Payment
of Commission.  EXECUSERVE shall pay Sales
Representative a commission (the “Commission”) based upon collected Net Billed
Revenue (”Net Billed Revenue”) from Firm Orders (“Firm Orders”) secured by Sales
Representative for EXECUSERVE Services and for which the Sales Representative is
also the procuring cause as determined by
EXECUSERVE.  Procuring cause is defined as the Sales
Representative having had one or more meetings, after the date of this agreement
with the client and has identifiable contacts by name and has subsequently
registered the prospect with Execuserve in writing. Net Billed Revenue is all
billing to customer less, if applicable, 5% for merchant credit card charges,
actual charges for taxes, hardware, shipping, software integration or
customization, and technical support.

     

     

    
      
        	
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                 (EXECUSERVE)

              	 
      	
                (
      Sales Rep)

              
	
                Execuserve
      EPC Sales Rep Agreement Form V12-3

              	 
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              3.1

            	
              Compensation Rate (as
      per attached Exhibit A).

            

    

    

    
      	
            	
              3.2

            	
              Commissions After
      Term.  Except as provided in Section 3.4 or otherwise in
      this Agreement, Commissions will continue to be paid for a period of 12
      months on Net Billed Revenue received by EXECUSERVE after termination of
      this Agreement for each customer as long as the customer is a EXECUSERVE
      customer and Sales Representative acts in good faith to retain such
      customer as a EXECUSERVE customer, including working with EXECUSERVE on an
      on-going basis to evaluate customers’ satisfaction with EXECUSERVE
      Services.  However, in the event that the total monthly Net
      Billed Revenue for Sales Representative is less than $1,500.00 following
      the termination of this Agreement, thereafter EXECUSERVE shall have no
      obligation to pay Commissions for EXECUSERVE Services rendered to Sales
      Representative.

            

    

    

    
      	
            	
              3.3

            	
              Commission
      Forfeiture.  In the event that EXECUSERVE terminates this
      Agreement for the reasons stated in section 1.2, or in the event that
      Sales Representative breaches the provisions of Section 7 or 8, then,
      notwithstanding Section 3.3, EXECUSERVE’s obligation to pay Commissions to
      Sales Representative shall immediately terminate, and Sales Representative
      agrees that it shall make no further claims for any Commission
      hereunder.

            

    

    

    
      	
            	
              3.4

            	
              Provision for Bad
      Debt.   In the event EXECUSERVE cancels a customer
      sold by Sales Representative for non-payment by the customer, Sales
      Representative agrees to refund to EXECUSERVE via charge back to Sales
      Representative, any commissions paid on Net Billed Revenue uncollected or
      chargeback  from the customer.  EXECUSERVE’s rights
      under this section may be exercised by EXECUSERVE at any time after
      EXECUSERVE, in its sole discretion, deems the customer’s account
      delinquent.  EXECUSERVE shall have no obligation to initiate any
      legal proceedings against such a delinquent customer, prior to exercising
      EXECUSERVE’s rights under this section or thereafter, nor shall EXECUSERVE
      pay Sales Representative commission on any funds collected after such
      termination, unless EXECUSERVE in its sole discretion reinstates said
      customer.

            

    

    

    
      	
              4.

            	
              SALES
      REPRESENTATIVE RESPONSIBILITIES

            

    

    

    
      	
            	
              4.1

            	
              Marketing.   Sales
      Representative shall use good faith efforts to diligently market
      EXECUSERVE services to its customers.  Such marketing shall be
      consistent with, and subject to, the terms and conditions set forth
      herein, EXECUSERVE’s then current price list, (which may from time to time
      be amended at the discretion of EXECUSERVE), applicable laws and
      EXECUSERVE’s policies for the sale of its services (which may from time to
      time be amended at the discretion of EXECUSERVE).  Sales
      Representative may not offer any terms or conditions on behalf of
      EXECUSERVE which conflict with relevant prices, policies, or contracts or
      which differ from the terms set forth in Exhibit
  A..

            

    

    

    
      	
            	
              4.2

            	
              Periodic
      Meetings.  Sales Representative agrees to meet with
      EXECUSERVE at mutually agreed upon times, if requested by EXECUSERVE, no
      less frequent than quarterly, to discuss sales activities.  Such
      meetings shall include, at a minimum, providing present and projected
      customer contact information, sales forecasts, sales to date and any
      customer problems.

