Document:

EXHIBIT 4.1

 

THIS NOTE AND THE SHARES OF COMMON STOCK
ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS.

 

CORMEDIX
INC.

Form of Senior Convertible Promissory Note

due ___________, 2013

 

	BRN No._______	 	$______________
	Dated: _____________, 2012	 	 

 

For value received,
CORMEDIX INC., a Delaware corporation (together with all of its current and/or future direct and/or indirect subsidiaries, collectively
the “Maker”), hereby promises to pay to the order of _______________________ (together with its successors
and representatives, the “Holder”), in accordance with the terms hereinafter provided, the principal
amount of ________________________ ($______________) (the “Principal”), together with interest thereon.
Pursuant to the Subscription Agreement (as defined in Section 2.1 hereof), the Maker has issued, is issuing or may
in the future issue separate senior convertible promissory notes in substantially the same form as this Note (the “Other
Notes” and collectively with this Note, the “Notes”) to separate purchasers (“Other
Holders” and collectively with the Holder, the “Holders”).

 

Except as otherwise
set forth herein, all payments under or pursuant to this Note shall be made in United States Dollars in immediately available funds
to the Holder at the address of the Holder designated by the Holder in the Subscription Agreement or at such other place or by
wire transfer of funds to the Holder’s account as the Holder may designate from time to time in writing to the Maker pursuant
thereto. The outstanding Principal of this Note shall be due and payable on ________, 2013 (the “Maturity Date”)
or at such earlier time as provided herein.

 

ARTICLE 1

 

		1.1	Definitions.
                                                                                                      Capitalized terms used herein
                                                                                                      and not defined shall have
                                                                                                      the meanings set forth in
                                                                                                      the Subscription Agreement.
                                                                                                      For the purposes hereof,
                                                                                                      the following terms shall
                                                                                                      have the following meanings:

 

“Affiliate”
means any Person directly or indirectly controlling, controlled by, or under direct or indirect common control with another Person.
A Person shall be deemed to be “controlled by” any other Person if such other Person possesses, directly or indirectly,
power (a) to vote ten percent (10%) or more of the securities (on a fully diluted basis) having ordinary voting power for the election
of directors or managing general partners; or (b) to direct or cause the direction of the management and policies of such Person
whether by contract or otherwise.

 

“Business Day”
means any day other than (a) a Saturday or Sunday and (b) any day on which banks are required or permitted to be closed in New
York, New York.

 

“Closing
Price” means, for any particular Trading Day, the price determined by the first of the following clauses which applies:
(i) the last trading price per share of the Common Stock on such date on the principal Trading Market on which the Common Stock
is then listed or eligible for quotation, or if there is no such price on such date, then the last trading price on such Trading
Market on the nearest Trading Day preceding such date, as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30
a.m. Eastern Time to 4:02 p.m. Eastern Time) or (ii) if the Common Stock is not then publicly traded or eligible for quotation
on a Trading Market, the fair market value of a share of Common Stock as determined by the Holder and reasonably acceptable to
the Maker.

 

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“Daily
VWAP” means, for any particular Trading Day, (i) the daily volume weighted average price of the Common Stock on such
date on the principal Trading Market on which the Common Stock is then listed or eligible for quotation, or if there is no such
price on such date, then the last daily volume weighted average price of the Common Stock on such Trading Market on the nearest
Trading Day preceding such date as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to
4:02 p.m. Eastern Time); (ii) if the Common Stock is not then listed or quoted on a Trading Market and if prices for the Common
Stock are then reported in the “Pink Sheets” published by the OTC Markets Group (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (iii)
in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good
faith by the Holder and reasonably acceptable to the Maker.

 

“Indebtedness”
means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments
and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, current swap agreements, interest
rate hedging agreements, interest rate swaps, or other financial products, (c) all capital lease obligations that exceed $100,000
in the aggregate in any fiscal year, (d) all obligations or liabilities secured by a lien or encumbrance on any asset of the Maker,
irrespective of whether such obligation or liability is assumed, (e) all obligations for the deferred purchase price of assets,
together with trade debt and other accounts payable that exceed $500,000 in the aggregate in any fiscal year, (f) all synthetic
leases, (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made,
discounted or sold with recourse) any of the foregoing obligations of any other person, (h) trade debt and (i) endorsements for
collection or deposit.

 

“Investment”
means, with respect to any Person, all investments in any other Person, whether by way of extension of credit, loan, advance, purchase
of stock or other ownership interest (other than ownership interests in such Person), bonds, notes, debentures or other securities,
or otherwise, and whether existing on the Issuance Date or thereafter made, but such term shall not include the cash surrender
value of life insurance policies on the lives of officers or employees, excluding amounts due from customers for services or products
delivered or sold in the ordinary course of business.

 

“Material
Adverse Effect” means any material adverse effect on the business, operations, properties, or financial condition
of the Maker and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability
of the Maker to perform any of its obligations under this Note or any of the Transaction Documents (as defined herein) in any material
respect.

 

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

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act of 1933, as amended, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Trading
Day” means (a) a day on which the Common Stock is traded on a Trading Market, or (b) if the Common Stock is not traded
on a Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation
Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided,
however, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading
Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other government action to close.

 

“Trading
Market” means the OTC Bulletin Board, the OTC Markets Group, Pink Sheets, LLC, the Nasdaq Capital Market, the Nasdaq
Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, or the New York Stock Exchange MKT, or any successor
thereto as the case may be.

 

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ARTICLE 2

 

2.1           Subscription
Agreement. This Note has been executed and delivered pursuant to the Subscription Agreement (the “Subscription
Agreement”) attached as Exhibit A to the Maker’s Confidential Private Placement Memorandum, dated
as of August 20, 2012 (the “Memorandum”).

 

2.2           Interest.
Beginning on the issuance date of this Note (the “Issuance Date”), the outstanding Principal of this
Note shall bear interest, in arrears, at a rate per annum equal to nine (9%), payable quarterly on September 30, December 31, March
31 and June 30 of each year (each, an “Interest Payment Date”) commencing December 31, 2012, or earlier
upon conversion, redemption or prepayment of this Note, pursuant hereto. Interest on this Note shall accrue commencing on the Issuance
Date, shall accrue daily at the Interest Rate on the then outstanding Principal and shall be computed on the basis of a 360-day
year of twelve (12) 30-day months. Furthermore, upon the occurrence of an Event of Default (as defined in Section 3.1
hereof), the Maker will pay interest to the Holder, payable on demand, on the then Principal and unpaid interest on the Note from
the date of the Event of Default until such Event of Default is cured at the rate of the lesser of eighteen percent (18%) and the
maximum applicable legal rate per annum.

 

2.3           Payment
of Principal; No Prepayment. The Principal hereof shall be paid in full on the Maturity Date or, if earlier, upon acceleration
or redemption of this Note in accordance with the terms hereof. Any amount of the Principal repaid hereunder may not be reborrowed.
Except as set forth in Section 5.1 and/or the Memorandum, the Maker may not prepay any portion of the Principal of
this Note without the express prior written consent of the Holder, which may be withheld in the Holder’s sole and absolute
discretion. Notwithstanding the above in this Section 2.3, at the Holder’s option, the Holder may elect to
receive Conversion Shares (as defined in Section 2.8 hereof) in lieu of cash on the Maturity Date by delivering a
written notice to the Maker at least five (5) Trading Days days prior to the Maturity Date pursuant to Section 4.1(a).
Any limitation on the Conversion of this Note described in Sections 4.4(a) and (b) below shall not apply with respect
to a conversion described in this Section 2.3.

 

2.4           Payment
on Non-Business Days. Whenever any payment to be made shall be due on a Saturday, Sunday or a public holiday under the laws
of the State of New York, such payment may be due on the next succeeding Business Day and such next succeeding day shall be included
in the calculation of the amount of accrued interest payable on such date.

 

2.5           Transfer.
This Note may be transferred, pledged, hypothecated, or sold, subject only to any limitations of federal and state securities laws,
or pledged, hypothecated or otherwise granted as security by the Holder.

 

2.6           Replacement.
Upon receipt of a duly executed, notarized written statement from the Holder with respect to the loss, theft or destruction of
this Note (or any replacement hereof), or, in the case of a mutilation of this Note, upon surrender and cancellation of such Note,
the Maker shall issue a new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated Note.

 

2.7           Senior
Status of Note. The obligations of the Maker under this Note (including, but not limited to, the repayment of the Principal
and the payment of accrued but unpaid interest) shall rank senior to all other Indebtedness of the Maker.

 

2.8           Registration
Rights. The Holder shall have registration rights with respect to the shares (the “Conversion Shares”)
of the Maker’s common stock, par value $0.001 per share (the “Common Stock”), issuable upon conversion
of this Note set forth in the Registration Rights Agreement by and between the Maker, the Holder and the Other Holders (the “Registration
Agreement”).

