Document:

SUBSCRIPTION
AGREEMENT

 

BY
AND BETWEEN

 

CARDAX,
INC.

 

AND

 

THE
PURCHASERS PARTY HERETO

 

DATED
AS OF __________, _______

 

    	 	 	 

    	 	 	 

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	ARTICLE
    I	DEFINITIONS	1
	1.1	Definitions	1
	 	 	 
	ARTICLE
    II	PURCHASE
    AND SALE	3
	2.1	Closing
    	3
	2.2	Deliveries
    	3
	2.3	Closing
    Conditions 	3
	 	 	 
	ARTICLE
    III	REPRESENTATIONS
    AND WARRANTIES 	4
	3.1	Representations
    and Warranties of the Company 	4
	3.2	Representations
    and Warranties of the Purchasers 	5
	 	 	 
	ARTICLE
    IV	OTHER
    AGREEMENTS OF THE PARTIES 	6
	4.1	Transfer
    Restrictions 	6
	4.2	Non-Public
    Information 	7
	4.3	Equal
    Treatment of Purchasers 	8
	4.4	Use
    of Proceeds 	8
	4.5	Form
    D; Blue Sky Filings 	8
	4.6	Replacement
    of Certificates 	8
	 	 	 
	ARTICLE
    V	MISCELLANEOUS
    	8
	5.1	Fees
    and Expenses 	8
	5.2	Entire
    Agreement 	8
	5.3	Notices
    	8
	5.4	Amendments;
    Waivers 	9
	5.5	Headings
    	9
	5.6	Successors
    and Assigns 	9
	5.7	Third-Party
    Beneficiaries 	9
	5.8	Governing
    Law; Exclusive Jurisdiction 	10
	5.9	Attorney
    Fees 	10
	5.10	Survival
    	10
	5.11	Counterparts
    and Execution 	10
	5.12	Severability
    	10
	5.13	Independent
    Nature of Purchasers’ Obligations and Rights 	10
	5.14	Saturdays,
    Sundays, Holidays, etc. 	11
	5.15	Construction
    	11
	5.16	WAIVER
    OF JURY TRIAL 	11

 

	Attachments:	 	 
	 	 	 
	Schedule
    A	Check
    and Wire Transfer Instructions	 
	Schedule
    B	Certain
    Additional Risk Factors	 
	Exhibit
    I	Form
    of Warrant	 

 

    	 	 	 

    	 	 	 

    

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) is dated as of the date set forth on the signature page hereof, by
and among Cardax, Inc., a Delaware corporation (the “Company”), and each Person that is a Purchaser under the
terms of this Agreement. Certain capitalized terms used in this Agreement are defined in Section 1.1.

 

WHEREAS,
the Company is a public company with its shares of common stock, par value $0.001 per share (“Common Stock”)
traded on the OTCQB under the symbol “CDXI”.

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act, and Rule
506 promulgated thereunder, the Company desires to sell to each Purchaser, and each Purchaser, severally and not jointly, desires
to purchase Units (each, a “Unit”), where each Unit has: (i) one share of Common Stock; and (ii) one warrant
(each, a “Warrant” and, collectively, the “Warrants”), each Warrant entitling the Purchaser
of a Unit to purchase one share of Common Stock at a price per share of $______, subject to certain adjustment as more fully described
in this Agreement in the form attached to this Agreement as Exhibit I.

 

WHEREAS,
the Company has conducted an offering of units of common stock and warrants as disclosed in the SEC Filings (as defined below).

 

WHEREAS,
this Agreement and the offering of the Units by the Company are part of an offering of an aggregate amount that is up to $________________
(or such greater amount as may be determined by the Company) and that in such offering there will be purchases and sales of units
that are similar to the Units purchased under this Agreement by the Purchaser on similar terms and conditions; provided, however,
the Company reserves the right to suspend or terminate any additional purchases and sales of such similar units and to change
the terms and conditions with respect to the offering of any such units or other securities by or on behalf of the Company;

 

WHEREAS,
the purchase price for each Unit (“Unit Price”) shall be $_____________.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, each of the Company and the Purchasers, intending to be legally bound
hereby, hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following
terms have the meanings set forth in this Section 1.1:

 

“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 under the Securities Act.

 

“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.

 

“Closing”
means the closing of the purchase and sale of the Units pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which the Purchasers purchase the Units under the terms of this Agreement, including
payment to the Company of the Purchase Price payable by each of the Purchasers.

 

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

 

“Common
Stock” shall have the meaning ascribed to such term in the recitals to this Agreement.

 

    	 	 	 

    	 	 	 

    

 

“Company
Counsel” means Herrick, Feinstein LLP, 2 Park Avenue, New York, NY 10016.

 

“Company
Sub” means Cardax Pharma, Inc., a Delaware corporation and a wholly owned subsidiary of the Company.

 

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

 

“Execution
Date Information” shall have the meaning ascribed to such term in Section 3.2(f).

 

“Offering”
means this offering of the Units.

 

“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.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Purchaser”
means a Person that is a party to this Agreement as a purchaser, or his, her or its successors and assigns.

 

“Securities”
means all Units, Common Stock, Warrants, and shares of the Company’s Common Stock, into which the Warrants are exercisable.

 

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

 

“Shares”
means newly issued shares of the Company’s Common Stock, issued or issuable to each Purchaser pursuant to the exercise of
the Warrant, which shares, when issued in accordance with the terms of such securities, shall be duly authorized, validly issued,
fully paid and non-assessable.

 

“Short
Sale” means any securities transaction in which a Person sells a number of shares or other units of a security that
are not owned by such Person at the time of such sale.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Units purchased hereunder which shall equal
the number of Units to be purchased by such Purchaser multiplied by the Unit Price in United States dollars, which amount shall
be paid by the Purchaser making a payment to the Company as provided in this Agreement.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company
formed or acquired after the date hereof.

 

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

 

“Trading
Market” means any of the following markets or exchanges on which the Company’s 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, OTCQB or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and all exhibits and schedules thereto and hereto and any other documents or agreements
executed in connection with the transactions contemplated hereunder.

 

    	 	 	 

    	 	 	 

    

 

ARTICLE
II

PURCHASE AND SALE

 

2.1
Closing.

 

(a)
The Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.

 

(b)
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company shall issue and sell to each of
the Purchasers, and each of the Purchasers, severally and not jointly, shall purchase, that number of Units that is set forth
on the signature page of such Purchaser to the extent accepted by the Company.

 

(c)
Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of
the Company or such other location as the Company may designate to the Purchaser.

 

2.2
Deliveries.

 

(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser accepted by the Company,
this Agreement duly executed by the Company.

 

(b)
On the date that this Agreement is executed and delivered by a Purchaser to the Company and the Company accepts the subscription
of such Purchaser (with such acceptance to be evidenced by the Company’s countersignature of the Purchaser’s signature
page hereinbelow), such Purchaser shall deliver or cause to be delivered to the Company:

 

(i)
a check or wire transfer of the Subscription Amount of such Purchaser in accordance with the check or wire transfer instructions
set forth on Schedule A to this Agreement; and

 

(ii)
a counterpart of this Agreement duly executed by such Purchaser.

 

(c)
On the Closing Date, the Company and each of the Purchasers shall close the purchase and sale of the Units and the Company shall
deliver or cause to be delivered to each Purchaser evidence of the issuance and delivery of the shares of Common Stock and Warrants
to be purchased by each Purchaser by appropriate instructions to the stock transfer agent of the Company.

 

2.3
Closing Conditions.

 

(a)
The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)
the accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless such representation is made as of a specific date therein in which case such representation and warranty shall be accurate
as of such date); and

 

(ii)
all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have
been performed.

 

(b)
The respective obligations of each of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:

 

(i)
The representations and warranties made by the Company in this Agreement shall be true and correct in all material respects (provided
that any such representations and warranties that are by their terms qualified by materiality shall (as so qualified) be true
in all respects) as of the date hereof and at and as of the time of the Closing as though such representations and warranties
were made at and as of such time (except in any case that representations and warranties that expressly speak as of a specified
date or time need only be true and correct (subject to the foregoing parenthetical as to materiality) as of such specified date
or time);

 

    	 	2	 

    	 	 	 

    

 

(ii)
The Company shall have performed and complied in all material respects with all covenants and agreements required by this Agreement
to be performed or complied with by it prior to or at the Closing;

 

(iii)
Without limiting item (ii) above, the Company shall have delivered to the Purchasers each of the items required to be delivered
by it pursuant to Section 2.2(c);

 

(iv)
No preliminary or permanent injunction or other order that declares this Agreement invalid or unenforceable in any respect or
that prevents the consummation of the transactions contemplated hereby shall be in effect; and

 

(v)
From the date hereof to the Closing Date, the Commission shall not have issued a stop trading order with respect to the Company’s
Common Stock.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1
Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to
each Purchaser as of the date hereof and as of the Closing Date (unless such representation is made as of a specific date therein
in which case such representation and warranty shall be accurate as of such date):

 

(a)
Organization and Qualification. Each of the Company and the Company Sub is an entity duly incorporated, validly existing
and in good standing under the laws of the jurisdiction of its incorporation, with the requisite power and authority to own and
use its properties and assets and to carry on its business as currently conducted.

