Document:

Class A Warrant

 Exhibit 10.10 
 EXECUTION COPY 
 CLASS A WARRANT 
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
(B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR THE SECURITIES MAY BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
 DAYSTAR TECHNOLOGIES, INC. 
 WARRANT TO PURCHASE COMMON
STOCK 
 Warrant No.: A-__ 
 Number of
Shares of Common Stock: 317,394 (subject to adjustment) 
 Date of Issuance: _____________, 2007 (“Issuance Date”) 
 DayStar Technologies, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, CASTLERIGG MASTER INVESTMENTS LTD., the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from
the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the
“Warrant”), at any time or times on or after [July ___, 2007], but not after 11:59 p.m., New York Time, on the Expiration Date (as defined below), Three Hundred Seventeen Thousand Three Hundred Ninety Four (317,394), subject to
adjustment as provided herein, duly authorized, validly issued, fully paid and nonassessable shares of Common Stock (as defined below) (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant
shall have the meanings set forth in Section 16. 

 1. EXERCISE OF WARRANT. 
 (a) Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(f)),
this Warrant may be exercised by the Holder on any day on or after [July ___, 2007], in whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the
Holder’s election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate
Exercise Price”) in cash or by wire transfer of immediately available funds or (B) by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). The Exercise Notice shall include
notification to the Company of any restriction upon issuances to the Holder pursuant to Section 1(f)(i) hereof of which the Holder is aware. The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder.
Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number
of Warrant Shares. On or before the first Business Day following the date on which the Company has received each of the Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless Exercise) (the “Exercise Delivery
Documents”), the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the Holder and the Company’s transfer agent (the “Transfer Agent”). On or before
the third Business Day following the date on which the Company has received all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall (X) provided that the Transfer Agent is participating in The
Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the
Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch by
overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise. Upon delivery of the Exercise Notice and Aggregate Exercise Price referred to in clause (ii)(A) above or notification to the Company of a Cashless Exercise referred to in Section 1(d), the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares. If this Warrant is submitted
in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as
soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise 

 
of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and
all taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant. 
 (b) Exercise
Price. For purposes of this Warrant, “Exercise Price” means $2.00, subject to adjustment as provided herein. 
 (c)
Company’s Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue to the Holder within three (3) Business Days of receipt of the Exercise Delivery Documents, a certificate for the
number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which
the Holder is entitled upon the Holder’s exercise of this Warrant, and if on or after such Business 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 shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then, in addition to all other remedies available to the Holder, the Company shall, within three
(3) 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 (the “Buy-In Price”), 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 and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock,
times (B) the Closing Bid Price on the date of exercise. 
 (d) Cashless Exercise. Notwithstanding anything contained herein to
the contrary, if a Registration Statement (as defined in the Registration Rights Agreement) covering the Warrant Shares that are the subject of the Exercise Notice (the “Unavailable Warrant Shares”) is not available for the resale
of such Unavailable Warrant Shares, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the
Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”): 
  

							
		 	Net Number =	 	 (A x B) - (A x C)
	 	
		 		 	B	 	

 For purposes of the foregoing formula: 

	 	A=	the total number of Warrant Shares with respect to which this Warrant is then being exercised. 

  

	 	B=	the Closing Sale Price of the shares of Common Stock (as reported by Bloomberg) on the date immediately preceding the date of the Exercise Notice. 

  

	 	C=	the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise. 

 (e) Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 13. 
 (f) Limitations on Exercises; Beneficial Ownership; Principal Market Regulation. 
 (i) The Company
shall not effect the exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s affiliates) would beneficially
own (directly or indirectly through Warrant Shares or otherwise) in the aggregate, including all shares of stock of the Company issued to the Holder in connection with the Transaction Documents, in excess of 4.99% (the “Maximum
Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned (directly or indirectly
through Warrant Shares or otherwise) by such Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall
exclude shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise
analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this subsection, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent 

 
Form 10-K, Form 10-KSB, Form 10-Q, Form 10-QSB, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as
the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written
or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant and any other warrants of the Company, by the Holder and its affiliates since the date as of which such number of outstanding shares
of Common Stock was reported. By written notice to the Company, the Holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (i) any such increase will not be
effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any
such increase or decrease will apply only to the Holder. 
 (ii) Principal Market Regulation. The Company shall not be obligated to
issue any shares of Common Stock upon exercise of this Warrant if the issuance of such shares of Common Stock breaches the Company’s obligations under the rules or regulations of the Principal Market (the number if shares which may be issued
without violating such rules and regulations, the “Exchange Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the waiver of the requirement for shareholder approval or obtains the
approval of its stockholders as required by the applicable rules of the Principal Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval is
not required, which opinion shall be reasonably satisfactory to the Holder. Unless and until such waiver, approval or written opinion is obtained, the Holder shall not be issued, upon exercise of this Warrant or any other warrants of the Company
held by the Holder or its affiliates, shares of Common Stock in an amount greater than the Exchange Cap. In the event that the Holder shall sell or otherwise transfer any of this Warrant, the transferee shall be allocated a pro rata portion of the
Exchange Cap, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap allocated to such transferee (the “Exchange Cap Allocation”). In the event that any holder of
this Warrant shall exercise all of such holder’s Warrants into a number of shares of Common Stock which, in the aggregate, is less than such holder’s Exchange Cap Allocation, then the difference between such 