 

ARTICLE 3

 

3.1           Events
of Default. The occurrence of any of the following events shall be an “Event of Default” under this
Note:

 

(a)          any
default in the payment of (i) the Principal hereunder or under any Other Note when due, or (ii) interest on, or liquidated damages
in respect of, this Note or any Other Note, as and when the same shall become due and payable (whether on the Maturity Date or
by acceleration or otherwise);

 

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(b)          the
Maker shall fail to observe or perform any material covenant, condition or agreement not otherwise covered by liquidated damages
or similar penalty contained in this Note, all Other Notes, the Registration Agreement, the Subscription Agreement and the Warrants
(as defined in the Subscription Agreement), (collectively, the “Transaction Documents”), which failure
is not cured, if possible to cure, within thirty (30) Business Days after notice of such default sent by the Holder or by any Other
Holder, provided, however, that such failure shall only become effective as an Event of Default on the date that
the Maker receives written notice from Holders of at least 50.1% of the then outstanding Principal of the Notes agreeing to declare
an Event of Default;

 

(c)          the
failure of the Common Stock to be listed and/or eligible for quotation on at least one (1) Trading Market;

 

(d)          except
pursuant to Section 4.4 hereof, the failure by the Maker at any time to deliver Conversion Shares no later than five
(5) Business Days following the delivery by the Holder (or any Other Holder), of a Conversion Notice (as defined herein), which
Conversion Shares shall be unlegended if a legend shall not be required thereon by SEC rules and regulations, provided,
however, that such failure shall only become effective as an Event of Default on the date that the Maker receives written
notice from Holders of at least 50.1% of the then outstanding Principal of the Notes agreeing to declare an Event of Default;

 

(e)          at
any time following the Issuance Date, the Maker shall fail to have a sufficient number of shares of Common Stock authorized, reserved
and available for issuance to satisfy the potential conversion in full (disregarding for this purpose any and all limitations of
any kind on such conversion) of this Note and each Other Note and exercise of all the Warrants;

 

(f)          any
material representation or warranty made by the Maker herein or in any of the Transaction Documents shall prove to have been false
or incorrect or breached in a material respect on the date as of which made;

 

(g)          the
Maker shall, or shall announce an intention to, consider, pursue or consummate a Change of Control (as defined below), or a Change
of Control shall be consummated, or Maker shall negotiate, consider, propose or enter into any agreement, understanding or arrangement
with respect to any Change of Control. A “Change of Control” shall mean:

 

(i)          the
consolidation, merger or other business combination of the Maker with or into another Person (other than (A) pursuant to a migratory
merger effected solely for the purpose of changing the jurisdiction of incorporation of the Maker, or (B) a consolidation, merger
or other business combination in which holders of the Maker’s voting power immediately prior to the transaction continue
after the transaction to hold, directly or indirectly, the voting power of the surviving entity or entities necessary to elect
a majority of the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities);

 

(ii)         the
sale, transfer disposition or exclusive license of more than fifty percent (50%) of the Maker’s intellectual property or
assets (based on the fair market value as determined in good faith by the Holders) other than inventory in the ordinary course
of business in one or a related series of transactions; except for any such transaction described in this clause (ii) that has
been approved by a majority of the non-employee directors of the Board of Directors of the Maker (the “Board”
or the “Board of Directors”);

 

(iii)        closing
of a purchase, tender or exchange offer made to the holders of more than fifty percent (50%) of the outstanding shares of Common
Stock in which more than fifty percent (50%) of the outstanding shares of Common Stock were tendered and accepted; or

 

(iv)        a
majority of the current Board of Directors of the Maker shall no longer constitute a majority.

 

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(h)          the
Maker shall (A) default in any payment of any amount or amounts of principal of or interest on any Indebtedness incurred after
the date hereof (other than the Indebtedness hereunder or under the Other Notes) the aggregate Principal of which Indebtedness
is in excess of $100,000 or (B) default in the observance or performance of any other agreement or condition relating to any such
Indebtedness incurred after the date hereof or contained in any instrument or agreement evidencing, securing or relating thereto,
or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit
the holder or holders or beneficiary or beneficiaries of such Indebtedness to cause with the giving of notice if required, such
Indebtedness to become due prior to its stated maturity;

 

(i)          the
Maker shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator
of itself or of all or a substantial part of its property or assets, (ii) make a general assignment for the benefit of its creditors,
(iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or under the comparable
laws of any jurisdiction (foreign or domestic), (iv) file a petition seeking to take advantage of any bankruptcy, insolvency, moratorium,
reorganization or other similar law affecting the enforcement of creditors’ rights generally, (v) acquiesce in writing to
any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or under
the comparable laws of any jurisdiction (foreign or domestic), (vi) issue a notice of bankruptcy or winding down of its operations
or issue a press release regarding same, or (vii) take any action under the laws of any jurisdiction (foreign or domestic) analogous
to any of the foregoing;

 

(j)          a
proceeding or case shall be commenced in respect of the Maker, without its application or consent, in any court of competent jurisdiction,
seeking (i) the liquidation, reorganization, moratorium, dissolution, winding up, or composition or readjustment of its debts,
(ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any substantial part of its assets
in connection with the liquidation or dissolution of the Maker or (iii) similar relief in respect of it under any law providing
for the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed
and in effect, for a period of thirty (30) days or any order for relief shall be entered in an involuntary case under United States
Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic) against
the Maker or action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with
respect to the Maker or any of its Subsidiaries and shall continue undismissed, or unstayed and in effect for a period of sixty
(60) days;

 

(k)          the
failure of the Maker to instruct its transfer agent to remove any legends from shares of Common Stock eligible to be sold under
Rule 144 and issue such unlegended certificates to the Holder within five (5) Business Days of the Holder’s request so long
as the Holder has provided reasonable assurances to the Maker that such shares of Common Stock can be sold pursuant to Rule 144,
provided, however, that such failure shall only become effective as an Event of Default on the date that the Maker
receives written notice from Holders of at least 50.1% of the then outstanding Principal of the Notes agreeing to declare an Event
of Default;

 

(l)          the
failure of the Maker to pay the Prepayment Price on this Note on the Payment Date in the Voluntary Prepayment pursuant to Section
5.2;

 

(m)        the
occurrence of an Event of Default under any of the Other Notes;

 

(n)         at
any time following the Issuance Date, the Maker shall be unable for any reason to deliver shares of Common Stock upon conversion
of this Note at the election of Holder pursuant to the terms hereof; or

 

(o)         the
occurrence of a Material Adverse Effect in respect of the Maker.

 

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3.2           Remedies
Upon An Event of Default. If an Event of Default shall have occurred and shall be continuing, the Holder of this Note may at
any time at its option declare the entire unpaid principal balance of this Note, together with all interest accrued hereon, due
and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest, or notice,
all of which are hereby expressly unconditionally and irrevocably waived by the Maker; provided, however ,
that upon the occurrence of an Event of Default described above, the Holder, in its sole and absolute discretion, may (i) demand
that the Principal of this Note then outstanding and all accrued and unpaid interest thereon shall be converted into shares of
Common Stock at the Conversion Price per share on the Trading Day immediately preceding the date the Holder demands conversion
pursuant to this clause, or (ii) exercise or otherwise enforce any one or more of the Holder’s rights, powers, privileges,
remedies and interests under this Note, the Subscription Agreement, the other Transaction Documents or applicable law; provided;
further, that upon the occurrence of an Event of Default described in clauses (j) or (k) of Section 3.1, the
entire unpaid principal balance of this Note, together with all interest accrued hereon, shall automatically become due and payable,
and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest, or notice, all of which
are hereby expressly unconditionally and irrevocably waived by the Maker. No course of delay on the part of the Holder shall operate
as a waiver thereof or otherwise prejudice the right of the Holder. No remedy conferred hereby shall be exclusive of any other
remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

ARTICLE 4

 

4.1          Conversion.

 

(a)          Voluntary
Conversion. At any time and from time to time on or after the Issuance Date, this Note shall be convertible (in whole or in
part), at the option of the Holder, into such number of Conversion Shares as is determined by dividing (i) that portion of the
then outstanding Principal that the Holder elects to convert by (ii) the Conversion Price (as defined in Section 4.2
hereof) then in effect on the date on which the Holder submits a notice of conversion (the “Conversion Notice”),
a form of which is attached hereto as Exhibit A (the “Voluntary Conversion Date”), by any
of the means of notice provided for in the Subscription Agreement. The Holder shall deliver this Note to the Maker at the address
designated in the Subscription Agreement at such time that this Note is fully converted. With respect to partial conversions of
this Note, the Maker shall keep written records of the amount of this Note converted as of each Conversion Date. The Maker shall
not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction
of a share of Common Stock, the Maker shall round such fraction of a share of Common Stock up to the nearest whole share. On any
such Voluntary Conversion Date, Maker shall also pay Holder an amount in immediately available funds equal to the then accrued
and unpaid interest on the portion of the then outstanding Principal that the Holder has elected to convert.