 

(b)
Capitalization. The capitalization of the Company is properly reflected by the SEC Filings.

 

(c)
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
no registration under the Securities Act is required for the offer and sale of the Units to the Purchasers as contemplated hereby.
The issuance and sale of the Units hereunder does not contravene the rules and regulations of the Trading Market applicable to
the Company.

 

(d)
Disclosure.

 

(i)
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information within the meaning of the
Exchange Act.

 

(ii)
The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Section 3.2.

 

(e)
SEC Filings. The documents (“SEC Filings”) that have been filed by the Company with the Securities and
Exchange Commission do not (as amended and supplemented) contain a material misstatement of fact or does not omit to state any
material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made,
not misleading, as interpreted by the Exchange Act.

 

    	 	3	 

    	 	 	 

    

 

3.2
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents
and warrants, severally and not jointly, as of the date hereof and as of the Closing Date to the Company as follows (unless as
of a specific date therein):

 

(a)
Organization; Authority.

 

(i)
Such Purchaser is either an individual or an entity that is duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder.

 

(ii)
The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by
the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar
action, as applicable, on the part of such Purchaser.

 

(iii)
Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except: (A) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (B)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (C)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)
Own Account. Such Purchaser understands that each of the shares of Common Stock and the Warrants and the Shares are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring
the Units as principal for its own account and not with a view to or for distributing or reselling such Units (or the shares of
Common Stock or Warrants or Shares) or any part thereof in violation of the Securities Act or any applicable state securities
law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with any other person to distribute or regarding the
distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation
and warranty not limiting such Purchaser’s right to sell the Securities in compliance with applicable federal and state
securities laws). Such Purchaser is acquiring the Units hereunder in the ordinary course of its business or investment strategy.

 

(c)
Purchaser Status. At the time such Purchaser was offered the Units, it was, and as of the date hereof it is an “accredited
investor” as defined in Rule 501 under the Securities Act; or (ii) a Non U.S. Person within the meaning of Regulation S
under the Securities Act.

 

(d)
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the shares of Common Stock or Warrants (and the Shares), and has so evaluated the merits and risks of such investment. Such
Purchaser is able to bear the economic risk of an investment in the shares of Common Stock, the Warrants and Shares and, at the
present time, is able to afford a complete loss of such investment.

 

(e)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
shall not directly or indirectly, nor shall any Person acting on behalf of or pursuant to any understanding with such Purchaser,
execute any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of date
of this Agreement and the Closing Date. Notwithstanding the foregoing, the limitation set forth in this Section 3.2(e)
shall not be applicable to any investments of a Purchaser that are made or disposed of without the discretion of such Purchaser.
Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made
to it in connection with this transaction and shall use the information provided in this Agreement or any investment presentation
provided to such Purchaser only in consideration of making an investment in the Units.

 

    	 	4	 

    	 	 	 

    

 

(f)
Disclosure.

 

(i)
Each Purchaser acknowledges and agrees that the information provided and available to the Purchaser at the time that this Agreement
is executed and delivered (including, but not limited to the SEC Filings) (the “Execution Date Information”)
may not include all of the material information that would be provided to a purchaser of securities in an offering of securities
that is registered under the Securities Act and included in a prospectus that is required to be delivered in accordance with Section
5 of the Securities Act.

 

(ii)
Each Purchaser agrees that it has had an unrestricted opportunity to: (a) obtain additional information concerning the offering
of the Units, including without limitation, information concerning the Company and any other matters relating directly or indirectly
to the purchase of the Units by such Purchaser; and (b) ask questions of, and receive answers from, the executives of the Company
concerning the terms and conditions of this offering of Units and to obtain such additional information as may have been necessary
to verify the accuracy of the information contained in the investor presentation provided to the Purchaser or any other information
that may have been provided to the Purchaser.

 

(iii)
Each Purchaser acknowledges and agrees that no Person is authorized by the Company and no Person will be authorized by the Company
or any of its Affiliates to provide any information regarding the solicitation of investment interest or the offering of the Units
other than the information that is provided in the investor presentation provided by the Company and such other information or
documentation that is provided expressly by the Company to the Purchasers for such purposes.

 

(iv)
Each Purchaser and/or Purchaser’s advisor acknowledges that it has received and reviewed the SEC Filings, including the
summary of risks contained in the “Risk Factors” sections in such documents and Schedule B and certain matters
regarding the use of proceeds set forth in Section 4.4 and had access to or been furnished with sufficient facts and information
to evaluate an investment in the Company and a reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Company concerning the Company and all such questions have been answered to the full satisfaction
of the Purchaser.

 

(g)
Due diligence. Each Purchaser acknowledges and agrees that it has: (A) carefully reviewed the investor presentation; (B)
performed its own due diligence investigation and has been furnished with other materials that it considers relevant to the purchase
of the Units; and (C) is not relying upon, and has not relied upon, any statement, representation or warranty made by any person,
except for the statements, representations and warranties contained in this Agreement.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions.

 

(a)
The shares of Common Stock, the Warrants and Shares may only be disposed of in compliance with state and federal securities laws.
After the Final Closing Date, the Company agrees to take appropriate action to promptly prepare and file a registration statement
with the SEC to register the Shares under the Securities Act, it being acknowledged that there is no assurance that all of the
Shares will be included in a registration statement that is declared effective under the Securities Act. In connection with any
transfer of any of shares of Common Stock or Warrants or Shares other than pursuant to an effective registration statement or
Rule 144, to the Company or to an Affiliate of a Purchaser, the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred
shares of Common Stock or Warrants or Shares under the Securities Act.

 

    	 	5	 

    	 	 	 

    

 

(b)
Legend on Share Certificates. The Purchasers agree to the imprinting, so long as is required by this Section 4.1,
of a legend on any of the certificates representing the shares of Common Stock or Warrants or Shares in the following form:

 

THIS
SECURITY HAS NOT 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 CORPORATION. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(c)
The legends set forth in Section 4.1(b) shall, to the fullest extent permitted, be removed , (i) while a registration statement
covering the resale of such security is effective under the Securities Act, (ii) following any sale of such shares of Common Stock
or Warrants or Shares pursuant to Rule 144, (iii) if such shares of Common Stock or Warrants or Shares are eligible for sale under
Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule
144 as to such shares of Common Stock or Warrants or Shares and without volume or manner-of-sale restrictions, or (iv) if such
legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission).

 

(d)
Each Purchaser, severally and not jointly with the other Purchasers, agrees that such Purchaser will sell any shares of Common
Stock or Warrants or Shares only pursuant to either: (i) the registration requirements of the Securities Act, including any applicable
prospectus delivery requirements; or (ii) an exemption therefrom, and that if shares of Common Stock or Warrants or Shares are
sold pursuant to any such effective registration statement, they will be sold in compliance with the plan of distribution set
forth therein, and acknowledges that the removal of the restrictive legend from certificates representing shares of Common Stock
or Warrants or Shares as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

4.2
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide
any Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto such Purchaser, agent or counsel shall have entered into a written agreement with the Company regarding the
confidentiality and use of such information or such Person is otherwise obligated to maintain the confidentiality of such information
and not use such information in violation of applicable law. The Company understands and confirms that each Purchaser shall be
relying on the foregoing covenant in evaluating and providing any information it receives in connection with its consideration
of purchasing any of the Units.

 

    	 	6	 

    	 	 	 

    

 

4.3
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
is also offered to all of the Purchasers. For clarification purposes, this provision constitutes a separate right granted to each
Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers
as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Shares, the shares of the Company’s Common Stock issuable upon the exercise of the Warrants or
otherwise. The provisions of this Agreement do not, and in no manner shall be interpreted to, restrict the right, ability and
authority of the Company to sell any securities, including securities identical to, exchangeable for, convertible into, or similar
to, any of the securities offered and sold under this Agreement.

 

4.4
Use of Proceeds. The Company will use the proceeds of this Offering for its product development, commercialization, and
general corporate purposes.

