Document:

Exhibit 4.2

 

Execution Version

 

FIRST SUPPLEMENTAL INDENTURE

 

dated as of June 26, 2020

 

to

 

SUBORDINATED DEBT INDENTURE

 

dated as of June 26, 2020

 

BYLINE BANCORP, INC.,

Company

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

Trustee

 

6.000% FIXED-TO-FLOATING RATE SUBORDINATED
NOTES DUE 2030

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Article I             DEFINITIONS	 	2
	 	 	 	 	 	 
	 	Section 1.1	 	Definitions	 	2
	 	 	 	 	 	 
	Article II            GENERAL TERMS AND CONDITIONS OF THE NOTES	 	9
	 	 	 	 	 	 
	 	Section 2.1	 	Designation and Principal Amount	 	9
	 	 	 	 	 	 
	 	Section 2.2	 	Form and Denomination of Notes	 	9
	 	 	 	 	 	 
	 	Section 2.3	 	Initial Limit on Amount of Series	 	9
	 	 	 	 	 	 
	 	Section 2.4	 	Rank; Subordination	 	9
	 	 	 	 	 	 
	 	Section 2.5	 	Further Issues Without Holders’ Consent	 	9
	 	 	 	 	 	 
	 	Section 2.6	 	Form and Payment	 	10
	 	 	 	 	 	 
	 	Section 2.7	 	Interest	 	10
	 	 	 	 	 	 
	 	Section 2.8	 	Redemption	 	13
	 	 	 	 	 	 
	 	Section 2.9	 	No Sinking Fund	 	14
	 	 	 	 	 	 
	 	Section 2.10	 	Notes Not Convertible or Exchangeable	 	14
	 	 	 	 	 	 
	 	Section 2.11	 	Events of Default	 	14
	 	 	 	 	 	 
	 	Section 2.12	 	Global Securities	 	14
	 	 	 	 	 	 
	 	Section 2.13	 	No Additional Amounts	 	14
	 	 	 	 	 	 
	Article III          ORIGINAL ISSUE OF NOTES	 	15
	 	 	 	 	 	 
	 	Section 3.1	 	Original Issue of Notes	 	15
	 	 	 	 	 	 
	Article IV          DEFEASANCE	 	15
	 	 	 	 	 	 
	 	Section 4.1	 	Defeasance Applicable to Notes	 	15
	 	 	 	 	 	 
	Article V           MISCELLANEOUS	 	15
	 	 	 	 	 	 
	 	Section 5.1	 	Ratification of Indenture	 	15
	 	 	 	 	 	 
	 	Section 5.2	 	Conflict with Trust Indenture Act	 	15
	 	 	 	 	 	 
	 	Section 5.3	 	Effect of Headings and Table of Contents	 	15
	 	 	 	 	 	 
	 	Section 5.4	 	Successors and Assigns	 	15
	 	 	 	 	 	 
	 	Section 5.5	 	Separability Clause	 	16
	 	 	 	 	 	 
	 	Section 5.6	 	Benefits of Indenture	 	16
	 	 	 	 	 	 
	 	Section 5.7	 	Governing Law	 	16
	 	 	 	 	 	 
	 	Section 5.8	 	Waiver of Jury Trial	 	16
	 	 	 	 	 	 
	 	Section 5.9	 	Counterparts	 	16
	 	 	 	 	 	 
	 	Section 5.10	 	Electronic Signatures	 	16
	 	 	 	 	 	 
	 	Section 5.11	 	Trustee	 	17

 

    	 	-i-	 

     

    

 

THIS FIRST SUPPLEMENTAL
INDENTURE, dated as of June 26, 2020 (this “Supplemental Indenture”), by and between Byline Bancorp, Inc.,
a Delaware corporation having its principal place of business at 180 North LaSalle Street, Suite 300, Chicago, Illinois
60601 (hereinafter called the “Company,” which term shall include any successors and assigns pursuant to the
terms of this Supplemental Indenture), and U.S. Bank National Association, a national banking association duly organized and existing
under the laws of the United States of America, as Trustee (hereinafter called the “Trustee”).

 

WHEREAS, the
Company executed and delivered the Subordinated Debt Indenture (the “Indenture”), dated as of June 26,
2020, to the Trustee, to provide for the issuance from time to time of the Company’s unsecured subordinated notes or other
evidences of indebtedness (the “Securities”), to be issued in one or more series;

 

WHEREAS, pursuant
to the terms of the Indenture, the Company desires to provide for the establishment of a series of its Securities under the Indenture
to be known as its “6.000% Fixed-to-Floating Rate Subordinated Notes due 2030” (the “Notes”), the
form and substance of and the terms, provisions and conditions thereof to be set forth as provided in the Indenture and this Supplemental
Indenture;

 

WHEREAS, the
Board of Directors of the Company, pursuant to resolutions duly adopted on May 18 and June 9, 2020, has duly authorized
the issuance of the Notes and the amendments to the Indenture provided for in this Supplemental Indenture, and has authorized the
proper officers of the Company to execute any and all appropriate documents necessary or appropriate to effect each such issuance;

 

WHEREAS, this
Supplemental Indenture is being entered into pursuant to the provisions of Section 201, Section 301, Section 303
and Article Nine of the Indenture;

 

WHEREAS, the
Company has requested that the Trustee execute and deliver this Supplemental Indenture; and

 

WHEREAS, all
things necessary to make this Supplemental Indenture a valid agreement of the Company, in accordance with its terms, and to make
each of the Notes, when executed by the Company and authenticated and delivered by the Trustee or an authentication agent, the
valid obligations of the Company, have been performed, and the execution and delivery of this Supplemental Indenture has been duly
authorized in all respects;

 

NOW THEREFORE,
in consideration of the premises and the purchase and acceptance of the Notes by the Holders thereof, and for the purpose of setting
forth, as provided in the Indenture, the forms and terms of the Notes, the Company covenants and agrees with the Trustee, for the
equal and proportionate benefit of the Holders of the Notes, as follows:

 

     

     

    

 

Article I

 

DEFINITIONS

 

Section 1.1           Definitions.
For all purposes of this Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(a)          all
references in this instrument to designated “Articles,” “Sections” and other subdivisions are to be designated
Articles, Sections and other subdivisions of this instrument unless the context otherwise requires; the words “herein,”
 “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole
and not to any particular Article, Section or other subdivision;

 

(b)          each
term defined in the Indenture has the same meaning when used in this Supplemental Indenture, except to the extent specifically
defined herein, in which case the meaning ascribed to it in this Supplemental Indenture shall control; and

 

(c)          Section 101
of the Indenture is amended and supplemented, solely with respect to the Notes, by inserting the following additional defined terms
in their appropriate alphabetical positions:

 

“Additional
Amounts” means amounts, if any, that may be required hereby or by the Notes, under circumstances specified herein or
therein, to be paid by the Company to Holders in respect of U.S. federal income tax or other tax or assessments.

