Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of December 23, 2020, is between ZK INTERNATIONAL
GROUP CO., LTD, a company incorporated under the laws of the British Virgin Islands, with headquarters located at No. 678
Dingxiang Road, Binhai Industrial Park, Economic & Technology Development Zone, Wenzhou, Zhejiang Province, China 325025
(the “Company”), and the investor as set forth on the signature page (each a “Buyer”).

 

WITNESSETH

 

WHEREAS, the
Company and each Buyer desire to enter into this transaction for the Company to sell and the Buyer to purchase the Ordinary Shares
(as defined below) pursuant to a registration statement on Form F-3 (File Number: 333-230860) (together with all the amendments
and supplements, the “Registration Statement”) filed with the U.S. Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities Act”) on April 15, 2019 and declared effective
on April 29, 2019;

 

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s),
as provided herein, and the Buyer(s) shall purchase an aggregate of 1,785,000 Company’s ordinary shares (the “Securities”),
with no par value (the “Ordinary Shares”), at $1.40 per ordinary share, for a total purchase price of up to
$2,499,000 in principal (the “Purchase Price”) in the respective amounts set forth on each Buyer’s signature
page hereof (the “Subscription Amount”);

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the Company is delivering Irrevocable Transfer Agent Instructions (the “Irrevocable
Transfer Agent Instructions”) to its transfer agent; and

 

AGREEMENT

 

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

 

		1.	PURCHASE AND SALE OF SECURITIES.

 

(a)            Purchase
of the Securities. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the Company
shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company at the Closing
(as defined below) Securities in amounts corresponding with the Subscription Amount set forth on each Buyer’s the signature
page hereof.

 

(b)            Closing
Dates. The date and time of the closing of the purchase of Ordinary Shares by the Buyer(s) (the
 “Closing”) shall be 10:00 a.m., New York time, within two (2) Business Days on which the conditions to the
Closing set forth in Sections 5 and 6 below are satisfied or waived (or such other date as is mutually agreed to by the
Company and each Buyer) (the “Closing Date”). As used herein “Business Day” means any
day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or
required by law to remain closed.

 

     

     

    

 

(c)            Form of
Payment; Deliveries. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing Date, (i) the
Buyer shall deliver to the Company such aggregate proceeds for the Ordinary Shares to be issued and sold to such Buyer at such
Closing, minus the fees to be paid directly from the proceeds of such Closing as set forth in a closing statement, and (ii) the
Company shall issue and deliver to each Buyer, the number of Ordinary Shares which such Buyer is purchasing at such Closing in
amounts on such Buyer’s signature page hereof, duly executed on behalf of the Company.

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally
and not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of the Closing
Date:

 

(a)            Organization;
Authority. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)            Authorization,
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of such Buyer and shall
constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with its terms,
except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights
and remedies.

 

(c)            No
Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the
transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such
Buyer is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws) applicable to such Buyer, except, in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the ability of such Buyer to perform its obligations hereunder.

 

(d)            Certain
Trading Activities. The Buyer has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any
understanding with the Buyer, engaged in any transactions in the securities of the Company (including, without limitation,
any Short Sales (as defined below) involving the Company's securities) during the period commencing as of the time that the
Buyer first contacted the Company or the Company's agents regarding the specific investment in the Company contemplated by
this Agreement and ending immediately prior to the execution of this Agreement by such Buyer. The Buyer hereby agrees that it
shall not directly or indirectly, engage in any Short Sales involving the Company’s securities. "Short
Sales" means all "short sales" as defined in Rule 200 promulgated under Regulation SHO under the
Securities Exchange Act of 1934, as amended (the “1934 Act”) (as defined below). The Buyer is aware that Short
Sales and other hedging activities may be subject to applicable federal and state securities laws, rules and regulations
and the Buyer acknowledges that the responsibility of compliance with any such federal or state securities laws,
rules and regulations is solely the responsibility of the Buyer.

 

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		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth
under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and to qualify
any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations
and warranties set forth below to The Buyer:

 

(a)            Organization
and Qualification. The Company and each of its Subsidiaries is an entity duly formed, validly existing and in good standing
under the laws of the jurisdiction in which it is incorporated or formed, and has the requisite power and authority to own its
properties and to carry on its business as now being conducted and as presently proposed to be conducted. The Company and each
of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which
its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent
that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as
defined below). As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the
business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects
of the Company and its Subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction
Documents or any other agreements or instruments to be entered into by the Company in connection herewith or therewith or (iii) the
authority or ability of the Company to perform any of its obligations under any of the Transaction Documents. “Subsidiaries”
means any Person in which the Company, directly or indirectly, owns a majority of the outstanding capital stock having voting power
or holds a majority of the equity or similar interest of such Person, and each of the foregoing, is individually referred to herein
as a “Subsidiary”.

 

(b)            Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and
thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the
Ordinary Shares), have been duly authorized by the Company's board of directors and no further filing, consent or
authorization is required by the Company, its board of directors or its shareholders or other governmental body. This
Agreement has been, and the other Transaction Documents to which the Company is a party will be prior to the Closing, duly
executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies and except as rights to
indemnification and to contribution may be limited by federal or state securities law. “Transaction
Documents” means, collectively, this Agreement, the Ordinary Shares, the Irrevocable
Transfer Agent Instructions, and each of the other agreements and instruments entered into by the Company or delivered by the
Company in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

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(c)            Issuance
of Securities. The issuance of the Securities are duly authorized and, upon issuance and payment in accordance with the terms
of the Transaction Documents the Securities shall be validly issued, fully paid and non-assessable and free from all preemptive
or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security
interests and other encumbrances (collectively “Liens”) with respect to the issuance thereof. Upon issuance,
the Securities, when issued, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights
or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Ordinary Shares.

 

(d)            No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities) will
not (i) result in a violation of the articles of incorporation, bylaws, certificate of incorporation or formation, memorandum
of association, articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries, or
any shares, capital stock or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute
a default under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture
or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including, without limitation, U.S. federal and state securities laws and regulations, the
securities laws of the jurisdictions of the Company's incorporation or in which it or its subsidiaries operate and the rules and
regulations of the Nasdaq (the “Principal Market”) and including all applicable laws, rules and regulations
of the British Virgin Islands) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company
or any of its Subsidiaries is bound or affected, except in the case of (ii) and (iii) for any conflict, default, right
or violation that would not reasonably be expected to result in a Material Adverse Effect.

 

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(e)            Consents.
The Company is not required to obtain any material consent from, authorization or order of, or make any filing or
registration with (other than any filings as may be required by any federal or state securities agencies and any filings as
may be required by the Principal Market), any Governmental Entity (as defined below) or any regulatory or self-regulatory
agency or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated by the
Transaction Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders,
filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence
have been or will be obtained or effected on or prior to the Closing Date, and neither the Company nor any of its
Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from
obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents. The Company
is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which
could reasonably lead to delisting or suspension of the Ordinary Shares in the foreseeable future. The Company has notified
the Principal Market of the issuance of all of the Securities hereunder, which does not require obtaining the approval of the
shareholders of the Company or any other Person or Governmental Entity, and the Principal Market has completed its review of
the related Listing of Additional Share form. “Governmental Entity” means any nation, state, county, city,
town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other
government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch,
department, official, or entity and any court or other tribunal), multi-national organization or body; or body
exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or
controlled by a government or a public international organization or any of the foregoing.

 

(f)            Equity
Capitalization.

 

(i)            Authorized
and Outstanding Ordinary Shares. As of the date hereof, the authorized maximum number of Ordinary Shares of the Company consists
of (A) 50,000,000 ordinary shares of a single class with no par value each, of which, 17,952,290 are issued and outstanding.

 

(ii)            Valid
Issuance; Available Shares. All of such outstanding shares are duly authorized and have been validly issued and are fully
paid and non-assessable.

 

(g)            Registration
Statement and Prospectus. The Registration Statement is a “shelf registration statement” as
defined under Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years prior
to the date hereof; and no notice of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has been received by Seller.
No order suspending the effectiveness of the Registration Statement has been issued by the Commission, and no proceeding for
that purpose or pursuant to Section 8A of the Securities Act against Seller or related to the offering of the Shares has
been initiated or threatened by the Commission; as of the applicable effective date of the Registration Statement and any
post-effective amendment thereto, the Registration Statement and any such post-effective amendment complied and will comply
in all material respects with the Securities Act, and did not and will not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein not
misleading; and as of the date of the Prospectus and any amendment or supplement thereto and as of the Closing Date, the
Prospectus will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading;
 “Prospectus” means the prospectus in the form first used (or made available upon request of Buyer
pursuant to Rule 173 under the Securities Act) in connection with the sale of the Securities.