 

4.5
Form D; Blue Sky Filings. The Company shall timely file a Form D with respect to the Units as required under Regulation
D, provide a copy thereof, promptly upon request of any Purchaser, and take such action as the Company shall reasonably determine
is necessary in order to obtain an exemption for, or to qualify the Units for, sale to the Purchasers at the Closing under applicable
securities or “Blue Sky” laws of the states of the United States, and provide evidence of such actions promptly upon
request of any Purchaser.

 

4.6
Replacement of Certificates. If any certificate or instrument evidencing any shares of Common Stock or Warrants or Shares
is mutilated, lost, stolen or destroyed, the Company shall cause the Company to, and the Company shall, issue or cause to be issued
in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor,
a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft
or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party
costs (including customary indemnity) associated with the issuance of such replacement shares of Common Stock or Warrants or Shares
and may be required to provide an indemnity in favor of the Company.

 

ARTICLE
V

MISCELLANEOUS

 

5.1
Fees and Expenses.

 

(a)
Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.

 

5.2
Entire Agreement. The Transaction Documents contain the entire understanding of the parties with respect to the subject
matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters,
which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3
Notices.

 

(a)
All notices (including any consent required of any party to this Agreement) given or permitted to be provided pursuant to this
Agreement shall be in writing and shall be mailed by certified mail, delivered by professional courier or hand, or transmitted
via email or facsimile, to such party’s address as set forth below:

 

	 	(i)	If
    such notice is to the Company, then to the Company at:
	 	 	 
	 	 	Cardax,
        Inc.

        2800
        Woodlawn Drive, Suite 129

        Honolulu,
        HI 96822

        Attention:
        David G. Watumull, President and CEO

        Email:
        dwatumull@cardaxpharma.com

        Fax:
        808-237-5901

         

        With
        a copy to (which copy shall not constitute notice):

         

        Herrick,
        Feinstein LLP

        2
        Park Avenue

        New
        York, NY 10016

        Attn:
        Richard M. Morris, Esq.

        Email:
        rmorris@herrick.com

        Fax:
        212-545-3371

 

    	 	7	 

    	 	 	 

    

 

(ii)
If such notice is to a Purchaser, then to the address of the Purchaser set forth on the signature page of such Purchaser to this
Agreement.

 

(b)
Change of Address. Any Purchaser may change the address that notices should be delivered to it by delivering a notice with
the corrected information to the Company. The Company may change the address that notices should be delivered to it by delivering
a notice with the corrected information to each Purchaser then a party to this Agreement. In each case, such corrected information
to be effective only upon delivery of such notice.

 

(c)
Deemed Delivery. Except as otherwise expressly provided in this Agreement, each such notice shall be effective on the date
three days after the date of mailing or, if delivered by hand or professional courier, or transmitted via email or facsimile with
delivery receipt (or acknowledgement or confirmation which may be by electronic means), on the date of delivery, provided, however,
that notices to the Company will be effective upon receipt.

 

5.4
Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except by means of
a written agreement signed, in the case of an amendment, by the Company and each of the Purchasers subject to such waiver, modification,
supplement or amendment. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

5.5
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect any of the provisions hereof.

 

5.6
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger); except that all rights and obligations of the Company under this Agreement shall
be assigned to, and assumed by, the Company effective on Closing Date, provided that no such assignment shall relieve the Company
of any of its obligations hereunder. Any Purchaser may assign any or all of its rights under this Agreement to any Person; provided
that such assignment is approved by the Company, which approval shall not be unreasonably withheld, delayed or conditioned and
such transferee agrees in writing to be bound by the provisions of the Transaction Documents that apply to the “Purchasers”
and such transferee is able and makes the representations and warranties to the Company provided under Section 3.2.

 

5.7
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

    	 	8	 

    	 	 	 

    

 

5.8
Governing Law; Exclusive Jurisdiction.

 

(a)
All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents 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.

 

(b)
Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York, Borough of Manhattan.

 

(c)
Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New
York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), 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 any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party
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 party at
the address in effect for notices to it under this Agreement 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 law.

 

5.9
Attorney Fees. If one or more parties shall commence an action, suit or proceeding to enforce any provision of the Transaction
Documents, then the prevailing party or parties in such action, suit or proceeding shall be reimbursed by the other party or parties
to such action, suit or proceeding for the reasonable attorneys’ fees and other costs and expenses incurred by the prevailing
party or parties with the investigation, preparation and prosecution of such action, suit or proceeding.

 

5.10
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Units for
the applicable statute of limitations.

 

5.11
Counterparts and Execution. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by email delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page was an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereof or thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary
for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented,
or has had the opportunity to be represented, by its own separate legal counsel in its review and negotiation of the Transaction
Documents.

 

    	 	9	 

    	 	 	 

    

 

5.14
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.15
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto.

 

5.16
WAIVER OF JURY TRIAL.

 

EACH
PARTY TO THIS AGREEMENT HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY EACH PARTY TO THIS AGREEMENT AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO
A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EITHER PARTY TO THIS AGREEMENT IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN
ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 

    	 	10	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the undersigned have caused this Subscription Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	Cardax,
    inc.	 
	 	 	 
	By:	 	 
	Name:	David
    G. Watumull	 
	Title:	President
    and CEO	 

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 

    	 	11	 

    	 	 	 

    

 

PURCHASER
SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

IN
WITNESS WHEREOF, the undersigned have caused this Subscription Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

Name
of Purchaser: _________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: __________________________________

 

Name
of Authorized Signatory: ________________________________________________

 

Title
of Authorized Signatory: _________________________________________________

 

Email
Address of Authorized Signatory: _________________________________________

 

Facsimile
Number of Authorized Signatory: ______________________________________

 

Address
for Notice to Purchaser: _____________________________________________

 

_________________________________________________________________________________________

 

_________________________________________________________________________________________

 

Address
for Delivery of Units to Purchaser (if not same as address for notice):

 

Subscription
Amount: $_________________(U.S.)

 

Number
of Units: _________________

 

Social
Security or EIN Number: _______________________

 

Bank
or Brokerage Account Information:

 

[Each
Purchaser shall also deliver the applicable tax forms such as the Form W-9 and a certificate that they are an accredited investor,
unless waived by the Company] 

 

Accepted
by the Company for ___________ Units:

 

	CARDAX,
    INC.	Date:	 
	 	 	 	 
	By:	 	 	 
	Name:	David
    G. Watumull	 	 
	Title:	President
    and CEO	 	 

 

    	 	12	 

    	 	 	 

    

 

SCHEDULE
A

 

Check
and Wire Transfer Instructions

 

Checks
shall be made payable to the order of

 

Cardax
Pharma, Inc.

 

Wire
Transfers shall be made in accordance with the following:

 

	 	●	Bank
    Name: Bank of Hawaii
	 	●	SWIFT
    Code: 
	 	●	Routing
    #: 
	 	●	Account
    #: 
	 	●	Account
    Name: Cardax Pharma, Inc.

 

In
addition, the name of each Purchaser shall be provided with each payment.

 

    	 	13	 

    	 	 	 

    

 

SCHEDULE
B

 

Certain
Additional Risk Factors

 

In
addition to the risk factors that are summarized in the Company’s SEC Filings, you should consider the following:

 

An
investment in our Common Stock, and Warrants involves a high degree of risk. You should carefully consider the risks summarized
in the Company’s SEC Filings, together with all of the other information provided to you in this Offering, before making
an investment decision. If any of the following risks actually occur, our business, financial condition or results of operations
could suffer. In that case, the trading price of our shares of Common Stock could decline, and you may lose all or part of your
investment. You should read the section entitled “Forward-Looking Statements” included in our SEC Filings for a discussion
of what types of statements are forward-looking statements, as well as the significance of such statements.

 

The
terms of the Offering, the price for the shares of Common Stock and Warrants, including the exercise price, were not independently
valued and may not be indicative of the future price of our Common Stock. 

 

Our
board of directors determined the terms and conditions of the Offering, including the price per share for each Unit of Common
Stock and the Warrant. The price per Unit and the exercise price were not necessarily determined to be equal to the market price
of the Company’s Common Stock on the OTCQB or the fair value of the Company. If you purchase Units in the Offering, you
may not be able to sell any of the securities at or above the subscription price. The trading price of the Company’s Common
Stock will be determined by the marketplace, and will be influenced by many factors outside of the Company’s control, including
consumer acceptance of the Company’s astaxanthin consumer health products, prevailing interest rates, investor perceptions,
securities analyst research reports and general industry, geopolitical and economic conditions. Publicly traded stocks, including
stocks of pharmaceutical and nutraceutical companies, often experience substantial market price volatility. These market fluctuations
might not be related to the operating performance of particular companies whose shares are traded. Accordingly, we cannot assure
you that if you purchase Units in the Offering you will later be able to sell those Units at or above the subscription price.

 

The
Securities are “Restricted Securities” under the Securities Act and there is no assurance that they will be registered.

