Document:

Exhibit
10.40

 

EXCHANGE
AGREEMENT

 

EXCHANGE
AGREEMENT, dated as of October 12, 2021 (the “Agreement”), by and between BIORESTORATIVE THERAPIES, INC., a Delaware
corporation (the “Company”), and AUCTUS FUND, LLC, a Delaware limited liability company (the “Holder”).

 

WHEREAS,
the Holder is the holder of a Convertible Promissory Note, dated as of November 16, 2020, issued by the Company to the Holder in the
principal amount of $3,261,819.00 (the “Unsecured Note”).

 

WHEREAS,
the Holder is the holder of Secured Convertible Promissory Notes, dated as of November 16, 2020, issued by the Company to the Holder
in the respective principal amounts of $3,500,000.00, $1,226,901.24 and $122,690.12 (collectively, the “Initial Secured Notes”).

 

WHEREAS,
the Holder is the holder of Secured Convertible Promissory Notes, dated as of September 27, 2021, issued by the Company to the Holder
in the respective principal amounts of $166,402.70, $16,640.27 and $532,498.82 (together with the Unsecured Note and the Initial Secured
Notes, the “Notes”).

 

WHEREAS,
the aggregate outstanding principal amount of the Notes is $8,826,952.15 (the “Aggregate Principal Amount”).

 

WHEREAS,
the maturity date for the payment of the respective principal amounts of the Notes, together with accrued interest thereon, is November
16, 2023 (the “Maturity Date”).

 

WHEREAS,
the Holder is a party to a Security Agreement, dated as of November 16, 2020, by and among the Company, the Holder, and the Holder, as
agent, among others (the “Security Agreement”).

 

WHEREAS,
the Holder is the holder of Common Stock Purchase Warrants (Warrant A), dated as of November 16, 2020, issued by the Company to the Holder
for the purchase of 7,000,000,000 shares of Common Stock of the Company (“Common Stock”) and 2,453,802,480 shares of Common
Stock (collectively, the “Initial Warrants A”).

 

WHEREAS,
the Holder is the holder of Common Stock Purchase Warrants (Warrant B), dated as of November 16, 2020, issued by the Company to the Holder
for the purchase of 3,500,000,000 shares of Common Stock and 1,226,901,240 shares of Common Stock (collectively, the “Initial Warrants
B”).

 

WHEREAS,
the Holder is the holder of Common Stock Purchase Warrants (Warrant A), dated as of September 27, 2021, issued by the Company to the
Holder for the purchase of 332,805,400 shares of Common Stock (together with the Initial Warrants A, the “Warrants A”).

 

WHEREAS,
the Holder is the holder of Common Stock Purchase Warrants (Warrant B), dated as of September 27, 2021, issued by the Company to the
Holder for the purchase of 166,402,700 shares of Common Stock (together with the Initial Warrants B, the “Warrants B”).

 

    	1

    	 

    

 

WHEREAS,
the Warrants A and the Warrants B are referred to collectively as the “Warrants”.

 

WHEREAS,
the Company and the Holder are parties to a Registration Rights Agreement, dated as of November 16, 2020 (the “Registration Rights
Agreement”).

 

WHEREAS,
in connection with the issuance of the Notes and the Warrants, the Company executed and delivered to Transhare Corp., its transfer agent,
letters, dated November 16, 2020 and September 28, 2021, with regard to, among other things, the reservation of shares of Common Stock
issuable upon the conversion of the Notes and the exercise of the Warrants (the “TA Instruction Letters”).

 

WHEREAS,
the Holder has exercised Warrants B to the extent of an aggregate of 913,568,395 shares of Common Stock.

 

WHEREAS,
after giving effect to such exercise, the Warrants are exercisable for the purchase of an aggregate of 13,766,343,425 shares of Common
Stock.

 

WHEREAS,
the Company has filed with the Securities and Exchange Commission a registration statement on Form S-1 (the “Form S-1”) with
respect to an underwritten public offering by the Company of its shares of Common Stock (the “Exchange Common Stock”) and
warrants for the purchase of shares of Common Stock (the “Exchange Warrants”) and, in connection therewith, the Common Stock
and the Exchange Warrants are to be listed on the Nasdaq Capital Market (the “Public Offering”).

 

WHEREAS,
the Company has offered to issue to the Holder Exchange Common Stock and Exchange Warrants (for the avoidance of doubt, the Exchange
Warrants to be issued to the Holder shall be in the same form of, and have the same terms as, the Exchange Warrants in the Public Offering
(it being understood that the Exchange Warrant issued to the Holder shall be in certificated form and not registered in the name of Depository
Trust Company) in exchange for (a) the amounts payable pursuant to the Notes and (b) the Warrants, subject to the terms and conditions
hereof (the “Exchange Offer”) and the Holder desires to accept the Exchange Offer subject to the terms of this Agreement
(for the avoidance of doubt, the Exchange Common Stock and Exchange Warrants to be issued to Holder, pursuant to this Agreement, are
not being registered for resale in the Form S-1 for the Public Offering).

 

WHEREAS,
the above references to number of shares of Common Stock do not give effect to a reverse split of the Common Stock (the “Reverse
Split”) contemplated to be effected by the Company prior to or concurrently with the consummation of the Exchange Offer.

 

    	2

    	 

    

 

NOW,
THEREFORE, the parties agree as follows:

 

1. Exchange.

 

1.1 Subject
to the provisions of Section 1.7, in the event that, on or prior to the Outside Date (as defined below), the Company enters into an underwriting
agreement for the Public Offering, then, thereupon, such then outstanding Aggregate Principal Amount of the Notes, together with accrued
interest thereon, and the then outstanding Warrants (such then outstanding Aggregate Principal Amount of the Notes, together with accrued
interest thereon, and the Warrant Value (as defined below) of such then outstanding Warrants, collectively the “Exchange Balance”)
shall be automatically deemed to have been exchanged for the Exchange Common Stock and the Exchange Warrants at an exchange price equal
to the gross offering price per unit for the units of Exchange Common Stock and Exchange Warrants pursuant to the Public Offering (the
“Exchange Price”) (for the avoidance of doubt, if a unit includes more than one share of the Common Stock in the Public Offering,
the Exchange Price shall mean the gross offering price per unit for the units of Exchange Common Stock and Exchange Warrants pursuant
to the Public Offering divided by the number of shares of Common Stock contained in a unit), such that the Holder shall receive an equal
amount of both Exchange Common Stock and Exchange Warrants equal to the Exchange Balance divided by the Exchange Price; provided, however,
that in no event shall the Holder be issued Exchange Common Stock to the extent that such issuance would result in beneficial ownership
by the Holder of more than 4.99% of the outstanding Common Stock (the “Maximum Share Amount”). For purposes of the foregoing
proviso, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended,
and the regulations thereunder. For purposes of determining the number of shares of Exchange Common Stock and Exchange Warrants that
are to be issued in exchange for the Warrants, each then outstanding Warrant for the purchase of one (1) share of Common Stock (for the
avoidance of doubt, this is with respect to the Warrants) shall be deemed to have a value of $0.0005333592 (subject to adjustment for
any forward and reverse stock splits, including the Reverse Split, and the like following the date hereof and prior to the consummation
of the Exchange Offer) (the “Warrant Value”). Accordingly, based on there being outstanding, at the time of the consummation
of the Exchange Offer (the “Exchange”), Warrants for the purchase of an aggregate of 13,766,343,425 shares of Common Stock
(prior to giving effect to the Reverse Split), the aggregate Warrant Value will be $7,342,406. For purposes of this Agreement, the term
“Outside Date” shall mean January 31, 2022.

 

1.2 In
connection with the determination of the maximum number of shares of Exchange Common Stock that can be issued to the Holder by reason
of the Maximum Share Amount limitation, at the request of the Company, the Holder shall certify to the Company as to the number of shares
of Common Stock that it beneficially owns and shall update such certification, from time to time, until immediately prior to the issuance
of the Exchange Common Stock.

