Document:

Exhibit 4.7

 

COMMON SHARE PURCHASE WARRANT

 

AURIS
MEDICAL holding ag

 

	Warrant Shares: [_______]	Initial Exercise Date: [_______], 2018
	 	Issue Date: [_______], 2018

 

THIS COMMON SHARE PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on [_______]1
(the “Termination Date”) but not thereafter, to subscribe for and purchase from Auris Medical Holding AG, a
company established in Switzerland (the “Company”), up to [______] (as subject to adjustment hereunder, the
“Warrant Shares”) of registered common shares, nominal value CHF 0.02 per share (each, a “Common Share”).
The purchase price of one Common Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.           Definitions.
The following terms, as used herein, have the following meanings:

 

“Accredited Investor”
has the meaning set forth in Rule 501 of Regulation D promulgated under the Securities Act.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

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

 

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

 

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

 

“Market Price”
of a Common Share on any date shall mean the arithmetic mean of the VWAP on each of the five (5) consecutive Trading Days immediately
preceding such date. The Market Price shall be appropriately adjusted for any stock dividend, stock split, stock combination or
other similar transaction during such period.

 

 

1 Insert the date
that is the [fifth] anniversary of the Initial Exercise Date, provided that, if such date is not a Trading Day, insert the immediately
following Trading Day.

 

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“Person” means
an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

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

 

“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.

 

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

 

“Transfer Agent”
means the transfer agent for the Company’s Common Shares.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Shares are then
listed or quoted on a Trading Market, the daily volume weighted average price per share of the Common Shares for such date (or
the nearest preceding date) on the Trading Market on which the Common Shares are then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)). If VWAP cannot be calculated
on such date on any of the foregoing bases, the VWAP on such date shall be the fair market value per share of the Common Shares
as mutually determined by the Company and the Holder.

 

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Section 2.           Exercise.

 

a)         Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or (subject to the limitation
set forth in this paragraph 2(a)) in part, at any time or times on or after the Initial Exercise Date and on or before the Termination
Date by (i) delivery to the Company (or such other office, agency or bank of the Company as it may designate by notice in writing
to the registered Holder at the address of the Holder appearing on the books of the Company) of the duly executed original of
the Notice of Exercise in the form attached hereto as Exhibit A and (ii) payment of the aggregate Exercise Price for the Common
Shares specified in such Notice of Exercise in cash by wire transfer to the bank account in Switzerland as specified in the Notice
of Exercise (or to any other bank account in Switzerland as specified by the Company) (the “Bank Account”);
provided, that any single exercise shall be for Common Shares with an aggregate Exercise Price of no less than CHF 25,000
(or if the Holder’s purchase rights hereunder shall then be for Common Shares with an aggregate Exercise Price of less than
CHF 25,000, such exercise shall be for all Common Shares then subject to purchase hereunder). At the Holder’s election,
such Holder may deposit an executed Notice of Exercise in escrow with the Company and may thereafter provide irrevocable instructions
to the Company with information necessary to complete such Notice of Exercise via email sent to LegalAdmin@aurismedical.com.
The Company will complete such Notice of Exercise with such information and thereafter release such Notice of Exercise from escrow
such that the Notice of Exercise shall be delivered to the Company. Within one (1) Trading Day following the date that a Notice
of Exercise is sent to the Company or, if the Notice of Exercise is held in escrow by the Company, the date that the relevant
instruction to complete the Notice of Exercise is sent via email to the Company, the Holder shall deliver the aggregate Exercise
Price for the Common Shares specified in such Notice of Exercise to the Bank Account. No medallion guarantee (or other type of
guarantee or notarization) of any Notice of Exercise form shall be required. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the
Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this
Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to
the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal
to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of
Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within
one (1) Business Day of receipt of such notice. If there is no effective registration statement under the Securities Act permitting
the issuance of Warrant Shares upon exercise of this Warrant, a Holder may not exercise the purchase rights represented by this
Warrant unless such Holder, at the time of such exercise, is an Accredited Investor and such Holder, at the Company’s request,
represents the same to the Company in writing. The Holder and any assignee, by acceptance of this Warrant, acknowledge and
agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder,
the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face
hereof.

 

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b)         Exercise
Price. The exercise price per Common Share under this Warrant shall be CHF [_____], subject to adjustment hereunder
(the “Exercise Price”). In no event shall the Exercise Price be adjusted below the nominal value (or U.S. dollar
equivalent) of the Common Shares, which is CHF 0.02 as of the Initial Exercise Date.

 

c)         If
an executed Notice of Exercise is delivered to the Company in accordance with the provisions of Section 2(a) at a time when there
is no effective registration statement registering, or the prospectus contained therein is not available for, the issuance of the
Warrant Shares to the Holder (“Registration Unavailability Period”), then, (i) the Company shall pay to the
Holder, in cash, an amount equal to the product of (A-B) and (X) and (ii) the number of Warrant Shares available for purchase hereunder
shall be decreased by an amount equal to (X), where:

 

(A) = the last
VWAP immediately preceding the time of delivery of the executed Notice of Exercise during the Registration Unavailability Period
(to clarify, the “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event
the Notice of Exercise is delivered at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used
in this calculation);

 

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

 

(X) = the number
of Warrant Shares that would be issuable upon exercise of this Warrant pursuant to the executed Notice of Exercise delivered during
the Registration Unavailability Period.

