Document:

Registration Rights Agreement

 Exhibit 4.5 
  
 REGISTRATION RIGHTS AGREEMENT 
  

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of April 4, 2005, by and among Raser
Technologies, Inc., a Utah corporation (the “Company”), and the investors signatory hereto (individually, a “Buyer” and collectively, the “Buyers”). 
  
 WHEREAS: 
  
 A. In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the
“Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to issue and sell to the Buyers (i) 20,000 shares of the Company’s Series C Preferred Stock, par
value $0.01 per share (the “Series C Preferred Stock”), and (ii) warrants (the “Warrants”) which will be exercisable to purchase shares of Common Stock (as exercised collectively, the
“Warrant Shares”); 
  
 B. To induce the
Buyers to execute and deliver the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations
thereunder, and applicable state securities laws. 
  
 NOW
THEREFORE, the Company and the Buyers hereby agree as follows: 
  
 1. Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms
shall have the following meanings: 
  
 “Advice” has the meaning set forth in Section 9(b)(i). 
  
 “Affiliate” means with respect to any individual, corporation, partnership, association, trust, or any other entity (in each case, a “Person”), any Person which,
directly or indirectly, controls, is controlled by or is under common control with such Person. 
  
 “Business Days” means any day other than Saturday, Sunday or any other day on which the commercial banks of New York City are
authorized or required by law to remain closed. 
  
 “Certificate of Designation” means the Certificate of Designation of Preferences, Rights and Limitations of the Series C Preferred Stock. 
  
 “Common Stock” means the Company’s Common Stock, par value $0.01 per share. 
  
 “Effectiveness Date” means the earlier of (i) the
date that is ninety (90) days following the Closing Date and (ii) five (5) Business Days following the date that the SEC notifies the Company that it will not review the Registration Statement or that the Company may request effectiveness of the
Registration Statement. 

 “Effectiveness Period” has the meaning set forth in Section 3(a).

  
 “Exchange Act” means the Exchange Act
of 1934, as amended, or any similar federal statute and the rules and regulations of the SEC thereunder, all as the same shall be in effect at the time. 
  
 “Filing Date” means the date that the Registration Statement is filed with the SEC. 
  
 “Indemnified Party” has the meaning set forth in
Section 6(c). 
  
 “Indemnifying
Party” has the meaning set forth in Section 6(c). 
  
 “Losses” has the meaning set forth in Section 6(a). 
  
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened. 
  
 “Prospectus” means the
prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
  
 “Registrable Securities” means the Common Stock issued or issuable upon exercise of the Warrants and
the Common Stock issuable or issued upon conversion of the Series C Preferred Stock, together with any shares of Common Stock issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to
the foregoing. 
  
 “Registration
Statement” means the registration statement required to be filed hereunder, including the Prospectus, amendments and supplements to the registration statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in the registration statement. 
  
 “Restricted Securities” means the securities of the Company required to bear the legend set forth in Section 2(b) hereof.

  
 “Rule 144” means Rule 144 promulgated
by the SEC pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as such Rule 

 “Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act,
as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as such Rule. 
  
 “SEC” means the United States Securities and Exchange Commission. 
  
 “Selling Expenses” means all underwriting discounts,
selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Buyer (other than the fees and disbursements of counsel included in the registration expenses set forth in
Section 5). 
  
 2. Transferability. 
  
 (a) The Registrable Securities shall not be sold, assigned, or transferred
except upon the conditions specified in this Section 2, which conditions are intended to ensure compliance with the provisions of the Securities Act. The Buyers will cause any proposed purchaser, assignee, or transferee of the Registrable
Securities held by the Buyers to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Section 2 and Section 8. In addition to the other conditions specified in this Section
2, any pledge of Registrable Securities shall be given only to accredited investors in compliance with applicable federal and state securities laws, and shall be foreclosed only in compliance with applicable federal and state securities laws.

  
 (b) Each certificate representing (i) the Registrable
Securities and (ii) any other securities issued in respect of the Registrable Securities upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of
Section 2(c) below) be stamped or otherwise imprinted with the following legend, together with any other legends that may be required by the Company or by state or federal securities laws: 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. 

 The Buyers consent to the Company making a notation on its records and giving instructions to any
transfer agent of the Registrable Securities in order to implement the restrictions on transfer established in this Section 2. 
  
 (c) The Buyer of each certificate representing Restricted Securities, by acceptance thereof, agrees to comply in all respects with the provisions of this
Section 2. Prior to any proposed sale, assignment, or transfer of any Restricted Securities (other than (i) a transfer not involving a change in beneficial ownership, (ii) in transactions involving the distribution without consideration of
Restricted Securities by a Buyer to any of its partners, or retired partners, or to the estate of any of its partners or retired partners, or the transfer by gift, will or intestate succession of any partner to his or her spouse or to the siblings,
lineal descendants or ancestors of such partner or his or her spouse, or (iii) a transfer to an affiliated fund, partnership or company, which is not a competitor of the Company), subject to compliance with applicable securities laws, unless there
is in effect a registration statement under the Securities Act covering the proposed transfer, the Buyer thereof shall give written notice to the Company of such Buyer’s intention to effect such transfer, sale or assignment). Each such notice
shall describe the manner and circumstances of the proposed transfer, sale or assignment in sufficient detail, and if reasonably requested by the Company, such Buyer shall have furnished at such Buyer’s expense, either (i) a written opinion of
legal counsel who shall be, and whose legal opinion shall be, reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transfer of the Restricted Securities may be effected without registration under the
Securities Act, or (ii) a “no action” letter from the SEC to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto,
whereupon the Buyer of such Restricted Securities shall be entitled to transfer such Restricted Securities in accordance with the terms of the notice delivered by the Buyer to the Company. Each certificate evidencing the Restricted Securities
transferred as above provided shall bear, except if such transfer is made pursuant to Rule 144, the appropriate restrictive legend specified in Section 2(b) above. 
  
 3. Registration. 
  
 (a) Promptly following the Closing Date, the Company shall prepare and file with the SEC the Registration Statement covering the resale of all of the
Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement required hereunder shall be on Form SB-2 (except if the Company is not then eligible to register for resale the Registrable
Securities on Form SB-2, in which case the Registration shall be on another appropriate form in accordance herewith). The Registration Statement required hereunder shall contain substantially the “Plan of Distribution”
attached hereto as Exhibit A. Subject to the terms of this Agreement, the Company shall use its commercially reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act not later than the
Effectiveness Date, and shall use its commercially reasonable efforts to keep the Registration Statement continuously effective under the Securities Act until the date when all Registrable Securities covered by the Registration Statement (i) have
been sold pursuant to Rule 144, (ii) have been sold pursuant to an effective registration statement, or (iii) have been sold or may be sold without volume restrictions pursuant to Rule 144(k) as determined by the counsel to the Company (the
“Effectiveness Period”). 

 (b) At the time the Registration Statement is declared effective, the holders of Registrable Securities
shall be named as selling securityholders in the Registration Statement and the related Prospectus in such a manner as to permit such holders to deliver such Prospectus to purchasers of Registrable Securities in accordance with applicable law.
Subject to Section 9(e), none of the Company’s securityholders (other than the holders of Registrable Securities at the time the Registration Statement is declared effective and so identified in such Registration Statement and related
Prospectus as selling securityholders) shall have the right to sell any of the Company’s securities pursuant to the Registration Statement. 
  
