Document:

Exhibit 101 v3

		
			
		

		
			﻿
		

		
			Pine Valley Commercial Banking Centre
		

		
			4499 Highway 7 At Pine Valley Drive 2nd Floor
		

		
			Vaughan, ON
		

		
			L4L 9A9
		

		
			Telephone No.: (905) 264-6723
		

		
			Fax No.: (905) 851 8209
		

		
			﻿
		

		
			October 22, 2020
		

		
			RENIN CANADA CORP.
		

		
			RENIN US LLC
		

		
			110 Walker Drive
		

		
			Brampton, Ontario
		

		
			L6T 4H6
		

		
			﻿
		

		
			Attention:   Joe Ruffo, President and Chief Executive Officer
		

		
			﻿
		

		
			Dear Sir,
		

		
			﻿
		

		
			We are pleased to offer the Borrower the following credit facilities (the "Facilities"), subject to the following terms and conditions.  This Agreement amends and restates our agreement dated June 5th, 2020 and its predecessors. 
		

		
			﻿
		

		
			BORROWER
		

		
			﻿
		

		
			RENIN CANADA CORP.
		

		
			(“Borrower A” or "RENIN CA")
		

		
			RENIN US LLC
		

		
			(“Borrower B” or "RENIN US")
		

		
			﻿
		

		
			GUARANTORS
		

		
			﻿
		

		
			RENIN HOLDINGS LLC
		

		
			(“Guarantor A” or "HOLDINGS")
		

		
			﻿
		

		
			LENDER
		

		
			﻿
		

		
			The Toronto-Dominion Bank (herein referred to as the "Bank", the “Lender”, “TD” or “TD Bank”), through its Pine Valley branch, in Vaughan, ON.
		

		
			﻿
		

		
			CREDIT LIMIT
		

		
			﻿
		

		
			1 (A) (B)
		

		
			The lesser of:
		

		
			﻿
		

		
			i) USD$20,000,000 «or its CAD$ Equivalent», AND
		

		
			﻿
		

		
			ii) The Total of
		

		
			﻿
		

		
			A) 85% of the Receivable Value, (net of discounts, rebates, over 90 day accounts, related party accounts and holdbacks) for Canadian and US companies with satisfactory Investment Grade 
		

		
			credit ratings to the Bank, where “Investment Grade” refers to a company that maintains at least 
		

		
			one rating of at least BBB-/Baa3 with S&P or Moody’s credit ratings services
		

		
			AND
		

		
			﻿
		

		
			B) 80% of the Receivable Value (net of discounts, rebates, over 90 day accounts,  related party accounts and holdbacks) for Canadian and US companies not included in paragraph A) above,
		

		

		

		 

		

			1

		

		

			 

		

 

		 
		

		
			AND
		

		
			﻿
		

		
			C) 60% of the Inventory Value except that the amount calculated under (C) will not exceed USD$10,000,000.  Inventory Value to include raw materials and finished goods and goods in transit (GIT)* (to a maximum of USD$5,000,000), and to be net of returned inventory, defective inventory, damaged goods, inventory held outside Canada & USA, obsolete inventory, unsaleable inventory, GIT in excess of the above maximum limit and Slow-Moving Inventory**. For clarity, Inventory Value to be held in a warehouse where the Bank holds a landlord waiver, otherwise a deduction of three (3) months rent will be taken.
		

		
			﻿
		

		
			*GIT will be excluded from Inventory Value unless the Borrower obtains a marine/freight cargo policy with TD as loss payee.
		

		
			﻿
		

		
			** “Slow-Moving Inventory” is defined as inventory where part number has not been sold for greater than 12 months
		

		
			﻿
		

		
			In addition, the Credit Limit of Facility #1 is to be capped monthly to the lower of $ USD 20,000,000 and the previous month’s borrowing base coverage (forward margining).
		

		
			﻿
		

		
			2 (A) 
		

		
			USD$30,000,000 «or its CAD$ Equivalent», as reduced pursuant to the section headed "Repayment and Reduction of Amount of Credit Facility".
		

		
			﻿
		

		
			Unless stated otherwise, all amounts referred to this Agreement are in United States Dollars/USD.
		

		
			﻿
		

		
			TYPE OF CREDIT
		

		
			AND BORROWING
		

		
			OPTIONS
		

		
			﻿
		

		
			1 (A) (B)
		

		
			Operating Loan available at the Borrower's option by way of:
		

		
			﻿
		

			
	
			
				 -
			

			
	
			
			Prime Rate Based Loans in CAD$ ("Prime Based Loans")

			
	
			
				 -
			

			
	
			
			Bankers Acceptances in CAD$ ("B/As")

			
	
			
				 -
			

			
	
			
			United States Base Rate Loans in USD$ ("USBR Loans")

			
	
			
				 -
			

			
	
			
			London Interbank Offered Rate Loans in USD$ ("LIBOR Loans") 

			
	
			
				 -
			

			
	
			
			Letters of Credit in CAD$ or USD$ ("L/Cs")

			
	
			
				 -
			

			
	
			
			Stand-by Letters of Guarantee in CAD$ or USD$ ("L/Gs")

		
			﻿
		

		
			2 (A) 
		

		
			Committed Reducing Term Facility (Single Draw) available at the Borrower's option by way of:
		

		
			﻿
		

			
	
			
				 -
			

			
	
			
			Floating Rate Term Loan available by way of:

			
	
			
				 -
			

			
	
			
			Prime Rate Based Loans in CAD$ ("Prime Based Loans")

			
	
			
				 -
			

			
	
			
			Bankers Acceptances in CAD$ ("B/As")

			
	
			
				 -
			

			
	
			
			United States Base Rate Loans in USD$ ("USBR Loans")

			
	
			
				 -
			

			
	
			
			London Interbank Offered Rate Loans in USD$ ("LIBOR Loans") 

		
			﻿
		

		
			PURPOSE
		

		
			﻿
		

		
			1 (A) (B)
		

		
			To finance working capital and to partially finance the acquisition of the assets of Colonial Elegance Inc. by RENIN CA (the “Colonial Elegance Acquisition”) on the closing date thereof (the “Acquisition Closing Date”).
		

		
			﻿
		

		
			2 (A)
		

		
			Financing of the Colonial Elegance Acquisition
		

		
			
		

		
			TENOR
		

			
					
						﻿

					
					
						 

				

		 

		

			2

		

		

			 

		

 

			
					
						1 (A) (B)

					
					
						Committed.

				
	
					
						2 (A) 

					
					
						Committed.

				

		
			﻿
		

		
			CONTRACTUAL TERM
		

			
					
						﻿

					
					
						 

				
	
					
						﻿

					
						1 (A) (B)

					
					
						 

					
						Up to 5 years from the Acquisition Closing Date (the “Maturity Date”)

				
	
					
						2 (A) 

					
					
						Up to 5 years from the Acquisition Closing Date (the “Maturity Date”)

				

		
			﻿
		

		
			AMORTIZATION
		

		
			﻿
		

		
			1 (A)(B)) 
		

		
			Not Applicable
		

		
			﻿
		

		
			2) (A)
		

		
			96 month(s) on a sculpted basis as per the table of Scheduled Payments in the “Repayment and Reduction of Amount of Credit Facility” Section below  
		

		
			﻿
		

		
			INTEREST RATES AND FEES
		

		
			﻿
		

		
			1(A) (B) 
		

		
			﻿
		

		
			2 (A)
		

		
			Advances under the Facilities shall bear interest as follows with "Leverages" based on the Total Leverage Ratio (as hereinafter defined) and reset with quarterly results as set forth below.  
		

		
			﻿
		

			
					
						Leverages

					
					
						Prime Plus

					
					
						BA/LIBOR Plus

					
					
						LC/LG Fee

					
					
						USBR Plus

					
					
						Standby Fee

				
	
					
						<2.5x

					
					
						1.375%

					
					
						2.875%

					
					
						2.875%

					
					
						1.00%

					
					
						0.575%

				
	
					
						≥2.5x and ≤ 3.00x

					
					
						1.725%

					
					
						3.125%

					
					
						3.125%

					
					
						1.25%

					
					
						0.625%

				
	
					
						>3.00x

					
					
						1.875%

					
					
						3.375%

					
					
						3.375%

					
					
						1.50%

					
					
						0.675%

				
	
					
						Default Pricing

					
					
						3.875%

					
					
						5.375%

					
					
						5.375%

					
					
						3.50%

					
					
						1.075%

				

		
			﻿
		

		
			The applicable Leverage for each type of Loan or Fee will vary based on changes to the ratio of Total Leverage Ratio from time to time, and such changes to the Leverage shall be effective as of the third Business Day  following the date the compliance certificate for such fiscal quarter is delivered to the Lender. In the event the Bank does not receive a compliance certificate for any fiscal quarter that has ended on the date required pursuant to this Agreement (the “Delivery Default Date”), the applicable Leverage for each Loan and Fee from and after the Delivery Default Date and for the subsequent fiscal quarters shall increase to the “Default Pricing” level as set out in the table above until such time as a new compliance certificate is delivered supporting an alternative level.  The Leverage level applicable on the date hereof shall be the highest level,  >3.00x. In addition, if an Event of Default occurs, the applicable Leverage for each Loan and Fee from and after the date of such Event of Default shall increase to the “Default Pricing” level as set out in the table above until such time as such Event of Default has been waived by the Lender or has been cured to the Lender’s satisfaction.
		

		
			For all Facilities, interest payments will be made in accordance with Schedule "A" attached hereto unless otherwise stated in this Letter or in the Rate and Payment Terms Notice applicable for a particular drawdown.  Information on interest rate and fee definitions, interest rate calculations and payment is set out in the Schedule "A" attached hereto.
		

		
			﻿
		

		
			STANDBY FEE
		

		
			﻿
		

		
			Standby Fee on Committed Operating Loan under Facility 1 (A) (B).  On the third Business Day following the last Business Day of March, June, September, and December, in each year, the Borrower shall pay to the Bank a standby fee in an amount equal to the above mentioned grid percentage per annum calculated on the daily average amount of the undrawn portion of Facility 1 during the fiscal quarter just ended.
		

		
			﻿
		

		 

		

			3

		

		

			 

		

 

		
			LIBOR Discontinuation 
		

		
			If the Bank determines (which determination shall be conclusive absent manifest error) that:
		

			
	
			
				 (a)
			

			
	
			
			adequate and reasonable means do not exist for ascertaining LIBOR, LIBOR is not available or published on a current basis for a LIBOR Loan or for the applicable interest period and such circumstances are unlikely to be temporary; 

			
	
			
				 (b)
			

			
	
			
			the administrator of LIBOR or a governmental authority having jurisdiction over the administrator of LIBOR has made a public statement identifying a specific date after which LIBOR will permanently or indefinitely cease to be made available or permitted to be used for determining the interest rate of loans; 

			
	
			
				 (c)
			

			
	
			
			a governmental authority having jurisdiction over the Bank has made a public statement identifying a specific date after which LIBOR shall no longer be permitted to be used for determining the interest rate of loans (each such specific date in clause (b) above and in this clause (c) a “LIBOR Scheduled Unavailability Date”); or

			
	
			
				 (d)
			

			
	
			
			loans similar to this Facility are currently being executed, or that include language similar to that contained in this Section, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR,

		
			then reasonably promptly after such determination by the Bank, the Bank shall provide notice to the Borrower of  a successor rate to LIBOR, and the Bank and the Borrower agree that this Agreement shall be automatically amended 30 days after such notice is sent to the Borrower  to replace LIBOR with an alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein), giving due consideration to any evolving or then existing convention for similar United States Dollars denominated credit facilities for such alternative benchmarks (any such proposed rate, a “LIBOR Successor Rate”), together with any proposed LIBOR Successor Rate conforming changes to this Agreement and any such amendment shall become effective at 5:00 p.m. (Toronto time) on the thirtieth   day after the Bank shall have provided such amendment to the Borrower. If no LIBOR Successor Rate has been determined and the circumstances above exist or a LIBOR Scheduled Unavailability Date has occurred (as applicable), the Bank will promptly so notify the Borrower. Thereafter, the obligation of the Bank to make or maintain LIBOR Loans shall be suspended (to the extent of the affected LIBOR Loans or interest periods). Upon receipt of such notice, the Borrower may revoke any pending request for an advance of, conversion to or rollover of LIBOR Loans (to the extent of the affected LIBOR Loans or interest periods) or, failing that, will be deemed to have converted such request into a request for an advance of US Base Rate Loans (subject to the foregoing) in the amount specified therein. Notwithstanding anything else herein, any definition of the LIBOR Successor Rate (exclusive of any margin) shall provide that in no event shall such LIBOR Successor Rate be less than zero for the purposes of this Agreement.
		

		
			The Bank does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to LIBOR or the LIBOR Successor Rate including without limitation, whether the composition or characteristics of the LIBOR Successor Rate, will be similar to, or produce the same value or economic equivalence of, LIBOR or have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability.
		

		
			﻿
		

		
			WORK FEE
		

		
			﻿
		

		
			Non-refundable USD $50,000.00 work fee was paid upon acceptance of the term sheet.
		

		
			﻿
		

		
			UPFRONT FEE
		

		
			﻿
		

		
			One-time non-refundable fee equal to USD $ 325,000.00 (being 13 bps per year of the aggregate commitments under the Facilities for each of the five years) shall be payable by the Borrower to the Bank in two installments.  The 
		

		 

		

			4

		

		

			 

		

 

		first installment of USD $162,500 shall be payable by the Borrower on the Acquisition Closing Date and will be withheld from the first advance under Facility 2. The second installment of USD $162,500 shall be payable by the Borrower on January 1, 2021.  Notwithstanding such payment in installments, the upfront fee shall be deemed to be fully earned by the Bank on the Acquisition Closing Date.
		

		
			﻿
		

		
			DRAWDOWN
		

			
					
						﻿

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

				
	
					
						﻿

					
						1 (A) (B)

					
						Subject to satisfaction of Disbursement Conditions, on a revolving basis.

					
						 

					
						L/C and L/G on a revolving basis, limited to USD $1,500,000 + 1 year term

					
						 

					
						LIBOR Loans for periods up to a maximum of 90 days, subject to availability, with minimum drawdown of USD $1,000,000 and multiples of US$100,000 thereafter 

					
						 

					
						B/A availability to a maximum of 90 days with minimum drawdown of CAD $1,000,000 and multiples of CAD $100,000 thereafter.

					
						 

					
						2 (A) 

					
						Subject to satisfaction of Disbursement Conditions. The term loan will be available by way of a single drawdown (the “drawdown") prior to October 30, 2020 after which any amount not drawn is cancelled. 

					
						Amounts repaid may not be redrawn.

					
						 

					
						Notice periods, minimum amounts of draws, interest periods and contract maturity for LIBOR Loans, terms for Banker's Acceptances and other similar details are set out in the Schedule "A" attached hereto.

				

		
			﻿
		

		
			BUSINESS CREDIT
		

		
			SERVICE
		

		
			﻿
		

		
			The Borrower will have access to the Operating Loan (Facility 1) via Loan Account Number 1890-9529209 (the "Loan Account") up to the Credit Limit of the Operating Loan by withdrawing funds from the Borrower's current account number 1890-5292117 (the "Current Account"). The Borrower agrees that each advance from the Loan Account will be in an amount equal to CAD $10,000 (the "Transfer Amount") or a multiple thereof. If the Transfer Amount is NIL, the Borrower agrees that an advance from the Borrower's Loan Account may be in an amount sufficient to cover the debits made to the Current Account.
		

		
			﻿
		

		
			The Borrower agrees that:
		

		
			  a) all other overdraft privileges which have governed the Borrower's Current Account are hereby cancelled.
		

		
			  b) all outstanding overdraft amounts under any such other agreements are now included in indebtedness under this Agreement.
		

		
			﻿
		

		
			The Bank may, but is not required to, automatically advance the Transfer Amount or a multiple thereof or any other amount from the Loan Account to the Current Account in order to cover the debits made to the Current Account if the amount in the Current Account is insufficient to cover the debits. The Bank may, but is not required to, automatically and without notice apply the funds in the Current Account in amounts equal to the Transfer Amount or any multiple thereof or any other amount to repay the outstanding amount in the Loan Account.
		

		
			﻿
		

		
			For clarity, the aggregate of (i) the total of USD$ loans and CAD equivalent of USBR Loans under the Operating Loan via overdrafts under the “Overdrafts” Section below, (ii)  the total of all advances made to the Borrowers under this “Business Credit Service” Section, and (iii) all other credit accommodation received by and loans made to the Borrowers under the Operating Loan cannot exceed the limits defined under the Credit Limit for Facility #1 above.
		

		
			﻿
		

		
			OVERDRAFTS
		

		
			﻿
		

		
			The Borrower will have access to USBR Loans under the Operating Loan (Facility #1) via overdraft from current account number 7323688 at Branch 1890 and current account number 7321995 1890 up to a maximum of USD$20,000,000 in the aggregate. The total of USD$ loans and CAD equivalent of USBR Loans under the Operating Loan via overdrafts cannot exceed the limits defined under the Credit Limit for Facility #1 above.
		

		

		

		 

		

			5

		

		

			 

		

 

		﻿
		

		
			For clarity, the aggregate of (i) the total of USD$ loans and CAD equivalent of USBR Loans under the Operating Loan via overdrafts pursuant to this Section, (ii)  the total of all advances made to the Borrowers under the “Business Credit Service” Section described above, and (iii) all other credit accommodation received by and loans made to the Borrowers under the Operating Loan cannot exceed the limits defined under the Credit Limit for Facility #1 above. 
		

		
			﻿
		

		
			REPAYMENT AND REDUCTION OF AMOUNT OF CREDIT FACILITY
		

		
			﻿
		

		
			1(A) (B)
		

		
			Draws and Repayments to fluctuate as a traditional operating facility, subject to mandatory prepayments required to comply with Credit Limits and other covenants hereunder and subject to no Event of Default having occurred and be continuing.
		

		
			﻿
		

		
			L/C and L/G upon payout or cancellation by the beneficiary.
		

		
			﻿
		

		
			The Borrower shall repay on the Maturity Date (i) all outstanding loans, advances, and other credit accommodation drawn under Facility 1, and all accrued and unpaid interest, fees and charges relating thereto, and (ii) any other amounts of principal, interest, fees, charges and other expenses remaining unpaid under this Agreement.
		