 

d)         Mechanics
of Exercise.

 

i.         Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and there is an effective registration statement under the Securities Act permitting the issuance of the Warrant
Shares to or resale of the Warrant Shares by Holder, and otherwise by physical delivery of a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earlier of (i) two (2)
Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined herein) following the date
that the Company receives the latter of the executed Notice of Exercise and the applicable Exercise Price (such date, the “Warrant
Share Delivery Date”). With respect to a Holder that elects to deposit an executed Notice of Exercise with the Company,
such Holder shall be deemed, for purposes of Regulation SHO, to have become a holder of the Warrant Shares with respect to which
this Warrant has been exercised upon the email delivery of the relevant instruction necessary to complete the Notice of Exercise
to the Company. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise
by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for
each CHF 1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Shares on the date of the applicable
Notice of Exercise), CHF 5 per Trading Day (increasing to CHF 10 per Trading Day on the fifth Trading Day after such liquidated
damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered. The
Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed
in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Shares as in effect on the
date of delivery of the Notice of Exercise.

 

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ii.        Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all
other respects be identical with this Warrant.

 

iii.       [Reserved].

 

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

 

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v.        No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi.       Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto as Exhibit B duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required
for same-day electronic delivery of the Warrant Shares.

 

vii.      Closing
of Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

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e)         Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below), provided that
this restriction shall not apply with respect to exercises of this Warrant by a Holder to the extent such Holder together with
its Affiliates and Attribution Parties beneficially owned in excess of the Beneficial Ownership Limitation prior to the Initial
Exercise Date.  For purposes of the foregoing sentence, the number of Common Shares beneficially owned by the Holder and its
Affiliates and Attribution Parties shall include the number of Common Shares issuable upon exercise of this Warrant with respect
to which such determination is being made, but shall exclude the number of Common Shares which would be issuable upon (i) exercise
of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution
Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including,
without limitation, any other Common Share Equivalents) subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in
the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in
the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to
any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding Common Shares,
a Holder may rely on the number of outstanding Common Shares as reflected in (A) the Company’s most recent annual report
filed with the Commission, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company
or the Transfer Agent setting forth the number of Common Shares outstanding.  Upon the written or oral request of a Holder,
the Company shall within two Trading Days confirm orally and in writing to the Holder the number of Common Shares then outstanding. 
In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities
of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such
number of outstanding Common Shares was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the
number of Common Shares outstanding immediately after giving effect to the issuance of Common Shares issuable upon exercise of
this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of
this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of Common Shares outstanding
immediately after giving effect to the issuance of Common Shares upon exercise of this Warrant held by the Holder and the provisions
of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the
61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Warrant.

 

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Section 3.           Certain
Adjustments.

 

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

 

b)         [Reserved].

 

c)         Cash
Dividends. During such time as this Warrant is outstanding, if the Company shall declare or make any cash dividend or other
cash distribution to holders of Common Shares (a “Cash Dividend”), at any time after the issuance of this Warrant,
then, then (i) any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination
of holders of Common Shares entitled to receive the Cash Dividend shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Exercise Price by a fraction of which (A) the numerator shall be the
Market Price of the Common Shares on the Trading Day immediately preceding such record date minus the amount of the Cash Dividend
applicable to one Common Share, and (B) the denominator shall be the Market Price of the Common Shares on the Trading Day
immediately preceding such record date; and (ii) the number of Warrant Shares shall be increased to a number of Common Shares
equal to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for
the determination of holders of shares of Common Stock entitled to receive the Cash Dividend multiplied by the reciprocal of the
fraction set forth in the immediately preceding clause (i).

 

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d)         Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Shares are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Shares or any compulsory share exchange pursuant to which the Common Shares are effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a share or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding Common Shares (not including any Common Shares held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such share or share purchase agreement
or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section
2(e) on the exercise of this Warrant), the number of Common Shares of the successor or acquiring corporation or of the Company,
if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable
as a result of such Fundamental Transaction by a holder of the number of Common Shares for which this Warrant is exercisable immediately
prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes
of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one Common Share in such Fundamental Transaction, and the
Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If holders of Common Shares are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to
the contrary, in the event of a Fundamental Transaction (other than a Fundamental Transaction resulting from the merger of the
Company with a wholly-owned subsidiary of the Company in which the common shares of the surviving entity remain listed or quoted
on a Trading Market), the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at
any time concurrently with, or within 30 days after, the consummation of such Fundamental Transaction, purchase this Warrant from
the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this
Warrant on the date of the consummation of such Fundamental Transaction. “Black Scholes Value” means the value
of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P.
(“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing
purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility
equal to the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public
announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the
sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in
such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the
applicable Fundamental Transaction and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer
of immediately available funds within five Business Days of the Holder’s election (or, if later, on the effective date of
the Fundamental Transaction). The Company shall cause any successor entity
in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in
writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant
to written agreements prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares in the share capital of such Successor Entity (or its
parent entity) equivalent to the Common Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations
on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price
hereunder to such shares (but taking into account the relative value of the Common Shares pursuant to such Fundamental Transaction
and the value of such shares, such number of shares and such exercise price being for the purpose of protecting the economic value
of this Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant
with the same effect as if such Successor Entity had been named as the Company herein.

