Document:

Exhibit 4.1

 

Confederate
Motors, Inc. 

2014
STOCK INCENTIVE PLAN

  

THE
2014 STOCK INCENTIVE PLAN (the “Plan”) of Confederate Motors, Inc., a Delaware corporation, is hereby adopted
by its Board of Directors as of October 16, 2014 (the “Effective Date”).

 

Article
1. 

PURPOSES
OF THE PLAN

 

Section
1.01Purposes. The purposes of the Plan are (a) to enhance the Company’s ability to attract and retain the services
of qualified employees, officers, directors, consultants and other service providers upon whose judgment, initiative and efforts
the successful conduct and development of the Company’s business largely depends, and (b) to provide additional incentives
to such persons or entities to devote their utmost effort and skill to the advancement and betterment of the Company, by providing
them an opportunity to participate in the ownership of the Company and thereby have an interest in the success and increased value
of the Company.

 

Article
2.

DEFINITIONS

 

For
purposes of this Plan, terms not otherwise defined herein shall have the meanings indicated below:

 

Section
2.01Administrator. “Administrator” means the Board or, if the Board delegates responsibility for any matter
to the Committee, the term Administrator shall mean the Committee.

 

Section
2.02Affiliated Company. “Affiliated Company” means:

 

a)with
respect to Incentive Options, any “parent corporation” or “subsidiary corporation” of the Company, whether
now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively;
and

 

b)with
respect to Nonqualified Options, Restricted Stock Units, Stock Appreciation Rights, and Restricted Stock Grants any entity described
in paragraph (a) of this Section 2.02 above, plus any other corporation, limited liability company (“LLC”),
partnership or joint venture, whether now existing or hereafter created or acquired, with respect to which the Company beneficially
owns more than fifty percent (50%) of: (1) the total combined voting power of all outstanding voting securities or (2) the capital
or profits interests of an LLC, partnership or joint venture.

 

Section
2.03Base Price. “Base Price” means the price per share of Common Stock for purposes of computing the amount
payable to a Participant who holds a Stock Appreciation Right upon exercise thereof.

 

Section
2.04Board. “Board” means the Board of Directors of the Company.

 

Section
2.05Change in Control. “Change in Control” means:

 

a)The
acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group (within the
meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial ownership of securities of the
Company possessing more than fifty percent (50%) of the total combined voting power of all outstanding securities of the Company;

 

    	 

     

    

 

b)A
merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders of the
outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding Company
securities prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the total combined
voting power of all outstanding voting securities of the surviving entity (or the parent of the surviving entity) immediately
after such merger or consolidation;

 

c)A
reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities of the
Company immediately prior to such merger hold, in the aggregate, securities possessing less than fifty percent (50%) of the total
combined voting power of all outstanding voting securities of the Company or of the acquiring entity immediately after such merger;
or

 

d) The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially
all of the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company
immediately prior to such transaction(s) receive as a distribution with respect to securities of the Company, in the aggregate,
securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of
the acquiring entity immediately after such transaction(s).

 

e)In
addition, a Change in Control will be deemed to have occurred if, at any time during any period of twelve (12) consecutive months
during the term of any Option Agreement, Restricted Stock Unit Agreement or Stock Appreciation Right Agreement under this Plan,
individuals who at the beginning of such period constituted the entire Board do not for any reason constitute a majority of the
Board, unless the election, or the nomination for election by the Company’s stockholders, of each new director was approved
by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period (but
not including any new director whose election or nomination is in connection with an actual or threatened proxy contest relating
to the election of directors of the Company).

 

Notwithstanding
the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event
within the meaning of Section 409A of the Code.

 

Section
2.06Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

Section
2.07Committee. “Committee” means a committee of two or more members of the Board appointed to administer the
Plan, as set forth in Section 9.01.

 

Section
2.08Common Stock. “Common Stock” means the Common Stock of the Company, subject to adjustment pursuant to
Section 4.02.

 

Section
2.09Company. “Company” means Confederate Motors, Inc., a Delaware corporation, or any entity that is a successor
to the Company. Except where the context otherwise requires, the term “Company” shall include any of
the Company’s present or future parent or subsidiary corporations

 

Section
2.10Disability. “Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code.
The Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested
parties.

 

Section
2.11Effective Date. “Effective Date” means the date on which the Plan was originally adopted by the Board,
as set forth on the first page hereof.

 

    	2

     

    

 

Section
2.12Exchange Act. “Exchange Act” means the Securities and Exchange Act of 1934, as amended.

 

Section
2.13Exercise Price. “Exercise Price” means the purchase price per share of Common Stock payable by the Optionee
to the Company upon exercise of an Option.

 

Section
2.14Fair Market Value. “Fair Market Value” on any given date means the value of one share of Common Stock,
determined as follows:

 

a)If
the Common Stock is then listed or admitted to trading on The NASDAQ Stock Market or another stock exchange which reports closing
sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on The NASDAQ Stock Market or principal
stock exchange on which the Common Stock is then listed or admitted to trading, or, if no closing sale price is quoted on such
day, then the Fair Market Value shall be the closing sale price of the Common Stock on The NASDAQ Stock Market or such exchange
on the next preceding day on which a closing sale price is reported.

 

b)If
the Common Stock is not then listed or admitted to trading on The NASDAQ Stock Market or a stock exchange which reports closing
sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the over-the-counter
market on the date of valuation.

 

c)If
neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the Administrator
in good faith using any reasonable method of evaluation in a manner consistent with the valuation principles under Section 409A
of the Code, which determination shall be conclusive and binding on all interested parties.

 

Section
2.15FINRA Dealer. “FINRA Dealer” means a broker-dealer that is a member of the Financial Industry Regulatory
Authority.

 

Section
2.16Incentive Option. “Incentive Option” means any Option designated and qualified as an “incentive
stock option” as defined in Section 422 of the Code.

 

Section
2.17Incentive Option Agreement. “Incentive Option Agreement” means an Option Agreement with respect to an
Incentive Option.

 

Section
2.18Nonqualified Option. “Nonqualified Option” means any Option that is not an Incentive Option.  To
the extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including,
without limitation, for failure to meet the limitations applicable to a 10% Stockholder or because it exceeds the annual limit
provided for in Section 5.07 below, it shall to that extent constitute a Nonqualified Option.

 

Section
2.19Nonqualified Option Agreement. “Nonqualified Option Agreement” means an Option Agreement with respect
to a Nonqualified Option.

 

Section
2.20Option. “Option” means any option to purchase Common Stock granted pursuant to this Plan.

 

Section
2.21Option Agreement. “Option Agreement” means the written agreement entered into between the Company and
the Optionee with respect to an Option granted under this Plan.

 

    	3

     

    

 

Section
2.22Optionee. “Optionee” means any Participant who holds an Option.

 

Section
2.23Participant. “Participant” means an individual or entity that holds Options, Restricted Stock Units, Stock
Appreciation Rights, or Restricted Shares under this Plan.

 

Section
2.24Performance Criteria. “Performance Criteria” means one or more of the following as established by the
Administrator, which may be stated as a target percentage or dollar amount, a percentage increase over a base period percentage
or dollar amount or the occurrence of a specific event or events:

 

a)Revenue; 

b)Gross
profit; 

c)Operating
income; 

d)Pre-tax
income;   

e)Earnings
before interest, taxes, depreciation and amortization (“EBITDA”); 

f)Earnings
per common share on a fully diluted basis (“EPS”); 

g)Consolidated
net income of the Company divided by the average consolidated common stockholders’ equity (“ROE”); 

h)Cash
and cash equivalents derived from either (i) net cash flow from operations, or (ii) net cash flow from operations, financings
and investing activities (“Cash Flow”); 

i)Adjusted
operating cash flow return on income; 

j)Cost
containment or reduction; 

k)The
percentage increase in the market price of the Company’s common stock over a stated period; and 

l)Individual
business objectives.

