Document:

Exhibit 10.3

 

CONFIDENTIAL TREATMENT

[***] indicates that text has been omitted
which is the subject of a confidential 

treatment request. This text has been separately
filed with the SEC.

 

 

 

 

WEBBANK

and

PROSPER
MARKETPLACE, INC.

 

STAND BY

PURCHASE AGREEMENT

 

  

 

 

 

Dated as of July 1, 2016

 

 

     

     

    

This STAND BY PURCHASE AGREEMENT (this
“Agreement”), dated as of July 1, 2016, is made by and between WEBBANK, a Utah-chartered industrial bank having its
principal location in Salt Lake City, Utah (“Bank”), and PROSPER MARKETPLACE, INC., a Delaware corporation, having
its principal location in San Francisco, California (“PMI”).

WHEREAS, Bank and PMI are parties to
a Marketing Agreement, dated as of the date hereof (the “Marketing Agreement”);

WHEREAS, Bank and PROSPER FUNDING LLC,
a Delaware limited liability company and a wholly-owned subsidiary of PMI, having its principal location in San Francisco, California
(“PFL”) are parties to an Asset Sale Agreement, dated as of the date hereof (the “Asset Sale Agreement”);

WHEREAS, Bank may desire to sell to PMI
certain Assets relating to Loans originated by Bank pursuant to the Marketing Agreement, and PMI desires to purchase from Bank
the Assets that are offered, and that are not purchased by PFL under the Asset Sale Agreement;

WHEREAS, Bank and PMI have entered into
a Stand By Loan Purchase Agreement, dated as of January 25, 2013, pursuant to which PMI agreed to purchase certain Loans originated
by Bank (as amended from time to time, the “Existing Stand By Loan Purchase Agreement”); and

WHEREAS, as of the date hereof, the Parties
desire to amend and restate the terms of the Existing Stand By Loan Purchase Agreement.

NOW, THEREFORE, in consideration of the
foregoing and the terms, conditions and mutual covenants and agreements herein contained, and for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.               
Definitions; Effectiveness. 

		(a)	The terms used in this Agreement shall be defined as
set forth in Schedule 1 to the Marketing Agreement. The rules of construction set forth in Schedule 1 to the Marketing Agreement
shall apply to this Agreement.

		(b)	This Agreement shall be effective as of August 1, 2016
(the “Effective Date”) and, as of the Effective Date, shall supersede and replace the Existing Stand By Loan Purchase
Agreement (except that, as provided in section 1(c), the Existing Stand By Loan Purchase Agreement will govern the purchase of
Loans originated prior to the Effective Date). This Agreement shall apply to all Loans originated by Bank during the term of this
Agreement, beginning on the Effective Date. Loans originated on or after the Effective Date shall not be subject to the Existing
Stand By Loan Purchase Agreement.

		(c)	All Loans originated by Bank prior to the Effective
Date shall be governed by the terms of the Existing Stand By Loan Purchase Agreement as in effect at the time that such Loans were
originated, and shall not be subject to the terms of this Agreement. As to such Loans, the terms of the Existing Stand By Loan
Purchase Agreement, including indemnification, shall continue to apply on the terms set forth therein.

		(d)	This Agreement shall not operate so as to render invalid
or improper any action heretofore taken under the Existing Stand By Loan Purchase Agreement.

    	 	  	 

     

    

2.               
Purchase of Stand By Assets; Payment to Bank; Reporting to Bank. 

		(a)	If PFL is obligated under the Asset Sale Agreement to
purchase any Assets from Bank on a Closing Date, then to the extent that PFL fails to purchase such Assets (the “Stand By
Assets”) on such Closing Date, Bank agrees to sell, transfer, assign, set-over, and otherwise convey to PMI, without recourse,
on the applicable Stand By Closing Date, the Stand By Assets. On the Stand By Closing Date, the servicing shall be released with
respect to those Assets sold as Loans and Participations with a Participation Percentage of 100%. All of the foregoing shall be
in accordance with the procedures set forth in this Section 2 of this Agreement. In consideration for Bank’s agreement to
sell, transfer, assign, set-over and convey to PMI such Stand By Assets, PMI agrees to purchase such Stand By Assets from Bank,
and PMI shall pay to Bank the Purchase Price in accordance with subsection 2(b) of this Agreement.

		(b)	[***], on the Stand By Closing Date, PMI
shall pay the Purchase Price for any Stand By Assets by wire transfer of immediately available funds, to an account designated
by Bank. 

		(c)	To the extent that such materials are in Bank’s
possession, upon PMI’s request, Bank agrees to cause to be delivered to PMI, at PMI’s cost, loan files on all Loans
purchased by PMI pursuant to this Agreement within [***],
Such loan files shall include the application for the Loan, the Loan Agreement, confirmation of delivery of the Loan Agreement
to the Borrower, and such other materials as PMI may reasonably require (all of which may be in electronic form); provided that
Bank may retain copies of such information as necessary to comply with Applicable Laws. Bank, as owner of the Loan, may retain
copies of any of the foregoing, or may request copies from PMI from time to time, which PMI agrees to provide promptly.

3.               
Ownership of Stand By Assets and Loans. 

		(a)	Bank shall retain ownership of the Loans after each
Funding Date, unless and until sold to PFL as provided in the Asset Sale Agreement or to PMI as provided in this Agreement. PMI
agrees to make entries on its books and records to clearly indicate Bank’s ownership of the Loans as of each Stand By Closing
Date. 

