Document:

CYTOSORBENTS CORPORATION

PLACEMENT AGENCY AGREEMENT

March 7, 2014

 

Brean Capital, LLC

1345 Avenue of the Americas

New York, NY 10105

 

Ladies and Gentlemen:

 

1.        Introductory.
Cytosorbents Corporation, a Nevada corporation (the “Company”), proposes, pursuant to the terms of this
Placement Agency Agreement (this “Agreement”) and the subscription agreements in the form of Exhibit A
attached hereto (the “Subscription Agreements”) entered into with the purchasers identified therein (each a
“Purchaser” and collectively, the “Purchasers”), to sell to the Purchasers up to an aggregate
of 40,800,000 units (the “Units”) with each Unit consisting of one (1) share (collectively, the “Shares”)
of common stock, par value $0.001 per share (the “Common Stock”) of the Company and a warrant to purchase one
half of one (1/2) Share (collectively, the “Warrants”). The Company hereby confirms its agreement with Brean
Capital, LLC (“Brean” or the “Placement Agent”), to act as lead placement agent in accordance
with the terms and conditions hereof as set forth below.

 

2.        Agreement
to Act as Placement Agent; Placement of Shares. On the basis of the representations, warranties and agreements of
the Company herein contained, and subject to all the terms and conditions of this Agreement:

 

(a)          The
Company engages the Placement Agent to act as its exclusive agents, on a best efforts basis, in connection with the issuance and
sale by the Company of the Shares (the “Offering”). Until the Closing Date (defined below), the Company shall
not, without the prior consent of Brean, solicit or accept offers to purchase Shares, or securities convertible into or exercisable
or exchangeable for Shares, otherwise than through the Placement Agent.

 

(b)          Under
no circumstances will the Placement Agent be obligated to purchase any Units, Shares, Warrants or Warrant Shares (collectively,
the “Securities”), for their own account and, in soliciting purchases of Units, the Placement Agent shall act
solely as the Company’s agent and not as principal.

 

(c)          Subject
to the provisions of this Section 2, offers for the purchase of Units may be solicited by the Placement Agent as agent for the
Company at such times and in such amounts as the Placement Agent deems advisable. The Placement Agent shall communicate to the
Company, orally or in writing, each reasonable offer to purchase Units received by it as agent of the Company. The Company shall
have the sole right to accept offers to purchase the Units and may reject any such offer, in whole or in part. The Placement Agent
shall have the right, in its discretion reasonably exercised, with notice to the Company, to reject any offer to purchase Units
received by it, in whole or in part, and any such rejection shall not be deemed a breach of their agreement contained herein.

 

(d)          The
purchases of the Units by the Purchasers shall be evidenced by the execution of Subscription Agreements by each of the parties
thereto.

 

(e)          As
full compensation for services rendered, on the Closing Date, the Company shall (i) pay to the Placement Agent by wire transfer
of immediately available funds to an account or accounts designated by the Placement Agent, an aggregate amount equal to 6% of
the gross proceeds received by the Company from the sale of the Units on the Closing Date (the “Cash Fee”) and
(ii) a warrant which shall be exercisable for 1,224,000 shares of Common Stock at a price equal $0.30 per share (the “Warrant
Fee” and together with the Cash Fee, the “Placement Fee”) pursuant to and in accordance with Section
II of that certain engagement letter by and among the Company and the Placement Agent dated as of March 6, 2013 and as modified
by the letter agreements dated February 14, 2014, February 17, 2014 and February 21, 2014 (collectively, the “Engagement
Letter”). At the Closing, the Company shall direct the Escrow Agent (defined below) to wire to an account or accounts
designated by the Placement Agent such amounts out of the Escrow Funds (defined below).

 

    	 

    	 

    

 

(f)          No
Units that the Company has agreed to sell pursuant to this Agreement shall be deemed to have been purchased and paid for, or sold
by the Company, until such Units shall have been delivered to the Purchaser thereof against payment by such Purchaser. If the Company
shall default in its obligations to deliver Units to a Purchaser whose offer it has accepted, the Company shall indemnify and hold
the Placement Agent harmless against any loss, claim or damage arising from or as a result of such default by the Company.

 

3.        Delivery
and Payment.

 

(a)          Concurrently
with the execution and delivery of this Agreement, the Company, the Placement Agent and Continental Stock Transfer and Trust Company,
as escrow agent (the “Escrow Agent”), shall enter into an escrow agreement (the “Escrow Agreement”),
pursuant to which an escrow account (the “Escrow Account”) will be established for the benefit of the Company
and the Purchasers. Prior to the completion of the purchase and sale of the Units pursuant to this Agreement and the Subscription
Agreements (the “Closing”), each such Purchaser shall deposit into the Escrow Account an amount equal to the
product of (x) the number of Units such Purchaser has agreed to purchase and (y) the purchase price per Units as set forth in the
Subscription Agreements (the “Purchase Amount”). The aggregate of such Purchase Amounts is herein referred to
as the “Escrow Funds.” On the Closing Date, upon satisfaction or waiver of all of the conditions to Closing,
the Escrow Agent will disburse the Escrow Funds to the Company and the Placement Agent as provided in the Escrow Agreement and
Section 2(e) above, and the Company shall cause the Units to be delivered to the Purchasers.

 

(b)          Subject
to the terms and conditions hereof, delivery of the Shares shall be made by the Company to the Purchasers, and payment of the purchase
price shall be made by the Purchasers, at the office of Szaferman, Lakind, Blumstein & Blader, P.C., 101 Grovers Mill Road,
Suite 200, Lawrenceville, NJ 08648 (or at such other place as agreed upon by the Placement Agent and the Company), at 10:00 a.m.,
New York City time, on or before March 11, 2014 or at such time on such other date as may be agreed upon in writing by the Company
and Brean but in no event prior to the date on which the Escrow Agent shall have received all of the Escrow Funds (such date of
delivery and payment is hereinafter referred to as the “Closing Date”). The Shares shall be delivered, through
the facilities of The Depository Trust Company, to such persons, and shall be registered in such name or names and shall be in
such denominations, as the Placement Agent may request by written notice to the Company at least one business day before the Closing
Date. The cost of original issue tax stamps and other transfer taxes, if any, in connection with the issuance and delivery of the
Shares by the Company to the respective Purchasers shall be borne by the Company.

 

4.       Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with, the Placement Agent that:

 

(a)          Filing
and Effectiveness of Registration Statement; Certain Defined Terms. The Company has filed with the Commission a registration
statement on Form S-1 (No. 333-193053), including a related prospectus or prospectuses, covering the registration of the Units
under the Act, which registration statement has become effective. “Registration Statement” at any particular
time means such registration statement in the form then filed with the Commission, including any amendment thereto, any document
incorporated by reference therein and all 430A Information with respect to such registration statement, that in any case has not
been superseded or modified. “Registration Statement” without reference to a time means the Registration Statement
as of the Effective Date. For purposes of this definition, 430A Information shall be considered to be included in the Registration
Statement as of the time specified in Rule 430A. If the Company has filed an abbreviated registration statement to register additional
securities pursuant to Rule 462(b) under the Act (the “462(b) Registration Statement”), then any such reference
herein to the Registration Statement shall also be deemed to include such 462(b) Registration Statement.

 

For purposes of this Agreement:

 

“430A Information”
means information included in a prospectus then deemed to be a part of the Registration Statement pursuant to Rule 430A.

 

    	 

    	 

    

 

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

 

“Applicable Time”
means 5:00 p.m. (Eastern time) on the date of this Agreement.

 

“Closing Date”
has the meaning defined in Section 3 hereof.

 

“Commission”
means the Securities and Exchange Commission.

 

“Effective Date”
of the Registration Statement means February 14, 2014.

