Document:

Exhibit 10.1

 

Representative’s Warrant

 

THIS WARRANT AND THE UNDERLYING SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “Securities
ACT”) OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION THEREFROM. 

 

This
Warrant is subject to restrictions on transfer and may not be sold, transferred, assigned, pledged, or hypothecated, or be the
subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition
of this Warrant or the Shares acquirable upon exercise hereof, other than in compliance with Rule 5110(g) of the Financial Industry
Regulatory Authority, Inc. and Section 7 hereof. 

 

WARRANT

 

To Subscribe for and Purchase

Shares of Common Stock of

 

CELCUITY
Inc.

 

Date: September 22, 2017

 

THIS CERTIFIES THAT,
for value received, Craig-Hallum Capital Group LLC, or its registered assigns (herein referred to as the “Purchaser”
or “holder”), is entitled to subscribe for and purchase from Celcuity Inc., a Delaware corporation (herein called
the “Company”), one-hundred thirty-eight thousand (138,000) shares (the “Shares”) of common
stock, par value $0.001 per share (the “Common Stock”), of the Company (subject to adjustment as noted below)
at the exercise price of $10.45 per Share (the “Warrant Purchase Price”) (subject to adjustment as noted below).
This Warrant may only be exercised during the Exercise Period specified herein. This Warrant has been issued pursuant to the Underwriting
Agreement, dated September 19, 2017, between the Company and the Purchaser as representative of the several underwriters listed
in Schedule I thereto, in connection with a public offering (the “Offering”) of 2,760,000 shares of Common Stock.

 

This Warrant is subject
to the following provisions, terms and conditions:

 

1.       The
Warrant exercise period (the “Exercise Period”) for this Warrant shall begin the effective date of the Offering
and shall end on the fifth (5th) anniversary of the effective date of the Offering. As used herein, the “effective
date of the Offering” means September 19, 2017.

 

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2.       The
rights represented by this Warrant may be exercised, in whole or in part, by the holder hereof as follows:

 

(a)                  The holder hereof shall deliver to the Company written notice of exercise of this Warrant and in connection therewith shall
surrender this Warrant (properly endorsed if required) at the principal office of the Company and pay the Warrant Purchase
Price for such Shares as provided for herein.

 

(b)                  The holder
hereof shall pay the Warrant Purchase Price (i) in immediately available funds or (ii) by “cashless exercise”, in which
event the Company shall issue to the holder hereof a number of Shares determined as follows:

 

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

 

where:

 

X = the number of Shares
to be issued to the holder.

 

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

 

A = the
fair market value of one Share at the time the “cashless exercise” election is made.

 

B = the
Warrant Purchase Price then in effect for the Shares at the “cashless exercise” election is made.

 

For purposes of this Warrant, the
fair market value of one Share as of a particular date shall be determined as follows: (i) if the Common Stock is traded on a U.S.
national securities exchange, the value shall be deemed to be the average of the closing prices of the Common Stock on such exchange
over the 10-Trading Day period ending on the Trading Day prior to the net exercise election; (ii) if clause (i) is not applicable,
the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) of the Common Stock on
the principal securities exchange or securities market on which the Common Stock trades over the 10-Trading Day period ending on
the Trading Day prior to the net exercise election; and (iii) if none of the foregoing is applicable, the value shall be the fair
market value of one share of Common Stock mutually agreed upon by the holder and the Company; provided, that if the Company and
the holder are unable to agree upon the fair market value of a Share, then the board of directors of the Company shall use its
good faith judgment to determine the fair market value, and such determination shall be binding upon all parties absent demonstrable
error.

 

For purposes of this Warrant, “Trading
Day” means any day on which the Common Stock is traded on a U.S. stock exchange or, if inapplicable, the principal securities
exchange or securities market on which the Common Stock is then traded.

