Document:

Exhibit 10.1

 

FIRST INCREMENTAL TERM LOAN ASSUMPTION AGREEMENT

 

THIS FIRST INCREMENTAL TERM LOAN ASSUMPTION AGREEMENT, dated as of December 11, 2015 (this “Agreement”), by and among the undersigned lenders (each an “Incremental Term Lender” and collectively the “Incremental Term Lenders”), ENVIVA PARTNERS, LP, a Delaware limited partnership (the “Borrower”), CERTAIN SUBSIDIARIES OF THE BORROWER, as Guarantors, and BARCLAYS BANK PLC (“Barclays”), as Administrative Agent.

 

RECITALS:

 

WHEREAS, reference is hereby made to the Credit Agreement, dated as of April 9, 2015 (as amended by that certain First Amendment to Credit Agreement dated as of August 21, 2015, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as defined in the Credit Agreement as amended hereby), by and among the Borrower, the Lenders party thereto from time to time, Barclays, as Administrative Agent and as Collateral Agent, and the other Persons party thereto;

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may obtain Incremental Term Loan Commitments by entering into one or more Incremental Term Loan Assumption Agreements with the Administrative Agent and one or more Incremental Term Lenders (as defined in the Credit Agreement); and

 

WHEREAS, Section 9.08(c)(ii) of the Credit Agreement permits the Administrative Agent and the Borrower to amend the Credit Agreement in accordance with Section 2.25 thereof without the consent of any Lender, subject to the terms and conditions set forth therein.

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

1.                                      Approval of Loan Documents.  Each Incremental Term Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and it is sophisticated with respect to decisions to make loans similar to those contemplated to be made hereunder and it is experienced in making loans of such type; (ii) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender or Agent or any of their respective affiliates and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent and the Collateral Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that as of the Incremental Amendment Effective Date it is a Lender under the Credit Agreement (as amended hereby, and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Amended

 

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Credit Agreement”) and will perform in accordance with its terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.

 

2.                                      Commitment.  Each Incremental Term Lender hereby severally agrees to provide its respective (i) Tranche A-3 Incremental Term Loan Commitment (the “Tranche A-3 Term Loan Commitment”, and the Incremental Term Loans thereunder, each a “Tranche A-3 Term Loan”) and (ii) Tranche A-4 Incremental Term Loan Commitment (the “Tranche A-4 Term Loan Commitment”, and the Incremental Term Loans thereunder, each a “Tranche A-4 Term Loan”) as set forth on Schedule A annexed hereto, on the terms and subject to the conditions set forth below, on the Incremental Amendment Effective Date. For purposes of this Agreement, (i) the Tranche A-3 Term Loan Commitment and the Tranche A-4 Term Loan Commitment shall collectively be referred to as the “Incremental Term Loan Commitments” and (ii) the Tranche A-3 Term Loans and the Tranche A-4 Term Loans shall collectively be referred to as the “Incremental Term Loans”. The Incremental Term Loan Commitments shall be reduced to zero upon the earlier to occur of (i) the funding of the Incremental Term Loans and (ii) February 11, 2016 (such date in this clause (ii), the “Outside Date”).

 

3.                                      Applicable Margin; Maturity Date.  (a) The Applicable Margin applicable to the Tranche A-3 Term Loans and the Tranche A-4 Term Loans shall each be as set forth in the definition of “Applicable Margin” of the Amended Credit Agreement.

 

(b)                                 The Maturity Date of the Tranche A-3 Term Loans shall be the Tranche A-3 Term Loan Maturity Date and the Maturity Date of the Tranche A-4 Term Loans shall be the Tranche A-4 Term Loan Maturity Date, each as defined in the Amended Credit Agreement.

 

4.                                      Amendment to Section 1.01 of the Credit Agreement.  Section 1.01 of the Credit Agreement is hereby amended as follows:

 

a.              by amending and restating the definition of “Applicable Margin” in its entirety to read as follows:

 

“Applicable Margin” shall mean the Tranche A-1 Term Loan Applicable Margin, Tranche A-2 Term Loan Applicable Margin, Tranche A-3 Term Loan Applicable Margin, Tranche A-4 Term Loan Applicable Margin or Revolving Loan Applicable Margin, collectively, or any of them as context may require.  Furthermore, the Applicable Margin in respect of any Incremental Loans, Extended Loans or Credit Agreement Refinancing Indebtedness shall be the applicable percentages per annum set forth in applicable Incremental Term Loan Assumption Agreement, the applicable Extension Request or the applicable Refinancing Amendment, respectively.

 

b.              by amending and restating the definition of “Repricing Event” in its entirety to read as follows:

 

“Repricing Event” shall mean the prepayment, repricing or refinancing of all or a portion of any Tranche A-1 Term Loans, Tranche A-2 Term Loans, Tranche A-3 Term Loans or Tranche A-4 Term Loans, as applicable, with the incurrence by the Borrower or any of its Restricted Subsidiaries of debt financing reducing the effective interest cost or weighted average yield (as reasonably determined by the Administrative Agent consistent with

 

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generally accepted financial practice) to less than the interest rate for or weighted average yield (as reasonably determined by the Administrative Agent on the same basis) of such Loans, including without limitation, as may be effected through any amendment relating to the interest rate for such Loans.

 

c.               by adding the following definitions in proper alphabetical sequence:

 

“First Incremental Term Loan Assumption Agreement” shall mean that certain First Incremental Term Loan Assumption Agreement, dated as of December 11, 2015, among the Incremental Term Lenders (as defined therein), the Borrower, certain subsidiaries of the Borrower party thereto and the Administrative Agent.

 

“Incremental A-3/A-4 Funding Date” shall have the meaning assigned to the term “Incremental Funding Date” in the First Incremental Term Loan Assumption Agreement.

 

“Tranche A-3 Term Lender” shall mean a Lender with a Tranche A-3 Term Loan Commitment pursuant to (and as defined in) the First Incremental Term Loan Assumption Agreement or an outstanding Tranche A-3 Term Loan.

 

“Tranche A-3 Term Loan” shall mean a Tranche A-3 Term Loan made by an Incremental Term Lender to the Borrower pursuant to the First Incremental Term Loan Assumption Agreement.

 

“Tranche A-3 Term Loan Applicable Margin” shall mean, for any day (a) with respect to Tranche A-3 Term Loans which are ABR Loans hereunder, the applicable rate per annum set forth under the heading “Applicable Margin for ABR Loans” on the Tranche A-3 Term Loan Pricing Grid which corresponds to the relevant date of determination and (b) with respect to Tranche A-3 Term Loans which are Eurodollar Loans hereunder, the applicable rate per annum set forth under the heading “Applicable Margin for Eurodollar Loans” on the Tranche A-3 Term Loan Pricing Grid which corresponds to the relevant date of determination.

 

“Tranche A-3 Term Loan Maturity Date” shall mean April 9, 2020.

 

“Tranche A-3 Term Loan Pricing Grid” shall mean the following pricing grid:

 

	
Date of determination
    	
 
    	
Applicable Margin
   for ABR Loans
    	
 
    	
Applicable Margin
   for Eurodollar Loans
    	
 
    
	
Incremental   A-3/A-4 Funding Date through April 8, 2016
    	
 
    	
3.10
    	
%
    	
4.10
    	
%
    
	
April 9,   2016 through April 8, 2017
    	
 
    	
3.10
    	
%
    	
4.10
    	
%
    
	
April 9,   2017 through April 8, 2018
    	
 
    	
2.95
    	
%
    	
3.95
    	
%
    
	
April 9,   2018 through April 8, 2019
    	
 
    	
2.80
    	
%
    	
3.80
    	
%
    
	
April 9,   2019 and thereafter
    	
 
    	
2.80
    	
%
    	
3.80
    	
%
    

 

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“Tranche A-4 Term Lender” shall mean a Lender with a Tranche A-4 Term Loan Commitment pursuant to (and as defined in) the First Incremental Term Loan Assumption Agreement or an outstanding Tranche A-4 Term Loan.

 

“Tranche A-4 Term Loan” shall mean a Tranche A-4 Term Loan made by an Incremental Term Lender to the Borrower pursuant to the First Incremental Term Loan Assumption Agreement.

 

“Tranche A-4 Term Loan Applicable Margin” shall mean, for any day (a) with respect to Tranche A-4 Term Loans which are ABR Loans hereunder, 3.25% and (b) with respect to Tranche A-4 Term Loans which are Eurodollar Loans hereunder, 4.25%.

 

“Tranche A-4 Term Loan Maturity Date” shall mean April 9, 2020.

 

5.                                      Amendment to Section 2.11(c) of the Credit Agreement.  Section 2.11(c) of the Credit Agreement is hereby amended by replacing the words “Closing Date” therein with the words “Incremental A-3/A-4 Funding Date” in each instance.

 

6.                                      Principal Payments.  (a) The Borrower shall pay to the Administrative Agent, for the account of the Tranche A-3 Term Lenders, on the dates set forth below, or if any such date is not a Business Day, on the next preceding Business Day (each such date, together with the Tranche A-3 Term Loan Maturity Date, being called a “Tranche A-3 Term Loan Repayment Date”), a principal amount of the Tranche A-3 Term Loans (as adjusted from time to time pursuant to Sections 2.12, 2.13(f) and 9.04(l)(vi) of the Credit Agreement) equal to the percentage of the principal amount of the Tranche A-3 Term Loans made on the Incremental Funding Date set forth below for such date, together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment:

 

	
Tranche A-3 Term Loan Repayment
   Date
    	
 
    	
Percentage of the Tranche A-3 Term Loans
   Made on the Incremental Funding Date
    	
 
    
	
December 31, 2015
    	
 
    	
0.50%
    	
 
    
	
March 31, 2016
    	
 
    	
0.50%
    	
 
    
	
June 30, 2016
    	
 
    	
0.50%
    	
 
    
	
September 30, 2016
    	
 
    	
0.50%
    	
 
    
	
December 31, 2016
    	
 
    	
0.50%
    	
 
    
	
March 31, 2017
    	
 
    	
0.50%
    	
 
    
	
June 30, 2017
    	
 
    	
0.75%
    	
 
    
	
September 30, 2017
    	
 
    	
0.75%
    	
 
    
	
December 31, 2017
    	
 
    	
0.75%
    	
 
    
	
March 31, 2018
    	
 
    	
0.75%
    	
 
    
	
June 30, 2018
    	
 
    	
1.25%
    	
 
    
	
September 30, 2018
    	
 
    	
1.25%
    	
 
    
	
December 31, 2018
    	
 
    	
1.25%
    	
 
    
	
March 31, 2019
    	
 
    	
1.25%
    	
 
    
	
June 30, 2019
    	
 
    	
1.25%
    	
 
    
	
September 30, 2019
    	
 
    	
1.25%
    	
 
    
	
December 31, 2019
    	
 
    	
1.25%
    	
 
    
	
Tranche A-3 Term Loan Maturity Date
    	
 
    	
The remaining   outstanding amounts
    	
 
    

 

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; provided that, if the Projected Contracted Capacity (calculated as of the first day of each calendar year (such year, the “Reference Year”), and determined pursuant to clause (i) of the definition of “Applicable Wood Pellet Production Facilities”) for the Reference Year and the next succeeding calendar year is less than 75%, the percentage of the principal amount of the Tranche A-3 Term Loans to be paid on each Tranche A-3 Term Loan Repayment Date during the Reference Year as set forth in the table above will, in each case, be increased by 0.50%.

