Document:

Exhibit
10.14

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE THE COMPANY.

 

BOXLIGHT
CORPORATION

 

Convertible
Promissory Note

 

	Issuance
    Date: as of April 1, 2016	Principal
Amount: $2,000,000

 

FOR
VALUE RECEIVED, BOXLIGHT CORPORATION, a Nevada corporation (referred to herein as “Company” or “Buyer”)
with a business address at 1045 Progress Circle, Lawrenceville, GA 30043, hereby unconditionally agrees and promises to pay to
the order of MIM HOLDINGS, LLC, a Delaware limited liability company (“Holdings”), and/or its successors
and assigns (together with Holdings, collectively, the “Holder”), at the office of Holdings at 10951 West Pico
Boulevard, Suite 102, Los Angeles, CA 90064, or such other place as the Holder may from time to time designate, in lawful money
of the United States of America, the principal sum of TWO MILLION ($2,000,000) DOLLARS (the “Principal Indebtedness”),
together with interest on the outstanding Principal Indebtedness evidenced by this Note at the Interest Rate (as defined below).

 

ARTICLE
I

 

PURCHASE
AGREEMENT

 

Reference
is made to a Membership Interest Purchase Agreement, dated as of April 1, 2016, among the Company, Marlborough Brothers Family
Trust, as assignee of VC2 Partners, LLC, a Delaware limited liability company (“Seller”) and Mimio, LLC,
a Delaware limited liability company (“Mimio”) and Holdings (collectively, the “Purchase Agreement”).
In the event of a conflict between the terms of this Note and the Purchase Agreement, then the terms of the Purchase Agreement
shall govern. This Note is the Purchase Note being issued by the Company under the Purchase Agreement. Unless otherwise expressly
defined in this Note, all capitalized terms used herein shall have the same meaning as assigned to them in the Purchase Agreement.
As used herein, the term “the Company” shall include the Buyer or any successor-in-interest to the Buyer in connection
with a Change of Control or a Reverse Takeover.

 

Section
1.1 Principal Indebtedness of the Note. The unpaid Principal Indebtedness advanced under the Purchase Agreement (the “Note”),
together with any accrued and unpaid interest at the Interest Rate thereon shall be due and payable on the earliest
to occur of (a) the occurrence and continuation of an Event of Default (as defined herein), or (b) March 31, 2019 (the “Maturity
Date”). 

 

Section
1.2 Interest. Subject to the requirements of Section 3.6 below, the Company may repay this Note at any time on or before
90 days from the Issuance Date. If the Company repays the Principal Amount on or before 90 days from the Issuance Date, the interest
rate on that payment will be zero percent. If the Company does not repay the Principal Amount on or before 90 days from the Issuance
Date, a one-time simple interest charge of 8% shall be applied to the entire Purchase Amount and shall be due and payable by the
Company on the Maturity Date. At the option of the Holder, on the Maturity Date, accrued and unpaid interest shall be paid in
cash or restricted shares of the Company’s common stock, par value $0.0001 per share, or the common stock of any successor-in-interest
to the Company (either, the “Common Stock”), valued at the closing price of such Common Stock, as traded on
any national securities exchange on the Maturity Date. Any interest payable is in addition to the original issue discount.

 

    	 

    	 

    

 

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

 

Section
1.4 Transfer. This Note may be transferred or sold, subject to the provisions of Section 4.8 of this Note, or pledged,
hypothecated or otherwise granted as security by the Holder.

 

Section
1.5 Replacement. Upon receipt of a duly executed, notarized and unsecured written statement from the Holder with respect
to the loss, theft or destruction of this Note (or any replacement hereof), and without requiring an indemnity bond or other security,
or, in the case of a mutilation of this Note, upon surrender and cancellation of such Note, the Company shall issue a new Note,
of like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated Note.

 

ARTICLE
II

 

EVENTS
OF DEFAULT; REMEDIES

 

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

 

(a) the
Company shall fail to make the payment of any Principal Amount outstanding on the date such payment is due hereunder;

 

(b) the
Company shall fail to make any payment of interest on the date such payment is due hereunder, provided, however, that if the payment
of interest is made in shares of the Company’s Common Stock, it shall be an Event of Default if the Common Stock is not
delivered to the Holder with 3 days after the date such interest is due;

 

(c) following
an IPO or Reverse Takeover, the Common Stock is suspended from listing or fails to be quoted or listed on at least one of the
OTC Markets, OTC Bulletin Board, Nasdaq Capital Market, NYSE MKT or The New York Stock Exchange, Inc. for a period of 5 consecutive
Trading Days;

 

(d) following
an IPO or Reverse Takeover, the Company or any successor-in-interest, fails to file any reports in a timely fashion (past the
filing of NT 10-Q or NT 10-K, which is a 15 day extension), causing their listing to become Delinquent;

 

(e) the
Company or any successor-in-interest shall be a party to any Change of Control;

 

(f) a
notice to the Holder, including by way of public announcement, at any time, of the inability of the Company or any successor-in-interest
to comply, or its intention not to comply, with proper requests from the Holder for conversion of this Note into shares of Common
Stock;

 

(g) the
Company or any successor-in-interest shall fail to (i) timely deliver the shares of Common Stock upon conversion of the Note or
any accrued and unpaid interest, or (ii) make the payment of any fees and/or liquidated damages under this Note or the Purchase
Agreement, which failure in the case of items (i) and (ii) of this Section 2.1(e) is not remedied within 3 business days after
the incurrence thereof;

 

    	 

    	 

    

 

(h) default
shall be made in the performance or observance of (i) any material covenant, condition or agreement contained in this Note (other
than as set forth in clause (e) of this Section 2.1) and such default is not fully cured within 5 business days after the occurrence
thereof or (ii) any material covenant, condition or agreement contained in the Purchase Agreement or any other Transaction Documents
which is not covered by any other provisions of this Section 2.1 and such default is not fully cured within 5 business days after
the occurrence thereof;

 

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

 

(j) the
Company shall (A) default in any payment of any amount or amounts of the principal or interest on any indebtedness (other than
the indebtedness hereunder) the aggregate principal amount of which Indebtedness is in excess of $20,000 or (B) default in the
observance or performance of any other agreement or condition relating to any indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other
event or condition is to cause, or to permit the Holder or beneficiary or beneficiaries of such Indebtedness to cause, with the
giving of notice if required, such Indebtedness to become due prior to its stated maturity;

 

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

 

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

 

(m) the
failure of the Company or any successor-in-interest to instruct its transfer agent to remove any legends from shares of Common
Stock eligible to be sold under Rule 144 of the Securities Act and issue such unlegended certificates to the Holder within 5 business
days of the Holder’s request so long as the Holder has provided reasonable assurances and opinions of counsel to the Company
that such shares of Common Stock can be resold pursuant to Rule 144.

 

Section
2.2 Remedies Upon An Event of Default. If an Event of Default shall have occurred and shall be continuing, the Holder
of this Note may at any time at its option, (a) declare the entire unpaid Principal Amount of this Note, together with all interest
accrued hereon, due and payable in cash, and thereupon, the same shall be accelerated and so due and payable, without presentment,
demand, protest, or notice, all of which are hereby expressly unconditionally and irrevocably waived by the Company, (b) subject
to Section 3.1(c) hereof, demand that the Principal Amount of this Note then outstanding shall be converted into shares of Common
Stock at a Conversion Price (as defined in Section 3.2 below) per share calculated pursuant to Section 3.1(b) below, assuming
that the date that the Event of Default occurs is the Conversion Date, and demand that all accrued and unpaid interest under this
Note shall be converted into shares of Common Stock in accordance with Section 3.2 hereof, or (c) exercise or otherwise enforce
any one or more of the Holder’s rights, powers, privileges, remedies and interests under this Note, the Purchase Agreement,
other Transaction Documents or applicable law. No course of delay on the part of the Holder shall operate as a waiver thereof
or otherwise prejudice the right of the Holder. No remedy conferred hereby shall be exclusive of any other remedy referred to
herein or now or hereafter available at law, in equity, by statute or otherwise.

 

    	 

    	 

    

 

Section
2.3 Default Interest. Furthermore, upon the occurrence of an Event of Default, then to the extent permitted by law and
in addition to the remedies set forth in Section 2.2 above, the Company will pay interest to the Holder, payable on demand, on
all amounts due under the Note from the date of the Event of Default until such Event of Default is cured, at the rate of the
lesser of 12% and the maximum applicable legal rate per annum.

 

ARTICLE
III

CONVERSION;
ANTIDILUTION; PREPAYMENT

 

Section
3.1 Conversion.

 

(a) Manner
of Conversion. At any time on or after a Liquidity Event (as defined in the Purchase Agreement), this Note shall be convertible
(in whole or in part), at the option of the Holder (the “Conversion Option”), into fully paid and non-assessable
shares of the Company’s Common Stock on the date on which the Holder faxes a notice of conversion (the “Conversion
Notice”), duly executed, to the Company (the “Conversion Date”), provided, however, that the Conversion
Price shall be subject to adjustment as described in Section 3.5 below. The Holder shall deliver this Note to the Company at the
address designated in the Purchase Agreement at such time that this Note is fully converted. With respect to partial conversions
of this Note, the Company shall keep written records of the amount of this Note converted as of each Conversion Date.

 

(b) Calculation
of Number of Shares to be Issued. On any Conversion Date, the Holder may cause any outstanding Principal Amount of this Note
plus all accrued and unpaid interest to convert into a number of fully paid and non-assessable shares of Common Stock equal to
the quotient of the elected outstanding Principal Amount of this Note plus all interest accrued thereon as of the Conversion Date
divided by the Conversion Price as computed in accordance with Section 3.2 below.

 

(c) Conversion
Limitations; Holder’s Restriction on Conversion. The Company shall not effect any conversion of this Note, and the Holder
shall not have the right to convert any portion of this Note, to the extent that after giving effect to such conversion, the Holder
(together with the Holder’s affiliates), as set forth on the applicable Conversion Notice, would beneficially own in excess
of 4.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such conversion.
For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its affiliates
shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) conversion of the remaining,
non-converted portion of this Note beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of
the unexercised or non-converted portion of any other securities of the Company (including, without limitation, any other notes
or the Warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned
by the Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. To the extent that the limitation contained
in this Section applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder)
and of which a portion of this Note is convertible shall be in the sole discretion of such Holder. To ensure compliance with this
restriction, the Holder will be deemed to represent to the Company each time it delivers a Conversion Notice that such Conversion
Notice has not violated the restrictions set forth in this Section and the Company shall have no obligation to verify or confirm
the accuracy of such determination. For purposes of this Section, in determining the number of outstanding shares of Common Stock,
the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form
10-Q or Form 10-K (or such related form), as the case may be, (y) a more recent public announcement by the Company or (z) any
other notice by the Company or the Company’s Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of the Holder, the Company shall within two Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder
or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The provisions of
this Section may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the
Company, and the provisions of this Section shall continue to apply until such 61st day (or such later date, as determined by
the Holder, as may be specified in such notice of waiver).

 

    	 

    	 

    

 

Section
3.2 Conversion Price and Conversion Shares.

 

(a) The
term “Conversion Price” shall a price per share which shall be equal to either:

 

 (i)
if the Liquidity Event shall be an IPO, a per share price equal to fifty-five (55%) percent of the initial offering price per
share of Buyer Common Stock in such IPO, or 

 

(ii) if the Liquidity Event shall be a Reverse Takeover, a per share price equal to fifty-five (55%) percent of the volume weighted
average price of Buyer Common Stock for the twenty (20) consecutive Trading Days immediately prior to the date notice of conversion
shall be given by the Holder, 

 

provided,
that (A) such Conversion Shares shall be “restricted securities” within the meaning of Regulation D promulgated
under the Securities Act), and (B) the number of Conversion Shares that may be issued or issuable at any one time shall be subject
to certain beneficial ownership limitations, as set forth in Section 7 of this Note. The COMPANY shall pay any and all transfer,
stamp, issuance and similar taxes that may be payable with respect to the issuance and delivery of any Conversion Shares.

 

(b) Subject
at all times to the provisions of Section 3.7(a) below, the number of shares issuable upon conversion of this Note (the “Conversion
Shares”) shall be determined by the quotient obtained by dividing (i) the outstanding Principal Indebtedness of this
Note, plus accrued and unpaid Interest thereon on the date of a Liquidity Event by the applicable Conversion Price. The calculation
by the Company of the number of Conversion Shares to be received by the Holder upon conversion hereof, shall be conclusive absent
manifest error.