 

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(c)                  Upon exercise
of this Warrant, the Company shall promptly (but in no event later than three Trading Days after the date this Warrant is exercised
in accordance with its terms) issue or cause to be issued and cause to be delivered to or upon the written order of the holder
and in such name or names as the holder may designate (provided that, if the holder directs the Company to deliver a certificate
for the Shares in a name other than that of the holder or an affiliate (as defined in Rule 405 under the Securities Act of 1933,
as amended (the “Securities Act”)) of the holder, it shall deliver to the Company on the date of exercise an
opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such Shares in such other name may
be made pursuant to an available exemption from the registration requirements of the Securities Act and all applicable state securities
or blue sky laws), a certificate for the Shares issuable upon such exercise or credit for such Shares through the facilities of
The Depository Trust Company (“DTC”) to the account designated by the holder (with any restrictive legends required
by applicable securities laws). The form of delivery of the Shares acquired upon exercise will be at the election of the holder,
subject to the other terms of this Warrant. The holder, or any person permissibly so designated by the holder to receive the Shares
acquired upon exercise hereof, shall be deemed to have become the holder of record of such Shares as of the date notice of exercise
of payment of the applicable Warrant Purchase Price is made in accordance with the terms hereof.

 

(d)                  If by the
fifth Trading Day after the date this Warrant is exercised in accordance with this Section 2 the Company fails to deliver the required
number of Shares in the manner required pursuant to Section 2(c), then, in addition to any other remedy the holder may have
at law or in equity (including a decree of specific performance or injunctive relief), the holder hereof will have the right to
rescind such exercise.

 

(e)                  In the event that this Warrant has not been exercised prior to the end of the Exercise Period and the fair market value of one
Share as determined in accordance with the provisions hereof exceeds the Warrant Purchase Price on the last day of the Exercise
Period, on such date this Warrant will be automatically exercised pursuant to the cashless exercise provisions set forth in Section
2(b); provided, that the holder hereof, upon the request of the Company, must surrender to the Company of this Warrant within 30
days of a request for delivery of thereof by the Company. If the holder hereof does not surrender this Warrant within such time
period, this Warrant will be deemed to not have been exercised under this Section 2(e) and will terminate and no longer be exercisable.

 

3.       The Company represents and warrants that this Warrant has been duly authorized by all necessary corporate action, has been duly
executed and delivered and is a legal and binding obligation of the Company, enforceable against the Company in accordance with
the terms of this Warrant, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting the rights of creditors generally and subject to general principles of equity. The Company covenants and agrees that
all Shares which may be issued upon the exercise of the rights represented by this Warrant according to the terms hereof have been
duly authorized and will, upon issuance and payment therefor, be validly issued and fully paid. The Company further covenants and
agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times
have authorized, and reserved for the purpose of issue upon exercise of the subscription rights evidenced by this Warrant, a sufficient
number of its shares of Common Stock to provide for the exercise of the rights represented by this Warrant, free from preemptive
rights or other actual contingent purchase rights other than those held by a holder of this Warrant (as a result of holding this
Warrant).

 

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4.       The Company will pay any documentary stamp taxes attributable to the issuance of Shares upon the exercise of this Warrant; provided,
however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in
the registration of any certificates for Warrants, or Shares issued upon exercise of this Warrant, in a name other than that of
the Purchaser. The Purchaser shall be responsible for all other tax liability that may arise as a result of holding or transferring
this Warrant or receiving Shares upon exercise hereof.

 

5.       The above provisions are, however, subject to the following:

 

(a)                  The Warrant
Purchase Price shall, from and after the date of issuance of this Warrant, be subject to adjustment from time to time as hereinafter
provided. Upon each adjustment of the Warrant Purchase Price, the holder of this Warrant shall thereafter be entitled to purchase,
at the Warrant Purchase Price resulting from such adjustment, the number of Shares obtained by multiplying the Warrant Purchase
Price in effect immediately prior to such adjustment by the number of Shares purchasable pursuant hereto immediately prior to such
adjustment and dividing the product thereof by the Warrant Purchase Price resulting from such adjustment.

 

(b)                  In case the
Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares, the Warrant Purchase
Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding
shares of Common Stock shall be combined into a smaller number of shares, the Warrant Purchase Price in effect immediately prior
to such combination shall be proportionately increased.

