Document:

Exhibit 4.4

 

WARRANT AGENT AGREEMENT

 

WARRANT AGENT AGREEMENT (this “Warrant
Agreement”) dated as of _________, 2016 (the “Issuance Date”) between Aytu Bioscience, Inc., a company
incorporated under the laws of the State of Delaware (the “Company”), and VStock Transfer, LLC (the “Warrant
Agent”).

 

WHEREAS, pursuant to the terms of that certain
Underwriting Agreement (“Underwriting Agreement”), dated _________, 2016, by and among the Company and Joseph
Gunnar & Co., LLC, as representative of the underwriters set forth therein, the Company is engaged in a public offering (the
“Offering”) of up to _________ shares (the “Shares”) of common stock, par value $0.0001 per
share (the “Common Stock”) of the Company and up to _________ Warrants (the “Warrants”) to
purchase shares of Common Stock (the “Warrant Shares”), including Shares and Warrants issuable pursuant to the
underwriters over-allotment option;

  

WHEREAS, the Company has filed with the Securities
and Exchange Commission (the “Commission”) a Registration Statement, No. 333-210144, on Form S-1 (as the same
may be amended from time to time, the “Registration Statement”), for the registration under the Securities Act
of 1933, as amended (the “Securities Act”), of the Shares, Warrants and Warrant Shares, and such Registration
Statement was declared effective on _______, 2016;

 

WHEREAS, the Company desires the Warrant Agent
to act on behalf of the Company, and the Warrant Agent is willing to so act, in accordance with the terms set forth in this Warrant
Agreement in connection with the issuance, registration, transfer, exchange and exercise of the Warrants;

 

WHEREAS, the Company desires to provide for
the provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights, limitation
of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS, all acts and things have been done
and performed which are necessary to make the Warrants the valid, binding and legal obligations of the Company, and to authorize
the execution and delivery of this Warrant Agreement.

 

NOW, THEREFORE, in consideration of the mutual
agreements herein contained, the parties hereto agree as follows:

 

1. Appointment of Warrant Agent. The
Company hereby appoints the Warrant Agent to act as agent for the Company with respect to the Warrants, and the Warrant Agent hereby
accepts such appointment and agrees to perform the same in accordance with the express terms and conditions set forth in this Warrant
Agreement (and no implied terms or conditions).

 

2. Warrants.

 

2.1 Form of Warrants. The Warrants shall
be registered securities and shall be evidenced by a global certificate (“Global Certificate”) in the form of
Annex A to this Warrant Agreement, which shall be deposited on behalf of the Company with a custodian for The Depository
Trust Company (“DTC”) and registered in the name of Cede & Co., a nominee of DTC. If DTC subsequently ceases
to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding making
other arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary
to have the Warrants available in, book-entry form, the Company may instruct the Warrant Agent to provide written instructions
to DTC to deliver to the Warrant Agent for cancellation the Global Certificate, and the Company shall instruct the Warrant Agent
to deliver to DTC separate certificates evidencing Warrants (“Definitive Certificates” and, together with the
Global Certificate, “Warrant Certificates”) registered as requested through the DTC system.

 

     

     

    

  

2.2. Issuance and Registration of Warrants.

 

2.2.1. Warrant Register. The Warrant
Agent shall maintain books (“Warrant Register”) for the registration of original issuance and the registration
of transfer of the Warrants.

 

2.2.2. Issuance of Warrants. Upon the
initial issuance of the Warrants, the Warrant Agent shall issue the Global Certificate and deliver the Warrants in the DTC book-entry
settlement system in accordance with written instructions delivered to the Warrant Agent by the Company. Ownership of security
entitlements in the Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained
(i) by DTC and (ii) by institutions that have accounts with DTC (each, a “Participant”).

 

2.2.3. Beneficial Owner; Holder. Prior
to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person
in whose name that Warrant shall be registered on the Warrant Register (the “Holder”) as the absolute owner
of such Warrant for purposes of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent
shall be affected by any notice to the contrary. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Warrant
Agent or any agent of the Company or the Warrant Agent from giving effect to any written certification, proxy or other authorization
furnished by DTC governing the exercise of the rights of a holder of a beneficial interest in any Warrant. The rights of beneficial
owners in a Warrant evidenced by the Global Certificate shall be exercised by the Holder or a Participant through the DTC system,
except to the extent set forth herein or in the Global Certificate.

 

2.2.4. Execution. The Warrant Certificates
shall be executed on behalf of the Company by any authorized officer of the Company (an “Authorized Officer”),
which need not be the same authorized signatory for all of the Warrant Certificates, either manually or by facsimile signature.
The Warrant Certificates shall be countersigned by an authorized signatory of the Warrant Agent, which need not be the same signatory
for all of the Warrant Certificates, and no Warrant Certificate shall be valid for any purpose unless so countersigned. In case
any Authorized Officer of the Company that signed any of the Warrant Certificates ceases to be an Authorized Officer of the Company
before countersignature by the Warrant Agent and issuance and delivery by the Company, such Warrant Certificates, nevertheless,
may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person who signed
such Warrant Certificates had not ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf
of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be an Authorized Officer
of the Company authorized to sign such Warrant Certificate, although at the date of the execution of this Warrant Agreement any
such person was not such an Authorized Officer.

 

2.2.5. Registration of Transfer. At
any time at or prior to the Expiration Date (as defined below), a transfer of any Warrants may be registered and any Warrant Certificate
or Warrant Certificates may be split up, combined or exchanged for another Warrant Certificate or Warrant Certificates evidencing
the same number of Warrants as the Warrant Certificate or Warrant Certificates surrendered. Any Holder desiring to register the
transfer of Warrants or to split up, combine or exchange any Warrant Certificate shall make such request in writing delivered to
the Warrant Agent, and shall surrender to the Warrant Agent the Warrant Certificate or Warrant Certificates evidencing the Warrants
the transfer of which is to be registered or that is or are to be split up, combined or exchanged and, in the case of registration
of transfer, shall provide a signature guarantee. Thereupon, the Warrant Agent shall countersign and deliver to the person entitled
thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The Company and the Warrant Agent may
require payment, by the Holder requesting a registration of transfer of Warrants or a split-up, combination or exchange of a Warrant
Certificate (but, for purposes of clarity, not upon the exercise of the Warrants and issuance of Warrant Shares to the Holder),
of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with such registration of transfer,
split-up, combination or exchange, together with reimbursement to the Company and the Warrant Agent of all reasonable expenses
incidental thereto.

 

     

     

    

  

2.2.6. Loss, Theft and Mutilation of Warrant
Certificates. Upon receipt by the Company and the Warrant Agent of evidence reasonably satisfactory to them of the loss, theft,
destruction or mutilation of a Warrant Certificate, and, in case of loss, theft or destruction, of indemnity or security in customary
form and amount, and reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental thereto, and upon
surrender to the Warrant Agent and cancellation of the Warrant Certificate if mutilated, the Warrant Agent shall, on behalf of
the Company, countersign and deliver a new Warrant Certificate of like tenor to the Holder in lieu of the Warrant Certificate so
lost, stolen, destroyed or mutilated. The Warrant Agent may charge the Holder an administrative fee for processing the replacement
of lost Warrant Certificates, which shall be charged only once in instances where a single surety bond obtained covers multiple
certificates. The Warrant Agent may receive compensation from the surety companies or surety agents for administrative services
provided to them.

  

2.2.7. Proxies. The Holder of a Warrant
may grant proxies or otherwise authorize any person, including the Participants and beneficial holders that may own interests through
the Participants, to take any action that a Holder is entitled to take under this Agreement or the Warrants; provided, however,
that at all times that Warrants are evidenced by a Global Certificate, exercise of those Warrants shall be effected on their behalf
by Participants through DTC in accordance the procedures administered by DTC.

 

3. Terms and Exercise of Warrants.

 

3.1. Exercise Price. Each Warrant shall
entitle the Holder, subject to the provisions of the applicable Warrant Certificate and of this Warrant Agreement, to purchase
from the Company the number of shares of Common Stock stated therein, at the price of $____ per whole share, subject to the subsequent
adjustments provided in Section 4 hereof. The term “Exercise Price” as used in this Warrant Agreement refers
to the price per share at which shares of Common Stock may be purchased at the time a Warrant is exercised.

 

3.2. Duration of Warrants. Warrants
may be exercised only during the period (“Exercise Period”) commencing on the Issuance Date and terminating
at 5:00 P.M., New York City time (the “close of business”) on ______, 2021 (“Expiration
Date”). Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and
all rights in respect thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date.

