Exhibit 10.1


 


WARRANT EXERCISE AGREEMENT


 


This Warrant Exercise
Agreement (this “Agreement”), dated as of February 14, 2020, is by and between Citius Pharmaceuticals, Inc.,
a Nevada corporation (the “Company”), and the undersigned holder (each, a “Holder” and, collectively,
the “Holders”) of warrants to purchase shares of common stock of the Company, par value $0.001 per share (the
“Common Stock”), at an exercise price of $0.77 per share, issued by the Company on September 27, 2019 in connection
with its underwritten public Offering (the “September 2019 Warrants”) and warrants to purchase Common Stock,
at an exercise price of $2.86 per share, issued by the Company on March 29, 2018 (the “March 2019 Warrants”,
and together with the September 2019 Warrants, the “Original Warrants”).


 





WHEREAS, the Holder’s
Original Warrants are exercisable into shares of Common Stock as set forth on the Holder’s signature page hereto (the “Warrant
Shares”), which Warrant Shares issuable pursuant to the September 2019 Warrants are currently registered pursuant to
a registration statement on Form S-1 (File No. 333-233759) which became effective on September 24, 2019 (the “September
2019 Registration Statement”) and which Warrant Shares issuable pursuant to the April 2019 Warrants are currently registered
pursuant to a registration statement on Form S-1 (File No. 333-224386) which became effective on May 23, 2018 (the “March
2018 Registration Statement” and together with the September 2019 Registration Statement, the “Registration
Statements”).




 


WHEREAS, the Holder
wishes to exercise all or a portion of such Original Warrants as set forth herein and, immediately prior to such exercise and in
consideration of the Holder’s exercise of such Original Warrants, the Company has agreed to issue the Holder of the Original
Warrants, in addition to the shares of Common Stock to which such exercising Holder is entitled, new warrants in the form attached
hereto as Exhibit A (the “New Warrants”); provided that such New Warrants shall not be registered and
shall include the legend set forth in Section 2.2(a). The shares of Common Stock underlying the New Warrants are referred to herein
as the “New Warrant Shares” and collectively with the New Warrants, the “Securities”. The
number of shares of Common Stock underlying the New Warrants shall be as determined pursuant to Section 2.1(c).


 


NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for good and valuable consideration the receipt and adequacy
of which are hereby acknowledged, the Holder and the Company agree as follows:


 


ARTICLE I


DEFINITIONS


 


Section 1.1 Definitions.
Capitalized terms not defined in this Agreement shall have the meanings ascribed to such terms in the Original Warrants.


 






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ARTICLE II


EXERCISE OF ORIGINAL WARRANT


 


Section 2.1  Exercise
of Original Warrants.


 


a) 
The Company and the Holder hereby agree that the Holder shall immediately exercise (i) the September 2019 Warrants with
respect to the number of Warrant Shares set forth on the Holder's signature page hereto at an exercise price per share equal to
$0.77 per share, and (ii) the March 2018 Warrants with respect to the number of Warrant Shares set forth on the Holder’s
signature page hereto at an exercise price per share equal to $1.02 per share, pursuant to the terms of the Original Warrants (the
“Warrant Exercise”). Notwithstanding anything herein to the contrary, in the event that the Warrant Exercise
would otherwise cause the Holder to exceed the beneficial ownership limitation (the “Beneficial Ownership Limitation”)
as provided in Section 4.12 hereto, the Company shall only transfer such number of Warrant Shares to the Holder (as instructed
in writing by the Holder) that would not cause such Holder to exceed the maximum number of Warrant Shares permitted thereunder
with the balance to be held in abeyance, which abeyance shall be evidenced through the Original Warrants which shall be deemed
prepaid thereafter, and exercised pursuant to a Notice of Exercise in the Original Warrant (provided no additional exercise shall
be payable) until the balance (or portion thereof) may be transferred to the Holder (and deemed to be issued and outstanding by
the Company) in compliance with such Beneficial Ownership Limitations and, for the avoidance of doubt, the Warrant Shares that
are held in abeyance shall not be transferred to the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation. Holder shall provide written notice to the Company promptly when any
additional Warrant Shares may be transferred to the Holder in compliance with the Beneficial Ownership Limitation. The balance
of the Warrant Shares shall be transferred to the Holder when the Holder provides notice that the Holder holds less than the Beneficial
Ownership Limitation via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) no
later than 10:00 a.m., EST, on the 2nd Trading Day following the date of such notice. For the avoidance of doubt, the Warrant Shares
held in abeyance pursuant to this Section 2.1 shall not be included in the number of shares of Common Stock reported to be outstanding
by the Company in its SEC Reports.