 

(b) The Borrower shall pay to the Administrative Agent, for the account of the Tranche A-4 Term Lenders, on the dates set forth below, or if any such date is not a Business Day, on the next preceding Business Day (each such date, together with the Tranche A-4 Term Loan Maturity Date, being called a “Tranche A-4 Term Loan Repayment Date”), a principal amount of the Tranche A-4 Term Loans (as adjusted from time to time pursuant to Sections 2.12, 2.13(f)) and 9.04(l)(vi) of the Credit Agreement) equal to the percentage of the principal amount of the Tranche A-4 Term Loans made on the Incremental Funding Date set forth below for such date, together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment:

 

	
Tranche A-4 Term Loan Repayment
   Date
    	
 
    	
Percentage of the Tranche A-4 Term Loans
   Made on the Incremental Funding Date
    	
 
    
	
December 31, 2015
    	
 
    	
0.25%
    	
 
    
	
March 31, 2016
    	
 
    	
0.25%
    	
 
    
	
June 30, 2016
    	
 
    	
0.25%
    	
 
    
	
September 30, 2016
    	
 
    	
0.25%
    	
 
    
	
December 31, 2016
    	
 
    	
0.25%
    	
 
    
	
March 31, 2017
    	
 
    	
0.25%
    	
 
    
	
June 30, 2017
    	
 
    	
0.25%
    	
 
    
	
September 30, 2017
    	
 
    	
0.25%
    	
 
    
	
December 31, 2017
    	
 
    	
0.25%
    	
 
    
	
March 31, 2018
    	
 
    	
0.25%
    	
 
    
	
June 30, 2018
    	
 
    	
0.25%
    	
 
    
	
September 30, 2018
    	
 
    	
0.25%
    	
 
    
	
December 31, 2018
    	
 
    	
0.25%
    	
 
    
	
March 31, 2019
    	
 
    	
0.25%
    	
 
    
	
June 30, 2019
    	
 
    	
0.25%
    	
 
    
	
September 30, 2019
    	
 
    	
0.25%
    	
 
    
	
December 31, 2019
    	
 
    	
0.25%
    	
 
    
	
Tranche A-4 Term Loan Maturity Date
    	
 
    	
The remaining   outstanding amounts
    	
 
    

 

7.                                      Prepayment Fees.  The Borrower agrees to pay to each Incremental Term Lender the following prepayment fees:

 

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In the event that a Repricing Event is consummated in connection with all or any portion of the Tranche A-3 Term Loans prior to the six-month anniversary of the Incremental Funding Date, the Borrower shall pay to the Tranche A-3 Term Lenders a fee equal to 1.00% of the aggregate principal amount of the Tranche A-3 Term Loans subject to such Repricing Event.  In the event that a Repricing Event is consummated in connection with all or any portion of the Tranche A-4 Term Loans prior to the six-month anniversary of the Incremental Funding Date, the Borrower shall pay to the Tranche A-4 Term Lenders a fee equal to 1.00% of the aggregate principal amount of the Tranche A-4 Term Loans subject to such Repricing Event.

 

Any reference to Section 2.11(c) of the Credit Agreement in any Loan Document will be deemed to include a reference to numbered paragraph 7 of this Agreement.

 

8.                                      Closing Fee.  The Borrower agrees to pay to the Administrative Agent, for the ratable benefit and account of each Incremental Term Lender, a closing fee (the “Closing Fee”) in an amount equal to 1.00% of the aggregate principal amount of such Incremental Term Lender’s Tranche A-3 Term Loans and Tranche A-4 Term Loans, payable to such Incremental Term Lender out of the proceeds of its loans as and when funded on the Incremental Funding Date.

 

9.                                      Use of Proceeds.  The proceeds of the Tranche A-3 Term Loans and the Tranche A-4 Term Loans will be used (a) to consummate the Southampton Acquisition pursuant to Section 6.04(d) of the Credit Agreement and (b) to pay related fees and expenses.

 

10.                               Security.  The Tranche A-3 Term Loans and the Tranche A-4 Term Loans will be secured by the Collateral on a pari passu basis with the Tranche A-1 Term Loans, the Tranche A-2 Term Loans, the Revolving Loans and the Swing Line Loans.

 

11.                               Reserved.

 

12.                               Credit Agreement Governs.  The Tranche A-3 Term Loans and Tranche A-4 Term Loans hereunder are “Incremental Term Loans” made pursuant to Section 2.25 of the Credit Agreement and, pursuant to Section 2.25(b) of the Credit Agreement, the terms and provisions of the Tranche A-3 Term Loans and Tranche A-4 Term Loans shall, except as otherwise set forth in the Credit Agreement or in this Agreement, be identical to the terms and provisions of the Tranche A-1 Term Loans and Tranche A-2 Term Loans, respectively.  For the avoidance of doubt, the Reserve Adjusted Eurodollar Rate with respect to the Tranche A-3 Term Loans and Tranche A-4 Term Loans shall at no time be less than 1.00% per annum.  All obligations in respect of the Tranche A-3 Term Loan Commitment, Tranche A-4 Term Loan Commitment, Tranche A-3 Term Loans and Tranche A-4 Term Loans are and shall be “Obligations” pursuant to and as defined in the Credit Agreement, and are and shall be secured pursuant to the Security Documents.

 

13.                               Borrower’s Certifications.  By its execution of this Agreement, the Borrower hereby certifies that:

 

a.              The representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document are true and correct in all material respects (other than representations and warranties that are qualified by materiality, which shall be

 

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true and correct in all respects) on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations were true and correct in all material respects as of such earlier date;

 

b.              No event has occurred and is continuing or would result from the consummation of the proposed borrowing contemplated hereby that would constitute a Default or an Event of Default; and

 

c.               The Borrower has performed in all material respects all agreements and satisfied all conditions which the Amended Credit Agreement provides shall be performed or satisfied by it on or before the date hereof.

 

14.                               Borrower Covenant.  By its execution of this Agreement, the Borrower hereby covenants to make any payments required under the Credit Agreement in connection with the Tranche A-3 Term Loan Commitment and Tranche A-4 Term Loan Commitment, including, without limitation, under Sections 2.14, 2.15, 2.16, 2.20 and 9.05 thereof.

 

15.                               Conditions Precedent to Effectiveness. The effectiveness of this Agreement, the Incremental Term Loan Commitments of the Incremental Term Lenders and the obligations of the Incremental Term Lenders to fund the Incremental Term Loans (which funding, for the avoidance of doubt, shall be considered a Credit Event) are subject to the satisfaction of the conditions precedent set forth on Schedule B annexed hereto (the date on which all such conditions are satisfied, the “Incremental Amendment Effective Date”, and the date on which the Incremental Term Loans are funded (which shall be the same day as the Incremental Effective Date), the “Incremental Funding Date”). If the Incremental Funding Date has not occurred by the Outside Date, the Incremental Term Loan Commitments shall automatically terminate on such date.

 

16.                               Reaffirmations.  (a) Each Loan Party, subject to the terms and limits contained in the Amended Credit Agreement and in the Security Documents, reaffirms its guaranty of the Obligations pursuant to the Guarantee and Collateral Agreement.  Each Loan Party hereby acknowledges that it has reviewed the terms and provisions of this Agreement and consents to the amendment of the Credit Agreement effected pursuant to this Agreement.  Each Loan Party hereby confirms that each Loan Document to which it is a party or is otherwise bound will continue to be in full force and effect as amended by this Agreement and that its obligations thereunder shall not be impaired or limited by the execution or effectiveness of this Agreement.

 

(b) Each Loan Party hereby (i) confirms that each Loan Document to which it is a party or is otherwise bound and all Collateral encumbered thereby will continue to secure to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations, (ii) confirms its respective grant to the Collateral Agent for the benefit of the Secured Parties of the security interest in and continuing Lien on all of such Loan Party’s right, title and interest in, to and under all Collateral, in each case whether now owned or existing or hereafter acquired or arising and wherever located, as collateral security for the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all applicable Obligations

 

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(including all such Obligations as amended, reaffirmed and/or increased pursuant to the Amended Credit Agreement), subject to the terms contained in the applicable Loan Documents and (iii) confirms its other pledges, other grants of security interests and other obligations, as applicable, under and subject to the terms of each Loan Document to which it is a party.

 

17.                               Eligible Assignee.  By its execution of this Agreement, each Incremental Term Lender represents and warrants that it is an Eligible Assignee.

 

18.                               Reserved.

 

19.                               Waiver of Notice Period.  The Administrative Agent and the Incremental Term Lenders hereby agree to waive the application of the provision set forth in Section 2.25(a)(ii) of the Credit Agreement.

 

20.                               Amendment, Modification and Waiver.  This Agreement may not be amended, modified or waived except in accordance with Section 9.08 of the Amended Credit Agreement.

 

21.                               Entire Agreement.  This Agreement, the Amended Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and oral, among the parties or any of them with respect to the subject matter hereof.

 

22.                               Effect of the Amendment.  On and after the Incremental Amendment Effective Date, each reference to the Credit Agreement in any Loan Document shall be deemed to be a reference to the Amended Credit Agreement.  Except as expressly provided in this Agreement, nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Amended Credit Agreement or any other Loan Document in similar or different circumstances.  On and after the Incremental Amendment Effective Date, (i) this Agreement shall constitute a “Loan Document” for all purposes of the Amended Credit Agreement and the other Loan Documents and (ii) the terms “Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof”, and words of similar import, as used in the Amended Credit Agreement, shall, unless the context otherwise requires, mean the Amended Credit Agreement.  Each Loan Party hereby ratifies and confirms that, except as specifically amended by this Agreement, the Amended Credit Agreement and the other Loan Documents shall remain in full force and effect.

