Document:

Exhibit 10.01

 

Execution Version

 

Glu Mobile Inc.

 

Executive Chairman Agreement

 

This Executive Chairman Agreement (this “Agreement”) is entered into by and between Glu Mobile Inc. (“Company”) and Niccolo de Masi (“Executive”) and sets forth the terms of Executive’s continued service with the Company. This Agreement is effective as of November 2, 2016 (the “Effective Date”).

 

WHEREAS, Executive has been employed by the Company as its President and Chief Executive Officer pursuant to the Executive Employment Agreement by and between the Company and Executive dated January 4, 2010 (the “Employment Agreement”), in addition to serving as the Chairman of the Company’s Board of Directors since July 2014;

 

WHEREAS, Executive and the Company are parties to a Change of Control Severance Agreement by and between the Company and Executive dated January 4, 2010 (the “Severance Agreement”);

 

WHEREAS, Executive and the Company now wish for Executive to transition from Executive’s role as the Company’s President and Chief Executive Officer to become the Executive Chairman of the Company’s Board of Directors (the “Executive Chairman”) of the Company and, if requested by the Board of Directors (the “Board”), to serve as the Company’s “principal executive officer” as contemplated under applicable U.S. securities laws and regulations;

 

WHEREAS, Executive and the Company intend for this Agreement to govern the terms of Executive’s continued service with the Company as its Executive Chairman and, as applicable, its “principal executive officer” and, accordingly, to supersede and replace in their entirety the Employment Agreement, the Severance Agreement and any provision regarding Executive’s entitlement to vesting acceleration of the Company Options or Company RSUs (as such terms are defined in Section 5(b)(i) below) set forth in the written agreements governing such awards;

 

NOW THEREFORE, in consideration of the promises and the terms and conditions set forth in this Agreement, the parties agree as follows:

 

1.             Position and Duties. Beginning on the Effective Date, Executive will serve as the Company’s Executive Chairman. During the Service Period (as defined in Section 2 below), at the Board’s request, and subject to the next sentence, Executive may also serve as the Company’s “principal executive officer” in addition to his service as the Company’s Executive Chairman, or as a member of the Company’s Board but not Executive Chairman (but including non-executive “Chairman”). If requested by the Board, Executive agrees to serve in the additional capacity as the Company’s “principal executive officer” for up to six (6) months immediately following the Effective Date. During Executive’s service under this Agreement as Executive Chairman and/or the Company’s “principal executive officer”, Executive shall report to the Board and have duties appropriate and consistent with such position(s), as determined by the Board. Executive agrees, upon the request by a majority of the Board, to promptly resign as Executive Chairman and/or from the Board and any and all positions he may hold with respect to the Company or any subsidiary of the Company.

 

2.             Service Period. Subject to Sections 1 and 4, Executive will serve as the Company’s Executive Chairman, or otherwise as non-executive Chairman or simply as a member of the Board, and, as applicable, the Company’s “principal executive officer”, for the three (3) year period commencing on the Effective Date (such three (3) year period, the “Service Period”).

 

 

3.             Outside Activities. Executive’s service as the Company’s Executive Chairman will not be an exclusive, full-time role. Concurrently with his service under this Agreement, Executive may (a) serve as a member of the board of directors of one other company or entity and/or (b) accept a full-time executive position with another company or companies, provided, in any case Executive’s service in such Board of Director or executive position does not (i) materially interfere with Executive’s duties and obligations under this Agreement and (ii) does not result in a conflict of interest with his duties and obligations under this Agreement or would otherwise result in a violation or require a waiver under the Company’s Code of Business Conduct and Ethics.

 

4.             At-Will Employment. Executive and the Company understand and acknowledge that in his capacity as the Company’s Executive Chairman and, as applicable, the Company’s “principal executive officer”, Executive’s employment with the Company constitutes employment “at-will,” and the employment relationship between the Company and Executive may be terminated at any time, for any or no reason. The preceding sentence does not apply to Executive’s position in the capacity as a member of the Board, as that is not an employment relationship standing alone.

 

5.             Compensation and Benefits.

 

(a)           Remuneration. While providing services to the Company pursuant to this Agreement, the Company shall pay the Executive (i) based on an annual amount of $375,000, applicable to any such period Executive serves solely as the Company’s Executive Chairman or other member of the Company’s Board (the “Base Executive Chairman Remuneration”), except that (ii) to the extent that Executive also serves as the Company’s “principal executive officer,” Executive shall be paid additional salary based on an annual amount of $75,000 (in excess of the Base Executive Chairman Remuneration) for such portion(s) of the Service Period (the “Additional PEO Remuneration”, and collectively, as then applicable, the “Remuneration”), payable in accordance with the Company’s normal payroll practices.

 

(b)           Company Options and Company RSUs.

 

(i)          Options for shares of the Company’s common stock (“Company Options”) and restricted stock units for shares of the Company’s common stock (“Company RSUs”) held by Executive are governed by written award agreements that are substantially similar to the standard forms of such award agreements publicly filed by the Company with respect to the Company’s Amended and Restated 2007 Equity Incentive Plan (the “2007 Plan”). Exhibit A shows Executive’s awards that are outstanding as of the Effective Date and the respective applicable vesting schedule. Executive’s Company Options and Company RSUs will continue to vest in accordance with their applicable vesting schedule, subject to Executive’s continued service with the Company and the terms and conditions of the Company’s 2007 Plan and the applicable written award agreement governing the Company Options or Company RSUs (other than with respect to any provision thereof providing for acceleration of vesting), and may be subject to accelerated vesting under Section 5(b)(ii) and Section 6(b) of this Agreement. If Executive completes three consecutive years of service as Executive Chairman from the Effective Date, he shall vest in those Company RSUs that would otherwise have vested before November 16, 2019.

 

(ii)         In the event of a Corporate Transaction (as defined in the 2007 Plan) the vesting of all of Executive’s Company Options and Company RSUs shall fully accelerate, and such awards shall become exercisable (as applicable) and free of all restrictions (other than those set forth in the Company’s Insider Trading Policy, as then in effect, or imposed by applicable law, including federal securities laws and regulations) in full prior to the consummation of such Corporate Transaction.