 

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

 

“Final Prospectus”
means the Statutory Prospectus that discloses the public offering price, other 430A Information and other final terms of the Units
and otherwise satisfies Section 10(a) of the Act.

 

“General Use Issuer Free
Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution to prospective
investors, as evidenced by its being so specified in Schedule A to this Agreement.

 

“Issuer Free Writing Prospectus”
means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Shares in the form filed or required
to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to
Rule 433(g).

 

“Limited Use Issuer Free
Writing Prospectus” means any Issuer Free Writing Prospectus that is not a General Use Issuer Free Writing Prospectus.

 

“Rules and Regulations”
means the rules and regulations of the Commission.

 

“Securities Laws”
means, collectively, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), the Act, the Exchange Act, the Rules
and Regulations, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined
in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board and the rules of the American Stock
Exchange.

 

“Statutory Prospectus”
with reference to any particular time means the prospectus relating to the Units that is included in the Registration Statement
immediately prior to that time, including any document incorporated by reference therein and all 430A Information with respect
to the Registration Statement. For purposes of the foregoing definition, 430A Information shall be considered to be included in
the Statutory Prospectus only as of the actual time that form of prospectus (including a prospectus supplement) is filed with the
Commission pursuant to Rule 424(b) and not retroactively.

 

Unless otherwise specified, a reference
to a “rule” is to the indicated rule under the Act.

 

(b)          Compliance
with Securities Act Requirements. (i) (A) At the time the Registration Statement initially became effective, (B) at the
time of each amendment thereto for the purposes of complying with Section 10(a)(3) of the Act (whether by post-effective amendment,
incorporated report or form of prospectus), (C) on the Effective Date relating to the Units and (D) on the Closing Date, the Registration
Statement conformed and will conform in all material respects to the requirements of the Act and the Rules and Regulations and
did not and will not include any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading and (ii) (A) on its date, (B) at the time of filing the Final Prospectus
pursuant to Rule 424(b) and (C) on the Closing Date, the Final Prospectus will conform in all material respects to the requirements
of the Act and the Rules and Regulations, and will not include any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The preceding sentence does not apply to statements in or omissions from any such document based upon written information furnished
to the Company by the Placement Agent, if any, specifically for use therein, it being understood and agreed that the only such
information is that described as such in Section 8(b) hereof.

 

    	 

    	 

    

 

(c)          Effectiveness.
No stop order of the Commission preventing or suspending the use of any Statutory Prospectus, the Final Prospectus, or
any Free Writing Prospectus, or the effectiveness of the Registration Statement, has been issued, and no proceedings for such purpose
have been instituted or, to the Company’s knowledge, are contemplated by the Commission.

 

(d)          Reserved.

 

(e)          General
Disclosure Package. As of the Applicable Time, neither (i) the General Use Issuer Free Writing Prospectus(es) issued at
or prior to the Applicable Time, together with the accompanying prospectus (which is the most recent Statutory Prospectus distributed
to investors generally) and any other documents listed or disclosures stated in Schedule A to this Agreement to be included
in the General Disclosure Package, all considered together (collectively, the “General Disclosure Package”),
nor (ii) any individual Limited Use Issuer Free Writing Prospectus, when considered together with the General Disclosure Package,
included any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to
statements in or omissions from any Statutory Prospectus or any Issuer Free Writing Prospectus in reliance upon and in conformity
with written information furnished to the Company by the Placement Agent specifically for use therein, it being understood and
agreed that the only such information furnished by the Placement Agent consists of the information described as such in Section
8(b) hereof.

 

(f)          Issuer
Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through
the completion of the public offer and sale of the Shares or until any earlier date that the Company notified or notifies the Placement
Agent as described in the next sentence, did not, does not and will not include any information that conflicted, conflicts or will
conflict with the information then contained in the Registration Statement. If at any time following issuance of an Issuer Free
Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted
or would conflict with the information then contained in the Registration Statement or as a result of which such Issuer Free Writing
Prospectus, if republished immediately following such event or development, would include an untrue statement of a material fact
or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, (i) the Company has promptly notified or will promptly notify the Placement Agent and
(ii) the Company has promptly amended or will promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or
correct such conflict, untrue statement or omission. The foregoing two sentences do not apply to statements in or omissions from
any Issuer Free Writing Prospectus in reliance upon and in conformity with written information furnished to the Company by the
Placement Agent specifically for use therein, it being understood and agreed that the only such information furnished by the Placement
Agent consists of the information described as such in Section 8(b) hereof.

 

(g)          Incorporated
Documents. The documents incorporated by reference in the Registration Statement and the General Disclosure Package
and the Final Prospectus, when they became effective or were filed with the Commission, as the case may be, conformed in all material
respects to the requirements of the Securities Act and the Exchange Act, as applicable and none of such documents contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; and any further documents so
filed and incorporated by reference in the Registration Statement and the General Disclosure Package and the Final Prospectus,
when such documents become effective or are filed with the Commission, as the case may be, will conform in all material respects
to the requirements of the Act or the Exchange Act, as applicable, and will not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

 

    	 

    	 

    

 

(h)          Financial
Statements. The financial statements and the notes related thereto or incorporated by reference in the Registration
Statement and the General Disclosure Package and the Final Prospectus present fairly the financial condition of the Company and
its consolidated subsidiaries as of the respective dates thereof and the results of operations and cash flows of the Company and
its consolidated subsidiaries for the respective periods covered thereby, all in conformity with generally accepted accounting
principles applied on a consistent basis throughout the entire period involved, except where and to the extent noted. WithumSmith
+ Brown, PC (“Accountants”), who have reported on such financial statements and schedules, are independent accountants
with respect to the Company as required by the Act and the Rules and Regulations of the Public Company Accounting Oversight Board
(“PCAOB”). To the knowledge and belief of the Company, such accounting firm (i) is a registered public accounting firm
as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the
Company’s Annual Report for the fiscal years ending December 31, 2013 and December 31, 2014. The
summary and selected consolidated financial and statistical data included in or incorporated by reference into the Registration
Statement present fairly the information shown therein and have been derived on a basis consistent with the audited financial statements
presented in the Registration Statement. 

 

(i)          No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated
by reference in the Registration Statement and the General Disclosure Package and the Final Prospectus, (i) except for the issuance
of options under option plans of the Company described therein or shares issued upon the exercise of such options or other convertible
securities there has not been any change in the capital stock or long-term debt of the Company or any of its subsidiaries, or any
dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock,
or any material adverse change, or any development involving a prospective material adverse change, in or affecting the business,
properties, management, financial position, stockholders’ equity, results of operations or prospects of the Company and its
subsidiaries taken as a whole; (ii) neither the Company nor any of its subsidiaries has entered into any transaction or agreement,
other than in the ordinary course of business that is material to the Company and its subsidiaries taken as a whole or incurred
any liability or obligation, direct or contingent, that is material to the Company and its subsidiaries taken as a whole; and (iii)
neither the Company nor any of its subsidiaries has sustained any material loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or
decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in the Registration
Statement and the General Disclosure Package and the Final Prospectus.

 

(j)          Organization
and Good Standing. The Company and each of its subsidiaries have been duly organized and are validly existing and
in good standing under the laws of their respective jurisdictions of organization, are duly qualified to do business and are in
good standing in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective
businesses requires such qualification, and have all corporate power and authority necessary to own or hold their respective properties
and to conduct the businesses in which they are engaged, except where the failure to be so qualified or have such power or authority
would not, individually or in the aggregate, have a material adverse effect on the business, properties, management, financial
position, stockholders’ equity, results of operations or prospects of the Company and its Subsidiaries taken as a whole (a
“Material Adverse Effect”). The Company does not own or control, directly or indirectly, any corporation, association
or other entity other than the subsidiaries listed in Exhibit 21.1 to the Company’s annual report on Form 10-K for the fiscal
year ended December 31, 2012.