 

(c)                  If any capital
reorganization or reclassification of the capital stock of the Company, shall be effected in such a way that holders of Common
Stock shall be entitled to receive stock or securities with respect to or in exchange for Common Stock, then, as a condition of
such reorganization, reclassification or consolidation, lawful and adequate provision shall be made whereby the holder hereof shall
thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in this Warrant and
in lieu of the Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such
shares of stock or securities as may be issued or payable with respect to or in exchange for a number of Shares equal to the number
of Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby had such reorganization,
reclassification or consolidation not taken place, and in any such case appropriate provision shall be made with respect to the
rights and interests of the holder of this Warrant to the end that the provisions hereof (including without limitation provisions
for adjustments of the warrant purchase price and of the number of shares purchasable upon the exercise of this Warrant) shall
thereafter be applicable, as nearly as may be, in relation to any shares of stock or securities thereafter deliverable upon the
exercise hereof.

 

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(d)                  Upon any adjustment
of the Warrant Purchase Price or any adjustment of any material terms hereof, then and in each such case an officer of the Company
shall, as soon as practicable after the occurrence of any event that requires an adjustment or readjustment, give signed written
notice thereof, by first–class mail, postage prepaid, addressed to the registered holder of this Warrant at the address of
such holder as shown on the books of the Company, which notice shall state the Warrant Purchase Price resulting from such adjustment,
any material change in the terms of the Warrant, and the increase or decrease, if any, in the number of Shares purchasable at such
price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which
such calculation is based.

 

(e)                  If at any
time during the Exercise Period:

 

(i)       there shall be any capital reorganization, or reclassification of the capital stock of the Company; or

 

(ii)      there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

then, in any
one or more of said cases, the Company shall give written notice, by first–class mail, postage prepaid, addressed to the
registered holder of this Warrant at the address of such holder as shown on the books of the Company, of the date on which (A)
the books of the Company shall close or a record shall be taken for such distribution or subscription rights, or (B) such reorganization,
reclassification or consolidation, dissolution, liquidation or winding up, or conversion or redemption shall take place, as the
case may be. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in such
distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, dissolution, liquidation or winding up, or conversion or redemption,
as the case may be. Such written notice shall be given at least 20 days prior to the action in question and not less than 20 days
prior to the record date or the date on which the Company’s transfer books are closed in respect thereto.

 

(f)                  If any event
occurs as to which in the opinion of the Board of Directors of the Company the other provisions of this Section 5 are not strictly
applicable or if strictly applicable would not fairly protect the purchase rights of the holder of this Warrant or of the Common
Stock in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make an adjustment
in the application of such provisions, in accordance with such essential intent and principles, so as to protect such purchase
rights as aforesaid.

 

6.       This
Warrant shall not entitle the holder hereof to any voting rights or other rights as a shareholder of the Company.

 

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7.       This
Warrant is exchangeable, upon the surrender hereof by the holder hereof at the principal office of the Company, for new Warrants
of like tenor representing in the aggregate the right to subscribe for and purchase the number of shares which may be subscribed
for and purchased hereunder, each of such new Warrants to represent the right to subscribe for and purchase such number of shares
as shall be designated by said holder hereof at the time of such surrender. Subject to compliance with applicable securities laws
and the other terms of this Warrant, this Warrant may be assigned or transferred by the holder and this Warrant shall be binding
on and inure to the benefit of the parties hereto and their respective transferees, successors and assigns. Notwithstanding the
foregoing, pursuant to Rule 5110(g) of the Financial Industry Regulatory Authority, Inc. (“FINRA”), this Warrant
shall not be sold during the Offering, or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging,
short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the
Shares acquirable upon exercise hereof, by any person for a period of 180 days immediately following the effective date of the
Offering, except as provided in paragraph (g)(2) of Rule 5110(g) of the FINRA.

 

8.       Each
certificate for the securities purchased under this Warrant shall bear a legend as follows unless such securities have been registered
under the Securities Act of 1933, as amended (the “Act”):

 

“The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act
and applicable state law which, in the opinion of counsel to the Company, is available.”

 

The securities evidenced by this Warrant
shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities
may be transferred pursuant to an exemption from registration under the Act and applicable state securities laws, the availability
of which is established to the reasonable satisfaction of the counsel of the Company, or (ii) a registration statement relating
to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange
Commission and compliance with applicable state securities law has been established.