 


b) Upon satisfaction of the covenants and conditions set forth in Section 2.3 but no later than the 2nd Trading
Days following the date hereof, the closing shall occur at the offices of H.C. Wainwright & Co., LLC (the “Placement
Agent”) or such other location as the parties shall mutually agree. The Holder shall deliver the aggregate cash exercise
price for such exercise of the Original Warrants to the bank account set forth on the Company’s signature page hereto within
two (2) Trading Days following the date hereof and the Company shall deliver the Warrant Shares to the Holder via the DWAC pursuant
to the terms of the Original Warrants, but pursuant to instructions set forth on the Holder’s signature page hereto; provided,
however, that per instructions from the Placement Agent, settlement of the Shares shall occur via “Delivery Versus Payment”
(“DVP”) (i.e., on the Closing Date, the Company shall issue the Shares registered in the Holders’ names
and addresses and released by the Transfer Agent directly to the account(s) at the Placement Agent identified by each Holder; upon
receipt of such Shares, the Placement Agent shall promptly electronically deliver such Shares to the applicable Holder, and payment
therefor shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company). The date of the closing
of the exercise of the Original Warrants shall be referred to as the “Closing Date”.


 


c) 
Within two (2) Trading Days of the Closing Date, the Company shall deliver to the Holder New Warrants to purchase such number
of New Warrant Shares as follows:


 


An unregistered warrant to purchase
shares of Common Stock exercisable into a number of shares of Common Stock equal to 100% of the number of Warrant Shares received
by the Holder upon such applicable exercise of the Original Warrants with an exercise price equal to $1.02, a term of exercise
equal to five (5) years commencing on the six (6) month anniversary of the original issue date, in the form attached hereto as
Exhibit A.


 






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Section 2.2  Legends;
Restricted Securities.


 


a) 
The Holder understands that the New Warrants and the New Warrant Shares are not, and will not be, registered under the Securities
Act of 1933, as amended (the “Securities Act”), or the securities laws of any state and, accordingly, each certificate,
if any, representing such securities shall bear a legend substantially similar to the following:


 


“THIS SECURITY HAS NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER
OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES
ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.”


 


b) 
Certificates evidencing the New Warrant Shares shall not contain any legend (including the legend set forth in Section 2.2(a)
hereof), (i) while a registration statement covering the resale of such New Warrant Shares is effective under the Securities Act,
(ii) following any sale of such New Warrant Shares pursuant to Rule 144, (iii) if such New Warrant Shares are eligible for sale
under Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the Commission). In such event, the Company shall cause its counsel to
issue a legal opinion to the Transfer Agent if required by the Transfer Agent to effect the removal of the legend hereunder. If
all or any portion of a New Warrant is exercised at a time when there is an effective registration statement to cover the resale
of the New Warrant Shares, or if such New Warrant Shares may be sold under Rule 144 and the Company is then in compliance with
the current public information required under Rule 144, or if the New Warrant Shares may be sold under Rule 144 without the requirement
for the Company to be in compliance with the current public information required under Rule 144 as to such New Warrant Shares or
if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission), then such New Warrant Shares shall be issued free of all legends. The
Company agrees that at such time as such legend is no longer required under this Section 2.2(b), it will, no later than two (2)
Trading Days following the delivery by the Holder to the Company or the Transfer Agent of a certificate representing New Warrant
Shares, as the case may be, issued with a restrictive legend (such Trading Day, the “Legend Removal Date”),
deliver or cause to be delivered to the Holder a certificate representing such shares that is free from all restrictive and other
legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions
on transfer set forth in this Section 2.2(b). Certificates for securities subject to legend removal hereunder shall be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company
System as directed by the Holder.