 

23.                               GOVERNING LAW.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

24.                               Miscellaneous.  The provisions of Sections 9.11 and 9.15 of the Amended Credit Agreement are incorporated by reference herein and made a part hereof.

 

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25.                               Severability.  In case any provision in or obligation hereunder or under any other Loan Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

26.                               Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same contract.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other customary means of electronic transmission (e.g., “.pdf”) shall be as effective as delivery of a manually executed counterpart hereof.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

 

	
 
    	
American   AgCredit, PCA,
   as an Incremental Term Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Janice T. Thede
    
	
 
    	
Name:
    	
Janice   T. Thede
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Notice   Address:
    
	
 
    	
 
    
	
 
    	
5560   S. Broadway, Eureka, CA 95503
    
	
 
    	
 
    
	
 
    	
Attention:   Enviva Loan Servicing
    
	
 
    	
Telephone:   707-445-8871
    
	
 
    	
Facsimile:   707-442-1268
    

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

 

	
 
    	
Citibank,   N.A.,
   as an Incremental Term Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Chidozie Ugochukwu
    
	
 
    	
Name:
    	
Chidozie   Ugochukwu
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Notice   Address:
    	
1615   Brett Road, Ops III
    
	
 
    	
 
    	
New   Castle, DE 19720
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Attention:   Enviva Term Loan
    
	
 
    	
Telephone:   (201) 472-4414
    
	
 
    	
Facsimile:   (646) 274-5000
    
	
 
    	
Email:   GLOriginationOps@citi.com
    
				

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.

 

	
 
    	
BARCLAYS   BANK PLC,
   as an Incremental Term Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig J. Malloy
    
	
 
    	
Name:
    	
Craig   J. Malloy
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Notice   Address:
    	
745 7th Ave
    
	
 
    	
 
    	
NY,   NY 10019
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Attention:   May Huang
    
	
 
    	
Telephone:   212-526-0787
    
	
 
    	
Facsimile:   
    
				

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

	
 
    	
ENVIVA   PARTNERS, LP
    
	
 
    	
By:
    	
ENVIVA   PARTNERS GP, LLC, as its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
ENVIVA   GP, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA,   LP 
    
	
 
    	
By:
    	
Enviva   GP, LLC, as its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   MATERIALS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS AHOSKIE, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS AMORY, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
						

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

	
 
    	
ENVIVA   PELLETS NORTHAMPTON, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS PERKINSTON, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PORT OF CHESAPEAKE, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 ENVIVA PELLETS COTTONDALE, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   ENERGY SERVICES, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Raymond J. Kaszuba III
    
	
 
    	
 
    	
Name:
    	
Raymond   J. Kaszuba III 
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
						

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

	
BARCLAYS   BANK PLC,
    	
 
    
	
as   Administrative Agent
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Craig J. Malloy
    	
 
    
	
 
    	
Name:   Craig J. Malloy
    	
 
    
	
 
    	
Title:   Director
    	
 
    

 

Signature Page to First Incremental Term Loan Assumption Agreement

 

 

SCHEDULE A
 TO AGREEMENT

 

TRANCHE A-3 TERM LOAN COMMITMENTS

 

	
Name of Lender
    	
 
    	
Type of Commitment
    	
 
    	
Amount
    	
 
    
	
American AgCredit, PCA
    	
 
    	
Tranche A-3 Term Loan   Commitment
    	
 
    	
$
    	
10,000,000
    	
 
    
	
Total:
    	
 
    	
 
    	
 
    	
$
    	
10,000,000
    	
 
    

 

TRANCHE A-4 TERM LOAN COMMITMENTS

 

	
Name of Lender
    	
 
    	
Type of Commitment
    	
 
    	
Amount
    	
 
    
	
Barclays Bank PLC
    	
 
    	
Tranche A-4 Term Loan   Commitment
    	
 
    	
$
    	
20,000,000
    	
 
    
	
Citibank, N.A.
    	
 
    	
Tranche A-4 Term Loan   Commitment
    	
 
    	
$
    	
6,500,000
    	
 
    
	
Total:
    	
 
    	
 
    	
 
    	
$
    	
26,500,000
    	
 
    

 

 

SCHEDULE B
 TO AGREEMENT

 

CONDITIONS PRECEDENT TO THE INCREMENTAL AMENDMENT EFFECTIVE DATE

 

1.                                      Execution of this Agreement.  The Administrative Agent shall have received duly executed counterparts of this Agreement from the Borrower, each other Loan Party and the Incremental Term Lenders party hereto, each of which shall be originals or facsimiles or “.pdf” files (followed promptly by originals) unless otherwise specified.

 

2.                                      Payment of Fees and Expenses.  All costs, fees, expenses (including, without limitation, legal fees and expenses and expenses associated with syndication of the Incremental Term Facilities and the preparation, negotiation, execution and delivery of the Engagement Letter dated August 24, 2015 among the Borrower and Barclays (the “Engagement Letter”), the Loan Documents and due diligence of the Borrower, its subsidiaries and the transactions contemplated hereby payable to the Lead Arranger (as defined in the Engagement Letter), the Administrative Agent or the Incremental Term Lenders shall have been paid.  All other costs, fees, expenses (including the Closing Fee and the Arrangement Fee (as defined in the Engagement Letter)) and other compensation contemplated by the Credit Agreement and the Engagement Letter shall, upon the initial borrowing of the Incremental Term Loans, have been, or will be substantially simultaneously, paid to the extent due.

 

3.                                      Southampton Acquisition.  The Permitted Drop-Down Acquisition constituting the Southampton Acquisition shall have been consummated or will be consummated substantially concurrently with the funding of the Tranche A-3 Term Loans and Tranche A-4 Term Loans.  The Administrative Agent shall be reasonably satisfied that the Borrower has complied with the following conditions: (i) the material terms and conditions of the Southampton Acquisition have been approved by the Conflicts Committee; (ii) at the time of such acquisition, (x) the Southampton Wood Pellet Production Facility has achieved Commercial Operation and (y) both immediately before and after giving effect to such acquisition, no Default or Event of Default shall have occurred and be continuing; (iii) the Projected Contracted Capacity for the thirty six-month period beginning on the date on which such acquisition occurs is at least 85% (determined pursuant to clause (i) of the definition of “Applicable Wood Pellet Production Facilities”) (and the Borrower shall have delivered a certificate of a Responsible Officer certifying as to the foregoing and containing reasonably detailed calculations in support thereof, in form reasonably satisfactory to the Administrative Agent); (iv) at the time of such acquisition, the Southampton Subsidiary shall have no Indebtedness other than Indebtedness permitted under Section 6.01(j) of the Credit Agreement (which Indebtedness may not be secured by any Liens other than Liens permitted under Section 6.02(x) of the Credit Agreement); and (v) the Borrower and any Restricted Subsidiary shall comply, and shall cause any acquired entity to comply, or has made provisions reasonably satisfactory to the Administrative Agent for compliance, with the applicable provisions of Section 5.13 of the Credit Agreement and the Security Documents within the periods provided for therein.

 

 

4.                                      Financial Covenant Compliance.  The Borrower shall be in Financial Covenant Compliance after giving effect on a pro forma basis to the incurrence of the Tranche A-3 Term Loans and Tranche A-4 Term Loans, assuming for the purpose of this calculation that the proceeds of such Tranche A-3 Term Loans and Tranche A-4 Term Loans are not treated as Unrestricted Cash for such purpose.

 

5.                                      Borrowing Notice.  The Administrative Agent shall have received a fully executed and delivered notice of borrowing as required by Section 2.03 of the Credit Agreement (which, (a) in the case of a Eurodollar borrowing, shall be delivered no later than two Business Days prior to the Incremental Amendment Effective Date and (b) in the case of an ABR borrowing, shall be delivered no later than one Business Day prior to the Incremental Amendment Effective Date).

 

6.                                      Secretary’s Certificate.  The Administrative Agent shall have received with respect to the Borrower and each other Loan Party (i) Organizational Documents certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or jurisdiction of its incorporation, formation or organization, where applicable, and certified by a Secretary or Assistant Secretary of such Loan Party to be true and complete as of the Incremental Amendment Effective Date, and a certificate as to the good standing of such Loan Party in such jurisdiction; (ii) a certificate of the Secretary or Assistant Secretary of each Loan Party substantially in the form delivered previously pursuant to the Credit Agreement, dated the Incremental Amendment Effective Date and certifying (A) that attached thereto is a true and complete copy of the limited liability company agreement, limited partnership agreement or bylaws, as applicable, or, in the case of the Borrower, the LP Agreement, as in effect on the Incremental Amendment Effective Date, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors or other governing body of such Loan Party (and, if applicable, any parent company of such Loan Party) authorizing the execution, delivery and performance of this Agreement and, as to the Borrower, the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (C) that the certificate or articles of incorporation, formation or organization, as applicable, of such Loan Party have not been amended since the date of the last amendment thereto shown on the certificate of good standing furnished pursuant to clause (i) above, and (D) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of such Loan Party; and (iii) a certificate of another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary executing the certificate pursuant to clause (ii) above.

 

7.                                      Solvency Certificate.  The Administrative Agent shall have received a Solvency Certificate signed by a Financial Officer, substantially in the form delivered previously pursuant to the Credit Agreement, certifying that the Borrower and its Subsidiaries are, on a consolidated basis after giving effect to the transactions contemplated hereby, Solvent.

 

8.                                      Closing Certificate. The Administrative Agent shall have received a certificate substantially in the form of Exhibit R to the Credit Agreement signed by a Responsible

 

 

Officer of the Borrower as to the matters set forth in clauses (b) and (c) of Section 4.01 of the Credit Agreement;

 

9.                                      Legal Opinion. The Administrative Agent shall have received, on behalf of itself, the Collateral Agent, the Issuing Banks and the Lenders, the favorable written opinion of Vinson & Elkins LLP, counsel for the Loan Parties, in form and substance reasonably satisfactory to the Administrative Agent, dated the Incremental Amendment Effective Date and addressed to the Administrative Agent, the Collateral Agent, the Issuing Banks and the Lenders.

 

10.                               Representations and Warranties.  The representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document shall be true and correct in all material respects (other than representations and warranties that are qualified by materiality, which shall be true and correct in all respects) on and as of the Incremental Amendment Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations shall be true and correct in all material respects as of such earlier date.

 

11.                               No Default or Event of Default.  At the time of and immediately after giving effect to the Credit Event occurring on the Incremental Amendment Effective Date, no Default or Event of Default shall have occurred and be continuing.

