Document:

Exhibit 4.2

 

FIRST BUSEY CORPORATION,

Company

 

and

 

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,

Trustee

 

FOURTH SUPPLEMENTAL INDENTURE

 

dated as of June 2, 2022 

 

to

 

INDENTURE

 

dated as of May 25, 2017

 

Relating to

 

5.000% Fixed-to-Floating Rate Subordinated Notes
due 2032

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Article 1	DEFINITIONS	1
	Article 2	GENERAL TERMS AND CONDITIONS OF THE NOTES	6

 

		2.01	Designation and Principal Amount	6
		2.02	Maturity	6
		2.03	Form and Payment	7
		2.04	Interest	7
		2.05	Effect of Benchmark Transition Event	8
		2.06	Subordination	10
		2.07	Notes Not Convertible or Exchangeable	10
		2.08	No Sinking Fund	10

 

	Article 3	EVENTS OF DEFAULT	10

 

		3.01	Events of Default	10

 

	Article 4	REDEMPTION OF THE NOTES	10

 

		4.01	Optional Redemption	10

 

	Article 5	MISCELLANEOUS	12

 

		5.01	Ratification of Base Indenture	12
		5.02	Trust Indenture Act Controls	12
		5.03	Conflict with Base Indenture	12
		5.04	Governing Law	12
		5.05	Successors	12
		5.06	Counterparts	12
		5.07	Trustee Disclaimer	13

 

    -i-

     

    

 

FOURTH SUPPLEMENTAL
INDENTURE

 

FOURTH SUPPLEMENTAL INDENTURE,
dated as of June 2, 2022 (this “Fourth Supplemental Indenture”), to the Base Indenture (defined below) between
First Busey Corporation, a Nevada corporation (the “Company”), and U.S. Bank Trust Company, National Association, a
national banking association, as successor in interest to U.S. Bank National Association, as Trustee (the “Trustee”).

 

R E C I T A
L S

 

WHEREAS, the Company
has executed and delivered to the Trustee the Indenture, dated as of May 25, 2017 (the “Base Indenture”, and,
as supplemented by this Fourth Supplemental Indenture, the “Indenture”), providing for the issuance from time to time
of its debt securities;

 

WHEREAS, pursuant to
the terms of the Base Indenture, the Company desires to provide for the establishment of a new series of its Subordinated Securities to
be known as its 5.000% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “Notes”), the form and substance of
such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Fourth Supplemental
Indenture; and

 

WHEREAS, the Company
has requested that the Trustee execute and deliver this Fourth Supplemental Indenture, and all requirements necessary to make this Fourth
Supplemental Indenture a valid instrument in accordance with its terms, and to make the Notes, when executed by the Company and authenticated
and delivered by the Trustee, the valid and legally binding obligations of the Company, and all acts and things necessary have been done
and performed to make this Fourth Supplemental Indenture enforceable in accordance with its terms, and the execution and delivery of this
Fourth Supplemental Indenture have been duly authorized in all respects.

 

W I T N E S
S E T H:

 

NOW, THEREFORE, in
consideration of the premises contained herein, each party agrees for the benefit of each other party and for the equal and ratable benefit
of the Holders of the Notes, as follows:

 

Article 1

DEFINITIONS

 

Terms used but not defined
in this Fourth Supplemental Indenture shall have the meanings ascribed to them in the Base Indenture. References in this Fourth Supplemental
Indenture to article and section numbers shall be deemed to be references to article and section numbers of this Fourth Supplemental
Indenture unless otherwise specified. For purposes of this Fourth Supplemental Indenture, the following terms have the meanings ascribed
to them as follows:

 

“Base Indenture”
has the meaning provided in the recitals.

 

“Benchmark”
means, initially, Three-Month Term SOFR; provided that if the Calculation Agent determines on or prior to the Reference Time that a Benchmark
Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark,
then “Benchmark” means the applicable Benchmark Replacement.

 

     

     

    

 

“Benchmark
Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement
Adjustment for such Benchmark; provided that if: (i) the Calculation Agent cannot determine the Interpolated Benchmark as of
the Benchmark Replacement Date, or (ii) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event
and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated
Benchmark with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the first
alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement Date:
(i) Compounded SOFR; (ii) the sum of: (a) the alternate rate that has been selected or recommended by the Relevant
Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (b) the
Benchmark Replacement Adjustment; (iii) the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement
Adjustment; and (iv) the sum of: (a) the alternate rate that has been selected by the Calculation Agent as the replacement
for the then-current Benchmark for the applicable Corresponding Tenor, giving due consideration to any industry-accepted rate as a
replacement for the then-current Benchmark for U.S. Dollar-denominated floating rate securities at such time, and (b) the
Benchmark Replacement Adjustment. If the Benchmark Replacement, as determined pursuant to clause (i), (ii), (iii) or (iv) above
would be less than zero, the Benchmark Replacement will be deemed to be zero.

 

“Benchmark Replacement
Adjustment” means the first alternative set forth in the order below that can be determined by the Calculation Agent as of the
Benchmark Replacement Date: (i) the spread adjustment to the then-existing spread, or method for calculating or determining such
spread adjustment (which may be a positive or negative value or zero), that has been selected or recommended by the Relevant Governmental
Body for the applicable Unadjusted Benchmark Replacement; (ii) if the applicable Unadjusted Benchmark Replacement is equivalent to
the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and (iii) the spread adjustment to the then-existing spread (which may
be a positive or negative value or zero) that has been selected by the Calculation Agent giving due consideration to any industry-accepted
spread adjustment or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with
the applicable Unadjusted Benchmark Replacement for U.S. Dollar-denominated floating rate securities at such time.

 

“Benchmark Replacement
Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including
changes to the definition of “interest period,” timing and frequency of determining rates with respect to each interest period
and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may
be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if
the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation
Agent determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Calculation Agent determines
is reasonably necessary).

 

“Benchmark Replacement
Date” means the earliest to occur of the following events with respect to the then-current Benchmark: (i) in the case of
clause (i) of the definition of “Benchmark Transition Event,” the relevant Reference Time in respect of any determination;
(ii) in the case of clause (ii) or (iii) of the definition of “Benchmark Transition Event,” the later of (a) the
date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the
Benchmark permanently or indefinitely ceases to provide the Benchmark; or (iii) in the case of clause (iv) of the definition
of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein. For the
avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference
Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such
determination. Further, for the avoidance of doubt, for purposes of this definition, references to the Benchmark also include any reference
rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to the Benchmark would include SOFR).

 

    2

     

    

 

“Benchmark Transition
Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark: (i) if the
Benchmark is Three-Month Term SOFR, (a) the Relevant Governmental Body has not selected or recommended a forward-looking term rate
for a tenor of three months based on SOFR, (b) the development of a forward-looking term rate for a tenor of three months based on
SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (c) the Calculation Agent determines
that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible; (ii) a public
statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased
or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there
is no successor administrator that will continue to provide the Benchmark; (iii) a public statement or publication of information
by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency
official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for
the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which
states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided
that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or
(iv) a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing
that the Benchmark is no longer representative. For the avoidance of doubt, for purposes of this definition, references to the Benchmark
also include any reference rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to the Benchmark
would include SOFR).

 

“Business Day”
means any calendar day that is not a Saturday, Sunday or legal holiday in New York, New York, and on which the trustee and commercial
banks are open for business in New York, New York; provided.

 

“Calculation Agent”
means the agent appointed by the Company prior to the commencement of the Floating Rate Period (which may include the Company or any of
its affiliates) to act in accordance with Section 2.04.

 

“Company”
has the meaning provided in the preamble.

