Document:

Registration Rights Agreement

 Exhibit 10.5 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of the 21st day of September, 2009, between DayStar Technologies, Inc., a Delaware corporation (the
“Company”), and the individual listed on Schedule I (the “Purchaser”). The Company and the Purchaser are sometimes referred to individually as a
“Party” and collectively as the “Parties”. 
 RECITALS 

 A. The Company and the Purchaser are parties to that certain Purchase Agreement dated September 18, 2009 (the
“Purchase Agreement”) pursuant to which the Company has agreed to sell, and the Purchaser has agreed to purchase, (a) a secured convertible note of the Company (the
“Note”), (b) a warrant to purchase 1,500,000 shares of common stock of the Company (the “First Warrant”), and a warrant to purchase 1,666,667 shares of common stock of
the Company (the “Second Warrant” and, together with the First Warrant, the “Warrants”). 
 B. In connection with the purchase by the Purchaser of the Note and the Warrants pursuant to the Purchase Agreement, the Company desires to
grant to the Purchaser and his successors and permitted assigns certain registration rights with respect to shares of common stock of the Company (“Common Stock”). 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter set forth, the Parties agree as follows. 
 ARTICLE I. 
 REGISTRATION RIGHTS 
 Section 1.1 Definitions. For purposes of this Agreement: 
 “Affiliate” means, with respect to any Person, (i) any other Person of which
securities or other ownership interests representing more than 50% of the voting interests are, at the time such determination is being made, owned, Controlled or held, directly or indirectly, by such Person or (ii) any other Person which, at
the time such determination is being made, is Controlling, Controlled by or under common Control with, such Person. “Control”, whether used as a noun or verb, refers to the possession, directly or
indirectly, of the power to direct, or cause the direction of, the management or policies of a Person, whether through the ownership of voting securities or otherwise. 
 “Holder” means a Person that (i) is a party to this Agreement (or a permitted transferee under Section 2.2) and (ii) owns
Registrable Securities; provided, however, that for purposes of this Agreement, Holders of Registrable Securities will not be required to convert the Note or exercise the Warrants into Common Stock to exercise the registration rights
granted hereunder, until immediately before the closing of the offering to which the registration relates. 

 “Participating Holders” means Holders
participating, or electing to participate, in an offering of Registrable Securities. 
 “Person” means
any individual, firm, corporation, company, partnership, trust, incorporated or unincorporated association, limited liability company, joint venture, joint stock company, government (or an agency or political subdivision thereof) or other entity of
any kind, and will include any successor (by merger or otherwise) of any such entity. 
 “Registrable
Securities” means any shares of Common Stock (i) issued or issuable upon conversion of the Note; (ii) issued or issuable upon exercise of the Warrants; (iii) otherwise held or which could be held upon
conversion or exercise by the Purchaser; and (iv) issued or issuable with respect to the securities referred to in clauses (i) - (iii) above by virtue of any stock split, combination, stock dividend, merger, consolidation or other similar
event; provided, however, that shares of Common Stock that are considered to be Registrable Securities will cease to be Registrable Securities (A) upon the sale thereof pursuant to an effective registration statement,
(B) upon the sale thereof pursuant to Rule 144 (or successor rule) under the Securities Act where the purchaser thereof receives unrestricted securities, (C) when such securities cease to be outstanding or (D) in a private transaction
where the transferor’s rights under this Agreement are not assigned. 
 “Registration
Expenses” mean all expenses (other than underwriting discounts and commissions) arising from or incident to the performance of or compliance with this Agreement, including without limitation (i) SEC, stock exchange,
the Financial Industry Regulatory Authority (“FINRA”) and other registration and filing fees, (ii) all fees and expenses incurred in connection with complying with any securities or blue sky
laws, (iii) all printing, messenger and delivery expenses, (iv) the fees, charges and disbursements of counsel to the Company and of its independent public accountants and any other accounting and legal fees, charges and expenses incurred
by the Company (including, without limitation, any expenses arising from any special audits or “comfort letters” required in connection with or incident to any registration), (v) the fees, charges and disbursements of any special
experts retained by the Company in connection with any registration pursuant to the terms of this Agreement, (vi) all internal expenses of the Company, (vii) the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange, (viii) fees, charges and disbursements of one firm of counsel to all of the Participating Holders participating in any underwritten public offering (provided that such fees, charges and
disbursements of counsel to the Participating Holders will not exceed $35,000), in each case regardless of whether any Registration Statement is declared effective. 
 “Registration Statement” will mean any Registration Statement of the Company filed with the SEC on the appropriate form pursuant to the Securities Act
which covers any of the shares of Common Stock and any other Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case
including the prospectus contained therein, all exhibits thereto and all materials incorporated by reference therein. 
 “SEC” means the United States Securities and Exchange Commission. 
  