		(b)	On and after each Stand By Closing Date, subject to
PMI’s payment of the Purchase Price on each such date, PMI shall be the sole owner for all purposes (e.g., tax, accounting
and legal) of the Stand By Assets purchased from Bank on such date. Bank agrees to make entries on its books and records to clearly
indicate the sale of the Stand By Assets to PMI as of each Stand By Closing Date. PMI agrees to make entries on its books and records
to clearly indicate the purchase of the Stand By Assets as of each Stand By Closing Date. 

		(c)	Bank does not assume and shall not have any liability
to PMI for the repayment of any Loan Proceeds or the servicing of the Stand By Assets or related Loans after the related Stand
By Closing Date.

		(d)	PMI or any subsequent owner of the Stand By Assets may
(i) securitize the Stand By Assets, or any amounts owing thereunder, or (ii) issue an “asset-backed security” (as defined
under 17 C.F.R. § 229.1101(c) or Section 3(a)(77) of the Securities Exchange Act of 1934) backed by the Stand By Assets or
any amounts owing thereunder, in each case, without the prior written consent of Bank; provided that all of the following conditions
are met:

    	 	 2	 

     

    
		(1)	Bank is not required to maintain any ongoing ownership interest in the Stand By Assets after
the sale thereof to PMI, Bank is not required to make or provide any informational reports, certificates, data or filings with
respect to the securitization or other financing transaction and Bank is not required to incur any costs or expenses in connection
with such securitization or other financing transaction unless PMI (or some other creditworthy entity reasonably acceptable to
Bank) has agreed in writing to promptly and fully reimburse Bank for such out-of-pocket costs and expenses.

		(2)	Bank is not deemed to be the “securitizer,” “sponsor” or “depositor”
under any rule, regulation or order of the Securities and Exchange Commission with respect to such transaction.

		(3)	Bank is not required to waive or agree to impair any of its rights or remedies under the Program
Documents.

		(4)	PMI agrees (i) that it shall, and that it shall require each Direct Transferee or Affiliate of
such Person to, obtain Bank’s written approval of any identification of Bank by name in any documents related to a securitization
or other financing transaction, and any description of the Program in such documents, and (ii) that it shall use commercially reasonable
efforts to require any subsequent transferee not covered by (i) above to obtain Bank’s written approval of any identification
of Bank by name in any documents related to a securitization or other financing transaction, and any description of the Program
in such documents. As to any Direct Transferee (or Affiliate thereof) or any subsequent transferee, Bank will not unreasonably
withhold, delay or condition its approval.

PMI
shall include a provision in any agreement by which PMI sells or transfers Stand By Assets requiring such Direct Transferee to
comply with the terms of this Section 3(d) to the same extent as PMI, and requiring such transferee to include such a provision
in subsequent transfers of the Stand By Assets. PMI agrees that it shall, and that it shall require each Direct Transferee or
Affiliate of such Person to, promptly provide to Bank copies of all offering documents and investor presentations in connection
with any such transaction; PMI shall include a provision in any agreement by which PMI sells or transfers Stand By Assets requiring
such Direct Transferee to include a provision in subsequent transfers of the Stand By Assets that requires the subsequent transferee
to promptly provide to Bank copies of all offering documents and investor presentations in connection with any such transaction.

 

		(e)	Upon request by PMI, the Bank shall provide an acknowledgement
in a form mutually agreed by the Parties regarding the satisfaction, to Bank’s knowledge, of the conditions set forth in
Section 3(d)(1)-(4).

4.               
Representations and Warranties of Bank. Bank hereby makes
to PMI the representations and warranties set forth in Section 4 of the Asset Sale Agreement.

    	 	 3	 

     

    

5.               
Representations and Warranties of the Prosper Parties. PMI
hereby makes to Bank the representations and warranties set forth in Section 5 of the Asset Sale Agreement, in each case as to
PMI rather than PFL, and provided that the representation and warranty in Section 5(a)(1) of the Asset Sale Agreement shall be
modified to reflect that PMI is a corporation with articles of incorporation and bylaws rather than a limited liability company
with a limited liability company agreement.

6.               
Minimum Liquidity Covenant. PMI shall maintain Net Liquidity
equal to or greater than [***], at all times during the term of this Agreement.

7.               
Conditions Precedent. The obligations of Bank in this Agreement
are subject to the satisfaction of the conditions precedent set forth in Section 7 of the Asset Sale Agreement. The
obligations of PMI in this Agreement are subject to the satisfaction of the conditions precedent set forth in Section 6 of the
Asset Sale Agreement.

8.               
Term and Termination. 

		(a)	The term of this Agreement shall be the Term of the
Asset Sale Agreement, and this Agreement shall automatically terminate upon the expiration or termination of the Asset Sale Agreement.

		(b)	Bank shall have the right to terminate this Agreement
immediately upon written notice to PMI in any of the following circumstances:

		(1)	any representation or warranty made by PMI in this Agreement shall be incorrect in any material
respect and shall not have been corrected within thirty (30) Business Days after written notice thereof has been given to PMI;

		(2)	PMI shall default in the performance of any obligation or undertaking under this Agreement and
such default shall continue for thirty (30) Business Days after written notice thereof has been given to PMI; or

		(3)	PMI defaults on its obligation set forth in Section 6.

		(c)	PMI shall have the right to terminate this Agreement
immediately upon written notice to Bank in any of the following circumstances:

 

		(1)	any representation or warranty made by Bank in this Agreement shall be incorrect in any material
respect and shall not have been corrected within thirty (30) Business Days after written notice thereof has been given to Bank;
or

		(2)	Bank shall default in the performance of any obligation or undertaking under this Agreement and
such default shall continue for thirty (30) Business Days after written notice thereof has been given to Bank.