 

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

 

f)          Notice
to Holder.

 

i.         Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
publish on its website at www.aurismedical.com a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

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ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Shares, (C)
the Company shall authorize the granting to all holders of the Common Shares rights or warrants to subscribe for or purchase any
shares of any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection with
any reclassification of the Common Shares, any consolidation or merger to which the Company is a party, any sale or transfer of
all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Shares is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be published on its website at www.aurismedical.com,
at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date
on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record
is not to be taken, the date as of which the holders of the Common Shares of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Common Shares of record shall be entitled to exchange their Common Shares for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice required by this Warrant constitutes, or contains, material, non-public information
regarding the Company, the Company shall simultaneously file such notice with the Commission pursuant to a Report on Form 6-K.
The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

g)           Applicability
of article 653d para. 2 Swiss Code Obligations. For the avoidance of doubt, the parties hereto acknowledge and agree that article
653d para. 2 Swiss Code Obligations shall apply.

 

    	 	12	 

     

    

 

Section 4.           Transfer
of Warrant.

 

a)         Transferability.
Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder are transferable, in whole or
in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written
assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment,
the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in
the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing
the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the
contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this
Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date
on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned
in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)         New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

c)         Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

Section 5.           Miscellaneous.

 

a)         No
Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a shareholder of the Company. Upon receipt by the Company of a Notice of Exercise executed by a Holder and the applicable Exercise
Price, such Holder shall be entitled to the voting rights, dividends and other rights as a shareholder of the Company with respect
to the Common Shares specified in such Notice of Exercise.

 

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

 

    	 	13	 

     

    

 

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

 

d)         Conditional
Capital.

 

During the term of
this Warrant, the Company will at all times have authorized and reserved a sufficient number of its Common Shares as contingent
capital (bedingtes Kapital) to provide for the exercise of the rights to purchase Common Shares as provided for herein. Alternatively,
the Company may use its current or future authorized share capital or treasury shares to issue the Warrant Shares. The Company
acknowledges that compensation for damages may not be sufficient remedy for the Holder in case of the Company’s failure to
comply with its obligations under this paragraph and therefore expressly confirms that the Holder may in such case request specific
performance (Realerfüllung) upon due exercise of its purchase rights pursuant to Section 2 hereof from time to time by obligating
the Company to deliver such number of shares as would have been issued to the Holder in connection with such exercise of its purchase
rights from time to time.

 

The Company will
take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, including by maintaining an effective registration statement under the Securities
Act permitting the issuance of Warrant Shares upon exercise of this Warrant from the Initial Exercise Date until the Termination
Date, or of any requirements of the Trading Market upon which the Common Shares may be listed. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the
extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its
articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the
generality of the foregoing, the Company will (i) not increase the nominal value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in nominal value, (ii) take all such action as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise
of this Warrant and payment for such Warrant Shares and (iii) use commercially reasonable efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company
to perform its obligations under this Warrant.

 

    	 	14	 

     

    

 

Before taking any
action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise
Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any
public regulatory body or bodies having jurisdiction thereof.

 

e)         Governing
Law. This Warrant shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding
conflict of laws principles that would cause the application of laws of any other jurisdiction. For the avoidance of doubt, matters
involving the rights of shareholders, issuance of Common Shares and the validity of Common Shares shall be governed by the laws
of Switzerland.

 

f)          Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

 

g)         Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any
material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by
the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)         Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
to the address of the Holder set forth in the Warrant Register.

 

i)          Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Share or as a shareholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

    	 	15	 

     

    

 

j)          Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

k)         Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

l)          Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m)        Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n)         Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

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

 

(Signature Page Follows)

 

    	 	16	 

     

    

 

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

 

	 	auris medical holding ag
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	17	 

     

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

To:Auris
medical holding ag, DORNACHERSTRASSE 210, 4053 BASEL, SWITZERLAND

 

(1) Reference is made
to (i) Sec. 3b of the articles of association of Auris Medical Holding AG, Zug, and (ii) the offering prospectus dated [   ]
2018 whereby (i)-(ii) are known to the undersigned.

