Document:

EXHIBIT 10.1

NOTE SETTLEMENT AND
GENERAL RELEASE AGREEMENT

This Note Settlement and
General Release Agreement
(the "Agreement") is entered into this 20th day of January 2016 by
and between Robert Noble, an individual ("Lender"), and Envision Solar
International, Inc., a Nevada corporation (the "Company"), with respect to the
following facts:

 

R E C I T
A L S

 

	A.	Lender is the holder of that certain
secured convertible promissory note, dated June 30, 2015, in the principal
amount of $600,000 with accrued but unpaid interest through December 17, 2015
of approximately $126,032.91 (the "Note"), and the holder of a total of 11,587,440
shares of the Company's common stock (collectively, the "Shares").
	 	 
	B.	The Company has caused a payment in the amount of $100,000
    to be made on the Note to the Lender in order to pay a substantial portion
    of the accrued but unpaid interest due to Lender through the date of the
    payment (the "Payment").
	 	 
	C.	In connection with the Payment and other consideration
    described in this Agreement, Lender resigned as a director of the Company,
    and the Company accepted Lender's resignation, effective December 24, 2015.
	 	 
	D.	Lender and the Company desire to enter into a mutual release
    of claims in consideration for the representations and covenants set forth
    in this Agreement.

NOW THEREFORE, for good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged by
the parties, the parties hereby agree as follows:

1.         Payment to Lender; Representations
and Covenants of the Parties

 

1.1      
Payment
to Lender

 

The parties acknowledge
that the Company caused a payment to be made to the Lender in the amount of
$100,000 in cash on December 24, 2015 (the "Payment Date"), which Payment was
applied to pay a substantial portion of the accrued but unpaid interest due to
Lender on the Note through the Payment Date.

 

1.2      
Resignation
as a Director

Lender resigned as a
director of the Company, effective on the Payment Date.

-1- 

 

1.3      
Option
to License Company Intellectual Property

Provided the Option, as
that term is defined in that certain Purchase Option Agreement by and between
the Lender and GreenCore Capital, LLC, a Delaware limited liability company, dated
as of January 20, 2016 (the "Option Agreement"), is exercised in full and
Lender complies with it (a "Closing"), Lender will have the option, exercisable
in his sole discretion at any time until June 30, 2017, to purchase from the
Company for one dollar, a worldwide, perpetual, irrevocable, nonexclusive,
royalty-free license to utilize all of the Company intellectual property
developed prior to January 1, 2011, except for the following: (i) EV ARCTM and
(ii) EnvisionTrakTM.  Lender will have the right to photograph Solar Tree®
projects that were installed or planned prior to January 1, 2011 and to utilize
such photographs in Lender's business activities.  Upon exercise of the option
by the Lender by delivery of written notice by him to the Company, the parties
covenant to enter into a customary license agreement in good faith reflecting
the intent of this Agreement; provided, however, if the parties fail to enter
into such license agreement, this Section 1.3 of the Agreement shall be deemed
to be the grant of a license to Lender containing the terms set forth in this
Section 1.3 of the Agreement, unless the Lender is in breach of this Agreement
or does not negotiate a customary license agreement in good faith.  The
foregoing license shall include all documentation and trademarks, including,
but not limited to, photo, animations, logos, design, and engineering drawings,
of all pre-January 1, 2011 Company intellectual property and trademarks.  The
foregoing license shall also include the exclusive worldwide license rights to
Life Port and Life Village, as well as the right to manufacture and sell the
original Solar Tree®, with no other licenses (except for Lender's license) into
any country globally, except the United States.  Lender will have the right to
publish its license rights, and when contacted by Lender or a third party, the
Company will confirm that the foregoing license rights belong to Lender.

 

1.4      
Extension
of Maturity Date

Effective as of December
1, 2015, the maturity date of the Note is automatically extended to March 31,
2016 or longer if agreed in writing by both parties.  The company acknowledges
that the foregoing extension shall not constitute a waiver of Lender's rights
under the Note or the related security agreements.