 

3.3. Exercise of Warrants.

 

3.3.1. Exercise and Payment.

 

(a) Subject to the provisions
of this Warrant Agreement, a Holder (or a Participant or a designee of a Participant acting on behalf of a Holder) may exercise
Warrants by delivering to the Warrant Agent, not later than 5:00 P.M., New York City time, on any business day during the Exercise
Period an election to purchase the Warrant Shares underlying the Warrants to be exercised (A) in the form included in Annex B to
this Warrant Agreement or (B) via an electronic warrant exercise through the DTC system (each, an “Election to Purchase”).
No later than one (1) Trading Day following delivery of an Election to Purchase, the Holder (or a Participant acting on behalf
of a Holder in accordance with DTC procedures) shall (i) (A) surrender of the Warrant Certificate evidencing the Warrants to the
Warrant Agent at its office designated for such purpose or (B) delivery of the Warrants to an account of the Warrant Agent at DTC
designated for such purpose in writing by the Warrant Agent to DTC from time to time, and (ii) deliver to the Company the Exercise
Price for each Warrant to be exercised, in lawful money of the United States of America by certified or official bank check payable
to the Company or bank wire transfer in immediately available funds to:

 

___________________

___________________

___________________

___________________

 

     

     

    

  

Any person so designated
by the Holder (or a Participant or designee of a Participant on behalf of a Holder) to receive Warrant Shares shall be deemed to
have become holder of record of such Warrant Shares as of the time that an appropriately completed and duly signed Election to
Purchase has been delivered to the Warrant Agent, provided that the Holder (or Participant on behalf of the Holder) makes delivery
of the deliverables referenced in the immediately preceding sentence by the date that is one (1) Trading Day after the delivery
of the Election to Purchase. If the Holder (or Participant on behalf of the Holder) fails to make delivery of such deliverables
on or prior to the Trading Day following delivery of the Election to Purchase, such Election to Purchase shall be void ab initio. 

 

(b) If any of (i) the Warrants, (ii) the Election
to Purchase, or (iii) the Exercise Price therefor, is received by the Warrant Agent on any date after 5:00 P.M., New York City
time, or on a date that is not a Trading Day, the Warrants with respect thereto will be deemed to have been received and exercised
on the Trading Day next succeeding such date. “Business day” means a day other than a Saturday or Sunday on
which commercial Banks in New York City are open for the general conduct of banking business. The “Exercise Date”
will be the date on which the materials in the foregoing sentence are received by the Warrant Agent (if by 5:00 P.M., New York
City time), or the following Trading Day (if after 5:00 P.M., New York City time), regardless of any earlier date written on the
materials. If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof will be null and
void and any funds delivered to the Company will be returned to the Holder or Participant, as the case may be, as soon as practicable.
In no event will interest accrue on any funds deposited with the Company in respect of an exercise or attempted exercise of Warrants.

 

(c) [Reserved.]

 

(d) If less than all the Warrants evidenced
by a surrendered Warrant Certificate are exercised, the Warrant Agent shall split up the surrendered Warrant Certificate and return
to the Holder a Warrant Certificate evidencing the Warrants that were not exercised.

 

3.3.2. Issuance of Warrant Shares. (a)
The Warrant Agent shall, by 11:00 a.m., New York City time, on the Trading Day following the Exercise Date of any Warrant, advise
the Company, the transfer agent and registrar for the Company’s Common Stock, in respect of (i) the number of Warrant Shares
indicated on the Election to Purchase as issuable upon such exercise with respect to such exercised Warrants, (ii) the instructions
of the Holder or Participant, as the case may be, provided to the Warrant Agent with respect to the delivery of the Warrant Shares
and the number of Warrants that remain outstanding after such exercise and (iii) such other information as the Company or such
transfer agent and registrar shall reasonably request.

 

(b)
The Company shall, by no later than 5:00 P.M., New York City time, on the third Trading Day following the Exercise Date of any
Warrant and the clearance of the funds in payment of the Exercise Price (such date and time, the “Delivery Time”),
cause its registrar to electronically transmit the Warrant Shares
issuable upon that exercise to DTC by crediting the account of DTC or of the Participant, as the case may be, through its Deposit
Withdrawal Agent Commission system.

 

3.3.3. Valid Issuance. All Warrant Shares
issued by the Company upon the proper exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued,
fully paid and non-assessable.

 

3.3.4. No Fractional Exercise. No fractional
Warrant Shares will be issued upon the exercise of the Warrant. If, by reason of any adjustment made pursuant to Section 4, a Holder
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such
exercise, round up or down, as applicable, to the nearest whole number the number of Warrant Shares to be issued to such Holder.

 

3.3.5 No Transfer Taxes. The Company
shall not be required to pay any stamp or other tax or governmental charge required to be paid in connection with any transfer
involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that any such transfer is involved,
the Company shall not be required to issue or deliver any Warrant Shares until such tax or other charge shall have been paid or
it has been established to the Company’s satisfaction that no such tax or other charge is due.

 

     

     

    

  

3.3.6 Date of Issuance. The Company
will treat an exercising Holder as a beneficial owner of the Warrant Shares as of the Exercise Date, except that, if the Exercise
Date is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of
such shares at the open of business on the next succeeding date on which the stock transfer books are open.

 

3.3.7 Restrictive Legend Events; Cashless
Exercise Under Certain Circumstances.

 

(i) The Company shall use it reasonable best
efforts to maintain the effectiveness of the Registration Statement and the current status of the prospectus included therein or
to file and maintain the effectiveness of another registration statement and another current prospectus covering the Warrants and
the Warrant Shares at any time that the Warrants are exercisable. The Company shall provide to the Warrant Agent and each Holder
prompt written notice of any time that the Company is unable to deliver the Warrant Shares via DTC transfer or otherwise without
restrictive legend because (A) the Commission has issued a stop order with respect to the Registration Statement, (B) the Commission
otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, (C) the
Company has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, (D) the
prospectus contained in the Registration Statement is not available for the issuance of the Warrant Shares to the Holder or (E)
otherwise (each a “Restrictive Legend Event”). To the extent that the Warrants cannot be exercised as a result
of a Restrictive Legend Event or a Restrictive Legend Event occurs after a Holder has exercised Warrants in accordance with the
terms of the Warrants but prior to the delivery of the Warrant Shares, the Company shall, at the election of the Holder, which
shall be given within five (5) days of receipt of such notice of the Restrictive Legend Event, either (A) rescind the previously
submitted Election to Purchase and the Company shall return all consideration paid by registered holder for such shares upon such
rescission or (B) treat the attempted exercise as a cashless exercise as described in paragraph (ii) below and refund the cash
portion of the exercise price to the Holder.

 

(ii) If a Restrictive Legend Event has occurred,
the Warrant shall only be exercisable on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not
be required to make any cash payments or net cash settlement to the Holder in lieu of delivery of the Warrant Shares. Upon a “cashless
exercise”, the Holder shall be entitled to receive the number of Warrant Shares equal to the quotient obtained by dividing
(A-B) (X) by (A), where:

 

	 	(A)	= the VWAP on the Trading Day immediately preceding the Exercise Date;

 

	 	(B)	= the Exercise Price of the Warrant, as adjusted as set forth herein; and

 

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

 

If the Warrant Shares are issued in such a
cashless exercise, the Company acknowledges and agrees that, in accordance with Section 3(a)(9) of the Securities Act, the Warrant
Shares shall take on the registered characteristics of the Warrants being exercised and the Company agrees not to take any position
contrary thereto. Upon receipt of an Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a copy
of the Election to Purchase to the Company to confirm the number of Warrant Shares issuable in connection with the cashless exercise.
The Company shall calculate and transmit to the Warrant Agent in a written notice, and the Warrant Agent shall have no duty, responsibility
or obligation under this section to calculate, the number of Warrant Shares issuable in connection with any cashless exercise.
The Warrant Agent shall be entitled to rely conclusively on any such written notice provided by the Company, and the Warrant Agent
shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with such written instructions or
pursuant to this Warrant Agreement.

  

3.3.8 Disputes. In the case of a dispute
as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares issuable in connection
with any exercise, the Company shall promptly deliver to the Holder the number of Warrant Shares that are not disputed.

 

3.3.9 [Reserved.]

 

     

     

    

  

3.3.10 Beneficial Ownership Limitation.
A Holder shall not have the right to exercise any Warrants to the extent that after giving effect to the issuance of Warrant Shares
after exercise as set forth on the applicable Election to Purchase, such Holder or a person holding through such Holder (together
with such Holder’s or person’s Affiliates (as defined in Rule 405 under the Securities Act), and any other persons
acting as a group together with that Holder or person or any of that Holder’s or person’s Affiliates), would beneficially
own in excess of 4.99% (“Beneficial Ownership Limitation”) of the Company’s Common Stock. For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially owned by a person shall include the number of Warrant
Shares that would be owned by that person issuable upon exercise of the Warrants with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock (i) which would be issuable upon exercise of the remaining, non-exercised
Warrants beneficially owned by that person or any of its Affiliates and (ii) underlying any other securities of the Company held
by such Holder or its Affiliates that are exercisable or convertible into Common Stock and subject to a limitation on conversion
or exercise that is analogous to the limitation contained in this Section 3.3.10. Except as set forth in the preceding sentence,
for purposes of this Section 3.3.10, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that neither the Warrant Agent nor the Company is representing to the Holder that such calculation
is in compliance with Section 13(d) of the Exchange Act and the Holder or beneficial owner is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation contained in this Section 3.3.10 applies, the determination
of whether a Warrant is exercisable and of the number of Warrants that are exercisable shall be in the sole discretion of the Holder,
and the submission of an Election to Purchase shall be deemed to be the Holder’s determination of whether such Warrant is
exercisable and of the number of Warrants that are exercisable, and neither the Warrant Agent nor the Company shall have any obligation
to verify or confirm the accuracy of such determination and neither of them shall have any liability for any error made by the
Holder or any other person. 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 3.3.10,
in determining the number of outstanding shares of Common Stock, a Holder or other person 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 Securities
and Exchange 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 Company’s transfer agent setting forth the number of shares of Common Stock outstanding. For
any reason at any time, upon the written or oral request of a person that represents that it is or is acting on behalf of a Holder,
the Company shall, within two (2) Trading Days, confirm orally or in writing or by e-mail to that person the number of shares of
Common Stock then outstanding. Upon delivery of a written notice to the Company, the Holder may from time to time increase or decrease
the Beneficial Ownership Limitation to any other percentage not in excess of 9.99% as specified in such notice, provided that any
increase in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st) day after such notice
is delivered to the Company and any such increase or decrease will apply only to the Holder and its Affiliates and not to any other
holder of Warrants. The provisions of this Section 3.3.10 shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 3.3.10 to correct this subsection (or any portion hereof) which may be defective or inconsistent
with the intended beneficial ownership limitation herein contained.