            

    

     

     

    
      	
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               (EXECUSERVE)

            	 
      	
              (
      Sales Rep)

            
	
              Execuserve
      EPC Sales Rep Agreement Form V12-3

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              4.3

            	
              Sales Representatives
      Conduct.  Sales Representative shall be governed in all
      dealings with such customers by the highest standards of honesty,
      integrity, and fair dealing, including compliance with all applicable
      laws, ordinances and regulations, and shall do nothing which would attend
      to discredit, dishonor, reflect adversely upon, or in any manner injure
      the reputation of EXECUSERVE or upon the services covered by this
      Agreement and the quality image associated with EXECUSERVE Services and
      EXECUSERVE as determined by EXECUSERVE.  Sales Representative
      shall be responsible for and must obtain authorized signatures of
      customer’s Sales Representatives on EXECUSERVE customer agreement forms,
      as well as correct information from the customer regarding the customer’s
      service requirements and, when requested by EXECUSERVE, Sales
      Representative shall obtain appropriate credit information as specified by
      EXECUSERVE.  EXECUSERVE shall have no obligation to pay
      Commissions to Sales Representative in connection with any EXECUSERVE
      Services rendered to a customer procured by Sales Representative if Sales
      Representative has provided EXECUSERVE with erroneous or inaccurate
      information regarding such
customer.

            

    

    

    
      	
            	
              4.4

            	
              Customer
      Complaints.  Sales Representative shall promptly report
      to EXECUSERVE all customer service complaints regarding EXECUSERVE
      Services.

            

    

    

    
      	
            	
              4.5

            	
              Insurance.  Notwithstanding
      the provisions of the Section 9, Sales Representative shall obtain and
      maintain, during the Term, at its own cost and expense, adequate insurance
      coverage, as may be deemed appropriate by EXECUSERVE, including but not
      limited to automobile insurance, general liability and worker’s
      compensation, if applicable.  Sales Representative shall furnish
      a certificate naming Execuserve as additional insured within 30 days of
      the execution of this agreement.

            

    

     

    
      	
              5.

            	
              PRICING
      AND TERMS OF PRODUCT OFFERINGS

            

    

    

    
      	
            	
              5.1

            	
              EXECUSERVE
      Rights.  EXECUSERVE retains the sole and absolute right
      to determine the prices and terms under which it will offer EXECUSERVE
      Services.  This includes, but is not limited to, the right to
      change prices, restrict offerings, amend regulations, or entirely
      discontinue the offering of specific services, with or without the consent
      of Sales Representative and without incurring any liability to Sales
      Representative.  Any such change, restriction, amendment or
      discontinuance shall be at EXECUSERVE’s sole discretion, and will become
      effective on the date specified by
EXECUSERVE.

            

    

    

    
      	
            	
              5.2

            	
              No
      Deviation.  Sales Representative shall not, in any
      communication with customers or prospects, offer prices for services that
      deviate form EXECUSERVE’s published prices, nor will Sales Representative
      offer volume discounts, rebates, waivers, or any other prices adjustments,
      except with the express written authorization of EXECUSERVE and such price
      adjustments may be subject to modification of Sales Representative’s
      compensation.

            

    

     

     

    
      	
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               (EXECUSERVE)

            	 
      	
              (
      Sales Rep)

            
	
              Execuserve
      EPC Sales Rep Agreement Form V12-3

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              6.

            	
              CONFIDENTIALITY

            

    

    

    EXECUSERVE
and Sales Representative acknowledge that this Agreement creates a relationship
of confidence and trust with respect to all information of a confidential,
proprietary or trade secret nature disclosed by or on behalf of EXECUSERVE to
Sales Representative and by Sales Representative to EXECUSERVE that relates to
the business of EXECUSERVE, its affiliates, customers, suppliers and vendors and
the EXECUSERVE Services (in the aggregate, the “Proprietary Information”) and as
relates to the business of Sales Representative, its affiliates, customers,
suppliers and vendors and the Sales Representative services.  Such
Proprietary Information includes, but is not limited to:

    

    
      	
            	
              (a)

            	
              technical
      information, including without limitation, techniques, new ideas,
      discoveries, inventions, developments, know-how and trade secrets (whether
      developed by EXECUSERVE, an affiliate, employee or Sales Representative);
      and

            

    

    

    
      	
            	
              (b)