 

1.3 The
Exchange Common Stock shall be issued in book-entry form as provided in this Agreement. The Exchange Warrants and the Exchange Preferred
Stock (as defined in this Agreement) will be delivered by the Company to the Holder within five (5) days of the date of the consummation
of the Public Offering (the “Public Offering Consummation”).

 

    	3

    	 

    

 

1.4      (a)In the event that the issuance of the Exchange Common Stock would result in beneficial ownership by the Holder of Common
Stock in excess of the Maximum Share Amount, then, with respect to the calculation of the Exchange Common Stock component of the
Exchange only, the Notes and the Warrants (on a pro rata basis as to the then outstanding Exchange Balance) shall instead be
automatically deemed to have been exchanged for the Exchange Common Stock up to the Maximum Share Amount and, with respect to the
excess Exchange Balance thereof (the “Excess Exchange Balance”), the Notes and the Warrants shall be automatically
deemed to have been exchanged for an amount of shares of Series A Preferred Stock of the Company (the “Series A Preferred
Stock” or the “Exchange Preferred Stock” and together with the Exchange Common Stock and the Exchange Warrants,
the “Exchange Securities”) convertible into an amount of Common Stock equal to the Excess Exchange Balance divided by
the Exchange Price. The Series A Preferred Stock shall have such rights, preference and obligations as are set forth in the
Certificate of Designations of Preferred Stock with regard to the Series A Preferred Stock attached hereto as Exhibit A (the
“Certificate of Designations”). The Exchange Preferred Stock shall be issued in book-entry form. For the avoidance of
doubt, the Holder shall still receive the entire number of Exchange Warrants to which it is entitled pursuant to Section 1 of this
Agreement, regardless of whether the Holder is required to be issued Exchange Preferred Stock pursuant to this Section
1.4(a).

 

(b)As
an illustration of the foregoing, assuming that, as of the date of the Exchange, (i) the outstanding aggregate principal amount of the
Notes is $8,826,952, (ii) the aggregate accrued interest on the Notes is $550,000, (iii) the Warrant Value is $7,342,406, (iv) following
the Public Offering and the other exchanges contemplated by the Form S-1 and assuming that the Company effects a 1-for-2000 reverse split
of its Common Stock, there are 10,000,000 shares of Common Stock issued and outstanding prior to the Exchange, (v) the Public Offering
price is $4.00 per unit of Exchange Common Stock (consisting of one (1) share of Common Stock) and Exchange Warrant, and (vi) the Holder
beneficially owns no shares of Common Stock, the aggregate amount of $16,719,358 ($8,826,952 plus $550,000 plus $7,342,406) would be
exchanged for (x) 499,000 shares of Exchange Common Stock (4.99% of 10,000,000), (y) 4,179,839 Exchange Warrants ($16,719,358 divided
by 4) and (z) 3,680,839 shares of Series A Preferred Stock (4,179,839 – 499,000) which would be convertible into 3,680,839 shares
of Common Stock.

 

1.5 The
Holder agrees that, between the date hereof and the earlier of (i) Outside Date or (ii) the date of the Public Offering Consummation,
it shall not exercise or transfer any of the Warrants or sell or otherwise dispose of any Common Stock.

 

1.6 The
Holder agrees that, in connection with the Public Offering, it shall enter into a lock-up agreement with the managing underwriter of
the Public Offering, upon terms substantially identical to the terms of the lock-up agreements entered into by the Company’s officers
and directors in connection therewith, so long as the (i) lock-up agreement does not apply to 130,000,000 shares of Common Stock (prior
to the Reverse Split) that were issued to the Holder prior to the date of this Agreement and are currently held in Holder’s brokerage
account (for the avoidance of doubt, the reference to 130,000,000 in the immediately preceding clause shall be subject to adjustment
for any forward and reverse stock splits effectuated by the Company after the date of this Agreement) and (ii) the total period of such
lock-up as applicable to the Holder does not exceed four (4) calendar months after the date of the Public Offering Consummation. Notwithstanding
the foregoing, the lock-up agreement shall provide that, in the event, following the two (2) month anniversary of the date of the lock-up
agreement, the closing price of the Common Stock is at least 200% of the Exchange Price for at least five (5) consecutive trading days,
the lock-up agreement will terminate and the Holder will no longer be bound by the restrictions thereof.

 

    	4

    	 

    

 

1.7 Notwithstanding
anything in this Agreement to the contrary, in the event that the Public Offering Consummation does not occur on or before the Outside
Date, (i) this Agreement shall terminate and be of no further force or effect, (ii) the Exchange shall be deemed to have not occurred,
(iii) the Exchange Securities shall immediately be cancelled and retired to the Company’s treasury, (iv) the Holder shall retain
all of its rights under the Notes and the Warrants, and (v) neither party shall have any rights or obligations hereunder, except that
the foregoing shall not be deemed to release either party from liability for any breach by such party of any provision hereof.

 

1.8 Within
five (5) days following the Public Offering Consummation, the Company will deliver to its transfer agent a letter, substantially in the
form of the TA Instruction Letters, with regard to the reservation of the shares of Common Stock issuable upon exercise of the Exchange
Warrants and conversion of the Exchange Preferred Stock.

 

2. Representations,
Etc. by the Holder.

 

The
Holder understands and agrees that the Company is relying and may rely upon the following representations, warranties, acknowledgements,
consents, confirmations and covenants made by the Holder in entering into this Agreement:

  

2.1 The
Holder recognizes that the acquisition of the Exchange Securities and, in the event of (a) the exercise of the Exchange Warrants, the
shares of Common Stock issuable pursuant thereto (the “Exchange Warrant Stock”) and (b) the conversion of the Exchange Preferred
Stock, the Exchange Common Stock and Exchange Warrants issuable pursuant thereto (together with the Exchange Securities and the Exchange
Warrant Stock, the “Offered Securities”) involves a high degree of risk and is suitable only for persons of adequate financial
means who have no need for liquidity with respect to the Offered Securities in that (a) the Holder may not be able to liquidate the Offered
Securities in the event of emergency; (b) transferability is extremely limited; and (c) the Holder could sustain a complete loss of its
investment.

 

2.2 The
Holder represents and warrants that it (a) is competent to understand and does understand the nature of the Exchange Offer; and (b) is
able to bear the economic risk of an acquisition of the Offered Securities.

 

2.3 The
Holder represents and warrants that it is an “accredited investor,” as such term is defined in Rule 501 of Regulation D promulgated
under the Securities Act of 1933, as amended (the “Act”). The Holder meets the requirements of at least one of the suitability
standards for an “accredited investor” as set forth on the Accredited Investor Certification contained herein.

 

2.4 The
Holder represents and warrants that it has significant prior investment experience, including investment in restricted securities, and
that it has read this Agreement, the Notes, the Warrants and the Certificate of Designations in order to evaluate the merits and risks
of the Exchange Offer.

 

2.5 The
Holder represents and warrants that it has reviewed the Form S-1 and all other reports, statements and other documents filed by the Company
with the Securities and Exchange Commission (collectively, the “SEC Reports”), including, the risk factors set forth therein.
The Holder also represents and warrants that it has been furnished by the Company with all information regarding the Company which it
had requested or desired to know; that all documents which could be reasonably provided have been made available for its inspection and
review; that it has been afforded the opportunity to ask questions of and receive answers from duly authorized representatives of the
Company concerning the terms and conditions of the Exchange Offer, and any additional information which it had requested; and that it
has had the opportunity to consult with its own tax or financial advisor concerning an acquisition of the Offered Securities. The Holder
confirms that no oral representations have been made or oral information furnished to the Holder or its advisers in connection with the
Exchange Offer that are inconsistent in any respect with the SEC Reports, this Agreement, the Notes, the Warrant or the Certificate of
Designations.