.

    	 

    	 

    

 

Section
3.3 Mechanics of Conversion.

 

(a) Delivery
of Common Stock. Not later than 3 Trading Days after any Conversion Date, the Company or its designated transfer agent, as
applicable, shall issue and deliver to the Depository Trust Company (“DTC”) account on the Holder’s behalf
via the Deposit Withdrawal Agent Commission System (“DWAC”) as specified in the Conversion Notice, 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. In
the alternative, not later than 3 Trading Days after any Conversion Date, the Company shall deliver to the Holder by express courier
a certificate or certificates which shall be free of restrictive legends and trading restrictions (other than those required by
Section 4 of the Purchase Agreement) representing the number of shares of Common Stock being acquired upon the conversion of this
Note (the “Delivery Date”). Notwithstanding the foregoing to the contrary, the Company or its transfer agent
shall only be obligated to issue and deliver the shares to DTC on the Holder’s behalf via DWAC (or certificates free of
restrictive legends) if such conversion is in connection with a sale and the Holder has complied with the applicable requirements
of federal and state securities laws. If in the case of any Conversion Notice such certificate or certificates are not delivered
to or as directed by the Holder by the Delivery Date, the Holder shall be entitled by written notice to the Company at any time
on or before its receipt of such certificate or certificates thereafter, to rescind such conversion, in which event the Company
shall immediately return this Note if tendered for conversion, whereupon the Company and the Holder shall each be restored to
their respective positions immediately prior to the delivery of such notice of revocation, except that any amounts described in
Sections 3.3(b) and (c) shall be payable through the date notice of rescission is given to the Company.

 

(b) Penalty
for Failure to Deliver Common Stock. The Company understands that a delay in the delivery of the shares of Common Stock upon
conversion of this Note beyond the Delivery Date could result in economic loss to the Holder. If the Company fails to deliver
to the Holder such shares via DWAC or a certificate or certificates pursuant to Section 3.3(a) above by the Delivery Date, the
Company shall pay to the Holder, in cash, an amount per Trading Day for each Trading Day until such shares are delivered via DWAC
or certificates are delivered, together with interest on such amount at a rate of 10% per annum, accruing until such amount and
any accrued interest thereon is paid in full, equal to (i) 1% of the aggregate principal amount of the Note requested to be converted
for the first 5 Trading Days after the Delivery Date and (ii) 2% of the aggregate principal amount of the Note requested to be
converted for each Trading Day thereafter. Nothing herein shall limit a Holder’s right to pursue actual damages for the
Company’s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified
herein and the Holder shall have the right to pursue all remedies available to it at law or in equity (including, without limitation,
a decree of specific performance and/or injunctive relief). Notwithstanding anything to the contrary contained herein, the Holder
shall be entitled to withdraw a Conversion Notice, and upon such withdrawal the Company shall only be obligated to pay the liquidated
damages accrued in accordance with this Section 3.3(b) through the date the Conversion Notice is withdrawn.

 

(c) Penalty
in the Event of a Buy-In. In addition to any other rights available to the Holder, if the Company fails to cause its transfer
agent to transmit to the Holder a certificate or certificates representing the shares of Common Stock issuable upon conversion
of this Note on or before the Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the shares of Common
Stock issuable upon full or partial conversion of this Note (a “Buy- In”), then the Company shall (1) pay in
cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for
the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of shares of Common Stock
issuable upon conversion of this Note that the Company was required to deliver to the Holder in connection with the conversion
at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option
of the Holder, either reinstate the portion of the Note and equivalent number of shares of Common Stock for which such conversion
was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its conversion and delivery obligations hereunder. For example, if the Holder purchases 20,000 shares of Common
Stock having a total purchase price of $11,000 (or $0.55 per share) to cover a Buy-In with respect to an attempted conversion
of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000 (or $0.50 per share),
under clause (1) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall
provide written notice to the Company indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable
confirmations and other evidence reasonably requested by the Company. Nothing in this Note shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares
of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

    	 

    	 

    

 

Section
3.4 Right of Company to Pay in Cash. Subject to Section 3.6 below, within 72 hours from delivery by the Holder of the
Holder’s first Conversion Notice to the Company, the Company may pre-pay in cash the entire Principal Amount, all accrued
interest thereon and any other amounts due and owing under the Note. If the Company fails to pay the Principal Amount, all accrued
interest thereon and any other amounts due and owing under the Note in cash within 72 hours from receipt of the Holder’s
first Conversion Notice, upon receipt of any subsequent Conversion Notice from the Holder, the Company must issue the Common Stock
in accordance with the requirements of this Section 3 and will not be entitled to pay all or any portion of the Note in cash prior
to issuing the Common Stock, unless the Holder, in its sole and absolute discretion, agrees to accept such payment.

 

Section
3.5 Adjustment of Conversion Price.

 

 (a) The
Conversion Price shall be subject to adjustment from time to time as follows:

 

(i) Adjustments
for Stock Splits and Combinations. If the Company shall at any time or from time to time after the Issuance Date, effect a
stock split of the outstanding Common Stock, the applicable Conversion Price in effect immediately prior to the stock split shall
be proportionately decreased. If the Company shall at any time or from time to time after the Issuance Date, combine the outstanding
shares of Common Stock, the applicable Conversion Price in effect immediately prior to the combination shall be proportionately
increased. Any adjustments under this Section 3.5(a)(i) shall be effective at the close of business on the date the stock split
or combination occurs.

 

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

 

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

 

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

 

(iii) Adjustment
for Other Dividends and Distributions. If the Company shall at any time or from time to time after the Issuance Date, make
or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution
payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the applicable Conversion Price
shall be made and provision shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder of this Note
shall receive upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon, the number of
securities of the Company which the Holder would have received had this Note been converted into Common Stock on the date of such
event and had thereafter, during the period from the date of such event to and including the Conversion Date, retained such securities
(together with any distributions payable thereon during such period), giving application to all adjustments called for during
such period under this Section 3.5(a)(iii) with respect to the rights of the Holder of this Note; provided, however,
that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on
the date fixed therefor, the Conversion Price shall be adjusted pursuant to this paragraph as of the time of actual payment of
such dividends or distributions.

 

    	 

    	 

    

 

(iv) Adjustments
for Reclassification, Exchange or Substitution. If the Common Stock issuable upon conversion of this Note at any time or from
time to time after the Issuance Date shall be changed to the same or different number of shares of any class or classes of stock,
whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares
or stock dividends provided for in Sections 3.5(a)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale of
assets provided for in Section 3.5(a)(v)), then, and in each event, an appropriate revision to the Conversion Price shall be made
and provisions shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder shall have the right thereafter
to convert this Note into the kind and amount of shares of stock and other securities receivable upon such reclassification, exchange,
substitution or other change, all subject to further adjustment as provided herein.

 

(v) Adjustments
for Reorganization, Merger, Consolidation or Sales of Assets. If at any time or from time to time after the Issuance Date
there shall be a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock dividends
or distributions provided for in Section 3.5(a)(i), (ii) and (iii), or a reclassification, exchange or substitution of shares
provided for in Section 3.5(a)(iv)), or a merger or consolidation of the Company with or into another corporation where the holders
of outstanding voting securities prior to such merger or consolidation do not own over 50% of the outstanding voting securities
of the merged or consolidated entity, immediately after such merger or consolidation, or the sale of all or substantially all
of the Company’s properties or assets to any other person (an “Organic Change”), then as a part of such
Organic Change an appropriate revision to the Conversion Price shall be made and provision shall be made (by adjustments of the
Conversion Price or otherwise) so that the Holder shall have the right thereafter to convert such Note into the kind and amount
of shares of stock and other securities or property of the Company or any successor corporation resulting from such Organic Change.
In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 3.5(a)(v) with respect
to the rights of the Holder after the Organic Change to the end that the provisions of this Section 3.5(a)(v) (including any adjustment
in the applicable Conversion Price then in effect and the number of shares of stock or other securities deliverable upon conversion
of this Note) shall be applied after that event in as nearly an equivalent manner as may be practicable.

 

(vi) Issuance
of Common Stock and Common Stock Equivalents. If the Company at any time while this Note is outstanding, shall issue shares
of Common Stock or Common Stock Equivalents (as defined in the Purchase Agreement) entitling any person to acquire shares of Common
Stock at a fixed price per share less than the applicable Conversion Price (if the holder of the Common Stock or Common Stock
Equivalent so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at a price per share which is less than the applicable Conversion
Price, such issuance shall be deemed to have occurred for less than the applicable Conversion Price), then, at the sole option
of the Holder, the Conversion Price shall be adjusted to mirror the conversion, exchange or purchase price for such Common Stock
or Common Stock Equivalents (including any reset provisions thereof) at issue. Such adjustment shall be made whenever such Common
Stock or Common Stock Equivalents are issued. The Company shall notify the Holder in writing, no later than 1 business day following
the issuance of any Common Stock or Common Stock Equivalent subject to this Section, indicating therein the applicable issuance
price, or of applicable reset price, exchange price, conversion price and other pricing terms.

 

(vii) Consideration
for Stock. In case any shares of Common Stock or any Common Stock Equivalents shall be issued or sold:

 

(1) in
connection with any merger or consolidation in which the Company is the surviving corporation (other than any consolidation or
merger in which the previously outstanding shares of Common Stock of the Company shall be changed to or exchanged for the stock
or other securities of another corporation), the amount of consideration therefor shall be deemed to be the fair value, as determined
reasonably and in good faith by the Board of Directors of the Company, of such portion of the assets and business of the non-surviving
corporation as such Board may determine to be attributable to such shares of Common Stock, Convertible Securities, rights or warrants
or options, as the case may be; or

 

    	 

    	 

    

 

(2) in
the event of any consolidation or merger of the Company in which the Company is not the surviving corporation or in which the
previously outstanding shares of Common Stock of the Company shall be changed into or exchanged for the stock or other securities
of another corporation, or in the event of any sale of all or substantially all of the assets of the Company for stock or other
securities of any corporation, the Company shall be deemed to have issued a number of shares of its Common Stock for stock or
securities or other property of the other corporation computed on the basis of the actual exchange ratio on which the transaction
was predicated, and for a consideration equal to the fair market value on the date of such transaction of all such stock or securities
or other property of the other corporation.

 

If
any such calculation results in adjustment of (i) the applicable Conversion Price or (ii) the number of shares of Common Stock
issuable upon conversion of the Note, the determination of the applicable Conversion Price or the number of shares of Common Stock
issuable upon conversion of the Note immediately prior to such merger, consolidation or sale, shall be made after giving effect
to such adjustment of the number of shares of Common Stock issuable upon conversion of the Note. In the event Common Stock is
issued with other shares or securities and/or other assets of the Company for consideration, the consideration computed as provided
in this Section 3.5(vii) shall be allocated among such securities and assets as determined in good faith by the Board of Directors
of the Company.

 

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

 

(c) Certain
Issues Excepted. Anything herein to the contrary notwithstanding, the Company shall not be required to make any adjustment
to the Conversion Price in connection with (i) securities issued (other than for cash) in connection with a merger, acquisition,
or consolidation, (ii) securities issued pursuant to a bona fide firm underwritten public offering of the Company’s securities,
(iii) securities issued pursuant to the conversion or exercise of convertible or exercisable securities issued or outstanding
on or prior to the date hereof or issued pursuant to the Purchase Agreement, (iv) the shares of Common Stock issuable upon the
exercise of the Warrants, (v) securities issued in connection with strategic license agreements or other partnering arrangements
so long as such issuances are not for the purpose of raising capital, (vi) Common Stock issued or options to purchase Common Stock
granted or issued pursuant to the Company’s stock option plans and employee stock purchase plans as they now exist and (vii)
the payment of any accrued interest in shares of Common Stock pursuant to this Note.

 

(d) No
Impairment. The Company shall not, by amendment of its Articles of Incorporation or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times
in good faith, assist in the carrying out of all the provisions of this Section 3.5 and in the taking of all such action as may
be necessary or appropriate in order to protect the Conversion Rights of the Holder against impairment. In the event the Holder
shall elect to convert the Note as provided herein, the Company cannot refuse conversion based on any claim that the Holder or
any one associated or affiliated with the Holder has been engaged in any violation of law, violation of an agreement to which
the Holder is a party or for any reason whatsoever, unless an injunction from a court, or notice, restraining and or adjoining
conversion of all or of part of the Note shall have issued and the Company posts a surety bond for the benefit of the Holder in
an amount equal to 130% of the amount of the Note the Holder has elected to convert, which bond shall remain in effect until the
completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder in the event it
obtains judgment.