 

“Compounded SOFR”
means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions
for this rate being established by the Calculation Agent in accordance with: (i) the rate, or methodology for this rate, and conventions
for this rate selected or recommended by the Relevant Governmental Body for determining Compounded SOFR; provided that: (ii) if,
and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with clause (i)
above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Calculation Agent giving
due consideration to any industry-accepted market practice for U.S. Dollar-denominated floating rate securities at such time.

 

“Corresponding Tenor”
with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding business
day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Depository”
has the meaning provided in Section 2.03(b).

 

“Federal Reserve”
means the Board of Governors of the Federal Reserve System.

 

“Fixed Period Interest
Payment Date” has the meaning provided in Section 2.04(a).

 

    3

     

    

 

“Fixed Rate Period”
has the meaning provided in Section 2.04(a).

 

“Floating Period
Interest Payment Date” has the meaning provided in Section 2.04(b).

 

“Floating Rate Interest
Period” has the meaning provided in Section 2.04(b).

 

“Floating Rate Period”
has the meaning provided in Section 2.04(b).

 

“FRBNY”
means the Federal Reserve Bank of New York.

 

“FRBNY’s Website”
means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.

 

“Indenture”
has the meaning provided in the recitals.

 

“Independent Tax
Counsel” means a law firm, a member of a law firm or an independent practitioner that is experienced in matters of federal income
taxation law, including the deductibility of interest payments made with respect to corporate debt instruments, and shall include any
Person who, under the standards of professional conduct then prevailing and applicable to such counsel, would not have a conflict of interest
in representing the Company or the Trustee in connection with providing the legal opinion contemplated by the definition of the term “Tax
Event.”

 

“Interest Payment
Date” has the meaning provided in Section 2.04(b).

 

“Interpolated Benchmark”
with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (i) the
Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor, and (ii) the
Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

 

“Investment Company
Event” means any event whereby the Company becomes required, or there is more than an insubstantial risk that the Company will
be required, within ninety (90) days, to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

 

“ISDA”
means the International Swaps and Derivatives Association, Inc. or any successor.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by ISDA, as amended or supplemented from time to time, or any successor definitional booklet
for interest rate derivatives published from time to time.

 

“ISDA Fallback Adjustment”
means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing
the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable
tenor.

 

“ISDA Fallback Rate”
means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an
index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

 

“Maturity Date”
has the meaning provided in Section 2.02.

 

“Notes”
has the meaning provided in the recitals.

 

“Paying Agent”
has the meaning provided in Section 2.03(d).

 

    4

     

    

 

“Redemption Date”
means each date, if any, on which Notes are redeemed pursuant to Section 4.01 hereof.

 

“Reference Time”
with respect to any determination of the Benchmark means: (i) if the Benchmark is Three-Month Term SOFR, the time determined by the
Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (ii) if the Benchmark is not Three-Month Term
SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.

 

“Regulatory Capital
Treatment Event” shall mean the Company’s good faith determination that as a result of:

 

(i)                
any amendment to, or change in, the laws, rules or regulations of the United States (including, for the avoidance of doubt, any
agency or instrumentality of the United States, including the Federal Reserve and other appropriate federal bank regulatory agencies)
or any political subdivision of or in the United States that is enacted or becomes effective after the initial issuance of the Notes;
or

 

(ii)              
any final official administrative decision or judicial decision or administrative action or other official pronouncement interpreting
or applying those laws, rules or regulations or policies with respect thereto that is made, adopted, approved or effective after the initial
issuance of the Notes,

 

in each case, there is more than an insubstantial
risk that the Company will not be entitled to treat the Notes then outstanding as “Tier 2 Capital” (or its equivalent) for
purposes of the capital adequacy rules of the Federal Reserve (or, as and if applicable, the capital adequacy rules or regulations of
any successor appropriate federal banking agency) as then in effect and applicable, for so long as any Note is outstanding. “Appropriate
federal banking agency” means the “appropriate federal banking agency” with respect to the Company as that term is defined
in Section 3(q) of the Federal Deposit Insurance Act or any successor provision.

 

“Relevant Governmental
Body” means the Federal Reserve and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or
the FRBNY or any successor thereto.

 

“SOFR”
means the secured overnight financing rate published by the FRBNY, as the administrator of the Benchmark (or a successor administrator),
on the FRBNY’s Website.

 

“Tax Event”
means the receipt by the Company of an opinion of Independent Tax Counsel to the effect that as a result of any amendment to, or change
(including any announced prospective change) in, the laws or any regulations of the United States or any political subdivision or taxing
authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying
such laws or regulations, which amendment or change is effective or which pronouncement or decision is announced on or after the date
of the issuance of the Notes, there is more than an insubstantial risk that the interest payable on the Notes is not, or within 90 days
of receipt of such opinion, will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes.

 

“Term SOFR”
means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

 

“Term SOFR Administrator”
means any entity designated by the Relevant Governmental Body as the administrator of Term SOFR (or a successor administrator).

 

    5

     

    

 

“Fourth Supplemental
Indenture” has the meaning provided in the preamble.

 

“Three-Month Term
SOFR” means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference
Time for any Floating Rate Interest Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions.
All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary, to the nearest one-hundred-thousandth
of a percentage point, with 0.000005% rounded up to 0.00001%.

 

“Three-Month Term
SOFR Conventions” means any determination, decision or election with respect to any technical, administrative or operational
matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of “interest
period,” timing and frequency of determining Three-Month Term SOFR with respect to each interest period and making payments of interest,
rounding of amounts or tenors, and other administrative matters) that the Calculation Agent decides may be appropriate to reflect the
use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Calculation Agent
decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that
no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably
necessary).

 

“Trustee”
has the meaning provided in the preamble until a successor replaces it in accordance with the applicable provisions of the Indenture and
thereafter means the successor serving hereunder.

 

“Unadjusted Benchmark
Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

“United States”
or “U.S.” means the United States of America, its territories and possessions, any state of the United States, and
the District of Columbia.

 

Article 2

GENERAL TERMS AND CONDITIONS OF THE NOTES

 

2.01          
Designation and Principal Amount.

 

(a)               
The Notes are hereby authorized and are designated the “5.000% Fixed-to-Floating Rate Subordinated Notes due 2032,”
unlimited in aggregate principal amount. The Notes issued on the date hereof pursuant to the terms of the Indenture shall be in an aggregate
principal amount of $100,000,000, which amount shall be set forth in the written order of the Company for the authentication and delivery
of the Notes pursuant to Article 2 of the Base Indenture.

 

(b)               
The Company may, from time to time, without notice to or the consent of the Holders of the Notes, create and issue additional Subordinated
Securities equal in rank to and having the same terms and conditions in all respects as the Notes issued on the date hereof (except for
issue date, the offering price, the interest commencement date and the first interest payment date), provided that such additional Subordinated
Securities either shall be fungible with the original Notes, for federal income tax purposes or shall be issued under a different CUSIP
number. Any such additional Subordinated Securities will be consolidated and form a single series with the Notes.

 

2.02          
Maturity. The principal amount of the Notes shall be payable on June 15, 2032 (the “Maturity Date”) unless
redeemed prior to such date.

 

    6

     

    

 

2.03          
 Form and Payment.

 

(a)               
The Notes shall be issued only in fully registered book-entry form, without coupons, evidenced by global notes substantially in
the form set forth in Exhibit A attached hereto, which is incorporated herein and made part hereof. The terms and provisions
contained in the Notes shall constitute, and expressly are made a part of this Fourth Supplemental Indenture. The Notes shall be issued
in denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

(b)               
Payments of principal and interest on the global notes representing the Notes shall be made to the Paying Agent (defined below)
which in turn shall make payment to The Depository Trust Company as the depository with respect to the Notes (the “Depository”)
or its nominee.