 

    	5

    	 

    

 

2.6 The
Holder acknowledges that the Exchange Offer has not been reviewed by the Securities and Exchange Commission (the “SEC”) because
it is intended to be either (a) a non-public offering pursuant to Section 4(a)(2) of the Act and Rule 506 of Regulation D promulgated
thereunder or (b) exempt from the registration requirements of the Act pursuant to Section 3(a)(9) thereof. The Holder represents that
the Offered Securities will be acquired for its own account, for investment and not for distribution to others. The Holder agrees that
it will not sell, transfer or otherwise dispose of the Offered Securities, or any portion thereof, unless they are registered under the
Act or unless an exemption from such registration is available.

 

2.7 The
Holder consents that the Company may, if it desires, permit the transfer of the Offered Securities by the Holder out of its name only
when its request for transfer is accompanied by an opinion of counsel satisfactory to the Company that neither the sale nor the proposed
transfer results in a violation of the Act or any applicable state “blue sky” laws (collectively, “Securities Laws”).
The Holder agrees to be bound by any requirements of such Securities Laws.

 

2.8 The
Holder acknowledges and agrees that the Company is relying on the Holder’s representations and warranties contained in this Agreement
in determining whether to enter into this Agreement.

 

2.9 The
Holder consents to the placement of a legend on the Offered Securities stating that they have not been registered under the Act and setting
forth or referring to the restrictions on transferability and sale thereof. The Holder is aware that the Company will make a notation
in its appropriate records with respect to the restrictions on the transferability of the Offered Securities.

 

2.10 The
Holder represents and warrants that the address set forth on the signature page is the Holder’s true and correct address.

 

2.11 The
Holder represents and warrants that it is unaware of, is in no way relying on, and did not become aware of, the Exchange Offer through,
or as a result of, any form of general solicitation or advertising, including, without limitation, articles, notices, advertisements
or other communications published in any newspaper, magazine or other similar media or broadcast over television or radio or any seminar
or meeting where the attendees have been invited by any such means of general solicitation or advertising.

 

    	6

    	 

    

 

2.12 The
Holder represents and warrants as follows:

 

(i) if
a natural person, the Holder has reached the age of 21 and has full power and authority to execute and deliver this Agreement and all
other related agreements or certificates and to carry out the provisions hereof and thereof;

 

(ii) if
a corporation, partnership, limited liability company or partnership, association, joint stock company, trust, unincorporated organization
or other entity, the Holder was not formed for the specific purpose of acquiring the Exchange Securities, it is duly organized, validly
existing and in good standing under the laws of the state of its organization, it has full power and authority to execute and deliver
this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to acquire and
hold the Offered Securities, the execution and delivery of this Agreement has been duly authorized by all necessary action, this Agreement
has been duly executed and delivered on behalf of the Holder and this Agreement a legal, valid and binding obligation of the Holder;
and

 

(iii) if
executing this Agreement in a representative or fiduciary capacity, the Holder has full power and authority to execute and deliver this
Agreement in such capacity and on behalf of the individual, ward, partnership, trust, estate, corporation, limited liability company
or partnership, or other entity for whom the Holder is executing this Agreement, and such individual, ward, partnership, trust, estate,
corporation, limited liability company or partnership, or other entity has full right and power to perform pursuant to this Agreement
and acquire the Exchange Securities, and that this Agreement constitutes a legal, valid and binding obligation of such entity.

 

2.13 The
Holder represents and warrants that the execution, delivery and performance of this Agreement do not and will not, with the giving of
notice or passage of time or both, or otherwise, violate, constitute a default under, result in a breach of or be in conflict with its
charter or other organizational documents or any order, judgment, injunction, agreement or any other restriction to which the Holder
is a party or by which it is bound.

 

2.14 NONE
OF THE EXCHANGE SECURITIES OFFERED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE
EXCHANGE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. NONE OF THE EXCHANGE SECURITIES HAVE BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING
AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE SEC REPORTS. ANY REPRESENTATION TO
THE CONTRARY IS UNLAWFUL.

 

2.15 The
Holder represents and warrants that no commission or other remuneration has been or will be given, directly or indirectly, by the Holder
in connection with the Exchange Offer.

 

    	7

    	 

    

 

2.16 The
Holder represents and warrants that the officers, directors, trustees, managers and other controlling parties of the Holder, if any,
have not adopted any resolutions relative to the distribution of any of the Offered Securities to its shareholders, members or beneficiaries
and they have no present intention to do so.

 

2.17 The
Holder represents and warrants that any information which the Holder has heretofore furnished or furnishes herewith to the Company is
complete and accurate and may be relied upon by the Company.

 

2.18 If
the Public Offering Consummation occurs on or before the Outside Date, (a) the Notes, the Warrants, the Security Agreement and the Registration
Rights Agreement, and all rights and obligations of the parties thereunder, shall terminate and be of no further force or effect, (b)
the Company shall be authorized to make any filings necessary to terminate the security interests created by the Security Agreement and
(c) the Holder shall consent in writing to the termination of the TA Instruction Letters.

 

2.19 The
Holder acknowledges that, in connection with the Public Offering, the Company will need to effect a Reverse Split of its Common Stock
in order to satisfy the Nasdaq initial listing requirement as to the minimum bid price of the Common Stock. The Holder agrees that the
Company may effect such Reverse Split upon such terms as it determines are necessary to complete the Public Offering and waives any right
to prior notice with regard thereto.

 

3. Representations
by the Company.

 

The
Company represents and warrants to the Holder as follows:

 

3.1 The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware with full power
and authority to carry on its business as now conducted.

 

3.2 The
Company has the power and authority to execute and deliver this Agreement and to carry out its obligations hereunder. The execution,
delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of the Company and this Agreement constitutes the valid and legally binding obligation
of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by bankruptcy, insolvency,
reorganization or other laws affecting the enforcement of creditors’ rights generally now or hereafter in effect and subject to
the application of equitable principles and the availability of equitable remedies.

 

3.3 The
execution, delivery and performance of this Agreement do not and will not, with the giving of notice or the passage of time or both,
or otherwise, violate, constitute a default under, result in a breach of or be in conflict with the certificate of incorporation or by-laws
of the Company or any order, judgment, injunction, agreement or any other restriction to which the Company is a party or by which it
is bound.

 

    	8

    	 

    

 

4. Miscellaneous.

 

4.1 Any
notice or other communication given hereunder shall be deemed sufficient if in writing and hand delivered or sent by certified mail (return
receipt requested, postage prepaid), or overnight mail or courier, addressed as follows:

 

To
the Company:

 

40
Marcus Drive, Suite One

 Melville,
New York 11747

 Attn:
Chief Executive Officer

 

With
a copy to:

 

Certilman
Balin Adler & Hyman, LLP

 90
Merrick Avenue

 East
Meadow, New York 11554

 Attn:
Fred Skolnik, Esq.

 

To
the Holder: at its address indicated on the signature page of this Agreement

 

or
to such other address as to which either party shall notify the other in accordance with the provisions hereof. Notices shall be deemed
to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received.

 

4.2 This
Agreement sets forth the entire agreement and understanding between the parties as to the subject matter thereof and merges and supersedes
all prior discussions, agreements and understandings of any and every nature between them.

 

4.3 This
Agreement shall not be changed, modified or amended except by a writing signed by the party to be charged, and this Agreement may not
be discharged except by performance in accordance with its terms or by a writing signed by the party to be charged.

 

4.4 This
Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective successors, assigns and legal
representatives.

 

4.5 This
Agreement and its validity, construction and performance shall be governed in all respects by the laws of the State of Delaware, applicable
to agreements to be performed wholly within the State of Delaware. The Company and the Holder hereby irrevocably consent and submit to
the exclusive jurisdiction of any federal or state court located within the Commonwealth of Massachusetts over any dispute arising out
of or relating to this Agreement and each party hereby irrevocably agrees that all claims in respect of such dispute or any legal action
related thereto may be heard and determined in such courts. Each of the Company and the Holder hereby irrevocably waives, to the fullest
extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any such dispute brought
in such court or any defense of inconvenient forum for the maintenance of such dispute.

