Document:

Exhibit 10.1

 

COOPERATION AGREEMENT

 

This Cooperation Agreement
(this “Agreement”), is made and entered into as of January 2, 2018 by and among Real Goods Solar, Inc., a
Colorado corporation (the “Company”), and the entities and natural persons set forth in the signature pages
hereto (collectively, “Iroquois”) (each of the Company and Iroquois, a “Party” to this Agreement,
and collectively, the “Parties”).

 

RECITALS

 

WHEREAS, as
of the date hereof, Iroquois has a beneficial ownership interest in 840,135 shares of the Company’s Class A common stock,
par value $0.0001 per share (the “Common Stock”), which includes certain shares issuable upon the exercise of
certain warrants;

 

WHEREAS, on
July 24, 2017, Iroquois filed a definitive proxy statement (the “Proxy Statement”) with the Securities and Exchange
Commission (the “SEC”) relating to the solicitation of proxies and seeking, among other things, to withhold
all votes for director candidates (the “Withhold Proxy Solicitation”) nominated for election to the Company’s
Board of Directors (the “Board”) at the Company’s 2017 Annual Meeting of Shareholders (including any adjournment,
postponement or rescheduling thereof, the “2017 Annual Meeting”);

 

WHEREAS,
the Company has convened and subsequently adjourned the 2017 Annual Meeting on each of August 23, 2017, October 5, 2017 and
December 14, 2017 due to a quorum not being present and adjoined the 2017 Annual Meeting until January 18, 2018; and

 

WHEREAS, the
Company and Iroquois have reached an agreement with respect to certain matters related to the 2017 Annual Meeting, the delivery
of the restricted shares of Common Stock, and certain other matters, in each case, as provided in this Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound
hereby, agree as follows:

 

1.           Withdrawal
of Withhold Proxy Solicitation.

 

(a)          Effective
immediately upon the date hereof, Iroquois agrees to (i) immediately terminate the Withhold Proxy Solicitation, (ii) withdraw
(and not resubmit) the Proxy Statement, (iii) cease any and all solicitation and other efforts with respect to the Withhold Proxy
Solicitation, and (iv) promptly notify the staff of the SEC in writing that it is terminating the Withhold Proxy Solicitation.

 

(b)          Iroquois
further agrees not to (i) nominate or recommend for nomination any person for election at the 2017 Annual Meeting, directly
or indirectly, (ii) submit any proposal for consideration at, or bring any other business before, the 2017 Annual Meeting,
directly or indirectly, (iii) vote, deliver or otherwise use any consents that may have been, or may be, received pursuant
to the Withhold Proxy Solicitation, or (iv) initiate, encourage or participate in any “withhold” or similar campaign
with respect to the 2017 Annual Meeting, directly or indirectly.

 

     

     

    

 

2.           Voting
Agreement.

 

(a)          At
the 2017 Annual Meeting, Iroquois agrees to appear in person or by proxy and vote all shares of Common Stock beneficially owned
by Iroquois and its Affiliates and Associates in favor of (i) the election of the Company’s five (5) director nominees, (ii)
the approval of an amendment to the Company’s 2008 Long-Term Incentive Plan to increase the number of shares authorized for
issuance and the number of shares that a participant may receive in a fiscal year, and (iii) the ratification of the appointment
of Moss Adams LLP to audit the Company’s consolidated financial statements for the 2017 fiscal year.

 

(b)          At
any subsequent annual or special meeting of shareholders of the Company (or adjournments thereof) during the Standstill Period,
Iroquois agrees to vote all shares of Common Stock beneficially owned by Iroquois and its Affiliates and Associates in favor of
the election to the Board of those director nominees nominated for election by the Board’s Nominating and Corporate Governance
Committee or the Board and against the removal of any directors whose removal is not recommended by the Board.

 

(c)          Iroquois
agrees, within 2 business days after receipt in connection with the 2017 Annual Meeting and within 10 business days after receipt
in connection with any other annual or special meeting of shareholders of the Company, to execute and deliver to the Company, or
cause to be executed and delivered to the Company, the proxy card sent to Iroquois by the Company in connection with the 2017 Annual
Meeting and any other annual or special meeting of shareholders of the Company (or adjournments thereof) during the Standstill
Period (and any other legal proxies delivered to Iroquois required to vote any shares held in “street name”) directing
that the shares of Common Stock beneficially owned by Iroquois, as of the applicable record date, be voted in accordance with Section
2(a) and 2(b).

