Document:

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of November 20, 2012, by and among InsPro Technologies
Corporation, a Delaware corporation (the “Company”), and the investors signatory hereto (each a “Investor”
and collectively, the “Investors”).

 

This Agreement is made
pursuant to the Securities Purchase Agreement, dated as of the date hereof, among the Company and the Investors (the “Purchase
Agreement”).

 

In consideration of
the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and the Investors hereby agree as follows, with the intent to be legally bound hereby:

 

1.            Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given
such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the respective meanings set forth
in this Section 1:

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Company.

 

“Conversion
Shares” means the shares of Common Stock issuable upon conversion of the Preferred Stock.

 

“Demand Notice”
has the meaning set forth in Section 2(a) of this Agreement.

 

“Effective
Date” means the date that the Registration Statement filed pursuant to Section 2(a), 2(b) or 2(c) of this Agreement
is first declared effective by the Commission.

 

“Effectiveness
Date” means: (a) with respect to the initial Registration Statement required to be filed under Section 2(a) to cover
the resale by the Holders of the Registrable Securities the 60th calendar day after the Filing Date (or the 120th calendar day
after the Filing Date in the event that such Registration Statement is subject to review by the Commission) and (b) with respect
to any additional Registration Statements that may be required pursuant to Section 2(b) or 2(c) hereof, the 90th calendar day
following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement
is required under such Section (or the 150th calendar day after such date in the event that such Registration Statement is subject
to review by the Commission).

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

    	 

    	 

    

 

“Excluded Registration”
means (i) a registration relating solely to the sale of securities to employees of the Company or a subsidiary of the Company
pursuant to a stock option, stock purchase, or similar plan or (ii) a registration relating to a Rule 145 transaction.

 

“Filing Date”
means, with respect to the initial Registration Statement required to be filed to cover the resale by the Holders of the Registrable
Securities, 30 days following the receipt of a Demand Notice.

 

“Holder”
or “Holders” means an Investor or Investors (as the case may be), or any transferee or assignee of any
Registrable Securities, to whom an Investor assigns its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with the Purchase Agreement and any transferee or assignee thereof to whom a transferee or assignee
of any Registrable Securities assigns its rights under this Agreement and who agrees to become bound by the provisions of this
Agreement in accordance with the Purchase Agreement.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

"Preferred Stock"
means shares of Series B Convertible Preferred Stock, $0.001 par value per share, of the Company.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by such Registration Statement, and all other amendments and supplements
to such prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated
by reference in such prospectus.

 

“register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements (as defined below) in compliance with the Securities Act and pursuant to Rule 415 and the
declaration of effectiveness of such Registration Statement(s) by the Commission.

 

“Registrable
Securities” means (i) the Shares, (ii) the Conversion Shares (iii) the Warrant Shares and (iv) any securities issued
or issuable with respect to the securities referenced in (i), (ii), or (iii) above, including, without limitation, as a result
of any stock dividend, stock split or other distribution, recapitalization, merger, consolidation, reorganization, exchange or
similar event or otherwise (without regard to any limitations on exercises of the Warrants).

 

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“Registration
Statement” means the initial registration statement required to be filed under the Securities Act in accordance with
Section 2(a) and any additional registration statement(s) required to be filed under Sections 2(b) or 2(c), including (in each
case) the Prospectus, amendments and supplements to such registration statements or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such
registration statements.

 

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

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Shares”
means the shares of Preferred Stock issued or issuable to the Investors by the Company pursuant to the Purchase Agreement.

 

“Warrants”
means the warrants issued or issuable to the Investors pursuant to the Purchase Agreement.

 

“Warrant Shares”
means the shares of Common Stock issued or issuable upon exercise of the Warrants.

 

2.            Demand
Registration.

 

(a)          If
at any time after the date of this Agreement the Company receives a request from a Holder of Registrable Securities that the Company
file a Registration Statement on Form S-1 covering the resale of the Registrable Securities held by such Holder (a "Demand
Notice"), then the Company shall (i) within five (5) days after the date it receives the Demand Notice, give notice thereof
to all other Holders and (ii) as soon as reasonably practicable, but in no event later than the Filing Date, file with the Commission
a Registration Statement on Form S-1 covering the resale of all Registrable Securities of the Holder that provided the Demand
Notice and any additional Registrable Securities requested by the other Holders to be included therein, as specified by each such
other Holder within twenty (20) days after such Holder has received notice from the Company pursuant to clause (i); provided
that such Registration Statement need not include Registrable Securities already covered by an existing and effective Registration
Statement The Registration Statement shall be for an offering to be made on a continuous basis pursuant to Rule 415. The Registration
Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review
of such Registration Statement) the “Plan of Distribution” attached hereto as Annex A. The Company shall use
its reasonable best efforts to cause the Registration Statement to be declared effective under the Securities Act as soon as practicable
but, in any event, no later than the Effectiveness Date, and shall use its reasonable best efforts to keep the Registration Statement
effective under the Securities Act until the date when all Registrable Securities covered by the Registration Statement have been
sold or may be sold without volume restrictions pursuant to Rule 144(b)(i) promulgated under the Securities Act (the “Effectiveness
Period”).

 

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(b)          If
for any reason the Commission does not permit all of the Registrable Securities requested by a Holder to be included in the Registration
Statement filed pursuant to Section 2(a), or for any other reason any such Registrable Securities are not permitted by the Commission
to be included on a Registration Statement filed under this Agreement, then the Company shall prepare and file as soon as possible
after the date on which such filing may be made, an additional Registration Statement covering the resale of all of the Registrable
Securities requested by Holder not already covered by an existing and effective Registration Statement for an offering to be made
on a continuous basis at the market pursuant to Rule 415 or otherwise as may be acceptable to a Holder
whose Registrable Securities were not registered for resale. Each such Registration Statement shall contain (except if
otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement) the
“Plan of Distribution” attached hereto as Annex A. The Company shall use its reasonable best efforts to cause
each such Registration Statement to be declared effective under the Securities Act as soon as possible but, in any event, no later
than its Effectiveness Date, and shall use its reasonable best efforts to keep such Registration Statement effective under the
Securities Act during the entire Effectiveness Period.

 

(c)          If:
(i) a Registration Statement covering all of the Registrable Securities required to be covered thereby is not filed by the Company
with the Commission on or prior to the Filing Date (or the applicable filing date if the Registration Statement is not the initial
Registration Statement required to be filed under Section 2(a)), (ii) a Registration Statement covering all of the Registrable
Securities is not declared effective by the Commission on or prior to its required Effectiveness Date (it being understood that
if the Company shall not have filed a “final” prospectus for the Registration Statement with the SEC under Rule 424(b)
in accordance with Section 2(f) below (whether or not such a prospectus is technically required by such rule), the Company shall
not be deemed to have satisfied this clause (ii)), (iii) the Company fails to file a request for the acceleration of the Effectiveness
Date of the applicable Registration Statement as required by Section 3(c), (iv) there is a suspension or delisting of the Company’s
Common Stock (or the Company fails to timely list all the Registrable Securities) on its principal trading market or exchange,
(v) after its Effective Date, other than during an Allowable Grace Period (as defined below), such Registration Statement ceases
to be effective and available for use by the Holders as to any Registrable Securities to which it is required to cover at any
time prior to the expiration of its Effectiveness Period for up to no more than 3 consecutive Trading Days (or 20 Trading Days
in any 12 month period in the aggregate) (any such failure or breach being referred to as an “Event,”
and for purposes of clauses (i)-(iv), on the date on which such Event occurs, or for purposes of clause (v), the date on which
the Allowable Grace Period or other specified period is exceeded, being referred to as “Event Date”), then,
in addition to any other rights available to the Holders under this Agreement or under applicable law: (x) on each such Event
Date the Company shall pay to each Holder an amount in cash, as partial damages and not as a penalty, equal to 1.5% of the aggregate
Investment Amount paid by such Holder pursuant to the Purchase Agreement; and (y) on each 30-day anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash, as partial damages and not as a penalty, equal to 1.5% of the aggregate Investment Amount paid
by such Holder pursuant to the Purchase Agreement. The partial damages pursuant to the terms hereof shall apply on a pro rata
basis for any portion of a month prior to the cure of an Event. Notwithstanding the foregoing, in no event shall the partial damages
under this Section 2(d) exceed an amount equal to 20% of the aggregate Investment Amounts.