 

The
Units sold in this Offering and the Common Stock issuable upon exercise of the Warrants will be restricted securities under United
States federal and applicable state securities laws. The Common Stock will be restricted securities unless and until the shares
of Common Stock are registered. Restricted securities may not be transferred, sold or otherwise disposed of in the United States,
except as permitted under United States federal and state securities laws, pursuant to registration or an exemption therefrom.
You should be prepared to hold the Securities sold and the Common Stock issuable upon the exercise of the Warrants for an indefinite
period.

 

None
of the Shares of Common Stock issued in the Offering or upon the exercise of the Warrants may be sold unless, at the time of such
intended sale, there is a current registration statement covering the resale of the securities or there exists an exemption from
registration under the Securities Act, and such securities have been registered, qualified, or deemed to be exempt under applicable
securities or “blue sky” laws in the state of residence of the seller or in the state where sales are being affected.

 

If
there is not an effective registration statement covering the resale of the Shares, Purchasers will be precluded from disposing
of such Shares unless such Shares may become eligible to be disposed of under the exemptions provided by Rule 144 under the Securities
Act without restriction. If the Shares are not registered for resale under the Securities Act, or exempt therefrom, and registered
or qualified under applicable securities or “blue sky” laws, or deemed exempt therefrom, the value of the Securities
will be greatly reduced.

 

    	 	14	 

    	 	 	 

    

 

Purchasers
will be relying on management’s judgment regarding the use of proceeds from this Offering and we may apply the proceeds
to uses that may not increase the value of your investment or improve our operating results.

 

We
expect to use the proceeds of this Offering to further develop our technology or utilize other technology, begin focused and targeted
marketing efforts, and for general working capital purposes. Our management will have broad discretion with respect to the use
of the net proceeds from this Offering and Purchasers will be relying on the judgment of our management regarding the application
of these proceeds. We cannot assure you that the net proceeds will be used for purposes that ultimately increase our results of
operations, business prospects or the value of your investment.

 

An
investment in the Company is speculative and there can be no assurance of any return on any such investment.

 

An
investment in the company is speculative and there is no assurance that Purchasers will obtain any return on their investment.
Purchasers will be subject to substantial risks involved in an investment in the Company, including the risk of losing their entire
investment.

 

Insufficient
Capital

 

There
can be no assurance or guarantee that the Company will raise sufficient capital, through this Offering, to meet the Company’s
business objectives. The audited financial statements include a going concern qualification and the Company has significant liquidity
issues. There can be no assurance that other obligations that are necessary for the Company will not be incurred or that the budgeted
expenditures will not be subject to any material increase.

 

*****

 

    	 	15	 

    	 	 	 

    

 

EXHIBIT
I

 

Form
of Warrant

 

WARRANT
NUMBER 

G
_______________

 

CARDAX,
INC.

 

WARRANT
TO PURCHASE SHARES OF COMMON STOCK

 

NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON ITS EXERCISE HAVE BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR
SALE, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
SECURITIES UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

THIS
CERTIFIES THAT, for value received, ________________________________ (together with its successors and assigns, the “Holder”),
commencing _____________ (the “Date of Issue”) is entitled to purchase, subject to the conditions set
forth below, at any time and from time to time, in whole or in part, during the Exercise Period (as defined in Section 1.3),
that number of fully paid and non-assessable shares (the “Shares”) of common stock, par value $0.001
per share (“Common Stock”), of Cardax, Inc., a Delaware corporation (the “Company”),
that is not more than the Warrant Share Number (as defined in Section 1.1), subject to the further provisions of this warrant
to purchase newly issued shares of Common Stock (the “Warrant”), at the Warrant Exercise Price (as defined
in Section 1.2), subject to the further provisions of this Warrant.

 

1.
EXERCISE OF WARRANT

 

The
terms and conditions upon which this Warrant may be exercised, and the shares of Common Stock covered hereby which may be purchased
hereunder, are as follows:

 

1.1.
Warrant.

 

(a)
The Company hereby issues to the Holder this Warrant.

 

(b)
The number of Shares that the Holder is entitled to purchase under the terms and conditions of this Warrant (the “Warrant
Share Number”) is equal to ___________ Shares.

 

(c)
For the purposes of this Agreement, the following terms shall have the respective meanings ascribed thereto in this Section
1.1(c):

 

(i)
“Affiliate” shall have the meaning ascribed to such term under the Securities Act and the regulations
promulgated thereunder.

 

    	 	16	 

    	 	 	 

    

 

(ii)
“Business Day” shall mean any date that the banks and the securities markets are in New York, New York
open for business for the conduct of business in the regular course on such date.

 

(iii)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(iv)
“Person” shall mean any individual, trust or entity or governmental authority or agency.

 

1.2.
The Warrant Exercise Price. The exercise price for the Warrant (the “Warrant Exercise Price”)
shall be equal, per share, to $______, subject to adjustment as provided in Section 4:

 

1.3.
Method of Exercise.

 

(a)
The Holder of this Warrant may exercise, in whole or in part, the purchase rights evidenced by this Warrant during the period
commencing on the Date of Issue of this Warrant and ending on _____________, unless extended by the Company in its sole discretion
(the “Exercise Period”). Such exercise shall be effected by:

 

(i)
the surrender of the Warrant, together with a duly executed copy of the form of subscription attached hereto (a “Notice
of Exercise”), to the Secretary of the Company at its principal offices;

 

(ii)
the payment to the Company, by certified check or bank draft payable to its order, of an amount equal to the aggregate Warrant
Exercise Price for the number of Shares for which the purchase rights hereunder are being exercised; and

 

(iii)
the delivery to the Company, if necessary, to assure compliance with federal and state securities laws, of an instrument executed
by the Holder certifying that the Shares are being acquired for the sole account of the Holder and not with a view to any resale
or distribution.

 

(b)
Conditions to Exercise of the Warrant.

 

(i)
Notwithstanding the provisions of any provision of this Warrant, including Section 1.3, the exercise of this Warrant is
contingent upon the Company’s satisfaction that the issuance of the Shares for which this Warrant is being exercised is
exempt from the requirements of the Securities Act and all applicable state securities laws or the Shares are duly registered
under the Securities Act. The Holder of this Warrant agrees to execute any and all documents deemed necessary by the Company to
effect the exercise of this Warrant.

 

(ii)
Notwithstanding anything to the contrary contained herein, the number of Shares 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 (the “Beneficial Ownership”, does not exceed 4.99% 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)
(the “Maximum Percentage”). For the avoidance of doubt, except as otherwise provided herein in connection
with a transaction described in Section 4.3 (a “Fundamental Transaction”), this Warrant may not be exercised
in whole or in part if the Holder’s Beneficial Ownership (as calculated herein) exceeds the Maximum Percentage prior to
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. 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 of this Warrant or under any other provision
of Section 4. This restriction may not be waived except by the Holder providing a notice to the Company as provided herein.
For any reason at any time, upon the written or oral request of the Holder, the Company shall promptly confirm in writing (which
may be by electronic mail) to the Holder the number of shares of Common Stock then outstanding. To the extent that the limitation
contained in this Section 1.3(b)(ii) applies, the determination of whether this Warrant is exercisable (in relation to
other securities owned by such Holder together with any Affiliates) and of which a portion of this Warrant is exercisable shall
be in the sole discretion of a Holder, and the submission of a Notice of Exercise shall be deemed to be each Holder’s determination
of whether this Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates) and
of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination other than its obligation in this Section
1.3(b)(ii) above to, upon the Holder’s request, confirm in writing to the Holder the number of shares of Common Stock
then outstanding. Notwithstanding any provision of this Section 1.3(b)(ii) to the contrary, the limitations on the exercise
of this Warrant under this Section 1.3(b)(ii) shall not be applicable from and after the date that is 61 days after the
date that the Holder provides written notice to the Company that the Holder elects to have Beneficial Ownership of the Company’s
Common Stock in excess of the Maximum Percentage, in which case such Holder shall have the right to exercise this Warrant without
the limitations of this Section 1.3(b)(ii); provided, that the limitations of this Section 1.3(b)(ii) shall
again be applicable to any assignee of this Warrant until 61 days after such assignee provides such notice to the Company.

 

    	 	17	 

    	 	 	 

    

 

1.4.
Issuance of Shares. In the event the purchase rights evidenced by this Warrant are exercised in whole or in part, one or
more certificates for the purchased Shares shall be issued as soon as practicable thereafter to the Holder.

 

1.5.
Partial Exercise. If this Warrant shall have been exercised only in part, then the Company shall, at the time of delivery
of the certificate or certificates for the Shares purchased upon such exercise, also deliver to the Holder a new Warrant evidencing
the remaining outstanding unexercised balance of Shares purchasable hereunder.