 

4. Adjustments.

 

4.1 Adjustment upon Subdivisions or Combinations.
If the Company at any time after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization,
scheme, arrangement or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in
effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately
increased. If the Company at any time after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization,
scheme, arrangement or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in
effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately
decreased. Any adjustment under this Section 4.1 shall become effective at the close of business on the date the subdivision or
combination becomes effective. The Company shall promptly notify Warrant Agent of any such adjustment and give specific instructions
to Warrant Agent with respect to any adjustments to the warrant register.

 

     

     

    

  

4.2 Adjustment for Other Distributions.
In the event the Company shall fix a record date for the making of a dividend or distribution to all holders of Common Stock of
any evidences of indebtedness or assets or subscription rights, options or warrants (excluding those referred to in Section 4.1
or other dividends paid out of retained earnings), then in each such case the Holder will, upon the exercise of Warrants, be entitled
to receive, in addition to the number of Warrant Shares issuable thereupon, and without payment of any additional consideration
therefor, the amount of such dividend or distribution, as applicable, which such Holder would have held on the date of such exercise
had such Holder been the holder of record of such Warrant Shares as of the date on which holders of Common Stock became entitled
to receive such dividend or distribution. Such adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

 

     

     

    

  

4.3. Reclassification, Consolidation, Purchase, Combination,
Sale or Conveyance. If, at any time while the Warrants are outstanding, (i) the Company, directly or indirectly, in one or
more related transactions effects any merger or consolidation of the Company with or into another person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another person) is completed pursuant to which holders of Common 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 (not including any Common Stock held by the other person or other persons making or party to, or associated
or affiliated with the other persons making, such purchase offer, tender offer or exchange offer), (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
or scheme of arrangement) with another person whereby such other person acquires more than 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated or
affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination) (each
a “Fundamental Transaction”), then, upon any subsequent exercise of a Warrant, each 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 (without regard to any limitation in Section 3.3.10 on the exercise of the Warrants), the same amount and
kind of securities, cash or property, if any, 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 each Warrant is exercisable immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 3.3.10 on the exercise of the Warrants). 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 that such Holder receives upon any exercise of each 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”)
and for which stockholders received any equity securities of the Successor Entity and for which stockholders received any equity
securities of the Successor Entity, to assume in writing all of the obligations of the Company under this Warrant Agreement in
accordance with the provisions of this Section 4.3 pursuant to written agreements and shall, upon the written request of such Holder,
deliver to such Holder in exchange for the applicable Warrants created by this Warrant Agreement a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to the Warrants which are exercisable for a corresponding
number of shares of capital stock of such Successor Entity (or its parent entity), if any, plus any Alternate Consideration, receivable
as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which the Warrants are exercisable
immediately prior to such Fundamental Transaction, and with an exercise price which applies the Exercise Price hereunder to such
shares of capital stock, if any, plus any Alternate Consideration (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 plus Alternative consideration
after that Fundamental Transaction for the purpose of protecting the economic value of such Warrant immediately prior to the consummation
of such Fundamental Transaction). Upon the occurrence of any such Fundamental Transaction the Successor Entity shall succeed to,
and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant Agreement
and the Warrants 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 Agreement and the Warrants with
the same effect as if such Successor Entity had been named as the Company herein and therein.

 

     

     

    

  

The Company shall instruct the Warrant Agent
in writing to mail by first class mail, postage prepaid, to each Holder, written notice of the execution of any such amendment,
supplement or agreement with the Successor Entity. Any supplemented or amended agreement entered into by the successor corporation
or transferee shall provide for adjustments, which shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 4.3. The Warrant Agent shall have no duty, responsibility or obligation to determine the correctness of any
provisions contained in such agreement or such notice, including but not limited to any provisions relating either to the kind
or amount of securities or other property receivable upon exercise of warrants or with respect to the method employed and provided
therein for any adjustments, and shall be entitled to rely conclusively for all purposes upon the provisions contained in any such
agreement. The provisions of this Section 4.3 shall similarly apply to successive reclassifications, changes, consolidations, mergers,
sales and conveyances of the kind described above.

 

4.4. [Reserved].

 

4.5 Other Events. If any event occurs
of the type contemplated by the provisions of Section 4.1 or 4.2 but not expressly provided for by such provisions (including,
without limitation, the granting of stock appreciation rights, Adjustment Rights, phantom stock rights or other rights with equity
features to all holders of Common Stock for no consideration), then the Company's Board of Directors will, at its discretion and
in good faith, make an adjustment in the Exercise Price and the number of Warrant Shares or designate such additional consideration
to be deemed issuable upon exercise of a Warrant, so as to protect the rights of the registered Holder. No adjustment to the Exercise
Price will be made pursuant to more than one sub-section of this Section 4 in connection with a single issuance.

 

4.6. Notices of Changes in Warrant.
Upon every adjustment of the Exercise Price or the number of Warrant Shares issuable upon exercise of a Warrant, the Company shall
give written notice thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from such adjustment and
the increase or decrease, if any, in the number of Warrant Shares purchasable at such price upon the exercise of a Warrant, setting
forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of
any event specified in Sections 4.1 or 4.2, then, in any such event, the Company shall give written notice to each Holder, at the
last address set forth for such holder in the Warrant Register, as of the record date or the effective date of the event. Failure
to give such notice, or any defect therein, shall not affect the legality or validity of such event. The Warrant Agent shall be
entitled to rely conclusively on, and shall be fully protected in relying on, any certificate, notice or instructions provided
by the Company with respect to any adjustment of the Exercise Price or the number of shares issuable upon exercise of a Warrant,
or any related matter, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in
accordance with any such certificate, notice or instructions or pursuant to this Warrant Agreement. The Warrant Agent shall not
be deemed to have knowledge of any such adjustment unless and until it shall have received written notice thereof from the Company.

 

5. Restrictive Legends; Fractional Warrants.

 

In the event that a Warrant Certificate surrendered
for transfer bears a restrictive legend, the Warrant Agent shall not register that transfer until the Warrant Agent has received
an opinion of counsel for the Company stating that such transfer may be made and indicating whether the Warrants must also bear
a restrictive legend upon that transfer. The Warrant Agent shall not be required to effect any registration of transfer or exchange
which will result in the transfer of or delivery of a Warrant Certificate for a fraction of a Warrant.

 

     

     

    

  

 6. [RESERVED].

 

7. Other Provisions Relating to Rights of
Holders of Warrants.

 

7.1. No Rights as Stockholder. Except
as otherwise specifically provided herein, a Holder, solely in its capacity as a holder of Warrants, shall not be entitled to vote
or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this
Warrant Agreement be construed to confer upon a Holder, solely in its capacity as the registered holder of Warrants, any of the
rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of share capital, consolidation, merger, conveyance or otherwise), receive notice of meetings,
receive dividends or subscription rights or rights to participate in new issues of shares, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of Warrants.

 

7.2. Reservation of Common Stock. The
Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will
be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant Agreement.

 

8. Concerning the Warrant Agent and Other
Matters.

 

8.1. Any instructions given to the Warrant
Agent orally, as permitted by any provision of this Warrant Agreement, shall be confirmed in writing by the Company as soon as
practicable. The Warrant Agent shall not be liable or responsible and shall be fully authorized and protected for acting, or failing
to act, in accordance with any oral instructions which do not conform with the written confirmation received in accordance with
this Section 8.1.

 

8.2. (a) Whether or not any Warrants are exercised,
for the Warrant Agent’s services as agent for the Company hereunder, the Company shall pay to the Warrant Agent such fees
as may be separately agreed between the Company and Warrant Agent and the Warrant Agent’s out of pocket expenses in connection
with this Warrant Agreement, including, without limitation, the fees and expenses of the Warrant Agent’s counsel. While the
Warrant Agent endeavors to maintain out-of-pocket charges (both internal and external) at competitive rates, these charges may
not reflect actual out-of-pocket costs, and may include handling charges to cover internal processing and use of the Warrant Agent’s
billing systems.

 

(b) All amounts owed by the Company to the
Warrant Agent under this Warrant Agreement are due within 30 days of the invoice date. Delinquent payments are subject to a late
payment charge of one and one-half percent (1.5%) per month commencing 45 days from the invoice date. The Company agrees to reimburse
the Warrant Agent for any attorney’s fees and any other costs associated with collecting delinquent payments.

 

(c) No provision of this Warrant Agreement
shall require Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties under this Warrant Agreement or in the exercise of its rights.