		(d)	Bank may terminate this Agreement immediately upon written
notice to PMI if PMI defaults on its obligation to make a payment to Bank as provided in Section 2 of this Agreement. 

    	 	 4	 

     

    
		(e)	The termination of this Agreement either in part or
in whole shall not discharge any Party from any obligation incurred prior to such termination, including any obligation with respect
to Stand By Assets sold prior to such termination. 

		(f)	Bank may terminate this Agreement immediately upon written
notice to PMI if Bank incurs any Loss that would have been subject to indemnification under Section 10(a) or 10(e) but for the
application of Applicable Laws that limit or restrict Bank’s ability to seek such indemnification. 

		(g)	The terms of this Section 8 shall survive the expiration
or earlier termination of this Agreement. 

9.               
Confidentiality. 

		(a)	Each Party agrees that Confidential Information of each
other Party shall be used by such Party solely in the performance of its obligations and exercise of its rights pursuant to the
Program Documents. Except as required by Applicable Laws or legal process, no Party (the “Restricted Party”) shall
disclose Confidential Information of any other Party to third parties; provided, however, that the Restricted Party may disclose
Confidential Information of the other Party (i) to the Restricted Party’s Affiliates, agents, representatives or subcontractors
for the sole purpose of fulfilling the Restricted Party’s obligations under this Agreement (as long as the Restricted Party
exercises reasonable efforts to prohibit any further disclosure by its Affiliates, agents, representatives or subcontractors),
provided that in all events, the Restricted Party shall be responsible for any breach of the confidentiality obligations hereunder
by any of its Affiliates, agents (other than a Prosper Party as agent for Bank), representatives or subcontractors, (ii) to the
Restricted Party’s auditors, accountants and other professional advisors (provided such receiving party is subject to confidentiality
obligations at least as stringent as those set forth herein and the Restricted Party shall be responsible for any breach of confidentiality
obligations by such receiving party), or to a Regulatory Authority, or (iii) to any other third party as mutually agreed by the
Parties. 

		(b)	A Party’s Confidential Information shall not include
information that:

		(1)	is generally available to the public;

		(2)	has become publicly known, without fault on the part of the Party who now seeks to disclose such
information (the “Disclosing Party”), subsequent to the Disclosing Party acquiring the information;

		(3)	was otherwise known by, or available to, the Disclosing Party prior to entering into this Agreement;
or

		(4)	becomes available to the Disclosing Party on a non-confidential basis from a Person, other than
a Party to this Agreement, who is not known by the Disclosing Party after reasonable inquiry to be bound by a confidentiality agreement
with the non-Disclosing Party or otherwise prohibited from transmitting the information to the Disclosing Party. 

		(c)	Upon written request or upon the termination of this
Agreement, each Party shall, within thirty (30) days, return to each other Party all Confidential Information of the other Party
in its possession that is in written form, including by way of example, but not limited to, reports, plans, and manuals; provided,
however, that each Party may maintain in its possession all such Confidential Information of each other Party required to be maintained
under Applicable Laws relating to the retention of records for the period of time required thereunder or stored on such Party’s
network as part of standard back-up procedures (provided that such information shall remain subject to the confidentiality provisions
of this Section 9).

    	 	 5	 

     

    
		(d)	In the event that a Restricted Party is requested or
required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar
process) to disclose any Confidential Information of any other Party, the Restricted Party shall provide such other Party with
prompt notice of such request(s) so that the other Party may seek an appropriate protective order or other appropriate remedy and/or
waive the Restricted Party’s compliance with the provisions of this Agreement. In the event that the other Party does not
seek such a protective order or other remedy, or such protective order or other remedy is not obtained, or the other Party grants
a waiver hereunder, the Restricted Party may furnish that portion (and only that portion) of the Confidential Information of the
other Party which the Restricted Party is legally compelled to disclose and shall exercise such efforts to obtain reasonable assurance
that confidential treatment shall be accorded any Confidential Information of the other Party so furnished as the Restricted Party
would exercise in assuring the confidentiality of any of its own Confidential Information.

		(e)	The terms of this Section 9 shall survive the expiration
or earlier termination of this Agreement.

10.            
Indemnification.

		(a)	PMI agrees to defend, indemnify, and hold harmless Bank
and its Affiliates, and the officers, directors, employees, representatives, shareholders, agents and attorneys of such entities
(the “Indemnified Parties”) from and against any and all claims, actions, liability, judgments, damages, costs and
expenses, including reasonable attorneys’ fees (“Losses”) to the extent arising from Bank’s participation
in the Program as contemplated by this Agreement (including Losses arising from a violation of Applicable Laws or a breach by PMI
or its agents or representatives of any of PMI’s representations, warranties, obligations or undertakings under this Agreement),
unless such Loss results from (i) the gross negligence or willful misconduct of Bank, or (ii) Bank’s
failure to timely transfer the Funding Amount to the extent required under
Section 6(b) of the Marketing Agreement, provided that PMI or PFL, as applicable is not in breach of any of its obligations under
the Program Documents, including, but not limited to, PMI’s or PFL’s obligations with respect to the purchase of Assets
under the Asset Sale Agreement or this Agreement, or (iii) Excluded Servicing Losses.