 
holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder shall be allocated to the respective Exchange
Cap Allocations of the remaining holders of this Warrant on a pro rata basis in proportion to the shares of Common Stock underlying this Warrant then held by each such holder. 
 (g) Insufficient Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a sufficient number of
authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant at least the number of shares of Common Stock equal to (the “Required Reserve Amount”) the number of
shares of Common Stock as shall from time to time be necessary to effect the exercise of all of the Warrants then outstanding, without regard to any limitations on exercise (an “Authorized Share Failure”), then the Company shall
immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrants then outstanding. Without limiting the
generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall
hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts
to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. 
 2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from time to
time as follows: 
 (a) Adjustment upon Issuance of shares of Common Stock. If and whenever on or after the Subscription Date (subject
to Section 2(a)(vi)), the Company issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the
account of the Company, but excluding shares of Common Stock deemed to have been issued by the Company in connection with any Excluded Securities (as defined in the SPA Securities) for a consideration per share (the “New Issuance
Price”) less than a price (the “Applicable Price”) equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing a “Dilutive Issuance”), then
immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the New Issuance Price. In no event shall a Dilutive Issuance cause an adjustment to the number of Warrant Shares. For purposes of
determining the adjusted Exercise Price under this Section 2(a), the following shall be applicable: 
 (i) Issuance of Options.
If the Company in any manner grants any Options, other than Excluded Securities, and the lowest price per share for 

 
which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities
issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for
such price per share. For purposes of this Section 2(a)(i), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of such Option or upon conversion, exercise or exchange of any Convertible
Securities” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and
upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock or of such Convertible
Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities. 
 (ii) Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities, other than Excluded Securities,
and the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been
issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 2(a)(ii), the “lowest price per share for which one share of Common Stock is
issuable upon the conversion, exercise or exchange” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the
Convertible Security and upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of
such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this Section 2(a), no
further adjustment of the Exercise Price shall be made by reason of such issue or sale. 
 (iii) Change in Option Price or Rate of
Conversion. If the purchase price provided for in any Options, other than Excluded Securities, the additional consideration, if any, payable upon the issue, conversion, 

 
exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for
shares of Common Stock increases or decreases at any time, the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible
Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 2(a)(iii),
if the terms of any Option or Convertible Security that was outstanding as of the date of issuance of this Warrant, other than Excluded Securities, are increased or decreased in the manner described in the immediately preceding sentence, then such
Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this
Section 2(a)(iii) shall be made if such adjustment would result in an increase of the Exercise Price then in effect. 
 (iv)
Calculation of Consideration Received. In case any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to
such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of $0.01. If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the
consideration received therefor will be deemed to be the net amount received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such
consideration received by the Company will be the fair value of such consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company will be the Closing Sale Price of such
security on the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of
consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities, as the case may be. The fair
value of any consideration other than cash or securities will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the
“Valuation Event”), the fair value of such consideration 

 
will be determined within five (5) Business Days after the tenth day following the Valuation Event by an independent, reputable appraiser jointly
selected by the Company and the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company. 
 (v) Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a
dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the
date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the
case may be. 
 (vi) Termination of Right to Adjustment for Dilutive Issuances. No adjustments to the Exercise Price shall be made
pursuant to this Section 2(a) at any time after the Closing Sale Price of the Company’s Common Stock exceeds two (2) times the original Exercise Price hereof (subject to adjustment for stock splits, combinations and like events) for
any ninety (90) consecutive trading days. 
 (b) Adjustment upon Subdivision or Combination of shares of Common Stock. If the
Company at any time on or after the Subscription Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date combines (by combination, reverse stock
split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares
will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective at the close of business on the date the subdivision or combination becomes effective. 
 (c) Adjustment for Issuance of Inducement Warrants. If the Company issues warrants (the “Inducement Warrants”) to holders of the
Company’s publicly traded, registered Class Z Warrants (DSTIZ) pursuant to a Soft Call of Warrants (as defined in the Securities Purchase Agreement) and the Inducement Warrants have an exercise price per share of Common Stock of less than $22
per share, then the Exercise Price then in effect shall be reduced by an amount equal to the difference between $22 and the per share exercise price of the 

 
Inducement Warrants; provided, however, that if such difference is less than $1.00, then no adjustment shall be made to the Exercise Price. The
dollar amounts set forth in this paragraph shall be adjusted upon any stock splits, combinations and like events. 
 (d) Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or
other rights with equity features), then the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided that no such adjustment
pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2. 
 3. RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of
return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar
transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case: 
 (a) any
Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on
such record date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the numerator shall be the Closing Bid Price of the shares of Common Stock on the trading day immediately preceding such record date minus the
value of the Distribution (as determined reasonably in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the denominator shall be the Closing Bid Price of the shares of Common Stock on the
trading day immediately preceding such record date; and 
 (b) the number of Warrant Shares shall be increased to a number of shares equal
to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution multiplied by the reciprocal of
the fraction set forth in the immediately preceding paragraph (a); provided, that in the event that the Distribution is of shares of Common Stock (or common stock) (“Other Shares of Common Stock”) of a company whose common
shares are traded on a national securities exchange or a national automated quotation system, then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of Warrant Shares, the terms
of which shall be identical to those of this Warrant, except that such warrant shall be exercisable into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had the Holder
exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms of
the immediately preceding paragraph (a) and the number of Warrant Shares calculated in accordance with the first part of this paragraph (b). 