 

“Administrative
or Judicial Action” has the meaning provided in the definition of “Tax Event.”

 

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

 

“Benchmark
Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement
Adjustment for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of
the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event
and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated
Benchmark with respect to Three-Month Term SOFR shall be determined), then “Benchmark Replacement” means the
first alternative set forth in the order below that can be determined by the Calculation Agent as of the Benchmark Replacement
Date:

 

(1)            Compounded
SOFR;

 

(2)            the
sum of: (a) the alternate rate that has been selected or recommended by the Relevant Governmental Body as the replacement
for the then-current Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;

 

    	 	2	 

     

    

 

(3)            the
sum of: (a) the ISDA Fallback Rate, and (b) the Benchmark Replacement Adjustment;

 

(4)            the
sum of: (a) the alternate rate that has been selected by the Calculation Agent as the replacement for the then-current Benchmark
for the applicable Corresponding Tenor, giving due consideration to any industry-accepted rate as a replacement for the then-current
Benchmark for U.S. dollar-denominated floating rate securities at such time, and (b) the Benchmark Replacement Adjustment.

 

“Benchmark
Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Calculation
Agent as of the Benchmark Replacement Date:

 

(1)            the
spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or
zero), that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

 

(2)            if
the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and

 

(3)            the
spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving due
consideration to any industry-accepted spread adjustment or method for calculating or determining such spread adjustment, for the
replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated floating
rate securities at such time.

 

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

 

“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

 

(1)            in
the case of clause (1) of the definition of “Benchmark Transition Event,” the relevant Reference Time in
respect of any determination;

 

    	 	3	 

     

    

 

(2)            in
the case of clause (2) or (3) of the definition of “Benchmark Transition Event,” the later of (a) the
date of the public statement or publication of information referenced therein and (b) the date on which the administrator
of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

(3)            in
the case of clause (4) of the definition of “Benchmark Transition Event,” the date of the public statement
or publication of information referenced therein.

 

For the avoidance of
doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to the Benchmark
also include any reference rate underlying the Benchmark (for example, if the Benchmark becomes Compounded SOFR, references to
the Benchmark would include SOFR).

 

For the avoidance of
doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time
in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for
such determination.

 

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

(1)            if
the Benchmark is Three-Month Term SOFR, (a) the Relevant Governmental Body has not selected or recommended a forward-looking
term rate for a tenor of three months based on SOFR, (b) the development of a forward-looking term rate for a tenor of three
months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (c) the Company
determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

 

(2)            a
public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator
has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or
publication, there is no successor administrator that will continue to provide the Benchmark;

 

(3)            a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central
bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution
authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution
authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease
to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no
successor administrator that will continue to provide the Benchmark; or

 

(4)            a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that
the Benchmark is no longer representative.

 

    	 	4	 

     

    

 

“Business
Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
in The City of New York or in the city where the Corporate Trust Office of the Trustee is located are authorized or required by
law, regulation or executive order to close.

 

“Calculation
Agent” means the agent appointed by the Company prior to the commencement of the Floating Rate Period (which may include
the Company or any of its Affiliates) to act in accordance with Section 2.7. The Company shall initially act as the Calculation
Agent.

 

“Compounded
SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for
this rate, and conventions for this rate being established by the Calculation Agent in accordance with:

 

(1)            the
rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for
determining compounded SOFR; provided that:

 

(2)            if,
and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with clause (1) above,
then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Calculation Agent giving
due consideration to any industry-accepted market practice for U.S. dollar-denominated floating rate securities at such time.

 

For the avoidance of
doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment (if applicable) and the spread of
588 basis points per annum.

 

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

 

“DTC”
means The Depository Trust Company.

 

“Federal
Reserve” has the meaning provided in the definition of “Tier 2 Capital Event.”

 

“Federal
Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“Fixed
Rate Interest Payment Date” has the meaning provided in Section 2.7(a).

 

“Fixed
Rate Period” has the meaning provided in Section 2.7(a).

 

“Fixed
Rate Regular Record Date” has the meaning provided in Section 2.7(a).

 

    	 	5	 

     

    

 

“Floating
Rate Interest Payment Date” has the meaning provided in Section 2.7(b).

 

“Floating
Rate Period” has the meaning provided in Section 2.7(b).

 

“Floating
Rate Regular Record Date” has the meaning provided in Section 2.7(b).

 

“Interest
Payment Date” has the meaning provided in Section 2.7(b).

 

“interest
period” means the period from and including the immediately preceding Interest Payment Date in respect of which interest
has been paid or duly provided for or, if no interest has been paid or duly provided for, from and including the Issue Date to,
but excluding, the applicable Interest Payment Date or the Maturity Date or date of earlier redemption, if applicable.

 

“Interpolated
Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a
linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than
the Corresponding Tenor, and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer
than the Corresponding Tenor.

 

“ISDA
Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc.
or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate
derivatives published from time to time.

 

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

 

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

 

“Issue
Date” means June 26, 2020.

 

“Maturity
Date” has the meaning provided in Section 2.2.

 

“Redemption
Date” has the meaning provided in Section 2.8.

 

“Reference
Time” with respect to any determination of the Benchmark means (1) if the Benchmark is Three-Month Term SOFR, the
time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the Benchmark
is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming
Changes.

 

    	 	6	 

     

    

 

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

 

“Senior
Indebtedness” means (i) the principal and any premium or interest for money borrowed or purchased by the Company,
including but not limited to indebtedness evidenced by bonds, debentures, notes or similar instruments; (ii) an obligation
arising from off-balance sheet guarantees and direct credit substitutes; (iii) reimbursement obligations with respect to letters
of credit, bankers’ acceptances or similar facilities; (iv) obligations issued or assumed as the deferred purchase price
of property or services (but excluding trade accounts payable or accrued liabilities arising in the ordinary course of business);
(v) capital lease obligations; (vi) any obligations associated with derivative products including but not limited to
securities contracts, foreign currency exchange contracts, swap agreements (including interest rate and foreign exchange rate swap
agreements), cap agreements, floor agreements, collar agreements, interest rate agreements, foreign exchange rate agreements, options,
commodity futures contracts, commodity option contracts and similar financial instruments; (vii) debt of others described
in the preceding clauses that we have guaranteed or for which we are otherwise liable or that are secured by any lien on any of
our property or assets; and (viii) obligations to general creditors, in each case, whether outstanding on the date this Indenture
becomes effective, or created, assumed or incurred after that date, unless in the instrument creating or evidencing any such indebtedness
or obligation, or pursuant to which the same is outstanding, it is provided that such indebtedness or obligation is not superior
in right of payment to the Notes or to other debt that is pari passu with or subordinate to the Notes.