 

 

(iii)        Additional Restriction on Sale or other Transfer of Options and Restricted Stock Units. Executive agrees that, in addition to any restriction on sale or transfer set forth under the 2007 Plan, the written award agreement governing the Company Options or Company RSUs or pursuant to Company policy (including the Company’s Insider Trading Policy) or applicable law, Executive shall not, during the effectiveness of this Agreement, offer, sell, transfer (other than for estate planning purposes, in which case Executive shall first notify the Company of such transfer and provide the Company the ability to place transfer restrictions similar to the Additional Restriction upon such transferred shares) contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any shares of Company stock, rights for or shares subject to rights to acquire Company stock, held by or otherwise beneficially owned by Executive on the Effective Date, including but not limited to shares held by Executive or in trust or subject to Company Options and Company RSUs (the “Shares”), except in payment of applicable taxes and withholdings due in connection with the vesting, exercise or settlement of a Company Option or Company RSUs (the foregoing restriction, the “Additional Restriction”). Unless otherwise set forth in Section 9, to the extent applicable, the Additional Restriction shall lapse with respect to (a) 10% of the Eligible Shares (as defined below) on the Effective Date, (b) an additional 10% of the Eligible Shares on each six (6) month anniversary of the Effective Date and (c) 100% of the Eligible Shares on the earlier to occur of Executive’s Cessation, consummation of a Corporate Transaction (as defined in the 2007 Plan) or the three (3) year anniversary of the Effective Date. For purposes hereof “Eligible Shares” shall mean the Shares that are owned outright or are vested under any Company Option or Company RSUs held by Executive of the Effective Date plus, as of the relevant measurement date, Shares that have become vested under any Company Option or Company RSUs held by Executive since the prior measurement date. Notwithstanding the foregoing and notwithstanding anything to the contrary in Section 9, Executive must comply with the Additional Restriction with respect to all Shares, including Shares with respect to which the Additional Restriction has lapsed pursuant to the immediately preceding sentence, during any period Executive serves as the Company’s “principal executive officer” under this Agreement (it being understood that following such service, Executive shall be credited with any lapse that shall have occurred prior to or during such service as the Company’s “principal executive officer”). Executive acknowledges that for so long as he serves as the Company’s “principal executive officer” Executive shall be deemed an “officer” of the Company within the meaning of Section 16 of, and Rule 16a-1(f) of the rules promulgated under, the Securities Exchange Act of 1934, as amended, and an “executive officer” of the Company within the meaning of Item 401(b) of Regulation S-K, Rule 3b-7 promulgated under the Exchange Act, and Rule 405 promulgated under the Securities Act of 1933, as amended.

 

(c)           Employee Benefits. During Executive’s employment as the Company’s “Executive Chairman” and/or “principal executive officer” with the Company and Executive is not otherwise employed by another company or entity, Executive will continue to be eligible to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other executive officers of the Company, pursuant to the eligibility requirements, terms and conditions of such plans, but in all cases on terms no less favorable than provided to any other officer of the Company. It is expected (but not required) that while Executive is employed, his duties will involve a minimum work schedule of 30 hours per week (whether or not in the Company’s offices), thereby (assuming the expectation holds true) making him eligible for health benefits under the Company’s health plan as in effect on the Effective Date. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. For the avoidance of doubt, Executive will no longer be eligible for any annual cash incentive bonus, nor shall Executive be eligible to receive future grants of Company equity awards or severance benefit, including under any plan or program generally available to the Company’s executive officers.

 

 

(d)           Voluntary Resignation as Executive Chairman. For the avoidance of doubt, in the event Executive voluntarily resigns his position as Executive Chairman (with such resignation not at the request of the Board) other than for Good Reason (as defined below), Executive shall, upon such resignation, not be entitled to any further payment of any Remuneration and vesting with respect to all outstanding Company Options and Company RSUs shall immediately cease and the unvested portion of the Company Options and Company RSUs shall be forfeited by Executive. In the event of such a voluntary resignation, Executive will be entitled to the compensation that is provided to members of the Board while Executive continues to serve on the Board.

 

6.             Payments and Benefits upon Cessation of Service as Board Member. In the event of Executive’s Cessation, other than as set forth in Section 9 or 5(d), and provided Executive delivers to the Company a signed agreement and general release of claims in favor of the Company in substantially the form attached hereto as Exhibit B (the “Release”) and satisfies all conditions to make the Release effective, then the Executive shall be entitled to the following payments and benefits (which shall be payable by the Company on the fifth (5th) day following the Cessation Date, and if such day follows on a holiday or weekend, the next business day):

 

(a)           Cash Payment. Any then-unearned portion of the Base Executive Chairman Remuneration, payable based on an annual amount of $375,000, with respect to the remaining balance of the Service Period had Executive continued to provide services to the Company through such date, payable in a lump sum.

 

(b)           Acceleration. In addition to the shares subject to Company Options and Company RSUs held by Executive that are vested and exercisable (as applicable) in accordance with their terms prior to Executive’s Cessation, each other unexpired award held by Executive shall become fully vested and exercisable through all vesting tranches that would otherwise occur prior to November 16, 2019.

 

(c)           COBRA Benefit. Subject to Executive’s eligibility for and timely and proper election of coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and any comparable state law providing for continuation of group health benefits, Executive’s then-effective group health benefits for Executive and Executive’s COBRA-eligible dependents shall be continued at the Company’s cost for all premiums under COBRA (the monthly cost of such premiums, the “COBRA Premium”) for the balance of the Service Period (the “Non-Cash COBRA”), provided that, if the Company determines that it cannot provide the Non-Cash COBRA without violating applicable law or incurring additional expense under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will provide Executive, in lieu thereof, a taxable lump sum payment for the balance of the Service Period (the “Cash COBRA”), which payment will equal 200% of the applicable COBRA premium for the Executive and any dependents. The number of months of Cash COBRA to be paid, in any case, shall be reduced by the number of months of Non-Cash COBRA previously paid by the Company.

 

7.             Expenses Relating to the Performance of Services. The Company will, in accordance with applicable Company policies and guidelines, reimburse Executive for all reasonable and necessary expenses incurred by Executive in connection with the performance of services as the Company’s Executive Chairman and/or “principal executive officer,” but in all cases on terms no less favorable than provided to any other officer or director of the Company.

 

8.             Employee Inventions and Confidentiality Agreement. Executive acknowledges and agrees that Executive continues to be bound by the Employee Invention Assignment and Confidentiality Agreement (the “Employee Inventions and Confidentiality Agreement”) previously entered into by and between Executive and the Company, and shall be bound thereby at any time that Executive is employed by the Company, including as Executive Chairman and or the Company’s “principal executive officer”. The foregoing obligations and restrictions shall be in addition to Executive’s obligation to fulfill his fiduciary duties as an officer or member of the Board.

 

 

9.             Termination of Services for Cause, Death, Disability or Voluntary Resignation. In the event of any termination of Executive’s services by the Company for Cause or in the event of the Executive’s death, disability (as such term is defined in Section 22(e)(3) of the Code, as defined in Section 10 below) or voluntary resignation from service at any time and for any reason, the Executive will be paid only (i) any earned but unpaid Remuneration, payable based on the annual amount then in effect, (ii) other unpaid vested amounts or benefits under the compensation, incentive and benefit plans of the Company in which Executive participates, and (iii) reimbursement for all reasonable and necessary expenses incurred by Executive in connection with his performance of services on behalf of the Company in accordance with applicable Company policies and guidelines for senior officers and members of the Board, in each case as of the effective date of such termination of employment. Executive will be allowed to exercise his vested Company Options, if any, during the time period set forth in, and in accordance with, the 2007 Plan and the governing stock option agreement(s). It is understood and acknowledged that, in the event of a termination of Executive’s services that is not a Cessation, the Additional Restriction shall continue to apply, but (i) if the Executive voluntarily resigns from his service as Executive Chairman without Good Reason, dies, or becomes disabled, the Additional Restriction shall not apply, but Executive shall instead be subject to a lock-up as to his equity holdings for a period thereafter of six months, during which Executive agrees to sell no more than one-half of the shares (or shares subject to derivative equity securities) held by him as of such resignation during any three month period, (ii) if Executive experiences a Cessation or voluntarily resigns from his service as Executive Chairman with Good Reason, the Additional Restriction shall not apply.

