Document:

Exhibit 4.1

 

CERTIFICATE OF DESIGNATIONS, PREFERENCES AND
RIGHTS

 

OF

 

SERIES A CONVERTIBLE PREFERRED STOCK

 

OF

 

PLX PHARMA INC.

 

(Pursuant to Section 151 of the

Delaware General Corporation Law)

 

 

	

        

 

 

 

 

PLx Pharma Inc., a corporation
organized and existing under the laws of the State of Delaware (the “Company”), hereby certifies that, pursuant to
authority vested in the Board of Directors of the Company by Article IV of the Amended and Restated Certificate of Incorporation
(the “Certificate of Incorporation”) of the Company, the following resolutions were adopted on [________], 20[__] by
the Board of Directors of the Company pursuant to Section 151 of the Delaware General Corporation Law:

 

“RESOLVED that, pursuant
to authority vested in the Board of Directors of the Company by ARTICLE IV of the Company’s Certificate of Incorporation,
out of the total authorized number of 1,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”),
there shall be designated a series of 45,000 shares which shall be issued in and constitute a single series to be known as “Series
A Convertible Preferred Stock” (hereinafter called the “Series A Preferred Stock”). The shares of Series A Preferred
Stock shall have the voting powers, designations, preferences and other special rights, and the qualifications, limitations and
restrictions thereof, set forth below:

 

1.       Certain
Definitions.

 

As used in this Certificate
of Designations, Preferences and Rights of Series A Convertible Preferred Stock of PLx Pharma Inc. (this “Certificate”),
the following terms shall have the respective meanings set forth below:

 

“Affiliate”,
as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”,
 “controlled by” and “under common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise.

 

“Board of Directors”
means the board of directors of the Company.

 

    	 

     

    

“Business Day”
means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

 

“Change of Control
Transaction” means the occurrence after the date hereof of any of (i) an acquisition by an individual, legal entity or
 “group” (as described in Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or
otherwise) of in excess of 50% of the voting securities of the Company, or (ii) the Company merges into or consolidates with or
enters into any share exchange or other business combination transaction with any other Person, or any Person merges into or consolidates
with or enters into any share exchange or other business combination transaction with the Company and, after giving effect to such
transaction, the shareholders of the Company immediately prior to such transaction own less than 50% of the aggregate voting power
of the Company or the successor entity of such transaction, or (iii) the Company sells or transfers all or any substantial portion
of its assets to another Person and the shareholders of the Company immediately prior to such transaction own less than 50% of
the aggregate voting power of the acquiring entity immediately after the transaction, or (iv) a replacement at one time or within
a one year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals
who are members of the Board of Directors on the date hereof (or by those individuals who are serving as members of the Board of
Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors
who are members on the date hereof), or (v) the execution by the Company of an agreement to which the Company is a party or by
which it is bound, providing for any of the events set forth in clauses (i) through (iv) herein; provided, however, that a transaction
or transactions described in clauses (i) – (v) above involving Affiliates of Park West Asset Management LLC shall not constitute
a Change of Control Transaction.

 

“Common Stock”
means the common stock, par value $0.001 per share, of the Company, including the stock into which the Series A Preferred Stock
is convertible, and any securities into which the Common Stock may be reclassified.

 

“Conversion Shares”
means the shares of Common Stock into which the Series A Preferred Stock is convertible.

 

“Dividend End Date”
means the date on which the U.S. Food and Drug Administration has approved the New Drug Applications for each of Vazalore 325 mg
and Vazalore 81 mg.

 

“Park West”
means Park West Asset Management LLC and its Affiliates.

 

“Person”
shall be construed in the broadest sense and means and includes any natural person, a partnership, a corporation, an association,
a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and other entity or
governmental or quasi-governmental entity.

 

“Series A Stated
Value” means $1,000.

 

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“Subsidiary”
means any corporation, association or other business entity (i) at least 50% of the outstanding voting securities of which are
at the time owned or controlled, directly or indirectly, by the Company; or (ii) with respect to which the Company possesses, directly
or indirectly, the power to direct or cause the direction of the affairs or management of such Person.

 

“Transfer”
means any direct or indirect sale, merger, consolidation, amalgamation, reorganization or other similar plan or scheme, or operation
of law, assignment, conveyance, transfer, sale or other disposition, in each case, whether directly, or directly or indirectly
of a parent, holding company, equity holder or Subsidiary or otherwise.

 

2.       Dividends.

 

(a)       Each
holder of Series A Preferred Stock, in preference and priority to the holders of all other classes or series of stock, shall be
entitled to receive, with respect to each share of Series A Preferred Stock then outstanding and held by such holder, dividends,
commencing from the date of issuance of such share of Series A Preferred Stock and ending on the Dividend End Date, if any, at
the rate of eight percent (8%) per annum of the Series A Stated Value (the “Series A Preferred Dividends”). The Series
A Preferred Dividends shall be cumulative from the date of original issuance until the Dividend End Date, if any, whether or not
earned or declared and shall accrue during such period on a daily basis computed on the basis of a 365-day year and compounded
quarterly whether or not the Company shall have assets legally available therefore. The Series A Preferred Dividends shall be paid
quarterly in arrears on the last day of March, June, September and December in each year, commencing [________], 20[__]. The Series
A Preferred Dividends shall be payable at the option of the Company either in cash or in kind in additional shares of Series A
Preferred Stock (rounded down to the nearest whole share with any fractional shares being issued in cash in an amount equal to
the Series A Stated Value of such fractional share of Series A Preferred Stock) (the “PIK Shares”). Any payment of
Series A Preferred Dividends in PIK Shares shall be based on the Series A Stated Value.

 

(b)       No
dividends shall be paid on any Common Stock of the Company or any other class or series of capital stock of the Company unless
and until all outstanding Series A Preferred Dividends shall have been paid or declared and set apart for payment to the holders
of Series A Preferred Stock.

 

(c)       In
the event that the Company shall at any time pay a dividend on the Common Stock (other than a dividend payable solely in shares
of Common Stock) or any other class or series of capital stock of the Company, the Company shall, at the same time, pay to each
holder of Series A Preferred Stock a dividend equal to the dividend that would have been payable to such holder if the shares of
Series A Preferred Stock held by such holder had been converted into Common Stock on the date of determination of holders of Common
Stock entitled to receive such dividends (without regard to the limitations set forth in Section 7, and after giving
effect to any adjustment required under subsection 4G).