 

(k)          Capitalization.
The Company has an authorized capitalization as set forth in the Registration Statement and the General Disclosure Package
and the Final Prospectus under the heading “Capitalization”(except for subsequent issuances, if any, pursuant to this
Agreement, pursuant to reservations, agreements or employee benefit plans referred to in the Final Prospectus or pursuant to the
exercise of convertible securities or options referred to in the Final Prospectus); all the outstanding shares of capital stock
of the Company have been duly and validly authorized and issued and are fully paid and non-assessable and are not subject to any
pre-emptive or similar rights; except as described in or expressly contemplated by the General Disclosure Package and the Final
Prospectus, there are no outstanding rights (including, without limitation, pre-emptive rights), warrants or options to acquire,
or instruments convertible into or exchangeable for, any shares of capital stock or other equity interest in the Company or any
of its subsidiaries, or any contract, commitment, agreement, understanding or arrangement of any kind relating to the issuance
of any capital stock of the Company or any such subsidiary, any such convertible or exchangeable securities or any such rights,
warrants or options; the capital stock of the Company conforms in all material respects to the description thereof contained in
the Registration Statement and the General Disclosure Package and the Final Prospectus; and all the outstanding shares of capital
stock or other equity interests of each subsidiary of the Company have been duly and validly authorized and issued, are fully paid
and non-assessable and are owned directly or indirectly by the Company, free and clear of any lien, charge, encumbrance, security
interest, restriction on voting or transfer or any other claim of any third party. The Company has never been an issuer subject
to Rule 144(i) under the Securities Act.

 

    	 

    	 

    

 

(l)          Due
Authorization. The Company has full right, power and authority to execute and deliver this Agreement and to perform
its obligations hereunder; and all action required to be taken for the due and proper authorization, execution and delivery by
it of this Agreement and the consummation by it of the transactions contemplated hereby has been duly and validly taken.

 

(m)          Placement
Agency Agreement. This Agreement has been duly authorized, executed and delivered by the Company.

 

(n)          The
Units. The Units, the Shares, the Warrants and the shares of Common Stock issuable upon exercise of the Warrants
(the “Warrant Shares”) have been duly authorized by the Company and, when issued and delivered and paid for
as provided herein, will be duly and validly issued and will be fully paid and nonassessable and will conform to the descriptions
thereof in the General Disclosure Package and the Final Prospectus; and the issuance of the Units, the Shares, the Warrants and
the Warrant Share is not in violation of any preemptive or similar rights.

 

(o)          Description
of Placement Agency Agreement. This Agreement conforms in all material respects to the description thereof contained
in the Registration Statement and the General Disclosure Package and the Final Prospectus.

 

(p)          No
Violation or Default. Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws
or other organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party
or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of
its subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court
or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default
or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(q)          No
Conflicts. The execution, delivery and performance by the Company of this Agreement, the issuance and sale of the
Securities and the consummation of the transactions contemplated by this Agreement will not (i) conflict with or result in a breach
or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by
which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries
is subject, (ii) result in any violation of the provisions of the charter or by-laws of the Company or any of its subsidiaries
or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority having jurisdiction over the Company or any of its subsidiaries, except, in the case of clauses
(i) and (iii) above, for any such conflict, breach, violation, default, lien, charge or encumbrance that would not, individually
or in the aggregate, have a Material Adverse Effect.

 

(r)          No
Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court
or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company of
this Agreement, the issuance and sale of the Securities and the consummation of the transactions contemplated by this Agreement,
except for the registration of the Shares under the Securities Act and such consents, approvals, authorizations, orders and registrations
or qualifications as may be required under applicable state securities laws in connection with the purchase and distribution of
the Units by the Placement Agent.

 

    	 

    	 

    

 

(s)          Legal
Proceedings. Except as described in the Registration Statement and the General Disclosure Package and the Final
Prospectus, there are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which the Company
or any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries is or may be
the subject that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could reasonably
be expected to have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations
under this Agreement; no such investigations, actions, suits or proceedings are, to the knowledge of the Company, threatened by
any governmental or regulatory authority or threatened by others; and (i) there are no current or pending legal, governmental or
regulatory actions, suits or proceedings that are required under the Securities Act to be described in the Registration Statement
that are not so described in the Registration Statement and the General Disclosure Package and the Final Prospectus and (ii) there
are no contracts or other documents that are required under the Securities Act to be filed as exhibits to the Registration Statement
or described in the Registration Statement and the General Disclosure Package and the Final Prospectus that are not so filed as
exhibits to the Registration Statement or described in the Registration Statement and the General Disclosure Package and the Final
Prospectus.

 

(t)          Independent
Accountants. WithumSmith + Brown, PC, who have certified certain financial statements of the Company and its subsidiaries
is an independent registered public accounting firm with respect to the Company and its subsidiaries within the applicable rules
and regulations adopted by the Commission and the Public Accounting Oversight Board (United States) and as required by the Securities
Act.

 

(u)          Title
to Real and Personal Property. The Company and its subsidiaries have good and marketable title in fee simple to,
or have valid rights to lease or otherwise use, all items of real and personal property that are material to the respective businesses
of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances, claims and defects and imperfections
of title except as described in the General Disclosure Package and the Final Prospectus those that (i) do not materially interfere
with the use made and proposed to be made of such property by the Company and its subsidiaries or (ii) could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(v)         Title
to Intellectual Property. Except as described in the General Disclosure Package, the Company and its subsidiaries
own or possess adequate rights to use all material patents, patent applications, trademarks, service marks, trade names, trademark
registrations or applications therefor, service mark registrations or applications therefor, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures)
(collectively, “Intellectual Property”), that is used in the conduct of their respective businesses; and, to
the knowledge of the Company, the conduct of their respective businesses does not conflict in any material respect with any such
rights of others, and the Company has not received any written, or to the knowledge of the Company, other notice of infringement
of or conflict with, and the Company has no knowledge of any infringement of or conflict with, asserted rights of others with respect
to its Intellectual Property which could reasonably be expected to result in a Material Adverse Effect. Further, except as described
in the General Disclosure Package, or which would not reasonably be expected to result in a Material Adverse Effect, the Company
is not obligated to pay a royalty, grant a license or provide other consideration to any third party in connection with its Intellectual
Property; and, to the knowledge of the Company, no third party, including any academic or governmental organization, possesses
rights to the Company’s Intellectual Property which, if exercised, could enable such third party to develop products competitive
with those of the Company or its subsidiaries which could reasonably be expected to have a Material Adverse Effect.

 

(w)        Clinical
Trials. The studies, tests and preclinical and clinical trials conducted by or on behalf of the Company that are described
in the General Disclosure Package or the Final Prospectus (collectively, the “Products”) and that are described
as ongoing, or the results of which are referred to in the General Disclosure Package or the Final Prospectus, are the only studies,
tests and preclinical and clinical trials currently being conducted by or on behalf of the Company with respect to the Products.
Nothing has come to the attention of the Company that has caused the Company to believe that the studies, tests and preclinical
and clinical trials described in the General Disclosure Package and the Final Prospectus were not and, to the extent still pending,
are not being conducted in all material respects in accordance with experimental protocols, procedures and controls pursuant to
accepted professional scientific standards; the descriptions of the results of such studies, tests and trials contained in the
General Disclosure Package and the Final Prospectus are consistent in all material respects with such results. Except as described
in the General Disclosure Package and the Final Prospectus, no results of any other studies or tests have come to the attention
of the Company that have caused the Company to believe that such results are materially adverse to the results described in the
General Disclosure Package and the Final Prospectus of the clinical trials. The Company has not received any notices or correspondence
from the Food and Drug Administration (the “FDA”) or any other governmental agency requiring the termination,
suspension or modification of any clinical trials currently conducted by, or on behalf of, the Company or in which the Company
has participated.