            	
              business
      information, including without limitation, information relating to costs,
      pricing, profit margins, markets and suppliers, business plans and
      projections, financial, accounting, legal and regulatory data, names,
      addresses and telephone numbers of current or prospective customers and
      their respective service or product requirements, credit histories and
      trade names, sales, marketing and advertising plans, marketing and
      advertising budgets, rates of attrition, right-of-way plans and
      agreements, building access plans and agreements,  prospective
      or actual regulatory strategies, prospective or actual local government
      franchises, licenses or similar permissions to use public ways, and or
      commercial information; and

            

    

    

    
      	
            	
              (c)

            	
              Technical
      and/or business information furnished by third parties to EXECUSERVE,
      including prospects, customers, suppliers, franchisers and
      vendors.

            

    

    

    
      	
            	
              (d)

            	
              At
      all times during and after the Term, Sales Representative and EXECUSERVE
      shall keep all Proprietary Information in confidence and shall not
      disclose such Proprietary Information to anyone, or directly or indirectly
      use any of such Proprietary Information for their own benefit or for the
      benefit of any person or entity without the prior consent of the
      information’s provider, which may be withheld in its sole
      discretion.  Upon any termination of this Agreement, or upon the
      request of EXECUSERVE or Sales Representative, the party so requested
      shall promptly deliver to the other party all Proprietary Information, and
      no party shall retain any documents or materials or copies thereof
      containing any Proprietary
Information.

            

    

    

    
      	
            	
              (e)

            	
              Sales
      Representative represents and warrants that performance of all the terms
      of this Agreement and Sales Representative’s duties as a Sales
      Representative of EXECUSERVE will not breach any similar commitment or
      proprietary information agreement with any other former employer or
      party.  Sales Representative represents and warrants that it
      will not bring to EXECUSERVE or use in the performance of Sales
      Representative’s duties for EXECUSERVE any documents or materials of a
      former employer or other entity that are so restricted or any assets
      (tangible or intangible) that may be owned by a Third
    Party.

            

    

    

    
      	
            	
              (f)

            	
              Both
      parties agree that in the event of a breach of this Section 6 by Sales
      Representative, they may suffer irreparable harm and in addition to
      terminating this Agreement, will be entitled to injunctive relief to
      enforce this Agreement without the need to post bond and that such relief
      shall be in addition to, and not lieu of any monetary damages or such
      other relief a court of law may
award.

            

    

     

     

    
      	
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               (EXECUSERVE)

            	 
      	
              (
      Sales Rep)

            
	
              Execuserve
      EPC Sales Rep Agreement Form V12-3

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7. 

            	
               PROHIBITED
      CUSTOMER AND EMPLOYEE CONTACT

            

    

    

    
      	
            	
              (a)

            	
              During
      the Term and for a period of two (2) years thereafter, Sales
      Representative shall not, whether on its own account or for the account of
      any third party, directly or indirectly, contact, solicit, participate in
      any meeting or discussion with or provide any information to any then
      existing customer of EXECUSERVE (“Existing Customer”) for the purpose of
      soliciting such customer to obtain any type of workforce automations
      services from any other entity or conducing such customer to terminate its
      business with EXECUSERVE.

            

    

    

    
      	
            	
              (b)

            	
              During
      the Term and for a period of two (2) years thereafter, Sales
      Representative will not directly or indirectly, for its own account or the
      account of a third party, contact or solicit (or in any manner participate
      in any contract, solicitation, discussions or meetings with) any then
      existing employee of EXECUSERVE for the purpose of encouraging or inducing
      such employee to terminate their employment with
    EXECUSERVE.

            

    

    

    
      	
            	
              (c)

            	
              Sales
      Representative acknowledges that, in the event that it breaches the
      provisions of this Section 7, EXECUSERVE may suffer irreparable harm,
      which is difficult to measure in monetary terms.  In the event
      that Sales Representative breaches the terms of this section, in addition
      to terminating this Agreement, EXECUSERVE may also seek any other legal or
      equitable relief to which EXECUSERVE may be entitled without the need to
      post bond and that such relief shall be in addition to, and not in lieu of
      any monetary damages or such other relief a court of law may
      award.

            

    

    

    
      	
              8. 