 

12.                               Patriot Act, Etc.  The Administrative Agent shall have received all documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, at least five (5) days prior to the Incremental Amendment Effective Date that has been reasonably requested by any Lender at least ten (10) days in advance of the Incremental Amendment Effective Date.

 

13.                               Mortgage Modification Requirements.  The Collateral Agent shall have received from the applicable Loan Parties, with respect to each Mortgaged Property specified on Schedule C annexed to this Agreement, the following documents and instruments:

 

(i)             a Mortgage Modification, duly authorized and executed, in proper form for recording in the recording office of each jurisdiction where such Mortgaged Property that is currently encumbered by a Mortgage is situated, in favor of the Collateral Agent, for the benefit of the Secured Parties, together with such other instruments as shall be necessary or appropriate (in the reasonable judgment of the Collateral Agent) to continue to create a Lien under applicable law, all of which shall be in form and substance reasonably satisfactory to the Collateral Agent, which Mortgage Modification and other instruments shall be effective to maintain a first priority Lien on such Mortgaged Property, as the case may be, subject to no Liens other than Permitted Encumbrances and shall be prior and superior in right to any other Person other than with respect to Permitted Priority Encumbrances, in each case, applicable to such Mortgaged Property;

 

 

(ii)          fully paid modification and date-down endorsements to the Mortgage Policies, to the extent available in the applicable jurisdiction, insuring the Mortgages as modified by the Mortgage Modifications to be valid first and subsisting Liens on the property described therein, free and clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, other than Permitted Encumbrances;

 

(iii)       such affidavits, certificates, information and/or instruments of indemnification as may be reasonably acceptable to the title companies issuing the endorsements to the Mortgage Policies in order to issue the applicable endorsements to the Mortgage Policies in accordance with item (ii) above;

 

(iv)      evidence of flood insurance required by Section 5.02(c) of the Credit Agreement, in form and substance reasonably satisfactory to Administrative Agent;

 

(v)         all such other items as shall be necessary in the reasonable opinion of counsel to the Administrative Agent to continue to create a valid and perfected first priority mortgage Lien on such Mortgaged Property, subject only to Permitted Encumbrances; and

 

(vi)      opinions of local counsel for the Loan Parties in states in which the Mortgaged Properties are located, with respect to the enforceability and validity of the Mortgages as modified by the Mortgage Modifications and any related fixture filings in form and substance reasonably satisfactory to the Administrative Agent.

 

 

SCHEDULE C
 TO AGREEMENT

 

MORTGAGED PROPERTIES

 

	
Name of Debtor/Grantor
    	
 
    	
Address/City/State/Zip Code
    	
 
    	
Filing Office
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Enviva Pellets Amory, LLC
    	
 
    	
205 Martin Luther King Blvd
   Amory, MS 38821
    	
 
    	
Monroe County Chancery Clerk
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Enviva Pellets Northampton, LLC
    	
 
    	
874 Lebanon Church Road
   Garysburg, NC 27831
    	
 
    	
Northampton Register of Deeds
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Enviva Port of Chesapeake, LLC
    	
 
    	
1213 Victory Blvd.
   Chesapeake, VA 23323
    	
 
    	
City of Chesapeake Circuit Court Clerk; City of   Portsmouth Circuit Court Clerk
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Enviva Pellets Ahoskie, LLC
    	
 
    	
142 NC Route 561 East
   Ahoskie, NC 27910
    	
 
    	
Hertford County Register of Deeds
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Enviva Pellets Cottondale, LLC
    	
 
    	
2500 Green Circle Pkwy
   Cottondale, FL 32431
    	
 
    	
Jackson County Clerk of CourtExhibit 4.2

 

RENNOVA HEALTH, INC.

FORM OF WARRANT AGENCY AGREEMENT

 

WARRANT AGENCY AGREEMENT (this “Warrant
Agreement”) made as of December ___, 2015 (the “Issuance Date”), between Rennova Health, Inc., a Delaware corporation
(“Company”), and ____________________ a ___________________ (“Warrant Agent”).

 

WHEREAS, the Company is engaged in a public
offering (the “Offering”) of Common Stock and Warrants and, in connection therewith, has determined to issue and deliver
up to _______ Warrants (the “Warrants”) to the public investors, with each such Warrant evidencing the right of the
holder thereof to purchase one share of common stock, par value $.01 per share, of the Company’s Common Stock (the “Common
Stock”) for $_____, subject to adjustment as described herein; and

 

WHEREAS, the Company has filed with the
U.S. Securities and Exchange Commission (the “Commission”) a Registration Statement, No. 333-208157 on Form S-1 (as
the same may be amended from time to time, the “Registration Statement”) for the registration, under the Securities
Act of 1933, as amended (the “Securities Act”) of, among other securities, the Warrants and the Common Stock issuable
upon exercise of the Warrants (the “Warrant Shares”), and such Registration Statement was declared effective on December
___, 2015; and

 

WHEREAS, the Company desires the Warrant
Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration,
transfer, exchange and exercise of the Warrants; and

 

WHEREAS, the Company desires to provide
for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights,
limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants (each, a “Holder”);
and

 

WHEREAS, all acts and things have been done
and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or on behalf
of the Warrant Agent, as provided herein, the valid and binding obligations of the Company, and to authorize the execution and
delivery of this Warrant Agreement.

 

NOW, THEREFORE, in consideration of the
mutual agreements herein contained, the parties hereto agree as follows:

 

1. Appointment of Warrant Agent.
The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant Agent hereby accepts
such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Warrant Agreement.

 

2. Warrants.

 

2.1. Form of Warrant.
Each Warrant shall be issued in registered form only, shall be in substantially the form of Exhibit A hereto,
the provisions of which are incorporated herein, and shall be signed by, or bear the facsimile signature of, the Chief
Executive Officer, President, Chief Financial Officer or Treasurer, and the Secretary or Assistant Secretary of the Company and
shall bear a facsimile of the Company’s seal. In the event the person whose facsimile signature has been placed upon
any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued,
it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance. All of the Warrants
shall initially be represented by one or more book-entry certificates (each a “Book-Entry Warrant
Certificate”).

 

2.2. Effect of Countersignature. Unless
and until countersigned by the Warrant Agent pursuant to this Warrant Agreement, a Warrant shall be invalid and of no effect and
may not be exercised by a Holder.

 

 

    	 	1	 

     

    

 

 

2.3. Registration.

 

2.3.1. Warrant Register. The Warrant
Agent shall maintain books (“Warrant Register”), for the registration of the original issuance and the registration
of any transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants
in the names of the respective Holders in such denominations and otherwise in accordance with instructions delivered to the Warrant
Agent by the Company. To the extent the Warrants are DTC eligible as of the Issuance Date, all of the Warrants shall be represented
by one or more Book-Entry Warrant Certificates deposited with the Depository Trust Company (the “Depository”) and registered
in the name of Cede & Co., a nominee of the Depository. Ownership of beneficial interests in the Book-Entry Warrant Certificates
shall be shown on, and the transfer of such ownership shall be effected through, records maintained (i) by the Depository or its
nominee for each Book-Entry Warrant Certificate; (ii) by institutions that have accounts with the Depository (such institution,
with respect to a Warrant in its account, a “Participant”); or (iii) directly on the book-entry records of the Warrant
Agent with respect only to owners of beneficial interests that represent such direct registration.

 

If the Warrants are not DTC Eligible as
of the Issuance Date or the Depository subsequently ceases to make its book-entry settlement system available for the Warrants,
the Company may instruct the Warrant Agent to make other arrangements for book-entry settlement within ten (10) Business Days after
the Depository ceases to make its book-entry settlement available. In the event that the Company does not make alternative arrangements
for book-entry settlement within ten (10) Business Days or the Warrants are not eligible for, or it is no longer necessary to have
the Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depository to deliver to
the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company shall instruct the Warrant Agent to deliver
to the Depository definitive Warrant Certificates in physical form evidencing such Warrants. Such definitive Warrant Certificates
shall be in substantially the form annexed hereto as Exhibit A.

 

As used herein, the term “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized
or required by law or executive order to remain closed.

 

2.3.2. Beneficial Owner; Registered Holder.
Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the
person in whose name such Warrant shall be registered upon the Warrant Register (“registered holder”), as the absolute
owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on the
Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and for
all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Any person in
whose name ownership of a beneficial interest in the Warrants evidenced by a Book-Entry Warrant Certificate is recorded in the
records maintained by the Depository or its nominee shall be deemed the “beneficial owner” thereof; provided,
that all such beneficial interests shall be held through a Participant which shall be the registered holder of such Warrants. As
used herein, the term “Holder” refers only to a registered holder of the Warrants.

 

2.4. Uncertificated Warrants. Notwithstanding
the foregoing and anything else herein to the contrary, the Warrants may be issued in uncertificated form.

 

3. Terms and Exercise of Warrants.

 

3.1. Exercise Price. Each Warrant shall,
when countersigned by the Warrant Agent, entitle the Holder, subject to the provisions of such Warrant and of this Warrant Agreement,
to purchase from the Company the number of shares of Common Stock stated therein, at the price of $____ per whole share, subject
to the subsequent adjustments provided in Section 4 hereof. The term “Exercise Price” as used in this Warrant Agreement
refers to the price per share at which Common Stock may be purchased at the time a Warrant is exercised.

 

3.2. Duration of Warrants. A Warrant
may be exercised only during the period (“Exercise Period”) commencing on the Issuance Date and terminating at 5:00 P.M.,
New York City time on December ____, 2020 (“Expiration Date”). Each Warrant not exercised on or before the Expiration
Date shall become void, and all rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at
the close of business on the Expiration Date.

 

 

    	 	2	 

     

    

 

3.3. Exercise of Warrants.

 

3.3.1. Exercise and Payment. A Holder
may exercise a Warrant by delivering, not later than 5:00 P.M., New York City time, on any Business Day during the Exercise
Period (the “Exercise Date”) to the Warrant Agent at its corporate trust department (i) the Warrant Certificate evidencing
the Warrants to be exercised, or, in the case of a Book-Entry Warrant Certificate, the Warrants to be exercised (the “Book-Entry
Warrants”) shown on the records of the Depository to an account of the Warrant Agent at the Depository designated for such
purpose in writing by the Warrant Agent to the Depository from time to time, (ii) an election to purchase the Warrant Shares underlying
the Warrants to be exercised (an “Election to Purchase”), properly completed and executed by the Holder on the reverse
of the Warrant Certificate or, in the case of a Book-Entry Warrant Certificate, properly delivered by the Participant in accordance
with the Depository’s procedures, and (iii) the Exercise Price for each Warrant to be exercised in lawful money of the United
States of America by certified or official bank check or by bank wire transfer in immediately available funds.