 

(2) The undersigned
hereby unconditionally and irreversibly exercises the Warrant pursuant to the terms of the attached Warrant (only if exercised
in full) to take up ___________ common shares in Auris Medical Holding AG, Zug, with a nominal value of CHF [   ]
each at the exercise price of CHF [   ] per such common share, i.e. CHF [amount] in total.

 

(3) Payment of the aggregate
Exercise Price shall be made (in CHF or in an equivalent amount in lawful money of the United States) to the Bank Account, which
shall be as follows2:

 

	 	Bank name:	UBS Switzerland AG
	 	Beneficiary:	Auris Medical Holding AG
	 	Account number:	0235235FJ1418843
	 	b/c code (SWIFT):	UBSWCHZH80A
	 	IBAN number:	CH8500235235FJ1418843
	 	Local clearing:	235

 

The Company reserves the
right to change the Bank Account, in which case the Company shall notify the Holder of such new Bank Account.

 

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

 

	 	 	 

 

 

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

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity:	 

 

	Signature of Authorized Signatory of Investing Entity:	 

 

	Name of Authorized Signatory:	 
	 	 
	Title of Authorized Signatory:	 

 

	Date:	 

 

 

2 [NTD: Auris to confirm bank account
information.]

 

    	 		 

     

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

(To assign the foregoing
Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the
foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 
	 	(Please Print)
	Address:	 
	 	(Please Print)
	 	 
	Phone Number:	 
	 	 
	Email Address: 	 
	 	 
	Dated: _______________ __, ______	 

 

	Holder’s Signature:		 
	 	 	 
	Holder’s Address:AMENDMENT TO CERTAIN LOAN DOCUMENTS 

 

THIS AMENDMENT TO CERTAIN LOAN DOCUMENTS (“Amendment”) is made and executed as of the 27th day of June, 2018 (“Effective Date”), by and among SUMMER ENERGY, LLC, a Texas limited liability company (“Borrower”), SUMMER ENERGY HOLDINGS, INC., a Nevada corporation (“Guarantor”), and BLUE WATER CAPITAL FUNDING, LLC, a Florida limited liability company (“Lender”). 

RECITALS

WHEREAS, Borrower and Lender entered into that certain Loan Agreement dated June 29, 2016 (the “Loan Agreement”), whereby Borrower requested from Lender an extension of credit in the form of revolving cash advances in the amount of $5,000,000.00 (“Loan”), the terms of the Loan as set forth therein;  

WHEREAS, pursuant to the terms of the Loan Agreement, Borrower executed a Revolving Promissory Note dated June 29, 2016 to and in favor of Lender (the “Revolving Note”), in the original principal amount of $5,000,000.00;

WHEREAS, in connection with the Loan, Borrower entered into a Security Agreement with the Lender (the “Security Agreement”), pursuant to which Borrower granted Lender a security interest in the property of Borrower identified therein (collectively, the “Collateral”);

WHEREAS, the security interest in the Collateral was perfected pursuant to a UCC Financing Statement filed with the Texas Secretary of State on June 29, 2016, as Filing No. 160021316848 (the “UCC Financing Statement”); 

WHEREAS, in connection with the Loan, Guarantor executed a Guaranty dated June 29, 2016, in favor of the Lender, pursuant to which Guarantor guaranteed all of the obligations under the Revolving Note up to the amount of Five Million and No/100 Dollars ($5,000,000.00), plus interest, late fees, reasonable attorneys’ fees and costs (and all renewals, extensions, modifications and rearrangements thereof) (the “Guaranty”);  

WHEREAS, the Loan Agreement, Revolving Note, Security Agreement, UCC Financing Statement, Guaranty, and all other documents relating to the Loan executed in conjunction therewith shall collectively be referred to herein as the “Loan Documents”.  All terms not otherwise defined herein shall have the meaning ascribed to them in the Loan Documents;

WHEREAS, the Revolving Note has a Maturity Date of June 30, 2018 (“Maturity Date”); 

WHEREAS, Borrower has requested that Lender provide an extension of the Maturity Date for a period of two (2) years and modification of the interest rate payable on the Revolving Note, of which Lender is agreeable to doing, only as expressly stated herein and only pursuant to the terms and conditions as more fully set forth in this Amendment; 

WHEREAS, Borrower replaced DTE Energy Trading, Inc., a Michigan corporation (“DTE Energy”) as its credit and supply provider and in connection with said transaction, Borrower, Guarantor and Lender entered into that certain First Lien/Second Lien Intercreditor Agreement dated as of May 1, 2018, by and among EDF ENERGY SERVICES, LLC, a Delaware limited liability company (“EDF Energy”), as First Lien Agent and Control Agent, BLUE WATER CAPITAL FUNDING, LLC, a Florida limited liability company, as Second Lien Lender, SUMMER ENERGY, LLC, a Texas limited liability company, as Summer, SUMMER ENERGY NORTHEAST, LLC, a Texas limited liability company, as Summer Northeast, SUMMER ENERGY HOLDINGS, INC., a Nevada corporation, as Member, and The Subsidiary Pledgors (the “Intercreditor Agreement”); and

WHEREAS, notice or consent of any First Lienholder is not required with respect to this Amendment and Lender is already bound to and by the terms of the Intercreditor Agreement.