 

(c)               
The global notes representing the Notes shall be delivered to the Trustee as Custodian for the Depository and shall be registered,
at the request of the Depository, in the name of Cede & Co.

 

(d)               
U.S. Bank Trust Company, National Association shall act as paying agent for the Notes (the “Paying Agent”).
The Company may appoint and change the Paying Agent without prior notice to the Holders.

 

2.04          
Interest.

 

(a)               
The Notes will bear interest at a fixed rate of 5.000% per annum from and including June 2, 2022 to but excluding June 15, 2027
(the “Fixed Rate Period”). Interest accrued on the Notes during the Fixed Rate Period will be payable semi-annually
in arrears on June 15 and December 15 of each year, commencing on December 15, 2022 (each such date a “Fixed Period
Interest Payment Date”). The interest payable during the Fixed Rate Period will be paid to each holder in whose name a Note
is registered at the close of business (whether or not a Business Day) on the May 31 or November 30 immediately preceding the
applicable Fixed Period Interest Payment Date.

 

(b)               
From and including June 15, 2027, to but excluding the Maturity Date (the “Floating Rate Period”) the Notes
will bear interest at a floating rate per annum equal to the then-current Three-Month Term SOFR plus a spread of 252 basis points, or
such other rate as determined pursuant to this Fourth Supplemental Indenture, provided that in no event shall the applicable floating
interest rate be less than zero per annum for any Floating Rate Interest Period. A “Floating Rate Interest Period”
means, the period from, and including, each Floating Period Interest Payment Date (as defined below) to, but excluding, the next succeeding
Floating Period Interest Payment Date, except for the initial Floating Rate Interest Period, which will be the period from, and including,
June 15, 2027 to, but excluding, the next succeeding Floating Period Interest Payment Date. During the Floating Rate Period, interest
on the Notes will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing
on September 15, 2027 to but excluding the Maturity Date (unless redeemed prior to the Maturity Date) (each such date, a “Floating
Period Interest Payment Date”, together with each Fixed Period Interest Payment Date, an “Interest Payment Date”).
The interest payable during the Floating Rate Period will be paid to each holder in whose name a Note is registered at the close of business
(whether or not a Business Day) on February 28, May 31, August 31 and November 30 immediately preceding the applicable
Floating Period Interest Payment Date, provided that interest payable on the Maturity Date shall be payable to the person to whom the
principal hereof is payable.

 

    7

     

    

 

(c)                If
any Interest Payment Date, including the Maturity Date, falls on a day that is not a Business Day, the related payment will be made
on the next succeeding Business Day with the same force and effect as if made on the day such payment was due (unless, with respect
to a Floating Period Interest Payment Date, such day falls in the next calendar month, in which case the Floating Period Interest
Payment Date will instead be the immediately preceding day that is a Business Day, and interest will accrue to the Floating Period
Interest Payment Date as so adjusted), and no interest will accrue on the amount so payable for the period from and after such
Interest Payment Date or the Maturity Date, as the case may be. Interest will be computed on the basis of a 360 day year consisting
of 12 30-day months to, but excluding, June 15, 2027, and, thereafter, interest will be computed on the basis of the actual number
of days in a Floating Rate Interest Period and a 360-day year to, but excluding, June 15, 2032. The Company or the Calculation
Agent, as applicable, shall calculate the amount of interest payable on any Interest Payment Date and the Trustee shall have no duty
to confirm or verify any such calculation. U.S. Dollar amounts resulting from interest calculations will be rounded to the nearest
cent, with one-half cent being rounded upward.

 

(d)               
The Company shall take such actions as are necessary to ensure that from the commencement of the Floating Rate Period for so long
as any of the Notes remain outstanding there will at all times be a Calculation Agent appointed to calculate Three-Month Term SOFR in
respect of each Floating Rate Period. The calculation of Three-Month Term SOFR for each applicable Floating Rate Period by the Calculation
Agent will (in the absence of manifest error) be final and binding. The Calculation Agent’s determination of any interest rate and
its calculation of interest payments for any period will be maintained on file at the Calculation Agent’s principal offices, will
be made available to any Holder of the Notes upon request and will be provided to the Trustee. The Calculation Agent shall have all the
rights, protections and indemnities afforded to the Trustee under the Base Indenture and hereunder. The Calculation Agent may be removed
by the Company at any time. If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by the Company,
the Company will promptly appoint a replacement Calculation Agent. The Calculation Agent may not resign its duties without a successor
having been duly appointed; provided, that if a successor Calculation Agent has not been appointed by the Company and such successor accepted
such position within 30 days after the giving of notice of resignation by the Calculation Agent, then the resigning Calculation Agent
may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Calculation Agent
with respect to such series. The Trustee shall not be under any duty to succeed to, assume or otherwise perform, any duties of the Calculation
Agent, or to appoint a successor or replacement in the event of the Calculation Agent’s resignation or removal or to replace the
Calculation Agent in the event of a default, breach or failure of performance on the part of the Calculation Agent with respect to the
Calculation Agent’s duties and obligations hereunder. For the avoidance of doubt, if at any time there is no Calculation Agent appointed
by the Company, then the Company shall be the Calculation Agent. The Company may appoint itself or any of its affiliates to be the Calculation
Agent.

 

2.05          
Effect of Benchmark Transition Event.

 

(a)               
If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
on or prior to the Reference Time in respect of any determination of the Benchmark on any date, then the Benchmark Replacement will replace
the then-current Benchmark for all purposes relating to the Notes during the Floating Rate Period in respect of such determination on
such date and all determinations on all subsequent dates. In connection with the implementation of a Benchmark Replacement, the Calculation
Agent will have the right to make Benchmark Replacement Conforming Changes from time to time.

 

(b)                Notwithstanding
anything set forth in Section 2.04, if the Calculation Agent determines on or prior to the relevant Reference Time that a
Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, then the
provisions set forth in this Section 2.05 will thereafter apply to all determinations of the interest rate on the Notes during
the Floating Rate Period. After a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, the interest
rate on the Notes for each interest period during the Floating Rate Period will be an annual rate equal to the Benchmark Replacement
plus 252 basis points.

 

    8

     

    

 

(c)               
The Calculation Agent is expressly authorized to make certain determinations, decisions and elections under the terms of the Notes,
including with respect to the use of Three-Month Term SOFR as the Benchmark and under this Section 2.05. Any determination, decision
or election that may be made by the Calculation Agent under the terms of the Notes, including any determination with respect to a tenor,
rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking
any action or selection (i) will be conclusive and binding on the Holders of the Notes and the Trustee absent manifest error, (ii) if
made by the Company as Calculation Agent, will be made in the Company’s sole discretion, (iii) if made by a Calculation Agent
other than the Company, will be made after consultation with the Company, and the Calculation Agent will not make any such determination,
decision or election to which the Company reasonably objects and (iv) notwithstanding anything to the contrary herein or in the Base
Indenture, shall become effective without consent from the Holders of the Notes, the Trustee or any other party. If the Calculation Agent
fails to make any determination, decision or election that it is required to make under the terms of the Notes, then the Company will
make such determination, decision or election on the same basis as described above.

 

(d)               
The Company (or its Calculation Agent) shall notify the Trustee in writing (i) upon the occurrence of the Benchmark Transition
Event or the Benchmark Replacement Date, and (ii) of any Benchmark Replacements, Benchmark Replacement Conforming Changes and other
items affecting the interest rate on the Notes after a Benchmark Transition Event.