 

    	 

    	 

    

 

(x)          No
Undisclosed Relationships. No relationship, direct or indirect, exists between or among the Company or any of its
subsidiaries, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any of its subsidiaries,
on the other, that is required by the Securities Act to be described in the Registration Statement and the General Disclosure Package
and the Final Prospectus and that is not so described in such documents.

 

(y)         Investment
Company Act. The Company is not and, after giving effect to the offering and sale of the Shares and the application
of the proceeds thereof as described in the Registration Statement and the General Disclosure Package and the Final Prospectus,
will not be required to register as an “investment company” or an entity “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission
thereunder (collectively, “Investment Company Act”).

 

(z)         Taxes.
The Company and its subsidiaries have paid all federal, state, local and foreign income taxes and filed all income tax returns
required to be paid or filed through the date hereof; and except as otherwise disclosed in the Registration Statement and the General
Disclosure Package and the Final Prospectus, there is no tax deficiency that has been, or could reasonably be expected to be, asserted
against the Company or any of its subsidiaries or any of their respective properties or assets, in each case, except as would not
have a Material Adverse Effect.

 

(aa)        Licenses
and Permits. The Company and its subsidiaries possess all licenses, certificates, permits and other authorizations
issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses
as described in the Registration Statement and the General Disclosure Package and the Final Prospectus, except where the failure
to possess or make the same would not, individually or in the aggregate, have a Material Adverse Effect; and except as described
in the Registration Statement and the General Disclosure Package and the Final Prospectus, neither the Company nor any of its subsidiaries
has received notice of any revocation or modification of any such license, certificate, permit or authorization or has any reason
to believe that any such license, certificate, permit or authorization will not be renewed in the ordinary course which, if the
subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect.

 

(bb)       No
Labor Disputes. No labor dispute with employees of the Company or any of its Subsidiaries exists or, to the knowledge
of the Company, is threatened and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the
employees of any of its or its Subsidiaries’ principal suppliers, contractors or customers, except, in each case, as would
not have a Material Adverse Effect.

 

(cc)       Compliance
With Environmental Laws. Except as described in the Final Prospectus, the Company and its subsidiaries (x) are in
compliance with any and all applicable federal, state, local and foreign laws, rules, regulations, requirements, decisions and
orders relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (collectively, “Environmental Laws”); (y) have received and are in compliance in all material
respects with all permits, licenses, certificates or other authorizations or approvals required of them under applicable Environmental
Laws to conduct their respective businesses; and (z) have not received written notice of any actual or potential liability for
the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants,
and (ii) there are no costs or liabilities associated with Environmental Laws of or relating to the Company or its subsidiaries,
except in the case of each of (i)(x) and (i)(y) above, for any such failure to comply, or failure to receive required permits,
licenses or approvals, or cost or liability, as would not, individually or in the aggregate, have a Material Adverse Effect.

 

    	 

    	 

    

 

(dd)       Compliance
With ERISA. Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the Company or any of its
affiliates for employees or former employees of the Company and its affiliates has been maintained in compliance in all material
respects with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited
to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); no prohibited transaction, within the
meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any such plan excluding transactions
effected pursuant to a statutory or administrative exemption; and for each such plan that is subject to the funding rules of Section
412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code
has been incurred, whether or not waived, and the fair market value of the assets of each such plan (excluding for these purposes
accrued but unpaid contributions) exceeds the present value of all benefits accrued under such plan determined using reasonable
actuarial assumptions, in each case except as described in the Final Prospectus or as would not have a Material Adverse Effect.

 

(ee)       Disclosure
Controls. Except as described in the General Disclosure Package and the Final Prospectus, the Company and its subsidiaries
maintain an effective system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange
Act) that is designed to ensure that information required to be disclosed by the Company in reports that it files or submits under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules
and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s
management as appropriate to allow timely decisions regarding required disclosure. The Company and its subsidiaries have carried
out evaluations of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.

 

(ff)         Accounting
Controls. Except as described in the General Disclosure Package and the Final Prospectus, the Company and its subsidiaries
maintain systems of “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act)
that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective
principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles, including, but not limited to internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except as disclosed in the Registration Statement and
the General Disclosure Package and the Final Prospectus, there are no material weaknesses in the Company’s internal controls.

 

(gg)       Insurance.
The Company and its Subsidiaries have insurance covering their respective properties, operations, personnel and businesses,
which insurance is in amounts and insures against such losses and risks as are customary within the industry to protect the Company
and its subsidiaries and their respective businesses; and neither the Company nor any of its subsidiaries has (i) received written
notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be
made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary
to continue its business.

 

(hh)       No
Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director,
officer, agent, employee or other person associated with or acting on behalf of the Company or any of its subsidiaries has (i)
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds;
(iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate,
payoff, influence payment, kickback or other unlawful payment.

 

    	 

    	 

    

 

(ii)         Compliance
with Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times
in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively,
the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws,
to the knowledge of the Company, is pending or threatened.

 

(jj)         Compliance
with OFAC. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer,
agent, employee or Affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of
any person currently subject to any U.S. sanctions administered by OFAC.

 

(kk)       No
Restrictions on Subsidiaries. No subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement
or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution
on such subsidiary’s capital stock, from repaying to the Company any loans or advances to such subsidiary from the Company
or from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the Company.

 

(ll)         No
Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding
with any person (other than this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries
or any Placement Agent for a brokerage commission, finder’s fee or like payment in connection with the offering and sale
of the Shares.

 

(mm)      No
Registration Rights. No person has the right to require the Company or any of its subsidiaries to register any securities
for sale under the Securities Act by reason of the filing of the Registration Statement with the Commission or the issuance and
sale of the Shares.

 

(nn)       No
Stabilization. The Company has not taken, directly or indirectly, any action designed to or that could reasonably
be expected to cause or result in any stabilization or manipulation of the price of the Shares.

 

(oo)      Margin
Rules. Neither the issuance, sale and delivery of the Shares nor the application of the proceeds thereof by the Company
as described in the Registration Statement and the General Disclosure Package and the Final Prospectus will violate Regulation
T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

 

(pp)       Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E
of the Exchange Act) contained in the Registration Statement and the General Disclosure Package and the Final Prospectus has been
made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. The statements and financial information
(including the assumptions described herein) included in the Registration Statement and the General Disclosure Package and the
Final Prospectus under the Heading “Preliminary Results for the Year Ended December 31, 2013” (collectively,
the “Projections”) (i) are within the coverage of the safe harbor for forward looking statements set forth in
Section 27A of the Securities Act, Rule 175(b) under the Securities Act or Rule 3b-6 under the Exchange Act, as applicable, (ii)
were made by the Company with a reasonable basis and in good faith and reflect the Company’s good faith best estimate of
the matters described therein, and (iii) have been prepared in accordance with Item 10 of Regulation S-K under the Securities Act;
all assumptions material to the Projections are set forth in the Registration Statement and the General Disclosure Package and
the Final Prospectus; the assumptions used in the preparation of the Projections are reasonable; and none of the Company or its
subsidiaries are aware of any business, economic or industry developments inconsistent with the assumptions underlying the Projections.

 

    	 

    	 

    

 

(qq)       Statistical
and Market Data. Nothing has come to the attention of the Company that has caused the Company to believe that the
statistical and market-related data included in the Registration Statement and the General Disclosure Package and the Final Prospectus
is not based on or derived from sources that are reliable and accurate in all material respects.

 

(rr)         Sarbanes-Oxley
Act. There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in
their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated
in connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and 906
related to certifications.

