Document:

Exhibit
10.5

 

Execution
Version

 

GUARANTY
OF OBLIGATIONS OF ICA-T

 

This
GUARANTY, dated as of May 15, 2017 (this “Guaranty”), is made by each of the undersigned (each a “Guarantor”,
and collectively, the “Guarantors”), in favor of GPB Debt Holdings II, LLC, a Delaware limited liability company,
in its capacity as collateral agent (in such capacity, the “Collateral Agent” as hereinafter further defined)
for the “Buyer” party to the Securities Purchase Agreement (each as defined below).

 

W
I T N E S S E T H:

 

WHEREAS,
Icagen, Inc., a Delaware corporation with its executive offices located at 4222 Emperor Blvd., Suite 350, Research Triangle Park,
Durham, NC, 27703 (the “Parent”), Icagen-T, Inc., a Delaware corporation and a wholly-owned Subsidiary of the
Parent with its executive offices located at 2090 E. Innovation Park Drive, Oro Valley, Arizona 85755 (“ICA-T”)
and GPB Debt Holdings II, LLC, in its capacity as an investor (the “Buyer”) are parties to the Securities Purchase
Agreement, dated as of May 15, 2017 (as amended, restated, extended, replaced or otherwise modified from time to time and together
with all amendments, supplements and exhibits thereto, collectively, the “Securities Purchase Agreement”),
pursuant to which, among other actions set forth therein, (i) ICA-T shall be required to sell an $8,000,000 aggregate principal
amount senior secured note of ICA-T (as such may be amended, restated, extended, replaced or otherwise modified from time to time
in accordance with the terms thereof, the “ICA-T Note”) and (ii) the Parent shall be required to sell a $2,000,000
aggregate principal amount aggregate principal amount senior secured note of the Parent (as such may be amended, restated, extended,
replaced or otherwise modified from time to time in accordance with the terms thereof, the “Parent Note” and
together with the ICA-T Note, collectively, the “Notes”) to the Buyer and the Buyer shall have the right to
purchase the Notes;

 

WHEREAS,
the Securities Purchase Agreement requires that the Guarantors execute and deliver to the Collateral Agent simultaneously with
the execution of the Securities Purchase Agreement (i) a guaranty guaranteeing all of the obligations of (A) ICA-T under the Securities
Purchase Agreement, the ICA-T Note and the other Transaction Documents (as defined below) and (B) the Parent under the ICA-T Note;
and (ii) a Security and Pledge Agreement, dated as of the date hereof, granting the Collateral Agent for the benefit of the Noteholders
a lien on and security interest in all of their assets and properties (the “Security Agreement”); and

 

WHEREAS,
each Guarantor has determined that the execution, delivery and performance of this Guaranty directly benefits, and is in the best
interest of, such Guarantor and that the Buyer would not have entered into the Securities Purchase Agreement and the other Transaction
Documents and/or taken the actions required of it under such documents including purchasing the ICA-T Note if the Guarantor had
executed and delivered this Guaranty.

 

NOW,
THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyer to perform under the Securities
Purchase Agreement, each Guarantor hereby agrees with the Buyer as follows:

 

    	 		 

     

    

 

NOW,
THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Buyer to perform under the Securities
Purchase Agreement, each Guarantor hereby agrees with the Buyer as follows:

 

SECTION
1. Definitions. Reference is hereby made to the Securities Purchase Agreement and the ICA-T Note for a statement of the
terms thereof. All terms used in this Guaranty and the recitals hereto which are defined in the Securities Purchase Agreement
or the ICA-T Note, and which are not otherwise defined herein shall have the same meanings herein as set forth therein. In addition,
the following terms when used in the Guaranty shall have the meanings set forth below:

 

“Bankruptcy
Code” means Chapter 11 of Title 11 of the United States Code, 11 U.S.C §§ 101 et seq. (or other applicable
bankruptcy, insolvency or similar laws).

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized
or required by law to remain closed.

 

“Buyer”
shall have the meaning set forth in the recitals hereto.

 

“Capital
Stock” means (i) with respect to any Person that is a corporation, any and all shares, interests, participations or
other equivalents (however designated and whether or not voting) of corporate stock (including, without limitation, any warrants,
options, rights or other securities exercisable or convertible into equity interests or securities of such Person), and (ii) with
respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person.

 

“Collateral”
means all assets and properties of the Parent and each other Guarantor, wherever located and whether now or hereafter existing
and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation,
the collateral described in Section 2 of the Security Agreement.

 

“Collateral
Agent” shall have the meaning set forth in the recitals hereto.

 

“Governmental
Authority” means any nation or government, any Federal, state, city, town, municipality, county, local, foreign or other
political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Guaranteed
Obligations” shall have the meaning set forth in Section 2 of this Guaranty.

 

“Guarantor”
or “Guarantors” shall have the meaning set forth in the first paragraph of this Guaranty.

 

“ICA-T
Note” shall have the meaning set forth in the recitals hereto.

 

“Indemnified
Party” shall have the meaning set forth in Section 13(a) of this Guaranty

 

“Insolvency
Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under
any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions,
or extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

 

    	 	2	 

     

    

 

“Noteholders”
means the Buyer and any other holder of all or any portion of the ICA-T Note.

 

“Obligations”
shall have the meaning set forth in Section 3 of the Security Agreement.

 

“Other
Taxes” shall have the meaning set forth in Section 12(a)(iv) of this Guaranty.

 

“Paid
in Full” or “Payment in Full” means the indefeasible payment in full in cash (and/or through the issuance
of Parent Common Stock (as defined in the ICA-T Note) but solely to the extent, in accordance with and pursuant to the terms of
the ICA-T Note) of all of the Guaranteed Obligations.

 

“Parent”
shall have the meaning set forth in the recitals hereto.

 

“Person”
means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated
organization, joint venture or other enterprise or entity or Governmental Authority.

 

“Securities
Purchase Agreement” shall have the meaning set forth in the recitals hereto.

 

“Security
Agreement” shall have the meaning set forth in the recitals hereto.

 

“Subsidiary”
means any Person in which a Guarantor directly or indirectly (i) owns a majority of the outstanding Capital Stock, voting
stock or holds any equity or similar interest of such Person including, but not limited to, any Subsidiary of ICA-T or (ii) controls
or operates a substantial portion of the business, operations or administration of such Person including, but not limited to,
any Subsidiary of ICA-T, and all of the foregoing, collectively, “Subsidiaries”.

 

“Taxes”
shall have the meaning set forth in Section 12(a) of this Guaranty.

 

“Transaction
Party” means the Parent, ICA-T and each other Guarantor, collectively, “Transaction Parties”.

 

SECTION
2. Guaranty.

 

(a)       The
Guarantors, jointly and severally, hereby unconditionally and irrevocably, guaranty to the Collateral Agent, for the benefit of
the Collateral Agent, the Buyer and any other Noteholder the punctual payment, as and when due and payable, by stated maturity,
acceleration or otherwise, of all Obligations of including, without limitation, all interest, make-whole, redemption and other
amounts that accrue after the commencement of any Insolvency Proceeding of ICA-T or any Guarantor, whether or not the payment
of such principal, interest, make-whole, redemption and/or other amounts are enforceable or are allowable in such Insolvency Proceeding,
and all fees, Late Charges (as defined in the ICA-T Note), interest, premiums, penalties, causes of actions, costs, commissions,
expense reimbursements, indemnifications and all other amounts due or to become due under the ICA-T Note and the other Transaction
Documents and (all of the foregoing collectively being the “Guaranteed Obligations”), and agree to pay any
and all costs and expenses (including reasonable and documented counsel fees and expenses) incurred by the Collateral Agent in
enforcing any rights under this Guaranty or any other Transaction Document. Without limiting the generality of the foregoing,
each Guarantor’s liability hereunder shall extend to all amounts that constitute part of the Guaranteed Obligations and
would be owed by ICA-T to the Collateral Agent or the Buyer under the Securities Purchase Agreement, the ICA-T Note and any other
Transaction Document but for the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding
involving any Transaction Party.

 

    	 	3	 

     

    

 

(b)       Each
Guarantor, and by its acceptance of this Guaranty, the Collateral Agent and the Buyer, hereby confirms that it is the intention
of all such Persons that this Guaranty and the Guaranteed Obligations of each Guarantor hereunder not constitute a fraudulent
transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer
Act or any similar foreign, federal, provincial, state, or other applicable law to the extent applicable to this Guaranty and
the Guaranteed Obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Collateral Agent, the Buyer
and the Guarantors hereby irrevocably agree that the Guaranteed Obligations of each Guarantor under this Guaranty at any time
shall be limited to the maximum amount as will result in the Guaranteed Obligations of such Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance.

 

SECTION
3. Guaranty Absolute; Continuing Guaranty; Assignments.

