Document:

Exhibit 10.2

 

 

registration
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made as of __________, 2015, by and among Cornerstone Bancshares, Inc., a Tennessee
corporation (the “Company”), and each of the investors who has executed a joinder hereto (each of which is referred
to in this Agreement as an “Investor,” and, together, collectively, the “Investors”).

 

RECITALS

 

 

WHEREAS, the Company
and each Investor have executed a Subscription Agreement (each, a “Purchase Agreement,” and together, collectively,
the “Purchase Agreements”) whereby each Investor has agreed to purchase Common Stock (as defined below) of the
Company in connection with the Private Placement (as defined below).

 

WHEREAS, the Investors
desire to enter into this Agreement in order to provide for certain registration rights with respect to the Company.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and for other valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

 

		1.	Definitions.

 

For purposes of this
Agreement:

 

“Affiliate”
means, with respect to any specified Person, any other Person who or which, directly or indirectly, controls, is controlled by,
or is under common control with such specified Person, including without limitation any general partner, limited partner, officer,
director, or manager of such Person.

 

“Common Stock”
means shares of the Company’s common stock, $1.00 par value per share, sold pursuant to the Purchase Agreements.

 

“Damages”
means any loss, damage, or liability (joint or several) to which a party hereto may become subject under the Securities Act, the
Exchange Act, or other federal or state law, insofar as such loss, damage, or liability (or any action in respect thereof) arises
out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement
of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto;
(ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make
the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents
or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the
Securities Act, the Exchange Act, or any state securities law.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Holder”
means any holder of Registrable Securities who is a party to this Agreement.

 

“Immediate
Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, domestic partner, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships,
of a natural person referred to herein.

 

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“Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

“Private Placement”
means the sale of up to $15,000,000 of Common Stock pursuant to the Purchase Agreements entered into between each Investor and
the Company.

 

“Purchase
Agreement” has the meaning set forth in the recitals hereto.

 

“Registrable
Securities” means any Common Stock, excluding in all cases, however, any Registrable Securities which have been
previously registered or which have been, or could be, sold to the public either pursuant to a registration statement or Rule 144.

 

“Restricted
Securities” means the securities of the Company required to bear the legend set forth in Section 2.8(b) hereof.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“SEC Rule
144” means Rule 144 promulgated by the SEC under the Securities Act.

 

“SEC Rule
145” means Rule 145 promulgated by the SEC under the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

		2.	Registration Rights.

 

The Company covenants
and agrees as follows:

 

		2.1.	Registration.

 

(a)          Subject
to the limitations of Section 2.1(b) below, as soon as practicable, the Company agrees to use its best efforts to prepare
and file a registration statement with respect to the Registrable Securities, and use its best efforts to cause such registration
statement to become effective under the Securities Act within ninety (90) days after the date of this Agreement and, thereafter,
keep such registration statement effective until the earlier of (i) six (6) months following the date of this Agreement or (ii)
all Registrable Securities are resold pursuant to such registration statement. Following the earlier of (x) six (6) months following
the date of this Agreement, or (y) all of the Registrable Securities are resold pursuant to such registration statement, the Company
may, in its sole discretion, elect to deregister all Registrable Securities covered by such registration statement.

 

(b)          Notwithstanding
the foregoing obligations, if the Company furnishes to the Holders a certificate signed by the Company’s chief executive
officer stating that in the good faith judgment of the Company’s Board of Directors it would be materially detrimental to
the Company and its stockholders for such registration statement to either become effective or remain effective for as long as
such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere
with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature
disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render
the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right
to defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall
be tolled correspondingly, for a period of not more than ninety (90) days; provided, however, that the Company may
not invoke this right more than once in any six (6) month period; and provided further that the Company shall not
register any securities for its own account or that of any other stockholder during such ninety (90) day period other than pursuant
to a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock
purchase, or similar plan; a registration on any form that does not include substantially the same information as would be required
to be included in a registration statement covering the sale of the Registrable Securities; or a registration relating to an SEC
Rule 145 transaction.

 

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		2.2.	Obligations of the Company.

 

Whenever required under
this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

 

(a)          prepare
and file with the SEC a registration statement with respect to the Registrable Securities and use its best efforts to cause such
registration statement to become effective and, thereafter, keep such registration statement effective until the earlier of (i)
six (6) months following the date of this Agreement or (ii) all Registrable Securities are resold pursuant to such registration
statement;

 

(b)          prepare
and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with
such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities
covered by such registration statement;

 

(c)          furnish
to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and
such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

 

(d)          use
its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other
securities or blue-sky laws of such jurisdictions as shall be reasonably required; provided that the Company shall not be
required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless
the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

 

(e)          use
its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed
on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities
issued by the Company are then listed;

 

(f)          provide
a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number
for all such Registrable Securities, in each case not later than the effective date of such registration;

 

(g)          notify
each Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared
effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(h)          after
such registration statement becomes effective, notify each Holder of any request by the SEC that the Company amend or supplement
such registration statement or prospectus.

 

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		2.3.	Furnish Information.

 

It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable
Securities of any Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities
held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such
Holder’s Registrable Securities.

 

		2.4.	Expenses of Registration.

 

All expenses incurred
in connection with registrations, filings, or qualifications pursuant to Section 2, including all registration, filing,
and qualification fees, printers’ and accounting fees, and fees and disbursements of counsel for the Company shall be borne
and paid by the Company.

 

		2.5.	Delay of Registration.

 

No Holder shall have
any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the
result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.

 

		2.6.	Indemnification.

 

If any Registrable
Securities are included in a registration statement under this Section 2:

 

(a)          To
the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers,
directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; and each Person, if any, who
controls such Holder within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay
to each such Holder, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby
in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred;
provided, however, that the indemnity agreement contained in this Section 2.6(a) shall not apply to amounts
paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent
shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are
based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any
such Holder, controlling Person, or other aforementioned Person expressly for use in connection with such registration.

 

(b)          To
the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and
each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company
within the meaning of the Securities Act, legal counsel and accountants for the Company, any other Holder selling securities in
such registration statement, and any controlling Person of any such other Holder, against any Damages, in each case only to the
extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written
information furnished by or on behalf of such Holder expressly for use in connection with such registration; and each such Holder
will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection
with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided,
however, that the indemnity agreement contained in this Section 2.6(b) shall not apply to amounts paid in settlement
of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably
withheld.

 

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(c)          Promptly
after receipt by an indemnified party under this Section 2.6 of notice of the commencement of any action (including
any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim
in respect thereof is to be made against any indemnifying party under this Section 2.6, give the indemnifying party notice
of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying
party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together
with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one
separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between
such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the indemnifying
party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to
the indemnified party under this Section 2.6, to the extent that such failure materially prejudices the indemnifying party’s
ability to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 2.6.

 

(d)          Notwithstanding
anything else herein to the contrary, the foregoing indemnity agreements of the Company and the Holders are subject to the condition
that, insofar as they relate to any Damages arising from any untrue statement or alleged untrue statement of a material fact contained
in, or omission or alleged omission of a material fact from, a preliminary prospectus (or necessary to make the statements therein
not misleading) that has been corrected in the form of prospectus included in the registration statement at the time it becomes
effective, or any amendment or supplement thereto filed with the SEC pursuant to Rule 424(b) under the Securities Act (the “Final
Prospectus”), such indemnity agreement shall not inure to the benefit of any Person if a copy of the Final Prospectus
was furnished to the indemnified party and such indemnified party failed to deliver, at or before the confirmation of the sale
of the shares registered in such offering, a copy of the Final Prospectus to the Person asserting the loss, liability, claim, or
damage in any case in which such delivery was required by the Securities Act.

 

(e)          To
provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any party
otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 2.6 but it is
judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time
to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding
the fact that this Section 2.6 provides for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any party hereto for which indemnification is provided under this Section 2.6, then,
and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which
they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each
of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted
in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the
untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information
supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information,
and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case, no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation.

 

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(f)          The
obligations of the Company and Holders under this Section 2.6 shall survive the completion of any offering of Registrable
Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

 

		2.7.	Reports Under Exchange
Act.

 

With a view to making
available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a
Holder to sell securities of the Company to the public without registration, the Company shall:

 

(a)          make
and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times
after the effective date of the registration statement filed by the Company in connection with this Agreement;

 

(b)          use
commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company
under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements);
and

 

(c)          furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written
statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days
after the effective date of the registration statement filed by the Company in connection with this Agreement), the Securities
Act, and the Exchange Act; (ii) a copy of or reference to the most recent annual or quarterly report of the Company and such other
reports and documents so filed by the Company; and (iii) such other information as may be reasonably requested in availing any
Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration.