 4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS. 
 (a) Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), other than Excluded Securities, then
the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 
 (b)
Fundamental Transactions. If the Company enters into or is party to a Fundamental Transaction, then the Holder shall have the right to either (A) purchase and receive upon the basis and upon the terms and conditions herein specified and
in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock, securities or assets (including cash) as would have been issuable or payable with respect to or in exchange for a number of Warrant
Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of the Warrant, had such Fundamental Transaction not taken place or (B) require the repurchase of this Warrant for a purchase price, payable in cash
within five (5) Business Days after such request, equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of such request. The terms of any agreement pursuant to which a Fundamental Transaction is
effected shall include terms requiring any such successor or surviving entity and Holder to comply with the provisions of this Section 4(b). 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 exercise of this Warrant. 
 5. NONCIRCUMVENTION. The
Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be
required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price
then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant and
(iii) shall, so long as this Warrant is 

 
outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of
effecting the exercise of the Warrants, the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrants then outstanding (without regard to any limitations on exercise). 
 6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as
a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such
Person’s capacity as the Holder of this Warrant, any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due
exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether
such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the shareholders of the Company
generally, contemporaneously with the giving thereof to the shareholders. 
 7. REISSUANCE OF WARRANTS. 
 (a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will
forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and,
if less then the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being
transferred. In accordance with Section 15 hereof, without the consent of the Company, any transfer of this Warrant to a Competitor of the Company shall be void ab inito and of no effect. 
 (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this
Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant. 

 (c) Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof
by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such
new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given. 

(d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant
to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of
Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date and (iv) shall have the same rights and conditions as this Warrant.

 8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be
given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such
action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Exercise Price or the number of Warrant Shares, setting forth in
reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares
of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 9. AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. 
 10. SEVERABILITY. If any provision of this Warrant or the application thereof becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of the terms of this
Warrant will continue in full force and effect. 

 11. GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. 
 12. HEADINGS. The headings of this Warrant are for convenience of reference only and shall not form part of, or affect the interpretation of, this Warrant. 
 13. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within three (3) Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder
and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within five (5) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then
the Company shall, within two Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder or (b) the disputed
arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the
Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed determinations or calculations. The costs and expenses of the investment bank or the accountant, as the case may be, shall be
borne equally by the Company and the Holder. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. 
 14. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition to all
other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may
be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the
necessity of showing economic loss and without any bond or other security being required. 
 15. TRANSFER. Subject to compliance with
applicable securities laws, this Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, except as may otherwise be required by Section 2(f) of the Securities Purchase Agreement, provided,
however, that, without the consent of the Company, no transfer of the Warrant may be made to a Competitor of the Company. 

 16. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the
following meanings: 
 (a) “Approved Stock Plan” means any employee benefit plan which has been approved by the Board of
Directors of the Company, pursuant to which the Company’s securities may be issued to any employee, officer or director for services provided to the Company. 
 (b) “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the day
immediately following the public announcement of the applicable Fundamental Transaction and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of such
date of request and (ii) an expected volatility equal to the greater of 60-80% and the 100 day volatility obtained from the HVT function on Bloomberg. 
 (c) “Bloomberg” means Bloomberg Financial Markets. 
 (d) “Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 
 (e) “Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on
the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or last
trade price, respectively, of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last
trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price,
respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the
average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually
determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 13. All such determinations to be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 

 (f) “Common Stock” means (i) the Company’s shares of Common Stock, $0.01 par
value per share, and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. 
 (g) “Competitor” means any person engaged in the research, development, manufacturing, sales, distribution, re-selling, packaging,
either directly or indirectly of photovoltaic energy technologies. 
 (h) “Convertible Securities” means any stock or
securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock. 
 (i)
“Excluded Securities” means any Common Stock issued or issuable: (i) in connection with any Approved Stock Plan; (ii) upon conversion of the Notes or the exercise of the Warrants; (iii) pursuant to a bona fide firm
commitment underwritten public offering with a nationally recognized NASD registered underwriter which generates gross proceeds to the Company in excess of $25,000,000 (other than an “at-the-market offering” as defined in
Rule 415(a)(4) under the 1933 Act and “equity lines”); (iv) in connection with the payment of any shares on the Notes or upon exercise of the Warrants; (v) in connection with any acquisition by the Company, whether through
an acquisition of stock or a merger of any business, assets or technologies the primary purpose of which is not to raise equity capital in an amount not to exceed, in the aggregate, 20% of the outstanding shares of Common Stock in any calendar year;
(vi) upon conversion of any Options or Convertible Securities which are outstanding on the day immediately preceding the date hereof, provided that the terms of such Options or Convertible Securities are not amended, modified or changed on or
after the date hereof; (vii) upon exercise of warrants issued to consultants prior to the date hereof, upon exercise of additional warrants issued or issuable to consultants, in an amount not to exceed, in the aggregate, 50,000 shares of Common
Stock, and upon exercise of warrants issued to Ardour Capital in connection with the transactions contemplated by the Transaction Documents; (viii) upon issuance or exercise of Options or Convertible Securities in connection with a Soft Call of
Warrants (as defined in the Securities Purchase Agreement) by the Company; (ix) in connection with a Strategic Financing (as defined below); and (ix) shares issued to Tejas Securities Group, Inc. as fees (calculated based upon a price per
share of $2.00) in connection with the financing entered into as of the date hereof. 
 (j) “Expiration Date” means the
date sixty months after the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday; provided,
however, that if a Registration Statement (as defined in the Registration Rights Agreement) filed under the Registration Rights Agreement has not been declared effective in the 12 month period following the date hereof, the “Expiration
Date” shall be extended by an additional 12 months. 

 (k) “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) become subject to a purchase, tender or exchange offer by another Person that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not
including any 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),
(v) reorganize, recapitalize or reclassify its Common Stock or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) is or shall
become the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of 50% or more of the aggregate voting stock of the Company. 
 (l) “Notes” means the Senior Convertible Note in original principal amount of $15,000,000 issued by the Company and payable to the
order of Casterligg Master Investments Ltd. dated May 25, 2006. 
 (m) “Options” means any rights, warrants or options
to subscribe for or purchase shares of Common Stock or Convertible Securities. 
 (n) “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 
 (o) “Principal Market” means the NASDAQ Capital Market. 
 (p) “Registration Rights Agreement” means that certain registration rights agreement by and between the Company and the Buyer dated January 18, 2007. 
 (q) “ Securities Purchase Agreement” means the Securities Purchase Agreement by and between the Company and the Investor dated as of
May 25, 2006, as amended by the First Amendment to Securities Purchase Agreement dated as of the date hereof. 
 (r) “Strategic
Financing” means an investment in the Company by an unaffiliated operating company engaged in a business similar or complementary to that of the Company where the principal purpose is not to raise additional equity capital for the Company.