 

Section
2.25Restricted Shares. “Restricted Shares” means shares issued pursuant to the Stock Issuance Program in Article
8.

 

Section
2.26Restricted Stock Unit. “Restricted Stock Unit” means a right to receive an amount equal to the Fair Market
Value of one share of Common Stock, issued pursuant to Article 6, subject to any restrictions and conditions as are established
pursuant to Article 6.

 

Section
2.27Restricted Stock Unit Agreement. “Restricted Stock Unit Agreement” means the written agreement entered
into between the Company and a Participant evidencing the grant of Restricted Stock Units under the Plan.

 

Section
2.28Service. “Service” shall mean the provision of services to the Company (or any Parent or Subsidiary) by
a person in the capacity of an employee, a non-employee member of the board of directors or a consultant or independent advisor,
except to the extent otherwise specifically provided in the documents evidencing the option grant.

 

Section
2.29Service Provider. “Service Provider” means a consultant or other person or entity the Administrator authorizes
to become a  Participant in the Plan and who provides services to (i) the Company, (ii) an Affiliated Company, or (iii) any
other business venture designated by the Administrator in which the Company or an Affiliated Company has a significant ownership
interest.

 

Section
2.30Stock Appreciation Right. “Stock Appreciation Right” means a right issued pursuant to Article 7, subject
to any restrictions and conditions as are established pursuant to Article 7 that is designated as a Stock Appreciation Right.

 

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Section
2.31Stock Appreciation Right Agreement. “Stock Appreciation Right Agreement” means the written agreement entered
into between the Company and a Participant evidencing the grant of Stock Appreciation Rights under the Plan.

 

Section
2.32Stock Issuance Program. “Stock Issuance Program” means the program to issue restricted shares pursuant
to Article 8.

 

Section
2.3310% Stockholder. “10% Stockholder” means a person who, as of a relevant date, owns or is deemed to own
(by reason of the attribution rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or of an Affiliated Company.

 

Article
3.

ELIGIBILITY

 

Section
3.01Incentive Options. Only employees of the Company or of an Affiliated Company (including members of the Board if they
are employees of the Company or of an Affiliated Company) are eligible to receive Incentive Options under the Plan.

 

Section
3.02Nonqualified Options; Restricted Stock Units and Stock Appreciation Rights. Employees of the Company or of an Affiliated
Company, members of the Board (whether or not employed by the Company or an Affiliated Company), and Service Providers are eligible
to receive Nonqualified Options, Restricted Stock Units and Stock Appreciation Rights under the Plan.

 

Section
3.03Section 162(m) Limitation. Subject to adjustment as to the number and kind of shares pursuant to Section 4.2, in no
event shall any Participant be granted in any one calendar year (a) Options or Stock Appreciation Rights pursuant to which, with
respect to Options, the aggregate number of shares of Common Stock that may be acquired thereunder or, with respect to Stock Appreciation
Rights, the aggregate number of shares of Common Stock covered thereby, exceeds four hundred thousand (400,000) shares or (b)
Restricted Stock Units pursuant to which the aggregate number of shares of Common Stock covered thereby exceeds one hundred thousand
(100,000) shares.

 

Article
4.

PLAN
SHARES

 

Section
4.01Shares Subject to the Plan.

 

a)The
number of shares of Common Stock that may be issued under this Plan shall be four million (4,000,000) shares, subject
to adjustment as to the number and kind of shares pursuant to Section 4.02. For purposes of this limitation, in the event
that (a) all or any portion of any Options or Stock Appreciation Rights granted under the Plan can no longer under any
circumstances be exercised, (b) any shares of Common Stock are reacquired by the Company pursuant to an Option Agreement, or
(c) all or any portion of any Restricted Stock Units granted under the Plan are forfeited or can no longer under any
circumstances vest, the shares of Common Stock allocable to or covered by the unexercised or unvested portion of such
Options, Stock Appreciation Rights or Restricted Stock Units or the shares of Common Stock so reacquired shall again be
available for grant or issuance under the Plan. The following shares of Common Stock may not again be made available for
issuance as awards under the Plan: (i) shares of Common Stock not issued or delivered as a result of the net settlement of
outstanding Stock Appreciation Rights or Options, (ii) shares of Common Stock used to pay the Exercise Price related to
outstanding Options, (iii) shares of Common Stock used to pay withholding taxes related to outstanding Options, Stock
Appreciation Rights or Restricted Stock Units, or (iv) shares of Common Stock repurchased on the open market with the
proceeds of the Option Exercise Price.

 

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b)At
no time shall the total number of shares of Common Stock issuable upon exercise of all outstanding Options and the total number
of shares issuable for Restricted Stock Units, Stock Appreciation Rights, or Restricted Shares exceed 30% of the then outstanding
securities of the Company (with convertible preferred or convertible senior common shares of stock counted on an as if converted
basis), unless a percentage higher than 30% is approved by at least two-thirds of the outstanding securities entitled to vote.
The applicable percentage shall be calculated based on the securities of the Company which are outstanding at the time the calculation
is made.

 

c)The
maximum number of shares of Common Stock that may be issued under the Plan as Incentive Options shall be four million
(4,000,000) shares, subject to adjustment as to the number and kind of shares pursuant to Section 4.02.

 

Section
4.02Changes in Capital Structure. In the event that the outstanding shares of Common Stock are hereafter increased or
decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of
a recapitalization, stock split, reverse stock split, reclassification, stock dividend, or other change in the capital structure
of the Company, then appropriate adjustments shall be made by the Administrator to the aggregate number and kind of shares subject
to this Plan, the number and kind of shares and the price per share subject to or covered by outstanding Option Agreements, Restricted
Stock Unit Agreements or Stock Appreciation Right Agreements and the limit on the number of shares under Section 3.03, all in
order to preserve, as nearly as practical, but not to increase, the benefits to Participants.

 

Article
5.

OPTIONS

 

Section
5.01Grant of Stock Options.  The Administrator shall have the right to grant pursuant to this Plan, Options subject
to such terms, restrictions and conditions as the Administrator may determine at the time of grant.  Such conditions may
include, but are not limited to, continued employment or the achievement of specified performance goals or objectives established
by the Administrator with respect to one or more Performance Criteria, which require the Administrator to certify in writing whether
and the extent to which such Performance Criteria were achieved.

 

Section
5.02Option Agreements. Each Option granted pursuant to this Plan shall be evidenced by an Option Agreement which shall
specify the number of shares subject thereto, vesting provisions relating to such Option, the Exercise Price per share, and whether
the Option is an Incentive Option or Nonqualified Option. As soon as is practical following the grant of an Option, an Option
Agreement shall be duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted.
 Each Option Agreement shall be in such form and contain such additional terms and conditions, not inconsistent with the
provisions of this Plan, as the Administrator shall, from time to time, deem desirable.

 

Section
5.03Exercise Price. The Exercise Price per share of Common Stock covered by each Option shall be determined by the Administrator,
subject to the following:  (a) the Exercise Price of an Incentive Option shall not be less than 100% of Fair Market Value
on the date the Incentive Option is granted, (b) the Exercise Price of a Nonqualified Option shall not be less than 100% of Fair
Market Value on the date the Nonqualified Option is granted, and (c) if the person to whom an Incentive Option is granted is a
10% Stockholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on the date the Incentive
Option is granted. However, an Option may be granted with an Exercise Price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of
Sections 409A and 424 of the Code.