		
			﻿
		

		
			2 (A) 
		

		
			Scheduled Repayments:
		

		
			The Borrower shall repay the principal amount advanced under Facility #2 by way of quarterly principal installments in each Year aggregating to annual payments as follows:
		

		
			﻿
		

		
			Year 1: 7.5% of the original principal amount of the single Advance under Facility 2.
		

		
			Year 2: 10% of the original principal amount of the single Advance under Facility 2.
		

		
			Year 3: 12.5% of the original principal amount of the single Advance under Facility 2.
		

		
			Year 4: 15% of the original principal amount of the single Advance under Facility 2.
		

		
			Year 5: 17.5% of the original principal amount of the single Advance under Facility 2.
		

		
			﻿
		

		
			The Borrower shall make a final bullet payment on the Maturity Date equal to the aggregate of (i) 37.5% of the original principal amount of the single Advance under Facility 2, and all accrued and unpaid interest, fees and charges relating thereto, and (ii) any other amounts of principal, interest, fees, charges and other expenses remaining unpaid under this Agreement.
		

		
			﻿
		

		
			For the purposes of this Section, “Year” shall mean a one year period commencing on the Acquisition Closing Date and each anniversary thereof, with quarterly principal installments to occur on December 31, March 31, June 30 and September 30 in each such Year, with the first such principal installment for Year 1 to be made on December 31, 2020. 
		

		
			﻿
		

		
			PREPAYMENT
		

		
			﻿
		

		
			1 (A) (B)
		

		
			Permitted in whole or in part at any time; B/A's and LIBOR Loans may not be prepaid.
		

		
			﻿
		

		
			2(A)
		

		
			Optional Prepayments:
		

		
			﻿
		

		
			No restriction or prepayment penalties (subject to breakage costs if applicable).  B/A's and LIBOR Loans may not be prepaid
		

		
			﻿
		

		
			SECURITY
		

		
			﻿
		

		
			Unless otherwise indicated or agreed upon with the Bank, the following security shall be provided, shall support all present and future indebtedness and liability of the Borrower and the grantor of the security to the Bank including without limitation indebtedness and liability under guarantees, foreign exchange contracts, cash management 
		

		 

		

			6

		

		

			 

		

 

		products, and derivative contracts, shall be registered in first position, and shall be on the Bank's standard form, supported by resolutions and solicitor's opinion, all acceptable to the Bank.
		

		
			﻿
		

		
			a) General Security Agreement ("GSA") issued by HOLDINGS representing a first charge on all the Borrower's present and after acquired personal property.  – To Be Obtained
		

		
			b) GSA issued by RENIN CA representing a first charge on all the Borrower's present and after acquired personal property.  – On Hand
		

		
			c) US Security Agreement issued by RENIN US representing first charge on all present and after acquired personal property. UCC filing/registered in Florida and Mississippi. To be guided by lawyer acting for the Bank. - On Hand
		

		
			d) US Security Agreement issued by HOLDINGS representing first charge on all present and after acquired personal property. UCC filing/registered in Florida and Mississippi. To be guided by lawyer acting for the Bank. – On Hand
		

		
			e) GSA issued by RENIN US representing a first charge on all the Borrower's present and after acquired personal property. – On Hand 
		

		
			f) Section 427 Bank Act Security/Notice of Intention issued by RENIN CA registered in first position in Ontario – On Hand
		

		
			g) Pledge Agreement issued by BBX CAPITAL, INC. re 100% of the uncertificated membership interests and other equity interests of HOLDINGS held by it (the “BBX Pledge Agreement”) - To Be Obtained
		

		
			h) Share Pledge Agreement issued by HOLDINGS re 100% of the shares, membership unit interests and other equity interests of RENIN CA and RENIN US held by it, together with delivery of the applicable share certificates and stock powers of attorney - To Be Obtained
		

		
			i) Unlimited Guarantee of Advances in support of RENIN US
		

		
			- Executed by RENIN CA  – On Hand
		

		
			j) Unlimited Guarantee of Advances in support of RENIN CA
		

		
			- Executed by HOLDINGS  – On Hand
		

		
			k) Unlimited Guarantee of Advances in support of RENIN US
		

		
			- Executed by HOLDINGS  – On Hand
		

		
			l) Unlimited Guarantee of Advances in support of RENIN CANADA CORP
		

		
			- Executed by RENIN US – On Hand
		

		
			m) Assignment of Account Receivable Insurance (Non-EDC) from RENIN CA – To be Obtained
		

		
			n) Assignment of Fire Insurance with Business Interruption Insurance, TD Loss Payee from RENIN CA – To be Obtained
		

		
			o) Assignment of Fire Insurance with Business Interruption Insurance, TD Loss Payee from RENIN US. – To be Obtained 
		

		
			p) Assignment of Marine/Freight Insurance in the amount of USD $5,000,000 issued by RENIN CA, RENIN US, and HOLDINGS - To Be Obtained
		

		
			q) Landlord's Letter of Non-Disturbance / Landlord's Waiver from Landlord RENIN CA re Brampton, Ontario Location– On Hand
		

		
			r) Landlord's Letter of Non-Disturbance / Landlord's Waiver from Landlord of RENIN US re Tupelo, Mississippi Location – On Hand
		

		
			s) Landlord's Letter of Non-Disturbance / Landlord's Waiver from Landlord of RENIN CA re Berthierville, Quebec - To Be Obtained
		

		
			t) Landlord's Letter of Non-Disturbance / Landlord's Waiver from Landlord of Colonial Elegance Inc., Colonial Elegance Inc., as lessee and RENIN CA, as sublessee, re Montreal, Quebec - To Be Obtained
		

		
			u) Assignment (by way of security) to TD Bank of the Asset Purchase Agreement between Colonial Elegance Inc. and RENIN CA, together with the Representations and Warranties Insurance Policy being delivered thereunder, with such assignment consented to by Colonial Elegance Inc. – To Be Obtained 
		

		
			v) Movable Hypothec from RENIN CA covering all assets in Quebec being acquired from Colonial Elegance Inc. – To Be Obtained 
		

		
			w) Acknowledgment, Confirmation and Amendment of Existing Guarantees and Security from each of RENIN CA, RENIN US and HOLDINGS, one of each applicable governing law jurisdiction. – To Be Obtained 
		

		
			x) Security Agreements or Notices thereof charging the Borrowers’ and HOLDINGS’ Intellectual Property in all applicable jurisdictions for registration at CIPO and USPTO and any other applicable international jurisdiction offices, including all Intellectual Property acquired as part of the Colonial Elegance Acquisition – To Be Obtained   
		

		
			y) Such other security as may be determined by the Bank from its due diligence review.
		

		
			﻿
		

		
			All persons and entities required to provide a guarantee shall be referred to in this Agreement individually as a "Surety" and/or "Guarantor" and collectively as the "Guarantors";
		

		
			﻿
		

		
			All of the above security and guarantees shall be referred to collectively in this Agreement as "Bank Security".
		

		

		

		 

		

			7

		

		

			 

		

 

		﻿
		

		
			DISBURSEMENT
		

		
			CONDITIONS
		

		
			﻿
		

		
			Unless otherwise indicated or agreed upon with the Bank, the obligation of the Bank to permit any drawdown hereunder is subject to the Standard Disbursement Conditions contained in Schedule "A" and the following additional drawdown conditions:
		

		
			﻿
		

		
			Delivery to the Bank of the following, all of which must be satisfactory to the Bank:
		

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						1)

					
					
						Satisfactory loan documentation, including all documentation to satisfy the Bank's regulatory requirements (KYC/AML), this Agreement, security, legal opinions, inter-creditor agreement (if any), in form and substance satisfactory to the Lender and its counsel

				
	
					
						2)

					
					
						Satisfactory review of the acquisition documents (including Colonial Elegance Asset Purchase Agreement, non-competition agreement, employment contracts with top management and key employees (Luc Olivier, Eric Labelle and Robert Perreault), and consulting agreements with Pierot Drouin and Real Charbonneau) and satisfactory confirmation that all of the purchased assets of Colonial Elegance Inc. are or will be transferred to RENIN CA free and clear of all encumbrances  (subject to liens covered by satisfactory payout letters and undertakings to discharge) following the closing of the Colonial Elegance Acquisition, and receipt of certified copies of all such documents

				
	
					
						3)

					
					
						Pro-forma compliance certificate including detailed covenant calculations based on trailing twelve months (“TTM”) results for the period ended one month prior to closing and projected debt to be drawn, with the proforma Total Leverage Ratio not to exceed 3.40x at closing

				
	
					
						4)

					
					
						Confirmation of USD $5,000,000.00 cash equity injection from BBX Capital, Inc. into HOLDINGS

				
	
					
						5)

					
					
						Any/all regulatory approvals required to be on hand relating to the Colonial Elegance Acquisition or otherwise

				
	
					
						6)

					
					
						No material adverse change, payment of all fees and expenses 

				
	
					
						7)

					
						 

					
						8)

					
						 

					
						 

					
						 

					
						 

					
						9)

					
						 

					
						 

					
						10)

					
						 

					
						 

					
						 

					
						11)

					
						 

					
						 

					
						 

					
						12)

					
						 

					
						 

					
						13)

					
						 

					
						14)

					
						 

					
						15)

					
					
						Borrowers Environmental and Social Risk Questionnaire to be completed by the Borrower

					
						 

					
						PPSA Registrations in British Columbia and Ontario against RENIN CA; RPMRR registrations in Quebec against RENIN CA; PPSA Registrations in Ontario against RENIN US and HOLDINGS; UCC registrations as required against RENIN US, HOLDINGS and BBX Capital, Inc. as determined by US counsel

					
						 

					
						Receipt of certified copies of satisfactory leases of the Colonial Elegance premises locations in Berthierville and Montreal being assumed or sublet by RENIN CA

					
						 

					
						Certificates of Insurance from all applicable insurance brokers evidencing the existence of all current property, liability, accounts receivable and marine/freight insurance and TD’s interest as first mortgagee, first loss payee and an addition insured thereunder.

					
						 

					
						Such PPSA estoppel letters, Payout Letters to Secured Creditors of Colonial Elegance Inc., and all such other documents, instruments and agreements as may be deemed necessary by counsel to the Bank following its due diligence review and searches.

					
						 

					
						Corporate Org Chart updated for all of the Renin and BBX entities both pre and post-acquisition and any change resulting from the USD$5,000,000 cash equity injection from BBX Capital, Inc.

					
						 

					
						Confirmation of no outstanding shareholder loans or inter-company loans within the Renin entities.

					
						 

					
						Site Visit to be performed by the Bank (virtual site visit to be considered).

					
						 

					
						Management prepared consolidated financial statements for HOLDINGS for the TTM period ended August 31, 2020 prior to the Acquisition Closing Date.

				

		
			﻿
		

		

		

		 

		

			8

		

		

			 

		

 

		REPRESENTATIONS
		

		
			AND WARRANTIES
		

		
			﻿
		

			
					
						All representations and warranties shall be deemed to be continually repeated so long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect.  The Borrower makes the Standard Representations and Warranties set out in Schedule "A" and in addition the following representations which shall apply to it and to its subsidiaries and each of the Guarantors:

					
						 

					
						1)The current beneficial and registered ownership of each of RENIN CA, RENIN US and HOLDINGS are as set out in the corporate organization chart attached as Schedule “B”.

				

		
			﻿
		

		
			POSITIVE COVENANTS
		

		
			﻿
		

		
			So long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, the Borrowers will and will ensure that its subsidiaries and each of the Guarantors will observe the Standard Positive Covenants set out in Schedule "A" and in addition will:
		

		
			﻿
		

			
					
						1)

					
					
						Provide notice of material events (environmental, litigation, etc.) to the Lender.

				
	
					
						2)

					
					
						Maintain all operating accounts at The Toronto-Dominion Bank.

				
	
					
						3)

					
						 

					
						 

					
						 

					
						4)

					
						 

					
						 

					
						 

					
						 

					
						 

					
					
						Provide a guarantee and security agreement executed by Renin UK Corp. if its EBITDA is greater than 5% of either the revenue of the Renin Group, the Consolidated EBITDA as defined in Financial Covenant 2, or the asset value of the Renin Group. 

					
						 

					
						Prior to completion of any Permitted Change in Control, the Borrowers and the Renin Group shall  execute and deliver, and cause all necessary third parties involved in such Permitted Change in Control to execute and deliver, to the Bank all required documents, instruments, agreements, identification verification forms and other materials as may be required for compliance with all of the Bank KYC/AML requirements in effect at the time of such Permitted Change in Control. 

				

		
			﻿
		

		
			REPORTING COVENANTS
		
So long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, the Borrowers will provide to the Bank:
			
					
						﻿

					
					
						 

				

		 

		

			9

		

		

			 

		

 

			
					
						1)

					
					
						Annual audited consolidated financial statements for HOLDINGS to be provided within 120 calendar days of fiscal year end.  Annual financial statements to be accompanied by a compliance certificate with detailed covenant calculation reconciliations.

				
	
					
						2)

					
					
						An aged accounts receivable, accounts payable and inventory listing to be provided monthly by the Borrowers with details on holdbacks, raw materials, work in progress, inventory in transit and finished goods. Monthly reporting to be accompanied by a compliance certificate provided within 20 days of each month end.

				
	
					
						3)

					
					
						Annual financial projections and financial covenant calculations on a consolidated basis for the upcoming fiscal year within 45 days after each fiscal year end. Financial projections are to be completed on a quarterly basis and are to include a balance sheet, income statement, and cash flow statement.

				
	
					
						4)

					
					
						Annual management prepared financial statements for RENIN CA to be provided within 120 calendar days of fiscal year end.

				
	
					
						5)

					
					
						Annual management prepared financial statements for RENIN US to be provided within 120 calendar days of fiscal year end.

				
	
					
						6)

					
						 

					
						 

					
						 

					
						 

					
						 

					
						7)

					
						 

					
						 

					
						8)

					
					
						Quarterly management prepared consolidated financial statements for HOLDINGS (including balance sheet, income statement & cash flow statement) to be provided within 45 days of each quarter end. Quarterly financial statements must reflect fiscal year to date results and rolling four quarter results and be accompanied by a compliance certificate with detailed covenant calculation reconciliations. 

					
						 

					
						Annual and Quarterly Schedule of leases and adjustments related to US GAAP (ASC 842) within 45 days of fiscal quarter end and 120 days of fiscal year end.

					
						 

					
						Annual management prepared financial statements for RENIN UK CORP. to be provided within 120 calendar days of fiscal year end.

					
						 

					
						All references herein to “Renin Group” or to the financial statements of RENIN CA or others being calculated on a consolidated basis shall mean and refer to the financial performance of RENIN CA, RENIN UK CORP., RENIN US and HOLDINGS collectively.

					
						 

					
						The Accounting Principles set out below shall apply to all deliveries contemplated by these Reporting Covenants.

				

		
			﻿
		

		
			ACCOUNTING PRINCIPLES
		

		
			﻿
		

		
			(1) Where the character or amount of any asset or liability or item of revenue or
		

		
			expense is required to be determined, or any consolidation or other accounting computation is
		

		
			required to be made, for the purpose of this Agreement or any loan document, such determination
		

		
			or calculation will, to the extent applicable and except as otherwise specified herein or as otherwise
		

		
			agreed in writing by the parties, be made in accordance with US GAAP applied on a consistent basis.
		

		
			﻿
		

		
			(2) If at any time any change in US GAAP would affect the computation of any financial
		

		
			ratio or requirement set forth in this Agreement, and either the Borrowers or the Bank
		

		
			shall so require, the Bank and the Borrowers shall negotiate in good faith to amend such ratio
		

		
			 or requirement to preserve the original intent thereof in light of such change in US GAAP;  
		

		
			provided that, until so amended, (i) such ratio or replacement shall continue to be 
		

		
			computed in accordance with US GAAP prior to such change therein and 
		

		
			(ii) the Borrowers shall provide to the Bank financial statements and other
		

		
			documents required under this Agreement or as reasonably requested hereunder setting forth a
		

		
			reconciliation between calculations of such ratio or requirement made before and after giving
		

		
			effect to such change in US GAAP.
		

		
			﻿
		

		
			(3) For the avoidance of doubt, any operating lease obligations that would be classified
		

		
			as a Capital Lease Obligation in accordance with US GAAP or otherwise reflected on the Borrowers’
		

		
			consolidated balance sheet, shall be excluded from the definition of indebtedness for borrowed
		

		
			money and shall not constitute indebtedness but shall be treated as operating leases.
		

		
			﻿
		

		

		

		 

		

			10

		

		

			 

		

 

		(4)   “Capital Lease Obligation” of any person means the obligation of such person, as lessee, to pay
		

		
			rent or other payment amounts under a lease of (or other agreement conveying the right to use)
		

		
			real or personal property which is required to be classified and accounted for as a capital lease or
		

		
			a liability on a consolidated balance sheet of such person (a “Capital Lease”).  
		

		
			﻿
		

		
			NEGATIVE COVENANTS
		

		
			So long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, the Borrower will and will ensure that its subsidiaries and each of the Guarantors will observe the Standard Negative Covenants set out in Schedule "A".  In addition, the Borrowers will not and will ensure that their subsidiaries and each of the Guarantors will not:
		

		
			﻿
		

		
			1)
		

		
			Make any Distributions* (i) if an Event of Default is continuing or will occur on a pre and post payment basis; and (ii) if the Total Leverage Ratio is >2.75x on a pre and post payment basis.
		

		
			﻿
		

		
			* “Distributions” are defined as dividends, share redemptions, repayment of shareholder or related party loans, and advances to shareholders or related parties.
		

		
			﻿
		

		
			For clarity, the USD $1,000,000 Distribution made by Holdings to BBX Capital, Inc. on December 31, 2019 will be excluded from this covenant and from any Financial Covenants as outlined in this Agreement. 
		

		
			2)
		

		
			[Deleted]. 
		

		
			3)
		

		
			[Deleted].
		

		
			4)
		

		
			Make any investment to and/or provide financial assistance to non-Guarantors except up to USD$2,500,000, without duplication of any permitted threshold level of action permitted in the Standard Negative Covenants in Schedule “A”.
		

		
			5)
		

		
			[Deleted]. 
		

		
			6)
		

		
			[Deleted].
		

		
			7)
		

		
			Provide any loans, advances of other forms of financial assistance in any form to Renin UK Corp.
		

		
			8)
		

		
			Make any Distributions of any kind to Renin UK Corp. at any time, nor pay any dividends to or make any shareholder loan repayments to Renin UK Corp. at any time.
		