 

Senior Indebtedness
excludes any (i) trade accounts payables arising in the ordinary course of the Company’s business; (ii) any indebtedness
of the Company that when incurred and without respect to any election under Section 1111(b) of the United States Bankruptcy
Code of 1978, as amended, was without recourse to the Company; (iii) any indebtedness to an employee of the Company; or (iv) indebtedness
that expressly states that it is junior to, or ranks equally in right of payment with, the Notes.

 

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

 

“Tax
Event” means the receipt by the Company of an opinion of independent tax counsel to the effect that as a result of (a) an
amendment to or change (including any announced prospective amendment or change) in any law or treaty, or any regulation thereunder,
of the United States or any of its political subdivisions or taxing authorities; (b) a judicial decision, administrative action,
official administrative pronouncement, ruling, regulatory procedure, regulation, notice or announcement, including any notice or
announcement of intent to adopt or promulgate any ruling, regulatory procedure or regulation (any of the foregoing, an “Administrative
or Judicial Action”); or (c) an amendment to or change in any official position with respect to, or any interpretation
of, an Administrative or Judicial Action or a law or regulation of the United States that differs from the previously generally
accepted position or interpretation, in each case, which change or amendment or challenge becomes effective or which pronouncement,
decision or challenge is announced on or after the original issue date of the Notes, there is more than an insubstantial risk that
interest payable by the Company on the Notes is not, or, within 90 days of the date of such opinion, will not be, deductible by
the Company, in whole or in part, for United States federal income tax purposes.

 

    	 	7	 

     

    

 

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

 

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

 

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

 

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

 

“Tier
2 Capital Event” means the Company’s good faith determination that, as a result of (a) any amendment to, or
change in, the laws, rules or regulations of the United States (including, for the avoidance of doubt, any agency or instrumentality
of the United States, including the Federal Reserve and other federal bank regulatory agencies) or any political subdivision of
or in the United States that is enacted or becomes effective after the original issue date of the Notes; (b) any proposed
change in those laws, rules or regulations that is announced or becomes effective after the original issue date of the Notes;
or (c) any official administrative decision or judicial decision or administrative action or other official pronouncement
interpreting or applying those laws, rules, regulations, policies or guidelines with respect thereto that is announced after the
original issue date of the Notes, there is more than an insubstantial risk that the Company will not be entitled to treat the Notes
then outstanding as “Tier 2 Capital” (or its equivalent) for purposes of the capital adequacy rules or regulations
of the Board of Governors of the Federal Reserve System (the “Federal Reserve”) (or, as and if applicable, the
capital adequacy rules or regulations of any successor appropriate federal banking agency) as then in effect and applicable
to the Company, for so long as any Notes are outstanding.

 

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

 

    	 	8	 

     

    

 

Article II

 

GENERAL
TERMS AND CONDITIONS OF THE NOTES

 

Section 2.1           Designation
and Principal Amount. There is hereby authorized and established a series of Securities under the Indenture, designated as
the “6.000% Fixed-to-Floating Rate Subordinated Notes due 2030.”

 

Section 2.2           Form and
Denomination of Notes. The definitive form of the Notes and the Trustee’s Certificate of Authentication to be endorsed
thereon shall be substantially in the form set forth in Exhibit A attached hereto, which is incorporated herein and made part
hereof. The Notes shall bear interest and have such other terms as are stated in the form of definitive Notes or in the Indenture,
as supplemented by this Supplemental Indenture. The stated maturity of the Notes shall be July 1, 2030 (the “Maturity
Date”). The Notes shall be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

Section 2.3           Initial
Limit on Amount of Series. The Notes shall initially be limited to U.S. $50,000,000 in aggregate principal amount, and may,
upon the execution and delivery of this Supplemental Indenture or from time to time thereafter, be executed by the Company and
delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the
delivery of a Company Order. Following the initial issuance of the Notes, the aggregate principal amount of Notes may be increased
as provided in Section 2.5 hereof.

 

Section 2.4           Rank;
Subordination. The Notes are unsecured and shall rank subordinate and junior, to the extent and in the manner set forth in
the Indenture, in right of payment and upon liquidation of all the Company’s obligations to the holders of Senior Indebtedness
of the Company. The Notes shall rank equally among themselves and with all of the Company’s other subordinated unsecured
indebtedness that, in the instrument creating or evidencing the same or pursuant to which the same is outstanding, provides that
such obligations are not superior in right of payment to the Notes or to other indebtedness that is pari passu with, or
is not subordinate to, the Notes; provided that that the Notes shall rank senior to (i) the Company’s obligations relating
to any junior subordinated debt securities issued to the Company’s capital trust subsidiaries, and (ii) the Company’s
future indebtedness the terms of which provide that such indebtedness ranks junior to the Notes . It is intended that the Notes
be and are Tier 2 capital or the equivalent, for all regulatory purposes.

 

Section 2.5           Further
Issues Without Holders’ Consent. The Company may, without notice to or the consent of the Holders of the Notes, but in
compliance with the terms of the Indenture and this Supplemental Indenture, create and issue additional Notes having the same ranking,
interest rate, maturity date and other terms as the Notes (other than the date of issuance, the issue price, the initial interest
accrual date and the first Interest Payment Date). Any such additional Notes will rank equally and ratably with the Notes. Any
such additional Notes, together with the Notes initially issued hereunder, will constitute a single series of Securities for all
purposes under the Indenture. Notwithstanding anything to the contrary in the foregoing, no additional Notes may be issued unless
(1) the additional Notes will be fungible with the Notes initially issued hereunder for United States securities law purposes,
(2) (a) the additional Notes are issued pursuant to a “qualified reopening” of the Notes initially issued
hereunder for United States federal income tax purposes, or (b) the Notes initially issued hereunder were, and the additional
Notes are, issued without any original issue discount for United States federal income tax purposes and (3) the additional
Notes have the same CUSIP number as the Notes initially issued hereunder. No additional Notes may be issued if any Default has
occurred and is continuing with respect to the Notes.

 

    	 	9	 

     

    

 

Section 2.6           Form and
Payment. Principal of, Additional Amounts, if any, and interest on the Notes shall be payable in U.S. Dollars.

 

Section 2.7           Interest.