 

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Section
5.04Payment of Exercise Price. Payment of the Exercise Price shall be made upon exercise of an Option and may be made,
in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares
of Common Stock owned by the Optionee (provided that shares acquired pursuant to the exercise of options granted by the Company
must have been held by the Optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial
reporting purposes), which surrendered shares shall be valued at Fair Market Value as of the date of such exercise; (d) the cancellation
of indebtedness of the Company to the Optionee; (e) the waiver of compensation due or accrued to the Optionee for services
rendered; (f) provided that a public market for the Common Stock exists, a “same day sale” commitment from the Optionee
and a FINRA Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased
to pay for the Exercise Price and whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward the Exercise
Price directly to the Company; (g) provided that a public market for the Common Stock exists, a “margin” commitment
from the Optionee and a FINRA Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so
purchased to the FINRA Dealer in a margin account as security for a loan from the FINRA Dealer in the amount of the Exercise Price,
and whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company;
or (h) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted
by applicable law.

 

Section
5.05Term and Termination of Options. The term and provisions for termination of each Option shall be as fixed by the Administrator,
but no Option may be exercisable more than ten (10) years after the date it is granted.  An Incentive Option granted to a
person who is a 10% Stockholder on the date of grant shall not be exercisable more than five (5) years after the date it is granted.

 

Section
5.06Vesting and Exercise of Options. Each Option shall vest and become exercisable in one or more installments at such
time or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives
established with respect to one or more Performance Criteria, as shall be determined by the Administrator.

 

Section
5.07Annual Limit on Incentive Options. To the extent required for “incentive stock option” treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock with respect
to which Incentive Options granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable
for the first time by an Optionee during any calendar year shall not exceed $100,000.

 

Section
5.08Nontransferability of Options. Except as otherwise provided in this Section 5.08, Options shall not be assignable
or transferable except by will, the laws of descent and distribution or to a revocable trust, and during the life of the Optionee,
Options shall be exercisable only by the Optionee. At the discretion of the Administrator and in accordance with rules it establishes
from time to time, Optionees may be permitted to transfer some or all of their Nonqualified Options to one or more “family
members,” which is not a “prohibited transfer for value,” provided that (i) the Optionee (or such Optionee’s
estate or representative) shall remain obligated to satisfy all income or other tax withholding obligations associated with the
exercise of such Nonqualified Option; (ii) the Optionee shall notify the Company in writing that such transfer has occurred and
disclose to the Company the name and address of the “family member” or “family members” and their relationship
to the Optionee, and (iii) such transfer shall be effected pursuant to transfer documents in a form approved by the Administrator.
For purposes of the foregoing, the terms “family members” and “prohibited transfer for value” have the
meaning ascribed to them in the General Instructions to Form S-8 (or any successor form) promulgated under the Securities Act
of 1933, as amended.

 

    	7

     

    

 

Section
5.09Effect of Termination of Employment.

 

a)The
following provisions shall govern the exercise of any Options held by the Optionee at the time of termination of employment, disability,
or death: 

 

(1)Should
the Optionee’s employment be terminated for cause, then the Options shall terminate on the date of employment is terminated.

  

(2)Should
the Optionee’s employment be terminated for disability, then the Optionee shall have a period of six (6) months following
the date of such termination during which to exercise each outstanding Option held by such Optionee at the time of disability.

  

(3)If
the Optionee dies while holding an outstanding Option, then the personal representative of his or her estate or the person or
persons to whom the Option is transferred pursuant to the Optionee’s will or the laws of inheritance shall have six (6)
months following the date of the Optionee’s death to exercise such Option.

  

(4)Should
Optionee’s employment be terminated by reason other than for cause, disability, or death, then the Optionee shall have a
period of thirty (30) days following the date of such termination during which to exercise each outstanding option held by such
Optionee.

  

(5)Under
no circumstances, however, shall any such Option be exercisable after the specified expiration of the option term.

  

(6)During
the applicable post-Service exercise period, the Option may not be exercised in the aggregate for more than the number of vested
shares for which the Option is exercisable on the date of the Optionee’s termination of employment. Upon the expiration
of the applicable exercise period or (if earlier) upon the expiration of the Option term, the Option shall terminate and cease
to be outstanding for any vested shares for which the Option has not been exercised. However, the Option shall, immediately upon
the Optionee’s termination of employment, terminate and cease to be outstanding with respect to any and all Option shares
for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested.

 

b)The
Administrator shall have the discretion, exercisable either at the time an Option is granted or at any time while the Option remains
outstanding, to:

  

(1)extend
the period of time for which the Option is to remain exercisable following Optionee’s termination of employment or death
from the limited period otherwise in effect for that Option to such greater period of time as the Administrator shall deem appropriate,
but in no event beyond the expiration of the Option term; and/or

 

(2)permit
the Option to be exercised, during the applicable post-termination exercise period, not only with respect to the number of vested
shares of Common Stock for which such Option is exercisable at the time of the Optionee’s termination of employment but
also with respect to one or more additional installments in which the Optionee would have vested under the Option had the Optionee
continued employment.

 

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Section
5.10Rights as a Stockholder. An Optionee or permitted transferee of an Option shall have no rights or privileges as a
stockholder with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing
shares purchased upon such exercise have been issued to such person.

 

Article
6.

RESTRICTED
STOCK UNITS

 

Section
6.01Grants of Restricted Stock Units. The Administrator shall have the right to grant pursuant to this Plan Restricted
Stock Units subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant.  Such
conditions may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives
established by the Administrator with respect to one or more Performance Criteria, which require the Administrator to certify
in writing whether and the extent to which such Performance Criteria were achieved.

 

Section
6.02Restricted Stock Unit Agreements. A Participant shall have no rights with respect to the Restricted Stock Units covered
by a Restricted Stock Unit Agreement until the Participant has executed and delivered to the Company the applicable Restricted
Stock Unit Agreement. Each Restricted Stock Unit Agreement shall be in such form, and shall set forth such other terms, conditions
and restrictions of the Restricted Stock Unit Agreement, not inconsistent with the provisions of this Plan, as the Administrator
shall, from time to time, deem desirable. Each such Restricted Stock Unit Agreement may be different from each other Restricted
Stock Unit Agreement.

 

Section
6.03Vesting of Restricted Stock Units. The Restricted Stock Unit Agreement shall specify the date or dates, the performance
goals, if any, established by the Administrator with respect to one or more Performance Criteria that must be achieved, and any
other conditions on which the Restricted Stock Units may vest.

 

Section
6.04Form and Timing of Settlement. Settlement in respect of vested Restricted Stock Units will be automatic upon vesting
thereof.  Payment in respect thereof will be made no later than thirty (30) days thereafter and may, in the discretion of
the Administrator, be in cash, shares of Common Stock of equivalent Fair Market Value as of the date of exercise, or a combination
of both, except as specifically provided in the Restricted Stock Unit Agreement.

 

Section
6.05Rights as a Stockholder. Holders of Restricted Stock Units shall have no rights or privileges as a stockholder with
respect to any shares of Common Stock covered thereby unless and until they become owners of shares of Common Stock following
settlement in respect of such Restricted Stock Units, in whole or in part, in shares of Common Stock pursuant to their respective
Restricted Stock Unit Agreements and the terms and conditions of the Plan.

 

Section
6.06Restrictions. Restricted Stock Units may not be sold, pledged or otherwise encumbered or disposed of and shall not
be assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order entered
by a court in settlement of marital property rights, except as specifically provided in the Restricted Stock Unit Agreement or
as authorized by the Administrator.