 

    	 

    	 

    

 

(e) Certificates
as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of shares of Common
Stock issuable upon conversion of this Note pursuant to this Section 3.5, the Company at its expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment
and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon written
request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth such adjustments
and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common Stock and the amount,
if any, of other securities or property which at the time would be received upon the conversion of this Note. Notwithstanding
the foregoing, the Company shall not be obligated to deliver a certificate unless such certificate would reflect an increase or
decrease of at least 1% of such adjusted amount.

 

(f) Issue
Taxes. The Company shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that may be
payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided,
however, that the Company shall not be obligated to pay any transfer taxes resulting from any transfer requested by the
Holder in connection with any such conversion.

 

(g) Fractional
Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of any fractional shares
to which the Holder would otherwise be entitled, the Company shall pay cash equal to the product of such fraction multiplied by
the average of the closing bid prices of the Common Stock for the 5 consecutive Trading Days immediately preceding the Conversion
Date.

 

(h) Reservation
of Common Stock. The Company shall at all times when this Note shall be outstanding, reserve and keep available out of its
authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to time be sufficient to effect
the conversion of this Note and all interest accrued thereon; provided that the number of shares of Common Stock so reserved
shall at no time be less than 300% of the number of shares of Common Stock for which this Note and all interest accrued thereon
are at any time convertible (the “Reserved Amount”). The Company shall, from time to time in accordance with
Florida corporate law, increase the authorized number of shares of Common Stock if at any time the unissued number of authorized
shares shall not be sufficient to satisfy the Company’s obligations under this Section 3.5(h). The Company acknowledges
that (i) it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion
of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are
charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock
in accordance with the terms and conditions of this Note. If, at any time the Company does not maintain the Reserved Amount it
will be considered an Event of Default under Section 2.1 of this Note.

 

(i) Regulatory
Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note or any interest accrued
thereon require registration or listing with or approval of any governmental authority, stock exchange or other regulatory body
under any federal or state law or regulation or otherwise before such shares may be validly issued or delivered upon conversion,
the Company shall, at its sole cost and expense, in good faith and as expeditiously as possible, endeavor to secure such registration,
listing or approval, as the case may be.

 

Section
3.6 Prepayment.

 

(a) Prepayment
by the Company. Notwithstanding anything to the contrary contained herein, during the 180 days following the Issuance Date
(the “Prepayment Period”) the Company shall have the right, at the Company’s option, to prepay in cash
all or any portion of this Note as follows: (i) during the first 90 days of the Prepayment Period, the amount to prepay the Note
shall equal 125% of the Principal Amount of the Note being prepaid plus all accrued and unpaid interest applicable at the time
of such request; (ii) during the next 45 days of the Prepayment Period, the amount to prepay the Note shall equal 135% of the
principal amount of the Note being prepaid plus all accrued and unpaid interest applicable at the time of such request; and (iii)
during the final 45 days of the Prepayment Period, the amount to prepay the Note shall equal 145% of the principal amount of the
Note being prepaid plus all accrued and unpaid interest applicable at the time of such request.

 

    	 

    	 

    

 

(b) Prepayment
Upon an Event of Default. Notwithstanding anything to the contrary contained herein, upon the occurrence of an Event of Default
described in Sections 2.1(a)-(m) hereof, the Holder shall have the right, at such Holder’s option, to require the Company
to prepay in cash all or a portion of this Note at a price equal to 150% of the aggregate principal amount of this Note and all
accrued and unpaid interest applicable at the time of such request (the “Event of Default Prepayment Price”).
Nothing in this Section 3.6(b) shall limit the Holder’s rights under Section 2.2 hereof.

 

(c) Prepayment
Option Upon Major Transaction. In addition to all other rights of the Holder contained herein, simultaneous with the occurrence
of a Major Transaction (as defined in Section 3.6(e) hereof), the Holder shall have the right, at the Holder’s option, to
require the Company to prepay all or a portion of the Holder’s Note at a price equal to 150% of the aggregate principal
amount of this Note plus all accrued and unpaid interest (the “Major Transaction Prepayment Price”).

 

(d) Prepayment
Option Upon Triggering Event. In addition to all other rights of the Holder contained herein, after a Triggering Event (as
defined below), the Holder shall have the right, at the Holder’s option, to require the Company to prepay all or a portion
of this Note in cash at a price equal to the sum of (i) the greater of (A) 150% of the aggregate principal amount of this Note
plus all accrued and unpaid interest and (B) in the event at such time the Holder is unable to obtain the benefit of its conversion
rights through the conversion of this Note and resale of the shares of Common Stock issuable upon conversion hereof in accordance
with the terms of this Note and the other Transaction Documents, the aggregate principal amount of this Note plus all accrued
but unpaid interest hereon, divided by the Conversion Price on (x) the date the Prepayment Price (as defined below) is demanded
or otherwise due or (y) the date the Prepayment Price is paid in full, whichever is less, multiplied by the VWAP on (x) the date
the Prepayment Price is demanded or otherwise due, and (y) the date the Prepayment Price is paid in full, whichever is greater,
and (ii) all other amounts, costs, expenses and liquidated damages due in respect of this Note and the other Transaction Documents
(the “Triggering Event Prepayment Price,” and, collectively with the “Major Transaction Prepayment
Price,” the “Prepayment Price”).

 

(e) Major
Transaction. A “Major Transaction” shall be deemed to have occurred at such time as any of the following
events:

 

(i) a
Change of Control;

 

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

 

(ii) the
sale or transfer of more than 50% of the Company’s assets (based on the fair market value as determined in good faith by
the Company’s Board of Directors) other than inventory in the ordinary course of business in one or a related series of
transactions; or

 

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

 

    	 

    	 

    

 

(f)
Triggering Event. A “Triggering Event” shall be deemed to have occurred at such time as any of the following
events:

 

(i) the
suspension from listing, without subsequent listing on any one of, or the failure of the Common Stock to be listed on at least
one of the OTCQB, OTC Bulletin Board, Nasdaq Capital Market, NYSE MKT or The New York Stock Exchange, Inc. for a period of 5 consecutive
Trading Days;

 

(ii) the
Company’s notice to the Holder of this Note, including by way of public announcement, at any time, of its inability to comply
(including for any of the reasons described in Section 3.8) or its intention not to comply with proper requests for conversion
of any Note into shares of Common Stock; or

 

(iii) the
Company’s failure to comply with a Conversion Notice tendered in accordance with the provisions of this Note within 10 business
days after the receipt by the Company of the Conversion Notice; or

 

(iv) the
Company deregisters its shares of Common Stock and as a result such shares of Common Stock are no longer publicly traded; or

 

(v) the
Company consummates a “going private” transaction and as a result the Common Stock is no longer registered under Sections
12(b) or 12(g) of the Exchange Act.

 

(g)
Mechanics of Prepayment at Option of Holder Upon Major Transaction. No sooner than 15 days nor later than ten (10) days
prior to the consummation of a Major Transaction, but not prior to the public announcement of such Major Transaction, the Company
shall deliver written notice thereof via facsimile and overnight courier (“Notice of Major Transaction”) to
the Holder of this Note. At any time after receipt of a Notice of Major Transaction (or, in the event a Notice of Major Transaction
is not delivered at least 10 days prior to a Major Transaction, at any time within 10 days prior to a Major Transaction), the
Holder of the Note then outstanding may require the Company to prepay, effective immediately prior to the consummation of such
Major Transaction, all of the Note then outstanding by delivering written notice thereof via facsimile and overnight courier (“Notice
of Prepayment at Option of Holder Upon Major Transaction”) to the Company, which Notice of Prepayment at Option of Holder
Upon Major Transaction shall indicate (i) the Note that the Holder is electing to have prepaid and (ii) the applicable Major Transaction
Prepayment Price, as calculated pursuant to Section 3.6(c) above.

 

(h) Mechanics
of Prepayment at Option of Holder Upon Triggering Event. Within one business day after the occurrence of a Triggering Event,
the Company shall deliver written notice thereof via facsimile and overnight courier (“Notice of Triggering Event”)
to the Holder of the Note. At any time after the earlier of the Holder’s receipt of a Notice of Triggering Event and the
Holder becoming aware of a Triggering Event, the Holder of this Note may require the Company to prepay the Note by delivering
written notice thereof via facsimile and overnight courier (“Notice of Prepayment at Option of Holder Upon Triggering
Event”) to the Company, which Notice of Prepayment at Option of Holder Upon Triggering Event shall indicate (i) the
amount of the Note that the Holder is electing to have prepaid and (ii) the applicable Triggering Event Prepayment Price, as calculated
pursuant to Section 3.6(d) above. The Holder shall only be permitted to require the Company to prepay the Note pursuant to Section
3.6 hereof for the greater of a period of 10 days after receipt by the Holder of a Notice of Triggering Event or for so long as
such Triggering Event is continuing.

 

    	 

    	 

    

 

(i) Payment
of Prepayment Price. Upon the Company’s receipt of a Notice(s) of Prepayment at Option of Holder Upon Triggering Event
or a Notice(s) of Prepayment at Option of Holder Upon Major Transaction from the Holder of the Note, the Company shall immediately
notify the Holder of the Note by facsimile of the Company’s receipt of such Notice(s) of Prepayment at Option of Holder
Upon Triggering Event or Notice(s) of Prepayment at Option of Holder Upon Major Transaction and the Holder shall promptly submit
to the Company the Holder’s Note which the Holder has elected to have prepaid. The Company shall deliver the applicable
Triggering Event Prepayment Price, in the case of a prepayment pursuant to Section 3.6(d), to the Holder within 5 business days
after the Company’s receipt of a Notice of Prepayment at Option of Holder Upon Triggering Event and, in the case of a prepayment
pursuant to Section 3.(e), the Company shall deliver the applicable Major Transaction Prepayment Price immediately prior to the
consummation of the Major Transaction. If the Company shall fail to prepay the Note (other than pursuant to a dispute as to the
arithmetic calculation of the Prepayment Price), in addition to any remedy the Holder of the Note may have under this Note and
the Purchase Agreement, the applicable Prepayment Price payable in respect of the Note not prepaid shall bear interest at the
rate of 2% per month (prorated for partial months) until paid in full. Until the Company pays such unpaid applicable Prepayment
Price in full to the Holder, the Holder shall have the option (the “Void Optional Prepayment Option”) to, in
lieu of prepayment, require the Company to promptly return to the Holder the Note that was submitted for prepayment under this
Section 3.6 and for which the applicable Prepayment Price has not been paid, by sending written notice thereof to the Company
via facsimile (the “Void Optional Prepayment Notice”). Upon the Company’s receipt of such Void Optional
Prepayment Notice(s) and prior to payment of the full applicable Prepayment Price to the Holder, (i) the Notice of Prepayment
at Option of Holder Upon Triggering Event or the Notice of Prepayment at Option of Holder Upon Major Transaction, as the case
may be, shall be null and void with respect to the Note submitted for prepayment and for which the applicable Prepayment Price
has not been paid, (ii) the Company shall immediately return the Note submitted to the Company by the Holder for prepayment under
this Section 3.6(i) and for which the applicable Prepayment Price has not been paid and (iii) the Conversion Price of such returned
Note shall be adjusted to the lesser of (A) the Conversion Price as in effect on the date on which the Void Optional Prepayment
Notice is delivered to the Company and (B) the lowest Closing Bid Price during the period beginning on the date on which the Notice
of Prepayment of Option of Holder Upon Major Transaction or the Notice(s) of Prepayment at Option of Holder Upon Triggering Event,
as the case may be, is delivered to the Company and ending on the date on which the Void Optional Prepayment Notice is delivered
to the Company; provided that no adjustment shall be made if such adjustment would result in an increase of the Conversion Price
then in effect. The Holder’s delivery of a Void Optional Prepayment Notice and exercise of its rights following such notice
shall not effect the Company’s obligations to make any payments which have accrued prior to the date of such notice. Payments
provided for in this Section 3.6 shall have priority to payments to other stockholders in connection with a Major Transaction.