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 “Selling Expenses” will mean the
underwriting fees, discounts, selling commissions and stock transfer taxes applicable to all Registrable Securities registered by the Participating Holders. 
 Section 1.2 Filing of Shelf Registration Statement. 
 (a) Obligation
to File Registration Statement. The Company will, as soon as practicable, but no later than October 31, 2009 (the “Filing Deadline”), file a Registration Statement under the Securities Act
covering the sale or other distribution of all or any portion of the Registrable Securities pursuant to Rule 415 under the Securities Act. The Company will use its reasonable best efforts to have such Registration Statement declared effective by the
SEC as soon as practicable thereafter, but in any event within 60 days after the filing thereof (the “Effectiveness Deadline”). Without the consent of the Holders, the Company will refrain from
filing any other Registration Statements, other than pursuant to a Registration Statement on Form S-4 or S-8 (or similar or successor forms), with respect to any other securities of the Company until such date which is 120 days following
effectiveness of such Registration Statement. 
 (b) Liquidated Damages. To the extent (a) the Registration
Statement required pursuant to this Section 1.2 is not filed with the SEC on or prior to the Filing Deadline, (b) such Registration Statement has not been declared effective by the SEC on or prior to the Effectiveness Deadline, or
(c) such Registration Statement is filed and declared effective but thereafter ceases to be effective or fails to be usable for its intended purpose without being succeeded within five days by a post-effective amendment thereto that cures such
failure and that is itself declared effective within five days of filing such post-effective amendment (each, a “Registration Default”), then the Company will pay to each Holder liquidated damages
in an amount equal to $20,000 for each month or portion thereof that the Registration Default continues. 
 Section 1.3
Piggyback Registrations. 
 (a) Right to Include Registrable Securities. In the event that
a Registration Default has occurred and is continuing, and thereafter the Company from time to time proposes for any reason to register any of its Common Stock under the Securities Act, either for its own account or for the account of a stockholder
other than pursuant to a Registration Statement on Forms S-4 or S-8 (or similar or successor forms) (a “Proposed Registration”), the Company will promptly give written notice thereof to all of the
Holders (which notice will be given not less than 30 days prior to the expected effective date of the Company’s Registration Statement) and will offer such Holders the right to request inclusion of any of such Holder’s Registrable
Securities in the Proposed Registration. No registration pursuant to this Section 1.3 will relieve the Company of its obligation to register Registrable Securities pursuant to Section 1.2. 
 (b) Piggyback Procedure. Each Holder of Registrable Securities will have 20 days from the date of receipt of the Company’s
notice referred to in Section 1.3(a) to deliver to the Company a written request specifying the number of Registrable Securities such Holder intends to sell and such Holder’s intended method of disposition. Any Holder will have the
right to withdraw such Holder’s request for inclusion of such holder’s Registrable Securities in any Registration Statement pursuant to this Section 1.3 by giving written notice to the Company of

  

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such withdrawal. Subject to Section 1.3(d), the Company will use commercially reasonable efforts to include in such Registration Statement all such Registrable Securities so requested
to be included therein; provided, however, that the Company may at any time withdraw or cease proceeding with any such Proposed Registration if it will at the same time withdraw or cease proceeding with the registration of all other
shares of Common Stock originally proposed to be registered. If the Proposed Registration by the Company is, in whole or in part, an underwritten public offering of securities of the Company, any request under this Section 1.3(b) will
specify that the Registrable Securities be included in the underwriting on the same terms and conditions as the shares, if any, otherwise being sold through underwriters under such registration. 
 (c) Selection of Underwriters. The managing underwriter for any Proposed Registration that involves an underwritten public offering
will be one or more reputable nationally recognized investment banks selected by the Company and reasonably acceptable to a majority in interest of the Holders. 
 (d) Priority for Piggyback Registration. Notwithstanding any other provision of this Article 1, if the managing underwriter of an underwritten public offering determines and advises the
Company and the Holders that the inclusion of all Registrable Securities proposed to be included by the Holders of Registrable Securities in such offering would materially and adversely interfere with the successful marketing of the Company’s
securities, then the Holders of Registrable Securities will not be permitted to include any Registrable Securities in excess of the amount, if any, of Registrable Securities which the managing underwriter of such offering will reasonably and in good
faith agree in writing to include in such offering in addition to the amount of securities to be registered for the Company. The Company will include in such Registration Statement, as to each Holder, only a portion of the Registrable Securities
such Holder has requested be registered equal to the ratio which such Holder’s requested Registrable Securities bears to the total number of Registrable Securities requested to be included in such Registration Statement by all Holders. Pursuant
to the foregoing provision, the securities to be included in a registration initiated by the Company will be allocated: (i) first, to the Company; (ii) second, pari passu to the Holders; and (iii) third, to any others requesting
registration of securities of the Company. 
 Section 1.4 Registration Procedures.

 (a) Obligations of the Company. Whenever registration of Registrable Securities is required pursuant to this
Agreement, the Company will use its reasonable best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of distribution thereof as promptly as possible, and in connection with any such
request, the Company will, as expeditiously as possible: 
 (i) Preparation of Registration Statement; Effectiveness.
Prepare and file with the SEC a Registration Statement on any form on which the Company then qualifies, which counsel for the Company will deem appropriate and pursuant to which such offering may be made in accordance with the intended method of
distribution thereof (except that the Registration Statement will contain such information as may reasonably be requested for marketing or other purposes by the managing underwriter), and use reasonable best efforts to cause any registration
required hereunder to become effective as soon as practicable after the initial filing thereof

  