 

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(h)            Incorporated
Documents. The documents incorporated by reference in the Registration Statement and the Prospectus, when they
were filed with the Commission conformed in all material respects to the requirements of the Exchange Act, and none of such documents
contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated
by reference in the Registration Statement and the Prospectus, when such documents are filed with the Commission, will conform
in all material respects to the requirements of the Exchange Act and will not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

(i)            Registration
Compliance; No Stop Order. No order suspending the effectiveness of the Registration Statement shall be in effect,
and no proceeding for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act
shall be pending before or threatened by the Commission; the Prospectus shall have been timely filed with the Commission under
the Securities Act and in accordance with Section 4(a) hereof; and all requests by the Commission for additional information
shall have been complied with to the reasonable satisfaction of the Representatives.

 

		4.	COVENANTS.

 

(a)            Reporting
Status. The Company shall use its best efforts to file on a timely basis all reports required to be filed with the SEC pursuant
to the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if
the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination.

 

(b)            Use
of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions contemplated
herein to repay any loans to any executives or employees of the Company.

 

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(c)            Listing.
To the extent applicable, the Company shall promptly secure the listing or designation for quotation (as the case may be) of all
of the Ordinary Shares (as defined below) upon each national securities exchange and automated quotation system, if any, upon which
the Ordinary Shares are then listed or designated for quotation (as the case may be, each an “Eligible Market”),
subject to official notice of issuance, and shall use reasonable efforts to maintain such listing or designation for quotation
(as the case may be) of all Securities from time to time issuable under the terms of the Transaction Documents on such Eligible
Market for the Reporting Period. Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably
expected to result in the delisting or suspension of the Ordinary Shares on an Eligible Market during the Reporting Period. The
Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(c).

 

(d)            Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or
regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

 

		5.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The obligation of the
Company hereunder to issue and sell the Ordinary Shares to each Buyer at the Closing is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may
be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

 

(a)            Such
Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(b)            Such
Buyer and each other Buyer shall have delivered to the Company the Purchase Price for the Ordinary Shares being purchased by such
Buyer at the Closing by wire transfer of immediately available funds.

 

(c)            The
representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in
all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by such Buyer at or prior to such Closing Date.

 

		6.	CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

 

The obligation of each Buyer hereunder
to purchase its Ordinary Shares at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for each Buyer's sole benefit and may be waived by such Buyer at any time in its
sole discretion by providing the Company with prior written notice thereof:

 

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(a)            The
Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party and the
Company shall have duly executed and delivered to such Buyer such aggregate principal amount of Securities as set forth thereof.

 

(b)            The
Ordinary Shares (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall
not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market.

 

(c)            The
Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the
transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

 

		7.	TERMINATION.

 

In the event that the
Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such Buyer shall have
the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business
on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement
under this Section 7 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement
to have been consummated by such date is the result of such Buyer's breach of this Agreement and (ii) the abandonment of the
sale and purchase of the Securities shall be applicable only to such Buyer providing such written notice, provided further that
no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses described
herein. Nothing contained in this Section 7 shall be deemed to release any party from any liability for any breach by such
party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel
specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.

 

		8.	MISCELLANEOUS.

 

(a)            Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address
for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. Nothing contained herein shall be deemed or operate to preclude any Buyer from bringing suit or taking other legal action
against the Company in any other jurisdiction to collect on the Company's obligations to such Buyer or to enforce a judgment or
other court ruling in favor of such Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR
THEREBY.

 

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(b)            Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an
executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(c)            Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms "including," "includes," "include"
and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein,"
 "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

 

(d)            Entire
Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer, the Company,
their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except
as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or
undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in
writing signed by the party to be charged with enforcement.

 

(e)            Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt,
when delivered personally or (ii) one (1) Business Day after deposit with an overnight courier service with next-day
international delivery specified, in each case, properly addressed to the party to receive the same and (B) receipt, when
sent by electronic mail. The addresses and e-mail addresses for such communications shall be:

 

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	If to the Company, to:	ZK INTERNATIONAL GROUP CO., LTD 
	 	
        No. 678 Dingxiang Road, Binhai Industrial Park

        Economic & Technology Development Zone

        Wenzhou, Zhejiang Province

        People’s Republic of China 325025

        Telephone: +86-577-86852999

        Email: zjzk@cn-zk.cn

 

	With Copy to:	
        Mengyi “Jason” Ye, Esq.

        Ortoli Rosenstadt LLP

        366 Madison Avenue, 3rd Floor

        New York, NY 10017

        Telephone:  212-588-0022

        E-Mail:  jye@orllp.legal

	 	 
	If to a Buyer, to its address and e-mail address as set forth on the signature page hereof.
	 	 

or to such other address, e-mail address and/or to the
attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days
prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) electronically generated by the sender's e-mail service provider containing the time,
date, recipient e-mail address or (C) provided by an overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively

 

(f)            Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of any of the Securities. The Company shall not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Buyer. In connection with any transfer of any or all of its Securities, a Buyer
may assign all, or a portion, of its rights and obligations hereunder in connection with such Securities without the consent of
the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such transferred Securities.

 

(g)            No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

[REMAINDER PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed
as of the date first written above.

 

	 	
        COMPANY:

	 	 
	 	
        ZK INTERNATIONAL GROUP CO., LTD

	 	 
	 	By:	 
	 	Name:	Jiancong Huang 
	 	Title:	Chief Executive Officer and Chairman of the Board

 

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IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed
as of the date first written above.

 

	
         
	 	 
	(Amount of Subscription in USD)	 	(Name of Buyer – Please type or print)
	
         

         
	 	 
	 	 	(Signature and, if applicable, Office)
	
         

         
	 	 
	 	 	(Address of Buyer)
	
         

         
	 	 
	
         
	 	(City, State/Province, Zip code/Postal Code of Buyer)
	
         

         
	 	 
	 	 	(Country of Buyer)
	
         

         
	 	 
	 	 	(Email Address of Buyer)

 

    12Exhibit 4.2

    

    

    THIS COMMON STOCK PURCHASE WARRANT AND THE SHARES THAT MAY BE PURCHASED HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER APPLICABLE SECURITIES LAWS OF
      ANY STATE OR OTHER JURISDICTION. THIS COMMON STOCK PURCHASE WARRANT AND THE SHARES THAT MAY BE PURCHASED HEREUNDER MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 AND
      REGISTRATION OR QUALIFICATION UNDER ANY OTHER SECURITIES LAWS OF ANY APPLICABLE STATE OR OTHER JURISDICTION OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

    

    

    AQUESTIVE THERAPEUTICS, INC.

    

    

    FORM OF COMMON STOCK PURCHASE WARRANT

    

    

    WHEREAS, capitalized terms used herein shall have the meanings ascribed to such terms in Section 9 hereof;

    

    

    WHEREAS, the Company and the Holder have entered into that certain Purchase Agreement dated as of November 3, 2020 (as amended, modified or supplemented, the “Purchase
        Agreement”) pursuant to which the Company agreed to issue this Warrant to the Holder; and

    

    

    WHEREAS, the Company and the Holder desire to set forth herein the rights and obligations of the Company and the Holder both prior to and following the
      exercise of this Warrant;

    

    

    NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the Company hereby issues this Warrant to the Holder, and the Company and the Holder hereby agree as follows:

    

      	Issue Date: November 20, 2020	
              Certificate No.       

                

            

    

    

    

    THIS IS TO CERTIFY that _____ and its permitted transferees, successors and assigns (the “Holder”) is the holder of this Warrant (this “Warrant”)
      entitling the Holder to purchase from Aquestive Therapeutics, Inc., a Delaware corporation (the “Company”), at the price of $5.38 per share (the “Exercise Price”), at any time after the date hereof (the “Issue Date”) and expiring
      on June 30, 2025 (the “Expiration Date”), up to _______ shares of the fully paid and non-assessable common stock, par value $0.001 per share, of the Company. The maximum number of shares of Common Stock that may be purchased pursuant to this
      Warrant is referred to herein as the “Aggregate Number”. The Aggregate Number and Exercise Price set forth above shall also be adjusted under certain conditions specified in Section 5 hereof.

    
      
        

    

    
    

    

    SECTION 1.          This Warrant; Transfer and Exchange.

    

    

    (a)          This Warrant. This Warrant and the rights and privileges of the Holder under this Warrant may be exercised by the Holder in whole or in part as provided herein, shall survive any
      termination of the Purchase Agreement and, as more fully set forth in Section 1(b) hereof and Section 6 hereof, may, subject to the terms of this Warrant, be transferred by the Holder to any other Person or Persons who meet the
      requirements set forth herein at any time or from time to time, in whole or in part, regardless of whether the Holder retains any or all rights under the Purchase Agreement.

