Document:

Exhibit

                    
	
			
	
	

EXECUTIVE EMPLOYMENT AGREEMENT
	

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This Executive Employment Agreement (the “Agreement”) is made and entered into effective as of the 31st day of July, 2014 (the “Effective Date”) by and between INC Research, LLC (the “Company”), and Michael Gibertini, an executive employee of the Company (“Executive”). 
Whereas, Executive acknowledges that, as a result of his/her employment in a senior position with the Company, he/she has had and will have access to strategic business information of the Company and other Confidential Information as that term is defined in this Agreement; and 
Whereas,  Executive acknowledges that the Company is engaged in a business that is highly competitive worldwide and that competition by Executive in that business, or solicitation of business relations in competition with the Company, both during his/her employment and after his/her employment ends, would necessarily involve Executive’s use of the Company’s Confidential Information and trade secrets to which Executive has been and will be given access as an employee of the Company and would otherwise constitute unfair competition and would severely injure the Company; and 
Whereas, Executive acknowledges and  agrees  that, by virtue of Executive’s senior position and responsibilities with the Company, Executive has had and will have access to the Company’s current,  former and prospective customers, clients, suppliers and/or business  relations, including, Confidential Information relating to such customers, clients, suppliers and/or business relations, and has generated and will generate goodwill belonging to the Company with such customers, clients, suppliers, and/or business relations which would cause great and irreparable harm to the Company if used on behalf of any other person or entity; 
Whereas,  Executive acknowledges and agrees  that, by virtue of Executive’s senior position and responsibilities with the Company, Executive has had and will have access to Confidential Information regarding Company personnel and that Executive has developed and will develop relationships with co-workers, and also that Executive is in a position to exert undue influence over his/her co-workers,  solely as a result of Executive’s employment with the Company; and
Whereas, the Company wishes to protect its investment in its business, employees, customer relationships, and Confidential Information, by requiring Executive to abide by certain restrictive covenants regarding confidentiality and other matters, each of which is an inducement to the Company to employ Executive;
Now therefore, in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the Company and Executive contract and agree as follows: 

                    
	
			
	
	

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1.         Employment; Nature of Employment.  
The Company hereby employs Executive as its President, Clinical Development and General Manager pursuant to the terms and conditions of this Agreement, and Executive accepts such employment.  Executive shall report to the Company’s Chief Executive Officer and shall have such responsibilities and authority as are consistent with the responsibilities of a President, Clinical Development and General Manager of a similarly-situated company,  as well as such other duties as  the  Chief  Executive  Officer may reasonably assign from time to time.  Additionally, Executive agrees to perform additional duties consistent with those of an executive at his/her level as the Company may establish from time to time.  Executive understands and agrees that the Company anticipates conducting and/or engaging a third party entity to conduct educational and professional credentials screening or checks related to Executive from time to time, and Executive agrees to cooperate with the Company and/or the third party entity, as applicable, in relation to such screening or checks and to execute all necessary releases, authorizations  and other documentation  reasonably necessary to conduct such screening or checks.  
2.    Devotion of Services. 
Executive agrees to devote his/her best efforts to the services of the Company in such capacity as the Company from time to time shall direct consistent with the responsibilities of a President, Clinical Development and General Manager, and to comply with the Company’s policies, practices and Code of Business Conduct and Ethics at all times. During his/her employment with the Company, Executive shall devote his/her full business time and attention to serving as President, Clinical Development and General Manager, provided that Executive may devote reasonable time to outside charitable, professional and educational activities so long as such activities do not materially interfere or conflict with the performance of Executive’s duties under this Agreement.   
3.    Compensation.  
During Executive’s employment under this Agreement, Executive shall be entitled, or eligible, to receive:
(a)     Base Salary.   Executive’s  annual salary  for  all  services rendered (the “Base  Salary”) shall be as established by the Company’s Board of Directors or by its compensation committee (the “Board”), payable in accordance with the Company’s regular payroll procedures.  Executive’s Base Salary shall be reviewed from time to time by the Board.
(b)    Management Incentive Plan.  Executive shall be eligible to participate in the Company’s  Management  Incentive  Plan (“MIP”).  Executive’s  participation in the MIP and his/her eligibility to receive any “Target Bonus” thereunder is subject to the satisfaction of applicable terms and conditions as established in the MIP as it may be modified by the Board from time to time.  Any  Target Bonus payable under the MIP shall be paid no later than April 

                    
	
			
	
	