 

(e)               
The Trustee (including in its capacity as Paying Agent) shall have no (i) responsibility or liability for the (A) Three-Month
Term SOFR Conventions, (B) selection of an alternative reference rate to Three-Month Term SOFR (including, without limitation, whether
the conditions for the designation of such rate have been satisfied or whether such rate is a Benchmark Replacement or an Unadjusted Benchmark
Replacement), (C) determination or calculation of a Benchmark Replacement, or (D) determination of whether a Benchmark Transition
Event or Benchmark Replacement Date has occurred, and in each such case under clauses (A) through (D) above shall be entitled to
conclusively rely upon the selection, determination, and/or calculation thereof as provided by the Company or its Calculation Agent, as
applicable, and (ii) liability for any failure or delay in performing its duties hereunder as a result of the unavailability of a
Benchmark rate as described in the definition thereof, including, without limitation, as a result of the Company’s or Calculation
Agent’s failure to select a Benchmark Replacement or the Calculation Agent’s failure to calculate a Benchmark. The Trustee
shall be entitled to rely conclusively on all notices from the Company or its Calculation Agent regarding any Benchmark or Benchmark Replacement,
including, without limitation, in regards to Three-Month Term SOFR Conventions, a Benchmark Transition Event, Benchmark Replacement Date,
and Benchmark Replacement Conforming Changes. The Trustee shall not be responsible or liable for the actions or omissions of the Calculation
Agent, or any failure or delay in the performance of the Calculation Agent’s duties or obligations, nor shall it be under any obligation
to monitor or oversee the performance of the Calculation Agent. The Trustee shall be entitled to conclusively rely on any determination
made, and any instruction, notice, Officers’ Certificate or other instruction or information provided by the Calculation Agent without
independent verification, investigation or inquiry of any kind. The Trustee shall not be obligated to enter into any amendment or supplement
hereto that adversely impacts its rights, duties, obligations, immunities or liabilities (including, without limitation, in connection
with the adoption of any Benchmark Replacement Conforming Changes).

 

(f)                 If
the then-current Benchmark is Three-Month Term SOFR, the Calculation Agent will have the right to establish the Three-Month Term
SOFR Conventions, and if any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest
during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions determined by the Calculation
Agent, then the relevant Three-Month Term SOFR Conventions will apply.

 

    9

     

    

 

2.06          
Subordination. Article 14 of the Base Indenture as it applies to Subordinated Securities shall apply to the Notes.

 

2.07          
Notes Not Convertible or Exchangeable. The Notes shall not be convertible into, or exchangeable for, any other securities
of the Company, except that the Notes shall be exchangeable for other Notes to the extent provided for in the Base Indenture.

 

2.08          
No Sinking Fund. No sinking fund shall be provided with respect to the Notes.

 

Article 3

EVENTS OF DEFAULT

 

3.01          
Events of Default. Article 5 of the Base Indenture as it relates to Subordinated Securities shall apply to the Notes.

 

Article 4

REDEMPTION OF THE NOTES

 

4.01          
Optional Redemption.

 

(a)               
The Notes shall not be redeemable prior to June 15, 2027, except as provided in Section 4.01(b). The Notes shall be redeemable,
in whole or in part, at the option of the Company beginning with the Interest Payment Date on June 15, 2027 and on any Interest Payment
Date thereafter, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest
to, but excluding, the Redemption Date, and any such redemption may be subject to the satisfaction of one or more conditions precedent
set forth in the applicable notice of redemption.

 

(b)               
The Company may, at its option, redeem the Notes at any time before the Maturity Date in whole, but not in part, at any time within
90 days of the occurrence of a Tax Event, a Regulatory Capital Treatment Event or an Investment Company Event. Any such redemption will
be at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding,
the Redemption Date, and any such redemption may be subject to the satisfaction of one or more conditions precedent set forth in the applicable
notice of redemption.

 

(c)               
If the Company elects to redeem the Notes pursuant to the optional redemption provisions of Section 4.01(a) or 4.01(b) of
this Fourth Supplemental Indenture, at least 45 days prior to the Redemption Date (unless a shorter notice shall be agreed to in writing
by the Trustee) but not more than 60 days before the Redemption Date, the Company shall furnish to the Trustee a Company Officers’
Certificate setting forth (i) the applicable section of the Indenture pursuant to which the redemption shall occur, (ii) the
Redemption Date, (iii) the principal amount of Notes to be redeemed, (iv) the redemption price and (v) a Company Board
Resolution.

 

(d)                In
the case of a redemption pursuant to Section 4.01(a), if less than all of the Notes are to be redeemed and the Notes are global
securities, the Notes to be redeemed shall be selected on a pro rata basis or by such other method of selection, if any, that the
Trustee deems fair and appropriate (and in accordance with the procedures of the Depositary). The Trustee shall promptly notify in
writing the Company of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the
principal amount thereof to be redeemed. Notes and portions of Notes selected shall be in minimum amounts of $1,000 or integral
multiples of $1,000 in excess thereof; no Notes of a principal amount of $1,000 or less shall be redeemed in part, except that if
all of the Notes of a Holder are to be redeemed, the entire outstanding amount of Notes held by such Holder, even if not equal to
$1,000 or an integral multiple of $1,000 in excess thereof, shall be redeemed. Except as provided in the preceding sentence,
provisions of the Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption.

 

    10

     

    

 

(e)               
Any optional redemption of the Notes will be subject to the receipt of the approval of the Federal Reserve, to the extent then
required under applicable laws or regulations, including capital regulations.

 

(f)                
In the case of any redemption, at least 30 days but no more than 60 days before the Redemption Date, the Company shall send in
accordance with the applicable procedures of the Depository, or if the Notes are not then global securities the Company shall mail, or
cause to be mailed, a notice of redemption by first-class mail to each Holder of Notes to be redeemed at such Holder’s registered
address appearing on the register. The notice shall identify the Notes to be redeemed (including the CUSIP and/or ISIN numbers thereof,
if any) and shall state:

 

(i)                
the Redemption Date;

 

(ii)              
the principal amount of the Notes that are being redeemed;

 

(iii)            
each Place of Payment;

 

(iv)             
the redemption price and accrued interest to the Redemption Date that is payable pursuant to Section 11.02 of the Base Indenture;

 

(v)               
if fewer than all outstanding Notes are to be redeemed, the portion of the principal amount of such Notes to be redeemed and that,
after the Redemption Date and upon surrender of such Notes, if applicable, a new Note or Notes in principal amount equal to the unredeemed
portion will be issued;

 

(vi)             
the name and address of the Paying Agent;

 

(vii)           
that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(viii)         
that unless the Company defaults in making the redemption payment, interest on Notes called for redemption ceases to accrue on
and after the Redemption Date;

 

(ix)             
if such notice is conditioned upon the satisfaction of one or more conditions precedent, the nature of such conditions precedent;

 

(x)               
the applicable section of the Indenture pursuant to which the Notes called for redemption are being redeemed; and

 

(xi)             
that no representation is made as to the correctness or accuracy of the CUSIP and/or ISIN numbers, if any, listed in such notice
or printed on the Notes.

 

    11

     

    

 

The Company may state in the
notice of redemption that payment of the redemption price and performance of its obligations with respect to redemption or purchase may
be performed by another Person.

 

At the Company’s request,
the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, that the Company shall have
delivered to the Trustee, at least 45 days prior to the Redemption Date, a Company Officers’ Certificate requesting that the Trustee
give such notice and attaching a copy of such notice, which shall set forth the information to be stated in such notice as provided in
this Section 4.01. If any condition precedent to a redemption has not been satisfied, the Company will provide written notice to
the Trustee not less than two Business Days prior to the Redemption Date that such condition precedent has not been satisfied, the notice
of redemption is rescinded or delayed and the redemption subject to the satisfaction of such condition precedent shall not occur or shall
be delayed. The Trustee shall promptly send a copy of such notice to the Holders of the Notes.