 

9.       The
Company will not be required upon the exercise of this Warrant to issue fractions of Shares, but may, at its option, either (a)
purchase such fraction for an amount in cash equal to the current value of such fraction computed on the basis of the closing
market price of the Common Stock as quoted on the principal exchange or trading facility on which the Common Stock is traded on
the Trading Day immediately preceding the day upon which this Warrant was surrendered for exercise in accordance with Section
2 hereof, or (b) issue the required Share. By accepting this Warrant, the holder hereof expressly waives any right to receive
any fractional share upon exercise of a Warrant, except as expressly provided in this Section 9.

 

10.     If
this Warrant is exercised for less than all of the then-current number of Shares purchasable hereunder, then the Company shall,
concurrently with the issue of the Shares purchased by the holder hereof upon such exercise in accordance with Section 2, issue
a new warrant exercisable for the remaining number of Shares purchasable under this Warrant.

 

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11.     Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and security reasonably satisfactory to it, the Company shall execute and deliver a new warrant of like tenor as the Warrant so
lost, stolen, destroyed or mutilated.

 

12.     This
Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect
to conflict of laws principles thereof. The Company and the holder agree that the prevailing party(ies) in any action or proceeding
arising out of or relating to this Warrant shall be entitled to recover from the other party(ies) all of its reasonable attorneys’
fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor.

 

13.     All
modifications or amendments of this Warrant shall require the written consent of and be signed by the party against whom enforcement
of the modification or amendment is sought.

 

14.     This
Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Warrant) constitutes
the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties, oral and written, with respect to the subject matter hereof.

 

15.     This
Warrant shall inure solely to the benefit of and shall be binding upon, the holder and the Company and their permitted assignees,
respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Warrant or any provisions herein contained.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
Celcuity Inc. has caused this Warrant to be signed by its duly authorized officer and this Warrant to be dated as of the date set
forth above.

  

 

	 	CELCUITY Inc.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Brian F. Sullivan	 
	 	Name: Brian F. Sullivan	 
	 	Title: Chief Executive Officer	 

 

 

 

 

 

	Acknowledged and agreed:	 
	 	 	 
	CRAIG-HALLUM CAPITAL GROUP LLC	 
	 	 	 
	 	 	 
	By:	/s/ Kevin Harris	 
	Name:	 Kevin Harris	 
	Title:	Managing Partner	 

 

    
[Signature Page to Representative’s Warrant]

     

    

 

SUBSCRIPTION FORM

 

To be Executed by the Holder of this
Warrant if such Holder

Desires to Exercise this Warrant in Whole or in Part

 

To:Celcuity Inc. (the “Company”)

 

The undersigned
___________________________________

 

 

Please insert Social Security or other

identifying number of Subscriber:

 

_______________________________

 

hereby irrevocably elects to exercise the
right of purchase represented by this Warrant for, and to purchase thereunder, ___________ shares of Common Stock (the “Shares”)
provided for therein.

 

Payment of the Warrant Purchase Price for
the Shares shall take the form of [Check the applicable box below]:

 

		 ̈	Immediately available U.S. funds; or

 

		 ̈	the cancellation of such number of Shares as is necessary to satisfy the Warrant Purchase Price
with respect to the exercise of the number of Shares set forth above in accordance with the formula set forth in Section 2(b) of
the Warrant.

 

The undersigned requests that such Shares
be registered in the name of the undersigned or in such other name specified below:

 

Name: _______________________________________________________________________

 

The Shares shall be delivered as follows:

 

       

 

 

 

and, if such number of Shares does not
constitute all shares purchasable under the Warrant, that a new Warrant for the balance remaining of such shares be registered
in the name of, and delivered to, the undersigned at the address stated above.

 

Unless the undersigned has selected the
“cashless exercise” option provided for in Section 2(b) of the Warrant, the undersigned hereby represents and warrants
that the undersigned is acquiring the Shares for its own account for investment purposes only, and not for resale or with a view
to distribution of such shares or any part thereof.