 

10.          Definitions.

 

(a)           “Cause” means (i) Executive’s committing of an act of gross negligence, including misappropriation, embezzlement or fraud, that materially adversely affects the Company or any of the Company’s customers, suppliers or partners, (ii) his willful misconduct in the performance of services for the Company or breach of fiduciary duty involving personal profit (other than unintentional, immaterial breaches that are promptly cured after written notice to Executive), (iii) his being convicted of, or pleading no contest to, any felony , (iv) any material breach of any agreement with the Company by him that remains uncured for thirty (30) days after written notice by the Company to him, unless that breach is incapable of cure, in which case no cure period shall be permitted, or any other material unauthorized use or disclosure of the Company’s confidential information or trade secrets involving personal benefit, or (v) his failure to follow the lawful and reasonable directions of the Board; provided that, at any point when Executive no longer serves as Executive Chairman, “principal executive officer,” or otherwise as an employee of the Company, and serves only as a member of the Board, “Cause” shall instead mean a breach of fiduciary duties as a director such that he would not be entitled to indemnification under applicable law.

 

(b)           “Cessation” means (a) Executive ceases to serve as a member of the Board at any time prior to the three (3) year anniversary of the Effective Date (the effective date of such cessation, the “Cessation Date”), provided that such cessation is (I) at the written request of the majority of the members of the Board (or made by a majority of the Board at a properly called meeting thereof), (II) due to Executive not being recommended by the Company or the Board for reelection or not being reelected to the Board by the Company’s stockholders, (III) following a material breach of this Agreement by the Company of which Executive has notified the Company within 90 days after such breach in writing that it has materially breached this Agreement (specifying the provision(s) breached and the circumstances constituting such breach), the Company has failed to cure such breach within 30 days following such notice, and the Executive has resigned and ceased service within fifteen (15) days of such failure to cure,

 

 

or (IV) following a material diminution in Executive’s assigned duties as Executive Chairman, provided that Executive first notifies the Company within 30 days after such material diminution in writing that such event has occurred and the Company has failed to cure such diminution within 30 days following such notice, and Executive has resigned and ceased service within fifteen (15) days of such failure to cure (a resignation fulfilling all of the requirements of clause (a) (III) or (a)(IV) shall be deemed for “Good Reason”), or (b) Executive ceases to serve as Executive Chairman at the written request of the majority of the members of the Board (or made by a majority of the Board at a properly called meeting thereof). For the avoidance of doubt, (i) except as provided above in this Section 10(b), any voluntary termination of Executive’s service or termination of Executive’s service for Executive’s death or disability or (ii) termination of Executive’s status as a “principal executive officer” while still serving as Executive Chairman or as a member of the Board shall, in each case, not constitute a Cessation under this Agreement.

 

(c)           “Code” means the United States Internal Revenue Code of 1986, as amended.

 

11.          Miscellaneous.

 

(a)           Arbitration and Class Action Waiver. Executive and the Company agree to submit to mandatory binding arbitration any and all claims arising out of or related to Executive’s employment or service with the Company and the termination thereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or Company options, Company RSUs or other ownership interest in the Company, and/or discrimination (including harassment) based upon any federal, state or local ordinance, statute, regulation or constitutional provision, except that each party may, at its, his or her option, seek injunctive relief in court related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secret information (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, Executive and the Company agree that no class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must be brought solely in Executive’s or the Company’s individual capacity, and not as a plaintiff or class member in any purported class or collective proceeding. Nothing in this Arbitration and Class Action Waiver section, however, restricts your right, if any, to file in court a representative action under California Labor Code Sections 2698, et seq.

 

SUBJECT TO THE ABOVE PROVISO, THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLE CLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS OR COLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN EXECUTIVE AND THE COMPANY.

 

This Agreement does not restrict Executive’s right to file administrative claims Executive may bring before any government agency where, as a matter of law, the parties may not restrict Executive’s ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the parties agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims. The arbitration shall be conducted in Santa Clara County, California through JAMS before a single neutral arbitrator, in accordance with the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed at http://www.jamsadr.com/rules-employment-arbitration. If Executive is unable to access these rules, Executive should please let the Company know and the Company will provide Executive with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based. In the event of arbitration relating to this Agreement or Executive’s service with the Company, each of Executive and the Company will bear its own costs, including, without limitation, attorneys’ fees.

 

 

(b)           Indemnification. Subject to applicable law, the Company will provide Executive indemnification to the maximum extent permitted by the Company’s Certificate of Incorporation and Bylaws, in addition to coverage under any directors and officers insurance policies maintained by the Company, with such indemnification to be on terms determined by the Board or any of its committees, but in no case less favorable than those provided to any other executive officer or director of the Company. Executive will continue to be covered by any indemnification by and between Executive and the Company, which, if applicable, continues in full force and effect.

 

(c)           Section 409A. To the extent (a) any payments to which Executive becomes entitled under this Agreement, or any agreement or plan referenced herein, in connection with Executive’s termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (b) Executive is deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments will not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s termination and (ii) the date of Executive’s death following such termination; provided, however, that such deferral will be effected only to the extent required to avoid adverse tax treatment to Executive, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph will be paid to Executive or Executive’s beneficiary in one lump sum (without interest).

 

To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment will be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.

 

Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A.

 

Notwithstanding the foregoing, in the event the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company will work in good faith with Executive to adopt such amendments to this Agreement, or to adopt such policies and procedures or take such other actions that the Company determines are necessary or appropriate, to avoid the imposition of taxes under Section 409A.

 

(d)           Limitation on Payments Under Code Section 280G. In the event that the payments and other benefits provided for in this Agreement or otherwise payable to the Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then Executive’s benefits under this Agreement shall be either:

 

(i)          delivered in full; or

 

(ii)         delivered as to such lesser extent that would result in no portion of such benefits being subject to the Excise Tax, by reducing payments in the following order: first a pro rata reduction of (i) cash payments subject to Section 409A of the Code as deferred compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity award compensation subject to Section 409A of the Code as deferred compensation and (ii) equity award compensation not subject to Section 409A of the Code. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant;

 

 

whichever of the foregoing amounts in (i) or (ii) above, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.

 

Unless the Company and the Executive otherwise agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.

 

(e)           Severability. If any provision of this Agreement shall be found by any arbitrator or court of competent jurisdiction to be invalid or unenforceable, then the parties hereby waive such provision to the extent of its invalidity or unenforceability, and agree that all other provisions in this Agreement shall continue in full force and effect.

 

(f)            No Waiver. The failure by either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way affect the right to require such performance or compliance at any time thereafter. The waiver by either party of a breach of any provision hereof shall not be taken or held to be a waiver of any preceding or succeeding breach of such provision or as a waiver of the provision itself. No waiver of any kind shall be effective or binding, unless it is in writing and is signed by the party against whom such waiver is sought to be enforced.

 

(g)           Assignment. This Agreement and all rights hereunder are personal to Executive and may not be transferred or assigned by Executive at any time. The Company may assign its rights, together with its obligations hereunder, to any parent, subsidiary, affiliate or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets, provided, however, that any such assignee assumes the Company’s obligations hereunder.