 

Article 5

MISCELLANEOUS

 

5.01          
Ratification of Base Indenture. The Base Indenture, as supplemented and amended by this Fourth Supplemental Indenture, is
in all respects ratified and confirmed, and this Fourth Supplemental Indenture shall be deemed part of the Base Indenture in the manner
and to the extent herein and therein provided.

 

5.02          
Trust Indenture Act Controls. If any provision hereof limits, qualifies or conflicts with the duties imposed by Section 310
through 317 of the Trust Indenture Act of 1939, the imposed duties shall control.

 

5.03          
Conflict with Base Indenture. To the extent not expressly amended or modified by this Fourth Supplemental Indenture, the
Base Indenture shall remain in full force and effect. If any provision of this Fourth Supplemental Indenture relating to the Notes is
inconsistent with any provision of the Base Indenture, the provision of this Fourth Supplemental Indenture shall control.

 

5.04          
Governing Law. THIS FOURTH SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE
OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE.

 

5.05          
Successors. All agreements of the Company in the Base Indenture, this Fourth Supplemental Indenture and the Notes shall
bind its successors. All agreements of the Trustee in the Base Indenture and this Fourth Supplemental Indenture shall bind its successors.

 

5.06          
Counterparts. This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to
be an original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Fourth
Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this
Fourth Supplemental Indenture as to the parties hereto and may be used in lieu of the original Fourth Supplemental Indenture and signature
pages for all purposes.

 

    12

     

    

 

5.07           Trustee
Disclaimer. The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Fourth
Supplemental Indenture or the Notes, shall not be accountable for the Company’s use of the proceeds from the sale of the
Notes, shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee or any
money paid to the Company pursuant to the terms of the Indenture, and shall not be responsible for any statement of the Company in
this Fourth Supplemental Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the
Trustee’s certificate of authentication.

 

[Signature page follows.]

 

    13

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Fourth Supplemental Indenture to be duly executed as of the day and year first above written.

 

	 	FIRST BUSEY CORPORATION
	 	 
	 	By:	/s/ Van A. Dukeman
	 	Name:	Van A. Dukeman
	 	Title:	Chairman, President and Chief Executive Officer
	 	 
	 	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By:	/s/ Linda E. Garcia
	 	Name:	Linda E. Garcia
	 	Title:	Vice President

 

[Signature Page to Fourth
Supplemental Indenture]

 

     

     

    

 

EXHIBIT A

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO. AS NOMINEE OF
THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME
OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC)
MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THE INDENTURE.

 

UNLESS THIS SECURITY
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY AND THE
OBLIGATIONS OF THE COMPANY AS EVIDENCED HEREBY ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK OR ANY OF THE COMPANY’S
SUBSIDIARIES AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY

 

    A-1

     

    

 

FIRST BUSEY CORPORATION

 

5.000%
Fixed-to-Floating Rate Subordinated Note Due 2032

 

	No. R-1	CUSIP No.:  319383 AE5

$100,000,000

 

FIRST BUSEY CORPORATION, a
Nevada corporation (the “Company”, which term includes any successor corporation), for value received promises to pay
to CEDE & CO., or registered assigns, the principal sum of ONE HUNDRED MILLION DOLLARS ($100,000,000) (or such other amount as
set forth in the Schedule of Exchanges of Interests in the global note attached hereto) (the “Principal”) on June
15, 2032.

 

Interest Payment Dates: June
15 and December 15 of each year, commencing December 15, 2022 to and including June 15, 2027 at a fixed rate equal to 5.000% per year
(the “Fixed Period Interest Payment Dates”), and March 15, June 15, September 15 and December 15 of each year commencing
September 15, 2027 (the “Floating Period Interest Payment Dates”, and together with the Fixed Period Interest Payment
Dates, the “Interest Payment Dates”), at a floating rate per annum equal to the then-current Three-Month Term SOFR
plus a spread of 252 basis points, or such other rate as determined pursuant to the Fourth Supplemental Indenture, provided that in no
event shall the applicable floating interest rate be less than zero per annum for any Floating Rate Interest Period.

 

Interest Record Dates: May
31 and November 30 of each year (whether or not a Business Day), commencing November 30, 2022 to and including May 31, 2027 (the “Fixed
Rate Record Dates”), and February 28, May 31, August 31 and November 30 of each year (whether or not a Business Day) from and
including August 31, 2027 (the “Floating Rate Record Dates”, and together with the Fixed Rate Record Dates, the “Record
Dates”).

 

Reference is made to the further
provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual or facsimile signature, this Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[Signature Page Follows]

 

    A-2

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be signed manually or by facsimile by its duly authorized officer.

 

	 	FIRST BUSEY CORPORATION
	 	 
	 	By:	 
	 	Name:	Van A. Dukeman
	 	Title:	Chairman, President and Chief Executive Officer

 

Signature Page to Global
Note

 

     

     

    

 

CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes of
the series designated therein and referred to in the within-mentioned Indenture.

 

	Dated:  June 2, 2022	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory

 

Signature Page to Global
Note

 

     

     

    

 

FIRST BUSEY CORPORATION

 

5.000% Fixed-to-Floating Rate Subordinated
Note Due 2032

 

1.                  
Interest. First Busey Corporation, a Nevada corporation (the “Company”), promises to pay interest
on the Principal amount of this Note on each Fixed Period Interest Payment Date, with interest accruing from and including June 2, 2022,
to but excluding June 15, 2027, at an initial fixed rate of 5.000% per year, and quarterly in arrears thereafter on each Floating Period
Interest Payment Date through June 15, 2032 (the “Maturity Date”) or any Redemption Date (as defined below), with such
interest accruing from and including June 15, 2027, the Notes will bear interest at a floating rate per annum equal to the then-current
Three-Month Term SOFR plus a spread of 252 basis points, or such other rate as determined pursuant to the Fourth Supplemental Indenture,
provided that in no event shall the applicable floating interest rate be less than zero per annum for any Floating Rate Interest Period.
Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months to but excluding June 15, 2027, and, thereafter,
interest will be computed on the basis of the actual number of days in a Floating Interest Rate Period and a 360-day year to but excluding
the Maturity Date (unless redeemed prior to such date). If any Interest Payment Date is not a Business Day, then the related payment of
interest for such Interest Payment Date shall be paid on the next succeeding Business Day with the same force and effect as if made on
such Interest Payment Date (unless, with respect to a Floating Period Interest Payment Date, such day falls in the next calendar month,
in which case the Floating Period Interest Payment Date will instead be the immediately preceding day that is a Business Day, and interest
will accrue to the Floating Period Interest Payment Date as so adjusted), and no further interest shall accrue as a result of such delay.
All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.

 

The Company shall pay interest
on overdue principal from time to time on demand at the rate borne by the Notes and on overdue installments of interest (without regard
to any applicable grace periods) to the extent lawful.

 

2.                  
Method of Payment. The Company shall pay interest on the Notes (except defaulted interest) to the persons who are
the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date notwithstanding any
transfer or exchange of such Note subsequent to such Record Date and prior to such Interest Payment Date. Holders must surrender Notes
to the Trustee to collect principal payments. The Company shall pay principal and interest in money of the United States that at the time
of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). Payment of principal of and
any such interest on this Note will be made at the Corporate Trust Office of the Trustee or at any other office or agency designated by
the Company for such purpose; provided that at the option of the Company, payment of interest may be made by check mailed to the
address of the Holder entitled thereto as such address appears in the Note register, provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and interest on all global Notes; provided, further,
that the Company will pay all principal and interest on any global Notes registered in the name of DTC or its nominee in immediately available
funds to DTC or such nominee, as the case may be, as the registered holder of such global Notes.