 

If any of (A) the Warrant Certificate or
the Book-Entry Warrants, (B) the Election to Purchase, or (C) the Exercise Price therefor, is received by the Warrant Agent after
5:00 P.M., New York City time, on the specified Exercise Date, the Warrants will be deemed to be received and exercised on
the Business Day next succeeding the Exercise Date. If the date specified as the Exercise Date is not a Business Day, the Warrants
will be deemed to be received and exercised on the next succeeding day that is a Business Day. If the Warrants are received or
deemed to be received after the Expiration Date, the exercise thereof will be null and void and any funds delivered to the Warrant
Agent will be returned to the Holder. In no event will interest accrue on funds deposited with the Warrant Agent in respect of
an exercise or attempted exercise of Warrants. The validity of any exercise of Warrants will be determined by the Company in its
sole discretion and such determination will be final and binding upon the Holder and the Warrant Agent. Neither the Company nor
the Warrant Agent shall have any obligation to inform a Holder of the invalidity of any exercise of any Warrants.

 

The Warrant Agent shall promptly deposit
all funds received by it in payment of the Exercise Price in the account of the Company maintained with the Warrant Agent for such
purpose and shall advise the Company via telephone at the end of each day on which funds for the exercise of the Warrants are received
of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephonic advice to the Company in writing.

 

3.3.2. Issuance of Certificates.
The Warrant Agent shall, by 11:00 A.M. New York City time on the Business Day following the Exercise Date of any Warrant,
advise the Company or the transfer agent and registrar in respect of (a) the number of Warrant Shares issuable upon such exercise
in accordance with the terms and conditions of this Warrant Agreement, (b) the instructions of each Holder with respect to delivery
of the Warrant Shares issuable upon such exercise, and the delivery of definitive Warrant Certificates, as appropriate, evidencing
the balance, if any, of the Warrants remaining after such exercise, (c) in case of a Book-Entry Warrant Certificate, the notation
that shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant,
as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise and (d) such other information as
the Company or such transfer agent and registrar shall reasonably require.

 

The Company shall, by 5:00 P.M., New
York City time, on the third Business Day next succeeding the Exercise Date of any Warrant and the clearance of the funds in payment
of the aggregate Exercise Price, execute, issue and deliver to the Warrant Agent, the Warrant Shares to which such Holder is entitled,
in fully registered form, registered in such name or names as may be directed by such Holder. Upon receipt of such Warrant Shares,
the Warrant Agent shall, by 5:00 P.M., New York City time, on the third Business Day next succeeding such Exercise Date, transmit
such Warrant Shares to, or upon the order of, such Holder.

 

In lieu of delivering physical certificates
representing the Warrant Shares issuable upon exercise of any Warrants, provided the Company’s transfer agent is participating
in the Depository’s Fast Automated Securities Transfer program, the Company shall use its commercially reasonable efforts
to cause its transfer agent to electronically transmit the Warrant Shares issuable upon exercise to the Depository by crediting
the account of the Depository or of the Participant, as the case may be, through its Deposit Withdrawal Agent Commission system.
The time periods for delivery described in the immediately preceding paragraph shall apply to the electronic transmittals described
herein.

 

 

    	 	3	 

     

    

 

3.3.3. Valid Issuance. All Warrant
Shares issued upon the proper exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid
and nonassessable.

 

3.3.4. No Fractional Exercise. Warrants
may be exercised only in whole numbers of Warrant Shares. No fractional Warrant Shares are to be issued upon the exercise of a
Warrant, but rather the number of Warrant Shares to be issued shall be rounded up or down, as applicable, to the nearest whole
number. If fewer than all of the Warrants evidenced by a Warrant Certificate are exercised, a new Warrant Certificate for the number
of unexercised Warrants remaining shall be executed by the Company and countersigned by the Warrant Agent as provided in Section
2 of this Warrant Agreement, and delivered to the Holder at the address specified on the books of the Warrant Agent or as otherwise
specified by such Holder. If fewer than all of the Warrants evidenced by a Book-Entry Warrant Certificate are exercised, a notation
shall be made to the records maintained by the Depository, its nominee for each Book-Entry Warrant Certificate, or a Participant,
as appropriate, evidencing the balance of the Warrants remaining after such exercise.

 

3.3.5. No Transfer Taxes. The Company
shall not be required to pay any stamp or other tax or governmental charge required to be paid in connection with any transfer
involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that any such transfer is involved,
the Company shall not be required to issue or deliver any Warrant Shares until such tax or other charge shall have been paid or
it has been established to the Company’s satisfaction that no such tax or other charge is due.

  

3.3.6. Date of Issuance. Each person
in whose name any such certificate for Warrant Shares is issued shall for all purposes be deemed to have become the holder of record
of such shares on the date on which the applicable Warrant was surrendered and payment of the Exercise Price was made, irrespective
of the date of delivery of any such certificate, except that, if the date of such surrender and payment is a date when the stock
transfer books of the Company are closed, such person shall be deemed to have become the holder of record of such shares at the
close of business on the next succeeding date on which the stock transfer books are open.

 

3.3.7. Cashless Exercise Under Certain
Circumstances.

 

(i) The Company shall provide to the Holder
prompt written notice of any time that the Company is unable to issue the Warrant Shares via DTC transfer or otherwise (without
restrictive legend), because (A) the Commission has issued a stop order with respect to the Registration Statement, (B) the Commission
otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, (C) the
Company has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or (D) otherwise
(each a “Restrictive Legend Event”). To the extent that a Restrictive Legend Event occurs after the Holder has exercised
a Warrant in accordance with the terms of the Warrants but prior to the delivery of the Warrant Shares, the Company shall, at the
election of the Holder to be given within five (5) Business Days of receipt of notice of the Restrictive Legend Event, either (A)
rescind the previously submitted Election to Purchase and the Company shall return all consideration paid by the Holder for such
shares upon such rescission or (B) treat the attempted exercise as a cashless exercise as described in the next paragraph and refund
the cash portion of the Exercise Price to the Holder.

 

(ii) If a Restrictive Legend Event has occurred
and no exemption from the registration requirements is available, the Warrants shall only be exercisable on a cashless basis. Notwithstanding
anything herein to the contrary, the Company shall not be required to make any cash payments or net cash settlement to the Holder
in lieu of issuance of the Warrant Shares. Upon a “cashless exercise,” the Holder shall be entitled to receive a certificate
(or book entry) for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

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

  

 

    	 	4	 

     

    

 

Upon receipt of an Election to Purchase for
a cashless exercise, the Warrant Agent will promptly deliver a copy of the Election to Purchase to the Company to confirm the number
of Warrant Shares issuable in connection with the cashless exercise. The Company shall calculate and transmit to the Warrant Agent,
and the Warrant Agent shall have no obligation under this section to calculate, the number of Warrant Shares issuable in connection
with the cashless exercise.

 

“VWAP” means, for any date, the
price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on NYSE MKT,
the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market or the New York Stock Exchange (each, a “Trading
Market”), the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the
Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a trading day from 9:30 a.m.
(New York City time) to 4:02 p.m. (New York City time) on any day that the Trading Market on which the Common Stock is then
listed is open for trading), (b) the volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and
if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser
selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

3.3.8. Disputes. In the case of a
dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly
issue to the applicable Holders the number of Warrant Shares that are not disputed.

 

4. Adjustments.

 

4.1. Adjustment upon Subdivision or Combination
of Common Stock. If the Company at any time after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization,
reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise
Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be
proportionately increased. If the Company at any time after the Issuance Date combines (by any stock split, stock dividend, recapitalization,
reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be
proportionately decreased. Any adjustment under this Section 4.1 shall become effective at the close of business on the date the
subdivision or combination becomes effective. The Company shall promptly notify Warrant Agent of any such adjustment and give specific
instructions to Warrant Agent with respect to any adjustments to the Warrant Register.

 

4.2. Adjustment for Other Distributions.
In the event the Company shall fix a record date for the making of a dividend or distribution to all holders of Common Stock of
any evidences of indebtedness or assets or subscription rights or warrants (excluding those referred to in Section 4.1 or other
dividends paid out of retained earnings), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution
by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator
shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets
or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of
Directors in good faith. In either case the adjustments shall be described in a statement provided to each Holder of the portion
of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned
above.

  

 

 

    	 	5	 

     

    

 

4.3. Reclassification, Consolidation, Purchase,
Combination, Sale or Conveyance. If, at any time while the Warrants are outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another person whereby such other person acquires more
than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other person or other
persons making or party to, or associated or affiliated with the other persons making or party to, such stock or share purchase
agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of
a Warrant, each Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental Transaction, the same amount and kind of securities, cash or property,
if any, of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of
shares of Common Stock for which each Warrant is exercisable immediately prior to such Fundamental Transaction. 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 that such Holder receives upon any exercise of each Warrant following such Fundamental Transaction. The Company shall
cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”)
and for which stockholders received any equity securities of the Successor Entity, to assume in writing all of the obligations
of the Company under this Warrant Agreement in accordance with the provisions of this Section 4.3 pursuant to written agreements
and shall, upon the written request of such Holder, deliver to such Holder in exchange for the applicable Warrants created by this
Warrant Agreement a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to the Warrants which are exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity), if any, plus any Alternate Consideration, receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which the Warrants are exercisable immediately prior to such Fundamental Transaction, and with an
exercise price which applies the Exercise Price hereunder to such shares of capital stock, if any, plus any Alternate Consideration
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of such Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence
of any such Fundamental Transaction the Successor Entity shall succeed to, and be substituted for (so that from and after the date
of such Fundamental Transaction, the provisions of this Warrant Agreement and the Warrants referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant Agreement and the Warrants with the same effect as if such Successor Entity had been
named as the Company herein and therein.

 

The Company shall instruct the Warrant Agent
to mail, by first class mail, postage prepaid, to each Holder, written notice of the execution of any such amendment, supplement
to this Warrant Agreement and/or the Warrants or other agreement. Any such amendment, supplement or other agreement entered into
by the Successor Entity shall provide for adjustments, which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Section 4. The Warrant Agent shall be under no responsibility to determine the correctness of any provisions
contained in such amendment, supplement or other agreement relating either to the kind or amount of securities or other property
receivable upon exercise of the Warrants or with respect to the method employed and provided therein for any adjustments and shall
be entitled to rely upon the provisions contained in any such amendment, supplement or other agreement. The provisions of this
Section 4.3 shall similarly apply to successive reclassifications, changes, consolidations, mergers, sales and conveyances of the
kind described above.