            	
              INDEMNIFICATION

            

    

    

    
      
        	
              	
                8.1 

              	
                Sales
      Representative shall indemnify and hold harmless EXECUSERVE and its
      officers, directors, agent and employees, from and against any and all
      claims, demands, causes of action, losses, damages, costs and expenses
      (including attorney fees hereinafter “Claims”) arising out of or in any
      manner relating to:

              

      

    

    

    
      	
               
      

            	
              (a)

            	
              Sales
      Representative’s material breach of any of the terms of this
      Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Sales
      Representative’s misrepresentation regarding the terms and provisions of
      EXECUSERVE Services to customers, including any action of Sales
      Representative in which Sales Representative falsely represents that Sales
      Representative has authority to bond
EXECUSERVE;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Sales
      Representative’s activities relating to the marketing of the EXECUSERVE
      Services to EXECUSERVE customers;
and

            

    

    

    
      	
               
      

            	
              (d)

            	
              Any
      claims for withholding or other taxes that might arise or be imposed due
      to this Agreement or the performance
hereof.

            

    

     

     

    
      	
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               (EXECUSERVE)

            	 
      	
              (
      Sales Rep)

            
	
              Execuserve
      EPC Sales Rep Agreement Form V12-3

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              8.2

            	
              In
      addition to the rights set out in this Section 9, EXECUSERVE reserves the
      right to withhold payment of Commission due Sales Representative under
      this Agreement in order to recover expenses for Claims covered by this
      section.

            

    

    

    
      	
               
      

            	
              8.3

            	
              EXECUSERVE
      shall indemnify and hold harmless Sales Representative and its officers,
      directors, agents, and employees from and against any and all claims
      arising out of or relating to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              EXECUSERVE’s
      material breach of any of this
Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              EXECUSERVE’s
      misrepresentations regarding the terms and provisions of EXECUSERVE’s
      services to customers.

            

    

    

    
      	
              9. 

            	
              USE
      OF EXECUSERVE INTELLECTUAL PROPERTY

            

    

    

    Pursuant
to the terms and conditions contained in this Agreement, Sales Representative
may identify itself as a "Execuserve Sales Representative.”  Sales
Representative’s use of such identification shall be limited to the sales and
marketing of EXECUSERVE Services to third parties.

    

    EXECUSERVE
grants Sales Representative the non-exclusive, personal and non-transferable
right and license to use the mark and the trade name “Execuserve” (see logo,
attached as Exhibit B, hereafter the “Mark.”)  Sales Representative’s
use of the Mark shall be limited solely to the sales and marketing of EXECUSERVE
Services to third parties.

    

    All
rights in the Mark other than those specifically licensed herein are reserved by
EXECUSERVE.

    

    
      	
              10. 

            	
              GENERAL
      PROVISIONS

            

    

    

    
      	
            	
              10.1

            	
              Dispute Resolution
      (Arbitration Clause).  Any and all disputes,
      controversies and claims arising out of or relating to this Agreement or
      concerning the respective rights or obligations of the parties hereto
      shall be settled and determined by arbitration in Nassau County, New York
      before a panel of three (3) arbitrators pursuant to the Commercial Rules
      then obtaining of the American Arbitration Association.  The
      parties agree that the arbitrators, in their discretion, may award
      specific performance or injunctive relief (but not consequential or
      punitive damages) and reasonable attorney’s fees and expenses to any party
      in any arbitration brought hereunder.  However, in any
      arbitration proceeding brought hereunder, the arbitrators shall have the
      power to change, modify or alter any express condition, term or provision
      hereof and to that extent the scope of their authority is
      limited.  The arbitration award shall be final and binding upon
      the parties and judgment thereon may be entered in any court having
      competent jurisdiction.

            

    

    

    
      	
            	
              10.2

            	
              Assignment.  EXECUSERVE
      may assign its rights under this Agreement and this Agreement shall inure
      to the benefit, of the successors and assigns of EXECUSERVE, and shall be
      binding upon Sales Representative.  Sales Representative may not
      assign its rights or obligations under this Agreement without the advance
      written consent of EXECUSERVE, which consent may be withheld by EXECUSERVE
      in its sole discretion.

            

    

     

     

    
      	
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               (EXECUSERVE)

            	 
      	
              (
      Sales Rep)

            
	
              Execuserve
      EPC Sales Rep Agreement Form V12-3

            	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              10.3

            	
              Entire Agreement and
      Amendment.  This Agreement represents the entire
      understanding of the parties with respect to the specific matter of this
      Agreement and supersedes all previous understandings, written or oral,
      between the parties with respect to the subject matter.  A
      writing executed by both parties hereto may only amend this
      Agreement.  Failure by EXECUSERVE or Sales Representative to
      insist upon the other party’s compliance with any provision in this
      Agreement shall not be deemed a waiver of such
  provision.