 

		2.8.	Restrictions on Transfer.

 

(a)          The
Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize any such sale,
pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance
with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the
Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions
specified in this Agreement; provided, however, the transferor shall, within sixty (60) days after such transfer
or assignment, furnish to the Company written notice of the name and address of such transferee or assignee and the securities
with respect to which such registration rights are being assigned. Notwithstanding the foregoing and anything to the contrary set
forth herein, it is understood by the parties hereto that each Investor and any of its affiliated investment funds may, in its
sole discretion, transfer all or any portion of the securities owned or held beneficially by it to any other affiliated investment
fund or grant an affiliated investment fund participation rights therein, and any of the foregoing persons may distribute any such
securities to any direct or indirect shareholder, member or partner of such person; provided that (i) the transferor shall,
within thirty (30) days after such transfer or assignment, furnish to the Company written notice of the name and address of such
transferee or assignee and the securities with respect to which such registration rights are being assigned, and (ii) such transferee
agrees to be bound by the relevant terms and conditions of this Agreement.

 

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(b)          Each
certificate or instrument representing (i) the Registrable Securities, and (ii) any other securities issued in respect
of the securities referenced in clause (i), upon any stock split, stock dividend, recapitalization, merger, consolidation,
or similar event, shall (unless otherwise permitted by the provisions of Section 2.8(c)) be stamped or otherwise imprinted
with a legend substantially in the following form:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS
OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER
APPLICABLE LAWS.”

 

 

The Holders consent to
the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order
to implement the restrictions on transfer set forth in this Section 2.8.

 

(c)          The
holder of each certificate representing Restricted Securities, by acceptance thereof, agrees to comply in all respects with the
provisions of this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there
is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give
notice to the Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe
the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the
Company, shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and
whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed
transaction may be effected without registration under the Securities Act; (ii) a “no action” letter from the
SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result
in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably
satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may
be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled
to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company.
The Company will not require such a legal opinion or “no action” letter (x) in any transaction in compliance with
SEC Rule 144 or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder
for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 2.8.
Each certificate or instrument evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer
is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Section 2.8(b), except that
such certificate shall not bear such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend
is not required in order to establish compliance with any provisions of the Securities Act.

 

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		3.	Miscellaneous.

 

		3.1.	Successors and Assigns.

 

The rights under this
Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i)
is an Affiliate, partner, member, limited partner, retired partner, retired member, or stockholder of a Holder; or (ii) is a Holder’s
Immediate Family Member or trust (or other estate-planning entity) for the benefit of an individual Holder or one or more of such
Holder’s Immediate Family Members; provided, however, that (x) the Company is, within a reasonable time after
such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect
to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company
to be bound by and subject to the terms and conditions of this Agreement. The terms and conditions of this Agreement inure to the
benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees
any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

 

		3.2.	Governing Law.

 

This Agreement shall
be governed by, and construed in accordance with, the laws of the State of Tennessee, regardless of the laws that might otherwise
govern under applicable principles of conflicts of law.

 

		3.3.	Counterparts; Facsimile.

 

This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which together shall constitute
one and the same document. This Agreement may be executed by facsimile signatures each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

 

		3.4.	Titles and Subtitles.

 

The titles and subtitles
used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

 

		3.5.	Notices.

 

All notices, requests,
consents and other communications under this Agreement shall be in writing and shall be deemed delivered (a) three business
days after being sent by registered or certified mail, return receipt requested, postage prepaid or (b) one business day after
being sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, in each case to the intended
recipient as set forth below:

 

If to the Company,
at Cornerstone Bancshares, Inc., 835 Georgia Avenue, Chattanooga, TN 37402, Attention: CEO, or at such other address as may have
been furnished in writing by the Company to the other parties hereto, with a copy (which shall not constitute notice) to Miller
& Martin, PLLC, 832 Georgia Avenue, Suite 1200, Chattanooga, TN 37402, Attention: Roddy Bailey; or

 

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If to an Investor,
at its address (and to any counsel for such Investor specified in writing to the Company) set forth in the Company’s records
from time to time.

 

Any party may give
any notice, request, consent or other communication under this Agreement using any other means (including, without limitation,
personal delivery, messenger service, telecopy, first class mail or electronic mail), but no such notice, request, consent or other
communication shall be deemed to have been duly given unless and until it is actually received by the party for whom it is intended.
Any party may change the address to which notices, requests, consents or other communications hereunder are to be delivered by
giving the other parties notice in the manner set forth in this Section.

 

		3.6.	Amendments and Waivers.

 

Any term of this Agreement
may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and
either retroactively or prospectively) only with the written consent of (i) the Company, and (ii) the holders of at least a majority
of the Registrable Securities; provided that the Company may in its sole discretion waive compliance with Section 2.8(c)
(and the Company’s failure to object promptly in writing after notification of a proposed assignment allegedly in violation
of Section 2.8(c) shall be deemed to be a waiver); and provided further that any provision hereof may be waived
by any waiving party on such party’s own behalf, without the consent of any other party. Notwithstanding the foregoing, this
Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor
without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same
fashion. The Company shall give prompt notice of any amendment or termination hereof to any party hereto that did not consent in
writing to such amendment or termination. Any amendment, termination, or waiver effected in accordance with this Section 3.6
shall be binding on all parties hereto, regardless of whether any such party has consented thereto. No waivers of or exceptions
to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further
or continuing waiver of any such term, condition, or provision.

 

		3.7.	Severability.

 

In case any one or
more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal,
or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent
permitted by law.

 

		3.8.	Additional Investors.

 

Notwithstanding anything
to the contrary contained herein, if the Company issues additional shares of Common Stock after the date hereof in the Private
Placement, any purchaser of such shares of Common Stock in the Private Placement may become a party to this Agreement by executing
a joinder signature page to this Agreement and thereafter shall be deemed a Investor for all purposes hereunder. No action or consent
by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor
has agreed in writing to be bound by all of the obligations as a Investor hereunder.

 

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		3.9.	Entire Agreement.

 

This Agreement and
the Purchase Agreements entered into between each Investor and the Company constitute the full and entire understanding and agreement
between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject
matter hereof existing between the parties are expressly canceled.

 

		3.10.	Dispute Resolution.

 

With respect to any
suit, action or other proceeding arising out of or based upon this Agreement, the parties irrevocably submit to the jurisdiction
of the federal or state courts located in Hamilton County, Tennessee, which submission shall be exclusive. The parties hereby waive,
and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it
is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment
or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding
is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. The prevailing party shall
be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition to any other relief to which such
party may be entitled.

 

3.11.         Waiver
of Jury Trial. THE UNDERSIGNED IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING
OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT.

  

		3.12.	Delays or Omissions.

 

No delay or omission
to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party
under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be
construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring,
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not
alternative.

 

[Signature Page Follows]

 

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

 

	 	COMPANY:
	 	 
	 	CORNERSTONE BANCSHARES, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Cornerstone
Bancshares, Inc.

Signature
Page to 

Registration
Rights Agreement

 

     

     

    

  

JOINDER TO REGISTRATION
RIGHTS AGREEMENT

 

This JOINDER (the “Joinder)
to the Registration Rights Agreement (the “Agreement”), dated as of __________, 2015, by and among Cornerstone
Bancshares, Inc., a Tennessee corporation (the “Company”), and certain equityholders of the Company, is made
as of __________, 2015 by and between the Company and ____________________ (“Investor”). Capitalized terms used
herein but not otherwise defined shall have the meanings set forth in the Agreement.

 

WHEREAS, on the date
hereof, Investor has acquired __________ shares of Common Stock of the Company pursuant to the Private Placement and the Investor
desires to become a party to the Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties to this Joinder hereby agree as follows:

 

1.          Agreement
to be Bound. Investor hereby (i) acknowledges that it has received and reviewed a complete copy of the Agreement and (ii) agrees
that upon execution of this Joinder, it shall become a party to the Agreement and shall be fully bound by, and subject to, all
of the covenants, terms and conditions of the Agreement as though an original party thereto and shall be deemed an Investor for
all purposes thereof.

 

2.          Successors
and Assigns. Except as otherwise provided herein, this Joinder shall bind and inure to the benefit of and be enforceable by
the Company and its successors and assigns and Investor and any subsequent holders of Registrable Securities and the respective
successors and assigns of each of them, so long as they hold any Registrable Securities.