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15th of the calendar year during  which  such Target Bonus vests and at the same time as any similar bonuses are paid to other executives of the Company. Except as otherwise expressly provided by this Agreement, payment is conditioned upon Executive being employed by the Company on the date of such payment. 
(c)      Health Insurance/Benefits.  Executive may participate in all group medical dental and disability insurance, 40l (k), retirement or pension plan and other employee benefit plans and programs established by the Company for which Executive is eligible, provided that Executive’s participation in such benefit plans and programs is subject to the applicable terms, conditions and eligibility requirements of these plans and programs, as they may exist from time to time. 
(d)     Paid Time Off.  In accordance with  and  subject to  the Company’s PTO policies and procedures,   Executive shall be entitled  to six (6) weeks paid time off (“PTO”) per year.  PTO may increase based on  years of service in accordance with the Company’s PTO policies and procedures.
(e)     Stock Options.  Executive shall be eligible to participate in the Company’s 2010 Equity Incentive Plan as it may be amended from time to time (the “Equity Incentive Plan”), subject  to  Board’s  approval  of any option grants.  Executive’s participation in the Equity Incentive Plan shall be governed by the terms of such plan and any stock option agreements entered into by Executive and the Company. 
(f)          The Company shall reimburse Executive for reasonable travel and other business-related expenses incurred by Executive in connection with the fulfillment of his/her duties hereunder, upon presentation of proper receipts or other proof of expenditure and subject to the applicable expense reimbursement policies and procedures of the Company.
(g)      Nothing in this Agreement  shall  require the  Company to  create,  continue or refrain from amending, modifying, revising or revoking any of the plans, programs or benefits set forth above.  Any amendments, modifications, revisions and revocations of these plans, programs or benefits shall apply to Executive.  Any conflict between the plans, programs or benefits described under this Agreement and the plan documents governing such plans, programs or benefits shall be controlled by the specific plan documents. 
(h)      Executive agrees  that  any incentive compensation he/she receives from  the Company, including, but not limited to that provided under the MIP and Equity Incentive Plan, will be subject to being returned to the Company in the event required by law or an applicable Company policy related to restatements of Company financial statements or Executive’s misconduct.
4.           Term of Employment. 
The term of employment under this Agreement shall commence as of the Effective Date and continue until terminated as set forth herein.  Subject to the provisions of Section 5 below, 

                    
	
			
	
	

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nothing  in  this  Agreement  shall be construed as constituting a commitment,  guarantee,  agreement or understanding of any kind or nature that the Company shall continue to employ Executive for any particular period of time, and the Agreement shall not affect in any way the right of the Company to terminate the employment of Executive at any time and for any reason.  By Executive’s execution  of  this Agreement,  Executive  acknowledges and agrees that Executive’s employment is “at will.”  As used in this Agreement, the term “Termination Date” means  the effective  date of the termination of  Executive’s employment by either party  as specified in the notice of termination described in Section 5 below, or the date of Executive’s death if earlier.
5.            Termination of Employment.
(a)              Either party may terminate the employment relationship for any  reason at  any time upon giving the other party forty-five (45) days prior written notice.  The Company may, in its discretion, relieve Executive of some or all of his/her duties during all or a part of such notice period.
(b)              Executive’s employment shall terminate automatically upon Executive’s death.
(c)            The Company shall have the right to terminate Executive’s employment upon written notice in the event of Executive’s Disability (as defined herein). “Disability,” as used in this Agreement, means a physical or mental condition that renders Executive unable to perform the essential functions of Executive’s job, with or without reasonable accommodation, for a continuous period of more than ninety (90) days or for ninety (90) days in any period of one hundred eighty (180) consecutive days. Disability shall be determined by a physician satisfactory to the  Company and in accordance  with  the  respective  rights and obligations  under the Americans with Disabilities Act, as amended (the “ADA”), and any other applicable law.  For purposes of making a determination as to whether a Disability exists, at the Company’s request and at the Company’s expense, Executive agrees to make himself/herself available and  to cooperate with a reasonable examination by such physician and to authorize the disclosure and release to the Company of all medical records related to such determination to the extent permissible under the ADA and  any  other applicable laws. Nothing  herein  shall give  the Company  the right to terminate Executive prior to discharging its obligations to Executive, if any, under the Family and Medical Leave Act, the ADA or any other applicable law
(d)           The Company shall have  the  right to  terminate  Executive’s employment immediately  by written  notice for Cause  (as defined herein).  As used  in  this Agreement, “Cause”  shall  mean:  (i)  Executive’s breach of  any  fiduciary duty or legal or contractual obligation to the Company or to the Board; (ii) Executive’s failure to follow the reasonable instructions  of  the Board or Executive’s direct  supervisor, provided, however, that such instruction is consistent with Executive’s duties and responsibilities, which breach, if curable, is not cured within ten (10) business days after notice to Executive or, if cured, recurs within one hundred  and  eighty (180) calendar days; (iii) the Executive’s  gross negligence, willful 

                    
	
			
	
	