 

[Signature Page Follows]

 

     

     

    

 

	Dated:  	   	 

 

	Name of Holder: 

 	 	 

 

	Signature 

	 	 

 

	TitleExhibit 10.2

 

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE DISTRIBUTED FOR VALUE UNLESS THERE IS
AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT, OFFER, PLEDGE OR OTHER DISTRIBUTION FOR VALUE IS
EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

 

CELCUITY INC.

a Delaware corporation

 

WARRANT TO PURCHASE COMMON STOCK

 

	Warrant No.:	CSW-__
	Name of Holder:	___________________________________
	Warrant Issue Date:	September 22, 2017
	No. of Warrant Shares:	_______________
	Warrant Exercise Price:	$9.50 per Share
	Aggregate Warrant 

Exercise Price:	
         

        $___________

	Expiration Date:	September 22, 2024

 

THIS WARRANT CERTIFIES
THAT, for good and valuable consideration, the Holder named above, or its registered assigns, is entitled to subscribe for and
purchase from Celcuity Inc., a Delaware corporation, at any time after the date hereof up to and including 5:00 p.m. Minneapolis,
Minnesota time on the Expiration Date set forth above, the number of fully paid and non-assessable Warrant Shares at the Warrant
Exercise Price set forth above, all subject to the terms and conditions set forth in this Warrant. The Warrant Exercise Price and
the number of Warrant Shares are subject to adjustment in accordance with the anti-dilution provisions
of this Warrant.

 

1.       Definitions.
Capitalized terms not defined elsewhere in this Warrant shall have the meanings set forth below.

 

(a)       “Company”
means Celcuity Inc., a Delaware corporation, or any successor entity resulting from a merger or consolidation of the Company with
another limited liability company, corporation or other entity or a reorganization or conversion of the Company into another entity.

 

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(b)       “Holder”
means the Holder named above, any party who acquires all or a part of this Warrant as a registered transferee of the Holder, or
any record holder or holders of Warrant Shares issued upon exercise, whether in whole or in part, of this Warrant.

 

(c)       “Shares”
means shares of Common Stock, par value $0.001, of the Company, subject to adjustment as provided in Section 5.

 

(d)       “Warrant
Shares” means the Shares that may be acquired upon exercise of this Warrant.

 

2.       Exercise.
Subject to the provisions of Section 2(b) hereof, the rights represented by this Warrant may be exercised by the Holder hereof,
in whole or in part (but not as to a fractional Warrant Share), by written notice of exercise (in the form attached hereto) delivered
to the Company at its principal office prior to the Expiration Date and accompanied or preceded by the surrender of this Warrant
and a check in payment of the aggregate Warrant Exercise Price for the Warrant Shares purchased upon such exercise.

 

(a)       The
Company agrees that the Warrant Shares purchased upon exercise of this Warrant shall be and are deemed to be issued to the Holder
as of the close of business on the date on which this Warrant shall have been surrendered and the payment made for such Warrant
Shares as aforesaid. Subject to the provisions of Section 2(b), certificates for the Warrant Shares so purchased shall be
delivered to the Holder within a reasonable time, not exceeding fifteen (15) days after the rights represented by this Warrant
shall have been so exercised, and, unless this Warrant has expired, a new Warrant representing the right to purchase the number
of Warrant Shares, if any, with respect to which this Warrant shall not then have been exercised shall also be delivered to the
Holder within such time.

 

(b)       Notwithstanding
the foregoing, the Company shall not be required to deliver any certificate for Warrant Shares upon exercise of this Warrant except
in accordance with exemptions from the applicable securities registration requirements or effective registrations under applicable
securities laws. The Holder exercising this Warrant shall execute such documents and make such representations, warranties and
agreements as may be required to comply with the exemptions relied upon by the Company for the issuance of the Warrant Shares.