		
			 
		

		
			PERMITTED LIENS
		

		
			﻿
		

		
			Permitted Liens as referred to in Schedule "A" or in this Agreement shall refer to:
		

		
			﻿
		

		
			1)
		

		
			﻿
		

		
			Purchase Money Security Interests in equipment which Purchase Money Security Interests exist on the date of this Agreement ("Existing PMSIs") which are known to the Bank and all future Purchase Money Security Interests on equipment acquired to replace the equipment under Existing PMSIs, provided that the cost of such replacement equipment may not exceed the cost of the equipment, and further provided that the aggregate of all such existing and future Purchase Money Security Interests shall not exceed a maximum of USD$2,500,000 at any time during the term of this Agreement; 
		

		
			﻿
		

		
			FINANCIAL COVENANTS
		

		
			﻿
		

		
			All Financial Covenants to be determined on a consolidated basis in accordance with US GAAP (provided that with respect to any lease that would in accordance with US GAAP be determined to be an operating lease as of the Acquisition Closing Date, the Borrowers shall continue to treat such lease as an operating lease and not a capital lease notwithstanding any changes to US GAAP in regards to accounting for leases, including regardless of whether such lease was entered into prior to or at any time after the Acquisition Closing Date)
		

		

		

		 

		

			11

		

		

			 

		

 

		﻿
		

		
			The Borrowers and the Renin Group agree that at all times:
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
						 

					
						 

					
						 

					
						the consolidated Renin Group and tested quarterly on a rolling four quarter basis. 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						.

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

				
	
					
						1)

					
					
						Its maximum Total Funded Debt to Consolidated Adjusted EBITDA Ratio ("Total Leverage Ratio") of the Renin Group shall not exceed 3.50x at any time on or after the Acquisition Closing Date, stepping down to not exceed:

					
						 

					
						- 3.25x on December 31, 2020, and all times thereafter, further stepping down to not exceed  

					
						- 3.00x on December 31, 2021 and all times thereafter.

					
						 

					
						To be calculated based on the consolidated Renin Group and tested quarterly on a rolling four quarter basis. 

					
						 

					
						“Total Funded Debt” is defined as all debts and liabilities for borrowed money including liabilities in respect of BAs/LIBOR and Letters of Credit/Guarantee, capital leases, contingent guarantees. 

					
						 

					
						“Consolidated Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, amortization, plus/(minus) extraordinary losses/(gains), non-cash losses/(gains), plus the following:

					
						(a) Normalization adjustments at closing up to USD $167,000 as supported by the September 2020 KPMG quality of earnings report; 

					
						(b) Non-recurring and identifiable expenses up to USD $1,000,000 incurred in connection with the Colonial Elegance Acquisition;

					
						(c) Unrealized cost synergies expected to be realized within 24 months from closing (to be reasonably identifiable and factually supportable) up to USD $2,800,000.

					
						 

					
						Note the aggregate of (a), (b) and (c) not to exceed 25% of Consolidated Adjusted EBITDA for such period.

					
						 

					
						For clarity purposes, the historical EBITDA of Colonial Elegance Inc. (“CE”) shall be added back to Consolidated Adjusted EBITDA as follows:

					
						 

					
						a.  Q4 2020 :  CE EBITDA of 9.5 months from January 1, 2020 to October 15, 2020

					
						 

					
						b.  Q1 2021 :  CE EBITDA of 6.5 months from April 1, 2020 to October 15, 2020

					
						 

					
						c.  Q2 2021 :  CE EBITDA of 3.5 months from July 1, 2020 to October 15, 2020

					
						 

					
						d.  Q3 2021 :  CE EBITDA of 0.5 months from October 1, 2020 to October 15, 2020

					
						 

					
						CE EBITDA as per the Compliance Certificate provided by the Borrowers on the Acquisition Closing Date is as follows:

					
						 

					
						1.  Q1 2020 (January 1, 2020 to March 31, 2020 – CAD$2,700,000

					
						 

					
						2.  Q2 2020 (April 1, 2020 to June 30, 2020 – CAD$1,913,000

					
						 

					
						3.  Q3 2020 until the Acquisition Closing Date:

					
						 

					
						a.  July 2020 – CAD$745,000

					
						 

					
						b.  August 2020 – CAD$885,000

					
						 

					
						c.  September 2020 Projected – CAD$983,000

					
						 

					
						d.  October 2020 Projected – CAD$983,000

					
						 

				

		 

		

			12

		

		

			 

		

 

			
					
						2)

					
					
						A minimum Fixed Charge Coverage Ratio (“FCCR”) of not less than 1.10x is to be maintained by the Renin Group at all times 

					
						 

					
						To be calculated based on the consolidated financial results of the Renin Group tested quarterly on a rolling four quarter basis.    

					
						 

					
						FCCR is defined as:

					
						 

					
						(Consolidated Adjusted EBITDA - Cash Taxes - Unfinanced Capex – Distributions) / Scheduled Principal + Interest

					
						 

					
						Unfinanced Capex shall be calculated as total capital expenditures net of long-term debt advanced in support of such expenditures and proceeds from the sale of fixed assets.  For greater certainty, Unfinanced Capex will exclude all Capex incurred in the Fiscal Year 2020 from the rolling quarterly Unfinanced Capex figure up to USD$6,627,000 deemed one-time for the Fiscal Year 2020.

					
						 

					
						Principal and Interest to be annualized for the first-year post closing.

				

		
			﻿
		

		
			The Accounting Principles set out above shall apply to the calculation of all Financial Covenants.
		

		
			﻿
		

		
			EVENTS OF
		

		
			DEFAULT
		

		
			﻿
		

		
			Subject to the cure periods provided in this Agreement or agreed with the Bank, the Bank may accelerate the payment of principal and interest under any committed credit facility hereunder and cancel any undrawn portion of any committed credit facility hereunder, at any time after the occurrence of any one of the Standard Events of Default contained in Schedule "A" attached hereto and after any one of the following additional events of default (each an “Event of Default”):
		

		
			﻿
		

			
					
						1)

					
					
						Change in control of any of the Borrowers or HOLDINGS where (i) the Controlling Shareholders do not have direct or indirect voting control of such Borrower or HOLDINGS, and (ii) such change has not been consented to by the Bank (such consent not to be unreasonably withheld). 

					
						 

					
						Notwithstanding the foregoing, if as a result of a change in control of a Borrower or HOLDINGS, the Controlling Shareholders of BBX Capital, Inc. have direct or indirect voting control of such Borrower or HOLDINGS (a “Permitted Change in Control”), an Event of Default shall not be triggered.

					
						 

					
						“Controlling Shareholders” shall refer to Alan B. Levan, Jarett S. Levan, John E. Abdo and/or Seth M. Wise (each, a “Specified Person”) and any person or entity based on any transfer for estate planning purposes to one or more family members of any Specified Person or one or more trust, limited liability company, partnership or other vehicles for the benefit of any Specified Person or family member of any Specified Person.

					
						 

					
						For the purposes of this definition, “control” (including with correlative meanings the terms “controlled by” and “controls”) means the direct or indirect possession by a person or persons of:

					
						(i) power to vote 50.1% or more of the securities (on a fully diluted basis) or other equity or membership interests of another person having ordinary voting power for the election of directors or managing general partners or members;

					
						(ii) power to direct or cause the direction of the management and policies of another person whether by contract or otherwise; or

					
						(iii) beneficial ownership of 50.1% or more of any class of voting stock of another person or 50.1% or more of all outstanding equity interests or other interests of such other person.

					
						 

				

		
			CROSS DEFAULT
		

		
			﻿
		

		
			a)
		

		
			Cross-default between the TD credit Facilities and any Permitted Indebtedness
		

		
			b)
		

		

		

		 

		

			13

		

		

			 

		

 

		Cross-default to any other indebtedness of the Borrowers and Guarantors to the Bank or any of the Bank’s affiliates or subsidiaries in excess of USD $1,000,000.   
		

		
			﻿
		

		
			ANCILLARY
		

		
			FACILITIES
		

		
			﻿
		

		
			As at the date of this Agreement, the following uncommitted ancillary products are made available. These products may be subject to other agreements. 
		

		
			﻿
		

		
			3 (A) (B) 
		

		
			TD Visa Business card (or cards) for an aggregate amount of CAD $300,000.
		

		
			﻿
		

		
			4 (A) 
		

		
			Spot Foreign Exchange Facility which allows the Borrower to enter into USD $2,000,000 for settlement on a spot basis.
		

		
			﻿
		

		
			4 (B)
		

		
			Spot Foreign Exchange Facility which allows the Borrower to enter into USD $2,000,000 for settlement on a spot basis.
		

		
			﻿
		

		
			5 (A) (B) 
		

		
			Certain treasury products, such as forward foreign exchange transactions, and/or interest rate and currency and/or commodity swaps.
		

		
			﻿
		

		
			The Borrower agrees that treasury products will be used to hedge its risk and will not be used for speculative purposes.
		

		
			﻿
		

		
			The paragraph headed "FX CLOSE OUT" as set out in Schedule "A" shall apply to FX Transactions.
		

		
			﻿
		

		
			For the Borrower's information only, the Bank advises the Borrower that, as at the day of this Agreement only, the Bank would, if requested by the Borrower, make available to the Borrower forward foreign exchange contracts in an aggregate amount of up to USD $6,000,000 for periods of up to 12 months.  This limit and term is subject to change at any time at the discretion of the Bank and without prior notice to the Borrower.  The Borrower must contact the Bank from time to time, to obtain information about the Borrower's then current forward foreign exchange limit.
		

		
			﻿
		

		
			LANGUAGE
		

		
			PREFERENCE
		

		
			﻿
		

		
			This Agreement has been drawn up in the English language at the request of all parties.(Cet acte a été rédigé en langue anglaise à la demande de toutes les parties.)
		

		
			﻿
		

		
			SCHEDULE "A" -
		

		
			STANDARD TERMS
		

		
			AND CONDITIONS
		

		
			﻿
		

		
			Schedule "A" sets out the Standard Terms and Conditions ("Standard Terms and Conditions") which apply to these credit facilities. The Standard Terms and Conditions, including the defined terms set out therein, form part of this Agreement, unless this letter states specifically that one or more of the Standard Terms and Conditions do not apply or are modified.
		

		
			﻿
		

		
			AMENDMENTS TO SCHEDULE "A" -
		

		
			STANDARD TERMS
		

		
			AND CONDITIONS
		

		
			﻿
		

		
			The following Sections in the Standard Terms and Conditions have been amended for this transaction:
		

		
			﻿
		

		
			Standard Representations and Warranties 6(f)
		

		

		

		 

		

			14

		

		

			 

		

 

		Standard Negative Covenants 8(b), (c) and (g)
		

		
			Standard Events of Default 10(d) and (i)
		

		
			Acceleration 11
		

		
			Changing the Agreement 15(a) re Committed Line
		

		
			F/X Close-out 24
		

		
			Miscellaneous 27(iii), (v)
		

		
			﻿
		

		
			NOTICE
		

		
			﻿
		

		
			Any notice, request or other communication hereunder to any of the parties hereto shall be in writing and be well and sufficiently given if delivered personally or sent by prepaid registered mail to its address to the number and to the attention of the person set forth below:
		

		
			﻿
		

		
			In the case of the Borrowers, a single notice to:
		

		
			﻿
		

		
			Renin Canada Corp.
110 Walker Drive
Brampton, Ontario
L6T 4H6

Attention:Joe Ruffo, President and Chief Executive Officer
Email Address:joseph.ruffo@renin.com
		

		
			﻿
		

		
			In the case of the Lender, to:
		

		
			﻿
		

		
			The Toronto-Dominion Bank
4499 Highway 7 At Pine Valley Drive
2nd Floor
Vaughan, Ontario
L4L 9A9

Attention: Krystal Van Westerop
		

		
			Email:                krystal.vanwesterop@td.com
		

		
			﻿
		

		
			The Lender will provide to BBX Capital, Inc., at the address set out below, a copy of each written notice sent or given by the Lender to the Borrowers in respect of the occurrence of a default by the Borrowers under the terms of the Loan Agreement:
		

		
			﻿
		

		
			BBX Capital, Inc.
		

		
			401 E. Las Olas Blvd., Suite 800
		

		
			Fort Lauderdale, FL 33301
		

		
			﻿
		

		
			Attention : Brett Sheppard - Chief Financial Officer
		

		
			Email: bsheppard@bbxcapital.com
		

		
			﻿
		

		
			Further provided that the covenant to provide copies of notices as described above shall only apply for so long as the Controlling Shareholders control BBX Capital, Inc., and BBX Capital, Inc. maintains a controlling interest in the Borrowers and Renin Holdings LLC.
		

		
			﻿
		

		
			For clarity, it is further acknowledged that the Lender shall not be required to provide BBX Capital, Inc. with notice of any telephone conversation between the Lender and the Borrowers concerning or addressing any default or Event of Default under the Loan Agreement. 

		

		
			Any such notice shall be deemed to be given and received, if delivered by hand, when delivered, and if mailed, by certified or registered mail, shall be deemed to have been given when received, unless an interruption of postal services occurs or is continuing on or within the three Business Days after the date of mailing in which 
		

		 

		

			15

		

		

			 

		

 

		case the notice shall be deemed to have been received on the third Business Day after postal service resumes. Any party may by notice to the other, given as aforesaid, designate a changed address.
		

		
			﻿
		

		
			Notices and other communications to the Lender, the Borrowers and any Guarantor and any other person may also be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) and any such notice shall be deemed received upon the sender’s receipt of an acknowledgement from the intended  recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement).
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Remainder of Page Intentionally Left Blank.  Signature Pages follow.]
		

		

		

		 

		

			16

		

		

			 

		

 

		
		

		
			﻿
		

		
			We trust you will find these facilities helpful in meeting your ongoing financing requirements.  We ask that if you wish to accept this offer of financing (which includes the Standard Terms and Conditions), please do so by signing and returning the attached duplicate copy of this letter to the undersigned.  This offer will expire if not accepted in writing and received by the Bank on or before October 22, 2020
		

		
			﻿
		

		
			Yours truly,
		

		
			﻿
		

		
			﻿
		

		
			THE TORONTO-DOMINION BANK
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			/s/Ryan Avery                                                             /s/ Krystal Van Westrop
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Ryan Avery

					
						District Vice President

					
					
						 

					
					
						Krystal Van Westrop

					
						Senior Manager, Commercial Services

					
					
						 

				

		
			﻿
		

		

		

		 

		

			17

		

		

			 

		

 

		TO THE TORONTO-DOMINION BANK:
		

		
			﻿
		

		
			RENIN CANADA CORP., and RENIN US LLC hereby accepts the foregoing offer this 22 day of October, 2020. The Borrower confirms that, except as may be set out above, the credit facility(ies) detailed herein shall not be used by or on behalf of any third party.
		

		
			﻿
		

			
					
						﻿

				
	
					
						RENIN CANADA CORP.

				
	
					
						﻿

				
	
					
						﻿

				
	
					
						/s/Joseph Ruffo

					
						Signature

				
	
					
						﻿

				
	
					
						Joseph Ruffo

				
	
					
						Chief Executive Officer

				
	
					
						________________________________

					
						Print Name & Position

				
	
					
						﻿

				

		
			﻿
		

			
					
						﻿

				
	
					
						RENIN US LLC

				
	
					
						/s/Joseph Ruffo

					
						Signature

				
	
					
						﻿

				
	
					
						Joseph Ruffo

				
	
					
						Chief Executive Officer

				
	
					
						________________________________

					
						Print Name & Position

				
	
					
						﻿

				

		
			﻿
		

		

		

		 

		

			18

		

		

			 

		

 

		cc. Guarantor(s)
		

		
			﻿
		

		
			The Bank is providing the guarantor(s) with a copy of this letter as a courtesy only.  The delivery of a copy of this letter does not create any obligation of the Bank to provide the guarantor(s) with notice of any changes to the credit facilities, including without limitation, changes to the terms and conditions, increases or decreases in the amount of the credit facilities, the establishment of new credit facilities or otherwise.  The Bank may, or may not, at its option, provide the guarantor(s) with such information, provided that the Bank will provide such information upon the written request of the guarantor.
		

		
			﻿
		

		
			﻿
		

		
			Receipt acknowledged this 22 day of October, 2020
		

		
			﻿
		

		
			RENIN HOLDINGS LLC
		

			
					
						﻿

				
	
					
						﻿

				
	
					
						/s/Joseph Ruffo

					
						Signature

				
	
					
						﻿

				
	
					
						Joseph Ruffo

				
	
					
						Chief Executive Officer

				
	
					
						________________________________

					
						Print Name & Position

				
	
					
						﻿

				

		

		

		 

		

			19

		

		

			 

		

 

		SCHEDULE A
		

		
			STANDARD TERMS AND CONDITIONS
		

		
			﻿
		

		
			﻿
		

		
			1. INTEREST RATE DEFINITIONS
		

		
			Prime Rate means the rate of interest per annum (based on a 365 day year) established and reported by the Bank to the Bank of Canada from time to time as the reference rate of interest for determination of interest rates that the Bank charges to customers of varying degrees of creditworthiness in Canada for Canadian dollar loans made by it in Canada.
		

		
			﻿
		

		
			The Stamping Fee rate per annum for CAD B/As is based on a 365 day year and the Stamping Fee is calculated on the Face Amount of each B/A presented to the Bank for acceptance.  The Stamping Fee rate per annum for USD B/As is based on a 360 day year and the Stamping Fee is calculated on the Face Amount of each B/A presented to the Bank for acceptance.
		

		
			﻿
		

		
			CDOR means, for any day, the annual rate for B/As denominated in Canadian Dollars for a specified term that appears on the Reuters Screen CDOR Page as of 10:00 a.m. (Toronto time) on such day (or, if such day is not a Business Day, then on the immediately preceding Business Day).
		

		
			﻿
		

		
			LIBOR means the rate of interest per annum (based on a 360 day year) as determined by the Bank (rounded upwards, if necessary to the nearest whole multiple of 1/16th of 1%) at which the Bank may make available United States dollars which are obtained by the Bank in the Interbank Euro Currency Market, London, England at approximately 11:00 a.m. (Toronto time) on the second Business Day before the first day of, and in an amount similar to, and for the period similar to the interest period of, such advance.
		