 

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(d)       Subject
to subsection 4G, if there shall be any dividend or distribution in which holders of Series A Preferred Stock shall be entitled
to participate pursuant to this Certificate, which is in the form of Common Stock or rights, options or warrants to subscribe for
or acquire Common Stock, then such dividend or distribution shall instead be made to such holder in the form of additional shares
of Series A Preferred Stock with the number of shares of Series A Preferred Stock issuable in such dividend or distribution being
equal to the number of shares of Series A Preferred Stock that would be convertible under Section 4 (without regard to the
limitations set forth in Section 7, and after giving effect to any adjustment required under subsection 4G) into
the number of shares of Common Stock that such holder would have received in such dividend or distribution, and, in the case of
any such dividend or distribution that is in the form of rights, options or warrants to subscribe for or acquire Common Stock,
a number of rights, options or warrants to subscribe for or acquire shares of Series A Preferred Stock (with (i) such number of
shares of Series A Preferred Stock being equal to the number of shares of Series A Preferred Stock that would be convertible under
Section 4 (without regard to the limitations set forth in Section 7, and after giving effect to any adjustment required
under subsection 4G) into the number of shares of Common Stock that such rights, options or warrants would have covered
had such rights, options or warrants been to subscribe for or acquire Common Stock and (ii) such other terms of the rights, options
or warrants (including exercise price and other terms) being such that such rights, option or warrants have equivalent economic
and other terms as the rights, options or warrants to subscribe for or acquire Common Stock).

 

3.       Liquidation.

 

(a)       Upon
any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, the holders of the shares of Series
A Preferred Stock shall be entitled, before any distributions shall be made to the holders of the Common Stock, or any other class
or series of capital stock of the Company, to be paid an amount per share equal to the Series A Stated Value plus any accrued and
unpaid Series A Preferred Dividends (the “Liquidation Preference”). If upon such liquidation, dissolution or winding
up of the Company, whether voluntary or involuntary, the assets to be distributed among the holders of the Series A Preferred Stock
shall be insufficient to permit payment to the holders of the Series A Preferred Stock of their respective liquidation amount,
then the entire assets of the Company to be distributed shall be distributed pro rata to the holders of Series A Preferred Stock.
Unless waived in writing by the holders of at least a majority of the Series A Preferred Stock then outstanding, voting together
as one class, a consolidation or merger of the Company into or with any other entity or entities, a share exchange, a sale of Common
Stock or the sale or transfer by the Company of all or substantially all of its assets, in each case under circumstances in which
the holders of a majority in voting power of the outstanding capital stock of the Company, immediately prior to such a merger,
consolidation, share exchange or sale, own less than a majority in voting power of the outstanding capital stock of the corporation
or the surviving or resulting corporation or acquirer, as the case may be, immediately following such a merger, consolidation,
share exchange or sale (each such transaction being hereinafter referred to as a “Corporate Transaction”) shall be
deemed to be a liquidation within the meaning of this Section 3.

 

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(b)       In
the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or any Corporate Transaction, after
the payment of all preferential amounts required to be paid to the holders of shares of Series A Preferred Stock, the remaining
assets of the Company available for distribution to its stockholders shall be distributed among the holders of the shares of Common
Stock, pro rata based on the number of shares held by each such holder.

 

4.       Conversion.

 

4A.Right
to Convert.

 

(a)       Subject
to the terms and conditions of this subsection 4A and Section 7, the holder of any share or shares of Series A Preferred
Stock shall have the right, at its option at any time, to convert any such shares of Series A Preferred Stock into such number
of fully paid and nonassessable whole shares of Common Stock as is obtained by multiplying the number of shares of Series A Preferred
Stock so to be converted by the Series A Stated Value per share and dividing the result by the conversion price of $2.60 per share
or, if there has been an adjustment of the conversion price, by the conversion price as last adjusted and in effect at the date
any share or shares of Series A Preferred Stock are surrendered for conversion (such price, or such price as last adjusted, being
referred to herein as the “Conversion Price”); provided, however, that no holder of shares of Series A Preferred Stock
may elect to convert shares of Series A Preferred Stock in an aggregate amount less than 10% of the shares of Series A Preferred
Stock held by such holder as of the date of issuance (or, if less, then all of such holder’s shares of Series A Preferred
Stock). Such rights of conversion shall be exercised by the holder thereof by surrender of a certificate or certificates for the
shares to be converted to the Company at its principal office (or such other office or agency of the Company as the Company may
designate by notice in writing to the holder or holders of the Series A Preferred Stock), together with a properly completed notice
of conversion in the form attached to the Series A Preferred Stock certificate with a statement of (i) the number of shares of
Series A Preferred Stock to be converted by such holder, and (ii) the name or names (with address), subject to compliance with
applicable laws to the extent such designation shall involve a transfer, in which the certificate or certificates for shares of
Common Stock, shall be issued, at any time during its usual business hours on the date set forth in such notice. Such conversion
shall be deemed to have been effected and the Conversion Price shall be determined as of the close of business on the date on which
such written notice shall have been received by the Company and the certificate or certificates for such shares shall have been
surrendered as aforesaid.

 

(b)       To
the extent permitted by applicable law and the listing requirements of any stock market or exchange on which the Common Stock is
then listed, the Company from time to time may decrease the Conversion Price by any amount for any period of time if the period
is at least twenty (20) days, the decrease is irrevocable during the period and the Board of Directors shall have made a determination
that such decrease would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion
Price is decreased pursuant to the preceding sentence, the Company shall provide written notice thereof to the holders of the Series
A Preferred Stock at least five (5) days prior to the date the decreased Conversion Price takes effect, and such notice shall state
the decreased Conversion Price and the period during which it will be in effect.

 

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4B.Issuance
of Certificates; Time Conversion Effected; Buy-In. Promptly after receipt by the Company of a written notice of the conversion
of the Series A Preferred Stock and surrender of the certificate or certificates for the share or shares of the Series A Preferred
Stock being converted, the Company shall issue and deliver, or cause to be issued and delivered, to the holder, registered in such
name or names as such holder may direct, subject to compliance with applicable laws to the extent such designation shall involve
a transfer, a certificate or certificates (or, in the case of book-entry only securities, other evidence of ownership) for the
number of whole shares of Common Stock issuable upon the conversion of such share or shares of Series A Preferred Stock. Upon the
effective date of any such conversion, the rights of the holder of the shares of Series A Preferred Stock being converted shall
cease, and the person or persons in whose name or names any certificate or certificates for shares of Common Stock shall be issuable
upon such conversion shall be deemed to have become the holder or holders of record of the shares represented thereby.

 

If (1) a certificate
(or offer evidence of ownership) representing the Conversion Shares is not delivered to a holder of Series A Preferred Stock within
two (2) Business Days of the due conversion of its Series A Preferred Stock and (2) prior to the time such certificate (or offer
evidence of ownership) is received by such holder, the holder, or any third party on behalf of the holder or for the holder’s
account, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by
the holder of shares represented by such certificate (or offer evidence of ownership) (a “Buy-In”), then the Company
shall pay in cash to the holder (for costs incurred either directly by such holder or on behalf of a third party) the amount by
which the total purchase price paid for Common Stock as a result of the Buy-In (including brokerage commissions, if any) exceeds
the proceeds received by such holder as a result of the sale to which such Buy-In relates. The holder shall provide the Company
written notice indicating the amounts payable to the holder in respect of the Buy-In.