 

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Article
7.

STOCK
APPRECIATION RIGHTS

 

Section
7.01Grants of Stock Appreciation Rights. The Administrator shall have the right to grant pursuant to this Plan, Stock
Appreciation Rights subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant.
Such conditions may include, but are not limited to, continued employment or the achievement of specified performance goals or
objectives established by the Administrator with respect to one or more Performance Criteria, which require the Administrator
to certify in writing whether and the extent to which such Performance Criteria were achieved.

 

Section
7.02Stock Appreciation Right Agreements. A Participant shall have no rights with respect to the Stock Appreciation Rights
covered by a Stock Appreciation Right Agreement until the Participant has executed and delivered to the Company the applicable
Stock Appreciation Right Agreement. Each Stock Appreciation Right Agreement shall be in such form, and shall set forth the Base
Price and such other terms, conditions and restrictions of the Stock Appreciation Right Agreement, not inconsistent with the provisions
of this Plan, as the Administrator shall, from time to time, deem desirable. Each such Stock Appreciation Right Agreement may
be different from each other Stock Appreciation Right Agreement.

 

Section
7.03Base Price. The Base Price per share of Common Stock covered by each Stock Appreciation Right shall be determined
by the Administrator and will be not less than 100% of Fair Market Value on the date the Stock Appreciation Right is granted.
 However, a Stock Appreciation Right may be granted with a Base Price lower than that set forth in the preceding sentence
if such Stock Appreciation Right is granted pursuant to an assumption or substitution for another stock appreciation right in
a manner satisfying the provisions of Section 409A of the Code.

 

Section
7.04Term and Termination of Stock Appreciation Rights. The term and provisions for termination of each Stock Appreciation
Right shall be as fixed by the Administrator, but no Stock Appreciation Right may be exercisable more than ten (10) years after
the date it is granted.

 

Section
7.05Vesting and Exercise of Stock Appreciation Rights. Each Stock Appreciation Right shall vest and become exercisable
in one or more installments at such time or times and subject to such conditions, including without limitation the achievement
of specified performance goals or objectives established with respect to one or more Performance Criteria, as shall be determined
by the Administrator.

 

Section
7.06Amount, Form and Timing of Settlement. Upon exercise of a Stock Appreciation Right, the Participant who holds such
Stock Appreciation Right will be entitled to receive payment from the Company in an amount equal to the product of (a) the difference
between the Fair Market Value of a share of Common Stock on the date of exercise over the Base Price per share of Common Stock
covered by such Stock Appreciation Right and (b) the number of shares of Common Stock with respect to which such Stock Appreciation
Right is being exercised. Payment in respect thereof will be made no later than thirty (30) days after such exercise, provided
that such payment will be made in a manner such that no amount of compensation will be treated as deferred under Treasury Regulation
Section 1.409A-1(b)(5)(i)(D).  Such payment may, in the discretion of the Administrator, be in cash, shares of Common Stock
of equivalent Fair Market Value as of the date of exercise, or a combination of both, except as specifically provided in the Stock
Appreciation Right Agreement.

 

Section
7.07Rights as a Stockholder. Holders of Stock Appreciation Rights shall have no rights or privileges as a stockholder
with respect to any shares of Common Stock covered thereby unless and until they become owners of shares of Common Stock following
settlement in respect of such Stock Appreciation Rights, in whole or in part, in shares of Common Stock pursuant to their respective
Stock Appreciation Right Agreements and the terms and conditions of the Plan.

 

    	10

     

    

 

Section
7.08Restrictions. Stock Appreciation Rights may not be sold, pledged or otherwise encumbered or disposed of and shall
not be assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order
entered by a court in settlement of marital property rights, except as specifically provided in the Stock Appreciation Right Agreement
or as authorized by the Administrator.

 

Article
8.

STOCK
ISSUANCE PROGRAM

 

Section
8.01Stock Issuance Terms. Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate
issuances of Restricted Shares without any intervening option grants. Each such stock grant shall be evidenced by a Stock Issuance
Agreement which complies with the terms specified below.

 

Section
8.02Cost of Shares.  Grants of Restricted Shares under the Stock Issuance Program shall be made at such cost as
the Administrator shall determine and may be issued for no monetary consideration, subject to applicable state law.

 

Section
8.03Vesting Provisions.

 

a)Restricted
Shares issued under the Stock Issuance Program may, in the discretion of the Administrator, be fully and immediately vested upon
issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment of specified
performance objectives.

 

b)Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which
the Participant may have the right to receive with respect to the Participant’s unvested Restricted Shares by reason of
any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding
Common Stock as a class without the Company’s receipt of consideration shall be issued subject to (i) the same vesting requirements
applicable to the Participant’s unvested Restricted Shares and (ii) such escrow arrangements as the Administrator shall
deem appropriate.

 

c)Unless
specified otherwise in the Stock Issuance Agreement, the Participant shall have full shareholder rights with respect to any Restricted
Shares issued to the Participant under the Stock Issuance Program, whether or not the Participant’s interest in those shares
is vested, and accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends
paid on such shares.

 

d)Should
the Participant cease to remain in Service while holding one or more unvested Restricted Shares issued under the Stock Issuance
Program or should the performance objectives not be attained with respect to one or more such unvested Restricted shares, then
those shares shall be immediately surrendered to the Company for cancellation, and the Participant shall have no further shareholder
rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration
paid in cash or cash equivalent (including the Participant’s purchase-money indebtedness), the Company shall repay to the
Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding
purchase-money note of the Participant attributable to such surrendered shares.

 

    	11

     

    

 

e)The
Administrator may in its discretion waive the surrender and cancellation of one or more unvested Restricted Shares (or other assets
attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to such shares. Such
waiver shall result in the immediate vesting of the Participant’s interest in the Restricted Shares as to which the waiver
applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service or the
attainment or non-attainment of the applicable performance objectives.

 

Section
8.04Non-transferability. Restricted Shares granted under the Stock Issuance Program shall not be transferable
until the shares are vested.

 

Section
8.05Share Escrow/Legends. Unvested Restricted Shares may, in the Administrator’s discretion, be held in escrow by
the Company until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive
legends on the certificates evidencing those unvested shares.

 

Article
9.

ADMINISTRATION
OF THE PLAN

 

Section
9.01Administrator. Authority to control and manage the operation and administration of the Plan shall be vested in the
Board, which may delegate such responsibilities in whole or in part to a committee consisting of two (2) or more members of the
Board (the “Committee”), each of whom shall meet the independence requirements under the then applicable rules,
regulations or listing requirements adopted by The NASDAQ Stock Market or the principal exchange on which the Company’s
shares of Common Stock are then listed or admitted to trading.  Members of the Committee may be appointed from time to time
by, and shall serve at the pleasure of, the Board. The Board may limit the composition of the Committee to those persons necessary
to comply with the requirements of Section 162(m) of the Code and Section 16 of the Exchange Act. As used herein, the term “Administrator”
means the Board or, with respect to any matter as to which responsibility has been delegated to the Committee, the term Administrator
shall mean the Committee.