 

3.       Exchange
and Replacement. Subject to Sections 2 and 7 hereof, this Warrant is exchangeable upon the surrender hereof by the Holder
to the Company at its principal office for new Warrants of like tenor and date representing in the aggregate the right to purchase
the number of Warrant Shares purchasable hereunder, each of such new Warrants to represent the right to purchase such number of
Warrant Shares (not to exceed the aggregate total number purchasable hereunder) as shall be designated by the Holder at the time
of such surrender. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction, or mutilation
of this Warrant, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender
and cancellation of this Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor, in lieu of this
Warrant; provided, however, that if the Agent shall be such Holder, an agreement of indemnity by such Holder shall be sufficient
for all purposes of this Section 3. This Warrant shall be promptly canceled by the Company upon the surrender hereof in connection
with any exchange or replacement.

 

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4.       Covenants
of the Company. The Company covenants and agrees that all Warrant Shares will, upon issuance, be duly authorized and issued,
fully paid, non-assessable, and free from all taxes, liens, and charges with respect to the issue thereof except for all taxes,
liens and charges imposed by the Holder. The Company further covenants and agrees that during the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized and reserved for the purpose of issue
upon exercise of the subscription rights evidenced by this Warrant a sufficient number of Shares to provide for the exercise of
the rights represented by this Warrant.

 

5.       Anti-dilution
Adjustments. The provisions of this Warrant are subject to adjustment as follows:

 

(a)       Subdivision
or Combination of Warrant Shares. If the Company at any time after the Warrant Issue Date subdivides or combines the outstanding
Shares, the Warrant Exercise Price shall be decreased, in the case of a subdivision, or increased, in the case of a combination,
in the same proportion as the Shares are subdivided or combined, effective automatically as of the date the Company shall take
a record of the holders of its Shares for the purpose of the subdivision or combination (or if no such record is taken, as of the
effectiveness of the subdivision or combination).

 

(b)       Distributions
in Shares. If the Company at any time makes a distribution to holders of Shares payable in the same Shares, or fixes a record
date for the determination of holders of Shares entitled to receive a distribution payable in the same Shares, the Warrant Exercise
Price shall be decreased by multiplying it by a fraction, (A) the numerator of which shall be the total number of Shares outstanding
immediately prior to such distribution, and (B) the denominator of which shall be the total number of Shares outstanding immediately
after such distribution (plus, if the Company paid cash instead of fractional Shares otherwise issuable in such distribution, the
number of additional Shares which would have been outstanding had the Company issued fractional Shares instead of cash), effective
automatically as of the date the Company shall take a record of the holders of its Shares for the purpose of receiving such distribution
(or if no such record is taken, as of the effectiveness of such distribution).

 

(c)       Reclassification,
Consolidation or Merger. If (1) at any time, as a result of (A) a capital reorganization or reclassification (other
than a subdivision, combination or distribution which gives rise to adjustment of the Warrant Exercise Price pursuant to Section 5(a)
or Section 5(b) above); or (B) a merger or consolidation of the Company with another corporation, partnership, limited
liability company or other entity (whether or not the Company is the surviving entity), the class or series of stock in the Company
issuable upon the exercise of this Warrant shall be changed into or exchanged for the same or a different number of shares of any
class or classes of stock in the Company or any class or classes of stock or other equity interest in any other corporation, partnership,
limited liability company or other entity, or other securities convertible into such stock or equity interests, then (2) as
a part of such reorganization, reclassification, merger or consolidation, appropriate adjustments shall be made in the terms of
this Warrant so that (y) the Holder shall thereafter be entitled to receive, upon exercise of this Warrant, the kind and amount
of stock in the Company, shares of stock, other equity interests, other securities, money and property which the Holder would have
received at the time of such capital reorganization, reclassification, merger or consolidation, if the Holder had exercised its
right under this Warrant to purchase Warrant Shares immediately prior to such capital reorganization, reclassification, merger
or consolidation, and (z) this Warrant shall thereafter be adjusted on terms as nearly equivalent as may be practicable to
the adjustments heretofore provided in this Section 5. The provision of this Section 5(c) shall similarly apply to successive
capital reorganizations, reclassifications, mergers, and consolidations.

