Document:

Exhibit 4.1

 

AMENDMENT NO. 4 TO 

SHAREHOLDER RIGHTS AGREEMENT

 

This Amendment No. 4 to
Shareholder Rights Agreement (the “Amendment”), dated as of May 28, 2015, by and between NeuroMetrix,
Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, LLC (the “Rights
Agent”), amends that certain Shareholder Rights Agreement, dated as of March 7, 2007, as amended as of September
8, 2009, as of June 5, 2013, and as of June 25, 2014, between the Company and the Rights Agent (as so amended, the “Rights
Agreement”).

 

WHEREAS, the Company
and the Rights Agent are parties to the Rights Agreement; and

 

WHEREAS, the Company
desires to issue and sell to Sabby Management, LLC and its affiliates 122,000 shares of its Series B convertible preferred stock,
which are convertible into 12,078,000 shares of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”) and 12,078,000 warrants to purchase 12,078,000 of the Company’s Common Stock, pursuant to the Prospectus,
dated May 26, 2015, filed with the Securities and Exchange Commission on May 27, 2015 (Registration Nos. 333-188133 and 333-204464);
and

 

WHEREAS, pursuant
to Section 27 of the Rights Agreement, the Company and the Rights Agent may from time to time supplement or amend the Rights Agreement
subject to the terms of the Rights Agreement; and

 

WHEREAS, the Board
of Directors of the Company has determined that an amendment to the Rights Agreement as set forth herein is necessary and desirable
in connection with the foregoing and the Company and the Rights Agent desire to evidence such amendment in writing.

 

NOW, THEREFORE,
in consideration of these premises and mutual agreements set forth herein, the parties agree as follows:

 

1.          Amendment
of Section 1. Section 1 of the Rights Agreement, “Certain Definitions” is supplemented to add the following definitions
in the appropriate locations:

 

    	 

    	 

    

 

“2015
Preferred Stock” shall mean shares of Series B convertible preferred stock, par value $0.001 per share, of the Company
having the rights and preferences set forth in the form of the Certificate of Designation attached hereto as Exhibit C.

 

“2015
Prospectus” shall mean the Prospectus, dated May 26, 2015, filed with the Securities and Exchange Commission on May 27,
2015 (Registration Nos. 333-188133 and 333-204464).

 

“Sabby”
shall mean Sabby Management, LLC and its affiliates.

 

“Sabby
Transactions” shall mean the issuance to Sabby of (x) 122,000 shares of 2015 Preferred Stock, and (y) the Sabby Warrants,
each pursuant to the 2015 Prospectus, and the conversion of the 2015 Preferred Stock and the exercise of the SabbyWarrants in accordance
with their respective terms.

 

“Sabby
Warrants” shall mean the warrants to purchase 12,078,000 shares of Common Stock to be issued to Sabby pursuant to the
2015 Prospectus.

 

2.          Amendment
of the definition of “Acquiring Person”. The definition of “Acquiring Person” in Section 1 of the Rights
Agreement is amended by adding the following sentence at the end thereof:

 

“Notwithstanding
anything in this Rights Agreement to the contrary, neither Sabby nor any of its Affiliates or Associates shall be deemed to be
an Acquiring Person solely as a result of the consummation of the Sabby Transactions, the execution of the Sabby Warrants, or any
other transaction contemplated by the 2015 Prospectus, the 2015 Preferred Stock, or the Sabby Warrants.”

 

3.          Amendment of the
definition of “Section 11(a)(ii) Event”. The definition of “Section 11(a)(ii) Event” in Section 1
of the Rights Agreement is amended by adding the following sentence at the end thereof:

 

“Notwithstanding
anything in this Rights Agreement to the contrary, a Section 11(a)(ii) Event shall not be deemed to have occurred solely as a result
of the consummation of the Sabby Transactions, the execution of the Sabby Warrants, or any other transaction contemplated by the
2015 Prospectus, the 2015 Preferred Stock, or the Sabby Warrants.”

 

    	 

    	 

    

 

4.          Amendment of the
definition of “Stock Acquisition Date”. The definition of “Stock Acquisition Date” in Section 1 of
the Rights Agreement is amended by adding the following sentence at the end thereof:

 

“Notwithstanding
anything in this Rights Agreement to the contrary, a Stock Acquisition Date shall not be deemed to have occurred solely as a result
the consummation of the Sabby Transactions, the execution of the Sabby Warrants, or any other transaction contemplated by the 2015
Prospectus, the 2015 Preferred Stock, or the Sabby Warrants.”

 

5.          Amendment to
Section 30. Section 30 of the Rights Agreement is amended by adding the following sentence at the end thereof:

 

“Nothing
in this Agreement shall be construed to give any holder of Rights or any other Person any legal or equitable rights, remedies or
claims under this Agreement by virtue of the consummation of the Sabby Transactions, the execution of the Sabby Warrants, or any
other transaction contemplated by the 2015 Prospectus, the 2015 Preferred Stock, or the Sabby Warrants.”

 

6.          Ratification.
The parties hereby ratify and confirm in all respects the Agreement, as amended by this Amendment.

 

7.          Governing
Law. This Amendment shall be deemed to be a contract made
under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of
such State applicable to contracts to be made and performed entirely within such State.