 4. Registration Procedures 
  
 In connection with the Company’s registration obligations hereunder, the Company shall: 
  
 (a) Prior to the filing of the Registration Statement or any related
Prospectus or any amendment or supplement thereto, the Company shall furnish to the Buyers copies of all such documents proposed to be filed (including documents incorporated or deemed incorporated by reference to the extent requested by such
Person) which documents will be subject to the review of such Buyers. The Company shall use reasonable efforts to reflect in the Registration Statement or any such Prospectus or any amendments or supplements thereto, such comments, if any, as the
Buyers of a majority of the Registrable Securities shall reasonably propose, provided that the Company is notified of such comments in writing no later than two (2) Business Days after the Buyers have been so furnished copies of such documents.

  
 (b) Subject to Section 4(i), prepare and file with the
SEC such amendments and supplements to the Registration Statement (including any Exchange Act documents incorporated by reference in such Registration Statement) and the Prospectus used in connection with such Registration Statement as may be
necessary to keep the Registration Statement effective as required herein and to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement; and use commercially
reasonable efforts to comply with the provisions of the Securities Act applicable to it with respect to the disposition of all Registrable Securities covered by the Registration Statement during the Effectiveness Period in accordance with the
intended methods of disposition by the sellers thereof set forth in the Registration Statement as so amended or such Prospectus as so supplemented. Subject to Section 4(i), the Company shall respond to comments of the SEC with respect to the
Registration Statement with five (5) Business Days of receipt thereof. 
  
 (c) As promptly as reasonably practicable give notice to the Buyers and counsel for the Buyers, (i) when any Prospectus, Prospectus supplement, Registration Statement or amendment to the Registration Statement has been filed with the SEC
and, with respect to the Registration Statement or any post-effective amendment, when the same has been declared effective, (ii) of any written request, following the effectiveness of the Registration Statement under the Securities Act, by the SEC
or any other federal or state governmental authority for amendments or supplements to the Registration Statement or related Prospectus or for additional information, (iii) of the issuance by the SEC or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration Statement or the initiation or written threat of any proceedings for that purpose, (iv) of the receipt by the Company of any 

 
notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or the written threat of any proceeding for such purpose, (v) of the occurrence of a Material Event (as defined below) (but not the nature of or details concerning such Material Event) and (vi) of the determination by
the Company that a post-effective amendment to the Registration Statement or Prospectus supplement will be filed with the SEC, which notice may, at the discretion of the Company (or as required pursuant to Section 4(i)), state that it
constitutes a Deferral Notice (as defined below), in which event the provisions of Section 4(i) shall apply. 
  
 (d) Use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of
the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction. 
  
 (e) Furnish to each Buyer, without charge, at least one conformed copy of the Registration Statement and each amendment
thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Person, and all exhibits to the extent requested by such Person (including those
previously furnished or incorporated by reference) promptly after the filing of such documents with the SEC. 
  
 (f) Promptly deliver to each Buyer, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request in connection with resales by the Buyer of Registrable Securities. Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each
amendment or supplement thereto by each of the selling Buyers in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant
to Section 4(c). 
  
 (g) The Company shall use commercially
reasonable efforts to register and qualify the Registrable Securities held by the Buyers covered by the Registration Statement under such securities or blue sky laws of such states as may be reasonably necessary or advisable to enable the Buyers to
consummate the disposition of the Registrable Securities held by the Buyers in such states; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject
the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction. 
  
 (h) If requested by the Buyers, cooperate with the Buyers to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement and to enable such Registrable Securities to be in such denominations and registered in such names as any such Buyers may request. 

 
 (i) Upon (i) the issuance by the SEC of a stop order suspending the
effectiveness of the Registration Statement or the initiation of proceedings with respect to the Registration Statement under Section 8(d) or 8(e) of the Securities Act; (ii) such time as the 

 
Registration Statement or related Prospectus omits information required to be contained therein; (iii) the occurrence of any event or the existence of any
fact or circumstance or the passage of time as a result of which the Registration Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading (a “Material Event”); or (iv) the occurrence, existence or pendency of any corporate development that, in the reasonable discretion of the Company, makes it detrimental to the Company for
the Registration Statement and the related Prospectus to be available, (A) in the case of clauses (ii) and (iii) above, subject to the next sentence, the Company shall as promptly as practicable prepare and file, if necessary pursuant to applicable
law, a post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required document that would be incorporated by reference into the
Registration Statement and Prospectus so that (x) all information required to be contained in the Registration Statement or related Prospectus is contained or incorporated reference therein, or (y) the Registration Statement does not contain any
untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and such Prospectus does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case, as thereafter delivered to the purchasers of the
Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to a Registration Statement, subject to the next sentence, use commercially reasonable efforts to cause it to be declared effective as promptly as is
reasonably practicable, and (B) give notice to the Buyer, counsel for the Buyer and underwriter, if any, that the availability of the Registration Statement is suspended (a “Deferral Notice”) and, upon receipt of any Deferral
Notice, the Buyer agrees not to sell any Registrable Securities pursuant to the Registration Statement until the Buyer’s receipt of copies of the supplemented or amended Prospectus or amended Registration Statement, or until it is advised in
writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus. The Company will use commercially reasonable
efforts to ensure that the use of the Prospectus may be resumed (x) in the case of clauses (i) and (ii) above, as promptly as is reasonably practicable, (y) in the case of clause (iii) above, as soon as, in the sole judgment of the Company, public
disclosure of such Material Event would not be prejudicial to or contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as soon as reasonably practicable thereafter and (z) in the case of clause (iv)
above, as soon as in the reasonable discretion of the Company, such suspension is no longer appropriate. The Company shall be entitled to exercise its right under this Section 4(i) with respect to clauses (iii) and (iv) above, to suspend the
availability of the Registration Statement or any Prospectus for no more than 30 days in any single period (or 45 days in the event of a Material Event pursuant to which the Company has delivered a second notice as specified below) and no more than
60 days during any 12-month period (each a “Deferral Period”). Notwithstanding the foregoing, in the case of a Material Event relating to an acquisition or a probable acquisition or financing, recapitalization, business
combination or other similar transaction, the Company may deliver to the Buyers a second notice, which shall have the effect of extending the Deferral Period by up to an additional 15 days, or such shorter period of time as is specified in such
second notice. 

 (j) The Company may require each Buyer to furnish to the Company a certified statement as to the number
of securities of the Company beneficially owned by such Buyer and, if required by the SEC, the person thereof that has voting and dispositive control over the Shares. During any periods that the Company is unable to meet its obligations hereunder
with respect to the registration of the Registrable Securities solely because any Buyer fails to furnish such information within three (3) Business Days of the Company’s request, any liquidated damages that are accruing at such time as to such
Buyer only shall be tolled and any Registration Default (as defined below) that may otherwise occur solely because of such delay shall be suspended as to such Buyer only, until such information is delivered to the Company. 
  
 (k) If the Company becomes eligible to file a Registration Statement on Form
S-3 (the date on which the Company becomes so eligible, the “S-3 Eligibility Date”), then with respect to the Registration Statement filed on Form SB-2 (or other similar or successor form, if applicable) prior to the S-3
Eligibility Date, the Company may cause to be filed a Registration Statement on Form S-3 to replace the Registration Statement on Form SB-2 and cause such Registration Statement on Form S-3 to be declared effective by the SEC as soon as possible
after filing, thereafter to cause to be filed a post-effective amendment to each Registration Statement on Form SB-2 to de-register unsold shares under such Registration Statement. 
  
 5. Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by
the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration
and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the trading market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or
blue sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of
the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company and fees and disbursements, not to exceed $5,000, of one counsel to the
Buyers, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.
In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers
and employees performing legal or accounting duties), the expense of any annual audit and the reasonable fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. All
Selling Expenses related to securities registered on behalf of the Buyers and all other registration expenses shall be borne by the Buyers of such securities. 