 

8.3 As agent for the Company hereunder
the Warrant Agent:

 

(a) shall have no duties
or obligations other than those specifically set forth herein or as may subsequently be agreed to in writing by the Warrant Agent
and the Company;

 

(b) shall be regarded as
making no representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of the Warrants
or any Warrant Shares;

 

(c) shall not be obligated
to take any legal action hereunder; if, however, the Warrant Agent determines to take any legal action hereunder, and where the
taking of such action might, in its judgment, subject or expose it to any expense or liability it shall not be required to act
unless it has been furnished with an indemnity reasonably satisfactory to it;

 

     

     

    

  

(d) may rely on and
shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter,
telegram, telex, facsimile transmission or other document or security delivered to the Warrant Agent and believed by it to be genuine
and to have been signed by the proper party or parties;

  

(e) shall not be liable
or responsible for any recital or statement contained in the Registration Statement or any other documents relating thereto;

 

(f) shall not be liable
or responsible for any failure on the part of the Company to comply with any of its covenants and obligations relating to the Warrants,
including without limitation obligations under applicable securities laws;

 

(g) may rely on and shall
be fully authorized and protected in acting or failing to act upon the written, telephonic or oral instructions with respect to
any matter relating to its duties as Warrant Agent covered by this Warrant Agreement (or supplementing or qualifying any such actions)
of officers of the Company, and is hereby authorized and directed to accept instructions with respect to the performance of its
duties hereunder from the Company or counsel to the Company, and may apply to the Company, for advice or instructions in connection
with the Warrant Agent’s duties hereunder, and the Warrant Agent shall not be liable for any delay in acting while waiting
for those instructions; any applications by the Warrant Agent for written instructions from the Company may, at the option of the
Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under this Warrant Agreement and the
date on or after which such action shall be taken or such omission shall be effective; the Warrant Agent shall not be liable for
any action taken by, or omission of, the Warrant Agent in accordance with a proposal included in such application on or after the
date specified in such application (which date shall not be less than five business days after the date such application is sent
to the Company, unless the Company shall have consented in writing to any earlier date) unless prior to taking any such action,
the Warrant Agent shall have received written instructions in response to such application specifying the action to be taken or
omitted;

 

(h) may consult with counsel
satisfactory to the Warrant Agent, including its in-house counsel, and the advice of such counsel shall be full and complete authorization
and protection in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance with the advice
of such counsel;

 

(i) may perform any of its
duties hereunder either directly or by or through nominees, correspondents, designees, or subagents, and it shall not be liable
or responsible for any misconduct or negligence on the part of any nominee, correspondent, designee, or subagent appointed with
reasonable care by it in connection with this Warrant Agreement;

 

(j) is not authorized, and
shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person and

 

(k) shall not be required
hereunder to comply with the laws or regulations of any country other than the United States of America or any political subdivision
thereof.

 

8.4. (a) In the absence of gross negligence
or willful or illegal misconduct on its part, the Warrant Agent shall not be liable for any action taken, suffered, or omitted
by it or for any error of judgment made by it in the performance of its duties under this Warrant Agreement. Anything in this Warrant
Agreement to the contrary notwithstanding, in no event shall Warrant Agent be liable for special, indirect, incidental, consequential
or punitive losses or damages of any kind whatsoever (including but not limited to lost profits), even if the Warrant Agent has
been advised of the possibility of such losses or damages and regardless of the form of action. Any liability of the Warrant Agent
will be limited in the aggregate to the amount of fees paid by the Company hereunder. The Warrant Agent shall not be liable for
any failures, delays or losses, arising directly or indirectly out of conditions beyond its reasonable control including, but not
limited to, acts of government, exchange or market ruling, suspension of trading, work stoppages or labor disputes, fires, civil
disobedience, riots, rebellions, storms, electrical or mechanical failure, computer hardware or software failure, communications
facilities failures including telephone failure, war, terrorism, insurrection, earthquakes, floods, acts of God or similar occurrences.

 

     

     

    

  

(b) In the event any question or dispute
arises with respect to the proper interpretation of the Warrants or the Warrant Agent’s duties under this Warrant Agreement
or the rights of the Company or of any Holder, the Warrant Agent shall not be required to act and shall not be held liable or responsible
for its refusal to act until the question or dispute has been judicially settled (and, if appropriate, it may file a suit in interpleader
or for a declaratory judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on all
persons interested in the matter which is no longer subject to review or appeal, or settled by a written document in form and substance
satisfactory to Warrant Agent and executed by the Company and each such Holder. In addition, the Warrant Agent may require for
such purpose, but shall not be obligated to require, the execution of such written settlement by all the Holders and all other
persons that may have an interest in the settlement.

  

8.5. The Company covenants to indemnify the
Warrant Agent and hold it harmless from and against any loss, liability, claim or expense (“Loss”) arising out
of or in connection with the Warrant Agent’s duties under this Warrant Agreement, including the costs and expenses of defending
itself against any Loss, unless such Loss shall have been determined by a court of competent jurisdiction to be a result of the
Warrant Agent’s gross negligence or willful misconduct.

 

8.6. Unless terminated earlier by the parties
hereto, this Agreement shall terminate 90 days after the earlier of the Expiration Date and the date on which no Warrants remain
outstanding (the “Termination Date”). On the business day following the Termination Date, the Agent shall deliver
to the Company any entitlements, if any, held by the Warrant Agent under this Warrant Agreement. The Agent’s right to be
reimbursed for fees, charges and out-of-pocket expenses as provided in this Section 8 shall survive the termination of this Warrant
Agreement.

 

8.7. If any provision of this Warrant Agreement
shall be held illegal, invalid, or unenforceable by any court, this Warrant Agreement shall be construed and enforced as if such
provision had not been contained herein and shall be deemed an Agreement among the parties to it to the full extent permitted by
applicable law.

 

8.8. The Company represents and warrants that
(a) it is duly incorporated and validly existing under the laws of its jurisdiction of incorporation, (b) the offer and sale of
the Warrants and the execution, delivery and performance of all transactions contemplated thereby (including this Warrant Agreement)
have been duly authorized by all necessary corporate action and will not result in a breach of or constitute a default under the
articles of association, bylaws or any similar document of the Company or any indenture, agreement or instrument to which it is
a party or is bound, (c) this Warrant Agreement has been duly executed and delivered by the Company and constitutes the legal,
valid, binding and enforceable obligation of the Company, (d) the Warrants will comply in all material respects with all applicable
requirements of law and (e) to the best of its knowledge, there is no litigation pending or threatened as of the date hereof in
connection with the offering of the Warrants.

 

8.9. In the event of inconsistency between
this Warrant Agreement and the descriptions in the Registration Statement, as they may from time to time be amended, the terms
of this Warrant Agreement shall control.

 

8.10. Set forth in Annex C hereto is
a list of the names and specimen signatures of the persons authorized to act for the Company under this Warrant Agreement (the
“Authorized Representatives”). The Company shall, from time to time, certify to you the names and signatures
of any other persons authorized to act for the Company under this Warrant Agreement.

 

8.11.
Except as expressly set forth elsewhere in this Warrant Agreement, all notices, instructions and communications under this Agreement
shall be in writing, shall be effective upon receipt and shall be addressed, if to the Company, to its address set forth beneath
its signature to this Agreement, or, if to the Warrant Agent, to VStock Transfer, LLC 18
Lafayette Place, Woodmere, New York 11598, or to such other address of which a party hereto has notified the other party.

 

8.12. (a) This Warrant Agreement shall be governed
by and construed in accordance with the laws of the State of New York. All actions and proceedings relating to or arising from,
directly or indirectly, this Warrant Agreement may be litigated in courts located within the Borough of Manhattan in the City and
State of New York. The Company hereby submits to the personal jurisdiction of such courts and consents that any service of process
may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for
notices hereunder. Each of the parties hereto hereby waives the right to a trial by jury in any action or proceeding arising out
of or relating to this Warrant Agreement.

 

     

     

    

  

(b) This Warrant Agreement shall inure to the
benefit of and be binding upon the successors and assigns of the parties hereto. This Warrant Agreement may not be assigned, or
otherwise transferred, in whole or in part, by either party without the prior written consent of the other party, which the other
party will not unreasonably withhold, condition or delay; except that (i) consent is not required for an assignment or delegation
of duties by Warrant Agent to any affiliate of Warrant Agent and (ii) any reorganization, merger, consolidation, sale of assets
or other form of business combination by Warrant Agent or the Company shall not be deemed to constitute an assignment of this Warrant
Agreement.

 

(c) No provision of this Warrant Agreement
may be amended, modified or waived, except in a written document signed by both parties. The Company and the Warrant Agent may
amend or supplement this Warrant Agreement without the consent of any Holder for the purpose of curing any ambiguity, or curing,
correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect to
matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties determine,
in good faith, shall not adversely affect the interest of the Holders.  All other amendments and supplements shall require
the vote or written consent of Holders of at least 50.1% of the then outstanding Warrants, provided that adjustments may be made
to the Warrant terms and rights in accordance with Section 4 without the consent of the Holders.

 

8.13 Payment of Taxes. The Company will
from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the
issuance or delivery of Warrant Shares upon the exercise of Warrants, but the Company may require the Holders to pay any transfer
taxes in respect of the Warrants or such shares. The Warrant Agent may refrain from registering any transfer of Warrants or any
delivery of any Warrant Shares unless or until the persons requesting the registration or issuance shall have paid to the Warrant
Agent for the account of the Company the amount of such tax or charge, if any, or shall have established to the reasonable satisfaction
of the Company and the Warrant Agent that such tax or charge, if any, has been paid. 