    

    

    (b)         Transfer and Exchanges. The Company shall initially record this Warrant on a register to be maintained by the Company and, subject to Section 6 hereof, from time to time
      thereafter shall reflect the transfer of this Warrant on such register when surrendered for transfer in accordance with the terms of this Warrant and properly endorsed, accompanied by appropriate instructions, and further accompanied by payment in
      cash or by check, bank draft or money order payable to the order of the Company, in United States currency, of an amount equal to any stamp or other tax or governmental charge or fee required to be paid by the Company in connection with the transfer
      of this Warrant. Upon any such transfer, a new warrant or warrants shall be issued to the transferee (and to the Holder for the balance of the Aggregate Number in the event this Warrant is only partially transferred), and the surrendered warrant
      shall be cancelled. This Warrant may be exchanged at the option of the Holder, when surrendered at the Principal Office, for another warrant or other warrants of like tenor and representing in the aggregate the right to purchase a like number of
      shares of Common Stock.  Any attempt to transfer this Warrant in violation of the provisions of this Section 1(b) shall be null and void and the Company shall not register or effect any such transfer.

    

    

    SECTION 2.          Exercise.

    

    

    (a)         Right to Exercise. At any time after the Issue Date and on or before the Expiration Date, the Holder, in accordance with the terms hereof, may exercise this Warrant, in whole at
      any time or in part from time to time, by delivering this Warrant to the Company during normal business hours on any Business Day at the Principal Office, together with the notice of exercise in the form attached hereto as Exhibit A and made
      a part hereof (the “Notice of Exercise”), duly executed, and payment of the Exercise Price per share for each share purchased, as specified in the Notice of Exercise. The aggregate amount (the “Aggregate Exercise Price”) to be paid for
      the shares to be purchased (the “Exercise Amount”) shall equal the product of (i) the Exercise Amount multiplied by (ii) the Exercise Price. If the Expiration Date is not a Business Day, then this Warrant may be exercised on the next
      succeeding Business Day.

    

    

    (b)          Payment of the Aggregate Exercise Price. Payment of the Aggregate Exercise Price shall be made to the Company in cash or other immediately available funds or as provided in Section
        2(c) hereof or a combination thereof. In the case of payment of all or a portion of the Aggregate Exercise Price pursuant to Section 2(c) hereof, the direction by the Holder to make a “Cashless Exercise” shall serve as accompanying
      payment for that portion of the Aggregate Exercise Price.

    
      2

      
        

    

    

    

    (c)          Cashless Exercise. If the Company shall receive written notice from the Holder at the time of exercise of this Warrant that the Holder elects to make a “Cashless Exercise” of this
      Warrant, the Company shall deliver to the Holder (without payment by the Holder of any Exercise Price in cash) that number of Warrant Shares computed using the following formula:

    

    

    

    

    

    where

    

    

    	

          	X =	
            the number of Warrant Shares to be issued to the Holder;

          

    

    

    	

          	Y =	
            the number of Warrant Shares purchasable under this Warrant (at the date of such calculation) or, if only a portion of this Warrant is being exercised, the number of Warrant Shares purchasable under the portion of this Warrant being
              exercised (at the date of such calculation);

          

    

    

    	

          	A =	
            the Fair Market Value Per Share; and

          

    

    

    	

          	B =	
            the Exercise Price (as adjusted to the date of such calculation).

          

    

    

    (d)        Issuance of Shares of Common Stock. Upon receipt by the Company of this Warrant at the Principal Office in proper form for
      exercise, and accompanied by the Notice of Exercise and payment of the Aggregate Exercise Price as aforesaid, the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon
      such exercise, notwithstanding that certificates representing such shares of Common Stock may not then be actually delivered. Within 10 Business Days after such surrender of this Warrant, delivery of the Notice
      of Exercise and payment of the Aggregate Exercise Price as aforesaid, the Company shall cause its transfer agent to issue the Warrant Shares so purchased to the Holder in book-entry form. Any reference in this Warrant to the issuance of a certificate
      or certificates representing the Warrant Shares shall also be deemed a reference to the book-entry issuance of such Warrant Shares.

    

    

    (e)         Fractional Shares. The Company may, but shall not be required to, deliver fractions of shares of Common Stock upon exercise of this Warrant. If any fraction of a share of Common
      Stock would be deliverable upon an exercise of this Warrant, the Company may, in lieu of delivering such fraction of a share of Common Stock, make a cash payment to the Holder in an amount equal to the same fraction of the Fair Market Value Per
      Share.

    

    

    (f)          Partial Exercise. In the event of a partial exercise of this Warrant, the Company shall issue to the Holder a Warrant in like form for the unexercised portion thereof that has not
      expired.

    

    

    (g)          Deemed Automatic Exercise. If, on the Expiration Date, this Warrant remains unexercised (in whole or in part) and the Fair Market Value Per Share is greater than the Exercise
      Price, then this Warrant shall (automatically and without any action on the part of the Holder) be deemed exercised in full in a “Cashless Exercise” in accordance with Section 2(a) hereof, Section 2(b) hereof and Section 2(c)
      hereof.

    

    

    SECTION 3.          Payment of Taxes. The Company shall pay all stamp taxes attributable to the initial issuance
      of shares or other securities issuable upon the exercise of this Warrant or pursuant to Section 5 hereof, excluding any tax or taxes that may be payable because of a transfer involved in the issuance or delivery of any certificates for shares
      or other securities issued or delivered upon exercise of this Warrant in a name other than that of the Holder. The Company shall not be required to issue or deliver Warrant Shares to any Person or Persons other than the Holder unless and until the
      Person or Persons requesting the issuance thereof shall have paid to the Company the amount of any such tax or shall have established to the satisfaction of the Company that any such tax has been paid.

    
      3

      
        

    

    

    

    SECTION 4.          Replacement Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the
      Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of an affidavit of loss and indemnity undertaking by the Holder to the Company in customary form, and, in the case of mutilation,
      upon surrender and cancellation of this Warrant, the Company shall issue and deliver in exchange and substitution for and upon cancellation of the mutilated Warrant, or in lieu of and in substitution for the Warrant lost, stolen or destroyed, a new
      Warrant of like tenor and representing an equivalent right or interest.

    

    

    SECTION 5.          Adjustments to the Aggregate Number and the Exercise Price.

    

    

    (a)          The Exercise Price shall be subject to adjustment from time to time as provided in this Section 5 (without duplication, but in each case after taking into consideration any prior
      adjustments pursuant to this Section 5) upon the occurrence of any of the following events:

    

    

    (i)          The issuance of Common Stock as a dividend or distribution to all holders of Common Stock, or a subdivision, combination, split, reverse split or reclassification of
      the outstanding Common Stock into a greater or smaller number of shares of Common Stock, in which event the Exercise Price shall be adjusted based on the following formula:

    

    

    	

          	 	
            N0

          	 
	 	
            E1 = E0  x

          	
            
	

          
	 	 	
            N1

          	 

    

    

    where:

    

    

    	

          	E1 =	
            the Exercise Price in effect immediately after (i) in the case of a dividend or distribution, the start of business on the first date on which the Common Stock can be traded without the right to receive such dividend or distribution (the “Ex-Date”),
              or (ii) the consummation of the transaction in the case of a subdivision, combination, split, reverse split or reclassification;

          

    

    

    	

          	E0 =	
            the Exercise Price in effect immediately prior to (i) the start of business on the Ex-Date in the case of a dividend or distribution or (ii) the consummation of the transaction in the case of a subdivision, combination, split, reverse
              split or reclassification;

          

    

    

    	

          	N0 =	
            the number of outstanding shares of Common Stock (including any shares issuable on exercise or conversion of outstanding options, warrants and convertible securities, but excluding any shares held by the Company or any of its subsidiaries)
              (together, “Common Stock Deemed Outstanding”) immediately prior to (i) the start of business on the record date in the case of a dividend or distribution or (ii) the consummation of the transaction in the case of a subdivision,
              combination, split, reverse split or reclassification; and

          

    

    

    	

          	N1 =	
            the number of shares of Common Stock equal to (i) in the case of a dividend or distribution, the sum of the Common Stock Deemed Outstanding immediately prior to the start of business on the record date for such dividend or distribution
              plus the total number of shares of Common Stock issued pursuant to such dividend or distribution, or (ii) in the case of a subdivision, combination, split, reverse split or reclassification, the shares of Common Stock Deemed Outstanding
              immediately after such subdivision, combination, split, reverse split or reclassification.

          

    
      4

      
        

    

    

    

    Such adjustment shall become effective immediately after (i) the start of business on the Ex-Date in the case of a dividend or distribution or (ii) the consummation of the transaction in the case of
      a subdivision, combination, split, reverse split or reclassification. If any dividend or distribution or subdivision, combination, split, reverse split or reclassification of the type described in this Section 5(a) is declared or announced
      but not so paid or made, the Exercise Prices shall again be adjusted to the applicable Exercise Prices that would then be in effect if such dividend or distribution or subdivision, combination, split, reverse split or reclassification had not been
      declared or announced, as the case may be.