 6. Indemnification 
  
 (a) Indemnification by the Company. The Company shall indemnify and hold harmless each Buyer, the officers,
directors, agents and employees of each of them, each Person who controls any such Buyer (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such
controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or
form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information
regarding such Buyer furnished in writing to the Company by such Buyer expressly for use therein, or to the extent that such information relates to such Buyer or such Buyer’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Buyer expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Buyer has approved
Exhibit A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 4(c)(ii) and (iii), the use by such Buyer of an outdated or defective Prospectus after the Company has notified
such Buyer in writing that the Prospectus is outdated or defective and prior to the receipt by such Buyer of the Advice contemplated in Section 9(b)(i). The Company shall notify the Buyers promptly of the institution, threat or assertion of
any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement. 
  
 (b) Indemnification by Buyers. Each Buyer shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Buyer’s failure to comply with the prospectus delivery requirements of the Securities Act or (y) any
untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to
any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any
information so furnished in writing by such Buyer to the Company specifically for inclusion in the Registration Statement or such Prospectus or (ii) to the extent that (1) such untrue statements or omissions are based solely upon information
regarding such Buyer furnished in writing to the Company by such Buyer expressly for use therein, or to the extent that such information relates to such Buyer or such Buyer’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Buyer expressly for use in the Registration Statement (it being understood that the Buyer has approved 

 
Exhibit A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of
an occurrence of an event of the type specified in Section 4(c)(ii)-(v), the use by such Buyer of an outdated or defective Prospectus after the Company has notified such Buyer in writing that the Prospectus is outdated or defective and prior
to the receipt by such Buyer of the Advice contemplated in Section 9(b)(i). In no event shall the liability of any selling Buyer hereunder be greater in amount than the lesser of (i) the aggregate purchase price paid by the Buyer for the
Registrable Securities, and (ii) dollar amount of the net proceeds received by such Buyer upon the sale of the Registrable Securities giving rise to such indemnification obligation. 
  
 (c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person
entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the
Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined
by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have prejudiced the Indemnifying Party. 
  
 An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof
and the reasonable fees and expenses of one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent
shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement
includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 
  
 Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Business Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly 

 
reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is not entitled to
indemnification hereunder, determined based upon the relative faults of the parties. 
  
 (d) Contribution. If a claim for indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu
of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified
Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any
Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would
have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms. 
  
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 6(d), no Buyer shall be required
to contribute, in the aggregate, the lesser of (i) the aggregate purchase price paid by the Buyer for the Registrable Securities, and (ii) any amount in excess of the amount by which the net proceeds actually received by such Buyer from the sale of
the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Buyer has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, except in the case of
fraud by such Buyer. 
  
 The indemnity and contribution agreements
contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 
  
 7. Liquidated Damages 
  
 (a) If on or prior to the Effectiveness Date, the Registration Statement is not declared effective by the SEC (a “Registration
Default”), the Company shall be required to pay liquidated damages (“Liquidated Damages”) to each Buyer, from and including the day following such Registration Default until the earlier of (i) the time that the
Registration Statement is declared effective, or (ii) the time the Effectiveness Period expires at a rate per month equal to 0.67% of the total purchase price of the Series C Preferred Stock purchased by such Buyer pursuant to the Purchase
Agreement. 

 (b) In the event that the Company exercises its right pursuant to Section 4(i) to suspend the
availability of the Registration Statement for a period exceeding the maximum number of days specified therein for the applicable Deferral Period (a “Deferral Default”), the Company shall pay Liquidated Damages to each Buyer
at a rate per month equal to 0.67% of the total purchase price of the Series C Preferred Stock purchased by such Buyer pursuant to the Purchase Agreement, or portion thereof, corresponding to the Registrable Securities from and including the day
following such Deferral Default until such time as the Company delivers the Advice to the Buyers described in Section 9(b); provided, that, where two or more Deferral Periods relate to a single Deferral Notice, such Deferral Periods
shall give rise to no more than one Deferral Default, such that the Company shall be obligated to pay Liquidated Damages with respect to only one such Deferral Period. 
  
 (c) Any amounts to be paid as Liquidated Damages pursuant to paragraphs (a) or (b) of this Section 7 shall be paid
upon the earlier of (i) the end of each 30 day period following a Registration Default or Deferral Default or (ii) the third day after such Registration Default or Deferral Default is cured. 
  
 (d) The Liquidated Damages as set forth in this Section 7 shall be
available to the Buyer for a Registration Default or Effectiveness Default, as the case may be, for the periods for which the Liquidated Damages are applicable. In no event shall the Company be required to pay Liquidated Damages in excess of the
applicable maximum amount of 8.0% of the total purchase price of the Series C Preferred Stock purchased by such Buyer pursuant to the Purchase Agreement. 
  
 8. Certain Trading Limitations. The Buyers agree that prior to the effective date of the Registration Statement and during the Reference Period (as
defined in the Certificate of Designation) and the ten (10) day period prior to the Reference Period, the Buyers (including their respective Affiliates), will not enter into any Short Sales (as defined below) or any transaction that would have a
similar effect as a Short Sale. “Short Sale” by a Buyer means a sale of Common Stock that is marked as a short sale and that is executed at a time when such Buyer has no equivalent offsetting long position in the Common
Stock. For purposes of determining whether a Buyer has an equivalent offsetting long position in the Common Stock, all Common Stock that would be issuable upon exercise in full of all securities then held by such Buyer (assuming that such securities
were then fully exercisable, notwithstanding any provisions to the contrary, and giving effect to any exercise price adjustments scheduled to take effect in the future) shall be deemed to be held long by such Buyer. 
  
 9. Miscellaneous 
  
 (a) Compliance. Each Buyer covenants and agrees that it will comply
with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. 
  
 (b) Obligations of Buyers 
  

(i) Each Buyer agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event
of the kind 

 
described in Section 4(c), such Buyer will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until
such Buyer’s receipt of the copies of the supplemented or amended Prospectus or amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may
be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop
orders to enforce the provisions of this paragraph. 
  
 (ii) Each
Buyer, by such Buyer’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Registration Statement hereunder. 
  
 (iii) No Buyer may participate in any underwritten distribution hereunder
unless such Buyer (i) agrees to sell such Buyer’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Buyers entitled hereunder to approve such arrangements, (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, and (iii) agrees to pay its pro rata share of all underwriting discounts and
commissions and other fees and expenses of investment bankers and any manager or managers of such underwriting and legal expenses of the underwriter applicable with respect to Registrable Securities, in each case to the extent not payable by the
Company pursuant to the terms of this Agreement. 
  
 (iv) Each
Buyer agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company, which notice shall not contain any material non-public information, pursuant to Section 4(c) and 4(i) hereof, that it will
not disclose or disseminate such information or fact to any other person or entity (other than its employees or agents having a need to know such information or fact, and its attorneys), except in connection with the exercise of rights under this
Agreement, unless the Company has made such information or fact available to the public generally or such Buyer is required to disclose such information or fact to a governmental authority. 
  
 (c) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Buyers
of the majority of the Registrable Securities then outstanding. Any amendment, modification, supplementation, waiver or consent effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities then
outstanding, each future holder of all such Registrable Securities, and the Company. Any amendment, termination or waiver effected in accordance with this Section 9(c) shall be binding on all parties hereto, even if they do not execute such
consent. 
  
 (d) Notices. Any and all notices or other
communications or deliveries required or permitted to be provided hereunder shall be made in accordance with the provisions of the Purchase Agreement. 