		(b)	To the extent permitted by Applicable Laws, any Indemnified
Party seeking indemnification hereunder shall promptly notify PMI, in writing, of any notice of the assertion by any third party
of any claim or of the commencement by any third party of any legal or regulatory proceeding, arbitration or action, or if the
Indemnified Party determines the existence of any such claim or the commencement by any third party of any such legal or regulatory
proceeding, arbitration or action, whether or not the same shall have been asserted or initiated, in any case with respect to which
PMI is or may be obligated to provide indemnification (an “Indemnifiable Claim”), specifying in reasonable detail the
nature of the Loss and, if known, the amount or an estimate of the amount of the Loss; provided, that failure to promptly give
such notice shall only limit the liability of PMI to the extent of the actual prejudice, if any, suffered by PMI as a result of
such failure. The Indemnified Party shall provide to PMI as promptly as practicable thereafter information and documentation reasonably
requested by PMI to defend against the Indemnifiable Claim.

    	 	 6	 

     

    
		(c)	PMI shall have ten (10) days after receipt of any notification
of an Indemnifiable Claim (a “Claim Notice”) to notify the Indemnified Party of PMI’s election to assume the
defense of the Indemnifiable Claim and, through counsel of its own choosing, and at its own expense, to commence the settlement
or defense thereof, and the Indemnified Party shall cooperate with PMI in connection therewith if such cooperation is so requested
and the request is reasonable; provided that PMI shall hold the Indemnified Party harmless from all its reasonable out-of-pocket
expenses, including reasonable attorneys’ fees, incurred in connection with the Indemnified Party’s cooperation; provided,
further, that if the Indemnifiable Claim relates to a matter before a Regulatory Authority, the Indemnified Party may elect, upon
notice to PMI, to assume the defense of the Indemnifiable Claim at the cost of and with the cooperation of PMI. If PMI assumes
responsibility for the settlement or defense of any such claim, (i) PMI shall permit the Indemnified Party to participate at the
Indemnified Party’s expense in such settlement or defense through counsel chosen by the Indemnified Party; provided that,
in the event that both PMI and the Indemnified Party are defendants in the proceeding and the Indemnified Party shall have reasonably
determined and notified PMI that representation of both parties by the same counsel would be inappropriate due to the actual or
potential differing interests between them, then the fees and expenses of one such counsel for all Indemnified Parties in the aggregate
shall be borne by PMI; and (ii) PMI shall not settle any Indemnifiable Claim without the Indemnified Party’s consent.

		(d)	If PMI does not notify the Indemnified Party within
ten (10) days after receipt of the Claim Notice that it elects to undertake the defense of the Indemnifiable Claim described therein,
or if PMI fails to contest vigorously any such Indemnifiable Claim, or if the Indemnified Party elects to control the defense of
an Indemnifiable Claim as permitted by Section 10(c), then, in each case, the Indemnified Party shall have the right, upon notice
to PMI, to contest, settle or compromise the Indemnifiable Claim in the exercise of its reasonable discretion; provided that the
Indemnified Party shall notify PMI prior thereto of any compromise or settlement of any such Indemnifiable Claim. No action taken
by the Indemnified Party pursuant to this paragraph (d) shall deprive the Indemnified Party of its rights to indemnification pursuant
to this Section 10.

		(e)	PMI agrees to defend, indemnify, and hold harmless PFL,
Bank and their respective Affiliates, and the officers, directors, employees, representatives, shareholders, agents and attorneys
of such entities (the “PMI Indemnified Parties”) from and against any and all claims, actions, liability, judgments,
damages, costs and expenses, including reasonable attorneys’ fees (“PMI Losses”) to the extent arising from (I)
Securitization Losses or (II) PMI’s actions or nonperformance under the Asset Sale Agreement (including actions or nonperformance
of PFL’s obligations), but solely in its various capacities as corporate administrator, loan servicer or platform administrator
on behalf of PFL, as contemplated by the Program Documents (including PMI Losses arising from a violation of Applicable Laws or
a breach by PMI or its agents or representatives of any of PMI’s representations, warranties, obligations or undertakings
under applicable the Program Documents, but solely in its various capacities as corporate administrator, loan servicer or platform
administrator), unless such PMI Loss results from (i) in the case of indemnification of PFL or its Affiliates, and the officers,
directors, employees, representatives, shareholders, agents and attorneys of such entities, (A) the gross negligence or willful
misconduct of PFL, (B) a breach by PFL of any of PFL’s representations, warranties, obligations or undertakings under this
Agreement, or (C) a breach by PFL of any of PFL’s other representations, warranties, obligations or undertakings under this
Agreement, and (ii) in the case of indemnification of Bank or its Affiliates, and the officers, directors, employees, representatives,
shareholders, agents and attorneys of such entities, (A) the gross negligence or willful misconduct of Bank, or (B) Bank’s
failure to timely transfer the Funding Amount to the extent required under Section 6(b) of the Loan Account Program Agreement,
provided that the Prosper Parties are not in breach of any of their respective obligations under the Program Documents, and (iii)
Excluded Servicing Losses.

    	 	 7	 

     

    
		(f)	To the extent permitted by Applicable Laws, any PMI
Indemnified Party seeking indemnification hereunder shall promptly notify PMI, in writing, of any notice of the assertion by any
third party of any claim or of the commencement by any third party of any legal or regulatory proceeding, arbitration or action,
or if the PMI Indemnified Party determines the existence of any such claim or the commencement by any third party of any such legal
or regulatory proceeding, arbitration or action, whether or not the same shall have been asserted or initiated, in any case with
respect to which PMI is or may be obligated to provide indemnification (a “PMI Indemnifiable Claim”), specifying in
reasonable detail the nature of the PMI Loss and, if known, the amount or an estimate of the amount of the PMI Loss; provided,
that failure to promptly give such notice shall only limit the liability of PMI to the extent of the actual prejudice, if any,
suffered by PMI as a result of such failure. The PMI Indemnified Party shall provide to PMI as promptly as practicable thereafter
information and documentation reasonably requested by PMI to defend against the PMI Indemnifiable Claim.