 (s) “Transaction Documents” has the meaning specified in the Securities Purchase
Agreement. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly
executed as of the Issuance Date set out above. 
  

			
	DAYSTAR TECHNOLOGIES, INC.
		
	By:	 	 /s/ Stephan DeLuca

	Name:	 	Stephan DeLuca
	Title:	 	Chief Executive Officer

 EXHIBIT A 
 EXERCISE NOTICE 
 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS 
 WARRANT TO PURCHASE COMMON STOCK 
 DAYSTAR TECHNOLOGIES, INC. 
 The undersigned holder hereby exercises the right to purchase
             of the shares of Common Stock (“Warrant Shares”) of DayStar Technologies, Inc., a Delaware corporation (the “Company”), evidenced by
the attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant. 
 1. Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as: 
                          a
“Cash Exercise” with respect to                          Warrant Shares; and/or 
                          a
“Cashless Exercise” with respect to                          Warrant Shares. 
 2. Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be
issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $              to the Company in accordance with the terms of the Warrant. 
 3. Delivery of Warrant Shares. The Company shall deliver to the holder
                     Warrant Shares in accordance with the terms of the Warrant. 
 4. Restrictions. Any restriction upon issuances to the Holder pursuant to Section 1(f)(i) of the Warrant of which the Holder is aware:

  

			
	  

		
	Date:	 	                        ,
        
	
	  

	Name of Registered Holder
		
	By:	 	  

	Name:	 	
	Title:	 	

 ACKNOWLEDGMENT 
 The Company hereby acknowledges this Exercise Notice and hereby directs U.S. Stock Transfer Corporation to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions
dated January ___, 2007 from the Company and acknowledged and agreed to by U.S. Stock Transfer Corporation. 
  

			
	DAYSTAR TECHNOLOGIES, INC.
		
	By:	 	  

	Name:	 	
	Title:Torchmark Corporation Supplemental Executive Retirement Plan

 Exhibit 10.1 
 TORCHMARK CORPORATION 
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 ARTICLE 1 
 INTRODUCTION

 1.1 Adoption of Plan. The Torchmark Corporation Supplemental Executive Retirement Plan (the “Plan”) is hereby adopted
effective as of January 1, 2007 (the “Effective Date”), by action of the Board of Directors of Torchmark Corporation. The Plan has been adopted to provide retirement and pre-retirement death benefits for eligible employees and their
beneficiaries. 
 ARTICLE 2 
 DEFINITIONS 
 Unless otherwise required by the context, the following terms and phrases as used in the Plan shall have the
meanings set forth in this Article 2. 
 2.1 Actuarial Equivalent or Actuarially Equivalent shall have the same meaning as in the
Pension Plan with respect to which the obligation to pay Retirement Income under this plan is determined, provided, however, that for purposes of determining the amount of benefit payable under this Plan to a Participant who retires prior to age 65,
the early retirement reduction factors specified in Section 4.2(b) of this Plan shall apply. 
 2.2 Administrative Committee
shall mean the committee appointed by the Board pursuant to and having the responsibilities specified in Section 8.1 of the Plan. 
 2.3
Affiliate shall mean a corporation of which the Company owns directly or indirectly 50% or more of the total combined voting power of all classes of stock entitled to vote in such corporation. 
 2.4 Annual Compensation Limit shall mean the limitation imposed by Section 401(a)(17) of the Code on a Participant’s annual compensation
which may be taken into account for purposes of computing the Participant’s benefit under the Pension Plan. 

 2.5 Beneficiary shall mean the person or persons designated to receive any death benefits payable
under this Plan. A Participant who has elected to receive a 10 or 20 Year Certain and Life Income Annuity shall have the right to change his Beneficiary at any time, whether before or after benefit commencement. A Participant who has elected a Joint
and Survivor Annuity shall not have the right to change his Beneficiary except as provided in Section 4.5 hereof. In no event may the Beneficiary for a Joint and Survivor Annuity be changed after benefit commencement. 
 2.6 Board shall mean the Board of Directors of Torchmark Corporation. 
 2.7 Code shall mean the Internal Revenue Code of 1986, as now in effect or as amended from time to time. A reference to a specific provision of
the Code shall include such provision and any applicable regulation pertaining thereto. 
 2.8 Deferred Retirement Date shall mean the
Participant’s date of retirement if retirement occurs after the Normal Retirement Date. 
 2.9 Company shall mean Torchmark
Corporation or any successor thereto by consolidation, merger, purchase, or otherwise. 
 2.10 Effective Date shall mean
January 1, 2007. 
 2.11 Employee shall mean any individual who, under the usual common law rules applicable in determining the
employer-employee relationship, has the status of an employee of the Employer. 
 2.12 Employer shall mean the Company, any
predecessor of the Company and any Affiliate or former Affiliate of the Company which has been designated by the Board to participate in the Plan as long as such designation has become effective and continues to be in effect. The designation of an
Affiliate currently in existence shall become effective only upon the acceptance of such designation and the adoption of this Plan by duly authorized action of such Affiliate. If the Affiliate by duly authorized action revokes its designation as an
Employer, this Plan will be deemed terminated as to such Affiliate in accordance with Article 8 hereof unless such Affiliate agrees to continue the Plan or a plan providing comparable benefits for its Employees who are Participants in this Plan.