 

4.6 The
headings in this Agreement are inserted only as a matter of convenience, and in no way define, limit, extend or interpret the scope of
this Agreement or of any particular section.

 

    	9

    	 

    

 

4.7 All
references to the neuter gender herein shall likewise apply to the masculine or feminine gender as and where applicable, and vice-versa.

 

4.8 This
Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute
one instrument. Signatures transmitted herein via facsimile or other electronic image shall be deemed original signatures. Upon the execution
and delivery of this Agreement by the Holder, this Agreement shall become the binding obligation of the Holder with respect to the acquisition
of the Exchange Securities as herein provided.

 

4.9 Each
party agrees (a) to furnish upon request to the other party such further information, (b) to execute and deliver to the other party such
other documents and (c) to do such other acts and things, all as such other party may reasonably request for the purpose of carrying
out the intent of this Agreement.

 

4.10 The
Holder acknowledges that it has been represented by counsel, or afforded the opportunity to be represented by counsel, in connection
with this Agreement. Accordingly, any rule of law or any legal decision that would require the interpretation of any claimed ambiguities
in this Agreement against the party that drafted it has no application and is expressly waived by the Holder. The provisions of this
Agreement shall be interpreted in a reasonable manner to give effect to the intent of the parties hereto.

 

[Remainder
of page intentionally left blank. Signature page follows.]

 

    	10

    	 

    

 

BIORESTORATIVE
THERAPIES, INC.

 

EXCHANGE
AGREEMENT

 

Accredited
Investor Certification

(Initial
the appropriate box(es))

  

The
Holder represents and warrants that it, he or she is an “accredited investor” based upon the satisfaction of one or more
of the following criteria:

 

	_____	(1)
    he or she is a natural person who has a net worth or joint net worth with his or her spouse in excess of $1,000,000 at the date hereof1;
    or 
	 	 
	_____	(2)
    he or she is a natural person who had an individual income in excess of $200,000 in each of the two most recent years or a joint
    income with his or her spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same
    income level in the current year; or 
	 	 
	_____	(3)
    he or she is a director or executive officer of the Company; or 
	 	 
	_____	(4)
    it is either (a) a bank as defined in Section 3(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”),
    or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in
    its individual or fiduciary capacity, (b) a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of
    1934, (c) an insurance company as defined in Section 2(13) of the Securities Act, (d) an investment company registered under the
    Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of such act, (e) a small business
    investment company licensed by the United States Small Business Administration under Section 301(c) or (d) of the Small Business
    Investment Act of 1958, (f) a plan established and maintained by a state or its political subdivisions, or any agency or instrumentality
    of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000
    or (g) an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, if the determination
    to accept the Exchange Offer is made by a plan fiduciary, as defined in Section 3(21) of such act, which plan fiduciary is a bank,
    savings and loan association, an insurance company or a registered investment advisor, or if the employee benefit plan has total
    assets in excess of $5,000,000 or, if a self-directed plan, with the determination to accept the Exchange Offer made solely by persons
    who otherwise meet these suitability standards; or

 

 

1
For purposes of calculating
net worth: 

 

(i)
The Holder’s primary residence shall not be included as an asset;

 

(ii)
Indebtedness that is secured by the Holder’s primary residence, up to the estimated fair market value of the primary residence
at the date hereof, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the date hereof
exceeds the amount outstanding 60 days before the date hereof, other than as a result of the acquisition of the primary residence, the
amount of such excess shall be included as a liability); and

 

(iii)
Indebtedness that is secured by the Holder’s primary
residence in excess of the estimated fair market value of the primary residence at the date hereof shall be included as a liability.

 

    	 

    	 

    

 

	_____	(5)
    it is a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; or 
	 	 
	_____	(6)
    it is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, a corporation, a Massachusetts
    or similar business trust or a partnership not formed for the specific purpose of acquiring the Exchange Securities offered hereby,
    with total assets in excess of $5,000,000; or 
	 	 
	_____	(7)
    it is a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Exchange Securities,
    whose determination to accept the Exchange Offer is directed by a sophisticated person who has such knowledge and experience in financial
    and business matters that he or she is capable of evaluating the merits and risks of the acquisition of the Exchange Securities;
    or 
	 	 
	_____	(8)
    it is a corporation, partnership or other entity, and each and every equity owner of such entity initials a separate Accredited Investor
    Certification pursuant to which it, he or she certifies that it, he or she meets the qualifications set forth in either (1), (2),
    (3), (4), (5), (6) or (7) above.

 

	If
    the Holder is an INDIVIDUAL, or if the Exchange Securities are being acquired as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY
    PROPERTY:	 	If
    the Holder is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:
	 	 	 
	 	 	 
	Name(s)
    of Holder	 	Name
    of Holder
	 	 	 
	 	 	By:	 
	Signature
    of Holder	 	 	 Signature
    of Authorized Representative
	 	 	 
	 	 	 
	Signature,
    if jointly held	 	Name
    and Title of Authorized Representative
	 	 	 
	 	 	 
	Date
    	 	Date

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Exchange Agreement as of the day first above written.

 

	 	BIORESTORATIVE
    THERAPIES, INC.
	 	 	 
	 	By: 	                                 
	 	 	Lance
Alstodt
	 	 	President
and Chief Executive Officer

 

If
the Holder is an INDIVIDUAL, or if the Exchange Securities are being acquired as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY
PROPERTY:

 

	 	 	 
	Print
    Name(s)	 	Social
    Security Number
	 	 	 
	 	 	 
	Signature(s)	 	Address(es)
	 	 	 
	 	 	 
	 	 	Date

 

If
the Holder is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:

 

	 	 	 
	Name
    of Partnership, Corporation Limited Liability Company or Trust 	 	Type
    of Entity
	 	 	 	 
	By:	                           	 	Federal
    Taxpayer Identification Number
	Name: 	 	 	 
	Title:	 	 	 
	 	 	 	Address
	 	 	 	 
	 	 	 	 
	 	 	 	State
    of Organization
	 	 	 	 
	 	 	 	 
	 	 	 	Date

 

    	 

    	 

    

  

Exhibit
A

 

BIORESTORATIVE
THERAPIES, INC.

 

Certificate
of Designations of Preferred Stock Authorized by Resolution of the Board of Directors Providing for an Issue of ___________ Shares of
Preferred Stock Designated “Series A Preferred Stock.”

 

BioRestorative
Therapies, Inc. (the “Corporation”), a corporation organized and existing under the General Corporation Law of the State
of Delaware, in accordance with the provisions of Section 151 of Title 8 thereof and Article FOURTH of the Corporation’s Certificate
of Incorporation, DOES HEREBY CERTIFY THAT:

 

Pursuant
to authority conferred upon the Board of Directors by the Certificate of Incorporation of the Corporation, said Board of Directors, at
a meeting duly held, adopted a resolution providing for the issuance of ________________________ (_____) shares of the Corporation’s
Preferred Stock, par value $.01 per share, designated “Series A Preferred Stock,” which resolution is as follows:

 

RESOLVED,
that, pursuant to the authority vested in the Board of Directors of the Corporation by the Certificate of Incorporation, the Board of
Directors does hereby provide for and authorize the issuance of __________________________ (_____) shares of the Preferred Stock, par
value $.01 per share, of the Corporation, to be designated “Series A Preferred Stock” of the presently authorized but unissued
shares of Preferred Stock. The voting powers, designations, preferences, and relative, participating, optional or other special rights
of the Series A Preferred Stock authorized under this certificate of designations (the “Certificate of Designations”) and
the qualifications, limitations and restrictions of such preferences and rights are as follows:

 

(i)
Dividends. The holders of Series A Preferred Stock (each a “Series A Holder” and collectively the “Series
A Holders”) shall be entitled to receive, when and as declared by the Board of Directors, dividends on a pari passu basis
with the holders of the shares of Common Stock, par value $0.0001 per share, of the Corporation (“Common Stock”) based upon
the number of shares of Common Stock into which the Series A Preferred Stock is then convertible.