 

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

 

9.          Descriptive
Headings. Descriptive headings of the several Sections of this Amendment
are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties have entered
into this Amendment No. 4 to Shareholder Rights Agreement as of the date first stated above.

 

	NEUROMETRIX, INC.	 
	 	 	 
	By: 	/s/ Thomas T. Higgins	 
	Name:	Thomas T. Higgins	 
	Title:	Senior Vice President, Chief	 
	 	Financial Officer, Treasurer and	 
	 	Principal Accounting Officer	 
	 	 	 
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
	 	 	 
	By: 	/s/ Michael Nespoli	 
	Name:	Michael Nespoli	 
	Title:	Executive Director	 

 

    	 

    	 

    

 

EXHIBIT C

 

NEUROMETRIX,
Inc.

 

CERTIFICATE OF DESIGNATION OF PREFERENCES,

RIGHTS AND LIMITATIONS

OF

SERIES B CONVERTIBLE PREFERRED STOCK

 

PURSUANT
TO SECTION 151 OF THE 

Delaware
GENERAL CORPORATION LAW

 

The undersigned, Thomas
T. Higgins, does hereby certify that:

 

1.   He is the Senior Vice
President, Chief Financial Officer and Treasurer of NeuroMetrix, Inc., a Delaware corporation (the “Corporation”).

 

2.   The Corporation is authorized
to issue 5,000,000 shares of preferred stock, 3,206.357 of which have been issued.

 

3.  The following resolutions
were duly adopted by the board of directors of the Corporation (the “Board of Directors”):

 

WHEREAS, the certificate
of incorporation of the Corporation provides for a class of its authorized stock known as preferred stock, consisting of 5,000,000
shares, $0.001 par value per share, issuable from time to time in one or more series;

 

WHEREAS, the Board of Directors
is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms of redemption and liquidation
preferences of any wholly unissued series of preferred stock and the number of shares constituting any series and the designation
thereof, of any of them; and

 

WHEREAS, it is the desire
of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences, restrictions and other matters
relating to a series of the preferred stock, which shall consist of up to 147,000 shares of the preferred stock which the Corporation
has the authority to issue, as follows:

 

NOW, THEREFORE, BE IT RESOLVED,
that the Board of Directors does hereby provide for the issuance of a series of preferred stock for cash or exchange of other securities,
rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters relating to such series
of preferred stock as follows:

 

    	 

    	 

    

 

TERMS OF PREFERRED STOCK

 

Section 1.        Definitions.
For the purposes hereof, the following terms shall have the following meanings:

 

“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 405 of the Securities Act.

 

“Alternate
Consideration” shall have the meaning set forth in Section 7(e).

  

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 6(d).

 

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

 

“Buy-In”
shall have the meaning set forth in Section 6(c)(iv).

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Corporation, by contract or otherwise)
of in excess of 40% of the voting securities of the Corporation (other than by means of conversion or exercise of Preferred Stock
and the Securities issued together with the Preferred Stock), (b) the Corporation merges into or consolidates with any other Person,
or any Person merges into or consolidates with the Corporation and, after giving effect to such transaction, the stockholders of
the Corporation immediately prior to such transaction own less than 40% of the aggregate voting power of the Corporation or the
successor entity of such transaction, (c) the Corporation sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Corporation immediately prior to such transaction own less than 60% of the aggregate voting
power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a one year period of more
than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members
of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors
on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who
are members on the Original Issue Date), or (e) the execution by the Corporation of an agreement to which the Corporation is a
party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

    	 

    	 

    

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 1(c) of the Underwriting Agreement.

 

“Closing
Date” means the hour and date of delivery and payment for the Securities.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the Corporation’s common stock, par value $0.0001 per share, and stock of any other class of securities
into which such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof
to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock.

 

“Conversion
Amount” means the sum of the Stated Value at issue.

 

“Conversion
Date” shall have the meaning set forth in Section 6(a).

 

“Conversion
Price” shall have the meaning set forth in Section 6(b).

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in
accordance with the terms hereof.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 7(e).

 

“GAAP”
means United States generally accepted accounting principles.

 

“Holder”
shall have the meaning given such term in Section 2.

 

“Junior
Securities” means the Common Stock and all other Common Stock Equivalents of the Corporation other than those securities
which are explicitly senior or pari passu to the Preferred Stock in dividend rights or liquidation preference.

 

    	 

    	 

    

 

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Liquidation”
shall have the meaning set forth in Section 4.

 

“New
York Courts” shall have the meaning set forth in Section 8(d).

 

“Notice
of Conversion” shall have the meaning set forth in Section 6(a).

 

“Original
Issue Date” means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers
of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued to evidence such Preferred
Stock.

 

“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.

 

“Preferred
Stock” shall have the meaning set forth in Section 2.

 

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

 

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

 

“Securities”
means the Preferred Stock, the Warrants, the Warrant Shares and the Underlying Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Share
Delivery Date” shall have the meaning set forth in Section 6(c).

 

“Stated
Value” shall have the meaning set forth in Section 2, as the same may be increased pursuant to Section 3.