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misconduct, fraud, insubordination or acts of dishonesty relating to the Company; or (iv) the Executive’s commission of any misdemeanor solely relating to the Company or of any felony.
(e)               Executive may resign from Executive’s employment by written notice for Good Reason as defined herein.  “Good Reason” shall mean  the  occurrence, without Executive’s express written consent, of any of the following events: (i) a material reduction in Executive’s Base Salary or Target Bonus percentage under the MIP; (ii) a material adverse change to Executive’s title or a material reduction in Executive’s authority, job duties or responsibilities; (iii) a requirement that  Executive relocate to a principal place of employment more than fifty (50) miles from the Company’s offices at 3201 Beechleaf Court, in Raleigh, North Carolina; or (iv) a material breach of this Agreement by the Company; provided, that, any event described in clauses (i), (ii), (iii) and (iv) above shall constitute Good Reason only if the Executive provides the Company with written notice of the basis for the Executive’s Good Reason within forty-five (45) days of the initial actions or inactions of the Company giving rise to such Good Reason and the Company has not cured the identified actions or inactions within thirty (30) days of such notice.
(f)                Executive shall,  without  the  requirement  of any further  action, automatically  cease to be an officer and/or director  of the Company  and  any of  its  affiliates  as of the Termination Date.
6.           Compensation and Benefits upon Termination.
(a)             The Company’s obligation to compensate Executive ceases on the Termination Date except as to: (i) any unpaid Base Salary earned by Executive as of that time; (ii) any unpaid amount actually earned and due to Executive pursuant to the MIP; (iii) any business expenses for which Executive is entitled to reimbursement under this Agreement; and (iv) any compensation and/or benefits to which Executive may be entitled to receive pursuant to this Section 6.
(b)              If the Company terminates Executive’s employment without Cause or Executive resigns for Good Reason, then the Company shall pay Executive the payments referenced above in Subsections 6(a)(i), (ii), and (iii) (collectively, the “Accrued Payments”).  In addition, subject to Executive’s compliance with Sections 8, 9, 10, 11, 13 and 15 of this Agreement and subject to the requirements of Section 6(e) below: (i) the Company will pay Executive an amount equal to his/her Base Salary as of the Termination Date for a period of twelve (12) months following the Termination Date, payable through the Company’s regular payroll procedures (the “Severance Pay”) commencing on the sixtieth  (60th) day following the Termination Date (with the first payment including a catch-up payment for any Base Salary that would have otherwise been paid as Severance Pay during such sixty (60) day period); and (ii) if Executive timely elects continued health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as  amended  (“COBRA”),  the  Company shall, on the sixtieth  (60th) day  following  the  Termination Date, reimburse Executive for the entire amount of any premiums paid by Executive prior to such date necessary to continue such COBRA coverage for Executive and Executive’s covered spouse and eligible dependents and thereafter the Company shall pay the entire premium 

                    
	
			
	
	

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necessary to continue such coverage, in each case, until the earlier of (A) the expiration of the eighteen (18) month period following the Termination Date, or (B) the date on which Executive becomes eligible for group health insurance coverage under another employer’s plan, notice of which Executive shall promptly provide the Company.
(c)             If the Company terminates Executive’s employment for Cause or if the Executive terminates his/her employment without Good Reason, or if Executive’s employment ends due to his/her death, then the Company’s sole obligation shall be to pay Executive (or his/her estate) only the Accrued Payments.  
(d)           If the Company terminates Executive’s employment due to Disability or upon Executive’s death, the Company shall pay Executive or his/her estate, in addition to any short term or long term disability benefits that he/she may have received and/or be entitled to receive, the Accrued Payments.  In addition, Executive shall be eligible to receive payment of the Target Bonus as set forth in Section  3(b) above,  subject to the terms of the  MIP  and to the extent actually earned for the fiscal year in which such termination takes place, prorated based on the number of days in such fiscal year that Executive was employed prior to the Termination Date, to be paid in accordance with the timing set forth in Section 3(b) (or if later, the sixtieth (60th) day following the Termination Date). 
(e)             Notwithstanding any provision of this Agreement to the contrary, the Company’s obligation to make any payments or to provide any benefits under Sections 6(b) or Section 6(d) above is subject to and conditioned upon Executive’s execution of an enforceable release and waiver of claims agreement in a form satisfactory to the Company (the “Release Agreement”) and his/her compliance with the covenants in Sections 8, 9, 10, 11, 13 and 15 of this Agreement.  If Executive chooses not to timely execute such Release Agreement, revokes the Release Agreement, or fails to comply with the covenants in Sections 8, 9, 10, 11, 13 and 15 of this Agreement, then the Company’s obligation to compensate him/her ceases on the effective Termination Date except as to the Accrued Payments.  The Release Agreement shall be provided to Executive within seven (7) days of the Termination Date and Executive must execute it within the twenty-one (21) or forty-five (45) day time period specified in the Release Agreement.  The Release Agreement and any payments due following its execution by Executive shall not be effective until any applicable revocation period has expired.
(f)           Executive is not entitled to receive any compensation or benefits upon his/her termination except as: (i) set forth in this Agreement, (ii) otherwise required by applicable law, or (iii) otherwise specifically required by any employee benefit plan of the Company in which he/she participates.  Moreover, the terms and conditions provided to Executive under this Agreement are in lieu of any severance benefits to which he/she otherwise might be entitled pursuant to any severance plan, policy and practice of the Company and or any of its affiliates.  Nothing in this Agreement  however,  is intended  to waive or  supplant any accrued death, disability, accidental death and dismemberment, retirement 401 (k) or pension benefits of the Company  to  which he/she may be entitled under employee benefit plans of the Company in which he/she participates.

                    
	
			
	
	