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(unless a specific time period is otherwise set forth herein) and remain effective for a period of not less than one year from the effective date thereof or such shorter period in which all
Registrable Securities have been sold in accordance with the methods of distribution set forth in the Registration Statement; provided that, in the case of any registration of Registrable Securities on Form S-3 which are intended to be
offered on a continuous or delayed basis, such one-year period will be extended, if necessary, to keep the Registration Statement effective until all such Registrable Securities are sold, provided that Rule 415, or any successor rule under
the Securities Act, permits an offering on a continuous or delayed basis; 
 (ii) Participation in Preparation. Provide
any Participating Holder, any underwriter participating in any disposition pursuant to a Registration Statement, and any attorney, accountant or other agent retained by any Participating Holder or underwriter (collectively, the
“Inspectors”), the opportunity to participate in the preparation of such Registration Statement, each prospectus included therein or filed with the SEC and each
amendment or supplement thereto; 
 (iii) Due Diligence. For a reasonable period prior to the filing of any Registration
Statement pursuant to this Agreement, make available for inspection and copying by the Inspectors such financial and other information and books and records, pertinent corporate documents and properties of the Company and its subsidiaries and cause
the officers, directors, employees, counsel and independent certified public accountants of the Company and its subsidiaries to respond to such inquiries and to supply all information reasonably requested by any such Inspector in connection with
such Registration Statement, as will be reasonably necessary, in the judgment of the respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act; provided, however, that if requested by the
Company, each Inspector will enter into a confidentiality agreement with the Company prior to the Company’s release or disclosure of confidential information to such Inspector; 
 (iv) General Notifications. Promptly notify in writing the Participating Holders, the sales or placement agent, if any, therefor and
the managing underwriter of the securities being sold, (A) when such Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post-effective amendment has been filed, and, with respect to any such
Registration Statement or any post-effective amendment, when the same has become effective, (B) when the SEC notifies the Company whether there will be a “review” of such Registration Statement and (C) of any comments (oral or
written) by the SEC and by the blue sky or securities commissioner or regulator of any state with respect thereto or (D) of any request by the SEC for any amendments or supplements to such Registration Statement or the prospectus or for
additional information; 
 (v) 10b-5 Notification. Promptly notify in writing the Participating Holders, the sales or
placement agent, if any, therefor and the managing underwriter of the securities being sold pursuant to any Registration Statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act upon discovery
that, or upon the happening of any event as a result of which, any prospectus included in such Registration Statement (or amendment or supplement thereto) contains an untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and the Company will

  

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promptly prepare a supplement or amendment to such prospectus and file it with the SEC (in any event no later than ten days following notice of the occurrence of such event to each Participating
Holder, the sales or placement agent and the managing underwriter) so that after delivery of such prospectus, as so amended or supplemented, to the purchasers of such Registrable Securities, such prospectus, as so amended or supplemented, will not
contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made; 
 (vi) Notification of Stop Orders; Suspensions of Qualifications and Exemptions. Promptly notify in writing the Participating Holders,
the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold of the issuance by the SEC of (A) any stop order issued or threatened to be issued by the SEC or (B) any notification with respect to
the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose and the Company will use reasonable best
efforts to (x) prevent the issuance of any such stop order, and in the event of such issuance, to obtain the withdrawal of any such stop order and (y) obtain the withdrawal of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any Registrable Securities included in such Registration Statement for sale in any jurisdiction at the earliest practicable date; 
 (vii) Amendments and Supplements; Acceleration. Prepare and file with the SEC such amendments, including post-effective amendments,
as may be necessary to keep each Registration Statement continuously effective for the applicable time period required hereunder and if applicable, file any Registration Statements pursuant to Rule 462(b) under the Securities Act; cause the related
prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; and comply with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such
Registration Statement as so amended or in such prospectus as so supplemented; 
 (viii) Copies. Furnish as promptly as
practicable to each Participating Holder and Inspector prior to filing a Registration Statement or any supplement or amendment thereto, copies of such Registration Statement, supplement or amendment as it is proposed to be filed, and after such
filing such number of copies of such Registration Statement, each amendment and supplement thereto (in each case including all exhibits thereto), the prospectus included in such Registration Statement (including each preliminary prospectus) and such
other documents as each such Participating Holder or underwriter may reasonably request; 
 (ix) Blue Sky. Use reasonable
best efforts to, prior to any public offering of the Registrable Securities, register or qualify (or seek an exemption from registration or qualifications) such Registrable Securities under such other securities or blue sky laws of such
jurisdictions as any Participating Holder or underwriter may request, and to continue such qualification in effect in each such jurisdiction for as long as is permissible pursuant to the laws of such jurisdiction, or for as long as a Participating
Holder or underwriter requests or until all of

  