		
			﻿
		

		
			USBR means the rate of interest per annum (based on a 365 day year) established by the Bank from time to time as the reference rate of interest for the determination of interest rates that the Bank charges to customers of varying degrees of creditworthiness for US dollar loans made by it in Canada.
		

		
			﻿
		

		
			If Prime Rate, CDOR, LIBOR, USBR or any other applicable base rate is less than zero, such base rate shall be deemed to be zero for purposes of this Agreement.
		

		
			﻿
		

		
			Any interest rate based on a period less than a year expressed as an annual rate for the purposes of the Interest Act (Canada) is equivalent to such determined rate multiplied by the actual number of days in the calendar year in which the same is to be ascertained and divided by the number of days in the period upon which it was based.
		

		
			﻿
		

		
			2. INTEREST CALCULATION AND PAYMENT
		

		
			Interest on Prime Based Loans and USBR Loans is calculated daily (including February 29 in a leap year) and payable monthly in arrears based on the number of days the subject loan is outstanding unless otherwise provided in the Rate and Payment Terms Notice.  Interest is charged on February 29 in a leap year.
		

		
			﻿
		

		
			The Stamping Fee is calculated based on the amount and the term of the B/A and is payable upon acceptance by the Bank of the B/A. The net proceeds received by the Borrower on a B/A advance will be equal to the Face Amount of the B/A discounted at the Bank's then prevailing B/A discount rate for CAD B/As or USD B/As as the case may be, for the specified term of the B/A less the B/A Stamping Fee. If the B/A discount rate (or the rate used to determine the B/A discount rate) is less than zero, it shall instead be deemed to be zero for purposes of this Agreement.
		

		
			﻿
		

		
			Interest on LIBOR Loans and CDOR Loans is calculated and payable on the earlier of contract maturity or quarterly in arrears, for the number of days in the LIBOR or CDOR interest period, as applicable.
		

		
			﻿
		

		
			L/C and L/G fees are payable at the time and as required under the Operating Line and as set out in the Letter of Credit Indemnity Agreement applicable to the issued L/C or L/G.
		

		
			﻿
		

		
			﻿
		

		
			Interest on Fixed Rate Term Loans is compounded monthly and payable monthly in arrears unless otherwise provided in the Rate and Payment Terms Notice.
		

		

		

		 

		

			20

		

		

			 

		

 

		﻿
		

		
			Interest is payable both before and after maturity or demand, default and judgment.
		

		
			﻿
		

		
			Each payment under this Agreement shall be applied first in payment of costs and expenses, then interest and fees and the balance, if any, shall be applied in reduction of principal.
		

		
			﻿
		

		
			For loans not secured by real property, all overdue amounts of principal and interest and all amounts outstanding in excess of the Credit Limit shall bear interest from the date on which the same became due or from when the excess was incurred, as the case may be, until the date of payment or until the date the excess is repaid at the Bank's standard rate charged from time to time for overdrafts, or such lower interest rate if the Bank agrees to a lower interest rate in writing.  Nothing in this clause shall be deemed to authorize the Borrower to incur loans in excess of the Credit Limit.
		

		
			﻿
		

		
			If any provision of this Agreement would oblige the Borrower to make any payment of interest or other amount payable to the Bank in an amount or calculated at a rate which would be prohibited by law or would result in a receipt by the Bank of “interest” at a “criminal rate” (as such terms are construed under the Criminal Code (Canada)), then, notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by applicable law or so result in a receipt by the Bank of “interest” at a “criminal rate”, such adjustment to be effected, to the extent necessary (but only to the extent necessary), as follows: first, by reducing the amount or rate of interest, and, thereafter, by reducing any fees, commissions, costs, expenses, premiums and other amounts required to be paid to the Bank which would constitute interest for purposes of section 347 of the Criminal Code (Canada).
		

		
			﻿
		

		
			3. DRAWDOWN PROVISIONS
		

		
			﻿
		

		
			Prime Based and USBR Loans
		

		
			There is no minimum amount of drawdown by way of Prime Based Loans and USBR Loans, except as stated in this Agreement. The Borrower shall provide the Bank with 3 Business Days' notice of a requested Prime Based Loan or USBR Loan over $1,000,000.
		

		
			﻿
		

		
			B/As
		

		
			The Borrower shall advise the Bank of the requested term or maturity date for B/As issued hereunder.  The Bank shall have the discretion to restrict the term or maturity dates of B/As. In no event shall the term of the B/A exceed the Contractual Term Maturity Date or Maturity Date, as applicable. Except as otherwise stated in this Agreement, the minimum amount of a drawdown by way of B/As is $1,000,000 and in multiples of $100,000 thereafter. The Borrower shall provide the Bank with 3 Business Days' notice of a requested B/A drawdown.
		

		
			﻿
		

		
			The Borrower shall pay to the Bank the full amount of the B/A at the maturity date of the B/A.
		

		
			﻿
		

		
			The Borrower appoints the Bank as its attorney to and authorizes the Bank to (i) complete, sign, endorse, negotiate and deliver B/As on behalf of the Borrower in handwritten form, or by facsimile or mechanical signature or otherwise, (ii) accept such B/As, and (iii) purchase, discount, and/or negotiate B/As.
		

		
			﻿
		

		
			LIBOR and CDOR
		

		
			The Borrower shall advise the Bank of the requested LIBOR or CDOR contract maturity period. The Bank shall have the discretion to restrict the LIBOR or CDOR contract maturity. In no event shall the term of the LIBOR or CDOR contract exceed the Contractual Term Maturity Date. Except as otherwise stated in this Agreement, the minimum amount of a drawdown by way of a LIBOR Loan or a CDOR Loan is $1,000,000, and shall be in multiples of $100,000 thereafter. The Borrower will provide the Bank with 3 Business Days' notice of a requested LIBOR Loan or CDOR Loan.
		

		
			﻿
		

		
			L/C and/or L/G
		

		
			The Bank shall have the discretion to restrict the maturity date of L/Gs or L/Cs.
		

		

		

		 

		

			21

		

		

			 

		

 

		B/A, LIBOR and CDOR - Conversion
		

		
			Any portion of any B/A, LIBOR or CDOR Loan that is not repaid, rolled over or converted in accordance with the applicable notice requirements hereunder shall be converted by the Bank to a Prime Based Loan effective as of the maturity date of the B/A or the last day in the interest period of the LIBOR or CDOR contract, as applicable. The Bank may charge interest on the amount of the Prime Based Loan at the rate of 115% of the rate applicable to Prime Based Loans for the 3 Business Day period immediately following such maturity.  Thereafter, the rate shall revert to the rate applicable to Prime Based Loans.
		

		
			﻿
		

		
			B/A, LIBOR and CDOR – Market Disruption
		

		
			If the Bank determines, in its sole discretion, that a normal market in Canada for the purchase and sale of B/As or the making of CDOR or LIBOR Loans does not exist, any right of the Borrower to request a drawdown under the applicable borrowing option shall be suspended until the Bank advises otherwise. Any drawdown request for B/As, LIBOR or CDOR Loans, as applicable, during the suspension period shall be deemed to be a drawdown notice requesting a Prime Based Loan in an equivalent amount.
		

		
			﻿
		

		
			Cash Management
		

		
			The Bank may, and the Borrower hereby authorizes the Bank to, drawdown under the Operating Loan, Agriculture Operating Line or Farm Property Line of Credit to satisfy any obligations of the Borrower to the Bank in connection with any cash management service provided by the Bank to the Borrower.  The Bank may drawdown under the Operating Loan, Agriculture Operating Line or Farm Property Line of Credit even if the drawdown results in amounts outstanding in excess of the Credit Limit.
		

		
			﻿
		

		
			Notice
		

		
			Prior to each drawdown under a Fixed Rate Term Loan, other than a Long Term Farm Loan, an Agriculture Term Loan, a Canadian Agricultural Loans Act Loan, a Dairy Term Loan or a Poultry Term Loan and at least 10 days prior to the maturity of each Rate Term, the Borrower will advise the Bank of its selection of drawdown options from those made available by the Bank.  The Bank will, after each drawdown, other than drawdowns by way of BA, CDOR, or LIBOR Loan or under the operating loan, send a Rate and Payment Terms Notice to the Borrower.
		

		
			﻿
		

		
			4. PREPAYMENT
		

		
			﻿
		

		
			Fixed Rate Term Loans    
		

		
			﻿
		

		
			10% Prepayment Option Chosen.
		

		
			﻿
		

		
			(a)Once, each calendar year, ("Year"), the Borrower may, provided that an Event of Default has not occurred, prepay in one lump sum, an amount of principal outstanding under a Fixed Rate Term Loan not exceeding 10% of the original amount of the Fixed Rate Term Loan, upon payment of all interest accrued to the date of prepayment without paying any prepayment charge.  If the prepayment privilege is not used in one Year, it cannot be carried forward and used in a later Year.
		

		
			
		

		
			(b)Provided that an Event of Default has not occurred, the Borrower may prepay more than 10% of the original amount of a Fixed Rate Term Loan in any Year, upon payment of all interest accrued to the date of prepayment and an amount equal to the greater of:
		

		
			﻿
		

			
	
			
				i)
			

			
	
			
			three months' interest on the amount of the prepayment (the amount of prepayment is the amount of prepayment exceeding the 10% limit described in Section 4(a)) using the interest rate applicable to the Fixed Rate Term Loan being prepaid; and

		
			﻿
		

			
	
			
				ii)
			

			
	
			
			the Yield Maintenance, being the difference between:

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			the current outstanding principal balance of the Fixed Rate Term Loan; and

			
	
			
				 b.
			

			
	
			
			the sum of the present values as of the date of the prepayment of the future payments to be made on the Fixed Rate Term Loan until the last day of the Rate Term, plus the present value of the principal amount of the Fixed Rate Term Loan that would have been due on the maturity of the Rate Term, when discounted at the Government of Canada bond yield rate with a term which has the closest maturity to the unexpired term of the Fixed Rate Term Loan.

		

		

		 

		

			22

		

		

			 

		

 

		﻿
		

		
			﻿
		

		
			10% Prepayment Option Not Chosen.
		

		
			
		

		
			(c)The Borrower may, provided that an Event of Default has not occurred, prepay all or any part of the principal then outstanding under a Fixed Rate Term Loan upon payment of all interest accrued to the date of prepayment and an amount equal to the greater of:
		

		
			﻿
		

			
	
			
				i)
			

			
	
			
			three months' interest on the amount of the prepayment using the interest rate applicable to the Fixed Rate Term Loan being prepaid; and

		
			﻿
		

			
	
			
				ii)
			

			
	
			
			the Yield Maintenance, being the difference between:

		
			﻿
		

			
	
			
				 a.
			

			
	
			
			the current outstanding principal balance of the Fixed Rate Term Loan; and

			
	
			
				 b.
			

			
	
			
			the sum of the present values as of the date of the prepayment of the future payments to be made on the Fixed Rate Term Loan until the last day of the Rate Term, plus the present value of the principal amount of the Fixed Rate Term Loan that would have been due on the maturity of the Rate Term, when discounted at the Government of Canada bond yield rate with a term which has the closest maturity to the unexpired term of the Fixed Rate Term Loan.

		
			﻿
		

		
			﻿
		

		
			Floating Rate Term Loans
		

		
			﻿
		

		
			The Borrower may prepay the whole or any part of the principal outstanding under a Floating Rate Term Loan, at any time without the payment of prepayment charges.
		

		
			﻿
		

		
			5. STANDARD DISBURSEMENT CONDITIONS
		

		
			The obligation of the Bank to permit any drawdowns hereunder at any time is subject to the following conditions precedent: 
		

		
			a)The Bank shall have received the following documents which shall be in form and substance satisfactory to the Bank:
		

		
			i)A copy of a duly executed resolution of the Board of Directors of the Borrower empowering the Borrower to enter into this Agreement;
		

		
			ii)A copy of any necessary government approvals authorizing the Borrower to enter into this Agreement;
		

		
			iii)All of the Bank Security and supporting resolutions and solicitors' letter of opinion required hereunder;
		

		
			iv)The Borrower's compliance certificate certifying compliance with all terms and conditions hereunder;
		

		
			v)All operation of account documentation; and
		

		
			vi)For drawdowns under the Facility by way of L/C or L/G, the Bank’s standard form Letter of Credit Indemnity Agreement
		

		
			b)The representations and warranties contained in this Agreement are correct.
		

		
			c)No event has occurred and is continuing which constitutes an Event of Default or would constitute an Event of Default, but for the requirement that notice be given or time elapse or both.
		

		
			d)The Bank has received the arrangement fee payable hereunder (if any) and the Borrower has paid all legal and other expenses incurred by the Bank in connection with the Agreement or the Bank Security.
		

		
			﻿
		

		
			6.  STANDARD REPRESENTATIONS AND WARRANTIES
		

		
			The Borrower hereby represents and warrants, which representations and warranties shall be deemed to be continually repeated so long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, that:
		

		

		

		 

		

			23

		

		

			 

		

 

		a)The Borrower is a duly incorporated corporation, a limited partnership, partnership, or sole proprietorship, duly organized, validly existing and in good standing under the laws of the jurisdiction where the Branch/Centre is located and each other jurisdiction where the Borrower has property or assets or carries on business and the Borrower has adequate corporate power and authority to carry on its business, own property, borrow monies and enter into agreements therefore, execute and deliver the Agreement, the Bank Security, and documents required hereunder, and observe and perform the terms and provisions of this Agreement.
		

		
			b)There are no laws, statutes or regulations applicable to or binding upon the Borrower and no provisions in its charter documents or in any by-laws, resolutions, contracts, agreements, or arrangements which would be contravened, breached, violated as a result of the execution, delivery, performance, observance, of any terms of this Agreement.
		

		
			c)No Event of Default has occurred nor has any event occurred which, with the passage of time or the giving of notice, would constitute an Event of Default under this Agreement or which would constitute a default under any other agreement.
		

		
			d)There are no actions, suits or proceedings, including appeals or applications for review, or any knowledge of pending actions, suits, or proceedings against the Borrower and its subsidiaries, before any court or administrative agency which would result in any material adverse change in the property, assets, financial condition, business or operations of the Borrower.
		

		
			e)All material authorizations, approvals, consents, licenses, exemptions, filings, registrations and other requirements of governmental, judicial and public bodies and authorities required to carry on its business have been or will be obtained or effected and are or will be in full force and effect.
		

		
			f)The financial statements and forecasts delivered to the Bank fairly present the present financial position of the Borrower, and have been prepared by the Borrower and its auditors in accordance with US GAAP, the International Financial Reporting Standards or GAAP for Private Enterprises.
		

		
			g)All of the remittances required to be made by the Borrower to the federal government and all provincial and municipal governments have been made, are currently up to date and there are no outstanding arrears.  Without limiting the foregoing, all employee source deductions (including income taxes, Employment Insurance and Canada Pension Plan), sales taxes (both provincial and federal), corporate income taxes, corporate capital taxes, payroll taxes and workers' compensation dues are currently paid and up to date.
		

		
			h)If the Bank Security includes a charge on real property, the Borrower or Guarantor, as applicable, is the legal and beneficial owner of the real property with good and marketable title in fee simple thereto, free from all easements, rights-of-way, agreements, restrictions, mortgages, liens, executions and other encumbrances, save and except for those approved by the Bank in writing.
		

		
			i)All information that the Borrower has provided to the Bank is accurate and complete respecting, where applicable:
		

		
			i)the names of the Borrower’s directors and the names and addresses of the Borrower’s 
		

		
			beneficial owners;
		

		
			ii)the names and addresses of the Borrower’s trustees, known beneficiaries and/or settlors; 
		

		
			and
		

		
			iii)the Borrower’s ownership, control and structure.
		

		
			﻿
		

		
			7. STANDARD POSITIVE COVENANTS
		

		
			So long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, the Borrower will, and will ensure that its subsidiaries and each of the Guarantors will:
		

		
			a)Pay all amounts of principal, interest and fees on the dates, times and place specified herein, under the Rate and Payment Terms Notice, and under any other agreement between the Bank and the Borrower.
		

		
			b)Advise the Bank of any change in the amount and the terms of any credit arrangement made with other lenders or any action taken by another lender to recover amounts outstanding with such other lender.
		

		
			c)Advise promptly after the happening of any event which will result in a material adverse change in the financial condition, business, operations, or prospects of the Borrower or the occurrence of any Event of Default or default under this Agreement or under any other agreement for borrowed money.
		

		

		

		 

		

			24

		

		

			 

		

 

		d)Do all things necessary to maintain in good standing its corporate existence and preserve and keep all material agreements, rights, franchises, licenses, operations, contracts or other arrangements in full force and effect.
		

		
			e)Take all necessary actions to ensure that the Bank Security and its obligations hereunder will rank ahead of all other indebtedness of and all other security granted by the Borrower.
		

		
			f)Pay all taxes, assessments and government charges unless such taxes, assessments, or charges are being contested in good faith and appropriate reserves shall be made with funds set aside in a separate trust fund.
		

		
			g)Provide the Bank with information and financial data as it may request from time to time, including, without limitation, such updated information and/or additional supporting information as the Bank may require with respect to any or all the matters in the Borrower’s representation and warranty in Section 6(i).
		

		
			h)Maintain property, plant and equipment in good repair and working condition.
		

		
			i)Inform the Bank of any actual or probable litigation and furnish the Bank with copies of details of any litigation or other proceedings, which might affect the financial condition, business, operations, or prospects of the Borrower
		

		
			j)Provide such additional security and documentation as may be required from time to time by the Bank or its solicitors. 
		

		
			k)Continue to carry on the business currently being carried on by the Borrower its subsidiaries and each of the Guarantors at the date hereof.
		

		
			l)Maintain adequate insurance on all of its assets, undertakings, and business risks.
		

		
			m)Permit the Bank or its authorized representatives full and reasonable access to its premises, business, financial and computer records and allow the duplication or extraction of pertinent information therefrom.
		

		
			n)Comply with all applicable laws.
		