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(g)        If, within the twelve (12) month period following a Change in Control, as defined below, Executive is terminated without Cause or he/she resigns for Good Reason, but in either case subject to the provisions of Section 6(e) above, Executive shall, in addition to the payments and benefits set forth in Section 6(b), be entitled to a lump sum payment, payable on the sixtieth (60th) day following the Termination Date, equal to the greater of: (A) fifty percent (50%) of Executive’s  then  Base  Salary, or (B) his/her  Target Bonus under the MIP.   A “Change in Control,” as defined herein solely for purposes of this Agreement, shall mean: (i) any merger, consolidation, or  reorganization involving the Company,  in which, immediately after giving effect to such merger, consolidation or reorganization, less than fifty percent (50%) of the total voting power of outstanding stock of the surviving or resulting entity is then “beneficially owned” (within  the  meaning of Rule 13d-3 under the Securities Exchange Act of 1943, as amended (the “Exchange Act”))  in the aggregate  by  the stockholders  of the Company immediately prior to such merger consolidation or reorganization; (ii) any sale, lease, exchange, or other transfer of all or substantially all of the assets of the Company to any other person or entity (other than to one or more wholly-owned subsidiaries of the Company) in a transaction or a series of related transactions; (iii) the dissolution or liquidation of the Company; (iv) when any person  or entity  not currently a  stockholder, including a “group” as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without limitation, power to vote) of more than fifty percent (50%) of the outstanding shares of the Company’s voting stock (based upon voting power); or (v) as a result of or in connection with a contested  election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Company’s Board.
7.           Section 409A and Section 280G of the Internal Revenue Code.  
(a)         The Parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder to the extent applicable (collectively “Code Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with  the requirements for  avoiding taxes  or  penalties under  Code  Section  409A.  Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under Section 6 that constitute “deferred compensation” within the meaning of Code Section 409A will not commence in connection with Executive’s termination of employment unless and until Executive has also incurred a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h) (a “Separation From Service”).  The parties intend that each installment of the  Severance Pay  payments provided  for in this Agreement  is a separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i).  For the avoidance of doubt, the parties intend that payments of the Severance Pay set forth in this Agreement satisfy, to the greatest extent possible,  the  exemptions  from the application of Code Section 409A provided   under  Treasury  Regulation  Sections 1.409A-1(b) (4),  1.409A-1(b)(5)  and  1.409A- 1(b)(9).  If any payment, compensation or other benefit provided to Executive under this Agreement in connection  with Executive’s “separation from service” (within the meaning of  Code Section 409A), is determined, in whole or in part, to constitute “nonqualified deferred 

                    
	
			
	
	

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compensation” (within  the  meaning of Code Section 409A) and  Executive  is  a specified employee (as defined in Code Section 409A(a)(2)(B)(i)) at the time of separation from service, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of separation or, if earlier, ten (10) business days following Executive’s death (the “New Payment Date”).  The aggregate of any payments and benefits that otherwise would have been paid and/or  provided to Executive during the period between the date of separation of service and  the New Payment Date shall be  paid to Executive in a lump sum on such New Payment Date.  Thereafter, any payments and/or benefits that remain outstanding as of or following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with  the terms of this Agreement.  In  no event whatsoever will  the Company be liable for any additional tax, interest or penalties that may be imposed on Executive under Code Section 409A or any damages for failing to comply with Code Section 409A.
             (b)         With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect  the expenses eligible for reimbursement, or in-kind benefits, to be provided in any other taxable year, provided, that, this clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement  is  in effect; (iii) such payments  shall be  made  on or  before the last day of Executive’s taxable year following the taxable year in which the expense occurred; and (iv) any payments made in installments shall be deemed separate payments. 
            (c)         Provided that the Company is privately held and Section 280G(b)(5)(A)(ii) of the Code is available, if any payment or benefit (within the meaning of Section 280G(b)(2) of the Code) (the “Payments”) to Executive or for Executive’s benefit paid or payable or distributed or distributable  pursuant to  the terms of this Agreement or  otherwise would be a “parachute payment” then, to the extent Executive elects to waive the right to receive such Payments unless shareholder approval is obtained in accordance with Section 280G(b)(5)(B) of the Code, the Company shall use commercially reasonable efforts to prepare and deliver to its stockholders, described   in  Reg.    Section   1-280G-1,     Q/A-7,  disclosure  intended  to  satisfy  Section  280G(b)(5)(B) of the Code and the regulations thereunder, with respect to the Payments and to solicit   the  approval  of   the  Company’s  stockholders  in  a   manner  intended  to   satisfy    280G(b)(5)(B) of the Code and the regulations thereunder.
           (d)        Subject to Section 7(a), in the event that (i) Executive is entitled to receive any Payments, whether payable, distributed or distributable pursuant to the terms of this Agreement or otherwise, that constitute “excess parachute payments” within the meaning of Section 280G of the Code, such Payment shall be reduced to the extent necessary to avoid such excise tax, but only if such reduction will result in the net amount Executive retains with respect to the Payment that is actually paid, after deduction of any Federal, state and local income tax on the Payment, 

                    
	
			
	
	