 

Section
9.02Powers of the Administrator. In addition to any other powers or authority conferred upon the Administrator elsewhere
in this Plan or by law, the Administrator shall have full power and authority:  (a) to determine the persons to whom,
and the time or times at which, Incentive Options, Nonqualified Options, Restricted Stock Units, Stock Appreciation Rights, or
Restricted Shares shall be granted, the number of shares to be represented by each Option Agreement or covered by each Restricted
Stock Unit Agreement or Stock Appreciation Right Agreement, and the Exercise Price of such Options and the Base Price of such
Stock Appreciation Rights; (b) to interpret the Plan; (c) to create, amend or rescind rules and regulations relating
to the Plan; (d) to determine the terms, conditions and restrictions contained in, and the form of, Option Agreements, Restricted
Stock Unit Agreements, Stock Appreciation Right Agreements, and Stock Issuance Agreement; (e) to determine the identity or
capacity of any persons who may be entitled to exercise a Participant’s rights under any Option Agreement, Restricted Stock
Unit Agreement, Stock Appreciation Right Agreement, or Stock Issuance Agreement under the Plan; (f) to correct any defect
or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement, Restricted Stock Unit Agreement,
Stock Appreciation Right Agreement, or Stock Issuance Agreement; (g) to accelerate the vesting of any Option, Restricted
Stock Unit, Stock Appreciation Right, or Restricted Shares; (h) to extend the expiration date of any Option Agreement,
Stock Appreciation Right Agreement, or Stock Issuance Agreement; (i) subject to Section 9.03, to amend outstanding Option
Agreements, Restricted Stock Unit Agreements, Stock Appreciation Right Agreements, or Stock Issuance Agreements to provide for,
among other things, any change or modification which the Administrator could have included in the original agreement or in furtherance
of the powers provided for herein; and (j) to make all other determinations necessary or advisable for the administration
of this Plan, but only to the extent not contrary to the express provisions of this Plan.  Any action, decision, interpretation
or determination made in good faith by the Administrator in the exercise of its authority conferred upon it under this Plan shall
be final and binding on the Company and all Participants.  Notwithstanding any term or provision in this Plan, the Administrator
shall not have the power or authority, by amendment or otherwise to extend the expiration date of an Option or Stock Appreciation
Right beyond the tenth (10th) anniversary of the date such Option or Stock Appreciation Right was granted.

 

    	12

     

    

 

Section
9.03Repricing Prohibited. Subject to Section 4.02, and except in connection with a corporate transaction involving the
Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation, split-up, spin-off, combination, or exchange of shares), neither the Committee nor the Board shall amend
the terms of outstanding awards to reduce the Exercise Price of outstanding Options or the Base Price of outstanding Stock Appreciation
Rights or cancel outstanding Options, Stock Appreciation Rights, or Restricted Shares in exchange for cash, other awards or Options
with an Exercise Price that is less than the Exercise Price of the original Options or Stock Appreciation Rights with a Base Price
that is less than the Base Price of the original Stock Appreciation Rights, without approval of the Company’s stockholders,
evidenced by a majority of votes cast.

 

Section
9.04Limitation on Liability.  No employee of the Company or member of the Board or Committee shall be subject to
any liability with respect to duties under the Plan unless the person acts fraudulently or in bad faith.  To the extent permitted
by law, the Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the
Plan, who was or is a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether
civil, criminal, administrative or investigative, by reason of such person’s conduct in the performance of duties under
the Plan.

 

Article
10.

CHANGE
IN CONTROL

 

Section
10.01Options and Stock Appreciation Rights. Vesting of all outstanding Options, Stock or Appreciation Rights shall accelerate
automatically effective as of immediately prior to the consummation of the Change in Control. In connection with such acceleration,
the Administrator in its discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange
of each Option or Stock Appreciation Right for an amount of cash or other property having a value equal to (i) with respect to
each Option, the amount (or “spread”) by which, (x) the value of the cash or other property that the Optionee would
have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had
the Option been exercised immediately prior to the Change in Control, exceeds (y) the Exercise Price of the Option, and (ii) with
respect to each Stock Appreciation Right, the value of the cash or other property that the Participant would have received had
the Stock Appreciation Right been exercised immediately prior to the Change in Control. The Administrator shall have the discretion
to provide in each Option Agreement and Stock Appreciation Right Agreement other terms and conditions that relate to vesting of
such Option or Stock Appreciation Right in the event of a Change in Control. The aforementioned terms and conditions may vary
in each Option Agreement and Stock Appreciation Right Agreement, and may be different from and have precedence over the provisions
set forth in this Section 10.01.

 

Section
10.02Restricted Stock Units and Restricted Shares. All Restricted Stock Units and unvested Restricted Shares shall vest
in full effective as of immediately prior to the consummation of the Change in Control. In connection with such acceleration,
the Administrator in its discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange
of each Restricted Stock Unit or Restricted Share for an amount of cash or other property having a value equal to the value of
the cash or other property that the Participant would have received had the Restricted Stock Unit or Restricted Share vested immediately
prior to the Change in Control. The Administrator shall have the discretion to provide in each Restricted Stock Unit Agreement
and Stock Issuance Agreement other terms and conditions that relate to vesting of such Restricted Stock Units and Restricted Shares
in the event of a Change in Control. The aforementioned terms and conditions may vary in each Restricted Stock Unit Agreement
and Stock Issuance Agreement, and may be different from and have precedence over the provisions set forth in this Section 10.02.

 

    	13

     

    

 

Article
11.

AMENDMENT
AND TERMINATION OF THE PLAN

 

Section
11.01Amendments. The Board may from time to time alter, amend, suspend or terminate this Plan in such respects as the
Board may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall substantially affect
or impair the rights of any Participant under an outstanding Option Agreement, Restricted Stock Unit Agreement, Stock Appreciation
Right Agreement, or Stock Issuance Agreement without such Participant’s consent. The Board may alter or amend the Plan to
comply with requirements under the Code relating to Incentive Options or other types of options which give Optionees more favorable
tax treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon any such alteration
or amendment, any outstanding Option granted hereunder may, if the Administrator so determines and if permitted by applicable
law, be subject to the more favorable tax treatment afforded to an Optionee pursuant to such terms and conditions.

 

Section
11.02Plan Termination. Unless this Plan shall theretofore have been terminated, the Plan shall terminate on the tenth
(10th) anniversary of the Effective Date and no Options, Restricted Stock Units, Stock Appreciation Rights, or Restricted Shares
may be granted under the Plan thereafter, but Option Agreements, Restricted Stock Unit Agreements, Stock Appreciation Right Agreements,
and Stock Issuance Agreements then outstanding shall continue in effect in accordance with their respective terms.

 

Article
12.

TAXES

 

Section
12.01Withholding. The Company shall have the power to withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options, Restricted
Stock Units, Stock Appreciation Rights, or Restricted Shares. To the extent permissible under applicable tax, securities and other
laws, the Administrator may, in its sole discretion and upon such terms and conditions as it may deem appropriate, permit a Participant
to satisfy his or her obligation to pay any such tax, in whole or in part, up to an amount determined on the basis of the highest
marginal tax rate applicable to such Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant
is entitled as a result of the exercise of an Option or Stock Appreciation Right or vesting of a Restricted Stock Unit or Restricted
Share, or (b) delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied
or delivered in satisfaction of the Participant’s tax withholding obligation shall be valued at their Fair Market Value
as of the date of measurement of the amount of income subject to withholding.

 

    	14

     

    

 

Section
12.02Compliance with Section 409A of the Code. Options, Restricted Stock Units, Stock Appreciation Rights, and Restricted
Shares will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the
requirements of Section 409A of the Code such that the grant, payment, settlement or deferral will not be subject to the additional
tax or interest applicable under Section 409A of the Code, except as otherwise determined in the sole discretion of the Administrator.
The Plan and each Option Agreement, Restricted Stock Unit Agreement, Stock Appreciation Right Agreement, and Stock Issuance Agreement
is intended to meet the requirements of Section 409A of the Code and will be construed and interpreted in accordance with such
intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that an Option, Restricted Stock
Unit, Stock Appreciation Right, or Restricted Share, or grant, payment, settlement or deferral thereof is subject to Section 409A
of the Code such Option, Restricted Stock Unit, Stock Appreciation Right, or Restricted Share will be granted, paid, settled or
deferred in a manner that will meet the requirements of Section 409A of the Code, such that the grant, payment, settlement or
deferral thereof will not be subject to the additional tax or interest applicable under Section 409A of the Code.