		(g)	PMI shall have ten (10) days after receipt of any notification
of a PMI Indemnifiable Claim (a “PMI Claim Notice”) to notify the PMI Indemnified Party of PMI’s election to
assume the defense of the PMI Indemnifiable Claim and, through counsel of its own choosing, and at its own expense, to commence
the settlement or defense thereof, and the PMI Indemnified Party shall cooperate with PMI in connection therewith if such cooperation
is so requested and the request is reasonable; provided that PMI shall hold the PMI Indemnified Party harmless from all its reasonable
out-of-pocket expenses, including reasonable attorneys’ fees, incurred in connection with the PMI Indemnified Party’s
cooperation; provided, further, that if the PMI Indemnifiable Claim relates to a matter before a Regulatory Authority, the PMI
Indemnified Party may elect, upon notice to PMI, to assume the defense of the PMI Indemnifiable Claim at the cost of and with the
cooperation of PMI. If PMI assumes responsibility for the settlement or defense of any such claim, (i) PMI shall permit the PMI
Indemnified Party to participate at the PMI Indemnified Party’s expense in such settlement or defense through counsel chosen
by the PMI Indemnified Party; provided that, in the event that both PMI and the PMI Indemnified Party are defendants in the proceeding
and the PMI Indemnified Party shall have reasonably determined and notified PMI that representation of both parties by the same
counsel would be inappropriate due to the actual or potential differing interests between them, then the fees and expenses of one
such counsel for all PMI Indemnified Parties in the aggregate shall be borne by PMI; and (ii) PMI shall not settle any PMI Indemnifiable
Claim without the PMI Indemnified Party’s consent.

    	 	 8	 

     

    
		(h)	If PMI does not notify the PMI Indemnified Party within
ten (10) days after receipt of the PMI Claim Notice that it elects to undertake the defense of the PMI Indemnifiable Claim described
therein, or if PMI fails to contest vigorously any such PMI Indemnifiable Claim, or if the PMI Indemnified Party elects to control
the defense of an PMI Indemnifiable Claim as permitted by Section 10(g), then, in each case, the PMI Indemnified Party shall have
the right, upon notice to PMI, to contest, settle or compromise the PMI Indemnifiable Claim in the exercise of its reasonable discretion;
provided that the PMI Indemnified Party shall notify PMI prior thereto of any compromise or settlement of any such PMI Indemnifiable
Claim. No action taken by the PMI Indemnified Party pursuant to this paragraph (h) shall deprive the PMI Indemnified Party of its
rights to indemnification pursuant to this Section 10.

		(i)	All amounts due under this Section 10 shall be payable
not later than ten (10) days after written demand therefor.

		(j)	The terms of this Section 10 shall survive the expiration
or earlier termination of this Agreement.

11.            
Assignment. This Agreement and the rights and obligations
created under it shall be binding upon and inure solely to the benefit of the Parties and their respective successors, and permitted
assigns. None of the Parties shall be entitled to assign or transfer any rights or obligations under this Agreement (including
by operation of law) without the prior written consent of the other Parties, which shall not be unreasonably withheld or delayed.
No assignment made in conformity with this Section 11 shall relieve a Party of its obligations under this Agreement.  

12.            
Third Party Beneficiaries. Nothing contained herein shall
be construed as creating a third-party beneficiary relationship between any Party and any other Person, except that PFL is an express
third party beneficiary of Sections 10(e) through 10(j).

13.            
[Intentionally Omitted]. 

14.            
Notices. All notices and other communications that are required
or may be given in connection with this Agreement shall be provided in accordance with the Asset Sale Agreement.

15.            
Relationship of Parties. The Parties agree that in performing
their respective responsibilities pursuant to this Agreement, they are in the position of independent contractors. This Agreement
is not intended to create, nor does it create and shall not be construed to create, a relationship of partner or joint venturer
or any association for profit between Bank and PMI.

16.            
Retention of Records. Any Records with respect to Stand
By Assets purchased by PMI pursuant hereto retained by Bank shall be held for itself and as custodian for the account of Bank and
PMI as owners thereof. Bank shall provide copies of Records to PMI upon reasonable request of PMI. 

17.            
Agreement Subject to Applicable Laws. If (a) any Party has
been advised by legal counsel of a change in Applicable Laws or any judicial decision of a court having jurisdiction over such
Party or any interpretation of a Regulatory Authority that, in the view of such legal counsel, would have a materially adverse
effect on the rights or obligations of such Party under this Agreement or the financial condition of such Party, (b) any Party
receives a request of any Regulatory Authority having jurisdiction over such Party, including any letter or directive of any kind
from any such Regulatory Authority, that prohibits or restricts such Party from carrying out its obligations under this Agreement,
or (c) any Party has been advised by legal counsel that there is a material risk that such Party’s or the other Party’s
continued performance under this Agreement would violate Applicable Laws, then the affected Party shall provide written notice
to the other Party of such advisement or request and the Parties shall meet and consider in good faith any modifications, changes
or additions to the Program or the Program Documents that may be necessary to eliminate such result. Notwithstanding any other
provision of the Program Documents, including Section 8 hereof, if the Parties are unable to reach agreement regarding such modifications,
changes or additions to the Program or the Program Documents within [***] after the Parties
initially meet, any Party may terminate this Agreement upon [***] prior written notice
to the other Party. A Party may suspend performance of its obligations under this Agreement, or require the other Party to suspend
its performance of its obligations under this Agreement, upon providing the other Party with advance written notice, if any event
described in subsection 17(a), (b) or (c) above occurs. 