 

1.6.
Cancellation. Notwithstanding anything in this Warrant to the contrary, this Warrant shall be cancelled, and shall not
be exercisable, if it is not exercised before the expiration of the Exercise Period.

 

2.
TRANSFER RESTRICTIONS

 

2.1.
Transfer. This Warrant and the Shares issuable upon exercise hereof are “restricted securities” as such term
is defined by the rules and regulations promulgated under the Securities Act. This Warrant and the Shares issuable upon exercise
hereof may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of this Warrant
or the Shares issuable upon exercise hereof, other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Holder, the Company may require the transferor to provide to the Company an opinion of counsel selected
by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of the transferred Warrant or Shares under the
Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Warrant
and the Agreement and shall have the rights and obligations of a Holder under this Warrant and the Agreement.

 

2.2.
Legend.

 

(a)
The Holder agrees to the imprinting of a legend on any of the Shares issuable upon exercise hereof in the following form:

 

THIS
SECURITY HAS NOT 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 CORPORATION. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

    	 	18	 

    	 	 	 

    

 

(b)
Notwithstanding the foregoing, certificates evidencing this Warrant or the Shares issuable upon exercise hereof shall not contain
any legend (including the legend set forth above), (i) while a registration statement covering the resale of such security is
effective under the Securities Act, (ii) following any sale of this Warrant or such Shares issuable upon exercise hereof pursuant
to Rule 144, (iii) if this Warrant or such Shares issuable upon exercise hereof are eligible for sale under Rule 144, without
the requirement for the Company to be in compliance with the current public information required under Rule 144 as to this Warrant
or such Shares issuable upon exercise hereof and without volume or manner-of-sale restrictions, or (iv) if such legend is not
required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by
the staff of the Commission).

 

2.3.
Sale. The Holder agrees that the Holder will sell this Warrant or any Shares issuable upon exercise hereof only pursuant
to either: (i) the registration requirements of the Securities Act, including any applicable prospectus delivery requirements;
or (ii) an exemption therefrom, and that if this Warrant or any Shares issuable upon exercise hereof are sold pursuant to any
such effective registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing the Shares or this Warrant is predicated upon the Company’s
reliance upon this understanding.

 

3.
Fractional Shares

 

Notwithstanding
that the number of Shares purchasable upon the exercise of this Warrant may have been adjusted pursuant to the terms hereof, the
Company shall nonetheless not be required to issue fractions of Shares upon exercise of this Warrant or to distribute certificates
that evidence fractional shares, provided that in lieu of any fraction shares, the Company shall make a cash payment to the Holder
in an amount equal to the fair market value (as determined by the Board of Directors of the Company in its reasonable good faith)
of such fractional share.

 

4.
ANTIDILUTION PROVISIONS

 

4.1.
Stock Splits and Combinations. If the Company shall at any time subdivide or combine its outstanding shares of Common Stock,
this Warrant shall, after that subdivision or combination, evidence the right to purchase the number of shares of Common Stock
that would have been issuable as a result of that change with respect to the shares of Common Stock which were purchasable under
this Warrant immediately before that subdivision or combination. If the Company shall at any time subdivide the outstanding shares
of Common Stock, the Warrant Exercise Price then in effect immediately before that subdivision shall be proportionately decreased,
and, if the Company shall at any time combine the outstanding shares of Common Stock, the Warrant Exercise Price then in effect
immediately before that combination shall be proportionately increased. Any adjustment under this section shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

4.2.
Reclassification, Exchange and Substitution. If the Common Stock issuable upon exercise of this Warrant shall be changed
into the same or a different number of shares of any other class or classes of stock, whether by capital reorganization, reclassification,
or otherwise (other than a subdivision or combination of shares provided for above), the Holder of this Warrant shall, on its
exercise, be entitled to purchase for the same aggregate consideration, in lieu of the Common Stock that the Holder would have
been entitled to purchase but for such change, a number of shares of such other class or classes of stock equivalent to the number
of shares of Common Stock that would have been subject to purchase by the Holder on exercise of this Warrant immediately before
that change.

 

    	 	19	 

    	 	 	 

    

 

4.3.
Reorganizations, Mergers, Consolidations or Sale of Assets. If at any time there shall be a capital reorganization of the
Company’s Common Stock (other than a combination, reclassification, exchange, or subdivision of shares provided for elsewhere
above) or merger or consolidation of the Company with or into another entity, or the sale of the Company’s properties and
assets as, or substantially as, an entirety to any other person or entity, then, as a part of such reorganization, merger, consolidation
or sale, lawful provision shall be made so that the Holder of this Warrant shall thereafter be entitled to receive upon exercise
of this Warrant, during the period specified in this Warrant and upon payment of the Warrant Exercise Price then in effect, the
number of shares of Common Stock or other securities or property of the Company, or of the successor entity resulting from such
merger or consolidation, to which a holder of the Common Stock deliverable upon exercise of this Warrant would have been entitled
in such capital reorganization, merger, or consolidation or sale if this Warrant had been exercised immediately before that capital
reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment (as determined in good faith by the Company’s
Board of Directors) shall be made in the application of the provisions of this Warrant with respect to the rights and interests
of the Holder of this Warrant after the reorganization, merger, consolidation, or sale to the end that the provisions of this
Warrant (including adjustment of the Warrant Exercise Price then in effect and number of Shares purchasable upon exercise of this
Warrant) shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable
after that event upon exercise of this Warrant. The Company shall, within thirty (30) days after making such adjustment, give
written notice (by first class mail, postage prepaid) to the Holder of this Warrant at the address of the Holder shown on the
Company’s books. That notice shall set forth, in reasonable detail, the event requiring the adjustment and the method by
which the adjustment was calculated, and specify the Warrant Exercise Price then in effect after the adjustment and the increased
or decreased number of Shares or the other shares or property purchasable upon exercise of this Warrant. When appropriate, that
notice may be given in advance and include as part of the notice required under other provisions of this Warrant.

 

5.
Reservation of Stock Issuable Upon Exercise

 

The
Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock solely for the
purpose of effecting the exercise of this Warrant such number of its shares of Common Stock as shall from time to time be sufficient
to effect the exercise of this Warrant and if at any time the number of authorized but unissued shares of Common Stock shall not
be sufficient to effect the exercise of this Warrant, in addition to such other remedies as shall be available to the Holder of
this Warrant, the Company will use its best efforts to take such corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but un-issued shares of Common Stock to such number of shares as shall be sufficient for such purposes.

 

6.
RIGHTS PRIOR TO EXERCISE OF WARRANT

 

6.1.
This Warrant does not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation, the
right to receive dividends or other distributions, to exercise any preemptive rights, to vote, or to consent or to receive notice
as a stockholder of the Company. If, however, at any time prior to the termination of this Warrant and prior to its exercise,
any of the following events shall occur:

 

(a)
the Company shall declare any dividend payable in any securities upon its shares of Common Stock or make any distribution (other
than a regular cash dividend) to the Holders of its shares of Common Stock; or

 

(b)
the Company shall offer to the holders of its shares of Common Stock any additional Warrant of Common Stock or securities convertible
into or exchangeable for shares of Common Stock or any right to subscribe for or purchase any thereof; or

 

(c)
a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation, merger, sale, transfer
or lease of all or substantially all of its property, assets and business as an entirety) shall be proposed and action by the
Company with respect thereto has been approved by the Company’s Board of Directors;

 

then
in any one or more of said events the Company shall give notice in writing of such event to the Holder at the last address of
the Holder as it shall appear on the Company’s records at least twenty (20) days prior to the date fixed as a record date
or the date of closing the transfer books for the determination of the stockholders entitled to such dividends, distribution,
or subscription rights, or for the determination of stockholders entitled to vote on such proposed dissolution, liquidation or
winding up. Such notice shall specify such record date or the date of closing the transfer books, as the case may be. Failure
to publish, mail or receive such notice or any defect therein or in the publication or mailing thereof shall not affect the validity
of any action taken in connection with such dividend, distribution or subscription rights, or such proposed dissolution, liquidation
or winding up. Each person in whose name any certificate for shares of Common Stock is to be issued shall for all purposes be
deemed to have become the holder of record of such shares on the date on which this instrument was surrendered and payment of
the Warrant Exercise Price was made, irrespective of the date of delivery of such stock certificate, except that, if the date
of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to
have become the holder of such shares of Common Stock at the close of business on the next succeeding date on which the stock
transfer books are open.

 

    	 	20	 

    	 	 	 

    

 

7.
SUCCESSORS AND ASSIGNS

 

The
terms and provisions of this Warrant shall inure to the benefit of, and be binding upon, the Company and the Holder hereof and
their respective successors and permitted assigns.