 

Article
13.

MISCELLANEOUS

 

Section
13.01Shareholder Approval of the Plan. The Plan shall be approved by a majority of the outstanding securities entitled
to vote by the later of (i) within twelve (12) months before or after the date the Plan is adopted, or (2) prior to or within
twelve (12) months of the granting of any Incentive Options or Nonqualified Options, or the issuance of any Restricted Stock Units,
Stock Appreciation Rights, or Restricted Shares. If any Incentive Options or Nonqualified Options is exercised, or any Restricted
Stock Units, Stock Appreciation Rights, or Restricted Shares is issued before security holder approval is obtained shall be rescinded
if security holder approval is not obtained in the manner described in the preceding sentence.

 

Section
13.02Benefits Not Alienable. Other than as provided above, benefits under this Plan may not be assigned or alienated,
whether voluntarily or involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without
effect.

 

Section
13.03No Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking on the part of the Company and shall
not be deemed to constitute a contract between the Company and any Participant to be consideration for, or an inducement to, or
a condition of, the employment of any Participant. Nothing contained in the Plan shall be deemed to give the right to any Participant
to be retained as an employee of the Company or any Affiliated Company or to interfere with the right of the Company or any Affiliated
Company to discharge any Participant at any time.

 

Section
13.04Application of Funds. The proceeds received by the Company from the sale of Common Stock pursuant to Option Agreements,
except as otherwise provided herein, will be used for general corporate purposes.

 

Section
13.05Annual Reports. During the term of this Plan, the Company will furnish to each Participant who does not otherwise
receive such materials, copies of all reports, proxy statements and other communications that the Company distributes generally
to its stockholders, including, but not limited to, financial statements.

 

15EX-4.1

 Exhibit 4.1 

NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (A) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT, (B) UNLESS IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT OR (C) UNLESS PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT. 

INSITE VISION INCORPORATED 

WARRANT TO PURCHASE COMMON STOCK 
  

			
	 Warrant No:
	 	Original Issue Date:             , 20[14/15/16]

 Insite Vision Incorporated, a Delaware corporation (the “Company”), hereby certifies that, for value
received,                  or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of
                 shares of common stock, $0.01 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant Shares”) at an exercise price per share equal to $         per share (as adjusted from time to time as provided in Section 9 herein,
the “Exercise Price”), at any time and from time to time on or after the date hereof (the “Original Exercise Date”) and through and including 5:30 p.m., New York City time, on
            , 20[19/20/21] (the “Expiration Date”), and subject to the following terms and conditions: 

This Warrant (this “Warrant”) is one of a series of similar warrants issued pursuant to that certain Securities Purchase Agreement, dated
October 9, 2014, by and among the Company and the Purchasers identified therein (the “Purchase Agreement”). All such warrants are referred to herein, collectively, as the “Warrants.” 

1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings
given to such terms in the Purchase Agreement. 
 2. Registration of Warrants. The Company shall register this Warrant, upon records to be maintained
by the Company for that purpose, which may be a third-party transfer agent (the “Warrant Register”), in the name of the record Holder (which shall include the initial Holder or, as the case may be, any registered assignee to which
this Warrant is permissibly assigned hereunder) 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. 

 3. Registration of Transfers. Subject to the restrictions on transfer set forth in Section 14 and
compliance with all applicable securities laws, the Company shall register the transfer of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached as Schedule 2
hereto duly completed and signed, to the Company’s transfer agent or to the Company at its address specified in the Purchase Agreement, as applicable, and (x) delivery, at the request of the Company, of an opinion of counsel reasonably
satisfactory to the Company to the effect that the transfer of such portion of this Warrant 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,
unless transferred pursuant to Rule 144 under the Securities Act, and (y) delivery by the transferee of a written statement to the Company certifying that the transferee is an “accredited investor” as defined in Rule 501(a) under the
Securities Act and making the representations and certifications set forth in Sections 2.2, 2.5, 2.7, 2.20 and 2.21 of the Purchase Agreement, to the Company at its address specified in the Purchase Agreement, unless transferred pursuant to Rule 144
under the Securities Act. Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”) evidencing the portion of this Warrant so
transferred shall be issued to the transferee, and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof
shall be deemed the acceptance by such transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant. The Company shall prepare, issue and deliver at its own expense any New Warrant
under this Section 3. 
 4. Exercise and Duration of Warrant. 

(a) All or any part of this Warrant shall be exercisable by the registered Holder in any manner permitted by Section 10 of this Warrant at
any time and from time to time on or after the Original Exercise Date and through and including 5:30 p.m. New York City time, on the Expiration Date. At 5:30 p.m., New York City time, on the Expiration Date, the portion (or all) of this Warrant not
exercised prior thereto shall be and become void and of no value and this Warrant shall be terminated and no longer outstanding. 
 (b) The
Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached as Schedule 1 hereto (the “Exercise Notice”), completed and duly signed, and (ii) payment of the
Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a “cashless exercise” if so indicated in the Exercise Notice and if a “cashless exercise” may occur at such
time pursuant to Section 10 below) (such aggregate payment, the “Exercise Consideration”). The date on which the Exercise Notice is delivered to the Company (as determined in accordance with the notice provisions hereof) or
payment of the Exercise Consideration is made to the Company, whichever is later, is an “Exercise Date.” The delivery by (or on behalf of) the Holder of the Exercise Notice and the Exercise Consideration as provided above shall
constitute the Holder’s certification to the Company that its representations contained in Sections 2.2, 2.5, 2.7. 2.20 and 2.21 of the Purchase Agreement are true and correct as of the Exercise Date as if remade in their entirety (or, in the
case of any transferee Holder that is not a party to the Purchase Agreement, such transferee Holder’s written certification to the Company that such representations are true and correct as to such assignee Holder as of the Exercise Date). The
Holder shall not be required to deliver the 

  
 2 

 
original Warrant in order to effect an exercise hereunder, but if it is not so delivered then such exercise shall constitute an agreement by the Holder to deliver the original Warrant to the
Company as soon as practicable thereafter. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares, if any. 
 5. Delivery of Warrant Shares. 

(a) Upon exercise of this Warrant and payment of the Exercise Consideration, the Company shall promptly (but in no event later than three
Trading Days after the Exercise Date) 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 Registration Statement is not
effective and the Holder directs the Company to deliver a certificate for the Warrant Shares in a name other than that of the Holder or an Affiliate of the Holder, it shall deliver to the Company on the Exercise Date an opinion of counsel reasonably
satisfactory to the Company to the effect that the issuance of such Warrant 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), (i) a certificate for the Warrant Shares issuable upon such exercise, free of restrictive legends, or (ii) an electronic delivery of the Warrant Shares to the Holder’s account at the Depository Trust Company
(“DTC”) or a similar organization, unless in the case of clause (i) and (ii) a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder is not then
effective, the Warrant Shares are not freely transferable without restriction under Rule 144 or the Holder is an Affiliate of the Company, in which case such Holder shall receive a certificate for the Warrant Shares issuable upon such exercise with
appropriate restrictive legends. The Holder, or any Person permissibly so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date. If the Warrant Shares
are to be issued free of all restrictive legends, the Company shall, upon the written request of the Holder, use its reasonable best efforts to deliver, or cause to be delivered, Warrant Shares hereunder electronically through DTC or another
established clearing corporation performing similar functions, if available; provided, that, the Company may, but will not be required to, change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through
such a clearing corporation. “Trading Day” means any day on which the Common Stock are traded on the Principal Trading Market, or, if the Principal Trading Market is not the principal trading market for the Common Stock, then on the
principal securities exchange or securities market on which the Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock are scheduled to trade on such exchange or market
for less than 4.5 hours or any day that the Common Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00:00 p.m., New York time). 
 (b) If by the close of the third Trading Day after delivery of a
properly completed Exercise Notice and the payment of the Exercise Consideration in any manner permitted by Section 10 of this Warrant, the Company fails to deliver to the Holder the required number of Warrant Shares in the manner required
pursuant to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder is required to purchase (in an 