		
			﻿
		

		
			8. STANDARD NEGATIVE COVENANTS
		

		
			So long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, the Borrower will not and will ensure that its subsidiaries and each of the Guarantors will not:
		

		
			a)Create, incur, assume, or suffer to exist, any mortgage, deed of trust, pledge, lien, security interest, assignment, charge, or encumbrance (including without limitation, any conditional sale, or other title retention agreement, or finance lease) of any nature, upon or with respect to any of its assets or undertakings, now owned or hereafter acquired, except for those Permitted Liens, if any, set out in the Letter.
		

		
			b)Create, incur, assume or suffer to exist any other indebtedness for borrowed money in excess of USD$2,500,000 in the aggregate, or guarantee or act as surety or agree to indemnify the debts of any other Person in excess of USD$2,500,000 in the aggregate, or make any loans or advances to any other Person.  For clarity, indebtedness will not include trade credit in the ordinary course of business.
		

		
			c)Merge, amalgamate or consolidate with any other Person, or acquire any other entity, or acquire or form any subsidiary in whole or in part, or acquire all or substantially all of the shares, assets or business of any other Person except as defined in Permitted Change in Control. 
		

		
			d)Sell, lease, assign, transfer, convey or otherwise dispose of any of its now owned or hereafter acquired assets (including, without limitation, shares of stock and indebtedness of subsidiaries, receivables and leasehold interests), except for inventory disposed of in the ordinary course of business.
		

		
			e)Terminate or enter into a surrender of any lease of any property mortgaged under the Bank Security.
		

		
			f)Cease to carry on the business currently being carried on by each of the Borrower, its subsidiaries, and the Guarantors at the date hereof.
		

		
			g)Permit any change of ownership or change in the capital structure of the Renin Group without the Bank’s prior written consent, other than a Permitted Change in Control. 
		

		
			﻿
		

		

		

		 

		

			25

		

		

			 

		

 

		9. ENVIRONMENTAL
		

		
			The Borrower represents and warrants (which representation and warranty shall continue throughout the term of this Agreement) that the business of the Borrower, its subsidiaries and each of the Guarantors is being operated in compliance with applicable laws and regulations respecting the discharge, omission, spill or disposal of any hazardous materials and that any and all enforcement actions in respect thereto have been clearly conveyed to the Bank.
		

		
			﻿
		

		
			The Borrower shall, at the request of the Bank from time to time, and at the Borrower's expense, obtain and provide to the Bank an environmental audit or inspection report of the property from auditors or inspectors acceptable to the Bank.
		

		
			﻿
		

		
			The Borrower hereby indemnifies the Bank, its officers, directors, employees, agents and shareholders, and agrees to hold each of them harmless from all loss, claims, damages and expenses (including legal and audit expenses) which may be suffered or incurred in connection with the indebtedness under this Agreement or in connection with the Bank Security.
		

		
			﻿
		

		
			10. STANDARD EVENTS OF DEFAULT
		

		
			The Bank may accelerate the payment of principal and interest under any committed credit facility hereunder and cancel any undrawn portion of any committed credit facility hereunder, at any time after the occurrence of any one of the following Events of Default:
		

		
			a)Non-payment of principal outstanding under this Agreement when due or non-payment of interest or fees outstanding under this Agreement within 3 Business Days of when due. 
		

		
			b)If any representation, warranty or statement made hereunder or made in connection with the execution and delivery of this Agreement or the Bank Security is false or misleading at any time.
		

		
			c)If any representation or warranty made or information provided by the Guarantor to the Bank from time to time, including without limitation, under or in connection with the Personal Financial Statement and Privacy Agreement provided by the Guarantor, is false or misleading at any time.
		

		
			d)If there is a breach or non-performance or non-observance of any term or condition of this Agreement or the Bank Security and, if such default is capable to being remedied, the default continues unremedied for 7 Business Days after the occurrence.
		

		
			e)If the Borrower, any one of its subsidiaries, or, if any of the Guarantors makes a general assignment for the benefit of creditors, files or presents a petition, makes a proposal or commits any act of bankruptcy, or if any action is taken for the winding up, liquidation or the appointment of a liquidator, trustee in bankruptcy, custodian, curator, sequestrator, receiver or any other officer with similar powers or if a judgment or order shall be entered by any court approving a petition for reorganization, arrangement or composition of or in respect of the Borrower, any of its subsidiaries, or any of the Guarantors or if the Borrower, any of its subsidiaries, or any of the Guarantors is insolvent or declared bankrupt.
		

		
			f)If there exists a voluntary or involuntary suspension of business of the Borrower, any of its subsidiaries, or any of the Guarantors.
		

		
			g)If action is taken by an encumbrancer against the Borrower, any of its subsidiaries, or any of the Guarantors to take possession of property or enforce proceedings against any assets.
		

		
			h)If any final judgment for the payment of monies is made against the Borrower, any of its subsidiaries, or any of the Guarantors and it is not discharged within 30 days from the imposition of such judgment.
		

		
			i)If there exists an event of default after all cure periods have expired under any other agreement for borrowed money in excess of USD$1,000,000 entered into by the Borrower, any of its subsidiaries, or any of the Guarantors.
		

		
			j)If the Borrower, any one of its subsidiaries, or any of the Guarantors default under any other present or future agreement with the Bank or any of the Bank’s subsidiaries, including without limitation, any other loan agreement, forward foreign exchange transactions, interest rate and currency and/or commodity swaps.
		

		
			k)If the Bank Security is not enforceable or if any party to the Bank Security shall dispute or deny any liability or any of its obligations under the Bank Security, or if any Guarantor terminates a guarantee in respect of future advances.
		

		

		

		 

		

			26

		

		

			 

		

 

		l)If, in the Bank's determination, a material adverse change occurs in the financial condition, business operations or prospects of the Borrower, any of the Borrower's subsidiaries, or any of the Guarantors.
		

		
			﻿
		

		
			m)If the Borrower or Guarantor is an individual, the Borrower or such Guarantor dies or is found by a court to be incapable of managing his or her affairs.
		

		
			﻿
		

		
			11. ACCELERATION
		

		
			If the Bank accelerates the payment of principal and interest hereunder, the Borrower shall immediately pay to the Bank all amounts outstanding hereunder, including without limitation, the amount of unmatured B/As, CDOR and LIBOR Loans and the amount of all drawn and undrawn  L/Gs and  L/Cs.  All cost to the Bank of unwinding CDOR and LIBOR Loans and all loss suffered by the Bank in re-employing amounts repaid will be paid by the Borrower.
		

		
			﻿
		

		
			12. INDEMNITY
		

		
			The Borrower agrees to indemnify the Bank from and against any and all claims, losses and liabilities arising or resulting from this Agreement. USD loans must be repaid with USD and CAD loans must be repaid with CAD and the Borrower shall indemnify the Bank for any loss suffered by the Bank if USD loans are repaid with CAD or vice versa, whether such payment is made pursuant to an order of a court or otherwise. In no event will the Bank be liable to the Borrower for any direct, indirect or consequential damages arising in connection with this Agreement.
		

		
			﻿
		

		
			13. TAXATION ON PAYMENTS
		

		
			All payments made by the Borrower to the Bank will be made free and clear of all present and future taxes (excluding the Bank's income taxes), withholdings or deductions of whatever nature.  If these taxes, withholdings or deductions are required by applicable law and are made, the Borrower, shall, as a separate and independent obligation, pay to the Bank all additional amounts as shall fully indemnify the Bank from any such taxes, withholdings or deductions.
		

		
			﻿
		

		
			14. REPRESENTATION
		

		
			No representation or warranty or other statement made by the Bank concerning any of the Facilities shall be binding on the Bank unless made by it in writing as a specific amendment to this Agreement.
		

		
			﻿
		

		
			15. CHANGING THE AGREEMENT
		

		
			a)The Bank may, from time to time, unilaterally change the provisions of this Agreement where (i) such change is for the benefit of the Borrower, or made at the Borrower’s request, including without limitation, decreases to fees or interest payable hereunder or (ii) where such change makes compliance with this Agreement less onerous to the Borrower, including without limitation, release of security.  These changes can be made by the Bank providing written notice to the Borrower of such changes in the form of a specific waiver or a document constituting an amending agreement.  The Borrower is not required to execute such waiver or amending agreement, unless the Bank requests the Borrower to sign such waiver or amending agreement.  A change in the Prime Rate and USBR is not an amendment to the terms of this Agreement that requires notification to be provided to the Borrower.
		

		
			b)Changes to the Agreement, other than as described in a) above, including changes to covenants and fees payable by the Borrower, are required to be agreed to by the Bank and the Borrower in writing, by the Bank and the Borrower each signing an amending agreement.
		

		
			c)The Bank is not required to notify a Guarantor of any change in the Agreement, including any increase in the Credit Limit.
		

		
			﻿
		

		
			16. ADDED COST
		

		
			If the introduction of or any change in any present or future law, regulation, treaty, official or unofficial directive, or regulatory requirement, (whether or not having the force of law) or in the interpretation or application thereof, relates to:
		

		
			i)the imposition or exemption of taxation of payments due to the Bank or on reserves or deemed reserves in respect of the undrawn portion of any Facility or loan made available hereunder; or,
		

		

		

		 

		

			27

		

		

			 

		

 

		ii)any reserve, special deposit, regulatory or similar requirement against assets, deposits, or loans or other acquisition of funds for loans by the Bank; or,
		

		
			iii)the amount of capital required or expected to be maintained by the Bank as a result of the existence of the advances or the commitment made hereunder;
		

		
			﻿
		

		
			and the result of such occurrence is, in the sole determination of the Bank, to increase the cost of the Bank or to reduce the income received or receivable by the Bank hereunder, the Borrower shall, on demand by the Bank, pay to the Bank that amount which the Bank estimates will compensate it for such additional cost or reduction in income and the Bank's estimate shall be conclusive, absent manifest error.
		

		
			﻿
		

		
			17. EXPENSES
		

		
			The Borrower shall pay, within 5 Business Days following notification, all fees and expenses (including but not limited to all legal fees) incurred by the Bank in connection with the preparation, registration and ongoing administration of this Agreement and the Bank Security and with the enforcement of the Bank's rights and remedies under this Agreement and the Bank Security whether or not any amounts are advanced under the Agreement. These  fees and expenses shall include, but not be limited, to all outside counsel fees and expenses and all in-house legal fees and expenses, if in-house counsel are used, and all outside professional advisory fees and expenses. The Borrower shall pay interest on unpaid amounts due pursuant to this paragraph at the All-In Rate plus 2% per annum.
		

		
			﻿
		

		
			Without limiting the generality of Section 25, the Bank or the Bank’s agent, is authorized to debit any of the Borrower’s accounts with the amount of the fees and expenses owed by the Borrower hereunder, including the registration fee in connection with the Bank Security, even if that debiting creates an overdraft in any such account. If there are insufficient funds in the Borrower’s accounts to reimburse the Bank or it’s agent for payment of the fees and expenses owed by the Borrower hereunder, the amount debited to the Borrower’s accounts shall be deemed to be a Prime Based Loan under the Operating Loan, the Agriculture Operating Line or Farm Property Line of Credit.
		

		
			﻿
		

		
			The Borrower will, if requested by the Bank, sign a Pre-Authorized Payment Authorization in a format acceptable to the Bank to permit the Bank’s agent to debit the Borrower’s accounts as contemplated in this Section.
		

		
			﻿
		

		
			18. NON WAIVER
		

		
			Any failure by the Bank to object to or take action with respect to a breach of this Agreement or any Bank Security or upon the occurrence of an Event of Default shall not constitute a waiver of the Bank's right to take action at a later date on that breach. No course of conduct by the Bank will give rise to any reasonable expectation which is in any way inconsistent with the terms and conditions of this Agreement and the Bank Security or the Bank's rights thereunder.
		

		
			﻿
		

		
			19. EVIDENCE OF INDEBTEDNESS
		

		
			The Bank shall record on its records the amount of all loans made hereunder, payments made in respect thereto, and all other amounts becoming due to the Bank under this Agreement.  The Bank's records constitute, in the absence of manifest error, conclusive evidence of the indebtedness of the Borrower to the Bank pursuant to this Agreement.
		

		
			﻿
		

		
			The Borrower will sign the Bank’s standard form Letter of Credit Indemnity Agreement for all L/Cs and  L/Gs issued by the Bank.
		

		
			﻿
		

		
			With respect to chattel mortgages taken as Bank Security, this Agreement is the Promissory Note referred to in same chattel mortgage, and the indebtedness incurred hereunder is the true indebtedness secured by the chattel mortgage.
		

		
			﻿
		

		
			20. ENTIRE AGREEMENTS
		

		
			This Agreement replaces any previous letter agreements dealing specifically with terms and conditions of the credit facilities described in the Letter. Agreements relating to other credit facilities made available by the Bank continue to apply for those other credit facilities.  This Agreement, and if applicable, the Letter of Credit Indemnity Agreement, are the entire agreements relating to the Facilities described in this Agreement.
		

		
			﻿
		

		

		

		 

		

			28

		

		

			 

		

 

		21. NON-MERGER
		

		
			Notwithstanding the execution, delivery or registration of the Bank Security and notwithstanding any advances made pursuant thereto, this Agreement shall continue to be valid, binding and enforceable and shall not merge as a result thereof. Any default under this Agreement shall constitute concurrent default under the Bank Security. Any default under the Bank Security not cured with the applicable cure period thereunder shall constitute concurrent default under this Agreement. In the event of an inconsistency between the terms of this Agreement and the terms of the Bank Security, the terms of this Agreement shall prevail and the inclusion of any term in the Bank Security that is not dealt with in this Agreement shall not be an inconsistency.
		

		
			﻿
		

		
			22. ASSIGNMENT
		

		
			The Bank may assign or grant participation in all or part of this Agreement or in any loan made hereunder without notice to and without the Borrower's consent. 
		

		
			﻿
		

		
			The Borrower may not assign or transfer all or any part of its rights or obligations under this Agreement.
		

		
			﻿
		

		
			23. RELEASE OF INFORMATION
		

		
			The Borrower hereby irrevocably authorizes and directs the Borrower's accountant, (the "Accountant") to deliver all financial statements and other financial information concerning the Borrower to the Bank and agrees that the Bank and the Accountant may communicate directly with each other.
		

		
			﻿
		

		
			24.  FX CLOSE OUT
		

		
			The Borrower hereby acknowledges and agrees that in the event any of the following occur: (i) Default not cured within the applicable cure period, if any, by the Borrower under any forward foreign exchange contract ("FX Contract"); (ii) Default not cured within the applicable cure period, if any, by the Borrower in payment of monies owing by it to anyone, including the Bank; (iii) Default not cured within the applicable cure period, if any,  in the performance of any other obligation of the Borrower under any agreement to which it is subject; or (iv) the Borrower is adjudged to be or voluntarily becomes bankrupt or insolvent or admits in writing to its inability to pay its debts as they come due or has a receiver appointed over its assets, the Bank shall be entitled without advance notice to the Borrower to close out and terminate all of the outstanding FX Contracts entered into hereunder, using normal commercial practices employed by the Bank, to determine the gain or loss for each terminated FX contract.  The Bank shall then be entitled to calculate a net termination value for all of the terminated FX Contracts which shall be the net sum of all the losses and gains arising from the termination of the FX Contracts which net sum shall be the "Close Out Value" of the terminated FX Contracts.  The Borrower acknowledges that it shall be required to forthwith pay any positive Close Out Value owing to the Bank and the Bank shall be required to pay any negative Close Out Value owing to the Borrower, subject to any rights of set-off to which the Bank is entitled or subject.
		

		
			﻿
		

		
			25. SET-OFF
		

		
			In addition to and not in limitation of any rights now or hereafter granted under applicable law, the Bank may at any time and from time to time without notice to the Borrower or any other Person, any notice being expressly waived by the Borrower, set-off and compensate and apply any and all deposits, general or special, time or demand, provisional or final, matured or unmatured, in any currency, and any other indebtedness or amount payable by the Bank (irrespective of the place of payment or booking office of the obligation), to or for the credit of or for the Borrower's account, including without limitation, any amount owed by the Bank to the Borrower under any FX Contract or other treasury or derivative product, against and on account of the indebtedness and liability under this Agreement notwithstanding that any of them are contingent or unmatured or in a different currency than the indebtedness and liability under this Agreement. 
		

		
			﻿
		

		
			When applying a deposit or other obligation in a different currency than the indebtedness and liability under this Agreement to the indebtedness and liability under this Agreement, the Bank will convert the deposit or other obligation to the currency of the indebtedness and liability under this Agreement using the exchange rate determined by the Bank at the time of the conversion.
		

		
			﻿
		

		

		

		 

		

			29

		

		

			 

		

 

		26. SEVERABILITY
		

		
			In the event any one or more of the provisions of this Agreement shall for any reason, including under any applicable statute or rule of law, be held to be invalid, illegal or unenforceable, that part will be severed from this Agreement and will not affect the enforceability of the remaining provisions of this Agreement, which shall remain in full force and effect. 
		

		
			﻿
		

		
			27. MISCELLANEOUS
		

		
			i)The Borrower has received a signed copy of this Agreement;
		

		
			ii)If more than one Person, firm or corporation signs this Agreement as the Borrower, each party is jointly and severally liable hereunder, and the Bank may require payment of all amounts payable under this Agreement from any one of them, or a portion from each, but the Bank is released from any of its obligations by performing that obligation to any one of them;
		

		
			iii)Accounting terms will (to the extent not defined in this Agreement) be interpreted in accordance with accounting principles established from time to time by the Financial Accounting Standards Board (FASB) consistently applied, and all financial statements and information provided to the Bank will be prepared in accordance with those principles;
		

		
			iv)This Agreement is governed by the law of the Province or Territory where the Branch/Centre is located;
		

		
			v)Unless stated otherwise, all amounts referred to herein are in United States dollars.
		

		
			﻿
		

		
			28. DEFINITIONS
		

		
			Capitalized Terms used in this Agreement shall have the following meanings:
		

		
			﻿
		

		
			"All-In Rate" means the greater of the interest rate that the Borrower pays for Floating Rate Loans or the highest fixed rate paid for Fixed Rate Term Loans.
		

		
			﻿
		

		
			"Agreement" means the agreement between the Bank and the Borrower set out in the Letter and this Schedule "A" - Standard Terms and Conditions.
		

		
			﻿
		

		
			"Business Day" means any day (other than a Saturday or Sunday) that the Branch/Centre is open for business.
		

		
			﻿
		

		
			"Branch/Centre" means The Toronto-Dominion Bank branch or banking centre noted on the first page of the Letter, or such other branch or centre as may from time to time be designated by the Bank.
		

		
			﻿
		

		
			"Contractual Term Maturity Date" means the last day of the Contractual Term period. If the Letter does not set out a specific Contractual Term period but rather refers to a period of time up to which the Contractual Term Maturity Date can occur, the Bank and the Borrower must agree on a Contractual Term Maturity Date before first drawdown, which Contractual Term Maturity Date will be set out in the Rate and Payments Terms Notice.
		