 

8.
LOSS OR MUTILATION

 

8.1.
Upon receipt by the Company of satisfactory evidence of the ownership of and the loss, theft, destruction, or mutilation of any
Warrant, and (i) in the case of loss, theft, or destruction, upon receipt by the Company of indemnity satisfactory to it, or (ii)
in the case of mutilation, upon receipt of such Warrant and upon surrender and cancellation of such Warrant, the Company shall
execute and deliver in lieu thereof a new Warrant representing the right to purchase an equal number of shares of Common Stock.

 

8.2.
The Holder also acknowledges that each of the Shares issuable upon the due exercise hereof will be subject to any transfer restrictions
in the Company’s Articles of Incorporation, including a right of first refusal to the Company, and the certificate or certificates
evidencing the Shares will bear a legend to this effect.

 

9.
TERMINATION DATE

 

This
Warrant shall terminate upon the sooner of (a) the expiration of the Exercise Period; or (b) the exercise of all or any portion
of this Warrant pursuant to the terms of Section 1 hereof.

 

10.
GOVERNING LAW

 

This
Warrant and any dispute, disagreement or issue of construction or interpretation arising hereunder whether relating to its execution,
its validity, the obligations provided herein or performance shall be governed or interpreted according to the internal laws of
the State of New York without regard to conflicts of law.

 

11.
HEADINGS

 

The
headings and captions used in this Warrant are used only for convenience and are not to be considered in construing or interpreting
this Warrant. All references in this Warrant to sections and exhibits shall, unless otherwise provided, refer to sections hereof
and exhibits attached hereto, all of which exhibits are incorporated herein by this reference.

 

12.
AMENDMENTS

 

The
terms and conditions of this Warrant shall not be amended, modified or supplemented other than in accordance with a written amendment
signed by the Holder and the Company that specifically provides for such amendment, modification or supplement.

 

    	 	21	 

    	 	 	 

    

 

13.
NOTICES

 

All
notices or other communications given or made hereunder shall be in writing and shall be mailed by certified mail, delivered by
professional courier or hand, or transmitted via email or facsimile, to such party’s address as set forth in the Warrant
Register, or such other address as the Holder or the Company shall notify the other in writing as above provided. Any notice sent
in accordance with this section shall be effective on the date three days after the date of mailing or, if delivered by hand or
professional courier, or transmitted via email or facsimile with delivery receipt (or acknowledgement or confirmation which may
be by electronic means), on the date of delivery, provided, however, that notices to the Company will be effective upon receipt.

 

14.
SEVERABILITY

 

If
one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision(s) shall be excluded
from this Warrant and the balance of this Warrant shall be interpreted as if such provision(s) were so excluded and shall be enforceable
in accordance with its terms.

 

15.
WARRANT REGISTER and OWNERSHIP

 

Each
Warrant issued by the Company shall be numbered and shall be registered in a warrant register (the “Warrant Register”)
as it is issued and transferred, which Warrant Register shall be maintained by the Company at its principal office or, at the
Company’s election and expense, by a Warrant Agent or the Company’s transfer agent. The Company shall be entitled
to treat the registered Holder of any Warrant on the Warrant Register as the owner in fact thereof and the Holder for all purposes
and shall not be bound to recognize any equitable or other claim to or interest in such Warrant on the part of any other Person,
and shall not be affected by any notice to the contrary, except that, if and when any Warrant is properly assigned in blank, the
Company may (but shall not be obligated to) treat the bearer thereof as the owner of such Warrant for all purposes. Subject to
Section 10, a Warrant, if properly assigned, may be exercised by a new holder without a new Warrant first having been issued.

 

16.
certain other provisions

 

16.1.
Any reference to an action or event to occur on a specified date that is not a Business Day shall be a reference to the immediately
following Business Day.

 

16.2.
Any calculations of the number of Shares to be issued upon the exercise of this Warrant, in whole or in part, shall be made by
the Company and, absent manifest error, such calculation shall be conclusive and binding.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 

    	 	22	 

    	 	 	 

    

 

In
Witness Whereof, the parties have executed
this Warrant as of the date first written above.

 

	 	COMPANY
	 	 
	 	CARDAX,
    INC.
	 	By:	 
	 	Name:	David
    G. Watumull
	 	Title:	President
    and CEO

 

TRANSFER
AGENT AND REGISTRAR

 

VSTOCK
TRANSFER, LLC

 

	By:	 	 
	 	Authorized
    Signature	 

 

    	 	23	 

    	 	 	 

    

 

NOTICE
OF WARRANT EXERCISE

 

To:
Cardax, Inc.

2800
Woodlawn Drive, Suite 129

Honolulu,
HI 96822

 

Gentlemen:

 

The
undersigned, __________ , hereby elects to purchase, pursuant to the provisions of the foregoing Warrant held by the undersigned,
__________shares of the common stock (“Common Stock”) of Cardax, Inc. Payment of the purchase price
of __________ per Share required under such Warrant accompanies this notice.

 

The
undersigned hereby represents and warrants that the undersigned is acquiring such Common Stock for the account of the undersigned
and not for resale or with a view to distribution of such Common Stock or any part hereof; that the undersigned is fully aware
of the transfer restrictions affecting restricted securities under the pertinent securities laws and the undersigned understands
that the shares purchased hereby are restricted securities and that the certificate or certificates evidencing the same will bear
a legend to that effect.

 

By
its delivery of this Notice of Warrant Exercise, the undersigned represents and warrants to the Company that (unless indicated
below) 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 1.3(b)(ii) of this Warrant to which this notice relates.

 

If
the number of shares of Common Stock purchased (and/or canceled) hereby is less than the number of shares of Common Stock covered
by the Warrant, the undersigned requests that a new Warrant representing the number of shares of Common Stock not so purchased
(or canceled) be issued and delivered as follows:

 

	ISSUE
    TO:	 	 	 
	 	 	(NAME
    OF HOLDER)	 
	 	 	 	 
	 	 	 	 
	 	 	(ADDRESS,
    INCLUDING ZIP CODE)	 
	 	 	 	 
	 	 	 	 
	 	 	(SOCIAL
    SECURITY OR OTHER IDENTIFYING NUMBER)	 
	 	 	 	 
	DELIVER
    TO:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	(NAME)	 
	 	 	 	 
	 	 	 	 
	 	 	(ADDRESS,
    INCLUDING ZIP CODE)	 

 

    	 	24	 

    	 	 	 

    

 

NOTICE
OF WARRANT EXERCISE

 

DATED:_______
, ____.

 

	Signature:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 

 

    	 	25	 

    	 	 	 

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do
not use this form to exercise the warrant.)

 

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

_______________________________________________
whose address is

_______________________________________________________________

_______________________________________________________________

 

Dated:
______________, _______

 

	 	Holder’s
    Signature:	 	 
	 	 	 	 
	 	Holder’s
    Address:	 	 

 

Signature
Guaranteed: ___________________________________________

 

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

 

    	 	26Exhibit
10.1

 

NEITHER
THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. BY ACQUIRING THIS WARRANT, HOLDER AGREES TO NOT SELL OR OTHERWISE
DISPOSE OF THIS WARRANT OR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT WITHOUT REGISTRATION OR THE APPLICABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER THE AFORESAID ACTS, AND THE RULES AND REGULATIONS THEREUNDER.

 

WARRANT
TO PURCHASE COMMON STOCK

 

Number
of Shares of Common Stock: 5,882,352 (subject to adjustment as provided herein) Date of Issuance: August 10, 2017 (“Issuance
Date”)

 

This
Certifies That, for value received, Slipstream
Communications, LLC (including any permitted and registered assigns, the “Holder”), is entitled to purchase
from Creative Realities, Inc., a Minnesota corporation (the “Company”), up to 5,882,352 shares of Common Stock
of the Company (the “Warrant Shares”) at the Exercise Price hereunder then in effect. This Warrant to Purchase
Common Stock (this “Warrant”) is issued by the Company in connection with the Company’s offer and sale
to the Holder of a Secured Term Promissory Note pursuant to the terms and conditions of a Loan and Security Agreement by and among
the Company, certain of its subsidiaries, and Slipstream Communications, LLC, dated of even date herewith (the “Loan
and Security Agreement,” and the note sold thereunder, the “Note”). For purposes of this Warrant,
the term “Exercise Price” shall mean $0.28 per share, subject to adjustment as provided herein, and the term
“Exercise Period” shall mean the period commencing on the Issuance Date and ending on 5:00 p.m. New York time
on the five-year anniversary of the date of this Warrant.