 

3.           Standstill.

 

(a)          Iroquois
agrees that, from the date of this Agreement until the expiration of the Standstill Period, without the prior written consent of
a majority of the Board specifically expressed in a written resolution, neither it nor any of its Affiliates or Associates will,
and it will cause each of its Affiliates and Associates not to, directly or indirectly, in any manner, acting alone or in concert
with others:

 

(i)          acquire,
offer to acquire or agree to acquire, alone or in concert with any other individual or entity, by purchase, tender offer, exchange
offer, agreement or business combination or any other manner, beneficial ownership of any securities of the Company; provided,
however, that Iroquois shall be permitted to acquire the shares of Common Stock issuable upon exercise of the warrant set forth
on Exhibit A;

 

(ii)         submit
any shareholders proposal (pursuant to Rule 14a-8 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) or otherwise) or any notice of nomination or other business for consideration by the Company’s
shareholders, or nominate any candidate for election to, or to fill a vacancy on, the Board (including by way of Rule 14a-11 of
Regulation 14A), other than as expressly permitted by this Agreement;

 

    	2

     

    

 

(iii)        engage
in, directly or indirectly, any “solicitation” (as defined in Rule 14a-1 of Regulation 14A) of proxies (or written
consents) or otherwise become a “participant in a solicitation” (as such term is defined in Instruction 3 of Schedule
14A of Regulation 14A under the Exchange Act) in opposition to the recommendation or proposal of the Board, or recommend or request
or induce or attempt to induce any other person to take any such actions, or seek to advise, encourage or influence any other person
with respect to the voting of the Common Stock or grant a proxy with respect to the voting of the Common Stock or other voting
securities of the Company to any person other than to the Board or persons appointed as proxies by the Board;

 

(iv)        form,
join in or in any other way participate in a “partnership, limited partnership, syndicate or other group” within the
meaning of Section 13(d)(3) of the Exchange Act with respect to the Common Stock or deposit any shares of Common Stock in a voting
trust or similar arrangement or subject any shares of Common Stock to any voting agreement or pooling arrangement;

 

(v)         seek
to call, or to request the call of, a special meeting of the Company’s shareholders, or make a request for a list of the
Company’s shareholders;

 

(vi)        vote
for any nominee or nominees for election to the Board, other than those nominated or supported by the Board;

 

(vii)       seek
to place a representative or Affiliate, Associate or nominee on the Board or seek the removal of any member of the Board or a change
in the size or composition of the Board;

 

(viii)      other
than as provided in this Agreement, effect or seek to effect or cause or participate in, or make any public communication with
respect to, or in any way assist or facilitate any other person to effect or seek, offer or propose (whether publicly or otherwise)
to effect or cause or participate in, (A) any acquisition of any material assets or businesses of the Company or any of its subsidiaries,
or any sale, lease, exchange, pledge, mortgage, or transfer thereof (including through any arrangement having substantially the
same economic or other effect as a sale, lease, exchange, pledge, mortgage, or transfer or assets); (B) any tender offer or exchange
offer, merger, acquisition or other business combination involving the Company or any of its subsidiaries; or (C) any recapitalization,
restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries;

 

(ix)         make
any demands for books and records and other materials from the Company or pursue any litigation related thereto against the Company,
or to encourage, assist or cooperate with any third party with respect to any such demand(s) or litigation;

 

(x)          disclose
publicly, or privately in a manner that could reasonably be expected to become public, any intention, plan or arrangement inconsistent
with the foregoing;

 

(xi)         take
any action challenging the validity or enforceability of any provisions of this Section 3(a);

 

(xii)        publicly
request that the Company amend or waive any provision of Sections 2 or 3(a);

 

    	3

     

    

 

(xiii)       institute,
solicit, assist or join, or threaten, any litigation, arbitration, action or other proceeding (other than any litigation, arbitration,
action or other proceeding to enforce the terms of this Agreement) against or involving the Company, its subsidiaries, its current
or former directors or officers, or any Company Affiliate.; or

 

(xiv)      enter
into any agreement, arrangement or understanding concerning any of the foregoing (other than this Agreement) or recommend, request,
induce , attempt to induce, advise, encourage, support, influence or solicit any person to undertake any of the foregoing activities.

 

(b)          Nothing
in this Section 3(b) or elsewhere in this Agreement shall prohibit Iroquois from (i) privately making any statement
or expressing or disclosing Iroquois’ views in private to any officer or director of the Company, so long as such communication
are not intended to, and would not reasonably be expected to, require any public disclosure of such communications, or (ii) from
voting in such manner as it deems appropriate on any matter unrelated (A) to the election of directors of the Company or (B) to
the other matters referenced in Section 2 and 3.

 

(c)          As
used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings
set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act; the terms “beneficial owner” and “beneficial
ownership” shall have the same meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; the terms
“person” or “persons” shall mean any individual, corporation (including not-for-profit), general or limited
partnership, limited liability company, joint venture, estate, trust, association, organization or other entity of any kind or
nature.