 

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(d)          Notwithstanding
anything to the contrary contained in this Agreement, in the event the staff of the Commission (the “Staff”)
or the Commission requires any Holder seeking to sell securities under a Registration Statement filed pursuant to this Agreement to
be specifically identified as an “underwriter” in order to permit such Registration Statement to become
effective, and such Holder does not consent to being so named as an underwriter in such Registration Statement, then in each
such case, the Company shall reduce the total number of Registrable Securities to be registered on behalf of such Holder, until
such time as the Staff or the Commission does not require such identification or until such Holder accepts such identification
and the manner thereof. Any reduction pursuant to this paragraph will first reduce all Registrable Securities other
than those issued pursuant to the Purchase Agreement and in the event of any reduction pursuant to this paragraph, no Holder shall
have any claim against the Company as a result of such reduction and any Event or other delay or breach of this Agreement occurring
primarily due to such action by the Staff or the Commission and any such relating reduction shall not require the Company to pay
any partial damages pursuant to Section 2(d) hereof or otherwise provide the basis for any claim by any Holder against the
Company pursuant to the Transaction Documents (it being understood that the foregoing does not constitute a waiver of Section
3.2(f) of the Securities Purchase Agreement by any Holder or the obligations of the Company under this paragraph and elsewhere
in relation thereto). In the event of any reduction in Registrable Securities pursuant to this paragraph, an affected
Holder shall have the right to require, upon delivery of a written request to the Company signed by the Holder, the Company to
file a registration statement within 30 days of such request (subject to any restrictions imposed by Rule 415 or required by
the Staff or the Commission) for re-sale by such Holder in a manner acceptable to such Holder, and the Company shall following
such request cause to be and keep effective such registration statement in the same manner as otherwise contemplated in
this Agreement for registration statements hereunder, in each case until such time as: (i) all Registrable Securities held
by such Holder have been registered pursuant to an effective Registration Statement in a manner acceptable to such Holder or
(ii) the Registrable Securities may be resold by such Holder without restriction (including volume limitations) pursuant
to Rule 144(b)(i) of the Securities Act (taking account of any Staff position with respect to “affiliate” status)
or (iii) the Holder agrees to be named as an underwriter in any such Registration Statement in a manner acceptable to Holder as
to all Registrable Securities held by such Holder and that have not theretofore been included in a Registration Statement under
this Agreement (it being understood that the special demand right under this sentence may be exercised by a Holder multiple times
and with respect to limited amounts of Registrable Securities in order to permit the re-sale thereof by such Holder as contemplated
above).

 

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(e)          In
the event that Form S-1 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall
use reasonable best efforts to (i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable
to the Holders and (ii) undertake to register the Registrable Securities on Form S-1 as soon as such form is available, provided
that the Company shall use reasonable best efforts to maintain the effectiveness of the Registration Statement then in effect
until such time as a Registration Statement on Form S-1 covering the Registrable Securities has been declared effective by the
Commission. In the event the Company becomes eligible to register the Registrable Securities on Form S-3, the Company shall use
reasonable best efforts to promptly register the Registrable Securities on Form S-3, provided that the Company shall use reasonable
best efforts to maintain the effectiveness of the Registration Statement(s) then in effect until such time as a Registration Statement
on Form S-3 covering the Registrable Securities has been declared effective by the Commission.

 

(f)          By
5:30 p.m. on the Trading Day immediately following the Effective Date of each Registration Statement, the Company shall file with
the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant
to such Registration Statement.

 

3.            Company
Registration.

 

(a)          If
the Company proposes to register (including for this purpose, a registration effected by the Company for stockholders other than
the Holders), any of its securities under the Securities Act in connection with the offering of such securities for cash (other
than an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of the proposed registration.
Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject
to the provisions of Section 3(b), cause to be registered all of the Registrable Securities that each such holder has requested
be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 3 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities
in such registration. The expenses of such withdrawn registration shall be borne by the Company.

 

(b)          
If a registration under Section 3(a) involves an underwritten offering by the Company, the Company shall not be required to include
any Holder's Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon
between the Company and its underwriters, and then only in such quantity as the underwriters determine will not jeopardize the
success of the offering by the Company. If the total number of securities, including Registrable Securities, requested by stockholders
to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters
determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that
number of such securities, including Registrable Securities, which the underwriters and the Company determine will not jeopardize
the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered
can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among
the selling Holders in proportion (as nearly as practicable) to the number of Registrable Securities owned by each selling Holder
or in such other proportions as shall mutually be agreed to by all such selling Holders.

 

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4.            Registration
Procedures

 

In connection with the
Company’s registration obligations hereunder, the Company shall:

 

(a)          Not
less than ten (10) Trading Days prior to the filing of a Registration Statement and not less than five (5) Trading Days prior
to the filing of any related Prospectus or any amendment or supplement thereto (except for any amendment or supplement thereto
related to the filing of an Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar
or successor reports), the Company shall furnish to the Holders copies of such document, as proposed to be filed in substantially
final form. The Company shall (A) permit each Holder to review and comment upon (i) each Registration Statement at least five
(5) Trading Days prior to its filing with the Commission, provided that such comments are received by the Company no later than
three (3) Trading Days after providing such Registration Statement for review, and (ii) all amendments and supplements to all
Registration Statements (except for any amendment or supplement thereto related to the filing of an Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable number
of days prior to their filing with the Commission, provided that such comments are received by the Company no later than three
(3) Trading Days after providing such amendment or supplement for review, and (B) shall consider all such reasonable comments
in good faith.

 

(b)          
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement
and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective
as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the Commission such additional
Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause
the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended
to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission
with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders
true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertain
to the Holders as a Selling Stockholder or to the Plan of Distribution, but would not result in the disclosure to the Holders
of material, non-public information concerning the Company or any of its subsidiaries; and (iv) comply in all material respects
with the provisions of the Securities Act and the Exchange Act with respect to the Registration Statements and the disposition
of all Registrable Securities covered by each Registration Statement. In the case of amendments and supplements to a Registration
Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 4(b)) by reason of the
Company filing a report on Form 10-Q or Form 10-K or any analogous report under the Exchange Act, the Company shall have incorporated
such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the
Commission on the same day on which the Exchange Act report is filed, if practicable. The Company shall ensure that each Registration
Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein
(in the case of prospectuses, in the light of the circumstances in which they were made) not misleading.

 

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(c)          Notify
the Holders' Counsel (which may occur electronically and any other notifications or documents required to be provided to a Holder
or any other party hereunder may be provided electronically pursuant to the notice provisions contained herein) as promptly as
reasonably possible and (if requested by any such Person) confirm such notice in writing no later than one three (3) Trading Days
following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement
is proposed to be filed or is filed; (B) when the Commission notifies the Company whether there will be a “review”
of a Registration Statement or post-effective amendment and whenever the Commission comments in writing on such Registration Statement
or post-effective amendment (the Company shall provide true and complete copies thereof and all written responses thereto to each
of the Holders, but not information which the Company believes in good faith would constitute material, non-public information);
and (C) with respect to each Registration Statement or any post-effective amendment, when the same has become effective; (ii)
of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information that pertains to the Holders as a Selling Stockholder or to the Plan of
Distribution; (iii) of the issuance by the Commission of any stop order or other suspension of the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to
such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
The Company shall submit to the Commission, within two (2) Trading Days after the date that the Company learns that no review
of a particular Registration Statement will be made by the Staff or the Commission or that such Staff has no further comments
on a particular Registration Statement (as the case may be); provided that the financial information included in such Registration
Statement meets all applicable SEC requirements.

 

(d)          Use
its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any stop order or other suspension
of the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practicable moment and each Holder
who holds Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt of actual
notice of the initiation or threat of any proceeding for such purpose.

 

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(e)          Furnish
to each Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all
exhibits to the extent requested by such Person (including those previously furnished) promptly after the filing of such documents
with the Commission.

 

(f)          Promptly
deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses (including each form of prospectus)
and each amendment or supplement thereto as such Persons may reasonably request from time to time and such other documents as
such Holder may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned
by such Holder. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of
the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any
amendment or supplement thereto.