    	 	 9	 

     

    

18.            
Expenses. 

		(a)	Each Party shall bear the costs and expenses of performing
its obligations under this Agreement, unless expressly provided otherwise in the Program Documents. 

		(b)	Each Party shall be responsible for payment of any federal,
state, or local taxes or assessments associated with the performance of its obligations under this Agreement. 

19.            
Examination. Each Party agrees to submit to any examination
that may be required by a Regulatory Authority having jurisdiction over the other Party, during regular business hours and upon
reasonable prior notice, and to otherwise provide reasonable cooperation to such other Party in responding to such Regulatory Authority’s
inquiries and requests related to the Program.

20.            
Inspection; Reports. Each Party, upon reasonable prior notice
from the other Party, agrees to submit to an inspection of its books, records, accounts, and facilities relevant to the Program,
from time to time, during regular business hours subject to the duty of confidentiality such Party owes to its customers and banking
secrecy and confidentiality requirements otherwise applicable to such Party under Applicable Laws. All expenses of inspection shall
be borne by the Party conducting the inspection. Notwithstanding the obligation of each Party to bear its own expenses of inspection,
PMI shall reimburse Bank for reasonable out of pocket expenses incurred by Bank in the performance of periodic on site reviews
of PMI’s financial condition, operations and internal controls. 

21.            
Governing Law; Waiver of Jury Trial. This Agreement shall
be interpreted and construed in accordance with the laws of the State of Utah, without giving effect to the rules, policies, or
principles thereof with respect to conflicts of laws. THE PARTIES HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING HEREUNDER. The terms of this Section 21 shall survive the expiration or earlier termination
of this Agreement.

22.            
Manner of Payments. Unless the manner of payment is expressly
provided herein, all payments under this Agreement shall be made by wire transfer to the bank accounts designated by the respective
Parties. Notwithstanding anything to the contrary contained herein, no Party shall fail to make any payment required of it under
this Agreement as a result of a breach or alleged breach by the other Party of any of its obligations under this Agreement or any
other agreement, provided that the making of any payment hereunder shall not constitute a waiver by the Party making the payment
of any rights it may have under the Program Documents or by law.

    	 	 10	 

     

    

23.            
Brokers. Neither of the Parties has agreed to pay any fee
or commission to any agent, broker, finder, or other person for or on account of services rendered as a broker or finder in connection
with this Agreement or the transactions contemplated hereby that would give rise to any valid claim against the other Party for
any brokerage commission or finder’s fee or like payment.

24.            
Entire Agreement. The Program Documents, including this
Agreement and its schedules and exhibits (all of which schedules and exhibits are hereby incorporated into this Agreement), constitute
the entire agreement between the Parties with respect to the subject matter hereof, and supersede any prior or contemporaneous
negotiations or oral or written agreements with regard to the same subject matter.

25.            
Amendment and Waiver. This Agreement may be amended only
by a written instrument signed by both of the Parties. The failure of a Party to require the performance of any term of this Agreement
or the waiver by a Party of any default under this Agreement shall not prevent a subsequent enforcement of such term and shall
not be deemed a waiver of any subsequent breach. All waivers must be in writing and signed by the Party against whom the waiver
is to be enforced.

26.            
Severability. Any provision of this Agreement which is deemed
invalid, illegal or unenforceable in any jurisdiction, shall, as to that jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability, without affecting in any way the remaining portions hereof in such jurisdiction or rendering such
provision or any other provision of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.

27.            
Interpretation. The Parties acknowledge that each Party
and its counsel have reviewed and revised this Agreement and that 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 this Agreement or any amendments thereto,
and the same shall be construed neither for nor against any Party, but shall be given a reasonable interpretation in accordance
with the plain meaning of its terms and the intent of the Parties. 

28.            
Jurisdiction; Venue. The Parties consent to the personal
jurisdiction and venue of the federal and state courts in Salt Lake City, Utah for any court action or proceeding. The terms of
this Section 28 shall survive the expiration or earlier termination of this Agreement.

29.            
Headings. Captions and headings in this Agreement are for
convenience only and are not to be deemed part of this Agreement.

30.            
Counterparts. This Agreement may be executed and delivered
by the Parties in any number of counterparts, and by different parties on separate counterparts, each of which counterpart shall
be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. 

31.            
Collateral Account. 

		(a)	PMI shall provide Bank with cash collateral to secure
all PMI’s obligations under the Program Documents, which Bank shall deposit in a deposit account (“Collateral Account”)
at Bank. The Collateral Account shall be a deposit account at Bank, segregated from any other deposit account of PMI or Bank, that
shall hold only the funds provided by PMI to Bank as collateral. At all times, PMI shall maintain funds in the Collateral Account
equal to the Required Balance (as defined below). The Required Balance shall be calculated monthly as of the first day of each
calendar month during the Term. In the event the actual balance in the Collateral Account is less than the Required Balance, PMI
shall, within [***] following notice
of such deficiency, make a payment into the Collateral Account in an amount equal to the difference between the Required Balance
and the actual balance in such account. In this Agreement, “Required Balance” means the greater of: (i) [***],
or (ii) [***].