 

1.5      
Covenant to Defer Conversion of All Derivative Securities

Effective as of December
24, 2015 and extending until September 30, 2016, or the recording of an
amendment to the Company's Articles of Incorporation increasing the number of
authorized shares of its common and preferred stock, whichever occurs first,
Lender covenants not to exercise at any time any conversion rights on any
derivative securities issued by the Company that are held by him, including
without limitation the Note and any warrants and stock options.

-2- 

 

1.6      
Covenant to Amend Warrants

Provided the Option is
exercised in full and Lender complies with it, resulting in a Closing, the
Company will extend the expiration date of the 1,138,120 warrants to purchase
1,138,120 shares of the Company's common stock owned by Lender (the "Warrants")
from December 31, 2016 to December 31, 2017 and will reduce the exercise price
of such Warrants from $0.24 to $0.20 per share.

2.         Mutual Release

2.1       Terms of Release

Effective as of the date
of this Agreement, in consideration for the mutual promises made by the parties
in Section 1 of this Agreement, each party, on behalf of itself, and any other
person or entity, agent or representative that could make any claim through such
party, forever releases and fully discharges the other party and such party's
past, present, and future affiliates, employees, officers, directors,
shareholders, attorneys, accountants, successors, predecessors, agents,
representatives, heirs, assigns, and executors from any and all claims that each
party hereto may have against the other party, whether known or unknown,
suspected or unsuspected, matured or unmatured, contingent or fixed, liquidated
or unliquidated, which each party now owns or holds against the other party, or
has at any time heretofore owned or held against the other party, save and
except those obligations set forth in this Agreement, and any liability arising
from an act of fraud or intentional misconduct by the other party. Notwithstanding
anything else herein to the contrary, this release shall in no way effect or
apply to the validity or enforceability of the Note or the related security
agreements, each of which shall remain in full force and effect in accordance
with its respective terms.

2.2       Representations
and Agreements

The parties agree that
these releases shall not be considered admissions by either party of any
liability or wrongdoing.  The parties warrant that no promise or inducement has
been offered except as herein set forth.  Lender represents that he is of legal
age and legally competent to execute this release and accept full
responsibility therefore.  The parties declare that the terms of this full and
final release of claims have been completely read by each party and are fully
understood and voluntarily accepted for the purpose of making a full and final
compromise and settlement.  Each of the parties to this Agreement hereby
relinquishes and waives all rights conferred upon each of them by the
provisions of California Civil Code §1542 or any like provision.  California
Civil Code §1542 reads as follows:

 

"A general release does not extend to claims which
the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor."

 

  
  	
      
 

      	 	
      
 

      
	Lender Initials	 	Company Initials

  

 

-3- 

3.         Costs and Attorneys' Fees

Each party shall bear
his or its own expenses incurred in this Agreement and in the Closing,
including but not limited to attorneys' fees and costs.

4.         No Prior Assignment; Indemnity

Each of the parties
represents and warrants that it has not assigned or transferred, or purported
to assign or transfer, to any person or entity any claim or other matter
released herein.  In the event that a party shall have assigned or transferred,
or purported to assign or transfer, any claim or other matter herein released,
such party shall indemnify the other party and hold harmless such other party
from and against any loss, cost, claim or expense including, but not limited
to, all costs related to the defense of any action, including reasonable
attorneys' fees, based upon, arising out of, or incurred as a result of any
such claim, assignment or transfer.

5.         Equitable Relief

5.1       Damages
Inadequate

Each party acknowledges
that it would be impossible to measure in money the damages to the other party
if there is a failure to comply with any covenants or provisions of this
Agreement, and agrees that in the event of any breach of any covenant or
provision, the other party to this Agreement will not have an adequate remedy
at law.

5.2       Equitable
Relief

It is therefore agreed
that the other party to this Agreement who is entitled to the benefit of the
covenants and provisions of this Agreement which have been breached, in
addition to any other rights or remedies which they may have, shall be entitled
to immediate injunctive relief, specific performance or other equitable relief,
to enforce such covenants or provisions, and that in the event that any such
action or proceeding is brought in equity to enforce them, the defaulting or
breaching party will not urge a defense that there is an adequate remedy at
law.