NOW, THEREFORE, pursuant to the foregoing recitals, which are an integral part hereof, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Lender, Borrower and Guarantor hereby agree as follows: 

1.The above-stated recitals are hereby made a part of this Amendment by reference thereto and are incorporated herein with the same force and effect as if fully set forth herein. 

 

2.The Maturity Date of the Revolving Note is hereby extended to June 30, 2020. 

3.The interest rate payable on the Note is hereby amended to be as follows: 

From and after June 30, 2018, the interest rate accruing on the Loan shall accrue at a variable rate equal to Prime Rate plus 475 basis points.  Prime Rate means the rate of interest per annum publicly announced by the Wall Street Journal.  Lender’s determination of the Prime Rate shall be binding upon Borrower absent manifest error on the part of Lender in so determining that rate.

4.Borrower shall pay to Lender monthly installments of accrued interest only, with the first such payment due on July 10, 2018, and continuing thereafter on the same day of each successive month until the Maturity Date.  

5.Reference to “DTE Energy Trading, Inc.” in Paragraph 5 of the Revolving Note shall be replaced with “EDF Energy Services, LLC”. 

 

6.Lender and Borrower hereby acknowledge and agree that Section 5.3 of the Loan Agreement shall be deleted in its entirety, and replaced with the following: 

“Limitation Liens and Encumbrances.  Except for the interests of Lender, Borrower will not at any time create, assume, incur or permit to exist, any mortgage, lien, pledge, charge, security interest or other encumbrance of any kind in respect of the Collateral (except such interests of EDF Energy Services, LLC as described in the Intercreditor Agreement and such purchase money security interests granted by Borrower as disclosed 

to and approved by Lender), or any other assets, income or revenues of any character, whether heretofore or hereafter acquired by it.”

7.Lender and Borrower hereby acknowledge and agree that Section 6.2 of the Loan Agreement shall be deleted in its entirety, and replaced with the following: 

“Lender’s Right on Default.  Upon the occurrence of an Event of Default, Lender may, at its option and without notice, and subject to the rights of EDF Energy Services, LLC under the Intercreditor Agreement: (a) accelerate amounts outstanding on the Revolving Note and demand immediate payment in full without presentment or other demand, protest, notice of dishonor or any other notice of any kind, all of which are expressly waived; (b) foreclose its lien on the Collateral pursuant to the Security Agreement, as applicable, or take such other actions available under the terms of this Agreement and the other Loan Documents; and (c) take such other actions as may otherwise be available in equity or at law.  The remedies of Lender shall be cumulative.”

8.Any notices to be delivered to Borrower under the Loan Documents shall be delivered to the following address:  5487 San Filipe Street, #3700, Houston, Texas 77057, Attn:  Jaleea P. George. 

9.Borrower and Guarantor, as it applies, hereby agree concurrent herewith to: 

(i)execute the Amendment to Promissory Note, attached hereto as Exhibit “A”, and deliver the same to Lender; 

(ii)execute the Acknowledgment and Reaffirmation of Guaranty, attached hereto as Exhibit “B”, and deliver the same to Lender;  

(iii)provide a Written Action of the Sole Member and Manager of Borrower in Lieu of a Meeting containing resolutions of Borrower authorizing this Amendment; 

(iv)provide a Written Action of the Board of Directors of Guarantor in Lieu of a Meeting containing resolutions of Guarantor authorizing this Amendment; 

(v)provide a copy of Borrower’s Certificate of Status certified by the Office of the Texas Secretary of State; and 

(vi)take such action, and execute such agreements, certificates, instruments and other documents, as shall be requested by Lender to carry out the terms and conditions of this Amendment. 

10.Borrower agrees to pay to Lender concurrent with its execution of this Amendment a renewal fee in the amount of $12,500.00. 

11.Borrower acknowledges and agrees that it shall be obligated to pay all of Lender’s out-of-pocket fees and charges, including without limitation, legal fees, costs and expenses and  

closing costs incurred by Lender regarding the transaction contemplated by this Amendment, not to exceed $10,000.00.

12.Except as expressly stated in this Amendment, nothing herein shall be deemed to constitute a waiver by Lender of any default by Borrower or Guarantor or of any rights or remedies available to Lender under any of the Loan Documents, any related documents, and/or under applicable law, and by agreeing to this Amendment, Lender is not waiving any declaration of default or the existence of default or any other right or remedy related to the Borrower or Guarantor of the Loan, nor shall Lender be obligated to waive any other or future defaults by Borrower or Guarantor. 