 

(h)           Withholding. All sums payable to Executive hereunder shall be in United States Dollars and shall be reduced by applicable federal, state, local and other withholding and similar taxes and payments required by applicable law.

 

(i)            Agreements Superseded. This Agreement supersedes and replaces in their entirety the Employment Agreement, the Severance Agreement and any provision regarding Executive’s entitlement to vesting acceleration of the Company Options or Company RSUs set forth in the written agreements governing such awards, which agreements and provisions, respectively, shall be of no further force or effect.

 

 

(j)            Amendment. This Agreement may only be amended, modified or waived, in whole or in part, in a writing executed by both Executive and the Company (as authorized by the Board).

 

(k)           Binding Nature. This Agreement shall be binding upon, and inure to the benefit of, the successors and personal representatives of the respective parties hereto. Executive acknowledges that Executive has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

 

(l)            Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement.

 

(m)          Indemnification Agreement. This Agreement shall not be deemed in any way to limit or supersede the Indemnity Agreement entered into between the Company and Executive on October 24, 2013, and the Company agrees that any amendment or replacement to the form of Indemnity Agreement generally applicable to the members of the Board shall be made available to Executive (such Indemnity Agreement as it may be amended or replaced, the “Indemnity Agreement”).

 

(n)           Governing Law. This Agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the State of California, without giving effect to the principles of conflict of laws.

 

[SIGNATURE PAGE TO EXECUTIVE CHAIRMAN AGREEMENT FOLLOWS]

 

 

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the date indicated below.

 

	
GLU   MOBILE INC.
    	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
/s/ Benjamin T.   Smith, IV
    	
 
    	
/s/ Niccolo de   Masi
    
	
 
    	
 
    	
 
    
	
Name:   Benjamin T. Smith, IV
    	
 
    	
Niccolo de Masi
    
	
 
    	
 
    	
 
    
	
Title:   Compensation Committee, Chair
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
November 2, 2016
    	
 
    	
Date
    	
November 2, 2016
    
					

 

[SIGNATURE PAGE TO EXECUTIVE CHAIRMAN AGREEMENT]

 

 

Exhibit A

 

EXECUTIVE’S COMPANY OPTIONS AND COMPANY RSUS

AS OF THE EFFECTIVE DATE

 

 

Exhibit B

 

GENERAL RELEASE OF CLAIMS

 

 

General Release Of Claims

 

This General Release of Claims (this “Agreement”) is entered into as of [                  ], by and between Niccolo de Masi (“you”) and Glu Mobile Inc. (the “Company”), collectively referred to herein as the “Parties”. Capitalized terms used herein, but not defined herein, shall have the meanings ascribed to them in the Executive Chairman Agreement by and between you and the Company dated November 2, 2016 (the “Employment Agreement”).

 

Recitals

 

WHEREAS, you have been providing services to the Company as its Executive Chairman [and “principal executive officer”] pursuant to the Employment Agreement, and you and the Company now wish to effect a Cessation of your services as Executive Chairman [and “principal executive officer;”]

 

WHEREAS, pursuant to the Employment Agreement, you and the Company agreed that upon your Cessation, you would be entitled to certain payments and benefits thereunder;

 

WHEREAS, you and the Company wish to set forth in writing the terms of your Cessation, and the Company wishes to receive from you a general release of all claims against the Company;

 

WHEREAS, the Parties, and each of them, wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions and demands that you may have against the Company as defined herein, including, but not limited to, any and all claims arising or in any way related to your employment or service with, or separation from, as applicable, the Company, and you and the Company desire to embody in this Agreement the terms, conditions and benefits to be provided in connection with your termination of employment or service with the Company;

 

NOW THEREFORE, in consideration of the promises made herein, the Parties hereby agree as follows:

 

Agreement

 

A.            Cessation

 

1.             Cessation Date. Your Cessation is effective as of the close of business on [                 ] (your “Cessation Date”). The Company shall pay to you all amounts and benefits that have accrued or were earned but remain unpaid through your Cessation Date in respect of Remuneration, payable based on the annual amount then in effect, and unreimbursed expenses, including accrued and unused vacation, on the Cessation Date, regardless of whether you sign this Agreement.

 

2.             Consideration for Release. Subject to your compliance with the terms and conditions of this Agreement, and provided you deliver to the Company this signed Agreement and satisfy all conditions to make the Release effective, the Company shall provide you with the payments and acceleration set forth under Section 6 of the Employment Agreement as compensation for the Release set forth herein.

 

3.             Employee Inventions and Confidentiality Agreement. You acknowledge and agree that you continue to be bound by the Employee Invention Assignment and Confidentiality Agreement previously entered into by and between you and the Company.

 

1

 

B.            Release

 

In consideration of the payments and benefits provided and to be provided to you by the Company under this Agreement, and in connection with your Cessation, by your signature below you agree to the following general release (the “Release”).

 

1.             On behalf of yourself, your heirs, executors, administrators, successors, and assigns, you hereby fully and forever generally release and discharge the Company, its current, former and future parents, subsidiaries, affiliated companies, related entities, employee benefit plans, and their fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and assigns (collectively, for purposes of this Section B, the “Company”) from any and all claims, causes of action, and liabilities up through the date of your execution of this Release. The claims subject to this Release include, but are not limited to, those relating to your employment or service with the Company and/or any predecessor to the Company and the termination, as applicable, of such employment or service. All such claims (including related attorneys’ fees and costs) are barred without regard to whether those claims are based on any alleged breach of a duty arising in statute, contract, or tort. This expressly includes waiver and release of any rights and claims arising under any and all laws, rules, regulations, and ordinances, including, but not limited to: Title VII of the Civil Rights Act of 1964; the Americans With Disabilities Act; the Age Discrimination in Employment Act; the Fair Labor Standards Act; the National Labor Relations Act; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the Workers Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act (if applicable); the provisions of the California Labor Code (if applicable); the Equal Pay Act of 1963; and any similar law of any other state or governmental entity. You further waive any rights under Section 1542 of the Civil Code of the State of California or any similar state statute. Section 1542 states: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which, if known to him or her, must have materially affected his or her settlement with the debtor.” This Release does not extend to, and has no effect upon, any benefits that have accrued, and to which you have become vested or otherwise entitled to, under any employee benefit plan, program or policy sponsored or maintained by the Company, or to your right to indemnification by the Company, and continued coverage by the Company’s director’s and officer’s liability insurance policy, to any claim that arises after the date of this Agreement.

 

2.             In understanding the terms of the Release and your rights, you have been advised to consult with an attorney of your choice prior to executing the Release. You understand that nothing in the Release shall prohibit you from exercising legal rights that are, as a matter of law, not subject to waiver such as: (a) your rights under applicable workers’ compensation laws; (b) your right, if any, to seek unemployment benefits; (c) your right to indemnity under the Indemnity Agreement, the Company’s certificate of incorporation or bylaws, California Labor Code section 2802 or other applicable state-law right to indemnity; and (d) your right to file a charge or complaint with a government agency such as but not limited to the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department of Labor, the California Department of Fair Employment and Housing, or other applicable state agency. Moreover, you will continue to be indemnified for your actions taken while employed by, or providing services to, the Company to the same extent as other then-current or former directors and officers of the Company under the Company’s Certificate of Incorporation and Bylaws and any director or officer indemnification agreement between you and the Company, if any, and you will continue to be covered by the Company’s director’s and officer’s liability insurance policy as in effect from time to time to the same extent as other then-current or former directors and officers of the Company, each subject to the requirements of the laws of the State of California.