    	 	 11	 

     

    
		(b)	To secure all PMI’s obligations under the Program
Documents (including PMI’s obligations under the prior versions of the Program Documents in effect prior to the Effective
Date), PMI hereby grants Bank a security interest in all of PMI’s right, title and interest in and to the Collateral Account
and all sums now or hereafter on deposit in or payable or withdrawable from the Collateral Account and the proceeds of any of the
foregoing (collectively, the “Collateral”), and agrees to take such steps as Bank may reasonably require to perfect
or protect such first priority security interest. PMI represents that, as of the date of this Agreement, the Collateral is not
subject to any claim, lien, security interest or encumbrance (other than the interest of Bank). PMI shall not allow any other Person
to have any claim, lien, security interest, or encumbrance on the Collateral. Bank shall have all of the rights and remedies of
a secured party under Applicable Laws with respect to the Collateral and the funds therein or proceeds thereof, and shall be entitled
to exercise those rights and remedies in its discretion.

		(c)	The Collateral Account shall be a money market deposit
account and shall bear interest. The annual interest rate shall be adjusted monthly as of the first day of each month during the
Term, and shall be equal to the greater of (i) [***]; or (ii) [***].
The interest shall be paid monthly and credited to the Collateral Account no less frequently than quarterly, and shall be computed
based on the average daily balance of the Collateral Account for the prior month.

		(d)	Without limiting any other rights or remedies of Bank
under this Agreement, Bank shall have the right to withdraw amounts from the Collateral Account to fulfill any obligations of PMI
under the Program Documents on which PMI has defaulted, at any time. Bank may withdraw amounts from the Collateral Account if any
obligations of PMI remain unpaid for [***]
after the due date for payment. To the extent that Bank has withdrawn amounts from the Collateral Account and such amounts are
subsequently paid directly to Bank, Bank shall restore such amounts to the Collateral Account within [***]
after receipt of the amounts paid directly to Bank. PMI shall not have any right to withdraw amounts from the Collateral Account.
In the event the actual balance in the Collateral Account is more than the Required Balance calculated for a particular month,
then, within [***] after the Required Balance is calculated, at PMI’s option, PMI
may provide to Bank a report setting forth the calculation for the Required Balance and the extent to which the actual amount held
in the Collateral Account at such time exceeds the Required Balance. Within [***] after
receipt of such a report from PMI, Bank shall withdraw from the Collateral Account any amount held therein that exceeds the Required
Balance as of the date of such report and pay such amount to an account designated by PMI.

    	 	 12	 

     

    
	 	(e)	Bank shall release any funds remaining in the Collateral Account on latest to occur of: [***].

	 	(f)	This Section 31 shall survive the expiration
or termination of this Agreement.

 

 

[Signature Page Follows]

 

 

    	 	 13	 

     

    

IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed by their duly authorized officers as of the date first written above.

 

WEBBANK

		By:	 

			Kelly Barnett

			President

 

 

PROSPER MARKETPLACE, INC.

 

		By:	 

			Aaron Vermut

			Chief Executive Officer

 

    	 	 14EX-4.1

 Exhibit 4.1 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS
SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES 

COMMON STOCK PURCHASE WARRANT 

GALENA BIOPHARMA, INC. 
  

					
	Warrant Shares:                    	  		  	Issue Date: July 13, 2016
		  		  	Initial Exercise Date: January 13, 2017

 THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received,
                 or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set
forth, at any time on or after January 13, 2017 (the “Initial Exercise Date”) and on or prior to the close of business on the five year anniversary of the Issue Date (the “Termination Date”) but not thereafter, to
subscribe for and purchase from Galena Biopharma, Inc., a Delaware corporation (the “Company”), up to                  shares (as subject to adjustment
hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 

Section 1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Securities Purchase Agreement (the “Purchase Agreement”), dated July 7, 2016, among the Company and the purchasers signatory thereto. 

Section 2. Exercise. 

a) Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or
in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at
the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of 

  
 1 

 
Exercise in the form annexed hereto. Within three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in
the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No
ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not
be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the
Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the
number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than
the amount stated on the face hereof. 
 b) Exercise Price. The exercise price per share of the Common Stock
under this Warrant shall be $0.65, subject to adjustment hereunder (the “Exercise Price”). 
 c)
Cashless Exercise. If at any time after the six-month anniversary of the Closing Date, there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this
Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where: 
  

	 	(A) =	the last VWAP immediately preceding the time of delivery of the Notice of Exercise giving rise to the applicable “cashless exercise”, as set forth in the applicable Notice of Exercise (to clarify, the
“last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used in this
calculation); 

  

	 	(B) =	the Exercise Price of this Warrant, as adjusted hereunder; and 

  

	 	(X) =	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

  
 2 

 If Warrant Shares are issued in such a cashless exercise, the parties acknowledge
and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding
period of this Warrant. The Company agrees not to take any position contrary to this Section 2(c). 

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

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via
cashless exercise pursuant to this Section 2(c). 
 d) Mechanics of Exercise. 

i. Delivery of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a
participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to
which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is one (1) Trading Day after the delivery to the Company of the Notice of Exercise (such date, the
“Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which

  
 3 

 
this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares; provided payment of the aggregate Exercise Price (other than in the case of a Cashless Exercise) is
received within three Trading Days of delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company
shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $5 per Trading Day
(increasing to $10 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The
Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. 

ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall,
at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for
by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
 iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 

iv. Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above 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 

  
 4 

 
executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such
exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the
immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 

v. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued
upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in
an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 
 vi. Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be
paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Warrant Shares. 