    

    

    (ii)          The issuance as a dividend or distribution to all holders of Common Stock of evidences of indebtedness, securities (including convertible securities) of the Company
      or any other Person (other than Common Stock), cash or other property (excluding any dividend or distribution covered by clause (i) above), in which event the Exercise Price will be adjusted based on the following formula:

    

    

    	 	 	
            P-FMV

          	 
	 	
            E1 = E0  x

          	
            
	 
	 	 	
            P

          	 

    

    

    where:

    

    

    	

          	E1 =	
            the Exercise Price in effect immediately after the start of business on the Ex-Date for such dividend or distribution;

          

    

    

    	

          	E0 =	
            the Exercise Price in effect immediately prior to the start of business on the Ex-Date for such dividend or distribution;

          

    

    

    	

          	P =	
            the Fair Market Value Per Share as of immediately prior to the start of business on the second Business Day preceding the Ex-Date for such dividend or distribution;

          

    

    

    	

          	FMV =	
            the Fair Value of the portion of such dividend or distribution applicable to one share of Common Stock as of the start of business on the date of such dividend or distribution.

          

    

    

    Such decrease shall become effective immediately after the start of business on the Ex-Date for such dividend or distribution. In the event that such dividend or distribution is declared or announced
      but not so paid or made, the Exercise Price shall again be adjusted to be the Exercise Price which would then be in effect if such dividend or distribution had not been declared or announced.

    

    

    (iii)          The payment in respect of any tender offer or exchange offer by the Company for shares of Common Stock, where the cash and Fair Value of any other consideration
      included in the payment per share of Common Stock exceeds the Fair Market Value Per Share as of the start of business on the second Business Day preceding the expiration date of the tender or exchange offer (the “Offer Expiration Date”), in
      which event the Exercise Price will be adjusted based on the following formula:

    

    

    	 	 	
            (N0 x P) – A

          	 
	 	
            E1 = E0  x

          	
            
	 
	 	 	
            (P x N1)

          	 

    

    

    where:

    

    

    	

          	E1 =	
            the Exercise Price in effect immediately after the start of business on the Offer Expiration Date;

          

    

    

    	

          	E0 =	
            the Exercise Price in effect immediately prior to the start of business on the Offer Expiration Date;

          

    
      5

      
        

    

    

    

    	

          	N0 =	
            the number of shares of Common Stock Deemed Outstanding immediately prior to the expiration of the tender or exchange offer (prior to giving effect to the purchase or exchange of Common Stock);

          

    

    

    	

          	N1 =	
            the number of shares of Common Stock Deemed Outstanding immediately after the expiration of the tender or exchange offer (prior to giving effect to the purchase or exchange of Common Stock);

          

    

    

    	

          	A=	
            the aggregate cash and Fair Value of any other consideration payable for the shares of Common Stock purchased in such tender offer or exchange offer; and

          

    

    

    	

          	P =	
            the Fair Market Value Per Share as of the start of business on the second Business Day preceding the Offer Expiration Date.

          

    

    

    An adjustment, if any, to the Exercise Price pursuant to this clause (iii) shall become effective immediately after the close of business on the Offer Expiration Date. In the event that the Company
      or a subsidiary of the Company is obligated to purchase shares of Common Stock pursuant to any such tender offer or exchange offer, but the Company or such subsidiary is permanently prevented by applicable law from effecting any such purchases, or
      all such purchases are rescinded, then the Exercise Price shall again be adjusted to be the Exercise Price which would then be in effect if such tender offer or exchange offer had not been made. Except as set forth in the preceding sentence, if the
      application of this clause (iii) to any tender offer or exchange offer would result in an increase in the Exercise Price, no adjustment shall be made for such tender offer or exchange offer under this clause (iii).

    

    

    (iv)          If any single action would require adjustment of the Exercise Price pursuant to more than one subsection of this Section 5(a), only one adjustment shall be
      made and such adjustment shall be the amount of adjustment that has the highest absolute value relative to the rights and interests of the Holder.

    

    

    (v)          Notwithstanding this Section 5(a) or any other provision of this Warrant, if an Exercise Price adjustment becomes effective on any Ex-Date, and a Warrant has
      been exercised on or after such Ex-Date and on or prior to the related record date resulting in the Person issued Common Stock being treated as the record holder of such Common Stock on or prior to the record date, then, notwithstanding the Exercise
      Price adjustment provisions in this Section 5(a), the Exercise Price adjustment relating to such Ex-Date will not be made. Instead, such Person will be treated as if it were the record owner of such Common Stock on an un-adjusted basis and
      participate in the related dividend, distribution or other event giving rise to such adjustment.

    

    

    (b)          Adjustments to Aggregate Number. Concurrently with any adjustment to the Exercise Price under Section 5(a), the Aggregate Number will be adjusted such that the Aggregate
      Number in effect immediately following the effectiveness of such adjustment will be equal to the Aggregate Number in effect immediately prior to such adjustment, multiplied by a fraction, (i) the numerator of which is the Exercise Price in effect
      immediately prior to such adjustment and (ii) the denominator of which is the Exercise Price in effect immediately following such adjustment.

    
      6

      
        

    

    

    

    (c)          Certain Distributions of Rights and Warrants.

    

    

    (i)          Rights or warrants distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase the Company’s securities
      (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (a “Trigger Event”):

    

    

    (1)          are deemed to be transferred with such Common Stock;

    

    

    (2)          are not exercisable; and

    

    

    (3)          are also issued in respect of future issuances of Common Stock,

    

    

    shall be deemed not to have been distributed for purposes of this Section 5 (and no adjustment to the Exercise Price or the Aggregate Number under this Section 5 will be made) until
      the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Exercise Price and the Aggregate Number shall be made under this Section
        5 (subject in all respects to Section 5(d) below).

    

    

    (ii)          If any such right or warrant is subject to events, upon the occurrence of which such rights or warrants become exercisable to purchase different securities, evidences
      of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and record date with respect to new rights or warrants with such rights (subject in all respects to Section
        5(d) below).

    

    

    (iii)          In addition, except as set forth in Section 5(d), in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or
      other event (of the type described in clause (ii) above) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Exercise Price and the Aggregate Number under this Section 5 was
      made (including any adjustment contemplated in Section 5(d)):

    

    

    (1)          in the case of any such rights or warrants that shall all have been redeemed or repurchased without exercise by the holders thereof, the Exercise Price and the Aggregate Number shall be
      readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a distribution under Section 5(a)(ii), equal to the per share redemption or repurchase price
      received by a holder or holders of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase; and

    

    

    (2)          in the case of such rights or warrants that shall have expired or been terminated without exercise by the holders thereof, the Exercise Price and the Aggregate Number shall be readjusted
      as if such rights and warrants had not been issued or distributed.

    

    

    (d)          Stockholder Rights Plans. If the Company has a stockholder rights plan in effect with respect to the Common Stock, upon exercise of the Warrant the Holder shall be entitled to
      receive, in addition to the Common Stock, the rights associated therewith under such stockholder rights plan, unless, prior to such exercise, such rights have separated from the Common Stock.

    
      7

      
        

    

    

    

    (e)          Restrictions on Adjustments.

    

    

    (i)          Except in accordance with Sections 5(a) and 5(b), the Exercise Price and the Aggregate Number will not be adjusted for the issuance of Common Stock or
      other securities of the Company.

    

    

    (ii)          For the avoidance of doubt, except as otherwise provided in Sections 5(a) and 5(b), neither the Exercise Price nor the Aggregate Number will be
      adjusted:

    

    

    	

          	(1)	
            upon the issuance of any shares of Common Stock or other securities or any payments pursuant to any equity incentive plan of the Company;

          

    

    

    	

          	(2)	
            upon any issuance of any shares of Common Stock pursuant to the exercise of the Warrant;

          

    

    

    	

          	(3)	
            upon the offer and sale of shares of Common Stock by the Company in a primary offering;

          

    

    

    	

          	(4)	
            upon the issuance of shares of Common Stock or other securities of the Company in connection with a business acquisition transaction; or

          

    

    

    	

          	(5)	
            upon the issuance of any shares of Common Stock or other securities of the Company in any financing transaction with a third party or with the current lenders or their assignees.

          

    

    

    (iii)          No adjustment shall be made to the Exercise Price or the Aggregate Number for any of the transactions described in Section 5(a) if the Company makes
      provisions for participation in any such transaction with respect to the Holder of this Warrant without exercise of the Warrant on the same basis as with respect to the shares of Common Stock issuable hereunder with notice that the Company’s board of
      directors determines in good faith to be fair and appropriate

    

    

    (f)          Certificate as to Adjustment. As promptly as reasonably practicable following (i) any adjustment of the Exercise Price or the Aggregate Number or (ii) the receipt by the Company
      of a written request by the Holder, but in each case in any event not later than ten Business Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer certifying the Exercise Price then in effect and the
      Aggregate Number or the amount, if any, of other shares of stock or other securities or assets then issuable upon exercise of the Warrant, which certificate shall, in the case of clause (i) above, set forth in reasonable detail any adjustment and the
      facts upon which it is based.