 

“Subsidiary”
means any subsidiary of the Corporation required, on or prior to Original Issue Date, to be listed on Exhibit 21 pursuant to Regulation
S-K promulgated under the Securities Act and the Exchange Act and shall, where applicable, also include any direct or indirect
subsidiary of the Corporation formed or acquired after the date of the Underwriting Agreement.

 

    	 

    	 

    

 

“Successor
Entity” shall have the meaning set forth in Section 7(e).

 

“Trading
Day” means a day on which the principal Trading Market is open for business.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transfer
Agent” means American Stock Transfer & Trust Company, the current transfer agent of the Corporation with a mailing
address of 59 Maiden Lane, New York, New York and a facsimile number of 718-236-4588, and any successor transfer agent of the Corporation.

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock and upon exercise
of the Warrants.

 

“Underwriting
Agreement” means the Underwriting Agreement, dated May 26, 2015, between the Corporation and Maxim Group LLC, as representative
of the several underwriters named in Schedule 1 thereof, as amended, modified or supplemented from time to time in accordance with
its terms.

 

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

 

    	 

    	 

    

 

“Warrants”
shall have the meaning set forth in the Underwriting Agreement.

 

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

 

Section 2.
       Designation, Amount and Par Value. The series of preferred stock shall be designated as its Series B Convertible Preferred
Stock (the “Preferred Stock”) and the number of shares so designated shall be up to 147,000 (which shall not
be subject to increase without the written consent of a majority of the holders of the Preferred Stock (each, a “Holder”
and collectively, the “Holders”)). Each share of Preferred Stock shall have a par value of $0.001 per share
and a stated value equal to $100, subject to increase set forth in Section 3 below (the “Stated Value”).

 

Section 3.
       Dividends.

 

a)          Holders
shall be entitled to receive, and the Corporation shall pay, dividends on shares of Preferred Stock equal (on an as-if-converted-to-Common-Stock
basis) to and in the same form as dividends (other than dividends in the form of Common Stock) actually paid on shares of the Common
Stock when, as and if such dividends (other than dividends in the form of Common Stock) are paid on shares of the Common Stock.
Other than as set forth in the previous sentence, no other dividends shall be paid on shares of Preferred Stock; and the Corporation
shall pay no dividends (other than dividends in the form of Common Stock) on shares of the Common Stock unless it simultaneously
complies with the previous sentence.

 

b)          Other
Securities. So long as any Preferred Stock shall remain outstanding, the Corporation shall not redeem, purchase or otherwise
acquire directly or indirectly more than a de minimis amount of any Junior Securities other than as to repurchases of Common Stock
or Common Stock Equivalents from departing officers or directors, and provided that, while any of the Preferred Stock remains outstanding,
such repurchases shall not exceed an aggregate of $100,000 in any fiscal year from all officers and directors.

 

Section 4.       Voting
Rights. Except as otherwise provided herein or as otherwise required by law, the Preferred Stock shall have no voting rights.
However, as long as any shares of Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote of the
Holders of a majority of the then outstanding shares of the Preferred Stock, (a) alter or change adversely the powers, preferences
or rights given to the Preferred Stock or alter or amend this Certificate of Designation, (b) authorize or create any class of
stock ranking as to dividends, redemption or distribution of assets upon a liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary, that is senior to the Preferred Stock, (c) amend its certificate of incorporation or other charter
documents in any manner that adversely affects any rights of the Holders, (d) increase the number of authorized shares of Preferred
Stock, or (e) enter into any agreement with respect to any of the foregoing.

 

    	 

    	 

    

 

Section 5.       Liquidation.
Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a “Liquidation”),
the Holders shall be entitled to receive distributions out of the assets, whether capital or surplus, of the Corporation on a pari
passu basis with the holders of Common Stock. The Corporation shall mail written notice of any such Liquidation, not less than
45 days prior to the payment date stated therein, to each Holder.

 

Section 6.         Conversion.

 

a)          Conversions
at Option of Holder. Each share of Preferred Stock shall be convertible, at any time and from time to time from and after the
Original Issue Date at the option of the Holder thereof, into that number of shares of Common Stock (subject to the limitations
set forth in Section 6(d)) determined by dividing the Stated Value of such share of Preferred Stock by the Conversion Price. Holders
shall effect conversions by providing the Transfer Agent with the form of conversion notice attached hereto as Annex A (a
“Notice of Conversion”). Each Notice of Conversion shall specify the number of shares of Preferred Stock to
be converted, the number of shares of Preferred Stock owned prior to the conversion at issue, the number of shares of Preferred
Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be
prior to the date the applicable Holder delivers by facsimile such Notice of Conversion to the Transfer Agent (such date, the “Conversion
Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such
Notice of Conversion to the Corporation is deemed delivered hereunder. The calculations and entries set forth in the Notice of
Conversion shall control in the absence of manifest or mathematical error. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing the
shares of Preferred Stock unless all of the shares of Preferred Stock represented thereby are so converted, in which case such
Holder shall deliver the certificate representing such shares of Preferred Stock promptly following the Conversion Date at issue.
Shares of Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall
not be reissued.

 

b)          Conversion
Price. The conversion price for the Preferred Stock shall equal $1.0101, subject to adjustment herein (the “Conversion
Price”).