13.In consideration of the terms and conditions of this Amendment, Borrower and Guarantor shall and do hereby forever and finally release, relieve, acquit, remise, waive, and discharge Lender and each of Lender’s respective past and present employees, officers, directors, members, owners, agents, attorneys, representatives, related entities, and their respective officers, directors, and owners, as well as each of their respective successors, assigns, heirs, and administrators (collectively, the “Released Parties”), from any and all past or present, claims, demands, damages, debts, sums of money, contracts, agreements, promises, covenants, acts, omissions, accounts, invoices, attorneys’ fees, costs, expenses, disbursements, loans, liens, suits, actions, and causes of action of whatsoever kind and nature, in law, in equity, by statute, on contract, or in tort, or otherwise, and any other liabilities or obligations, known or unknown, suspected or unsuspected, contingent or fixed, which Borrower or Guarantor may now have or may previously have had against any of the Released Parties through the Effective Date that arise from or out of, in consequence of, or on account of, or that relate in any manner to their past business or personal relationships related to this Amendment, the Loan, the Loan Documents, and/or any actions, omissions, writings, or statements made or occurring in connection with any of the foregoing.  This release is intended to be a full and complete release, and nothing is reserved by Borrower or Guarantor.  In the event that Lender exercises any of its default rights and remedies against Borrower or Guarantor of the Loan, neither Borrower nor Guarantor will assert or allege any claim, defense, setoff or counterclaim against Lender or any of the Released Parties. 

14.The Borrower and Guarantor hereby represent, warrant and agree that they have fully considered the terms of this Amendment and the documents related hereto and have had the opportunity to discuss this Amendment and the documents related hereto with their legal counsel, and that they are executing the same without any coercion or duress on the part of the Lender.  

15.The Borrower and Guarantor hereby represent and warrant to the Lender that they have full power and authority to execute and deliver this Amendment and the documents related hereto and to incur and perform their respective obligations hereunder and thereunder; the execution, delivery and performance by the Borrower and Guarantor of this Amendment and the documents related hereto will not violate any provision of the organizational documents of the Borrower and Guarantor or any law, rule, regulation or court order or result in the breach of, constitute a default under, or create or give rise to any lien under, any indenture or other agreement or instrument to which the Borrower  

and Guarantor is a party or by which the Borrower and Guarantor or its property may be bound or affected. 

16.This Amendment shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to the choice of law provisions thereof.  

17.This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. 

18.All prior oral and written communications, commitments, alleged commitments, promises, alleged promises, agreements, and alleged agreements by or between the Lender and the Borrower are hereby merged into the Loan Documents, as amended prior hereto and by this Amendment and the documents related hereto; shall be of no further force or effect; and shall not be enforceable unless expressly set forth in the Loan Documents, as amended prior hereto and by this Amendment and the documents related hereto.  All commitments, promises and agreements of the parties hereto are set forth in this Amendment and the other Loan Documents, as amended prior hereto, and no other commitments, promises, or agreements, oral or written, of any of the parties hereto shall be enforceable against any such party. 

19.The Borrower and Guarantor hereby represent and warrant to the Lender that no Event of Default, or event which with the giving of notice or the passage of time or both would constitute an Event of Default, by Borrower or Guarantor and its officers, directors, attorneys, insurers, servants, representatives, employees, shareholders, subsidiaries, affiliates, participants, partners, predecessors, principals, agents, successors and assigns of and from relating to the Loan and/or Loan Documents, as amended, or its administration thereof, has occurred and is continuing.  

20.Borrower and Guarantor acknowledge that all other terms, conditions, representations and warranties made in the Loan Documents remain true and are in full force and effect and Borrower and Guarantor shall be bound by all terms and conditions contained therein.   

21.Borrower and Guarantor hereby reaffirm all representations, warranties and covenants made in the Loan Documents as though made as of the Effective Date of this Amendment.   

22.Any forbearance on the part of the Lender in requiring or enforcing performance of any of the terms and conditions hereof shall not be a waiver of such terms and conditions. 

23.Except as expressly modified herein, all terms and conditions shall remain as set forth in the Loan Documents. 

24.In the event of a conflict between the terms of this Amendment and any other document, the terms of this Amendment shall govern and control. 

 

25.This Amendment or any other documents or agreements provided for herein may be executed in any number of counterparts, each of which when so executed and delivered  

shall be deemed to be an original and all of which counterparts of this Amendment or any other documents or agreements provided herein, as the case may be, taken together shall constitute but one and the same instrument.  This Amendment may be executed by facsimile or e-mail and facsimile or e-mail signatures shall be binding and shall constitute an original signature hereto.

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first above written.  

 

 

BORROWER: SUMMER ENERGY, LLC,  

a Texas limited liability company 

 

 

By: /s/ Neil Leibman 

Print Name: Neil Leibman 

Its: CEO 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This is a signature page to that certain Amendment to Certain Loan Documents dated effective June 27, 2018.

LENDER: BLUE WATER CAPITAL FUNDING, LLC, 

a Florida limited liability company

 

 

By: /s/ Edward C. Kammeyer 

Print Name:  Edward C. Kammeyer 

Its: Vice President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This is a signature page to that certain Amendment to Certain Loan Documents dated effective June 27, 2018.