  
 5 

 vii. Closing of Books. The Company will not close its stockholder
books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
 e)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates
(such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by
the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the
Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of
whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership
Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting
forth the 

  
 6 

 
number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of
shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its
Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this
Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice
is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph
shall apply to a successor holder of this Warrant. 
 Section 3. Certain Adjustments. 

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

  
 7 

 b) [RESERVED] 

c) Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the
Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the
Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate
in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock
as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation). 
 d) Pro Rata Distributions. During such time as this Warrant is outstanding, 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, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant,
then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is
taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such
Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result
of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation). 

  
 8 

 e) Fundamental Transaction. If, at any time while this Warrant is
outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license
(other than in the normal course of business), assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of
50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business
combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall
be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price
among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the
event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction,
purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such

  
 9 

 
Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period
equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on
Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being offered in cash, if
any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the
Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five Business Days of the Holder’s election (or, if later, on the effective date of the Fundamental
Transaction). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay)
prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to
any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares
of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately
prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right
and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. 

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

  
 10 

 g) Notice to Holder. 

i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this
Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement
of the facts requiring such adjustment. 
 ii. Notice to Allow Exercise by Holder. If (A) the Company shall declare a
dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the
Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, or (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or
property, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record
or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the
holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be
specified in such notice. The Company shall promptly notify the holders of any filing the Company makes relating to any plan or reorganization or bankruptcy. To the extent that any notice provided in this Warrant constitutes, or contains,
material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain

  
 11 

 
entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set
forth herein. 
 Section 4. Transfer of Warrant. 

a) Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in
Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the
denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within
three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares
without having a new Warrant issued. 
 b) New Warrants. This Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such
notice. All Warrants issued on transfers or exchanges shall be dated the Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. 

c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 
 d) Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities

  
 12 

 
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule
144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement. 

e) Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring
this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the
Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act. 

Section 5. Miscellaneous. 

a) No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. 

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

(i) The Company shall hold a special meeting of shareholders (which may also be at the annual meeting of shareholders) at the
earliest practical date after the date after the date hereof, and in any event on or before September 30, 2016, for the purpose of obtaining Shareholder Approval, with the recommendation of the Company’s Board of Directors that such proposal be
approved, and the Company shall solicit proxies from its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of
such proposal. If the Company does not obtain Shareholder Approval at the first meeting, the Company shall call a meeting every four months thereafter to seek Shareholder Approval until the earlier of the date Shareholder Approval is obtained or the
Warrants are no longer outstanding. 

  
 13 

 (ii) In the event that Shareholder Approval is not obtained and deemed effective
on or before January 13, 2017, at the Holder’s option (“Warrant Call Exercise”), the Company shall purchase all of this Warrants from the Holder by paying to the Holder an amount of cash equal to the lesser of (i) such
Holder’s pro-rata share of $3,500,000 (based on the aggregate Exercise Prices of this Warrant to all Warrants issued pursuant to the Purchase Agreement) and (ii) the Black Scholes Value of the Warrant. “Black Scholes Value”
means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day the Holder makes its Warrant Call Exercise
reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of Warrant Call Exercise and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately prior to the Warrant Call Exercise, (C) the underlying price per share used in such calculation shall be the VWAP of the day immediately prior to the
Warrant Call Exercise and (D) a remaining option time equal to the time between the Warrant Call Exercise and the Termination Date. The payment of the purchase of this Warrant will be made by wire transfer of immediately available funds within five
Business Days of the Holder’s election (or, if later, on the effective date of the Fundamental Transaction) and may be made by a Holder at any time from January 13, 2017 until the date that is one Trading Day following the date that
Shareholder Approval is deemed obtained, deemed effective and publicly disclosed. 
 e) Authorized Shares. 

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

  
 14 

 (ii) Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its
obligations under this Warrant. 
 (iii) Before taking any action which would result in an adjustment in the number of
Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof. 
 f) Jurisdiction. All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement. 
 g)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and
federal securities laws. 
 h) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 

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

  
 15 

 j) Limitation of Liability. No provision hereof, in the absence of
any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
 k)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be
adequate. 
 l) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and
obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit
of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. 
 m)
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. 

n) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant. 
 o) Headings. The headings used in this
Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 ********************

 (Signature Page Follows) 

  
 16 

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

			
	GALENA BIOPHARMA, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 17 

 NOTICE OF EXERCISE 

TO:     GALENA BIOPHARMA, INC. 

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

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

 ̈ in lawful money of the United States; or 

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

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

			
		
		 	 

 The Warrant Shares shall be delivered to the following DWAC Account Number: 

			
		
		 	 
		
		 	 
		
		 	 

 (4) Accredited Investor. The undersigned is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended. 
 [SIGNATURE OF HOLDER] 

 

			
	Name of Investing Entity:	  	  

		
	Signature of Authorized Signatory of Investing Entity:	  	  

		
	Name of Authorized Signatory:	  	  

		
	Title of Authorized Signatory:	  	  

		
	Date:	  	  

  
 18 

 EXHIBIT B 

ASSIGNMENT FORM 
 (To assign the foregoing
Warrant, execute this form and supply required information. Do not use this form to purchase shares.) 
 FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to 
  

			
	Name:	  	  

		
		  	(Please Print)
		
	Address:	  	  

		
		  	(Please Print)
		
	Phone Number:	  	  

		
	Email Address:	  	  

 

	
	 Dated:
                        ,            

  

							
	 Holder’s Signature:
	  	  
	  		  	
				
	 Holder’s Address:
	  	  
	  		  	

  
 19

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