 

3.          Counterparts.
This Joinder may be executed in separate counterparts each of which shall be an original and all of which taken together shall
constitute one and the same agreement.

 

4.          Notices.
For purposes of Section 3.5 of the Agreement, all notices, demands or other communications to Investor shall be directed
to:

 

____________________

____________________

____________________

 

5.          Governing
Law. All questions concerning the construction, validity and interpretation of this Joinder shall be governed by and construed
in accordance with the domestic laws of the State of Tennessee, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Tennessee or any other Jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Tennessee.

 

	Cornerstone Bancshares, Inc.	 	 
	 	 	 
	By:	 	 	By:	 
	Name:	 	Name:
	Title:	 	Title:Exhibit
4.1

 

FORM
OF 

WARRANT
AGREEMENT 

 

THIS WARRANT AGREEMENT (“Warrant
Agreement”), dated as of [Ÿ],
2015, by and between RMR INDUSTRIALS, INC., a Nevada corporation (the “Company”), and Corporate
Stock Transfer, Inc., a Colorado corporation (the “Warrant Agent”). 

 

WITNESSETH

 

WHEREAS, the Company may
engage in an initial public offering of up to [Ÿ]
units (the “Units”) at an offering price of $[Ÿ]
per Unit (the “Offering”). Each Unit consists of one share of Class B common stock, $0.001 par value,
of the Company (the “Common Stock”) and one Warrant to purchase [Ÿ]
share of Common Stock (each, a “Warrant “ and collectively, the “Warrants”).
The Warrants are exercisable upon the terms and conditions and subject to adjustment in certain circumstances, all as set forth
in this Warrant Agreement. 

 

WHEREAS, the Company may
engage in the Offering of the Units, and in connection therewith, may issue and deliver up to [Ÿ]
underlying Warrants to public investors. Each Warrant entitles the holder thereof to purchase [Ÿ]
share of Common Stock at the purchase price of $[Ÿ]
per share (the “Warrant Price”), subject to adjustment as described herein, at any time commencing as
of the Separation Date (as defined herein) and ending on [Ÿ],
2020 (the “Expiration Date”) or upon earlier redemption. 

 

WHEREAS, if the Company determines to engage in the Offering,
the Company will file with the Securities and Exchange Commission a Registration Statement on Form S-1 for the registration under
the Securities Act of 1933, as amended (the “Act”), of, among other securities, the Units, the Common
Stock, and the Warrants.

 

WHEREAS, the Company desires to appoint the Warrant Agent
to act on its behalf in connection with the (i) issuance, transfer and exchange of the Book Entry Warrant Certificates (as defined
herein) or Definitive Warrant Certificates (as defined herein), as applicable, representing the Warrants (collectively, the “Warrant
Certificates”), (ii) the exercise of the Warrants by the registered holders thereof (together with any permitted
registered successors or assigns, the “Registered Holders”) and (iii) the adjustment of the Warrants
in certain events as contained herein in accordance with the terms of the Warrants and this Warrant Agreement;

 

NOW, THEREFORE, in consideration of the mutual agreements
herein contained, the parties hereto hereby agree as follows:

 

 

1.
APPOINTMENT OF WARRANT AGENT. The Company hereby appoints the Warrant Agent as its agent to issue the Warrant Certificates,
as set forth herein, subject to resignation or replacement of the Warrant Agent as provided herein. The Warrant Agent agrees to
accept such appointment, subject to the terms and conditions as set forth herein and to issue, and exchange the Warrant Certificates
pursuant to the terms provided for herein and to notify the Company’s transfer agent to issue the certificates representing
the appropriate number of shares of Common Stock (or other consideration) upon exercise of the Warrants. The Company agrees to
issue and honor the Warrants on the terms and conditions as herein set forth and to instruct its transfer agent to issue its Common
Stock (or other securities) upon notice from the Warrant Agent of the proper exercise of any Warrant. The Warrant Agent is hereby
empowered to enforce any rights of the Registered Holders for the benefit of any Registered Holders, subject to the terms and
conditions contained herein.

 

2.
ISSUANCE OF WARRANT CERTIFICATES.

 

2.1.
Form of Warrant Certificate. All Warrants shall be issued substantially in the form annexed hereto as Exhibit A.
The terms of any such Warrant Certificate are incorporated herein by reference. All of the Warrants shall initially be represented
by one or more book-entry certificates (each a “Book Entry Warrant Certificate”).

 

    	 

     

    

 

2.2.
Execution of Warrants. The Warrants shall be issued in registered form only. No Warrants shall have been duly and validly
issued until a Registered Holder has received a Warrant Certificate executed by the Chief Executive Officer, the President, the
Secretary, Treasurer or Assistant Secretary of the Company and such Certificate is countersigned by an authorized officer of the
Warrant Agent. Any Warrant Certificate may be executed by the officers of the Company by means of a facsimile signature. In the
event the person whose signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person
signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such
at the date of issuance.

 

2.3. Maximum Number of Warrants.
The Company hereby authorizes the Warrant Agent to issue up to an aggregate of [Ÿ]
Warrants pursuant to the Company’s written instruction and the terms hereof, subject to adjustment as hereafter provided
in Section 4 hereof. 

 

2.4. Rights of A Registered
Holder. Subject to adjustment as provided herein, each Warrant shall evidence the right to purchase [Ÿ]
share of the Company’s Common Stock at the Warrant Price. Following the Expiration Date, any Warrant not previously exercised
shall be null and void, and all rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at
the close of business on the Expiration Date. 

 

2.5.
Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the registration
of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant
Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise
in accordance with instructions delivered to the Warrant Agent by the Company. All of the Warrants shall initially be represented
by one or more Book-Entry Warrant Certificates deposited with the Depository Trust Company (the “Depository”)
and registered in the name of CEDE & Co., a nominee of the Depository. Ownership of beneficial interests in the Warrants
shall be shown on, and the transfer of such ownership shall be effected through, records maintained by (i) the Depository
or its nominee for each Book-Entry Warrant Certificate, or (ii) institutions that have accounts with the Depository (such
institution, with respect to a Warrant in its account, a “Participant”).

 

If
the Depository subsequently ceases to make its book-entry settlement system available for the Warrants, the Company may instruct
the Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Warrants are not eligible
for, or it is no longer necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide written
instructions to the Depository to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company
shall instruct the Warrant Agent to deliver to the Depository definitive certificates representing the Warrants (“Definitive
Warrant Certificates”) in physical form evidencing such Warrants. Such Definitive Warrant Certificates shall be
in the form annexed hereto as Exhibit A, as applicable, with appropriate insertions, modifications, and omissions, as provided
above.

 

2.6.
Beneficial Owner; Registered Holder. The term “beneficial owner” shall mean, on or after the Separation Date
(as defined below), any person in whose name ownership of a beneficial interest in the Warrants evidenced by a Book-Entry Warrant
Certificate is recorded in the records maintained by the Depository or its nominee, and prior to the Separation Date, the person
in whose name the Unit of which such Warrant or part thereof was originally part of, as registered upon the register relating
to such Units. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem
and treat the person in whose name such Warrant shall be registered upon the Warrant Register (the “Registered Holder”),
as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other
writing on the Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise
thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

    	 

     

    

 

2.7. Detachability of Warrants.
The securities comprising the Units will not be separately transferable until [Ÿ],
2016 (the “Separation Date”). On or after the Separation Date, the Registered Holder may surrender a
Warrant to the Warrant Agent, whereupon the Warrant Agent shall execute and deliver to the Registered Holder a new Definitive Warrant
Certificate entitling the Registered Holder to purchase the same number of shares of Common Stock, but without the legend which
states: 

 

“UNTIL [Ÿ],
2016, THIS WARRANT MAY NOT BE TRANSFERRED SEPARATELY, SPLIT UP, COMBINED OR EXCHANGED, BUT MAY ONLY BE TRANSFERRED, SPLIT UP, COMBINED
OR EXCHANGED TOGETHER WITH THE SHARES OF COMMON STOCK OF RMR INDUSTRIALS, INC. WITH WHICH IT WAS SOLD AS A UNIT.” 

 

 

3.
EXERCISE OF WARRANT.

 

3.1.
Exercise Period. The Warrants may be exercised, in whole or in part, at any time commencing on the Separation Date and
ending at 5:00 P.M., New York City time, on the Expiration Date or earlier upon redemption (the “Exercise Period”);
provided, however that Warrants will only be exercisable if a registration statement relating to the Common Stock issuable upon
exercise of the Warrants is effective and current. If the Expiration Date is not a Business day (defined below), it shall automatically
be extended to 5:00 P.M. on the next day which is a Business Day. “Business Day” means any day other
than a Saturday, Sunday, or holiday on which banks in New York City are authorized by law to close.