 

(b)          Mandatory
Conversion. The Maker shall have no direct and/or indirect right to force and/or require a conversion of all or any portion
of the outstanding Principal of this Note or the Others Notes, other than as expressly provided in this Section 4.1(b).
Notwithstanding the first sentence of this Section 4.1(b), as long as the Note has not been paid in full or converted
in full, if (i) either (A) a registration statement covering the resale of all of the Conversion Shares issuable upon full conversion
of this Note and all Other Notes is effective under the Securities Act (and the Maker has no reason to believe it will not stay
effective without interruption for the foreseeable future), or (B) such Conversion Shares are eligible for sale under Rule 144
without any limitations and/or restrictions, including, but not limited to, volume or manner-of-sale restrictions or current public
information requirements, as demonstrated by a legal opinion of the Maker’s counsel addressed to the affected Holders and
the Maker’s transfer agent and such transfer agent accepts such legal opinion (and the Maker has no reason to believe sales
of such Conversion Shares under Rule 144 without any limitations and/or restrictions will not continue to be permitted without
interruption for the foreseeable future), and (ii) (A) the Daily VWAP, as reported by Bloomberg Financial L.P. (based on a Trading
Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time), for the ten (10) consecutive Trading Days with the last Trading Day
being the Trading Day immediately prior to the Trading Day that the Notice of Mandatory Conversion (as defined herein), is actually
sent to Holders is equal to or greater than the then Conversion Price multiplied by 120%; and (B) the dollar value of the average
daily trading volume, as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m.
Eastern Time), for each Trading Day in such ten (10) consecutive Trading Day period is not less than $100,000 (with each purchase
and sale of a share of Common Stock counted as one (1) share of Common Stock traded) on the principal Trading Market, then the
Maker shall have the right to convert (a “Mandatory Conversion”) all then outstanding Principal on this
Note and the Other Notes into Conversion Shares by providing the Holder and the Other Holders with twenty (20) Trading Days prior
written notice (“Notice of Mandatory Conversion”) of such Mandatory Conversion pursuant to this Section
4.1(b), provided, however, that notwithstanding anything to the contrary provided herein or elsewhere, if,
at any time prior to the Trading Day that the Mandatory Conversion is to occur (a “Mandatory Conversion Date”),
as set forth in the Notice of Mandatory Conversion sent to Holders relating such particular Mandatory Conversion, any of the conditions
of (i) or (ii) of this Section 4.1(b) are not met for each Trading Day during the ten (10) consecutive Trading Day
period with the last Trading Day being the Trading Day immediately prior to such Mandatory Conversion Date, then the Notice of
Mandatory Conversion shall be null and void, ab initio, and no Mandatory Conversion shall occur.

 

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4.2          Conversion
Price. The term “Conversion Price” shall mean $0.35 per share of Common Stock, subject to adjustment under
Section 4.5 hereof.

 

4.3          Mechanics
of Conversion.

 

(a)          Delivery
of Certificate Upon Conversion. Not later than five (5) Trading Days after each Voluntary Conversion Date or a Mandatory Conversion
Date (the “Share Delivery Date”), the Maker shall deliver, or cause to be delivered, to the converting
Holder (i) a certificate or certificates representing the Conversion Shares which, on or after the six (6) month anniversary of
the Issuance Date, unless Rule 144 is not then available for the sale of such shares, will be unlegended and will represent the
number of Conversion Shares being acquired upon the conversion of the Principal being converted, and (ii) by bank check, or by
wire transfer if the Holder has designated the Holder’s account to the Maker, in immediately available funds, the dollar
amount of accrued and unpaid interest. On or after the six (6) month anniversary of the Issuance Date, upon request of a Holder
in a Conversion Notice, the Maker shall, if permitted by applicable law, deliver any certificate or certificates required to be
delivered by the Maker under this Section 4.3 electronically through the Depository Trust Company (“DTC”)
(or another established clearing corporation performing similar functions) to the DTC account of the Holder via the Deposit Withdrawal
Agent Commission System (“DWAC”) as specified in the Conversion Notice.

 

(b)          Partial
Liquidated Damages. The Maker understands that a delay in the delivery of Conversion Shares beyond the Share Delivery Date
could result in economic loss to the Holder. If the Maker fails to deliver to the Holder such shares by the Delivery Date, the
Maker shall pay to such Holder, in cash, an amount per Trading Day for each Trading Day until such shares are delivered, together
with interest on such amount at a rate of fifteen (15%) percent per annum, accruing until such amount and any accrued interest
thereon is paid in full, equal to the greater of (i) (A) one (1%) percent of the aggregate Principal of the Notes requested to
be converted for each of the first five (5) Trading Days after the Delivery Date, and (B) 2% of the aggregate Principal of the
Notes requested to be converted for each Trading Day thereafter, and (ii) $2,000 per day (which amount shall be paid as partial
liquidated damages and not as a penalty), provided that the Company shall not be liable for more than five (5%) percent
of the then outstanding Principal. Nothing herein shall limit a Holder’s right to pursue actual damages for the Maker’s
failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein and such
Holder shall have the right to pursue all remedies available to it at law or in equity (including, without limitation, a decree
of specific performance and/or injunctive relief). Notwithstanding anything to the contrary contained herein, the Holder shall
be entitled to withdraw a Conversion Notice, and upon such withdrawal the Maker shall only be obligated to pay the liquidated damages
accrued in accordance with this Section 4.3(b) through the date the Conversion Notice is withdrawn.

 

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

 

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(d)          Issue
Taxes. The Maker shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that may be payable
in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto.

 

(e)          Closing
of Books. The Maker will not close its stockholder books or records in any manner which prevents the timely conversion of this
Note by the Holder, pursuant to the terms hereof.

 

4.4          Limitations
on Conversion.

 

(a)          Notwithstanding
anything to the contrary set forth in Section 4.1 of this Note, at no time may the Maker issue to Holder shares of
Common Stock or the Holder convert all or a portion of this Note into shares of Common Stock if the number of shares of Common
Stock to be issued pursuant to such issuance or conversion would exceed, when aggregated with all other shares of Common Stock
owned by the Holder at such time and all shares of Common Stock that the Holder is then the beneficial owner of (as determined
in accordance with Section 13(d) of the Exchange Act and the rules thereunder), the number of shares of Common Stock that would
result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder)
more than 4.999% of all of the Common Stock outstanding at such time; provided, however, that upon the Holder providing
the Maker with sixty-one (61) days notice (pursuant to Section 6.2 hereof) (the “4.999% Waiver Notice”)
that the Holder would like to waive this Section 4.4(a) with regard to any or all shares of Common Stock issuable
in respect of this Note, this Section 4.4(a) will be of no force or effect with regard to all or a portion of the
Note referenced in the 4.999% Waiver Notice.

 

(b)          Notwithstanding
anything to the contrary set forth in Section 4.1 of this Note, at no time may the Maker issue to Holder shares of
Common Stock or the Holder convert all or a portion of this Note into shares of Common Stock if the number of shares of Common
Stock to be issued pursuant to such issuance or conversion, when aggregated with all other shares of Common Stock owned by the
Holder at such time and all shares of Common Stock that the Holder is then the beneficial holder of (as determined in accordance
with Section 13(d) of the Exchange Act and the rules thereunder), would result in the Holder beneficially owning (as determined
in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.999% of the then issued and outstanding
shares of Common Stock outstanding at such time; provided, however, that upon the Holder providing the Maker with
with sixty-one (61) days notice (pursuant to Section 6.2 hereof) (the “9.999% Waiver Notice”)that
the Holder would like to waive this Section 4.4(b) with regard to any or all shares of Common Stock issuable in respect
of this Note, this Section 4.4(b) will be of no force or effect with regard to all or a portion of the Note referenced
in the 9.999% Waiver Notice.