    

    

    (g)          Treatment of Warrant upon a Cash Change of Control. In the event of a Change of Control in which the consideration to be received by the Company’s stockholders consists solely of
      cash (a “Cash Change of Control”), if this Warrant is outstanding immediately prior to such Cash Change of Control, then (i) if the Fair Market Value Per Share is greater than the then applicable Exercise Price, this Warrant shall be
      automatically exchanged without exercise for the same amount of cash as the Holder would have been entitled to receive upon the occurrence of such Cash Change of Control if this Warrant had been exercised in full pursuant to Section 2(c)
      hereof immediately prior to such Cash Change of Control, and (ii) if the Fair Market Value Per Share is less than or equal to the then applicable Exercise Price, this Warrant will expire immediately prior to the consummation of such Change of
      Control. If this Warrant is exchanged in accordance with clause (i) above, the Company shall pay or deliver to the Holder the cash so contemplated promptly following the consummation of the Cash Change of Control.

    
      8

      
        

    

    

    

    (h)          Treatment of Warrant upon Any Other Change of Control. If, at any time while this Warrant is outstanding, the Company consummates a Change of Control that is not a Cash Change of
      Control, then:

    

    

    (1)          if the cash consideration (if any) per Warrant Share is greater than the then applicable Exercise Price, this Warrant shall be automatically exchanged without exercise
      for the same amount and kind of cash, securities or other property as the Holder would have been entitled to receive upon the occurrence of such Change of Control if this Warrant had been exercised in full pursuant to Section 2(c) hereof
      immediately prior to such Change of Control, it being understood that if this Warrant is exchanged in accordance with this subclause (1) above, the Company shall pay or deliver to the Holder the cash, securities or other property so contemplated
      promptly following the consummation of the Change of Control; or

    

    

    (2)          if the cash consideration (if any) per Warrant Share is less than or equal to the then applicable Exercise Price, the Holder shall have the right thereafter to
      receive, upon exercise of this Warrant (in whole at any time or in part from time to time), the same amount and kind of securities, cash or property as the Holder would have been entitled to receive upon the occurrence of such Change of Control if it
      had been, immediately prior to such Change of Control, a holder of the number of Warrant Shares then issuable upon such exercise of this Warrant (the “Alternate Consideration”); in such case, appropriate adjustment (in form and substance
      reasonably satisfactory to the Holder) shall be made with respect to the Holder’s rights under this Warrant to insure that the provisions of this Section 5 hereof shall thereafter be applicable, as nearly as possible, to this Warrant in relation to
      any securities, cash or property thereafter acquirable upon exercise of this Warrant (including, in the case of any Change of Control, an immediate adjustment in the Exercise Price to the value per share for the Common Stock reflected by the terms of
      such Change of Control transaction, and a corresponding immediate adjustment to the number of Warrant Shares exercisable upon exercise of this Warrant, if the value so reflected is less than the Exercise Price in effect immediately prior to Change of
      Control). If this subclause (2) shall be applicable, the Company shall not effect any such Change of Control unless, prior to or simultaneously with the consummation thereof, any successor to the Company, any surviving entity or the Person purchasing
      or otherwise acquiring such assets or other appropriate Person shall assume the obligation to deliver to the Holder such Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be entitled to receive and the other
      obligations under this Warrant.

    
      9

      
        

    

    

    

    SECTION 6.          Transfers of this Warrant and the Warrant Shares.

    

    

    (a)          Generally. Subject to compliance with applicable U.S. federal and state securities Laws and the restrictions set forth in this Section 6, the Holder may transfer this
      Warrant and the Warrant Shares in whole or in part to any Person, and, upon the reasonable request of the Holder, the Company agrees that it shall use commercially reasonable efforts to promptly assist the Holder in making any such transfer in
      compliance with any applicable U.S. federal and state securities Laws. This Warrant has not been, and the Warrant Shares at the time of their issuance may not be, registered under the Securities Act. For a transfer of this Warrant as an entirety by
      the Holder, upon surrender of this Warrant to the Company, together with the notice of assignment in the form attached hereto as Exhibit B duly completed and executed on behalf of the Holder, the Company shall issue a new Warrant of the same
      denomination to the assignee. For a transfer of this Warrant with respect to a portion of the Warrant Shares purchasable hereunder, upon surrender of this Warrant to the Company, together with the notice of assignment in the form attached hereto as Exhibit
        B duly completed and executed on behalf of the Holder, the Company shall issue a new Warrant to the assignee, in such denomination as shall be requested by the Holder, and shall issue to the Holder a new Warrant covering the number of Warrant
      Shares in respect of which this Warrant shall not have been transferred.

    

    

    (b)          Representations by the Holder. The Holder, by its acceptance of this Warrant, represents and warrants to the Company as follows:

    

    

    (i)          this Warrant has been acquired by the Holder, and any Warrant Shares to be acquired by the Holder will be acquired, for the account of the Holder for investment
      purposes for its own account and not with a view to or for sale in connection with any distribution or reselling thereof in a transaction that would violate the Securities Act or the securities laws of any state of the United States or any other
      applicable jurisdiction;

    

    

    (ii)          the Holder is an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act;

    

    

    (iii)          the Holder is experienced in evaluating and investing in companies engaged in businesses similar to that of the Company;

    

    

    (iv)          the Holder understands that investment in this Warrant (and any Warrant Shares that the Holder acquires) involves substantial risks;

    

    

    (v)          the Holder has such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in this Warrant
      (and any Warrant Shares that the Holder acquires) and is able to bear the economic risk of that investment; and

    

    

    (vi)          the Holder understands that this Warrant is, and the Warrant Shares may be, characterized as “restricted securities” under the U.S. federal securities Laws inasmuch
      as they are being (or may be) acquired from the Company in a transaction not involving a public offering and that under such Laws this Warrant and the Warrant Shares may be resold without registration under the Securities Act only in certain limited
      circumstances and, accordingly, the Holder represents that it is familiar with Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

    

    

    (c)          Transfer Restrictions Regarding This Warrant. This Warrant (or any warrants represented hereby) may only be sold, in whole or in part, (i) pursuant to an effective registration
      statement covering the resale by the Holder of this Warrant under the Securities Act or (ii) pursuant to an exemption from registration under the Securities Act and, if reasonably required by the Company, upon delivery to the Company of a customary
      opinion of legal counsel (which may rely on customary certificates and representations), certifications or other evidence to establish that such registration is not required under the Securities Act.

    
      10

      
        

    

    

    

    (d)          Transfer Restrictions Regarding Warrant Shares. If the Warrant Shares are not registered at the time of issuance, then any Warrant Shares may only be sold (i) pursuant to an
      effective registration statement under the Securities Act or (ii) pursuant to an exemption from registration under the Securities Act and upon delivery to the Company of a customary opinion of legal counsel (which may rely on customary certificates
      and representations), certifications or other evidence as may reasonably be required by the Company in order to determine that such registration is not required under the Securities Act. The Holder acknowledges that the Company may place a
      restrictive legend on any Warrant Shares issued upon exercise in order to comply with applicable securities Laws, unless such Warrant Shares are sold pursuant to an effective registration statement or are otherwise freely tradable under Rule 144.

    

    

    SECTION 7.          Covenants. Until the later of (i) the Expiration Date and (ii) the date as of which this
      Warrant has been exercised in full, the Company hereby covenants to the Holder as set forth in this Section 7.

    

    

    (a)          Validly Issued Shares. All shares of Common Stock that may be issued upon exercise of this Warrant, assuming full payment of the Aggregate Exercise Price, shall, upon delivery by
      the Company, be duly authorized and validly issued, fully paid and non-assessable, free from all stamp taxes, liens and charges with respect to the issue or delivery thereof and otherwise free of all other security interests, encumbrances and claims
      (other than security interests, encumbrances and claims to which the Holder is subject prior to or upon the issuance of the applicable Warrant Shares, restrictions under applicable U.S. federal and/or state securities Laws and other transfer
      restrictions described herein).

    

    

    (b)         Reservation of Shares. The Company shall at all times reserve and keep available out of the aggregate of its authorized but unissued Common Stock or its authorized and issued
      Common Stock held in its treasury, free of preemptive rights, such number of its duly authorized shares of Common Stock as shall be sufficient to enable the Company to issue the shares of Common Stock issuable upon exercise in full of this Warrant.