            

    

    

    
      	
            	
              10.4

            	
              Notices.  All
      notices required or permitted under this Agreement shall be in writing and
      shall be delivered personally and receipted for, sent by overnight
      commercial air courier (such as Federal Express), to the parties at their
      address set forth above or to such address as a party shall have notified
      the other party.  Any such notice shall be deemed effective and
      delivered upon the earliest to occur of actual delivery, if delivered
      personally, one (1) business day after shipment by commercial air courier,
      or three (3) business days after mailings to the parties at the address
      set forth below:

            

    

     

    
      
        
          	
                  To
      Sales Representative:

                	
                  To
      EXECUSERVE:

                
	 
      	 
      
	
                  EPC,
      LLC

                	
                  Execuserve
      Corp.

                
	
                  PO
      Box 456

                	
                  50
      Glen Street – Ste 308

                
	
                  Mathews,
      VA 23109

                	
                  Glen
      Cove, New York 11542

                
	 
      	 
      
	
                  Attn:
      Tom Eley

                	
                  Attn:  Dean
      Garfinkel

                

        

      

    

    

    
      	
            	
              10.5

            	
              Independent
      Contractor.  Sales Representative and EXECUSERVE,
      expressly intend that no employment, partnership, or joint venture
      relationship is created by this Agreement, hereby agree as
      follows:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Sales
      Representative shall act at all times as an independent contractor
      hereunder and shall hold itself out to third parties as an independent
      contractor of EXECUSERVE.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Neither
      Sales Representative nor anyone employed by or acting for or on behalf of
      Sales Representative shall ever be or be construed as an employee of
      EXECUSERVE and EXECUSERVE shall not be liable for employment or
      withholding taxes relating to Sales Representative or any employee of
      Sales Representative.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Sales
      Representative shall be free to contract with, and provide Sales
      Representative’s services to, parties other than EXECUSERVE during the
      term of this Agreement, subject to the provisions
  hereof.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Sales
      Representative shall not make any commitment or incur any charge or
      expense in the name of EXECUSERVE without the prior written approval of
      EXECUSERVE, which may be withheld in EXECUSERVE’s sole
      discretion.

            

    

    

    
      	
              
              

            	
              (vi)

            	
              Sales
      Representative expressly acknowledges and agrees that except to the extent
      expressly provided herein, neither Sales Representative nor anyone
      employed by or acting for or on behalf of Sales Representative by license,
      franchise, title of interest, in EXECUSERVE or any tangible or intangible
      property of EXECUSERVE, including, without limitation, trade names,
      trademarks, service marks or Proprietary
  Information.

            

    

     

     

    
      
        	
                Initials
      [s]JAR       
      

              	
                8

              	
                  Initials
      [s]
      WTE      

              
	
                 (EXECUSERVE)

              	 
      	
                (
      Sales Rep)

              
	
                Execuserve
      EPC Sales Rep Agreement Form V12-3

              	 
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, EXECUSERVE and Sales Representative represent that they have
read this Agreement, understand it and agree to be bound by all the terms and
conditions stated herein.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    EPC,
      LLC

                                  	 
      	
                                    Execuserve
      Corp.

                                  
	 
      	 
      	 
      	 
      	 
      
	
                                    By:

                                  	
                                    [s]William Thomas Eley

                                  	 
      	
                                    By:

                                  	
                                    [s]James A. Robinson,
Jr.

                                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                                    Title:

                                  	
                                    Member

                                  	 
      	
                                    Title:

                                  	
                                    President & CEO

                                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                                    Date:

                                  	
                                    6/15/2010

                                  	 
      	
                                    Date:

                                  	
                                    6/15/2010

                                  

                          

                           

                           

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        	
                Initials
      [s]JAR       
      

              	
                9

              	
                  Initials
      [s]
      WTE      

              
	
                 (EXECUSERVE)

              	 
      	
                (
      Sales Rep)

              
	
                Execuserve
      EPC Sales Rep Agreement Form V12-3Unassociated Document

    EXHIBIT
4.9

     

    COMMON
STOCK PURCHASE WARRANT

    

    NEPHROS,
INC.