 

(c)          Notwithstanding
anything to the contrary set forth in this Note, the Maker shall not be obligated to issue any shares of Common Stock upon conversion
of this Note or otherwise pursuant to the terms of this Note if the issuance of such shares of Common Stock (taken together with
the issuance of all other shares of Common Stock upon conversion of the Other Notes or exercise of the Warrants or otherwise pursuant
to the terms of the Notes, or the Warrants) would exceed the aggregate number of shares of Common Stock which the Maker may issue
upon exercise or conversion (as the case may be) of the Warrants and the Notes or otherwise pursuant to the respective terms thereof
without breaching the Maker’s obligations under the rules or regulations of the Trading Market (the number of shares which
may be issued without violating such rules and regulations referred to herein as the “Exchange Cap”),
except that such limitation shall not apply in the event that the Maker (A) obtains the approval of its stockholders as required
by the applicable rules of the Trading Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a
written opinion from outside counsel to the Maker that such approval is not required, which opinion shall be reasonably satisfactory
to the Holder, provided that the Maker shall promptly, and in any event within four (4) months from the date of the Conversion
Notice, obtain either (A) or (B). In the event that on the date four (4) months from the date of the Conversion Notice (the “Exchange
Cap Deadline”), the Maker is prohibited from issuing any shares of Common Stock pursuant to this Section 4.4(c)
(the “Exchange Cap Shares”), the Maker shall pay to the Holder, as partial liquidated damages and not
as a penalty, the dollar amount due in accordance with the provisions of Section 4.3(c) commencing
on the Exchange Cap Deadline until the date the Exchange Cap Shares are delivered pursuant hereto.

 

    	8

    	 

    

 

4.5           Adjustment
of Conversion Price. Until the Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment
from time to time as follows (but shall not be increased, other than pursuant to Section 4.5(a) hereof):

 

(a)          Adjustments
for Stock Splits and Combinations. If the Maker shall at any time or from time to time after the Issuance Date effect a stock
split of the outstanding Common Stock, the applicable Conversion Price in effect immediately prior to the stock split shall be
proportionately decreased. If the Maker shall at any time or from time to time after the Issuance Date, combine the outstanding
shares of Common Stock, the applicable Conversion Price in effect immediately prior to the combination shall be proportionately
increased. Any adjustments under this Section 4.5(a) shall be effective at the close of business on the date the
stock split or combination occurs.

 

(b)          Adjustments
for Certain Dividends and Distributions. If the Maker shall at any time or from time to time after the Issuance Date make or
issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution
payable in shares of Common Stock, then, and in each event, the applicable Conversion Price in effect immediately prior to such
event shall be decreased as of the time of such issuance or, in the event such record date shall have been fixed, as of the close
of business on such record date, by multiplying the applicable Conversion Price then in effect by a fraction:

 

(i)          the
numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date; and

 

(ii)         the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution.

 

(c)          Adjustment
for Other Dividends and Distributions. If the Maker shall at any time or from time to time after the Issuance Date make or
issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution
payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the applicable Conversion Price
shall be made and provision shall be made (by adjustments of the Conversion Price or otherwise) so that the holders of this Note
shall receive upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon, the number of securities
of the Maker or other issuer (as applicable) or other property that they would have received had this Note been converted into
Common Stock on the date of such event and had thereafter, during the period from the date of such event to and including the Conversion
Date, retained such securities (together with any distributions payable thereon during such period) or assets, giving application
to all adjustments called for during such period under this Section 4.5(c) with respect to the rights of the holders
of this Note and the Other Notes; provided, however, that if such record date shall have been fixed and such
dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be
adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions.

 

    	9

    	 

    

 

(d)          Adjustments
for Reclassification, Exchange or Substitution. If the Common Stock at any time or from time to time after the Issuance Date
shall be changed to the same or different number of shares or other securities of any class or classes of stock or other property,
whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares or
stock dividends provided for in Section 4.5(a), Section 4.5(b), and Section 4.5(c), or
a reorganization, merger, consolidation, or sale of assets provided for in Section 4.5(e)), then, and in each event,
an appropriate revision to the Conversion Price shall be made and provisions shall be made (by adjustments of the Conversion Price
or otherwise) so that the Holder shall have the right thereafter to convert this Note into the kind and amount of shares of stock
or other securities or other property receivable upon reclassification, exchange, substitution or other change, by holders of the
number of shares of Common Stock into which such Note might have been converted immediately prior to such reclassification, exchange,
substitution or other change, all subject to further adjustment as provided herein.

 

(e)          Adjustments
for Reorganization, Merger, Consolidation or Sales of Assets. In case of any reorganization of the Maker (or any other corporation
the stock or other securities of which are at the time receivable on the conversion of this Note) after the Issuance Date, or in
case, after such date, the Maker (or any such other corporation) shall consolidate with or merge into another corporation or entity
or convey all or substantially all its assets to another corporation or entity (any such reorganization or other event hereafter
being referred to as a “Reorganization”), then and in each such case this Note, upon conversion, as and
at any time after the consummation of such Reorganization, shall be converted into, in lieu of the stock or other securities and
property into which this Note would have been convertible prior to such Reorganization, such stock or other securities or property
to which this Note would have converted if this Note had been converted immediately prior to any such Reorganization, subject to
further adjustment as provided in Section 4.5(a), Section 4.5(b), Section 4.5(c) and
Section 4.5(c) in each such case.

 

(f)          Record
Date. In case the Maker shall take record of the holders of its Common Stock for the purpose of entitling them to subscribe
for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of Common Stock shall
be deemed to be such record date.

 

(g)          No
Impairment. The Maker shall not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed hereunder by the Maker, but will at all times in good
faith assist in the carrying out of all the provisions of this Section 4.5 and in the taking of all such action as
may be necessary or appropriate in order to protect the conversion rights of the Holder against impairment.

 

(h)          Certificates
as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of shares of Common
Stock issuable upon conversion of this Note pursuant to this Section 4.5, the Maker, at its expense, shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth
such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Maker shall,
upon written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth
such adjustments and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common Stock
and the amount, if any, of other securities or property which at the time would be received upon the conversion of this Note.

 

(i)          No
Rights as Shareholder. Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the conversion
of this Note, the right to vote or to receive dividends or to consent or to receive notice as a shareholder in respect of any meeting
of shareholders for the election of directors of the Maker or of any other matter, or any other rights as a shareholder of the
Maker.

 

(j)          Reservation
of Common Stock. On and after the Issuance Date, the Maker shall at all times when this Note shall be outstanding, reserve
and keep available out of its authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to
time be sufficient to effect the Conversion of this Note, and the Other Notes and exercise of the Warrants; provided that the number
of shares of Common Stock so reserved shall at no time be after the Issuance Date less than one hundred percent (100%) of the number
of shares of Common Stock for which this Note, the Other Notes and the Warrants are at any time convertible or exercisable (disregarding
for this purpose any and all limitations of any kind on such conversion or exercise). The Maker shall, from time to time in accordance
with the Delaware General Corporation Law, increase the authorized number of shares of Common Stock or take other effective action
if at any time the unissued number of authorized shares shall not be sufficient to satisfy the Maker’s obligations under
this Section 4.5(j).

 

    	10

    	 

    

 

ARTICLE 5

 

5.1           Prepayment.
Notwithstanding the provisions of Section 2.3 of this Note, at any time after the Issuance Date, upon ten (10) Business
Days written notice to the Holders and during which ten (10) day period the Holders shall have the right to convert the Note into
Conversion Shares pursuant to Section 4.1(a) of this Note, the Maker at its option, shall have the right to prepay
all (but not less than all) of the outstanding Principal and accrued but unpaid interest on this Note and all Other Notes then
outstanding (the “Voluntary Prepayment”) by delivering to the Holder of this Note and to each Other Holder
of the Other Notes then outstanding the applicable Prepayment Price (as defined below) for this Note and each such Other Note.
The prepayment price (the “Prepayment Price”) shall equal, for this Note and each Other Note, the product
of (i) (A) the outstanding Principal being prepaid plus (B) all accrued but unpaid interest through and including the date prior
to the date the Prepayment Price is paid, multiplied by (ii) 120%. Notwithstanding the above in this Section 5.1,
the Maker’s right to prepay hereunder shall not apply to any portion of this Note that is not convertible on the date of
such prepayment notice as a result of the 9.999% conversion limitation described in Section 4.4(b) above. For example,
if (AA) this Note then permits the Holder to acquire one hundred (100) Conversion Shares, (BB) the Maker delivers a written notice
to the Holder of the Maker’s intent to prepay the Note and Other Notes in full, and (CC) due to a 9.999% conversion limitation
on the conversion of this Note that is then in effect, this Note can only be converted into 25 Conversion Shares on the date of
such notice, then Maker’s right to prepay this Note shall only apply to the outstanding Principal (and any accrued but unpaid
interest thereof) relating to such 25 Conversion Shares.