 

(g)          Prior
to any resale of Registrable Securities, use its reasonable best efforts to (i) register or qualify or cooperate with the selling
Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of those specific jurisdictions within the United States which
the Holders may reasonably request from time to time in writing to the Company, (ii) keep each such registration or qualification
(or exemption therefrom) effective during the Effectiveness Period and (iii) do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements;
provided, that the Company shall not be required to qualify generally to do business in any jurisdiction
where it is not then so qualified or subject the Company to any material tax in any such jurisdiction where it is not then so
subject. The Company shall promptly notify each Holder of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or Blue
Sky laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding
for such purpose.

 

(h)          Cooperate
with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered
to a transferee pursuant to the Registration Statements, which certificates shall be free, to the extent permitted by the Purchase
Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in
such names as any such Holders may request.

 

(i)          Upon
the occurrence of any event contemplated by Section 4(c)(v), as promptly as reasonably possible, prepare a supplement or amendment,
including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter
delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading.

 

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(j)          Each
Holder agrees to furnish to the Company a completed Selling Questionnaire in the form attached to this Agreement as Annex B
(a “Selling Holder Questionnaire”). The Company shall not be required to include the Registrable Securities
of a Holder in a Registration Statement and shall not be required to pay any partial or other damages under Section 2(d) hereof
to such Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least five (5) Trading Days
prior to the Filing Date).

 

(k)          If
requested by a Holder, the Company shall as soon as practicable after receipt of notice from such Holder and subject to Section
3(p) hereof, use reasonable best efforts to (i) incorporate in a prospectus supplement or post-effective amendment such information
as a Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price
being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all
required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement
if reasonably requested by a Holder holding any Registrable Securities.

 

(l)          The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such
Registrable Securities.

 

(m)          The
Company shall otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission
in connection with any registration hereunder. Within one (1) Trading Day after a Registration Statement which covers Registrable
Securities is declared effective by the Commission, the Company shall deliver, and shall cause legal counsel for the Company to
deliver, to the transfer agent for such Registrable Securities (with copies to the Holders whose Registrable Securities are included
in such Registration Statement) confirmation that such Registration Statement has been declared effective by the Commission in
a customary form.

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(p)          Notwithstanding
anything to the contrary herein (but subject to the last sentence of this Section 4(p), at any time after the Effective Date of
the initial Registration Statement required to be filed hereunder pursuant to Section 2(a), the Company may delay the disclosure
of material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith determination
of the Board of Directors of the Company, in the best interest of the Company and is not, in the opinion of Board of Directors
of the Company, after consultation with the Company’s counsel, otherwise required (a “Grace Period”);
provided, that the Company shall promptly (i) notify the Holders in writing of the existence of material, non-public information
giving rise to a Grace Period (provided that in each notice the Company will not disclose the content of such material, non-public
information to the Holders) and the date on which the Grace Period will begin, and (ii) notify the Holders in writing of
the date on which the Grace Period ends; and, provided that no Grace Period shall exceed thirty (30) consecutive days and during
any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of sixty (60) days and the first
day of any Grace Period must be at least two (2) Trading Days after the last day of any prior Grace Period (each, an “Allowable
Grace Period”); provided further, that no Allowable Grace Period may exist during the first thirty (30) Trading Days
after the Effective Date of the initial Registration Statement required to be filed hereunder pursuant to Section 2(a). For purposes
of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Holders receive the
notice referred to in clause (i) and shall end on and include the later of the date the Holders receive the notice referred to
in clause (ii) and the date referred to in such notice. Notwithstanding anything to the contrary contained in this Section 4(p),
the Company shall cause its transfer agent to deliver shares of Common Stock to a transferee of a Holder in accordance with the
terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which such Holder has entered
into a contract for sale, and delivered a copy of the prospectus included as part of the applicable Registration Statement (to
the extent required under applicable securities laws), prior to such Holder’s receipt of the notice of a Grace Period and
for which such Holder has not yet settled.

 

(q)          At
the reasonable request of any Holder, the Company shall use its reasonable best efforts to furnish to such Holder, on the date
of the effectiveness of the Registration Statement or any additional registration statement required by the terms of this Agreement
and thereafter from time to time on such dates as a Holder may reasonably request (i) a letter, dated such date, from the Company's
independent certified public accountants in form and substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the Holders, and (ii) an opinion, dated as of such date, of counsel
representing the Company for purposes of such Registration Statement or such additional registration statement, in form, scope
and substance as is customarily given in an underwritten public offering, addressed to the Holders.

 

(r)          The
Company shall make available for inspection by (i) any Holder, (ii) legal counsel to any Holder and (iii) one firm of accountants
or other agents retained by the Holders (collectively, the "Inspectors"), all pertinent financial and other records,
and pertinent corporate documents and properties of the Company (collectively, the "Records"), as shall be reasonably
deemed necessary by each Inspector, and cause the Company's officers, directors and employees, and shall use its reasonable best
efforts to cause its counsel and the Company's independent certified public accountants to, supply all information which may be
necessary and any Inspector may reasonably request; provided, however, that prior to inspection, each Inspector shall agree to
hold in strict confidence and shall not make any disclosure (except to an Investor) or use of any Record or other information
which the Company determines in good faith to be confidential, pursuant to the terms of a Confidentiality Agreement in form and
substance reasonably satisfactory to the Company. Nothing herein shall be deemed to limit the Holders' ability to sell Registrable
Securities in a manner which is otherwise consistent with applicable laws and regulations.

 

    	-11-

    	 

    

 

(s)          If
requested by a Holder, the Company shall, within five days of receipt of notice from such Holder, (i) incorporate in a prospectus
supplement or post-effective amendment such information as an Investor reasonably requests to be included therein relating to
the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of
Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the
Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and
(iii) supplement or make amendments to any Registration Statement if reasonably requested by an Investor holding any Registrable
Securities.

 

(t)          The
Company shall make generally available to its security holders as soon as practical, but not later than 90 days after the close
of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of
Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter
next following the Effective Date of the Registration Statement or any additional registration statement required by the terms
of this Agreement.

 

5.            Registration
Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock
is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing
of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration
Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities
Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by
the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any audit and the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

 

    	-12-

    	 

    

 

6.            Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder,
the officers, directors, agents, investment advisors, partners, members, employees, agents and representatives of each of them,
each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and officers, directors, agents, investment advisors, partners, members, employees, agents and representatives of each such
controlling Person (each an “Indemnified Person”), to the fullest extent permitted by applicable law, from
and against any and all losses, claims, damages, liabilities, judgments, fines, penalties, charges, amounts paid in settlement,
costs and expenses, joint or several, (including, without limitation, reasonable out-of-pocket costs of preparation and reasonable
attorneys’ fees and expenses) (collectively, “Losses”), as incurred, arising out of or relating to (i)
any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form
of prospectus or in any amendment or supplement thereto, in any preliminary prospectus or in any filing made in connection with
the qualification of the offering under the securities or other Blue Sky laws of any jurisdiction in which Registrable Securities
are offered, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light
of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue
statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method
of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use
in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being
understood that the Holder has approved Annex A hereto for this purpose) or (2) in the case of an occurrence of an event
of the type specified in Section 4(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company
has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an
Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the
amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected and no grounds
for such Loss would have existed; or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange
Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to
the offer or sale of the Registrable Securities pursuant to a Registration Statement. The Company shall notify the Holders promptly
of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated
by this Agreement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
the Indemnified Person and shall survive the transfer of any of the Registrable Securities by any of the Holders.

 

(b)          Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder’s
failure to comply with the prospectus delivery requirements of the Securities Act to the extent applicable or (y) any untrue statement
of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or
supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein
or necessary to make the statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements
or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly
for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution
of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration
Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of
Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in
Section 4(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or
supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented
Prospectus the misstatement or omission giving rise to such Loss would have been corrected and no grounds for such Loss would
have existed. In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the
net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
The indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 6(d)
shall not apply to amounts paid in settlement of any Losses if such settlement is effected without the prior written consent of
the applicable Holder, which consent shall not be unreasonably withheld or delayed.