 

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(d)       Liquidating
Distributions, etc. If the Company, at any time while this Warrant is outstanding, shall make a distribution of its assets
to the holders of its Shares as a distribution in liquidation or partial liquidation or by way of return of capital, the Holder
shall, upon exercise of the Holder’s rights hereunder and payment of the Warrant Exercise Price, both in accordance with
Section 2 hereof, be entitled to receive, in addition to the number of Warrant Shares receivable upon such exercise, the assets
that would have been payable to the Holder as owner of that number of Warrant Shares had the Holder been a holder of record of
such Warrant Shares on the record date for such distribution; and an appropriate provision therefor shall be made a part of any
such distribution in accordance with the plan for such distribution.

 

(e)       Other
Action Affecting Shares. If at any time the Company takes any action affecting its Shares, other than an action described in
any of Sections 5(a) through 5(d) above which, in the opinion of the Company’s Board of Directors, would have an adverse
effect upon the rights of the Holder to purchase Warrant Shares, then the Warrant Exercise Price or the kind or amount of securities
issuable upon the exercise of this Warrant, or both, shall be adjusted in such manner and at such time as the Board may in good
faith determine to be equitable in the circumstances.

 

(f)       Adjustment
of Number of Warrant Shares. Upon each adjustment to the Warrant Exercise Price pursuant to Section 5(a) or Section 5(b)
above, the number of Warrant Shares purchasable hereunder shall be adjusted (including any fractions of such Warrant Shares) by
multiplying such number by a fraction, the numerator of which shall be the Warrant Exercise Price immediately prior to such adjustment
and the denominator of which shall be the Warrant Exercise Price immediately thereafter.

 

(g)       Notice
of Adjustment Events. Whenever the Company contemplates the occurrence of an event which would give rise to adjustments under
this Section 5, the Company shall mail to the Warrant Holder, at least fifteen (15) days prior to the record date with respect
to such event or, if no record date shall be established, at least fifteen (15) days prior to such event, a notice specifying (i) the
nature of the contemplated event, (ii) the date on which any such record is to be taken for the purpose of such event, (iii) the
date on which such event is expected to become effective, and (iv) the time, if any is to be fixed, when the holders of record
of Shares interest (or other securities) shall be entitled to exchange their Shares (or other securities) for securities or other
property deliverable in connection with such event.

 

(h)       Notice
of Adjustments. Whenever the Warrant Exercise Price or the kind or amount of securities issuable upon the exercise of this
Warrant, or both, shall be adjusted pursuant to this Section 5, the Company shall prepare a written notice of such adjustments,
setting forth in reasonable detail the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment
was calculated, and the Warrant Exercise Price and the kind and amount of securities issuable upon the exercise of this Warrant
after giving effect to such adjustment, and shall mail such notice (by first class mail postage prepaid) to the Holder promptly
after each adjustment.

 

    4 

     

    

 

6.       No
Rights or Obligations as a Shareholder. Nothing contained in this Warrant shall be construed as imposing any obligation on
the Holder to purchase any securities of the Company, or as conferring upon the Holder any voting rights or other rights as a shareholder
of the Company or as imposing on the Holder any obligations as a shareholder of the Company, until this Warrant is actually exercised.

 

7.       Notice
of Transfer of Warrant or Resale of the Warrant Shares.

 

(a)       Subject
to the restrictions on sale, assignment, hypothecation, or other transfer set forth in Section 2(b) hereof, the Holder, by
acceptance of this Warrant, agrees to give written notice to the Company, before transferring this Warrant or any Warrant Shares,
of such Holder’s intention to do so, describing briefly the manner of any proposed transfer. Promptly upon receiving such
written notice, the Company shall present copies thereof to the Company’s counsel. If in the opinion of such counsel the
proposed transfer may be effected without registration or qualification (under any federal or state securities laws), the Company,
as promptly as practicable, shall notify the Holder of such opinion, whereupon the Holder shall be entitled to transfer this Warrant
or to dispose of Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice
delivered by the Holder to the Company; provided that an appropriate legend may be endorsed on this Warrant or the certificates
for such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel to the Company
and satisfactory to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act of
1933, as amended, and applicable state securities laws; and provided further that the Holder and prospective transferee or purchaser
shall execute such documents and make such representations, warranties, and agreements as may be required to comply with the exemptions
relied upon by the Company for the transfer or disposition of the Warrant or Warrant Shares.