 

5.2           Payment
of Prepayment Price. If the Maker shall elect to prepay this Note and the Other Notes pursuant to Section 5.1,
the Maker shall pay the Prepayment Price to the Holder within fifteen (15) Business Days of the date a Holder has received actual
written notice of the Maker’s intent to prepay (the “Payment Date”). If the Maker shall fail to
pay the applicable Prepayment Price to the Holder on the Payment Date (including as a result of a dispute as to the determination
of the calculation of the Prepayment Price), in addition to any remedy the Holder may have under this Note, such unpaid amount
shall bear interest at the rate of two percent (2%) per month (prorated for partial months) until paid in full.

 

ARTICLE 6

 

6.1           Equal
Treatment of Holders. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of the Transaction Documents or in consideration of the exchange, redemption or repurchase of any of the
Maker’s securities unless the same consideration is also offered to all of the parties to the Transaction Documents. For
clarification purposes, this provision constitutes a separate right granted to each Holder by the Maker and negotiated separately
by each Holder, and is intended for the Maker to treat the Holders as a class and shall not in any way be construed as the Holders
acting in concert or as a group with respect to the purchase, disposition or voting of any of the Maker’s securities or otherwise.
This provision shall not restrict any individual Holder from exercising its rights under the Transaction Documents independently
of any other Holder.

 

6.2           Notices.
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and
shall be effective (a) upon hand delivery, telecopy or facsimile at the address or number designated in the Subscription Agreement
(if delivered on a Business Day during normal business hours where such notice is to be received), or the first Business Day following
such delivery (if delivered other than on a Business Day during normal business hours where such notice is to be received) or (b)
on the second Business Day following the date of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The Maker will give written notice to the Holder at least
ten (10) days prior to the date on which the Maker takes a record (x) with respect to any dividend or distribution upon the Common
Stock, (y) with respect to any pro rata subscription offer to holders of Common Stock or (z) for determining rights to vote with
respect to any Change of Control, dissolution, liquidation or winding-up and in no event shall such notice be provided to such
holder prior to such information being made known to the public. The Maker will also give written notice to the Holder at least
ten (10) days prior to the date on which any Change of Control, dissolution, liquidation or winding-up will take place and in no
event shall such notice be provided to the Holder prior to such information being made known to the public. The Maker shall promptly
notify the Holder of this Note of any notices sent or received, or any actions taken with respect to the Other Notes.

 

    	11

    	 

    

 

6.3           Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. The Maker and the Holder hereby expressly and irrevocably agree that this
Note shall be governed by and construed solely and exclusively in accordance with the laws of the State of New York without regard
to the conflicts of laws principles thereof. The Maker and the Holder hereby expressly and irrevocably agree that any suit or proceeding
arising directly and/or indirectly pursuant to or under this instrument or the consummation of the transactions contemplated hereby,
shall be brought solely in a federal or state court located in the City, County and State of New York. By its execution hereof,
the Maker and the Holder hereby covenant and irrevocably submit to the in personam jurisdiction of the federal and state courts
located in the City, County and State of New York and agree that any process in any such action may be served upon any of them
personally, or by certified mail or registered mail upon them or their respective agent, return receipt requested, with the same
full force and effect as if personally served upon them in New York City. The Maker and the Holder waive any claim that any such
jurisdiction is not a convenient forum for any such suit or proceeding and any defense or lack of in personam jurisdiction with
respect thereto. THE MAKER AND THE HOLDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS NOTE OR ANY OTHER
DOCUMENT OR INSTRUMENT EXECUTED AND DELIVERED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN), OR ACTIONS OF THE MAKER OR THE HOLDER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE HOLDER’S PURCHASING
THIS NOTE.

 

6.4           Headings.
Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute
a part of this Note for any other purpose.

 

6.5           Entire
Agreement. Other than any other Transaction Documents, this Note sets forth the entire understanding of the parties with respect
to the subject matter hereof, and shall not be modified or affected by any offer, proposal, statement or representation, oral or
written, made by or for any party in connection with the negotiation of the terms hereof, and may be modified only by instruments
signed by all of the parties hereto.

 

6.6           No
Strict Construction. The language used in this Note will be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rule of strict construction will be applied against any party.

 

6.7           Further
Assurances. Each party hereto will execute all documents and take such other actions as the other party may reasonably request
in order to consummate the transactions provided for herein and to accomplish the purposes of this Note.

 

6.8           Third
Parties. Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or entity,
other than the parties to this Note and the Holder’s successor, assigns and transferees, any rights or remedies under or
by reason of this Note.

 

6.9           Severability.
If any provision of this Note is, for any reason, invalid or unenforceable, the remaining provisions of this Note will nevertheless
be valid and enforceable and will remain in full force and effect. Any provision of this Note that is held invalid or unenforceable
by a court of competent jurisdiction will be deemed modified to the extent necessary to make it valid and enforceable and as so
modified will remain in full force and effect.

 

    	12

    	 

    

 

6.10         Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note, at law or in equity (including, without limitation, a decree of
specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the
provisions giving rise to such remedy and nothing herein shall limit a holder’s right to pursue actual damages for any failure
by the Maker to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments, conversion
and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof and shall not, except as expressly
provided herein, be subject to any other obligation of the Maker (or the performance thereof). The Maker acknowledges that a breach
by it of its obligations hereunder will cause irreparable and material harm to the Holder and that the remedy at law for any such
breach may be inadequate. Therefore the Maker agrees that, in the event of any such breach or threatened breach, the Holder shall
be entitled, in addition to all other available rights and remedies, at law or in equity, to seek and obtain such equitable relief,
including but not limited to an injunction restraining any such breach or threatened breach, without the necessity of showing economic
loss and without any bond or other security being required. THE MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS
A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING
WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

6.11         Enforcement
Expenses. The Maker agrees to pay all costs and expenses of enforcement of this Note, including, without limitation, reasonable
attorneys’ fees and expenses.

 

6.12         Binding
Effect. The obligations of the Maker and the Holder set forth herein shall be binding upon the successors and assigns of each
such party, whether or not such successors or assigns are permitted by the terms hereof.

 

6.13         Amendments;
Waivers. Amendments, waivers and modifications to this Note and the Other Notes shall require the written consent of Holders
of at least 66 2/3% of the then outstanding Principal of the Notes.

 

6.14         Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

 

6.15         Maker
Waivers. Except as otherwise specifically provided herein, the Maker and all others that may become liable for all or any part
of the obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all other demands’
and notices in connection with the delivery, acceptance, performance and enforcement of this Note.

 

6.16         No
Inconsistent Agreements. Neither of the parties hereto will hereafter enter into any agreement which is inconsistent with the
rights granted to the Holder of this Note and/or in any other Transaction Document.

 

6.17         Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed
by the Maker to the Holder and thus refunded to the Maker.

 

[SIGNATURE PAGE FOLLOWS]

 

    	13

    	 

    

 

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

 

	 	 	CORMEDIX, INC.
	 	 	 	 
	Date:	 	By:	 
	 	 	 	Name:
	 	 	 	Title:

 

    	14

    	 

    

 

EXHIBIT A

 

FORM OF

 

NOTICE OF CONVERSION

 

(To be Executed by the Registered Holder
in order to Convert the Note)

 

The undersigned hereby elects to convert $ ________________
of the Principal of the above BRN No.___ into shares of Common Stock of CorMedix Inc. (the “Maker”) according
to the conditions hereof, as of the date written below.

 

	Date of Conversion	 	 

	Applicable Conversion Price	 	 

 

Number of shares of Common Stock beneficially owned or deemed
beneficially owned by the Holder on the Date of

Conversion: _________________________

 

	Signature	 	 
	 	[Name]	 

 

	Address:	 	 
	 	 	 
	 	 	 

 

	Tax ID of above Named:	 	 

 

Please issue the Common Stock into which the Note is being converted
in the following name and to the following address (if different than above) or electronically through the Depository Trust Company
(“DTC”) to the DTC account specified below:

 

	Name:	 	 

 

	Address:	 	 

 

	Tax ID of above Named:	 	 

 

or

 

DTC Instructions

______________ Bank

DTC: ______________

DTC Agent ID# _______________

Broker: ______________________

Custody Account: _______________

 

    	A-1EXHIBIT 4.2

 

NEITHER THIS SECURITY
NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

CORMEDIX
inc.

 

	Warrant Shares: ________	Issuance Date: ________

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received,  ____________ (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the issuance date set forth above (the “Issuance Date”) and on or prior to the close of business
on the fifth (5th) anniversary of the Issuance Date (the “Termination Date”) but not thereafter,
to subscribe for and purchase from CorMedix Inc., a Delaware corporation (the “Company”), up to ________________shares
(the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the “Common
Stock”). The exercise price of one (1) share of Common Stock under this Warrant shall initially be $0.40, subject
to adjustment hereunder (the “Exercise Price”).