 

4C.Fractional
Shares; Dividends; Partial Conversion. No fractional shares shall be issued upon conversion of the Series A Preferred Stock
into Common Stock, and the number of shares of Common Stock to be issued shall be rounded down to the nearest whole share. Subject
to subsection 4G, upon any conversion of the Series A Preferred Stock, the Company shall pay to the holder all accrued and
unpaid Series A Preferred Dividends to the date of conversion, at the option of the Company, in cash or in PIK Shares; provided,
that, on the date of conversion, Series A Preferred Dividends shall cease to accrue on the shares of Series A Preferred Stock so
converted. In case the number of shares of Series A Preferred Stock represented by the certificate or certificates surrendered
pursuant to subsection 4A(a) exceeds the number of shares converted, the Company shall upon such conversion, execute and
deliver to the holder thereof at the expense of the Company, a new certificate for the number of shares of Series A Preferred Stock
represented by the certificate or certificates surrendered which are not to be converted.

 

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4D.Stock
Splits and Dividends. If the Company shall, at any time or from time to time while the Series A Preferred Stock is outstanding,
pay a dividend or make a distribution on its Common Stock in shares of Common Stock, subdivide its outstanding shares of Common
Stock into a greater number of shares or combine its outstanding shares of Common Stock into a smaller number of shares or issue
by reclassification of its outstanding shares of Common Stock any shares of its capital stock (including any such reclassification
in connection with a consolidation or merger in which the Company is the continuing corporation), then the Conversion Price in
effect immediately prior to the date upon which such change shall become effective shall be adjusted by multiplying such Conversion
Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such
change and the denominator of which shall be the number of shares of Common Stock outstanding immediately after giving effect to
such change. Such adjustment shall be made successively whenever any event listed above shall occur.

 

4E.Reorganization
or Reclassification. If any capital reorganization or reclassification of the capital stock of the Company, consolidation or
merger of the Company with another corporation in which the Company is not the survivor, or sale, transfer or other disposition
of all or substantially all of the Company’s assets to another corporation shall be effected, then, as a condition of such
reorganization or reclassification, consolidation, merger, sale, transfer or other disposition, lawful and adequate provision shall
be made whereby each holder of a share or shares of Series A Preferred Stock shall thereafter have the right to receive, upon the
basis and upon the terms and conditions specified herein and in lieu of the Conversion Shares immediately theretofore receivable
upon the conversion of such share or shares of the Series A Preferred Stock, such shares of stock, securities or assets as would
have been issuable or payable with respect to or in exchange for a number of Conversion Shares equal to the number of Conversion
Shares immediately theretofore issuable upon conversion of the Series A Preferred Stock, had such reorganization, reclassification,
consolidation, merger, sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be
made with respect to the rights and interests of such holder to the end that the provisions hereof (including without limitation
provisions for adjustment of the Conversion Price) shall thereafter be applicable, as nearly equivalent as may be practicable in
relation to any shares of stock, securities or assets thereafter deliverable upon the exercise of such conversion rights. The Company
shall not effect any such consolidation, merger, sale, transfer or other disposition unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company) resulting from such consolidation or merger, or the
corporation purchasing or otherwise acquiring such assets or other appropriate corporation or entity shall assume the obligation
to deliver to the holders of the Series A Preferred Stock, at the last addresses of such holders appearing on the books of the
Company, such shares of stock, securities or assets as, in accordance with the foregoing provisions, such holders may be entitled
to receive, and the other obligations hereunder. The provisions of this subsection 4E shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions.

 

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4F.Distributions.
In case the Company shall fix a payment date for the making of a distribution to all holders of Common Stock (including any such
distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences
of indebtedness or assets (other than cash dividends or cash distributions payable out of consolidated earnings or earned surplus
or dividends or distributions referred to in Section 4D), or subscription rights or warrants, the Conversion Price to be
in effect after such payment date shall be determined by multiplying the Conversion Price in effect immediately prior to such payment
date by a fraction, the numerator of which shall be the total number of shares of Common Stock outstanding multiplied by the Market
Price (as defined below) per share of Common Stock immediately prior to such payment date, less the fair market value (as determined
by the Board of Directors in good faith) of said assets or evidences of indebtedness so distributed, or of such subscription rights
or warrants, and the denominator of which shall be the total number of shares of Common Stock outstanding multiplied by such Market
Price per share of Common Stock immediately prior to such payment date. “Market Price” as of a particular date (the
 “Valuation Date”) shall mean the following: (a) if the Common Stock is then listed on a national stock exchange, the
closing sale price of one share of Common Stock on such exchange on the last trading day prior to the Valuation Date; (b) if the
Common Stock is then quoted on The Nasdaq Stock Market, Inc. (“Nasdaq”), the Financial Industry Regulatory Authority
OTC Bulletin Board (the “Bulletin Board”) or such similar quotation system or association, the closing sale price of
one share of Common Stock on Nasdaq, the Bulletin Board or such other quotation system or association on the last trading day prior
to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low asked price quoted
thereon on the last trading day prior to the Valuation Date; or (c) if the Common Stock is not then listed on a national stock
exchange or quoted on Nasdaq, the Bulletin Board or such other quotation system or association, the fair market value of one share
of Common Stock as of the Valuation Date, as determined in good faith by the Board of Directors and the holders of at least a majority
of the outstanding Series A Preferred Stock. If the Common Stock is not then listed on a national securities exchange, Nasdaq,
the Bulletin Board or such other quotation system or association, the Board of Directors shall respond promptly, in writing, to
an inquiry by a holder of Series A Preferred Stock prior to the conversion of Series A Preferred Stock hereunder as to the fair
market value of a share of Common Stock as determined by the Board of Directors. In the event that the Board of Directors and the
holders of at least a majority of the outstanding Series A Preferred Stock are unable to agree upon the fair market value in respect
of subpart (c) hereof, the Company and the holders of at least a majority of the outstanding Series A Preferred Stock shall jointly
select an appraiser, who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the
cost of such appraiser shall be borne equally by the Company and such holders. Such adjustment shall be made successively whenever
such a payment date is fixed.

 

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4G.Adjustment
for Unissued Shares. To the extent that applicable law or any existing contractual restrictions of the Company prohibit any
required issuance pursuant to this Certificate of (x) PIK Shares or (y) additional shares of Series A Preferred Stock under subsection
2(d) hereof or otherwise ((x) and (y), collectively, “Additional Shares”), then appropriate adjustment to the Conversion
Price shall be made, in connection with any conversion of shares of Series A Preferred Stock, or any calculation of the number
of shares of Common Stock into which shares of Series A Preferred Stock would be convertible, such that the number of shares of
Common Stock into which such shares of Series A Preferred Stock are, or would be, convertible equals the aggregate number of shares
of Common Stock into which such shares, plus any Additional Shares in respect of such shares of Series A Preferred Stock, would
be convertible but for the effects of such prohibition. On the date of a conversion in connection with which an adjustment under
this subsection 4G is being made, all Series A Preferred Dividends which were previously accrued and unpaid on the shares
of Series A Preferred Stock being converted shall be deemed paid in full.