  

EXHIBIT A

 

AMENDMENT TO PROMISSORY NOTE

 

(attached)

AMENDMENT TO REVOLVING PROMISSORY NOTE

THIS AMENDMENT TO REVOLVING PROMISSORY NOTE (“Amendment”) is made and executed as of the 27th day of June, 2018 (the “Effective Date”) by and between SUMMER ENERGY, LLC, a Texas limited liability company, with an address of 5487 San Filipe Street, #3700, Houston, Texas 77057 (“Borrower”) and BLUE WATER CAPITAL FUNDING, LLC, a Florida limited liability company, with an address of 9855 West 78th Street, Suite 300, Eden Prairie, Minnesota 55344 (“Lender”). 

RECITALS

A.Borrower executed that certain Revolving Promissory Note dated June 29, 2016 to and in favor of Lender, in the original principal amount of $5,000,000.00 (the “Revolving Note”), which Revolving Note evidences the loan made by Lender to Borrower pursuant to the terms of a Loan Agreement of even date therewith between Borrower and Lender (the “Loan Agreement”). The Revolving Note is secured by the following documents: (i)  the Guaranty of SUMMER ENERGY HOLDINGS, INC., a Nevada corporation; and (iii) a Security Agreement covering the Collateral of Borrower identified and defined therein.   

B.Borrower and Lender desire to modify the Revolving Note to, among other things, extend the Maturity Date to June 30, 2020 and modify the interest to be charged under the Revolving Note, as more particularly provided in this Amendment. 

NOW, THEREFORE, pursuant to the foregoing recitals, which are an integral part hereof, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower hereby agree as follows: 

1.Incorporation of Recitals.  The above-stated recitals are true and correct in all material respects and are hereby made a part of this Amendment by reference thereto and are incorporated herein with the same force and effect as if fully set forth herein. 

2.Definitions.  Terms defined in the Revolving Note shall have the same meaning when used herein, unless otherwise defined by this Amendment. 

3.Modifications to Note.  Borrower and Lender hereby acknowledge and agree that the Revolving Note should be amended as follows:  

(i)The Maturity Date of the Revolving Note is hereby amended to be June 30, 2020. 

(ii)The interest rate payable on the Revolving Note is hereby amended to be as follows:  From and after June 30, 2018, the interest rate accruing on the unpaid Principal Balance shall accrue at a variable rate equal to Prime Rate plus 475 basis points.  Prime Rate means the rate of interest per annum publicly announced by the Wall Street Journal.  Lender’s determination of the Prime Rate shall be  

binding upon Borrower absent manifest error on the part of Lender in so determining that rate.

(iii)Borrower shall pay to Lender monthly installments of accrued interest only, with the first such payment due on July 10, 2018, and continuing thereafter on the same day of each successive month until the Maturity Date.  

 

(iv)Reference to “DTE Energy Trading, Inc.” in Paragraph 5 of the Revolving Note shall be replaced with “EDF Energy Services, LLC”. 

4.All references in the Revolving Note to the “Revolving Note” or “Note” shall be to the Revolving Note as amended hereby. 

5.Except as hereby specifically amended, the Revolving Note and all of the terms and provisions thereof shall remain in full force and effect. 

6.This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  Any facsimile or e-mail transmission of a signature shall constitute an original and be binding on all parties for all purposes. 

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK AND

THE FOLLOWING PAGES ARE THE SIGNATURE PAGES.

IN WITNESS WHEREOF, the undersigned have caused this Amendment to Revolving Promissory Note to be made as of the date first above written.

 

 

BORROWER: SUMMER ENERGY, LLC, 

a Texas limited liability company

 

 

By: /s/ Neil Leibman 

Print Name: Neil Leibman 

Its: CEO 

 

 

LENDER:BLUE WATER CAPITAL FUNDING, LLC, 

a Florida limited liability company

 

 

By: /s/ Edward C. Kammeyer 

Print Name:  Edward C. Kammeyer 

Its: Vice President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This is a signature page to that certain Amendment to Revolving Promissory Note dated effective June 27, 2018.

EXHIBIT B

 

ACKNOWLEDGMENT AND REAFFIRMATION OF GUARANTY 

 

(attached)

ACKNOWLEDGMENT AND REAFFIRMATION OF GUARANTY

 

THIS ACKNOWLEDGMENT AND REAFFIRMATION OF GUARANTY (“Acknowledgment”), is made and executed as of the 27th day of June, 2018, by SUMMER ENERGY HOLDINGS, INC., a Nevada corporation (“Guarantor”), who hereby acknowledges and agrees to the following: 

 

1.That certain Guaranty dated as of June 29, 2016 (“Guaranty”) executed by the Guarantor, in favor of BLUE WATER CAPITAL FUNDING, LLC, a Florida limited liability company (“Lender”), respecting the obligations of SUMMER ENERGY, LLC, a Texas limited liability company (“Borrower”), to the Lender remains in full force and effect.  All terms not otherwise defined herein shall have the same meaning given to them in the Guaranty. 