 

This Warrant is one of
a series of warrants (the “Warrants”) issued pursuant to the Subscription Agreement (the “Subscription
Agreement”) attached as Exhibit A to the Company’s Confidential Private Placement Memorandum
dated August 20, 2012 (including all exhibits, attachments, annexes, amendments and supplements thereto) (collectively, the “Memorandum”)
in connection with the Company’s offering (the “Offering”) through John Carris Investments LLC
(the “Placement Agent”) of its units (the “Units”), each Unit consisting of
(i) a one-year $1,000 principal amount 9% Senior Convertible Note (each, a “Note” and collectively, the
“Notes”), convertible into shares (“Conversion Shares”) of Common Stock, and
(ii) a five-year Warrant.

 

Section 1.           Definitions.
Capitalized terms used herein and not defined shall have the meanings set forth in the Subscription Agreement.

 

a)         “Business
Day” means any day other than (a) a Saturday or Sunday, and (b) any day on which banks are required or permitted
to be closed in New York, New York.

 

b)         “Daily
VWAP” means, for any particular Trading Day, (i) the daily volume weighted average price of the Common Stock on such
date on the principal Trading Market on which the Common Stock is then listed or eligible for quotation, or if there is no such
price on such date, then the last daily volume weighted average price of the Common Stock on such Trading Market on the nearest
Trading Day preceding such date as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to
4:02 p.m. Eastern Time); (ii) if the Common Stock is not then listed or quoted on a Trading Market and if prices for the Common
Stock are then reported in the “Pink Sheets” published by the OTC Markets Group (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (iii)
in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good
faith by the Holder and reasonably acceptable to the Company.

 

    	 

    	 

    

 

c)         “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

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

 

e)         “Registration
Statement” means a registration statement covering the resale of all of the Conversion Shares and any other shares
of Common Stock issuable upon conversion of all of the Notes.

 

f)         “Rule
144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

g)         “SEC”
means the United States Securities and Exchange Commission.

 

h)         “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

i)         “Trading
Day” means a day on which the principal Trading Market is open for trading.

 

j)         “Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading
on the date in question:  the OTC Bulletin Board, the OTC Markets Group, Pink Sheets, LLC,
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, and the New
York Stock Exchange MKT, or any successor thereto as the case may be.

 

k)         “Transfer
Agent” shall mean the Company’s duly appointed transfer agent, registrar, conversion agent and dividend disbursing
agent for the Common Stock.

 

Section
2.           Exercise.

 

a)         Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Issuance Date and on or before the Termination Date by delivery to the Company (or such other office or agency
of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the
books and records of the Company) of (i) a duly executed facsimile copy of the notice of exercise annexed hereto (the “Notice
of Exercise”); and (ii) within ten (10) Trading Days of the date said Notice of Exercise is delivered to the Company,
payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United
States bank or, if available, pursuant to the cashless exercise procedure specified in Section 2(b) below. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the
Holder shall surrender this Warrant to the Company for cancellation within ten (10) Trading Days of the date the Company has actual
receipt of the final Notice of Exercise, provided that failure to deliver such certificate shall not affect the rights of
the Holder herein to, among other things, exercise this Warrant and receive the Warrant Shares in accordance with this Warrant.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder
shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable
number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within three (3) Trading Days
of receipt of such notice. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative
in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by
reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of
Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

    	 

    	 

    

 

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

(A) = the
Daily VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;

 

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

 

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

 

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

 

c)                                Mechanics
of Exercise.

 

i.          Delivery
of Certificates Upon Exercise. If (i) the Company is then a participant in the Deposit Withdrawal Agent Commission (“DWAC”)
system, (ii) the Holder has provided its DWAC instructions to the Company and (iii) either (A) there is an effective registration
satement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder and the Holder agrees in
writing to make any resale of the Warrant Shares in accordance with such registration statement or (B) the Warrant Shares are eligible
for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, the Company shall, or shall have its
Transfer Agent, transmit certificates representing the Warrant Shares purchased to the Holder by crediting the account of the Holder’s
broker-dealer with the Depository Trust Company (“DTC”). If the above conditions are not satisfied on
the date that the Holder submits a Notice of Exercise to the Company, the Company shall deliver certificates representing the Warrant
Shares purchased by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is five
(5) Trading Days from the latest to occur of (A) the delivery to the Company of the Notice of Exercise, and (B) payment of the
aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant
Share Delivery Date”). This Warrant shall be deemed to have been exercised on the first date on which all of the
foregoing have been delivered to the Company. The Warrant Shares shall be deemed to have been issued, and the Holder or any other
Person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes as of
the date the Warrant has been exercised.

 

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

 

    	 

    	 

    

 

iii.        Partial
Liquidated Damages. The Company understands that a delay in the delivery of Warrant Shares beyond the Warrant Share Delivery
Date could result in economic loss to the Holder. If the Company fails to deliver to the Holder such shares by the Warrant Share
Delivery Date, the Company shall pay to such Holder, in cash, an amount per Trading Day for each Trading Day until such shares
are delivered, together with interest on such amount at a rate of 15% per annum, accruing until such amount and any accrued interest
thereon is paid in full, equal to the greater of (i) (A) 1% of the applicable Purchase Price for each of the first five (5) Trading
Days after the Delivery Date, and (B) 2% of the applicable Purchase Price or each Trading Day thereafter, and (ii) $2,000 per day
(which amount shall be paid as partial liquidated damages and not as a penalty), provided that the Company shall not be
liable for more than five (5%) percent of the then purchase price to purchase all then remaining Warrant Shares issuable under
this Warrant at the then Exercise Price pursuant to this Warrant. Nothing herein shall limit a Holder’s right to pursue actual
damages for the Company’s failure to deliver certificates representing the Warrant Shares purchased upon exercise of this
Warrant and such Holder shall have the right to pursue all remedies available to it at law or in equity (including, without limitation,
a decree of specific performance and/or injunctive relief). Notwithstanding anything to the contrary contained herein, the Holder
shall be entitled to withdraw a Notice of Exercise, and upon such withdrawal, the Company shall only be obligated to pay the liquidated
damages accrued in accordance with this Section 2(c)(iv) through the date the Notice of Exercise is withdrawn.

 

iv.        Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails for any reason to deliver to a Holder the applicable certificate or certificates by the Warrant Share Delivery
Date pursuant to Section 2(c)(i), and if after such Warrant Share Delivery Date, such Holder is required by its brokerage
firm to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares
of Common Stock to deliver in satisfaction of a sale by such Holder of the Warrant Shares which such Holder was entitled to receive
upon the exercise relating to such Warrant Share Delivery Date (a “Buy-In”), then the Company shall (1)
pay in cash to such Holder (in addition to any other remedies available to or elected by such Holder) the amount, if any, by which
(x) such Holder’s total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y)
the product of (A) the aggregate number of Warrant Shares that such Holder was entitled to receive from the exercise at issue multiplied
by (B) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage
commissions) and (2) at the option of such Holder, either reissue (if surrendered) a Warrant to purchase such number of Warrant
Shares as submitted for exercise in the Notice of Exercise in question (in which case, such exercise shall be deemed rescinded)
or deliver to such Holder the number of Warrant Shares that would have been issued if the Company had timely complied with its
delivery requirements under Section 2(c)(i). For example, if a Holder purchases Warrant Shares having a total purchase
price of $11,000 to cover a Buy-In with respect to an attempted exercise of the Warrant with respect to which the actual sale price
of the Warrant Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under
clause (A) of the immediately preceding sentence, the Company shall be required to pay such Holder $1,000. The Holder shall provide
the Company written notice indicating the amounts payable to such Holder in respect of the Buy-In and, upon request of the Company,
reasonable evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies
available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company’s failure to timely deliver certificates representing the Warrant Shares issuable upon
exercise of all or any portion of this Warrant as required pursuant to the terms hereof.

 

    	 

    	 

    

 

v.         No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. If the issuance would result in the issuance of a fractional share or scrip representing fractional shares, the
Company shall round such fractional share up to the nearest whole share.

 

vi.        Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder.

 

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

 

d)                                Limitations
on Exercise.

 

i.            Notwithstanding
anything to the contrary set forth in this Section 2, at no time may the Company issue Warrant Shares to a Holder
or the Holder exercise all or a portion of this Warrant into Warrant Shares if the number of Warrant Shares to be issued pursuant
to such issuance or exercise would exceed, when aggregated with all other shares of Common Stock owned by the Holder at such time
and all shares of Common Stock that the Holder is then the beneficial owner of (as determined in accordance with Section 13(d)
of the Exchange Act and the rules thereunder), the number of shares of Common Stock would result in the Holder beneficially owning
(as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) more than 4.999% of all of the then
issued and outstanding Common Stock at such time; provided, however, that upon the Holder providing the Company with
sixty-one (61) days notice (pursuant to Section 5(h) hereof) (the “4.999% Waiver Notice”)
that the Holder would like to waive this Section 2(d)(i) with regard to any or all Warrant Shares issuable in respect
of this Warrant, this Section 2(d)(i) will be of no force or effect with regard to all or a portion of the Warrant
Shares referenced in the 4.999% Waiver Notice.