  

    	 

    	 

    

 

		c)	Mechanics of Conversion

 

i.            Delivery
of Conversion Shares Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share
Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder (A) the number of
Conversion Shares being acquired upon the conversion of the Preferred Stock, which Conversion Shares shall be free of restrictive
legends and trading restrictions (including, if the Corporation has given continuous notice pursuant to Section 3(b) for payment
of dividends in shares of Common Stock at least 20 Trading Days prior to the date on which the Notice of Conversion is delivered
to the Corporation, shares of Common Stock representing the payment of accrued dividends otherwise determined pursuant to Section
3(a) but assuming that the Dividend Notice Period is the 20 Trading Days period immediately prior to the date on which the Notice
of Conversion is delivered to the Corporation and excluding for such issuance the condition that the Corporation deliver the Dividend
Share Amount as to such dividend payment prior to the commencement of the Dividend Notice Period), and (B) a bank check in the
amount of accrued and unpaid dividends (if the Corporation has elected or is required to pay accrued dividends in cash). The Corporation
shall use its best efforts to deliver the Conversion Shares electronically through the Depository Trust Company or another established
clearing corporation performing similar functions.

 

ii.         Failure
to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as
directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Corporation
at any time on or before its receipt of Conversion Shares, to rescind such Conversion, in which event the Corporation shall promptly
return to the Holder any original Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return
to the Corporation the Conversion Shares issued to such Holder pursuant to the rescinded Conversion Notice.

 

    	 

    	 

    

 

iii.         Obligation
Absolute; Partial Liquidated Damages. The Corporation’s obligation to issue and deliver the Conversion Shares upon conversion
of Preferred Stock in accordance with the terms hereof is absolute and unconditional, irrespective of any action or inaction by
a 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 such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation
of law by such Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation
of the Corporation to such Holder in connection with the issuance of such Conversion Shares; provided, however, that
such delivery shall not operate as a waiver by the Corporation of any such action that the Corporation may have against such Holder.
In the event a Holder shall elect to convert any or all of the Stated Value of its Preferred Stock, the Corporation may not refuse
conversion based on any claim that such Holder or any one associated or affiliated with such Holder has been engaged in any violation
of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining
conversion of all or part of the Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts
a surety bond for the benefit of such Holder in the amount of 150% of the Stated Value of Preferred Stock which is subject to the
injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the
proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the Corporation
shall issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion. If the Corporation fails to deliver
to a Holder such Conversion Shares pursuant to Section 6(c)(i) on the second Trading Day after the Share Delivery Date applicable
to such conversion, the Corporation shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000
of Stated Value of Preferred Stock being converted, $50 per Trading Day (increasing to $100 per Trading Day on the third Trading
Day and increasing to $200 per Trading Day on the sixth Trading Day after such damages begin to accrue) for each Trading Day after
such second Trading Day after the Share Delivery Date until such Conversion Shares are delivered or Holder rescinds such conversion.
Nothing herein shall limit a Holder’s right to pursue actual damages and such Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief. The exercise of any such rights shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section
hereof or under applicable law.

 

iv.         Compensation
for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other rights available to the
Holder, if the Corporation fails for any reason to deliver to a Holder the applicable Conversion Shares by the Share Delivery Date
pursuant to Section 6(c)(i), and if after such Share Delivery Date such Holder is required by its brokerage firm to purchase (in
an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by such Holder of the Conversion Shares which such Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then the Corporation shall (A) pay in cash to such Holder
(in addition to any other remedies available to or elected by such Holder) the amount, if any, by which (x) such Holder’s
total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the
aggregate number of shares of Common Stock that such Holder was entitled to receive from the conversion at issue multiplied by
(2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage
commissions) and (B) at the option of such Holder, either reissue (if surrendered) the shares of Preferred Stock equal to the number
of shares of Preferred Stock submitted for conversion (in which case, such conversion shall be deemed rescinded) or deliver to
such Holder the number of shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery
requirements under Section 6(c)(i). For example, if a Holder purchases shares of Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted conversion of shares of Preferred Stock with respect to which the actual
sale price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of
$10,000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay such Holder $1,000. The
Holder shall provide the Corporation written notice indicating the amounts payable to such Holder in respect of the Buy-In and,
upon request of the Corporation, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Corporation’s failure to timely deliver the Conversion Shares upon conversion
of the shares of Preferred Stock as required pursuant to the terms hereof.

 

    	 

    	 

    

 

v.           Reservation
of Shares Issuable Upon Conversion. The Corporation covenants that it will at all times reserve and keep available out of its
authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred Stock and payment
of dividends on the Preferred Stock, each as herein provided, free from preemptive rights or any other actual contingent purchase
rights of Persons other than the Holder (and the other holders of the Preferred Stock), not less than such aggregate number of
shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions of Section 7) upon the conversion
of the then outstanding shares of Preferred Stock and payment of dividends hereunder. The Corporation covenants that all shares
of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

vi.         Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred Stock.
As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Corporation shall
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

vii.         Transfer
Taxes and Expenses. The issuance of Conversion Shares on conversion of this Preferred Stock shall be made without charge to
any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion
Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved
in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holders of such shares
of Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares unless or until the Person
or Persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established
to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer Agent fees required
for same-day processing of any Notice of Conversion.