 

3.2.
Means of Exercise. In order to exercise a Warrant, the Registered Holder must present and surrender the Warrant Certificate
to the Warrant Agent at its office, with the subscription form on the back of the Warrant Certificate (the “Subscription
Form”) duly executed and accompanied by payment in full, in the form of cash, by bank wire transfer in immediately
available funds, or by certified check or bank draft payable to the Company or its successor, of the aggregate Warrant Price for
the number of shares of Common Stock specified in such Subscription Form.

 

3.3.
Payment. Subject to the provisions of the Warrant and this Warrant Agreement, a Warrant may be exercised by the Registered
Holder thereof by delivering, not later than 5:00 P.M., New York City time, on any Business Day during the Exercise Period (the
“Exercise Date”) to the Warrant Agent at the office of the Warrant Agent, or at the office of its successor
as Warrant Agent, (i) the Definitive Warrant Certificate evidencing the Warrants to be exercised, or in the case of a Book-Entry
Warrant Certificate, the Warrants to be exercised (the “Book-Entry Warrants”), free on the records of
the Depositary to an account of the Warrant Agent at the Depositary designated for such purpose in writing by the Warrant Agent
to the Depository from time to time, (ii) the Subscription Form properly completed and executed, or in the case of a Book-Entry
Warrant Certificate, properly delivered by the Participant in accordance with the Depository’s procedures; and (iii) the
Warrant Price for each full share of Common Stock as to which the Warrants are exercised and any and all applicable taxes due
in connection with the exercise of the Warrants, the exchange of the Warrants for the Common Stock, and the issuance of the Common
Stock in full, in lawful money of the United States, by cash, by bank wire transfer in immediately available funds, or by certified
check or bank draft payable to the Company.

 

(a)
If any of (i) the Definitive Warrant Certificate or the Book-Entry Warrant Certificate, (ii) the Subscription Form,
or (iii) the Warrant Price therefor, is received by the Warrant Agent after 5:00 P.M., New York City time, on a specified
day or if such day is not a Business Day, the Warrants will be deemed to be received and exercised on, and the applicable Exercise
Date shall be the Business Day next succeeding such day. If the Warrants are received or deemed to be received after the Expiration
Date, the exercise thereof will be null and void and any funds delivered to the Warrant Agent will be returned to the Registered
Holder or Participant, as the case may be, as soon as practicable, and all rights thereunder and all rights in respect thereof
under this Warrant Agreement shall cease at the close of business on the Expiration Date. In no event will interest accrue on
funds deposited with the Warrant Agent in respect of an exercise or attempted exercise of Warrants. The validity of any exercise
of Warrants will be determined by the Company in its sole discretion and such determination will be final and binding upon the
Registered Holder and the Warrant Agent. Neither the Company nor the Warrant Agent shall have any obligation to inform a Registered
Holder of the invalidity of any exercise of Warrants.

 

    	 

     

    

 

(b)
The Warrant Agent shall deposit all funds received by it in payment of the Warrant Price in the account of the Company maintained
with the Warrant Agent for such purpose and shall advise the Company via email or telephone at the end of each Business Day on
which funds for the exercise of the Warrants are received of the amount so deposited to its account. The Warrant Agent shall promptly
confirm such email or telephonic advice to the Company in writing.

 

(c)
The Warrant Agent shall, by 11:00 A.M., New York City time, on the Business Day following the Exercise Date of any Warrant, advise
the Company and the transfer agent and registrar in respect of (i) the shares of Common Stock issuable upon such exercise
as to the number of Warrants exercised in accordance with the terms and conditions of this Warrant Agreement, (ii) the instructions
of each Registered Holder or Participant, as the case may be, with respect to delivery of the shares of Common Stock issuable
upon such exercise, and the delivery of Definitive Warrant Certificates, as appropriate, evidencing the balance, if any, of the
Warrants remaining after such exercise, (iii) in case of a Book-Entry Warrant Certificate, the notation that shall be made
to the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate,
evidencing the balance, if any, of the Warrants remaining after such exercise, and (iv) such other information as the Company
or such transfer agent and registrar shall reasonably require.

 

(d)
The Company shall, by 5:00 P.M., New York City time, on the third Business Day next succeeding the Exercise Date of any Warrant
and the clearance of the funds in payment of the Warrant Price, execute, issue, and deliver to the Warrant Agent, the shares of
Common Stock to which such Registered Holder or Participant, as the case may be, is entitled, in fully registered form, registered
in such name or names as may be directed by such Registered Holder or the Participant, as the case may be. Upon receipt of such
shares of Common Stock, the Warrant Agent shall, by 5:00 P.M., New York City time, on the fifth Business Day next succeeding such
Exercise Date, transmit such shares of Common Stock to or upon the order of the Registered Holder or Participant, as the case
may be.

 

(e)
In lieu of delivering physical certificates representing the shares of Common Stock issuable upon exercise, provided the Company’s
transfer agent is participating in the Depository Fast Automated Securities Transfer program, the Company shall use its reasonable
best efforts to cause its transfer agent to electronically transmit the shares of Common Stock issuable upon exercise to the Registered
Holder or Participant by crediting the account of Registered Holder’s prime broker with Depository or of the Participant
through its Deposit Withdrawal Agent Commission system. The time periods for delivery described in the immediately preceding paragraph
shall apply to the electronic transmittals described herein.

 

(f)
The accrual of dividends, if any, on the shares of Common Stock issued upon the valid exercise of any Warrant will be governed
by the terms generally applicable to the shares of Common Stock. Starting with the Exercise Date, the former Registered Holder
of the Warrants exercised will be entitled to the benefits generally available to other holders of shares of Common Stock and
such former Registered Holder’s right to receive payments of dividends and any other amounts payable in respect of the shares
of Common Stock shall be governed by, and shall be subject to, the terms and provisions generally applicable to such shares of
Common Stock.

 

(g)
Warrants may be exercised only in whole numbers of shares of Common Stock. No fractional shares of Common Stock are to be issued
upon the exercise of the Warrant, but rather the number of shares of Common Stock to be issued shall be rounded down to the nearest
whole number. If fewer than all of the Warrants evidenced by a Warrant Certificate are exercised, a new Warrant Certificate for
the number of unexercised Warrants remaining shall be executed by the Company and countersigned by the Warrant Agent, and delivered
to the holder of such Warrant Certificate at the address specified on the books of the Warrant Agent or as otherwise specified
by such Registered Holder. If fewer than all the Warrants evidenced by a Book-Entry Warrant Certificate are exercised, a notation
shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant,
as appropriate, evidencing the balance of the Warrants remaining after such exercise.

 

(h)
The Company will pay all documentary stamp or other taxes or governmental charge attributable to the initial issuance of shares
of Common Stock upon the exercise of Warrants; provided, however, that the Company shall not be required to pay any stamp or other
tax or governmental charge required to be paid in connection with any transfer involved in the issue of the shares of Common Stock
in a name other than that of the Registered Holder of a Warrant Certificate surrendered upon the exercise of Warrants; and in
the event that any such transfer is involved, the Company shall not be required to issue or deliver any shares of Common Stock
until such tax or other charge shall have been paid or it has been established to the Company’s satisfaction that no such
tax or other charge is due.

 

    	 

     

    

 

3.4.
Issuance of Warrant Certificates. Subject to Section 5.4 of this Warrant Agreement, and notwithstanding the
foregoing, the Company shall not be obligated to deliver any securities pursuant to the exercise of a Warrant unless (i) a
registration statement under the Act with respect to the Common Stock is effective or (ii) in the opinion of counsel to the
Company, the exercise of the Warrants is exempt from the registration requirements of the Act and such securities are qualified
for sale or exempt from qualification under applicable securities laws of the states or other jurisdictions in which the Registered
Holders reside. Warrants may not be exercised by, or securities issued to, any Registered Holder in any state in which such exercise
would be unlawful.

 

3.5.
Valid Issuance. All shares of Common Stock issued upon the proper exercise of a Warrant in conformity with this Warrant
Agreement shall be validly issued, fully paid, and non-assessable.

 

3.6.
Date of Issuance. Each person in whose name any such certificate for shares of Common Stock is issued shall for all purposes
be deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered and payment of the
Warrant Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder
of such shares at the close of business on the next succeeding date on which the stock transfer books are open.