 

ii.           Notwithstanding
anything to the contrary set forth in Section 2 of this Warrant, at no time may the Company issue Warrant Shares
to a Holder or the Holder convert all or a portion of this Warrant into Warrant Shares if the number of Warrant Shares to be issued
pursuant to such issuance or exercise, when aggregated with all other shares of Common Stock owned by the Holder at such time and
all shares of Common Stock that the Holder is then the beneficial holder of (as determined in accordance with Section 13(d)
of the Exchange Act and the rules thereunder), would result in the Holder beneficially owning (as determined in accordance with
Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.999% of the then issued and outstanding shares of Common
Stock at such time; provided, however, that upon the Holder providing the Company with sixty-one (61) days notice
(pursuant to Section 5(h) hereof) (the “9.999% Waiver Notice”) that the Holder would like
to waive this Section 2(d)(ii) with regard to any or all Warrant Shares issuable in respect of this Warrant, this
Section 2(d)(ii) will be of no force or effect with regard to all or a portion of the Warrant Shares referenced in
the 9.999% Waiver Notice.

 

    	 

    	 

    

 

iii.          Notwithstanding
anything to the contrary set forth in this Warrant, the Company shall not be obligated to issue any Warrant Shares upon exercise
of this Warrant or otherwise pursuant to the terms of this Warrant if the issuance of such Warrant Shares (taken together with
the prior issuance of all other shares of Common Stock upon conversion of any Notes and exercise of any Warrants issued in the
Offering) would exceed the aggregate number of shares of Common Stock which the Company may issue upon exercise or conversion (as
the case may be) of the Warrants and the Notes pursuant to the respective terms thereof without breaching the Company’s
obligations under the rules or regulations of the Trading Market (the number of shares which may be issued without violating such
rules and regulations referred to herein as the “Exchange Cap”), except that such limitation shall not
apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules of the Trading
Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from counsel to the Company
that such approval is not required, which opinion shall be reasonably satisfactory to the Holder, provided that the Company shall
promptly, and in any event within four (4) months from the date of the Notice of Exercise, obtain either (A) or (B). In the event
that on the date four (4) months from the date of the Notice of Exercise (the “Exchange Cap Deadline”),
the Company is prohibited from issuing any shares of Common Stock pursuant to this Section 2(d)(iii) (the “Exchange
Cap Shares”), the Company shall pay to the Holder, as partial liquidated damages and not as a penalty, the dollar
amount due in accordance with the provisions of Section 2(c)(iv) commencing on the Exchange Cap Deadline until the
date the Exchange Cap Shares are delivered pursuant hereto.

 

e)                                 Call
Provision. If (i) either (A) a registration statement covering the resale of all of the Conversion Shares issuable upon full
conversion of the Notes is effective under the Securities Act (and the Company has no reason to believe it will not stay effective
without interruption for the foreseeable future), or (B) such Conversion Shares are eligible for sale under Rule 144 without any
limitations and/or restrictions, including, but not limited to, volume or manner-of-sale restrictions or current public information
requirements, as demonstrated by a legal opinion by counsel to the Company addressed to the Holder and any other affected holders
of Notes and Warrants and the Company’s transfer agent and such transfer agent accepts such legal opinion (and the Company
has no reason to believe sales of such Conversion Shares under Rule 144 without any limitations and/or restrictions will not continue
to be permitted without interruption for the foreseeable future), and (ii) (A) the Daily VWAP, as reported by Bloomberg Financial
L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time), for the ten (10) consecutive Trading Days
with the last Trading Day being the Trading Day immediately prior to the Trading Day that the Call Notice (as defined herein) is
delivered by the Company is equal to or greater than the then Exercise Price multiplied by 140%; and (B) the dollar value of the
average daily trading volume, as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to 4:02
p.m. Eastern Time), for each Trading Day in such ten (10) consecutive Trading Day period is not less than $100,000 (with each purchase
and sale of a share of Common Stock counted as one (1) share of Common Stock traded) on the principal Trading Market, then the
Company may, within one (1) Trading Day of the end of such ten (10) consecutive Trading Day period, call for cancellation of all
or any portion of this Warrant for which a Notice of Exercise has not yet been delivered (such right, a “Call”)
for consideration equal to $0.001 per Warrant. To exercise this right, the Company must deliver to the Holder an irrevocable written
notice (a “Call Notice”), indicating therein the portion of unexercised portion of this Warrant to which
such Call Notice applies. Any portion of this Warrant subject to such Call Notice for which a Notice of Exercise shall not have
been received by the Call Date will be cancelled at 6:30 p.m. (New York City time) on the thirtieth (30th) calendar day after the
date the Call Notice is actually received by the Holder (such date and time, the “Call Date”). Notwithstanding
the above in this Section 2(e), a Call Notice shall not apply to any portion of this Warrant that is not exercisable
on the date of the Call Notice as a result of the 9.999% exercise limitation described in Sections 2(d)(ii) above.
For example, if (AA) this Warrant then permits the Holder to acquire one hundred (100) Warrant Shares, (BB) a Call Notice pertains
to seventy (75) Warrant Shares, and (CC) due to a 9.999% exercise limitation on the exercise of this Warrant that is then in effect,
the Warrant can only be exercised for 50 Warrant Shares on the date of the Call Notice, then the Call Notice shall only apply to
such 50 Warrant Shares. Any unexercised portion of this Warrant to which the Call Notice does not pertain will be unaffected by
such Call Notice. In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect
to Warrants subject to a Call Notice that are tendered through 6:30 p.m. (New York City time) on the Call Date. The parties agree
that any Notice of Exercise delivered following a Call Notice which calls less than all the Warrants shall first reduce to zero
the number of Warrant Shares subject to such Call Notice prior to reducing the remaining Warrant Shares available for purchase
under this Warrant. For example, if (A) this Warrant then permits the Holder to acquire one hundred (100) Warrant Shares, (B) a
Call Notice pertains to seventy (75) Warrant Shares, and (C) prior to 6:30 p.m. (New York City time) on the Call Date the Holder
tenders a Notice of Exercise in respect of fifty (50) Warrant Shares, then (x) on the Call Date the right under this Warrant to
acquire twenty-five (25) Warrant Shares will be automatically cancelled, (y) the Company, in the time and manner required under
this Warrant, will have issued and delivered to the Holder fifty (50) Warrant Shares in respect of the Notice of Exercise following
receipt of the Call Notice, and (z) the Holder may, until the Termination Date, exercise this Warrant for twenty (25) Warrant Shares
(subject to adjustment as herein provided and subject to subsequent Call Notices). Subject again to the provisions of this Section
2(e), the Company may deliver subsequent Call Notices for any portion of this Warrant for which the Holder shall not have
delivered a Notice of Exercise. Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver
a Call Notice or require the cancellation of this Warrant (and any such Call Notice shall be void, ab initio), unless from the
date of the Call Notice through and including the Call Date, all of the conditions of (i) or (ii) of this Section 2(e)
are satisfied and the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise delivered
by 6:30 p.m. (New York City time) on the Call Date. The Company’s right to call the Warrants under this Section 2(e)
shall be exercised ratably among all holders of Warrants based on each holder’s initial purchase of Warrants.

 

    	 

    	 

    

 

Section 3.          Certain
Adjustments. The Exercise Price is subject to adjustment from time to time as set forth in this Section 3 (but
shall not be increased, other than pursuant to Section 3(a) hereof):

 

a)                               Adjustments
for Stock Splits and Combinations. If the Company shall at any time or from time to time after the Issuance Date effect a stock
split of the outstanding Common Stock, the applicable Exercise Price in effect immediately prior to the stock split shall be proportionately
decreased. If the Company shall at any time or from time to time after the Issuance Date, combine the outstanding shares of Common
Stock, the applicable Exercise Price in effect immediately prior to the combination shall be proportionately increased. Any adjustments
under this Section 3(a) shall be effective at the close of business on the date the stock split or combination occurs.

 

b)                               Adjustments
for Certain Dividends and Distributions. If the Company shall at any time or from time to time after the Issuance Date make
or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution
payable in shares of Common Stock, then, and in each event, the applicable Exercise Price in effect immediately prior to such event
shall be decreased as of the time of such issuance or, in the event such record date shall have been fixed, as of the close of
business on such record date, by multiplying the applicable Exercise Price then in effect by a fraction:

 

i.          the
numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date; and

 

ii.         the
denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such
dividend or distribution.