 

2.Without in any way limiting the generality of the Guaranty or the foregoing, the Guarantor hereby acknowledges and agrees that the Guaranty absolutely, unconditionally and irrevocably guarantees to Lender the full and prompt payment and performance when due, whether at maturity or earlier by reason of acceleration or otherwise, of each and every debt, liability and obligation of every type and description which the Borrower may now or at any time hereafter owe to Lender under, pursuant to or arising out of that certain Revolving Promissory Note dated June 29, 2016, executed by Borrower in favor of Lender (the “Revolving Note”), which Revolving Note is secured by a Security Agreement of even date therewith (the “Security Agreement”), and which Revolving Note and Security Agreement are the subject of that certain Loan Agreement dated June 29, 2016 (the “Loan Agreement”, along with the Revolving Note, Security Agreement and any other ancillary documents executed concurrent therewith are referred to collectively, the “Loan Documents”). 

 

3.Guarantor has received a copy of the proposed Amendment to Certain Loan Documents of even date herewith (collectively, the “Amendment”), and hereby consents to the terms and conditions of the Amendment, and acknowledges and agrees that all references in the Guaranty to the Loan Documents shall be deemed to refer to the Loan Documents, as amended by the Amendment. 

4.The Amendment shall in no way impair or limit the rights of Lender under the Guaranty, and except as expressly amended in the Amendment, the Guaranty remains in full force and effect in accordance with its terms.  Guarantor continues to guaranty the prompt payment and performance of the obligations of Borrower to Lender, including, without limitation, Borrower’s obligations under the Loan Documents, as amended by the Amendment. 

 

5.All of the obligations, representations, warranties and covenants contained in the Guaranty are true and correct in all material respects as of the date hereof, and by the execution hereof Guarantor reaffirms and restates the obligations, representations, warranties and covenants contained in the Guaranty to and for the benefit of Lender as if the same were fully set forth herein and made as of the date hereof. 

6.All obligations of Guarantor to Lender under the Guaranty are legal and valid obligations of Guarantor, enforceable against Guarantor in accordance with their terms, without setoff, defense or counterclaim.  

 

7.Guarantor represents to Lender that, as of the date hereof, no event has taken place and no circumstance exists which would give Guarantor the right to assert a defense, offset or counterclaim to any claim by Lender in connection with the performance of the obligations of Guarantor under the Guaranty.  Guarantor, for good and valuable consideration, including, without limitation, Lender’s execution of the Amendment, hereby releases and forever discharges Lender and its directors, officers, owners, members, employees, agents, attorneys, successors and assigns from any and all actions, causes of action, suits, proceedings, debts, sums of money, controversies, claims, losses and demands, of any kind whatsoever, if any, whether absolute or contingent, known or unknown, matured or unmatured, at law or in equity, which Guarantor may now have or ever had through the date of the Amendment, in whatever capacity, against Lender or any of its directors, officers, owners, members, employees, agents, attorneys, successors or assigns arising out of the Loan Documents or Guaranty. 

 

8.Guarantor is providing this Acknowledgment to the Lender with the understanding that the Lender is relying upon this Acknowledgment in Lender’s execution and delivery of the Amendment. 

 

This Acknowledgment shall not be construed, by implication or otherwise, as imposing any requirement that Lender notify or seek the consent of Guarantor relative to any past or future modification, extension or other action with respect to the Loan Documents or the Guaranteed Obligations (as defined in the Guaranty), in order for any such modification, extension or other action with respect thereto to be an obligation guaranteed by the Guaranty, it being expressly acknowledged and reaffirmed that Guarantor has under the Guaranty consented to any such modifications, extensions and other actions without any requirement of giving Guarantor any notice thereof.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK AND

THE FOLLOWING PAGES ARE THE SIGNATURE PAGE(S).

IN WITNESS WHEREOF, the undersigned Guarantor has executed this Acknowledgment as of the date first above written.

 

GUARANTOR: 

 

SUMMER ENERGY HOLDINGS, INC.,

a Nevada corporation

 

 

By: /s/ Neil Leibman 

Print Name: Neil Leibman 

Its: CEO 

STATE OF TEXAS) 

) ss. 

COUNTY OF HARRIS) 

 

The foregoing instrument was acknowledged before me this 27th day of June, 2018, by Neil Leibman, a CEO, on behalf of Summer Energy Holdings, Inc., a Nevada corporation, Guarantor. 

 

/s/ Ellen Leemann 

Notary Public 

 

 

Ellen Leemann

Notary ID #131453586

My Commission Expires

February 15, 2022

 

 

 

 

 

 

 

 

This is a signature page to that certain Acknowledgment and Reaffirmation of Guaranty  dated effective June 27, 2018.

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