6.         No Admission of Liability

This Agreement is a
compromise disposition of disputed claims, and each party expressly denies any
liability of any kind to the other.  Nothing contained in this Agreement may be
construed as an admission by any other party of any liability of any kind to
the other party.

-4- 

 

7.         Waivers

If any party shall at
any time waive any rights hereunder resulting from any breach by the other
party of any of the provisions of this Agreement, such waiver is not to be
construed as a continuing waiver of other breaches of the same or other
provisions of this Agreement.  Resort to any remedies referred to herein shall
not be construed as a waiver of any other rights and remedies to which such
party is entitled under this Agreement or otherwise.

8.         Successors and Assigns

Each covenant and
representation of this Agreement shall inure to the benefit of and be binding
upon each of the parties, their personal representatives, assigns and other
successors in interest.  The Purchaser will be a third party beneficiary of the
Lender's covenants and obligations to the Company under this Agreement.

9.         Entire and Sole Agreement

This Agreement constitutes
the entire agreement between the parties and supersedes all other agreements,
representations, warranties, statements, promises and undertakings, whether
oral or written, with respect to the subject matter of this Agreement.  This
Agreement may be modified only by a written agreement signed by all parties.

10.       Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of the State of
California, and the venue for any action hereunder shall be in the appropriate
forum in the County of San Diego, State of California.

11.       Counterparts

This Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

12.       Attorneys' Fees and Costs

In the event that either
party must resort to legal action in order to interpret or enforce the
provisions of this Agreement or to defend such action, the prevailing party
shall be entitled to receive reimbursement from the nonprevailing party for all
reasonable attorneys' fees and all other costs incurred in commencing or
defending such action, or in enforcing this Agreement, including but not
limited to post judgment costs.

-5- 

13.       Confidentiality

Neither party will
disclose or otherwise provide information regarding any of the terms or
conditions of this Agreement to any person that is not a party to this
Agreement unless required by applicable law, except (i) to the extent that the
Company publishes public reports or announcements regarding it and (ii) as
permitted under Section 1.3.  Neither party will directly or indirectly
interfere with the business of the other party, nor solicit or encourage any
supplier or customer of the other party not to conduct business with the other
party, nor solicit or encourage any employee or consultant of the other party
to cease working for or with the other party. 

14.       Severability

If any term, provision,
covenant or condition of this Agreement is found to be invalid, void, or
unenforceable by any court of competent jurisdiction, the remaining provisions
hereof will continue in full force and effect and will in no way be affected,
impaired or invalidated.

15.       Further Acts

The parties to this
Agreement hereby agree to execute any other documents and take any further
actions which are reasonably necessary or appropriate in order to implement the
transactions contemplated by this Agreement.

16.       No Derogatory Statements

The Company agrees not
to make any derogatory statements to third parties regarding the Lender or his
business.  Lender covenants not to make any derogatory statements to third
parties regarding the Company or its management, shareholders, products or
employees.

17.       Consent to Option Agreement

            The Company hereby consents to the
making of the Option Agreement by and between Lender and Greencore Capital,
LLC, dated of even date herewith, and further consents to the implementation of
any or all of the transactions contemplated by the Option Agreement.

18.       Time of Essence

            Time is of the essence of each and
every term, condition, obligation and provision hereof.

-6- 

 

IN WITNESS WHEREOF, this Agreement has been
entered into as of the date first above written.

 

Company:                                           ENVISION
SOLAR INTERNATIONAL, INC.

                                                            By:
/s/ John Evey                                                                      

 
John Evey, Chairman

Lender:

/s/ Robert Noble                                                                       

Robert Noble

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-7-Adamis Pharmaceuticals Corporation 8-K

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE TRANSFERRED, UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE
SECURITIES ACT OF 1933, AS AMENDED, OR (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144 OR OTHER APPLICABLE EXEMPTION FROM
APPLICABLE SECURITIES LAWS. THE ISSUER MAY REQUIRE AN OPINION OF COUNSEL TO THE HOLDER OF THESE SECURITIES, IN FORM AND SUBSTANCE
REASONABLY SATISFACTORY TO THE ISSUER, THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED.