 

(ii)
Voting Rights.

 

(A)
The Series A Holders shall be entitled to vote on all matters presented to the stockholders of the Corporation for a vote at a meeting
of stockholders of the Corporation or a written consent in lieu of a meeting of stockholders of the Corporation, and shall be entitled
to such number of votes for each share of Series A Preferred Stock entitled to vote at such meetings or pursuant to such consent as is
set forth below, voting together with the holders of shares of Common Stock and other shares of Preferred Stock who are entitled to vote,
and not as a separate class, except as required by law. The number of votes to which the Series A Holders shall be entitled to vote for
each share of Series A Preferred Stock shall equal the number of shares of Common Stock into which such Series A Preferred Stock is then
convertible; provided, however, that in no event shall a Series A Holder be entitled to vote more than 4.99% of the then
outstanding shares of Common Stock.

 

    	A-1

    	 

    

 

(B)
The Corporation shall not, without the affirmative vote of the holders of at least 50.1% of all outstanding shares of the Series A Preferred
Stock, voting separately as a class, amend, alter or repeal any provision of this Certificate of Designations, PROVIDED, HOWEVER, that
the Corporation may, by any means authorized by law and without any vote of the holders of the shares of the Series A Preferred Stock,
make technical, corrective, administrative or similar changes in this Certificate of Designations, that do not, individually or in the
aggregate, adversely affect the rights or preferences of the Series A Holders.

 

(iii)
Conversion.

 

(A)
Optional Conversion; Automatic Conversion; Procedures.

 

(I)
Optional Conversion.

 

(a)
Conversion Right. Each share of Series A Preferred Stock shall be convertible, at any time and from time to time, at the option
of a Series A Holder (an “Optional Conversion”), into such number of shares of Common Stock as is determined by dividing
______ dollars ($___)1 by the Conversion Price (as hereinafter defined); provided, however, that in no event
shall a Series A Holder be entitled to convert any shares of Series A Preferred Stock to the extent that such conversion would result
in beneficial ownership by such Series A Holder of more than 4.99% of the outstanding shares of Common Stock (the “Maximum Share
Amount”). For purposes of the foregoing proviso, beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the regulations thereunder. For purposes hereof, the
term “Conversion Price” shall mean _____ dollars ($____)2, subject to adjustment as hereinafter set forth. The
Conversion Price gives effect to the 1-for-__3 reverse split of the Common Stock effected by the Corporation on __________,
2021.

 

(b)
Notice of Conversion. Before any Series A Holder shall be entitled to receive Common Stock upon conversion of the Series A Preferred
Stock, the Series A Holder shall send to the Corporation (by facsimile, e-mail or other reasonable means of communication) a notice of
conversion with respect thereto in the form attached hereto as Exhibit A (the “Notice of Conversion”).

 

 

1
Such dollar amount to be equal to the aggregate value of the Series A Preferred Stock (i.e., the value attributed to the convertible
notes and warrants to the extent not exchanged for Common Stock and warrants due to the 4.99% limitation) as provided in the Exchange
Agreement to which this Certificate of Designations is an exhibit (the “Exchange Agreement”), divided by the total number
of shares of Series A Preferred Stock being issued pursuant to the Exchange Agreement.

 

2
Such dollar amount to be equal to the conversion price as to which the convertible notes and warrants are exchanged for Common
Stock and warrants pursuant to the Exchange Agreement.

 

3
Such number to reflect the reverse split effected by the Corporation in connection with the Public Offering (as defined in the
Exchange Agreement).

 

    	A-2

    	 

    

 

(II)
Automatic Conversion. From time to time, in the event that an event occurs which has the effect of reducing a Series A
Holder beneficial ownership of shares of Common Stock (as determined in accordance with Section 13(d) of the Exchange Act and the regulations
thereunder) to less than 4.5% of the then publicly disclosed outstanding shares of Common Stock, then, within five (5) Business Days
(as defined below) thereafter, the Series A Holder shall provide notice to the Corporation (by facsimile, email or other reasonable means
of communication) to such effect (the “Reduced Share Notice”), which notice shall state the number of shares of Common Stock
beneficially owned by the Series A Holder and shall provide reasonable detail with regard thereto, including the number of derivative
securities compromising a portion of such beneficial share amount. A Reduced Share Notice shall have the effect of a Notice of Conversion
with respect to the conversion of such number of shares of Series A Preferred Stock as would increase the Series A Holder’s beneficial
ownership of Common Stock to the Maximum Share Amount. In the event that a Series A Holder shall fail to deliver to the Corporation a
timely Reduced Share Notice, then, at the option of the Corporation, a Reduced Share Notice shall be deemed to have been timely given
by the Series A Holder to the Corporation. For purposes hereof, the term “Business Day” shall mean any day excluding Saturday,
Sunday and any day that is a legal holiday under the laws of the state of New York or is a day on which banking institutions located
in such state are authorized or required by law to close.

 

(III)
Procedures.

 

(a)
Record of Preferred Stock Ownership. The Corporation shall maintain book-entry records showing the number of shares of Series
A Preferred Stock outstanding, the number of shares of Series A Preferred Stock converted, the dates of such conversions and the number
of shares of Series A Preferred Stock outstanding following such conversions. In the event of any dispute or discrepancy, such records
of the Corporation shall, prima facie, be controlling and determinative in the absence of manifest error.

 

(b)
Payment of Taxes. The Corporation shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of the Series A Preferred Stock in
a name other than that of the Series A Holder (or in street name).

 

(c)
Delivery of Common Stock Upon Conversion. Upon receipt by the Corporation from a Series A Holder of a Notice of Conversion, sent
in the manner provided for in paragraph (b) hereof and meeting the requirements for conversion as provided for hereinabove, the Series
A Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the number of shares of Series
A Preferred Stock held by the Series A Holder shall be reduced to reflect such conversion, and all rights with respect to the Series
A Preferred Stock being so converted shall forthwith terminate except the right to receive the Common Stock on such conversion, and the
Corporation shall issue and deliver or cause to be issued and delivered to or upon the order of the Series A Holder a certificate for
the Common Stock issuable upon such conversion within three (3) Business Days after receipt of the respective Notice of Conversion (the
“Share Delivery Deadline”). In addition to any other rights available to the Series A Holder, if the Corporation fails to
cause the Corporation’s transfer agent to transmit to the Series A Holder the Common Stock in accordance with the provisions of
this Certificate of Designations pursuant to a Notice of Conversion on or before the respective Share Delivery Deadline, and if after
such date the Series A Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Series A Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Series A Holder of the Common
Stock which the Series A Holder anticipated receiving upon such Notice of Conversion (a “Buy-In”), then the Corporation shall
(A) pay in cash to the Series A Holder, within ten (10) Business Days of Series A Holder’s request, the amount, if any, by which
(x) the Series A Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the product of (1) the number of Common Stock that the Corporation was required to deliver to the Series A Holder in connection
with the Notice of Conversion 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 Series A Holder, either reinstate the portion of the Series A Preferred Stock and equivalent number of Common
Stock for which such Notice of Conversion was not honored (in which case such Notice of Conversion shall be deemed rescinded) or deliver
to the Series A Holder within three (3) Business Days of Series A Holder’s request the number of shares of Common Stock that would
have been issued had the Corporation timely complied with its delivery obligations hereunder. For example, if the Series A Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion into 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
Corporation shall be required to pay the Series A Holder $1,000. The Series A Holder shall provide the Corporation written notice indicating
the amounts payable to the Series A Holder in respect of the Buy-In and, upon request of the Corporation, evidence of the amount of such
loss. Nothing herein shall limit a Series 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 Corporation’s
failure to timely deliver shares of Common Stock upon conversion of the Series A Preferred Stock as required pursuant to the terms hereof.