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being greater than the net amount that Executive would retain with payment of the full Payment without reduction, after deduction of any excise tax on the Payment and any Federal, state and local income tax and excise tax on the unreduced Payment.
To the extent such aggregate parachute payment amounts are required to be so reduced, the parachute payment amounts due to Executive (but no non-parachute payment amounts) shall be reduced in the following order: (i) the parachute payments that are not subject to Section 409A of the Code and are payable in cash shall be reduced (if necessary, to zero) with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity, that are not subject to Section 409A of the Code, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24); (iii) all other non-cash benefits and are not otherwise described in clause (ii) of this Section 7(d); and (iv) any Payments subject to Section 409A of the Code to be reduced last  with amounts  that  are payable  last reduced first.
            (e)         The determinations to be made with respect to this Section 7 shall be made by a certified public accounting firm (the “Accountant”) designated by the Company and reasonably acceptable to Executive, which determination shall be final and binding on the parties.  The Company shall be responsible for all charges of the Accountant.
8.    Confidentiality. 
(a)    Executive agrees that he/she shall not at  any  time, without  the prior written consent of the Company, disclose or use (except in the course of his/her employment with the Company and solely in furtherance of  the interests of  the Company and its subsidiaries or affiliates) any confidential or proprietary information belonging to the Company, including, but not limited to, all trade secrets, patent applications, scientific data, formulation information, inventions, processes, formulas, systems, computer programs, plans, programs, studies, techniques, critical  business  information such as drug products in development, business strategies and models, product launch plans, CRO relationships, regulatory submissions, technology  used  by  or the  therapeutic  focus of the  Company, clinical information, methodologies, standard operating procedures, operational documents (such as batch records), technology used by the Company, marketing and certain financial information calculations, budgets, bids, internal policies and procedures, organization, business plans, analysis, forecasts, billing practices, pricing information and strategies, promotional material, service offering strategies, marketing  plans and ideas, the identities  or other  information  about customers, sponsor, customer or client lists, suppliers and business partners (current and prospective), the terms  of  current  and  pending deals,  sales data, and sales projections,  research, research proposals, study protocols, coding devices, unpublished results and reports, meeting minutes and notes, monthly and other periodic reports, contact and other information regarding suppliers, vendors and consultants, and regulatory and legal correspondence, whether or not patentable or copyrightable  and whether in  tangible or other form,  including all documents and records, whether printed,  typed, handwritten, videotaped, transmitted or transcribed on data files or on any other type of media, whether or not labeled or identified as confidential and proprietary  (all 

                    
	
			
	
	

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of such information being hereinafter collectively referred to as “Confidential Information”). Notwithstanding  the foregoing,  the  term “Confidential Information”  shall not include information which (i) is already known to Executive prior to its disclosure to Executive by the Company; (ii) is or becomes generally available to the public through no wrongful act of any person; (iii) is at the time of disclosure part of the public knowledge or literature through no wrongful action by Executive; or (iv) is received  by Executive from a  third party without restriction and without any wrongful conduct on the part of such third party relating to such disclosure. Executive acknowledges and agrees that the Confidential Information he/she obtains or becomes aware of as a result of his/her employment with the Company is not generally known or available to the general public, but has been developed, compiled or acquired by the Company at its great effort and expense and that Executive is required to protect and not disclose such information. 
(b)    Executive agrees that he/she shall not disclose any information belonging to third parties, including, without limitation, current, former and/or prospective customers and vendors of the Company that is disclosed to Executive as a representative of the Company under an obligation of confidentiality. 
(c)    The restrictions contained in Section 8(a) above will not apply to any information that Executive is required to disclose by law or as requested by a governmental or administrative agency, provided that Executive (i) notifies the Company of the existence and terms of such obligation, (ii) gives the Company a reasonable opportunity to seek a protective order or other legal process to prevent or limit such disclosure, and (iii) only discloses that information actually required to be disclosed.
(d)    Any trade secrets of the Company will be entitled to all of the protections and benefits under the North Carolina Trade Secrets Protection Act, N.C. Gen. Stat. § 66-152 et seq., and any other applicable law.  If any information that the Company deems to be a trade secret is found by a court of competent jurisdiction not to be a trade secret, such information will, nevertheless, be considered Confidential Information for purposes of this Agreement.  
(e)    Executive agrees that, upon the termination of his/her employment for any reason, and immediately upon request of  the  Company at any time, he/she will promptly return (and shall not delete, destroy or modify) all property, including any originals and all copies of any documents, whether stored on computers or in hard copy, obtained from the Company, or any of its current, former or prospective customers or vendors, whether or not Executive believes it qualifies as Confidential Information.  Such property shall include everything obtained during and as a result of Executive’s employment with the Company, other than documents related to Executive’s compensation and benefits, such as pay stubs and benefit statements.  In addition, Executive shall also return any phone, facsimile, printer, computer, or other items or equipment provided by the Company to Executive to perform his/her employment responsibilities during his/her employment with the Company. Executive agrees that he/she shall not access or attempt to  access the  Company’s computer systems after the termination of Executive’s employment with the Company.  Executive further agrees that he/she does not have a right of privacy to any 

                    
	
			
	
	

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Communications sent through the Company’s electronic communications systems (including, without limitation, emails,  phone calls and voicemail) and  that  the Company may monitor, retain, and review all such communications in accordance with applicable law. 
9.    Non-Solicitation of Customers and Other Business Relations. 
During the Restricted Period (as defined below), Executive will not, directly or indirectly, for Executive’s own behalf, nor as an officer, director, stockholder, partner, associate, owner, executive, consultant or  otherwise on behalf of any person, firm, partnership, corporation, or other entity, directly or indirectly:
(a)      Solicit, induce, influence or attempt to solicit, induce or influence any Company Customer (as defined below) to (i) cease doing business in whole or in part with the Company, or (ii) do business with any other person or business which is “Competitive with the Company” (as defined below);
(b)       Solicit, induce, or attempt to induce any Prospective Customer (as defined below)  to (i) not begin doing business with the Company, (ii) cease doing business in whole or in part with the Company, or (iii) do business with any business that is Competitive with the Company; or
(c)    Interfere with, disrupt or attempt to interfere with or disrupt the relationship, contractual or otherwise,  between the Company and any supplier, vendor, distributor, lessor, lessee, or licensor that transacts business with the Company.
(d)       “Restricted Period” means during Executive’s employment  with the Company and for the period commencing on the Termination Date and ending twelve (12) months after the Termination Date.
(e)      “Company Customer” means  a person or entity for whom the Company was providing services either at the time of, or at any time within the twelve (12) months preceding, the Termination Date, and for whom Executive carried out or oversaw a material business responsibility during said twelve (12) month period.
(f)          “Prospective Customer” means a person or entity (i) that Executive contacted for the purpose of soliciting business on behalf of the Company during the twelve (12) months preceding the Termination Date; or (ii) to which the Company had submitted a bid or proposal for services during the twelve (12) months preceding the Termination Date, and in which bid or proposal Executive was involved in any material respect.
(g)       “Competitive with the Company” means an entity in the business of providing contract research organization (CRO) services to pharmaceutical, biotechnology, or biomedical companies.