 

2

 

3.             You understand and agree that the Company will not provide you with the payments and benefits under this Agreement (including as referenced herein and made under the Employment Agreement) unless you execute the Release. You also understand that you have received or will receive, regardless of the execution of the Release, all wages owed to you together with any accrued but unused vacation pay, less applicable withholdings and deductions, earned through your termination date.

 

4.             As part of your existing and continuing obligations to the Company, you have returned to the Company all Company documents (and all copies thereof) and other Company property that you have had in your possession at any time, including but not limited to the Company’s files, notes, drawings, records, business plans and forecasts, financial information, specification, computer-recorded information, tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). You understand that, even if you did not sign the Release, you are still bound by any and all confidential/proprietary/trade secret information, non-disclosure and inventions assignment agreement(s) signed by you in connection with your employment or service with the Company, or with a predecessor or successor of the Company pursuant to the terms of such agreement(s). Notwithstanding the preceding, if you desire, for the three years from the Effective Date, you may retain any Company-issued mobile device or computer (subject to your obligations under Section 3 above), it being understood that the device remains property of the Company and must be made available to the Company upon request consistent with other property owned by the Company and used by its service providers.

 

5.             You represent and warrant that you are the sole owner of all claims relating to your employment or service with the Company and/or with any predecessor of the Company, and that you have not assigned or transferred any claims relating to your employment or service to any other person or entity.

 

6.             You understand and agree that the Release shall not be construed at any time as an admission of liability or wrongdoing by either the Company or yourself.

 

7.             You agree that during the three (3) year period following your Cessation Date you will not make any negative or disparaging statements or comments, either as fact or as opinion, about the Company, its employees, officers, directors, shareholders, vendors, products or services, business, technologies, market position or performance. The Company (including its subsidiaries and affiliates) agrees that during the three (3) year period following your Cessation Date it will not make, and agrees to cause the executive officers, directors and authorized spokespersons of the Company to refrain from making, any negative or disparaging statements or comments, either as fact or as opinion, about you (or authorizing any statements or comments to be reported as being attributed to the Company). Nothing in this paragraph shall prohibit you or the Company from providing truthful information in response to a subpoena or other legal process.

 

8.             This Release shall become effective on the date of its execution by you. You understand that the payments and benefits under this Agreement (including as referenced herein and made under the Employment Agreement) will become available to you at such time after the Effective Date.

 

9.             In executing the Release, you acknowledge that you have not relied upon any statement made by the Company, or any of its representatives or employees, with regard to the Release unless the representation is specifically included herein. Furthermore, the Release contains our entire understanding regarding eligibility for payments and benefits and supersedes any or all prior representation and agreement regarding the subject matter of the Release. However, the Release does not modify, amend or supersede written Company agreements that are consistent with enforceable provisions of this Release such as your proprietary information and invention assignment agreement, and any stock, stock option and/or stock purchase agreements between the Company and you. Once effective and enforceable, this agreement can only be changed by another written agreement signed by you and an authorized representative of the Company.

 

3

 

C.            Miscellaneous

 

1.             Arbitration and Class Action Waiver. You and the Company agree to submit to mandatory binding arbitration any and all claims arising out of or related to your employment or service with the Company and the termination thereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownership interest in the Company, and/or discrimination (including harassment) based upon any federal, state or local ordinance, statute, regulation or constitutional provision, except that each party may, at its, his or her option, seek injunctive relief in court related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secret information (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, you and the Company agree that no class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must be brought solely in your or the Company’s individual capacity, and not as a plaintiff or class member in any purported class or collective proceeding. Nothing in this Arbitration and Class Action Waiver section, however, restricts your right, if any, to file in court a representative action under California Labor Code Sections 2698, et seq.

 

SUBJECT TO THE ABOVE PROVISO, THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLE CLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS OR COLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN YOU AND THE COMPANY.

 

This Agreement does not restrict your right to file administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict your ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the parties agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims. The arbitration shall be conducted in Santa Clara County, California through JAMS before a single neutral arbitrator, in accordance with the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed at http://www.jamsadr.com/rules-employment-arbitration. If you are unable to access these rules, please let the Company know and the Company will provide you with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based. In the event of arbitration relating to this Agreement or your service with the Company, each of you and the Company will bear its own costs, including, without limitation, attorneys’ fees.

 

2.             Indemnification. Subject to applicable law, the Company will provide you indemnification to the maximum extent permitted by the Company’s Certificate of Incorporation and Bylaws, in addition to coverage under any directors and officers insurance policies maintained by the Company, with such indemnification to be on terms determined by the Board or any of its committees, but in no case less favorable than those provided to any other executive officer or director of the Company. You will continue to be covered by any indemnification by and between you and the Company, which, if applicable, continues in full force and effect.

 

4

 

3.             Section 409A. To the extent (a) any payments to which Executive becomes entitled under this Agreement, or any agreement or plan referenced herein, in connection with Executive’s termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (b) Executive is deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments will not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s termination and (ii) the date of Executive’s death following such termination; provided, however, that such deferral will be effected only to the extent required to avoid adverse tax treatment to Executive, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph will be paid to Executive or Executive’s beneficiary in one lump sum (without interest).

 

To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment will be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.

 

Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A.

 

Notwithstanding the foregoing, in the event the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company will work in good faith with you to adopt such amendments to this Agreement, or to adopt such policies and procedures or take such other actions that the Company determines are necessary or appropriate, to avoid the imposition of taxes under Section 409A.

 

4.             Limitation on Payments Under Code Section 280G. In the event that the payments and other benefits provided for in this Agreement or otherwise payable to the you (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then your benefits under this Agreement shall be either:

 

(a)           delivered in full; or

 

(b)           delivered as to such lesser extent that would result in no portion of such benefits being subject to the Excise Tax, by reducing payments in the following order: first a pro rata reduction of (i) cash payments subject to Section 409A of the Code as deferred compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity award compensation subject to Section 409A of the Code as deferred compensation and (ii) equity award compensation not subject to Section 409A of the Code. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant;

 

whichever of the foregoing amounts in (a) and (b) above, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by you on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.

 

5

 

Unless the Company and you otherwise agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon you and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.

 

5.             Severability. If any provision of this Agreement shall be found by any arbitrator or court of competent jurisdiction to be invalid or unenforceable, then the parties hereby waive such provision to the extent of its invalidity or unenforceability, and agree that all other provisions in this Agreement shall continue in full force and effect.

 

6.             No Waiver. The failure by either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way affect the right to require such performance or compliance at any time thereafter. The waiver by either party of a breach of any provision hereof shall not be taken or held to be a waiver of any preceding or succeeding breach of such provision or as a waiver of the provision itself. No waiver of any kind shall be effective or binding, unless it is in writing and is signed by the party against whom such waiver is sought to be enforced.