 (e) Transfer of Registration Rights. Prior to the date that the SEC has declared the Registration
Statement effective and at any time thereafter that so the Registration Statement is not effective, this Agreement may be assigned to a transferee or assignee in connection with any transfer or assignment of all or a portion of the Registrable
Securities by a Buyer, provided that (i) such transfer is otherwise effected in accordance with applicable securities laws and the terms of this Agreement and the Purchase Agreement, (ii) such assignee or transferee acquired at least 50,000 shares
of Registrable Securities (as adjusted for stock splits, stock dividends, stock combinations and the like), (iii) written notice is promptly given to the Company, and (iv) such transferee agrees to be bound by the provisions of this Agreement. Upon
and following the date that the SEC has declared the Registration Statement effective and so long as the Registration Statement is effective, this Agreement may be assigned only pursuant to donative transfers for no value to constituent partners or
retired partners of a Buyer that is a partnership; parent, subsidiary or other affiliate of a Buyer that is a corporation; or an immediate family member living in the same household, a descendant, or a trust therefore, in the case of a Buyer that is
an individual, in each case, provided that (i) such transfer is otherwise effected in accordance with applicable securities laws and the terms of this Agreement and the Purchase Agreement, (ii) written notice is promptly given to the Company, and
(iii) such donative transferee agrees to be bound by the provisions of this Agreement. 
  
 (f) Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile
signature. 
  
 (g) Governing Law. All questions concerning
the construction, validity, enforcement and interpretation of this Agreement shall be determined with the provisions of the Purchase Agreement. 
  
 (h) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
  
 (i) Headings. The headings in this Agreement are for convenience of
reference only and shall not form part of, or affect the interpretation of, this Agreement. 
  
 (j) Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer hereunder are several and not joint with the obligations of any other Buyer hereunder, and no Buyer shall be
responsible in any way for the performance of the obligations 

 
of any other Buyer hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Buyer
pursuant hereto or thereto, shall be deemed to constitute the Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Buyers are in any way acting in concert with respect to such
obligations or the transactions contemplated by this Agreement. Each Buyer shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Buyer
to be joined as an additional party in any proceeding for such purpose. 
  
 (k) Entire Agreement. The Transaction Documents constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter
hereof existing between the parties are expressly cancelled. 
  
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

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

			
	COMPANY:
	
	 RASER TECHNOLOGIES, INC.

		
	 By:
	 	 /s/ Brent M. Cook

	 	 	 Brent M. Cook

	 	 	 Chief Executive Officer

  
 [SIGNATURE PAGE
TO REGISTRATION RIGHTS AGREEMENT] 

			
	BUYER:
	
	 Kings Road Investments Ltd.

		
	 By:
	 	 /s/ Brandon L. Jones

	 Name:
	 	 Brandon L. Jones

	 Its:
	 	 Authorized Signatory

  
 [SIGNATURE PAGE
TO REGISTRATION RIGHTS AGREEMENT] 

			
	BUYER:
	
	 SRG Capital, LLC

		
	 By:
	 	 /s/ Yoav Roth

	 Name:
	 	 Yoav Roth

	 Its:
	 	 Portfolio Manager

  
 [SIGNATURE PAGE
TO REGISTRATION RIGHTS AGREEMENT] 

			
	BUYER:
	
	 Portside Growth & Opportunity Fund

		
	 By:
	 	 /s/ Jeff Smith

	 Name:
	 	 Jeff Smith

	 Its:
	 	 Authorized Signatory

  
 [SIGNATURE PAGE
TO REGISTRATION RIGHTS AGREEMENT] 

 EXHIBIT A 
  
 PLAN OF DISTRIBUTION 
  

The Selling Stockholders (the “Selling Stockholders”) of the common stock (“Common Stock”) of Raser
Technologies, Inc. (the “Company”) and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one or more of the following methods when selling shares: 
  

	 	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

  

	 	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	an exchange distribution in accordance with the rules of the applicable exchange; 

  

	 	•	 	privately negotiated transactions; 

  

	 	•	 	settlement of short sales; 

  

	 	•	 	broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share; 

  

	 	•	 	a combination of any such methods of sale; or 

  

	 	•	 	any other method permitted pursuant to applicable law. 

  
 The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”),
if available, rather than under this prospectus. 
  
 Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for
the purchaser of shares, from the purchaser) in amounts to be negotiated. Each Selling Stockholder does not expect these commissions and discounts relating to its sales of shares to exceed what is customary in the types of transactions involved.

  
 In connection with sales of the Shares of Common Stock or
otherwise, the selling shareholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of Common Stock in the course of hedging in positions they assume. 

 
The selling shareholders may also sell shares of Common Stock short and deliver shares of Common Stock covered by this prospectus to close out short
positions and to return borrowed shares in connection with such short sales. The selling shareholder may also loan or pledge shares of Common Stock to broker-dealers that in turn may sell such shares. 
  
 The Selling Stockholders and any broker-dealers or agents that are involved
in selling the shares may be deemed to be “underwriters” within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any agreement or understanding, directly or indirectly, with any
person to distribute the Common Stock. 
  
 The Company is required
to pay certain fees and expenses incurred by the Company incident to the registration of the shares. The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under
the Securities Act. 
  
 Because Selling Stockholders may be deemed
to be “underwriters” within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act. In addition, any securities covered by this prospectus which qualify for sale pursuant to
Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. Each Selling Stockholder has advised us that they have not entered into any agreements, understandings or arrangements with any underwriter or
broker-dealer regarding the sale of the resale shares. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the Selling Stockholders. 
  
 We agreed to keep this prospectus effective until the earlier of (i) the date
on which the shares may be resold by the Selling Stockholders without registration and without regard to any volume limitations by reason of Rule 144(e) under the Securities Act or any other rule of similar effect or (ii) all of the shares have been
sold pursuant to the prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In
addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

  
 Under applicable rules and regulations under the Exchange Act,
any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to our common stock for a period of two business days prior to the commencement of the distribution. In addition, the
Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of our common stock by the Selling
Stockholders or any other person. We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale.Certificate of Designation of Preferences, Rights and Limitations

 Exhibit 4.6 
  
 CERTIFICATE OF DESIGNATION OF PREFERENCES, 
 RIGHTS AND LIMITATIONS 
 OF 
 SERIES C CONVERTIBLE PREFERRED STOCK 
  
 of 
  
 RASER TECHNOLOGIES, INC. 
 a Utah Corporation 
  

  
 Pursuant to Section 16-10a-602 of the 
 Utah Revised Business Corporation Act

  

  
 RASER TECHNOLOGIES, INC., a corporation organized and existing under the Utah Revised Business Corporation Act (the “Company”),
DOES HEREBY CERTIFY: 
  
 That, pursuant to authority conferred
upon the Board of Directors of the Company by the Articles of Incorporation of said Company, and pursuant to the provisions of Section 16-10a-602 of the Utah Revised Business Corporation Act, there hereby is created, out of the 5,000,000 shares of
Preferred Stock of the Company authorized in Article IV of the Articles of Incorporation, a series of the Preferred Stock consisting of 20,000 shares, $0.01 par value per share, to be designated “Series C Convertible Preferred Stock,” and
to that end the Board adopted a resolution providing for the preferences, rights and limitations of the Series C Convertible Preferred Stock, which resolution is as follows: 
  
 RESOLVED: That the Certificate of Designation of Preferences, Rights and Limitations of the Series C
Convertible Preferred Stock (“Certificate of Designation”) be and is hereby authorized and approved, which Certificate of Designation shall be filed with the Utah Division of Corporations and Commercial Code. 
  
 1. Definitions. For purposes of this Certificate of Designation, the
following definitions will apply: 
  
 (a) “Additional
Shares of Common” has the meaning set forth in Section 6(g) below. 
  