 

 

    	A-3

    	 

    

 

(d)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable
upon conversion, provided the Corporation is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (FAST) program, upon request of the Series A Holder and its compliance with the provisions contained in this Certificate of
Designations, and subject to the requirements of applicable law, the Corporation shall cause its transfer agent to electronically transmit
the Common Stock issuable upon conversion to the Series A Holder by crediting the account of the Series A Holder’s Prime Broker
with DTC through its Deposit Withdrawal At Custodian (DWAC) system on or before the Share Delivery Deadline.

 

(e)
Concerning the Common Stock. The shares of Common Stock issuable upon conversion of the Series A Preferred Stock may not be sold
or transferred unless (i) such Common Stock is sold pursuant to an effective registration statement under the Securities Act of 1933,
as amended (the “Securities Act”), or (ii) the Corporation or its transfer agent shall have been furnished with an opinion
of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the
effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii)
such Common Stock is sold or transferred pursuant to Rule 144 under the Securities Act (or a successor rule) (“Rule 144”)
or other applicable exemption or (iv) such Common Stock is transferred to an “affiliate” (as defined in Rule 144) of the
Corporation who agrees to sell or otherwise transfer the securities only in accordance with this paragraph (e) and who is an accredited
investor (as defined in the Securities Act). Until such time as the shares of Common Stock issuable upon conversion of the Series A Preferred
Stock have been registered under the Securities Act or otherwise may be sold pursuant to Rule 144 or other applicable exemption without
any restriction as to the number of shares of Common Stock as of a particular date that can then be immediately sold, each certificate
for shares of Common Stock issuable upon conversion of the Series A Preferred Stock shall bear a legend substantially in the following
form, as appropriate:

 

“THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF
(A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
(WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT OR OTHER APPLICABLE EXEMPTION. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	A-4

    	 

    

 

The
legend set forth above shall be removed and the Corporation shall issue to the holder a new certificate therefor free of any transfer
legend if (i) the Corporation or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such securities may be made without
registration under the Securities Act, which opinion shall be reasonably acceptable to the Corporation or (ii) such security is registered
for sale by the holder under an effective registration statement filed under the Securities Act or otherwise may be sold pursuant to
Rule 144 or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be
immediately sold.

 

(IV)
Effect of Certain Events.

 

(a)
Adjustment Due to Merger, Consolidation, Etc. If, at any time when any shares of Series A Preferred Stock are issued and outstanding,
there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event (other than as
described in paragraph (b) hereof), as a result of which shares of Common Stock shall be changed into the same or a different number
of shares of another class or classes of stock or securities of the Corporation or another entity, or in case of any sale or conveyance
of all or substantially all of the assets of the Corporation other than in connection with a plan of complete liquidation of the Corporation,
then a Series A Holder shall thereafter have the right to receive, upon conversion of the Series A Preferred Stock, upon the basis and
upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Series A Holder would have been entitled to receive in such transaction had the Series A Preferred
Stock been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein),
and in any such case appropriate provisions shall be made with respect to the rights and interests of the Series A Holder to the end
that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Series A Preferred Stock) shall thereafter be applicable, as nearly as may be practicable in relation
to any securities or assets thereafter deliverable upon the conversion hereof.

 

(b)
Subdivision or Combination of Common Stock. If the Corporation at any time when any shares of Series A Preferred Stock are issued
and outstanding subdivides (by stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common Stock into
a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If
the Corporation at any time when any shares of Series A Preferred Stock are issued and outstanding combines (by combination, reverse
stock split or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately
prior to such combination will be proportionately increased. Any adjustment under this paragraph (b) shall become effective at the close
of business on the date the subdivision or combination becomes effective. Each such adjustment of the Conversion Price shall be calculated
to the nearest one-thousandth of a cent. Such adjustment shall be made successively whenever any event covered by this paragraph (b)
shall occur.

 

    	A-5

    	 

    

 

(c)
Adjustment Due to Distribution. If the Corporation shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend
or distribution to the Corporation’s stockholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then each Series A Holder shall be entitled, upon any conversion of the Series A
Preferred Stock after the date of record for determining stockholders entitled to such Distribution, to receive the amount of such assets
which would have been payable to such Series A Holder with respect to the shares of Common Stock issuable upon such conversion had such
Series A Holder been the holder of such shares of Common Stock on the record date for the determination of stockholders entitled to such
Distribution.

 

(d)
Purchase Rights. If, at any time when any shares of Series A Preferred Stock are issued and outstanding, the Corporation issues
any convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro
rata to the record holders of any class of Common Stock, then each Series A Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which such Series A Holder could have acquired if such Series A Holder had held
the number of shares of Common Stock acquirable upon complete conversion of the Series A Preferred Stock (without regard to any limitations
on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase
Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue
or sale of such Purchase Rights.

 

(e)
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events
described in this Section (IV), the Corporation, at its expense, shall promptly compute such adjustment or readjustment and prepare and
furnish to each Series A Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based. The Corporation shall, upon the written request at any time of a Series A Holder, furnish to
such Series A Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect
and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received
upon conversion of the shares of Series A Preferred Stock.

 

(V)
Status on Conversion. Upon any conversion of shares of Series A Preferred Stock, the shares of Series A Preferred Stock
so converted shall be canceled.

 

(VI)
Reservation of Shares. The Company shall, at all times, reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of Common Stock upon the full conversion of the Series A Preferred Stock.

 

(VII)
Redemption. The Series A Preferred Stock is not subject to redemption by the Corporation or any Series A Holder.

 

(VIII)
Liquidation Preference. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation,
the Series A Holders will be entitled to receive, prior and in preference to any distribution of the assets or surplus funds of the Corporation
to the holders of any Common Stock and any other stock of the Corporation ranking in liquidation junior to the Series A Preferred Stock,
by reason of the ownership thereof, an amount (the “Series A Preferential Amount”) equal to the fixed sum of $0.001 per share
of Series A Preferred Stock. If, upon the occurrence of such an event, the assets and funds thus distributable among the holders of Series
A Preferred Stock shall be insufficient to permit the payment to such holders of the full Series A Preferential Amount, then the entire
assets and funds of the Corporation legally available for distribution to the holders of the Series A Preferred Stock shall be distributed
ratably among such holders in accordance with the respective amounts which would be payable on such shares if all amounts payable thereon
were paid in full. After the payment or setting apart of the full Series A Preferential Amount required to be paid to the Series A Holders,
the Series A Holders shall be entitled to receive on a pari passu basis with the holders of the shares of Common Stock and any
other stock of the Corporation ranking in liquidation junior to the Series A Preferred Stock, based upon the number of shares of Common
Stock into which the Series A Preferred Stock is convertible, all remaining assets or surplus funds of the Corporation. Neither the merger
or consolidation of the Corporation, nor the sale, lease or conveyance of all or part of its assets, shall be deemed to be a liquidation,
dissolution or winding up of the affairs of the Corporation, either voluntarily or involuntarily, within the meaning of this section.

 

{Remainder
of Page Intentionally Left Blank; Signature Page to Follow}

 

    	A-6

    	 

    

 

 

IN
WITNESS WHEREOF, BIORESTORATIVE THERAPIES, INC. has caused this Certificate to be executed by its ___________________ this
___ day of ___________, 2021.

 

	 	BIORESTORATIVE
    THERAPIES, INC.
	 	 	        
	 	By:	 

 

    	A-7

    	 

    

 

EXHIBIT
A

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert ____________ shares of Series A Preferred Stock of BioRestorative Therapies, Inc., a Delaware corporation
(the “Corporation”), into that number of shares of Common Stock to be issued pursuant to the conversion of the shares of
Series A Preferred Stock as set forth below, according to the terms and conditions of the Certificate of Designations of Preferred Stock
filed with the State of Delaware with respect to the Series A Preferred Stock on ______________, 2021, as of the date written below.
No fee will be charged to the holder for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ] 	The Corporation shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion (as set forth below) to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal At Custodian (DWAC) system.
	 	 	 