 

COMMON STOCK PURCHASE WARRANT

ADAMIS PHARMACEUTICALS CORPORATION

 

	Warrant Shares: 	 	 Issue Date: January 26, 2016

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _______________________, or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Issue Date”) and on or prior to 11:59 P.M. on the five (5) year anniversary of
the Issue Date or, if such day is not a Trading Day, on the next Trading Day (the “Termination Date”), but not
thereafter, to subscribe for and purchase from Adamis Pharmaceuticals Corporation, a Delaware corporation (the “Company”),
up to _______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of, at the election of the Holder,
either (i) Common Stock, (ii) Series A-1 Convertible Preferred Stock, par value $0.0001 par value per share (“Preferred Stock”),
or (iii) a combination of Common Stock and Preferred Stock. The purchase price of one share of Common Stock or Preferred Stock
under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1. Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Purchase Agreement (the
“Purchase Agreement”) or, as applicable, that certain Registration Rights Agreement (the “Registration
Rights Agreement”) each dated as of the Issue Date and entered into by and between the Company and the initial Holder.

 

    	 	 1	 

    	 

    

 

Section
2. Exercise.

 

a) Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Issue
Date and on or before the Termination Date by facsimile delivery to the Company (or such other office or agency of the Company
as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed notice of exercise (the “Notice of Exercise”) in substantially the form of the Notice of
Exercise Form annexed hereto. Within two (2) Trading Days following the date of exercise as aforesaid, the Holder shall deliver
the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s
check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the
applicable Notice of Exercise. In the case of a dispute between the Company and the Holder as to the calculation of the Exercise
Price or the number of Warrant Shares issuable hereunder (including, without limitation, the calculation of any adjustment pursuant
to Section 3 below), the Company shall issue to the Holder the number of Warrant Shares that are not disputed within the time
periods specified in Section 2(d)(i) below and shall submit the disputed calculations to a certified public accounting firm of
national reputation (other than the Company’s regularly retained accountants) within three (3) Trading Days following the
Company’s receipt of the Holder’s Notice of Exercise. The Company shall cause such accountant to calculate the Exercise
Price and/or the number of Warrant Shares issuable hereunder and to notify the Company and the Holder of the results in writing
no less than three (3) Trading Days following the day on which such accountant received the disputed calculations. Such accountant’s
calculation shall be deemed conclusive absent manifest error. The fees of any such accountant shall be borne by the party whose
calculations were most at variance with those of such accountant. Notwithstanding anything herein to the contrary (although the
Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not be required to
physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder
and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this
Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of
lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant
Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date
of such purchases. In the case of a partial exercise of this Warrant, the Holder may request that the Company deliver to the Holder
a certificate representing such new warrant, with terms identical in all respects to this Warrant (except that such new warrant
shall be exercisable into the number of Warrant Shares with respect to which this Warrant shall remain unexercised); provided,
however, that the Holder shall be entitled to exercise all or any portion of such new warrant at any time following the time at
which this Warrant is exercised, regardless of whether the Company has actually issued such new warrant or delivered to the Holder
a certificate thereof. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery
of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions
of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available
for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b) Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $4.10, subject to adjustment hereunder
(the “Exercise Price”).

 

    	 	 2	 

    	 

    

 

c) Cashless
Exercise. If at any time commencing 120 days after the Issue Date, there is no then effective Registration Statement registering,
or no current prospectus available for, the resale of all of the Warrant Shares (assuming Holder elects all Warrant Shares to
be in the form of Common Stock upon exercise) by the Holder and all of the Conversion Shares beneficially held by the Holder (in
each case without giving effect any restrictions on exercise or conversion), or if the Company has not provided any certifications
required to be provided by the Registration Rights Agreement regarding the availability of the Registration Statement for resales
of all of the Warrant Shares and all of the Conversion Shares beneficially held by the Holder (in each case without giving effect
any restrictions on exercise or conversion) that has been requested by the Holder, then this Warrant may also be exercised at
the Holder’s election, in whole or in part, at such time by means of a “cashless exercise” in which the Holder
shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) x (X)] by (A), where:

 

	 	(A)	=	the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;
	 	 	 	 