 

3.                  
Paying Agent. Initially, U.S. Bank Trust Company, National Association (the “Trustee”) will act
as Paying Agent. The Company may change any Paying Agent without notice to the Holders.

 

4.                   Indenture.
The Company and the Trustee entered into an Indenture, dated as of May 25, 2017 (the “Base Indenture”) and
the Fourth Supplemental Indenture, dated as of June 2, 2022 (the “Fourth Supplemental Indenture” and, together
with the Base Indenture, the “Indenture”), setting forth certain terms of the Notes pursuant to Article 2 of
the Base Indenture. Terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Notes
include those stated in the Base Indenture and those made part of the Base Indenture by reference to the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Base Indenture.
Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of Notes are referred to the
Base Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and this Note are inconsistent, the
terms of the Indenture shall govern.

 

     

     

    

 

5.                  
Optional Redemption. The Notes are redeemable, in whole or in part, at the option of the Company, beginning with
the Interest Payment Date on June 15, 2027, and on any Floating Period Interest Payment Date thereafter (each, a “Redemption
Date”) at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest
to, but excluding, the Redemption Date. On and after the Redemption Date, interest shall cease to accrue on the Notes or the portions
thereof called for redemption. The provisions of Article 11 of the Base Indenture and Article 4 of the Fourth Supplemental Indenture
shall apply to the redemption of any Notes by the Company.

 

6.                  
Redemption Upon Tax Event, Regulatory Capital Treatment Event or Investment Company Event. The Company may also,
at its option, redeem the Notes before the Maturity Date, in whole, but not in part, at any time, within 90 days of the occurrence of
a Tax Event, a Regulatory Capital Treatment Event or an Investment Company Event. Any such redemption will be at a redemption price equal
to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the Redemption Date.
The provisions of Article 11 of the Base Indenture and Article 4 of the Fourth Supplemental Indenture shall apply to the redemption
of any Notes by the Company.

 

7.                  
Denominations; Transfer; Exchange. The Notes are in registered form, without coupons, in denominations of $1,000
and integral multiples of $1,000. A Holder shall register the transfer of or exchange Notes in accordance with the Indenture. The Company
may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes
or similar governmental charges payable in connection therewith as permitted by the Indenture. The Company need not issue, register the
transfer of or exchange any Notes or portions thereof for a period of 15 days before such series is selected for redemption, nor need
the Company register the transfer or exchange of any Note selected for redemption in whole or in part.

 

8.                  
Persons Deemed Owners. The registered Holder of a Note shall be treated as the owner of it for all purposes.

 

9.                  
Unclaimed Funds. If funds for the payment of principal or interest remain unclaimed for two years, the Trustee and
the Paying Agent will repay the funds to the Company at its written request. After that, all liability of the Trustee and such Paying
Agent with respect to such funds shall cease.

 

10.              
Legal Defeasance and Covenant Defeasance. As provided in the Indenture, the Company may be discharged from its obligations
under the Notes and under the Indenture with respect to the Notes except for certain provisions thereof, and may be discharged from obligations
to comply with certain covenants contained in the Notes and in the Indenture with respect to the Notes, in each case upon satisfaction
of certain conditions specified in the Indenture.

 

11.               Amendment;
Supplement; Waiver. Subject to certain exceptions, the Notes and the provisions of the Indenture relating to the Notes may
be amended or supplemented with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes
of all series then outstanding affected by such amendment or supplement (voting as one class), and any existing default or Event of
Default or compliance with certain provisions of the Indenture with respect to a series may be waived with the consent of the
Holders of a majority in aggregate principal amount of all the Notes of such series then outstanding, except a default in the
payment of principal or interest on the Notes. Without notice to or consent of any Holder, the parties thereto may amend or
supplement the Indenture and the Notes to, among other things, cure any ambiguity, defect or inconsistency, provide for
uncertificated Notes in addition to or in place of certificated Notes, or make any other change that does not adversely affect the
rights of any Holder of a Note in any material respect.

 

    2

     

    

 

12.              
Defaults and Remedies. If the Event of Default described in Section 5.01(d) of the Base Indenture occurs and
is continuing, the principal amount of the Notes, together with accrued interest to the date of declaration, may be declared to be due
and payable immediately in the manner and with the effect provided in the Indenture. Holders of Notes may not enforce the Indenture or
the Notes except as provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has received
security or indemnity satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of not less
than 25% of the aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power.
Accordingly, the Holder of this Note has no right to accelerate the Maturity of this Note in the event the Company fails to pay the
principal of, or interest on, any of the Notes or fails to perform any other obligations under the Notes or in the Indenture that are
applicable to the Notes, other than in the case of an Event of Default described in Section 5.01(d) of the Base Indenture, in which
case the Principal shall become immediately due and payable without any declaration or other act by the Trustee or the Holder, in accordance
with Section 5.01 of the Base Indenture.

 

13.              
No Sinking Fund. There is no sinking fund provided for the Notes.

 

14.              
Trustee Dealings with Company. Subject to certain limitations imposed by the TIA and the Indenture, the Trustee,
in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company with the same
rights it would have if it were not the Trustee.

 

15.              
No Recourse Against Others. No stockholder, director, officer, employee, member or incorporator, as such, of the
Company, or any successor Person thereof shall have any liability for any obligation under the Notes or the Indenture or for any claim
based on, in respect of or by reason of, such obligations or their creation. Each Holder of a Note by accepting a Note waives and releases
all such liability. The waiver and release are part of the consideration for the issuance of the Notes.

 

16.              
Authentication. This Note shall not be valid until the Trustee manually signs the certificate of authentication on
this Note.

 

17.              
Abbreviations and Defined Terms. Customary abbreviations may be used in the name of a Holder of a Note or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and
not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

18.              
CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures,
the Company has caused CUSIP numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made
as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed
hereon.

 

    3

     

    

 

19.               Registered
Owner. The Company and the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note
is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

 

20.              
Governing Law. The laws of the State of New York shall govern the Indenture and this Note thereof.

 

    4

     

    

 

ASSIGNMENT FORM

 

	I or we assign and transfer this Note to	 
	 	 
	 	 

(Print or type name, address and zip code of assignee
or transferee)

 

 

(Insert Social Security or other identifying number
of assignee or transferee)

 

and irrevocably appoint ___________________ agent
to transfer this Note on the books of the Company. The agent may substitute another to act for him.

 

	Dated:	Signed:
	 	 
	 	 
	 	(Signed exactly as name appears on the other side of this Note)

 

     

     

    

 

SCHEDULE OF
EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of
a part of this global Note for an interest in another global Note or for a definitive note, or increases or decreases to this global Note,
have been made:

 

	Date of Exchange 	 	 	Amount
                                                                                                                                       of 
 Decrease
 in Principal 
 Amount
 at Maturity
 of this global 

Note  	 	 	 	Amount of 

Increase
 in Principal

 Amount
 at Maturity
 of this Global 

Note  	 	 	 	Principal 

Amount at
 Maturity
 of this Global 

Note
 Following such
 decrease 

(or 

increase)  	 	 	 	Signature of Authorized Signatory of

 Trustee or DTC CustodianAlgernon Pharmaceuticals Inc.: Exhibit 4.2 - Filed by newsfilecorp.com

    

    COMMON SHARES PURCHASE WARRANT

    ALGERNON PHARMACEUTICALS INC.