 

c)                               Adjustment
for Other Dividends and Distributions. If the Company shall at any time or from time to time after the Issuance Date make or
issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution
payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the applicable Exercise Price
shall be made and provision shall be made (by adjustments of the Exercise Price or otherwise) so that the holders of this Warrant
shall receive upon exercise thereof, in addition to the number of shares of Common Stock receivable thereon, the number of securities
of the Company or other issuer (as applicable) or other property that they would have received had this Warrant been exercised
into Common Stock on the date of such event and had thereafter, during the period from the date of such event to and including
any date this Warrant has been exercised, retained such securities (together with any distributions payable thereon during such
period) or assets, giving application to all adjustments called for during such period under this Section 3(c) with
respect to the rights of the Holder; provided, however, that if such record date shall have been fixed and such dividend
is not fully paid or if such distribution is not fully made on the date fixed therefor, the Exercise Price shall be adjusted pursuant
to this paragraph as of the time of actual payment of such dividends or distributions.

 

    	 

    	 

    

 

d)                                  Adjustments
for Reclassification, Exchange or Substitution. If the Common Stock at any time or from time to time after the Issuance Date
shall be changed to the same or different number of shares or other securities of any class or classes of stock or other property,
whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares or
stock dividends provided for in Section 3(a), Section 3(b), and Section 3(c), or a reorganization,
merger, consolidation, or sale of assets provided for in Section 3(e)) then, and in each event, an appropriate revision
to the Exercise Price shall be made and provisions shall be made (by adjustments of the Exercise Price or otherwise) so that the
Holder shall have the right thereafter to exercise this Warrant into the kind and amount of shares of stock or other securities
or other property receivable upon reclassification, exchange, substitution or other change, by holders of the number of shares
of Common Stock into which this Warrant might have been exercised immediately prior to such reclassification, exchange, substitution
or other change, all subject to further adjustment as provided herein.

 

e)                                  Adjustments
for Reorganization, Merger, Consolidation or Sales of Assets. In case of any reorganization of the Company (or any other corporation
the stock or other securities of which are at the time receivable on the exercise of this Warrant) after the Issuance Date, or
in case, after such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation
or entity or convey all or substantially all its assets to another corporation or entity (any such reorganization or other event
hereafter being referred to as a “Reorganization”), then and in each such case this Warrant, upon exercise,
as and at any time after the consummation of such Reorganization, shall be converted into, in lieu of the stock or other securities
and property into which this Warrant would have been exercisable prior to such Reorganization, such stock or other securities or
property to which this Warrant would have exercised into if this Warrant had been converted immediately prior to any such Reorganization,
subject to further adjustment as provided in Section 3(a), Section 3(b), Section 3(c),
and Section 3(d) in each such case.

 

f)                                  Certificates
as to Adjustments. Upon occurrence of each adjustment or readjustment of the Exercise Price or number of shares of Common Stock
issuable upon exercise of this Warrant pursuant to this Section 3, the Company, at its expense, shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such
adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company shall,
upon written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth
such adjustments and readjustments, the applicable Exercise Price in effect at the time, and the number of shares of Common Stock
and the amount, if any, of other securities or property which at the time would be received upon the exercise of this Warrant.

 

g)                                  Stock
Purchase Rights. If at any time, or from time to time, the Company grants or issues to the record holders of the Common Stock
any options, warrants or rights, except pursuant to the Company’s Amended and Restated 2006 Stock Incentive Plan (collectively,
“Stock Purchase Rights”) entitling any holder of Common Stock to purchase Common Stock or any security
convertible into or exchangeable for Common Stock or to purchase any other stock or securities of the Company, the Holders of Warrants
shall be entitled to acquire, upon the terms applicable to such Stock Purchase Rights, the aggregate Stock Purchase Rights which
such Holders of Warrants could have acquired if they had been the record holder of the maximum number of shares of Common Stock
issuable upon exercise of their Warrants on (x) the record date for such grant or issuance of such Stock Purchase Rights, or (y)
the date of the grant or issuance of such Stock Purchase Rights, whichever is greater.

 

    	 

    	 

    

 

h)                                  Reservation
of Common Stock. On and after the Issuance Date, the Company shall at all times when this Warrant shall be outstanding, reserve
and keep available out of its authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to
time be sufficient to effect the conversion of the Notes and exercise of this Warrant and the other Warrants then outstanding;
provided that the number of shares of Common Stock so reserved shall at no time be after the Issuance Date less than one hundred
percent (100%) of the number of shares of Common Stock for which the Notes, this Warrant and the other Warrants are at any time
convertible or exercisable (disregarding for this purpose any and all limitations of any kind on such conversion or exercise).
The Company shall, from time to time in accordance with the Delaware General Corporation Law, increase the authorized number of
shares of Common Stock or take other effective action if at any time the unissued number of authorized shares shall not be sufficient
to satisfy the Company’s obligations under this Section 3(h).

 

Section
4.           Transfer of Warrant.

 

a)         Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this
Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of
such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

d)         Transfer
Restrictions.  If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, provide to the Company an opinion of counsel selected by the
Holder or transferee and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of such transferred securities under the Securities
Act.

 

Section 5.          The
Holder shall have certain resale registration rights with respect to the Warrant Shares set forth in the Registration Rights Agreement
by and between the Company and the holders of all Warrants (the “Registration Agreement”).

 

    	 

    	 

    

 

Section 6.          Miscellaneous.

 

a)         No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof.

 

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

 

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

 

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

 

e)         Governing
Law, Jurisdiction, Etc. This Warrant shall be governed by and construed solely and exclusively under and pursuant to the laws
of the State of New York as applied to agreements among New York residents entered into and to be performed entirely within New
York. Each of the parties hereto expressly and irrevocably (i) agrees that any legal suit, action or proceeding arising out of
or relating to this Agreement will be instituted exclusively in either the New York State Supreme Court, County of New York, or
in the United States District Court for the Southern District of New York; (ii) waives any objection they may have now or hereafter
to the venue of any such suit, action or proceeding; and (iii) consents to the in personam jurisdiction of either
the New York State Supreme Court, County of New York, or the United States District Court for the Southern District of New York
in any such suit, action or proceeding. Each of the parties hereto further agrees to accept and acknowledge service of any and
all process which may be served in any such suit, action or proceeding in either the New York State Supreme Court, County of New
York, or in the United States District Court for the Southern District of New York and agree that service of process upon it mailed
by certified mail to (A) if to the Holder, the address appearing on the books and records of the Company, and (B) if to the Company,
the Company’s principal place of business, will be deemed in every respect effective service of process upon it, in any such
suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY. THE PARTY PREVAILING THEREIN
SHALL BE ENTITLED TO PAYMENT FROM THE OTHER PARTY HERETO OF ALL OF ITS REASONABLE COUNSEL FEES AND DISBURSEMENTS.

 

    	 

    	 

    

 

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

 

g)         Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all rights
hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient
to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

h)         Notices.
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing, shall
be given at the address or number designated in the Subscription Agreement, as may be amended pursuant to the terms therein, and
shall be effective (a) upon hand delivery, telecopy or facsimile (if delivered on a Business Day during normal business hours where
such notice is to be received), or the first (1st) Business Day following such delivery (if delivered other than on
a Business Day during normal business hours where such notice is to be received) or (b) on the second (2nd) Business
Day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt
of such mailing, whichever shall first occur.

 

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

 

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

 

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

 

l)         Amendment.
This Warrant may be modified or amended or the provisions hereof waived only with the written consent of the Company and the Holders
of 66 2/3% of the Warrants issued under the Subscription Agreement.

 

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

 

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

 

[Signature Page
Follows]

 

    	 

    	 

    

 

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

 

	 	CORMEDIX inc.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

NOTICE OF EXERCISE

 

To:         cormedix
inc.  

 

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

 

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

 

[  ] in lawful
money of the United States; or

 

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

 

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

_______________________________

 

The Warrant Shares shall be delivered to
the following DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

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

 

[SIGNATURE
OF HOLDER]

         

	Name of Investing Entity: 	 

	Signature of Authorized Signatory of Investing Entity:  	 

	Name of Authorized Signatory: 	 

	Title of Authorized Signatory: 	 

	Date: 	 

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute

this form and supply the required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED,
[____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Dated:  ______________, _______

 

	 	Holder’s Signature:	_____________________________	 
	 	 	 	 
	 	Holder’s Address:	_____________________________	 
	 	 	 	 
	 	 	_____________________________	 

 

	Signature Guaranteed: 	___________________________________________	 

 

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

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