  

8.14 Resignation of Warrant Agent.

 

8.14.1. Appointment of Successor Warrant
Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further
duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company, or such shorter period
of time agreed to by the Company. The Company may terminate the services of the Warrant Agent, or any successor Warrant Agent,
after giving thirty (30) days’ notice in writing to the Warrant Agent or successor Warrant Agent, or such shorter period
of time as agreed. If the office of the Warrant Agent becomes vacant by resignation, termination or incapacity to act or otherwise,
the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make
such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity by the Warrant
Agent, then the Warrant Agent or any Holder may apply to any court of competent jurisdiction for the appointment of a successor
Warrant Agent at the Company’s cost. Pending appointment of a successor to such Warrant Agent, either by the Company or by
such a court, the duties of the Warrant Agent shall be carried out by the Company. Any successor Warrant Agent (but not including
the initial Warrant Agent), whether appointed by the Company or by such court, shall be a person organized and existing under the
laws of any state of the United States of America, in good standing, and authorized under such laws to exercise corporate trust
powers and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent
shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with
like effect as if originally named as Warrant Agent hereunder, without any further act or deed, and except for executing and delivering
documents as provided in the sentence that follows, the predecessor Warrant Agent shall have no further duties, obligations, responsibilities
or liabilities hereunder, but shall be entitled to all rights that survive the termination of this Warrant Agreement and the resignation
or removal of the Warrant Agent, including but not limited to its right to indemnity hereunder. If for any reason it becomes necessary
or appropriate or at the request of the Company, the predecessor Warrant Agent shall execute and deliver, at the expense of the
Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant
Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any
and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such
authority, powers, rights, immunities, duties, and obligations.

 

     

     

    

  

8.14.2. Notice of Successor Warrant Agent.
In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent
and the transfer agent for the Common Stock not later than the effective date of any such appointment.

 

8.14.3. Merger or Consolidation of Warrant
Agent. Any person into which the Warrant Agent may be merged or converted or with which it may be consolidated or any person
resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party or any person succeeding to
the shareowner services business of the Warrant Agent or any successor Warrant Agent shall be the successor Warrant Agent under
this Warrant Agreement, without any further act or deed. For purposes of this Warrant Agreement, “person” shall mean
any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust or other entity, and
shall include any successor (by merger or otherwise) thereof or thereto.

 

9. Miscellaneous Provisions.

 

9.1. Persons Having Rights under this Warrant
Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the Holders
any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or
agreement hereof.

 

9.2. Examination of the Warrant Agreement.
A copy of this Warrant Agreement shall be available at all reasonable times at the office of the Warrant Agent designated for such
purpose for inspection by any Holder. Prior to such inspection, the Warrant Agent may require any such holder to provide reasonable
evidence of its interest in the Warrants.

 

9.3. Counterparts. This Warrant Agreement
may be executed in any number of original, facsimile or electronic counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

9.4. Effect of Headings. The Section
headings herein are for convenience only and are not part of this Warrant Agreement and shall not affect the interpretation thereof.

 

10. Certain Definitions.

 

As used herein, the following terms shall have
the following meanings:

 

(i) “Adjustment Right” means
any right granted with respect to any securities issued in connection with, or with respect to, any issuance, sale or delivery
(or deemed issuance, sale or delivery in accordance with Section 4) of Common Stock (other than rights of the type described in
Section 4.2 and 4.3 hereof) that could result in a decrease in the net consideration received by the Company in connection with,
or with respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or other similar
rights) but excluding anti-dilution and other similar rights (including pursuant to Section 4.4 of this Agreement).

 

(ii) “Approved Stock Plan”
means any employee benefit plan which has been approved by the board of directors of the Company prior to or subsequent to the
date hereof pursuant to which Common Stock and options to purchase Common Stock may be issued to any employee, consultant, officer
or director or other service provider for services provided to the Company in their capacity as such.

 

(iii) “Convertible Securities”
means any notes, rights, warrants or other securities (other than Options) that are at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, shares
of Common Stock.

 

     

     

    

  

(iv). “Excluded Securities”
means (1) Common Stock or options or other rights to purchase Common Stock or other awards issued to directors, officers, employees,
consultants or other service providers of the Company in their capacity as such pursuant to an Approved Stock Plan, provided that
(A) all such issuances (taking into account the Common Stock issuable upon exercise of such options) after the date hereof pursuant
to this clause (i) do not, in the aggregate, exceed more than 30% of the Common Stock issued and outstanding immediately prior
to the date hereof; provided however, that such issuances to consultants or other service providers do not, in each instance in
the aggregate, exceed more than 5% of the Common Stock issued and outstanding immediately prior to the date hereof, and (B) the
exercise price of any such options is not lowered, none of such options are amended to increase the number of shares issuable thereunder
in each case other than pursuant to the terms hereof (including any anti-dilution provisions contained therein) and none of the
terms or conditions of any such options are otherwise materially changed in any manner that adversely affects any of the holders
of Warrants; (2) Common Stock issued upon the conversion or exercise of Convertible Securities (other than options or other rights
to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) issued prior to the date
hereof, provided that the conversion price of any such Convertible Securities (other than options or other rights to purchase Common
Stock issued pursuant to an Approved Stock Plan that are covered by clause (1) above) is not lowered through the amendment or waiver
of such Convertible Security, none of such Convertible Securities (other than options or other rights to purchase Common Stock
issued pursuant to an Approved Stock Plan that are covered by clause (1) above) are amended to increase the number of shares issuable
thereunder and none of the terms or conditions of any such Convertible Securities (other than options or other rights to purchase
Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (1) above) are otherwise materially changed in
any manner that adversely affects any of the holders of Warrants; (3) Common Stock issuable upon exercise of the Warrants; and
(4) securities issuable in connection with strategic license agreements, other partnering arrangements or acquisitions or mergers
where the purchaser or acquirer of the securities in such issuance solely consists of (A) either (x) the actual participants in
such strategic license, strategic alliance, strategic partnership or other partnering arrangements, (y) the actual owners of such
assets or securities acquired in such acquisition or merger or (z) the stockholders, partners or members of the foregoing persons
or entities and (B) number or amount of securities issued to such person or entity by the Company shall not be disproportionate
(as determined in good faith by the Board of Directors of the Company) to either (x) the fair market value of such person’s
or entity’s actual contribution to such strategic alliance or strategic partnership or (y) the proportional ownership of
such assets or securities to be acquired by the Company, as applicable; provided, that, notwithstanding the foregoing, such purchaser
or acquirer of the securities in such issuance shall not include any person regularly engaged in the business of buying or selling
securities.

 

(v) [RESERVED].

 

(vi) “New Issuance Price”
means a price (calculated to the nearest cent) determined in accordance with the following formula:

 

EP2 = EP1* (A + B) ÷
(A + C).

 

For purposes of the foregoing formula, the
following definitions shall apply:

 

	 	(a)	“EP2” shall mean the adjusted Exercise Price;

 

	 	(b)	“EP1” shall mean the Exercise Price in effect immediately prior to such issuance of Common Stock;

 

	 	(c)	“A” shall mean the number of shares of Common Stock outstanding immediately prior to such issue of additional Common Stock including the issuance, sale or delivery of Common Stock owned or held by or for the account of the Company, (treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately prior to such issue or upon conversion or exchange of Convertible Securities outstanding (assuming exercise of any outstanding Options therefor) immediately prior to such issue);  

 

	 	(d)	“B” shall mean the number of shares of Common Stock that would have been issued if such additional shares of Common Stock had been issued at an Exercise Price equal to EP1 (determined by dividing the aggregate consideration received by the Company in respect of such issue by EP1); and

 

	 	(e)	“C” shall mean the number of such additional shares of Common Stock issued in such transaction.

 

     

     

    

  

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

 

(viii) Reserved.

 

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

 

(x) “Trading Market” means
NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange.

 

(xi) “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 L.P. (based on a Trading Day
from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) the volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock are not then listed or quoted
for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the OTCQB maintained by OTC Markets
Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per
share of Common Stock so reported, or (d) in all other cases, the fair market value of the Common Stock as determined by an independent
appraiser selected in good faith by the Company, the fees and expenses of which shall be paid by the Company.

 

     

     

    

  

IN WITNESS WHEREOF, this Warrant Agent Agreement
has been duly executed by the parties hereto as of the day and year first above written.

 

	 	AYTU BIOSCIENCE INC.
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	Address for notices:
	 	Aytu Bioscience, Inc.
	 	373 Inverness Parkway, Suite 206
	 	Englewood, CA 80112
	 	Attention:
	 	Telephone:
	 	Facsimile:
	 	E-mail:
	 	 	 
	 	VStock Transfer, LLC
	 	As Warrant Agent
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

Annex A Form of Warrant Certificates

Annex B Election to Purchase

Annex C Authorized Representatives

 

     

     

    

  

ANNEX A

 

[TO
BE INCLUDED IN THE GLOBAL CERTIFICATE]

 

[Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to issuer or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name
of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.]

 

AYTU BIOSCIENCE INC.

WARRANT CERTIFICATE

NOT EXERCISABLE AFTER ______, 20__

 

This certifies that the
person whose name and address appears below, or registered assigns, is the registered owner of the number of Warrants set forth
below. Each Warrant entitles its registered holder to purchase from Aytu Bioscience Inc., a company incorporated under the laws
of the State of Delaware (the “Company”), at any time prior to 5:00 P.M. (New York City time) on ________, 20__,
one share of common stock, par value $0.0001 per share, of the Company (each, a “Warrant Share” and collectively,
the “Warrant Shares”), at an exercise price of $___ per share, subject to possible adjustments as provided in
the Warrant Agreement (as defined below).