    

    

    (c)          Affirmative Actions to Permit Exercise and Realization of Benefits. If any shares of Common Stock reserved or to be reserved for the purpose of the exercise of this Warrant, or
      any shares or other securities reserved or to be reserved for the purpose of issuance pursuant to Section 5 hereof, require registration with or approval of any Governmental Authority under any U.S. federal or state Law (other than securities
      Laws) before such shares or other securities may be validly delivered upon exercise of this Warrant, then the Company covenants that it will, at its sole expense, secure such registration or approval, as the case may be (including, without
      limitation, approvals or expirations of waiting periods required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended).

    

    

    (d)          Integration. The Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to
      buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of this Warrant in a manner that would require the registration under the Securities Act of the sale
      of this Warrant to the Holder or any assignee of the Holder.

    
      11

      
        

    

    

    

    SECTION 8.          Registration Rights

    

    

    (a)          Registration of Warrant Shares.

    

    

    (i)          No later than sixty (60) days after the Issue Date, the Company shall prepare and file with the Commission one registration statement on Form S-3 (or, if the Company
      is not then eligible to use Form S-3 to register the resale of the Warrant Shares, on such form of registration statement as is then available to effect a registration therefor) (the “Registration Statement”) covering the resale of the Warrant
      Shares.  The Holder shall not be named as an “underwriter” in the Registration Statement without the Holder’s prior written consent.  Such Registration Statement also shall cover, to the extent allowable under the Securities Act and the rules
      promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Warrant Shares.  Such Registration Statement shall
      not include any shares of Common Stock or other securities for the account of any holder other than the Holder without the prior written consent of the Holder; provided that the Registration Statement may include securities to be registered pursuant
      to (i) that certain Registration Rights Agreement, dated as of June 24, 2018, among the Company, Aquestive Partners, LLC, and the other parties named therein (as such agreement is in effect on the date hereof) (the “Bratton RRA”), and (ii) the
      shares of Common Stock issued or issuable upon exercise of the other warrants dated the date hereof, each by and between the Company and each other holder party thereto.  The Registration Statement (and each amendment or supplement thereto, and each
      request for acceleration of effectiveness thereof) shall be provided to the Holder and its counsel prior to its filing or other submission.

    

    

    (ii)          The Company shall use reasonable best efforts to have the Registration Statement declared effective within ninety (90) days after the Issue Date.  The Company shall
      notify the Holder by facsimile or e-mail as promptly as practicable, and in any event, within twenty-four (24) hours, after the Registration Statement is declared effective, and shall simultaneously provide the Holder with a number of copies of any
      related prospectus reasonably requested to be used in connection with the sale or other disposition of the securities covered thereby.

    

    

    (iii)          For not more than thirty (30) consecutive days, and for not more than an aggregate of sixty (60) days in any twelve (12) month period, the Company may suspend the
      use of any prospectus included in the Registration Statement contemplated by this Section in the event that the Company determines in good faith that such suspension is necessary (A) to delay the disclosure of material non-public information
      concerning the Company, the disclosure of which at the time would be, in the good faith opinion of the Company, materially detrimental to the Company, or (B) to amend or supplement the affected Registration Statement or the related prospectus so that
      such Registration Statement or prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the case of the prospectus in light of
      the circumstances under which they were made, not misleading (an “Allowed Delay”); provided that the Company shall promptly (x) notify the Holder in writing of the commencement of and the reasons for
      an Allowed Delay, but shall not (without the prior written consent of the Holder) disclose to the Holder any material non-public information giving rise to an Allowed Delay; (y) advise the Holder in writing (including via e-mail) to cease all sales
      under the Registration Statement until the end of the Allowed Delay; and (z) use commercially reasonable best efforts to terminate an Allowed Delay as promptly as practicable.

    
      12

      
        

    

    

    

    (b)          Piggyback Rights. Without limiting Section 8(a), the Company agrees that it shall notify the Holder in writing at least 10 days prior to the filing of any registration
      statement under the Securities Act for purposes of a public offering of Common Stock of the Company (including, without limitation, registration statements relating to secondary offerings of securities of the Company, but excluding any Special
      Registration Statement) that would be filed at any time during which this Warrant is still outstanding and/or the Holder continues to hold any Warrant Shares, and the Company will afford the Holder an opportunity to include in such registration
      statement all or part of the Warrant Shares subject to the provisions hereof (such registration statement, the “Piggyback Registration Statement”). If the Holder desires to include in any such Piggyback Registration Statement all or any part
      of the Warrant Shares held by it, the Holder shall, within seven days after the above-described notice from the Company, so notify the Company in writing and shall thereafter furnish the Company with such information as the Company reasonably
      requires to effect the registration of such Warrant Shares. The Company will use its commercially reasonable efforts to cause such Warrant Shares as to which inclusion shall have been so requested to be included in the Piggyback Registration
      Statement. The Holder shall be entitled to sell the Warrant Shares included in a Piggyback Registration Statement in accordance with the method of distribution requested by it; provided that, if the
      Piggyback Registration Statement relates to an underwritten offering, then (i) the Company shall be entitled to select the underwriters in its sole discretion and (ii) the Holder must sell all Warrant Shares included on the Piggyback Registration
      Statement in such underwritten offering pursuant to an underwriting agreement containing terms and conditions that are customary for secondary offerings.  The Company may withdraw a Piggyback Registration Statement prior to its being declared
      effective without incurring any liability to the Holder and shall not be required to keep a Piggyback Registration Statement effective for longer than the period contemplated by the intended manner of distribution for the securities of the Company to
      be sold by the Company as described in the prospectus included in the Piggyback Registration Statement. The piggyback registration rights provided for in this Section 8(b) shall not apply to securities which may be sold pursuant to Rule 144
      under the Securities Act without volume or manner-of-sale restrictions and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1).

    
      13

      
        

    

    

    

    (c)          Underwriter Cutback.  In the event the managing underwriter shall be of the opinion that the number of such securities, when taken together with the Warrant Shares requested to be
      included in an offering pursuant to Section 8(a) or (b), alone or taken together with the equity securities of the Company to be included therein, would adversely affect the marketing of such offering (including the price at which the
      securities of the Company may be sold), then the number of securities to be included in such underwritten offering will be reduced (an “Underwriter Cutback”), with the securities to be included in such offering based on the following priority:
      (w) first, in the case of a registration under Section 8(b), the number of securities that the Company seeks to include in the offering, up to the number that, in the opinion of the managing underwriter, would not adversely affect the
      marketing of the offering (including the price at which such securities of the Company may be sold); (x) second, if such underwritten offering is a Demand Registration (as defined in the Bratton RRA), to the Demand Holders (as defined in the Bratton
      RRA) and Other Priority Holders (as defined in the Bratton RRA) as set forth in the Bratton RRA; (y) third, the number of the securities of the Company requested to be included by the Holder and any other Person(s) who has (have) elected to include
      securities pursuant to written agreements with the Company, in each case, up to the number that, in the opinion of the managing underwriter, would not adversely affect the marketing of the offering (including the price at which the securities
      (including the Warrant Shares) may be sold); and (z) fourth, the number of securities of the Company requested to be included by (1) the Company, in the case of a registration pursuant to Section 8(a) and (2) any other Person(s) in the
      offering with the permission of the Company, up to the number that, in the opinion of the managing underwriter, would not adversely affect the marketing of the offering (including the price at which the securities of the Company may be sold). The
      Underwriter Cutbacks described in the immediately preceding clause (y) shall be allocated pro rata among the participating Persons, including the Holder, on the basis of the number of securities requested to be included in such registration by such
      Persons.

    
      14

      
        

    

    

    

    (d)          Expenses.  The expenses of any such registration under Section 8(a) or (b) above (other than any underwriting discounts, selling commissions and stock transfer
      taxes applicable to the sale of Warrant Shares, and the fees and disbursements of counsel for the selling security holders, other than one special counsel for the selling security holders in any offering) shall be borne by the Company. If the Holder
      decides not to include all of its Warrant Shares in any registration statement thereafter filed by the Company, the Holder shall nevertheless continue to have the right to include any Warrant Shares in any subsequent Piggyback Registration Statement
      or Piggyback Registration Statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein.

    

    

    (e)          Incorporation of Other Provisions.  To the extent not duplicative of or inconsistent with the terms hereof, the provisions of Sections 4, 6, 7 and (to the extent necessary to
      permit interpretation) 8 of the Bratton RRA shall apply to the registration rights provisions and related obligations in this Section 8, mutatis mutandis.

    

    

    (f)          Listing of the Warrant Shares. To the extent applicable, the Company shall promptly secure the listing of the Warrant Shares on whichever market is at the time the principal
      trading exchange or market for the Common Stock, based upon share volume, after such time as the Warrant Shares are no longer required to contain the legend referred to in Section 6 hereof, and the Company shall provide to the Holder evidence
      of such listing.