 

(a)       The
Guarantors, jointly and severally, guaranty that the Guaranteed Obligations will be paid strictly in accordance with the terms
of the ICA-T Note and the other Transaction Documents, regardless of any law, regulation or order now or hereafter in effect in
any jurisdiction affecting any of such terms or the rights of the Collateral Agent, the Buyer and/or any other Noteholder with
respect thereto. The obligations of each Guarantor under this Guaranty are independent of the Guaranteed Obligations, and a separate
action or actions may be brought and prosecuted against any Guarantor to enforce such obligations, irrespective of whether any
action is brought against any Transaction Party or whether any Transaction Party is joined in any such action or actions. The
liability of any Guarantor under this Guaranty shall be as a primary obligor (and not merely as a surety) and shall be irrevocable,
absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives, to the maximum extent permitted by law,
any defenses it may now or hereafter have in any way relating to, any or all of the following:

 

(i)         any
lack of validity or enforceability of the ICA-T Note and/or any other Transaction Document;

 

(ii)        any
change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other
amendment or waiver of or any consent to departure from any Transaction Document, including, without limitation, any increase
in the Guaranteed Obligations resulting from the extension of additional credit to any Transaction Party or extension of the maturity
of any Guaranteed Obligations or otherwise;

 

(iii)       any
taking, exchange, release or non-perfection of any Collateral;

 

    	 	4	 

     

    

 

(iv)       any
taking, release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;

 

(v)        any
change, restructuring or termination of the corporate, limited liability company or partnership structure or existence of any
Transaction Party;

 

(vi)       any
manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations,
or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations
or any other Obligations of any Transaction Party under the Transaction Documents or any other assets of any Transaction Party
or any of its Subsidiaries;

 

(vii)      any
failure of the Collateral Agent, the Buyer and/or any other Noteholder to disclose to any Transaction Party any information relating
to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction
Party now or hereafter known to the Collateral Agent, the Buyer and/or any other Noteholder (each Guarantor waiving any duty on
the part of the Collateral Agent, the Buyer and/or any other Noteholder to disclose such information);

 

(viii)     taking
any action in furtherance of the release of any Guarantor or any other Person that is liable for the Obligations from all or any
part of any liability arising under or in connection with any Transaction Document without the prior written consent of the Collateral
Agent; or

 

(ix)       any
other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation
by the Collateral Agent, the Buyer and/or any other Noteholder that might otherwise constitute a defense available to, or a discharge
of, any Transaction Party or any other guarantor or surety.

 

(b)       This
Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by the Collateral Agent, the Buyer, any other Noteholder and/or any other
Person upon the insolvency, bankruptcy or reorganization of any Transaction Party or otherwise, all as though such payment had
not been made.

 

(c)       This
Guaranty is a continuing guaranty and shall (i) remain in full force and effect until Payment in Full of the Guaranteed Obligations
(other than inchoate indemnity obligations) and shall not terminate for any reason prior to the Maturity Date of the ICA-T Note
(other than Payment in Full of the Guaranteed Obligations), and (ii) be binding upon each Guarantor and its respective successors
and assigns. This Guaranty shall inure to the benefit of and be enforceable by the Collateral Agent, the Buyer and/or any other
Noteholder and their respective successors, and permitted pledgees, transferees and assigns. Without limiting the generality of
the foregoing sentence, the Collateral Agent, the Buyer and/or any other Noteholder may pledge, assign or otherwise transfer all
or any portion of its rights, remedies and obligations under and subject to the terms of any Transaction Document to any other
Person [other than to the Buyer Affiliate] [(as defined in the Securities Purchase Agreement)] and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to the Collateral Agent, the Buyer and/or any other Noteholder
(as applicable) herein or otherwise, in each case as provided in the Securities Purchase Agreement or such other Transaction Document.

 

    	 	5	 

     

    

 

SECTION
4. Waivers. To the extent permitted by applicable law, each Guarantor hereby waives promptness, diligence, protest, notice
of acceptance and any other notice or formality of any kind with respect to any of the Guaranteed Obligations and this Guaranty
and any requirement that the Collateral Agent exhaust any right or take any action against any Transaction Party or any other
Person or any Collateral. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated herein and that the waiver set forth in this Section 4 is knowingly made in contemplation of such benefits.
The Guarantors hereby waive any right to revoke this Guaranty, and acknowledge that this Guaranty is continuing in nature and
applies to all Guaranteed Obligations, whether existing now or in the future. Without limiting the foregoing, to the extent permitted
by applicable law, each Guarantor hereby unconditionally and irrevocably waives (a) any defense arising by reason of any claim
or defense based upon an election of remedies by the Collateral Agent or the Buyer that in any manner impairs, reduces, releases
or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor
or other rights of such Guarantor to proceed against any of the other Transaction Parties, any other guarantor or any other Person
or any Collateral, and (b) any defense based on any right of set-off or counterclaim against or in respect of the Guaranteed Obligations
of such Guarantor hereunder. Each Guarantor hereby unconditionally and irrevocably waives any duty on the part of the Collateral
Agent, the Buyer and/or any other Noteholder to disclose to such Guarantor any matter, fact or thing relating to the business,
condition (financial or otherwise), operations, performance, properties or prospects of any other Transaction Party or [any of
its Subsidiaries] now or hereafter known by the Collateral Agent, the Buyer and/or any other Noteholder.

 

SECTION
5. Subrogation. No Guarantor may exercise any rights that it may now or hereafter acquire against any Transaction Party
or any other Guarantor and/or guarantor that arise from the existence, payment, performance or enforcement of any Guarantor’s
obligations under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification and any right to participate in any claim or remedy of the Collateral Agent, the Buyer and/or any other Noteholder
against any Transaction Party or any other guarantor or any Collateral, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law, including, without limitation, the right to take or receive from any Transaction Party
or any other guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security
solely on account of such claim, remedy or right, unless and until there has been Payment in Full of the Guaranteed Obligations.
If any amount shall be paid to a Guarantor in violation of the immediately preceding sentence at any time prior to Payment in
Full of the Guaranteed Obligations and all other amounts payable under this Guaranty, such amount shall be held in trust for the
benefit of the Collateral Agent and shall forthwith be paid to the Collateral Agent to be credited and applied to the Guaranteed
Obligations and all other amounts payable under this Guaranty, whether matured or un-matured, in accordance with the terms of
the Transaction Document, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty
thereafter arising. If (a) any Guarantor shall make payment to the Collateral Agent of all or any part of the Guaranteed Obligations,
and (b) there has been Payment in Full of the Guaranteed Obligations, the Collateral Agent will, at such Guarantor’s request
and expense, execute and deliver to such Guarantor appropriate documents to evidence payment in Full of the Guaranteed Obligations
without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of
an interest in the Guaranteed Obligations resulting from such payment by such Guarantor.

 

    	 	6	 

     

    

 

SECTION
6. Representations, Warranties and Covenants.

 

(a)       Each
Guarantor hereby represents and warrants as of the date first written above as follows:

 

(i)         such
Guarantor (A) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization as set forth on the signature pages hereto, (B) has all requisite
corporate, limited liability company or limited partnership power and authority to conduct its business as now conducted and as
presently contemplated and to execute, deliver and perform its obligations under this Guaranty and each other Transaction Document
to which such Guarantor is a party, and to consummate the transactions contemplated hereby and thereby and (C) is duly qualified
to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or
in which the transaction of its business makes such qualification necessary except where the failure to be so qualified (individually
or in the aggregate) would not result in a Material Adverse Effect.

 

(ii)        The
execution, delivery and performance by such Guarantor of this Guaranty and each other Transaction Document to which such Guarantor
is a party (A) have been duly authorized by all necessary corporate, limited liability company or limited partnership action,
(B) do not and will not contravene its charter, articles, certificate of formation or by-laws, its limited liability company or
operating agreement or its certificate of partnership or partnership agreement, as applicable, or any applicable law or any contractual
restriction binding on such Guarantor or its properties do not and will not result in or require the creation of any lien, security
interest or encumbrance (other than pursuant to any Transaction Document) upon or with respect to any of its properties, and (C)
do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any
material permit, license, authorization or approval applicable to it or its operations or any of its properties.

 

(iii)       No
authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or other Person is required
in connection with the due execution, delivery and performance by such Guarantor of this Guaranty or any of the other Transaction
Documents to which such Guarantor is a party (other than expressly provided for in any of the Transaction Documents).

 

    	 	7	 

     

    

 

(iv)       This
Guaranty has been duly executed and delivered by each Guarantor and is, and each of the other Transaction Documents to which such
Guarantor is or will be a party, when executed and delivered, will be, a legal, valid and binding obligation of such Guarantor,
enforceable against such Guarantor in accordance with its terms, except as may be limited by the Bankruptcy Code or other applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, suretyship or similar laws and equitable principles
(regardless of whether enforcement is sought in equity or at law).