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

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 (c) Notice to Discontinue. Each Participating Holder whose Registrable Securities are
covered by a Registration Statement filed pursuant to this Agreement will, upon receipt of written notice from the Company of the happening of any event of the kind described in Section 1.6(a)(v), forthwith discontinue the disposition of
Registrable Securities until such Participating Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 1.6(a)(v) or until it is advised in writing by the Company that the use of the
prospectus may be resumed and has received copies of any additional or supplemental filings which are incorporated by reference into the prospectus. If the Company will give any such notice, the Company will extend the period during which such
Registration Statement is to be maintained effective by the number of days during the period from and including the date of the giving of such notice pursuant to Section 1.6(a)(v) to and including the date when the Participating Holder
will have received the copies of the supplemented or amended prospectus contemplated by, and meeting the requirements of, Section 1.6(a)(v). 
 Section 1.5 Registration Expenses. Except as otherwise provided herein, all Registration Expenses will be borne by the Company. All Selling Expenses relating to Registrable Securities
registered will be borne by the Participating Holders of such Registrable Securities pro rata on the basis of the number of shares so registered. 
 Section 1.6 Indemnification 
 (a) Indemnification by the
Company. Notwithstanding termination of this Agreement, the Company will indemnify and hold harmless to the fullest extent permitted by law, each Holder, each of its directors, officers, employees, advisors, agents and general or limited
partners (and the directors, officers, employees, advisors and agents thereof), their respective Affiliates and each Person who controls (within the meaning of the Securities Act or the Exchange Act) any of such Persons, and each underwriter and
each Person who controls (within the meaning of the Securities Act or the Exchange Act) any underwriter (collectively, “Holder Indemnified Parties”) from and against any
and all losses, claims, damages, expenses (including, without limitation, reasonable costs of investigation and fees, disbursements and other charges of counsel, any amounts paid in settlement effected with the Company’s consent, which consent
will not be unreasonably withheld or delayed and any costs incurred in enforcing the Company’s indemnification obligations hereunder) or other liabilities (collectively,
“Losses”) to which any such Holder Indemnified Party may become subject under the Securities Act, Exchange Act, any other federal law, any state or common law or any
rule or regulation promulgated thereunder or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) are resulting from or arising out of or based upon (i) any untrue, or alleged
untrue, statement of a material fact contained in any Registration Statement, prospectus or preliminary prospectus (as amended or supplemented) or any document incorporated by reference in any of the foregoing or resulting from or arising out of or
based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made), not
misleading or (ii) any violation by the Company of the Securities Act, Exchange Act, any other federal law, any state or common law or any rule or regulation promulgated thereunder or otherwise incident to any registration, qualification or
compliance and in any such case, the Company will promptly reimburse each such Holder Indemnified Party for any legal and any other Losses reasonably incurred in

  

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connection with investigating, preparing or defending any such claim, loss, damage, liability, action or investigation or proceeding (collectively, a
“Claim”); provided, however, that the Company will not be liable to any Holder Indemnified Party for any Losses that arise out of or are based upon (x) written information
provided by a Holder Indemnified Party expressly for use in the Registration Statement or (y) sales of Registrable Securities by a Holder Indemnified Party to a person to whom there was not sent or given, at or before the written confirmation
of such sale, a copy of the prospectus (excluding documents incorporated by reference) or the prospectus as then amended or supplemented (excluding documents incorporated by reference) if the Company has previously furnished in a timely manner a
reasonable number of copies thereof to such Holder Indemnified Party in compliance with this Agreement and the Losses of such Holder Indemnified Party results from an untrue statement or omission of a material fact contained in such preliminary
prospectus which was corrected in the prospectus (or the prospectus as then amended or supplemented). Such indemnity will remain in full force and effect regardless of any investigation made by or on behalf of the Holder Indemnified Parties and will
survive the transfer of Registrable Securities by such Holder Indemnified Parties. 
 (b) Indemnification by Holders. In
connection with any proposed registration in which a Holder is participating pursuant to this Agreement, each such Holder will furnish to the Company in writing such information with respect to such Holder as the Company may reasonably request or as
may be required by law for use in connection with any Registration Statement or prospectus or preliminary prospectus to be used in connection with such registration and each Holder, severally and not jointly, will indemnify and hold harmless the
Company, any underwriter retained by the Company and their respective directors, officers, partners, employees, advisors and agents, their respective Affiliates and each Person who controls (within the meaning of the Securities Act or the Exchange
Act) any of such Persons to the same extent as the foregoing indemnity from the Company to the Holders as set forth in Section 1.6(a) (subject to the exceptions set forth in the foregoing indemnity, the proviso to this sentence and
applicable law), but only with respect to any such information furnished in writing by such Holder expressly for use therein; provided, however, that the liability of any Holder under this Section 1.6(b) will be limited to
the amount of the net proceeds received by such Holder in the offering giving rise to such liability. Such indemnity obligation will remain in full force and effect regardless of any investigation made by or on behalf of the Holder Indemnified
Parties (except as provided above) and will survive the transfer of Registrable Securities by such Holder. 
 (c) Conduct of
Indemnification Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) will give prompt written notice to the indemnifying party
(the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or
threat thereof made in writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, however, that, the failure so to notify the Indemnifying Party will not relieve the
Indemnifying Party of any liability that it may have to the Indemnified Party hereunder unless and to the extent such Indemnifying Party is materially prejudiced by such failure. If notice of commencement of any such action is given to the
Indemnifying Party as above provided, the Indemnifying Party will be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense,
with counsel chosen by it and reasonably satisfactory to such

  