 

 

    	 	6	 

     

    

 

4.4. Other Events. If any event occurs
of the type contemplated by the provisions of Section 4.1, 4.2 or 4.3 but not expressly provided for by such provisions (including,
without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features to all
holders of Common Stock for no consideration), then the Company’s Board of Directors will in good faith make an adjustment
in the Exercise Price and the number of Warrant Shares so as to protect the rights of each Holder.

 

4.5. Notices of Changes in Warrant.
Upon every adjustment of the Exercise Price or the number of Warrant Shares, the Company shall give written notice thereof to the
Warrant Agent, which notice shall state the Exercise Price resulting from such adjustment and the increase or decrease, if any,
in the number of Warrant Shares purchasable upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation
and the facts upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1, 4.2 or 4.3, then,
in any such event, the Company shall give written notice to each Holder, at the last address set forth for such Holder in the Warrant
Register, of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such event.

 

4.6. No Fractional Shares. Notwithstanding
any provision contained in this Warrant Agreement to the contrary, the Company shall not issue fractional shares upon exercise
of Warrants. If, by reason of any adjustment made pursuant to this Section 4, a Holder would be entitled, upon the exercise of
such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round up or down, as applicable,
to the nearest whole number the number of Warrant Shares to be issued to such Holder.

 

4.7. Form of Warrant. The form of Warrant
annexed hereto as Exhibit A need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued
after such adjustment may state the same Exercise Price and the same number of shares as is stated in the Warrants initially issued
pursuant to this Warrant Agreement. However, the Company may at any time in its sole discretion make any change in the form of
Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued
or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

 

5. Transfer and Exchange of Warrants.

 

5.1. Registration of Transfer. The
Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register, upon surrender
of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions
for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants shall be issued and the
old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent to the Company
from time to time upon request.

 

5.2. Procedure for Surrender of Warrants.
Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or transfer reasonably acceptable
to Warrant Agent, duly executed by the Holder thereof, or by a duly authorized attorney, and thereupon the Warrant Agent shall
issue in exchange therefor one or more new Warrants as requested by the Holder of the Warrants so surrendered, representing an
equal aggregate number of Warrants; provided, however, that except as otherwise provided herein or in any Book-Entry Warrant Certificate,
each Book-Entry Warrant Certificate may be transferred only in whole and only to the Depository, to another nominee of the Depository,
to a successor depository, or to a nominee of a successor depository; provided further, however, that in the event that a Warrant
surrendered for transfer bears a restrictive legend, the Warrant Agent shall not cancel such Warrant and issue new Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be
made and indicating whether the new Warrants must also bear a restrictive legend. Upon any such registration of transfer, the Company
shall execute, and the Warrant Agent shall countersign and deliver, in the name of the designated transferee a new Warrant Certificate
or Warrant Certificates of any authorized denomination evidencing in the aggregate a like number of unexercised Warrants.

 

 

    	 	7	 

     

    

 

5.3. Fractional Warrants. The Warrant
Agent shall not be required to effect any registration of transfer or exchange which will result in the issuance of a Warrant Certificate
for a fraction of a Warrant.

 

5.4. Service Charges. A service charge
shall be made for any exchange or registration of transfer of Warrants, as negotiated between Company and Warrant Agent.

 

5.5. Warrant Execution and Countersignature.
The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Warrant Agreement, the
Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the Warrant
Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

  

6. Limitations on Exercise. Neither
the Warrant Agent nor the Company shall effect any exercise of any Warrant, and no Holder shall have the right to exercise any
portion of a Warrant, to the extent that after giving effect to the issuance of shares of Common Stock after exercise as set forth
on the applicable Election to Purchase, such Holder (together with such Holder’s Affiliates (as defined in Rule 405 under
the Securities Act), and any other persons acting as a group together with such Holder or any of such Holder’s Affiliates),
would beneficially own in excess of 4.99% of the Company’s Common Stock. For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by a Holder and its Affiliates shall include the number of shares of Common Stock
issuable upon exercise of the Warrant with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which would be issuable upon exercise of the remaining, nonexercised portion of any Warrant beneficially owned
by such Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 6, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and the rules and regulations promulgated thereunder, it being acknowledged by each Holder that neither the Warrant
Agent nor the Company is representing to such Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and such Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the
limitation contained in this Section 6 applies, the determination of whether a Warrant is exercisable (in relation to other securities
owned by a Holder together with any Affiliates) and of which portion of a Warrant is exercisable shall be in the sole discretion
of a Holder, and the submission of an Election to Purchase shall be deemed to be such Holder’s determination of whether such
Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates) and of which portion
of a Warrant is exercisable, and neither the Warrant Agent nor the Company shall have any obligation to verify or confirm the accuracy
of such determination and neither of them shall have any liability for any error made by such Holder. In addition, a determination
as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. For purposes of this Section 6, in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or
(C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common
Stock outstanding. The provisions of this Section 6 shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 6 to correct this subsection (or any portion hereof) which may be defective or inconsistent with
the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor Holder.

 

7. Other Provisions Relating to Rights
of Holders of Warrants.

 

7.1. No Rights as Stockholder. Except
as otherwise specifically provided herein, a Holder, solely in its capacity as an owner of a Warrant, shall not be entitled to
vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained
in this Warrant Agreement be construed to confer upon a Holder, solely in its capacity as the owner of a Warrant, any of the rights
of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive
dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled
to receive upon the due exercise of a Warrant. For the avoidance of doubt, ownership of a Warrant does not entitle the Holder or
any beneficial owner thereof to any of the rights of a stockholder.

 

 

    	 	8	 

     

    

 

7.2. Lost, Stolen, Mutilated, or Destroyed
Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to
indemnity (including obtaining an open penalty bond protecting the Warrant Agent) or otherwise as they may in their discretion
impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination,
tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual
obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable
by anyone.

 

7.3. Reservation of Common Stock. The
Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will
be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant Agreement.

 

8. Concerning the Warrant Agent and Other
Matters.

 

8.1. Concerning the Warrant Agent.
The Warrant Agent:

 

a) shall have no duties or obligations other
than those set forth herein and no duties or obligations shall be inferred or implied;

 

b) may rely on and shall be held harmless
by the Company in acting upon any certificate, statement, instrument, opinion, notice, letter, facsimile transmission, telegram
or other document, or any security delivered to it, and reasonably believed by it to be genuine and to have been made or signed
by the proper party or parties;

 

c) may rely on and shall be held harmless
by the Company in acting upon written or oral instructions or statements from the Company with respect to any matter relating to
its acting as Warrant Agent;

 

d) may consult with counsel satisfactory
to it (including counsel for the Company) and shall be held harmless by the Company in relying on the advice or opinion of such
counsel in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or
opinion of such counsel;

 

e) solely shall make the final determination
as to whether or not a Warrant received by Warrant Agent is duly, completely and correctly executed, and Warrant Agent shall be
held harmless by the Company in respect of any action taken, suffered or omitted by Warrant Agent hereunder in good faith and in
accordance with its determination;

 

f) shall not be obligated to take any legal
or other action hereunder which might, in its judgment, subject or expose it to any expense or liability unless it shall have been
furnished with an indemnity satisfactory to it; and

 

g) shall not be liable or responsible for
any failure of the Company to comply with any of the Company’s obligations relating to the Registration Statement or this
Warrant Agreement, including without limitation obligations under applicable regulation or law.

 

8.2. Payment of Taxes. The Company
will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect
of the issuance or delivery of Warrant Shares upon the exercise of Warrants, but the Company shall not be obligated to pay any
transfer taxes in respect of the Warrants or such Warrant Shares. The Warrant Agent shall not register any transfer or issue or
deliver any Warrant Certificate(s) or Warrant Shares unless or until the persons requesting the registration or issuance shall
have paid to the Warrant Agent for the account of the Company the amount of such tax, if any, or shall have established to the
reasonable satisfaction of the Company that such tax, if any, has been paid.

 

 

    	 	9	 

     

    

 

8.3. Resignation, Consolidation, or Merger
of Warrant Agent.

 

8.3.1. Appointment of Successor Warrant
Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further
duties and liabilities hereunder after giving sixty (60) calendar days’ notice in writing to the Company. If the office of
the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor
Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30)
calendar days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the Holder (who
shall, with such notice, submit such Holder’s Warrants for inspection by the Company), then such Holder may apply to the
Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent, the expenses
of which shall be paid by the Company. Any successor Warrant Agent (but not including the initial Warrant Agent), whether appointed
by the Company or by such court, shall be a corporation organized and existing under the laws of the State of New York, in good
standing and having its principal office in the Borough of Manhattan, City of New York and State of New York, and authorized under
such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment,
any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its
predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed;
but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense
of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor
Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver
any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all
such authority, powers, rights, immunities, duties, and obligations.

 

8.3.2. Notice of Successor Warrant Agent.
In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent
and the transfer agent for the Common Stock not later than the effective date of any such appointment.

 

8.3.3. Merger or Consolidation of Warrant
Agent. Any corporation into which the Warrant Agent may be merged or with which it may be consolidated or any corporation resulting
from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Warrant
Agreement without any further act.

 

8.4. Fees and Expenses of Warrant Agent.

 

8.4.1. Remuneration. The Company
agrees to pay the Warrant Agent reasonable remuneration in an amount separately agreed to between Company and Warrant Agent for
its services as Warrant Agent hereunder and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant
Agent may reasonably incur in the execution of its duties hereunder. One half of the total Warrant Agent fees (not including postage)
must be paid upon execution of this Warrant Agreement. The remaining half must be paid within fifteen (15) Business Days thereafter.
An invoice for any out-of-pocket and/or per item fees incurred will be rendered to and payable by the Company within fifteen (15)
Business Days of the date of said invoice. It is understood and agreed that all services to be performed by Warrant Agent shall
cease if full payment for its services has not been received in accordance with the above schedule, and said services will not
commence thereafter until all payment due has been received by Warrant Agent.

 

8.4.2. Further Assurances. The Company
agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all such further
and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing
of the provisions of this Warrant Agreement.

 

 

 

    	 	10	 

     

    

 

8.5. Liability of Warrant Agent.

 

8.5.1. Reliance on Company Statement.
Whenever in the performance of its duties under this Warrant Agreement, the Warrant Agent shall deem it necessary or desirable
that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or
matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a statement signed by the President, Chief Executive Officer or Chief Financial Officer of the Company and delivered
to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant
to the provisions of this Warrant Agreement.