 

4H.Effective
Date of Adjustment. An adjustment to the Conversion Price shall become effective immediately after the payment date in the
case of each dividend or distribution and immediately after the effective date of each other event which requires an adjustment;
provided that any adjustment pursuant to subsection 4G shall be made solely in the circumstances required by such subsection.

 

4I.Subsequent
Adjustments. In the event that, as a result of an adjustment made pursuant to this Section 4, holders of Series A Preferred
Stock shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, the number
of such other shares so receivable upon the conversion of the Series A Preferred Stock shall be subject thereafter to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Conversion
Shares contained herein.

 

4J.Notice
of Adjustment. Upon any adjustment of the Conversion Price, then, and in each such case the Company shall give written notice
thereof by first class mail, postage prepaid, addressed to each holder of shares of Series A Preferred Stock at the address of
such holder as shown on the books of the Company, which notice shall state the Conversion Price resulting from such adjustment,
setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

 

4K.Other
Notices. In case at any time:

 

(1)       the
Company shall declare any dividend upon its Common Stock payable in cash or stock or make any other distribution to the holders
of its Common Stock;

 

(2)       the
Company shall offer for subscription pro rata to the holders of its Common Stock any additional shares of such stock of
any class or other rights;

 

(3)       there
shall be any capital reorganization or reclassification of the capital stock of the Company, or a consolidation or merger of the
Company with, or a sale of all or substantially all its assets to, another corporation; or

 

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

 

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then, in any one or more of said
cases, the Company shall give, by first class mail, postage prepaid, addressed to each holder of any shares of Series A Preferred
Stock at the address of such holder as shown on the books of the Company, (a) at least 15 days prior written notice of the date
on which the books of the Company shall close or a record shall be taken for such dividend, distribution or subscription rights
or for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, and (b) in the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, at least 15 days prior written notice of the date when the same shall take place. Such notice in accordance
with the foregoing clause (a) shall also specify, in the case of any such dividend, distribution or subscription rights, the date
on which the holders of Common Stock shall be entitled thereto, and such notice in accordance with the foregoing clause (b) shall
also specify the date on which the holders of Common Stock shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding
up, as the case may be.

 

4L.Stock
to be Reserved.

 

(1)       The
Company will at all times reserve and keep available out of its authorized but unissued Common Stock solely for the purpose of
issuance upon the conversion of the Series A Preferred Stock as herein provided, such number of shares of Common Stock as shall
then be issuable upon the conversion of all outstanding shares of Series A Preferred Stock. All shares of Common Stock which shall
be so issued shall be duly and validly issued and fully paid and nonassessable and free from all liens, duties and charges arising
out of or by reason of the issue thereof (including, without limitation, in respect of taxes) and, without limiting the generality
of the foregoing, the Company covenants that it will from time to time take all such action as may be requisite to assure that
the par value per share of the Common Stock is at all times equal to or less than the effective Conversion Price. The Company will
take all such action within its control as may be necessary on its part to assure that all such shares of Common Stock may be so
issued without violation of any applicable law or regulation, or of any requirements of any national securities exchange upon which
the Common Stock of the Company may be listed. The Company will not take any action which results in any adjustment of the Conversion
Price if after such action the total number of shares of Common Stock issued and outstanding and thereafter issuable upon exercise
of all options and conversion of convertible or exchangeable stock or securities, including upon conversion of the Series A Preferred
Stock, would exceed the total number of shares of such class of Common Stock then authorized by the Company’s Certificate
of Incorporation.

 

(2)       The
Company will at all times reserve and keep available out of its authorized Series A Preferred Stock such number of shares of Series
A Preferred Stock as is equal to or greater than the number of shares of Series A Preferred Stock then outstanding. All shares
of Series A Preferred Stock which shall be so issued shall be duly and validly issued and fully paid and nonassessable and free
from all liens, duties and charges arising out of or by reason of the issue thereof (including, without limitation, in respect
of taxes).

 

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4M.No
Reissuance of Series A Preferred Stock. Shares of Series A Preferred Stock that are converted into shares of Common Stock as
provided herein shall be retired and may not be reissued as Series A Preferred Stock but may be reissued as all or part of another
series of Preferred Stock.

 

4N.Issue
Tax. The issuance of certificates for shares of Common Stock upon conversion of the Series A Preferred Stock shall be made
without charge to the holders thereof for any issuance tax, stamp tax, transfer tax, duty or charge in respect thereof, provided
that the Company shall not be required to pay any tax, duty or charge which may be payable in respect of any transfer involved
in the issuance and delivery of any certificate in a name other than that of the holder of the Series A Preferred Stock which is
being converted.

 

4O.Closing
of Books. The Company will at no time close its transfer books against the transfer of any Series A Preferred Stock or of any
shares of Common Stock issued or issuable upon the conversion of any shares of Series A Preferred Stock in any manner which interferes
with the timely conversion of such Series A Preferred Stock; provided, however, nothing herein shall be construed
to prevent the Company from setting record dates for the holders of its securities.

 

5.       Voting
- Series A Preferred Stock.

 

(a) So long as
Park West holds at least 3,750 shares of Series A Preferred Stock, the Company shall give the holders of the Series A Preferred
Stock written notice of each meeting of the Board of Directors and each committee thereof at least at the same time and in the
same manner as notice is given to the directors and the holders of the Series A Preferred Stock shall have the right to designate
(in such manner as they shall determine in their sole discretion) one representative who shall have the right to attend as an observer
all meetings of the Board of Directors and all committees thereof; provided that in the case of telephonic meetings conducted in
accordance with the Company’s bylaws and applicable law, the holders’ representative shall be given the opportunity
to listen to such telephonic meetings. The holders’ representative shall be entitled to receive all written materials and
other information (including without limitation copies of meeting minutes) given to directors in connection with such meetings
at the same time such materials and information are given to the directors. If the Company proposes to take any action by written
consent in lieu of a meeting of its Board of Directors or of any committee thereof, the Company shall give written notice thereof
to the holders’ representative and each of the Company’s directors prior to the effective date of such consent describing
in reasonable detail the nature and substance of such action. The Company shall pay the reasonable out-of-pocket expenses of the
holders’ representative incurred in connection with attending such board and committee meetings.

    	11

     

    

 

(b)       So
long as Park West holds at least 3,750 shares of Series A Preferred Stock, the holders of Series A Preferred Stock, voting as a
separate class, shall have the right to elect one member of the Board of Directors (the “Series A Director”). The Company
shall pay the reasonable out-of-pocket expenses of the Series A Director incurred in connection with attending meetings of the
Board of Directors and any committees thereof on which such Series A Director serves. During the term of any Series A Director
elected by the holders of Series A Preferred Stock in accordance with this subsection 5(b), the number of observers which
such holders have the right to designate pursuant to subsection 5(a) shall be reduced to zero.

 

(c)       Holders of shares of Series A Preferred Stock shall not be entitled to vote, as a separate class or otherwise
on any matter, and their consent shall not be required for any corporate action, except as otherwise required by law or as expressly
provided in this Certificate or the Company’s Certificate of Incorporation.