 

(ss)       Status
under the Securities Act. The Company is not an ineligible issuer as defined under the Securities Act, in each case at
the times specified in the Securities Act in connection with the offering of the Shares. The Company has paid the registration
fee for this offering pursuant to Rule 456(b)(1) under the Securities Act or will pay such fees within the time period required
by such rule (without giving effect to the proviso therein) and in any event prior to the Closing Date.

 

5.     Certain
Agreements of the Company. The Company agrees with the Placement Agent that it will furnish to counsel for the Placement
Agent one copy of the registration statement relating to the Units, including all exhibits, in the form it became effective and
of all amendments thereto and that, in connection with the offering of Units

 

(a)         Filing
of Prospectuses. The Company has filed or will file each Statutory Prospectus (including the Final Prospectus) pursuant
to and in accordance with Rule 424(b)(1) no later than the second business day following the earlier of the date of determination
of the offering price or the date it is first used after effectiveness in connection with a public offering or sales. The Company
has complied and will comply with Rule 433.

 

(b)         Filing
of Amendments; Response to Commission Requests. The Company will promptly advise the Placement Agent of any proposal to
amend or supplement the Registration Statement or any Statutory Prospectus until the completion of the purchase and sale of the
Shares contemplated herein and will afford the Placement Agent a reasonable opportunity to comment on any such proposed amendment
or supplement; and the Company will also advise the Placement Agent promptly of (i) the filing of any such amendment or supplement,
(ii) any request by the Commission or its staff for any amendment to the Registration Statement, for any supplement to any Statutory
Prospectus or for any additional information, (iii) the institution by the Commission of any stop order proceedings in respect
of the Registration Statement or the threatening of any proceeding for that purpose, and (iv) the receipt by the Company of any
notification with respect to the suspension of the qualification of the Shares (including the Shares) in any jurisdiction or the
institution or threatening of any proceedings for such purpose. The Company will use its best efforts to prevent the issuance of
any such stop order or the suspension of any such qualification and, if issued, to obtain as soon as possible the withdrawal thereof.

 

(c)         Continued
Compliance with Securities Laws. If, at any time when a prospectus relating to the Shares is (or but for the exemption
in Rule 172 under the Act would be) required to be delivered under the Act in connection with sales by the Company to any Purchasers,
any event occurs as a result of which the Final Prospectus as then amended or supplemented would include an untrue statement of
a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if it is necessary at any time to amend the Registration Statement or supplement
the Final Prospectus to comply with the Act, the Company will promptly notify the Placement Agent of such event and will promptly
prepare and file with the Commission and furnish, at its own expense, to the Placement Agent and, to the extent applicable, the
dealers and any other dealers upon request of the Placement Agent, an amendment or supplement which will correct such statement
or omission or an amendment which will effect such compliance. Neither the Placement Agent’ consent to, nor the Placement
Agent’ delivery of, any such amendment or supplement shall constitute a waiver of any of the conditions set forth in Section
7 hereof.

 

    	 

    	 

    

 

(d)         Rule
158. As soon as practicable, but not later than 16 months, after the date of this Agreement, the Company will make generally
available to its securityholders an earnings statement covering a period of at least 12 months beginning after the date of this
Agreement and satisfying the provisions of Section 11(a) of the Act and Rule 158.

 

(e)         Furnishing
of Prospectuses. The Company will furnish to the Placement Agent copies of the Registration Statement, including all exhibits,
any Statutory Prospectus relating to the Shares, the Final Prospectus and all amendments and supplements to such documents, in
each case as soon as available and in such quantities as the Placement Agent reasonably requests. The Company will pay the expenses
of printing and distributing to the Placement Agent all such documents.

 

(f)          Blue
Sky Qualifications. The Company will arrange for the qualification of the Securities for sale under the laws of such jurisdictions
as the Placement Agent designate and will continue such qualifications in effect so long as required for the distribution; provided
that the Company will not be required to qualify as a foreign corporation or to file a general consent to service of process in
any such jurisdiction or take any action that would subject it to taxation in any such jurisdiction where it is not then so subject.

 

(g)         Reporting
Requirements. During the period of five years after the date of the this Agreement, the Company will furnish to the Placement
Agent as soon as practicable after the end of each fiscal year, a copy of its annual report to stockholders for such year; and
the Company will furnish to the Placement Agent (i) as soon as available, a copy of each report and any definitive proxy statement
of the Company filed with the Commission under the Exchange Act or mailed to stockholders, and (ii) from time to time, such other
information concerning the Company as the Placement Agent may reasonably request in writing. However, so long as the Company is
subject to the reporting requirements of either Section 13 or Section 15(d) of the Exchange Act and is timely filing reports with
the Commission on its Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”), it is not required to furnish
such filed reports or statements to the Placement Agent required pursuant to subsection (i) above.

 

(h)          Payment
of Expenses. In accordance with and subject to the limitations contained in the Engagement Letter, the Company will pay
all fees and expenses incident to the performance of its obligations under this Agreement, including but not limited to (i) any
filing fees and other expenses (including reasonable fees and disbursements of counsel to the Placement Agent in accordance with
the terms of the Engagement Letter) incurred in connection with qualification of the Shares for sale under the laws of such jurisdictions
as the Placement Agent may designate and the preparation and printing of memoranda relating thereto, (ii) any costs and expenses
related to, the review by the Financial Industry Regulatory Authority (“FINRA”) of the Units (including filing
fees and the reasonable fees and disbursements of counsel for the Placement Agent relating to such review), (iii) any travel expenses
of the Company’s officers and employees and any other expenses of the Company in connection with attending or hosting meetings
with prospective purchasers of the Units, (iv) fees and expenses incident to listing the Shares on the OTC Bulletin Board and other
national and foreign exchanges, (v) fees and expenses in connection with the registration of the Shares under the Exchange Act,
(vi) fees and expenses incurred in distributing any Statutory Prospectuses and the Final Prospectus (including any amendments and
supplements thereto) to the Placement Agent and for expenses incurred for preparing, printing and distributing any Issuer Free
Writing Prospectuses to investors or prospective investors, (vii) fees and expenses of the Escrow Agent and under the Escrow Agreement
and (viii) all other costs and expenses incurred by the Company incident to the performance of the obligations of the Company hereunder
for which provision is not otherwise made in this Section.

 

(i)          Use
of Proceeds. The Company will use the net proceeds received in connection with any offering of the Shares in the manner
described in the “Use of Proceeds” section of the General Disclosure Package.

 

(j)          Absence
of Manipulation. The Company will not take, directly or indirectly, any action designed to or that would constitute or
that might reasonably be expected to cause or result in, stabilization or manipulation of the price of any securities of the Company
to facilitate the sale or resale of the Shares.

 

    	 

    	 

    

 

(k)          Restriction
on Sale of Securities. For the period specified below (the “Lock-Up Period”), the Company will not,
directly or indirectly, take any of the following actions with respect to its Common Stock or any securities convertible into or
exchangeable or exercisable for its Common Stock (“Lock-Up Securities”): (i) offer, sell, issue, contract to
sell, pledge or otherwise dispose of, Lock-Up Securities, (ii) offer, sell, issue, contract to sell, contract to purchase or grant
any option, right or warrant to purchase Lock-Up Securities, (iii) enter into any swap, hedge or any other agreement that transfers,
in whole or in part, the economic consequences of ownership of Lock-Up Securities, (iv) establish or increase a put equivalent
position or liquidate or decrease a call equivalent position in Lock-Up Securities within the meaning of Section 16 of the Exchange
Act or (v) file with the Commission a registration statement under the Act relating to Lock-Up Securities, or publicly disclose
the intention to take any such action, without the prior written consent of Brean, except issuances of Lock-Up Securities pursuant
to the conversion of convertible securities or the exercise of warrants or options, in each case outstanding on the date of this
Agreement, grants of employee stock options pursuant to the terms of a plan in effect on the date of this Agreement, or issuances
of Lock-Up Securities pursuant to the exercise of such options. The initial Lock-Up Period will commence on the date hereof and
continue for 90 days after the date hereof; provided, however, that if (1) during the last 17 days of the initial
Lock-Up Period, the Company releases earnings results or material news or a material event relating to the Company occurs or (2)
prior to the expiration of the initial Lock-Up Period, the Company announces that it will release earnings results during the 16-day
period beginning on the last day of the initial Lock-Up Period, then in each case the Lock-Up Period will be extended until the
expiration of the 18-day period beginning on the date of release of the earnings results or the occurrence of the materials news
or material event, as applicable, unless Brean waives, in writing, such extension. The Company will provide the Placement Agent
with notice of any announcement described above that gives rise to an extension of the Lock-Up Period. The Company and Brean shall
not waive compliance with this paragraph (k) during the 90 day period commencing on the date hereof without the consent of a majority
of the Company’s shareholders voting at a meeting held for the purpose thereof.