	 	 	Name of DTC Prime Broker: ________________________ 
	 	 	Account Number: ______________________ 
	 	 	 
	 	[  ]  	The undersigned hereby requests that the Corporation issue a certificate or certificates for the number of shares of Common Stock set forth below (which number is based on the holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

 

	 	Name: 	 	 
	 	Address:	 	 
	 	 	 	 

 

	 	Date
    of Conversion: 	 	 ___________________	 
	 	Applicable
    Conversion Price: 	$	 ___________________	 
	 	Number
    of Shares of Common Stock to be	 	 	 
	 	Issued
    Pursuant to Conversion of the	 	 	 
	 	Series
    A Preferred Stock: 	 	 ___________________	 
	 	Number
    of Shares of Series A Preferred Stock	 	 	 
	 	Remaining
    Outstanding after this Conversion:		 ___________________	 

 

	 	[HOLDER]	 
	 	 	 	 
	 	By:	               	 
	 	Name: 	 	 
	 	Title:	 	 
	 	Date:	 	 

 

    	A-8Exhibit
4.01

 

[FORM
OF]

 

THIS
12% UNSECURED PROMISSORY NOTE (THE “12% PROMISSORY NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(“ACT”), OR THE SECURITIES LAWS OF ANY STATE. THIS 12% PROMISSORY NOTE MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED
WITHOUT REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR DELIVERY TO RCI HOSPITALITY HOLDINGS, INC. OF AN OPINION
OF LEGAL COUNSEL SATISFACTORY TO RCI HOSPITALITY HOLDINGS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR ANY APPLICABLE
STATE SECURITIES LAWS.

 

	Original
    Issue Date: 	October
    _, 2021
	Original
    Principal Amount:	$____________

 

12%
UNSECURED PROMISSORY NOTE

 

FOR
VALUE RECEIVED, RCI HOSPITALITY HOLDINGS, INC., a Texas corporation, having its principal place of business at 10737 Cutten Road,
Houston, Texas 77066 (the “Company” or the “Maker”) promises to pay to the order of ________________________,
or its registered assigns (the “Holder”), upon presentation of this 12% Unsecured Promissory Note (the “12%
Promissory Note”) by the Holder hereof, the principal sum of $__________.00 (the “Original Principal Amount”)
on October 1, 2024 (the “Maturity Date”), or such earlier date as this 12% Promissory Note is required or permitted
to be repaid as provided hereunder, whether by acceleration or otherwise, and to pay interest (computed on the basis of a 360 day year)
on the unpaid principal balance of this 12% Promissory Note, from and after the date hereof until maturity, at the rate of twelve percent
(12%) per annum.

 

This
12% Promissory Note is an unsecured obligation of the Company and is subject to the following additional provisions:

 

 1. Terms of this 12% Promissory Note.

 

1.1 Principal
and Interest Payments. Interest shall be due and payable, in arrears, in thirty-five (35) equal monthly installments of $___________,
with the initial payment due November 1, 2021(subject to adjustment as to the Original Issue Date), and each successive payment due
thereafter on the like day of each month throughout the term of this 12% Promissory Note until September 1, 2024. The Original
Principal Amount of this 12% Promissory Note shall be payable in one lump sum payment, along with any accrued and unpaid interest
due thereon, on October 1, 2024, the Maturity Date.

 

1.2
Payments. Payment of any sums due to the Holder under the terms of this 12% Promissory Note shall be made in United States
Dollars by check or wire transfer at the option of the Company. Payment shall be made at the address last appearing on the records
of the Company as designated in writing by the Holder hereof from time to time. If any payment hereunder would otherwise become due
and payable on a day on which banks are closed or permitted to be closed in Houston, Texas, such payment shall become due and
payable on the next succeeding day on which banks are open and not permitted to be closed in Houston, Texas (“Business
Day”). The forwarding of such funds shall constitute a payment of outstanding principal and/or interest hereunder and
shall satisfy and discharge the liability for principal and/or interest on this 12% Promissory Note to the extent of the sum
represented by such payment.

 

1.3
Prepayment. This 12% Promissory Note may not be prepaid in whole or in part prior to October 1, 2022. Thereafter the 12%
Promissory Note may be prepaid by the Company, in whole or in part, without the prior consent of the Holder.

 

    	 	 

    	 

    

 

1.4
Waivers. Except as otherwise provided in this 12% Promissory Note, Maker waives presentment, demand, protest and notice of every
kind whatsoever. Any waiver or failure to insist upon strict compliance with any obligation, covenant, agreement or condition of
this 12% Promissory Note will not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. Any waiver
of any provision of this 12% Promissory Note shall be made pursuant to the provisions of Section 3.2.

 

1.5
Conformance with Laws. Notwithstanding any other term of this 12% Promissory Note to the contrary, it is the intention of the
Maker and the Holder to conform strictly to any applicable usury laws. Accordingly, if the Holder contracts for, charges or receives
any consideration that constitutes interest in excess of the maximum rate permitted by applicable law (the “Maximum
Rate”), then such excess will be canceled automatically and if previously paid will, at the Holder’s option, be
applied to the outstanding principal amount under this 12% Promissory Note or refunded to the Maker. In determining whether any
interest exceeds the Maximum Rate, such interest will, to the extent permitted by applicable law, be amortized, prorated, allocated
and spread in equal parts throughout the term of this 12% Promissory Note. All agreements made in this 12% Promissory Note are
expressly limited so that in no event whatsoever, whether by reason of advancement of the proceeds of this 12% Promissory Note,
acceleration of maturity of the unpaid balance of this 12% Promissory Note or otherwise, will the amount paid or agreed to be paid
to the Holder for the use of the money advanced or to be advanced under this 12% Promissory Note exceed an amount calculated at the
Maximum Rate. If any circumstances whatsoever, including the fulfillment of any provision of this 12% Promissory Note or any other
agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced by this 12%
Promissory Note, will involve the payment of interest in excess of an amount calculated at the Maximum Rate, then, ipso
facto, the obligation to pay interest under this 12% Promissory Note will be reduced to such amount. This Section 1.5 will
control every other provision in any and all other agreements and instruments existing or hereafter arising between the Maker and
the Holder with respect to the indebtedness evidenced by this 12% Promissory Note.

 

2.
Events of Default, Security and Remedies.

 

2.1
DEFAULT. Each of the following constitutes an event of default (“Event of Default”) under this 12% Promissory
Note:

 

		(a)	Maker
                                            fails to make any principal or interest payment when due under this 12% Promissory Note;

 

		(b)	Any
                                            representation or warranty made or deemed made by Maker in this 12% Promissory Note or in
                                            any certificate, report, notice, or statement furnished at any time in connection with this
                                            12% Promissory Note is false or misleading in any material respect on the date when made
                                            or deemed to have been made;

 

    	12% Unsecured Promissory Note – Page 2

    	 

    

 

		(c)	Maker
                                            shall fail to perform, observe, or comply with any covenant, agreement or term contained
                                            in this 12% Promissory Note and such failure continues, without cure, for twenty (20) business
                                            days after written notice to Maker;

 

		(d)	Maker
                                            shall commence a voluntary proceeding seeking liquidation, reorganization, dissolution or
                                            other relief with respect to itself or its debts under any bankruptcy, insolvency or other
                                            similar law now or hereafter in effect or seeking the appointment of a trustee, receiver,
                                            liquidator, custodian, or other similar official of it or a substantial part of its property
                                            or shall consent to any such relief or to the appointment of or taking possession by any
                                            such official in an involuntary case or other proceeding commenced against it or shall make
                                            a general assignment for the benefit of creditors or shall take any corporate action to authorize
                                            any of the foregoing;

 

		(e)	An
                                            involuntary proceeding shall be commenced against Maker seeking liquidation, reorganization,
                                            or other relief with respect to it or its debts under any bankruptcy, insolvency or other
                                            similar law now or hereafter in effect or seeking the appointment of a trustee, receiver,
                                            liquidator, custodian or other similar official of it or a substantial part of its property,
                                            and such involuntary proceeding shall remain undismissed and unstayed for a period of sixty
                                            (60) days after commencement; or

 

		(f)	The
                                            declaration of an event of default under any other note obligation of the Company in excess
                                            of $2,500,000, which default is not cured within any applicable grace period.