 

    	-13-

    	 

    

 

(c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall
be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that
such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

 

An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has
agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of
such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel
were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying
Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided
that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time
for all Indemnified Parties. The Indemnified Party shall reasonably cooperate with the Indemnifying Party in connection with any
negotiation or defense of any such action or Losses by the Indemnifying Party and shall furnish to the Indemnifying Party all
information reasonably available to the Indemnified Party which relates to such action or Losses. The Indemnifying Party shall
keep the Indemnified Party reasonably apprised at all times as to the status of the defense or any settlement negotiations with
respect thereto. The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, which consent shall not be unreasonably withheld, effect any settlement of any pending Proceeding in respect
of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party
from all liability on claims that are the subject matter of such Proceeding.

 

    	-14-

    	 

    

 

All reasonable out-of-pocket
fees and expenses of the Indemnified Party (including reasonable out-of-pocket fees and expenses to the extent incurred in connection
with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the
Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is
finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

 

No Person involved in
the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) in connection with such sale shall be entitled to indemnification from any Person involved in such sale of Registrable Securities
who is not guilty of fraudulent misrepresentation.

 

The indemnity agreements
contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party against the Indemnifying
Party or others, and (ii) any liabilities the Indemnifying Party may be subject to pursuant to the law.

 

(d)          Contribution.
If a claim for indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid
or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in
such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates
to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable out-of-pocket
attorneys’ fees or expenses or other reasonable out-of-pocket fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided
for in this Section was available to such party in accordance with its terms.

 

    	-15-

    	 

    

 

The parties hereto agree
that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by pro rata allocation or
by any other method of allocation that does not take into account the equitable considerations referred to in the immediately
preceding paragraph. Notwithstanding the provisions of this Section 6(d), (i) no Holder shall be required to contribute, in the
aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the
Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required
to pay, or would otherwise be required to pay under Section 6(b), by reason of such untrue or alleged untrue statement or omission
or alleged omission; (ii) no contribution shall be made under circumstances where the maker would not have been liable for indemnification
under the fault standards set forth in Section 6 hereof and (iii) no Person involved in the sale of Registrable Securities which
Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with
such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty
of fraudulent misrepresentation.

 

The indemnity and contribution
agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

 

7.            Reports
Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities
Act or any other similar rule or regulation of the Commission that may at any time permit the Holders to sell securities of the
Company to the public without registration, the Company agrees to use reasonable best efforts to:

 

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)          file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit
the Company’s obligations under the Purchase Agreement) and the filing of such reports and other documents is required for
the applicable provisions of Rule 144; and

 

(c)          furnish
to each Holder so long as such Holder owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy
of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company if such
reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested to permit the Holders
to sell such securities pursuant to Rule 144 without registration.

 

    	-16-

    	 

    

 

8.            Miscellaneous.

 

(a)          Remedies.
In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the Company,
as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery
of damages, will be entitled to specific performance of its rights under this Agreement (without the obligation to post a bond
or any other type of security). The Company and each Holder agree that monetary damages would not provide adequate compensation
for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that,
in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law
would be adequate.

 

(b)          No
Piggyback on Registrations. Except as set forth on Schedule 8(b) attached hereto, neither the Company nor any of its security
holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in a Registration Statement
required to be filed hereunder other than the Registrable Securities, provided that no securities set forth on Schedule 8(b) may
be included in a Registration Statement if including any such securities would adversely affect any of the Holders. The Company
shall not after the date hereof until the initial Effective Date enter into any agreement providing any such right to any of its
security holders.

 

(c)          Compliance.
Each Holder covenants and agrees that it will comply with any prospectus delivery requirements of the Securities Act as applicable
to it and otherwise comply with all applicable securities laws in connection with sales of Registrable Securities pursuant to
the Registration Statement.

 

(d)          Discontinued
Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the
Company of the occurrence of any event of the kind described in clauses (ii) through (v) of Section 4(c), such Holder will forthwith
discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional
or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.
The Company may provide appropriate stop orders to enforce the provisions of this paragraph. Notwithstanding anything to the contrary
in this Section 7(d), the Company shall cause its transfer agent to deliver shares of Common Stock to a transferee of a Holder
in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which
such Holder has entered into a contract for sale, and delivered a copy of the prospectus included as part of the applicable Registration
Statement (to the extent required under applicable securities laws) prior to such Holder’s receipt of a notice from the
Company of the happening of any event of the kind described in Section 4(c)(ii)-(v).

 

(e)          Amendments
and Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company
and the Holders of no less than a majority of the outstanding Registrable Securities; provided that any party shall have the right
to provide a waiver with regard to itself. No waiver of any default with respect to any provision, condition or requirement of
this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder
in any manner impair the exercise of any such right.

 

    	-17-

    	 

    

 

(f)          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing or
via e-mail and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile or e-mail at the facsimile telephone number or e-mail address, as applicable, specified in this Section
prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile or e-mail at the facsimile telephone number or e-mail address, as applicable, specified
in this Agreement later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York City time) on such
date, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service (with next
day delivery specified), or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for
such notices and communications shall be as follows:

 

	If to the Company:	InsPro Technologies Corporation
	 	150 N. Radnor-Chester Road, Radnor, PA 19087
	 	Facsimile: (484) 654-2209
	 	Attn: Vice President and Controller
	 	 
	With a copy to:	Morgan, Lewis & Bockius LLP
	 	1701 Market Street, Philadelphia, PA 19103
	 	Facsimile: (215) 963-5001
	 	Attn: James W. McKenzie, Jr., Esq.
	 	 
	If to an Investor:	To the address, e-mail address or facsimile number set forth 

    under such Investor’s name
	 	on the signature pages hereof;

 

If to any other Person who
is then the registered Holder:

 

	 	To the address, e-mail address or facsimile number of such Holder as it appears in
    the stock transfer books of the Company

 

or such other address, e-mail address
or facsimile number as may be designated hereafter, in the same manner, by such Person.

 

(g)          Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without
the prior written consent of each Holder. Each Holder may assign their respective rights hereunder in the manner and to the Persons
as permitted under the Purchase Agreement.

 

    	-18-

    	 

    

 

(h)          Execution
and Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed
to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature
is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose
behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.
Each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,”
“includes,” “include” and words of like import shall be construed broadly as if followed
by the words “without limitation.” The terms “herein,” “hereunder,” “hereof”
and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

(i)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles
of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of Wilmington, State of Delaware,
(the “Delaware Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the
Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally
subject to the jurisdiction of any Delaware Court, or that such Proceeding has been commenced in an improper or inconvenient forum.
Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at
the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby. If either party shall commence a Proceeding to enforce any provisions of this Agreement, then the prevailing party in
such Proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such Proceeding.

 

(j)          Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

(k)          Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable.

 

    	-19-

    	 

    

 

(l)            Headings.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(m)          Entire
Agreement. This Agreement, the other Transaction Documents (as defined in the Purchase Agreement), the schedules and exhibits
attached hereto and thereto and the instruments referenced herein and therein constitute the entire agreement among the parties
hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement, the other Transaction Documents, the schedules and
exhibits attached hereto and thereto and the instruments referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

(n)          Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder under this Agreement and the other Transaction
Documents are several and not joint with the obligations of any other Holder, and no Holder shall be responsible in any way for
the performance of the obligations of any other Holder under this Agreement or any other Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption
that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions
contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Holders are not acting in concert
or as a group with respect to such obligations or the transactions contemplated by this Agreement or any of the other the Transaction
Documents. Each Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights
arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Holder to
be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations
of the Company contained herein was solely in the control of the Company, not the action or decision of any Holder, and was done
solely for the convenience of the Company and not because it was required or requested to do so by any Holder.

 

(o)          No
Strict Construction. 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.

 

(p)          No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than
the Persons referred to in Section 5 hereof.

 

(q)          Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

[signature page follows]

 

    	-20-

    	 

    

 

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

 

	 	INSPRO TECHNOLOGIES CORPORATION
	 	 	 
	 	By:	 	 
	 	Name:	Anthony R. Verdi
	 	Title:	Chief Executive Officer, Chief Operating
	 	 	Officer and Chief Financial Officer

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF INVESTORS TO FOLLOW]

 

[Signature Page to Registration Rights
Agreement]

 

    	 

    	 

    

 

	 	The Co-Investment Fund II, L.P.
	 	 