 

(d)          For
purposes of this Agreement, “Standstill Period” shall mean the period commencing on the date of this
Agreement and ending at 11:59 p.m., Eastern Time, on such date that is 30 calendar days prior to the expiration of the
advance notice period for the submission by shareholders of director nominations for consideration at the Company’s
2022 annual meeting of shareholders (including any adjournment, postponement or rescheduling thereof, the “2022
Annual Meeting”), as set forth in the advance notice provisions of the Company’s Bylaws.

 

4.           Expenses.
Each Party shall be responsible for its own fees and expenses incurred in connection with the negotiation, execution and effectuation
of this Agreement and the transactions contemplated hereby, including legal fees; provided, however, that, within three business
days after the date of this Agreement, the Company shall issue and deliver 600,000 unregistered and restricted shares (the “Shares”)
of Common Stock to Iroquois, as reimbursement for expenses incurred by Iroquois in connection with the matters related to the 2017
Annual Meeting and the negotiation, execution and effectuation of this Agreement; provided, further, that it shall be a condition
to the Company’s obligation to deliver such Shares that Iroquois has executed and delivered to the Company, or caused to
be executed and delivered to the Company, the proxy card provided to Iroquois by the Company in connection with the 2017 Annual
Meeting (in compliance with applicable law).

 

    	4

     

    

 

5.           Representations,
Warranties and Covenants of the Company.

 

(a)          The
Company represents and warrants to Iroquois that (a) the Company has the corporate power and authority to execute this
Agreement and to bind it thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the
Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in
accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity
principles, (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or
conflict with any law, rule, regulation, order, judgment or decree applicable to it, or (ii) result in any breach or
violation of or constitute a default (or an event which with notice or lapse of time or both could become a default) under or
pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or
cancellation of, any organizational document, or any material agreement, contract, commitment, understanding or arrangement
to which the Company is a party or by which it is bound, and (d) all of the Shares to be issued and delivered shall be duly
authorized, fully paid and nonassessable, and validly issued, the issuance and delivery is in compliance with all applicable
federal and state securities laws, and that the Shares, when issued and delivered in accordance with the terms and for the
consideration set forth in this Agreement, will be free of restrictions on transfer other than restrictions on transfer under
applicable state and federal securities laws and liens or encumbrances created by or imposed by Iroquois.

 

(b)          Within
30 business days after the date of this Agreement, the Parties shall cooperate in good faith to enter into a registration rights
agreement, with customary terms reasonably acceptable to the Company, granting to Iroquois piggyback registration rights with respect
to the Shares Iroquois will receive pursuant to this Agreement.

 

(c)          Upon
request from Iroquois, the Company shall remove any restrictive legend on the certificates or other instruments representing
the Shares and the Company shall issue a certificate without such restrictive legend to Iroquois (i) in connection with a
sale, assignment or other transfer exempt from registration under the applicable requirements of the Securities Act of 1933,
as amended (the “Securities Act”), and any applicable state securities laws if Iroquois provides the
Company with an opinion of counsel selected by Iroquois, and reasonably acceptable to the Company (the Company acknowledges
that Olshan Frome Wolosky LLP is acceptable counsel), in a generally acceptable form for opinions of counsel in connection with such
transactions and reasonably acceptable to the Company, to the effect that such Shares to be sold, assigned or transferred may
be sold, assigned or transferred pursuant to an exemption from such registration under the applicable requirements of the
Securities Act and any applicable state securities laws, (ii) on the date Iroquois provides reasonable assurance to the
Company that Iroquois is eligible to sell, assign or transfer the Shares pursuant to Rule 144 promulgated pursuant to the
Securities Act (“Rule 144”) without having to comply with the information requirements under Rule
144(c)(1); provided, however, that Iroquois agree that the Company shall have the right to again affix a restrictive legend
on the certificates or other instruments representing the Shares in the event that Iroquois becomes an Affiliate of the
Company after removal of the restrictive legend, or (iii) on the date Iroquois provides reasonable assurance to the Company
that Iroquois is eligible to sell, assign or transfer such Shares pursuant to Rule 144 while the Company is in compliance
with the requirements of Rule 144(c)(1) contemporaneously with the sale, assignment or transfer of such Shares. Iroquois
acknowledges and agrees that the Shares remain “restricted securities” as such term is defined in Rule 144
notwithstanding removal of the legend set forth above until such Shares are sold or transferred under an
effective registration statement under the Securities Act or under Rule 144.