                    
	
			
	
	

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10.    Non-Solicitation of Employees; Non-Disparagement.
(a)    During the Restricted Period (as defined above in section 9), Executive will not on Executive’s own behalf, nor as an officer, director, stockholder, partner, associate, owner, employee, consultant or otherwise on behalf  of any person, firm, partnership, corporation, or other entity, directly or indirectly, solicit or attempt to solicit for hire as an officer, director, employee, agent, consultant or independent contractor, any Company Employee (as defined below).  Executive further  agrees that Executive will not encourage, entice, induce or suggest that any Company Employee terminate or alter his/her employment or relationship with the Company for the benefit of any person or entity other than the Company.  
(b)    The term “Company Employee” means any person who is an employee of or consultant to the Company as of the Termination Date.
(c)    Executive agrees that, upon and following the Termination Date, Executive shall not make to any third party, publicly or privately, verbally or in writing, any false, disparaging, derogatory or otherwise inflammatory remarks about any of the Company, its parent, subsidiaries and other related and affiliated companies, their employees, managers, directors, officers, administrators, shareholders, members, agents, attorneys, insurers and contractors acting in any capacity  whatsoever, including  their  respective predecessors, successors and assigns (collectively, the “Company Parties”) and/or about the conduct, operations or financial condition or business practices, policies or  procedures  of the Company Parties, and Executive will not make or solicit any false or misleading comments, statements or the like to the media or to others that may be considered derogatory or detrimental to the good name and business reputation of any of the Company Parties; provided, however, nothing in this Section 10(c) is intended to prohibit or restrict in any way any executive of the Company from providing truthful information to any government agency or entity, or any arbitrator or court officer, or to otherwise testify truthfully under oath, as required by law.  The Company agrees that, upon and following termination of Executive’s employment with the Company for any reason, its executive officers will not make, publicly or privately, verbally or in writing, any false, disparaging, derogatory or otherwise inflammatory remarks about Executive and/or the conduct, operations or financial condition or business practices, of Executive to any third party, and the Company’s executive officers will not make or solicit any comments, statements or the like to the media or to others that may be considered derogatory or detrimental to the good name and business reputation of Executive; provided,  however,  that nothing in this  paragraph is intended to prohibit the Company’s executive officers from providing truthful information to any government entity, arbitrator, or court, or to otherwise testify truthfully under oath,  as required by law.  In addition, nothing in this Section 10(c) shall be construed or interpreted to restrict or impede Executive or the Company from participating or cooperating in  an investigative proceeding of any federal, state or local government agency.

                    
	
			
	
	

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11.    Non-Competition.
(a)    During the Restricted Period (as defined above in section 9), within the Restricted Area (as defined below), Executive will not directly or indirectly, for Executive’s own behalf or for any other person or entity provide the Restricted Services (as defined below) for any person or entity that is Competitive with the Company (as defined above).  
(b)    The “Restricted Services” means (i) services in which Executive is engaged or employed by or with any other person or business entity in the same or substantially similar capacity as Executive was engaged by the Company at the time of, or in the twelve (12) months preceding, the Termination Date; or (ii) services provided on Executive’s own behalf or for any other person or business entity that are the same or substantially similar to the services Executive provided to the Company at the time of, or in the twelve (12) months preceding, the Termination Date.
(c)    The “Restricted Area” means the following geographical areas: (i) any city, metropolitan area,  county (or similar  political subdivision in  foreign countries) in which Executive personally  provided material  services in-person (not by telephone or internet) on behalf of the Company during the twelve (12) months prior to the termination of Executive’s employment with  the Company; (ii) within  a  60-mile radius of  the  location(s) where the Executive had an office during the twelve (12) months prior to the termination of Executive’s employment with the Company; (iii) within a 60 mile radius of Raleigh, North Carolina; and (iv) any city, metropolitan area, county (or similar political subdivision in foreign countries) in which the Company is located or does or did business, during the twelve (12) months prior to the termination of Executive’s employment with the Company.
(d)    Notwithstanding the foregoing, Executive’s ownership, directly or indirectly, of not more than one percent (1%) of the issued and outstanding stock of a corporation the shares of which are regularly traded on a national securities exchange or in the over-the-counter market shall not violate this Section 11. 
12.    Reasonable Restrictions; Right to Equitable Relief.  
Executive acknowledges and agrees that nothing in this Agreement prohibits Executive from obtaining suitable employment and/or earning a livelihood for Executive or Executive’s family.  Executive further acknowledges and agrees that the restrictions and covenants set forth above are reasonable in geographic and temporal scope and in all other respects and necessary to protect the Company and its legitimate business interests.  Executive understands and agrees that the Company will be irreparably injured by any breach of Sections 8, 9, 10 and/or 11 above and damages  would be  an inadequate  remedy for such  breach.   Accordingly,  Executive  acknowledges that, in the event of Executive’s breach or threatened breach of Sections 8, 9, 10, and/or 11 above, the Company shall be entitled to  seek a restraining order in addition to preliminary, temporary and permanent injunctive relief or other equitable relief, without the requirement of posting a bond or other security; provided, however, that the seeking or granting 