  

 2 

 2.13 ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended from time to
time. Reference to a specific provision of ERISA shall include such provision and any applicable regulation pertaining thereto. 
 2.14
Final Average Compensation shall mean the Participant’s Final Average Compensation as defined in the Pension Plan. 
 2.15
Joint and Survivor Annuity shall mean an Actuarially Equivalent annuity payable monthly during the lifetime of the Participant with either 50%, 66 2/3 % or 100% of such amount continuing after the Participant’s death for the
lifetime of the Participant’s Beneficiary. A Participant may elect to add a period certain of either 10 or 20 years in which event no reduction in payments will be made for the longer of the 10 or 20 year period or the period during which both
the Participant and the Beneficiary remain alive. 
 2.16 Normal Retirement Date shall mean the last day of the payroll period
following or coincident with a Participant’s attainment of age 65. 
 2.17 Participant shall mean an Employee who is or becomes
eligible to participate in the Plan pursuant to Article 3 of the Plan and any person receiving Retirement Income under this Plan. 
 2.18
Pension Plan shall mean The Torchmark Corporation Pension Plan, as restated effective January 1, 1997, and as amended from time to time in the future. 
 2.19 Plan shall mean the Torchmark Corporation Supplemental Executive Retirement Plan as set forth in its entirety in this document, and as this document may be amended from time to time in the future.

 2.20 Plan Year shall mean the period beginning on January 1 and ending on December 31 of the same calendar year, both
dates inclusive. 
 2.21 Retirement Income shall mean any amount payable to or in behalf of a Participant, as a result of his
retirement, in accordance with the provisions of this Plan. 
 2.22 Section 415 Limit shall mean the limitation on benefits
imposed by Section 415 of the Code. 
  

 3 

 2.23 Single Life Annuity shall mean an annuity payable monthly during the lifetime of the
Participant, or in the case of the pre-retirement death benefit, during the lifetime of the Beneficiary, without provision of benefits for a period certain, and ending with the last payment due preceding his death. 
 2.24 Spouse shall mean the person who is lawfully married to the Participant on the date Retirement Income is to commence or on the date of the
Participant’s death, if earlier. 
 2.25 10 or 20 Year Certain and Life Income Annuity shall mean an Actuarially Equivalent
annuity payable monthly for the Participant’s lifetime, with the provision that if the Participant’s death occurs before the receipt of 120 or 240 monthly payments (as elected by the Participant), the remainder of such payments shall be
paid to the Participant’s Beneficiary. 
 2.26 Trustee shall mean the person or entity appointed as the trustee of the Trust
described in Article 10 hereof. 
 ARTICLE 3 
 PARTICIPATION 
 3.1 Eligibility Requirements. An Employee of an Employer who is participating
in the Pension Plan shall become a Participant in this Plan when such Employee is designated by the Board (or a committee of the Board) as being eligible to participate in this Plan. 
 ARTICLE 4 
 BENEFITS 
 4.1 Commencement of Retirement Income. A Participant’s Retirement Income shall commence as of the last day of the payroll period following
the date which is six (6) months after the date of the Participant’s separation from service. The initial benefit payment to the Participant will be an amount equal to six (6) times his monthly benefit as determined pursuant to
Section 4.2 below. 
 4.2 Amount of Retirement Benefit. The monthly amount of a Participant’s Retirement Income under this
Plan in the form of a Single Life Annuity will be determined in the following manner: 
  

 4 

 (a) Determine the annual benefit which would be payable to the Participant as a Single Life Annuity under
Article III (but not including Sections 3.1.5 and 3.4 thereof) of the Pension Plan at the Participant’s Normal Retirement Date (or Deferred Retirement Date if the Participant is retiring after his Normal Retirement Date) without applying the
Annual Compensation Limit and the Section 415 Limit, provided, however, that a Participant’s Final Average Compensation, for purposes of this calculation, will be limited to $1,000,000. The calculation made pursuant to this subsection
(a) shall be made pursuant to said Article III (but not including Sections 3.1.5 and 3.4 thereof) for each Participant notwithstanding that the Participant may have his qualified retirement benefit determined under a different formula within
the Pension Plan or a different qualified retirement plan. For purposes of this calculation, each Participant’s Compensation shall be the Participant’s Compensation as defined in Article I of the Pension Plan. 
 (b) If the Participant is under age 65 on his or her date of retirement, multiply this amount by the early retirement reduction factor shown below:

  

			
	 Age
	 	 Factor

	 55
	 	15%
	 56
	 	30%
	 57
	 	45%
	 58
	 	60%
	 59
	 	75%
	 60
	 	90%
	 61
	 	92%
	 62
	 	94%
	 63
	 	96%
	 64
	 	98%
	 65
	 	100%

 For purposes hereof, a Participant’s “age” will be determined by the
Participant’s age on his birthday immediately preceding or coincident with his date of retirement. 
 (c) Subtract from this amount the
annual benefit payable to the Participant as a Single Life Annuity under the Pension Plan at the Participant’s retirement date after applying the Annual Compensation Limit and the Section 415 Limit and after applying the applicable early
retirement reduction factors contained in the Pension Plan. In the case of a Participant whose qualified retirement benefit is not calculated under the Pension Plan, or a Participant whose qualified retirement benefit is calculated only in part
under the 

  

 5 

 
Pension Plan (for example, a Participant who, for a part of his career, was covered under a qualified plan other than the Pension Plan), the amount
determined under this subsection (c) shall be calculated as if the Participant were a participant in the Pension Plan for his entire career with his benefits being determined under the benefit formula contained in the Pension Plan which applied
to the Participant for that part of his career in which he was a participant in the Pension Plan. 
 (d) Divide the result by twelve (12).