	 	(B)	=	the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 	 
	 	(X)	=	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a national securities exchange or trading market (with such exchange or market including, without limitation,
the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, The New York Stock Exchange, Inc., the NYSE
or Amex, or the OTC Bulletin Board including the OTCQX or OTCQB) (a “Trading Market”), the daily volume weighted
average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock
is then listed or quoted as reported by Bloomberg L.P. (or other reliable source) based on a Trading Day from 9:30 a.m. (New York
City time) (or such other time as the Trading Market publicly announces is the official open of trading) to 4:00 p.m. (New York
City time) (or such other time as the Trading Market publicly announces is the official close of trading), (b) if no daily volume
weighted average prices are reported by Bloomberg (or other reliable source), the average of the highest closing bid price and
the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC
Markets LLC, or (c) in all other cases, the fair market value of a share of Common Stock as mutually determined by the Company
and Holder.

 

    	 	 3	 

    	 

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, Holder may exercise any remaining unexercised portion of this Warrant
by means of a cashless exercise pursuant to this Section 2(c) by means of a notice delivered to the Company before the Termination
Date. If on the Termination Date the VWAP is greater than the Exercise Price of this Warrant, as adjusted hereunder, then the
Warrant shall be automatically exercised pursuant to this Section 2(c).

 

d) Mechanics of Exercise.

 

Delivery of Certificates Upon Exercise.
Certificates for shares (or, if the shares are represented in uncertificated form, comparable share notices reflecting such shares)
purchased hereunder shall be transmitted by the Transfer Agent (“Transfer Agent” means the transfer agent employed
by the Company from time to time, for its Common Stock) to the Holder by crediting the account of the Holder’s prime broker
with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder (assuming Holder elects all Warrant Shares to be in the form of
Common Stock upon exercise) or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, and otherwise
by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days
after the date of delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”).
The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall
be deemed to have become a holder of record of such shares for all purposes, as of the date of delivery to the Company of the Notice
of Exercise. Notwithstanding anything herein to the contrary, the Company shall not be required to make any cash payments or net
cash settlement to the registered holder in lieu of issuance of the Warrant Shares, except as provided in Section 2(d)(iv) below.
The Company understands that a delay in the delivery of the Warrant Shares (assuming Holder elects all Warrant Shares to be in
the form of Common Stock upon exercise) after the Warrant Share Delivery Date could result in economic loss to the Holder. As compensation
to the Holder for such loss, if (i) the Company fails to deliver the number of Warrant Shares (assuming Holder elects all Warrant
Shares to be in the form of Common Stock upon exercise) to which the Holder is entitled upon the Holder’s exercise of this
Warrant within the time periods specified above and (ii) the Holder has not exercised its Buy-In rights as provided below with
respect to such shares, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance
of Warrant Shares upon exercise of this Warrant the proportionate amount of $100 per Trading Day (increasing to $200 per Trading
Day after the tenth Trading Day) after the Warrant Share Delivery Date for each $10,000 of Exercise Price of Warrant Shares for
which this Warrant is exercised which are not timely delivered. For purposes of clarification, if the Company is obligated to make
payments of liquidated damages pursuant to this Section for late issuance of Warrant Shares, then it shall not also be obligated
to make Buy-In payments as described below with respect to those same Warrant Shares. The Company shall pay any payments incurred
under this Section in immediately available funds upon demand.

 

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

 

ii. Revoking
Exercise. In the event that the Company fails for any reason to effect delivery of the Warrant Shares to Holder by the Warrant
Share Delivery Date, then Holder may, at any time prior to issuance of such Warrant Shares, revoke all or part of the relevant
Warrant exercise by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored
to their respective positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated
damages described above shall be payable through the date notice of revocation is given to the Company.

 

    	 	 4	 

    	 

    

 

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

 

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

 

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

 

    	 	 5	 

    	 

    

 

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

 

e) Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Notice of Exercise, (i) the Holder would beneficially own in excess of the Holder
Beneficial Ownership Limitation (as defined below) or (ii) the Holder, together with the Holder’s Affiliates and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates, would beneficially own in excess of
the Affiliates Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned
by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other securities of the Company or the Subsidiaries 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, hereinafter “Common Stock Equivalents”) subject to a limitation
on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder, it being acknowledged by the
Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the 1934
Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the
limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the
reasonable judgment of the Holder, in each case subject to the Holder Beneficial Ownership Limitation or the Affiliates Beneficial
Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition,
a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the 1934
Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by
the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding.