 

    	 

    	 

    

  

viii.         Transfer
Restrictions. The Corporation registered the issuance and sale of the Preferred Stock and the Underlying Shares in the registration
statement relating to the offer and sale of the Securities on the Original Issue Date (the “Registration Statement”).
The Corporation will use its reasonable best efforts to maintain the effectiveness of the Registration Statement and the current
status of the prospectus contained in the Registration Statement or to file and maintain the effectiveness of another registration
statement and another current prospectus covering the Preferred Stock and the Underlying Shares at any time that the Preferred
Stock may be converted. However, if, at the time of the surrender of any certificate representing shares of Preferred Stock in
connection with any transfer of such Preferred Stock, the transfer of such Preferred Stock shall not be either (i) registered pursuant
to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii)
eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144,
the Corporation may require, as a condition of allowing such transfer, that the Holder provide to the Corporation an opinion of
counsel selected by the transferor and reasonably acceptable to the Corporation, the form and substance of which opinion shall
be reasonably satisfactory to the Corporation, to the effect that such transfer does not require registration under the Securities
Act.

 

d)          Beneficial
Ownership Limitation. The Corporation shall not effect any conversion of the Preferred Stock, and a Holder shall not
have the right to convert any portion of the Preferred Stock, to the extent that, after giving effect to the conversion set forth
on the applicable Notice of Conversion, such Holder (together with such Holder’s Affiliates, and any Persons acting as a
group together with such Holder or any of such Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially
owned by such Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of the Preferred
Stock with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are
issuable upon (i) conversion of the remaining, unconverted Stated Value of Preferred Stock beneficially owned by such Holder or
any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the
Corporation subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without
limitation, the Preferred Stock or the Warrants) beneficially owned by such Holder or any of its Affiliates.  Except as set
forth in the preceding sentence, for purposes of this Section 6(d), beneficial ownership shall be calculated 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 6(d) applies, the determination of whether the Preferred Stock is convertible (in relation to other securities
owned by such Holder together with any Affiliates) and of how many shares of Preferred Stock are convertible shall be in the sole
discretion of such Holder, and the submission of a Notice of Conversion shall be deemed to be such Holder’s determination
of whether the shares of Preferred Stock may be converted (in relation to other securities owned by such Holder together with any
Affiliates) and how many shares of the Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation.
To ensure compliance with this restriction, each Holder will be deemed to represent to the Corporation each time it delivers a
Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 6(d), in determining the number of outstanding shares of Common Stock, a Holder
may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Corporation’s
most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by
the Corporation or (iii) a more recent written notice by the Corporation or the Transfer Agent setting forth the number of shares
of Common Stock outstanding.  Upon the written or oral request of a Holder, the Corporation shall within two Trading Days
confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding.  In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the
Corporation, including the Preferred Stock, by such Holder or its Affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion
of Preferred Stock held by the applicable Holder. A Holder, upon not less than 61 days’ prior notice to the Corporation (which
notice may not be waived), may increase or decrease the Beneficial Ownership Limitation provisions of this Section 6(d) applicable
to its Series D Preferred Stock provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this
Series D Preferred Stock held by the Holder and the provisions of this Section 6(d) shall continue to apply. Any such increase
or decrease will not be effective until the 61st day after such notice is delivered to the Corporation and shall only apply to
such Holder and no other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
holder of Preferred Stock.

 

    	 

    	 

    

 

Section 7.         Certain
Adjustments.

 

a)           Stock
Dividends and Stock Splits. If the Corporation, at any time while this Preferred Stock is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any other Common
Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion
of, or payment of a dividend on, this Preferred Stock), (ii) subdivides outstanding shares of Common Stock into a larger number
of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number
of shares, or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the
Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding any treasury shares of the Corporation) 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 this Section
7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)          [RESERVED]

 

c)          Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 7(a) above, if at any time the Corporation grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder of 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 conversion of such Holder’s Preferred
Stock (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
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 the 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 the Beneficial Ownership Limitation).

 

    	 

    	 

    

 

d)          Pro
Rata Distributions. During such time as this Preferred Stock is outstanding, if the Corporation declares or makes any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by
way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a
“Distribution”), at any time after the issuance of this Preferred Stock, then, in each such case, the Holder
shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the
Holder had held the number of shares of Common Stock acquirable upon complete Conversion of this Preferred Stock (without regard
to any limitations on Conversion hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders
of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to
the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial
ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall
be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Beneficial Ownership Limitation).