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Indemnified Party. The Indemnified Party will have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel will
be paid by the Indemnified Party unless (i) the Indemnifying Party will pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel satisfactory to the Indemnified Party in its reasonable judgment or
(iii) the named parties to any such action (including, but not limited to, any impleaded parties) reasonably believe that the representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under
applicable standards of professional conduct. In the case of clause (ii) above and (iii) above, the Indemnifying Party will not have the right to assume the defense of such action on behalf of such Indemnified Party. No Indemnifying Party
will be liable for any settlement entered into without its written consent, which consent will not be unreasonably withheld. No Indemnifying Party will, without the written consent of the Indemnified Party, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (A) includes an unconditional release of the Indemnified Party from all liability arising out of such action or claim and (B) does not include a statement as to, or an
admission of, fault, culpability or a failure to act by or on behalf of any Indemnified Party. The rights afforded to any Indemnified Party hereunder will be in addition to any rights that such Indemnified Party may have at common law, by separate
agreement or otherwise. 
 (d) Contribution. If the indemnification provided for in this Section 1.6 from the
Indemnifying Party is unavailable or insufficient to hold harmless an Indemnified Party in respect of any Losses referred to herein, then the Indemnifying Party, in lieu of indemnifying the Indemnified Party, will contribute to the amount paid or
payable by the Indemnified Party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and the Indemnified Party, as well as any other relevant equitable considerations. The relative
faults of the Indemnifying Party and Indemnified Party will be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, was made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the Indemnifying Party’s and Indemnified Party’s relative intent, knowledge, access to information and opportunity
to correct or prevent such action; provided, however, that the liability of any Holder under this Section 1.6(d) will be limited to the amount of the net proceeds received by such Holder in the offering giving rise to such
liability. The amount paid or payable by a party as a result of the Losses or other liabilities referred to above will be deemed to include, subject to the limitations set forth in Sections 1.6(a), 1.8(b) and 1.6(c), any legal
or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding. The Parties agree that it would not be just and equitable if contribution pursuant to this Section 1.6(d) were
determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the foregoing. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) will be entitled to contribution pursuant to this Section 1.6(d). 
  

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 Section 1.7 Rule 144 and Rule 144A; Other Exemptions. With a view to
making available to the Holders the benefits of Rule 144 and Rule 144A promulgated under the Securities Act and other rules and regulations of the SEC that may at any time permit a Holder to sell securities of the Company to the public without
registration, the Company covenants that it will (i) file in a timely manner all reports and other documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder
and (ii) take such further action as each Holder may reasonably request (including, but not limited to, providing any information necessary to comply with Rule 144 and Rule 144A, if available with respect to resales of the Registrable
Securities under the Securities Act), at all times from and after the date which is 90 days following the Company’s IPO, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration
under the Securities Act within the limitation of the exemptions provided by (x) Rule 144 and Rule 144A (if available with respect to resales of the Registrable Securities) under the Securities Act, as such rules may be amended from time to
time or (y) any other rules or regulations now existing or hereafter adopted by the SEC. 
 Section 1.8 Certain
Limitations On Registration Rights. No Holder may participate in any Registration Statement hereunder unless such Holder completes and executes all questionnaires and other documents reasonably required and will sell such Holder’s
Registrable Securities on the basis provided in any underwriting agreement approved by the Holder or Holders entitled hereunder to approve such arrangements. Such Holders of Registrable Securities to be sold by such underwriters may, at their
option, require that any or all of the representations and warranties by, and the other agreements on the part of the Company to and for the benefit of such underwriters, will also be made to and for the benefit of such Holders and that any or all
of the conditions precedent to the obligations of the underwriters under the underwriting agreement be conditions precedent to the obligations of the Holders. 
 Section 1.9 Limitations on Subsequent Registration Rights. The Company represents and warrants that it has not granted registration rights prior to the date hereof that have not yet
been satisfied and agrees that it will not, without the prior written consent of the Holders of at least a majority in interest of the Registrable Securities then outstanding, enter into any agreement (or amendment or waiver of the provisions of any
agreement) with any holder or prospective holder of any securities of the Company that would grant such holder registration rights that are more favorable, pari passu or senior to those granted to the Purchaser hereunder. 
 ARTICLE II. 
 GENERAL PROVISIONS 
 Section 2.1 Entire Agreement. This Agreement,
together with the Schedules hereto and any certificates, documents, instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the Parties in respect of the subject matter hereof and supersedes
all prior understandings, agreements or representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter hereof.  
 Section 2.2 Assignment; Binding Effect. No Party may assign either this Agreement or any of its rights, interests
or obligations hereunder without the prior written approval of the other Party; provided that the rights of a Holder may be transferred or assigned in connection

  

 11 

 
with a transfer of Registrable Securities to the extent that all of the following additional conditions are satisfied: (a) such transfer or assignment
is effected in accordance with applicable securities laws; (b) such transferee or assignee agrees in writing to become subject to the terms of this Agreement; and (c) the Company is given written notice by such Holder of such transfer or
assignment, stating the name and address of the transferee or assignee and identifying the Registrable Securities with respect to which such rights are being transferred or assigned. All of the terms, agreements, covenants, representations,
warranties and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the Parties and their respective successors and permitted assigns. 
 Section 2.3 Notices. All notices or other communications to a Party required or permitted hereunder will be in writing and will be
delivered personally or by facsimile (receipt confirmed electronically) to such Party (or, in the case of an entity, to an executive officer of such party) or will be sent by a reputable express delivery service or by certified mail, postage prepaid
with return receipt requested, addressed as follows: 
 If to the Purchaser, to the address set forth on Schedule I. 
 If to the Company: 
 DayStar
Technologies, Inc. 
 2972 Stender Way 
 Santa Clara, California 
 Attn: Mr. Robert Aldrich 
                   Interim Chief Executive Officer and Chairman 
 with a copy to: 
 Phillips Lytle LLP 
 30 South Pearl Street 
 Albany, New York 12207 
 Attn: Richard E. Honen, Esq. 
 Any party may change the above specified recipient and/or mailing address by notice to all other parties given in the manner herein prescribed. All notices will be deemed given on the day when actually delivered as
provided above (if delivered personally or by facsimile, provided that any such facsimile is received during regular business hours at the recipient’s location) or on the day shown on the return receipt (if delivered by mail or delivery
service). 
 Section 2.4 Specific Performance; Remedies. Each Party agrees that the other Party would be damaged
irreparably if any provision of this Agreement were not performed in accordance with its specific terms or were otherwise breached. Accordingly, the Parties will be entitled to an injunction or injunctions to prevent breaches of the provisions of
this Agreement and to enforce specifically this Agreement and its provisions in any action or proceeding instituted any court of the United States or any state thereof having jurisdiction over the Parties and the matter, in addition to any other
remedy to which they may be entitled, at law or in equity. Except as expressly provided herein, the rights, obligations and remedies created by this 