 

(a)          The
Notes will bear interest at a fixed rate of 6.000% per annum from and including June 26, 2020 to, but excluding, July 1,
2025 or earlier Redemption Date (the “Fixed Rate Period”). Interest accrued on the Notes during the Fixed Rate
Period will be payable semi-annually in arrears on January 1 and July 1 of each year, commencing on January 1, 2021
(each such date, a “Fixed Rate Interest Payment Date”). The last Fixed Rate Interest Payment Date shall be July 1,
2025, unless the Notes are earlier redeemed. The interest payable during the Fixed Rate Period will be paid to each Holder in whose
name a Note is registered at the close of business on the fifteenth day (whether or not a Business Day) immediately preceding the
applicable Fixed Rate Interest Payment Date (each such date, a “Fixed Rate Regular Record Date”).

 

(b)          The
Notes will bear a floating interest rate from, and including July 1, 2025, to, but excluding, the Maturity Date or earlier
Redemption Date (the “Floating Rate Period”). The floating interest rate will be reset quarterly, and the interest
rate for any Floating Rate Period shall be equal to the then-current Three-Month Term SOFR plus 588 basis points for each quarterly
interest period during the Floating Rate Period. During the Floating Rate Period, interest on the Notes will be payable quarterly
in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on October 1, 2025 (each
such date, a “Floating Rate Interest Payment Date” and, together with a Fixed Rate Interest Payment Date, an
 “Interest Payment Date”). The interest payable during the Floating Rate Period will be paid to each Holder in
whose name a Note is registered at the close of business on the fifteenth day (whether or not a Business Day) immediately preceding
the applicable Floating Rate Interest Payment Date (each such date, a “Floating Rate Regular Record Date”).
Notwithstanding the foregoing, if Three-Month Term SOFR (or other applicable Benchmark) is less than zero, then Three-Month Term
SOFR (or other such Benchmark) shall be deemed to be zero. The Calculation Agent will provide the Company and the Trustee with
the interest rate in effect on the Notes promptly after the Reference Time (or such other date of determination for the applicable
Benchmark).

 

    	 	10	 

     

    

 

(c)          The
amount of interest payable on any Fixed Rate Interest Payment Date during the Fixed Rate Period will be computed on the basis of
a 360-day year consisting of twelve 30-day months to, but excluding, July 1, 2025, and, the amount of interest payable on
any Floating Rate Interest Payment Date during the Floating Rate Period will be computed on the basis of a 360-day year on the
basis of the actual number of days elapsed. The Company or the Calculation Agent, as applicable, shall calculate the amount of
interest payable on any Interest Payment Date and the Trustee shall have no duty to confirm or verify any such calculation. In
the event that any scheduled Interest Payment Date or the Maturity Date for the Notes falls on a day that is not a Business Day,
then payment of interest payable on such Interest Payment Date or of principal and interest payable on the Maturity Date will be
paid on the next succeeding day which is a Business Day (any payment made on such date will be treated as being made on the date
that the payment was first due and no interest on such payment will accrue for the period from and after such scheduled Interest
Payment Date); provided, that in the event that any scheduled Floating Rate Interest Payment Date falls on a day that is not a
Business Day and the next succeeding Business Day falls in the next succeeding calendar month, such Floating Rate Interest Payment
Date will be accelerated to the immediately preceding Business Day, and, in each such case, the amounts payable on such Business
Day will include interest accrued to, but excluding, such Business Day. Dollar amounts resulting from interest calculations will
be rounded to the nearest cent, with one half cent being rounded upward.

 

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

 

    	 	11	 

     

    

 

(e)          Effect
of Benchmark Transition Event.

 

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

 

(2)            Notwithstanding
anything set forth in Section 2.7(b) above, if the Calculation Agent determines on or prior to the relevant Reference
Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term
SOFR, then the provisions set forth in this Section 2.7(e) will thereafter apply to all determinations of the interest
rate on the Notes during the Floating Rate Period. After a Benchmark Transition Event and its related Benchmark Replacement Date
have occurred, the interest rate on the Notes for each interest period during the Floating Rate Period will be an annual rate equal
to the Benchmark Replacement plus 588 basis points.

 

(3)            The
Calculation Agent is expressly authorized to make certain determinations, decisions and elections under the terms of the Notes,
including with respect to the use of Three-Month Term SOFR as the Benchmark and under this Section 2.7(e). Any determination,
decision or election that may be made by the Calculation Agent under the terms of the Notes, including any determination with respect
to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take
or refrain from taking any action or selection (A) will be conclusive and binding on the Holders of the Notes and the Trustee
absent manifest error, (B) if made by the Company as Calculation Agent, will be made in the Company’s sole discretion,
(C) if made by a Calculation Agent other than the Company, will be made after consultation with the Company, and the Calculation
Agent will not make any such determination, decision or election to which the Company reasonably objects and (D) notwithstanding
anything to the contrary herein or in the Indenture, shall become effective without consent from the Holders of the Notes, the
Trustee or any other party. If the Calculation Agent fails to make any determination, decision or election that it is required
to make under the terms of the Notes, then the Company will make such determination, decision or election on the same basis as
described above.

 

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

 

    	 	12	 

     

    

 

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

 

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

 

Section 2.8           Redemption.

 

(a)          The
Notes shall be redeemable, in each case, in whole or in part from time to time, at the option of the Company beginning with the
Interest Payment Date on July 1, 2025 but not prior thereto (except upon the occurrence of certain events specified below),
and on any Interest Payment Date thereafter (each, a “Redemption Date”), subject to obtaining the prior approval
of the Federal Reserve to the extent such approval is then required under the rules of the Federal Reserve. The Notes may
not otherwise be redeemed prior to the Maturity Date, except that the Company may, at its option, redeem the Notes before the Maturity
Date, in whole, but not in part, subject to obtaining the prior approval of the Federal Reserve to the extent such approval is
then required under the rules of the Federal Reserve, upon the occurrence of a Tier 2 Capital Event or a Tax Event, or if
the Company is required to register as an investment company pursuant to the Investment Company Act of 1940, as amended (15 U.S.C.
80a-1 et seq.). Any such redemption will be at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed,
plus accrued and unpaid interest to, but excluding, the Redemption Date fixed by the Company. The provisions of Article Eleven
of the Indenture shall apply to any redemption of the Notes pursuant to this Section 2.8. Any partial redemption will be made
in accordance with DTC’s applicable procedures among all of the Holders of the Notes. If any Note is to be redeemed in part
only, the notice of redemption relating to such Note shall state that it is a partial redemption and the portion of the principal
amount thereof to be redeemed, and a replacement Note in principal amount equal to the unredeemed portion thereof will be issued
in the name of the Holder thereof upon cancellation of the original Note.