 

2.2
Cure Provisions.

 

		(a)	In
                                            the event of a default in payment as set forth in Section 2.1(a), such default may be cured
                                            if Maker cures the default within fourteen (14) days after the due date of any such payment.

 

		(b)	If
                                            any default, other than a default in payment is curable, it may be cured if Maker, after
                                            receiving written notice from Holder demanding cure of such default: (i) cures the default
                                            within twenty (20) business days; or (ii) if the cure requires more than twenty (20) business
                                            days, immediately initiates steps which Holder deems in Holder’s discretion to be sufficient
                                            to cure the default and thereafter continues and completes all reasonable and necessary steps
                                            sufficient to produce compliance as soon as reasonably practical.

 

2.3
Default Interest. Maker agrees that if Maker shall default in the payment of any payment required hereunder, whether payment of
principal or interest, the Maker promises to pay, on demand, interest on any such unpaid amounts, from the date the payment is due
to the date of actual payment, at the rate (the “Default Rate”) of the lesser of (i) 15% per annum; and (ii) the
maximum nonusurious rate permitted by applicable law.

 

2.4
Remedies. In case any one or more of the Events of Default specified in Section 2.1 has occurred, Holder will have the right to
accelerate payment of the entire principal of, and all interest accrued on, this 12% Promissory Note, and, upon such acceleration,
this 12% Promissory Note will thereupon become due and payable, without any presentment, demand, protest or other notice of any
kind, all of which are expressly waived, and the Maker will forthwith pay to the Holder the entire outstanding principal of, and
interest accrued on, this 12% Promissory Note. If an Event of Default specified in Section 2.1(d) above occurs with respect to the
Maker, all principal and accrued and unpaid interest thereon will be immediately due and payable on the 12% Promissory Note without
any declaration or other act on the part of the Holder. The Holder may rescind such acceleration if the existing Event of Default
has been cured or waived.

 

    	12% Unsecured Promissory Note – Page 3

    	 

    

 

2.5
Attorney’s Fees; Expenses. Holder may hire an attorney to help collect this 12% Promissory Note if Maker does not pay, and
Maker will pay all costs and expenses, including without limitation, reasonable attorney’s fees, which may be incurred by the
Holder in collecting any amount due under this 12% Promissory Note.

 

3.
Miscellaneous.

 

3.1
Governing Law; Consent to Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of
this 12% Promissory Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Texas,
without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the
interpretation, enforcement and defense of the 12% Promissory Note (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state or federal courts sitting in
Harris County, Texas (the “Harris County Courts”). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the Harris County Courts for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of such Harris County Courts, or that such Harris County
Courts are improper or inconvenient venue for such proceeding.

 

3.2
Amendment and Waiver. Any waiver or amendment to this 12% Promissory Note shall be in writing signed by the Holder and the
Maker. No failure on the part of the Holder to exercise, and no delay in exercising, any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by the Holder of any right hereunder preclude any other or further exercise
thereof or the exercise of any other rights. The remedies herein provided are cumulative and not exclusive of any other remedies
provided by law.

 

3.3
Notices. Any notice, consent, or other communication required or permitted to be given under this 12% Promissory Note to the
Maker or the Holder shall be in writing and shall be deemed to have been duly given if delivered personally or sent by registered or
certified mail, return receipt requested, postage prepaid, or nationally recognized overnight air courier guaranteeing next day
delivery as follows:

 

	 	(a)	if
    to Holder:	__________________
	 	 	 	__________________
	 	 	 	__________________
	 	 	 	 
	 	(b)	If
    to Maker:	RCI
    Hospitality Holdings, Inc.
	 	 	 	Attn:
    Eric Langan, President/CEO
	 	 	 	10737
    Cutten Road
	 	 	 	Houston,
    Texas 77066

 

    	12% Unsecured Promissory Note – Page 4

    	 

    

 

Any
such notice, consent, or other communication shall be deemed to have been duly given: at the time delivered by hand, if personally delivered;
three days after being deposited in the mail, postage prepaid, sent certified mail, return receipt requested, if mailed; and the next
day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. If a notice or communication
is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

 

3.4
Listing of Registered Holder of Note. This 12% Promissory Note will be registered as to the Original Principal Amount in the
Holder’s name on the books of the Company at its principal office in Houston, Texas (the “Note Register”),
after which no transfer hereof shall be valid unless made on the Company’s books at the office of the Company, by the Holder
hereof, in person, or by attorney duly authorized in writing, and similarly noted hereon.

 

3.5
Registered Holder Not Deemed a Stockholder.No Holder, as such, of this 12% Promissory Note shall be entitled to vote or
receive dividends or be deemed the holder of shares of the Company for any purpose, nor shall anything contained in this 12%
Promissory Note be construed to confer upon the Holder hereof, as such, any of the rights of a stockholder of the Company or any
right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of
stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or
otherwise.

 

3.6
Restrictions Against Transfer or Assignment. This 12% Promissory Note may not be sold, transferred, assigned, pledged,
hypothecated or otherwise disposed of by the registered Holder hereof, in whole or in part, unless and until either (i) the 12%
Promissory Note has been duly and effectively registered for resale under the Act and under any then applicable state securities
laws; or (ii) the registered Holder delivers to the Company a written opinion acceptable to its counsel that an exemption from such
registration requirements is then available with respect to any such proposed sale or disposition. The Company has the absolute
right, in its sole discretion, to approve or disapprove such transfer. Any transfer otherwise permissible hereunder shall be made
only at the principal office of the Company upon surrender of this 12% Promissory Note for cancellation and upon the payment of any
transfer tax or other government charge connected therewith, if any, and upon any such transfer a new 12% Promissory Note will be
issued to the transferee in exchange therefor. The transferee of this 12% Promissory Note shall be bound by the provisions hereof.
The register of the transfer of this 12% Promissory Note shall occur upon the delivery of this 12% Promissory Note, endorsed by the
registered Holder or his duly authorized attorney, signature guaranteed, to the Company or its transfer agent. Each 12% Promissory
Note instrument issued upon the transfer of this 12% Promissory Note shall have the restrictive legend contained herein
conspicuously imprinted on it.

 

3.7
Entire Agreement. This 12% Promissory Note constitutes the entire agreement of the Maker and the Holder with respect to the
subject matter contained in this 12% Promissory Note and supersedes all prior agreements and undertakings between the Maker and the
Holder with respect to the transactions contemplated hereby. There are no restrictions, promises, representations, warranties,
covenants or undertakings, other than those expressly provided for in this 12% Promissory Note.

 

3.8
Severability. If any term, provision, covenant, agreement or restriction of this 12% Promissory Note is held by a court of
competent jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants, agreements and
restrictions of this 12% Promissory Note will continue in full force and effect and will in no way be affected, impaired or
invalidated.

 

[SIGNATURE
ON FOLLOWING PAGE]

 

    	12% Unsecured Promissory Note – Page 5

    	 

    

 

IN
WITNESS WHEREOF, RCI Hospitality Holdings, Inc. has caused this 12% Promissory Note to be duly executed in its corporate name by
the manual signature of its President.

 

	 	MAKER:
	 	 
	 	RCI
    Hospitality Holdings, Inc.,
	 	a
    Texas Corporation
	 	 	 
	 	By:	 
	 	 	Eric
    Langan, President

 

    	12% Unsecured Promissory Note – Page 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}]]