 

3.7.
No Cash Settlement. Notwithstanding anything to the contrary contained in this Warrant Agreement, under no circumstances
will the Company be required to net cash settle the exercise of the Warrants. As a result, any or all of the Warrants may expire
worthless.

 

4.
ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES PURCHASABLE AND OTHER ITEMS IN CERTAIN EVENTS. The Warrant Price
and the number of shares of Common Stock purchasable upon exercise of any Warrant and the other terms and conditions of the Warrant
shall be subject to adjustment and modification as follows in the circumstances provided:

 

4.1.
The Warrant Price and the resulting number of shares of Common Stock issuable under each Warrant shall be subject to adjustment
as follows:

 

(a)
If the Company, after the date of this Warrant Agreement but before its exercise:

 

		(i)	pays
                                         a dividend or any other distribution payable in shares of its Common Stock;

 

		(ii)	subdivides
                                         its outstanding shares of Common Stock into a greater number of shares;

 

		(iii)	combines
                                         its outstanding shares of Common Stock into a smaller number of shares; or

 

		(iv)	issues
                                         by reclassification of its shares of Common Stock any shares of capital stock of the
                                         Company (other than a change in par value);

 

the
Warrant Price in effect and the number of shares purchasable upon the exercise of such Warrant immediately prior to such action
shall be adjusted so that the Registered Holder of each Warrant may receive the number of shares of Common Stock of the Company
to which it would have been entitled upon such action if such Registered Holder had so exercised the Warrant immediately prior
thereto. An adjustment made pursuant to this Section 4 shall become effective immediately after the record date for
the determination of owners of Common Stock entitled thereto in the case of a dividend or distribution, and shall become effective
immediately after the effective date in the case of a subdivision, combination, reclassification, or issuance of rights, options
or warrants retroactive to the record date, if any, for such event.

 

(b)
No payment or adjustment shall be made by or on behalf of the Company on account of any cash dividends on the Common Stock issued
upon any exercise of a Warrant which was declared for payment to the holders of Common Stock of record as of a date prior to the
date on which such Warrant is exercised.

 

    	 

     

    

 

(c)
Upon each adjustment of the Warrant Price made pursuant to this Section 4, each Warrant shall thereafter (until another
such adjustment) evidence the right to purchase that number of shares of Common Stock (calculated to the nearest hundredth) obtained
by dividing the initial Warrant Price by the Warrant Price in effect after such adjustment.

 

(d)
The Company’s failure to give the notice required by this Section 4 or any defect therein shall not affect the
validity of such action listed under this Section 4.1.

 

(e)
For the purpose of this Section 4.1, the term “shares of Common Stock” shall mean (i) the class of
Common Stock designated as the Common Stock at the date of this Warrant Agreement, or (ii) any other class of Common Stock
resulting from successive changes or reclassifications of such shares consisting solely of changes in par value, from no par value
to par value or from par value to no par value. In the event that at any time, as a result of an adjustment made pursuant to this
Section 4, the Registered Holder shall become entitled to purchase any shares of the Company other than shares of
Common Stock, thereafter the number of such other shares so purchasable upon exercise of each Warrant and the Warrant Price of
such shares shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the shares of Common Stock contained in this Section 4.1.

 

4.2.
Liquidation, Dissolution or Winding Up. Notwithstanding any other provisions hereof, in the event of the liquidation, dissolution,
or winding up of the affairs of the Company (other than in connection with a merger or sale or conveyance of all or substantially
all of its assets outside of the ordinary course of business), the right to exercise each Warrant shall terminate and expire at
the close of business on the last full business day before the earliest date fixed for the payment of any distributable amount
on the Common Stock. The Company shall cause a notice to be mailed to each Registered Holder at least twenty (20) days prior
to the applicable record date for such payment stating the date on which such liquidation, dissolution or winding up is expected
to become effective, and the date on which it is expected that holders of shares of Common Stock of record shall be entitled to
exchange their shares of Common Stock for securities or other property or assets (including cash) deliverable upon such liquidation,
dissolution or winding up, and that each Registered Holder may exercise outstanding Warrants during such 20-day period and, thereby,
receive consideration in the liquidation on the same basis as other previously outstanding shares of the same class as the shares
acquired upon exercise. The Company’s failure to give notice required by this Section 4.2 or any defect therein
shall not affect the validity of such liquidation, dissolution or winding up.

 

4.3.
Merger, Consolidation, etc.

 

(a)
In case of any merger of the Company into any other entity or sale or conveyance of all or substantially all of its assets outside
of the ordinary course of business, or similar reorganization, including, but not limited to, in connection with the formation
of a holding company (such merger, sale, conveyance, or reorganization a “Change”), then, as a condition
of such Change, lawful and adequate provisions shall be made whereby the Registered Holders shall thereafter have the right to
receive upon payment of the Warrant Price in effect immediately prior to such Change, upon the basis and upon the terms and conditions
specified in this Warrant Agreement (including, but not limited to, all provisions contained in this Section 4), and
in lieu of the shares of the Company’s Common Stock purchasable upon the exercise of the Warrants, such shares of Common
Stock, securities, cash or assets which such Registered Holder would have been entitled to receive after the happening of such
Change had such Warrant been exercised immediately prior to such Change. The provisions of this Section 4.3 shall
similarly apply to successive Changes. The Company shall cause a notice to be mailed to each Registered Holder at least twenty
(20) days prior to the applicable record date for the Change covered by this Section 4.3(a) and shall provide
notice of the Change and shall set forth the first and last date on which the Registered Holder may exercise outstanding Warrants.
The Company’s failure to give the notice required by this Section 4.3(a) or any defect therein shall not affect
the validity of the Change covered by this Section 4.3(a).

 

    	 

     

    

 

(b)
Notwithstanding the foregoing, if as a result of such Change, holders of the Company’s Common Stock shall receive consideration
other than solely in shares of Common Stock or other securities in exchange for their Common Stock, the Company may, at its option,
fulfill its obligation hereunder by causing the notice required by Section 4.3(a) hereof to include notice to Registered
Holders of the opportunity to exercise their Warrants before the applicable record date for the Change, and thereby receive consideration
in the Change, on the same basis as other previously outstanding shares of the same class as the shares acquired upon exercise.
If the notice specified in the preceding sentence is provided to Registered Holders, Warrants not exercised in accordance with
this Section 4.3(b) before consummation of the Change shall be cancelled and become null and void on the effective
date of the Change. The notice provided by the Warrant Agent pursuant to this Section 4.3(b) shall include a description
of the terms of this Warrant Agreement providing for cancellation of the Warrants in the event that Warrants are not exercised
by the prescribed date. The Company’s failure to give any notice required by this Section 4.3(b) or any defect
therein shall not affect the validity of any such Change.

 

4.4.
Duty to Make Fair Adjustments in Certain Cases. If any event occurs as to which in the opinion of the Board of Directors
of the Company the other provisions of this Section 4 are not strictly applicable, or if strictly applicable would
not fairly protect the purchase rights of the Registered Holders in accordance with the essential intent and principles of this
Warrant Agreement, then the Board of Directors shall make an adjustment in the application of such provisions, in accordance with
such essential intent and principles, as to protect the purchase rights of the Registered Holders. Notwithstanding the foregoing,
the issuance of Common Stock or any securities convertible into Common Stock by the Company either for cash or in a merger, consolidation,
exchange or acquisition shall not, by itself, constitute a basis for requiring any adjustment in the Warrants unless specifically
enumerated herein.

 

4.5.
Good Faith Determination. Any determination as to whether an adjustment or limitation of exercise is required pursuant
to this Section 4 (and the amount of any adjustment) shall be binding upon the Registered Holders and the Company
if made in good faith by the Board of Directors.

 

4.6.
Notice of Adjustment. Upon every adjustment of the Warrant Price or the number of shares issuable on exercise of a Warrant,
the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from
such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a
Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon
the occurrence of any event specified in Sections 4.1, 4.2, or 4.3, then, in any such event, the Company
shall give written notice to the Registered Holder, at the last address set forth for such holder in the Warrant Register, of
the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality
or validity of such event

 

4.7.
No Change of Warrant Certificate Necessary. Irrespective of any adjustment in the Warrant Price or in the number or kind
of shares issuable upon exercise of the Warrants, the Warrant Certificates may continue to express the same price and number and
kind of shares as are stated in the Warrant Certificates as initially issued. However, the Company may at any time in its sole
discretion make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance
thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant or
otherwise, may be in the form as so changed.