     

    
      
        	
                Warrant
      Shares: _______

              	
                Issue
      Date: _____________ ___, 2010

              

      

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, _____________ or its assigns (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise
Date”) and on or prior to the close of business on the five (5) year
anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Nephros, Inc., a Delaware
corporation (the “Company”), up to
______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of
Common Stock. The purchase price of one share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section 2(b).

     

    Section
1.            Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated _________ ___, 2010, among the Company and the purchasers signatory
thereto.

     

    Section
2.            Exercise.

     

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

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $_____, subject to adjustment
hereunder (the “Exercise
Price”).

     

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

     

    
      
        
          	
                	
                  (A)

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

                

        

      

    

    

    
      
        
          	
                	
                  (B)
      =

                	
                  the
      Exercise Price of this Warrant, as adjusted hereunder;
  and

                

        

      

    

    

    
      
        
          	
                	
                  (X)
      =

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

                

        

      

    

    

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

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    d)           Mechanics of
Exercise.

     

    i.          
Delivery of
Certificates Upon Exercise.  Certificates for shares purchased
hereunder shall be transmitted by the Transfer Agent to the Holder by crediting
the account of the Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective
registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by Holder or (B) this Warrant is being exercised
via cashless exercise, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that is three (3)
Trading Days after the latest of (A) the delivery to the Company of the Notice
of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the
aggregate Exercise Price as set forth above (including by cashless exercise, if
permitted) (such date, the “Warrant Share Delivery
Date”).   The Warrant Shares shall be deemed to have been
issued, and Holder or any other person so designated to be named therein shall
be deemed to have become a holder of record of such shares for all purposes, as
of the date the Warrant has been exercised, with payment to the Company of the
Exercise Price (or by cashless exercise, if permitted) and all taxes required to
be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the
issuance of such shares, having been paid.

     

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

     

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

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

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

     

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

     

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

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

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

     

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

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    Section
3.             Certain
Adjustments.

     

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

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    b)           Subsequent Equity
Sales. If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or
issue (or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents, at an effective price
per share less than the Exercise Price then in effect (such lower price, the
“Base Share
Price” and such issuances collectively, a “Dilutive Issuance”)
(it being understood and agreed that if the holder of the Common Stock or Common
Stock Equivalents so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange
prices or otherwise, or due to warrants, options or rights per share which are
issued in connection with such issuance, be entitled to receive shares of Common
Stock at an effective price per share that is less than the Exercise Price, such
issuance shall be deemed to have occurred for less than the Exercise Price on
such date of the Dilutive Issuance at such effective price), then simultaneously
with the consummation of each Dilutive Issuance the Exercise Price shall be
reduced and only reduced to equal the Base Share Price and the number of Warrant
Shares issuable hereunder shall be increased such that the aggregate Exercise
Price payable hereunder, after taking into account the decrease in the Exercise
Price, shall be equal to the aggregate Exercise Price prior to such
adjustment.  Such adjustment shall be made whenever such Common Stock
or Common Stock Equivalents are issued.  Notwithstanding the
foregoing, no adjustments shall be made, paid or issued under this Section 3(b)
in respect of an Exempt Issuance.  The Company shall notify the
Holder, in writing, no later than the Trading Day following the issuance or
deemed issuance of any Common Stock or Common Stock Equivalents subject to this
Section 3(b), indicating therein the applicable issuance price, or applicable
reset price, exchange price, conversion price and other pricing terms (such
notice, the “Dilutive
Issuance Notice”).  For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to this Section
3(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to
receive a number of Warrant Shares based upon the Base Share Price regardless of
whether the Holder accurately refers to the Base Share Price in the Notice of
Exercise. If the Company enters into a Variable Rate Transaction, despite the
prohibition thereon in the Purchase Agreement, the Company shall be deemed to
have issued Common Stock or Common Stock Equivalents at the lowest possible
conversion or exercise price at which such securities may be converted or
exercised.