 (e) The resulting amount, if any, is the monthly benefit payable under this Plan as a Single Life Annuity at the Participant’s
benefit commencement date, as described in Section 4.1 above. 
 (f) A Participant who retires prior to age 55 or who has less than 10
full years of Vesting Service (as defined in the Pension Plan) will not be eligible for a benefit under this Plan. 
 (g) In the case of a
Participant who, at retirement or other termination of employment, is entitled to receive benefits under the Torchmark Corporation Supplementary Retirement Plan, as established effective January 1, 1983, and as restated effective
January 1, 1992 (the “Prior Plan”), which are greater than the benefits payable to the Participant under this Plan, such Participant shall receive such greater benefits instead of the benefits provided under this Plan. Otherwise, the
benefits provided under this Plan are in lieu of the benefits payable under the Prior Plan, and no Participant shall be eligible to receive benefits from both the Prior Plan and this Plan. 
 4.3 Normal Form of Payment of Retirement Income. The normal form of payment of Retirement Income under this Plan shall be a Single Life Annuity
unless the Participant elects an optional form of payment as provided in Section 4.4 below. 
 4.4 Election of Optional Form of
Payment of Retirement Income. Instead of the normal form of payment of Retirement Income described in Section 4.3 above, the Participant may elect to receive his benefits in the form of a Joint and Survivor Annuity or a 10 or 20 Year
Certain and Life Income Annuity. Such election must be made no later than the thirtieth (30th) day after the date on which the 

  

 6 

 
Participant is designated as being eligible to participate in this Plan. The Joint and Survivor Annuity or the 10 or 20 Year Certain and Life Income Annuity
shall be the Actuarial Equivalent of the Single Life Annuity. 
 4.5 Modifications to Election. A Participant’s election of an
optional form of benefit, or failure to elect an optional form upon initial eligibility shall not be subject to later change or modification except in accordance with the following: 
 (a) If the Participant elected a Joint and Survivor Annuity and subsequent to such election, but prior to benefit commencement, the Participant’s
Beneficiary shall die or the Participant and the Beneficiary shall be divorced, then, at any time prior to benefit commencment, the Participant shall have the right to designate a new Beneficiary or to change his optional form to a Single Life
Annuity or a 10 or 20 Year Certain and Life Income Annuity. Absent an affirmative change by the Participant, the Participant’s benefit shall revert to a Single Life Annuity. 
 (b) If the Participant elected a Single Life Annuity, and subsequent to such election, but prior to benefit commencement, the Participant shall marry or
remarry, then, at any time prior to benefit commencement, the Participant shall have the right to change his election to a Joint and Survivor Annuity or a 10 or 20 Year Certain and Life Income Annuity, but only if the Beneficiary of such optional
form of benefit is the Participant’s new spouse. 
 ARTICLE 5 
 DEATH BENEFIT 
 5.1 Eligibility for Pre-Retirement Death Benefit. A
pre-retirement death benefit shall be payable under the Plan in the event of a death of a Participant after his attainment of age 55, but prior to the commencement of his Retirement Income under this Plan, if, on the date of death, the Participant
was either actively employed by the Employer or Disabled. No death benefit shall be payable if the Participant dies prior to his attainment of age 55. 
 5.2 Amount of Pre-Retirement Death Benefit. The pre-retirement death benefit will be the Actuarial Equivalent of the Retirement Benefit that the Participant would have received in the form of a Single Life
Annuity had the Participant retired on the day immediately preceding his date of death. 
  

 7 

 5.3 Form of Pre-Retirement Death Benefit. The pre-retirement death benefit shall be payable to the
Beneficiary of the deceased Participant in the form of an Actuarially Equivalent Single Life Annuity, or if there is no designated Beneficiary, to the Participant’s estate in a single lump sum. 
 ARTICLE 6 
 DISABILITY

 6.1 Disabled Participant. If a Participant becomes Disabled while actively employed on or after his attainment of age 55, but
prior to benefit commencement, such Participant shall be entitled to receive benefits under the Plan following his attainment of the Normal Retirement Date, provided that he is not actively employed by the Employer on such date. Such
Participant’s benefit will be calculated and paid in the manner described in Article 4 hereof, provided, however, that if such Participant shall have recovered from his Disability prior to attaining his Normal Retirement Date and shall not have
returned to active employment, the early retirement reduction factor which is described in Section 4.2(b) hereof shall be applied based on the age of the Participant when he recovered from the Disability. 
 6.2 Definition of Disability or Disabled. A Participant shall be considered disabled if the Participant (a) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, or (b) is, by reason
of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the Participant’s Employer. 
 ARTICLE 7 
 FIDUCIARIES 
 7.1 Named
Fiduciaries. The Named Fiduciaries, who shall have authority to control and manage operation and administration of the Plan, are as follows: 
 (a) the Company, which shall have the sole right to appoint and remove from office the members of the Administrative Committee, and to amend or terminate the Plan; and 

  