 

(j) Company
Prepayment Option upon Major Transaction. Upon the consummation of a Major Transaction, the Company may prepay in cash all
or any portion of the outstanding principal amount of this Note together with all accrued and unpaid interest thereon upon at
least 30 days prior written notice to the Holder (the “Company’s Prepayment Notice”) at a price equal
to 150% of the aggregate principal amount of this Note plus any accrued but unpaid interest (the “Company’s Prepayment
Price”); provided, however, that if the Holder has delivered a Conversion Notice to the Company or delivers a Conversion
Notice within such 30 day period following delivery of the Company’s Prepayment Notice, the principal amount of the Note
plus any accrued but unpaid interest designated to be converted may not be prepaid by the Company and shall be converted in accordance
with Section 3.3 hereof; provided further that if during the period between delivery of the Company’s Prepayment Notice
and the Company’s Prepayment Date (as defined below), the Holder shall become entitled and elects to deliver a Notice of
Prepayment at Option of Holder Upon Major Transaction or Notice of Prepayment at Option of Holder upon Triggering Event, then
such rights of the Holder shall take precedence over the previously delivered Company Prepayment Notice if the Holder so elects.
The Company’s Prepayment Notice shall state the date of prepayment which date shall be the date of the consummation of the
Major Transaction (the “Company’s Prepayment Date”), the Company’s Prepayment Price and the principal
amount of Note plus any accrued but unpaid interest to be prepaid by the Company. The Company shall deliver the Company’s
Prepayment Price on the Company’s Prepayment Date, provided, that if the Holder delivers a Conversion Notice before the
Company’s Prepayment Date, then the portion of the Company’s Prepayment Price which would be paid to prepay the Note
covered by such Conversion Notice shall be returned to the Company upon delivery of the Common Stock issuable in connection with
such Conversion Notice to the Holder. On the Company’s Prepayment Date, the Company shall pay the Company’s Prepayment
Price, subject to any adjustment pursuant to the immediately preceding sentence, to the Holder. If the Company fails to pay the
Company’s Prepayment Price by the 3rd business day after the Company’s Prepayment Date, the prepayment will be declared
null and void and the Company shall lose its right to serve a Company’s Prepayment Notice pursuant to this Section 3.6(j)
in the future. Notwithstanding the foregoing to the contrary, the Company may effect a prepayment pursuant to this Section 3.6(j)
only if trading in the Common Stock shall not have been suspended by the Securities and Exchange Commission or the Nasdaq Capital
Market (or other exchange or market on which the Common Stock is trading), and the Company is in material compliance with the
terms and conditions of this Note and the other Transaction Documents.

 

    	 

    	 

    

 

Section
3.7 Inability to Fully Convert.

 

(a) Maximum
Percentage. Notwithstanding anything to the contrary contained in this Note, this note shall not be convertible by the
Holder hereof, and no Optional Conversion shall occur and the Company shall not otherwise issue any Conversion shares pursuant
to Section 4 above, to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in
excess of 4.99% (the “Maximum Percentage”) of the issued and outstanding shares of the Common Stock. To the
extent the above limitation applies, the determination of whether this Note shall be convertible (via-a-vis other convertible,
exercisable or exchangeable securities owned by the Holder and its affiliates) shall, subject to such Maximum Percentage limitation,
be determined on the basis of the first submission for conversion, exercise or exchange (as the case may be). No prior inability
to convert this Note, or to issue Conversion Shares, pursuant to this paragraph shall have any effect on the applicability of
the provisions of this paragraph with respect to any subsequent determination of convertibility. For purposes of this paragraph,
beneficial ownership and all determination and calculations (including without limitation, with respect to calculations of percentage
ownership) shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “1934
Act”), and be implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial
ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such
Maximum Percentage limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Note. The
holders of Common Stock shall be third party beneficiaries of this paragraph and neither the Company nor any successor-in-interst
may not waive this Section 3.7(a) without the consent of the Holder. For any reason at any time, upon the written or oral request
of the Holder, the Company or its successor-in-interest shall within one (1) Business Day confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.

 

(b) Holder’
s Option if Company Cannot Fully Convert. If, upon the Company’s receipt of a Conversion Notice, the Company cannot
issue shares of Common Stock for any reason, including, without limitation, because the Company (w) does not have a sufficient
number of shares of Common Stock authorized and available, or (x) is otherwise prohibited by applicable law or by the rules or
regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the
Company or any of its securities from issuing all of the Common Stock which is to be issued to the Holder pursuant to a Conversion
Notice, then the Company shall issue as many shares of Common Stock as it is able to issue in accordance with the Holder’s
Conversion Notice and, with respect to the unconverted portion of this Note, the Holder, solely at Holder’s option, can
elect to:

 

(i) require
the Company to prepay that portion of this Note for which the Company is unable to issue Common Stock in accordance with the Holder’s
Conversion Notice (the “Mandatory Prepayment”) at a price per share equal to the Conversion Price as of such
Conversion Date (the “Mandatory Prepayment Price”); or

 

(ii) void
its Conversion Notice and retain or have returned, as the case may be, this Note (provided that the Holder’s voiding its
Conversion Notice shall not effect the Company’s obligations to make any payments which have accrued prior to the date of
such notice).

 

In
the event the Holder shall elect to convert any portion of the Note as provided herein, the Company cannot refuse conversion based
on any claim that the Holder or any one associated or affiliated with the Holder has been engaged in any violation of law, violation
of an agreement to which the Holder is a party or for any reason whatsoever, unless, an injunction from a court, on notice, restraining
and or adjoining conversion of all or part of the Note shall have been issued and the Company posts a surety bond for the benefit
of the Holder in an amount equal to 130% of the principal amount of the Note, which bond shall remain in effect until the completion
of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder in the event it obtains judgment.

 

    	 

    	 

    

 

(b) Mechanics
of Fulfilling Holder’s Election. The Company shall immediately send via facsimile to the Holder, upon receipt of a facsimile
copy of a Conversion Notice from the Holder which cannot be fully satisfied as described in Section 3.7(a) above, a notice of
the Company’s inability to fully satisfy the Conversion Notice (the “Inability to Fully Convert Notice”).
Such Inability to Fully Convert Notice shall indicate (i) the reason why the Company is unable to fully satisfy the Holder’s
Conversion Notice, (ii) the amount of this Note which cannot be converted and (iii) the applicable Mandatory Prepayment Price.
The Holder shall notify the Company of its election pursuant to Section 3.7(a) above by delivering written notice via facsimile
to the Company (“Notice in Response to Inability to Convert”).

 

(c) Payment
of Prepayment Price. If the Holder shall elect to have the Note prepaid pursuant to Section 3.7(a)(i) above, the Company shall
pay the Mandatory Prepayment Price to the Holder within 30 days of the Company’s receipt of the Holder’s Notice in
Response to Inability to Convert, provided that prior to the Company’s receipt of the Holder’s Notice in Response
to Inability to Convert the Company has not delivered a notice to the Holder stating, to the satisfaction of the Holder, that
the event or condition resulting in the Mandatory Prepayment has been cured and all Conversion Shares issuable to the Holder can
and will be delivered to the Holder in accordance with the terms of this Note. If the Company shall fail to pay the applicable
Mandatory Prepayment Price to the Holder on a timely basis as described in this Section 3.7(c) (other than pursuant to a dispute
as to the determination of the arithmetic calculation of the Prepayment Price), in addition to any remedy the Holder may have
under this Note and the Purchase Agreement, such unpaid amount shall bear interest at the rate of 2% per month (prorated for partial
months) until paid in full. Until the full Mandatory Prepayment Price is paid in full to the Holder, the Holder may (i) void the
Mandatory Prepayment with respect to that portion of the Note for which the full Mandatory Prepayment Price has not been paid,
(ii) receive back such Note, and (iii) require that the Conversion Price of such returned Note be adjusted to the lesser of (A)
the Conversion Price as in effect on the date on which the Holder voided the Mandatory Prepayment and (B) the lowest closing bid
price during the period beginning on the Conversion Date and ending on the date the Holder voided the Mandatory Prepayment.

 

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

 

ARTICLE
IV

MISCELLANEOUS

 

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

 

    	 

    	 

    

 

Section
4.2 Governing Law. This Note shall be governed by and construed in accordance with the internal laws of the State of
California, without giving effect to any of the conflicts of law principles which would result in the application of the substantive
law of another jurisdiction. This Note shall not be interpreted or construed with any presumption against the party causing this
Note to be drafted.

 

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

 

Section
4.4 Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note
shall be cumulative and in addition to all other remedies available under this Note, at law or in equity (including, without limitation,
a decree of specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance
with the provisions giving rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages
for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with respect to
payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder 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 and material harm to the Holder and that
the remedy at law for any such breach may be inadequate. Therefore the Company agrees that, in the event of any such breach or
threatened breach, the Holder shall be entitled, in addition to all other available rights and remedies, at law or in equity,
to seek and obtain such equitable relief, including but not limited to an injunction restraining any such breach or threatened
breach, without the necessity of showing economic loss and without any bond or other security being required.

 

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

 

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

 

Section
4.7 Amendments. This Note may not be modified or amended in any manner except in writing executed by the Company and
the Holder.

 

Section
4.8 Compliance with Securities Laws. The Holder of this Note acknowledges that this Note is being acquired solely for
the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder shall not offer,
sell or otherwise dispose of this Note. This Note and any Note issued in substitution or replacement therefor shall be stamped
or imprinted with a legend in substantially the following form:

 

“THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL
IN THE FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY TO THE COMPANY THAT THIS NOTE MAY BE SOLD, TRANSFERRED, HYPOTHECATED
OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND SUCH STATE SECURITIES LAWS.”

 

    	 

    	 

    

 

Section
4.9 Consent to Jurisdiction. Each of the Company and the Holder (i) hereby irrevocably submits to the exclusive jurisdiction
of the State of New York for the purposes of any suit, action or proceeding arising out of or relating to this Note and (ii) hereby
waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper. Each of the Company and the Holder consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to it under the Purchase Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 4.9 shall affect
or limit any right to serve process in any other manner permitted by law. Each of the Company and the Holder hereby agree that
the prevailing party in any suit, action or proceeding arising out of or relating to this Note shall be entitled to reimbursement
for reasonable legal fees from the non-prevailing party.

 

Section
4.10 Parties in Interest. This Note shall be binding upon, inure to the benefit of and be enforceable by the Company,
the Holder and their respective successors and permitted assigns.

 

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

 

Section
4.12 Company Waivers. Except as otherwise specifically provided herein, the Company and all others that may become liable
for all or any part of the obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest
and all other demands’ and notices in connection with the delivery, acceptance, performance and enforcement of this Note,
and do hereby consent to any number of renewals of extensions of the time or payment hereof and agree that any such renewals or
extensions may be made without notice to any such persons and without affecting their liability herein and do further consent
to the release of any person liable hereon, all without affecting the liability of the other persons, firms or Company liable
for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY JURY.

 

(a) No
delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto, shall
operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights
on any one occasion be deemed a waiver of the same right or rights on any future occasion.

 

(b) THE
COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED
BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS
SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

Section
4.13 The Holder acknowledges that Company’s willingness to issue this Note is based on the facts represented to the Company
by the Holder as set forth in the Purchase Agreement.

 

HOLDER
AND THE COMPANY IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST HOLDER OR
THE COMPANY IN RESPECT OF THIS NOTE OR ARISING OUT OF ANY DOCUMENT, INSTRUMENT OR AGREEMENT EVIDENCING, GOVERNING OR SECURING
THIS NOTE. THE COMPANY ACKNOWLEDGES THAT THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS PART OF A COMMERCIAL TRANSACTION.

 

Balance
of page left blank – signature page follows

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, this Note has been executed by the Company as of the day and year first set forth above.

 

	 	BOXLIGHT
    CORPORATION
	 	 	 
	 	By:	 
	 	Name:	Mark
    Elliott
	 	Title:	Chief
    Executive OfficerSUBSCRIPTION
AGREEMENT

 

BY
AND BETWEEN

 

CARDAX,
INC.