  

 12 

 
Agreement are cumulative and in addition to any other rights, obligations or remedies otherwise available at law or in equity. Except as expressly provided herein, nothing herein will be
considered an election of remedies. 
 Section 2.5 Governing Law; Waiver of Jury Trial. This Agreement will
be governed by construed under the laws of the State of California, as applied to agreements among California residents, made and to be performed entirely within the State of California, without giving effect to conflicts of laws principles that
would require the application of the laws of any other jurisdiction. THE PARTIES EACH HEREBY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, WAIVE THEIR RESPECTIVE RIGHTS TO JURY TRIAL OF ANY DISPUTE BASED UPON OR ARISING OUT OF THIS AGREEMENT
OR ANY OTHER AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM RELATING TO THE TRANSACTIONS. 
 Section 2.6
Headings. The titles and headings to the Sections herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. This Agreement will be
construed without regard to any presumption or other rule requiring construction hereof against the party causing this Agreement to be drafted. 
 Section 2.7 Amendments. This Agreement may not be amended or modified without the written consent of the Company and at least a majority in interest of the Holders. 

Section 2.8 Extensions; Waivers. No waiver by any Party of any default, misrepresentation or breach of warranty or
covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent such
occurrence. Neither the failure nor any delay on the part of any party to exercise any right or remedy under this Agreement will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or
further exercise of the same or of any other right or remedy. 
 Section 2.9 Severability. The
provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided that if any provision of this Agreement, as applied
to any party or to any circumstance, is judicially determined not to be enforceable in accordance with its terms, the Parties agree that the court judicially making such determination may modify the provision in a manner consistent with its
objectives such that it is enforceable, and/or to delete specific words or phrases, and in its modified form, such provision will then be enforceable and will be enforced. 
 Section 2.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an
original, but all of which together will constitute one and the same instrument. 
 Section 2.11 Adjustments for
Stock Splits, Etc. Wherever in this Agreement there is a reference to a specific number of shares of the Company’s capital stock of any class or series,

  

 13 

 
then, upon the occurrence of any subdivision, combination or stock dividend of such class or series of stock, the specific number of shares so referenced in this Agreement will automatically be
proportionally adjusted to reflect the effect of such subdivision, combination or stock dividend on the outstanding shares of such class or series of stock. 
 [SIGNATURE PAGE FOLLOWS] 
  

 14 

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

							
	COMPANY:	 		 	DAYSTAR TECHNOLOGIES, INC.
				
		 		 	By:	 	 /s/ William S. Steckel

		 		 	Name:	 	William S. Steckel
		 		 	Title:	 	Chief Financial Officer
			
	PURCHASER:	 		 	 TD WATERHOUSE ACCOUNT 240832S
 in trust for Peter Alan Lacey as beneficiary

				
		 		 	By:	 	 /s/ Peter Alan Lacey

		 		 	Name:	 	Peter Alan Lacey
		 		 	Title:	 	Authorized Signatory

 SCHEDULE I 
 PURCHASER 
 Name, Address and Facsimile Number

 TD Waterhouse RRSP Account 240832S 
 c/o Peter Alan Lacey 
 RR#2 Site 19 
 Box 6 Red Deer AB 
 T4N 5E2 
 FAX: (403) 567-0392Warrant to Purchase 1,500,000 Shares of Common Stock

 Exhibit 10.6 
 THIS WARRANT MAY NOT BE TRANSFERRED EXCEPT AS OTHERWISE DESCRIBED BELOW. 
 THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. 
 Warrant No. CSW-1001 
 DAYSTAR TECHNOLOGIES, INC. 
 VOID AFTER 5:00 P.M. PST ON SEPTEMBER 21, 2011 
 Warrant to Purchase 1,500,000 Shares 
 of Common Stock Dated September 21, 2009 
 WARRANT FOR THE PURCHASE OF
SHARES OF COMMON STOCK 
 THIS CERTIFIES THAT, FOR VALUE RECEIVED, TD Waterhouse RRSP Account 240832S, in trust for Peter Alan Lacey
as beneficiary, or its registered assign(s) (the “Holder”), is entitled to purchase from Daystar Technologies, Inc., a Delaware corporation (the “Company”), subject to the terms and conditions set forth in this
Warrant, up to 1,500,000 fully paid and nonassessable shares of common stock (“Common Stock”), of the Company, at any time commencing on the date hereof (the “Commencement Date”) and expiring at 5:00 p.m. PST, on
September 21, 2011 (the “Expiration Date”). The price for each share of Common Stock purchased hereunder (as adjusted as set forth herein, collectively the “Warrant Shares”) is $0.50 per share until expiration
of this Warrant (as adjusted as set forth herein, the “Purchase Price”). 
 The Holder agrees with the Company that this
Warrant is issued, and all the rights hereunder shall be held, subject to all of the conditions, limitations and provisions set forth herein. 
 1. EXERCISE OF WARRANT. 
 A. MANNER OF EXERCISE. This Warrant may be exercised in whole at any
time, or in part from time to time, during the period commencing on the Commencement Date and expiring on the Expiration Date or, if any such day is a day on which banking institutions in