 

7.             Assignment. This Agreement and all rights hereunder are personal to you and may not be transferred or assigned by you at any time. The Company may assign its rights, together with its obligations hereunder, to any parent, subsidiary, affiliate or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets, provided, however, that any such assignee assumes the Company’s obligations hereunder.

 

8.             Withholding. All sums payable to you hereunder shall be in United States Dollars and shall be reduced by applicable federal, state, local and other withholding and similar taxes and payments required by applicable law.

 

9.             Entire Agreement. This Agreement constitutes the entire and only agreement and understanding between the parties relating to Cessation and the termination, as applicable, of your employment or service with the Company.

 

10.          Amendment. This Agreement may only be amended, modified or waived, in whole or in part, in a writing executed by both you and the Company (as authorized by the Board).

 

11.          Binding Nature. This Agreement shall be binding upon, and inure to the benefit of, the successors and personal representatives of the respective parties hereto. You acknowledge that you have had the opportunity to discuss this matter with and obtain advice from his private attorney, have had sufficient time to, and have carefully read and fully understand all the provisions of this Agreement, and are knowingly and voluntarily entering into this Agreement.

 

12.          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement.

 

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[SIGNATURE PAGE TO GENERAL RELEASE AGREEMENT FOLLOWS]

 

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13.          Governing Law. This Agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the State of California, without giving effect to the principles of conflict of laws.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date indicated below.

 

 

	
GLU   MOBILE INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Benjamin T. Smith, IV
    	
 
    	
Niccolo de Masi
    
	
 
    	
 
    	
 
    
	
Title:   Compensation Committee, Chair
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date
    	
 
    
					

 

[SIGNATURE PAGE TO GENERAL RELEASE AGREEMENT]

 

8Exhibit 4.1

 

Form of Placement Agent Warrant

 

NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON THE EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 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 NOVEMBER ___, 2016, EXCEPT IN ACCORDANCE WITH FINRA RULE 5110(G)(2).

 

APPLIED DNA SCIENCES, INC.

 

COMMON STOCK PURCHASE WARRANT

 

	 	 	Original Issue Date: November [___], 2016

 

Applied DNA Sciences, Inc.,
a Delaware corporation (the “Company”), hereby certifies that, as partial compensation for its services as placement
agent to the Company, ___________, or its registered assigns (the “Holder”), is entitled to purchase from the
Company up to a total of ____ shares of Common Stock (each, a “Warrant” and collectively, the “Warrants,”
and each such share of Common Stock, a “Warrant Security” and all such shares of Common Stock, the “Warrant
Securities”), at any time and from time to time after the 180th day following November ___, 2016 and through
and including, November ___, 2021, the fifth anniversary of such effective date (the “Expiration Date”), in
accordance with FINRA Rule 5110(f)(2)(G)(i), and subject to the following terms and conditions:

 

1. Definitions.
As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1. Other capitalized
terms used and not otherwise defined shall have the meanings set forth in that certain Placement Agency Agreement, dated November
___, 2016, between the Company and the Holder.

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144.

 

“Business Day”
means any day except Saturday, Sunday and any day that is a federal legal holiday or a day on which banking institutions in the
State of New York are authorized or required by law or other governmental action to close.

 

    	 	1	 

     

    

 

Form of Placement Agent Warrant

 

“Common Stock”
means the common stock of the Company, $0.001 par value per share, and any securities into which such common stock may hereafter
be reclassified or for which it may be exchanged as a class.

 

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

 

“Exercise Price”
means $____ (115% of the offering price in connection with the Placement), subject to adjustment in accordance with Section 9.

 

“Fundamental
Transaction” means any of the following: (1) the Company effects any merger or consolidation of the Company with or into
another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions,
(3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property.

 

“New York Courts”
means the state and federal courts sitting in the City of New York, Borough of Manhattan.

 

“Original Issue
Date” means the Original Issue Date first set forth on the first page of this Warrant.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

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

 

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

 

“Subsidiary”
means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X promulgated by the Securities and Exchange
Commission under the Exchange Act.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not quoted on any Trading
Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by OTC Markets Group Inc. (or any
similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the Common Stock
is not listed or quoted as set forth in (i) or (ii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market”
means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market or the OTCQB on which the Common Stock is listed or quoted for trading on the date in question.

 

    	 	2	 

     

    

 

Form of Placement Agent Warrant

 

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

 

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

 

4. Exercise and Duration
of Warrants. This Warrant shall be exercisable by the registered Holder at any time and from time to time from and after 181
days following November ___, 2016 (the “Sale Commencement Date”), through and including the Expiration Date
in accordance with FINRA Rule 5110(f)(2)(G)(i). At 5:00 p.m., Eastern Standard Time on the Expiration Date, the portion of this
Warrant not exercised prior thereto shall be and become void and of no value. The Company may not call or redeem any portion of
this Warrant without the prior written consent of the affected Holder. In accordance with FINRA Rule 5110(g)(1), this Warrant shall
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 this Warrant by any person for a period of 180 days
immediately following the Sale Commencement Date, except as provided in FINRA Rule 5110(g)(2).

 

5. Delivery of Warrant
Securities.

 

(a) Upon delivery of the
Exercise Notice (in the form attached hereto) to the Company (with the attached Warrant Exercise Log) at its address for notice
set forth herein and upon payment of the Exercise Price multiplied by the number of Warrant Securities that the Holder intends
to purchase hereunder, the Company shall promptly (but in no event later than three Trading Days after the Date of Exercise (as
defined herein)) issue and deliver to the Holder, a certificate for the Warrant Securities issuable upon such exercise. The Company
shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale of the Warrant
Securities has been declared effective by the Securities and Exchange Commission, use its reasonable best efforts to deliver Warrant
Securities hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing
similar functions, if available, provided, that, the Company may, but will not be required to change its transfer agent
if its current transfer agent cannot deliver Warrant Securities electronically through the Depository Trust Corporation. A “Date
of Exercise” means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the
Warrant Exercise Log attached to it), appropriately completed and duly signed and (ii) payment of the Exercise Price for the number
of Warrant Securities so indicated by the Holder to be purchased.

 

(b) If by the third Trading
Day after a Date of Exercise the Company fails to deliver the required number of Warrant Securities in the manner required pursuant
to Section 5(a), then the Holder will have the right to rescind such exercise.

 

    	 	3	 

     

    

 

Form of Placement Agent Warrant

 

(c) If by the third Trading
Day after a Date of Exercise the Company fails to deliver the required number of Warrant Securities in the manner required pursuant
to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Securities, the Holder purchases
(in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant
Securities which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1)
pay in cash to the Holder the amount 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 (A) the number of Warrant Securities
that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of
the Common Stock on the Date of Exercise and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Securities for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock
or Warrants that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. 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.

 

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

 

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

 

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

 

    	 	4	 

     

    

 

Form of Placement Agent Warrant

 

8. Reservation of
Warrant Securities. The Company covenants that it will at all times reserve and keep available out of the aggregate of its
authorized but unissued and otherwise unreserved shares of Common Stock solely for the purpose of enabling it to issue Warrant
Securities upon exercise of this Warrant as herein provided, the number of shares of Common Stock which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other
than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Securities
so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly authorized, validly issued and fully paid and non-assessable.