 

    	 	 6	 

    	 

    

 

Upon the written or oral request of a Holder, the Company shall within one (1) Trading 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, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was
reported. The “Holder Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.
The “Affiliates Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.
The Holder Beneficial Ownership Limitation together with the Affiliates Beneficial Ownership Limitation is collectively known
as the “Beneficial Ownership Limitation.” The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion
hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes
or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph
shall apply to a successor holder of this Warrant and shall cease to apply only (x) upon sixty-one (61) days’ written notice
from the Holder to the Company of an election to increase or decrease or remove one or both of the Holder Beneficial Ownership
Limitation and the Affiliate Beneficial Ownership Limitation or (y) immediately upon written notice from the Holder to the Company
at any time after the public announcement or other disclosure of a Fundamental Transaction (as defined in Section 3(d)); provided,
however that in no event shall either the Holder Beneficial Ownership Limitation or the Affiliate Beneficial Ownership Limitation
be 20.00% or greater.

 

f) Call.
Provided (i) there is at the time an effective registration statement which includes for resale all of the Warrant Shares (assuming
Holder elects all Warrant Shares to be in the form of Common Stock upon exercise), or (ii) all of the Warrant Shares may be sold
pursuant to Rule 144 upon “cashless exercise” pursuant to Section 2(c) without restrictions, including, without volume
limitations (each a “Trigger Condition”), the Company shall have the option to “call” (the “Warrant
Call”) the exercise of any or all of the Warrant Shares (the “Called Warrant Shares”) from time to
time in accordance with and governed by the following:

 

(1) Call
Notice. The Company shall exercise a Warrant Call by giving written notice of call (the “Call Notice”)
to the Holder during the period in which the Warrant Call may be exercised. The effective date of each Call Notice (the “Call
Date”) is the date on which notice is deemed given and effective under the notice provision of Section 5(h) of this
Warrant.

 

(2) Call
Period. The Company’s right to exercise a Warrant Call shall commence five (5) Trading Days after either of the Trigger
Conditions has been in effect continuously for fifteen (15) Trading Days. The Holder shall have the right to cancel the Warrant
Call up until the date the called Warrant Shares are actually delivered to the Holder (“Warrant Call Delivery Date”)
if the Trigger Condition relied upon for the Warrant Call ceases to apply.

 

    	 	 7	 

    	 

    

 

(3) Call
Notice Spacing. A Call Notice may be given not sooner than fifteen (15) Trading Days after the Warrant Call Delivery Date
of the immediately preceding Call Notice.

 

(4) Exercise
Price Multiple. If Holder and any affiliates together would be regarded as beneficial owners (assuming conversion of all convertible
securities held by Holder and such affiliates and exercise in full of all Warrants held by such Holder and affiliates, without
giving effect to any Beneficial Ownership Limitation applicable to this Warrant or such convertible securities), of more than
two percent (2.0%) of the outstanding shares of Common Stock of the Company as of the Issue Date (Holder, in such circumstances
referred to as a “2% Holder”), then a Call Notice may be given by the Company only within five (5) Trading
Days after any thirty (30) consecutive Trading Day period during which the VWAP of the Common Stock as reported for the Principal
Market is not less than two hundred and fifty percent (250%) of the Exercise Price then in effect for twenty-five (25) out of
such thirty (30) consecutive Trading Day period. If Holder is not a 2% Holder as of the Issue Date, then a Call Notice may be
given by the Company only within ten (10) Trading Days after any twenty (20) consecutive Trading Day period during which the VWAP
of the Common Stock as reported for the Principal Market is not less than two hundred and fifty percent (250%) of the Exercise
Price in effective for ten (10) out of such twenty (20) consecutive Trading Day period.