 

    	5

     

    

 

6.           Representations,
Warranties and Covenants of Iroquois.

 

(a)          Iroquois
represents and warrants to the Company that (a) as of the date hereof, Iroquois beneficially owns, directly or indirectly, only
the number of shares of Common Stock as described opposite its name on Exhibit A and Exhibit A includes all Affiliates
and Associates of Iroquois that own any securities of the Company beneficially or of record and reflects all shares of Common Stock
in which Iroquois has any interest or right to acquire, whether through derivative securities, voting agreements or otherwise,
(b) this Agreement has been duly and validly authorized, executed and delivered by Iroquois, and constitutes a valid and binding
obligation and agreement of Iroquois, enforceable against Iroquois in accordance with its terms, except as enforcement thereof
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally
affecting the rights of creditors and subject to general equity principles, (c) Iroquois has the authority to execute this Agreement
and to bind itself to the terms hereof, (d) Iroquois shall use its commercially reasonable efforts to cause its respective Affiliates
and Associates to comply with the terms of this Agreement, (e) the execution, delivery and performance of this Agreement by Iroquois
does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to it, or (ii)
result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become
a default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment,
acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to
which such member is a party or by which it is bound, and (f) Iroquois is an accredited investor as such term is defined under
the Securities Act, is acquiring the Shares for its own account and not with a view towards distribution, and has had access to
such information about the Company as it deems necessary to make an informed decision about investing in the Shares.

 

(b)          Except
as provided in section 5(b) herein, Iroquois understands that the Shares have not been and are not being registered under the
Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A)
subsequently registered thereunder, (B) Iroquois shall have delivered to the Company an opinion of counsel selected by
Iroquois, in a generally acceptable form, to the effect that such Shares to be sold, assigned or transferred may be sold,
assigned or transferred pursuant to an exemption from such registration, or (C) Iroquois provides the Company with reasonable
assurance that such Shares can be sold, assigned or transferred pursuant to Rule 144.

 

(c)          Iroquois
understands that, except as set forth in this Agreement, the certificates or other instruments representing the Shares shall bear
a restrictive legend, in form determined by the Company, referencing the restricted nature of the Shares.

 

    	6

     

    

 

7.           Mutual
Non-Disparagement.

 

(a)          Iroquois
agrees that, until the earlier of (i) the expiration of the Standstill Period and (ii) any material breach of this Agreement by
the Company (provided that the Company shall have three business days following written notice from Iroquois of any material breach
to remedy such material breach if capable of remedy), neither it nor any of its Affiliates or Associates will, and it will cause
each of its Affiliates and Associates not to, directly or indirectly, publicly make, express, transmit, speak, write, verbalize
or otherwise publicly communicate in any way (or cause, further, assist, solicit, encourage, support or participate in any of the
foregoing), any remark, comment, message, information, declaration, communication or other statement of any kind, whether verbal
or in writing, that might reasonably be construed to be derogatory or critical of, or negative toward, the Company or any of its
directors, officers, Affiliates, Associates, subsidiaries, employees, agents or representatives (collectively, the “Company
Representatives”), or that reveals, discloses, incorporates, is based upon, discusses, includes or otherwise involves
any confidential or proprietary information of the Company or its subsidiaries or Affiliates or Associates, or to malign, harm,
disparage, defame or damage the reputation or good name of the Company, its business or any of the Company Representatives.

 

(b)          The
Company hereby agrees that, until the earlier of (i) the expiration of the Standstill Period and (ii) any material breach of this
Agreement by Iroquois (provided that Iroquois shall have three business days following written notice from the Company of any material
breach to remedy such material breach if capable of remedy), neither it nor any of its Affiliates or Associates will, and it will
cause each of its Affiliates and Associates not to, directly or indirectly, publicly make, express, transmit, speak, write, verbalize
or otherwise publicly communicate in any way (or cause, further, assist, solicit, encourage, support or participate in any of the
foregoing), any remark, comment, message, information, declaration, communication or other statement of any kind, whether verbal
or in writing, that might reasonably be construed to be derogatory or critical of, or negative toward, Iroquois or its Affiliates
or Associates or any of their officers, employees, agents or representatives (collectively, the “Iroquois Agents”),
or that reveals, discloses, incorporates, is based upon, discusses, includes or otherwise involves any confidential or proprietary
information of Iroquois or its Affiliates or Associates, or to malign, harm, disparage, defame or damage the reputation or good
name of Iroquois, its business or any of the Iroquois Agents.

 

(c)          Notwithstanding
the foregoing, nothing in this Section 7 or elsewhere in this Agreement shall prohibit any Party from making any statement
or disclosure required under the federal securities laws, other applicable laws or the listing standards of any stock exchange;
provided, however, that such Party must provide, to the extent legally permissible, advance written notice to the other Parties,
and to the extent practicable, at least two business days in advance, prior to making any such statement or disclosure that would
otherwise be prohibited by the provisions of this Section 7, and reasonably consider any comments of such other Parties.

 

(d)          The
limitations set forth in Section 7(a) and 7(b) shall not prevent any Party from responding to any public statement
made by any other Party of the nature described in Section 7(a) and 7(b) if such statement by such other Party was
made in breach of this Agreement.