 (b) “Alternate Conversion Price” means the simple average of the closing stock prices of the Common Stock as reported on the Trading Market during the Reference Period; provided,
however, that in the event that the closing stock price of the Common Stock as reported on the Trading Market during any Trading Day during the Reference Period exceeds the Pre-Reference Period Premium Price, then for such Trading Day during the
Reference Period, the Pre-Reference Period Premium Price shall be substituted for the actual closing stock price for that Trading Day for the purposes of calculating the Alternate Conversion Price; and provided further 

  

 - 1 - 

 
that in the event that the closing stock price of the Common Stock during any Trading Day during the Reference Period is less than the Pre-Reference Period
Deficit Price, then for such Trading Day during the Reference Period, the Pre-Reference Period Deficit Price shall be substituted for the actual closing stock price for such Trading Day for the purposes of calculating the Alternate Conversion Price.

  
 (c) “Alternate Optional Conversion Eligibility
Date” means the 150th day after Original Issue Date. 
  
 (d) “Board” means the Company’s Board of
Directors. 
  
 (e) “Certificate of
Designation” means this Certificate of the Designations, Powers, Preferences and rights of the Series C Convertible Preferred Stock 
  
 (f) “Commission” means the United States Securities and Exchange Commission. 
  
 (g) “Common Stock” means the Company’s Common
Stock, par value $0.01 per share. 
  
 (h) “Conversion
Notice” has the meaning set forth in Section 6(d) below. 
  
 (i) “Conversion Price” means (i) prior to the earlier of (x) the Alternate Optional Conversion Eligibility Date and (y) the Mandatory Conversion Date, 24.00 per share and (ii) thereafter, the
lower of (x) 24.00per share and (y) the Alternate Conversion Price, in all cases subject to adjustment as set forth below in Section 6. 
  
 (j) “Convertible Securities” means any evidence of indebtedness, shares or other securities (other than shares of Series C
Preferred Stock) convertible into or exchangeable for Common Stock. 
  
 (k) “Equity Conditions” means that during the period commencing with the first Trading Day of the applicable Reference Period and ending on the Mandatory Conversion Date, the Equity Requirements are satisfied.

  
 (l) “Equity Requirements” means (i)
the Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all remaining Registrable Securities (as defined in the Registration Rights Agreement) in accordance with the terms of
the Registration Rights Agreement and there shall not have been any Deferral Periods (as defined in the Registration Rights Agreement) during the applicable Reference Period, and (ii) the Common Stock shall have been authorized for quotation on the
OTC Bulletin Board, the American Stock Exchange or any national securities exchange or automated quotation system, if any, upon which the Common Stock is then listed. 
  
 (m) “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more
related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets
of the Company to another person, or (iii) allow another person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any 

  

 - 2 - 

 
shares of Common Stock held by the person or persons making or party to, or associated or affiliated with the persons making or party to, such purchase,
tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person whereby such other
person acquires more than the 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 purchase agreement or other business combination), or (v) reorganize, recapitalize or reclassify its Common Stock. 
  
 (n) “Mandatory Conversion Date” means the sixtieth (60th) day following the date that the Commission declares effective the Registration Statement filed pursuant to the Registration Rights Agreement or, in the event
that the Equity Conditions are not satisfied or waived by the applicable holder any date that would be a Mandatory Conversion Date but for the failure of the Equity Conditions to be satisfied on such date, the twentieth (20th) Trading Day after the next succeeding Trading Day that the Equity Requirements are satisfied (the foregoing to be applicable
successively until a mandatory Conversion Date occurs). 
  
 (o)
“Mandatory Conversion Preferred Shares” means a number of shares of Series C Preferred Stock equal to the product of (x) the Remaining Preferred Shares and (y) the quotient of (A) the Maximum Share Number and (B) the Required
Number of Shares; provided that if the foregoing calculation yields zero or a number below zero, the Mandatory Conversion Preferred Shares shall equal zero; provided further that if the foregoing calculation yields a number in excess of the
Remaining Preferred Shares, the Mandatory Conversion Preferred Shares shall equal the Remaining Preferred Shares. 
  
 (p) “Maturity Date” means the Trading Day immediately after the Mandatory Conversion Date. 
  
 (q) “Maximum Share Number” means a number of shares
of Common Stock equal to (x) 2,833,333 minus (y) the number of shares of Common Stock issued upon Optional Conversions. 
  
 (r) “Optional Conversion” has the meaning set forth in Section 6(a). 
  
 (s) “Optional Conversion Date” has the meaning set
forth in Section 6(a). 
  
 (t)
“Options” means rights, options, or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities. 
  
 (u) “Original Issue Date” means the original issue date of the Series C Preferred Stock. 
  
 (v) “Original Issue Price” means $1,000 per share of
Series C Preferred Stock. 
  
 (w) “Pro-Rata
Amount” an amount determined by dividing the number of shares of Series C Preferred Stock issued to the applicable holder on the Original Issue Date by the Original Issuance Number; provided that a holder’s Pro-Rata Amount will be
equitably adjusted to reflect any Optional Conversions. 
  

 - 3 - 

 (x) “Preferred Stock” means the Company’s Preferred Stock, par value $0.01
per share. 
  
 (y) “Pre-Reference Period Average
Price” means the simple average of the closing stock prices of the Common Stock as reported on the Trading Market for the ten (10) Trading Days immediately prior to the Reference Period. 
  
 (z) “Pre-Reference Period Deficit Price” means the
quotient obtained by dividing the Pre-Reference Period Average Price by two (2). 
  
 (aa) “Pre-Reference Period Premium Price” means the product obtained by multiplying the Pre-Reference Average Period Price by a factor of 1.5. 
  
 (bb) “Reference Period” means the ten (10) Trading
Days immediately prior to (x) the Mandatory Conversion Date or (y) the Conversion Date in the case of an Optional Conversion after the Alternate Optional Conversion Eligibility Date, as applicable. 
  
 (cc) “Remaining Preferred Shares” means a number of
shares of Series C Preferred Stock equal to (x) the Original Issuance Number minus (y) the number of shares of Series C Preferred Stock converted pursuant to Optional Conversions. 
  
 (dd) “Registration Rights Agreement” means that certain Registration Rights Agreement, dated April
3, 2005, by and among the Company and the other persons and entities identified therein. 
  
 (ee) “Registration Statement” means the registration statement filed (or required to be filed, as the case may be) with the Commission pursuant to the Registration Rights Agreement. 

 
 (ff) “Required Number of Shares” means the
quotient of (x) the product of (I) the Remaining Preferred Shares and (II) Original Issue Price divided by (y) the Conversion Price. 
  
 (gg) “Series C Preferred Stock” means the Company’s Series C Convertible Preferred Stock, par value $0.01 per share.

  
 (hh) “Successor Entity” means the
person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the person with which such Fundamental Transaction shall have been made. 
  
 (ii) “Trading Days” means any day during which the Trading Market is open for business. 

 
 (jj) “Trading Market” means the following markets
or exchanges on which the Common Stock is listed or quoted for trading on any date of determination: the OTC Bulletin Board, the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or The Nasdaq SmallCap Market.

  
 2. Designations and Amount. 20,000 shares (the
“Original Issuance Number”) of the Preferred Stock of the Company, $0.01 par value per share, shall constitute a class of Preferred Stock designated as “Series C Convertible Preferred Stock” (the “Series
C Preferred Stock”). 
  

 - 4 - 

 3. Dividends. The Company covenants and agrees that it shall not pay any dividends out of any
assets on any of its capital stock at any time prior to the Maturity Date. 
  
 4. Rights on Liquidation, Dissolution or Winding Up, Etc. In the event of any liquidation, dissolution, or winding up of the Company, either voluntary or involuntary, the shares of Series C Preferred Stock
shall participate in any distribution of the assets of the Company legally available for distribution with the shares of Series C Preferred Stock, being treated for this purpose as if they had been converted to shares of Common Stock at the
Conversion Price then in effect. 
  