 

    	 	13	 

     

    

 

(b)          Any
notice of redemption provided to the Holders of the Notes may be conditional in the Company’s discretion, and the Company
may delay the Redemption Date until such time as any or all of such conditions have been satisfied or revoked by the Company if
it determines that such conditions will not be satisfied. The Company will provide written notice to the Trustee prior to the close
of business two Business Days prior to the Redemption Date (or such shorter period as may be acceptable to the Trustee) if any
such redemption has been rescinded or delayed, and upon receipt the Trustee will provide such notice to each Holder of the Notes
in the same manner in which the notice of redemption was given.

 

Section 2.9           No
Sinking Fund. No sinking fund will be provided with respect to the Notes. In no event shall any Holder of the Notes have the
right to require the Company to call, redeem or repurchase the Notes, in whole or in part. Nothing in this Section 2.9 shall
limit the ability of Holders of Notes to enforce their rights to the payment of principal, Additional Amounts, if any, and interest
on the Notes at maturity as provided in the Notes and in the Indenture, including Section 507 of the Indenture.

 

Section 2.10         Notes
Not Convertible or Exchangeable. The Notes will not be convertible or exchangeable for other securities or property.

 

Section 2.11         Events
of Default. Only the Events of Default described in clauses (1) and (2) of Section 501 of the Indenture
shall permit acceleration of the maturity of the Notes, as provided in Section 502 of the Indenture.

 

Section 2.12         Global
Securities. The Notes shall be issued as registered securities and in the form of one or more permanent global Securities,
without coupons, registered in the name of the Depository or its nominee. The initial Depository for the Notes shall be DTC. Except
as otherwise provided in Section 305 of the Indenture, the global Securities described above may be transferred by the Depository,
in whole but not in part, only to a nominee of the Depository, or by a nominee of the Depository to the Depository, or to a successor
Depository or to a nominee of such successor Depository.

 

Owners of beneficial
interests in such global Securities will not be considered the Holders thereof for any purpose under the Indenture. The rights
of owners of beneficial interests in such global Securities shall be exercised only through the Depository.

 

Section 2.13         No
Additional Amounts. In the event that any payment on the Notes is subject to withholding of any U.S. federal income tax or
other tax or assessment (as a result of a change in law or otherwise), the Company will not pay Additional Amounts with respect
to such tax or assessment.

 

    	 	14	 

     

    

 

Article III

 

ORIGINAL
ISSUE OF NOTES

 

Section 3.1           Original
Issue of Notes. The Notes may, upon execution of this Supplemental Indenture, be executed by the Company and delivered to the
Trustee for authentication, and the Trustee shall, upon Company Order, authenticate and deliver such Notes as in such Company Order
provided.

 

Article IV

 

DEFEASANCE

 

Section 4.1           Defeasance
Applicable to Notes. Pursuant to Section 301(xvi) and Section 1401 of the Indenture, provision is hereby made
for defeasance of the Notes under Sections 1402 and 1403 of the Indenture upon the terms and conditions contained in Article Fourteen
of the Indenture.

 

Article V

 

MISCELLANEOUS

 

Section 5.1           Ratification
of Indenture. The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and
this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided;
provided, however, that the provisions of this Supplemental Indenture shall apply solely with respect to the Notes and shall
govern in the event of any difference with the Indenture.

 

Section 5.2           Conflict
with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture Act
that is required under such Act to be a part of and govern this Indenture, the latter provision shall control. If any provision
of this Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be.

 

Section 5.3           Effect
of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience
only and shall not affect the construction hereof.

 

Section 5.4           Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Company shall bind its successors and assigns,
whether expressed or not.

 

    	 	15	 

     

    

 

Section 5.5           Separability
Clause. In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 5.6           Benefits
of Indenture. Nothing in this Supplemental Indenture or in the Notes, express or implied, shall give to any Person, other than
the Holders of the Securities, the parties hereto and their successors hereunder, any benefit of any legal or equitable right,
remedy or claim under this Supplemental Indenture.

 

Section 5.7           Governing
Law. This Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State
of New York. The Company irrevocably consents and agrees that any legal action, suit or proceeding against it with respect to any
matter arising out of or in connection with this Supplemental Indenture or the Securities may be brought in the courts of the State
of New York or the courts of the United States located in the Borough of Manhattan, New York, New York.

 

Section 5.8           Waiver
of Jury Trial. EACH OF THE COMPANY, THE TRUSTEE AND EACH HOLDER OF A SECURITY BY ITS ACCEPTANCE THEREOF, HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE SECURITIES, THE INDENTURE OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.

 

Section 5.9           Counterparts.
This Supplemental Indenture may be executed in several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument. Each signed copy shall be an original, but all of them together represent the same
agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall
constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of
the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be
deemed to be their original signatures for all purposes.

 

Section 5.10         Electronic
Signatures. All notices, approvals, consents, requests and any communications hereunder must be in writing, provided that any
communications sent to Trustee hereunder must be in the form of a document that is signed manually or by way of a digital signature
provided by DocuSign (or such other digital signature provider as specified in writing to Trustee by the authorized representative),
in English. The Company agrees to assume all risks arising out of the use of using digital signatures and electronic methods to
submit communications to Trustee, including without limitation the risk of Trustee acting on unauthorized instructions, and the
risk of interception and misuse by third parties.

 

    	 	16	 

     

    

 

Section 5.11         Trustee.
The Trustee shall not be responsible for and makes no representation as to the validity, sufficiency or adequacy of this Supplemental
Indenture or the Notes, and it shall not be responsible for any statement of the Company in this Supplemental Indenture or in the
Notes. The Trustee makes no representations with respect to the effectiveness or adequacy of this Supplemental Indenture. The Trustee
shall not be accountable for the use or application by the Company of the Notes or the proceeds thereof.

 

[Signature page follows on next
page]

 

    	 	17	 

     

    

 

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

 

	 	BYLINE BANCORP, INC.
	 	 
	 	 
	 	By:	/s/ Alberto J. Paracchini
	 	Name:	Alberto J. Paracchini
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
    as Trustee
	 	 
	 	 
	 	By:	/s/ Linda Garcia
	 	Name:	Linda Garcia
	 	Title:	Vice President

 

[Signature page to First Supplemental
Indenture]

 

    	 	18	 

     

    

 

Exhibit A

 

FORM OF
NOTE

 

BYLINE
BANCORP, INC.

6.000% FIXED-TO-FLOATING RATE SUBORDINATED NOTE DUE JULY 1, 2030

 

	No. 1	$50,000,000

 

CUSIP No. 124411AA7

ISIN No. US124411AA74

 

THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO.,
THE NOMINEE OF THE DEPOSITORY TRUST COMPANY (THE “DEPOSITORY”). EXCEPT AS OTHERWISE PROVIDED IN SECTION 305
OF THE INDENTURE, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY
OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

 

UNLESS THIS SECURITY
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO BYLINE BANCORP, INC. (the “COMPANY”) OR ITS AGENT FOR
REGISTRATION OR TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY IS
NOT A DEPOSIT AND IT IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”) OR ANY
OTHER GOVERNMENT AGENCY.