 

    	 

    	 

    

 

e)          Fundamental
Transaction. If, at any time while this Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in one
or more related transactions effects any merger or consolidation of the Corporation with or into another Person, (ii) the Corporation,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Corporation or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Corporation, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more
than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase
agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion
of this Preferred Stock, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon
such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section
6(d) on the conversion of this Preferred Stock), the number of shares of Common Stock of the successor or acquiring corporation
or of the Corporation, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Preferred
Stock is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 6(d) on the
conversion of this Preferred Stock). For purposes of any such conversion, the determination of the Conversion 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 Corporation shall apportion the Conversion 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 conversion of this Preferred Stock
following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Corporation
or surviving entity in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and conditions
and issue to the Holders new preferred stock consistent with the foregoing provisions and evidencing the Holders’ right to
convert such preferred stock into Alternate Consideration. The Corporation shall cause any successor entity in a Fundamental Transaction
in which the Corporation is not the survivor (the “Successor Entity”) to assume in writing all of the obligations
of the Corporation under this Certificate of Designation in accordance with the provisions of this Section 7(e) pursuant to written
agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay)
prior to such Fundamental Transaction and shall, at the option of the holder of this Preferred Stock, deliver to the Holder in
exchange for this Preferred Stock a security of the Successor Entity evidenced by a written instrument substantially similar in
form and substance to this Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Preferred
Stock (without regard to any limitations on the conversion of this Preferred Stock) prior to such Fundamental Transaction, and
with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the
relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock,
such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this
Preferred Stock immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in
form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to,
and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of
Designation referring to the “Corporation” shall refer instead to the Successor Entity), and may exercise every right
and power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation with
the same effect as if such Successor Entity had been named as the Corporation herein.

 

    	 

    	 

    

 

f)            Calculations.
All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

 

g)           Notice
to the Holders.

 

i.            Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation
shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

 

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

 

    	 

    	 

    

 

Section 8.     Miscellaneous.

 

a)          Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight
courier service, addressed to the Corporation, at the address set forth above Attention: Thomas Higgins, facsimile number
(718) 890-1556, or such other facsimile number or address as the Corporation may specify for such purposes by notice to the Holders
delivered in accordance with this Section 9. Any and all notices or other communications or deliveries to be provided by the Corporation
hereunder shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number or address of such Holder appearing on the books of the Corporation, or if no
such facsimile number or address appears on the books of the Corporation, at the principal place of business of such Holder. Any
notice or other communication or deliveries hereunder 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 set forth in this Section prior to 5:30 p.m.
(New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number set forth in this Section on a day that is not a Trading Day or later than 5:30
p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

b)          Absolute
Obligation. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the
obligation of the Corporation, which is absolute and unconditional, to pay liquidated damages, accrued dividends and accrued interest,
as applicable, on the shares of Preferred Stock at the time, place, and rate, and in the coin or currency, herein prescribed.

 

    	 

    	 

    

 

c)          Lost
or Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock certificate shall be mutilated, lost, stolen
or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated
certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of
Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of
such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.

 

d)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation
shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to
the principles of conflict of laws thereof. Each Holder agrees that all legal proceedings concerning the interpretation, enforcement
and defense of any transactions contemplated by this Certificate of Designations shall be commenced in the state and federal courts
sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each Holder 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
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New
York Courts are improper or inconvenient venue for such proceeding. Each Holder hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such Holder at the address in effect for notices to it under this Certificate
of Designation 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 other manner permitted by applicable law.
Each Holder 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 Certificate of Designation or the transactions contemplated hereby. If
any Holder shall commence an action or proceeding to enforce any provisions of this Certificate of Designation, then the prevailing
Holder in such action or proceeding shall be reimbursed by the other Holder for its attorneys’ fees and other costs and expenses
incurred in the investigation, preparation and prosecution of such action or proceeding.

 

e)          Waiver.
Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall not operate as
or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate
of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to
any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party (or
any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of
Designation on any other occasion. Any waiver by the Corporation or a Holder must be in writing.

 

    	 

    	 

    

 

f)        Severability.
If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation
shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable
to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates
the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum
rate of interest permitted under applicable law.

 

g)       Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

h)       Headings.
The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and shall
not be deemed to limit or affect any of the provisions hereof.

 

i)        Status
of Converted or Redeemed Preferred Stock. If any shares of Preferred Stock shall be converted, redeemed or reacquired by the
Corporation, such shares shall resume the status of authorized but unissued shares of preferred stock and shall no longer be designated
as Series B Convertible Preferred Stock.

 

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

 

    	 

    	 

    

 

RESOLVED, FURTHER, that the Chairman, the president
or any vice-president, and the secretary or any assistant secretary, of the Corporation be and they hereby are authorized and directed
to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution
and the provisions of Delaware law.

 

IN WITNESS WHEREOF, the
undersigned have executed this Certificate on May 26, 2015.

 

	/s/ Thomas T. Higgins	 
	Name: 	Thomas T. Higgins	 
	Title: 	Senior Vice President, Chief Financial Officer and Treasurer	 

 

    	 

    	 

    

 

ANNEX A

 

NOTICE OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert Shares of Preferred Stock)

 

The undersigned hereby elects to convert the
number of shares of Series B Convertible Preferred Stock indicated below into shares of common stock, par value $0.0001 per share
(the “Common Stock”), of NeuroMetrix, Inc., a Delaware corporation (the “Corporation”), according
to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a Person other
than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such
certificates and opinions as may be required by the Corporation. No fee will be charged to the Holders for any conversion, except
for any such transfer taxes.