                    
	
			
	
	

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of any such injunctive relief shall not prejudice the Company’s right to seek monetary damages for any breach of  Sections 8, 9, 10 and/or 11 of this Agreement  and any damage that it has suffered thereby,  including its  attorneys’  fees and  expenses in seeking  to  enforce  these provisions. Notwithstanding anything else to the contrary herein, in the event of any violation by Executive of Sections 8, 9, 10 or 11 of this Agreement, the Company shall have no obligation thereafter to make any payments of Severance Pay or health insurance reimbursements to Executive pursuant  to  this  Agreement, and/or if paid prior to Executive’s breach of this Agreement, Executive shall be obligated to repay the Company any Severance Pay made by the Company.
13.    Developments.
(a)    If Executive (either alone or with others) makes, conceives, creates, discovers, invents or reduces to practice (herein “Generates” or are “Generated”) any Developments (as defined  below),  such  Developments, and all of  his/her rights and interests therein and all of his/her records relating to such Developments, shall be the sole and absolute property of the Company. Executive shall promptly disclose to the Company each such Development and shall deliver to the Company all of his/her records relating  to each such Development.  Executive hereby assigns to the Company any and all rights (including, but not limited to, any rights under patent law, copyright law and/or other similar laws in any country) that he/she has or may have or may acquire in the Developments, without further compensation. All Developments which are copyrightable works shall be works made for hire. 
(b)    “Developments” means any invention, design, development, improvement, process, software  program, work of  authorship, trademark or technique, whether  or  not  patentable  or  registrable  under  copyright or  similar statutes, that (i) are Generated while Executive is employed by the Company and relates to  or  is useful in the actual or  planned business of the Company or any of the products or services being developed, manufactured, sold and/or provided by the Company, (ii) result from tasks assigned to Executive by the Company or tasks within Executive’s scope of  responsibility, or (iii)  result from  the use of premises or property (whether tangible or intangible) owned, leased or contracted for by the Company. Executive acknowledges that any Developments Generated during his/her employment, prior to the date of this Agreement, are the sole and absolute property of Company and the terms of this Agreement shall apply to such Developments. 
(c)    Executive will, upon the Company’s request, without further compensation but at the Company’s expense, during and after his/her employment, promptly execute specific assignments of title to the Company and take such further acts as requested by the Company to confirm, secure, perfect, protect, enforce and/or transfer the Company’s right, title and interest in and to such Developments.  Such acts may include, but are not limited to, Executive’s execution and delivery of documents and instruments and his/her assistance and cooperation in the registration and enforcement of applicable patents, copyrights or other forms of protection or other legal proceedings.  If, at any time, Executive’s cooperation is  required  to enable  the Company to secure, perfect, protect, enforce or transfer its right, title or interest in any 

                    
	
			
	
	

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Development and Executive fails to respond within fourteen (14) calendar days  to a written request from the Company for action sent by the Company to the last address for Executive maintained by the Company, Executive hereby appoints the Company as his/her attorney, and grants the Company his/her power of attorney to execute in good faith, commercially reasonable applications, releases, assignments, or other documents or agreements reasonably required to secure, perfect, protect, enforce or transfer the Company’s right, title or interest. 
(d)    The obligations of Executive under this Section 13 will not apply to the extent such obligations are unenforceable pursuant to the provisions of Section 66-57.1 of the North Carolina General Statutes (as amended from time to time), provided that the obligations of Executive  under  Section 14 will  continue to be binding upon Executive  in  all  other circumstances.  Executive will bear the burden of proof in establishing the applicability of such statute to a particular circumstance.
14.    Indemnification. 
In addition to any other indemnities provided to Executive by the Company, from and after the Termination Date, the Company shall, to the fullest extent permitted by Section 145 of the Delaware General  Corporation Law, as  such section may be amended and supplemented from time to time, indemnify Executive against expenses (including attorneys’ fees), judgments, fines, amounts paid in settlement and/or other matters referred to in or covered by such section, by reason of the fact that Executive was a director, officer, employee or agent of the Company, or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.
15.    Cooperation. 
During and subsequent to termination of the employment of the Executive, the Executive will cooperate with the Company and furnish any and all information, testimony or affidavits in connection  with  any matter  that arose during the Executive’s employment, that in any way relates to the business or  operations of the Company or any  of its  subsidiary corporations, divisions or affiliates, or of which the Executive may have any knowledge or involvement; and will consult with and provide information to the Company and its  representatives concerning such matters.  Subsequent to the termination of the employment of the Executive, the parties will undertake reasonable efforts to have such cooperation performed at reasonable times and places and in a manner as not to unreasonably interfere with any other employment in which Executive may then  be engaged.  The Company will  compensate Executive for  reasonable  expenses incurred in connection with such cooperation in accordance with the requirements of its current expense reimbursement policy and, following an initial eight (8) hours, for which he/she will receive no compensation, Executive will be compensated by the Company at an hourly rate equal to his/her last base salary divided by  two thousand (2,000) for all hours spent  in  activities requested by the Company in accordance with this Section 15.  If the Company requires the Executive to travel outside the metropolitan area in the United States where the Executive then resides to provide any testimony or otherwise provide any  such assistance, then the Company 