 

THIS SECURITY IS SUBORDINATED,
AS TO PRINCIPAL, INTEREST AND PREMIUM, AND ADDITIONAL AMOUNTS, IF ANY, TO ALL “SENIOR INDEBTEDNESS” OF THE
COMPANY, INCLUDING ALL OBLIGATIONS TO THE COMPANY’S GENERAL CREDITORS (OTHER THAN OBLIGATIONS TO TRADE CREDITORS INCURRED
IN THE ORDINARY COURSE OF THE COMPANY’S BUSINESS). THIS SECURITY IS NOT SECURED BY ANY ASSETS OF THE COMPANY OR BY THE ASSETS
OF ANY OF ITS SUBSIDIARIES OR AFFILIATES, AND IS NOT GUARANTEED BY ANY OF THE COMPANY’S SUBSIDIARIES OR AFFILIATES.

 

    	 	Exhibit A – Page 1	 

     

    

 

THIS SECURITY IS ISSUABLE
IN DENOMINATIONS OF $1,000 AND INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF. AS PROVIDED IN THE INDENTURE AND SUBJECT TO CERTAIN
LIMITATIONS THEREIN SET FORTH, SECURITIES OF THIS SERIES ARE EXCHANGEABLE FOR A LIKE AGGREGATE PRINCIPAL AMOUNT OF SECURITIES OF
SUCH SERIES OF A DIFFERENT AUTHORIZED DENOMINATION, AS REQUESTED BY THE HOLDER SURRENDERING THE SAME.

 

Byline Bancorp, Inc.,
a Delaware corporation, and any successor thereto, as provided below (the “Company”), for value received, hereby
promises to pay or deliver, as the case may be, to CEDE & CO., or registered assigns, the principal sum of Fifty Million
United States Dollars ($50,000,000) on July 1, 2030 (the “Stated Maturity Date”), unless redeemed
prior to such date. This Security will bear interest at a fixed rate of 6.000% per annum from and including June 26, 2020,
to, but excluding, July 1, 2025 (the “Fixed Rate Period”), unless redeemed prior to such date. Interest
accrued on this Security during the Fixed Rate Period will be payable semi-annually in arrears on January 1 and July 1
of each year (each such date, a “Fixed Rate Interest Payment Date”), with the first such Fixed Rate Interest
Payment Date being January 1, 2021, and the last such Fixed Rate Interest Payment Date being July 1, 2025, unless redeemed
prior to such date. This Security will bear interest at a floating per annum interest rate from and including July 1, 2025,
to, but excluding, the Stated Maturity Date or any earlier redemption date (the “Floating Rate Period”). The
floating interest rate will be reset quarterly, and the interest rate for any Floating Interest Period will be equal to the then-current
Benchmark plus 588 basis points. During the Floating Rate Period, interest on this Security will be payable quarterly in arrears
on January 1, April 1, July 1 and October 1 of each year (each such date, a “Floating Rate Interest
Payment Date”, and together with a Fixed Rate Interest Payment Date, an “Interest Payment Date”),
with the first such Floating Rate Interest Payment Date being October 1, 2025, and the last such Floating Rate Interest Payment
Date being the Stated Maturity Date or any earlier redemption date. Notwithstanding the foregoing, if the Benchmark is less than
zero, the Benchmark shall be deemed to be zero. Interest on each Fixed Rate Interest Payment Date is payable to holders of record
on the Fixed Rate Regular Record Date pursuant to the Indenture. Interest on each Floating Rate Interest Payment Date is payable
to holders of record on the Floating Rate Regular Record Date pursuant to the Indenture.

 

The interest payable
on any Fixed Rate Interest Payment Date during the Fixed Rate Period will be computed on the basis of a 360-day year consisting
of twelve 30-day months to, but excluding, July 1, 2025. The interest payable on any Floating Rate Interest Payment Date during
the Floating Rate Period will be computed on the basis of a 360-day year and the number of days actually elapsed. If a Fixed Rate
Interest Payment Date or the Stated Maturity Date for this Security falls on a day that is not a Business Day, the interest payable
on such Interest Payment Date or the payment of principal and interest on the Stated Maturity Date will be paid on the next succeeding
Business Day, but the payments made on such dates will be treated as being made on the date that the payment was first due and
the Holder of this Security will not be entitled to any further interest or other payment. If a Floating Rate Interest Payment
Date falls on a day that is not a Business Day, then such Floating Rate Interest Payment Date will be postponed to the next succeeding
Business Day, unless such day falls in the next succeeding calendar month, in which case such Floating Rate Interest Payment Date
will be accelerated to the immediately preceding Business Day, and, in each such case, the amounts payable on such Business Day
will include interest accrued to, but excluding, such Business Day.

 

    	 	Exhibit A – Page 2	 

     

    

 

No sinking fund will
be provided with respect to this Security. In no event shall any Holder of this Security have the right to require the Company
to call, redeem or repurchase this Security, in whole or in part prior to maturity. Nothing in this paragraph, however, shall limit
the ability of the Holder of this Security to enforce its rights to the payment of principal and Additional Amounts, if any, and
interest on the Security at maturity as provided herein.

 

Payment of the principal
of and interest on this Security will be made in immediately available funds in U.S. dollars at the Corporate Trust Office of the
Trustee or other Paying Agent, or, at the option of the Company in the event this Security is no longer represented by a global
Security registered in the name of the Depository or its nominee, by check mailed to Holders of registered securities entitled
thereto as such Holders shall appear in the securities register.

 

Under certain conditions,
the Company may, without notice to or the consent of the Holder of this Security, create and issue additional notes ranking equally
with this Security and otherwise the same in all respects (except for the issue date, issue price, initial interest accrual date
and first Interest Payment Date), provided that no such additional notes may be issued unless (1) the additional notes
are fungible with this Security for United States securities law purposes, (2) (a) the additional notes are issued pursuant
to a “qualified reopening” of this Security for United States federal income tax purposes, or (b) this Security
was, and the additional notes are, issued without any original issue discount for United States federal income tax purposes and
(3) the additional notes have the same CUSIP number as this Security. No additional notes may be issued if any Default has
occurred and is continuing with respect to this Security. Such additional notes shall be consolidated and form a single series
with this Security.

 

The Securities shall
be issued as registered securities in the form of one or more permanent global Securities, without coupons, registered in the name
of the Depository or its nominee. The global Securities described above may be transferred by the Depository, in whole but not
in part, only to a nominee of the Depository, or by a nominee of the Depository to the Depository, or to a successor Depository
or to a nominee of such successor Depository.