 5. Voting Rights.
Except as required by law, the holders of Series C Preferred Stock and the holders of Common Stock shall vote together and not as separate classes. Each holder of Series C Preferred Stock shall be entitled to the number of votes equal to the number
of shares of Common Stock into which the shares of Series C Preferred Stock held by such holder could be converted as of the record date. The holders of shares of the Series C Preferred Stock shall be entitled to vote on all matters on which the
Common Stock shall be entitled to vote. Fractional votes shall not, however, be permitted and any fractional voting rights resulting from the above formula (after aggregating all shares into which shares of Series C Preferred Stock held by each
holder could be converted), shall be disregarded. 
  
 6.
Conversion of Series C Preferred Stock. The holders of the Series C Preferred Stock shall have conversion rights as follows: 
  
 (a) Optional Conversion. At any time prior to the first day of the Reference Period, each holder of the Series C Preferred Stock shall have the
right, at any time, to convert the shares of Series C Preferred Stock held by such holder into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing (x) the Original Issue Price of such share of Series C
Preferred Stock by (y) the Conversion Price in effect at the time of such conversion (“Optional Conversion”); provided, that no Optional Conversion may be effected by a holder of Series C Preferred Stock if less than
25,000 shares of Common Stock would be issued to such holder in connection with any single conversion. No Optional Conversion may be affected by a holder of Series C Preferred Stock during the period commencing with the first day of the reference
Period though the Mandatory Conversion Date. In the event of any Optional Conversion, the date of such conversion shall be referred to as an “Optional Conversion Date.” 
  
 (b) Automatic Conversion. On the Mandatory Conversion Date, provided
that the Equity Conditions are satisfied (or waived by the applicable holder), each holder’s Pro-Rata Amount of the Mandatory Conversion Preferred Shares, if any, shall be automatically converted (such conversion, an “Automatic
Conversion”) into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing (x) the Original Issue Price of such shares of Series C Preferred Stock by (y) the Conversion Price in effect immediately
at the time of such conversion. In connection with the Automatic Conversion, each holder of Series C Preferred Stock shall tender its remaining shares of Series C Preferred Stock for conversion prior to the first day of the Reference Period, and in
the event that any such holder does not tender such shares of Series C Preferred Stock by such date, the holder shall be deemed to have tendered for conversion all of its remaining shares of Series C Preferred Stock as of the day prior to the
Reference Period. 
  
 (c) Maturity Redemption. On the
Maturity Date, the Company shall redeem any outstanding shares of Series C Preferred Stock in cash from each holder of any such shares of Series 

  

 - 5 - 

 
C Preferred Stock at a price per share of Series C Preferred Stock equal to the Original Issue Price. Notwithstanding the foregoing, if the Company has
insufficient legally available funds to fully redeem all such outstanding shares of Series C Preferred Stock, then the Company shall redeem from each holder its Pro Rata Amount and the holders shall have a legal claim and cause of action against the
Company for any unpaid amount. 
  
 (d) Mechanics of
Conversion. To convert shares of Series C Preferred Stock into shares of Common Stock on any Optional Conversion Date, each holder proposing to convert shares of Series C Preferred Stock to Common Stock transmit to the Company by (i) facsimile
(with acknowledgment of complete transmission), (ii) reputable nationwide overnight courier service, or (iii) registered or certified mail (return receipt requested), a copy of an executed notice of conversion in the form attached hereto as
Exhibit A (a “Conversion Notice”). On or before the third (3rd) Trading Day
(the “Share Delivery Date”) following the date of receipt of a Conversion Notice, the Company shall cause to be delivered to such holder a certificate representing a number of shares of Common Stock as calculated pursuant to
Section 6(a) above, as applicable, free and clear of encumbrances of any type or nature imposed by the Company, excluding any encumbrances imposed by applicable federal and state securities laws and encumbrances imposed to ensure compliance
therewith. Each holder and the Company shall take all other necessary or appropriate actions in connection with or to effect such closing. No fractional shares of Common Stock shall be issued upon conversion of the Series C Preferred Stock. In lieu
of any fractional shares to which the holder would otherwise be entitled, the Company shall pay cash equal to such fraction multiplied by the then fair market value of a share of Common Stock as determined in good faith by the Board. For such
purpose, all shares of Series C Preferred Stock held by each holder of Series C Preferred Stock shall be aggregated, and any resulting fractional share of Common Stock shall be paid in cash. Notwithstanding the foregoing, on the Mandatory Conversion
Date, each holder’s Mandatory Conversion Preferred Shares shall be converted automatically, without any further action by the holders of such shares and whether or not the certificates representing such shares are surrendered to the Company or
its transfer agent; provided further, however, that the Company shall not be obligated to issue certificates evidencing the shares of Common Stock issuable upon the Mandatory Conversion Date until either the certificates evidencing such
Mandatory Conversion Preferred Shares are delivered to the Company or its transfer agent as provided above, or the holder notifies the Company or its transfer agent that such certificates have been lost, stolen or destroyed and executes a customary
agreement reasonably satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with such certificates. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of any
Series C Preferred Stock hereunder shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Optional Conversion Date or the Mandatory Conversion Date, as applicable, notwithstanding that the
certificates representing such shares of Series C Preferred Stock shall not have been surrendered at the office of the Company or that the certificates evidencing such shares of Common Stock shall not then be actually delivered to such holder.

  
 (e) Cash Damages. If the Company shall fail for any
reason or for no reason to issue on or before the Share Delivery Date (provided, that, if the conversion of the Series C Preferred Stock is not in connection with a transaction that is subject to Rule 15c6-1 promulgated under the Exchange Act
of 1934, as amended, then the date that is five (5) Trading Days following the Share Delivery Date), a certificate free from any restriction or legend for the number of shares of Common Stock to which the holder is entitled upon the holder’s
conversion of the Series C Preferred Stock hereunder, the Company shall pay as damages in cash to such holder on each day 

  

 - 6 - 

 
after such Share Delivery Date that the issuance of such Common Stock is not timely effected an amount equal to 0.5% of the product of (A) the sum of the
number of shares of Common Stock not issued to the holder on a timely basis and to which the holder is entitled and (B) the closing stock price of the Common Stock as reported on the Trading Market on the Trading Day immediately preceding the Share
Delivery Date. In addition to the foregoing, if the Company fails to deliver or cause to be delivered to the holder a certificate for the number of shares of Common Stock to which the holder is entitled for such number of shares of Common Stock to
which the holder is entitled upon the holder’s conversion of the Series C Preferred Stock hereunder by the Trading Day after the Share Delivery Date (provided, that, if the conversion of the Series C Preferred Stock is not in connection
with a transaction that is subject to Rule 15c6-1 promulgated under the Exchange Act of 1934, as amended, then the date that is five (5) Trading Days following the Share Delivery Date), and if on or after such Trading Day the holder purchases (in an
open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the holder of the shares that the holder was entitled to receive from the Company upon such holder’s conversion of the Series C Preferred Stock
hereunder (a “Buy-In”), then the Company shall, within five Business Days after the holder’s request and in the holder’s discretion, either (i) pay cash to the holder in an amount equal to the holder’s total
purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased, at which point the Company’s obligation to deliver such certificate (and to issue such shares of Common Stock) shall terminate, or (ii)
promptly honor its obligation to deliver to the holder a certificate or certificates representing such shares of Common Stock (the “Buy-In Shares”) and pay cash to the holder in an amount equal to the product of (A) the
number of Buy-In Shares, times (B) the excess (if any) of the closing stock price of the Common Stock as reported on the Trading Market on the date of the Buy-In over the closing stock price of the Common Stock as reported on the Trading Market on
the date of delivery of the Buy-In Shares. 
  