 
the City of San Francisco, California, are authorized by law to close, then on the next succeeding day that shall not be such a day, by presentation and surrender of this Warrant to the Company
at its principal office with the Purchase Form attached as Annex I (the “Purchase Form”) duly executed and accompanied by payment (either in cash or by certified or official bank check, payable to the order of the Company) of
the Purchase Price for the number of shares specified in the Purchase Form and instruments of transfer, if appropriate, duly executed by the Holder or its duly authorized attorney. 
 B. STATUS AS HOLDER OF WARRANT SHARES; TAXES; EXPIRATION. Upon receipt by the Company of this Warrant, the duly executed Purchase
Form and any other appropriate instruments of transfer, together with the Purchase Price, at its office, the Holder shall be deemed to be the holder of record of the Warrant Shares issuable upon such exercise, notwithstanding that the stock transfer
books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder. The Company shall pay any and all documentary stamp or similar issue taxes payable in respect of the
issue or delivery of Warrant Shares. This Warrant shall become void, and all rights hereunder shall cease, at the close of business on the Expiration Date. The Company in its sole discretion may extend the duration of this Warrant by delaying the
Expiration Date. 
 C. ISSUANCE OF CERTIFICATES. As soon as practicable after the exercise of all or any portion of this
Warrant, the Company shall, within three (3) Trading Days (defined below), (i) issue to the Holder a certificate or certificates for the number of full Warrant Shares to which the Holder is entitled, or, at the Holder’s request,
deliver such Warrant Shares electronically if such means is otherwise presently available to and utilized by the Company, registered in such name or names as may be directed by the Holder, and (ii) if this Warrant has not been exercised in
full, issue to the Holder a new countersigned warrant in substantially the same form for the Warrant Shares as to which this Warrant shall not have been exercised. This Warrant may not be exercised by, or securities issued to, any Holder in any
state in which such exercise would be unlawful. 
 2. RESERVATION OF SHARES. The Company will at all times reserve for issuance and
delivery upon exercise of this Warrant all Warrant Shares or other shares of capital stock of the Company (and other securities and property) from time to time receivable upon exercise of this Warrant. All such shares (and other securities and
property) shall be duly authorized and, when issued upon such exercise, shall be validly issued, fully paid and nonassessable and free of all preemptive rights. 
 3. NO FRACTIONAL SHARES. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. If the holder of this Warrant would be entitled, upon the
exercise of this Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, purchase such fractional interest, determined as follows: 
  

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

  

 - 2 - 

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

  

	 	(c)	If the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the current value shall be an amount
determined in such reasonable manner as may be prescribed by the Board of Directors of the Company. 

 4. STOCK DIVIDENDS;
SPLIT-UPS. If after the issuance of this Warrant, and subject to the provisions herein the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock
or other similar event, then, on the effective day thereof, the number of Warrant Shares shall be increased in proportion to such increase in outstanding shares and the then applicable Purchase Price shall be correspondingly decreased. 

5. AGGREGATION OF SHARES. If after the date hereof, and subject to the provisions herein, the number of outstanding shares of Common Stock is
decreased by a consolidation, combination, reverse stock split, or reclassification of shares of Common Stock or other similar event, then, after the effective date of such consolidation, combination or reclassification, the number of Warrant Shares
shall be decreased in proportion to such decrease in outstanding shares and the then applicable Purchase Price shall be correspondingly increased. 
 6. REORGANIZATION, ETC. If after the date hereof any capital reorganization or reclassification of the Common Stock, or consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its
assets to another corporation or other similar event shall be effected, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, lawful and fair provision shall be made whereby the registered holders shall
thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in this Warrant and in lieu of the securities of the Company immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, such shares of stock, securities or assets as may be issued or payable with respect to or in exchange for the number of outstanding shares of such Common Stock equal to the number of shares of Common Stock immediately
theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant, had such reorganization, reclassification, consolidation, merger, or sale not taken place and in such event appropriate provision shall be made with
respect to the rights and interests of the registered holders to the end that the provisions hereof (including, without limitation, provisions for adjustments of the Purchase Price and the Warrant Shares) shall thereafter be applicable, as nearly as
may be in relation to any share of stock, securities or assets thereafter deliverable upon the exercise hereof. The Company shall not effect any such consolidation, merger or sale unless prior to the consummation thereof the successor corporation
(if other than the Company) resulting from such consolidation or merger, or the corporation purchasing such assets, shall assume by written instrument executed and delivered to the Company the obligation to deliver to the registered holders such
shares of stock, securities or assets as, in accordance with the foregoing provisions, such holders may be entitled to purchase. 
  