 

Owners of beneficial
interests in such global Securities will not be considered the Holders thereof for any purpose hereunder. The rights of owners
of beneficial interests in such global Securities shall be exercised only through the Depository.

 

Any “depository
institution,” as defined in Section 3(c)(1) of the Federal Deposit Insurance Act, which holds a Security (or beneficial
interest therein) shall be deemed to have agreed by acquiring such Security (or beneficial interest) to waive any rights to offset
all or any portion of the indebtedness represented by such Security (or interest) against any indebtedness or other obligations
of such institution to the Company.

 

Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

 

Unless the certificate
of authentication hereon has been executed by the Trustee by the manual signature of an authorized signatory, this Security shall
not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    	 	Exhibit A – Page 3	 

     

    

 

(Remainder of page intentionally left
blank)

 

    	 	Exhibit A – Page 4	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed by manual or facsimile signature.

 

	 	BYLINE BANCORP, INC.
	 	 
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	Dated:  June 26, 2020	 

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

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

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee  
	 	 
	 	 
	 	By:	 
	 	 	Authorized Signatory
	 	 	 
	Dated:  June 26, 2020	 

 

    	 	Exhibit A – Page 5	 

     

    

 

REVERSE
OF SECURITY

 

This Security is one
of a duly authorized issue of 6.000% Fixed-to-Floating Rate Subordinated Notes due 2030 of the Company (the “Securities”),
issued and to be issued in one or more series under a Subordinated Debt Indenture, dated as of June 26, 2020 (the “Base
Indenture”), as supplemented by that First Supplemental Indenture, dated June 26 2020 (the “First Supplemental
Indenture,” and together with the Base Indenture, the “Indenture”), by and between the Company and
U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee
under the Indenture), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder of the Trustee, the Company and the Holders of the
Securities, and to which Indenture reference is hereby made for a statement of the terms upon which the Securities of this series
are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are issuable in series that may
vary as to amount, date of maturity, rate of interest, rank and in any other respect provided in the Indenture.

 

The Company’s
indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and subject in right of payment
to the prior payment in full of all Senior Indebtedness, and this Security is issued subject to the provisions of the Indenture
with respect thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by such provisions,
(b) authorizes and directs the Trustee on his, her or its behalf to take such actions as may be necessary or appropriate to
effectuate the subordination so provided and (c) appoints the Trustee his, her or its attorney-in-fact for any and all such
purposes. Each Holder hereof, by his, her or its acceptance hereof, waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter created, incurred,
assumed or guaranteed, and waives reliance by each such holder upon said provisions.

 

The Indenture contains
provisions for defeasance of this Security upon compliance with certain conditions set forth in the Indenture.

 

If certain Events of
Default with respect to Securities of this series shall occur, the principal of the Securities of this series will automatically,
and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable in the
manner and with the effect provided in the Indenture. Certain defaults with respect to this Security may be waived by the Holder
hereof, as and if provided in the Indenture. The Company waives demand, presentment for prepayment, notice of nonpayment, notice
of protest and all other notices to the extent it may lawfully do so.

 

The Company may, at
its option, redeem the Securities, in whole or in part, at a redemption price equal to 100% of the principal amount of the Securities
to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption (the “Redemption Date”),
on any Interest Payment Date on or after July 1, 2025. The Company may also, at its option, redeem the Securities before the
Stated Maturity Date, in whole, but not in part, at any time, upon the occurrence of a Tier 2 Capital Event, a Tax Event or if
the Company is required to register as an investment company pursuant to the Investment Company Act of 1940, as amended. Any such
redemption will be at a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and
unpaid interest to, but excluding, the Redemption Date fixed by the Company.

 

     

     

    

 

Notwithstanding any
of the foregoing, to the extent then required under or pursuant to applicable regulations of the Federal Reserve, this Security
may not be repaid prior to the Stated Maturity Date without the prior written consent of the Federal Reserve. In the event of redemption
of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof. The provisions of Article Eleven of the Base
Indenture and Section 2.8 of the First Supplemental Indenture shall apply to the redemption of any Securities by the Company.

 

In the event that any
payment on the Securities is subject to withholding of any U.S. federal income tax or other tax or assessment (as a result of a
change in law or otherwise), the Company will not pay Additional Amounts with respect to such tax or assessment.

 

No reference herein
to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, premium and Additional Amounts (if any) and interest on this Security at
the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or agency of the Company maintained under Section 1002
of the Base Indenture for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith.

 

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

Nothing in this Security,
express or implied, shall give to any person, other than the Holders of the Securities, the parties hereto and their permitted
successors hereunder, any benefit of any legal or equitable right, remedy or claim hereunder.

 

The Securities of this
series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiples of $1,000 in
excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of such series of a different authorized denomination, as requested
by the Holder surrendering the same.

 

    	 	2	 

     

    

 

All notices under this
Security shall be in writing and in the case of the Company, addressed to the Company at 180 North LaSalle Street, Suite 300,
Chicago, Illinois 60601, Attention: Chief Financial Officer, or, in the case of the Trustee, at the Corporate Trust Office
at 190 South LaSalle Street, Chicago, Illinois 60603, Attention: Corporate Trust and Agency Group, or to such other address
of the Trustee as the Trustee may notify the holders of the Securities. All notices to the Holder of this Security will be given
to the Holder at its address as it appears in the security register.

 

All covenants and agreements
by the Company in this Security and the Indenture shall bind the Company’s successors and assigns, including successors by
operation of law resulting from a merger or consolidation of the Company, or successors resulting from the transfer of the Company’s
assets and liabilities substantially or entirely, to another entity (“Successors”). Any Successor shall expressly
assume in writing all the Company’s obligations hereunder prior to becoming a Successor, and upon becoming a Successor, shall
perform all the Company’s obligations hereunder and make all payments due hereunder.

 

In case any provision
in this Security shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

 

EACH OF THE COMPANY,
THE TRUSTEE AND EACH HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS SECURITY, THE INDENTURE, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

This Security shall
be governed by and construed in accordance with the laws of the State of New York and, where applicable, the federal laws of the
United States of America.

 

    	 	3	 

     

    

 

[FORM OF TRANSFER NOTICE]

 

To assign this Security, fill in the form
below:

 

	(I) or (we) assign and transfer this Note to:	 
	 	(Insert Assignee’s legal name)

 

 

(Insert assignee’s Soc. Sec. or tax
I.D. no.)