 8 

 (b) the Administrative Committee, which shall have the authority and duties specified in Article VII
hereof. 
 7.2 Employment of Advisers. A “named fiduciary” with respect to the Plan (as defined in ERISA § 402(a)(2))
and any “fiduciary” (as defined in ERISA § 3(21)) appointed by such a “named fiduciary”, may employ one or more persons to render advice with regard to any responsibility of such “named fiduciary” or
“fiduciary” under the Plan. 
 7.3 Multiple Fiduciary Capacities. Any “named fiduciary” with respect to the Plan
(as defined in ERISA § 402(a)(2)) and any other “fiduciary” (as defined in ERISA § 3(21)) with respect to the Plan may serve in more than one fiduciary capacity. 
 7.4 Reliance. Any fiduciary with respect to the Plan may rely upon any direction, information or action of any other fiduciary, acting within the
scope of its responsibilities under the Plan, as being proper under the Plan. 
 7.5 Scope of Authority and Responsibility. Each
fiduciary shall have only the authority and duties as are specifically given to it under this Plan, shall be responsible for the proper exercise of its own authorities and duties, and shall not be responsible for any act or failure to act of any
other fiduciary. 
 ARTICLE 8 
 ADMINISTRATIVE COMMITTEE 
 8.1 Appointment and Removal of Administrative Committee. The administration of the Plan
shall be vested in an Administrative Committee of at least three (3) persons who shall be appointed by the Board, and may include persons who are not Participants in the Plan. A person appointed a member of the Committee shall signify his
acceptance in writing. The Board may remove or replace any member of the Committee at any time in its sole discretion; and any Committee member may resign by delivering his written resignation to the Board, which resignation shall become effective
upon its delivery or at any later date specified therein. If at any time there shall be a vacancy in the membership of the Committee, the remaining member or members of the Committee shall continue to act until such vacancy is filled by action of
the Board. 
  

 9 

 8.2 Officers of Administrative Committee. The Committee shall appoint from among its members a
chairman, and shall appoint as secretary a person who may be, but need not be, a member of the Committee or a Participant in the Plan. 
 8.3
Action by Administrative Committee. The Committee shall hold meetings upon such notice, at such place or places, and at such times as its members may from time to time determine. A majority of its members at the time in office shall
constitute a quorum for the transaction of business. All actions taken by the Committee at any meeting shall be by vote of the majority of its members present at such meeting, except that the Committee also may act without a meeting by a consent
signed by a majority of its members. Any member of the Committee who is a Participant in the Plan shall not vote on any question relating exclusively to himself. 
 8.4 Rules and Regulations. Subject to the terms of the Plan, the Committee may from time to time adopt such rules and regulations as it shall deem appropriate for the administration of the Plan and for the
conduct and transaction of its business and affairs. 
 8.5 Powers. The Committee shall have such powers as may be necessary to
discharge its duties under the Plan, including the power: 
 (a) to interpret and construe the Plan in its discretion, to determine all
questions with regard to employment, eligibility, credited service, compensation, Retirement Income, and such factual matters as date of birth and marital status, and similarly related matters for the purpose of the plan. The Committee’s
determination of all questions arising under the Plan shall be conclusive upon all Participants, the Board, the Company, Employers, and other interested parties; 
 (b) to prescribe procedures to be followed by Participants and beneficiaries filing applications for benefits; 
 (c) to prepare and distribute to Participants information explaining the Plan; and 
 (d) to appoint or employ individuals to assist
in the administration of the Plan and any other agents it deems advisable, including legal, accounting and actuarial counsel. 
  

 10 

 8.6 Information from Participants. Each Participant shall be required to furnish to the Committee,
in the form prescribed by it, such personal data, affidavits, authorizations to obtain information, and other information as the Committee may deem appropriate for the proper administration of the Plan. 
 8.7 Authority to Act. The Committee may authorize one or more of its members, officers, or agents to sign on its behalf any of its instructions,
directions, notifications, or communications to the Employers, and the Employers may conclusively rely thereon and on the information contained therein. 
 8.8 Liability for Acts. The members of the Committee shall be entitled to rely upon all valuations, certificates and reports furnished by any actuary or accountant selected by the Committee and upon all
opinions given by any legal counsel selected by the Committee, and the members of the Committee shall be fully protected with respect to any action taken or suffered by their having relied in good faith upon such actuary, accountant or counsel and
all action so taken or suffered shall be conclusive upon each of them and upon all Participants and their beneficiaries. No member of the Committee shall incur any liability for anything done or omitted by him except only liability for his own
willful misconduct. 
 8.9 Compensation and Expenses. Unless authorized by the Board, a member or officer of the Committee shall not
be compensated for his service in such capacity, but shall be reimbursed for reasonable expenses incident to the performance of such duty. 
 8.10 Indemnity. The Company shall indemnify the members of the Committee and any of their agents acting in behalf of the Plan against any and all liabilities or expenses, including all legal fees related thereto, to which they may be
subjected as members of the Committee by reason of any act or failure to act which constitutes a breach or an alleged breach of fiduciary responsibility under ERISA or otherwise, except that due to a person’s willful misconduct. 
 8.11 Denied Claims. If any application for payment of a benefit under the Plan shall be denied, the Committee shall with the denial write the
claimant setting forth the specific reasons for the denial and explaining the Plan’s claim review procedure. If a claimant whose claim has been denied wishes further consideration of his claim, he may request the Committee to review his claim
in 

  

 11 

 
a written statement of the claimant’s position filed with the Committee no later than 60 days after the claimant receives such denial. The Committee
shall make a full review of the claim and the denial, giving the claimant written notice of its decision within the next 60 days. Due to special circumstances, if no decision has been made within the first 60 days and notice of the need for
additional time has been furnished within such period, the decision may be made within the following 60 days. A claimant shall be required to exhaust the administrative remedies provided by this Section 8.11 prior to seeking any other form of
relief. 
 ARTICLE 9 
 PLAN AMENDMENT OR TERMINATION 
 9.1 Right to Amend. The Company shall have the right at any time to amend the Plan,
which amendment shall be evidenced by an instrument in writing signed by an authorized officer of the Company, effective retroactively or otherwise. No such amendment shall have the effect specified in Section 9.2. 
 9.2 Restrictions on Amendment. No amendment of the Plan may be made which shall deprive any Participant, Beneficiary or contingent annuitant of
any part of his accrued Normal Retirement Benefit under this Plan which had accrued at the time of such amendment. 
 9.3 Right of the
Company to Terminate Plan. The Company intends and expects that from year to year it will be able to and will deem it advisable to continue this Plan in effect. The Board reserves the right, however, to terminate the Plan at any time which
termination shall be evidenced by an instrument in writing delivered to the Administrative Committee and each other Employer. Upon termination or partial termination of this Plan, the benefits of Participants affected thereby shall become fully
vested and non-forfeitable. 
 ARTICLE 10 
 RABBI TRUST 
 10.1 Rabbi Trust. The Company will set aside amounts to provide for the payment
of benefits under the Plan in a “Rabbi” trust (the “Trust”). The Trust shall not, at any time, hold assets which are located outside of the United States, except, however, that this restriction shall not apply to assets located
in a foreign jurisdiction if substantially all of the services to which the benefits hereunder relate are performed in such jurisdiction. 
  