 

6.        Free
Writing Prospectuses. The Company represents and agrees that, unless it obtains the prior consent of the Placement Agent,
and the Placement Agent agrees that, unless it obtains the prior consent of the Company, it has not made and will not make any
offer relating to the Units that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free
writing prospectus,” as defined in Rule 405, required to be filed with the Commission. Any such free writing prospectus consented
to by the Company and the Placement Agent, each of which is set forth on Schedule A hereto, is hereinafter referred to as
a “Permitted Free Writing Prospectus.” The Company represents that it has treated and agrees that it will treat each
Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied
and will comply with the requirements of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including timely
Commission filing where required, leg ending and record keeping.

 

7.       Conditions
of the Obligations of the Placement Agent. The obligations of the Placement Agent hereunder will be subject to the accuracy
of the representations and warranties of the Company herein (as though made on such Closing Date), to the accuracy of the statements
of Company officers made pursuant to the provisions hereof, to the performance by the Company of its obligations hereunder and
to the following additional conditions precedent:

 

(a)         Registration
Compliance; No Stop Order. No order suspending the effectiveness of the Registration Statement shall be in effect,
and no proceeding for such purpose or pursuant to Section 8A under the Securities Act shall be pending before or threatened by
the Commission; the Final Prospectus and each Issuer Free Writing Prospectus shall have been timely filed with the Commission under
the Securities Act (in the case of an Issuer Free Writing Prospectus, to the extent required by Rule 433 under the Securities Act)
and in accordance with this Agreement; and all requests by the Commission for additional information shall have been complied with
to the reasonable satisfaction of the Representative.

 

(b)         Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct on
the date hereof and on and as of the Closing Date, as the case may be; and the statements of the Company and its officers made
in any certificates delivered pursuant to this Agreement shall be true and correct on and as of the Closing Date.

 

(c)         No
Downgrade. Subsequent to the execution and delivery of this Agreement, (i) no downgrading shall have occurred in
the rating accorded any securities or preferred stock of or guaranteed by the Company or any of its subsidiaries by any “nationally
recognized statistical rating organization”, as such term is defined by the Commission for purposes of Rule 436(g)(2) under
the Securities Act and (ii) no such organization shall have publicly announced that it has under surveillance or review, or has
changed its outlook with respect to, its rating of any securities or preferred stock of or guaranteed by the Company or any of
its subsidiaries (other than an announcement with positive implications of a possible upgrading).

 

    	 

    	 

    

 

(d)         No
Material Adverse Change. No event or condition of a type described in Section 4(i) hereof shall have occurred or
shall exist, which event or condition is not described in the General Disclosure Package (excluding any amendment or supplement
thereto) and the Final Prospectus (excluding any amendment or supplement thereto) and the effect of which in the judgment of Brean
is so material and adverse that it makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the
Units on the Closing Date, on the terms and in the manner contemplated by this Agreement, the General Disclosure Package and the
Final Prospectus.

 

(e)         Officer’s
Certificate. The Placement Agent shall have received on and as of the Closing Date, a certificate of the chief financial
officer or chief accounting officer of the Company and one additional senior executive officer of the Company who is satisfactory
to Brean (i) confirming that such officers have carefully reviewed the Registration Statement and the General Disclosure Package
and the Final Prospectus and, to the best knowledge of such officers, the representations set forth in Sections 4(b) and 4(e) hereof
are true and correct, (ii) confirming that the other representations and warranties of the Company in this Agreement are true and
correct and that the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied
hereunder at or prior to such Closing Date and (iii) to the effect set forth in paragraphs (a), (c) and (d) above.

 

(f)          Comfort
Letters. On the date of this Agreement and on the Closing Date, WithumSmith + Brown, PC shall have furnished to
the Placement Agent, at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the
Placement Agent, in form and substance reasonably satisfactory to Brean, containing statements and information of the type customarily
included in accountants’ “comfort letters” to Placement Agent with respect to the financial statements and certain
financial information contained or incorporated by reference in the Registration Statement and the General Disclosure Package and
the Final Prospectus; provided, that the letter delivered on the Closing Date shall use a “cut-off” date no more than
two business days prior to such Closing Date.

 

(g)         Opinions
of Counsel for the Company. Szaferman, Lakind, Blumstein & Blader, P.C., counsel for the Company, shall have
furnished to the Placement Agent, at the request of the Company, their written opinion, dated the Closing Date and addressed to
the Placement Agent, in form and substance reasonably satisfactory to Brean, to the effect set forth in Annex A hereto.

 

(h)         Opinion
of Counsel for the Placement Agent. The Placement Agent shall have received on and as of the Closing Date an opinion
of Greenberg Traurig, LLP, counsel for the Placement Agent, with respect to such matters as Brean may reasonably request, and such
counsel shall have received such documents and information as they may reasonably request to enable them to pass upon such matters.

 

(i)          No
Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have
been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing
Date, prevent the issuance or sale of the Units; and no injunction or order of any federal, state or foreign court shall have been
issued that would, as of the Closing Date, prevent the issuance or sale of the Units.

 

(j)          Good
Standing. The Placement Agent shall have received on and as of the Closing Date satisfactory evidence of the good standing
of the Company and its subsidiaries in their respective jurisdictions of organization and their good standing as foreign entities
in such other jurisdictions as Brean may reasonably request, in each case in writing or any standard form of telecommunication
from the appropriate governmental authorities of such jurisdictions.

 

(k)          Exchange
Listing. The Shares to be delivered on the Closing shall have been approved for listing on the OTC Bulletin Board,
subject to official notice of issuance.

 

    	 

    	 

    

 

(l)          Lock-up
Agreements. The “lock-up” agreements, each substantially in the form of Exhibit B hereto, between the
Placement Agent, the Company and certain shareholders, officers and directors of the Company relating to sales and certain other
dispositions of shares of the Company’s capital stock or certain other securities, delivered to the Placement Agent on or
before the date hereof, shall be full force and effect on the Closing Date.

 

(m)         Subscription
Agreements; Escrow Agreement. The Company shall have entered into (i) the Subscription Agreements with each of the Purchasers
and (ii) the Escrow Agreement with the Placement Agent and the Escrow Agent, and such agreements shall be in full force and effect.

 

(n)          FINRA
Matters. The Financial Industry Regulatory Authority (“FINRA”) shall have confirmed that it has not raised
any objection with respect to the fairness and reasonableness of the placement agency terms and arrangements.

 

(o)          Additional
Documents. On or prior to the Closing Date, the Company shall have furnished to Brean such further certificates
and documents as Brean may reasonably request.

 

All opinions, letters, certificates and evidence
mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are
in form and substance reasonably satisfactory to counsel for the Placement Agent.