 

(5) Compliance
with Call Notice. During the Call Period, the Holder shall exercise this Warrant and purchase the Called Warrant Shares as
provided herein. If the Holder fails to timely exercise the Warrant for a number of Warrant Shares equal to number of Called Warrant
Shares during the Call Period, the Company’s sole remedy shall be to cancel an amount of called Warrant Shares equal to
such shortfall, with the Warrant no longer being exercisable with respect to such Warrant Shares (for avoidance of doubt, such
remedy shall be available if, and only if, the Trigger Condition relied upon for the Warrant Call continues to apply through the
entirety of the Call Period). The “Call Period” shall be a period of thirty Trading Days following the Call
Date, provided the Call Period will be extended for one Trading Day for each Trading Day during the Call Period during which the
VWAP of the Common Stock as reported for the Principal Market is less than two hundred and twenty-five percent (225%) of the Exercise
Price then in effect.

 

(6) Notice
to Other Holders. Unless otherwise agreed to by the Holder of this Warrant, a Call Notice must be given to all other Warrant
Holders in proportion to the amounts of Warrant Shares which may be purchased by such Holders in accordance with the Warrants
held by each, without giving effect to the Beneficial Ownership Limitation.

 

Section
3. Certain Adjustments.

 

a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions of shares of its Common Stock to the record holders of Common Stock (which, for avoidance
of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant or pursuant to any
of the other Transaction Documents), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii)
combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv)
issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise
Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately
adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged in the case of an exercise for Common Stock
only. In the event that any adjustment of the Exercise Price required herein results in a fraction of a cent, the Exercise Price
shall be rounded down to the nearest one hundredth of a cent. Any adjustment made pursuant to this Section 3(a) shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and
shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

    	 	 8	 

    	 

    

 

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

 

c) Pro
Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common
Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security of the Company other than the Common Stock (which shall be subject to Section 3(b))
(a “Distribution”), then in each such case the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including, without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation
in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution would
result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such
Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to
such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). To the extent that this
Warrant has not been exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for
the benefit of the Holder until the Holder has exercised this Warrant.

 

    	 	 9	 

    	 

    

 

d) Fundamental Transaction.
If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions
effects any merger or consolidation of the Company with or into another Person pursuant to which the shares of capital stock of
the Corporation outstanding immediately prior to such merger or consolidation are converted into or exchanged for shares of another
corporation or entity and represent, or are converted into or exchanged for equity securities that represent, immediately following
such merger or consolidation, less than a majority, by voting power, of the equity securities of (1) the surviving or resulting
party or (2) if the surviving or resulting party is a wholly owned subsidiary of another party immediately following such merger
or consolidation, the parent of such surviving or resulting party, (ii) the Company, directly or indirectly, effects any sale of
all or substantially all of its assets in one or a series of related transactions and the consideration is distributed to holders
of Common Stock, (iii) any tender offer or exchange offer by the Company is completed pursuant to which holders of Common Stock
are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders
of 50% or more of the outstanding Common Stock, (iv) the Company effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates
a stock or share purchase agreement with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement)
(each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have
the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence
of such Fundamental Transaction, (without regard to the applicable of Section 2(c) nor any limitation in Section 2(e) on the exercise
of this Warrant) the number of shares of common stock of the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable by holders
of Common Stock as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the
exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction.

    	 	 10	 

    	 

    

 

Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction,
(2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the 1934 Act, or (3) a Fundamental Transaction described
in clause “(i)” of the first sentence above and where, pursuant to the merger, the stockholders of the Company will
receive securities of the acquiring person or entity and such securities of such person or entity are not traded on a national
securities exchange or trading market (with such exchange or market, including, without limitation, the Nasdaq Global Select Market,
the Nasdaq Global Market, or the Nasdaq Capital Market, The New York Stock Exchange, Inc., the NYSE or Amex), the Company or any
Successor Entity (as defined below) shall, at the Holder’s option which shall be exercised as of the consummation of the
Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder concurrently with the consummation of the
Fundamental Transaction for each Warrant Share that would be issuable upon such exercise immediately prior to the occurrence of
such Fundamental Transaction (without regard to the application of Section 2(c) nor any limitation in Section 2(e) on the exercise
of this Warrant), the higher of (i) an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of
this Warrant on the date of the consummation of such Fundamental Transaction, or (ii) the positive difference between the cash
per share paid in such Fundamental Transaction minus the then in effect Exercise Price. “Black Scholes Value” means
the value of the unexercised portion of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction
for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to
the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an
expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the
Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per
share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash
consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the time between
the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. In the event of a Fundamental
Transaction described in clause “(i)” of the first sentence above, the Company shall cause any successor entity in
such a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in
writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions
of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by
the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to
the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise
price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of
the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number
of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately
prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder.
Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring
to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company
and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect
as if such Successor Entity had been named as the Company herein.