 - 3 - 

 7. FORM OF WARRANT. This Warrant need not be changed because of any adjustment pursuant to the terms
herein, and any form of warrant issued after such adjustment may state the same Purchase Price and the same number of shares as is stated in this Warrant. However, the Company may at any time in its sole discretion make any change in the form of
this Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any warrant thereafter issued, whether in exchange or substitution for this Warrant or otherwise, may be in the form as so changed. The Company
agrees to notify the Holder of any adjustment to the number of shares or Purchase Price of the Warrant, any changes to the form of this Warrant or any other change pursuant to the terms herein. 
 8. TRANSFER OF WARRANTS. This Warrant and the Warrant Shares have not been registered under the 1933 Act or similar state laws. This Warrant and
Warrant Shares cannot be sold or transferred by an investor unless (i) they are so registered or (ii) an exemption from registration is available at the time of transfer and, if requested by the Company, an opinion of counsel satisfactory
to the Company to the effect that such registration is not required is delivered to the Company. Subject to the foregoing limitations, the Company shall register the transfer, from time to time, of this Warrant upon the Company’s warrant
register, upon surrender of this Warrant for transfer, accompanied by a duly executed Assignment Form in the form attached as Annex II, with signatures properly guaranteed as indicated. Upon any such transfer, a new warrant or warrants
representing the aggregate number of this Warrant shall be issued and this Warrant shall be cancelled by the Company. 
 A restrictive legend
shall be placed upon each share certificate acquired upon exercise of this Warrant in substantially the following form: 
 THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AMENDED, OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
(I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. 
 The foregoing legend will be removed from the certificates representing
any Warrant Shares, at the request of the holder thereof, at such time as they become the subject of an effective resale registration statement or they become eligible for resale pursuant to Rule 144(i) under the 1933 Act. 
  

 - 4 - 

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

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

  

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

  

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

  

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

  

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

 then, and in each such case, the Company will provide written notice (an “Event Notice”) to the Holder at least ten days prior to (i) the record date in the case of (a) above,
specifying the record date and the amount and character of such dividend, distribution or right, and (ii) the effective date of any event specified in clause (b), (c), (d) or (e) above, specifying the effective date on which such
event is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock will be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such event, if applicable. Any
failure to mail an

  

 - 5 - 

 
Event Notice required by this Section 12 or any defect therein or in the mailing thereof will not affect the validity of the corporate action required to be specified in such Event Notice.
Nothing herein shall prohibit the Holder from exercising this Warrant during the ten day period commencing on the date of an Event Notice, provided that such exercise occurs prior to the Expiration Date and the Holder otherwise complies with the
terms hereof. 
 13. DELIVERY OF NOTICE. Notices and other communications to be given to the Holder of this Warrant evidenced by this
certificate shall be deemed to have been sufficiently given, if delivered or mailed, addressed in the name and at the address of such owner appearing on the records of the Company, and if mailed, sent registered or certified mail, postage prepaid.
Notices or other communications to the Company shall be deemed to have been sufficiently given if delivered by hand or mailed, by registered or certified mail, postage prepaid, to the Company at 2972 Stender Way, Santa Clara, California 95054, Attn:
Mr. Robert Aldrich, Interim Chief Executive Officer and Chairman, or at such other address as the Company shall have designated by written notice to the registered owner as herein provided. Notice by mail shall be deemed given when deposited in
the United States mail as herein provided. 
 [Remainder of page intentionally left blank] 
  

 - 6 - 

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

			
	DAYSTAR TECHNOLOGIES, INC.
		
	 By:
	 	 /s/ William S. Steckel

	 Name:
	 	William S. Steckel
	 Title:
	 	 Chief Financial Officer

 [SIGNATURE PAGE TO WARRANT] 

 ANNEX I 
 TO COMMON STOCK PURCHASE WARRANT 
 PURCHASE FORM 
  

			
	 To:
                    
	  	Dated:                     

 The undersigned, pursuant to the provisions set forth in the attached Warrant
(No.     ) (the “Warrant”), hereby irrevocably elects to purchase              shares of the Common Stock covered by such Warrant.

 The undersigned herewith makes payment of the full exercise price for such shares at the price per share provided for in such
Warrant, which is $              in lawful money of the United States. 
 IF PAYMENT FOR ANY OF THE SHARES TO BE ISSUED HEREUNDER IS PURSUANT TO THE CASHLESS EXERCISE PROVISION IN SECTION 1(B) OF THE WARRANT, PLEASE PROVIDE THE FOLLOWING INFORMATION: 
 Number of Warrant Shares to be purchased under this Warrant:
                             
 Closing Price per share of Common Stock on the Trading Day before this Purchase Form and the Warrant are surrendered: $
                     as of             , 20    *

 Number of shares of Common Stock to be issued to the undersigned pursuant to the purchase described herein based upon the
calculation in Section 1(B) of the Warrant:                                 *

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

			
	 [Name]
	 	
		 	  

	 Name:
	 	  

	 Title:
	 	  

	 Address:
	 	  

 [ANNEX I TO WARRANT] 

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

					
	 Name of Assignee
	  	 Address
	  	 No. of Shares

  
 Dated:
                     
  

			
	 [Name]
	 	
	
	  

	 Name:
	 	
	 Title:
	 	

 Signature Guaranteed: 
  

			
	 By:
	 	  

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

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