    

    

    (g)          Compliance with Rule 144. The Company shall timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by
      the Company after the date hereof pursuant to the Exchange Act. As long as the Holder owns any Warrant Shares, if the Company is not required to file reports pursuant to such laws, the Company will prepare and furnish to the Holder and make publicly
      available in accordance with Rule 144 such information as is required for the Holder to sell Warrant Shares under Rule 144. So long as the Warrant Shares are not registered under an effective registration statement, the Company further covenants that
      it will take such further action as the Holder may reasonably request and is within the Company’s control, all to the extent required from time to time to enable the Holder to sell such Warrant Shares without registration under the Securities Act
      within the limits of the exemptions provided by Rule 144.

    
      15

      
        

    

    

    

    SECTION 9.          Definitions. As used herein, the following terms shall have the following meanings.

    

    

    “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control
      with the Person specified.

    

    

    “Aggregate Exercise Price” has the meaning set forth in Section 2(a) hereof.

    

    

    “Aggregate Number” has the meaning set forth in the preamble hereto.

    

    

    “Allowed Delay” has the meaning set forth in Section 8(a) hereof.

    

    

    “Alternate Consideration” has the meaning set forth in Section 5(h) hereof.

    

    

    “Bloomberg” means Bloomberg Financial Markets (or a comparable reporting service of national reputation selected by the Company and reasonably acceptable to the Holder if Bloomberg Financial
      Markets is not then reporting sales prices of the Common Stock).

    

    

    “Bratton RRA” has the meaning set forth in Section 8(a)(i) hereof.

    

    

    “Business Day” means a day (other than a Saturday or Sunday) on which commercial banks are not authorized or required to close in New York City.

    

    

    “Cash Change of Control” has the meaning set forth in Section 5(g) hereof.

    

    

    “Change of Control” means any of the following, whether directly or indirectly and whether in one or a series of related transactions: (i) the sale, assignment, transfer, conveyance or other
      disposal of all or substantially all of the assets or all or a majority of the outstanding voting shares of capital stock of the Company, other than to any of the Permitted Holders, (ii) a purchase, tender or exchange offer accepted by the holders of
      a majority of the outstanding voting shares of capital stock of the Company or (iii) a “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in
      Rule 13d-3 under the Exchange Act), other than to any of the Permitted Holders, directly or indirectly, of a majority of the voting power of the capital stock of the Company including pursuant to any merger, consolidation or other business
      combination, other than any of the Permitted Holders; provided that for purposes of Section 5(g) any of the foregoing references to “a majority” of the voting power of the capital stock of the Company or “a majority” of the
      outstanding voting shares of capital stock of the Company shall be deemed to refer to “100% of” such voting power or voting shares, as the case may be.

    

    

    “Commission” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

    

    

    “Common Stock” means (i) the Company’s common stock, par value $0.001 per share, and (ii) any other capital stock into which such common stock is reclassified or reconstituted.

    

    

    “Common Stock Deemed Outstanding” has the meaning set forth in Section 5(a)(i) hereof.

    

    

    “Company” has the meaning set forth in the preamble hereto.

    
      16

      
        

    

    

    

    “Ex-Date” has the meaning set forth in Section 5(a)(i) hereof.

    

    

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

    

    

    “Exercise Amount” has the meaning set forth in Section 2(a) hereof.

    

    

    “Exercise Price” has the meaning set forth in the preamble hereto.

    

    

    “Expiration Date” has the meaning set forth in the preamble hereto.

    

    

    “Fair Market Value Per Share” means as of any date: (i) the last reported sale price or, if there are no sales, the last reported bid price of the Common Stock on the Business Day immediately
      prior to such date on the New York Stock Exchange, the NYSE American LLC, the NASDAQ Global Market, the NASDAQ Global Select Market or the Nasdaq Capital Market (or any of their respective successors) as reported by Bloomberg; (ii) if clause (i)
      above does not apply, the last sales price of the Common Stock in the over-the-counter market on the pink sheets or bulletin board for such security on the Business Day immediately prior to such date as reported by Bloomberg or, if there are no
      sales, the last reported bid price of the Common Stock on the Business Day immediately prior to the date of exercise as reported by Bloomberg; or (iii) if fair market value cannot be calculated as of such date on the basis of either clause (i) or
      clause (ii) above, the price determined in good faith by the Company’s board of directors or upon the advice of an independent investment banking, financial advisory or valuation firm or appraiser as selected by the Company’s board of directors.

    

    

    “Fair Value” means the fair value of any securities or other distributed property determined as follows:

    

    

    (i) in the case of securities listed on any United States national or regional securities exchange, the volume weighted average price (“VWAP”) of a single unit of such security in composite
      trading for the principal exchange on which such securities are listed for the 20 trading days ending on, but excluding, the date of valuation (or if the security has been listed for fewer than 20 trading days, the VWAP for such lesser period of
      time); or

    

    

    (ii) in all other cases, the fair value as of a date not earlier than 10 Business Days preceding the specified date as determined in good faith by the Company’s board of directors or upon the advice
      of an independent investment banking, financial advisory or valuation firm or appraiser as selected by the Company’s board of directors;

    

    

    provided, however, that notwithstanding the foregoing, if the Company’s board of directors determines in good faith that the application of clause (i) of this definition would
      result in a VWAP based on the trading prices of a thinly-traded security such that the price resulting therefrom may not represent an accurate measurement of the fair value of such security, the board of directors at its election may apply the
      provisions of clause (ii) of this definition in lieu of clause (i) with respect to the determination of the fair value of such security.

    
      17

      
        

    

    

    

    “Governmental Authority” means any nation, government, branch of power (whether executive, legislative or judicial), state, province or municipality or other political subdivision thereof or
      any entity exercising executive, legislative, judicial, monetary, regulatory or administrative functions of or pertaining to government, including, without limitation, regulatory authorities, governmental departments, agencies, commissions, bureaus,
      officials, ministers, courts, bodies, boards, tribunals and dispute settlement panels, and other law-making, rule-making or regulation-making organizations or entities of any state, territory, county, city or other political subdivision of the United
      States.

    

    

    “Holder” has the meaning set forth in the preamble hereto.

    

    

    “Issue Date” has the meaning set forth in the preamble hereto.

    

    

    “Laws” means, collectively, all international, foreign, federal, state, provincial, territorial, municipal and local statutes, treaties, rules, regulations, ordinances, codes and
      administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative
      orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority.

    

    

     “Notice of Exercise” has the meaning set forth in Section 2(a) hereof.

    

    

    “Offer Expiration Date” has the meaning set forth in Section 5(a)(iii) hereof.

    

    

    “Permitted Holders” means, at any time, each of Mr. Douglas Bratton, Bratton Capital Management L.P., MRX Partners, LLC, Monoline R.X., L.P., Monoline II R.X., L.P. and Monoline III R.X., L.P.

    

    

    “Person” means any individual, corporation, company, voluntary association, partnership, limited liability company, joint venture, trust, unincorporated organization or Governmental Authority
      or other entity of whatever nature.

    

    

    “Piggyback Registration Statement” has the meaning set forth in Section 8(b) hereof.

    

    

    “Principal Office” means the Company’s principal office as set forth in Section 14 hereof or such other principal office of the Company in the United States of America the address of
      which first shall have been set forth in a notice to the Holder.

    

    

    “Purchase Agreement” has the meaning set forth in the recitals hereto.

    

    

    “Registration Statement” has the meaning set forth in Section 8(a) hereof.

    

    

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

    

    

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

    
      18

      
        

    

    

    

    “Special Registration Statement” means (i) a registration statement relating to any employee benefit plan; (ii) with respect to any corporate reorganization or transaction under Rule 145
      promulgated under the Securities Act, any registration statement related solely to the issuance or resale of securities issued in such a transaction; (iii) a registration statement related solely to stock issued upon conversion of debt securities;
      (iv) any registration statement filed under Rule 462(b) promulgated under the Securities Act; or (v) any registration statement on Form S-4 or Form S-8 not contemplated by clauses (i) – (iv) hereof.

    

    

    “Trigger Event” has the meaning set forth in Section 5(c)(i) hereof.

    

    

    “Underwriter Cutback” has the meaning set forth in Section 8(c) hereof.

    

    

    “Warrant” has the meaning set forth in the preamble hereto.

    

    

    “Warrant Securities” means, collectively, this Warrant and the Warrant Shares.

    

    

    “Warrant Shares” means (i) the shares of Common Stock issued or issuable upon exercise of this Warrant in accordance with its terms and (ii) all other shares of the Company’s capital stock
      issued with respect to such shares by way of stock dividend, stock split or other reclassification or in connection with any merger, consolidation, recapitalization or other reorganization affecting the Company’s capital stock.

    

    

    SECTION 10.          Survival of Provisions. Upon the full exercise by the Holder of its rights to purchase
      Common Stock under this Warrant, all of the provisions of this Warrant shall terminate, other than the provisions of Sections 6-21 hereof, which shall expressly survive such exercise until the later of (a) the Expiration Date and (b) the time when
      the Holder no longer holds any Warrant Shares.