 (f)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of Series C Preferred Stock in accordance with the terms hereof, the holder thereof shall not be required to physically surrender the certificate
representing the Series C Preferred Stock to the Company unless the full or remaining number of shares of Series C Preferred Stock represented by the certificate are being converted. The holder and the Company shall maintain records showing the
number of shares of Series C Preferred Stock so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the holder and the Company, so as not to require physical surrender of the certificate
representing the shares of Series C Preferred Stock upon each such conversion. In the event of any dispute or discrepancy, such records of the Company establishing the number of shares of Series C Preferred Stock to which the record holder is
entitled shall be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if shares of Series C Preferred Stock represented by a certificate are converted as aforesaid, the holder may not transfer the
certificate representing the shares of Series C Preferred Stock unless the holder first physically surrenders the certificate representing the shares of Series C Preferred Stock to the Company, whereupon the Company will forthwith issue and deliver
upon the order of the holder a new certificate of like tenor, registered as the holder may request, representing in the aggregate the remaining number of shares of Series C Preferred Stock represented by such certificate. The holder and any
assignee, by acceptance of a certificate, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of any shares of Series C Preferred Stock, the number of shares of Series C Preferred Stock represented by such
certificate may be less than the number of shares of Series C Preferred Stock stated on the face thereof. Each certificate for Series C Preferred Stock shall bear the following legend: 
  

 - 7 - 

 ANY TRANSFEREE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE COMPANY’S CERTIFICATE OF
DESIGNATIONS RELATING TO THE SERIES C PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 6(f) THEREOF. THE NUMBER OF SHARES OF SERIES C PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SHARES OF SERIES C
PREFERRED STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION 6(f) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE SERIES C PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE. 
  
 (g) Adjustments to Conversion Price for Diluting Issues. 
  
 (i) Special Definition. For purposes of this Section 6(g),
“Additional Shares of Common” means all shares of Common Stock issued (or, pursuant to Section 6(g)(iii), deemed to be issued) by the Company after the Original Issue Date, other than issuances or deemed issuances of
the following (“Excluded Securities”): 
  
 (1) shares of Common Stock issued or issuable upon conversion of shares of the Series C Preferred Stock or the warrants issued in connection therewith; 
  

(2) securities issued or issuable to officers, directors or employees of, or consultants to, the Company pursuant to stock option or stock purchase
plans or agreements on terms approved by the Board, or upon exercise of options or warrants granted to such parties pursuant to any such plans or agreements; 
  
 (3) securities issued upon the exercise, exchange, adjustment or conversion of Options or Convertible Securities outstanding as of the date of this
Certificate of Designation; provided that the terms of such Options or Convertible Securities are not amended, modified or changed on or after the Original Issue Date; 
  
 (4) securities issued or issuable as a dividend or distribution on the Series C Preferred Stock or pursuant to any event
for which adjustment is made pursuant to Section 6(h), Section 6(i) or Section 6(j) hereof; 
  
 (5) securities issued or issuable pursuant to the acquisition of another corporation by the Company by merger, purchase of substantially all of the
assets or other reorganization approved by the Board the primary purpose of which is other than raising equity capital; 
  
 (6) securities issued or issuable pursuant to bona fide equipment lease and bank financing arrangements approved by the Board; and 
  
 (7) securities issued or issuable in connection with transactions of a
strategic nature for which the primary purpose is other than raising equity capital and which is approved by the Board. 
  
 (ii) No Adjustment of Conversion Price. No adjustment in the Conversion Price of the Series C Preferred Stock shall be made in respect of an
issuance of Additional Shares of Common unless the consideration per share (as determined pursuant to Section 6(g)(v)) for an Additional Share of Common issued or deemed to be issued by the Company is less than the Conversion Price in effect
on the date of, and immediately prior to such issue. 
  

 - 8 - 

 (iii) Deemed Issue of Additional Shares of Common. In the event the Company at any time or
from time to time after the Original Issue Date shall issue any Options or Convertible Securities or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities,
then the maximum number of shares (as set forth in the instrument relating thereto without regard to any provisions contained therein for a subsequent adjustment of such number) of Common Stock issuable upon the exercise of such Options or, in the
case of Convertible Securities, the conversion or exchange of such Convertible Securities or, in the case of Options for Convertible Securities, the exercise of such Options and the conversion or exchange of the underlying securities, shall be
deemed to have been issued as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record date, provided that in any such case in which shares are deemed to be issued: 

 
 (1) no further adjustment in the Conversion Price of the Series C
Preferred Stock shall be made upon the subsequent issue of Convertible Securities or shares of Common Stock in connection with the exercise of such Options or conversion or exchange of such Convertible Securities; 
  
 (2) if such Options or Convertible Securities by their terms provide, with
the passage of time or otherwise, for any increase in the consideration payable to the Company, or decrease in the number of shares of Common Stock issuable, upon the exercise, conversion or exchange thereof, the Conversion Price of the Series C
Preferred Stock computed upon the original issue thereof (or upon the occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, shall, upon any such increase or decrease becoming effective, be recomputed to
reflect such increase or decrease insofar as it affects such Options or the rights of conversion or exchange under such Convertible Securities; 
  
 (3) no readjustment pursuant to clause (2) above shall have the effect of increasing the Conversion Price of the Series C Preferred Stock to an amount
which exceeds the lower of (i) the Conversion Price of the Series C Preferred Stock on the original adjustment date, or (ii) the Conversion Price of the Series C Preferred Stock that would have resulted from any issuance of Additional Shares of
Common between the original adjustment date and such readjustment date; and 
  
 (4) if such record date shall have been fixed and such Options or Convertible Securities are not issued on the date fixed therefor, the adjustment previously made in the Conversion Price which became effective on such
record date shall be canceled as of the close of business on such record date, and thereafter the Conversion Price shall be adjusted pursuant to this Section 6(g)(iii) as of the actual date of their issuance. 
  
 (iv) Adjustment of Series C Preferred Stock Conversion Price Upon
Issuance of Additional Shares of Common. In the event this Company shall issue Additional Shares of Common (including Additional Shares of Common deemed to be issued pursuant to Section 6(g)(iii)) without consideration or for a
consideration per share less than the applicable Conversion Price of the Series C Preferred Stock in effect on the date of and immediately prior to such issue, then, the applicable Conversion Price of the Series C Preferred Stock shall be reduced,
concurrently 

  

 - 9 - 

 
with such issue, to a price (calculated to the nearest cent) determined by multiplying such Conversion Price by a fraction, the numerator of which shall be
the number of shares of Common Stock outstanding immediately prior to such issue plus the number of shares which the aggregate consideration received by the Company for the total number of Additional Shares of Common so issued would purchase at such
Conversion Price, and the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the number of such Additional Shares of Common so issued. Notwithstanding the foregoing, the Conversion
Price shall not be reduced at such time if the amount of such reduction would be less than $0.01, but any such amount shall be carried forward, and a reduction will be made with respect to such amount at the time of, and together with, any
subsequent reduction which, together with such amount and any other amounts so carried forward, equal $0.01 or more in the aggregate. For the purposes of this Section 6(g)(iv), the number of shares of Common Stock outstanding immediately
prior to such issue shall be calculated on a fully diluted basis, as if all shares of Series C Preferred Stock, convertible securities, outstanding options, warrants or other rights for the purchase of shares of stock or convertible securities, had
been fully exercised immediately prior to such issuance (and the resulting securities fully converted into shares of Commons Stock, if so convertible) as of such date, but not including in such calculation any additional shares of Common Stock
issuable with respect to shares of Series C Preferred Stock, convertible securities, outstanding options, warrants or other rights for the purchase of shares of stock or convertible securities, solely as a result of the adjustment of the Conversion
Price (or other conversion ratios) resulting from the issuance of shares of Additional Shares of Common causing such adjustment. 
  