 

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

 

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

 

(b) Fundamental Transactions.
If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have the right thereafter
to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled
to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Securities then issuable upon exercise in full of this Warrant (the “Alternate Consideration”).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting
the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice
as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice
as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. At the
Holder’s option and request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue
to the Holder a new warrant substantially in the form of this Warrant and consistent with the foregoing provisions and evidencing
the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms
of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving
entity to comply with the provisions of this paragraph (b) and insuring that the Warrant (or any such replacement security) will
be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

    	 	5	 

     

    

 

Form of Placement Agent Warrant

 

(c) Adjustments for
Other Distributions. In the event the Company shall declare a distribution on the outstanding Common Stock that is payable
in securities of other Persons, evidences of indebtedness issued by the Company or other Persons, assets (excluding cash dividends
or distributions to the holders of Common Stock paid out of current or retained earnings and declared by the Company’s Board
of Directors) or options or rights, then, in each such case for the purpose of this Section 9(c), upon exercise of this Warrant,
the Holder shall be entitled to a proportionate share of any such distribution as though the Holder was the actual record holder
of the number of shares of Common Stock which might have been purchased upon exercise of this Warrant immediately prior to the
record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution (or
the date of such distribution if no record date is fixed).

 

(d) Subsequent Rights
Offering. In addition to any adjustments pursuant to Section 9(c) above, if at any time during which this Warrant is outstanding,
the Company grants, issues or sells any Common Stock equivalents or other rights to purchase stock, warrants, securities or other
property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then
the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which
the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of
this Warrant (without regard to any limitations on exercise hereof, including without limitation, beneficial ownership limitations)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or
sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder exceeding beneficial ownership limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding beneficial ownership limitations). The provisions of this Section 9(d) will
not apply to any grant, issuance or sale of Common Stock equivalents or other rights to purchase stock, warrants, securities or
other property of the Company which is not made pro rata to the record holders of any class of shares of Common Stock.

 

(e) Number of Warrant
Securities. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of Warrant Securities
that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment
the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Securities shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment.

 

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

 

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

 

    	 	6	 

     

    

 

Form of Placement Agent Warrant

 

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

 

10. Payment of Exercise
Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a) Cash Exercise.
The Holder may deliver immediately available funds; or

 

(b) Cashless Exercise.
If on the Date of Exercise there is no effective registration statement registering, or the prospectus contained therein is not
available for, the resale of the Warrant Securities, the Holder may notify the Company in an Exercise Notice of its election to
utilize cashless exercise, in which event the Company shall issue to the Holder the number of Warrant Securities determined as
follows:

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Securities
to be issued to the Holder.

 

Y = the number of Warrant Securities
with respect to which this Warrant is being exercised.

 

A = the average of the daily volume
weighted average price of the Common Stock for the five Trading Days immediately prior to (but not including) the Date of Exercise.

 

B = the Exercise Price.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Securities issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Securities shall be deemed to have
commenced, on the date this Warrant was originally issued.

 

    	 	7	 

     

    

 

Form of Placement Agent Warrant

 

11. Limitations on
Exercise. Notwithstanding anything to the contrary contained herein, the number of Warrant Securities that may be acquired
by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure
that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder
and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s
for purposes of Section 13(d) of the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of
Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 11 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 an Exercise Notice 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 the limitation contained in this Section 11, and the
Company shall have no obligation to verify or confirm the accuracy of such determination. This provision shall not restrict the
number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities
or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this
Warrant. This restriction may not be waived. Notwithstanding anything to the contrary contained in this Warrant, (a) no term of
this Section may be waived by any party, nor amended such that the threshold percentage of ownership would be directly or indirectly
increased, (b) this restriction runs with the Warrant and may not be modified or waived by any subsequent holder hereof and (c)
any attempted waiver, modification or amendment of this Section will be void ab initio.

 

12. No Fractional
Shares. No fractional Warrant Securities will be issued in connection with any exercise of this Warrant. In lieu of any fractional
shares, which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the closing
price of one share of Common Stock as reported by the applicable Trading Market on the date of exercise.

 

13. Registration Rights.

 

(a) Demand Registration.
The Company, upon written demand (a “Demand Notice”) by the Holder, and if the Holder has assigned a portion
of the Warrant, of the holders, agrees to register (a “Demand Registration”), on one occasion, all or any portion
of the Warrant Securities. On such occasion, the Company will file a registration statement or a post-effective amendment to the
Registration Statement covering the Warrant Securities within sixty (60) days after receipt of a Demand Notice and use its best
efforts to have such registration statement or post-effective amendment declared effective promptly thereafter, subject to compliance
with review by the Commission; provided, however, that the Company shall not be required to comply with a Demand Notice if the
Company has filed a registration statement with respect to which the Holder is entitled to piggyback registration rights pursuant
to Section 13(b) hereof and either: (i) the Holder was given the opportunity to exercise its rights under Section 13(b) hereof
in connection with the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten
primary offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or
until thirty (30) days after such offering is consummated. A Demand Notice may be given at any time during the period of four and
a half (4.5) years beginning 180 days from the Sale Commencement Date. The Company covenants and agrees, if the Holder has assigned
a portion of this Warrant, to give written notice of its receipt of the Demand Notice by any Holder to all other registered Holder
of the Warrants and/or the Warrant Securities within ten (10) days from the date of the receipt of such Demand Notice. The Holder,
or if the Warrant has been assigned, the Holders, shall not effect more than two (2) Demand Registrations pursuant to this Section
13(a). A registration will not count as a Demand Registration until the registration statement filed with the Commission with respect
to such Demand Registration has been declared effective and the Company has complied with all of its obligations hereunder with
respect thereto; provided, however, that if, after such registration statement has been declared effective, the offering of the
Warrant Securities pursuant to a Demand Registration is interfered with by any stop order or injunction of the Commission or any
other governmental agency or court, the registration statement with respect to such Demand Registration will be deemed not to have
been declared effective, unless and until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and
(ii) the Holder thereafter elect to continue the offering. The Company shall bear all fees and expenses attendant to the first
Demand Registration pursuant to Section 13(a), including the reasonable and documented expenses of a single legal counsel selected
by the Holders to represent them in connection with the sale of the Warrant Securities, but the Holders shall pay any and all underwriting
commissions or brokerage fees related to the Warrant Securities, if applicable. The Holders shall bear all fees and expenses (including
all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them) in connection with
the second Demand Registration pursuant to Section 13(a). The Company agrees to use its best efforts to cause the filing required
herein to become effective promptly and to qualify or register the Warrant Securities in such States as are reasonably requested
by the Holder, or if the Warrant has been assigned, by the Holders; provided, however, that in no event shall the Company be required
to register the Warrant Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such State, or (ii) the principal stockholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall use its commercially reasonable
efforts to cause any registration statement filed pursuant to the demand right granted under Section 13(a) to remain effective
for a period of at least twelve (12) consecutive months from the date that the Holder of the Warrant Securities covered by such
registration statement are first given the opportunity to sell all of such securities. The Holder shall only use the prospectuses
provided by the Company to sell the shares covered by such registration statements, and will immediately cease to use any prospectus
furnished by the Company if the Company advises the Holder that such prospectus may no longer be used due to a material misstatement
or omission.