 

8.        Indemnification
and Contribution.

 

(a)          Indemnification
of Placement Agent. The Company will indemnify and hold harmless each Placement Agent, its partners, members, directors,
officers, employees, agents, affiliates and each person, if any, who controls any Placement Agent within the meaning of Section
15 of the Act or Section 20 of the Exchange Act (each, an “Indemnified Party”), against any and all losses,
claims, damages or liabilities, joint or several, to which such Indemnified Party may become subject, under the Act, the Exchange
Act, other Federal or state statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in any part of the Registration Statement at any time, any Statutory Prospectus as of any time, the Final Prospectus
or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Indemnified Party for
any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending against
any such loss, claim, damage, liability, action, litigation, investigation or proceeding whatsoever (whether or not such Indemnified
Party is a party thereto), whether threatened or commenced, and in connection with the enforcement of this provision with respect
to any of the above as such expenses are incurred; provided, however, that the Company will not be liable in any such case
to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue
statement in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information
furnished to the Company by the Placement Agent specifically for use therein, it being understood and agreed that the only such
information furnished by the Placement Agent consists of the information described as such in subsection (b) below.

 

(b)          Indemnification
of Company. Each Placement Agent will, severally and not jointly, indemnify and hold harmless the Company, each of its
directors and each of its officers who signs the Registration Statement and each person, if any, who controls the Company within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, a “Placement Agent Indemnified Party”),
against any losses, claims, damages or liabilities to which such Placement Agent Indemnified Party may become subject, under the
Act, the Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in any part of the Registration Statement at any time, any Statutory Prospectus as of any time,
the Final Prospectus or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or the alleged omission
of a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the Company by such Placement Agent specifically for use
therein, and will reimburse any legal or other expenses reasonably incurred by such Placement Agent Indemnified Party in connection
with investigating or defending against any such loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such Placement Agent Indemnified Party is a party thereto), whether threatened or commenced, based upon
any such untrue statement or omission, or any such alleged untrue statement or omission as such expenses are incurred, it being
understood and agreed that the only information furnished by any Placement Agent is set forth in the second to last paragraph of
the prospectus supplement dated the date hereof under the caption “Plan of Distribution” concerning stabilization.

 

    	 

    	 

    

 

(c)          Actions
against Parties; Notification. Promptly after receipt by an indemnified party under this Section of notice of the commencement
of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under subsection
(a) or (b) above, notify the indemnifying party of the commencement thereof; but the failure to notify the indemnifying party shall
not relieve it from any liability that it may have under subsection (a) or (b) above except to the extent that it has been materially
prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to
notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under
subsection (a) or (b) above. In case any such action is brought against any indemnified party and it notifies the indemnifying
party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to
such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party),
and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party
will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will
be at the expense of such indemnified party unless (i) the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (ii) the indemnified party has concluded (based on advice of counsel) that there may be legal
defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying
party, (iii) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified
party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action
on behalf of the indemnified party), or (iv) the indemnifying party has not in fact employed counsel reasonably satisfactory to
the indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement
of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of
the indemnifying party or parties. No indemnifying party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional release
of such indemnified party from all liability on any claims that are the subject matter of such action and (ii) does not include
a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an indemnified party.

 

(d)          Contribution.
If the indemnification provided for in this Section is unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party
as a result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company on the one hand and the Placement Agent on the other from
the offering of the Shares or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
Company on the one hand and the Placement Agent on the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities as well as any other relevant equitable considerations. The relative benefits received by
the Company on the one hand and the Placement Agent on the other shall be deemed to be in the same proportion as the total net
proceeds from the offering (before deducting expenses) received by the Company bear to the total discounts and commissions received
by the Placement Agent. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied
by the Company or the Placement Agent and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission. The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any action or claim that is the subject
of this subsection (d). Notwithstanding the provisions of this subsection (d), the Placement Agent shall not be required to contribute
any amount in excess of the amount by which total compensation received by the Placement Agent in accordance with Section 2(e)
exceeds the amount of any damages which the Placement Agent have otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The
Company and the Placement Agent agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were
determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to in this Section 8(d).

 

    	 

    	 

    

 

(e)          Control
Persons. The obligations of the Company under this Section shall be in addition to any liability which the Company may
otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls any Placement Agent within
the meaning of the Act; and the obligations of the Placement Agent under this Section shall be in addition to any liability which
the Placement Agent may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to
each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within
the meaning of the Act.

 

9.          Survival
of Certain Representations and Obligations. The respective indemnities, agreements, representations, warranties and other
statements of the Company or its officers and of the Placement Agent set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation, or statement as to the results thereof, made by or on behalf of the
Placement Agent, the Company or any of their respective representatives, officers or directors or any controlling person, and will
survive delivery of and payment for the Units. In accordance with the Engagement Letter, if the sale and issuance of the Units
by the Company hereunder are not consummated for any reason, the Company will reimburse the Placement Agent for all out of pocket
expenses (including fees and disbursements of counsel) reasonably incurred in connection with the offering of the Units, and the
respective obligations of the Company and the Placement Agent pursuant to Section 8 hereof shall remain in effect. In addition,
if any Units have been purchased under this Agreement and the Subscription Agreements, the representations and warranties in Section
4 hereof and all obligations under Section 5 hereof shall also remain in effect.

 

10.         Notices.
All communications hereunder will be in writing and, if sent to the Placement Agent, will be mailed, delivered or telegraphed and
confirmed to Brean Capital LLC, 1345 Avenue of the Americas, New York, NY 10105; Attention: Jeffrey Sacher, Managing Director,
with a copy to Greenberg Traurig, LLP, One International Place, Boston, Massachusetts 02110, Attention: Robert E. Puopolo, Esq.,
or, if sent to the Company, will be mailed, delivered or telegraphed and confirmed to it at 7 Deer Park Drive, Suite K, Monmouth
Junction, New Jersey 08852; Attention: Chief Financial Officer, with a copy to Szaferman, Lakind, Blumstein & Blader, P.C.,
101 Grovers Mill Road, 2nd Floor, Lawrenceville, New Jersey 08648, Attention: Gregg E. Jaclin, Esq.

 

11.        Successors.
This Agreement will inure to the benefit of and be binding upon parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 8, and no other person will have any right or obligation hereunder.

 

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

 

13.       Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:

 

(a)          No
Other Relationship. The Placement Agent have been retained solely to act as Placement Agent in connection with the sale
of Units and that no fiduciary, advisory or agency relationship between the Company and the Placement Agent has been created in
respect of any of the transactions contemplated by this Agreement, any Subscription Agreement or the Final Prospectus, irrespective
of whether the Placement Agent have advised or is advising the Company on other matters;

 

    	 

    	 

    

 

(b)          Arm’s-Length
Negotiations. The price of the Units set forth in this Agreement was established by the Company following discussions and
arm’s-length negotiations with the Placement Agent and the Company is capable of evaluating and understanding and understands
and accepts the terms, risks and conditions of the transactions contemplated by this Agreement;

 

(c)          Absence
of Obligation to Disclose. The Company has been advised that the Placement Agent and their affiliates are engaged in a
broad range of transactions which may involve interests that differ from those of the Company and that the Placement Agent have
no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship;
and

 

(d)          Waiver.
The Company waives, to the fullest extent permitted by law, any claims it may have against the Placement Agent for breach of
fiduciary duty or alleged breach of fiduciary duty and agrees that the Placement Agent shall have no liability (whether direct
or indirect) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf
of or in right of the Company, including stockholders, employees or creditors of the Company.

 

14.        Amendment.
In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby. This Agreement, the Engagement Letter and the Subscription
Agreements constitute the entire agreements of the parties to this Agreement and supersede all prior and all contemporaneous agreements
(whether written or oral), understandings and negotiations with respect to the subject matter hereof. This Agreement may only be
amended or modified in writing, signed by all of the parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit.