	 	By:  Co-Invest Management II, L.P., its General Partner
	 	By:  Co-Invest II Capital Partners, Inc., its General Partner
	 	 
	 	By:	 
	 	Name: Donald R. Caldwell
	 	Title:  Chairmen of the Board of Directors
	 	and Chief Executive Officer
	 	 
		ADDRESS FOR NOTICE
	 	 
	 	c/o Cross Atlantic Capital Partners
	 	Five Radnor Corporate Center, Suite 555
	 	Radnor, PA 19087
	 	Facsimile No.: 610-971-2062
	 	Attn:  Donald R. Caldwell

 

By providing an e-mail address, the party
listed above hereby consents to electronic delivery of the documents and notices required to be delivered pursuant to this Agreement.         

 

[Signature Page to Registration Rights
Agreement]

 

    	 

    	 

    

 

	 	AZEEZ INVESTORS, LLC
	 	 
	 	By:	 	 
	 	Name:
	 	Title:
	 	 
	 	ADDRESS FOR NOTICE
	 	 
	 	2187 Marseille Dr.
	 	Palm Beach Gardens, FL 33410
	 	 
	 	Facsimile No.: 561-694-0073

 

By providing an e-mail address, the party listed above hereby
consents to electronic delivery of the documents and notices required to be delivered pursuant to this Agreement.

 

[Signature Page to Registration Rights
Agreement]

 

    	 

    	 

    

 

	 	The Scarpa Family Trust, 2005
	 	 
	 	By:	 	 
	 	Name:
	 	Title:
	 	 
	 	ADDRESS FOR NOTICE
	 	 
	 	c/o Unitel
	 	3122 Fire Road
	 	Suite 200
	 	Egg Harbor Township, NJ  08234
	 	 
	 	Facsimile No.: ___________
	 	*E-mail:  _______________

 

By providing an e-mail address, the party
listed above hereby consents to electronic delivery of the documents and notices required to be delivered pursuant to this Agreement.         

 

[Signature Page to Registration Rights
Agreement]

 

    	 

    	 

    

 

Annex A

 

Plan of Distribution

 

We are registering the shares offered by
this prospectus on behalf of the selling stockholders. The selling stockholders, which as used herein includes donees, pledgees,
transferees or other successors-in-interest selling shares of preferred stock or common stock or interests in shares of preferred
stock or common stock received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution
or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of preferred stock
or common stock or interests in shares of preferred stock or common stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices
at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at
negotiated prices. To the extent any of the selling stockholders gift, pledge or otherwise transfer the shares offered hereby,
such transferees may offer and sell the shares from time to time under this prospectus, provided that this prospectus has been
amended under Rule 424(b)(3) or other applicable provision of the Securities Act to include the name of such transferee in the
list of selling stockholders under this prospectus.

 

The selling stockholders may use any one
or more of the following methods when disposing of shares or interests therein:

 

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

 

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

 

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

 

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

 

		·	privately
                                                                                                                                negotiated
                                                                                                                                transactions;

 

		·	short
                                                                                                                                sales;

 

		·	through
                                                                                                                                the
                                                                                                                                writing
                                                                                                                                or
                                                                                                                                settlement
                                                                                                                                of
                                                                                                                                options
                                                                                                                                or
                                                                                                                                other
                                                                                                                                hedging
                                                                                                                                transactions,
                                                                                                                                whether
                                                                                                                                through
                                                                                                                                an
                                                                                                                                options
                                                                                                                                exchange
                                                                                                                                or
                                                                                                                                otherwise;

 

		·	broker-dealers
                                                                                                                                may
                                                                                                                                agree
                                                                                                                                with
                                                                                                                                the
                                                                                                                                selling
                                                                                                                                stockholders
                                                                                                                                to
                                                                                                                                sell
                                                                                                                                a
                                                                                                                                specified
                                                                                                                                number
                                                                                                                                of
                                                                                                                                such
                                                                                                                                shares
                                                                                                                                at
                                                                                                                                a
                                                                                                                                stipulated
                                                                                                                                price
                                                                                                                                per
                                                                                                                                share;

 

		·	a
                                                                                                                                combination
                                                                                                                                of
                                                                                                                                any
                                                                                                                                such
                                                                                                                                methods
                                                                                                                                of
                                                                                                                                sale;
                                                                                                                                and

 

    	 

    	 

    

 

		·	any
                                                                                                                                other
                                                                                                                                method
                                                                                                                                permitted
                                                                                                                                pursuant
                                                                                                                                to
                                                                                                                                applicable
                                                                                                                                law.

 

The selling stockholders may, from time
to time, pledge or grant a security interest in some or all of the shares of preferred stock or common stock owned by them and,
if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares
of preferred stock or common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee,
transferee or other successors in interest as selling stockholders under this prospectus.

 

In connection with the sale of our preferred
stock or common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or
other financial institutions, which may in turn engage in short sales of the preferred stock or common stock in the course of
hedging the positions they assume. The selling stockholders may also sell shares of our preferred stock and common stock short
and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in
turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers
or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution
may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The aggregate proceeds to the selling stockholders
from the sale of the preferred stock and common stock offered by them will be the purchase price of that stock less discounts
or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents from time
to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will
not receive any of the proceeds from this offering. Upon any exercise of the warrants by payment of cash, however, we will receive
the exercise price of the warrants.

 

The selling stockholders also may resell
all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act of 1933, provided
that they meet the criteria and conform to the requirements of that rule.

 

The selling shareholders might be,
and any broker-dealers that act in connection with the sale of securities will be, deemed to be “underwriters” within
the meaning of Section 2(11) of the Securities Act, and any commissions received by such broker-dealers and any profit on the
resale of the securities sold by them while acting as principals will be deemed to be underwriting discounts or commissions under
the Securities Act.

 

To the extent required, the shares of our
preferred stock or common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering
prices, the names of any agents, dealer or underwriter, any applicable commissions or discounts with respect to a particular offer
will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration
statement that includes this prospectus.

 

    	 

    	 

    

 

In order to comply with the securities
laws of some states, if applicable, the preferred stock or common stock may be sold in these jurisdictions only through registered
or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or
qualified for sale or an exemption from registration or qualification requirements is available and is complied with.

 

We have advised the selling stockholders
that the anti-manipulation rules of Regulation M under the Exchange Act, to the extent applicable, may apply to sales of shares
in the market and to the activities of the selling stockholders and their affiliates. In addition, we will make copies of this
prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders for the purpose of satisfying
the prospectus delivery requirements of the Securities Act, to the extent applicable. The selling stockholders may indemnify any
broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.

 

We have agreed to indemnify the selling
stockholders against liabilities, including liabilities under the Securities Act and state securities laws, relating to the registration
of the shares offered by this prospectus.

 

We have agreed with the selling stockholders
to keep the registration statement that includes this prospectus effective until the date which is two years after the date that
the registration statement is declared effective by the SEC or such earlier date when all of the shares covered by this prospectus
have been disposed of pursuant to and in accordance with the registration statement or have been sold or may be sold without volume
restrictions pursuant to Rule 144(b)(i) under the Securities Act.

 

    	 

    	 

    

 

Annex B

 

Selling Stockholder
Questionnaire 

 

	To:	InsPro Technologies Corporation
	 	150 North Radnor-Chester Road
	 	Radnor Financial Center, Suit B101
	 	Radnor, Pennsylvania 19087
	 	Attention:  Vice President and Controller

 

Pursuant to Section
4 of the Registration Rights Agreement, the undersigned hereby furnishes to the Company the following information for use by the
Company in connection with the preparation of the Registration Statement contemplated by the Registration Rights Agreement.

 

(1)         Name
and Contact Information:

 

	Full legal name of record holder:	 
	 	 
	Address of record holder:	 
	 	 
	Social Security Number or Taxpayer identification number of record holder:	 
	 	 
	Identity of beneficial owner (if different than record holder):	 
	 	 
	Name of contact person:	 
	 	 
	Telephone number of contact person:	 
	 	 
	Fax number of contact person:	 
	 	 
	E-mail address of contact person:	 

 

    	 

    	 

    

 

(2)          Beneficial
Ownership of Registrable Securities:

 

	(a)          Number of Registrable
    Securities owned by Selling Stockholder:
	 
	 
	 
	(b)          Number of Registrable Securities
    requested to be registered:
	 
	 

 

(3)         Beneficial
Ownership of Other Securities of the Company Owned by the Selling Stockholder:

 

	Except as set forth below in this Item (3), the undersigned is not the beneficial
    or registered owner of any securities of the Company other than the Registrable Securities listed above in Item (2)(a).
	 