 

AND

 

THE
PURCHASERS PARTY HERETO

 

DATED
AS OF __________, 2016

 

    	 	 	 

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE
    I	DEFINITIONS	1
	1.1	Definitions	1
	 	 	 
	ARTICLE
    II	PURCHASE
    AND SALE	3
	2.1	Closing	3
	2.2	Deliveries	4
	2.3	Closing
    Conditions	4
	 	 	 
	ARTICLE
    III	REPRESENTATIONS
    AND WARRANTIES	5
	3.1	Representations
    and Warranties of the Company	5
	3.2	Representations
    and Warranties of the Purchasers	6
	 	 	 
	ARTICLE
    IV	OTHER
    AGREEMENTS OF THE PARTIES	8
	4.1	Transfer
    Restrictions	8
	4.2	Non-Public
    Information	10
	4.3	Equal
    Treatment of Purchasers	10
	4.4	Use
    of Proceeds	10
	4.5	Form
    D; Blue Sky Filings	10
	4.6	Replacement
    of Certificates	10
	 	 	 
	ARTICLE
    V	MISCELLANEOUS	11
	5.1	Fees
    and Expenses	11
	5.2	Entire
    Agreement	11
	5.3	Notices	11
	5.4	Amendments;
    Waivers	12
	5.5	Headings	12
	5.6	Successors
    and Assigns	12
	5.7	Third-Party
    Beneficiaries	12
	5.8	Governing
    Law; Exclusive Jurisdiction.	12
	5.9	Attorney
    Fees	13
	5.10	Survival	13
	5.11	Counterparts
    and Execution	13
	5.12	Severability	13
	5.13	Independent
    Nature of Purchasers’ Obligations and Rights	14
	5.14	Saturdays,
    Sundays, Holidays, etc.	14
	5.15	Construction	14
	5.16	WAIVER
    OF JURY TRIAL	14

 

	Attachments:	 	 
	 	 	 
	Schedule
    A	Check
    and Wire Transfer Instructions	 
	Schedule
    B	Certain
    Additional Risk Factors	 
	Exhibit
    I	Form
    of Warrant	 

 

    	 	i	 

    	 

    

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) is dated as of the date set forth on the signature page hereof, by
and among Cardax, Inc., a Delaware corporation (the “Company”), and each Person that is a Purchaser under the
terms of this Agreement. Certain capitalized terms used in this Agreement are defined in Section 1.1.

 

WHEREAS,
the Company is a public company with its shares of common stock, par value $0.001 per share (“Common Stock”)
traded on the OTCQB under the symbol “CDXI”.

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act, and Rule
506 promulgated thereunder, the Company desires to sell to each Purchaser, and each Purchaser, severally and not jointly, desires
to purchase Units (each, a “Unit”), where each Unit has: (i) one share of Common Stock; (ii) three warrants
(each, a “Warrant” and, collectively, the “Warrants”), each Warrant entitling the Purchaser
of a Unit to purchase one share of Common Stock at a price per share of $0.08, $0.12, or $0.16, respectively, subject to certain
adjustment as more fully described in this Agreement in the form attached to this Agreement as Exhibit I.

 

WHEREAS,
this Agreement and the offering of the Units by the Company are part of an offering of an aggregate amount that is up to $500,000
(or such greater amount as may be determined by the Company) and that in such offering there will be purchases and sales of units
that are similar to the Units purchased under this Agreement by the Purchaser on similar terms and conditions; provided, however,
the Company reserves the right to suspend or terminate any additional purchases and sales of such similar units and to change
the terms and conditions with respect to the offering of any such units or other securities by or on behalf of the Company;

 

WHEREAS,
the purchase price for each Unit (“Unit Price”) shall be $0.08.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, each of the Company and the Purchasers, intending to be legally bound
hereby, hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

    	 		 

     

    

 

“Closing”
means the closing of the purchase and sale of the Units pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day on which the Purchasers purchase the Units under the terms of this Agreement, including
payment to the Company of the Purchase Price payable by each of the Purchasers.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” shall have the meaning ascribed to such term in the recitals to this Agreement.

 

“Company
Counsel” means Herrick, Feinstein LLP, 2 Park Avenue, New York, NY 10016.

 

“Company
Sub” means Cardax Pharma, Inc., a Delaware corporation and a wholly owned subsidiary of the Company.

 

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

 

“Execution
Date Information” shall have the meaning ascribed to such term in Section 3.2(f).

 

“Offering”
means this offering of the Units.

 

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

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Purchaser”
means a Person that is a party to this Agreement as a purchaser, or his, her or its successors and assigns.

 

“Securities”
means all Units, Common Stock, Warrants, and shares of the Company’s Common Stock, into which the Warrants are exercisable.

 

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

 

“Shares”
means newly issued shares of the Company’s Common Stock, issued or issuable to each Purchaser pursuant to the exercise of
the Warrant, which shares, when issued in accordance with the terms of such securities, shall be duly authorized, validly issued,
fully paid and non-assessable.

 

    	2 

    	 

    

 

“Short
Sale” means any securities transaction in which a Person sells a number of shares or other units of a security that
are not owned by such Person at the time of such sale.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Units purchased hereunder which shall equal
the number of Units to be purchased by such Purchaser multiplied by the Unit Price in United States dollars, which amount shall
be paid by the Purchaser making a payment to the Company as provided in this Agreement.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company
formed or acquired after the date hereof.

 

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

 

“Trading
Market” means any of the following markets or exchanges on which the Company’s Common Stock is listed or quoted
for trading on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange, OTCQB or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement and all exhibits and schedules thereto and hereto and any other documents or agreements
executed in connection with the transactions contemplated hereunder.

 

ARTICLE
II

PURCHASE AND SALE

 

2.1Closing.

 

(a)The
Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.

 

(b)On
the Closing Date, upon the terms and subject to the conditions set forth herein, the Company shall issue and sell to each of the
Purchasers, and each of the Purchasers, severally and not jointly, shall purchase, that number of Units that is set forth on the
signature page of such Purchaser to the extent accepted by the Company.

 

(c)Upon
satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of the
Company or such other location as the Company may designate to the Purchaser.

 

    	3 

    	 

    

 

2.2Deliveries.

 

(a)On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser accepted by the Company, this
Agreement duly executed by the Company.

 

(b)On
the date that this Agreement is executed and delivered by a Purchaser to the Company and the Company accepts the subscription
of such Purchaser (with such acceptance to be evidenced by the Company’s countersignature of the Purchaser’s signature
page hereinbelow), such Purchaser shall deliver or cause to be delivered to the Company:

 

(i)a
check or wire transfer of the Subscription Amount of such Purchaser in accordance with the check or wire transfer instructions
set forth on Schedule A to this Agreement; and

 

(ii)a
counterpart of this Agreement duly executed by such Purchaser.

 

(c)On
the Closing Date, the Company and each of the Purchasers shall close the purchase and sale of the Units and the Company shall
deliver or cause to be delivered to each Purchaser evidence of the issuance and delivery of the shares of Common Stock and Warrants
to be purchased by each Purchaser by appropriate instructions to the stock transfer agent of the Company.

 

2.3Closing
Conditions.

 

(a)The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)the
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless such representation is made as of a specific date therein in which case such representation and warranty shall be accurate
as of such date); and

 

(ii)all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed.

 

(b)The
respective obligations of each of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:

 

(i)The
representations and warranties made by the Company in this Agreement shall be true and correct in all material respects (provided
that any such representations and warranties that are by their terms qualified by materiality shall (as so qualified) be true
in all respects) as of the date hereof and at and as of the time of the Closing as though such representations and warranties
were made at and as of such time (except in any case that representations and warranties that expressly speak as of a specified
date or time need only be true and correct (subject to the foregoing parenthetical as to materiality) as of such specified date
or time);

 

    	4 

    	 

    

 

(ii)The
Company shall have performed and complied in all material respects with all covenants and agreements required by this Agreement
to be performed or complied with by it prior to or at the Closing;

 

(iii)Without
limiting item (ii) above, the Company shall have delivered to the Purchasers each of the items required to be delivered by it
pursuant to Section 2.2(c);

 

(iv)No
preliminary or permanent injunction or other order that declares this Agreement invalid or unenforceable in any respect or that
prevents the consummation of the transactions contemplated hereby shall be in effect; and

 

(v)From
the date hereof to the Closing Date, the Commission shall not have issued a stop trading order with respect to the Company’s
Common Stock.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

3.1Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to each Purchaser as
of the date hereof and as of the Closing Date (unless such representation is made as of a specific date therein in which case
such representation and warranty shall be accurate as of such date):

 

(a)Organization
and Qualification. Each of the Company and the Company Sub is an entity duly incorporated, validly existing and in good standing
under the laws of the jurisdiction of its incorporation, with the requisite power and authority to own and use its properties
and assets and to carry on its business as currently conducted.

 

(b)Capitalization.
The capitalization of the Company is properly reflected by the SEC Filings.

 

(c)Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Units to the Purchasers as contemplated hereby. The issuance
and sale of the Units hereunder does not contravene the rules and regulations of the Trading Market applicable to the Company.

 

(d)Disclosure.

 

(i)Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information within the meaning of the
Exchange Act.

 

(ii)The
Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3.2.

 

    	5 

    	 

    

 

(e)SEC
Filings. The documents (“SEC Filings”) that have been filed by the Company with the Securities and Exchange
Commission do not (as amended and supplemented) contain a material misstatement of fact or does not omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading,
as interpreted by the Exchange Act.

 

3.2Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants, severally
and not jointly, as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)Organization;
Authority.

 

(i)Such
Purchaser is either an individual or an entity that is duly incorporated or formed, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company
or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and
otherwise to carry out its obligations hereunder and thereunder.

 

(ii)The
execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the
Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar
action, as applicable, on the part of such Purchaser.

 

(iii)Each
Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in
accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against
it in accordance with its terms, except: (A) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (B)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (C)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)Own
Account. Such Purchaser understands that each of the shares of Common Stock and the Warrants and the Shares are “restricted
securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring
the Units as principal for its own account and not with a view to or for distributing or reselling such Units (or the shares of
Common Stock or Warrants or Shares) or any part thereof in violation of the Securities Act or any applicable state securities
law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with any other person to distribute or regarding the
distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation
and warranty not limiting such Purchaser’s right to sell the Securities in compliance with applicable federal and state
securities laws). Such Purchaser is acquiring the Units hereunder in the ordinary course of its business or investment strategy.

 

    	6 

    	 

    

 

(c)Purchaser
Status. At the time such Purchaser was offered the Units, it was, and as of the date hereof it is an “accredited investor”
as defined in Rule 501 under the Securities Act; or (ii) a Non U.S. Person within the meaning of Regulation S under the Securities
Act.

 

(d)Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the shares of Common Stock or Warrants (and the Shares), and has so evaluated the merits and risks of such investment. Such
Purchaser is able to bear the economic risk of an investment in the shares of Common Stock, the Warrants and Shares and, at the
present time, is able to afford a complete loss of such investment.

 

(e)Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser shall not
directly or indirectly, nor shall any Person acting on behalf of or pursuant to any understanding with such Purchaser, execute
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of date of this
Agreement and the Closing Date. Notwithstanding the foregoing, the limitation set forth in this Section 3.2(e) shall not
be applicable to any investments of a Purchaser that are made or disposed of without the discretion of such Purchaser. Other than
to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection
with this transaction and shall use the information provided in this Agreement or any investment presentation provided to such
Purchaser only in consideration of making an investment in the Units.

 

(f)Disclosure.

 

(i)Each
Purchaser acknowledges and agrees that the information provided and available to the Purchaser at the time that this Agreement
is executed and delivered (including, but not limited to the SEC Filings) (the “Execution Date Information”)
may not include all of the material information that would be provided to a purchaser of securities in an offering of securities
that is registered under the Securities Act and included in a prospectus that is required to be delivered in accordance with Section
5 of the Securities Act.

 

(ii)Each
Purchaser agrees that it has had an unrestricted opportunity to: (a) obtain additional information concerning the offering of
the Units, including without limitation, information concerning the Company and any other matters relating directly or indirectly
to the purchase of the Units by such Purchaser; and (b) ask questions of, and receive answers from, the executives of the Company
concerning the terms and conditions of this offering of Units and to obtain such additional information as may have been necessary
to verify the accuracy of the information contained in the investor presentation provided to the Purchaser or any other information
that may have been provided to the Purchaser.

 

(iii)Each
Purchaser acknowledges and agrees that no Person is authorized by the Company and no Person will be authorized by the Company
or any of its Affiliates to provide any information regarding the solicitation of investment interest or the offering of the Units
other than the information that is provided in the investor presentation provided by the Company and such other information or
documentation that is provided expressly by the Company to the Purchasers for such purposes.