 

6.       Certain
Restrictions. So long as any shares of Series A Preferred Stock are outstanding, in addition to any other vote of the holders
of Series A Preferred Stock required by law or by the Company’s Certificate of Incorporation, without the prior consent of
the holders of at least 66% of the Series A Preferred Stock then outstanding, given in person or by proxy, either in writing or
at a special meeting called for that purpose, at which meeting the holders of the shares of such Series A Preferred Stock shall
vote together as a class, the Company will not:

 

    	12

     

    

(a)       authorize,
create, designate, establish, issue or sell (whether by merger or otherwise) (i) an increased number of shares of Series A Preferred
Stock (other than (x) Series A Preferred Dividends or (y) in lieu of Common Stock pursuant to Section 2(d)), or (ii) any
other class or series of capital stock ranking senior to or on parity with the Series A Preferred Stock as to dividends or upon
liquidation or reclassify any shares of Common Stock into shares having any preference or priority as to dividends or upon liquidation
superior to or on parity with any such preference or priority of Series A Preferred Stock or reclassify any shares of Common Stock
or any other class or series of capital stock into shares having any preference or priority as to dividends or upon liquidation
superior to or on parity with any such preference or priority of Series A Preferred Stock;

 

(b)       adopt
a plan for the liquidation, dissolution or winding up of the affairs of the Company or any recapitalization plan (whether occurring
by merger, consolidation or otherwise), file any petition seeking protection under any federal or state bankruptcy or insolvency
law or make a general assignment for the benefit of creditors;

 

(c)       enter
into any Change of Control Transaction;

 

(d)       enter
into any transaction with any Affiliate or shareholder of the Company, which transaction has the effect, directly or indirectly,
of causing a distribution to such Affiliate or shareholder in preference to the Series A Preferred Stock;

 

(e)       incur,
assume or suffer to exist any indebtedness for borrowed money in excess of $15,000,000 in the aggregate;

 

(f)       amend,
alter or repeal, whether by merger, consolidation or otherwise, the Certificate of Incorporation or Bylaws of the Company or the
Resolutions contained in this Certificate and the powers, preferences, privileges, relative, participating, optional and other
special rights and qualifications, limitations and restrictions thereof, which would adversely affect any right, preference, privilege
or voting power of the Series A Preferred Stock, or which would increase or decrease the amount of authorized shares of the Series
A Preferred Stock or of any other series of preferred stock ranking senior to the Series A Preferred Stock, with respect to the
payment of dividends (whether or not such series of preferred stock is cumulative or noncumulative as to payment of dividends)
or upon liquidation;

 

(g)       materially
change the nature or scope of the business of the Company or enter into any new line of business; or

 

(h)       agree
to do any of the foregoing.

 

    	13

     

    

7.       Limitations
on Conversion. The Company shall not effect the conversion of shares of Series A Preferred Stock, and a holder of Series A
Preferred Stock shall not have the right to convert any such shares, to the extent that after giving effect to such conversion,
such Person (together with such Person’s Affiliates) would beneficially own in excess of 9.9% (the “Beneficial Ownership
Limitation”) of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of
the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such Person and its Affiliates shall
include the number of shares of Common Stock issuable upon conversion of shares of Series A Preferred Stock held by such Person
and its Affiliates with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock
which would be issuable upon (i) conversion of the remaining, unexercised shares of Series A Preferred Stock beneficially owned
by such Person and its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible
preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except
as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act. For purposes of this Certificate, in determining the number of outstanding shares of Common
Stock, a holder of Series A Preferred Stock may rely on the number of outstanding shares of Common Stock as reflected in the most
recent of (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the
Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice
by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding. For any reason at any time,
upon the written or oral request of a holder of Series A Preferred Stock, the Company shall within two (2) business days confirm
to such holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of securities of the Company, including shares of Series
A Preferred Stock, by a holder thereof and its Affiliates since the date as of which such number of outstanding shares of Common
Stock was reported. By written notice to the Company, a holder of Series A Preferred Stock may from time to time increase or decrease
the Beneficial Ownership Limitation to any other percentage specified in such notice; provided that (i) any such increase will
not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such increase or
decrease will apply only to such holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 7 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.

 

8.       Redemption.

 

(a)       From
and after the occurrence of a Change of Control Transaction, a holder of Series A Preferred Stock shall have the right to require
the Company to redeem in cash, to the extent there are funds legally available therefor, all or a portion of the shares or fraction
of a share of Series A Preferred Stock held by such holder, at a price (the “Redemption Price”) equal to the greater
of (x) the aggregate Liquidation Preference of such Series A Preferred Stock and (y) the aggregate value of the Common Stock issuable
upon conversion of such Series A Preferred Stock at the Conversion Price (without regard to the limitations set forth in Section
7 and after giving effect to any adjustment required under subsection 4G), based on the daily-volume-weighted average
price of the Company’s Common Stock over the 30 consecutive trading day period ending at the time the applicable Redemption
Request is delivered, by delivery of written notice to the Company (the “Redemption Request”) at least thirty (30)
days prior to the proposed date of redemption (the “Redemption Date”) set forth in the Redemption Request, stating
the number of shares or fraction of a share of Series A Preferred Stock with respect to which such holder is exercising its redemption
right.

 

    	14

     

    

(b)       The
Company shall pay to the applicable holder the Redemption Price on the later of (i) the Redemption Date and (ii) upon the
receipt of surrender of the certificate or certificates representing the shares or fraction of a share of Series A Preferred Stock
to be redeemed (properly endorsed or assigned for transfer, if the Company shall so reasonably require, and letters of transmittal
and instructions therefor on reasonable terms as are included in the notice sent by the Company); provided, that if such certificate
or certificates are lost, stolen or destroyed, the Company may require such holder to execute an agreement reasonably satisfactory
to the Company to indemnify the Company from any loss incurred by it in connection therewith, prior to paying such Redemption Price.
Notwithstanding the delivery of any Redemption Request, such holder shall have the right to convert any shares of Series A Preferred
Stock held by such holder pursuant to Section 4 at any time on or prior to 5:00 p.m., New York time, on the Redemption Date.
In case the certificate or certificates representing the shares or fraction of a share of Series A Preferred Stock to be redeemed
represent a number of shares of Series A Preferred Stock that exceeds the number of shares or fraction of a share to be redeemed
as of the Redemption Date, the Company shall, upon the surrender thereof, execute and deliver to such holder, at the expense of
the Company, a new certificate for the remaining number of shares of Series A Preferred Stock which are not being redeemed.

 

(c)       Shares
of Series A Preferred Stock to be redeemed on the Redemption Date, as the case may be, will from and after the Redemption Date,
no longer be deemed to be outstanding; and all powers, designations, preferences and other rights of the holder thereof as a holder
of shares of Series A Preferred Stock (except the right to receive from the Company the applicable Redemption Price) shall cease
and terminate with respect to such shares; provided, that in the event that a share of Series A Preferred Stock is not redeemed
due to a default in payment by the Company or because the Company is otherwise unable to pay the applicable Redemption Price in
cash in full, such share of Series A Preferred Stock will remain outstanding and will be entitled to all of the powers, designations,
preferences and other rights as provided herein.