	Type and amount of other securities beneficially owned by the Selling Stockholder:
	 
	 
	 
	 

 

(4)         Relationships
with the Company:

 

	Except as set forth below, neither the undersigned nor any of its affiliates,
    officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material
    relationship with the Company (or its predecessors or affiliates) during the past three years.
	 
	State any exceptions here:
	 
	 
	 
	 

 

(5)         Plan
of Distribution:

 

	Except as set forth below, the undersigned intends to distribute pursuant to
    the Registration Statement the Registrable Securities listed above in Item (2) in accordance with the “Plan of Distribution”
    section set forth therein:
	 
	State any exceptions here:
	 
	 
	 
	 

 

    	 

    	 

    

 

(6)         Selling
Stockholder Affiliations:

 

	(a)          Is the Selling Stockholder a registered
    broker-dealer?
	 
	 
	 
	(b)          Is the Selling Stockholder
    an affiliate of a registered broker-dealer(s)?  (For purposes of this response, an “affiliate” of, or person
    “affiliated” with, a specified person, is a person that directly, or indirectly through one or more intermediaries,
    controls or is controlled by, or is under common control with, the person specified.)
	 
	 
	 
	(c)          If the answer to Item (6)(b)
    is yes, identify the registered broker-dealer(s) and describe the nature of the affiliation(s):
	 
	 
	 
	(d)          If the answer to Item (6)(b)
    is yes, did the Selling Stockholder acquire the Registrable Securities in the ordinary course of business (if not, please
    explain)?
	 
	 
	 
	(e)          If the answer to Item (6)(b)
    is yes, did the Selling Stockholder, at the time of purchase of the Registrable Securities, have any agreements, plans or
    understandings, directly or indirectly, with any person to distribute the Registrable Securities (if yes, please explain)?
	 
	 

 

(7)         Voting
or Investment Control over the Registrable Securities:

 

	If the Selling Stockholder is not a natural person, please identify the natural
    person or persons who have voting or investment control over the Registrable Securities listed in Item (2) above:
	 
	 

 

The undersigned hereby
acknowledges that the undersigned shall indemnify the Company and each of its directors and officers against, and hold the Company
and each of its directors and officers harmless from, any losses, claims, damages, expenses or liabilities (including reasonable
attorneys fees) to which the Company or its directors and officers may become subject by reason of any statement or omission in
the Registration Statement made in reliance upon, or in conformity with, a written statement by the undersigned, including the
information furnished in this Questionnaire by the undersigned.

 

    	 

    	 

    

 

By signing below,
the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through (7) above and
the inclusion of such information in the Registration Statement, any amendments thereto and the related prospectus. The undersigned
understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration
Statement and the related prospectus.

 

The undersigned has
reviewed the answers to the above questions and affirms that the same are true, complete and accurate. THE UNDERSIGNED AGREES
TO NOTIFY THE COMPANY IMMEDIATELY OF ANY CHANGES IN THE FOREGOING INFORMATION.

 

	Dated: _____________, 20__	 
	 	Signature of Record Holder  

    (Please sign your name in exactly the same manner as the certificate(s) for the shares being registered)

 

    	 

    	 

    

 

Schedule 8(b)

 

Shares of Common Stock underlying the
securities covered by the following registration rights:

 

Registration Rights Agreement, dated July
17, 2006, by and between the Company and Dickerson Employee Benefits.

 

Registration Rights Agreement, dated May 31, 2006, by and between
the Company and Realtime Solutions Group, L.L.C.

 

Registration Rights Agreement, dated July 20, 2006, by and
between the Company and Peter J. Gries.

 

Registration Rights Agreement, dated March
30, 2007, by and between the Company and the Investors party thereto.

 

Registration Rights Agreement, dated October 1, 2007, by and
between the Company and Computer Command and Control Company.

 

Registration Rights Agreement, dated October 1, 2007, by and
between the Company and Robert J. Oakes, Jeff Brocco, Tim Savery and Lisa Roetz .

 

Oppenheimer & Co., Inc., Sanders Morris Harris Inc. and
Roth Capital Partners have piggyback registration rights with respect to the shares of Common Stock underlying their Placement
Agent Warrants.

 

Registration Rights Agreement, dated March
31, 2008, by and between the Company and the Investors party thereto.

 

Registration Rights Agreement, dated January
14, 2009, by and between the Company and the Investors party thereto.

 

Registration Rights Agreement, dated September
30, 2010, by and between the Company and Independence Blue Cross, The Scarpa Family Trust, 2005, and Azeez Investors, LLC.

 

Registration Rights Agreement, dated December
22, 2010, by and between the Company and The Co-Investment Fund II, L. P.NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (I) (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR (B) 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY OR (II) RULE 144 OR RULE 144A UNDER THE SECURITIES
ACT. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

INSPRO TECHNOLOGIES CORPORATION

 

WARRANT

 

	Warrant No. [__]	Date of Original Issuance: November 20, 2012

 

InsPro Technologies
Corporation, a Delaware corporation (the “Company”), hereby certifies that, for value received, [___] or
its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of [___] shares
of common stock, $0.001 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant Shares”) at an exercise price equal to $0.15 per share (as
adjusted from time to time as provided herein, the “Exercise Price”), at any time and from time to time on or
after the date hereof and to and including the earlier to occur of (a) the Call Event Expiration Date (as defined below) and (b)
November 20, 2017 (the earlier to occur of (a) and (b), the “Expiration Date”), and subject to the terms and
conditions set forth herein. This warrant and any warrants issued in exchange, transfer or replacement hereof, are referred to
herein as the “Warrant.”

 

1.          Definitions.
In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein shall have
the meanings given to such terms in the Securities Purchase Agreement dated as of November 20, 2012 by and among the Company and
the investors thereto (the “Securities Purchase Agreement”).

 

    	 

    	 

    

 

2.          Registration
of Warrant. 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.

 

3.          Registration
of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified
herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant
(any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued
to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued
to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a Warrant.

 

4.          Exercise
and Duration of Warrants. This Warrant shall be exercisable by the registered Holder at any time and from time to time on or
after the date hereof to and including the Expiration Date. At 11:59 p.m., New York City time on the Expiration Date, subject to
Section 12, the portion of this Warrant not exercised (or called) prior thereto shall be and become void and of no value.

 

5.          Delivery
of Warrant Shares; Disposition of Warrants and Warrant Shares.

 

  (a)          To
effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant. Execution and delivery via facsimile
of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original
Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery
via facsimile of the Exercise Notice for all of the Warrant Shares shall have the same effect as cancellation of the original Warrant
after delivery of the Warrant Shares. Upon such delivery of the attached Exercise Notice to the Company (with the attached Warrant
Shares Exercise Log) at its address for notice set forth herein and upon (1) payment of the then-applicable Exercise Price multiplied
by the number of Warrant Shares that the Holder intends to purchase hereunder or (2) notifying the Company that this Warrant is
being exercised pursuant to a Cashless Exercise (as defined below), the Company shall on or before the third (3rd) Trading
Day after receipt thereof issue and deliver to the Holder, a certificate for the Warrant Shares issuable upon such exercise. The
Company shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale of the
Warrant Shares has been declared effective by the Securities and Exchange Commission, use commercially reasonable efforts to deliver
Warrant Shares hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing
similar functions (“DTC”), if available, provided, that, the Company may, but will not, be required to change
its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through the DTC. A “Date
of Exercise” means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the
Warrant Exercise Log attached to it) via facsimile, appropriately completed and duly signed and (ii) payment of the Exercise Price
for the number of Warrant Shares so indicated by the Holder to be purchased (or notice of a Cashless Exercise) as provided above.
On the Date of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the
Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be).

 

    	2

    	 

    

 

(b)          The
Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof,
the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation
or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. 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 this Warrant or to credit such shares to the Holder’s DTC account (as
the case may be) as required pursuant to the terms hereof.