 12 

 10.2 Contributions. The Company will make annual contributions to the trust in an amount
sufficient to enable the trust to satisfy the projected benefit obligations of the Plan as determined by the Plan’s actuary within ninety (90) days of receiving the actuarial report. 
 ARTICLE 11 
 MISCELLANEOUS PROVISIONS 
 11.1 General. The Plan shall be administered in compliance with Code § 409A, the regulations issued thereunder and guidance related thereto.
The elections provided under this Plan are intended to comply with the transitional relief provided in Notice 2005-1 and the extension thereof provided in the preamble to the proposed regulations issued under Code § 409A. 
 11.2 No Assignment of Benefit. No benefit under the Plan, nor any other interest hereunder of any Participant, beneficiary of contingent
annuitant, shall be assignable, transferable or subject to sale, mortgage, pledge, hypothecation, commutation, anticipation, garnishment, attachment, execution, or levy of any kind, and the Administrative Committee shall not recognize any attempt to
assign, transfer, sell, mortgage, pledge, hypothecate, commute or anticipate the same, except to the extent required by law. 
 11.3 No
Implied Rights to Employment. Neither this Plan, nor the payment of any benefits pursuant to the Plan shall be construed to create any obligation upon the Employer to continue the Plan or to give any present or future employee any right to
continued employment. 
 11.4 Employee’s Rights. Benefits payable under this Plan shall be general, unsecured obligations of the
Employer to be paid by the Employer from its own funds and such payments shall not impose any obligation upon or be paid for or in any way affect the payment of benefits from the Trust Fund under any Pension Plan. No Participant, his spouse or his
beneficiary or beneficiaries shall have any title to or beneficial ownership in any assets which the Employer may earmark to pay benefits hereunder. 
 11.5 Nature of Plan. The adoption of this Plan and the setting aside of any amounts by the Employer with which to discharge obligations hereunder shall not be deemed to create a trust; legal and equitable title
to any funds so set aside shall remain in the Employer; and any recipient of benefits hereunder shall have no security or other interest in such funds. Any and all funds so set aside 

  

 13 

 
shall remain subject to the claims of the general creditors of the Employer, present and future. This provision shall neither require nor prohibit the
setting aside of any funds. 
 11.6 Employment with More than One Company. If any Participant shall be entitled to benefits under any
Pension Plan on account of service with more than one Employer, the obligations under this Plan shall be apportioned among such Employers on the basis of service with each. 
 11.7 Payment of Benefits. 
 (a) If the
total present value of monthly payments of Retirement Income to any person would amount to less than $10,000, the Administrative Committee shall direct the Employer or the Trustee to pay such person the then present value of such Retirement Income
in one sum. 
 (b) Payment of any benefit for the lifetime of a person shall cease with the last payment due on or before the date of his
death. 
 (c) If the Administrative Committee determines that a person entitled to receive any benefit payment is under a legal disability or
is incapacitated in any way so as to be unable to manage his financial affairs, the Administrative Committee may direct the Employer to make payments to his legal representative or to a relative or other person for his benefit, or to apply the
payment for the benefit of such person in such manner as the Administrative Committee considers advisable. Any payment of a benefit in accordance with the provisions of this subsection shall be a complete discharge of any liability to make such
payment. 
 11.8 Effectuation of Intent. In the event it should become impossible for the Company or the Administrative Committee to
perform any act required by the Plan, the Company or Administrative Committee may perform such other act as it in good faith determines will most nearly carry out the intent and purpose of the Plan. 
 11.9 Headings. The headings of Articles and Sections of this Plan are for convenience of reference only, and in case of conflict between any such
headings and the text of this Plan, the text shall govern. 
  

 14 

 11.10 Copy of Plan. An executed copy of the Plan shall be available for inspection by any
Participant or other person entitled to benefits under the Plan at reasonable times at the office of the Employer. 
 11.11 Rules of
Construction. Masculine pronouns used herein shall refer to men or women or both and nouns and pronouns when stated in the singular shall include the plural and when stated in the plural shall include the singular, wherever appropriate.

 11.12 Governing Law. Except as otherwise required by law, the Plan and all matters arising thereunder shall be governed by the laws
of the State of Delaware. 
 11.13 Severability. If any provision of this Plan is held invalid, the invalidity shall not affect other
provisions of the Plan which can be given effect without the invalid provision, and to this end the provisions of this Plan shall be severable. 
 11.14 Expense of Administration. The reasonable expenses incident to the operation of the Plan shall be paid by the Company and each Employer, each paying the proportion of such expenses that the total of its obligations under the
Plan bears to the total of all obligations under the Plan. 
 11.15 Successors. This Plan shall be binding upon and inure to the
benefit of the Company, its successors and assigns and each Participant and his heirs, executors, Administrative Committees and legal representatives. 
 IN WITNESS WHEREOF, TORCHMARK CORPORATION has caused this Plan to be adopted, effective as of January 1, 2007. 
  

			
	TORCHMARK CORPORATION
		
	 By
	 	  

		
	 Its
	 	  

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]