		
			﻿
		

		
			“Cross Default Threshold” means the cross default threshold set out in the Letter. If no such cross default threshold is set out in the Letter it will be deemed to be zero.
		

		
			﻿
		

		
			"Face Amount" means, in respect of:
		

		
			(i)a B/A, the amount payable to the holder thereof on its maturity;
		

		
			(ii)A L/C or L/G, the maximum amount payable to the beneficiary specified therein or any other Person to whom payments may be required to be made pursuant to such L/C or L/G.
		

		
			﻿
		

		
			"Fixed Rate Term Loan" means any drawdown under a Facility at an interest rate which is fixed for a Rate Term at such rate as is determined by the Bank at its sole discretion.
		

		
			﻿
		

		
			"Floating Rate Loan" means any loan drawn down, converted or extended under a Facility at an interest rate which is referenced to a variable rate of interest, such as the Prime Rate.
		

		
			﻿
		

		

		

		 

		

			30

		

		

			 

		

 

		"Inventory Value" means, at any time of determination, the total value (based on the lower of cost or market) of the Borrower's inventories that are subject to the Bank Security (other than (i) those inventories supplied by trade creditors who at that time have not been fully paid and would have a right to repossess all or part of such inventories if the Borrower were then either bankrupt or in receivership, (ii) those inventories comprising work in process and (iii) those inventories that the Bank may from time to time designate in its sole discretion) minus the total amount of any claims, liens or encumbrances on those inventories having or purporting to have priority over the Bank. 
		

		
			﻿
		

		
			"Letter" means the letter from the Bank to the Borrower to which this Schedule "A" -  Standard Terms and Conditions is attached.
		

		
			﻿
		

		
			"Letter of Credit" or "L/C" means a documentary letter of credit or similar instrument in form and substance satisfactory to the Bank.
		

		
			﻿
		

		
			"Letter of Guarantee" or "L/G" means a stand-by letter of guarantee or similar instrument in form and substance satisfactory to the Bank.
		

		
			﻿
		

		
			"Maturity Date" for a Facility, means the date on which all amounts outstanding under such Facility are due and payable to the Bank.
		

		
			﻿
		

		
			"Person" includes any individual, sole proprietorship, corporation, partnership, joint venture, trust, unincorporated association, association, institution, entity, party, or government (whether national, federal, provincial, state, municipal, city, county, or otherwise and including any instrumentality, division, agency, body, or department thereof).
		

		
			﻿
		

		
			"Purchase Money Security Interest" means a security interest on an asset which is granted to a lender or to the seller of such asset in order to secure the purchase price of such asset or a loan incurred to acquire such asset, provided that the amount secured by the security interest does not exceed the cost of the asset and provided that the Borrower provides written notice to the Bank prior to the creation of the security interest, and the creditor under the security interest has, if requested by the Bank, entered into an inter-creditor agreement with the Bank, in a format acceptable to the Bank.
		

		
			﻿
		

		
			"Rate Term" means that period of time as selected by the Borrower from the options offered to it by the Bank, during which a Fixed Rate Term Loan will bear a particular interest rate.  If no Rate Term is selected, the Borrower will be deemed to have selected a Rate Term of 1 year.
		

		
			﻿
		

		
			"Rate and Payment Terms Notice" means the written notice sent by the Bank to the Borrower setting out the interest rate and payment terms for a particular drawdown.
		

		
			﻿
		

		
			"Receivable Value" means, at any time of determination, the total value of those of the Borrower's trade accounts receivable that are subject to the Bank Security other than (i) those accounts then outstanding for 90 days, (ii) those accounts owing by Persons, firms or corporations affiliated with the Borrower, (iii) those accounts that the Bank may from time to time designate in its sole discretion, (iv) those accounts subject to any claim, liens, or encumbrance having or purporting to have priority over the Bank, (v) those accounts which are subject to a claim of set-off by the obligor under such account, MINUS the total amount of all claims, liens, or encumbrances on those receivables having or purporting to have priority over the Bank. 
		

		
			﻿
		

		
			"Receivables/Inventory Summary" means a summary of the Borrower's trade account receivables and inventories, in form as the Bank may require and certified by a senior officer/representative of the Borrower.
		

		
			﻿
		

		
			"US$" or "USD Equivalent" means, on any date, the equivalent amount in United States Dollars after giving effect to a conversion of a specified amount of  Canadian Dollars to United States Dollars at the exchange rate determined by the Bank at the time of the conversion.
		

		
			﻿
		

		

		

		 

		

			31

		

		

			 

		

 

		
		

		
			SCHEDULE B
		

		
			CORPORATE ORGANIZATION CHART
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			See Attached.
		

		
			﻿
		

		 

		

			32Exhibit 4.10

 

 

 

 

 

 

 

 

 

Titan Pharmaceuticals, Inc.

 

and

 

Continental Stock Transfer & Trust Company,
as

 

Warrant Agent

 

 

Warrant Agency Agreement

 

Dated as of _________, 2020

 

 

 

 

 

 

 

     

     

    

 

WARRANT AGENCY AGREEMENT

 

WARRANT AGENCY AGREEMENT, dated as of _________,
2020 (“Agreement”), between Titan Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
and Continental Stock Transfer & Trust Company, a New York corporation (the “Warrant Agent”).

 

W I T N E S S E T H

 

WHEREAS, pursuant to an offering by the
Company (the “Offering”), the Company will issue up to ______ shares of common stock, par value $0.001 per share (the
“Common Stock”), of the Company and up to ______ Warrants to purchase ____ shares of Common Stock (the “Warrants”
and such shares of Common Stock issuable upon exercise of the Warrants, the “Warrant Shares”) at a price of $_____
per unit; and

 

WHEREAS, the Company granted an over-allotment
option to purchase up to 10% of the aggregate number of Shares and/or Warrants sold, including warrants to purchase an additional
______ shares of Common Stock (the “Over-Allotment Option”) to the Underwriters; and

 

WHEREAS, upon the terms and subject to the
conditions hereinafter set forth and pursuant to an effective registration statement on Form S-1, as amended (File No. 333-249550)
(the “Registration Statement”), and the terms and conditions of the Warrant Certificate, the Company wishes to issue
the Warrants in book entry form entitling the respective holders of the Warrants (the “Holders,” which term shall include
a Holder’s transferees, successors and assigns and “Holder” shall include, if the Warrants are held in “street
name,” a Participant (as defined below) or a designee appointed by such Participant) to, upon exercise, the Warrant Shares;
and

 

WHEREAS, the shares of Common Stock and
Warrants to be issued in connection with the Offering shall be issued separately, but will be purchased together in the Offering;
and

 

WHEREAS, the Company wishes the Warrant
Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, registration,
transfer, exchange, exercise and replacement of the Warrants and, in the Warrant Agent’s capacity as the Company’s
transfer agent, the delivery of the Warrant Shares.

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein set forth, the parties hereby agree as follows:

 

Section 1. Certain Definitions.
For purposes of this Agreement, the following terms have the meanings indicated:

 

(a) “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 the
New York Stock Exchange is authorized or required by law or other governmental action to close.

 

(b) “Close of Business”
on any given date means 5:00 p.m., New York City time, on such date; provided, however, that if such date is not
a Business Day it means 5:00 p.m., New York City time, on the next succeeding Business Day.

 

(c) “Person” means an individual,
corporation, association, partnership, limited liability company, joint venture, trust, unincorporated organization, government
or political subdivision thereof or governmental agency or other entity.

 

(d) “Warrant Certificate”
means a certificate issued to a Holder, representing such number of Warrant Shares as is indicated therein, provided that any reference
to the delivery of a Warrant Certificate in this Agreement shall include delivery of a Definitive Certificate or a Global Warrant
(each as defined below).

 

    	 	2	 

     

    

 

All other capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to such terms in the Warrant Certificate.

 

Section 2. Appointment of Warrant Agent.
The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with the terms and conditions hereof,
and the Warrant Agent hereby accepts such appointment. The Company may from time to time appoint a Co-Warrant Agent as it may,
in its sole discretion, deem necessary or desirable. The Warrant Agent shall have no duty to supervise, and will in no event be
liable for the acts or omissions of, any co-Warrant Agent.

 

Section 3. Global Warrants.

 

(a) The Warrants shall be issuable in book
entry form (the “Global Warrants”). All of the Warrants shall initially be represented by one or more Global
Warrants deposited with the Warrant Agent and registered in the name of Cede & Co., a nominee of The Depository Trust Company
(the “Depositary”), or as otherwise directed by the Depositary. Ownership of beneficial interests in the Warrants
shall be shown on, and the transfer of such ownership shall be effected through, records maintained by (i) the Depositary or its
nominee for each Global Warrant or (ii) institutions that have accounts with the Depositary (such institution, with respect to
a Warrant in its account, a “Participant”).

 

(b) If the Depositary subsequently ceases
to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding other
arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary to have
the Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depositary to deliver to
the Warrant Agent for cancellation each Global Warrant, and the Company shall instruct the Warrant Agent to deliver to each Holder
a Warrant Certificate.

 

(c) A Holder has the right to elect at any
time or from time to time a Warrant Exchange (as defined below) pursuant to a Warrant Certificate Request Notice (as defined below).
Upon written notice by a Holder to the Warrant Agent for the exchange of some or all of such Holder’s Global Warrants for
a Warrant Certificate (such separate certificate, a “Definitive Certificate”) evidencing the same number of
Warrants, which request shall be in the form attached hereto as Annex A (a “Warrant Certificate Request Notice”
and the date of delivery of such Warrant Certificate Request Notice by the Holder, the “Warrant Certificate Request Notice
Date” and the deemed surrender upon delivery by the Holder of a number of Global Warrants for the same number of Warrants
evidenced by a Warrant Certificate, a “Warrant Exchange”), the Warrant Agent shall promptly effect the Warrant
Exchange and shall promptly issue and deliver to the Holder a Definitive Certificate for such number of Warrants in the name set
forth in the Warrant Certificate Request Notice. Such Definitive Certificate shall be dated the original issue date of the Warrants,
shall be manually executed by an authorized signatory of the Company and shall be in the form attached hereto as Exhibit 1.
In connection with a Warrant Exchange, the Company agrees to deliver, or to direct the Warrant Agent to deliver, the Definitive
Certificate to the Holder within three (3) Business Days of the Warrant Certificate Request Notice pursuant to the delivery instructions
in the Warrant Certificate Request Notice (“Warrant Certificate Delivery Date”). The Company covenants and agrees
that, upon the date of delivery of the Warrant Certificate Request Notice, the Holder shall be deemed to be the holder of the Definitive
Certificate and, notwithstanding anything to the contrary set forth herein, the Definitive Certificate shall be deemed for all
purposes to contain all of the terms and conditions of the Warrants evidenced by such Warrant Certificate and the terms of this
Agreement, other than Section 3(c) and 3(d), which shall not apply to the Warrants evidenced by a Definitive Certificate. Notwithstanding
anything herein to the contrary, the Company shall act as warrant agent with respect to any Definitive Certificate requested and
issued pursuant to this section. Notwithstanding anything to the contrary contained in this Agreement, in the event of inconsistency
between any provision in this Agreement and any provision in a Definitive Certificate, as it may from time to time be amended,
the terms of such Definitive Certificate shall control.

 

    	 	3	 

     

    

 

(d) A Holder of a Definitive Certificate (pursuant
to a Warrant Exchange or otherwise) has the right to elect at any time or from time to time a Global Warrants Exchange (as defined
below) pursuant to a Global Warrants Request Notice (as defined below). Upon written notice by a Holder to the Company for the
exchange of some or all of such Holder’s Warrants evidenced by a Definitive Certificate for a beneficial interest in Global
Warrants held in book-entry form through the Depositary evidencing the same number of Warrants, which request shall be in the form
attached hereto as Annex B (a “Global Warrants Request Notice” and the date of delivery of such Global Warrants
Request Notice by the Holder, the “Global Warrants Request Notice Date” and the surrender upon delivery by the
Holder of the Warrants evidenced by Definitive Certificates for the same number of Warrants evidenced by a beneficial interest
in Global Warrants held in book-entry form through the Depositary, a “Global Warrants Exchange”), the Company
shall promptly effect the Global Warrants Exchange and shall promptly direct the Warrant Agent to issue and deliver to the Holder
Global Warrants for such number of Warrants in the Global Warrants Request Notice, which beneficial interest in such Global Warrants
shall be delivered by the Depositary’s Deposit or Withdrawal at Custodian system to the Holder pursuant to the instructions
in the Global Warrants Request Notice. In connection with a Global Warrants Exchange, the Company shall direct the Warrant Agent
to deliver the beneficial interest in such Global Warrants to the Holder within ten (10) Business Days of the Global Warrants Request
Notice pursuant to the delivery instructions in the Global Warrant Request Notice (“Global Warrants Delivery Date”).
The Company covenants and agrees that, upon the date of delivery of the Global Warrants Request Notice, the Holder shall be deemed
to be the beneficial holder of such Global Warrants.

 

Section 4. Form of Warrant. The
Warrants, together with the form of election to purchase Common Stock (the “Exercise Notice”) and the form of
assignment to be printed on the reverse thereof, whether a Warrant Certificate or a Global Warrant, shall be substantially in the
form of Exhibit 1 hereto.

 

Section 5. Countersignature and Registration.
The Warrant Certificates shall be executed on behalf of the Company by its Chief Executive Officer or Chief Financial Officer,
either manually or by facsimile signature, and have affixed thereto the Company’s seal or a facsimile thereof which shall
be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The Warrant Certificates
shall be countersigned by the Warrant Agent either manually or by facsimile signature and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who shall have signed a Warrant shall cease to be such officer of the Company
before countersignature by the Warrant Agent and issuance and delivery by the Company, such Warrant, nevertheless, may be countersigned
by the Warrant Agent, issued and delivered with the same force and effect as though the person who signed such Warrant had not
ceased to be such officer of the Company; and any Warrant may be signed on behalf of the Company by any person who, at the actual
date of the execution of such Warrant, shall be a proper officer of the Company to sign such Warrant, although at the date of the
execution of this Warrant Agreement any such person was not such an officer.

 

The Warrant Agent will keep or cause to
be kept, at one of its offices, or at the office of one of its agents, books for registration and transfer of the Warrant Certificates
issued hereunder. Such books shall show the names and addresses of the respective Holders of the Warrant Certificates, the number
of warrants evidenced on the face of each of such Warrant Certificate and the date of each of such Warrant Certificate. The Warrant
Agent will create a special account for the issuance of Warrant Certificates.

 

Section 6. Transfer, Split Up, Combination
and Exchange of Warrant Certificates; Mutilated, Destroyed, Lost or Stolen Warrant Certificates. Subject to the provisions
of the Warrant and the last sentence of this first paragraph of Section 6 and subject to applicable law, rules or regulations,
or any “stop transfer” instructions the Company may give to the Warrant Agent, at any time after the closing date of
the Offering, and at or prior to the Close of Business on the Termination Date, any Warrant Certificate or Warrant Certificates
or Global Warrant or Global Warrants may be transferred, split up, combined or exchanged for another Warrant Certificate or Warrant
Certificates or Global Warrant or Global Warrants, entitling the Holder to purchase a like number of shares of Common Stock as
the Warrant Certificate or Warrant Certificates or Global Warrant or Global Warrants surrendered then entitled such Holder to purchase.
Any Holder desiring to transfer, split up, combine or exchange any Warrant Certificate or Global Warrant shall make such request
in writing delivered to the Warrant Agent, and shall surrender the Warrant Certificate or Warrant Certificates to be transferred,
split up, combined or exchanged at the principal office of the Warrant Agent, provided that no such surrender is applicable to
the Holder of a Global Warrant. Any requested transfer of Warrants, whether a Global Warrant or a Warrant Certificate, shall be
accompanied by reasonable evidence of authority of the party making such request that may be required by the Warrant Agent. Thereupon
the Warrant Agent shall, subject to the last sentence of this first paragraph of Section 6, countersign and deliver to the Person
entitled thereto any Warrant Certificate or Global Warrant, as the case may be, as so requested. The Company may require payment
from the Holder of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Warrants. The Company shall compensate the Warrant Agent per the fee schedule mutually agreed
upon by the parties hereto and provided separately on the date hereof.

 

    	 	4	 

     

    

 

Upon receipt by the Warrant Agent of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of a Warrant Certificate, which evidence shall include
an affidavit of loss, or in the case of mutilated certificates, the certificate or portion thereof remaining, and, in case of loss,
theft or destruction, of indemnity in customary form and amount, and satisfaction of any other reasonable requirements established
by Section 8-405 of the Uniform Commercial Code as in effect in the State of Delaware, and reimbursement to the Company and the
Warrant Agent of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant
Certificate if mutilated, the Company will make and deliver a new Warrant Certificate of like tenor to the Warrant Agent for delivery
to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated.

 

Section 7. Exercise of Warrants; Exercise
Price; Termination Date.

 

(a) The Warrants shall be exercisable commencing
on the Initial Exercise Date. The Warrants shall cease to be exercisable and shall terminate and become void, and all rights thereunder
and under this Agreement shall cease, at or prior to the Close of Business on the Termination Date. Subject to the foregoing and
to Section 7(b) below, the Holder of a Warrant may exercise the Warrant in whole or in part upon providing the items required by
Section 7(c) below to the Warrant Agent at the principal office of the Warrant Agent or to the office of one of its agents as may
be designated by the Warrant Agent from time to time. In the case of the Holder of a Global Warrant, the Holder shall deliver the
executed Exercise Notice and payment of the Exercise Price pursuant to Section 2(a) of the Warrant. Notwithstanding any other provision
in this Agreement, a holder whose interest in a Global Warrant is a beneficial interest in a Global Warrant held in book-entry
form through the Depositary (or another established clearing corporation performing similar functions), shall effect exercises
by delivering to the Depositary (or such other clearing corporation, as applicable) the appropriate instruction form for exercise,
complying with the procedures to effect exercise that are required by the Depositary (or such other clearing corporation, as applicable).
The Company acknowledges that the bank accounts maintained by the Warrant Agent in connection with the services provided under
this Agreement will be in its name and that the Warrant Agent may receive investment earnings in connection with the investment
at Warrant Agent risk and for its benefit of funds held in those accounts from time to time. Neither the Company nor the Holders
will receive interest on any deposits or Exercise Price.