 

    	7

     

    

 

8.           Release.

 

(a)          Iroquois
does for itself, himself and its or his respective successors, assigns, heirs, past and present shareholder, subsidiaries, members,
managers, directors, officers, employees, agents, and other representatives hereby to the maximum extent permitted by law irrevocably
forever release, discharge and waive any and all claims, rights, causes of action, suits, obligations, debts, demands, liabilities,
controversies, costs, expenses, fees, or damages of any kind (including, but not limited to, any and all claims alleging violations
of federal or state securities laws, common-law fraud or deceit, breach of fiduciary duty, negligence or otherwise), whether directly,
derivatively, representatively or in any other capacity, in law or equity, whether known or unknown, suspected or unsuspected,
unanticipated as well as anticipated, against the Company or any of its Affiliates, including any and all of its or their present
and/or past directors, officers, members, partners, employees, shareholders, creditors, fiduciaries, agents, representatives and
their respective successors and assigns (collectively, the “Company Released Parties”) with respect to or arising out
of any event, fact, condition, act, omission or circumstance existing on or prior to the date of this Agreement. Iroquois also
represents that it has not assigned any claim or possible claim against the Company Released Parties, it fully intends to release
all claims against the Company Released Parties and it has been advised by, and has consulted with counsel with respect to the
execution and delivery of this Agreement and has been fully apprised of the consequences of the waivers, releases and discharges
set forth herein.

 

(b)          The
Company does for itself and its respective successors, assigns, heirs, past and present shareholder, subsidiaries, members, managers,
directors, officers, employees, agents, and other representatives hereby to the maximum extent permitted by law irrevocably forever
release, discharge and waive any and all claims, rights, causes of action, suits, obligations, debts, demands, liabilities, controversies,
costs, expenses, fees, or damages of any kind (including, but not limited to, any and all claims alleging violations of federal
or state securities laws, common-law fraud or deceit, breach of fiduciary duty, negligence or otherwise), whether directly, derivatively,
representatively or in any other capacity, in law or equity, whether known or unknown, suspected or unsuspected, unanticipated
as well as anticipated, against Iroquois, including any and all of its present and/or past directors, officers, members, partners,
employees, shareholders, creditors, fiduciaries, agents, representatives and their respective successors and assigns (collectively,
the “Iroquois Released Parties”) with respect to or arising out of any event, fact, condition, act, omission or circumstance
existing on or prior to the date of this Agreement. The Company also represents that it has not assigned any claim or possible
claim against the Iroquois Released Parties, it fully intends to release all claims against the Iroquois Released Parties and it
has been advised by, and has consulted with counsel with respect to the execution and delivery of this Agreement and has been fully
apprised of the consequences of the waivers, releases and discharges set forth herein.

 

9.           No
Concession or Admission of Liability. This Agreement is being entered into for the purpose of avoiding litigation, uncertainty,
controversy and legal expense, constitutes a compromise and settlement entered into by each Party hereto, and shall not in any
event constitute, be construed or deemed a concession or admission of any liability or wrongdoing of any of the Parties.

 

    	8

     

    

 

10.         Public
Announcements. Promptly following the execution of this Agreement, the Company and Iroquois shall issue a mutually agreeable
press release (the “Mutual Press Release”), announcing certain terms of this Agreement, substantially in the
form attached hereto as Exhibit B. Prior to the issuance of the Mutual Press Release, neither the Company nor Iroquois shall
issue any press release or make any public announcement regarding this Agreement or take any action that would require public disclosure
thereof without the prior written consent of the other Party. During the Standstill Period, neither the Company nor Iroquois or
any of its Affiliates or Associates shall make any public announcement or statement that is inconsistent with or contrary to the
statements made in the Mutual Press Release, except as required by law or the listing standards of any stock exchange (and, in
any event, each Party will provide the other Party, prior to making any such public announcement or statement, a reasonable opportunity
to review and comment on such disclosure, to the extent reasonably practicable under the circumstances, and each Party will consider
any comments from the other in good faith) or with the prior written consent of the other Party, and otherwise in accordance with
this Agreement.

 

11.         Specific
Performance. Each of Iroquois, on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable
injury to the other Party hereto may occur in the event any of the provisions of this Agreement are not performed in accordance
with their specific terms or are otherwise breached and that such injury would not be adequately compensable in monetary damages.
It is accordingly agreed that Iroquois, on the one hand, and the Company, on the other hand (the “Moving Party”),
shall each be entitled to seek specific enforcement of, and injunctive or other equitable relief to prevent any violation of, the
terms hereof, and the other Party hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking
such relief on the grounds that any other remedy or relief is available at law or in equity.