 






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c) 
In addition to the Holder’s other available remedies, the Company shall pay to the Holder, in cash, (i) as partial
liquidated damages and not as a penalty, for each $1,000 of New Warrant Shares (based on the VWAP of the shares of Common Stock
on the date such New Warrant Shares are submitted to the Transfer Agent) delivered for removal of the restrictive legend, $10 per
Trading Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading
Day after the Legend Removal Date until such certificate is delivered without a legend and (ii) if the Company fails to (A) issue
and deliver (or cause to be delivered) to the Holder by the Legend Removal Date a certificate representing the New Warrant Shares
so delivered to the Company by the Holder that is free from all restrictive and other legends and (B) if after the Legend Removal
Date 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 all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal
to all or any portion of the number of shares of Common Stock that the Holder anticipated receiving from the Company without any
restrictive legend, then, an amount equal to the excess of the Holder’s total purchase price (including brokerage commissions
and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other
out-of-pocket expenses, if any) over the product of (1) such number of New Warrant Shares that the Company was required to deliver
to the Holder by the Legend Removal Date multiplied by (2) the price at which the sell order giving rise to such purchase obligation
was executed.


 


Section 2.3 Issuance
of Press Release. Prior to 4:00 p.m. (New York City time) on the date hereof, the Company shall issue a press release disclosing
the material terms of the transactions contemplated hereby and within the time required by the laws file a Current Report on Form
8-K with the Commission, which shall include a form of this Agreement. From and after the issuance of the press release, the Company
represents to the Holder that it shall not be in possession of any material, nonpublic information received from the Company, any
of its Subsidiaries or any of their respective officers, directors, employees or agents that is not disclosed in press release.
In addition, effective upon the issuance of the press release, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, affiliates, employees or agents, on the one hand, and the Holder or any of its affiliates, on the
other hand, shall terminate.


 






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ARTICLE III


REPRESENTATIONS AND WARRANTIES


 


Section 3.1  Representations
and Warranties of the Company. The Company hereby makes the representations and warranties set forth below to the Holder that
as of the date of its execution of this Agreement:


 


a) 
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of such Company and no further action is required by such Company, its board of
directors or its shareholders in connection therewith. This Agreement has been duly executed by the Company and, when delivered
in accordance with the terms hereof will constitute the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar
as indemnification and contribution provisions may be limited by applicable law.


 


b) 
Organization. The Company is a duly organized and validly existing corporation in good standing under the laws of
the State of Nevada.


 


c) 
Registration Statements. The Warrant Shares are registered for issuance to the Holder under the Registration Statements,
and the Company knows of no reasons why such Registration Statements shall not remain available for the issuance of such Warrant
Shares for the foreseeable future. The Company shall use commercially reasonable efforts to keep the Registration Statements effective
and available for use by the Holder until all Warrant Shares are issued to the Holder. The Company shall file a Prospectus Supplement
pursuant to Rule 424(b) with the Commission, reducing the exercise price of the March 2018 Warrants.


 


d) 
No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien
upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other material instrument
(evidencing Company debt or otherwise) or other material understanding to which the Company is a party or by which any property
or asset of the Company is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject
(including federal and state securities laws and regulations and the Company’s principal trading market), or by which any
property or asset of the Company is bound or affected.


 






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e) 
Subsequent Sales


 


		i.	From the date hereof until the end of the 30 days following the date hereof, neither the Company
nor any subsidiary of the Company shall issue, enter into any agreement to issue or announce the issuance or proposed issuance
of any shares of Common Stock or any securities of the Company or any subsidiary of the Company which would entitle the holder
thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or
other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof
to receive, Common Stock (“Common Stock Equivalent”).



 


		ii.	From the date hereof until the first (1st) year anniversary of the Closing Date, the
Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its subsidiaries
of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are
convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A)
at a conversion price, exercise price or exchange rate or other price that is based upon and/or varies with the trading prices
of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B)
with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of
such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business
of the Company or the market for the Common Stock or (ii) enters into, or effects a transaction under, any agreement, including,
but not limited to, an equity line of credit, whereby the Company may issue securities at a future determined price. Any Purchaser
shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition
to any right to collect damages.