 

(b) Upon receipt of an Exercise Notice for
a cashless exercise pursuant to Section 2(c) of the Warrant (each, a “Cashless Exercise”), the Company will
promptly calculate and transmit to the Warrant Agent the number of Warrant Shares issuable in connection with such Cashless Exercise
and deliver a copy of the Exercise Notice to the Warrant Agent, which shall issue such number of Warrant Shares in connection with
such Cashless Exercise.

 

(c) Upon the Warrant Agent’s receipt,
at or prior to the Close of Business on the Termination Date set forth in a Warrant, of the executed Exercise Notice, accompanied
by payment of the Exercise Price pursuant to Section 2(a) of the Warrant, the shares to be purchased (other than in the case of
a Cashless Exercise), an amount equal to any applicable tax, governmental charge or expense reimbursement referred to in Section
6 in cash, or by certified check or bank draft payable to the order of the Company and, in the case of an exercise of a Warrant
in the form of a Warrant Certificate for all of the Warrant Shares represented thereby, the Warrant Certificate, the Warrant Agent
shall cause the Warrant Shares underlying such Warrant to be delivered to or upon the order of the Holder of such Warrant, registered
in such name or names as may be designated by such Holder, no later than the Warrant Share Delivery Date. If the Company is then
a participant in the DWAC system of the Depositary and either (A) there is an effective registration statement permitting the issuance
of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) the Warrant is being exercised via Cashless Exercise,
then the certificates for Warrant Shares shall be transmitted by the Warrant Agent to the Holder by crediting the account of the
Holder’s broker with the Depositary through its DWAC system. Notwithstanding anything else to the contrary in this Agreement,
except in the case of a Cashless Exercise, if any Holder fails to duly deliver payment to the Warrant Agent of an amount equal
to the aggregate Exercise Price of the Warrant Shares to be purchased upon exercise of such Holder’s Warrant as set forth
in Section 7(a) hereof, the Warrant Agent will not obligated to deliver certificates representing any such Warrant Shares (via
DWAC or otherwise) until following receipt of such payment, and the applicable Warrant Share Delivery Date shall be deemed extended
by one day for each day (or part thereof) until such payment is delivered to the Warrant Agent.

 

    	 	5	 

     

    

 

(d) The Warrant Agent shall deposit all funds
received by it in payment of the Exercise Price for all Warrants in the account of the Company maintained with the Warrant Agent
for such purpose (or to such other account as directed by the Company in writing) and shall advise the Company via telephone at
the end of each day on which funds for the exercise of any Warrant are received of the amount so deposited to its account. The
Warrant Agent shall promptly confirm such telephonic advice to the Company in writing.

 

(e) In case the Holder of any Warrant Certificate
exercises fewer than all Warrants evidenced thereby and surrenders such Warrant Certificate in connection with such partial exercise,
a new Warrant Certificate evidencing the number of Warrant Shares equivalent to the number of Warrant Shares remaining unexercised
may be issued by the Warrant Agent to the Holder of such Warrant Certificate or to his duly authorized assigns in accordance with
Section 2(d)(ii) of the Warrant, subject to the provisions of Section 6 hereof.

 

Section 8. Cancellation and Destruction
of Warrant Certificates. All Warrant Certificates surrendered for the purpose of exercise, transfer, split up, combination
or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Warrant Agent for cancellation or
in canceled form, or, if surrendered to the Warrant Agent, shall be canceled by it, and no Warrant Certificates shall be issued
in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Warrant
Agent for cancellation and retirement, and the Warrant Agent shall so cancel and retire, any other Warrant Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The Warrant Agent shall deliver all canceled Warrant Certificates
to the Company, or shall, at the written request of the Company, destroy such canceled Warrant Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company, subject to any applicable law, rule or regulation requiring the Warrant
Agent to retain such canceled certificates.

 

Section 9. Certain Representations;
Reservation and Availability of Shares of Common Stock or Cash.

 

(a) This Agreement has been duly authorized,
executed and delivered by the Company and, assuming due authorization, execution and delivery hereof by the Warrant Agent, constitutes
a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, and the Warrants
have been duly authorized, executed and issued by the Company and, assuming due authentication thereof by the Warrant Agent pursuant
hereto and payment therefor by the Holders as provided in the Registration Statement, constitute valid and legally binding obligations
of the Company enforceable against the Company in accordance with their terms and entitled to the benefits thereof; in each case
except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to
or affecting creditors’ rights generally or by general equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

(b) As of the date hereof and prior to the
Offering, the authorized capital stock of the Company consists of (i) 225,000,000 shares of authorized Common Stock, of which [
] shares of Common Stock are issued and outstanding, and (ii) 5,000,000 shares of authorized preferred stock of which 0 are issued
and outstanding. As of the date hereof there are [ ] shares of Common Stock reserved for issuance upon exercise of the Warrants
inclusive of any Warrants the Underwriter may acquire upon exercise of its over-allotment option described in the Registration
Statement. Except as disclosed in the Registration Statement, there are no other outstanding obligations, warrants, options or
other rights to subscribe for or purchase from the Company any class of capital stock of the Company.

 

(c) The Company covenants and agrees that
it will cause to be reserved and kept available out of its authorized and unissued shares of Common Stock or its authorized and
issued shares of Common Stock held in its treasury, free from preemptive rights, the number of shares of Common Stock that will
be sufficient to permit the exercise in full of all outstanding Warrants.

 

    	 	6	 

     

    

 

(d) The Warrant Agent will create a special
account for the issuance of Common Stock upon the exercise of Warrants.

 

(e) The Company further covenants and agrees
that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect
of the original issuance or delivery of the Warrant Certificates or certificates evidencing Common Stock upon exercise of the Warrants.
The Company shall not, however, be required to pay any tax or governmental charge which may be payable in respect of any transfer
involved in the transfer or delivery of Warrant Certificates or the issuance or delivery of certificates for Common Stock in a
name other than that of the Holder of the Warrant Certificate evidencing Warrants surrendered for exercise or to issue or deliver
any certificate for shares of Common Stock upon the exercise of any Warrants until any such tax or governmental charge shall have
been paid (any such tax or governmental charge being payable by the Holder of such Warrant Certificate at the time of surrender)
or until it has been established to the Company’s reasonable satisfaction that no such tax or governmental charge is due.

 

Section 10. Common Stock Record Date.
Each Holder shall be deemed to have become the holder of record for the Warrant Shares pursuant to Section 2(d)(i) of the Warrants.

 

Section 11. Adjustment of Exercise Price,
Number of Shares of Common Stock or Number of the Company Warrants. The Exercise Price, the number of shares covered by each
Warrant and the number of Warrants outstanding are subject to adjustment from time to time as provided in Section 3 of the Warrant.
In the event that at any time, as a result of an adjustment made pursuant to Section 3 of the Warrant, the Holder of any Warrant
thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock,
thereafter the number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares contained in
Section 3 of the Warrant, and the provisions of Sections 7, 11, 12 and 13 of this Agreement with respect to the shares of Common
Stock shall apply on like terms to any such other shares. All Warrants originally issued by the Company subsequent to any adjustment
made to the Exercise Price pursuant to the Warrant shall evidence the right to purchase, at the adjusted Exercise Price, the number
of shares of Common Stock purchasable from time to time hereunder upon exercise of the Warrants, all subject to further adjustment
as provided herein.

 

Section 12. Certification of Adjusted
Exercise Price or Number of Shares of Common Stock. Whenever the Exercise Price or the number of shares of Common Stock issuable
upon the exercise of each Warrant is adjusted as provided in Section 11 or 13, the Company shall (a) promptly prepare a certificate
setting forth the Exercise Price of each Warrant as so adjusted, and a brief statement of the facts accounting for such adjustment,
(b) promptly file with the Warrant Agent and with each transfer agent for the Common Stock a copy of such certificate and (c) instruct
the Warrant Agent to send a brief summary thereof to each Holder of a Warrant.

 

Section 13. Fractional Shares of Common
Stock.

 

(a) The Company shall not issue fractions
of Warrants or distribute a Global Warrant or Warrant Certificates that evidence fractional Warrants. Whenever any fractional Warrant
would otherwise be required to be issued or distributed, the actual issuance or distribution shall reflect a rounding of such fraction
down to the nearest whole Warrant.

 

(b) The Company shall not issue fractions
of shares of Common Stock upon exercise of Warrants or distribute stock certificates that evidence fractional shares of Common
Stock. Whenever any fraction of a share of Common Stock would otherwise be required to be issued or distributed, the actual issuance
or distribution in respect thereof shall be made in accordance with Section 2(d)(v) of the Warrant.

 

    	 	7	 

     

    

 

Section 14. Conditions of the Warrant
Agent’s Obligations. The Warrant Agent accepts its obligations herein set forth upon the terms and conditions hereof,
including the following to all of which the Company agrees and to all of which the rights hereunder of the Holders from time to
time of the Warrant shall be subject:

 

(a) Compensation and Indemnification. The
Company agrees promptly to pay the Warrant Agent the compensation detailed on Exhibit 2 hereto for all services rendered by the
Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses (including reasonable counsel fees) incurred
without gross negligence, bad faith or willful misconduct by the Warrant Agent in connection with the services rendered hereunder
by the Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and to hold it harmless against, any loss, liability
or expense incurred without gross negligence, bad faith or willful misconduct on the part of the Warrant Agent, arising out of
or in connection with its acting as Warrant Agent hereunder, including the reasonable costs and expenses of defending against any
claim of such liability.

 

(b) Agent for the Company. In acting under
this Warrant Agreement and in connection with the Warrant Certificates, the Warrant Agent is acting solely as agent of the Company
and does not assume any obligations or relationship of agency or trust for or with any of the Holders of Warrant Certificates or
beneficial owners of Warrants.

 

(c) Counsel. The Warrant Agent may consult
with counsel satisfactory to it, which may include counsel for the Company, and the written advice of such counsel shall be full
and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and
in accordance with the advice of such counsel.

 

(d) Documents. The Warrant Agent shall be
protected and shall incur no liability for or in respect of any action taken or omitted by it in reliance upon any Warrant Certificate,
notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably believed by it to be genuine
and to have been presented or signed by the proper parties.

 

(e) Certain Transactions. The Warrant Agent,
and its officers, directors and employees, may become the owner of, or acquire any interest in, Warrants, with the same rights
that it or they would have if it were not the Warrant Agent hereunder, and, to the extent permitted by applicable law, it or they
may engage or be interested in any financial or other transaction with the Company and may act on, or as depositary, trustee or
agent for, any committee or body of Holders of Warrant Securities or other obligations of the Company as freely as if it were not
the Warrant Agent hereunder. Nothing in this Warrant Agreement shall be deemed to prevent the Warrant Agent from acting as trustee
under any indenture to which the Company is a party.

 

(f) No Liability for Interest. Unless otherwise
agreed with the Company, the Warrant Agent shall have no liability for interest on any monies at any time received by it pursuant
to any of the provisions of this Agreement or of the Warrant Certificates.

 

(g) No Liability for Invalidity. The Warrant
Agent shall have no liability with respect to any invalidity of this Agreement or any of the Warrant Certificates (except as to
the Warrant Agent’s countersignature thereon).

 

(h) No Responsibility for Representations.
The Warrant Agent shall not be responsible for any of the recitals or representations herein or in the Warrant Certificates (except
as to the Warrant Agent’s countersignature thereon), all of which are made solely by the Company.

 

(i) No Implied Obligations. The Warrant Agent
shall be obligated to perform only such duties as are herein and in the Warrants specifically set forth and no implied duties or
obligations shall be read into this Agreement or the Warrants against the Warrant Agent. The Warrant Agent shall not be under any
obligation to take any action hereunder which may tend to involve it in any expense or liability, the payment of which within a
reasonable time is not, in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under any duty
or responsibility for the use by the Company of any of the Warrants authenticated by the Warrant Agent and delivered by it to the
Company pursuant to this Agreement or for the application by the Company of the proceeds of the Warrants. The Warrant Agent shall
have no duty or responsibility in case of any default by the Company in the performance of its covenants or agreements contained
herein or in the Warrants or in the case of the receipt of any written demand from a Holder of a Warrant Certificate with respect
to such default, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt
to initiate any proceedings at law.

 

    	 	8	 

     

    

 

Section 15. Purchase or Consolidation
or Change of Name of Warrant Agent. Any corporation into which the Warrant Agent or any successor Warrant Agent may be merged
or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Warrant Agent
or any successor Warrant Agent shall be party, or any corporation succeeding to the corporate trust business of the Warrant Agent
or any successor Warrant Agent, shall be the successor to the Warrant Agent under this Agreement without the execution or filing
of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for
appointment as a successor Warrant Agent under the provisions of Section 17. In case at the time such successor Warrant Agent shall
succeed to the agency created by this Agreement any of the Warrants shall have been countersigned but not delivered, any such successor
Warrant Agent may adopt the countersignature of the predecessor Warrant Agent and deliver such Warrants so countersigned; and in
case at that time any of the Warrants shall not have been countersigned, any successor Warrant Agent may countersign such Warrants
either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in all such cases such Warrants
shall have the full force provided in the Warrants and in this Agreement.

 

In case at any time the name of the Warrant
Agent shall be changed and at such time any of the Warrants shall have been countersigned but not delivered, the Warrant Agent
may adopt the countersignature under its prior name and deliver Warrants so countersigned; and in case at that time any of the
Warrants shall not have been countersigned, the Warrant Agent may countersign such Warrants either in its prior name or in its
changed name; and in all such cases such Warrants shall have the full force provided in the Warrants and in this Agreement.

 

Section 16. Duties of Warrant Agent.
The Warrant Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, all
of which the Company, by its acceptance hereof, shall be bound:

 

(a) The Warrant Agent may consult with legal
counsel reasonably acceptable to the Company (who may be legal counsel for the Company), and the opinion of such counsel shall
be full and complete authorization and protection to the Warrant Agent as to any action taken or omitted by it in good faith and
in accordance with such opinion.

 

(b) Whenever in the performance of its duties
under this Agreement the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by
the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chief Executive
Officer or Chief Financial Officer of the Company; and such certificate shall be full authentication to the Warrant Agent for any
action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate.

 

(c) Subject to the limitation set forth in
Section 14, the Warrant Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct, or
for a breach by it of this Agreement.

 

(d) The Warrant Agent shall not be liable
for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Warrants (except its countersignature
thereof) by the Company or be required to verify the same, but all such statements and recitals are and shall be deemed to have
been made by the Company only.

 

(e) The Warrant Agent shall not be under any
responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof
by the Warrant Agent) or in respect of the validity or execution of any Warrant (except its countersignature thereof); nor shall
it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Warrant; nor
shall it be responsible for the adjustment of the Exercise Price or the making of any change in the number of shares of Common
Stock required under the provisions of Section 11 or 13 or responsible for the manner, method or amount of any such change or the
ascertaining of the existence of facts that would require any such adjustment or change (except with respect to the exercise of
Warrants evidenced by Warrant Certificates after actual notice of any adjustment of the Exercise Price); nor shall it by any act
hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock
to be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock will, when issued, be duly authorized,
validly issued, fully paid and nonassessable.

 

    	 	9	 

     

    

 

(f) Each party hereto agrees that it will
perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other
acts, instruments and assurances as may reasonably be required by the other party hereto for the carrying out or performing by
any party of the provisions of this Agreement.

 

(g) The Warrant Agent is hereby authorized
to accept instructions with respect to the performance of its duties hereunder from the Chief Executive Officer or Chief Financial
Officer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not
be liable and shall be indemnified and held harmless for any action taken or suffered to be taken by it in good faith in accordance
with instructions of any such officer, provided Warrant Agent carries out such instructions without gross negligence, bad faith
or willful misconduct.

 

(h) The Warrant Agent and any shareholder,
director, officer or employee of the Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company
or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Warrant Agent under this Agreement. Nothing herein shall preclude
the Warrant Agent from acting in any other capacity for the Company or for any other legal entity.

 

(i) The Warrant Agent may execute and exercise
any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorney or agents,
and the Warrant Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorney or
agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided reasonable care was
exercised in the selection and continued employment thereof.

 

Section 17. Change of Warrant Agent.
The Warrant Agent may resign and be discharged from its duties under this Agreement upon 30 days’ notice in writing sent
to the Company and to each transfer agent of the Common Stock, and to the Holders of the Warrant Certificates. The Company may
remove the Warrant Agent or any successor Warrant Agent upon 30 days’ notice in writing, sent to the Warrant Agent or successor
Warrant Agent, as the case may be, and to each transfer agent of the Common Stock, and to the Holders of the Warrant Certificates.
If the Warrant Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor
to the Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after such removal or after
it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Warrant Agent or by the Holder
of a Warrant Certificate (who shall, with such notice, submit his Warrant Certificate for inspection by the Company), then the
Holder of any Warrant Certificate may apply to any court of competent jurisdiction for the appointment of a new Warrant Agent.
Any successor Warrant Agent, whether appointed by the Company or by such a court, shall be a corporation organized and doing business
under the laws of the United States or of a state thereof, in good standing, which is authorized under such laws to exercise corporate
trust powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment
as Warrant Agent a combined capital and surplus of at least $50,000,000. After appointment, the successor Warrant Agent shall be
vested with the same powers, rights, duties and responsibilities as if it had been originally named as Warrant Agent without further
act or deed; but the predecessor Warrant Agent shall deliver and transfer to the successor Warrant Agent any property at the time
held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Warrant
Agent and each transfer agent of the Common Stock, and mail a notice thereof in writing to the Holders of the Warrant Certificates.
However, failure to give any notice provided for in this Section 17, or any defect therein, shall not affect the legality or validity
of the resignation or removal of the Warrant Agent or the appointment of the successor Warrant Agent, as the case may be.

 

    	 	10	 

     

    

 

Section 18. Issuance of New Warrant
Certificates. Notwithstanding any of the provisions of this Agreement or of the Warrants to the contrary, the Company may,
at its option, issue new Warrant Certificates evidencing Warrants in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the Exercise Price per share and the number or kind or class of shares of stock or other securities
or property purchasable under the several Warrant Certificates made in accordance with the provisions of this Agreement.