 

12.         Notice.
Any notices, consents, determinations, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending Party); (iii) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically
generated); or (iv) one business day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the Party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Real Goods Solar, Inc.

110 16th Street

Suite 300

Denver, CO 80202

Attention: Dennis Lacey, Chief Executive Officer

Facsimile No.: 303-223-9206

Telephone No.: (303) 222-8541

Email: dennis.lacey@rgsenergy.com

 

    	9

     

    

 

With copies (which shall not constitute notice) to:

 

Brownstein Hyatt Farber Schreck, LLP

410 Seventeenth Street, Suite 2200

Denver, CO 80202

Attention: Kristin M. Macdonald and Rikard Lundberg

Facsimile No.: (303) 223-8232

Telephone No.: (303) 223-1242

		Email:	KMacdonald@BHFS.com

RLundberg@BHFS.com

 

If to Iroquois:

 

Iroquois Capital Management LLC

205 East 42nd Street, 20th Floor

New York, NY 10017

Attention: Richard Abbe

Facsimile No.: (347) 408-0969

Telephone No.: (212) 974-3070

		Email:	RAbbe@icfund.com

 

With copies (which shall not constitute notice) to:

 

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, NY 10019

		Attention:	Andrew Freedman, Esq.

Mohammad Malik, Esq.

Facsimile No.: (212) 451-2222

Telephone No.: (212) 451-2300

		E-mail:	afreedman@olshanlaw.com

mmalik@olshanlaw.com

 

13.         Governing
Law. This Agreement shall be governed in all respects, including validity, interpretation, and effect, by, and construed in
accordance with, the laws of the State of Colorado executed and to be performed wholly within the State of Colorado, without giving
effect to the choice of law or conflict of law principles thereof or of any other jurisdiction to the extent that such principles
would require or permit the application of the laws of another jurisdiction.

 

    	10

     

    

 

14.         Jurisdiction.
Each of the Parties hereto (a) consents to submit itself to the personal jurisdiction of federal or state courts of the State of
Colorado in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that
it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other
than the federal or state courts of the State of Colorado, (c) agrees to waive any bonding requirement under any applicable law,
in the case any other Party seeks to enforce the terms by way of equitable relief, and (d) irrevocably consents to service of process
by first class certified mail, return receipt requested, postage prepaid, to the address of such Party’s principal place
of business or as otherwise provided by applicable law. Each of the Parties hereto irrevocably waives, and agrees not to assert,
by way of motion, as a defense, counterclaim or otherwise, in any action, suit or other legal proceeding with respect to this Agreement,
(a) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b) that it or its
property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through
service of notice, attachment before judgment, attachment in aid of execution of judgment, execution of judgment or otherwise),
and (c) to the fullest extent permitted by applicable law, that (i) such action, suit or other legal proceeding in any such court
is brought in an inconvenient forum, (ii) the venue of such action, suit or other legal proceeding is improper, or (iii) this Agreement,
or the subject matter hereof, may not be enforced in or by such court.

 

15.         Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B)
SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.

 

16.         Entire
Agreement. This Agreement constitutes the full and entire understanding and agreement among the Parties with regard to the
subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings and representations, whether oral
or written, of the Parties with respect to the subject matter hereof. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings, oral or written, between the Parties other than those expressly set forth herein.

 

17.         Headings.
The section headings contained in this Agreement are for reference purposes only and shall not effect in any way the meaning or
interpretation of this Agreement.

 

18.         Waiver.
No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.

 

19.         Remedies.
All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law or equity.

 

    	11

     

    

 

20.         Receipt
of Adequate Information; No Reliance; Representation by Counsel. Each Party acknowledges that it has received adequate information
to enter into this Agreement, that it has had adequate opportunity to make whatever investigation or inquiry it may deem necessary
or desirable in connection with the subject matter of this Agreement prior to the execution hereof, and that it has not relied
on any promise, representation or warranty, express or implied not contained in this Agreement. Each of the Parties hereto acknowledges
that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement,
and that it has executed the same with the advice of said independent counsel. Each Party cooperated and participated in the drafting
and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among
the Parties shall be deemed the work product of all of the Parties and may not be construed against any Party by reason of its
drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities
in this Agreement against any Party that drafted or prepared it is of no application and is hereby expressly waived by each of
the Parties hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting
or preparation. Further, any rule of law or any legal decision that would provide any Party with a defense to the enforcement of
the terms of this Agreement against such Party shall have no application and is expressly waived. The provisions of this Agreement
shall be interpreted in a reasonable manner to effect the intent of the Parties.