 

(d)       Any
redemption of shares of Series A Preferred Stock pursuant to this Section 8 (such redemption, the “Redemption”)
shall be payable out of any cash legally available therefor. At the time of the Redemption, the Company shall take all actions
required or permitted under Delaware law to permit the Redemption and to make funds legally available for such Redemption. To the
extent that the Company has insufficient funds to redeem all of the shares of Series A Preferred Stock upon the Redemption, the
Company shall use available funds to redeem a pro rata portion of such shares of Series A Preferred Stock, to the extent permissible
under Delaware law.

 

9.       Transfer
Restrictions. Notwithstanding anything in the Certificate of Incorporation or this Certificate of Designations to the contrary,
no holder of Series A Preferred Shares may Transfer any of such holder’s shares of Series A Preferred Stock in an aggregate
amount less than 25% of the shares of Series A Preferred Stock held by such holder as of the date of issuance (or, if less, then
all of such holder’s shares of Series A Preferred Stock) without the prior written consent of the Company, which consent
shall not be unreasonably withheld; provided, however, that any holder may at any time Transfer any of such Holder’s shares
of Series A Preferred Stock to one or more of such holder’s Affiliates, provided that such Person shall Transfer such shares
to such holder in the event that such Person ceases to be an Affiliate of such holder. Each holder agrees that in connection with
any Transfer consented to by the Company, such holder shall, if requested by the Company, deliver to the Company an opinion of
counsel in form and substance reasonably satisfactory to the Company and counsel for the Company, to the effect that the Transfer
is not in violation of the Company’s Certificate of Incorporation, this Certificate of Designations, the Securities Act,
or the securities laws of any state. Any purported Transfer in violation of the provisions of this Section 9 shall be null
and void and shall have no force or effect.

 

    	15

     

    

10.       No
Waiver. Except as otherwise modified or provided for herein, the holders of Series A Preferred Stock shall also be entitled
to, and shall not be deemed to have waived, any other applicable rights granted to such holders under the Delaware General Corporation
Law.

 

11.       No
Impairment. The Company will not, through any reorganization, transfer of assets, consolidation, merger scheme or arrangement,
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 to be observed or performed hereunder by the Company but will at all time in good faith assist in the carrying
out of all the provisions herein and in the taking of all such action as may be necessary or appropriate in order to protect the
conversion rights and liquidation preferences granted hereunder of the holders of the Series A Preferred Stock against impairment.
Without limiting the generality of the foregoing, the Company shall not increase the par value of any shares of Common Stock receivable
upon conversion of the Series A Preferred Stock above the Conversion Price then in effect and shall take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common
Stock upon conversion of the Series A Preferred Stock.

 

12.       Amendment;
Waiver. Any term of the Series A Preferred Stock may be amended or waived upon the written consent of the Company and the holders
of at least 66% of the Series A Preferred Stock then outstanding; provided, however, that the number of Conversion Shares issuable
hereunder and the Conversion Price may not be amended (except for adjustments made pursuant to Section 4 herein), and the
right to convert the Series A Preferred Stock may not be altered or waived, without the written consent of the holders of all of
the Series A Preferred Stock then outstanding.

 

13.       Action
By Holders. Any action or consent to be taken or given by the holders of the Series A Preferred Stock may be given either at
a meeting of the holders of the Series A Preferred Stock called and held for such purpose or by written consent.

 

14.       Fractional
Shares. Series A Preferred Stock may be issued in fractions of a share that shall entitle each holder thereof, in proportion
to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have
the benefit of all other rights of holders of Series A Preferred Stock.

 

[Execution Page Follows]

    	16

     

    

IN WITNESS WHEREOF, the undersigned
has executed this Certificate of Designations, Preferences and Rights this ● day of _________, 20__.

 

 

	 	PLX PHARMA INC.
	 	 
	 	By:	
   

	 	 	Name:	 
	 	 	Title:	 

 

    	17Exhibit 4.2

 

THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS
(I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY
BE SOLD PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER
MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

PURSUANT TO THE TERMS
OF SECTION 1 OF THIS WARRANT, ALL OR A PORTION OF THIS WARRANT MAY HAVE BEEN EXERCISED, AND THEREFORE THE ACTUAL NUMBER OF WARRANT
SHARES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF.

 

PLX
PHARMA INC.

 

Warrant
To Purchase Common Stock

 

Warrant No.: 

Number of Shares of Common Stock:_____________

Date of Issuance: December [ ], 2018 (“Issuance
Date”)

 

PLx Pharma Inc., a
Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [INVESTOR NAME], the registered holder hereof or its permitted assigns (the “Holder”),
is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then
in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange,
transfer or replacement hereof, the “Warrant”), at any time or times after 5:00 p.m., New York time, on April
15, 2019, provided that the Stockholder Approval (as defined below) has not been obtained (the “Exercisability Date”),
but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [_____] ([______]) fully paid nonassessable
shares of Common Stock (as defined below) (the “Warrant Shares”). Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is the Warrant to purchase Common Stock (this
“Warrant”) issued pursuant to the Purchase Agreement (the “Purchase Agreement”), dated as
of December [ ], 2018 (the “Subscription Date”), by and among the Company and the investors party thereto. This
Warrant is one of a series of warrants containing substantially identical terms and conditions issued pursuant to Purchase Agreement
(collectively, the “Warrants”).

    	 

     

    

1.     
EXERCISE OF WARRANT.

(a)   
Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on
any day on or after the Exercisability Date, in whole or in part (but not as to fractional shares), by (i) delivery of a written
notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election
to exercise this Warrant and (ii) if both (A) the Holder is not electing a Cashless Exercise (as defined below) pursuant to Section
1(d) of this Warrant and (B) a registration statement registering the resale or other disposition of the Warrant Shares by the
Holder under the Securities Act of 1933, as amended (the “Securities Act”), is effective and available for such
resale or disposition, or an exemption from registration under the Securities Act is available for the resale or disposition of
the Warrant Shares by the Holder, payment to the Company of an amount equal to the applicable Exercise Price multiplied by the
number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash
or wire transfer of immediately available funds (a “Cash Exercise”) (the items under (i) and (ii) above, the
 “Exercise Delivery Documents”). The Holder shall not be required to surrender this Warrant in order to effect
an exercise hereunder; provided, however, that in the event that this Warrant is exercised in full or for the remaining unexercised
portion hereof, the Holder shall deliver this Warrant to the Company for cancellation within a reasonable time after such exercise.
On or before the first Trading Day following the date on which the Company has received the Exercise Delivery Documents (the date
upon which the Company has received all of the Exercise Delivery Documents, the “Exercise Date”), the Company
shall transmit by facsimile or e-mail transmission an acknowledgment of confirmation of receipt of the Exercise Delivery Documents
to the Holder and the Company’s transfer agent for the Common Stock (the “Transfer Agent”). The Company
shall deliver any objection to the Exercise Delivery Documents on or before the second Trading Day following the date on which
the Company has received all of the Exercise Delivery Documents. On or before the second Trading Day following the date on which
the Company has received all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall,
(X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program (the “FAST Program”) and so long as the certificates therefor are not required to
bear a legend regarding restriction on transferability, upon the request of the Holder, credit such aggregate number of shares
of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance
account with DTC through its Deposit Withdrawal Agent Commission system, or (Y), if the Transfer Agent is not participating in
the FAST Program or if the certificates are required to bear a legend regarding restriction on transferability, issue and dispatch
by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share
register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant
to such exercise. Upon delivery of the Exercise Delivery Documents, 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
such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such
Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a)
and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares
being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three Trading Days after
any such submission and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase
the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares
with respect to which this Warrant has been and/or is exercised. The Company shall pay any and all taxes and other expenses of
the Company (including overnight delivery charges) that may be payable with respect to the issuance and delivery of Warrant Shares
upon exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax which may
be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name
other than that of the Holder or an affiliate thereof. The Holder shall be responsible for all other tax liability that may arise
as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