 

    	7 

    	 

    

 

(iv)Each
Purchaser and/or Purchaser’s advisor acknowledges that it has received and reviewed the SEC Filings, including the summary
of risks contained in the “Risk Factors” sections in such documents and Schedule B and certain matters regarding
the use of proceeds set forth in Section 4.4 and had access to or been furnished with sufficient facts and information to evaluate
an investment in the Company and a reasonable opportunity to ask questions of and receive answers from a person or persons acting
on behalf of the Company concerning the Company and all such questions have been answered to the full satisfaction of the Purchaser.

 

(g)Due
diligence. Each Purchaser acknowledges and agrees that it has: (A) carefully reviewed the investor presentation; (B) performed
its own due diligence investigation and has been furnished with other materials that it considers relevant to the purchase of
the Units; and (C) is not relying upon, and has not relied upon, any statement, representation or warranty made by any person,
except for the statements, representations and warranties contained in this Agreement.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1Transfer
Restrictions.

 

(a)The
shares of Common Stock, the Warrants and Shares may only be disposed of in compliance with state and federal securities laws.
After the Final Closing Date, the Company agrees to take appropriate action to promptly prepare and file a registration statement
with the SEC to register the Shares under the Securities Act, it being acknowledged that there is no assurance that all of the
Shares will be included in a registration statement that is declared effective under the Securities Act. In connection with any
transfer of any of shares of Common Stock or Warrants or Shares other than pursuant to an effective registration statement or
Rule 144, to the Company or to an Affiliate of a Purchaser, the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred
shares of Common Stock or Warrants or Shares under the Securities Act.

 

    	8 

    	 

    

 

(b)Legend
on Share Certificates. The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend
on any of the certificates representing the shares of Common Stock or Warrants or Shares in the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE CORPORATION. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(c)The
legends set forth in Section 4.1(b) shall, to the fullest extent permitted, be removed , (i) while a registration statement
covering the resale of such security is effective under the Securities Act, (ii) following any sale of such shares of Common Stock
or Warrants or Shares pursuant to Rule 144, (iii) if such shares of Common Stock or Warrants or Shares are eligible for sale under
Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule
144 as to such shares of Common Stock or Warrants or Shares and without volume or manner-of-sale restrictions, or (iv) if such
legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission).

 

(d)Each
Purchaser, severally and not jointly with the other Purchasers, agrees that such Purchaser will sell any shares of Common Stock
or Warrants or Shares only pursuant to either: (i) the registration requirements of the Securities Act, including any applicable
prospectus delivery requirements; or (ii) an exemption therefrom, and that if shares of Common Stock or Warrants or Shares are
sold pursuant to any such effective registration statement, they will be sold in compliance with the plan of distribution set
forth therein, and acknowledges that the removal of the restrictive legend from certificates representing shares of Common Stock
or Warrants or Shares as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

    	9 

    	 

    

 

4.2Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto such Purchaser, agent or counsel shall have entered into a written agreement with the Company regarding the confidentiality
and use of such information or such Person is otherwise obligated to maintain the confidentiality of such information and not
use such information in violation of applicable law. The Company understands and confirms that each Purchaser shall be relying
on the foregoing covenant in evaluating and providing any information it receives in connection with its consideration of purchasing
any of the Units.

 

4.3Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
is also offered to all of the Purchasers. For clarification purposes, this provision constitutes a separate right granted to each
Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers
as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Shares, the shares of the Company’s Common Stock issuable upon the exercise of the Warrants or
otherwise. The provisions of this Agreement do not, and in no manner shall be interpreted to, restrict the right, ability and
authority of the Company to sell any securities, including securities identical to, exchangeable for, convertible into, or similar
to, any of the securities offered and sold under this Agreement.

 

4.4Use
of Proceeds. The Company will use the proceeds of this Offering for its product development and general corporate purposes.

 

4.5Form
D; Blue Sky Filings. The Company shall timely file a Form D with respect to the Units as required under Regulation D, provide
a copy thereof, promptly upon request of any Purchaser, and take such action as the Company shall reasonably determine is necessary
in order to obtain an exemption for, or to qualify the Units for, sale to the Purchasers at the Closing under applicable securities
or “Blue Sky” laws of the states of the United States, and provide evidence of such actions promptly upon request
of any Purchaser.

 

4.6Replacement
of Certificates. If any certificate or instrument evidencing any shares of Common Stock or Warrants or Shares is mutilated,
lost, stolen or destroyed, the Company shall cause the Company to, and the Company shall, issue or cause to be issued in exchange
and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new
certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction.
The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement shares of Common Stock or Warrants or Shares and may be
required to provide an indemnity in favor of the Company.

 

    	10 

    	 

    

 

ARTICLE
V

MISCELLANEOUS

 

5.1Fees
and Expenses.

 

(a)Except
as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement.

 

5.2Entire
Agreement. The Transaction Documents contain the entire understanding of the parties with respect to the subject matter hereof
and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

 

5.3Notices.

 

(a)All
notices (including any consent required of any party to this Agreement) given or permitted to be provided pursuant to this Agreement
shall be in writing and shall be mailed by certified mail, delivered by professional courier or hand, or transmitted via email
or facsimile, to such party’s address as set forth below:

 

(i)If
such notice is to the Company, then to the Company at:

 

Cardax,
Inc.

2800
Woodlawn Drive, Suite 129

Honolulu,
HI 96822

Attention:
David G. Watumull, President and CEO

Email:
dwatumull@cardaxpharma.com

Fax:
808-237-5901

 

With
a copy to (which copy shall not constitute notice):

 

Herrick,
Feinstein LLP

2
Park Avenue

New
York, NY 10016

Attn:
Richard M. Morris, Esq.

Email:
rmorris@herrick.com

Fax:
212-545-3371

 

(ii)If
such notice is to a Purchaser, then to the address of the Purchaser set forth on the signature page of such Purchaser to this
Agreement.

 

(b)Change
of Address. Any Purchaser may change the address that notices should be delivered to it by delivering a notice with the corrected
information to the Company. The Company may change the address that notices should be delivered to it by delivering a notice with
the corrected information to each Purchaser then a party to this Agreement. In each case, such corrected information to be effective
only upon delivery of such notice.

 

    	11 

    	 

    

 

(c)Deemed
Delivery. Except as otherwise expressly provided in this Agreement, each such notice shall be effective on the date three
days after the date of mailing or, if delivered by hand or professional courier, or transmitted via email or facsimile with delivery
receipt (or acknowledgement or confirmation which may be by electronic means), on the date of delivery, provided, however, that
notices to the Company will be effective upon receipt.

 

5.4Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except by means of a written agreement
signed, in the case of an amendment, by the Company and each of the Purchasers subject to such waiver, modification, supplement
or amendment. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

5.5Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.6Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger); except that all rights and obligations of the Company under this Agreement shall be assigned
to, and assumed by, the Company effective on Closing Date, provided that no such assignment shall relieve the Company of any of
its obligations hereunder. Any Purchaser may assign any or all of its rights under this Agreement to any Person; provided that
such assignment is approved by the Company, which approval shall not be unreasonably withheld, delayed or conditioned and such
transferee agrees in writing to be bound by the provisions of the Transaction Documents that apply to the “Purchasers”
and such transferee is able and makes the representations and warranties to the Company provided under Section 3.2.

 

5.7Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

5.8Governing
Law; Exclusive Jurisdiction.

 

(a)All
questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof.

 

(b)Each
party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated
by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York, Borough of Manhattan.

 

    	12 

    	 

    

 

(c)Each
party 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 (including with respect to the enforcement of any of the Transaction Documents), 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 improper or is an inconvenient venue for such proceeding. 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 via registered or certified mail or overnight delivery (with evidence of delivery) to such party at
the address in effect for notices to it under this 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 other manner permitted by law.

 

5.9Attorney
Fees. If one or more parties shall commence an action, suit or proceeding to enforce any provision of the Transaction Documents,
then the prevailing party or parties in such action, suit or proceeding shall be reimbursed by the other party or parties to such
action, suit or proceeding for the reasonable attorneys’ fees and other costs and expenses incurred by the prevailing party
or parties with the investigation, preparation and prosecution of such action, suit or proceeding.

 

5.10Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Units for the applicable
statute of limitations.

 

5.11Counterparts
and Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by email delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page was an original thereof.

 

5.12Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

    	13 

    	 

    

 

5.13Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereof or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented, or has had the opportunity
to be represented, by its own separate legal counsel in its review and negotiation of the Transaction Documents.

 

5.14Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

5.15Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto.

 

5.16WAIVER
OF JURY TRIAL.

 

EACH
PARTY TO THIS AGREEMENT HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY EACH PARTY TO THIS AGREEMENT AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO
A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EITHER PARTY TO THIS AGREEMENT IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN
ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 

    	14 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned have caused this Subscription Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

Cardax,
inc. 

 

	By:		 
	Name:	David
    G. Watumull	 
	Title:	President
    and CEO	 

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 

    	 	 	 

     

    

 

PURCHASER
SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

 

IN
WITNESS WHEREOF, the undersigned have caused this Subscription Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

Name
of Purchaser: _________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: __________________________________

 

Name
of Authorized Signatory: ________________________________________________

 

Title
of Authorized Signatory: _________________________________________________

 

Email
Address of Authorized Signatory: _________________________________________

 

Facsimile
Number of Authorized Signatory: ______________________________________

 

Address
for Notice to Purchaser: ________________________________________________

 

 

 

 

 

Address
for Delivery of Units to Purchaser (if not same as address for notice):

 

Subscription
Amount: $_________________(U.S.)

 

Number
of Units: _________________

 

Social
Security or EIN Number: _______________________

 

Bank
or Brokerage Account Information:

 

[Each
Purchaser shall also deliver the applicable tax forms such as the Form W-9 and a certificate that they are an accredited investor,
unless waived by the Company]

 

Accepted
by the Company for ___________ Units:

 

	CARDAX,
    INC. 	Date:
    	 
	 	 	 	 
	By:	 	 	 
	Name:	David
    G. Watumull	 	 
	Title:	President
    and CEO	 	 

 

    	 	 	 

     

    

 

SCHEDULE
A

 

Check
and Wire Transfer Instructions

 

Checks
shall be made payable to the order of

 

Cardax
Pharma, Inc.

 

Wire
Transfers shall be made in accordance with the following:

 

	 	●	Bank
    Name: Bank of Hawaii
	 	 	 
	 	●	SWIFT
    Code: BOHIUS77
	 	 	 
	 	●	Routing
    #: 121301028
	 	 	 
	 	●	Account
    #: **********
	 	 	 
	 	●	Account
    Name: Cardax Pharma, Inc.

 

In
addition, the name of each Purchaser shall be provided with each payment.

 

    	 	 	 

     

    

 

SCHEDULE
B

 

Certain
Additional Risk Factors

 

In
addition to the risk factors that are summarized in the Company’s SEC Filings, you should consider the following:

 

An
investment in our Common Stock, and Warrants involves a high degree of risk. You should carefully consider the risks summarized
in the Company’s SEC Filings, together with all of the other information provided to you in this Offering, before making
an investment decision. If any of the following risks actually occur, our business, financial condition or results of operations
could suffer. In that case, the trading price of our shares of Common Stock could decline, and you may lose all or part of your
investment. You should read the section entitled “Forward-Looking Statements” included in our SEC Filings for a discussion
of what types of statements are forward-looking statements, as well as the significance of such statements.

 

The
terms of the Offering, the price for the shares of Common Stock and Warrants, including the exercise price, were not independently
valued and may not be indicative of the future price of our Common Stock. 

 

Our
board of directors determined the terms and conditions of the Offering, including the price per share for each Unit of Common
Stock and the Warrant. The price per Unit and the exercise price were not necessarily determined to be equal to the market price
of the Company’s Common Stock on the OTCQB or the fair value of the Company. If you purchase Units in the Offering, you
may not be able to sell any of the securities at or above the subscription price. The trading price of the Company’s Common
Stock will be determined by the marketplace, and will be influenced by many factors outside of the Company’s control, including
consumer acceptance of the Company’s astaxanthin consumer health products, prevailing interest rates, investor perceptions,
securities analyst research reports and general industry, geopolitical and economic conditions. Publicly traded stocks, including
stocks of pharmaceutical and nutraceutical companies, often experience substantial market price volatility. These market fluctuations
might not be related to the operating performance of particular companies whose shares are traded. Accordingly, we cannot assure
you that if you purchase Units in the Offering you will later be able to sell those Units at or above the subscription price.

 

The
Securities are “Restricted Securities” under the Securities Act and there is no assurance that they will be registered.