    

    

    SECTION 11.          Delays, Omissions and Indulgences. It is agreed that no delay or omission to exercise any
      right, power or remedy accruing to the Holder upon any breach or default of the Company under this Warrant shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence
      therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver,
      permit, consent or approval of any kind or character on the Holder’s part of any breach or default under this Warrant, or any waiver on the Holder’s part of any provisions or conditions of this Warrant, must be in writing and that all remedies under
      this Warrant, by Law or otherwise afforded to the Holder shall be cumulative and not alternative.

    

    

    SECTION 12.          Rights of Transferees. Subject to Section 6 hereof, the rights granted under this Warrant
      to the Holder shall pass to and inure to the benefit of all subsequent transferees of all or any portion of this Warrant (provided, that the Holder and any transferee shall hold such rights in proportion to
      their respective ownership of this Warrant and the Warrant Shares) until extinguished pursuant to the terms hereof.

    

    

    SECTION 13.          Captions. The section headings and other captions appearing herein are included solely for
      convenience of reference and are not intended to affect the interpretation of any provision of this Warrant.

    
      19

      
        

    

    

    

    SECTION 14.          Notices. All notices, requests, instructions, directions and other communications provided
      for herein (including any modifications of, or waivers, requests or consents under, this Warrant) shall be given or made in writing delivered to the applicable addresses specified below or at such other address as shall be designated by the Company
      or the Holder, as applicable, in a notice to the other. Except as otherwise provided in this Warrant, all such communications shall be deemed to have been duly given upon receipt of a legible copy thereof, in each case given or addressed as
      aforesaid.

    

    

    (a)          If to the Company:

    

    

    Aquestive Therapeutics, Inc.

    30 Technology Drive

    Warren, New Jersey 07059

    Attention: Chief Financial Officer & General Counsel

    Facsimile: 908-561-1209

    

    

    with a copy to:

    

    

    Dechert LLP

    1095 Avenue of the Americas

    New York, New York 10036

    Attention: David Rosenthal

    Facsimile: 212-698-3599

    

    

    (b)          if to the Holder:

    

    

    [        ]

    

    

    with a copy to:

    

    

    [        ]

    

    

    SECTION 15.          Successors and Assigns. This Warrant shall be binding upon and inure to the benefit of the
      parties hereto and their respective successors and permitted assigns, provided, that the Company shall have no right to assign its rights, or to delegate its obligations, hereunder without the prior written
      consent of the Holder. The Company shall not require the Holder to provide an opinion of counsel if any transfer by the Holder is to an Affiliate of the Holder; provided, that any such transferee is an
      “accredited investor” as defined in Regulation D promulgated under the Securities Act and the Holder and such transferee each complies in all respects with the applicable transfer procedures set forth in Section 6 hereof.

    

    

    SECTION 16.          Amendments. Neither this Warrant nor any term hereof may be amended, changed, waived,
      discharged or terminated without the prior written consent of the Holder and the Company to such action.

    

    

    SECTION 17.          Severability. If any provision hereof is found by a court to be invalid or unenforceable,
      to the fullest extent permitted by applicable Law the parties hereto agree that such invalidity or unenforceability shall not impair the validity or enforceability of any other provision hereof.

    

    

    SECTION 18.         Governing Law. This Warrant and the rights and obligations of the Holder and the Company
      hereunder shall be governed by, and construed in accordance with, the Law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the Laws of any other jurisdiction; provided, that Section 5-1401 of the New York General Obligations Law shall apply.

    
      20

      
        

    

    

    

    SECTION 19.        Entire Agreement. This Warrant, together with the Purchase Agreement and the other documents
      contemplated thereby, are intended by the parties as a final expression of their agreement and are intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained
      herein.

    

    

    SECTION 20.        Rules of Construction. Unless the context otherwise requires, “or” is not exclusive, and
      references to sections or subsections refer to sections or subsections of this Warrant. All pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.

    

    

    SECTION 21.         No Effect Upon Lending Relationship. Notwithstanding anything herein to the contrary,
      nothing contained in this Warrant shall affect, limit or impair the rights and remedies of the Holder or any of its Affiliates in its capacity as a lender to the Company pursuant to any agreement under which the Company has borrowed money from the
      Holder or any of its Affiliates, including, without limitation, the Purchase Agreement. Without limiting the generality of the foregoing, neither the Holder nor any Affiliate of the Holder, in exercising its rights as a lender, including making its
      decision on whether to foreclose on any collateral security, will have any duty to consider (a) its status or the status of any of its Affiliates as a direct or indirect equity holder of the Company, (b) the equity of the Company or (c) any duty it
      may have to any other direct or indirect equity holder of the Company, except as may be required by commercial Law applicable to creditors generally.

    

    

    {Remainder of Page Intentionally Left Blank}

    
      21

      
        

    

    

    

    IN WITNESS WHEREOF, the Company has caused this Warrant to be issued and executed in its corporate name by a duly authorized officer as of the date first
      written above.

    

    

    	 	
            AQUESTIVE THERAPEUTICS, INC.

          
	 	 	 
	 	 	 
	 	
            By:

          	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    Accepted and agreed:

    

    

    [                                            ]

    

    

    

    

    	
            By:

          	 	 
	 	
            Name:

          	 
	 	
            Title:

          	 

     

    

     {Signature Page to Warrant}

    

    
      
        

    

    
    

    

    EXHIBIT A

    

    

    Form of

    NOTICE OF EXERCISE

    

    

    	To:	
            Aquestive Therapeutics, Inc.

          

    30 Technology Drive

    Warren, New Jersey 07059

    Attention: Chief Financial Officer & General Counsel

    Facsimile: 908-561-1209

    

    

    1.          The undersigned, pursuant to the provisions of the attached Warrant, hereby elects to exercise this Warrant with respect to __________ shares of Common Stock (the “Exercise Amount”).

      Capitalized terms used but not otherwise defined herein have the meanings ascribed thereto in the attached Warrant.

    

    

    2.          The undersigned herewith tenders payment for such shares in the following manner (please check type, or types, of payment and indicate the portion of the Exercise Price to be paid by each
      type of payment):

    

    

    ______ Exercise for Cash

    ______ Cashless Exercise

    

    

    3.          Please issue a certificate or certificates representing the shares issuable in respect hereof under the terms of the attached Warrant, as follows:

    

    

    	 	 
	 	
            (Name of Record Holder/Transferee)

          

    

    

    and deliver such certificate or certificates to the following address:

    

    

    	 	 
	 	
            (Address of Record Holder/Transferee)

          

    

    

    4.          The undersigned represents that the aforesaid shares are being acquired for the account of the undersigned for investment purposes and not with a view to, or for resale in connection
      with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares.

    

    

    5.          If the Exercise Amount is less than all of the shares of Common Stock purchasable under the attached Warrant, please issue a new warrant representing the remaining balance of such shares,
      as follows:

    

    

    	 	 
	 	
            (Name of Record Holder/Transferee)

          

    

    

    and deliver such warrant to the following address:

    

    

    	 	 
	 	
            (Address of Record Holder/Transferee)

          

    

    

    	 	 
	 	
            (Signature)

          

    

    

    	 	 
	
            (Date)

          	 

    
      A-1

      
        

    

    
    

    

    EXHIBIT B

    

    

    Form of

    NOTICE OF ASSIGNMENT

    

    

    FOR VALUE RECEIVED, the Holder (the “Assignor”) hereby sells, assigns and transfers all of the rights of the undersigned Assignor under the attached Warrant with respect to the number of
      shares of common stock of Aquestive Therapeutics, Inc. (the “Company”) covered thereby set forth below, to the following “Assignee” and, in connection with such transfer, represents and warrants to the Company that the transfer is in
      compliance with Section 6 of the Warrant and applicable U.S. federal and state securities laws:

    

    

    	 	 
	
            (Name of Assignee)

          	 
	 	 
	 	 
	
            (Address of Assignee)

          	 
	 	 
	 	 
	
            (Number of Shares)

          	 
	 	 
	 	 
	
            (Dated)

          	 
	 	 
	 	 
	
            (Signature)

          	 

    

    

    ASSIGNEE ACKNOWLEDGMENT

    

    

    The undersigned Assignee acknowledges that it has reviewed the attached Warrant and by its signature below it hereby represents and warrants that it is an “accredited investor” as defined in Rule
      501(a) of Regulation D promulgated under the Securities Act of 1933, as amended, and agrees to be bound by the terms and conditions of the Warrant as of the date hereof, including Section 6 thereof.

    

    

    	
            By:

          	 	 
	 	
            Name:

          	 
	 	
            Title:

          	 
	 	
            Address:

          	 

    

    

  

  B-1

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