    	Warrant Shares: _______	Initial Exercise Date: _______, 2022

     

     

    THIS COMMON SHARES PURCHASE WARRANT (the "Warrant") certifies that, for value received, _____________ or its assigns (the "Holder") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the "Initial Exercise Date") and on or prior to 5:00 p.m. (New York City time) on ________1 (the "Termination Date") but not thereafter, to subscribe for and purchase from Algernon Pharmaceuticals Inc., a company existing under the laws of the Province of British Columbia, Canada (the "Company"), up to ______ Common Shares (as subject to adjustment hereunder, the "Warrant Shares"). The purchase price of one Common Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant shall initially be issued and maintained in the form of a security held in book-entry form and the Depository Trust Company or its nominee ("DTC") shall initially be the sole registered holder of this Warrant, subject to a Holder's right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.

    Section 1. Definitions.  In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

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

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

    _____________________________________
1 Insert the date that is the five year anniversary of the Initial Exercise Date, provided that, if such date is not a Trading Day, insert the immediately following Trading Day.

    
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    "Board of Directors" means the board of directors of the Company.

    "Business Day" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee"  or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

    "Commission" means the United States Securities and Exchange Commission.

    "Common Shares" means the Common Shares of the Company, no par value, and any other class of securities into which such securities may hereafter be reclassified or changed.

    "Common Share Equivalents" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Shares, including, without limitation, any debt, preferred shares, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares.

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

    "Exempt Issuance" means the issuance of (a) Common Shares or options to employees, consultants (provided, however, for purposes of this definition, issuances to consultants shall not exceed, in the aggregate, more than 15% of the Common Shares or options available under the Company’s share and option plans in effect as of January 1, 2022 (subject to adjustment for forward and reverse stock splits, recapitalizations and the like) per calendar year), officers or directors of the Company pursuant to any share or option plans duly adopted for such purpose where the issuance is approved by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) warrants and the common shares issuable upon exercise of the warrants issued to the Representative in connection with the transaction consummated pursuant to this Agreement, (c) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into Common Shares issued and outstanding on the date of the Underwriting Agreement, provided that such securities have not been amended since the date of the Underwriting Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities, and (d) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that such securities are issued pursuant to an exemption from the registration requirements under the Securities Act or pursuant to an exemption from the prospectus requirements under the Canadian Securities Administrators National Instrument 45-106 – Prospectus Exemptions and carry no registration rights that require or permit the filing of any registration statement in connection therewith within one hundred eighty (180) days following the Closing Date, and provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

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

    "Registration Statement" means the Company's registration statement on Form F-1 (File No. 333-262878).

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

    "Subsidiary" means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

    "Trading Day" means a day on which the Common Shares are traded on a Trading Market.

    "Trading Market" means any of the following markets or exchanges on which the Common Shares are listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the Canadian Securities Exchange or the Frankfurt Stock Exchange (or any successors to any of the foregoing).

    "Transfer Agent" means TSX Trust Company, the current Canadian co-transfer agent of the Company, with a mailing address of 650 West Georgia Street, Suite 2700, Vancouver, British Columbia, V6B 4N9 and any successor Canadian co-transfer agent of the Company.

    "Underwriting Agreement" means the underwriting agreement, dated as of _________, 2022, by and between the Company and Ladenburg Thalmann & Co. Inc. as representative of the underwriters named therein, as amended, modified or supplemented from time to time in accordance with its terms.

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

    "Warrant Agency Agreement" means that certain warrant agency agreement, dated on or about the Initial Exercise Date, by and between the Company and the Warrant Agent.

    "Warrant Agent" means American Stock Transfer & Trust Company, LLC, the current U.S. co-transfer agent of the Company, with a mailing address of 6201 15th Avenue, Brooklyn, NY 11219 and any successor warrant agent of the Company.

    "Warrants" means this Warrant and other Common Share purchase warrants issued by the Company pursuant to the Registration Statement.

    Section 2. Exercise.

    a) Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the "Notice of Exercise"). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier's check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

    
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    Notwithstanding the foregoing in this Section 2(a), a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing this Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect exercises made pursuant to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction form for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation, as applicable), subject to a Holder's right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.

    b) Exercise Price.  The exercise price per Common Share under this Warrant shall be $_____, subject to adjustment hereunder (the "Exercise Price").

    c) Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a "cashless exercise" in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

    (A) =  as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of "regular trading hours" (as defined in Rule 600(b) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Shares on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder's execution of the applicable Notice of Exercise if such Notice of Exercise is executed during "regular trading hours" on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of "regular trading hours" on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of "regular trading hours" on such Trading Day;

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

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

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

    d) Mechanics of Exercise.

    i. Delivery of Warrant Shares Upon Exercise.  The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder's or its designee's balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system ("DWAC") if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered in the Company's share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the "Warrant Share Delivery Date").  Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise.  If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Shares on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the third Trading Day after the Warrant Share Delivery Date) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable.  As used herein, "Standard Settlement Period" means the standard settlement period, expressed in a number of Trading Days, on the Company's primary Trading Market with respect to the Common Shares as in effect on the date of delivery of the Notice of Exercise.  Notwithstanding the foregoing, with respect to any Notice(s) of Exercise delivered on or prior to 12:00 p.m. (New York City time) on the Initial Exercise Date, which may be delivered at any time after the time of execution of the Underwriting Agreement, the Company agrees to deliver the Warrant Shares subject to such notice(s) by 4:00 p.m. (New York City time) on the Initial Exercise Date and the Initial Exercise Date shall be the Warrant Share Delivery Date for purposes hereunder, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received by 4:00 p.m. on such Warrant Share Delivery Date.

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

    iii. Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

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

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

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

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

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

    
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    f) Call Provision.  Subject to the provisions of Section 2(e) and this Section 2(f), if, after the Initial Exercise Date, (i) the VWAP for each of 20 consecutive Trading Days (the “Measurement Period,” which 20 consecutive Trading Day period shall not have commenced until after the Initial Exercise Date) exceeds $____2 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like after the Initial Exercise Date), (ii) the average daily dollar trading volume of the Common Shares on the principal U.S. Trading Market on which the Common Shares are then listed for such Measurement Period exceeds $250,000 per Trading Day and (iii) the Holder is not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company, any of its Subsidiaries, or any of their officers, directors, employees, agents or Affiliates, then the Company may, within 1 Trading Day of the end of such Measurement Period, call for cancellation of all or any portion of this Warrant for which a Notice of Exercise has not yet been delivered (such right, a “Call”) for consideration equal to $0.0001 per Warrant Share.  To exercise this right, the Company must deliver to the Holder an irrevocable written notice (a “Call Notice”), indicating therein the portion of unexercised portion of this Warrant to which such notice applies.  If the conditions set forth below for such Call are satisfied from the period from the date of the Call Notice through and including the Call Date (as defined below), then any portion of this Warrant subject to such Call Notice for which a Notice of Exercise shall not have been received by the Call Date will be cancelled at 6:30 p.m. (New York City time) on the tenth Trading Day after the date the Call Notice is received by the Holder (such date and time, the “Call Date”).  Any unexercised portion of this Warrant to which the Call Notice does not pertain will be unaffected by such Call Notice.  In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect to Warrant Shares subject to a Call Notice that are tendered through 6:30 p.m. (New York City time) on the Call Date.  The parties agree that any Notice of Exercise delivered following a Call Notice which calls less than all of the Warrants shall first reduce to zero the number of Warrant Shares subject to such Call Notice prior to reducing the remaining Warrant Shares available for purchase under this Warrant.  For example, if (A) this Warrant then permits the Holder to acquire 100 Warrant Shares, (B) a Call Notice pertains to 75 Warrant Shares, and (C) prior to 6:30 p.m. (New York City time) on the Call Date the Holder tenders a Notice of Exercise in respect of 50 Warrant Shares, then (x) on the Call Date the right under this Warrant to acquire 25 Warrant Shares will be automatically cancelled, (y) the Company, in the time and manner required under this Warrant, will have issued and delivered to the Holder 50 Warrant Shares in respect of the exercises following receipt of the Call Notice, and (z) the Holder may, until the Termination Date, exercise this Warrant for 25 Warrant Shares (subject to adjustment as herein provided and subject to subsequent Call Notices).  Subject again to the provisions of this Section 2(f), the Company may deliver subsequent Call Notices for any portion of this Warrant for which the Holder shall not have delivered a Notice of Exercise.  Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a Call Notice or require the cancellation of this Warrant (and any such Call Notice shall be void), unless, from the beginning of the Measurement Period through the Call Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise delivered by 6:30 p.m. (New York City time) on the Call Date, and (2) a registration statement shall be effective as to all Warrant Shares and the prospectus thereunder available for use by the Company for the sale of all such Warrant Shares to the Holder, and (3) the Common Shares shall be listed or quoted for trading on the Trading Market, and (4) there is a sufficient number of authorized shares of Common Shares for issuance of all Warrant Shares, and (5) the issuance of all Warrant Shares subject to a Call Notice shall not cause a breach of any provision of Section 2(e) herein.  The Company’s right to call the Warrants under this Section 2(f) shall be exercised ratably among the Holders based on each Holder’s initial purchase of Warrants.