 

4.8.
No Fractional Shares upon Adjustment. Notwithstanding any provision contained in this Warrant Agreement to the contrary,
the Company shall not issue fractional shares upon exercise of Warrants. If, by reason of any adjustment made pursuant to this
Section 4, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional
interest in a share, the Company shall, upon such exercise, round down to the nearest whole number the number of the shares of
Common Stock to be issued to the Warrant holder.

 

    	 

     

    

 

4.9.
Notice of Certain Transactions. In the event that the Company shall propose to (a) offer the holders of its Common
Stock rights to subscribe for or to purchase any securities convertible into shares of Common Stock or shares of stock of any
class or any other securities, rights or options, (b) issue any rights, options or warrants entitling the holders of Common
Stock to subscribe for shares of Common Stock or (c) make a tender offer, redemption offer or exchange offer with respect
to the Common Stock, the Company shall send to the Registered Holders a notice of such proposed action or offer. Such notice shall
be mailed to the Registered Holders at their addresses as they appear in the Warrant Register, which shall specify the record
date for the purposes of such dividend, distribution or rights, or the date such issuance or event is to take place and the date
of participation therein by the holders of Common Stock, if any such date is to be fixed, and shall briefly indicate the effect
of such action on the Common Stock and on the number and kind of any other shares of stock and on other property, if any, and
the number of shares of Common Stock and other property, if any, issuable upon exercise of each Warrant and the Warrant Price
after giving effect to any adjustment pursuant to this Section 4 which would be required as a result of such action.
Such notice shall be given as promptly as practicable after the Board has determined to take any such action and (x) in the
case of any action covered by clause (a) or (b) above, at least 10 days prior to the record date for determining the
holders of the Common Stock for purposes of such action or (y) in the case of any other such action, at least 20 days prior
to the date of the taking of such proposed action or the date of participation therein by the holders of Common Stock, whichever
shall be the earlier.

 

5.
SHARES TO BE FULLY PAID; RESERVATION OF SHARES. The Company covenants and agrees for the benefit of the Registered
Holders:

 

5.1.
Due Authorization and Valid Issuance. That all shares of Common Stock which may be issued upon the exercise of the rights
represented by the Warrant Certificates will, upon issue and payment of the aggregate Warrant Price therefore, be duly authorized,
validly issued, fully paid and non-assessable and free and clear of all liens and encumbrances, with no personal liability attaching
to the ownership thereof.

 

5.2.
Sufficient Number of Shares. That during the period within which the rights represented by the Warrant Certificates may
be exercised, the Company will at all times have authorized and reserved for the purpose of issue upon exercise of the rights
evidenced by the Warrant Certificates, a sufficient number of shares of Common Stock to provide for the exercise of the rights
represented by the Warrant Certificates.

 

5.3.
Assurance of No Securities Law Violation. That the Company will take all such action as may be necessary to ensure that
the shares of Common Stock issuable upon the exercise of the Warrants may be so issued without violation of any applicable federal
or state law or regulation, or of any requirements of any securities exchange upon which any capital Common Stock of the Company
may be listed, if any.

 

5.4.
Registration of Common Stock. The Company agrees that the Common Stock issuable upon exercise of the Warrants shall be
registered under the Act pursuant to the Registration Statement and it shall have taken such action as is necessary to qualify
for sale, in those states in which the Warrants are initially offered by the Company, the Common Stock issuable upon exercise
of the Warrants. The Company will maintain the effectiveness of such registration statement and ensure that a prospectus is available
for delivery to the Warrant holders until the expiration of the Warrants in accordance with the provisions of this Warrant Agreement.
The Warrants shall not be exercisable and the Company shall not be obligated to issue Common Stock unless, at the time a holder
seeks to exercise Warrants, a prospectus related to the Common Stock issuable upon exercise of the Warrants is current and the
Common Stock has been registered or qualified or deemed to be exempt under the laws of the state of residence of the holder of
the Warrants. In addition, the Company agrees to use its best efforts to register such securities under the blue sky laws of the
states of residence of exercising warrant holders, if permitted by the blue sky laws of such jurisdictions, in the event that
an exemption is not available. The provisions of this Section 5.4 may not be modified, amended or deleted without
the prior written consent of Roth Capital Partners, LLC.

 

6.
EXCHANGE, ASSIGNMENT OR LOSS OF WARRANT CERTIFICATE.

 

6.1.
Exchange. The Warrants shall be exchangeable at the option of the Registered Holder, upon presentation and surrender of
the Warrant Certificate at the office of the Warrant Agent for other Warrant Certificates of different denominations. Any Warrant
Certificate may be divided or combined with other Warrant Certificates into a Warrant Certificate evidencing the same aggregate
number of Warrants.

 

    	 

     

    

 

6.2.
Transfer or Assignment. Prior to the Separation Date, the Warrants may be transferred or exchanged only as part of the
Unit in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange
of such Unit. For the avoidance of doubt, each transfer of a Unit on the register relating to such Units shall operate also to
transfer the Warrants included in such Unit. Upon surrender of the Warrant Certificate and similar Warrant Certificates at the
principal office of the Warrant Agent, by the Registered Holder hereof in person or by an attorney duly authorized in writing,
with the election to transfer section properly completed and duly executed, such Warrant Certificates may be transferred or exchanged
in the manner provided in the Warrant Certificate and without payment of any service charge, for another Warrant Certificate or
Warrant Certificates of like tenor, evidencing in the aggregate the number of Warrants evidenced by the Warrant Certificates so
surrendered and registered in the name or names as requested by the then registered owner thereof or by an attorney duly authorized
in writing; provided, however, that except as otherwise provided herein or in any Book-Entry Warrant Certificate, each Book-Entry
Warrant Certificate may be transferred only in whole and only to the Depository, to another nominee of the Depository, to a successor
depository, or to a nominee of a successor depository; provided further, however, that in the event that a Warrant surrendered
for transfer bears a restrictive legend, the Warrant Agent shall not cancel such Warrant and issue new Warrants in exchange therefor
until the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating
whether the new Warrants must also bear a restrictive legend. Upon any such registration of transfer, the Company shall execute,
and the Warrant Agent shall countersign and deliver, in the name of the designated transferee a new Warrant certificate or Warrant
certificates of any authorized denomination evidencing in the aggregate a like number of unexercised Warrants. Warrants transferred
pursuant to this Section shall be accompanied by a proper payment of any applicable transfer taxes.

 

6.3.
Lost or Destroyed Warrant Certificates. Upon receipt by the Warrant Agent of evidence satisfactory to it of the loss, theft,
destruction or mutilation of a Warrant Certificate and (i) in the case of such loss, theft or destruction, of reasonably
satisfactory indemnification and bonding, or (ii) if mutilated, upon surrender and cancellation of such Warrant Certificate,
the Warrant Agent shall execute and deliver a new Warrant Certificate of like tenor. Any such new Warrant Certificate executed
and delivered shall constitute an additional contractual obligation on the part of the Company, whether or not the Warrant Certificate
so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone.

 

6.4.
Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will
result in the issuance of a Warrant Certificate for a fraction of a Warrant.

 

7.
REDEMPTION.

 

7.1.
Redemption. Subject to Section 5.4 hereof, not less than all of the outstanding Warrants may be redeemed, at
the option of the Company, at any time after they become exercisable and prior to the Expiration Date, at the office of the Warrant
Agent, upon the notice referred to in Section 7.2, at the price of $0.01 per Warrant (the “Redemption
Price”), provided, however, that (a) (i) the last reported sales price of the Common Stock is equal to or greater
than [_]% of the then applicable Warrant Price on the third business day prior to the notice of redemption to the Registered Holders and
(ii) the Common Stock is quoted on or listed for trading on either The New York Stock Exchange, The Nasdaq
Global Market, The NASDAQ Capital Market, The Nasdaq Global Select Market
or the NYSE MKT or (b) the last reported sales price of the Common Stock has been equal to or greater than [__]% of the then applicable
Warrant Price for each trading day in the 20-trading-day period ending on the third business day prior to the notice of redemption
to the Registered Holders, and in
each case, there is an effective registration statement covering the shares of Common Stock issuable upon exercise of the Warrants
current and available.

 

7.2.
Date Fixed for, and Notice of, Redemption. In the event the Company shall elect to redeem all of the Warrants permitted
to be redeemed pursuant to Section 7.1 (the “Redeemable Warrants”), the Company shall fix
a date for the redemption. Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less
than 30 days prior to the date fixed for redemption to the Registered Holders of the Redeemable Warrants at their last addresses
as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed
to have been duly given on the date sent whether or not the Registered Holder received such notice.