     

    c)           Subsequent Rights
Offerings.  If the Company, at any time while the Warrant is
outstanding, shall issue rights, options or warrants to all holders of Common
Stock (and not to the Holder) entitling them to subscribe for or purchase shares
of Common Stock at a price per share less than the VWAP on the record date
mentioned below, then the Exercise Price shall be multiplied by a fraction, of
which the denominator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights, options or warrants plus the
number of additional shares of Common Stock offered for subscription or
purchase, and of which the numerator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of shares which the aggregate offering price of the total number
of shares so offered (assuming receipt by the Company in full of all
consideration payable upon exercise of such rights, options or warrants) would
purchase at such VWAP.  Such adjustment shall be made whenever such
rights, options or warrants are issued, and shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such rights, options or warrants.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    d)           Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, shall distribute to all holders of Common Stock (and not to the
Holder) evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock (which shall be subject to Section 3(b)), then in each
such case the Exercise Price shall be adjusted by multiplying the Exercise Price
in effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good
faith.  In either case the adjustments shall be described in a
statement provided to the Holder of the portion of assets or evidences of
indebtedness so distributed or such subscription rights applicable to one share
of Common Stock.  Such adjustment shall be made whenever any such
distribution is made and shall become effective immediately after the record
date mentioned above.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    e)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are
permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of
the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or
property or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person or group of Persons
whereby such other Person or group acquires more than 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock held by the
other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase
agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant).  For
purposes of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental
Transaction.  Notwithstanding anything to the contrary, in the event
of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a
Fundamental Transaction involving a person or entity not traded on a national
securities exchange, including, but not limited to, the Nasdaq Global Select
Market, the Nasdaq Global Market, or the Nasdaq Capital Market,] the Company or
any Successor Entity (as defined below) shall, at the Holder’s option,
exercisable at any time concurrently with, or within 30 days after, the
consummation of the Fundamental Transaction, purchase this Warrant from the
Holder by paying to the Holder an amount of cash equal to the Black Scholes
Value of the remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction.  “Black Scholes Value”
means the value of this Warrant based on the Black and Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of
100% and the 100 day volatility obtained from the HVT function on Bloomberg as
of the Trading Day immediately following the public announcement of the
applicable Fundamental Transaction, (C) the underlying price per share used in
such calculation shall be the sum of the price per share being offered in cash,
if any, plus the value of any non-cash consideration, if any, being offered in
such Fundamental Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date.  The Company shall cause any
successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents in accordance with the provisions of this
Section 3(e) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the
Holder, deliver to the Holder in exchange for this Warrant a security of the
Successor Entity evidenced by a written instrument substantially similar in form
and substance to this Warrant which is exercisable for a corresponding number of
shares of capital stock of such Successor Entity (or its parent entity)
equivalent to the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise of this
Warrant) prior to such Fundamental Transaction, and with an exercise price which
applies the exercise price hereunder to such shares of capital stock (but taking
into account the relative value of the shares of Common Stock pursuant to such
Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction
Documents with the same effect as if such Successor Entity had been named as the
Company herein.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

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

     

    g)           Notice to
Holder.

     

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

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  To the extent that
any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.  The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice except as may otherwise be expressly
set forth herein.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    Section
4.             Transfer of
Warrant.

     

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

     

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

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

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

     

    Section
5.             Miscellaneous.

     

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

     

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

     

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

     

    d)           Authorized
Shares.

     

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

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

    f)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, and the Holder does not utilize cashless exercise at
a time when the conditions for sale of the Warrant Shares pursuant to Rule 144
have been satisfied, will have restrictions upon resale imposed by state and
federal securities laws.

     

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

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    

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

    

    (Signature
Page Follows)

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

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

    

    
      
        
          	
                  NEPHROS,
      INC.

                
	 
      	 
      
	
                  By:

                	 
      
	 
      	
                  Name:

                
	 
      	
                  Title:

                

        

      

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    NOTICE
OF EXERCISE

    

    TO:           NEPHROS,
INC.

    

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

     

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

     

    o in lawful money of the
United States; or

     

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

     

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

     

    
      
        	
                _______________________________

              

      

    

    

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

    

    
      
        	
                _______________________________

              
	 
      
	
                _______________________________

              
	 
      
	
                _______________________________

              

      

    

     

    [SIGNATURE
OF HOLDER]

    

    Name of Investing Entity: ____________________________________________________________________________________

    Signature of Authorized Signatory of Investing Entity: ______________________________________________________________

    Name of Authorized Signatory: ________________________________________________________________________________

    Title of Authorized Signatory: _________________________________________________________________________________

    Date: ____________________________________________________________________________________________________

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

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

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    

    
      
        
          
            	
                    Holder’s Signature:

                  	
                    _____________________________

                  
	  	  
	
                    Holder’s Address:

                  	
                    _____________________________

                  
	 
      	 
      
	 
      	
                    _____________________________

                  

          

        

      

    

    

    Signature
Guaranteed:  ___________________________________________

    

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

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