 

The
Units sold in this Offering and the Common Stock issuable upon exercise of the Warrants will be restricted securities under United
States federal and applicable state securities laws. The Common Stock will be restricted securities unless and until the shares
of Common Stock are registered. Restricted securities may not be transferred, sold or otherwise disposed of in the United States,
except as permitted under United States federal and state securities laws, pursuant to registration or an exemption therefrom.
You should be prepared to hold the Securities sold and the Common Stock issuable upon the exercise of the Warrants for an indefinite
period.

 

    	 	 	 

     

    

 

None
of the Shares of Common Stock issued in the Offering or upon the exercise of the Warrants may be sold unless, at the time of such
intended sale, there is a current registration statement covering the resale of the securities or there exists an exemption from
registration under the Securities Act, and such securities have been registered, qualified, or deemed to be exempt under applicable
securities or “blue sky” laws in the state of residence of the seller or in the state where sales are being affected.

 

If
there is not an effective registration statement covering the resale of the Shares, Purchasers will be precluded from disposing
of such Shares unless such Shares may become eligible to be disposed of under the exemptions provided by Rule 144 under the Securities
Act without restriction. If the Shares are not registered for resale under the Securities Act, or exempt therefrom, and registered
or qualified under applicable securities or “blue sky” laws, or deemed exempt therefrom, the value of the Securities
will be greatly reduced.

 

Purchasers
will be relying on management’s judgment regarding the use of proceeds from this Offering and we may apply the proceeds
to uses that may not increase the value of your investment or improve our operating results.

 

We
expect to use the proceeds of this Offering to further develop our technology or utilize other technology, begin focused and targeted
marketing efforts, and for general working capital purposes. Our management will have broad discretion with respect to the use
of the net proceeds from this Offering and Purchasers will be relying on the judgment of our management regarding the application
of these proceeds. We cannot assure you that the net proceeds will be used for purposes that ultimately increase our results of
operations, business prospects or the value of your investment.

 

An
investment in the Company is speculative and there can be no assurance of any return on any such investment.

 

An
investment in the company is speculative and there is no assurance that Purchasers will obtain any return on their investment.
Purchasers will be subject to substantial risks involved in an investment in the Company, including the risk of losing their entire
investment.

 

Insufficient
Capital

 

There
can be no assurance or guarantee that the Company will raise sufficient capital, through this Offering, to meet the Company’s
business objectives. The audited financial statements include a going concern qualification and the Company has significant liquidity
issues. There can be no assurance that other obligations that are necessary for the Company will not be incurred or that the budgeted
expenditures will not be subject to any material increase.

 

Assuming
$500,000 is raised, it is estimated that our limited cash resources would be sufficient to continue operations on a limited budget
only through August 30, 2016.

 

*****

 

    	 	 	 

     

    

 

EXHIBIT
I

 

Form
of Warrant

 

    	 	 	 

     

    

 

WARRANT
NUMBER 

G
_______________

 

CARDAX,
INC.

 

WARRANT
TO PURCHASE SHARES OF COMMON STOCK

 

NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON ITS EXERCISE HAVE BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR
SALE, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
SECURITIES UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

THIS
CERTIFIES THAT, for value received, ________________________________ (together with its successors and assigns, the “Holder”),
commencing _____________ (the “Date of Issue”) is entitled to purchase, subject to the conditions set
forth below, at any time and from time to time, in whole or in part, during the Exercise Period (as defined in Section 1.3),
that number of fully paid and non-assessable shares (the “Shares”) of common stock, par value $0.001
per share (“Common Stock”), of Cardax, Inc., a Delaware corporation (the “Company”),
that is not more than the Warrant Share Number (as defined in Section 1.1), subject to the further provisions of this warrant
to purchase newly issued shares of Common Stock (the “Warrant”), at the Warrant Exercise Price (as defined
in Section 1.2), subject to the further provisions of this Warrant.

 

		1.	EXERCISE
                                         OF WARRANT

 

The
terms and conditions upon which this Warrant may be exercised, and the shares of Common Stock covered hereby which may be purchased
hereunder, are as follows:

 

1.1.Warrant.

 

(a)The
Company hereby issues to the Holder this Warrant.

 

    	 	 	 

    	 

    

 

(b)The
number of Shares that the Holder is entitled to purchase under the terms and conditions of this Warrant (the “Warrant
Share Number”) is equal to ___________ Shares.

 

(c)For
the purposes of this Agreement, the following terms shall have the respective meanings ascribed thereto in this Section 1.1(c):

 

(i)“Affiliate”
shall have the meaning ascribed to such term under the Securities Act and the regulations promulgated thereunder.

 

(ii)“Business
Day” shall mean any date that the banks and the securities markets are in New York, New York open for business for
the conduct of business in the regular course on such date.

 

(iii)“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(iv)“Person”
shall mean any individual, trust or entity or governmental authority or agency.

 

1.2.The
Warrant Exercise Price. The exercise price for the Warrant (the “Warrant Exercise Price”) shall
be equal, per share, to $______, subject to adjustment as provided in Section 4:

 

1.3.Method
of Exercise.

 

(a)The
Holder of this Warrant may exercise, in whole or in part, the purchase rights evidenced by this Warrant during the period commencing
on the Date of Issue of this Warrant and ending on _____________, unless extended by the Company in its sole discretion (the “Exercise
Period”). Such exercise shall be effected by:

 

(i)the
surrender of the Warrant, together with a duly executed copy of the form of subscription attached hereto (a “Notice
of Exercise”), to the Secretary of the Company at its principal offices;

 

(ii)the
payment to the Company, by certified check or bank draft payable to its order, of an amount equal to the aggregate Warrant Exercise
Price for the number of Shares for which the purchase rights hereunder are being exercised; and

 

(iii)the
delivery to the Company, if necessary, to assure compliance with federal and state securities laws, of an instrument executed
by the Holder certifying that the Shares are being acquired for the sole account of the Holder and not with a view to any resale
or distribution.

 

    	2 

    	 

    

 

(b)Conditions
to Exercise of the Warrant.

 

(i)Notwithstanding
the provisions of any provision of this Warrant, including Section 1.3, the exercise of this Warrant is contingent upon
the Company’s satisfaction that the issuance of the Shares for which this Warrant is being exercised is exempt from the
requirements of the Securities Act and all applicable state securities laws or the Shares are duly registered under the Securities
Act. The Holder of this Warrant agrees to execute any and all documents deemed necessary by the Company to effect the exercise
of this Warrant.

 

(ii)Notwithstanding
anything to the contrary contained herein, the number of Shares that may be acquired by the Holder upon any exercise of this Warrant
(or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance),
the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose
beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange
Act (the “Beneficial Ownership”, does not exceed 4.99% of the total number of issued and outstanding
shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise) (the “Maximum
Percentage”). For the avoidance of doubt, except as otherwise provided herein in connection with a transaction described
in Section 4.3 (a “Fundamental Transaction”), this Warrant may not be exercised in whole or in part
if the Holder’s Beneficial Ownership (as calculated herein) exceeds the Maximum Percentage prior to such exercise. For such
purposes, “Beneficial Ownership” shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. This provision shall not restrict the number of shares of Common Stock
which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such
Holder may receive in the event of a Fundamental Transaction of this Warrant or under any other provision of Section 4.
This restriction may not be waived except by the Holder providing a notice to the Company as provided herein. For any reason at
any time, upon the written or oral request of the Holder, the Company shall promptly confirm in writing (which may be by electronic
mail) to the Holder the number of shares of Common Stock then outstanding. To the extent that the limitation contained in this
Section 1.3(b)(ii) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned
by such Holder together with any Affiliates) and of which a portion of this Warrant is exercisable shall be in the sole discretion
of a Holder, and the submission of a Notice of Exercise shall be deemed to be each Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates) and of which portion
of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination other than its obligation in this Section 1.3(b)(ii) above to,
upon the Holder’s request, confirm in writing to the Holder the number of shares of Common Stock then outstanding. Notwithstanding
any provision of this Section 1.3(b)(ii) to the contrary, the limitations on the exercise of this Warrant under this Section
1.3(b)(ii) shall not be applicable from and after the date that is 61 days after the date that the Holder provides written
notice to the Company that the Holder elects to have Beneficial Ownership of the Company’s Common Stock in excess of the
Maximum Percentage, in which case such Holder shall have the right to exercise this Warrant without the limitations of this Section
1.3(b)(ii); provided, that the limitations of this Section 1.3(b)(ii) shall again be applicable to any assignee
of this Warrant until 61 days after such assignee provides such notice to the Company.

 

    	3 

    	 

    

 

1.4.Issuance
of Shares. In the event the purchase rights evidenced by this Warrant are exercised in whole or in part, one or more certificates
for the purchased Shares shall be issued as soon as practicable thereafter to the Holder.

 

1.5.Partial
Exercise. If this Warrant shall have been exercised only in part, then the Company shall, at the time of delivery of the certificate
or certificates for the Shares purchased upon such exercise, also deliver to the Holder a new Warrant evidencing the remaining
outstanding unexercised balance of Shares purchasable hereunder.

 

1.6.Cancellation.
Notwithstanding anything in this Warrant to the contrary, this Warrant shall be cancelled, and shall not be exercisable, if it
is not exercised before the expiration of the Exercise Period.

 

		2.	TRANSFER
                                         RESTRICTIONS

 

2.1.Transfer.
This Warrant and the Shares issuable upon exercise hereof are “restricted securities” as such term is defined by the
rules and regulations promulgated under the Securities Act. This Warrant and the Shares issuable upon exercise hereof may only
be disposed of in compliance with state and federal securities laws. In connection with any transfer of this Warrant or the Shares
issuable upon exercise hereof, other than pursuant to an effective registration statement or Rule 144, to the Company or to an
Affiliate of a Holder, the Company may require the transferor to provide to the Company an opinion of counsel selected by the
transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory
to the Company, to the effect that such transfer does not require registration of the transferred Warrant or Shares under the
Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Warrant
and the Agreement and shall have the rights and obligations of a Holder under this Warrant and the Agreement.

 

2.2.Legend.

 

(a)The
Holder agrees to the imprinting of a legend on any of the Shares issuable upon exercise hereof in the following form:

 

    	4 

    	 

    

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE CORPORATION. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(b)Notwithstanding
the foregoing, certificates evidencing this Warrant or the Shares issuable upon exercise hereof shall not contain any legend (including
the legend set forth above), (i) while a registration statement covering the resale of such security is effective under the Securities
Act, (ii) following any sale of this Warrant or such Shares issuable upon exercise hereof pursuant to Rule 144, (iii) if this
Warrant or such Shares issuable upon exercise hereof are eligible for sale under Rule 144, without the requirement for the Company
to be in compliance with the current public information required under Rule 144 as to this Warrant or such Shares issuable upon
exercise hereof and without volume or manner-of-sale restrictions, or (iv) if such legend is not required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission).

 

2.3.Sale.
The Holder agrees that the Holder will sell this Warrant or any Shares issuable upon exercise hereof only pursuant to either:
(i) the registration requirements of the Securities Act, including any applicable prospectus delivery requirements; or (ii) an
exemption therefrom, and that if this Warrant or any Shares issuable upon exercise hereof are sold pursuant to any such effective
registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that
the removal of the restrictive legend from certificates representing the Shares or this Warrant is predicated upon the Company’s
reliance upon this understanding.

 

		3.	Fractional
                                         Shares

 

Notwithstanding
that the number of Shares purchasable upon the exercise of this Warrant may have been adjusted pursuant to the terms hereof, the
Company shall nonetheless not be required to issue fractions of Shares upon exercise of this Warrant or to distribute certificates
that evidence fractional shares, provided that in lieu of any fraction shares, the Company shall make a cash payment to the Holder
in an amount equal to the fair market value (as determined by the Board of Directors of the Company in its reasonable good faith)
of such fractional share.