 

7.3.
Exercise After Notice of Redemption. The Redeemable Warrants may be exercised for cash in accordance with Section 3
of this Warrant Agreement at any time after notice of redemption shall have been given by the Company pursuant to Section 7.2
hereof and prior to the time and date fixed for redemption. On and after the redemption date, the record holder of the Redeemable
Warrants shall have no further rights except to receive the Redemption Price upon surrender of the Redeemable Warrants.

 

    	 

     

    

 

7.4.
Outstanding Warrants Only. The Company understands that the redemption rights provided for by this Section 7
apply only to outstanding Redeemable Warrants. To the extent a person holds rights to purchase Redeemable Warrants, such purchase
rights shall not be extinguished by redemption. However, once such purchase rights are exercised, the Company may redeem the Redeemable
Warrants issued upon such exercise provided that the criteria for redemption is met, including the opportunity of the Redeemable
Warrant holders to exercise prior to redemption pursuant to Section 7.3.

 

8.
NO RIGHTS AS STOCKHOLDERS. Except as specifically provided in this Warrant Agreement, nothing contained in this
Warrant Agreement or in the Warrant Certificates shall be construed as conferring upon the Registered Holders or any permitted
transferees the right to vote or to receive dividends or to receive notice as holders of Common Stock in respect of any meeting
of holders of Common Stock for the election of directors of the Company or any other matter, or any rights whatsoever as holders
of Common Stock of the Company.

 

9.
AGREEMENT OF REGISTERED HOLDERS. Every Registered Holder of a Warrant, by such Registered Holder’s acceptance
thereof, consents and agrees with the Company, the Warrant Agent and every other Registered Holder of a Warrant that the Company
and the Warrant Agent may deem and treat the person in whose name the Warrant Certificate is registered as the Registered Holder
and as the absolute, true and lawful owner of the Warrants represented thereby for all purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice or knowledge to the contrary.

 

10.
DUTIES OF WARRANT AGENT. The Warrant Agent acts hereunder as agent and in a ministerial capacity for the Company,
and its duties shall be determined solely by the provisions hereof. The Warrant Agent shall not, by issuing and delivering Warrant
Certificates or by any other act hereunder be deemed to make any representations as to the validity, value or authorization of
the Warrant Certificates or the Warrants represented thereby or of any securities or other property delivered upon exercise of
any Warrant or whether any Common Stock issued upon exercise of any Warrant is fully paid and non-assessable.

 

The
Warrant Agent shall not at any time be under any duty or responsibility to any Registered Holder of Warrant Certificates to make
or cause to be made any adjustment of the Warrant Price provided in this Warrant Agreement, or to determine whether any fact exists
which may require any such adjustment, or with respect to the nature or extent of any such adjustment, when made, or with respect
to the method employed in making the same. It shall not (i) be liable for any recital or statement of facts contained herein
or for any action taken, suffered or omitted by it in reliance on any Warrant Certificate or other document or instrument believed
by it in good faith to be genuine and to have been signed or presented by the proper party or parties, (ii) be responsible
for any failure on the part of the Company to comply with any of its covenants and obligations contained in this Warrant Agreement
or in any Warrant Certificate, or (iii) be liable for any act or omission in connection with this Warrant Agreement except
for its own negligence or willful misconduct.

 

The
Warrant Agent may at any time consult with counsel satisfactory to it (who may be counsel for the Company) and shall incur no
liability or responsibility for any action taken, suffered or omitted by it in good faith in accordance with the opinion or advice
of such counsel.

 

Any
notice, statement, instruction, request, direction, order or demand by the Company shall be sufficiently evidenced if given orally
by the Chief Executive Officer, President or Chief Financial Officer of the Company, provided that such instructions shall be
reaffirmed in a written instrument executed by the officer giving such written instructions and delivered to the Warrant Agent
pursuant to Section 12.5 hereof. The Warrant Agent shall not be liable for any action taken, suffered or omitted by
it in accordance with such notice, statement, instruction, request, direction, order or demand believed by it to be genuine.

 

The
Company agrees to pay the Warrant Agent reasonable compensation for its services hereunder and to reimburse it for its reasonable
expenses hereunder and further agrees to indemnify the Warrant Agent and save it harmless against any and all losses, expenses
and liabilities, including judgments, costs and counsel fees, for anything done or omitted by the Warrant Agent in the execution
of its duties and powers hereunder except losses, expenses and liabilities arising as a result of the Warrant Agent’s negligence,
willful misconduct or bad faith.

 

    	 

     

    

 

The
Warrant Agent may resign its duties and be discharged from all further duties and liabilities hereunder (except liabilities arising
as a result of the Warrant Agent’s own negligence or willful misconduct), after giving sixty (60) days prior written
notice to the Company. At least thirty (30) days prior to the date such resignation is to become effective, the Warrant Agent
shall cause a copy of such notice of resignation to be mailed to the Registered Holder of each Warrant Certificate at the Company’s
expense. Upon such resignation, or any inability of the Warrant Agent to act as such hereunder, the Company shall appoint a new
Warrant agent in writing. The Company shall have complete discretion in the naming of a new Warrant agent, who may be an affiliate,
subsidiary or department of the Company, or any person used by the Company as transfer agent for the Common Stock. If the Company
shall fail to make such appointment within a period of fifteen (15) days after it has been notified in writing of such resignation
by the resigning Warrant Agent, then the Registered Holder of any Warrant Certificate may apply to any court of competent jurisdiction
for the appointment of a new Warrant agent.

 

The
Company may, upon notice to the Registered Holders, remove and replace the Warrant Agent if the Warrant Agent is the transfer
agent for the Company’s Common Stock and the Warrant Agent ceases to be the transfer agent for the Company’s Common
Stock for any reason.

 

After
acceptance in writing of an appointment by a new Warrant agent is received by the Company, such new Warrant agent shall be vested
with the same powers, rights, duties and responsibilities as if it had been originally named herein as the Warrant Agent, without
any further assurance, conveyance, act or deed. Any former Warrant agent hereby agrees to cooperate with and deliver all records
and Warrant Certificates to the new Warrant agent at the direction of the new agent and the Company.

 

Not
later than the effective date of an appointment of a new Warrant agent by the Company, the Company shall file notice with the
resigning or terminated Warrant agent and shall forthwith cause a copy of such notice to be mailed to each Registered Holder.

 

Any
corporation into which the Warrant Agent or any new Warrant agent may be converted or merged or any corporation resulting from
any consolidation to which the Warrant Agent or any new Warrant agent shall be a party or any corporation succeeding to the trust
business of the Warrant Agent shall be a successor Warrant agent under this Warrant Agreement without any further act. Any such
successor Warrant agent shall promptly cause notice of its succession as Warrant agent to be mailed to the Company and to each
Registered Holder.

 

Nothing
herein shall preclude the Warrant Agent from acting in any other capacity for the Company.

 

11.
MODIFICATION OF AGREEMENT. The Warrant Agent and the Company may by supplemental agreement make any changes or corrections
in this Warrant Agreement: (i) that they shall deem appropriate to cure any ambiguity or to correct any defective or inconsistent
provision or manifest mistake or error herein contained; or (ii) that they may deem necessary or desirable and which shall
not adversely affect the purchase or other material rights of the Registered Holders of Warrant Certificates. This Warrant Agreement
shall not otherwise be modified, supplemented or amended in any respect except with the consent in writing of the Registered Holders
of Warrant Certificates representing more than 50% of the Warrants then outstanding.

 

12.
MISCELLANEOUS.

 

12.1.
Entire Agreement. This Warrant Agreement and the form of Warrant Certificate annexed hereto as Exhibit A contains
the entire Warrant Agreement between the parties hereto with respect to the transactions contemplated by this Warrant Agreement
and supersedes all prior negotiations, arrangements or understandings with respect thereto.

 

12.2.
Counterparts. This Warrant Agreement may be executed in one or more counterparts, all of which shall be considered one
and the same agreement and each of which shall be deemed an original.

 

12.3.
Governing Law. This Warrant Agreement shall be governed by the laws of the State of Colorado, without giving effect to
the principles of conflicts of laws thereof.

 

    	 

     

    

 

12.4.
Descriptive Headings. The descriptive headings of this Warrant Agreement are for convenience only and shall not control
or affect the meaning or construction of any provision of this Warrant Agreement.

 

12.5.
Notices. Any notice or other communications required hereunder to be given to a Registered Holder shall be in writing and
shall be sufficiently given, if mailed (first class, postage prepaid), or personally delivered, addressed in the name and at the
address of such Registered Holder appearing from time to time on the records of the Warrant Agent. Notices or other communications
to the Company shall be deemed to have been sufficiently given if delivered by hand or certified mailed to the Company as follows,
or at such other address as the Company shall have designated by written notice to the Warrant Agent:

 

RMR Industrials, Inc.