  
 3 

 
open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall, in its sole discretion, within three Trading Days after the Holder’s request for payment, either (1) pay in cash to the Holder an amount equal to the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so purchased, at which point the number of Warrant Shares underlying this Warrant equal to the number of shares of Common Stock so purchased shall be forfeited and the
Company’s obligation to deliver such Warrant Shares (and to issue such Warrant Shares) shall terminate or (2) promptly honor its obligation to deliver to the Holder such Warrant Shares and pay cash to the Holder in an amount equal to the
excess (if any) of Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased in the Buy-In over the product of (A) the number of shares of Common Stock purchased in the Buy-In,
multiplied by (B) the closing bid price of a share of Common Stock on the Exercise Date. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable
confirmations and other evidence reasonably requested by the Company. 
 (c) To the extent permitted by law, the Company’s obligations
to issue and deliver Warrant Shares in accordance with and subject to the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision
hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the
Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant
Shares. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
 6. Charges,
Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense in
respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the
registration of any certificates for Warrant Shares or the Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring
this Warrant or receiving or selling Warrant Shares upon exercise hereof. 
 7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction (in such case) and, in each case, a customary and reasonable indemnity and surety bond, if requested by the Company. Applicants for a New Warrant under such circumstances shall also comply with such other

  
 4 

 
reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then
the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant. 
 8.
Reservation of Warrant Shares. The Company represents and warrants that on the date hereof, it has duly authorized and reserved, and covenants that it will at all times during the period this Warrant is outstanding reserve and keep available
out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares that are
initially issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of
Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully
paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the original issuance thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). The Company further
covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant. The Company represents and warrants that the Warrant Shares, when issued and paid for in accordance with the terms of the Transaction Documents and the Warrants, will be issued free and clear of all security
interests, claims, liens and other encumbrances other than restrictions imposed by applicable securities laws. The Company will take all such action as may be reasonably necessary to assure that such shares of Common Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Stock may be listed. 

9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section 9. 
 (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is
outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides its outstanding shares of Common Stock into a larger
number of shares, (iii) combines its outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of Common Stock any shares of capital stock of the Company, then in each such case the
Exercise Price shall be adjusted to a price determined by multiplying the Exercise Price in effect immediately prior to the effective date of such event by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding
on such effective date immediately before giving effect to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after giving effect to such event. Any adjustment made pursuant to clause
(i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii), (iii) or (iv) of this
paragraph shall become effective immediately after the effective date of such subdivision, combination or reclassification. 

  
 5 

 (b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding,
distributes to all holders of Common Stock for no consideration (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph), (iii) rights or warrants to subscribe
for or purchase any security, or (iv) any other asset, including cash (in each case, “Distributed Property”), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of stockholders
entitled to receive such distribution, the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in
respect of such number of Warrant Shares had the Holder been the record holder of such Warrant Shares immediately prior to such record date. 

(c) Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the Company effects (A) any merger of the
Company with (but not into) another Person, in which stockholders of the Company immediately prior to such transaction own less than a majority of the outstanding stock of the surviving entity, or (B) any merger or consolidation of the Company
into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer approved or authorized by the Company’s Board of
Directors is completed pursuant to which holders of at least a majority of the outstanding Common Stock tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by
Section 9(a) above) (in any such case, a “Fundamental Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant
(the “Alternate Consideration”), and the Holder shall no longer have the right to receive Warrant Shares upon exercise of this Warrant. The Company shall not effect any such Fundamental Transaction unless prior to or simultaneously
with the consummation thereof, any successor to the Company, surviving entity or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or Person shall assume the obligation to deliver to the Holder, such
Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be entitled to receive, and the other obligations under this Warrant. The provisions of this paragraph (c) shall similarly apply to subsequent transactions
of an analogous type to any Fundamental Transaction. Notwithstanding the foregoing, in the event of a Fundamental Transaction, then at the request of the Holder delivered at any time during the period commencing on the earliest to occur of
(x) the public disclosure of any Fundamental Transaction, (y) the consummation of any Fundamental Transaction and (z) the Holder first becoming aware of any Fundamental Transaction through the date that is 45 days after the public
disclosure of the consummation of such Fundamental Transaction by the Company pursuant to a Current Report on Form 8-K filed with the Commission, the Company (or the successor entity to the Company) shall purchase this Warrant from the Holder by
paying to the Holder, within five Trading Days after such request 

  
 6 

 
(or, if later, on the effective date of the Fundamental Transaction), cash in an amount equal to the Black Scholes Value on the date of such Fundamental Transaction of the remaining unexercised
portion of this Warrant. Any Holder that receives cash pursuant to the immediately preceding sentence shall not receive any Alternate Consideration. For purposes hereof, “Black Scholes Value” means the value of the Warrant based on the
Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg using (i) a price per share of Common Stock equal to the Weighted Average Price of the Common Stock for the Trading Day immediately preceding the date of
consummation of the applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of such date of request and (iii) an expected
volatility equal to the greater of (A) 100% and (B) the 30-day volatility obtained from the HVT function on Bloomberg determined as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction.
“Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market during the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00
p.m., New York City time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic
bulletin board for such security during the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00 p.m., New York City time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security
by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. If the Weighted Average
Price cannot be calculated for such security on such date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and
the Holder are unable to agree upon the fair market value of such security, then the Board of Directors of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination shall be binding
upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any share dividend, share split or other similar transaction during such period. 

(d) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) of this
Section 9, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the Exercise Consideration payable hereunder upon exercise of this
Warrant for the increased or decreased number of Warrant Shares shall be the same as the Exercise Consideration payable hereunder upon exercise of this Warrant for the number of Warrant Shares prior to such adjustments. 

(e) Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest share, as applicable. The
number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company. 

(f) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will, at
the written request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise

  
 7 

 
Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and
showing in reasonable detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s transfer agent. 