 

Conversion calculations:

 

	Date to Effect Conversion: _____________________________________________
	 
	Number of shares of Preferred Stock owned prior to Conversion: _______________
	 
	Number of shares of Preferred Stock to be Converted: ________________________
	 
	Stated Value of shares of Preferred Stock to be Converted: ____________________
	 
	Number of shares of Common Stock to be Issued: ___________________________
	 
	Applicable Conversion Price:____________________________________________
	 
	Number of shares of Preferred Stock subsequent to Conversion: ________________
	 
	Address for Delivery: ______________________
	or
	DWAC Instructions:
	Broker no: _________
	Account no: ___________

 

	 	[HOLDER]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:Exhibit 10.1 

 

REPURCHASE AND FORFEITURE AGREEMENT 

 

This REPURCHASE AND FORFEITURE AGREEMENT
(this “Agreement”) is made as of May 21, 2015, by and among (i) NeuroMetrix, Inc., a Delaware corporation (the
“Company”), (ii) the parties identified on Exhibit A hereto (the “Investors”).

 

WHEREAS, the Investors hold an aggregate
of 3,206.357 shares of the Company’s Series A-4 Preferred Stock in the amounts identified on Exhibit A (the “Preferred
Stock”);

 

WHEREAS, the Investors are also the holders
of certain warrants with an exercise price of $2.04 per share, which were issued pursuant to a Securities Purchase Agreement dated
as of June 24, 2014 (the “Warrants”) to purchase an aggregate of 3,921,569 shares of Common Stock of the Company,
par value $0.0001 per share (“Common Stock”), in the amounts identified on Exhibit A;

 

WHEREAS, the Company has filed a registration
statement on Form S-1 for the offer and sale of units consisting of Series B Preferred Stock and warrants to purchase Common Stock
of the Company (the “Offering”);

 

WHEREAS, the Investors have indicated
an interest in purchasing units in the Offering, provided that the Company repurchases certain shares of Preferred Stock in connection
with the closing of the Offering; and

 

WHEREAS, in connection with the closing
of the Offering, the Company desires to repurchase from the Investors, and the Investors desire to sell to the Company, the Preferred
Stock (the “Repurchased Shares”) for an aggregate agreed upon purchase price of $3,206,357 (the “Repurchase
Price”) and, in connection with such transaction, the Investors have agreed to forfeit an aggregate of 1,571,744 of the
Warrants identified on Exhibit A.

 

NOW, THEREFORE, in consideration of the
mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

		1.	Repurchase of the Preferred Stock and Forfeiture of Warrants.

(a) At the closing of the Offering, the
Company hereby agrees to repurchase from the Investors, and the Investors hereby agree to sell, transfer and assign to the Company,
free and clear of any and all Encumbrances (as defined below), the Repurchased Shares at a price per share equal to $1,000.00,
and for an aggregate purchase price equal to the Repurchase Price. In addition, the Company and the Investors hereby acknowledge
that, on the date hereof, the Investors have forfeited 1,571,744 Warrants identified on Exhibit A under the caption “Securities
Repurchased and Forfeited in the Transaction”, which shall be null and void upon the closing of the Offering. The repurchase
of the Preferred Stock and the related forfeiture of the 1,571,744 Warrants are collectively referred to herein as the “Transaction”.
The Transaction shall have no effect on the remaining Warrants or on any other securities of the Company held by the Investors,
which shall remain outstanding.

 

    	 

    	 

    

  

(b) On or prior to the Closing (as defined
below), each Investor hereby agrees to deliver to the Company:

 

(i) the certificate representing all of the Repurchased
Shares;

 

(ii) a duly executed stock assignment in the form attached
hereto as Exhibit B-1 and B-2, as applicable; and

 

(iii) certificate(s) representing 1,571,744 Warrants.
The Company will, as soon as practicable following the date hereof, reissue Warrants to the applicable Investor representing the
remainder of the shares of Common Stock underlying such Warrants.

 

(c) Upon payment of the Repurchase Price,
the Preferred Stock shall cease to be outstanding for any and all purposes, and the Investors shall no longer have any rights as
a holder of the Preferred Stock.

 

(d) The closing of the Transaction (the
“Closing”) shall take place at the offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., on the same
date and immediately following the closing of the Offering.

 

2.Representations and Warranties
of Investors. Each Investor hereby represents and warrants to the Company as follows:

 

(a) Ownership. All of the Repurchased
Shares and Warrants are owned of record and beneficially by each Investor, and each Investor has good and marketable title to the
Repurchased Shares, free and clear of any security interest, claims, liens, pledges, options, encumbrances, charges, agreements,
voting trusts, proxies or other arrangements or restrictions whatsoever (collectively, “Encumbrances”), except
for such legend and related transfer restrictions as are required under the Securities Act of 1933, as amended. As of the date
hereof, each Investor will deliver to the Company good and marketable title to the Repurchased Shares, free and clear of any Encumbrances.

 

(b) Legal Capacity. Each Investor
has full legal capacity to enter into and perform its obligations set forth in this Agreement. This Agreement, when executed and
delivered by each Investor, will constitute the valid and legally binding obligation of the Investor, enforceable in accordance
with its terms (except as enforceability may be limited by principles of public policy, applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights and remedies generally
or general principles of equity (regardless of whether considered and applied in a proceeding at law or in equity)).

 

(c) Conflicts. The execution, delivery
and performance of this Agreement by each Investor does not, and will not, conflict with or result in a breach of any agreement,
instrument, order, judgment, decree, law or governmental regulation to which Investor or the Repurchased Shares are subject.