9595 Wilshire Blvd., Suite 310

Beverly Hills, CA 90212

Attn:
[Ÿ]

 

with
a copy to:

 

Greenberg
Traurig, LLP

1201
K Street, Suite 1100

Sacramento,
CA 95814

Attn:
Mark C. Lee, Esq.

 

Notices
or other communications to the Warrant Agent shall be deemed to have been sufficiently given if delivered by hand or mailed (first
class, postage prepaid) to its then principal office. Notice by mail shall be deemed given when deposited in the mail, postage
prepaid.

 

12.6.
Successors. All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant
Agent shall bind and inure to the benefit of their respective successors and assigns.

 

12.7.
Persons Having Rights Under this Warrant Agreement. Nothing in this Agreement expressed and nothing that may be implied
from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other
than the parties hereto and the Registered Holders of the Warrants and, for the purposes of Sections 5.4, 7.1 and
7.4 hereof, the representative of the underwriters, any right, remedy or claim under or by reason of this Warrant Agreement
or of any covenant, condition, stipulation, promise, or agreement hereof. The representative of the underwriters (on behalf of
the underwriters) shall be deemed to be a third party beneficiary of this Agreement with respect to Sections 5.4, 7.1
and 7.4 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant Agreement
shall be for the sole and exclusive benefit of the parties hereto (and the representative of the underwriters with respect Sections
5.4, 7.1 and 7.4 hereof) and their successors and assigns and of the Registered Holders of the Warrants.

 

12.8.
Severability. This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Warrant Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be
valid and enforceable.

 

12.9.
Consequential Damages. Notwithstanding anything in this Warrant Agreement to the contrary, neither party to this Warrant
Agreement shall be liable to the other party for any consequential, indirect, special or incidental damages under any provision
of this Warrant Agreement or for any consequential, indirect, punitive, special or incidental damages arising out of any act or
failure to act hereunder even if that party has been advised of or has foreseen the possibility of such damages.

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Company and the Warrant Agent have executed this Warrant Agreement by their duly authorized officers
as of the date first set forth above.

 

	 	 	 	 
	 	RMR INDUSTRIALS, INC.
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 
	 	 
	 	CORPORATE STOCK TRANSFER, INC.
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

    	 

     

    

 

FORM
OF WARRANT

 

THE SECURITIES REPRESENTED BY
THIS WARRANT CERTIFICATE (INCLUDING THE SECURITIES ISSUABLE UPON THE EXERCISE OF THE WARRANT) ARE SUBJECT TO THE TERMS AND CONDITIONS
SET FORTH IN THE WARRANT AGREEMENT DATED AS OF [Ÿ],
2015, BY AND BETWEEN THE COMPANY AND THE WARRANT AGENT (THE “WARRANT AGREEMENT”). COPIES OF SUCH AGREEMENT MAY
BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE. 

 

UNTIL [Ÿ],
2016, THIS WARRANT MAY NOT BE TRANSFERRED SEPARATELY, SPLIT UP, COMBINED OR EXCHANGED, BUT MAY ONLY BE TRANSFERRED, SPLIT UP, COMBINED
OR EXCHANGED TOGETHER WITH THE SHARES OF COMMON STOCK OF RMR INDUSTRIALS, INC. WITH WHICH IT WAS SOLD AS A UNIT. 

 

 

SPECIMEN
WARRANT CERTIFICATE

 

	Certificate Number	 	 
	 	 	[_________] Warrants

 

THIS
WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO 5:00 P.M.

NEW
YORK CITY TIME, ON THE EXPIRATION DATE

 

RMR
INDUSTRIALS, INC.

 

CUSIP [Ÿ]

WARRANT

 

This certifies that FOR VALUE
RECEIVED _________ or his, her or its registered assigns (the “Holder”) is the registered owner of __________
warrants (“Warrants”) of RMR Industrials, Inc., a Nevada corporation (the “Company”).
The Warrants are subject to the terms and conditions set forth in this certificate and the Warrant Agreement, and all capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to them in the Warrant Agreement. Each Warrant entitles
the Holder to purchase [Ÿ] share of Class
B common stock, par value $0.001, of the Company (“Common Stock”), at any time after the Separation Date
upon the presentation and surrender of this Warrant Certificate with the Subscription Form on the reverse side hereof duly executed,
at the corporate office of the Warrant Agent, accompanied by payment of the Warrant Price in the form permitted under the Warrant
Agreement. 

 

This
Warrant Certificate and each Warrant represented hereby are issued pursuant to and are subject in all respects to the terms and
conditions set forth in the Warrant Agreement, a copy of which may be obtained from the Company at 9595 Wilshire Blvd., Suite
310, Beverly Hills, CA 90212 or the Warrant Agent at 3200 Cherry Creek South Drive, Suite 430, Denver, Colorado 80209, by a written
request from the Holder hereof or which may be inspected by any Holder or his agent at the principal office of the Company or
the Warrant Agent.

 

No
fractional shares of Common Stock will be issued upon exercise of the Warrant. In the case of the exercise of less than all the
Warrants represented hereby, the Company shall cancel this Warrant Certificate upon the surrender hereof and shall execute and
deliver a new Warrant Certificate or Warrant Certificates of like tenor, which the Warrant Agent shall countersign, for the balance
of such Warrants.

 

Prior
to due presentment for registration of transfer hereof, the Company and the Warrant Agent shall treat the Holder as the absolute
owner hereof and of each Warrant represented hereby for all purposes and shall not be affected by any notice to the contrary.

 

This
Warrant Certificate shall be governed by and construed in accordance with the laws of the State of Colorado.

 

    	 

     

    

 

This
Warrant Certificate is not valid unless countersigned by the Warrant Agent.

 

This
Warrant does not entitle the Holder to any of the rights of a stockholder of the Company.

 

Subject to Section 7 of
the Warrant Agreement, the Company may redeem all, but not less than all, of the Warrants, at the option of the Company, at any
time after the Warrants become exercisable and prior to their expiration, at the office of the Warrant Agent, upon the notice referred
to in Section 7.2 of the Warrant Agreement, at the price of $0.01 per Warrant (the “Redemption Price”),
provided, however, (a) (i) the last reported sales price of the Common Stock is equal to or greater than [Ÿ]
% of the then applicable Warrant Price on the third business day prior to the notice of redemption to the Registered Holders and
(ii) the Common Stock is quoted on or listed for trading on either The New York Stock Exchange, The NASDAQ
Global Market, The NASDAQ Capital Market or The NASDAQ Global Select Market or (b)
the last reported sales price of the Common Stock has been equal to or greater 150% of the then applicable Warrant Price for each
trading day in the 20-trading-day period ending on the third business day prior to the notice of redemption to the Registered Holders,
and in each case, there is an effective registration statement covering the shares of Common Stock
issuable, and, in each case, there is an effective registration statement covering the shares
of Common Stock issuable upon exercise of the Warrants current and available. 

 

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed, manually or in facsimile by two of its
officers thereunto duly authorized and a facsimile of its corporate seal to be imprinted thereon.

 

	(SEAL)	RMR INDUSTRIALS, INC.
	 	 	 
	Dated:	By:	 
	 	 	Title: 

 

	CORPORATE STOCK TRANSFER, INC.	 
	 	 
	As Warrant Agent	 

	 	 	 
	By:	 	 
	 	Authorized Officer	 

 

 

 

SUBSCRIPTION
FORM

 

To
Be Executed by the Registered Holder in Order to Exercise Warrants

 

The
undersigned registered holder irrevocably elects to exercise _________________ Warrants represented by this Warrant Certificate,
and to purchase the shares of Common Stock issuable upon the exercise of such Warrants, and requests that certificates for such
shares shall be issued in the name of

 

	Name	 	 
	 	(please typewrite or print in block
    letters)	 
	 	 	 
	Address	 	 
	 	 	 
	Address	 	 

 

	Tax Identification Number  	 	 

 

and be delivered to

 

	Name	 	 
	 	(please typewrite or print in block
    letters)	 

 

    	 

     

    

 

	Address	 	 
	 	 	 
	Address	 	 

 

and,
if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate
for the balance of such Warrants be registered in the name of, and delivered to, the registered holder at the address stated below:

 

	Dated:	Signature	 	 	 
	 	 	 
	 	Address	 	 	 
	 	 	 
	 	Address	 	 	 

	 	 	 	 	 
	 	Tax Identification Number

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