 

21.         Construction.
When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise
indicated. Whenever the words “include,” “includes” and “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.” The words “hereof, “herein”
and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. The word “will” shall be construed to have the same meaning as the
word “shall.” The words “dates hereof” will refer to the date of this Agreement. The word “or”
is not exclusive. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such
terms. Any agreement, instrument, law, rule or statute defined or referred to herein means, unless otherwise indicated, such agreement,
instrument, law, rule or statute as from time to time amended, modified or supplemented. The term “business days” shall
have the meaning given to it by the applicable rules of the SEC.

 

22.         Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree shall remain in full force and effect to the extent not held invalid or unenforceable. The Parties further agree
to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve,
to the extent possible, the purposes of such invalid or unenforceable provision.

 

23.         Amendment.
This Agreement may be modified, amended or otherwise changed only in a writing signed by all of the Parties hereto, or their respective
successors or assigns.

 

    	12

     

    

 

24.         Successors
and Assigns. The terms and conditions of this Agreement shall be binding upon and be enforceable by the Parties hereto and
the respective successors, heirs, executors, legal representatives and permitted assigns of the Parties, and inure to the benefit
of any successor, heir, executor, legal representative or permitted assign of any of the Parties; provided, however, that no Party
may assign this Agreement or any rights or obligations hereunder without, with respect to Iroquois, the express prior written consent
of the Company (with such consent specifically authorized in a written resolution adopted and approved by a majority of the Board),
and with respect to the Company, the prior written consent of Iroquois.

 

25.         No
Third-Party Beneficiaries. The representations, warranties and agreements of the Parties contained herein are intended solely
for the benefit of the Party to whom such representations, warranties or agreements are made, and shall confer no rights, benefits,
remedies, obligations, or liabilities hereunder, whether legal or equitable, in any other person or entity, and no other person
or entity shall be entitled to rely thereon.

 

26.         Counterparts;
Facsimile / PDF Signatures. This Agreement and any amendments hereto may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement
shall become effective when each Party hereto shall have received a counterpart hereof signed by the other Parties hereto. In the
event that any signature to this Agreement or any amendment hereto is delivered by facsimile transmission or by e-mail delivery
of a portable document format (.pdf or similar format) data file, such signature shall create a valid and binding obligation of
the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

    	13

     

    

 

IN WITNESS WHEREOF, the Parties have duly executed and delivered
this Agreement as of the date first written above.

 

	 	REAL GOODS SOLAR, INC.
	 	 	 
	 	By:	/s/ Dennis Lacey
	 	Name:	Dennis Lacey
	 	Title:	Chief Executive Officer
	 	 
	 	IROQUOIS CAPITAL MANAGEMENT LLC
	 	 	 
	 	By:	/s/ Richard Abbe
	 	Name:	Richard Abbe
	 	Title:	Authorized Signatory
	 	 
	 	IROQUOIS MASTER FUND LTD
	 	 	 
	 	By:	/s/ Richard Abbe
	 	Name:	Richard Abbe
	 	Title:	Authorized Signatory
	 	 
	 	IROQUOIS CAPITAL INVESTMENT GROUP LLC
	 	 	 
	 	By:	/s/ Richard Abbe
	 	Name:	Richard Abbe
	 	Title:	Authorized Signatory

 

	 	/s/ Richard Abbe
	 	Richard Abbe
	 	 
	 	/s/ Kimberly Page
	 	Kimberly Page

 

[Signature Page to Cooperation Agreement]

 

     

     

    

 

EXHIBIT A

 

IROQUOIS AFFILIATES AND ASSOCIATES

 

	Shareholder	 	Type	 	Quantity	 
	IROQUOIS CAPITAL INVESTMENT GROUP LLC	 	Warrant	 	 	255,806	 
	IROQUOIS CAPITAL INVESTMENT GROUP LLC	 	Warrant	 	 	46,224	 
	IROQUOIS MASTER FUND LTD	 	Warrant	 	 	419,355	 
	IROQUOIS MASTER FUND LTD	 	Warrant	 	 	113,750	 
	IROQUOIS MASTER FUND LTD	 	Common Stock	 	 	5,000	 
	Total Holdings	 	 	 	 	840,135	 

 

     

     

    

 

EXHIBIT B

 

FORM OF PRESS RELEASE

 

(see attached)Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

BIOSTAGE,
INC.

 

	Warrant Shares: ___________	Issue Date:	_________________

 

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

 

Section 1.            Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated December __, 2017, among the Company and the purchasers signatory thereto.

 

Section 2.             Exercise.

 

a)           Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after date hereof and on or before the Termination Date by delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of
the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto. Within
three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the
shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank,
unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice
of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been
exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading
Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases
of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number
of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and
the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may
be less than the amount stated on the face hereof.

 

    	 

     

    

 

b)           Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $2.00, subject to adjustment hereunder
(the “Exercise Price”).