 

(v)       There
is no pending or, to the knowledge of such Guarantor, threatened action, suit or proceeding against such Guarantor or to which
any of the properties of such Guarantor is subject, before any court or other Governmental Authority or any arbitrator that (A)
if adversely determined, could reasonably be expected to have a Material Adverse Effect or (B) relates to this Guaranty or any
of the other Transaction Documents to which such Guarantor is a party or any transaction contemplated hereby or thereby.

 

(vi)       Such
Guarantor (A) has read and understands the terms and conditions of the Securities Purchase Agreement and the other Transaction
Documents, and (B) now has and will continue to have independent means of obtaining information concerning the affairs, financial
condition and business of the Parent and the other Transaction Parties, and has no need of, or right to obtain from the Collateral
Agent or the Buyer, any credit or other information concerning the affairs, financial condition or business of the Parent or the
other Transaction Parties.

 

(vii)      There
are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived.

 

(b)       Each
Guarantor covenants and agrees that until Payment in Full of the Guaranteed Obligations, it will comply with each of the covenants
which are set forth in Section 4 of the Securities Purchase Agreement as if such Guarantor were a party thereto.

 

SECTION
7. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, the Collateral Agent, the
Buyer and/or any other Noteholder may, and is hereby authorized to, at any time and from time to time, without notice to the Guarantors
(any such notice being expressly waived by each Guarantor) and to the fullest extent permitted by law, set-off and apply any and
all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing
by the Collateral Agent, the Buyer and/or any other Noteholder to or for the credit or the account of any Guarantor against any
and all obligations of the Guarantors now or hereafter existing under this Guaranty or any other Transaction Document, irrespective
of whether or not the Collateral Agent, the Buyer and/or any other Noteholder shall have made any demand under this Guaranty or
any other Transaction Document and although such obligations may be contingent or unmatured. The Collateral Agent, the Buyer and/or
any other Noteholder agrees to notify the relevant Guarantor promptly after any such set-off and application made by the Collateral
Agent or the Buyer, provided that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of the Collateral Agent, the Buyer and/or any other Noteholder under this Section 7 are in addition to other
rights and remedies (including, without limitation, other rights of set-off) which the Collateral Agent, the Buyer and/or any
other Noteholder may have under this Guaranty or any other Transaction Document in law or otherwise.

 

    	 	8	 

     

    

 

SECTION
8. Limitation on Guaranteed Obligations.

 

(a)       Notwithstanding
any provision herein contained to the contrary, each Guarantor’s liability hereunder shall be limited to an amount not to
exceed as of any date of determination the greater of:

 

(i)         the
amount of all Guaranteed Obligations, plus interest thereon at the applicable Interest Rate as specified in the ICA-T Note; and

 

(ii)        the
amount which could be claimed by the Collateral Agent from any Guarantor under this Guaranty without rendering such claim voidable
or avoidable under the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance
Act or similar statute or common law after taking into account, among other things, Guarantor’s right of contribution and
indemnification.

 

(b)       Each
Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the amount of the liability of such
Guarantor hereunder without impairing the guaranty hereunder or affecting the rights and remedies of the Collateral Agent, the
Buyer and/or any other Noteholder hereunder or under applicable law.

 

(c)       No
payment made by ICA-T, any Guarantor, any other guarantor or any other Person or received or collected by the Collateral Agent,
the Buyer and/or any other Noteholder from ICA-T, any of the Guarantors, any other guarantor or any other Person by virtue of
any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in
payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of the Guaranteed
Obligations or any payment received or collected from such Guarantor in respect of the Guaranteed Obligations), remain liable
for the Guaranteed Obligations up to the maximum liability of such Guarantor hereunder until after all of the Guaranteed Obligations
and all other amounts payable under this Guaranty shall have been Paid in Full.

 

SECTION
9. Notices, Etc. Any notices, consents, waivers or other communications required or permitted to be given under the terms
of this Guaranty must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii)
upon receipt, when sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated
or, in the case of email with a read receipt generated and kept on file by the sending party); or (iii) one (1) Business Day after
deposit with a nationally recognized overnight courier service with next day delivery specified, in each case, properly addressed
to the party to receive the same. All notices and other communications provided for hereunder shall be sent, if to any Guarantor,
to the Parent’s address and/or facsimile number, or if to the Collateral Agent, the Buyer and/or any other Noteholder, to
it at its respective address and/or facsimile number, each as set forth in Section 9(f) of the Securities Purchase Agreement.

 

    	 	9	 

     

    

 

SECTION
10. Governing Law; Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of
this Guaranty shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim, obligation or defense that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under Section 9(f) of the Securities Purchase Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Collateral Agent or the Buyer from bringing suit or taking other legal action against any Guarantor in any other jurisdiction
to collect on a Guarantor’s obligations or to enforce a judgment or other court ruling in favor of the Collateral Agent
or the Buyer. 

 

SECTION
11. WAIVER OF JURY TRIAL, ETC. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING
OUT OF THIS GUARANTY, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

SECTION
12. Taxes.

 

(a)       All
payments made by any Guarantor hereunder or under any other Transaction Document shall be made in accordance with the terms of
the respective Transaction Document and shall be made without set-off, counterclaim, withholding, deduction or other defense.
Without limiting the foregoing, all such payments shall be made free and clear of and without deduction or withholding for any
present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding
taxes imposed on the net income of the Collateral Agent, the Buyer and/or any other Noteholder by the jurisdiction in which
the Collateral Agent, the Buyer and/or any other Noteholder is organized or where it has its principal lending office (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities, collectively or individually, “Taxes”).
If any Guarantor shall be required to deduct or to withhold any Taxes from or in respect of any amount payable hereunder or under
any other Transaction Document:

 

(i)         the
amount so payable shall be increased to the extent necessary so that after making all required deductions and withholdings (including
Taxes on amounts payable to the Collateral Agent or the Buyer pursuant to this sentence) the Collateral Agent or the Buyer receives
an amount equal to the sum it would have received had no such deduction or withholding been made,

 

    	 	10	 

     

    

 

(ii)        such
Guarantor shall make such deduction or withholding,

 

(iii)       such
Guarantor shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable
law, and

 

(iv)       as
promptly as possible thereafter, such Guarantor shall send the Collateral Agent or the Buyer an official receipt (or, if an official
receipt is not available, such other documentation as shall be satisfactory to the Collateral Agent, as the case may be) showing
payment. In addition, each Guarantor agrees to pay any present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies that arise from any payment made hereunder or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Guaranty or any other Transaction Document (collectively, “Other Taxes”).

 

(b)       Each
Guarantor hereby indemnifies and agrees to hold each Indemnified Party harmless from and against Taxes or Other Taxes (including,
without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 12) paid
by any Indemnified Party as a result of any payment made hereunder or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Guaranty or any other Transaction Document, and any liability (including penalties, interest
and expenses for nonpayment, late payment or otherwise) arising therefrom or with respect thereto, whether or not such Taxes or
Other Taxes were correctly or legally asserted so long as each Guarantor was provided with the right set forth above. This indemnification
shall be paid within thirty (30) days from the date on which the Collateral Agent or the Buyer makes written demand therefor,
which demand shall identify the nature and amount of such Taxes or Other Taxes.

 

(c)       If
any Guarantor fails to perform any of its obligations under this Section 12, such Guarantor shall indemnify the Collateral
Agent and the Buyer for any taxes, interest or penalties that may become payable as a result of any such failure. The obligations
of the Guarantors under this Section 12 shall survive the termination of this Guaranty and the payment of the Obligations
and all other amounts payable hereunder.

 

SECTION
13. Indemnification.

 

(a)       Without
limitation of any other obligations of any Guarantor or remedies of the Collateral Agent or the Buyer under this Guaranty or applicable
law, except to the extent resulting from such Indemnified Party’s gross negligence or willful misconduct, as determined
by a final judgment of a court of competent jurisdiction no longer subject to appeal, each Guarantor shall, to the fullest extent
permitted by law, indemnify, defend and save and hold harmless the Collateral Agent and the Buyer and each of their affiliates
and their respective officers, directors, members, managers, employees, agents and advisors (each, an “Indemnified Party”)
from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party in connection
with or as a result of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of any Transaction
Party enforceable against such Transaction Party in accordance with their terms.

 

    	 	11	 

     

    

 

(b)       Each
Guarantor hereby also agrees that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract,
tort or otherwise) or any fiduciary duty or obligation to any of the Guarantors or any of their respective affiliates or any of
their respective officers, directors, employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim
against any Indemnified Party on any theory of liability, for special, indirect, consequential, incidental or punitive damages
arising out of or otherwise relating to the facilities, the actual or proposed use of the proceeds of the advances, the Transaction
Documents or any of the transactions contemplated by the Transaction Documents.

 

SECTION
14. Miscellaneous.