 

(d) Acknowledgment. Each Investor
believes that it has received all the information it considers necessary or appropriate for deciding whether to sell the Preferred
Stock to the Company pursuant to this Agreement. Each Investor has not been induced to agree to and execute this Agreement by any
statement, act or representation of any kind or character by anyone, except as contained herein. Each Investor further represents
that such Investor has fully reviewed this Agreement and has full knowledge of its terms, and executes this Agreement of his or
her own choice and free will, after having received (or been given the opportunity to receive) the advice of his or her attorney(s).

 

    	 

    	 

    

 

		3.	Miscellaneous.

 

(a) All representations and warranties
contained herein or made in writing by any party in connection herewith will survive the execution and delivery of this Agreement
and the closing of the transactions contemplated hereby, regardless of any investigation made by the Company or on its behalf.

 

(b) This Agreement shall be governed by
and construed in accordance with the internal laws of the State of New York, without giving any effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of New York.

 

(c) This Agreement may be executed in
one or more counterparts (including signature pages by means of facsimile, emailed .pdf file or other similar form of electronic
transmission), all of which taken together shall constitute one and the same instrument.

 

(d) This Agreement contains the entire
agreement and understanding among the parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings, whether written or oral, relating to such subject matter in any way.

 

* * * * *

 

    	 

    	 

    

  

Signature Page to Repurchase and Forfeiture
Agreement 

 

IN WITNESS WHEREOF, the parties hereto
have executed this Repurchase Agreement on the date first written above.

	 	NEUROMETRIX, INC.
	 	 	 
	 	By:	 	/s/ Thomas T. Higgins
	 	Name: Thomas T. Higgins
	 	Title: Chief Financial Officer

 

	 	SABBY VOLATILITY WARRANT MASTER FUND, LTD.
	 	 
	 	By: 	/s/ Robert Grundstein
	 	Name:  Robert Grundstein 
	 	Title:  COO of Investment Manager

 

	 	SABBY HEALTHCARE VOLATILITY MASTER FUND, LTD.
	 	 
	 	By: 	/s/ Robert Grundstein
	 	Name: Robert Grundstein 
	 	Title:  COO of Investment Manager

 

    	 

    	 

    

 

Exhibit A

Investors

 

Securities Repurchased and Forfeited
in Transaction

 

	Holder	 	
        Series A-4 Preferred Stock

        (to be repurchased)
	 	
        Warrants to Purchase Common Stock

        (to be forfeited)

	Sabby Volatility Warrant Master Fund, Ltd.	 	996.943	 	
        488,698

        Exercise Price: $2.04

        Original Issue Date: 6/26/14

	Sabby Healthcare Volatility Master Fund, Ltd.	 	2,209.414	 	
        1,083,046

        Exercise Price: $2.04

        Original Issue Date: 6/26/14

	Total:	 	3,206.357	 	1,571,744

 

Securities to Remain Outstanding Following
Transaction

 

	Holder	 	
        Warrants to Purchase Common Stock

        (to remain outstanding)

	Sabby Volatility Warrant Master Fund, Ltd.	 	
        1,079,930

        Exercise Price: $2.04

        Original Issue Date: 6/26/14

	Sabby Healthcare Volatility Master Fund, Ltd.	 	
        1,269,895

        Exercise Price: $2.04

        Original Issue Date: 6/26/14

	Total:	 	2,349,825

 

    	 

    	 

    

 

Exhibit B-1 

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, Sabby Volatility Warrant
Master Fund, Ltd. (“Investor”) does hereby sell, assign and transfer unto NeuroMetrix, Inc., a Delaware corporation
(the “Company”), 996.943 shares of Series A-4 Preferred Stock, $0.001 par value per share, of the Company, standing
in the undersigned’s name on the books of the Company represented by Stock Certificate No(s) PA40001 provided herewith and
does hereby irrevocably constitute and appoint each officer of the Company (acting alone or with one or more other such officers)
as attorney-in-fact to transfer the said securities on the books of the Company with full power of substitution in the premises.

 

	 	Sabby Volatility Warrant Master Fund, Ltd.
	Dated: ____________, 2015	 
	 	 	 
	 	Name: 
	 	Title:

 

In Presence of

 

	 	 
	Witness	 

 

    	 

    	 

    

 

Exhibit B-2 

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, Sabby Healthcare Volatility
Master Fund, Ltd. (“Investor”) does hereby sell, assign and transfer unto NeuroMetrix, Inc., a Delaware corporation
(the “Company”), 2,209.414 shares of Series A-4 Preferred Stock, $0.001 par value per share, of the Company,
standing in the undersigned’s name on the books of the Company represented by Stock Certificate No(s) PA40001 provided herewith
and does hereby irrevocably constitute and appoint each officer of the Company (acting alone or with one or more other such officers)
as attorney-in-fact to transfer the said securities on the books of the Company with full power of substitution in the premises.

	 	Sabby Healthcare Volatility Master Fund, Ltd.
	Dated: ____________, 2015	 
		 	 
	 	Name: 
	 	Title:

 

In Presence of

 

	 	 
	Witness

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