 

15.        Applicable
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. The Company
hereby submits to the non-exclusive jurisdiction of any court of the State of New York or the United States District Court located
in the City of New York, New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated
thereby. The Company irrevocably and unconditionally waives any objection to the laying of venue of any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated thereby in any court of the State of New York or the United
States District Court located in the City of New York, New York and irrevocably and unconditionally waives and agrees not to plead
or claim in any such court that any such suit or proceeding in any such court has been brought in an inconvenient forum.

 

[The remainder of this page is intentionally
left blank]

 

    	 

    	 

    

 

If the foregoing is in accordance with the Placement Agent’
understanding of our agreement, kindly sign and return to the Company one of the counterparts hereof, whereupon it will become
a binding agreement between the Company and the Placement Agent in accordance with its terms.

 

	 	Very truly yours
	 	CYTOSORBENTS INCORPORATED
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Placement Agency Agreement

 

    	 

    	 

    

 

The foregoing Placement Agency Agreement is hereby confirmed
and accepted as of the date first above written.

 

	 	BREAN CAPITAL LLC
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Placement Agency Agreement

 

    	 

    	 

    

 

SCHEDULE A

 

	1.	 	Statutory Prospectus Included in the General Disclosure Package
	 	 	Base prospectus included in the Registration Statement declared effective on February 14, 2014
	2.	 	General Use Issuer Free Writing Prospectuses (included in the General Disclosure Package)
	 	 	“General Use Issuer Free Writing Prospectus” includes each of the following documents: None.
	3.	 	Other Information Included in the General Disclosure Package
	 	 	The following information is also included in the General Disclosure Package: None.
	4.	 	Permitted Free Writing Prospectus: None.THIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE HEREOF MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT OF ANY HEDGING, SHORT
SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF SUCH SECURITIES BY ANY PERSON
FOR A PERIOD OF ONE HUNDRED AND EIGHTY (180) DAYS IMMEDIATELY FOLLOWING THE DATE OF EFFECTIVENESS OF THE PUBLIC OFFERING OF THE
COMPANY’S SECURITIES PURSUANT TO REGISTRATION STATEMENT NO.: 333-193053 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(G)(2).

 

COMMON STOCK PURCHASE WARRANT

 

CYTOSORBENTS CORPORATION

 

	Warrant Shares: 1,224,000	Initial Exercise Date: February 14, 2014

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, Brean Capital, LLC or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after February 14, 1014, the effective date of Registration Statement No. 333-193053 (the “Initial Exercise Date”)
and on or prior to the close of business on the five (5) year anniversary of the Initial Exercise Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Cytosorbents Corporation., a Nevada corporation (the “Company”),
up to 1,224,000 shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase
price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.                      Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in that certain Placement Agency Agreement (the “Purchase
Agreement”), dated March 7, 2014, among the Company and Brean Capital, LLC.

 

Section 2.                      Exercise.

  

a) Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as
it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within three (3) Trading Days following the date
of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary, the Holder
shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company
for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises
of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant
Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and
the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day
of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that,
by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number
of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b) Exercise Price.  The
exercise price per share of the Common Stock under this Warrant shall be $0.30, which is 120% of the closing price of the
Units sold in the offering, subject to adjustment hereunder (the “Exercise Price”).

 

    	 

    	 

    

 

c) Cashless Exercise.
This Warrant may also be exercised, in whole or in part, at any time by means of a “cashless exercise” in which the
Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B)
(X)] by (A), where:

 

	 	
        (A) = the VWAP on the Trading Day immediately preceding the
        date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable
        Notice of Exercise;

         

	 	(B) = the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 
	 	(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

“VWAP” means, for any
date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted
on a 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)), (b)  if the OTC Bulletin Board is not a Trading Market,
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 Pink 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 Securities then outstanding and reasonably acceptable to the Company, the fees
and expenses of which shall be paid by the Company.

 

d) Mechanics
of Exercise.

 

i. Delivery of
Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent
to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit
or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A)
there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by
Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery to the address specified
by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the delivery to the
Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price
as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”).   The
Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed
to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment
to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if
any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company fails for any reason to
deliver to the Holder certificates evidencing the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares
subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading
Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading
Day after such Warrant Share Delivery Date until such certificates are delivered or Holder rescinds such exercise.

 

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

 

    	 

    	 

    

 

iii. Rescission
Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right
to rescind such exercise.

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

e) Holder’s
Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such
issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates,
and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own
in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned
by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other  Common Stock Equivalents) subject to a limitation
on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. 
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder
that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act
and the Holder is solely responsible for any schedules required to be filed in accordance therewith.   To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall
be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of
which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall
have no obligation to verify or confirm the accuracy of such determination.   In addition, a determination as to
any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder.  For purposes of this Section 2(e), in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the
Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in
writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares
of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this
Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The
“Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon
not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions
of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the
Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(e) shall continue to apply.  Any such increase or decrease will
not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

Section 3.                      Certain
Adjustments.

 

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

    	 

    	 

    

 

b) Pro Rata Distributions.  If
the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holder)
evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase
any security other than the Common Stock (which shall be subject to Section 3(b)), 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 the 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.

  

c) Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (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 or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant).  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If
holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.  Notwithstanding anything to the contrary, in the event of a Fundamental Transaction
that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act,
or (3) a Fundamental Transaction involving a person or entity not traded on a national securities exchange, including, but not
limited to, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the Company or any Successor
Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after,
the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental
Transaction.  “Black Scholes Value” means the value of this Warrant based on the Black and Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined
as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest
rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the
applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement
of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the
price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date.  The Company shall cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the
Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant
to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this
Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity)
equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations
on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price
hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to
such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise
price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been
named as the Company herein.

 

    	 

    	 

    

 

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

 

e) Notice to
Holder.

 

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

 

ii. Notice to
Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common
Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company
shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all
or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into
other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or
winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address
as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity
of the corporate action required to be specified in such notice.  To the extent that any notice provided hereunder constitutes,
or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K.  The Holder shall remain entitled to exercise
this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice
except as may otherwise be expressly set forth herein.

 

    	 

    	 

    

 

Section 4.                      Transfer
of Warrant.

 

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

 

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

 

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

 

Section 5.                      Miscellaneous.

 

a) Registration Rights.  In
the event that the Company files a registration statement with the Securities and Exchange Commission covering the sale of its
shares of Common Stock (other than a registration statement on Form S-4 or S-8, or on another form, or in another context, in which
such “piggyback” registration would be inappropriate), then the Holder shall have the right to require the Company
to register the resale of the Warrant Shares on such registration statement to the extent the Company does not maintain an effective
registration statement for the Warrant Shares. In the event that the Holder requests the registration of less than all of the Warrant
Shares represented hereby, prior to any such registration, the Holder shall request that the Company issue in exchange therefore
new warrants representing the Warrant Shares in such denominations as the Holder shall request; provided, however,
that no such certificate representing any Warrant Shares being registered shall also represent any Warrant Shares not being registered.
Notwithstanding the foregoing, the registration rights contained in this Section 5(a) shall expire on February 14, 2019.

 

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

 

    	 

    	 

    

 

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

 

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

 

e) Authorized
Shares.

 

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

 

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

  

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

 

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

  

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

 

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

  

CYTOSORBENTS CORPORATION

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

NOTICE OF EXERCISE

 

TO:           CYTOSORBENTS
CORPORATION

 

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

 

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

 

[  ] in lawful money of the United
States; or

 

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

 

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

 

	 	 

 

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

 

	 	 

 

	 	 

 

	 	 

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

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

  

_______________________________________________
whose address is

 

_______________________________________________________________.

  

_______________________________________________________________

 

Dated:  _____________________,
_______

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 

 

                       
_______________________________________

 

Signature Guaranteed:  ___________________________________________ 

 

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

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