 

(a)       Each
Guarantor will make each payment hereunder in lawful money of the United States of America and in immediately available funds
to the Collateral Agent or the Buyer, at such address specified by the Collateral Agent or the Buyer from time to time by notice
to the Guarantors.

 

(b)       No
amendment or waiver of any provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any
event be effective unless the same shall be in writing and signed by each Guarantor, the Collateral Agent and the Buyer, and then
such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

(c)       No
failure on the part of the Collateral Agent or the Buyer to exercise, and no delay in exercising, any right or remedy hereunder
or under any other Transaction Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right
hereunder or under any Transaction Document preclude any other or further exercise thereof or the exercise of any other right
or remedy. The rights and remedies of the Collateral Agent and the Buyer provided herein and in the other Transaction Documents
are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights and remedies of
the Collateral Agent and the Buyer under any Transaction Document against any party thereto are not conditional or contingent
on any attempt by the Collateral Agent or the Buyer to exercise any of their respective rights or remedies under any other Transaction
Document against such party or against any other Person.

 

(d)       If
any provision of this Guaranty or any Transaction Document is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Guaranty so long as this Guaranty as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

    	 	12	 

     

    

 

(e)       This
Guaranty is a continuing guaranty and shall (i) remain in full force and effect until Payment in Full of the Guaranteed Obligations
(other than inchoate indemnity obligations) and shall not terminate for any reason prior to the respective Maturity Date of the
ICA-T Note (other than Payment in Full of the Guaranteed Obligations) and (ii) be binding upon each Guarantor and its respective
successors and assigns. This Guaranty shall inure, together with all rights and remedies of the Collateral Agent hereunder, to
the benefit of and be enforceable by the Collateral Agent, the Buyer, and their respective successors, and permitted pledgees,
transferees and assigns. Without limiting the generality of the foregoing sentence, the Collateral Agent or the Buyer may pledge,
assign or otherwise transfer all or any portion of its rights and obligations under and subject to the terms of the Securities
Purchase Agreement or any other Transaction Document to any other Person in accordance with the terms thereof, and such other
Person shall thereupon become vested with all the benefits in respect thereof granted to the Collateral Agent or the Buyer (as
applicable) herein or otherwise, in each case as provided in the Securities Purchase Agreement or such Transaction Document. None
of the rights or obligations of any Guarantor hereunder may be assigned or otherwise transferred without the prior written consent
of the Buyer.

 

(f)       This
Guaranty and the other Transaction Documents reflect the entire understanding of the transaction contemplated hereby and shall
not be contradicted or qualified by any other agreement, oral or written, entered into before the date hereof.

 

(g)       The
headings of this Guaranty are for convenience of reference and shall not form part of, or affect the interpretation of, this Guaranty.
 Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine,
neuter, singular and plural forms thereof.  The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.”  The terms
“herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead
of just the provision in which they are found.

 

SECTION
15. Currency Indemnity.

 

If,
for the purpose of obtaining or enforcing judgment against Guarantor in any court in any jurisdiction, it becomes necessary to
convert into any other currency (such other currency being hereinafter in this Section 15 referred to as the “Judgment
Currency”) an amount due under this Guaranty in any currency (the “Obligation Currency”) other than
the Judgment Currency, the conversion shall be made at the rate of exchange prevailing on the Business Day immediately preceding
(a) the date of actual payment of the amount due, in the case of any proceeding in the courts of courts of the jurisdiction that
will give effect to such conversion being made on such date, or (b) the date on which the judgment is given, in the case of any
proceeding in the courts of any other jurisdiction (the applicable date as of which such conversion is made pursuant to this Section
15 being hereinafter in this Section 15 referred to as the “Judgment Conversion Date”).

 

If,
in the case of any proceeding in the court of any jurisdiction referred to in the preceding paragraph, there is a change in the
rate of exchange prevailing between the Judgment Conversion Date and the date of actual receipt of the amount due in immediately
available funds, the Guarantors shall pay such additional amount (if any, but in any event not a lesser amount) as may be necessary
to ensure that the amount actually received in the Judgment Currency, when converted at the rate of exchange prevailing on the
date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of’
the Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion
Date. Any amount due from the Guarantors under this Section 15 shall be due as a separate debt and shall not be affected
by judgment being obtained for any other amounts due under or in respect of this Guaranty.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	 	13	 

     

    

 

IN
WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed by its respective duly authorized officer, as of the date
first above written.

	 	 	 
	 	GUARANTORS:
	 	 	 
	 	ICAGEN,
    INC.,
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
Richard Cunningham
	 	 	Name:
    Richard Cunningham
	 	 	Title:
    Chief Executive Officer
	 	 	 
	 	ICAGEN
    CORP (FORMERLY KNOWN AS XRPRO CORP.)., a Nevada corporation
	 	 	 
	 	By:	/s/
    Richard Cunningham
	 	 	Name:
    Richard Cunningham
	 	 	Title:
    Chief Executive Officer
	 	 	 
	 	CALDERA
    DISCOVERY, INC.,
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
    Richard Cunningham
	 	 	Name:
    Richard Cunningham
	 	 	Title:
    Chief Executive Officer
	 	 	 
	 	XRPRO
    SCIENCES, INC.,
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
Richard Cunningham
	 	 	Name:
    Richard Cunningham
	 	 	Title:
    Chief Executive Officer

	 	 	 
	ACCEPTED
    BY:	 
	 	 	 
	GPB
    DEBT HOLDINGS II, LLC,	 
	as
    Collateral Agent	 
	 	 	 
	By:	/s/
David Gentile	 
	 	Name:
    David     Gentile	 
	 	Title:
    Manager	 

 

 

14Exhibit 10.6

 

 Execution Version

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT OF 1933, AS AMENDED, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION
OF COUNSEL TO THE HOLDER OR THE COMPANY TO SUCH EFFECT, , THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THESE SECURITIES SHOULD CAREFULLY REVIEW THE TERMS HEREIN. THE NUMBER
OF SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT
TO SECTION 1(a) OF THIS WARRANT.

 

ICAGEN, INC.         

 

Warrant To Purchase Common Stock

 

Warrant No.: ICGI-GPB-1

 

Issuance Date: May 15, 2017 (“Issuance
Date”)

 

Icagen, Inc., a Delaware
corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, GPB Debt Holdings II, LLC, the registered holder hereof or its permitted assigns (the “Holder”),
is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then
in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange,
transfer or replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date, but not
after 11:59 p.m., New York time, on the Expiration Date (as defined below), 857,143 (subject to adjustment as provided
herein) fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant Shares”, and such
number of Warrant Shares, the “Warrant Number”). Except as otherwise defined herein, capitalized terms in this
Warrant shall have the meanings set forth in Section 17. This Warrant was issued pursuant to Section 1 of that certain
Securities Purchase Agreement, dated as of May 15, 2017 (the “Subscription Date”), by and among the Company,
Icagen-T, Inc., a Delaware corporation, and the Holder, as amended from time to time (the “Securities Purchase Agreement”).

 

     

     

    

 

1.   EXERCISE
OF WARRANT.

 

(a)          Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date (an “Exercise Date”),
in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. Within one (1) Trading
Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the
Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so
exercised (the “Aggregate Exercise Price”) in cash, check or via wire transfer of immediately available funds
if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant to a Cashless Exercise (as
defined in Section 1(d)). The Holder shall not be required to deliver the original of this Warrant in order to effect an
exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have
the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase
the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares
shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with
the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has received an Exercise Notice,
the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of such Exercise Notice,
in the form attached hereto as Exhibit B, to the Holder and the Company’s transfer agent (the “Transfer
Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process such Exercise Notice in
accordance with the terms herein. On or before the third (3rd) Trading Day following the date on which the Company has
received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation
for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), (the “Share Delivery
Date”), the Company shall; provided that the Aggregate Exercise Price has been delivered in the time period set forth
above, unless the Aggregate Exercise Price is paid through a cashless exercise (X) provided that the Transfer Agent is participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, credit such aggregate number
of shares of Common Stock to which the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal
at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, upon
the request of the Holder, issue and deliver (via reputable overnight courier) to the address as specified in the Exercise Notice,
a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder
shall be entitled pursuant to such exercise. Upon delivery of an Exercise Notice, the Holder shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective
of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing
such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section
1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant
Shares being acquired upon an exercise and upon surrender of this Warrant to the Company by the Holder, then, at the request of
the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and
at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing
the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued
upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest
whole number. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without
limitation, fees and expenses of the Transfer Agent) that may be payable with respect to the issuance and delivery of Warrant Shares
upon exercise of this Warrant.