 (v) Determination of Consideration. For purposes of this Section 6(g), the consideration received by the Company for the issue (or deemed
issue) of any Additional Shares of Common shall be computed as follows: 
  
 (1) Such consideration shall: 
  
 a) insofar as it consists of cash, be computed at the aggregate amount of cash received by the Company excluding amounts paid or payable for accrued interest or dividends; 
  
 b) insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such
issue, as determined in good faith by the Board; and 
  
 c) in
the event Additional Shares of Common are issued together with other shares or securities or other assets of the Company for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (a)
and (b) above, as reasonably determined in good faith by the Board. 
  
 (2) The consideration per share received by the Company for Additional Shares of Common deemed to have been issued pursuant to Section 6(g)(iii) shall be determined by dividing 
  
 a) the total amount, if any, received or receivable by the Company as
consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a
subsequent adjustment of such 

  

 - 10 - 

 
consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of
Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities by 
  
 b) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for
a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities. 
  
 (h) Adjustments for Subdivisions or Combinations of Common Stock. In the event the outstanding shares of Common Stock shall be subdivided (by stock
split, by payment of a stock dividend or otherwise), into a greater number of shares of Common Stock, the Conversion Price of the Series C Preferred Stock in effect immediately prior to such subdivision shall, concurrently with the effectiveness of
such subdivision, be proportionately decreased. In the event the outstanding shares of Common Stock shall be combined (by reclassification or otherwise) into a lesser number of shares of Common Stock, the Conversion Prices in effect immediately
prior to such combination shall, concurrently with the effectiveness of such combination, be proportionately increased. 
  
 (i) Adjustments for Subdivisions or Combinations of Series C Preferred Stock. In the event the outstanding shares of Series C Preferred Stock shall
be subdivided (by stock split, by payment of a stock dividend or otherwise), into a greater number of shares of Series C Preferred Stock, the Original Issue Price of the affected series of the Series C Preferred Stock in effect immediately prior to
such subdivision shall, concurrently with the effectiveness of such subdivision, be proportionately decreased. In the event the outstanding shares of Series C Preferred Stock shall be combined (by reclassification or otherwise) into a lesser number
of shares of Series C Preferred Stock, the Original Issue Price of the Series C Preferred Stock in effect immediately prior to such combination shall, concurrently with the effectiveness of such combination, be proportionately increased. 

 
 (j) Adjustments for Reclassification, Exchange and Substitution.
If the Common Stock issuable upon conversion of the Series C Preferred Stock shall be changed into the same or a different number of shares of any other class or classes of stock, whether by capital reorganization, reclassification or otherwise
(other than a subdivision or combination of shares provided for above), then, in any such event, in lieu of the number of shares of Common Stock which the holders would otherwise have been entitled to receive, each holder of Series C Preferred Stock
shall have the right thereafter to convert such shares of Series C Preferred Stock into a number of shares of such other class or classes of stock which a holder of the number of shares of Common Stock deliverable upon conversion of the Series C
Preferred Stock immediately before that change would have been entitled to receive in such reorganization or reclassification, all subject to further adjustment as provided herein with respect to such other shares. 
  
 (k) Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment of the Conversion Price pursuant to this Section 6, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series C
Preferred Stock a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of any holder of Series C
Preferred Stock, furnish or cause to be furnished to such holder a like certificate setting forth (i) such adjustments 

  

 - 11 - 

 
and readjustments, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other property
which at the time would be received upon the conversion of the Series C Preferred Stock. 
  
 (l) Reservation of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock solely for the purpose of effecting the
conversion of the shares of the Series C Preferred Stock, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all then outstanding shares of the Series C Preferred Stock; and if at any time
the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Series C Preferred Stock, the Company will take such corporate action as may, in the opinion of its
counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose. 
  
 7. No Pre-emptive Rights. No holder of shares of the Series C Preferred Stock will possess any preemptive rights to subscribe for or acquire any
unissued shares of capital stock of the Company (whether now or hereafter authorized) or securities of the Company convertible into or carrying a right to subscribe to or acquire shares of capital stock of the Company. 
  
 8. Redemption. Except as provided in Section 6(d) hereof, the holders
of shares of Series C Preferred Stock shall have no redemption rights. 
  
 9. Fundamental Transactions. So long as any shares of Series C Preferred Stock are outstanding, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the
obligations of the Company under this Certificate of Designations in accordance with the provisions of this Section 9. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver to the holders of Series C Preferred Stock
confirmation that there shall be issued upon conversion of the Series C Preferred Stock at any time after the consummation of the Fundamental Transaction, in lieu of the shares of the Company’s Common Stock (or other securities, cash, assets or
other property) purchasable upon the conversion of the Series C Preferred Stock prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the holder of Series C Preferred Stock would have been entitled to receive upon the happening of such Fundamental Transaction had the Series C Preferred Stock been converted immediately prior to such Fundamental
Transaction. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of the Series C Preferred Stock. 
  
 10. Vote to Change the Terms of or Issue Preferred Shares. So long as
any shares of Series C Preferred Stock are outstanding, the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting, of the holders of a majority of the shares of Series C Preferred Stock outstanding,
shall be required for any change to this Certificate of Designations or the Company’s Certificate of Incorporation which would amend, alter, change or repeal any of the powers, designations, preferences and rights of the Series C Preferred
Stock. Without the prior express written consent of the holders of a majority of the shares of Series C Preferred Stock outstanding, the Company shall not hereafter authorize or make any amendment to the Company’s Certificate of Incorporation
or bylaws, or file any resolution of the Board with the Utah Department of Commerce or enter into any agreement containing any provisions, which would adversely affect or otherwise impair the rights of the holders of the shares of Series C Preferred
Stock as set forth herein. 
  

 - 12 - 

 11. Transfer of Preferred Shares. A holder of shares of Series C Preferred Stock may assign some
or all of the shares of Series C Preferred Stock and the accompanying rights hereunder held by such holder without the consent of the Company; provided, that such assignment is in compliance with applicable securities laws and the Company is
promptly informed of any such transfer. 
  
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 
  
  

 - 13 - 

 IN WITNESS WHEREOF, Raser Technologies, Inc. has caused this Certificate of Designation to be executed
this 4th day of April, 2005. 
  

			
	RASER TECHNOLOGIES, INC.
		
	 By:
	 	 /s/ Brent M. Cook

	 	 	 Brent M. Cook

	 	 	 Chief Executive Officer

  

 - 14 - 

 EXHIBIT A 
  
 RASER TECHNOLOGIES, INC. 
  
 CONVERSION NOTICE 
  
 Reference is made to the Certificate of Designation of Preferences, Rights and Limitations of Raser Technologies, Inc. (the “Certificate of
Designation”). In accordance with and pursuant to the Certificate of Designation, the undersigned hereby elects to convert the number of shares of Series C Preferred Stock, par value $0.01 per share (the “Preferred
Shares”), of Raser Technologies, Inc., a Utah corporation (the “Company”), indicated below into shares of Common Stock, par value $0.01 per share (the “Common Stock”), of the Company, as
of the date specified below. 
  
 Date of Conversion:
                                       
                                        
                          
  
 Number of Preferred Shares to be
converted:                                     
                            
  
 Stock certificate no(s). of Preferred Shares to be converted:
                                       
  
  
 Please deliver the Common Stock into which the Preferred Shares are
being converted to the following address: 
  
 _____________________________

  
 _____________________________
 
  

 - 15 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]