 


f) 
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by this Agreement,
the Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or any of its agents or
counsel with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Holder will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Holder regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including but not limited to the disclosure set forth in the SEC
Reports, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. As used
herein, “SEC Reports” means all reports, schedules, forms, statements and other documents required to be filed
by the Company with the Commission pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended, including
all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein.


 


g) 
Issuance of Securities. The issuance of the New Warrants is duly authorized and, upon issuance in accordance with
the terms of this Agreement, the New Warrants shall be validly issued and free from all preemptive or similar rights (except for
those which have been validly waived prior to the date hereof), taxes, liens and charges and other encumbrances with respect to
the issue thereof. As of the Closing Date, a number of shares of Common Stock shall have been duly authorized and reserved for
issuance which equals or exceeds the maximum number of New Warrant Shares issuable upon exercise of the New Warrants (without taking
into account any limitations on the exercise of the New Warrants set forth therein). Upon exercise of the New Warrant in accordance
with the terms of the New Warrant, the New Warrant Shares when issued will be validly issued, fully paid and nonassessable and
free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with
the holders being entitled to all rights accorded to a holder of shares of Common Stock. Assuming the accuracy of each of the representations
and warranties set forth in Section 3.2 of this Agreement, the offer and issuance by the Company of the New Warrant is exempt from
registration under the Securities Act.


 


h) 
No General Solicitation. Neither the Company, nor any of its Subsidiaries or affiliates, nor any Person acting on
its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D)
in connection with the offer or sale of the New Warrants.


 


i) 
No Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b)
under the Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated
on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the
Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer
Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to
a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e),
and has furnished to the Buyers a copy of any disclosures provided thereunder, if any.


 






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Section 3.2  Representations
and Warranties of the Holder. The Holder hereby makes the representations and warranties set forth below to the Company that
as of the date of its execution of this Agreement:


 


a) 
Due Authorization. The Holder represents and warrants that (i) the execution and delivery of this Agreement
by it and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on its
behalf and (ii) this Agreement has been duly executed and delivered by the Holder and constitutes the valid and binding obligation
of the Holder, enforceable against it in accordance with its terms.


 


b) 
No Conflicts. The execution, delivery and performance of this Agreement by the Holder and the consummation by the
Holder of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Holder’s
organizational or charter documents, or (ii) conflict with or result in a violation of any agreement, law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority which would interfere with the
ability of the Holder to perform its obligations under this Agreement.


 


c) 
Access to Information. The Holder acknowledges that it has had the opportunity to review this Agreement and the SEC
Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the exercise of the Original Warrants and issuance of the
New Warrants and the merits and risks of investing in the Warrant Shares underlying the Original Warrants; (ii) access to information
about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient
to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses
or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to
the investment. The Holder acknowledges and agrees that neither H.C. Wainwright & Co., LLC (the “Agent”)
nor any Affiliate of the Agent has provided the Holder with any information or advice with respect to the Original Warrants, the
Warrant Shares or the Securities nor is such information or advice necessary or desired. Neither the Agent nor any Affiliate of
the Agent has made or makes any representation as to the Company or the quality of the Original Warrants, the Warrant Shares or
the Securities, and the Agent and any Affiliate of the Agent may have acquired non-public information with respect to the Company
which the Holder agrees need not be provided to it. In connection with the issuance of the Warrant Shares and the Securities to
the Holder, neither the Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to the Holder.


 


d) 
Holder Status. The Holder is an “accredited investor” as defined in Rule 501 under the Securities Act.


 






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ARTICLE IV


MISCELLANEOUS


 


Section 4.1  Favorable
Agreement. The Company hereby represents and warrants as of the date hereof and covenants and agrees that none of the terms
offered to any one Holder hereunder (or any amendment, modification or waiver thereof), is or will be more favorable to any one
Holder than those of the other Holder and this consent.