 

    	 	2	 

     

    

 

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

 

(c)          Company’s
Failure to Timely Deliver Securities. If the Company fails on or prior to the Share Delivery Deadline to issue and deliver
to the Holder (or its designee) a certificate and register such shares of Common Stock on the Company’s share register or,
credit the balance account of the Holder or the Holder’s designee with DTC for the number of shares of Common Stock to which
the Holder is entitled upon the Holder’s exercise hereunder (as the case may be pursuant to this Section 1(c) and/or
pursuant to the Company’s obligation pursuant to clause (ii) below) and if on or after such Share Delivery Deadline the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder
of all or any portion of the number of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving
from the Company (a “Buy-In”), then, in addition to all other remedies available to the Holder, the Company
shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or
on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and
deliver such certificate (and to issue such shares of Common Stock) or credit the balance account of such Holder or such Holder’s
designee, as applicable, with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder’s exercise
hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so
issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the balance account of
such Holder or such Holder’s designee, as applicable, with DTC for the number of Warrant Shares to which the Holder is entitled
upon the Holder’s exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if
any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price
or Closing Bid Price (as the case may be) of the Common Stock on any Trading Day during the period commencing on the date of the
applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii) (the “Buy-In Payment
Amount”). Nothing shall limit the 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 shares of Common Stock (or to electronically deliver such shares of Common
Stock) upon the exercise of this Warrant as required pursuant to the terms hereof.

 

    	 	3	 

     

    

 

(d)          Cashless
Exercise. If the Company is a Trading Issuer and at the applicable time an effective registration statement is not available
for the issuance of Warrant Shares and notwithstanding anything contained herein to the contrary (other than Section 1(f)
below), the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment
otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the “Net Number” of Warrant Shares determined according to the following formula
(a “Cashless Exercise”):

 

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

D

For purposes of the
foregoing formula:

 

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

 

B = the lowest Closing Bid Price
or Closing Sale Price (as the case may be) during the ten (10) consecutive Trading Days ending at the close of business on the
Principal Market immediately prior to the time of exercise as set forth in the applicable Exercise Notice.

 

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

 

D = as applicable: the Closing
Sale Price or Closing Bid Price (as the case may be) of the Common Stock on the Trading Day immediately preceding the date of the
applicable Exercise Notice.

 

For purposes of Rule
144(d) promulgated under the 1933 Act, as in effect on the Subscription Date, it is intended that the Warrant Shares issued in
a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be
deemed to have commenced, on the date this Warrant was originally issued pursuant to the Securities Purchase Agreement.

 

(e)          Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares
to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are
not disputed and resolve such dispute in accordance with Section 13.

 

    	 	4	 

     

    

 

(f)          Limitations
on Exercises. The Company shall not effect the exercise of any portion of this Warrant, and the Holder shall not have the right
to exercise any portion of this Warrant, pursuant to the terms and conditions of this Warrant and any such exercise shall be null
and void and treated as if never made, to the extent that after giving effect to such exercise, the Holder together with the other
Attribution Parties collectively would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the
shares of Common Stock outstanding immediately after giving effect to such exercise, such determination by the Company to be based
solely upon the Reported Outstanding Share Number (as defined below) and the number of shares disclosed to the Company by Holder
as being beneficially owned by the Holder and the other Attribution Parties. For purposes of the foregoing sentence, the aggregate
number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall include the number of
shares of Common Stock held by the Holder and all other Attribution Parties plus the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares
of Common Stock which would be issuable upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned
by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion
of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred stock or
warrants, including, without limitation, the Warrant) beneficially owned by the Holder or any other Attribution Party subject to
a limitation on conversion or exercise analogous to the limitation contained in this Section 1(f)(i). For purposes of this
Section 1(f)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes
of determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without
exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public
filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice by
the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported
Outstanding Share Number”). If the Company receives an Exercise Notice from the Holder at a time when the actual number
of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder
in writing of the number of shares of Common Stock then outstanding and, to the extent that such Exercise Notice would otherwise
cause the Holder’s beneficial ownership, as determined pursuant to this Section 1(f)(i), to exceed the Maximum Percentage,
the Holder must notify the Company of a reduced number of Warrant Shares to be acquired pursuant to such Exercise Notice (the number
of shares by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable,
the Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason at any time,
upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or
by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of this Warrant results in the Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which
the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the
“Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall
not have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess
Shares has been deemed null and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess
Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective
until the sixty-first (61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not
in excess of 9.99% as specified in such notice; provided that any such increase in the Maximum Percentage will not be effective
until the sixty-first (61st) day after such notice is delivered to the Company. For purposes of clarity, the shares of Common Stock
issuable pursuant to the terms of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned
by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to
exercise this Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph
with respect to any subsequent determination of exercisability. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 1(f)(i) to the extent necessary to correct
this paragraph or any portion of this paragraph which may be defective or inconsistent with the intended beneficial ownership limitation
contained in this Section 1(f)(i) or to make changes or supplements necessary or desirable to properly give effect to such
limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor holder of this Warrant.

 

    	 	5	 

     

    

 

 

(g)          Reservation
of Shares.

 

(i)          Required
Reserve Amount. Commencing on the Closing Date and continuing as long as this Warrant remains outstanding (the “Share
Reserve Period”), the Company shall at all times keep reserved for issuance under this Warrant at least 200% of the maximum
number of shares of Common Stock as shall from time to time be necessary to satisfy the Company’s obligation to issue shares
of Common Stock under this Warrant (without regard to any limitations on exercise and assuming for purposes of this Section
1(g) that the Holder does not exercise any portion of this Warrant on a Cashless Basis and in any event does not exercise this
Warrant until the last calendar date prior to the Expiration Date)  (the “Required Reserve Amount”); provided
that at no time shall the number of shares of Common Stock reserved pursuant to this Section 1(g)(i) be reduced.

 

(ii)         Insufficient
Authorized Shares. If, notwithstanding Section 1(g)(i) above, and not in limitation thereof, at any time while this
Warrants remains outstanding, the Company does not have a sufficient number of authorized and unreserved shares of Common Stock
to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized Share Failure”), then the Company
shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for this Warrant. Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety
(90) days after the occurrence of such Authorized Share Failure, the Company shall either (i) hold a meeting of its stockholders
for the approval of an increase in the number of authorized shares of Common Stock, or (ii) have cured the Authorized Share Failure
by, among other required items, obtaining a written consent of the required percentage of holders of shares Common Stock for the
required increase in authorized shares and had taken any and all other such action necessary to rectify the Authorized Share Failure
including, but not limited to, providing the non-consenting stockholders with an information statement and a Form 14(C) and filed
with the SEC such Form 14(C). In connection with such meeting as set forth in (i) above, the Company shall provide each stockholder
with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized
shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. In
the event that the Company is prohibited from issuing shares of Common Stock upon an exercise of this Warrant due to the failure
by the Company to have sufficient shares of Common Stock available out of the authorized but unissued shares of Common Stock (such
unavailable number of shares of Common Stock, the “Authorization Failure Shares”), in lieu of delivering such
Authorization Failure Shares to the Holder, the Company shall pay cash in exchange for the cancellation of such portion of this
Warrant exercisable into such Authorized Failure Shares at a price equal to the sum of (i) the product of (x) such number of Authorization
Failure Shares and (y) the greatest Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock on any Trading
Day during the period commencing on the date the Holder delivers the applicable Exercise Notice with respect to such Authorization
Failure Shares to the Company and ending on the date of such issuance and payment under this Section 1(g) (or the Exercise
Price if the Company is not then a Trading Issuer); and (ii) to the extent the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of Authorization Failure Shares, any Buy-In
Payment Amount, brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith.
Nothing contained in this Section 1(g) shall limit any obligations of the Company under any provision of the Securities
Purchase Agreement. 

 

    	 	6	 

     

    

 

2.    ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES; RESET OF EXERCISE PRICE. The Exercise Price and number of Warrant Shares issuable
upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)          Stock
Dividends and Splits. Without limiting any provision of Section 2(b) or Section 4, if the Company, at any time
on or after the Subscription Date, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock
or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by
any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock
into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its
then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and
of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment
made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph
shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment
under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise
Price shall be adjusted appropriately to reflect such event.