 

(c)          The
Warrants and Warrant Shares (collectively, the “Securities”) may only be disposed of in compliance with state
and federal securities laws and the provisions related to transfer and other provisions related to the Securities set forth in
the Securities Purchase Agreement, including without limitation, Sections 4.2 and 4.14 thereof.

 

(d)          The
Warrants shall contain the legend set forth above and the stock certificates evidencing the Warrant Shares will contain the following
legend, until such time as they are not required under the conditions described in the Securities Purchase Agreement:

 

THESE SECURITIES HAVE 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 (I) (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (B) 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 AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY OR (II) RULE 144 OR RULE 144A UNDER THE SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

    	3

    	 

    

 

6.          Charges,
Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be
made without charge to the Holder for any issue or transfer tax, transfer agent fee or other similar incidental tax or expense
in respect of the issuance of such certificates, all of which such taxes and expenses shall be paid by the Company; provided, however,
that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration
of any certificates for Warrant Shares or Warrants in a name other than that of the Holder or any of its affiliates. The Holder
shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving
Warrant Shares upon exercise hereof.

 

7.          Replacement
of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and a customary and reasonable indemnity
(which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant
is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as
a condition precedent to the Company’s obligation to issue the New Warrant.

 

8.          Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price (or notice of a Cashless Exercise) in accordance with the
terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. If, notwithstanding the foregoing, and not
in limitation thereof, at any time while any of the Warrants (as defined in the Securities Purchase Agreement) remain outstanding
the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to
reserve for issuance upon exercise of the Warrants at least a number of shares of Common Stock equal to the maximum number of shares
of Common Stock as shall from time to time be necessary to effect the exercise of all of the Warrants then outstanding (the “Required
Reserve Amount”) (an “Authorized Share Failure”), then the Company shall as promptly as practicable
thereafter take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for the Warrants then outstanding. Without limiting the generality
of the foregoing sentence, as promptly as practicable after the date of the occurrence of an Authorized Share Failure, the Company
shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In
connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its reasonable best
efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its Board
of Directors to recommend to the stockholders that they approve such proposal.

 

    	4

    	 

    

 

9.          Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 9.

 

 (a)          Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a
smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall
be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after
the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during
the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately
to reflect such event.

 

 (b)          Fundamental
Transactions. If, at any time while this Warrant is outstanding, (1) the Company effects any merger or consolidation of the
Company with or into another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series
of related transactions, (3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4)
the Company effects any reclassification 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 (in any such case, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities,
cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been,
immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant (the “Alternate Consideration”). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such surviving entity to comply with the provisions of this paragraph
(b) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.

 

    	5

    	 

    

 

(c)          Adjustment
upon Issuance of shares of Common Stock. If and whenever on or after the date of the Securities Purchase Agreement but prior
to the date that is two years after the date of the Securities Purchase Agreement, the Company issues or sells, or in accordance
with this Section 9 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common
Stock owned or held by or for the account of the Company, but excluding any Excluded Securities) for a consideration per share
(the “New Issuance Price”) less than a price (the “Applicable Price”) equal to the Exercise
Price in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing a “Dilutive Issuance”),
then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to a price equal to the New Issuance
Price. For purposes of determining the adjusted Exercise Price under this Section 9(c) the following shall be applicable:

 

(i)          Issuance
of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities
issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to
be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price
per share. For purposes of this Section 9(c)(i), the “lowest price per share for which one share of Common Stock is issuable
upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise
of any such Option” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the
Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and
upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option. Except as contemplated
below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock or of
such Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities.

 

(ii)         Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable
Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the
time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 9(c)(ii),
the “lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof”
shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to
one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such
Convertible Security. Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance
of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale
of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made
pursuant to other provisions of this Section 9(c), except as contemplated below, no further adjustment of the Exercise Price shall
be made by reason of such issue or sale.

 

    	6

    	 

    

 

(iii)        Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the
Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been
in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional
consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For
purposes of this Section 9(c)(iii), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance
of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible
Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been
issued as of the date of such increase or decrease. No adjustment pursuant to this Section 9(c) shall be made if such adjustment
would result in an increase of the Exercise Price then in effect.

 

(iv)        Calculation
of Consideration Received. In case any Option is issued in connection with the issue or sale of other securities of the Company,
together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto,
the Options will be deemed to have been issued for a consideration of $0.01. If any shares of Common Stock, Options or Convertible
Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed
to be the net amount received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued
or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of
such consideration, except where such consideration consists of securities, in which case the amount of consideration received
by the Company for each such security will be the VWAP of such security for the five (5) Trading Day Period immediately preceding
the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving
entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be
deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such
shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash
or securities will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten
(10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such
consideration will be determined within five (5) Trading Days after the tenth (10th) day following the Valuation Event
by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall
be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

 

    	7

    	 

    

 

(v)         Record
Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to
receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to
subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be
the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend
or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may
be).

 

(d)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraphs (a) or (c) of this Section,
unless waived in writing by the Holder with respect to a particular adjustment, the number of Warrant Shares that may be purchased
upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise
Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately
prior to such adjustment.

 

(e)          Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(f)          Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly
compute such adjustment in accordance with the terms of this Warrant and promptly prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable
upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail
the facts upon which such adjustment is based. Upon written request of a Holder, the Company will promptly deliver a copy of each
such certificate to the Holder and to the Company’s transfer agent.

 

(g)          Notice
of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property
in respect of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase
any capital stock of the Company or any subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits
stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of
the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions
of such transaction, at least 10 calendar days prior to the applicable record or effective date on which a Person would need to
hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably
necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so
as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any
defect therein shall not affect the validity of the corporate action required to be described in such notice. To the extent that
any notice provided hereunder constitutes, or contains, material, non-public information, the Company shall simultaneously file
such notice pursuant to a Current Report on Form 8-K.

 

    	8

    	 

    

 

10.         Payment
of Exercise Price. The Holder shall pay the Exercise
Price by delivery to the Company of immediately available funds. Notwithstanding anything contained herein to the contrary,
the Holder may, in its sole discretion, unless a Preliminary Call Event has occurred prior to such Exercise Date (and only for
so long as such Preliminary Call Event is continuing) or the Company has timely delivered an effective notice of a Call Event to
the Holder prior to the Exercise Date, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in payment of the aggregate Exercise Price, elect instead to receive
upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

 

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

 

For purposes of the
foregoing formula:

 

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

 

B= the VWAP of the shares of Common
Stock for the 5 Trading Day period immediately preceding the date of the Exercise Notice.

 

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

 

11.         No
Rights as Stockholder. Until the exercise of this Warrant, the Holder shall not have or exercise any rights by virtue hereof
as a stockholder of the Company. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities
on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether
such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 11, the Company shall
provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously
with the giving thereof to the stockholders.

 

    	9

    	 

    

 

12.         Call
Event. At any point after which the VWAP of the Common Stock for a minimum of 20 consecutive Trading Days shall have been equal
to at least eight times (8x) the Exercise Price (a “Call Event”), the Company may, at its option, provide written
notice of such Call Event to all, but not less than all, holders of Warrants (as defined in the Securities Purchase Agreement)
within 10 Trading Days after the occurrence of the Call Event, in which case, the date that is ten business days after the Company
has provided such written notice to all such holders of a Call Event shall be the “Call Event Expiration Date.”
For the avoidance of doubt, at 11:59 p.m., New York City time on the Call Event Expiration Date, the portion of this Warrant not
exercised prior thereto shall be and become void and of no value as further set forth below in this Section 12. Notwithstanding
the foregoing, a notice of a Call Event shall not be effective with respect to the Holder unless (i) one or more Registration Statement(s)
covering all of the shares issuable upon exercise of the Warrants held by the Holder is (or are, as the case may be) effective
and is (or are, as the case may be) not then suspended and no stop order is in effect with
respect thereto, and the Holder is able to sell all such shares pursuant to such Registration Statement(s) through the Call Event
Expiration Date, (ii) on each Trading Day during the thirty (30) Trading Day period immediately preceding the Call
Event Expiration Date (the “Requisite Period”), all of the shares of Common Stock issuable upon exercise
of the Warrants held by the Holder are freely tradable, without restriction (subject to compliance with prospectus delivery requirements
to the extent applicable), on an Eligible Market (other than such shares which are properly excluded from one or more Registration
Statements pursuant to the terms of the Registration Rights Agreement), (iii) on each day during the Requisite Period, the shares
of Common Stock issuable upon exercise of the Warrants held by the Holder are designated for listing on an Eligible Market and
shall not have been suspended from trading on such exchange, (iv) the Company shall have, at all times during the Requisite Period,
delivered shares of Common Stock upon exercise of the Warrants held by a Holder on a timely basis in accordance with the provisions
of the Securities Purchase Agreement and this Warrant, and (v) the Holder is able to sell all shares issuable upon exercise of
the Warrants held by the Holder at all times through the Call Event Expiration Date without any liability under Section 16(b) of
the Exchange Act. For purposes of Section 10 hereof, “Preliminary Call Event” shall occur at any point
after which the VWAP of the Common Stock for a minimum of 10 consecutive Trading Days shall have been equal to at least eight times
(8x) the Exercise Price and the other conditions of a Call Event set forth above capable of being satisfied prior to such point
are satisfied (including, without limitation, that one or more Registration Statement(s) covering all of the shares issuable upon
exercise of the Warrants held by the Holder (other than such shares which are properly excluded therefrom pursuant to the terms
of the Registration Rights Agreement) is (or are, as the case may be) effective and is (or
are, as the case may be) not then suspended and no stop order is in effect with respect thereto).