 

Section 19. Notices. Notices or
demands authorized by this Agreement to be given or made (i) by the Warrant Agent or by the Holder of any Warrant Certificate to
or on the Company, (ii) subject to the provisions of Section 17, by the Company or by the Holder of any Warrant Certificate to
or on the Warrant Agent or (iii) by the Company or the Warrant Agent to the Holder of any Warrant Certificate, shall be deemed
given (a) on the date delivered, if delivered personally, (b) on the first Business Day following the deposit thereof with Federal
Express or another recognized overnight courier, if sent by Federal Express or another recognized overnight courier, (c) on the
fourth Business Day following the mailing thereof with postage prepaid, if mailed by registered or certified mail (return receipt
requested), and (d) the time of transmission, if such notice or communication is delivered via facsimile or email attachment at
or prior to 5:30 p.m. (New York City time) on a Business Day and (e) the next Business Day after the date of transmission, if such
notice or communication is delivered via facsimile or email attachment on a day that is not a Business Day or later than 5:30 p.m.
(New York City time) on any Business Day, in each case to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):

 

		(a)	If to the Company, to:

 

Titan Pharmaceuticals, Inc.

400 Oyster Point Blvd., Suite 505

South San Francisco, CA 94080

Attention: Sunil Bhonsle

 

		(b)	If to the Warrant Agent, to:

 

Continental Stock Transfer & Trust Company

1 State Street 30th Floor,

New York, NY 10004-1561

Attention: Compliance Department

 

For any notice delivered by email to be deemed given or made,
such notice must be followed by notice sent by overnight courier service to be delivered on the next business day following such
email, unless the recipient of such email has acknowledged via return email receipt of such email.

 

(c) If to the Holder of any Warrant Certificate,
to the address of such Holder as shown on the registry books of the Company. Any notice required to be delivered by the Company
to the Holder of any Warrant may be given by the Warrant Agent on behalf of the Company. Notwithstanding any other provision of
this Agreement, where this Agreement provides for notice of any event to a Holder of any Warrant Certificate, for a Global Warrant,
such notice shall be sufficiently given if given to the Depositary (or its designee) pursuant to the procedures of the Depositary
or its designee.

 

Section 20. Supplements and Amendments.

 

(a) The Company and the Warrant Agent may
from time to time supplement or amend this Agreement without the approval of any Holders of Warrant Certificates in order to cure
any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions
herein, or to make any other provisions with regard to matters or questions arising hereunder which the Company and the Warrant
Agent may deem necessary or desirable and which shall not adversely affect the interests of the Holders of the Warrants Certificates
in any material respect.

 

    	 	11	 

     

    

 

(b) In addition to the foregoing, with the
consent of Holders of Warrants entitled, upon exercise thereof, to receive not less than a majority of the shares of Common Stock
issuable thereunder, the Company and the Warrant Agent may modify this Agreement for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Warrant Agreement or modifying in any manner the rights of
the Holders of the Warrant Certificates; provided, however, that no modification of the terms (including but not
limited to the adjustments described in Section 11) upon which the Warrants are exercisable or reducing the percentage required
for consent to modification of this Agreement may be made without the consent of the Holder of each outstanding warrant certificate
affected thereby. As a condition precedent to the Warrant Agent’s execution of any amendment, the Company shall deliver to
the Warrant Agent a certificate from a duly authorized officer of the Company that states that the proposed amendment complies
with the terms of this Section 20.

 

Section 21. Successors. All covenants
and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit
of their respective successors and assigns hereunder.

 

Section 22. Benefits of this Agreement.
Nothing in this Agreement shall be construed to give any Person other than the Company, the Holders of Warrant Certificates and
the Warrant Agent any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Warrant Agent and the Holders of the Warrant Certificates.

 

Section 23. Governing Law. This
Agreement and each Warrant issued hereunder shall be governed by, and construed in accordance with, the laws of the State of New
York without giving effect to the conflicts of law principles thereof.

 

Section 24. Counterparts. This Agreement
may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute but one and the same instrument.

 

Section 25. Captions. The captions
of the sections of this Agreement have been inserted for convenience only and shall not control or affect the meaning or construction
of any of the provisions hereof.

 

Section 26. Information. The Company
agrees to promptly provide to the Holders of the Warrants any information it provides to all holders of the Common Stock, except
to the extent any such information is publicly available on the EDGAR system (or any successor thereof) of the Securities and Exchange
Commission.

 

Section 27. Force Majeure. Notwithstanding
anything to the contrary contained herein, Warrant Agent shall not be liable for any delays or failures in performance resulting
from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns
or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties
with information storage or retrieval systems, labor difficulties, war, or civil unrest, it being understood that the Warrant Agent
shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as
soon as practicable under the circumstances.

 

    	 	12	 

     

    

 

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

 

	 	TITAN PHARMACEUTICALS, INC.
	 	 	 
	 	By:	 
	 	Name:  	 
	 	Title:  	 
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	 
	 	By:	 
	 	Name:  	 
	 	Title:  	  

 

    	 	13	 

     

    

 

Annex A: Form of Warrant Certificate
Request Notice

 

WARRANT CERTIFICATE REQUEST NOTICE

 

To: Continental Stock Transfer & Trust Company as Warrant
Agent for Titan Pharmaceuticals, Inc. (the “Company”)

 

The undersigned Holder of Common Stock Purchase Warrants (“Warrants”)
in the form of Global Warrants issued by the Company hereby elects to receive a Warrant Certificate evidencing the Warrants held
by the Holder as specified below:

 

1. Name of Holder of Warrants in form of Global Warrants: _____________________________

 

2. Name of Holder in Warrant Certificate (if different from
name of Holder of Warrants in form of Global Warrants): ________________________________

 

3. Number of Warrants in name of Holder in form of Global Warrants:
___________________

 

4. Number of Warrants for which Warrant Certificate shall be
issued: __________________

 

5. Number of Warrants in name of Holder in form of Global Warrants
after issuance of Warrant Certificate, if any: ___________

 

6. Warrant Certificate shall be delivered to the following address:

 

_________________________________

 

_________________________________

 

_________________________________

 

_________________________________

 

The undersigned hereby acknowledges and agrees that, in connection
with this Warrant Exchange and the issuance of the Warrant Certificate, the Holder is deemed to have surrendered the number of
Warrants in form of Global Warrants in the name of the Holder equal to the number of Warrants evidenced by the Warrant Certificate.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ____________________________________________________

 

Signature of Authorized Signatory of Investing Entity:
______________________________

 

Name of Authorized Signatory: ________________________________________________

 

Title of Authorized Signatory: _________________________________________________

 

Date: _______________________________________________________________

 

    	 	14	 

     

    

 

Annex B: Form of Global Warrant Request
Notice

 

GLOBAL WARRANT REQUEST NOTICE

 

To: Continental Stock Transfer & Trust Company as Warrant
Agent for Titan Pharmaceuticals, Inc. (the “Company”)

 

The undersigned Holder of Common Stock Purchase Warrants (“Warrants”)
in the form of Warrants Certificates issued by the Company hereby elects to receive a Global Warrant evidencing the Warrants held
by the Holder as specified below:

 

1. Name of Holder of Warrants in form of Warrant Certificates:
_____________________________

 

2. Name of Holder in Global Warrant (if different from name
of Holder of Warrants in form of Warrant Certificates): ________________________________

 

3. Number of Warrants in name of Holder in form of Warrant Certificates:
___________________

 

4. Number of Warrants for which Global Warrant shall be issued:
__________________

 

5. Number of Warrants in name of Holder in form of Warrant Certificates
after issuance of Global Warrant, if any: ___________

 

6. Global Warrant shall be delivered to the following address:

 

_________________________________

 

_________________________________

 

_________________________________

 

_________________________________ 

 

The undersigned hereby acknowledges and agrees that, in connection
with this Global Warrant Exchange and the issuance of the Global Warrant, the Holder is deemed to have surrendered the number of
Warrants in form of Warrant Certificates in the name of the Holder equal to the number of Warrants evidenced by the Global Warrant.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ____________________________________________________

 

Signature of Authorized Signatory of Investing Entity: ______________________________

 

Name of Authorized Signatory: ________________________________________________

 

Title of Authorized Signatory: _________________________________________________

 

Date: _______________________________________________________________

 

 

    	 	15	 

     

    

 

Exhibit 1: Form of Warrant

 

 

 

COMMON STOCK PURCHASE WARRANT

 

Titan
Pharmaceuticals, Inc.

 

	Warrant Shares: _______	Issue Date: __________, 2020

 

 

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms
and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date that the
Company’s stockholders approve either an increase in the number of the Company’s authorized shares of Common Stock
or a reverse stock split, in either case in an amount sufficient to permit the exercise in full of this Warrant (the “Initial
Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on the five (5) year anniversary of the Initial Exercise
Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Titan Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), up to ______ shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b). This Warrant shall initially be issued and maintained in the form of a security held in book-entry
form and the Depository Trust Company or its nominee (“DTC”) shall initially be the sole registered holder of
this Warrant, subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the
Warrant Agency Agreement, in which case this sentence shall not apply.

 

Section 1.Definitions.
In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 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.

 

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

 

“Board
of Directors” means the board of directors of the Company.

 

“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.

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

    	 	1	 

     

    

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

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

 

“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.

 

“Registration
Statement” means the Company’s registration statement on Form S-1 (File No. 333-249550).

 

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

 

“Trading Day”
means a day on which the Common Stock is traded on a Trading Market.

 

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

 

“Transfer
Agent” means Continental Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing
address of 1 State Street, 30th Floor, New York, NY 10004-1561 and a facsimile number of (212) 616-7619, and any successor transfer
agent of the Company.

 

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

 

“Warrant
Agency Agreement” means that certain warrant agency agreement, dated on or about the Initial Exercise Date, between the
Company and the Warrant Agent.

 

“Warrant
Agent” means the Transfer Agent and any successor warrant agent of the Company.

 

“Warrants”
means this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

    	 	2	 

     

    

 

Section 2.Exercise.

 

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

 

Notwithstanding the foregoing in this Section 2(a),
a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing this Warrant held in book-entry
form through DTC (or another established clearing corporation performing similar functions), shall effect exercises made pursuant
to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction form
for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation, as
applicable), subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the
Warrant Agency Agreement, in which case this sentence shall not apply, provided, however, a beneficial holder shall have all of
the rights and remedies of a “Holder” hereunder.

 

b)                  
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $___, subject to adjustment
hereunder (the “Exercise Price”).

 

c)                  
Cashless Exercise. If at any time after the Initial Exercise Date, there is no effective registration statement registering,
or no current prospectus available for, the issuance of the Warrant Shares to the Holder, then this Warrant may only be exercised,
in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive
a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable: (i) the VWAP
on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed
and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to
Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64)
of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either
(y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the
Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the
applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day
and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours”
on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date
of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a)
hereof after the close of “regular trading hours” on such Trading Day;

 

    	 	3	 

     

    

 

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

 

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

 

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

 

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

 

		d)	Mechanics of Exercise.

 

i.           
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is
then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant
Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise
by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder
in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the
Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number
of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date,
the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in
the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days
comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to
deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall
pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20
per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a
transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein,
“Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on
the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice
of Exercise.

 

    	 	4	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	5	 

     

    

 

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

 

e)       Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution
Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii)
exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation,
any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein
beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence,
for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible
for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties)
and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder
may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual
report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent
written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon
the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 4.99% (or, upon election by a Holder prior to the issuance of
any Warrants, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of
shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease
the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.
Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered
to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

    	 	6	 

     

    

 

Section 3.Certain
Adjustments.

 

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

 

b)                  
Intentionally omitted.

 

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

 

    	 	7	 

     

    

 

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

 

e)                  
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held
by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon
any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been
issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock
for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section
2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following
such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction other than one
in which a Successor Entity (as defined below) that is a publicly traded corporation whose stock is quoted or listed on a Trading
Market assumes this Warrant such that the Warrant shall be exercisable for the publicly traded common stock of such Successor Entity,
the Company or any Successor Entity shall, at the Holder’s option, exercisable at any time concurrently with, or within 30
days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable
Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes
Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided,
however, if the Fundamental Transaction is not within the Company’s control, including not approved by the Company’s
Board of Directors or the consideration is not in all stock of the Successor Entity, Holder shall have the option to require the
Company or any Successor Entity to purchase its Warrant for the Black Scholes Value of the unexercised portion of this Warrant
as of the date of consummation of such Fundamental Transaction using the same type or form of consideration (and in the same proportion)
that is being offered and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether
that consideration be in the form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the
choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction. Any cash payment
will be made by wire transfer of immediately available funds within five Business Days of the Holder’s election (or, if later,
on the effective date of the Fundamental Transaction). “Black Scholes Value” means the value of this Warrant based
on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement
of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and
the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement
of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the
price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available
funds within five Business Days of the Holder’s election (or, if later, on the effective date of the Fundamental Transaction).
The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions
of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by
the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to
the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise
price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of
the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number
of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately
prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder.
Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	8	 

     

    

 

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

 

g)                  
Notice to Holder.

 

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

 

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

 

    	 	9	 

     

    

 

Section 4.Transfer
of Warrant.

 

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

 

b)                  
New Warrants. If this Warrant is not held in global form through DTC (or any successor depositary, this Warrant may
be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company
shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated the original issuance date and shall be identical
with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

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

 

Section 5.Miscellaneous.

 

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

 

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

 

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

 

    	 	10	 

     

    

 

d)                  
Authorized Shares. The Company covenants that, promptly following the Issue Date, the Company shall take all corporate
action necessary to call a meeting of its stockholders (which may be its annual meeting) (the “Stockholders Meeting”),
which shall occur not later than December 31, 2020, for the purpose of seeking approval of the Company’s stockholders to
either (i) increase the number of shares of Common Stock the Company is authorized to issue or (ii) effect a reverse split of the
Common Stock, in either event sufficient to permit the exercise in full of the Warrants in accordance with its terms (a “Capital
Event”). In connection therewith, the Company will as soon as reasonably practicable after the Issue Date file with the
Commission proxy materials (including a proxy statement and form of proxy) for use at the Stockholders Meeting and, after receiving
and promptly responding to any comments of the Commission thereon, shall as soon as reasonably practicable mail such proxy materials
to the stockholders of the Company. The Company will comply with Section 14(a) of the Exchange Act and the rules promulgated thereunder
in relation to any proxy statement (as amended or supplemented, the “Proxy Statement”) and any form of proxy
to be sent to the stockholders of the Company in connection with the Stockholders Meeting, and the Proxy Statement shall not, on
the date that the Proxy Statement (or any amendment thereof or supplement thereto) is first mailed to stockholders or at the time
of the Stockholders Meeting, contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein not false or misleading, or omit to state any material fact necessary to correct any statement
in any earlier communication with respect to the solicitation of proxies or the Stockholders Meeting which has become false or
misleading. If the Company should discover at any time prior to the Stockholders Meeting, any event relating to the Company or
the Subsidiary or any of their respective affiliates, officers or directors that is required to be set forth in a supplement or
amendment to the Proxy Statement, in addition to the Company’s obligations under the Exchange Act, the Company will promptly
inform the Underwriter thereof. The Company’s Board of Directors shall recommend to the Company’s stockholders that
the stockholders vote in favor of the Capital Event at the Stockholders Meeting and take all commercially reasonable action (including,
without limitation, the hiring of a proxy solicitation firm of nationally recognized standing) to solicit the approval of the stockholders
for the Capital Event. If the Company does not obtain stockholder approval for the Capital Event at the Stockholders Meeting, the
Company shall call a meeting every four months thereafter to seek stockholder approval until the date that stockholder approval
is obtained. No later than two (2) business days following stockholder approval of the Capital Event, the Company shall file with
the Secretary of State of Delaware a certificate of amendment to the Company’s Certificate of Incorporation to effect the
Capital Event, which certificate of amendment shall provide that it shall become immediately effective upon filing. The Company
shall issue a press release announcing the effectiveness of the Capital Event no later than one (1) business day after such filing.

 

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

 

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

 

    	 	11	 

     

    

 

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

 

e)                  
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
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. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or their 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. 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, 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 Warrant 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. If either party shall
commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or
proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or proceeding.

 

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

 

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

 

h)                  
Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including,
without limitation, any Notice of Exercise, shall be in writing and delivered personally, by facsimile or e-mail, or sent by a
nationally recognized overnight courier service, addressed to the Company, at Titan Pharmaceuticals, Inc., 400 Oyster Point Blvd.,
Suite 505 South San Francisco, California 94080 Attention: Chief Executive Officer, email address: sbhonsle@titanpharm.com, or
such other facsimile number, email address or address as the Company may specify for such purposes by notice to the Holders. Any
and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered
personally, by facsimile or e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the
facsimile number, e-mail address or address of such Holder appearing on the books of the Company. Any notice or other communication
or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address set forth in this Section
prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address set forth in this Section
on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given. To the extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding the Company or any subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K.

 

    	 	12	 

     

    

 

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

 

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

 

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

 

l)                   
Amendment. This Warrant may be modified or amended or the provisions hereof waived) in accordance with the provisions
set forth in Section 20 of the Warrant Agency Agreement or otherwise with the written consent of the Company and the Holder.

 

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

 

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

 

o)                  
Warrant Agency Agreement. This Warrant is issued subject to the Warrant Agency Agreement. To the extent any provision
of this Warrant Certificate conflicts with the express provisions of the Warrant Agency Agreement, the provisions of this Warrant
shall govern and be controlling.

 

 

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

 

 

(Signature Page Follows)

 

    	 	13	 

     

    

 

 

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

 

 

	
        Titan Pharmaceuticals,
        Inc.

         

         

	
        By:__________________________________________

        Name:

        Title:

         

 

 

    	 	14	 

     

    

 

NOTICE OF EXERCISE

 

To:[ ]

 

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

 

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

 

[ ] in lawful
money of the United States; or

 

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

 

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

 

_______________________________

 

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:                                                                                                                                        

Signature of Authorized Signatory of Investing
Entity:                                                                                            

Name of Authorized Signatory:                                                                                                                                     

Title of Authorized Signatory:                                                                                                                                     

Date:                                                                                                                                                    

 

 

 

    	 	15	 

     

    

 

 

EXHIBIT B

 

ASSIGNMENT
FORM

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

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

	Name:	                                                        
	 	(Please Print)
	Address:	                                                       
	
         

        Phone Number:

        Email Address:

         
	
        (Please Print)

                                                             
         

                                                               

	Dated: _______________ __, ______	 
	Holder’s Signature:                                     	 
	Holder’s Address:                                      	 

 

    	 	16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00315-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00315-of-00352.parquet"}]]