 

This Warrant Certificate,
with or without other Warrant Certificates, upon surrender at the designated office of the Warrant Agent, may be exchanged for
another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant
Certificates surrendered. A transfer of the Warrants evidenced hereby may be registered upon surrender of this Warrant Certificate
at the designated office of the Warrant Agent by the registered holder in person or by a duly authorized attorney, properly endorsed
or accompanied by proper instruments of transfer, a signature guarantee, and such other and further documentation as the Warrant
Agent may reasonably request and duly stamped as may be required by the laws of the State of New York and of the United States
of America.

 

The terms and conditions
of the Warrants and the rights and obligations of the holder of this Warrant Certificate are set forth in the Warrant Agent Agreement
dated as of _______, 2016 (the “Warrant Agreement”) between the Company and VStock Transfer, LLC (the “Warrant
Agent”). A copy of the Warrant Agreement is available for inspection during business hours at the office of the Warrant
Agent.

 

This Warrant Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by an authorized signatory of the Warrant
Agent.

 

WITNESS the facsimile signature of a proper
officer of the Company.

 

	 	AYTU BIOSCIENCE INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	Dated: ______, 2016
	Countersigned:
	 
	VStock Transfer, LLC,
	as Warrant Agent

 

	By:	 	 
	Name:	 
	Title:	 

 

PLEASE DETACH HERE

——————————————————————————————————————

 

Certificate No.:_________ Number of Warrants:__________

 

WARRANT CUSIP NO.: ___________

  

	 	AYTU BIOSCIENCE INC.
	 	 
	[Name & Address of Holder]	_______________, Warrant

Agent
	 	 
	 	By mail:
	 	 
	 	_____________
	 	 
	 	By hand or overnight courier: 
	 	 
	 	_____________

 

     

     

    

  

ANNEX B

 

[Form of Election to Purchase]

 

(To Be Executed Upon Exercise Of Warrants not
evidenced by a Global Certificate)

 

The undersigned hereby irrevocably elects to
exercise the right, represented by Warrants evidenced by this Warrant Certificate, to receive                 
Warrant Shares and herewith tenders payment for such Warrant Shares to the order of ___________, in the amount of $             
in accordance with the terms hereof.

 

OR

 

[In cases where cashless exercise is permitted
under the Warrant Agreement] — The undersigned hereby irrevocably elects to exercise the right, represented by Warrants evidenced
by this Warrant Certificate, to receive                Warrant
Shares (before giving effect to the cashless exercise provisions) and herewith agrees to make payment therefor pursuant to the
cashless exercise provisions of the Warrant Agreement, all on the terms and the conditions specified in the Warrant Agent Agreement.

 

The undersigned requests that a certificate
for such Warrant Shares be registered in the name of                     ,
whose address is                     
and that such certificate be delivered to                     ,
whose address is                                         .
If the number of Warrants being exercised hereby is less than all the Warrants evidenced by this Warrant Certificate, the undersigned
requests that a new Warrant Certificate representing the remaining unexercised Warrants be registered in the name of                                         ,
whose address is                                         ,
and that such Warrant Certificate be delivered to                whose
address is                                         .

 

	 	 	Signature
	 	 	 
	Date:	 	 
	 	 	 
	 	 	Signature Guaranteed

 

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Warrant Agent, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Warrant Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

     

     

    

  

ANNEX C

 

AUTHORIZED REPRESENTATIVES

 

	Name	 	Title	 	Signature
	 Zvi Ben David	 	Chief Financial Officer	 	 
	Ronen Raviv	 	ControllerExhibit 10.1

 

OPTION AGREEMENT

 

THIS OPTION AGREEMENT
(this “Agreement”) is entered into by and between CLEAR CREEK COUNTY DEVELOPMENT COMPANY, LLC, a Colorado
Limited Liability Company (“Clear Creek”), and GOLD MOUNTAIN DEVELOPMENT, LLC, AND NEVADA GOLD & CASINOS, INC.,
(hereinafter “Nevada Gold”), effective on the date when last executed by Clear Creek or Nevada Gold, pursuant to Section
19 (the “Effective Date”).

 

RECITAL

 

A. Nevada Gold owns certain real property located in Gilpin County, State of Colorado, consisting of approximately +/- 260
acres, more particularly described on Exhibit A attached hereto and incorporated herein by this reference, and any and all
other real property interests/entitlements/rights owned by Nevada Gold in the County of Gilpin, Colorado, Sixth Principal Meridian,
Township 3, Ranges 72 and 73 West, Sections 17 and 18 and Township 3, Range 73 West, Section 13, and any other rights, entitlements
and appurtenances to such property (collectively, the “Property”).

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the promises, mutual covenants and agreements hereinafter contained, the sufficiency of which is hereby acknowledged,
the parties agree as follows:

 

1. Option and Term.
In consideration of Clear Creek paying Nevada Gold an amount equal to one-half (1/2) of Nevada Gold’s annual property tax
liability on the Property for the year 2012, which is due by April 30, 2013, within Thirty (30) days of the Effective date of this
Agreement, Nevada Gold hereby gives and grants to Clear Creek the sole and exclusive option to purchase the Property on the terms
and conditions described herein (the “Option”), for a period of one (1) year, from the Effective Date. Within Thirty
(30) days prior to the expiration of the first one (1) year Option, Clear Creek may extend the Option for an additional one (1)
year, (to two (2) years from the Effective Date) by paying to Nevada Gold an amount equal to one-half (1/2) of Nevada Gold’s
annual property tax liability on the Property for the year 2013. Within Thirty (30) days prior to the expiration of the second
(2nd) year of the Option, Clear Creek may extend the Option for a final one (1) year period, (to three (3) years from
the Effective Date) by paying Nevada Gold an amount equal to one-half (1/2) of Nevada Gold’s annual property tax liability
on the Property for the year 2014. All money paid by Clear Creek hereunder shall be the sole and exclusive property of Nevada Gold
and shall not be refundable to Clear Creek under any circumstance. At anytime during this Agreement and the option terms hereunder,
and on Clear Creek’s election to purchase the Property, by notice in writing to Nevada Gold, Nevada Gold hereby agrees to
sell and convey to Clear Creek and Clear Creek hereby agrees to purchase the Property, free and clear of all deeds of trust, mortgages,
taxes and then due special assessments whether assessed or not, security interests, liens, encumbrances, liabilities, obligations,
rights, and third-party interests whatsoever, except as hereinafter specifically mentioned.

 

2.Purchase Price.
The purchase price for the Property (the “Purchase Price”) shall be calculated on the day of closing of the transaction
contemplated by this Agreement, and shall start, on the date of full execution of this Agreement, at One Million One Hundred Thousand
Dollars (US $1,100,000.00) and shall thereafter increase each and every day that this Agreement is in effect, by One Hundred and
Eighteen Dollars (US $118.00). [For example and illustration purposes only, the following example is provided for calculating the
Purchase Price: if the purchase transaction contemplated by this Agreement were to close on the Three Hundred and Sixty-First (361st)
day after full execution of this Agreement, the purchase price for the Property would be One Million, One Hundred Forty-Two Thousand,
Five Hundred and Ninety-Eight Dollars (US $1,142,598.00)]. The Purchase Price shall be paid, subject to any adjustments described
in Section 9 herein, in certified funds at closing.

 

     

     

    

 

3.Title Insurance.
Within Ninety (90) days after the Effective Date of this Agreement, Clear Creek shall obtain a current commitment for a title
insurance policy in an amount equal to the purchase price, together with copies of all documents listed as exceptions and/or requirements
therein, all applicable tax, judgment and assessment searches and a current certificate of taxes due, and also deleting standard
exceptions 1, 2, 3 and 4 of Schedule B on ALTA Owners Policy Form 10-17-1992 (the “Commitment”). After Closing, an
owner’s title insurance policy consistent with the Commitment and Sections 5 and 6 herein may be delivered to Clear
Creek and Clear Creek shall pay the premium for such policy.

 

4.Survey.
At anytime during the term of this Agreement, Clear Creek, at its expense and sole option, may obtain a current boundary and improvement
survey of the Property, with permanent corner pins in place, certified to Clear Creek, Nevada Gold, and the Title Company, prepared
from an “on the ground” inspection by a registered engineer or licensed land surveyor in the State of Colorado showing
thereon the correct legal metes and bounds description of the Property, its proper dimensions, any and all improvements, ditches,
waterways, flood plains, reservoirs, fence locations, easements, rights-of-way utilities and roadways upon, under or adjacent to
the Property (the “Survey”).

 

5.Title and
Survey Objections. Clear Creek shall have Ninety (90) days following the Title Insurance deadline stated above in which to
notify Nevada Gold in writing of any objections to any items identified in the Commitment or the Survey. Nevada Gold in its sole
discretion may agree to satisfy Clear Creek’s objections with regard to any objections caused by Nevada Gold.