 

    	 	7	 

     

    

 

(b)          Adjustment
Upon Issuance of Shares of Common Stock Prior to the Closing Date of a Qualifying PO. In addition to and not in limitation
of any other rights of the Holder under this Warrant including, but not limited to, Section 2 hereof and/or any other Transaction
Document, if, at any time while this Note is outstanding and whenever on or after the Subscription Date but prior to the closing
date of a Qualifying PO (as defined below), the Company, the Parent and/or any Subsidiary (as defined in the Securities Purchase
Agreement), in any manner sells or grants any option to purchase, issues or sells or grants any right to reprice, and/or otherwise
sells, disposes of and/or issues any shares of Common Stock or Common Stock Equivalents (as defined below) (including upon conversion,
exercise or otherwise) entitling any Person to acquire shares of Common Stock at a price per share of Common Stock that is lower
than the then Exercise Price (such lower price, the “New Issuance Price” and each such issuance, a “Dilutive
Issuance” and collectively, “Dilutive Issuances”), (if the holder of shares of Common Stock or Common
Stock Equivalents so issued and/or any holder of Common Stock and/or Common Stock Equivalents as of the Subscription Date or issued
subsequent thereto, shall at any time, whether by amendment, supplement, operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise be entitled under the terms of any such instruments to receive shares
of Common Stock at a price per share that is lower than the Exercise Price, such issuance shall be deemed to have occurred for
less than the Exercise Price on such date of the Dilutive Issuance), then the then Exercise Price shall be reduced to equal the
New Issuance Price.  For purposes of clarification, if the Company, the Parent and/or any Subsidiary issues, sells and/or
otherwise disposes of any shares of Common Stock at a price less than the then Exercise Price, the then Exercise Price shall immediately
be reduced to the New Issuance Price on the date of such Dilutive Issuance. All adjustments provided for in this Section 2(b)
shall be made whenever any such Common Stock or Common Stock Equivalents are issued. Notwithstanding anything to the contrary in
the foregoing, if a Dilutive Issuance consists of the issuance and/or sale of both Common Stock and Common Stock Equivalents or
two or more Common Stock Equivalents as units (each, a “Share and/or a CSE Issuance”), in determining the value
of the component parts of the unit issued and/or sold in a Share and/or a CSE Issuance no value will be attributed to Common Stock
Equivalents and the New Issuance Price as a result thereof will be the lowest of (i) the lowest purchase price per unit, (ii) the
lowest conversion, exercise and/or exchange price to acquire one (1) share of Common Stock of any Common Stock Equivalent included
in a unit if a unit also includes shares of Common Stock, and (iii) if no shares of Common Stock are included in a unit, the lowest
exercise, conversion and/or exchange price to acquire one (1) share of Common Stock of the Common Stock Equivalents comprising
a unit, such lowest price of (i)-(iii) shall be the “Lowest Price;” provided, however, a Dilutive
Issuance and a resulting New Issuance Price relating to a Share and/or a CSE Issuance shall only occur if the Lowest Price relating
to a Share and/or a CSE Issuance is lower than the then Exercise Price. Notwithstanding the foregoing, no adjustment will be made
under this Section 2(b) in respect of an Exempt Issuance.   The Company shall notify the Holder in writing, no later
than the first Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 2(b),
indicating therein the applicable Lowest Price, issuance price, reset price, exchange price, conversion price and Exercise Price
and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether
or not the Parent provides a Dilutive Issuance Notice upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive
a number of shares of Common Stock based upon the New Issuance Price on or after the date of such Dilutive Issuance, regardless
of whether the Holder accurately refers to the New Issuance Price in any Exercise Notice. For purposes hereof, the term “Common
Stock Equivalents” means any securities (as defined under the 1933 Act) including, but not limited to, any Options and/or
Convertible Securities of the Company, the Parent and/or any Subsidiaries which would entitle the Holder thereof to acquire at
any time shares of Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the Holder thereof to receive, shares
of Parent Common Stock. If the Parent, the Company and/or any Subsidiary enters into a Variable Rate
Transaction (as defined in the Securities Purchase Agreement) despite the prohibition set forth in the Securities Purchase Agreement,
the Parent shall be deemed to have issued shares of Common Stock or Common Stock Equivalents at the lowest possible price at which
such securities may be converted, exchanged and/or exercised under the terms of such Variable Rate Transaction.

 

    	 	8	 

     

    

 

(c)          Calculations.
All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as
applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for
the account of the Company, and the disposition of any such shares shall be considered an issuance or sale of Common Stock.

 

(d)          Voluntary
Adjustment By Company. The Company may at any time during the term of this Warrant, with the prior written consent of the Holders,
reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of
the Company.

 

(e)          Certain
Reset Right Upon a Qualifying PO. If on or after the Subscription Date, the Company consummates a Qualifying PO, and on
the closing date of such Qualifying PO, the then Exercise Price in effect on such date is greater than the Qualifying PO Per Share
Sale Price (as defined below), then the Exercise Price shall automatically and without any action by the Company or otherwise,
be reset to the Qualifying PO Per Share Sale Price.  A “Qualifying PO Per Share Sale Price” shall
be as applicable (i) the gross purchase price a share of Common Stock is sold to the public in the Qualifying PO if only shares
of Common Stock are sold to the public in such Qualifying PO, (ii) the gross purchase price a unit consisting of shares of Common
Stock and Common Stock Equivalents is sold to the public in the Qualifying PO, or (iii) the sum equal to the gross purchase price
of (a) one (1) share of Common Stock, and (b) a Common Stock Equivalent if such are sold to each purchaser in a Qualifying PO but
not in a unit.

 

3.    RIGHTS
UPON DISTRIBUTION OF ASSETS. In addition to any adjustments provided for elsewhere in this Warrant including, but not limited
to, pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or
rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property, options, evidence of indebtedness or any other assets
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
to be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date
on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such Distribution (provided, however, that to the extent that the
Holder’s right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (and shall not
be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership)
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time or
times, if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage,
at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution
or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    	 	9	 

     

    

 

4.          PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)          Purchase
Rights. In addition to any adjustments provided for elsewhere in this Warrant including, but not limited to, pursuant to Section
2 above, if at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”),
 then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights , the aggregate Purchase Rights
which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the
Maximum Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the
grant, issuance or sale of such Purchase Rights (provided, however, that to the extent that the Holder’s right to participate
in any such Purchase Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then
the Holder shall not be entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial
ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such
Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until such time or times, if ever, as its
right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time
or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right
or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    	 	10	 

     

    

 

(b)          Fundamental
Transactions. Subject to the rights of (i) the Company or a Successor Entity (as the case may be) to redeem this Warrant pursuant
to Section 4(c)(i), and (ii) the Holder to require the redemption of this Warrant by the Company or the Successor Entity
(as the case may be) pursuant to Section 4(c)(ii), the Company shall not enter into or be party to a Fundamental Transaction
unless (i) the Successor Entity assumes in writing all of the obligations of the Company under this Warrant and the other Transaction
Documents (as defined in the Securities Purchase Agreement) in accordance with the provisions of this Section 4(b) pursuant
to written agreements in form and substance satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction,
including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for
a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and
with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the
relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock,
such adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting the economic
value of this Warrant immediately prior to the consummation of such Fundamental Transaction); and (ii) the Successor Entity (including
the Parent Entity) is a publicly traded corporation whose shares of common stock are quoted or listed on an Eligible Market. Upon
the closing on the closing date of a Fundamental Transaction (an “FT Closing Date”), and subject to the rights
of (A) the Company or a Successor Entity (as the case may be) to redeem this Warrant pursuant to Section 4(c)(i), and (B)
the Company or the Successor Entity including the Parent Entity (as the case may be) to redeem this Warrant pursuant to a demand
of the Holder pursuant to Section 4(c)(ii), the Successor Entity shall succeed to, and be substituted for (so that from
and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with
the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction,
unless there is a redemption under 4(c)(i) or 4(c)(ii), the Successor Entity shall deliver to the Holder confirmation that there
shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in
lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under
Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant
prior to the applicable Fundamental Transaction, such shares of publicly traded common stock (or its equivalent) of the Successor
Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable
Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard
to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. In addition
to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to
which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares
of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder
will thereafter have the right to receive upon any full or partial (as proportionately determined) exercise of this Warrant at
any time (i) prior to the FT Closing Date, and/or (ii) at any time following a FT Closing Date if no redemption occurred on the
FT Closing Date unless there is a redemption under Section 4(c)(i) or Section 4(c)(ii) but prior to the Expiration
Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property (except such items still issuable
under Sections 3 and 4(a) above, which shall continue to be receivable thereafter) issuable upon the exercise of the Warrant
prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including
warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the
applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction
(without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be
in a form and substance reasonably satisfactory to the Holder; provided, however, notwithstanding anything to the
contrary or elsewhere, if the Company or the Successor Entity, including the Parent Entity, elects to redeem this Warrant pursuant
to Section 4(c)(i) and complies with such related provisions and if on the FT Closing Date this Warrant or any portion of
this Warrant is outstanding, the Company shall have the right to redeem this Warrant as provided in Section 4(c)(i) below.

 

    	 	11	 

     

    

 

(c)          Redemption
of Warrant in Certain Events.