    	2

     

    

(b)  
Exercise Price. For purposes of this Warrant, “Exercise Price” means $3.50, subject to adjustment
as provided herein.

(c)   
Company’s Failure to Timely Deliver Securities. If a registration statement covering the Warrant Shares that
are the subject of an Exercise Notice is available or Rule 144 under the Securities Act is applicable to such Warrant Shares, if
the Company shall fail for any reason or for no reason to issue to the Holder within two (2) Business Days of the Exercise Date
a certificate for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock
on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common
Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if on or after such Trading Day the
Holder purchases, or another Person purchases on the Holder’s behalf or for the Holder’s account (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable
upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall,
within three (3) Business Days after the Holder’s written request and in the Holder’s discretion, either (i) pay
cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for
the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation
to deliver such certificate (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver
to the Holder a certificate or certificates representing such Warrant Shares and pay cash to the Holder in an amount equal to the
excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid Price
on the date of exercise.

(d)  
Cashless Exercise. Notwithstanding anything contained herein to the contrary, if a registration statement covering
the Warrant Shares that are the subject of the Exercise Notice (the “Unavailable Warrant Shares”), or an exemption
from registration, is not available for the resale of such Unavailable Warrant Shares, the Holder may, in its sole discretion,
exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company
upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number”
of shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

    	3

     

    

             Net Number = (A x
B) - (A x C)

                                                   B

             For purposes of
the foregoing formula:

A=
the total number of shares with respect to which this Warrant is then being exercised.

B=
the arithmetic average of the Closing Sale Prices of the shares of Common Stock for the five (5) consecutive Trading Days ending
on the date immediately preceding the date of the Exercise Notice.

C= the
Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

(e)   
Rule 144. For purposes of Rule 144(d) promulgated under the Securities Act, as in effect on the date hereof, assuming
the Holder is not an affiliate of the Company, it is intended that the Warrant Shares issued in a Cashless Exercise shall be deemed
to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date
this Warrant was originally issued pursuant to the Purchase Agreement.

(f)   
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of
the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed.

    	4

     

    

(g)  
Beneficial Ownership. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the
right to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s
affiliates) would beneficially own in excess of 9.9% (the “Maximum Percentage”) of the shares of Common Stock
outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares
of Common Stock beneficially owned by such Person and its affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares
of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned
by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible
preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except
as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For purposes of
this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding
shares of Common Stock as reflected in the most recent of (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report
on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement
by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock
outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within two (2) Business
Days confirm to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares
of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this
Warrant, by the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.
By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage
specified in such notice; provided that (i) any such increase will not be effective until the sixty-first (61st) day after such
notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the Holder. The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(g)
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.

(h)  
Surrender of Warrant. Notwithstanding anything contained herein to the contrary, in the event that the Company obtains
the Stockholder Approval prior to the Exercisability Date, the Holder shall surrender the Warrant to the Company for cancellation.

    	5

     

    

2.     
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall
be adjusted from time to time as follows:

(a)   
Voluntary Adjustment By Company. 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.

(b)  
Adjustment upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Subscription
Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or
more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately
prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If
the Company at any time on or after the Subscription Date combines (by any stock split, stock dividend, recapitalization, reorganization,
scheme, arrangement or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares,
the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant
Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective at the close of business
on the date the subdivision or combination becomes effective.

(c)   
Other Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly
provided for by such provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights),
then the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant
Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase
the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2.

    	6

     

    

3.     
RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company, at any time while this Warrant is outstanding, shall distribute
to all holders of Common Stock (and not to the Holders) evidences of its indebtedness or assets (including cash and cash dividends)
or rights or warrants to subscribe for or purchase any security other than the Common Stock (including, without limitation, any
distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement, scheme of arrangement or other similar transaction), then in each such case the Exercise Price shall be adjusted
by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled
to receive such distribution by a fraction of which the denominator shall be the Weighted Average Price determined as of the record
date mentioned above, and of which the numerator shall be such Weighted Average Price on such record date less the then per share
fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one
outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall
be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such
subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made
and shall become effective immediately after the record date mentioned above.

4.     
PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

(a)   
Purchase Rights.In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants,
issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of Common Stock (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 shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations on the exercise of this Warrant) 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 shares of Common Stock
are to be determined for the grant, issue or sale of such Purchase Rights.

    	7

     

    

(b)  
Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor
Entity assumes in writing (unless the Company is the Successor Entity) all of the obligations of the Company under this Warrant
and the other Transaction Documents in accordance with the provisions of this Section 4(b) pursuant to written agreements in form
and substance reasonably satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction,
including agreements to deliver to each holder of the Warrants in exchange for such Warrants a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an
adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction,
and exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 reasonably satisfactory to the Required Holders. Upon the occurrence of any 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. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the Fundamental
Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the exercise
of the Warrant prior to such Fundamental Transaction, such shares of the publicly traded common stock or common shares (or its
equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the
happening of such Fundamental Transaction had this Warrant been converted immediately prior to such Fundamental Transaction, as
adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder,
prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”),
the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise
of this Warrant at any time after the consummation of the Corporate Event but prior to the Expiration Date, in lieu of shares of
Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of this Warrant prior to such
Corporate Event, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase
or subscription rights) which the Holder would have been entitled to receive upon the happening of such Corporate Event had this
Warrant been exercised immediately prior to such Corporate Event. Provision made pursuant to the preceding sentence shall be in
a form and substance reasonably satisfactory to the Required Holders.

(c)   
Applicability to Successive Transactions. The provisions of this Section shall apply similarly and equally to successive
Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant.

5.     
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Amended
and Restated Certificate of Incorporation, Amended and Restated Bylaws or through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, 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, and will at all times in good faith comply with all the provisions
of this Warrant and take all actions consistent with effectuating the purposes of this Warrant. Without limiting the generality
of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise
of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of
this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep available
out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100%
of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding (without regard to any limitations
on exercise).