 

    	 	8	 

     

    

 

Form of Placement Agent Warrant

 

(b) “Piggy-Back”
Registration. In addition to the demand rights of registration described in Section 13(a) hereof, the Holder shall have the
right, for a period of five (5) years commencing 180 days from the Sale Commencement Date, to include the Warrant Securities as
part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by
Rule 145(a) promulgated under the Securities Act or pursuant to Form S-8 or S-4 or any equivalent form); provided, however, that
if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s)
thereof shall, in its reasonable discretion, impose a limitation on the number of Warrant Securities which may be included in the
registration statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary
to facilitate public distribution, then the Company shall be obligated to include in such registration statement only such limited
portion of the Warrant Securities with respect to which the Holder requested inclusion hereunder as the underwriter(s) shall reasonably
permit. Any exclusion of Warrant Securities shall be made pro rata among the Holder, or if the Warrant has been assigned, to the
Holders seeking to include Warrant Securities in proportion to the number of Warrant Securities sought to be included by such Holders;
provided, however, that the Company shall not exclude any Warrant Securities unless the Company has first excluded all outstanding
securities, the holders of which are not entitled to inclusion of such securities in such registration statement or are not entitled
to pro rata inclusion with the Warrant Securities. The Holders shall be entitled to unlimited piggy-back registration rights pursuant
to this Section 13(b). Any holder of the Warrant Securities may elect to withdraw such Holder’s request for inclusion of
the Warrant Securities in any piggy-back registration by giving written notice to the Company of such request to withdraw prior
to the effectiveness of the registration statement. The Company (whether on its own determination or as the result of a withdrawal
by persons making a demand pursuant to written contractual obligations) may withdraw a registration statement at any time prior
to the effectiveness of the registration statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred
by the Holders of the Warrant Securities in connection with such piggy-back registration as provided in Section 13(b). The Company
shall bear all fees and expenses attendant to registering the Warrant Securities pursuant to Section 13(b) hereof, including the
reasonable and documented expenses of a single legal counsel selected by the Holders to represent them in connection with the sale
of the Warrant Securities, but the Holders shall pay any and all underwriting commissions or brokerage fees related to the Warrant
Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Warrant Securities
with not less than fifteen (15) days written notice prior to the proposed date of filing of such registration statement. Such notice
to the Holders shall continue to be given for each registration statement filed by the Company until such time as all of the Warrant
Securities have been sold by the Holder. The holders of the Warrant Securities shall exercise the “piggy-back” rights
provided for herein by giving written notice, within ten (10) days of the receipt of the Company’s notice of its intention
to file a registration statement. The Company shall use its best efforts to cause any registration statement filed pursuant to
the piggyback right granted under Section 13(b) to remain effective for a period of at least nine (9) consecutive months from the
date that the Holders of the Warrant Securities covered by such registration statement are first given the opportunity to sell
all of such securities.

 

    	 	9	 

     

    

 

Form of Placement Agent Warrant

 

14.
Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise
Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice
or communication is delivered via  facsimile at the facsimile number specified in this Section
prior to 5:00 p.m. (Eastern Standard Time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading
Day or later than 5:00 p.m. (Eastern Standard Time) on any Trading Day, (iii) the Trading Day following the date of mailing, if
sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required
to be given. The addresses for such communications shall be: (i) if to the Company, to Applied DNA Sciences, Inc., 50 Health Sciences
Drive, Stony Brook, New York 11790, Attention: Chief Executive Officer (or such other address as the Company shall indicate in
writing in accordance with this Section), or via facsimile to (631) 240-8900, or (ii) if to the Holder, to the address or facsimile
number appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the Company in
accordance with this Section. 

 

15. Miscellaneous.

 

(a) This Warrant shall
be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the preceding
sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable
right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the
Holder and their successors and assigns. The foregoing sentence shall be subject to the restrictions on waivers and amendments
set forth in Section 11 of this Warrant.

 

(b) 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.

 

    	 	10	 

     

    

 

Form of Placement Agent Warrant

 

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

 

(d) The failure of any
of the parties hereto to at any time enforce any of the provisions of this Warrant shall not be deemed or construed to be a waiver
of any such provision, nor to in any way effect the validity of this Warrant or any provision hereof or the right of any of the
parties hereto to thereafter enforce each and every provision of this Warrant. No waiver of any breach, non-compliance or non-fulfillment
of any of the provisions of this Warrant shall be effective unless set forth in a written instrument executed by the party or parties
against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment
shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

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

 

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

 

(g) Prior to exercise
of this Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder with respect
to the Warrant Securities, except as set forth herein.

 

[Signature page follows.]

 

    	 	11	 

     

    

 

Form of Placement Agent Warrant

 

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

 

	 	APPLIED DNA SCIENCES, INC.
	 	 
	 	By: 	 
	 	Name: James A. Hayward
	 	Title: Chief Executive Officer

 

[Signature page to Placement Agent Warrant]

 

    	 	12	 

     

    

 

Form of Placement Agent Warrant

 

EXERCISE NOTICE

APPLIED DNA SCIENCES, INC.

WARRANT DATED NOVEMBER ___, 2016

 

The undersigned Holder
hereby irrevocably elects to purchase Warrant Securities pursuant to the above referenced Warrant. Capitalized terms used herein
and not otherwise defined have the respective meanings set forth in the Warrant.

 

	(1)	The undersigned Holder hereby exercises its right to purchase Warrant Securities pursuant to the Warrant. 

 

	(2)	
        (PLEASE CHECK ONE METHOD OF PAYMENT)

         ☐ The Holder shall pay the sum of $___
        to the Company in accordance         with the terms of the Warrant; or

         

         ☐ The Holder shall exercise the
        Warrant through a cashless         exercise in accordance with the terms of the Warrant.

 

	(3)	Pursuant to this Exercise Notice, the Company shall deliver to the holder Warrant Securities in accordance with the terms of the Warrant.
	 	 
	(4)	Please issue said Warrant Securities in the name of the undersigned or in such other name as is specified here: ______________________________________.
	 	 
	(5)	By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (determined in accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be owned under Section 11 of this Warrant to which this notice relates. 

 

	Dated: 	 	 	Name of Holder:
	 	 
	 	(Print) 
	 	 
	 	Name: 
	 	Title: 
	 	Date: 
	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant.)

 

    	 	13	 

     

    

 

Form of Placement Agent Warrant

 

WARRANT EXERCISE LOG

 

	Date	 	Number of Warrant 

Securities Available to 

be Exercised	 	Number of Warrant 

Securities Exercised	 	Number of Warrant 

Securities Remaining 

to be Exercised
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	14	 

     

    

 

Form of Placement Agent Warrant

 

APPLIED DNA SCIENCES, INC.

WARRANT DATED NOVEMBER ___, 2016

 

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

 

		 

 

		 

 

Date: ______________, _______

 

	 	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.

 

    	 	15

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