 

(i)          Company/Successor
Entity Fundamental Redemption Right. Subject to the rights of the Holder pursuant to Section 4(c)(ii) and notwithstanding
anything to the contrary provided in Section 4(b) above, the Company or any Successor Entity (as the case may be) shall
have the right on a FT Closing Date to redeem this Warrant provided the Company or the Successor Entity including a Parent Entity
(as the case may be) provides to the Holder written notice of such election pursuant to Section 8 hereof, and paying to
the Holder in full, in cash on the FT Closing Date the Black Scholes Value or the Event of Default Black Scholes Value (if on the
FT Closing Date an Event of Default (as defined in the Notes) has occurred and is continuing), the “Warrant Redemption
Price”, in accordance with and pursuant to this Section 4(c)(i), and on such FT Closing Date the Company or the
Successor Entity including a Parent Entity (as the case may be) shall also provide written notice to the Holder of the payment
of the Warrant Redemption Price, the amount thereof and the calculations as to how such Warrant Redemption Price was determined
(including whether such was the Black Scholes Value or the Event of Default Black Scholes Value). Notwithstanding that the Company
or the Successor Entity (as the case may be) has delivered notice of election to redeem this Warrant pursuant to this Section
4(c)(i) the Holder may nevertheless exercise this Warrant in whole or in part at any time and from time to time through and
including the last Trading Day prior to the FT Closing Date. If the Warrant Redemption Price is not received by the Holder in full,
in cash (by wire transfer or bank check) by 11:59 p.m. (New York City time) by the first (1st) Trading Day following
the FT Closing Date, the right of the Company or the Successor Entity (as the case may be) shall terminate with respect to that
Fundamental Change as shall all future redemption rights of the Company (including to have a Successor Entity do the same) to elect
to redeem this Warrant pursuant to Section 4(c)(i) or otherwise and the Holder shall have the same rights set forth in Section
4(b) it would have had but for the election of the Company pursuant to this Section 4(c)(i). The agreement governing
the Fundamental Transaction shall make provision for redemption of the Warrant by the Company or the Successor Entity and also
for if the Company or the Successor Entity (as the case may be) elects to redeem this Warrant pursuant to Section 4(c)(i)
but fails to timely honor all of their respective obligations pursuant to Section 4(c)(i).

 

    	 	12	 

     

    

 

(ii)         Mandatory
Fundamental Transaction Redemption at the Request of the Holder. Notwithstanding the provisions of Sections 4(b) and/or
4(c)(i), at the request of the Holder delivered at any time commencing on the earliest to occur of (x) the public disclosure
of any Fundamental Transaction, (y) the consummation of any Fundamental Transaction and (z) the Holder first becoming aware of
any Fundamental Transaction through the date that is thirty (30) days after the public disclosure of the consummation of such Fundamental
Transaction by the Company pursuant to a Current Report on Form 8-K filed with the SEC, the Company or the Successor Entity including
the Parent Entity (as the case may be) shall purchase this Warrant from the Holder on the date of such request by paying to the
Holder cash an amount equal to the Black Scholes Value (or the Event of Default Black Scholes Value if on the date of the required
redemption payment to the Holder, an Event of Default exists). Notwithstanding anything to the contrary contained herein, if the
FT Closing Date occurs prior to the foregoing thirty (30) day time period, the Company or Successor Entity (as the case may be)
may pay the Warrant Redemption Price on the FT Closing Date and thereafter, if all the redemption procedures required herein including
Section 8 are followed and the Warrant is redeemed in full, this Warrant shall terminate.

 

(iii)        Event
of Default Redemption. Notwithstanding Section 4(c)(i) and (ii) and Section 4(b) above, at the request of the
Holder delivered at any time after the occurrence of an Event of Default (as defined in the Notes and regardless of if the Notes
are no longer outstanding), the Company or the Successor Entity (as the case may be) shall purchase this Warrant from the Holder
on the date of such request by paying to the Holder cash in an amount equal to the Event of Default Black Scholes Value.

 

(d)          Application.
The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate
Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to
any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum
Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon
exercise of this Warrant (or any other warrant)).

 

5.    NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined
in the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good
faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder.
Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in effect, and (b) shall take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common
Stock upon the exercise of this Warrant. Notwithstanding anything herein to the contrary, if after the sixty (60) calendar day
anniversary of the Issuance Date, the Holder is not permitted to exercise this Warrant in full for any reason (other than pursuant
to restrictions set forth in Section 1(f) hereof), the Company shall use its best efforts to promptly remedy such failure,
including, without limitation, obtaining such consents or approvals as necessary to permit such exercise into shares of Common
Stock.

 

    	 	13	 

     

    

 

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

 

7.    REISSUANCE
OF WARRANTS.

 

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

 

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

 

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

 

    	 	14	 

     

    

 

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

 

8.    NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Warrant (other than the issuance of shares of Common Stock upon exercise in accordance with the
terms hereof), including in reasonable detail a description of such action and the reason therefor. Without limiting the generality
of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price
and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s), (ii)
at least ten (10) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend
or distribution upon the shares of Common Stock or (B) for determining rights to vote with respect to any Fundamental Transaction,
dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction
with such notice being provided to the Holder, (iii) at least ten (10) Trading Days prior to an FT Closing Date, and (iv) within
one (1) Business Day of the occurrence of an Event of Default (as defined in the Notes), setting forth in reasonable detail any
material events with respect to such Event of Default and any efforts by the Company to cure such Event of Default. To the extent
that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its
Subsidiaries, the Company shall simultaneously file such notice with the SEC (as defined in the Securities Purchase Agreement)
pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder
in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

 

9.    AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(f)) may be amended and
the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the
Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party.

 

10.  SEVERABILITY.
If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

    	 	15	 

     

    

 

11.  GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to the Company at the address set forth in Section 9(f) of the Securities Purchase Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. The Company hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other
legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize
on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder.
THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.  CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have
the meanings ascribed to such terms on the Closing Date (as defined in the Securities Purchase Agreement) in such other Transaction
Documents unless otherwise consented to in writing by the Holder.

 

13.  DISPUTE
RESOLUTION.

 

(a)          Submission
to Dispute Resolution.

  

(i)        In
the case of a dispute relating to the Exercise Price, the Closing Sale Price, the Closing Bid Price, the Lowest Price, the Black
Scholes Value, the Event of Default Black Scholes Value or fair market value or the arithmetic calculation of the number of Warrant
Shares (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the
Company or the Holder (as the case may be) shall submit the dispute to the other party via facsimile (A) if by the Company, within
two (2) Business Days after the occurrence of the circumstances giving rise to such dispute or (B) if by the Holder, at any time
after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly
resolve such dispute relating to such Exercise Price, such Closing Sale Price, such Closing Bid Price, such Lowest Price, such
Black Scholes Value, such Event of Default Black Scholes Value or such fair market value or such arithmetic calculation of the
number of Warrant Shares (as the case may be), at any time after the second (2nd) Business Day following such initial notice by
the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder
may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

    	 	16	 

     

    

 

 

(ii)       The
Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in
accordance with the first sentence of this Section 13 and (B) written documentation supporting its position with respect to such
dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following the date on
which the Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to
in the immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”)
(it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation
by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer
be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment
bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation
that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by
both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled
to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other
than the Required Dispute Documentation).

 

(iii)      The
Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and
the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees
and expenses of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such
dispute shall be final and binding upon all parties absent manifest error.

 

    	 	17	 

     

    

 

(b)          Miscellaneous.
The Company expressly acknowledges and agrees that (i) this Section 13 constitutes an agreement to arbitrate between the Company
and the Holder (and constitutes an arbitration agreement) under the rules then in effect under § 7501, et seq. of the New
York Civil Practice Law and Rules (“CPLR”) and that the Holder is authorized to apply for an order to compel
arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 13, (ii) a dispute relating to the
Exercise Price includes, without limitation, disputes as to (A) whether an issuance or sale or deemed issuance or sale of Common
Stock occurred under Section 2(b), (B) the consideration per share at which an issuance or deemed issuance of Common Stock occurred,
(C) whether any issuance or sale or deemed issuance or sale of Common Stock was an issuance or sale or deemed issuance or sale
of Excluded Securities, (D) whether an agreement, instrument, security or the like constitutes and Option or Convertible Security
and (E) whether a Dilutive Issuance occurred, (iii) the terms of this Warrant and each other applicable Transaction Document shall
serve as the basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be
entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines
are required to be made by such investment bank in connection with its resolution of such dispute (including, without limitation,
determining (A) whether an issuance or sale or deemed issuance or sale of Common Stock occurred under Section 2(b), (B) the consideration
per share at which an issuance or deemed issuance of Common Stock occurred, (C) whether any issuance or sale or deemed issuance
or sale of Common Stock was an issuance or sale or deemed issuance or sale of Excluded Securities, (D) whether an agreement, instrument,
security or the like constitutes and Option or Convertible Security and (E) whether a Dilutive Issuance occurred) and in resolving
such dispute such investment bank shall apply such findings, determinations and the like to the terms of this Warrant and any other
applicable Transaction Documents, (iv) the Holder (and only the Holder), in its sole discretion, shall have the right to submit
any dispute described in this Section 13 to any state or federal court sitting in The City of New York, Borough of Manhattan in
lieu of utilizing the procedures set forth in this Section 13 and (v) nothing in this Section 13 shall limit the Holder from obtaining
any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters described in this
Section 13).