 

(b)       If
in the opinion of Company’s counsel the proposed transfer or disposition of this Warrant or any Warrant Shares described
in the written notice given pursuant to this Section 7 may not be effected without registration or qualification of such transfer
or disposition under applicable securities laws, the Company shall promptly give written notice thereof to the Holder, and the
Holder will limit its activities in respect to such transfer or disposition to such activities as, in the opinion of such counsel,
are permitted by law.

 

8.       Legends.
The certificates representing any Warrant Shares issued upon exercise of this Warrant shall bear a legend containing substantially
the following language:

 

“The
Shares represented by this Certificate have been issued without registration under the Securities Act of 1933, and no transfer
of them will be made by the Company unless done pursuant to an effective registration statement under the Securities Act of 1933,
as amended, and under appropriate state laws, or there is presented to the Company an opinion of counsel satisfactory to it to
the effect that such registration is not required.

 

9.       Miscellaneous.

 

(a)       The
representations, warranties and agreements herein contained shall survive the exercise of this Warrant. This Warrant shall be interpreted
under the laws of the State of Minnesota.

 

    5 

     

    

 

(b)       All
Shares or other securities issued upon the exercise of the Warrant shall be validly issued, fully paid and non-assessable, and
the Company will pay all taxes due and payable by the issuer in respect of the issuance thereof.

 

(c)       Neither
this Warrant nor any term hereof may be changed, waived, discharged or terminated orally but only by an instrument in writing signed
by the party against which enforcement of the change, waiver, discharge or termination is sought.

 

IN WITNESS WHEREOF,
Celcuity Inc. has caused this Warrant to be signed by its duly authorized officer as of the Warrant Issue Date set forth above.

 

	 	CELCUITY INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	   Brian F. Sullivan	 
	 	Its:	   Chief Executive Officer	 

  

    6 

     

    

 

NOTICE OF EXERCISE OF WARRANT

 

To be signed
by the registered Holder in order to exercise the Warrant

 

 

TO:CELCUITY INC.

 

The undersigned Holder
hereby irrevocably elects to exercise the attached Warrant to purchase for cash __________________ of the Warrant Shares issuable
upon the exercise of such Warrant, and requests that certificates for such Warrant Shares (together with a new Warrant to purchase
the number of Warrant Shares, if any, with respect to which this Warrant is not exercised) be issued in the name of the following
person:

 

 

		 	 	 
	 	 	 	Name in which Shares shall be registered
	 	 	 	(please print)
	 	 	 	 
		 	 	 
	 	 	 	Social security or tax identification number
	 	 	 	 
	 	 	 	Address:
	 	 	 	 
		 	 	 
	 	 	 	 
		 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Dated:		 	
	 	 	 	Signature of Holder*
	 	 	 	 
		 	 	 
	 	 	 	Name of Holder (please print)
	 	 	 	 
		 	 	 
	 	 	 	Title of signatory (if signing for an entity)

 

 

		*	The signature on this Notice of Exercise of Warrant must
correspond to the name as written upon the face of the Warrant in every particular without alteration or enlargement or any change
whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, please indicate your position(s) and
title(s) with such entity.

 

    7 

     

    

 

ASSIGNMENT FORM

 

To be signed only upon authorized transfer
of Warrants.

 

 

TO:CELCUITY INC.

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns, and transfers unto ________________________________________________________________ the
right to purchase the securities of Celcuity Inc. to which the within Warrant relates and appoints ____________________________________________
as attorney-in-fact, with full power of substitution in the premises, to transfer said right on the books of Celcuity Inc..

 

 

	Dated:		 	
	 	 	 	Signature of Holder*
	 	 	 	 
		 	 	 
	 	 	 	Name of Holder (please print)
	 	 	 	 
		 	 	 
	 	 	 	Title of signatory (if signing for an entity)
	 	 	 	 
	 	 	 	 
	 	 	 	Address of transferee:
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

		*	The signature on this Assignment Form must correspond
to the name as written upon the face of the Warrant in every particular without alteration or enlargement or any change whatsoever.
When signing on behalf of a corporation, partnership, trust or other entity, please indicate your position(s) and title(s) with
such entity.

 

    8

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