(g) Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i) declares a dividend or any other
distribution of cash, securities or other property in respect of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock of the Company, (ii) authorizes or approves,
enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then, except if such notice and the
contents thereof shall be deemed to constitute material non-public information, the Company shall deliver to the Holder a notice of such transaction at least ten (10) business days prior to the applicable record or effective date on which a
Person would need to hold Common Stock in order to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action
required to be described in such notice. 
 10. Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds;
provided, however, that if, on any Exercise Date there is not an effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then the Holder may, in its sole
discretion, satisfy its obligation to pay the Exercise Price through a “cashless exercise”, in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows: 

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

where: 

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

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

A = the average of the Closing Bid Price of the shares of Common Stock (as reported by Bloomberg Financial Markets) for the five consecutive
Trading Days ending on the date immediately preceding the Exercise Date. 
 B = the Exercise Price then in effect for the
applicable Warrant Shares at the time of such exercise. 
 For purposes of this Warrant, “Closing Bid Price” means, for any security as of
any date, the last reported closing bid price for such security on the Principal Trading Market for such security, as reported by Bloomberg Financial Markets, or, if such Principal Trading Market begins to operate on an extended hours basis and does
not designate the closing bid price, then the last bid price of such security prior to 4:00 p.m., New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last closing price of such security in the
over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial Markets, or, if no closing bid price is reported for such security by Bloomberg Financial Markets, the average of the bid prices of any
market makers for such 

  
 8 

 
security as reported in the “pink sheets” by OTC Markets Group Inc. If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases, the
Closing Bid Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then the Board of
Directors of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination shall be binding upon all parties absent demonstrable error. All such determinations shall be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 
 For purposes of
Rule 144, it is intended, understood and acknowledged that the provisions above permitting “cashless exercise” are intended, in part, to ensure that a full or partial exchange of this Warrant pursuant to such provisions will qualify as a
conversion, within the meaning of paragraph (d)(3)(ii) of Rule 144, and the holding period for the Warrant Shares shall be deemed to have commenced as to such original Holder, on the date this Warrant was originally issued pursuant to the Purchase
Agreement. 
 11. No Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any
fractional shares that would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to the next whole number and the Company shall pay the Holder in cash the fair market value (based on the Closing Bid Price) for any
such fractional shares. 
 12. Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any
Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in the Purchase Agreement
prior to 5:30 p.m., New York City time, on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in the Purchase Agreement on a day
that is not a Trading Day or later than 5:30 p.m., New York City time, on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service specifying next business day delivery, or
(iv) upon actual receipt by the Person to whom such notice is required to be given, if by hand delivery. The address and facsimile number of a Person for such notices or communications shall be as set forth in the Purchase Agreement unless
changed by such Person by two Trading Days’ prior notice to the other Person(s) in accordance with this Section 12. 
 13. Warrant Agent.
The Company shall serve as warrant agent under this Warrant. Upon fifteen (15) days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any
corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services
business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder
at the Holder’s last address as shown on the Warrant Register. 

  
 9 

 14. Limited Transferability. This Warrant (or any portion hereof) and the Warrant Shares may not be
offered for sale, sold, transferred or assigned, except pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act, and in compliance with any applicable state and federal securities laws. In connection with any transfer of this Warrant (or any portion hereof) and the Warrant Shares other than
pursuant to an effective registration statement or pursuant to Rule 144 under the Securities Act, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to
the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred securities under the Securities Act. 

15. Miscellaneous. 
 (a) No Rights as a
Stockholder. The Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained
in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action
(whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the
Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities,
whether such liabilities are asserted by the Company or by creditors of the Company. 
 (b) Authorized Shares. (i) The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation or of any requirements of the Trading Market upon which the Common
Stock may be listed. 
 (ii) Except and to the extent as waived or consented to by the Holder, the Company shall not by any action,
including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder
as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to
such increase in par value, (b) 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 (c) 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. 

  
 10 

 (iii) Before taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction
thereof. 
 (c) Successors and Assigns. Subject to the restrictions on transfer set forth in this Warrant and in the Purchase
Agreement, and compliance with applicable securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the written consent of the Holder except to a successor in the event of a Fundamental
Transaction. This Warrant shall be binding on and inure to the benefit of the Company and the Holder and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person
other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. 
 (d) Amendment and
Waiver. Except as otherwise provided herein, the provisions of the Warrants may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Holder. 
 (e) Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of, and
agreement to, all of the terms and conditions contained herein. 
 (f) Governing Law; Jurisdiction. ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH OF THE
COMPANY AND THE HOLDER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH
ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS
NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY
THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THE PURCHASE AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT
SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 

  
 11 

 (g) Headings. The headings herein are for convenience only, do not constitute a part of
this Warrant and shall not be deemed to limit or affect any of the provisions hereof. 
 (h) Severability. In case any one or more of
the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby, and the Company and the
Holder will attempt in good faith to agree upon a valid and enforceable provision which as closely as possible reflects the intent of the parties hereto, and upon so agreeing, shall incorporate such substitute provision in this Warrant. 

[SIGNATURE PAGE FOLLOWS] 

  
 12 

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

			
	INSITE VISION INCORPORATED
		
	 By:
	 	 
		 	 Name: Louis Drapeau

Title:  Vice President and Chief Financial Officer

 SCHEDULE 1 

INSITE VISION INCORPORATED 
 FORM
OF EXERCISE NOTICE 
 [To be executed by the Holder to purchase shares of Common Stock under the Warrant] 

Ladies and Gentlemen: 
 (1) The undersigned is the Holder of
Warrant No.              (the “Warrant”) issued by Insite Vision Incorporated, a Delaware corporation (the “Company”). Capitalized terms used herein and not
otherwise defined herein have the respective meanings set forth in the Warrant. 
 (2) The undersigned hereby exercises its right to purchase
             Warrant Shares pursuant to the Warrant. 
 (3) The Holder intends that
payment of the Exercise Price shall be made as (check one): 
  

			
	 ̈	  	Cash Exercise
		
	 ̈	  	“Cashless Exercise” under Section 10 of the Warrant

 (4) If the Holder has elected a Cash Exercise, the Holder shall pay the sum of
$             in immediately available funds to the Company in accordance with the terms of the Warrant. 

(5) Pursuant to this Exercise Notice, the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the Warrant. Please
issue (check applicable box): 
  

					
	 ̈	  	 A certificate or certificates representing the Holder Warrant Shares in the name of the undersigned or in such other name as is specified
below: 
   

		
	 ̈	  	The Holder Warrant Shares in electronic form to the following account:
			
		  	Name and Contact for Broker:	  	  

			
		  	Broker no:	  	  

			
		  	Account no:	  	  

			
		  	Account Holder:	  	  

 Dated:
                            ,
                 
  

			
	Name of Holder:	  	  

		
	By:	  	  

		
	Name:	  	  

		
	Title:	  	  

 (Signature must conform in all respects to name of Holder as specified on the face of the Warrant) 

 SCHEDULE 2 

INSITE VISION INCORPORATED 
 FORM
OF ASSIGNMENT 
 [To be completed and executed by the Holder only upon transfer of the Warrant] 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                                 (the “Transferee”) the right
represented by the within Warrant to purchase                  shares of Common Stock of Insite Vision Incorporated, a Delaware corporation (the
“Company”), to which the within Warrant relates and appoints
                                 attorney to transfer said right on the books of
the Company with full power of substitution in the premises. In connection therewith, the undersigned represents, warrants, covenants and agrees to and with the Company that: 
  

	 	a.	the offer and sale of the Warrant contemplated hereby is being made in compliance with Section 4(a)(1) of the United States Securities Act of 1933, as amended (the “Securities Act”), or another valid
exemption from the registration requirements of Section 5 of the Securities Act and in compliance with all applicable securities laws of the states of the United States; 

 

	 	b.	the undersigned has not offered to sell the Warrant by any form of general solicitation or general advertising, including, but not limited to, any advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, and any seminar or meeting whose attendees have been invited by any general solicitation or general advertising; 

 

	 	c.	the undersigned has read the Transferee’s investment letter included herewith, and to its actual knowledge, the statements made therein are true and correct; and 

 

	 	d.	the undersigned understands that the Company may condition the transfer of the Warrant contemplated hereby upon the delivery to the Company by the undersigned or the Transferee, as the case may be, of a written opinion
of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Securities Act and under applicable securities
laws of the states of the United States. 

  

							
	Dated:                         ,
                	 		 		 	  

				
		 		 		 	(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)
				
		 		 		 	  

		 		 		 	Address of Transferee
	In the presence of:

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