    	8

     

    

6.     
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in
such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder
of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder,
solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any
right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of
stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due
exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the
Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.

7.     
REISSUANCE OF WARRANTS.

(a)   
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company
and deliver the completed and executed Assignment Form, in the form attached hereto as Exhibit B, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

(b)  
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this
Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right
to purchase the Warrant Shares then underlying this Warrant.

(c)   
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate
the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however,
that no Warrants for fractional shares of Common Stock shall be given.

    	9

     

    

(d)  
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant,
the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to
Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock
underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying
this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance
Date, and (iv) shall have the same rights and conditions as this Warrant.

8.     
NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice
shall be given in accordance with Section 9.4 of the Purchase Agreement.

9.     
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the
Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company
has obtained the written consent of the Required Holders. Any such amendment shall apply to all Warrants and be binding upon all
registered holders of such Warrants.

10. 
GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. This Warrant shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without reference to the choice of law provisions thereof. The Company
and, by accepting this Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of
New York located in New York County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Warrant and the transactions contemplated hereby.
Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world
by the same methods as are specified for the giving of notices under this Warrant. The Company and, by accepting this Warrant,
the Holder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying
of venue in such court. The Company and, by accepting this Warrant, the Holder, each irrevocably waives any objection to the laying
of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE
HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS
THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

11. 
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall
not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall
not form part of, or affect the interpretation of, this Warrant.

    	10

     

    

12. DISPUTE RESOLUTION.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall submit the disputed determinations or arithmetic calculations via facsimile or other form of electronic communication
within two (2) Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder.
If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares
within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the
Company shall, within two (2) Business Days submit via facsimile or other form of electronic communication (a) the disputed determination
of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder, which approval
shall not be unreasonably withheld, or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant. The Company shall cause the investment bank or the accountant, as the case may be, to perform the determinations
or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives
the disputed determinations or calculations. The prevailing party in any dispute resolved pursuant to this Section 12 shall be
entitled to the full amount of all reasonable expenses, including all costs and fees paid or incurred in good faith, in relation
to the resolution of such dispute. Such investment bank’s or accountant’s determination or calculation, as the case
may be, shall be binding upon all parties absent demonstrable error.

13.             
REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance
and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure
by the Company to comply with the terms of this Warrant.

14. 
TRANSFER. Subject to applicable laws, this Warrant may be offered for sale, sold, transferred or assigned without
the consent of the Company; provided the Holder provides written notice of such transfer to the Company promptly after such transfer
is effected.

15. 
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

(a)   
“Bloomberg” means Bloomberg Financial Markets.

(b)  
“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.

    	11

     

    

(c)   
“Closing Bid Price” and “Closing Sale Price” means, for any security as of any date,
the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by
Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price
or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security
prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange
or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal
securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do
not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively,
is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers
for such security as reported on the OTC Pink marketplace operated by OTC Markets Group Inc. If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by
the Company and the Holder. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination
or other similar transaction during the applicable calculation period.

(d)  
“Common Stock” means (i) the Company’s shares of Common Stock, par value $0.001 per share,
and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification
of such Common Stock.

(e)   
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

(f)   
“Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., The NYSE MKT, The NASDAQ
Global Market or The NASDAQ Global Select Market.

(g)  
“Expiration Date” means the tenth anniversary of the Exercisability Date or, if such date falls on a
day other than a Trading Day or on which trading does not take place on the Principal Market, or, if the Principal Market is not
the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the
Common Stock is then traded (a “Holiday”), the next date that is not a Holiday.

    	12

     

    

(h)  
“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related
transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person (but
excluding a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company), or
(ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company
to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of
more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons
making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer),
or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock 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 purchase agreement or other business combination), (v) reorganize,
recapitalize or reclassify its Common Stock, or (vi) any “person” or “group” (as these terms are used for
purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued
and outstanding Common Stock.

(i)    
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

(j)    
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person
and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

(k)  
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

(l)    
“Principal Market” means The NASDAQ Capital Market.

(m) “Required
Holders” means, as of any date, the holders of at least a majority of the Warrants outstanding as of such date.

(n)  
“Stockholder Approval” means the approval by the stockholders of the Company in accordance with applicable
law, the Company’s Certificate of Incorporation and Bylaws and the applicable requirements of The NASDAQ Capital Market for
(i) the authorization of 1,000,000 shares of “blank check” preferred stock and (ii) the issuance and sale to the Investors
(as defined in the Purchase Agreement) of the Securities (as defined in the Purchase Agreement) (including all of the Conversion
Shares (as defined in the Purchase Agreement) issuable upon the full conversion of the Shares (as defined in the Purchase Agreement)
and all of the Warrant Shares issuable upon the full exercise of the Warrants).

(o)  
“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting
from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

    	13

     

    

(p)  
“Trading Day” means any day on which the Common Stock are traded on the Principal Market, or, if the
Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities
market on which the Common Stock are then traded; provided that “Trading Day” shall not include any day on which
the Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are
suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate
in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

(q)  
“Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price
for such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the
Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other
time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg through its “Volume
at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the
over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York
time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m.,
New York time (or such other time as the Principal Market publicly announces is the official close of trading), as reported by
Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average
of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported on
the OTC Pink marketplace operated by OTC Markets Group Inc. If the Weighted Average Price cannot be calculated for a security on
a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market
value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market
value of such security, then such dispute shall be resolved pursuant to Section 12 with the term “Weighted Average Price”
being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

[Signature Page Follows]

    	14

     

    

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

 

	 	PLX PHARMA INC.
	 	 
	 	By:	
   

	 	 	Name:	 
	 	 	Title:	 

 

 

    	 

     

    

EXHIBIT A

 

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO
EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

PLX
PHARMA INC.

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
PLx Pharma Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant to Purchase Common
Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________a
“Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

____________a
“Cashless Exercise” with respect to _______________ Warrant Shares.

 

2. Payment of Exercise
Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

3. Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant and,
after delivery of such Warrant Shares, _____________ Warrant Shares remain subject to the Warrant.

 

Date: _______________ __, ______

 

 

	
   

	 	 
	  Name of Registered Holder	 	 
	 	 	 
	 	 	 
	By:	
   

	 	 	 
	 	Name:	 	 	 	 	 
	 	Title:	 	 	 	 	 

 

    	A-1

     

    

EXHIBIT B

 

ASSIGNMENT FORM

PLX
PHARMA INC.

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

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

	Name:	 	
   

	 	 	(Please Print)
	 	 	 
	Address:	 	
   

	 	 	(Please Print)
	 	 	 
	Dated: _______________ __, ______	 	 
	 	 	 
	Holder’s Signature:	
   

	 	 	 	 
	 	 	 	 	 	 
	Holder’s Address:	
   

	 	 	 	 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever.
Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority
to assign the foregoing Warrant.

    	B-1

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