  

8.5.2. Indemnity. The Warrant Agent
shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees to indemnify the
Warrant Agent and save it harmless against any and all liabilities, including judgments, claims, losses, damages, costs and reasonable
counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant Agreement except as a result of
the Warrant Agent’s gross negligence, willful misconduct, or bad faith.

 

8.5.3. Limitation of Liability. The
Warrant Agent’s aggregate liability, if any, during the term of this Warrant Agreement with respect to, arising from, or
arising in connection with this Warrant Agreement, or from all services provided or omitted to be provided under this Warrant Agreement,
whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid or payable hereunder by the
Company to Warrant Agent as fees and charges (not including reimbursable expenses).

 

8.5.4. Disputes. In the event any
question or dispute arises with respect to the proper interpretation of this Warrant Agreement or the Warrant Agent’s duties
hereunder or the rights of the Company or of any Holder, the Warrant Agent shall not be required to act and shall not be held liable
or responsible for refusing to act until the question or dispute has been judicially settled (and the Warrant Agent may, if it
deems it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory judgment for such purpose)
by final judgment rendered by a court of competent jurisdiction, binding on all parties interested in the matter which is no longer
subject to review or appeal, or settled by a written document in form and substance satisfactory to the Warrant Agent and executed
by the Company and each other interested party. In addition, the Warrant Agent may require for such purpose, but shall not be obligated
to require, the execution of such written settlement by all of the Holders of the Warrants and all other parties that may have
an interest in the settlement.

 

8.5.5. Exclusions. The Warrant Agent
shall have no responsibility with respect to the validity of this Warrant Agreement or with respect to the validity or execution
of any Warrant (except its countersignature hereof and thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Warrant Agreement or in any Warrant; nor shall it be responsible to make any adjustments
required under the provisions of Section 4 hereof or responsible for the manner, method, or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any Warrant Shares to be issued pursuant to this Warrant
Agreement or any Warrant or as to whether any Warrant Shares will, when issued, be validly issued and fully paid and nonassessable.

 

8.6. Acceptance of Agency. The Warrant
Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform the same upon the terms and conditions
herein set forth and, among other things, shall account promptly to the Company with respect to Warrants exercised and concurrently
account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase of Warrant Shares through the exercise
of Warrants.

 

9. Miscellaneous Provisions.

 

9.1. Successors. All the covenants
and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns.

 

 

 

    	 	11	 

     

    

 

9.2. Notices. Any notice, statement
or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent or by a Holder to or on the Company shall
be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service
within five (5) Business Days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing
by the Company with the Warrant Agent), as follows:

 

Rennova Health, Inc.

400 South Australian Avenue, Suite 800

West Palm Beach, Florida 33401

Attn: Chief Executive Officer

 

Any notice, statement or demand authorized
by this Warrant Agreement to be given or made by  a Holder or by the Company to or on the Warrant Agent shall be sufficiently
given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5)
Business Days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant
Agent with the Company), as follows:

 

[_______________________]

[_______________________]

[_______________________]

Attn: [__________]

 

with a copy in each case to:

 

Akerman LLP

One Southeast Third Avenue, 25th Floor

Miami, FL 33131

Attn: J. Thomas Cookson, Esq.

 

and:

 

Aegis Capital Corp.

810 Seventh Avenue, 11th Fl

New York, NY 10019

Attn: Compliance Department

 

and:

 

Zysman Aharoni Gayer and

Sullivan & Worcester LLP

1633 Broadway

New York, New York 10019

Attn: Oded Har-Even, Esq.

  

9.3. Applicable Law. The validity,
interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed in all respects by the laws of
the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating
in any way to this Warrant Agreement shall be brought and enforced in the courts of the State of New York or the United States
District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be
exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or
certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim.

 

9.4. Persons Having Rights under
this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from any of the
provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the
parties hereto and the Holders of the Warrants and, for purposes of Sections 3.3 and 9.3, the underwriters identified in the
Registration Statement (the “Underwriters”) and for purposes of Section 9.8, the Representative (as defined in
the Registration Statement), any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant,
condition, stipulation, promise, or agreement hereof. The Underwriters and Representative shall be deemed to be an express
third-party beneficiary of this Warrant Agreement with respect to Sections 3.3, 9.3 and 9.8 hereof, as applicable. All
covenants, conditions, stipulations, promises, and agreements contained in this Warrant Agreement shall be for the sole and
exclusive benefit of the parties hereto (and the Underwriters and Representative with respect to the Sections 3.3, 9.3 and
9.8 hereof, as applicable) and their successors and assigns and of the Holders.

 

 

    	 	12	 

     

    

 

9.5. Examination of this Warrant Agreement.
A copy of this Warrant Agreement shall be available at all reasonable times at the office of the Warrant Agent in the City of New
York, State of New York, for inspection by any Holder. The Warrant Agent may require any such Holder to submit his Warrant for
inspection by it.

 

9.6. Counterparts. This Warrant Agreement
may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

9.7. Effect of Headings. The Section
headings herein are for convenience only and are not part of this Warrant Agreement and shall not affect the interpretation thereof.

 

9.8. Amendments. This Warrant Agreement
may be amended by the parties hereto without the consent of any Holder for the purpose of curing any ambiguity, or of curing, correcting
or supplementing any defective provision contained herein or adding or changing any other provisions with respect to matters or
questions arising under this Warrant Agreement as the parties may deem necessary or desirable and that the parties deem shall not
adversely affect the interest of the Holders. All other modifications or amendments, including any amendment to increase the Exercise
Price or shorten the Exercise Period, shall require the written consent of the Representative and the Holders of a majority of the
then outstanding Warrants.

 

9.9. Severability. This Warrant Agreement
shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity
or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

  

9.10. Force Majeure. In the event either
party is unable to perform its obligations under the terms of this Warrant Agreement because of acts of God, strikes, failure of
carrier or utilities, equipment or transmission failure or damage that is reasonably beyond its control, or any other cause that
is reasonably beyond its control, such party shall not be liable for damages to the other for any damages resulting from such failure
to perform or otherwise from such causes. Performance under this Warrant Agreement shall resume when the affected party or parties
are able to perform substantially that party’s duties.

 

9.11. Consequential Damages. Notwithstanding
anything in this Warrant Agreement to the contrary, neither party to this Warrant Agreement shall be liable to the other party
for any consequential, indirect, special or incidental damages under any provision of this Warrant Agreement or for any consequential,
indirect, punitive, special or incidental damages arising out of any act or failure to act hereunder even if that party has been
advised of or has foreseen the possibility of such damages.

 

 

[Signature Page Follows]

 

 

    	 	13	 

     

    

 

  

IN WITNESS WHEREOF, this Warrant Agreement
has been duly executed by the parties hereto as of the day and year first above written.

 

RENNOVA
HEALTH, INC.

 

By:  ___________________________

Name: 

Title: 

 

 

[_______________________________]

 

By: 
___________________________

Name: 

Title: 

    

 

 

 

 

    	 	14	 

     

    

 

 

Exhibit A

 

[FORM OF WARRANT CERTIFICATE]

 

EXERCISABLE ONLY IF COUNTERSIGNED BY THE
WARRANT

AGENT AS PROVIDED HEREIN.

 

Warrant Certificate Evidencing Warrants
to Purchase

Common Stock, par value of $0.01 per share, as described herein.

 

 

RENNOVA HEALTH, INC.

	No. ___________	CUSIP  

 

VOID AFTER 5:00 P.M., NEW YORK CITY
TIME,

ON _______ __, 2020

 

This certifies that ________________________
or registered assigns is the registered holder (the “Holder”) of _____________________ warrants to purchase certain
securities (each a “Warrant”). Each Warrant entitles the Holder, subject to the provisions contained herein
and in the Warrant Agreement (as defined below), to purchase from Rennova Health, Inc., a Delaware corporation (the “Company”),
one share (collectively, the “Warrant Shares”) of Common Stock, par value $0.01 per share, of the Company (“Common
Stock”), at the Exercise Price set forth below. The price per share at which each Warrant Share may be purchased at the
time each Warrant is exercised (the “Exercise Price”) is $____ initially, subject to adjustments as set forth
in the Warrant Agreement (as defined below).

 

This Warrant
Certificate is issued under and in accordance with the Warrant Agreement, dated as of [_____ _], 2015 (the “Warrant Agreement”),
between the Company and the Warrant Agent, and is subject to the terms and provisions contained in the Warrant Agreement, to all
of which terms and provisions the Holder of this Warrant Certificate and the beneficial owners of the Warrants represented by this
Warrant Certificate consent by acceptance hereof. Copies of the Warrant Agreement are on file and can be inspected at the below-mentioned
office of the Warrant Agent and at the office of the Company at 400 South Australian Avenue, Suite 800, West
Palm Beach, Florida 33401. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Warrant
Agreement.

 

Subject to the terms of the Warrant Agreement,
each Warrant evidenced hereby may be exercised in whole but not in part at any time, as specified herein, on any Business Day (as
defined below) occurring during the period (the “Exercise Period”) commencing on the Issuance Date and terminating
at 5:00 P.M., New York City time, on December __, 2020 (the “Expiration Date”). Each Warrant remaining
unexercised after 5:00 P.M., New York City time, on the Expiration Date shall become void, and all rights of the Holder of
this Warrant Certificate evidencing such Warrant shall cease.

 

The Holder of the Warrants represented by
this Warrant Certificate may exercise any Warrant evidenced hereby by delivering, not later than 5:00 P.M., New York City
time, on any Business Day during the Exercise Period (the “Exercise Date”) to [__________________] (the
“Warrant Agent”, which term includes any successor warrant agent under the Warrant Agreement described below)
at its corporate trust department at [ ], (i) this Warrant Certificate or, in the case of a Book-Entry Warrant Certificate (as
defined in the Warrant Agreement), the Warrants to be exercised (the “Book-Entry Warrants”) as shown on the
records of The Depository Trust Company (the “Depository”) to an account of the Warrant Agent at the Depository
designated for such purpose in writing by the Warrant Agent to the Depository, (ii) an election to purchase (“Election
to Purchase”), properly executed by the Holder hereof on the reverse of this Warrant Certificate or properly executed
by the institution in whose account the Warrant is recorded on the records of the Depository (the “Participant”),
and substantially in the form included on the reverse of this Warrant Certificate and (iii) unless cashless exercise is permitted
under the Warrant Agreement, the Exercise Price for each Warrant to be exercised in lawful money of the United States of America
by certified or official bank check or by bank wire transfer in immediately available funds, in each case payable to the order
of the Company.