 

    	 	 11	 

    	 

    

 

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

 

f) Notice to Holder.

 

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

 

ii. If (A) the approval of
any stockholders of the Company shall be required in connection with any reclassification of the Common Stock (other than stock
splits or reverse stock splits), any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities
(other than stock splits or reverse stock splits), cash or property, or (B) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, to the extent that such information constitutes
material non-public information (as determined in good faith by the Company) the Company shall follow the procedure described in
Section 7.5 of the Purchase Agreement and shall deliver to the Holder, at least 10 days prior to the effective date hereinafter
specified, a notice stating the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or
in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice and shall
not be deemed to be a material breach of this Warrant unless such failure adversely affected Holder’s rights with respect
to the Warrant. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice
to the effective date of the event triggering such notice, except as may otherwise be expressly set forth herein.

 

g) Adjustments. In the
event that at any time, as a result of an adjustment made pursuant to this Section 3, the Holder shall, upon exercise of this Warrant,
become entitled to receive securities or assets (other than Common Stock) then, wherever appropriate, all references herein to
shares of Common Stock shall be deemed to refer to and include such shares and/or other securities or assets; and thereafter the
number of such shares and/or other securities or assets shall be subject to adjustment from time to time in a manner and upon terms
as nearly equivalent as practicable to the provisions of this Section 3. Any adjustment made herein that results in a decrease
in the Exercise Price shall also effect a proportional increase in the number of shares of Common Stock into which this Warrant
is exercisable.

 

    	 	 12	 

    	 

    

 

Section 4. Transfer
of Warrant.

 

a) Transferability. Subject
to compliance with any applicable securities laws and the provisions of the Purchase Agreement, this Warrant and all rights hereunder
(including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially
in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver
a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified
in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new
holder for the purchase of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

Section 5. Miscellaneous.

 

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

 

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

 

    	 	 13	 

    	 

    

 

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

 

d) Authorized Shares.

 

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

 

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

 

    	 	 14	 

    	 

    

 

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

 

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

 

f) Restrictions. The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered for resale or if Holder
does not utilize cashless exercise and Rule 144 is available, will have restrictions upon resale imposed by state and federal securities
laws.

 

g) Nonwaiver and Expenses.
No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant
or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results
in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs
and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred
by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder,
if Holder is the prevailing party in any such action.

 

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

 

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

 

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

 

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

 

    	 	 15	 

    	 

    

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

    	 	 16	 

    	 

    

 

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

 

	 	ADAMIS PHARMACEUTICALS CORPORATION
	 	 	 
	 	By:	  
	 	Name:	 
	 	Title:	 

 

   

     

     

    

 

NOTICE OF EXERCISE

 

To:
ADAMIS PHARMACEUTICALS CORPORATION

 

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

 

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

 

[   ] in lawful money
of the United States; or

 

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

  

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

 

	 	 	 

 

(4) After
giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

The Warrant Shares shall be delivered to the
following DWAC Account Number or by physical delivery of a certificate to:

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

  

 

[SIGNATURE
OF HOLDER]

 

 

Name of Investing Entity: _______________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: _________________________________________________ 

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________ 

Date: _______________________________________________________________________________________

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

ADAMIS
PHARMACEUTICALS CORPORATION

 

FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Dated: ______________,
_______	 

 

 

	 	Holder’s Signature: 	 	 
	 	 	 	 
	 	Holder’s Address: 	 	 
	 	 	 	 
	 	 	 	 

 

 

Signature Guaranteed: ___________________________________________

 

NOTE: The signature to this Assignment Form
must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

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