 


Section 4.2 Other
Warrant Exercise Agreement.  The Company acknowledges and agrees that the obligations of the Holder under this Agreement
are several and not joint with the obligations of any other holder or any other holders of Warrants to Purchase Common Stock of
the Company (each, an “Other Holder”) under any other agreement related to the exercise of such Original Warrants
(“Other Warrant Exercise Agreement”), and the Holder shall not be responsible in any way for the performance
of the obligations of any Other Holder or under any such Other Warrant Exercise Agreement. Nothing contained in this Agreement,
and no action taken by the Holder pursuant hereto, shall be deemed to constitute the Holder and the Other Holders as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Holder and the Other Holders are
in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement
and the Company acknowledges that the Holder and the Other Holders are not acting in concert or as a group with respect to such
obligations or the transactions contemplated by this Agreement or any Other Warrant Exercise Agreement. The Company and the Holder
confirms that the Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice
of its own counsel and advisors. The Holder shall be entitled to independently protect and enforce their rights, including, without
limitation, the rights arising out of this Agreement, and it shall not be necessary for any Other Holder to be joined as an additional
party in any proceeding for such purpose.


 


Section 4.3 Notices.
 Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be made by email
to the email address of the Holder set forth on such Holder’s signature page.


 


Section 4.4 Survival.
 All warranties and representations (as of the date such warranties and representations were made) made herein or in any certificate
or other instrument delivered by any party hereto or on its behalf under this Agreement shall be considered to have been relied
upon by the parties hereto and shall survive the issuance of the Warrant Shares. This Agreement shall inure to the benefit of and
be binding upon the successors and permitted assigns of each of the parties; provided, however, that no party may assign this Agreement
or the obligations and rights of such party hereunder without the prior written consent of the other parties hereto.


 


Section 4.5  Execution.
 This Agreement may be executed in two or more counterparts, all of which when taken together 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, it
being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile signature page were an original thereof.


 






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Section 4.6 Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.


 


Section 4.7  Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
pursuant to the Governing Law provision in Section 5(e) of the Original Warrants.


 


Section 4.8  Entire
Agreement. The Agreement, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.


 


Section 4.9  Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.


 


Section 4.10  Fees
and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and
all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the
delivery of any Warrant Shares.


 


Section 4.11 Registration
Obligations. The Company shall prepare and file with the Commission a registration statement relating to the resale of the
New Warrant Shares by the holders of the New Warrants under the Securities Act and use commercially reasonable best efforts to
cause such registration statement to be declared effective by the Commission as soon as practical.


 


Section 4.12 Beneficial
Ownership Limitation. The parties hereby agree that the Beneficial Ownership Limitation for the Original Warrant for purposes
of this agreement is [4.99/9.99%].


 


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


 




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IN WITNESS WHEREOF, the undersigned
have executed this Warrant Exercise Agreement as of the date first written above.


 





	COMPANY:	 
	 	 	 
	CITIUS PHARMACEUTICALS, INC.	 
	 	 	 
	By: 	 	 
	Name: 	 	 
	Title:	 	 









Bank Account and Wire Instructions:


 




    10


     


    

 


[HOLDER SIGNATURE PAGES TO CTXR


WARRANT EXERCISE AGREEMENT]


 


IN WITNESS WHEREOF, the undersigned have caused this Warrant
Exercise Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.


 


	 	 	 	 
	Name of Holder:	 	                                                                                  	 
	 
	Signature of Authorized Signatory of Holder:
	                                                     	 	 	 
	Name of Authorized Signatory:	 		 
	 	 	 	                       
	Title of Authorized Signatory:	 	
 

	 
	 	 	 	 
	Email Address of Holder:	 	
 

	 
	 	 	 	 
	Number of Warrant Shares underlying Original Warrants to be exercised:              
	 
	 
	Aggregate Exercise Price of Original Warrants to be Exercised:	
        $ 

	 	 
	
        New Warrant Shares underlying New
Warrants:
	

	 	 
	 	 
	
        DWAC Instructions for Warrant
        Shares to be issued upon exercise of Original Warrants:_________________

        

	 	 	 	 	 	 	 	 	 	 	 	 





Deliver address of New Warrants: _____________________________________________________________________


 


 


 


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