 

14.  REMEDIES,
CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including
a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue
actual and consequential damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants
to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts
set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts
to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company
(or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other
security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder
to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including, without
limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the
exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect
thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

    	 	18	 

     

    

 

15.  PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the holder otherwise takes action to collect amounts due under this
Warrant or to enforce the provisions of this Warrant or (b) there occurs any bankruptcy, reorganization, receivership of the company
or other proceedings affecting company creditors’ rights and involving a claim under this Warrant, then the Company shall
pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements.

 

16.  TRANSFER.
This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, except as may otherwise
be required by Section 2(f) of the Securities Purchase Agreement.

 

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

 

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

 

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

 

(c)          “Affiliate”
or “affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control”
of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the
election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

 

(d)          “Attribution
Parties” means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder
or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any
of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

    	 	19	 

     

    

 

(e)          “Black
Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date of the Holder’s
applicable request pursuant to Section 4(c)(ii) or the Company’s or the Successor Entity’s election (as the
case may be) pursuant to Section 4(c)(i), as a result of a Fundamental Transaction, which value is calculated using the
Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per
share equal to the greater of (1) the highest Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock
during the period beginning on the Trading Day immediately preceding the announcement of the applicable Fundamental Transaction
(or the consummation of the applicable Fundamental Transaction, if earlier) and ending on the Trading Day of the Holder’s
request pursuant to Section 4(c)(ii) or the Company’s or the Successor Entity’s election (as the case may be)
pursuant to Section 4(c)(i), and (2) as a result of a Fundamental Transaction, the sum of the price per share being offered
in cash in the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration being offered in the applicable
Fundamental Transaction (if any), (ii) a strike price equal to the Exercise Price in effect on the date of the Holder’s request
pursuant to Section 4(c)(ii) or the Company’s or the Successor Entity’s election (as the case may be) pursuant
to Section 4(c)(i) as a result of a Fundamental Transaction, (iii) a risk-free interest rate corresponding to the U.S. Treasury
rate for a period equal to the greater of (1) the remaining term of this Warrant as of the date of the aforementioned request pursuant
to either Section 4(c)(i) or Section 4(c)(ii) as a result of a Fundamental Transaction and (2) the remaining term
of this Warrant as of the date of consummation of the applicable Fundamental Transaction or as of the date of the aforementioned
request pursuant to either Section 4(c)(i) or Section 4(c)(ii) as a result of a Fundamental Transaction if such request
is prior to the date of the consummation of the applicable Fundamental Transaction, (iv) a zero cost of borrow and (v) an expected
volatility equal to the greater of 100% and the 30 day volatility obtained from the “HVT” function on Bloomberg (determined
utilizing a 365 day annualization factor) as of the Trading Day immediately following the earliest to occur of (A) the public disclosure
of the applicable Fundamental Transaction, (B) the consummation of the applicable Fundamental Transaction and (C) the date on which
the Holder first became aware of the applicable Fundamental Transaction.

 

(f)          “Bloomberg”
means Bloomberg, L.P.

 

(g)          “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(h)          “Closing
Sale Price” or “Closing Bid Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such
security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by
the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved in accordance with the procedures in Section 24. All such determinations shall be appropriately
adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during such
period.

 

    	 	20	 

     

    

 

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

 

(j)          
“Convertible Securities” means any stock or other security (other than Options) that is at any time and under
any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder
thereof to acquire, any shares of Common Stock.

 

(k)          “Eligible
Market” means The New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Select Market,
the Nasdaq Global Market or the Principal Market.

 

(l)          “Event
of Default Black Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date of the
Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default, which value is calculated using
the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price
per share equal to the highest Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock during the period
beginning on the date of the occurrence of the Event of Default through the date all Events of Default have been cured or, if earlier,
the Trading Day of the Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default, (ii) a strike
price equal to the Exercise Price in effect on the date of the Holder’s request pursuant to Section 4(c)(ii) as a
result of an Event of Default, (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the
greater of (1) the remaining term of this Warrant as of the date of the Holder’s request pursuant to Section 4(c)(ii)
as a result of an Event of Default and (2) the remaining term of this Warrant as of the date of the occurrence of such Event of
Default, (iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and the 30 day volatility obtained
from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately
following later of (x) the date of the occurrence of such Event of Default and (y) the date of the public announcement of such
Event of Default.

 

(m)          “Expiration
Date” means the date that is the fifth (5th) anniversary of the Issuance Date or, if such date falls on a day other than
a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date
that is not a Holiday.

 

    	 	21	 

     

    

 

(n)          “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its
respective properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer
that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making
or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (ii) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly
or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.
Notwithstanding the above, a Fundamental Transaction shall not be deemed to occur as a result of a reincorporation merger of the
Company provided other than the place of incorporation of the Company no other material changes occur to the Company, as a result
of such reincorporation merger.

 

(o)          “Note”
has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include all notes issued in exchange therefor
or replacement thereof.

 

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

 

(q)          “Option
Value” means (I) if the Company is a Trading Issuer, the value of the applicable Option or Convertible Security (as the
case may be) using the Black Scholes Option Pricing model obtained from the “OV” function on Bloomberg determined as
of the date of issuance of the Option or Convertible Security (as the case may be) utilizing (i) an underlying price per share
equal to the Closing Bid Price or Closing Sale Price (as the case may be) of the Common Stock on the Trading Day immediately preceding
the public announcement of the execution of definitive documents with respect to the issuance of such Option or Convertible Security
(as the case may be), (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining
term of such Option or Convertible Security (as the case may be) as of the date of issuance of such Option or Convertible Security
(as the case may be), (iii) a zero cost of borrow and (iv) an expected volatility equal to the greater of 100% and the 100 day
volatility obtained from the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the
Trading Day immediately following the date of issuance of such Option or Convertible Security (as the case may be)., or (II) if
the Company is not a Trading Issuer (or the value of an Option cannot be determined pursuant to (I)), of this definition of “Option
Value,” the value of an Option or Convertible Security (as the case may be) shall be determined pursuant to Section 24.

 

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

 

    	 	22	 

     

    

 

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

 

(t)          “Principal
Market” means as of a particular date, the Eligible Market on such date that the Common Stock is principally traded or
quoted on.

 

(u)          “Resale
Eligibility Date” means the earlier to occur of (i) the date the SEC declares effective a registration statement registering
the resale of shares of Common Stock issuable upon exercise of this Warrant, and (ii) the initial date any of the shares of Common
Stock issuable upon exercise of this Warrant are eligible to be resold pursuant to Rule 144 (as defined in the Securities Purchase
Agreement).

 

(v)         “SEC”
means the United States Securities and Exchange Commission or the successor thereto.

 

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

 

(x)          “Trading
Day” means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Stock,
any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded,
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on
such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange
or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day
in writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Common Stock,
any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(y)          “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers, trustees
or other similar governing body of such Person (irrespective of whether or not at the time capital stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency).

 

 

[signature page follows]

 

    	 	23	 

     

    

 

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

 

	 	ICAGEN, INC.
	 	 	 
	 	By:	/s/ Richard Cunningham
	 	Name:	Richard Cunningham
	 	Title:	Chief Executive Officer

 

    	 	24	 

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

ICAGEN, INC.

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
Icagen, Inc., a Delaware corporation (the “Company”), evidenced by Warrant to Purchase Common Stock No. _______
(the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

 

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

 

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

                                                                                 

	 	 	 	 
	 	 	 	 
	 	____________

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

 

 In the event
that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto,
the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder at __________ [a.m.][p.m.] on
the date set forth below and (ii) if applicable, the Closing Sale Price or Closing Bid Price as of such time of execution of this
Exercise Notice was $________.

 

 ☐  If this Exercise
Notice is being delivered after the Alternate Exercise Eligibility Date, check here if Holder is electing to use the
following Alternate Exercise Price in this exercise:____________.

 

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

 

    	 	25	 

     

    

 

3. Delivery of Warrant
Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ Warrant Shares in accordance
with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

☐  Check here
if requesting delivery as a certificate to the following name and to the following address:

 

	 	Issue to:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

☐  Check here if requesting delivery
by Deposit/Withdrawal at Custodian as follows:

 

	 	DTC Participant:	 
	 	 	 
	 	DTC Number:	 
	 	 	 
	 	Account Number:	 

 

	Date:	 	 
	 	 	 
	 	 	 
	Name of Registered Holder	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	Tax ID:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	E-mail Address:	 

 

    	 	27	 

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated May 15, 2017, from Icagen, Inc. and acknowledged and agreed to by _______________.

 

 

	 	ICAGEN, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

28

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