 

c)           Cashless
Exercise. If at any time after the date hereof, (i) there is no effective Registration Statement registering, or no current
prospectus available for, the resale of the Warrant Shares by the Holder, or (ii) this Warrant is exercisable for Series D
Convertible Preferred Stock pursuant to Section 2(e), then this Warrant may also be exercised, in whole or in part, at such time
by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal
to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	(A) = 	the last VWAP immediately preceding the time of delivery of the Notice of Exercise giving rise to the applicable “cashless exercise”, as set forth in the applicable Notice of Exercise (to clarify, the “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used in this calculation);

 

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

 

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

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares.  The Company agrees not
to take any position contrary to this Section 2(c).

 

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

 

    	 	2	 

     

    

 

d)           Mechanics
of Exercise.

 

i.           Delivery
of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder
by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through
its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and
either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant
Shares by the Holder (although for avoidance of any doubt, the Company is not obligated in any manner or circumstance to file or
maintain any such resale registration statement) or (B) the Warrant Shares are eligible for resale by the Holder without volume
or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery of a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after
the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery
of the Notice of Exercise the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares; provided
payment of the aggregate Exercise Price (other than in the case of a Cashless Exercise) is received within three Trading Days of
delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to
a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date
of the applicable Notice of Exercise), $5 per Trading Day (increasing to $10 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered
or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so
long as this Warrant remains outstanding and exercisable.

 

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

 

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

 

    	 	3	 

     

    

 

 

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

 

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

 

vi.         Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of Warrant Shares, all of which taxes and expenses shall be paid by the Company,
and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided,
however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant
when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company
may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The
Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository
Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery
of the Warrant Shares.

 

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

    	 	4	 

     

    

 

e)           Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution
Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii)
exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation,
any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein
beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence,
for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible
for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the reasonable discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties)
and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall provide the Holder necessary assistance to verify or confirm the accuracy of such determination. In addition, a determination
as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or
(C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. 
Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder
the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 49.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of this Warrant. Notwithstanding anything to the
contrary contained herein, in the event that the Beneficial Ownership Limitation limits the intended exercise of any portion of
this Warrant, in lieu of the Common Stock that would otherwise been issued in excess of the Beneficial Ownership Limitation, the
Holder shall be entitled to receive a respective number of shares of the Company’s Series D Convertible Preferred Stock (being
the Preferred Stock defined in the Purchase Agreement) in relation to such Common Stock otherwise issuable upon exercise hereof
in excess of the Beneficial Ownership Limitation (such that the Preferred Stock would be convertible into such excess number of
shares of Common Stock). 

 

    	 	5	 

     

    

 

Section 3.             Certain
Adjustments.

 

a)           Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged, subject to the limitation on fractional shares in Section 2(d)(v).
Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
in the case of a subdivision, combination or re-classification.

 

b)           Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation).

 

c)           Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in
such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

    	 	6	 

     

    

 

d)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor
(the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the
other Transaction Documents in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance
reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction
and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number
of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such
Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this
Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant
and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

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

 

f)            Notice
to Holder.

 

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

 

    	 	7	 

     

    

 

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

 

Section 4.             Transfer
of Warrant.

 

a)           Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant
in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder
delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned in accordance herewith,
may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

    	 	8	 

     

    

 

d)           Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.6 of the Purchase Agreement.

 

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

 

Section 5.             Miscellaneous.

 

a)           No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in
Section 3.

 

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

 

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

 

d)           Authorized
Shares.

 

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

 

    	 	9	 

     

    

 

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

 

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

 

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

 

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

 

g)           Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that all
rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of
this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be
sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

 

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

 

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

 

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

 

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

 

    	 	10	 

     

    

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

  

    	 	11	 

     

    

 

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

  

	 	Biostage, Inc.
	 	 	 
	 	By:	 
	 	 	Name: James McGorry
	 	 	Title:   Chief Executive Officer

 

    	 	12	 

     

    

 

NOTICE OF EXERCISE

 

To: Biostage, Inc.

 

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

 

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

 

 ̈
in lawful money of the United States; or

 

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

 

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

 

	 	 	 

 

The Warrant Shares shall be delivered to
the following DWAC Account Number:

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

(4)   Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities
Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity:	 
	 	 
	Signature of Authorized Signatory of Investing Entity:  	 
	Name of Authorized Signatory:	 
	Title of Authorized Signatory:	 
	 	 
	Date:	 

 

    	 	13	 

     

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute
this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant
and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	(Please Print)	 
	 	 	 
	Address:	 	 
	 	(Please Print)	 
	 	 	 
	Phone Number:	 	 
	 	 	 
	Email Address: 	 	 

 

	Dated: _______________ __, ______	 

 

	Holder’s Signature:	 	 
	 	 	 
	Holder’s Address:	 	 

  

    	 	14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]