(Print or type assignee’s name, address and zip code)

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

 

	Date:	 	 

 

	Your signature:	
	 	(Sign exactly as your name appears on| the face
of this Security)
	 	 
	Signature Guarantee*:	 

 

*Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).Exhibit 4.1

 

PRE-FUNDED COMMON STOCK PURCHASE WARRANT

 

AgEagle
Aerial Systems Inc.,

 

	Warrant Shares: 1,956,236	Initial Exercise Date: June 25, 2020

 

THIS PRE-FUNDED COMMON STOCK
PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Alpha Capital Anstalt or its assigns (the
“Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and until this Warrant is exercised
in full (the “Termination Date”) but not thereafter, to subscribe for and purchase from AgEagle Aerial Systems
Inc., a Nevada corporation (the “Company”), up to 1,956,236 shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

Section 1.             Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated June 24, 2020, among the Company and the purchasers signatory thereto.

 

Section 2.             Exercise.

 

a)                  
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may
be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date
by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice
of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days
and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following
the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable
Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the
Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final
Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total
number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records
showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice
of Exercise within one (1) Business Day of receipt of such notice. Notwithstanding the foregoing, with respect to any Notice(s)
of Exercise delivered on or prior to 4:00 p.m. (New York City time) on the Trading Date prior to the Initial Exercise Date, which
may be delivered at any time after the time of execution of the Purchase Agreement, the Company agrees to deliver the Warrant Shares
subject to such notice(s) by 4:00 p.m. (New York City time) on the Initial Exercise Date and the Initial Exercise Date shall be
the Warrant Share Delivery Date for purposes hereunder, provided that payment of the aggregate Exercise Price (other than in the
case of a cashless exercise) is received by such Warrant Share Delivery Date. The Holder and any assignee, by acceptance of
this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of
the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than
the amount stated on the face hereof.

 

     1

     

    

  

b)                  
Exercise Price. The aggregate exercise price of this Warrant, except for a nominal
exercise price of $0.001 per Warrant Share, was pre-funded to the Company on or prior to the Initial Exercise Date and, consequently,
no additional consideration (other than the nominal exercise price of $0.001 per Warrant Share) shall be required to be paid by
the Holder to any Person to effect any exercise of this Warrant. The Holder shall not be entitled to the return or refund of all,
or any portion, of such pre-paid aggregate exercise price under any circumstance or for any reason whatsoever, including in the
event this Warrant shall not have been exercised prior to the Termination Date. The remaining unpaid exercise price per share of
Common Stock under this Warrant shall be $0.001, subject to adjustment hereunder (the “Exercise Price”).

 

c)                  
Cashless Exercise. This Warrant may also be exercised, in whole or in part, at such
time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal
to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise
is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined
in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of
the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the
Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. (“Bloomberg”) as of
the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular
trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the
close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the
applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed
and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

     2

     

    

 

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

 

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

 

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

 

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

 

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

 

     3

     

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

d)
           Mechanics of Exercise.

 

i.                           
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares
purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s
balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”)
if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the
issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale
by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and
otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder
in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the
Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number
of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date,
the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in
the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days
comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to
deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall
pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20
per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a
transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein,
“Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the
Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.
Notwithstanding the foregoing, with respect to any Notice(s) of Exercise delivered on or prior to 12:00 p.m. (New York City time)
on the Initial Exercise Date, which may be delivered at any time after the time of execution of the [Purchase Agreement, the Company
agrees to deliver the Warrant Shares subject to such notice(s) by 4:00 p.m. (New York City time) on the Initial Exercise Date and
the Initial Exercise Date shall be the Warrant Share Delivery Date for purposes hereunder.

 

     4

     

    

 

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

 

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

 

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

 

     5

     

    

 

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

 

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

 

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

 

     6

     

    

 

e)                 Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons
acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)),
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include
the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion
of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common
Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially
owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes
of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination
of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission
of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to
other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant
is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify
or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer
Agent setting forth the number of shares of Common Stock outstanding.

 

     7

     

    

 

Upon the written or oral request of a Holder, the Company
shall within one Trading Day confirm orally and in writing to the Holder the number of 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 or its Affiliates or Attribution Parties since the date as
of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase
in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the
Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with
the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

Section 3.Certain
Adjustments.

 

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

 

     8

     

    

 

b)                  
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a)
above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities
or other property pro rata to the record holders of any class of shares 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 exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or
sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s right to participate in any
such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled
to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such
Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time,
if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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

 

     9

     

    

 

d)                  
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or
into another Person, (ii) the Company (or any Subsidiary), directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions,
(iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash
or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase
agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or
scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the
outstanding 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 or share purchase agreement or other
business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant,
the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section
2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor
(the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the
other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance
reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction
and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number
of shares of capital stock of such Successor Entity (or its parent entity) 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 with an exercise price which applies the exercise price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this
Warrant and the other Transaction Documents 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
and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

     10

     

    

 

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

 

f)                   
Notice to Holder. 

 

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

 

ii.                         
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or
any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend
on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights
or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders
of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which
the Company (or any of its Subsidiaries) is a party, any sale or transfer of all or substantially all of its assets, or any compulsory
share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear
upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided
that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate
action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains,
material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice
with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during
the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise
be expressly set forth herein.

 

     11

     

    

 

g)                  
Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading
Market, the Company may at any time during the term of this Warrant, subject to the prior written consent of the Holder, reduce
the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

Section 4.              Transfer
of Warrant.

 

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

 

     12

     

    

 

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

 

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

 

Section 5.             Miscellaneous.

 

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

 

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

 

     13

     

    

 

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

 

d)                  
Authorized Shares. 

 

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

 

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

 

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

 

     14

     

    

 

e)                  
Jurisdiction. All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

 

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

 

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

 

h)                  
Notices. Any notice, request or other document required or permitted to be given or
delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

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

 

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

 

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

 

     15

     

    

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

     16

     

    

  

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

 

	 	AGEAGLE AERIAL SYSTEMS INC.,
	 	 	 
	 	By:	 
	 	Name:	Nicole Fernandez-McGovern
	 	Title:	CFO

 

     17

     

    

 

NOTICE OF EXERCISE

 

To:AgEagle
Aerial Systems Inc.,

 

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

 

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

 

[
] in lawful money of the United States; or

 

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

 

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

_______________________________

  

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)
         Accredited Investor. The undersigned is an "accredited investor" as defined in Regulation D promulgated under
the Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER] 

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

     

     

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

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

 

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

 

	Name:	 	 
	 	 	(Please Print)
	 	 	 
	Address:	 	 
	 	 	(Please Print)
	 	 	 
	Phone Number:	 	 
	 	 	 
	Email Address:	 	 
	 	 	 
	Dated:_________ ____, ________	 	 
	 	 	 
	Holder's Signature: __________________	 	 
	 	 	 
	Holder's Address: ___________________

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