 

6.Title to Property.
Subject to payment or tender as provided herein and upon compliance with the other terms and conditions hereof by Clear Creek,
Nevada Gold shall execute and deliver a good and sufficient special warranty deed to Clear Creek on the Closing date, conveying
the Property free and clear of all taxes (including transfer taxes) except the lien of real property taxes for the year of Closing
not yet due and payable the following year Nevada Gold shall also deliver to Clear Creek any bills of sale, assignments, transfers,
conveyances and other documents as reasonably requested by Clear Creek to fully vest Clear Creek with all appurtenances, hereditaments,
rights, entitlements and interests, including related personal property, if any, in connection with the Property or as contemplated
by this Agreement.

 

7.Closing. The
consummation of this Agreement and delivery of the deed for the Property (the “Closing”) shall occur in one (1) Closing.
The Closing shall occur on a date specified by mutual agreement between Clear Creek and Nevada Gold with notice to the Title Company.
The Closing shall occur in the offices of the Title Company at a time to be mutually agreed upon by Nevada Gold and Clear Creek.
Possession of the Property shall be delivered to Clear Creek at Closing, and the Property shall not be subject to any leases or
tenancies, except as herein expressly permitted. The following shall occur at Closing, each being a condition precedent to the
others and all being considered as occurring simultaneously:

 

a.Deed.
Nevada Gold shall execute, acknowledge and deliver to Clear Creek a special warranty deed conveying title to the Property in the
manner identified in Section  6 above. 

 

b.Settlement Statements.
Nevada Gold and/or Clear Creek, as the case may be, shall execute and, if required, acknowledge, and deliver to the appropriate
party Statements of Settlement.

 

c.Purchase Price.
Clear Creek shall pay such monies and sign such agreements and liens as are set forth in this Agreement and its Exhibits.

 

    2 

     

    

 

d.FIRPTA Affidavit.
Nevada Gold shall execute, acknowledge and deliver to Clear Creek an affidavit stating that Nevada Gold is not a “foreign
person” within the meaning of Section 1445, et seq., of the Internal Revenue Code of 1986, as amended, or any
regulations promulgated thereunder.

 

e. State Affidavit.
Nevada Gold, Clear Creek, or both, as the case may be, shall execute and, if required, acknowledge, and deliver to the appropriate
party any real estate transfer affidavit which may be required under the laws of the State of Colorado.

 

f.Other Documents.
Each party shall deliver to the other such agreements, assignments, conveyances, instruments, documents, certificates and the like
as may be required pursuant to this Agreement or as may be necessary or helpful to carry out its obligations under this Agreement
with respect to Closing.

 

8. Intentionally Omitted.

 

9.Prorations
and Closing Costs. The following adjustments shall be made to the Purchase Price:

 

a.Taxes. Real
property taxes for the year of Closing shall be apportioned to the date of Closing based upon the most recent levy and assessment.
Such apportionment shall be a final settlement between the parties.

 

b.Rents and Utilities.
Prepaid rents, water rents, sewer rents, interest on encumbrances, if any, and other similar items shall be apportioned to date
of Closing.

 

c.Transaction
Costs. Clear Creek shall pay the cost of recording the deed, the documentary fee, the premium for the owner’s and mortgagee’s
title insurance policies, and the cost of recording the deed of trust. Nevada Gold and Clear Creek shall equally split escrow fees.
Each party shall be responsible for payment of its own attorneys’ and brokers’ fees.

 

10.Inspection:

 

a.Inspection.
During all times that this Agreement is in effect, Clear Creek and its agents, employees and designees may enter upon the Property
at Clear Creek’s expense for the purpose of inspecting, making surveys, soils tests, water availability tests, environmental
audits, obtaining topographical information, conducting traffic studies, making demographic reports, erecting signs and for other
similar preliminary development work. Clear Creek agrees to hold Nevada Gold harmless from any claims which might be filed against
the Property or Nevada Gold by reason of the performance of any of the acts herein mentioned.

 

b.Feasibility.
Clear Creek and its agents, employees and designees may enter upon the Property at Clear Creek’s expense for the purpose
of (i) assessing the impact of current and future mineral extraction operations on or near the Property; and (ii) Clear Creek receiving,
with the full cooperation of Nevada Gold, preliminary approval from the appropriate governmental authorities having jurisdiction
over the Property for platting, annexation, reclamation, subdivision or rezoning of the Property, except that no approvals shall
be binding on Nevada Gold or the Property until after closing. Clear Creek agrees to hold Nevada Gold harmless from any claims
which might be filed against the Property or Nevada Gold by reason of the performance of any of the acts herein mentioned. Nevada
Gold hereby agrees to fully cooperate with Clear Creek’s efforts at resolving such issues, including, but not limited to,
negotiating and cooperating with governmental entities and regulators.

 

    3 

     

    

 

c.Delivery of
Reports. From the Effective Date and continuing for so long as this Agreement is in effect, Clear Creek shall deliver to Nevada
Gold, from time to time but in any event promptly upon receipt of same, without warranty or representation from Clear Creek and
without charge therefor, the results, both draft and final, and copies of any and all third-party inspections, studies, tests,
surveys, or other reports prepared for Clear Creek with respect to the Property.

 

d.Survival. The
provisions of this Section 10 shall survive the Closing and delivery of deed or termination of this Agreement.

 

11.Nevada Gold’s
Use of the Property Prior to Closing Date. From and after the Effective Date of this Agreement, Nevada Gold shall not grant
or convey any easement, lease, license, permit, lien or any other legal or beneficial interest in or to the Property without the
prior written consent of Clear Creek, nor shall Nevada Gold knowingly violate, or allow the violation of, any law, ordinance, rule
or regulation affecting the Property. Nevada Gold shall do or cause to be done all things reasonably within its control to preserve
intact and unimpaired any and all easements, grants, appurtenances, privileges and licenses in favor of or constituting any portion
of the Property to the extent known by Nevada Gold. Further, subject to Paragraph 1 of this Agreement, Nevada Gold agrees to pay,
as and when due, all payments on any liens or encumbrances presently affecting the Property and any and all taxes, assessments
and levies with respect to the Property through the date of Closing. Clear Creek shall not unreasonably interfere with Nevada Gold’s
operations during the term of this Agreement. From and after the Effective Date, Clear Creek, or its agents, shall be entitled
to go upon the Property at reasonable times for the purpose of evaluating the Property. Such evaluations shall be done at Clear
Creek's sole cost and expense, and Clear Creek shall in no way damage, destroy or harm the Property or any improvements thereon.
Clear Creek indemnifies and holds Nevada Gold harmless from and against any and all claims, demands, liens, damages, and expenses
arising from Clear Creek’s evaluation of the Property, and this indemnity shall survive the Closing or termination of this
Agreement.

 

12.Delivery
of Materials to Clear Creek: Agreements Affecting the Property. Nevada Gold agrees to provide to Clear Creek, at no expense
to Clear Creek, within Ninety (90) days after the Effective Date of this Agreement, copies or originals of any and all leases,
existing surveys, currently existing contracts relating to the operation and/or maintenance of the Property, engineering studies,
zoning information, soil investigations and reports, water and sewer studies, topographical maps, traffic studies, demographic
reports, information as to all prior uses, hazardous waste or substance and all other environmental matters, including any prior
environmental audits, platting and all other materials and documents that either are owned by Nevada Gold or are in Nevada Gold’s
possession or control and that concern the Property (the “Nevada Gold’s Due Diligence Materials”). At Closing,
Nevada Gold shall assign to Clear Creek all agreements affecting the Property which may be assignable and which Clear Creek desires
to continue in effect. If Clear Creek does not close on the Property, Clear Creek shall promptly return all Nevada Gold’s
Due Diligence Materials to Nevada Gold.

 

13.Risk of Loss.
The risk of loss or damage to the Property by fire or otherwise shall be assumed by Nevada Gold until Closing.

 

14.Condemnation.
If notice is received by Nevada Gold prior to Closing that any portion of the Property shall be taken in condemnation or pursuant
to the right of eminent domain, or if any such proceeding (judicial, administrative or otherwise) is commenced after the Effective
Date hereof, any award or proceeds received by Nevada Gold from such condemnation or right of eminent domain proceeding shall be
applied against, and reduce, the Purchase Price hereunder. If such proceeding has not been concluded as of the date of Closing,
there shall be no reductions in the Purchase Price and all amounts thereafter awarded relating to the Property shall belong to
Clear Creek

 

    4 

     

    

 

15.Nevada Gold’s
Warranties/Property Condition. Nevada Gold hereby represents, warrants, and agrees that on the date of Closing, except as may
be caused or created by Clear Creek:

 

a.Litigation.
There is no litigation pending or threatened which in any manner affects the Property, and Nevada Gold knows of no basis or grounds
for any claims or causes of action which could affect the Property in any manner.

 

b.Access.
To the best of Nevada Gold’s knowledge, no facts or conditions are contemplated or in existence which would result in termination
of full and free access to and from the Property.

 

c.Legal Compliance.
To the best of Nevada Gold’s knowledge, there are no violations of any law, code, ordinance, rule or regulation or insurance
policy affecting any portion of the Property or the use thereof. Nevada Gold shall make complete and good faith disclosure to Clear
Creek of Nevada Gold’s receipt of any notice of any violation or Nevada Gold’s discovery of any condition on any portion
of the Property constituting any such violation. All requirements known to Nevada Gold of governmental authorities regarding improvement
or use of the Property, or property adjacent to the Property, have been, or during the Inspection Period will be, disclosed to
Clear Creek.

 

d.Liens. All
bills for work done and materials furnished at the request of Nevada Gold with respect to the Property have been paid in full by
Nevada Gold or will be discharged and paid in full by Nevada Gold on or before the date of Closing.