 

13.         No
Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant. In
lieu of any fractional shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the VWAP of the shares of Common Stock for the 5 Trading Day period immediately preceding the Date of Exercise.

 

14.         Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall
be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in this Section prior to 5:30 p.m. (New York City time) on a Trading
Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service with
next day delivery specified, or (iv) upon actual receipt by the party to whom such notice is required to be given. The addresses
for such communications shall be: (i) if to the Company, to InsPro Technologies Corporation, InsPro Technologies Corporation, 150
N. Radnor-Chester Road, Radnor, PA 19087, Facsimile: (484) 654-2209, Attention: Vice President and Controller, or such other address
as the Company shall so notify the Holder, or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant
Register or such other address or facsimile number as the Holder may provide to the Company in accordance with this Section.

 

    	10

    	 

    

 

15.         Warrant
Agent. The Company shall serve as warrant agent under this Warrant. Upon 10 days’ notice to the Holder, the Company may
appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or
any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor
warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession
as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown
on the Warrant Register.

 

16.         Additional
Definitions. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)          “Bloomberg”
means Bloomberg Financial Markets.

 

(b)          “Common
Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock actually outstanding at such
time, plus the number of shares of Common Stock deemed to be outstanding pursuant to Sections 9(c))(i) and (ii) hereof regardless
of whether the Options or Convertible Securities are actually exercisable at such time.

 

(c)          “Convertible
Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for shares of Common Stock.

 

(d)          “Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., the Nasdaq Global Select Market, the Nasdaq Global
Market, the Nasdaq Capital Market or the American Stock Exchange.

 

(e)          “Excluded
Securities” means Options, Convertible Securities or Common Stock issued or issuable: (i) upon exercise of the Warrants,
(ii) upon conversion of any Options or Convertible Securities which are outstanding on the date hereof, (iii) pursuant to any equity
compensation plan or arrangement, or (iv) in connection with mergers, acquisitions, strategic business partnerships or alliances,
joint ventures, bank financings (or similar financings), vendor, supplier and consulting arrangements, equipment or other leases
or other transactions, the primary purpose of which, in the reasonable judgment of the Company's Board of Directors, is not to
raise additional equity capital or convertible debt.

 

(f)          “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(g)          “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(h)          “Principal
Market” means the National Association of Securities Dealers, Inc. OTC Bulletin Board.

 

    	11

    	 

    

 

(i)          
“Successor Entity” means the Person formed by, resulting from or surviving any Fundamental Transaction.

 

(j)          “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(k)          “VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or,
if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities
market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York City Time, and ending at 4:00:00
p.m., New York City Time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01 a.m., New York City Time, and ending at 4:00:00 p.m., New York City
Time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such
hours, 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 Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If VWAP cannot
be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the
fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon
the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 20. All
such determinations shall be appropriately adjusted for any share dividend, share split or other similar transaction during such
period.

 

17.         Rights
Upon Distribution of Assets. If the Company shall declare or make any dividend or other distribution of its assets (or rights
to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation,
any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the
issuance of this Warrant, then, in each such case, the Holder will 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 immediately before the date on 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.

 

    	12

    	 

    

 

18.         Purchase
Rights. In addition to any adjustments pursuant to Section 9 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders
of any class of shares of Common Stock (the “Purchase Rights”), 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 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.

 

19.         Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights
of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares
of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the Warrants are outstanding, take
all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose
of effecting the exercise of the Warrants, the maximum number of shares of Common Stock as shall from time to time be necessary
to effect the exercise of the Warrants then outstanding (without regard to any limit on exercise contained therein).

 

20.         Miscellaneous.

 

  (a)          This
Warrant shall be binding on and inure to the benefit of the parties hereto and their respective permitted successors and assigns.
Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and
the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing
signed by the Company and the Holder and their successors and assigns.

 

    	13

    	 

    

 

(b)          All
questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed
and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law
thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of this Warrant and
the transactions herein contemplated (“Proceedings”) (whether brought against a party hereto or its respective
Affiliates, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of Wilmington,
State of Delaware (the “Delaware Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not
personally subject to the jurisdiction of any Delaware Court, or that such Proceeding has been commenced in an improper or inconvenient
forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such
Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or relating to this Warrant or the transactions contemplated
hereby. If either party shall commence a Proceeding to enforce any provisions of this Warrant, then the prevailing party in such
Proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

 

(c)          The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

 

(d)          In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

[SIGNATURE PAGE FOLLOWS]

 

    	14

    	 

    

 

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

 

	 	INSPRO TECHNOLOGIES CORPORATION
	 	 	 
	 	By:	 
	 	Name:	Anthony R. Verdi
	 	Title:	Chief Executive Officer, Chief Operating Officer and Chief Financial Officer

 

[Signature Page to Warrant No. ITCC-146]

 

    	 

    	 

    

 

INSPRO
TECHNOLOGIES CORPORATION

WARRANT ORIGINALLY ISSUED NOVEMBER 16, 2012

WARRANT NO. ITCC-146

 

EXERCISE
NOTICE

 

TO INSPRO TECHNOLOGIES CORPORATION:

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
InsPro Technologies Corporation, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.          Form
of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:

 

		____________	a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

		____________	a “Cashless Exercise” with respect to _______________ Warrant Shares.

 

2.          Payment
of Exercise Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to
be issued pursuant hereto, the holder shall pay the aggregate Exercise Price in the sum of $___________________ to the Company
in accordance with the terms of the Warrant.

 

3.          Delivery
of Warrant Shares. The Company shall deliver to holder, or its designee or agent as specified below, __________ Warrant Shares
in accordance with the terms of the Warrant. Delivery shall be made to holder, or for its benefit, to the following address:

 

	 	_______________________	 
	 	_______________________	 
	 	_______________________	 
	 	_______________________	 

 

	Date: _______________ __, ______	 
	 	 
	  Name of Registered Holder	 

 

	By:	 	 
	 	Name:	 
	 	Title:	 

  

    	 

    	 

    

 

Warrant Shares Exercise Log

 

	Date	 	Number of Warrant

 Shares Available to be 

Exercised	 	Number of Warrant Shares

 Exercised	 	Number of

 Warrant Shares 

Remaining to

 be Exercised
	
           
	 	 	 	 	 	 

 

    	 

    	 

    

 

INSPRO
TECHNOLOGIES CORPORATION

WARRANT
ORIGINALLY ISSUED NOVEMBER 16, 2012

WARRANT
NO. ITCC-146

 

FORM
OF ASSIGNMENT

 

[To be completed and
signed only upon transfer of Warrant]

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto ________________________ the right represented by the above-captioned
Warrant to purchase ____________ shares of Common Stock to which such Warrant relates and appoints ________________ attorney to
transfer said right on the books of the Company with full power of substitution in the premises.

 

Dated:_______________, ____

 

	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 
	 	 
	 	Address of Transferee
	 	 
	 	 
	 	 
	 	 

 

	In the presence of:

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