 

    	5 

    	 

    

 

		4.	ANTIDILUTION
                                         PROVISIONS

 

4.1.Stock
Splits and Combinations. If the Company shall at any time subdivide or combine its outstanding shares of Common Stock, this
Warrant shall, after that subdivision or combination, evidence the right to purchase the number of shares of Common Stock that
would have been issuable as a result of that change with respect to the shares of Common Stock which were purchasable under this
Warrant immediately before that subdivision or combination. If the Company shall at any time subdivide the outstanding shares
of Common Stock, the Warrant Exercise Price then in effect immediately before that subdivision shall be proportionately decreased,
and, if the Company shall at any time combine the outstanding shares of Common Stock, the Warrant Exercise Price then in effect
immediately before that combination shall be proportionately increased. Any adjustment under this section shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

4.2.Reclassification,
Exchange and Substitution. If the Common Stock issuable upon exercise of this Warrant shall be changed into the same or a
different number of shares of any other class or classes of stock, whether by capital reorganization, reclassification, or otherwise
(other than a subdivision or combination of shares provided for above), the Holder of this Warrant shall, on its exercise, be
entitled to purchase for the same aggregate consideration, in lieu of the Common Stock that the Holder would have been entitled
to purchase but for such change, a number of shares of such other class or classes of stock equivalent to the number of shares
of Common Stock that would have been subject to purchase by the Holder on exercise of this Warrant immediately before that change.

 

4.3.Reorganizations,
Mergers, Consolidations or Sale of Assets. If at any time there shall be a capital reorganization of the Company’s Common
Stock (other than a combination, reclassification, exchange, or subdivision of shares provided for elsewhere above) or merger
or consolidation of the Company with or into another entity, or the sale of the Company’s properties and assets as, or substantially
as, an entirety to any other person or entity, then, as a part of such reorganization, merger, consolidation or sale, lawful provision
shall be made so that the Holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during
the period specified in this Warrant and upon payment of the Warrant Exercise Price then in effect, the number of shares of Common
Stock or other securities or property of the Company, or of the successor entity resulting from such merger or consolidation,
to which a holder of the Common Stock deliverable upon exercise of this Warrant would have been entitled in such capital reorganization,
merger, or consolidation or sale if this Warrant had been exercised immediately before that capital reorganization, merger, consolidation,
or sale. In any such case, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall
be made in the application of the provisions of this Warrant with respect to the rights and interests of the Holder of this Warrant
after the reorganization, merger, consolidation, or sale to the end that the provisions of this Warrant (including adjustment
of the Warrant Exercise Price then in effect and number of Shares purchasable upon exercise of this Warrant) shall be applicable
after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that event upon
exercise of this Warrant. The Company shall, within thirty (30) days after making such adjustment, give written notice (by first
class mail, postage prepaid) to the Holder of this Warrant at the address of the Holder shown on the Company’s books. That
notice shall set forth, in reasonable detail, the event requiring the adjustment and the method by which the adjustment was calculated,
and specify the Warrant Exercise Price then in effect after the adjustment and the increased or decreased number of Shares or
the other shares or property purchasable upon exercise of this Warrant. When appropriate, that notice may be given in advance
and include as part of the notice required under other provisions of this Warrant.

 

    	6 

    	 

    

 

		5.	Reservation
                                         of Stock Issuable Upon Exercise

 

The
Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock solely for the
purpose of effecting the exercise of this Warrant such number of its shares of Common Stock as shall from time to time be sufficient
to effect the exercise of this Warrant and if at any time the number of authorized but unissued shares of Common Stock shall not
be sufficient to effect the exercise of this Warrant, in addition to such other remedies as shall be available to the Holder of
this Warrant, the Company will use its best efforts to take such corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but un-issued shares of Common Stock to such number of shares as shall be sufficient for such purposes.

 

		6.	RIGHTS
                                         PRIOR TO EXERCISE OF WARRANT

 

6.1.This
Warrant does not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation, the right
to receive dividends or other distributions, to exercise any preemptive rights, to vote, or to consent or to receive notice as
a stockholder of the Company. If, however, at any time prior to the termination of this Warrant and prior to its exercise, any
of the following events shall occur:

 

(a)the
Company shall declare any dividend payable in any securities upon its shares of Common Stock or make any distribution (other than
a regular cash dividend) to the Holders of its shares of Common Stock; or

 

(b)the
Company shall offer to the holders of its shares of Common Stock any additional Warrant of Common Stock or securities convertible
into or exchangeable for shares of Common Stock or any right to subscribe for or purchase any thereof; or

 

(c)a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation, merger, sale, transfer or
lease of all or substantially all of its property, assets and business as an entirety) shall be proposed and action by the Company
with respect thereto has been approved by the Company’s Board of Directors;

 

then
in any one or more of said events the Company shall give notice in writing of such event to the Holder at the last address of
the Holder as it shall appear on the Company’s records at least twenty (20) days prior to the date fixed as a record date
or the date of closing the transfer books for the determination of the stockholders entitled to such dividends, distribution,
or subscription rights, or for the determination of stockholders entitled to vote on such proposed dissolution, liquidation or
winding up. Such notice shall specify such record date or the date of closing the transfer books, as the case may be. Failure
to publish, mail or receive such notice or any defect therein or in the publication or mailing thereof shall not affect the validity
of any action taken in connection with such dividend, distribution or subscription rights, or such proposed dissolution, liquidation
or winding up. Each person in whose name any certificate for shares of Common Stock is to be issued shall for all purposes be
deemed to have become the holder of record of such shares on the date on which this instrument was surrendered and payment of
the Warrant Exercise Price was made, irrespective of the date of delivery of such stock certificate, except that, if the date
of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to
have become the holder of such shares of Common Stock at the close of business on the next succeeding date on which the stock
transfer books are open.

 

    	7 

    	 

    

 

		7.	SUCCESSORS
                                         AND ASSIGNS

 

The
terms and provisions of this Warrant shall inure to the benefit of, and be binding upon, the Company and the Holder hereof and
their respective successors and permitted assigns.

 

		8.	LOSS
                                         OR MUTILATION

 

8.1.Upon
receipt by the Company of satisfactory evidence of the ownership of and the loss, theft, destruction, or mutilation of any Warrant,
and (i) in the case of loss, theft, or destruction, upon receipt by the Company of indemnity satisfactory to it, or (ii) in the
case of mutilation, upon receipt of such Warrant and upon surrender and cancellation of such Warrant, the Company shall execute
and deliver in lieu thereof a new Warrant representing the right to purchase an equal number of shares of Common Stock.

 

8.2.The
Holder also acknowledges that each of the Shares issuable upon the due exercise hereof will be subject to any transfer restrictions
in the Company’s Articles of Incorporation, including a right of first refusal to the Company, and the certificate or certificates
evidencing the Shares will bear a legend to this effect.

 

		9.	TERMINATION
                                         DATE

 

This
Warrant shall terminate upon the sooner of (a) the expiration of the Exercise Period; or (b) the exercise of all or any portion
of this Warrant pursuant to the terms of Section 1 hereof.

 

		10.	GOVERNING
                                         LAW

 

This
Warrant and any dispute, disagreement or issue of construction or interpretation arising hereunder whether relating to its execution,
its validity, the obligations provided herein or performance shall be governed or interpreted according to the internal laws of
the State of New York without regard to conflicts of law.

 

		11.	HEADINGS

 

The
headings and captions used in this Warrant are used only for convenience and are not to be considered in construing or interpreting
this Warrant. All references in this Warrant to sections and exhibits shall, unless otherwise provided, refer to sections hereof
and exhibits attached hereto, all of which exhibits are incorporated herein by this reference.

 

    	8 

    	 

    

 

		12.	AMENDMENTS

 

The
terms and conditions of this Warrant shall not be amended, modified or supplemented other than in accordance with a written amendment
signed by the Holder and the Company that specifically provides for such amendment, modification or supplement.

 

		13.	NOTICES

 

All
notices or other communications given or made hereunder shall be in writing and shall be mailed by certified mail, delivered by
professional courier or hand, or transmitted via email or facsimile, to such party’s address as set forth in the Warrant
Register, or such other address as the Holder or the Company shall notify the other in writing as above provided. Any notice sent
in accordance with this section shall be effective on the date three days after the date of mailing or, if delivered by hand or
professional courier, or transmitted via email or facsimile with delivery receipt (or acknowledgement or confirmation which may
be by electronic means), on the date of delivery, provided, however, that notices to the Company will be effective upon receipt.

 

		14.	SEVERABILITY

 

If
one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision(s) shall be excluded
from this Warrant and the balance of this Warrant shall be interpreted as if such provision(s) were so excluded and shall be enforceable
in accordance with its terms.

 

	15.	WARRANT REGISTER
    and OWNERSHIP

 

Each
Warrant issued by the Company shall be numbered and shall be registered in a warrant register (the “Warrant Register”)
as it is issued and transferred, which Warrant Register shall be maintained by the Company at its principal office or, at the
Company’s election and expense, by a Warrant Agent or the Company’s transfer agent. The Company shall be entitled
to treat the registered Holder of any Warrant on the Warrant Register as the owner in fact thereof and the Holder for all purposes
and shall not be bound to recognize any equitable or other claim to or interest in such Warrant on the part of any other Person,
and shall not be affected by any notice to the contrary, except that, if and when any Warrant is properly assigned in blank, the
Company may (but shall not be obligated to) treat the bearer thereof as the owner of such Warrant for all purposes. Subject to
Section 10, a Warrant, if properly assigned, may be exercised by a new holder without a new Warrant first having been issued.

 

		16.	certain
                                         other provisions

 

16.1.Any
reference to an action or event to occur on a specified date that is not a Business Day shall be a reference to the immediately
following Business Day.

 

16.2.Any
calculations of the number of Shares to be issued upon the exercise of this Warrant, in whole or in part, shall be made by the
Company and, absent manifest error, such calculation shall be conclusive and binding.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

 

    	9 

    	 

    

 

In
Witness Whereof, the parties have executed
this Warrant as of the date first written above.

 

	 	 	COMPANY
	 	 	 
	 	 	CARDAX,
    INC.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	David
    G. Watumull
	 	 	Title:	President
    and CEO
	 	 	 	 
	TRANSFER
    AGENT AND REGISTRAR	 	 	 
	 	 	 	 
	VSTOCK
    TRANSFER, LLC	 	 	 
	 	 	 	 
	By:	 	 	 	 
	 	Authorized
    Signature	 	 	 

 

    	 	 	 

    	 

    

 

NOTICE
OF WARRANT EXERCISE

 

To:
Cardax, Inc.

2800
Woodlawn Drive, Suite 129

Honolulu,
HI 96822

 

Gentlemen:

 

The
undersigned,                                                                          
, hereby elects to purchase, pursuant to the provisions of the foregoing Warrant held by the undersigned,                         
 shares of the common stock (“Common Stock”) of Cardax, Inc. Payment of the purchase price
of __________ per Share required under such Warrant accompanies this notice.

 

The
undersigned hereby represents and warrants that the undersigned is acquiring such Common Stock for the account of the undersigned
and not for resale or with a view to distribution of such Common Stock or any part hereof; that the undersigned is fully aware
of the transfer restrictions affecting restricted securities under the pertinent securities laws and the undersigned understands
that the shares purchased hereby are restricted securities and that the certificate or certificates evidencing the same will bear
a legend to that effect.

 

By
its delivery of this Notice of Warrant Exercise, the undersigned represents and warrants to the Company that (unless indicated
below) in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares
of Common Stock (determined in accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be owned under
Section 1.3(b)(ii) of this Warrant to which this notice relates.

 

If
the number of shares of Common Stock purchased (and/or canceled) hereby is less than the number of shares of Common Stock covered
by the Warrant, the undersigned requests that a new Warrant representing the number of shares of Common Stock not so purchased
(or canceled) be issued and delivered as follows:

 

	ISSUE
    TO:	 	 
	 	(NAME
    OF HOLDER)
	 	 	 
	 	 	 
	 	(ADDRESS,
    INCLUDING ZIP CODE)
	 	 	 
	 	 	 
	 	(SOCIAL
    SECURITY OR OTHER IDENTIFYING NUMBER)
	 	 	 
	DELIVER
    TO:	 	 
	 	 	 
	 	 	 
	 	(NAME)	 
	 	 	 
	 	 	 
	 	(ADDRESS,
    INCLUDING ZIP CODE)
	 	 	 	 

    	 	 	 

    	 

    

 

NOTICE
OF WARRANT EXERCISE

Page
2

 

DATED:
                  , ____.

 

	Signature:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 

 

    	 	 	 

    	 

    

 

ASSIGNMENT
FORM 

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do
not use this form to exercise the warrant.)

 

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

 

_______________________________________________
whose address is

 

_______________________________________________________________

 

_______________________________________________________________

 

Dated:
______________, _______

 

Holder’s
Signature: _____________________________

 

Holder’s
Address: _____________________________

 

Signature
Guaranteed: ___________________________________________

 

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

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