 

1. EXERCISE
OF WARRANT.

 

(a) Mechanics
of Exercise. Subject to the terms and conditions hereof, including but not limited to the provisions of Section 1(c) below,
the rights represented by this Warrant may be exercised in whole or in part at any time or times during the Exercise Period by
delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s
election to exercise this Warrant. The Holder shall not be required to deliver the original Warrant in order to effect an exercise
hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same
effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number
of Warrant Shares. On or before the third Trading Day (the “Warrant Share Delivery Date”) following the date
on which the Company shall have received the Exercise Notice, and upon receipt by the Company of (i) payment to the Company of
an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being
exercised (the “Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise Delivery
Documents”) in cash or by wire transfer of immediately available funds or (ii) notification from the Holder that this
Warrant is being exercised pursuant to a Cashless Exercise, as defined below, the Company shall issue and dispatch by overnight
courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in
the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such
exercise (or credit the Holder’s account through an electronic delivery of Common Stock through the DWAC system of the Depository
Trust Company, if requested). Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective
of the date of delivery of the certificates evidencing such Warrant Shares. If this Warrant is submitted in connection with any
exercise pursuant to Section 1(c) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater
than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable, and in no event
later than three business days after any exercise and at its own expense, issue a new Warrant representing the right to purchase
the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares
with respect to which this Warrant is exercised.

 

    	 		 

     

    

 

(b) No
Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment
pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes
of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise
would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder
otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current fair market
value of a Warrant Share by such fraction.

 

(c) Cashless
Exercise. The Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash
payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect
instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the
following formula (a “Cashless Exercise”):

 

Net
Number = (A x B) - (A x C)

B

 

For
purposes of the foregoing formula:

 

	 	A =	 the total number of shares with respect to which this
Warrant is then being exercised.

 

	 	B =	 the Weighted Average Price of the shares of Common
Stock for the five consecutive Trading Days ending on the date immediately preceding the date of the Exercise Notice.

 

	 	C =	the Exercise Price then in effect for the applicable
Warrant Shares at the time of such exercise.

 

    	 	2	 

     

    

 

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

 

2. ADJUSTMENTS.
The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

 

(a) Subdivision
or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock
dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant
Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by combination, reverse
stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, then
the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant
Shares will be proportionately decreased. Any adjustment under this Section 2(a) shall become effective at the close of business
on the date the subdivision or combination becomes effective.

 

(b) Distribution
of Assets. If the Company shall declare or make 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
or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in
each such case:

 

(i) any
Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders
of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the numerator shall be the Closing
Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the
denominator shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record
date; and

 

    	 	3	 

     

    

 

(ii) the
number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately
prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to
receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding clause (i); provided,
however, that in the event that the Distribution is of shares of common stock of a company (other than the Company) whose common
stock is traded on a national securities exchange or a national automated quotation system (“Other Shares of Common Stock”),
then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of
Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable
into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution
had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the
product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the
terms of the immediately preceding clause (i) and the number of Warrant Shares calculated in accordance with the first part of
this clause (ii).

 

(c) Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2(a) or (b) but not expressly provided
for by such provisions (including without limitation the granting, on a pro rata basis to the holders of the Common Stock, of
stock-appreciation rights, phantom stock units or other shareholder rights with equity features), then the Company’s Board
of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights
of the Holder. For the avoidance of doubt, the parties agree this Section 2(c) shall not apply to (i) the issuance of Common Stock
upon the exercise of options or warrants not granted to the shareholders of the Company as a whole, or (ii) the issuance of Common
Stock, stock options, stock-appreciation rights, restricted stock units, or other forms of equity or equity-linked compensation
under the Company’s equity incentive or purchase plans duly adopted by a majority of the non- employee members of the Board
of Directors of the Company or a committee of non-employee directors established for such purpose.

 

    	 	4	 

     

    

 

(d) Weighted-Average
Adjustment to Exercise Price. If the Company, at any time while this Warrant is outstanding, shall issue any Common Stock
or Common Stock Equivalents entitling any person to acquire shares of Common Stock, at an effective price per share less than
the then-current Exercise Price, as adjusted hereunder (any such issuance, other than an issuance of Common Stock or Common Stock
Equivalents in respect of an Exempt Issuance, being referred to as a “Dilutive Issuance”), then the Exercise
Price shall be adjusted in accordance with the following formula:

 

AEP
= EP * [OS + ((DIS * DIP)/EP)]

(OS
+ DIS)

 

For
purposes of the foregoing formula: AEP = Adjusted Exercise Price

 

	 	EP =	Exercise Price (as in effect immediately prior
to adjustment)

 

		OS
                                                                      =	Total
number of shares of Common Stock and Common Stock Equivalents outstanding immediately prior to the Dilutive Issuance (excluding,
however, Common Stock and Common Stock Equivalents outstanding on account of Exempt Issuances)

 

		DIS
                                         =	Total
                                         number of shares of Common Stock and Common Stock Equivalents issued in the Dilutive
                                         Issuance

 

		DIP
                                         =	The
                                         per-share price at which Common Stock or Common Stock Equivalents were issued in the
                                         Dilutive Issuance

 

Any
such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued; provided, however, that (i)
if an adjustment is made on account of a Dilutive Issuance of Common Stock Equivalents, then the subsequent issuance of
actual Common Stock upon conversion or exercise of such Common Stock Equivalents will not result in a second adjustment, and
(ii) notwithstanding anything in this Warrant to the contrary, no adjustments shall be made under this Section 2(d) in
respect of an Exempt Issuance.

 

(e) Additional
Loans under the Loan and Security Agreement. If at any time that an Advance (as defined in the Loan and Security Agreement)
is made under the Loan and Security Agreement and the aggregate amount of all Advances made under the Loan and Security Agreement
(whether or not outstanding) exceeds $3,000,000, then the number of Warrant Shares issuable upon exercise of this Warrant shall
be increased by the product of (the quotient of the amount of such most recent Advance divided by $0.255) multiplied by 0.5.

 

3. FUNDAMENTAL
TRANSACTIONS. If, at any time while this Warrant is outstanding, (i) the Company effects any merger of the Company with
or into another entity and the Company is not the surviving entity, (ii) the Company effects any sale of all or substantially
all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company
or by another individual or entity, and approved by the Company) is completed pursuant to which holders of Common Stock are permitted
to tender or exchange their shares of Common Stock for other securities, cash or property or (iv) 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 (other than as a result of a subdivision or combination of shares of Common Stock covered
by Section 2(a) above) (in any such case, a “Fundamental Transaction”), then, upon any subsequent exercise
of this Warrant, the Holder shall have the right to receive the number of shares of Common Stock of the successor or acquiring
corporation or of the Company and any additional consideration (the “Alternate Consideration”) receivable upon
or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such event (disregarding any limitation on
exercise contained herein solely for the purpose of such determination). 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. To the extent necessary to effectuate the foregoing provisions,
any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent
with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration.

 

    	 	5	 

     

    

 

4. NON-CIRCUMVENTION.
The Company covenants and agrees that the Company will not, by amendment of its articles of incorporation, bylaws or through any
reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or
any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the
rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any
shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non- assessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, have authorized
and reserved, free from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights
represented by this Warrant (without regard to any limitations on exercise).

 

5. WARRANT
HOLDER NOT DEEMED A SHAREHOLDER. Except as otherwise specifically provided herein, this Warrant, in and of itself, shall not
entitle the Holder to any voting rights or other rights as a shareholder of the Company. In addition, nothing contained in this
Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant
or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the
Company.

 

6. REISSUANCE
OF WARRANTS.

 

(a) Lost,
Stolen or Mutilated Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

(b) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new
Warrant shall be of like tenor with this Warrant, and shall have an Issuance Date, as indicated on the face of such new
Warrant which is the date such new Warrant is issued.

 

    	 	6	 

     

    

 

7. TRANSFER.

 

(a) Notice
of Transfer. The Holder, by acceptance hereof, agrees to give written notice to the Company before transferring this Warrant
or transferring any Warrant Shares of such Holder’s intention to do so, describing briefly the manner of any proposed transfer.
Promptly upon receiving such written notice, the Company shall present copies thereof to the Company’s counsel. If the proposed
transfer may be effected without registration or qualification (under any federal or state securities laws), the Company, as promptly
as practicable, shall notify the Holder thereof, whereupon the Holder shall be entitled to transfer this Warrant or to dispose
of Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice delivered
by the Holder to the Company; provided, however, that an appropriate legend may be endorsed on this Warrant or the certificates
for such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory
to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act of 1933 and applicable
state securities laws; and provided further that the prospective transferee or purchaser shall execute an Assignment of Warrant
in substantially the form attached hereto as Exhibit B and such other documents and make such representations, warranties,
and agreements as may be required solely to comply with the exemptions relied upon by the Company for the transfer or disposition
of the Warrant or Warrant Shares.