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2 300% of the initial Exercise Price.

    
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    Section 3. Certain Adjustments.

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

    
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    b) Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell, enter into an agreement to sell, or grant any option to purchase, or sell, enter into an agreement to sell, or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Shares or Common Share Equivalents, at an effective price per share less than the Exercise Price then in effect (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder of the Common Shares or Common Share Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Shares at an effective price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation (or, if earlier, the announcement) of each Dilutive Issuance the Exercise Price shall be reduced and only reduced to equal the Base Share Price and the number of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment, provided that the Base Share Price shall not be less than $___3 (subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions following the date of the Underwriting Agreement) (the “Floor Price”).   Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 3(b) in respect of an Exempt Issuance.  The Company shall notify the Holder, in writing, no later than the Trading Day following the issuance or deemed issuance of any Common Shares or Common Share Equivalents subject to this Section 3(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”).  For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction, the Company shall be deemed to have issued Common Shares or Common Share Equivalents at the lowest possible price, conversion price or exercise price at which such securities may be issued, converted or exercised.

    c) Subsequent Rights Offerings.  In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Share Equivalents or rights to purchase shares, warrants, securities or other property pro rata to the record holders of any class of Common Shares (the "Purchase Rights"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of Common Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such Common Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

    _____________________________________
3 Insert price that is [50%] of the public offering price per Unit.

    
        12

    

    

    d) Pro Rata Distributions.  During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Common Shares, by way of return of capital or otherwise (including, without limitation, any distribution of cash, shares or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of Common Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Common Shares are to be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Common Shares as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). 

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

    
        13

    

    

    Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder's option, be exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however, that, if the Fundamental Transaction is not within the Company's control, including not approved by the Company's Board of Directors, Holder shall only be entitled to receive from the Company or any Successor Entity the same type or form of consideration (and in the same proportion), at the Black Scholes Value of the unexercised portion of this Warrant, that is being offered and paid to the holders of Common Shares of the Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, shares or any combination thereof, or whether the holders of Common Shares are given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction; provided, further, that if holders of Common Shares of the Company are not offered or paid any consideration in such Fundamental Transaction, such holders of Common Shares will be deemed to have received Common Shares of the Successor Entity (which Entity may be the Company following such Fundamental Transaction) in such Fundamental Transaction.  "Black Scholes Value" means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the "OV" function on Bloomberg, L.P. ("Bloomberg") determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per Common Share used in such calculation shall be the greater of (i) the sum of the price per Common Share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the highest VWAP during the period beginning on the Trading Day immediately preceding the announcement of the applicable Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder's request pursuant to this Section 3(e) and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date and (E) a zero cost of borrow.  The payment of the Black Scholes Value will be made by wire transfer of immediately available funds (or such other consideration) within five Business Days of the Holder's election (or, if later, on the date of consummation of the Fundamental Transaction).  The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the "Successor Entity") to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of capital shares of such Successor Entity (or its parent entity) equivalent to the Common Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such capital shares (but taking into account the relative value of the Common Shares pursuant to such Fundamental Transaction and the value of such capital shares, such number of capital shares and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the "Company" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

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

    g) Notice to Holder. 

    i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

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

    
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    h) Voluntary Adjustment By Company.  Subject to the rules, regulations and policies of the Trading Market(s) and applicable corporate and securities laws, the Company may at any time during the term of this Warrant, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

    Section 4. Transfer of Warrant.

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

    b) New Warrants. If this Warrant is not held in global form through DTC (or any successor depositary), this Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

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

    Section 5. Miscellaneous.

    a) No Rights as Shareholder Until Exercise; No Settlement in Cash.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.  Without limiting any rights of a Holder to receive Warrant Shares on a "cashless exercise" pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in no event shall the Company be required to net cash settle an exercise of this Warrant.

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

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

    d) Authorized Shares. 

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

    
        17

    

    

    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 notice of articles or articles or through any reorganization, transfer of assets, consolidation, merger, amalgamation, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not change the par value from no par value of any Warrant Shares to an amount above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

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

    e) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party 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, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof 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 this Warrant 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 other manner permitted by law. If either party shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

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

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

    h) Notices.  Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Exercise, shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service, addressed to the Company, at c/o 1500-1055 West Georgia Street, P.O. Box 11117, Vancouver, B.C., Canada, V6E 4N7, Attention: Chris Moreau, email address: Chris@algernonpharmaceuticals.com, or such other email address or address as the Company may specify for such purposes by notice to the Holders. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the e-mail address or address of such Holder appearing on the books of the Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth in this Section 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 second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.  To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Report of Foreign Private Issuer on Form 6-K.

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

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

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

    l) Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and the Holder or the beneficial owner of this Warrant, on the other hand.

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

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

    o) Warrant Agency Agreement.  If this Warrant is held in global form through DTC (or any successor depositary), this Warrant is issued subject to the Warrant Agency Agreement.  To the extent any provision of this Warrant conflicts with the express provisions of the Warrant Agency Agreement, the provisions of this Warrant shall govern and be controlling.

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

    (Signature Page Follows)

    
        20

    

    

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

    	 	
                ALGERNON PHARMACEUTICALS INC.

                 

            
	 	
                By:__________________________________________

                 Name:

                 Title:

            

    

    
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    NOTICE OF EXERCISE

    TO: ALGERNON PHARMACEUTICALS INC.

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

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

    [  ] in lawful money of the United States; or

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

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

     _______________________________

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

     _______________________________

     _______________________________

     _______________________________

    [SIGNATURE OF HOLDER]

    Name of Investing Entity: ____________________________________________________________________________________________________

    Signature of Authorized Signatory of Investing Entity: ______________________________________________________________________________

    Name of Authorized Signatory: ________________________________________________________________________________________________

    Title of Authorized Signatory: _________________________________________________________________________________________________

    Date: _____________________________________________________________________________________________________________________

    

    ASSIGNMENT FORM

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

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

    	
                Name:

            	______________________________________
	
                 

            	
                (Please Print)

            
	 	 
	
                Address:

            	______________________________________
	
                 

                Phone Number:

                Email Address:                                                           

            	
                (Please Print)

                ______________________________________

                ______________________________________

            
	 	 
	
                Dated: _______________ __, ______

            	
                 

            
	 	 
	
                Holder's Signature:________________________

            	
                 

            
	 	 
	
                Holder's Address:_________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]