 

e.Assessments.
Nevada Gold knows of no special assessments that have been made or levied against the Property, and to the best of Nevada Gold’s
knowledge, there are no public improvements which have been planned, commenced or completed which would result in a special assessment
against the Property.

 

f.Status and Authority.
Nevada Gold under the laws of the State of Colorado has the legal power and authority to own, sell, convey and transfer the Property.
The execution and delivery of, and the performance of all obligations under this Agreement by Nevada Gold, do not and shall not
require any consent or approval of any person and do not and shall not result in a breach of, or constitute a default under, any
indenture, loan or credit agreement, mortgage, deed of trust or other agreement to which Nevada Gold is a party or by which Nevada
Gold or the Property may be bound. Nevada Gold is not a “foreign person” within the meaning of Section 1445, et
seq., of the Internal Revenue Code of 1986, as amended, or any regulations promulgated thereunder.

 

g.Performance.
Nevada Gold shall have performed all of its obligations, covenants and agreements pursuant to this Agreement.

 

h.Environmental
Matters. Nevada Gold represents and warrants that it has done no handling, transportation, storage, treatment or usage of Hazardous
Material on the Property. The provisions of this Section shall survive Closing.

 

i.Moratoriums.
To the best of Nevada Gold’s knowledge, there are no current or imminent moratoriums or school capacity ordinances that would
impact on Clear Creek’s intended development of the Property.

 

    5 

     

    

 

j.Condemnation.
To the best of Nevada Gold’s knowledge, there are no current or imminent condemnation actions that could affect Clear Creek’s
intended development of the Property.

 

16.Brokers.
If any individual or entity shall assert a claim to a finder's fee or commission as a broker or a finder for the transfer of the
Property, then the party who is alleged to have retained such individual or entity shall defend, indemnify and hold harmless the
other party from and against any such claim and all costs, expenses, liabilities and damages incurred in connection with such claim
or any action or proceeding brought thereon.

 

17.Nevada Gold’s
Authority. On or prior to the date of Closing contemplated hereunder, Nevada Gold shall deliver to Clear Creek a certified
copy of resolutions adopted by Nevada Gold authorizing and adopting the execution, delivery and performance of this Agreement by
Nevada Gold.

 

18.Miscellaneous.

 

a.Survival.
The provisions of Sections and 15 of this Agreement shall survive termination of this Agreement or the Closing and delivery
of the deed to the Property and shall not be merged therein.

 

b.Assignment.
Clear Creek may assign the rights and obligations of this Agreement to an entity to be formed by Clear Creek and Maplewood Advisors
LLC. Any other assignment will require the consent of Nevada Gold in its sole discretion.

 

c.Amendment.
No amendment or modification of this Agreement shall be valid or binding unless reduced to writing and executed by the parties
hereto or their assigns.

 

d.Notices.
All notices required herein shall be in writing and delivered to the parties hereto, or mailed to the parties hereto by personal
delivery, recognized overnight courier or delivery services, or registered or certified mail, postage prepaid, return receipt requested,
at the addresses set forth below:

 

		If to Clear Creek:	Clear Creek County Development Company LLC

ATTN: Sean
W. Doyle

950 S. Cherry
Street, #1220

Denver, Colorado
80246

Phone: (303)
837-9171

Fax: (303)
379-2048

Email: sean@fitallc.com

 

		If to Nevada Gold:	Nevada Gold & Casinos, Inc.

ATTN:
Michael P. Shaunnessy, CEO

133 E.
Warm Springs Road, Suite 102

Las Vegas, Nevada 89119

Phone:
(720) 681-1000

Email:
mshaunnessy@nevadagold.com

  

Any such notice shall
be deemed effectively given and received at the time of delivery, if delivered personally or by an express mail service for which
a delivery receipt has been obtained, or five (5) days after the same is deposited in the United States mail, if mailed, provided
the sending party has a return receipt. Either party may designate a different address for the purpose of this Section by notice
given in accordance herewith.

 

    6 

     

    

 

e.Adequate Consideration.
Both parties agree that the covenants and promises contained herein are good and sufficient consideration for their respective
obligations required hereunder.

 

f.Further Assurances.
Each party hereto shall from time to time execute and deliver such further instruments as the other party or its counsel may reasonably
request to effectuate the intent of this Agreement.

 

g.Controlling
Law. The parties hereto expressly agree that the terms and conditions hereof, and subsequent performance hereunder, shall be
construed and controlled by the laws of the State of Colorado.

 

h.Legal Expenses.
In the event that either party takes legal action against the other in order to enforce the terms of this Agreement, the party
in whose favor final unappealable judgment is entered shall be entitled to recover from the other party any legal expenses incurred,
including reasonable costs and attorneys’ fees to be fixed by the court which shall render such judgment.

 

i.Interpretation.
Section headings used in this Agreement are for convenience of reference only and shall not affect the construction of any provision
of this Agreement. As used herein, the singular shall include the plural, and vice versa; and any gender shall be deemed to include
the masculine, feminine and neuter gender. Should any term or condition hereof be deemed void or unenforceable, the remaining provisions
of this Agreement shall remain in full force and effect. Each and every provision of this Agreement has been independently, separately
and freely negotiated by the parties as if this Agreement were drafted by all parties hereto. The parties, therefore, waive any
statutory or common law presumption which would serve to have this document construed in favor of, or against, either party.

 

j.Binding Effect.
The provisions hereof shall be binding upon and inure to the benefit of the heirs, successors, personal representatives and assigns
of the parties.

 

k.Waiver.
No exercise or waiver, in whole or in part, of any right or remedy provided for in this Agreement shall operate as a waiver of
any other right or remedy, except as otherwise provided herein. No delay on the part of any party in the exercise of any right
or remedy shall operate as a waiver thereof.

 

l.Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all together shall constitute
one and the same Agreement.

 

m.Facsimile Signatures.
Facsimile signatures hereafter shall be considered legal and binding with regard to this Agreement, including any written notices,
addenda and amendments.

 

n.Entire Agreement.
This Agreement and the Exhibits attached hereto embody the entire Agreement between the parties hereto and supersede any and all
prior agreements and understandings, written or oral, formal or informal.

 

o.Time of the
Essence. Time is of the essence of this Agreement, and Clear Creek and Nevada Gold hereby agree to perform each and every obligation
hereunder in a prompt and timely manner; provided, however, that if the date of the performance of any action or the giving of
any notice which is required hereunder, occurs on a Saturday, Sunday or legal holiday, the date for performance or giving of notice
shall be the next succeeding business day.

 

p.Recitals.
The Recitals set forth above are hereby made a binding and integral part of this Agreement.

 

    7 

     

    

 

19.Effective
Date of Agreement. The “Effective Date” of this Agreement referenced throughout this Agreement shall be the latest
date on which either of the parties has executed this Agreement; and the latest party executing this Agreement shall notify the
other of such execution within 24 hours thereof, either by written or oral communication. Clear Creek may not record in the County
records this Agreement or any other document related to the Option Agreement, except that simultaneously with closing and/or after
closing Clear Creek may record that which is necessary to complete the transaction.

 

20.As-Is Condition:
THE PARTIES HEREBY ACKNOWLEDGE AND AGREE AS FOLLOWS: (A) CLEAR CREEK’S PRINCIPAL, SEAN W. DOYLE, IS A SOPHISTICATED PURCHASER
WHO IS FAMILIAR WITH THIS TYPE OF PROPERTY; (B) EXCEPT AS MAY BE SPECIFICALLY SET FORTH IN THIS AGREEMENT, NEITHER NEVADA GOLD
NOR ANY OF ITS AGENTS, REPRESENTATIVES, OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, OR EMPLOYEES HAS MADE OR WILL MAKE ANY REPRESENTATIONS
OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY; AND (C) THE PROPERTY
IS BEING SOLD TO CLEAR CREEK IN ITS PRESENT "AS IS" CONDITION SUBJECT TO THE REPRESENTATIONS, WARRANTIES AND COVENANTS
OF NEVADA GOLD CONTAINED HEREIN. SUBJECT TO THE TERMS HEREOF, CLEAR CREEK WILL BE AFFORDED THE OPPORTUNITY TO MAKE ANY AND ALL
INSPECTIONS OF THE PROPERTY AND SUCH RELATED MATTERS AS CLEAR CREEK MAY REASONABLY DESIRE AND, ACCORDINGLY, CLEAR CREEK WILL RELY
SOLELY ON ITS OWN DUE DILIGENCE AND INVESTIGATIONS IN PURCHASING THE PROPERTY. IN THE EVENT OF ANY CONFLICT WITH ANY OTHER SECTION
OR PROVISION IN THIS AGREEMENT THIS PROVISION WILL SUPERSEDE ANY CONFLICTING OR INCONSISTENT PROVISION.

 

IN WITNESS WHEREOF,
the parties have executed this Option Agreement on the dates specified below.

 

	 	CLEAR CREEK COUNTY DEVELOPMENT COMPANY LLC
	 	a Colorado Limited Liability Company
	 	 	 
	 	By: 	 
	 	Name:  	                             
	 	Title: 	 
	 	Date: 	 
	 	 	 
	 	 	 
	 	GOLD MOUNTAIN DEVELOPMENT, LLC 
	 	And NEVADA GOLD & CASINOS, INC.
	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 
	 	Date:	 

 

    8

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