  

 

 

    	 	15	 

     

    

 

As used herein, the term “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized
or required by law or executive order to remain closed.

 

Warrants may be exercised only in whole
numbers of Warrants. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of
Warrant Shares to be issued shall be rounded up or down, as applicable, to the nearest whole number. If fewer than all of the Warrants
evidenced by this Warrant Certificate are exercised, a new Warrant Certificate for the number of Warrants remaining unexercised
shall be executed by the Company and countersigned by the Warrant Agent as provided in Section 2 of the Warrant Agreement, and
delivered to the Holder of this Warrant Certificate at the address specified on the books of the Warrant Agent or as otherwise
specified by such Holder.

 

The Company shall provide to the Holder
prompt written notice of any time that the Company is unable to issue the Warrant Shares via DTC transfer or otherwise (without
restrictive legend), because (A) the Commission has issued a stop order with respect to the Registration Statement, (B) the Commission
otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, (C) the
Company has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or (D) otherwise
(each a “Restrictive Legend Event”). To the extent that a Restrictive Legend Event occurs after the Holder has
exercised a Warrant in accordance with the terms of the Warrants but prior to the delivery of the Warrant Shares, the Company shall,
at the election of the Holder to be given within five (5) Business Days of receipt of notice of the Restrictive Legend Event, either
(A) rescind the previously submitted Election to Purchase and the Company shall return all consideration paid by the Holder for
such shares upon such rescission or (B) treat the attempted exercise as a cashless exercise as described in the next paragraph
and refund the cash portion of the exercise price to the Holder.

 

If a Restrictive Legend Event has occurred
and no exemption from the registration requirements is available, the Warrant shall only be exercisable on a cashless basis. Notwithstanding
anything herein to the contrary, the Company shall not be required to make any cash payments or net cash settlement to the Holder
in lieu of issuance of the Warrant Shares. Upon a “cashless exercise,” the Holder shall be entitled to receive a certificate
(or book entry) for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

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

  

Upon receipt of an Election to Purchase
for a cashless exercise, the Warrant Agent will promptly deliver a copy of the Election to Purchase to the Company to confirm the
number of Warrant Shares issuable in connection with the cashless exercise. The Company shall calculate and transmit to the Warrant
Agent, and the Warrant Agent shall have no obligation under this section to calculate, the number of Warrant Shares issuable in
connection with the cashless exercise.

 

“VWAP” means, for any
date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted
on NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange
(each, a “Trading Market”), the daily volume weighted average price of the Common Stock for such date (or the
nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P.
(based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time) on any day that the Trading
Market on which the Common Stock is then listed is open for trading), (b) the volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for
trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published
by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid
price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as
determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding
and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

 

    	 	16	 

     

    

 

The Exercise Price and the number of Warrant
Shares purchasable upon the exercise of each Warrant shall be subject to adjustment as provided pursuant to Section 4 of the Warrant
Agreement.

 

Upon due presentment for registration of
transfer or exchange of this Warrant Certificate at the stock transfer division of the Warrant Agent, the Company shall execute,
and the Warrant Agent shall countersign and deliver, as provided in Section 5 of the Warrant Agreement, in the name of the designated
transferee one or more new Warrant Certificates of any authorized denomination evidencing in the aggregate a like number of unexercised
Warrants, subject to the limitations provided in the Warrant Agreement.

 

Neither this Warrant Certificate nor the
Warrants evidenced hereby entitles the Holder to any of the rights of a stockholder of the Company, including, without limitation,
the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent or to receive notice
as stockholders in respect of the meetings of stockholders or the election of directors of the Company or any other matter.

 

The Warrant Agreement and this Warrant Certificate
may be amended as provided in the Warrant Agreement including, under certain circumstances described therein, without the consent
of the Holder of this Warrant Certificate or the Warrants evidenced thereby.

 

THIS WARRANT CERTIFICATE AND ALL RIGHTS
HEREUNDER AND UNDER THE WARRANT AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION.

 

This Warrant Certificate shall not be entitled
to any benefit under the Warrant Agreement or be valid or obligatory for any purpose, and no Warrant evidenced hereby may be exercised,
unless this Warrant Certificate has been countersigned by the manual signature of the Warrant Agent.

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	Dated as of ________ __, 2015	 	 
	 	 	 
	 	RENNOVA HEALTH, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

[______________________], as Warrant Agent

	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

 

    	 	17	 

     

    

  

[REVERSE]

 

Instructions for Exercise of Warrant

 

To exercise the Warrants evidenced hereby,
the Holder must, by 5:00 P.M., New York City time, on the specified Exercise Date, deliver to the Warrant Agent at its stock
transfer division, a certified or official bank check or a bank wire transfer in immediately available funds, in each case payable
to the Company, in an amount equal to the Exercise Price in full for the Warrants exercised. In addition, the Holder must provide
the information required below and deliver this Warrant Certificate to the Warrant Agent at the address set forth below and the
Book-Entry Warrants to the Warrant Agent in its account with the Depository designated for such purpose. The Warrant Certificate
and this Election to Purchase must be received by the Warrant Agent by 5:00 P.M., New York City time, on the specified Exercise
Date.

 

ELECTION TO PURCHASE

TO BE EXECUTED IF WARRANT HOLDER DESIRES

TO EXERCISE THE WARRANTS EVIDENCED HEREBY

 

The undersigned hereby irrevocably elects
to exercise, on __________, ____ (the “Exercise Date”), __________ Warrants, evidenced by this Warrant Certificate,
to purchase, __________ shares (the “Warrant Shares”) of Common Stock, par value of $0.001 per share (the “Common
Stock”) of Rennova Health, Inc., a Delaware corporation (the “Company”), and represents that on or
before the Exercise Date:

 

o such Holder has
tendered payment for such Warrant Shares by certified or official bank check payable to the order of the Company c/o [_________________], [ ], or by bank wire transfer in immediately available funds payable to the Company at Account No. [ ], in
each case in the amount of $_______ in accordance with the terms hereof, or

 

o [if permitted]
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 3.3.7
of the Warrant Agreement, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to
the cashless exercise procedure set forth in subsection 3.3.7.

 

The undersigned requests that said number of Warrant Shares
be in fully registered form, registered in such names and delivered, all as specified in accordance with the instructions set forth
below.

 

If said number of Warrant Shares is less
than all of the Warrant Shares purchasable hereunder, the undersigned requests that a new Warrant Certificate evidencing the remaining
balance of the Warrants evidenced hereby be issued and delivered to the Holder of the Warrant Certificate unless otherwise specified
in the instructions below.

  

Dated: ________ __, ____

 

 

	 	Name	 	 
	 	 	(Please Print)	 

 

/   /   /   / - /   /   / - /   /   /   /   /

(Insert Social Security or Other Identifying Number
of Holder)

 

	 	Address	__________________________
	 	 	__________________________
	 	 	 
	 	Signature	__________________________

 

This Warrant may only be exercised by presentation
to the Warrant Agent at one of the following locations:

 

	 	By hand at:  	_________________________
	 	 	 
	 	 	 
	 	 	 
	 	By mail at:	_________________________
	 	 	 
	 	 	 

 

 

 

    	 	18	 

     

    

 

 

The method of delivery of this Warrant Certificate is at the
option and risk of the exercising Holder and the delivery of this Warrant Certificate will be deemed to be made only when actually
received by the Warrant Agent. If delivery is by mail, registered mail with return receipt requested, properly insured, is recommended.
In all cases, sufficient time should be allowed to ensure timely delivery.

 

(Instructions as to form and delivery of Warrant Shares and/or
Warrant Certificates)

 

	Name in which Warrant Shares are to be registered if other than in the name of the Holder of this Warrant Certificate:	 	
 

	 	 	 
	Address to which Warrant Shares are to be mailed if other than to the address of the Holder of this Warrant Certificate as shown on the books of the Warrant Agent:	 	
 

	 	 	(Street Address)
	 	 	 
	 	 	
 

	 	 	(City and State) (Zip Code)
	 	 	 
	Name in which Warrant Certificate evidencing unexercised Warrants, if any, is to be registered if other than in the name of the Holder of this Warrant Certificate:	 	
 

	 	 	 
	Address to which certificate representing unexercised Warrants, if any, is to be mailed if other than to the address of the Holder of this Warrant Certificate as shown on the books of the Warrant Agent:	 	
 

	 	 	(Street Address)
	 	 	 
	 	 	
 

	 	 	(City and State) (Zip Code)
	 	 	 
	 	 	Dated:
	 	 	 
	 	 	
 

	 	 	Signature
	 	 	 
	 	 	Signature must conform in all respects to the name of the Holder as specified on the face of this Warrant Certificate.  If Warrant Shares, or a Warrant Certificate evidencing unexercised Warrants, are to be issued in a name other than that of the Holder hereof or are to be delivered to an address other than the address of such Holder as shown on the books of the Warrant Agent, the above signature must be guaranteed by a an Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).

 

SIGNATURE GUARANTEE

     

	Name of Firm	_______________________________
	Address	_______________________________
	Area Code	 
	and Number	_______________________________
	 	 
	Authorized	 
	Signature	_______________________________
	Name	_______________________________
	Title	_______________________________
	Dated:	________________________, 20____

 

  

 

 

    	 	19	 

     

    

 

 

ASSIGNMENT

 

(FORM OF ASSIGNMENT TO BE EXECUTED IF WARRANT
HOLDER

DESIRES TO TRANSFER WARRANTS EVIDENCED HEREBY)

 

FOR VALUE RECEIVED, ____________ HEREBY SELL(S), ASSIGN(S) AND
TRANSFER(S) UNTO

 

	
 

	 	 
	
 

	 	 
	
 

	 	 
	
 

	 	
 

	(Please print name and address

including zip code of assignee)	 	(Please insert social security or

other identifying number of assignee)

 

the rights represented by the within Warrant Certificate and
does hereby irrevocably constitute and appoint ____________ Attorney to transfer said Warrant Certificate on the books of the Warrant
Agent with full power of substitution in the premises.

 

	 	Dated:
	 	 
	 	 
	 	Signature
	 	 
	 	(Signature must conform in all respects to the name of the Holder as specified on the face of this Warrant Certificate and must bear a signature guarantee by an Eligible Guarantor Institution (as that term is defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended).

 

SIGNATURE GUARANTEE

     

	Name of Firm	_______________________________
	Address	_______________________________
	Area Code	 
	and Number	_______________________________
	 	 
	Authorized	 
	Signature	_______________________________
	Name	_______________________________
	Title	_______________________________
	Dated:	________________________, 20____

 

  

 

 

    	 	20

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