 

(b) If
the proposed transfer or disposition of this Warrant or such Warrant Shares described in the written notice given pursuant to
this Section 7 may not be effected without registration or qualification of this Warrant or such Warrant Shares, the Holder will
limit its activities in respect to such transfer or disposition as are permitted by law.

 

8. NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with the notice provisions contained in the Note. The Company shall provide the Holder with prompt written notice (i) immediately
upon any adjustment of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment
and (ii) at least 20 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend
or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities
directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata
to the holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution
or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with
such notice being provided to the Holder.

 

9. AMENDMENT
AND WAIVER. The terms of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Holder.

 

10. GOVERNING
LAW. This Warrant and all rights, obligations and liabilities hereunder shall be governed by, and construed in accordance
with, the internal laws of the State of New York, without giving effect to the conflicts-of-law principles thereof.

 

    	 	7	 

     

    

 

11. DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price, the Closing Sale Price, or the arithmetic
calculation of the Warrant Shares, the Company or the Holder (as the case may be) shall submit the disputed determinations or
arithmetic calculations via email or facsimile (a) within two business days after receipt of the applicable notice giving rise
to such dispute to the Company or the Holder, as the case may be, or (b) if no notice gave rise to such dispute, at any time after
the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to agree upon such
determination or calculation of the Exercise Price, Closing Sale Price or the Warrant Shares within three business days of such
disputed determination or arithmetic calculation being submitted to the Company or the Holder, as the case may be, then the Company
shall, within two business days thereafter submit via facsimile or email (x) the disputed determination of the Exercise Price
or Closing Sale Price to an independent, reputable investment bank selected by the Company and approved by the Holder or (y) the
disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company shall
cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than ten business days from the time it receives the disputed determinations
or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be
binding upon all parties absent manifest error.

 

12. ACCEPTANCE.
Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained
herein.

 

13. CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a) “Bloomberg”
means Bloomberg Financial Markets.

 

(b) “Closing
Sale Price” means, for any security as of any date, (i) the last closing trade price for such security on the Principal
Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate
the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg,
or (ii) if the foregoing does not apply, the last trade price of such security in the over-the-counter market for such security
as reported by Bloomberg, or (iii) if no last trade price is reported for such security by Bloomberg, the average of the bid and
ask prices of any market makers for such security as reported by the OTC Markets. If the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall
be the fair market value as mutually determined by the Company and the Holder. All such determinations to be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

(c) “Common
Stock” means (i) the Company’s common stock, par value $0.01 per share, and (ii) any share capital into which
such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(d) “Common
Stock Equivalents” means any securities of the Company that 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.

 

    	 	8	 

     

    

 

(e) “Exempt
Issuance” means the issuance of (i) shares of Common Stock or options to employees, officers, directors or unaffiliated
consultants of the Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the
Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose,
(ii) any securities upon the exercise or conversion of any securities issued pursuant to the this Warrant or other warrants issued
under the Loan and Security Agreement, (iii) any Common Stock upon the exercise or conversion of securities that are issued and
outstanding as of the Issuance Date,

(iv)
securities issued pursuant to or in connection with acquisitions or strategic transactions approved by a majority of the disinterested
directors of the Company, (v) shares of Common Stock issued or issuable in connection with regularly scheduled dividend payments
on the Company’s Series A Preferred Stock or Series A-1 Preferred Stock, and (vi) shares of Common Stock issued pursuant
to any loan or leasing arrangement, real property leasing arrangement, or debt financing from a bank approved by the Board of
Directors of the Company.

 

(f) “Principal
Market” means the primary national securities exchange on which the Common Stock is then traded.

 

(g) “SEC”
means the U.S. Securities and Exchange Commission.

 

(h) “Trading
Day” means (i) any day on which the Common Stock is listed or quoted and traded on its Principal Market, (ii) if the
Common Stock is not then listed or quoted and traded on any national securities exchange, then a day on which trading occurs on
any over-the-counter markets, or (iii) if trading does not occur on the over-the-counter markets, any business day.

 

(i) “Weighted
Average Price” means, for any security as of any date, (i) the dollar- volume weighted-average price for such security
on the Principal Market during the period beginning at 9:30 a.m., New York City time, and ending at 4:00 p.m., New York City time,
as reported by Bloomberg or (ii) if the foregoing does not apply, the dollar-volume weighted-average price of such security in
the over-the-counter market for such security during the period beginning at 9:30 a.m., New York City time, and ending at 4:00
p.m., New York City time, as reported by Bloomberg, or (iii) if no dollar-volume weighted-average price is reported for such security
by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market
makers for such security as reported in OTC Markets. If the Weighted Average Price cannot be calculated for such security on such
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved pursuant to Section 11 with the term “Weighted Average Price”
being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted for
any share dividend, share split or other similar transaction during such period.

 

    	 	9	 

     

    

 

14. REGISTRATION
RIGHTS.

 

(a) Demand
Registration. The Company shall file, within 45 days after written demand therefor by the Holder, and thereafter use its commercially
reasonable efforts to effect, registration under the Securities Act for the resale of the Warrant Shares; provided, however, that
(i) the Company shall not be obligated to take any action to effect any such registration if the Holder fails to reasonably cooperate
in providing the Company with all information reasonably required to be included in the applicable registration statement or otherwise
required to be obtained by the Company for purposes of preparing and filing the registration statement and any amendments thereto,
and (ii) the obligations of the Company upon any such demand shall be subject to the provisions of paragraph (c) below. Once declared
effective by the SEC, the Company shall use its best efforts to keep the applicable registration statement effective until the
earliest of (A) such time as all of the Warrant Shares shall have been sold or (B) at least three years have passed since the
Issuance Date (as applicable, the “Registration Expiration”).

 

(b) Piggyback
Registration.

 

(i) If,
but without any obligation under this Agreement to do so, the Company proposes to register, including for this purpose a registration
effected by the Company for holders of Company securities other than the Holder, any of its securities under the Securities Act,
other than a registration relating solely to the sale of securities to participants in an equity incentive plan on Form S-8, or
a registration on Form S-4 relating solely to a transaction pursuant to the SEC’s Rule 145 (or any successors to such forms),
the Company shall at such time promptly give the Holder written notice of such proposed registration. Upon the written request
of the Holder given within 20 business days after the giving of notice by the Company, the Company shall, subject to the provisions
of paragraph (c) below, cause to be registered under the Securities Act all of the Warrant Shares that the Holder shall have requested
to be registered; provided, however, that the Company shall not be obligated to take any action to effect any such registration
if the Holder fails to reasonably cooperate in providing the Company with all information reasonably required to be included in
the applicable registration statement or otherwise required to be obtained by the Company for purposes of preparing and filing
that registration statement and any amendments thereto.

 

(ii) In
connection with any offering involving an underwriting of the Company’s common securities, the Company shall not be required
under this Section 14(b) to include any of Holder’s Warrant Shares in such underwriting unless the Holder accepts the terms
of the underwriting as agreed upon between the Company and the underwriters selected by the Company (or by other persons entitled
to select the underwriters).

 

(iii) No
incidental right under this Section 14(b) shall be construed to limit any registration required under Section 14(a). The piggyback
registration rights in this Section 14(b) shall continue until the Registration Expiration.

 

(c) Cut-Back
Provision. With respect to any registration under Section 14(b), but not any registration under Section 14(a), if, for any
reason, the SEC, (in consultation with Company counsel, and based on existing written SEC guidance or applicable rules), or one
of the lead underwriters participating in an underwritten primary offering, requires that the number of Warrant Shares to be registered
for resale pursuant to the applicable registration statement be reduced (in order to comply with SEC rules or guidance, or in
order to facilitate the success of the offering as determined by the lead underwriters), then such reduction shall be allocated
pro rata among all holders whose shares (but not limited to Warrant Shares) have been included (or are eligible for inclusion)
for resale under the registration statement until the reduction so required shall have been effected.

 

(d) Registration
Expenses. All expenses incurred by the Company in complying with Section 14, including without limitation all registration
and filing fees, printing expenses (if required), fees and disbursements of counsel and independent public accountants for the
Company, fees of the FINRA, transfer taxes, and fees of transfer agents and registrars, are called “Registration Expenses.”
The Company will pay all Registration Expenses in connection with any registration hereunder.

 

*
* * * * * *

 

    	 	10	 

     

    

 

IN
Witness Whereof, the Company has caused this Warrant to Purchase Common Stock to
be duly executed as of the date indicated above.

 

	 	CREATIVE
    REALITIES, INC.
	 	 
	 	 
	 	John
    Walpuck
	 	Chief
    Executive Officer

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