                    
	
			
	
	

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will reimburse the Executive for any reasonable, ordinary and necessary travel and lodging expenses incurred by Executive to do so provided the Executive submits all documentation required under the Company’s standard travel expense reimbursement policies and as otherwise may be required to satisfy any requirements under applicable tax laws for the Company to deduct those expenses. Nothing in this Agreement shall be construed or interpreted as requiring the Executive to provide any testimony, sworn statement or declaration that is not complete and truthful.  In addition, nothing in this Section 15 shall be construed or interpreted to restrict or impede the Executive from participating or cooperating in an investigative proceeding of any federal, state or local government agency.
16.    Assignment.
This Agreement shall be binding upon and inure to the benefit of the Company and any successor in interest to the Company or any segment of such business. The Company may assign this Agreement to any affiliate or successor that acquires all or substantially all of the assets and business of the Company or a majority of the voting interests of the Company.  The Company will require any successor (whether direct or indirect, by operation of law, by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of Company) to expressly assume and agree to  perform this Agreement  in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  Executive’s rights and obligations under this Agreement are personal and shall not be assigned or transferred.
17.    Notice.    
Notices and all other communications shall be in writing and  shall be deemed to have been duly given  when personally  delivered or  when mailed by United States registered or certified mail.  Notices to the Company shall be sent to:

INC Research, LLC
Attn:  General Counsel
3201 Beechleaf Court, Suite 600
Raleigh, North Carolina 27604
Notices and communications to Executive shall be sent to the address Executive most recently provided to the Company. 
18.    Governing Law, Forum and Jury Waiver.
This Agreement and all disputes, claims or controversies arising out of or related to this Agreement, shall be governed by the laws of the State of North Carolina without regard for reference to any choice or conflict of law principles of any jurisdiction.  The parties agree that any action or proceeding with respect to this Agreement or Executive’s employment with the Company  shall be  brought  exclusively in the state or  federal  courts in the State of North 

                    
	
			
	
	

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Carolina, and Executive voluntarily submits to the exclusive jurisdiction over Executive’s person by a court of competent  jurisdiction  located within the State of North Carolina.  The parties hereby irrevocably waive any objection they may now or hereafter have to the laying of venue of any such action in the State of North Carolina, and further irrevocably waive any claim they may now or hereafter have that any such action brought in said court(s) has been brought in an inconvenient forum.  The parties hereby knowingly and expressly waive their right to a jury trial for any claim relating to his/her/its rights or obligations under this Agreement.  
19.    Entire Agreement; Counterparts.
This Agreement contains all the understanding between the parties hereto pertaining to the subject matter hereof and supersedes all undertakings, promises and agreements, whether oral or in writing, previously entered into between them with respect to  the subject matter herein.  This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same Agreement.  Counterparts may be transmitted and/or signed by facsimile or electronic mail.  The effectiveness of any such documents and signatures shall have the same force and effect as manually signed originals and shall be binding on the parties to the same extent as a manually signed original thereof. For purposes of clarification, as applied to Executive, the provisions of this Agreement shall supersede the terms and conditions contained in Schedule C to the 2010 Equity Incentive Plan, Nonqualified Stock Option Award Agreement.
20.    Amendment, Modification or Waiver.
This Agreement may not be changed orally, and no provision of this Agreement may be amended or modified unless such amendment or modification is in writing, signed by Executive and by a duly authorized officer of the Company.  No act or failure to act by the Company will waive any right, condition or provision contained herein.  Any waiver by the Company must be in writing and signed by a duly authorized officer of the Company to be effective.
21.    Severability.
In case any one or more of the  provisions  contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this  Agreement shall be construed as if such invalid, illegal, or other unenforceable provision had never been contained herein.  If, moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to  be excessively broad  as to duration,  geographical scope or subject, it shall be construed by limiting it and reducing it so as to be enforceable to the extent compatible with applicable law as it shall then appear. 

                    
	
			
	
	

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22.    Prior Obligations.
(a)    Executive warrants and represents to the Company that his/her  employment by the Company and execution and performance of this Agreement does not conflict with any prior obligations to third parties (including but not limited to any non-competition, non-solicitation, confidentiality, or other obligation), and Executive agrees that he/she will not disclose to the Company any proprietary information of any former or concurrent employer, unless consented to by such employer.  Any violation of this Section 22(a) by Executive may result in the immediate termination of his/her employment with the Company. 
(b)    Executive warrants and represents to the Company that he/she does not own or control and will not own or control while he/she is employed by the Company, any right, title or interest in any invention, design, development, improvement, process, software program, work of authorship, trademark or technique, whether or not patentable or registrable under copyright or similar statutes, that relates in any manner to, or is useful in, the actual or planned business or products of the Company or relates in any manner to, or is useful in, its actual or anticipated research and development of the Company. If, in contravention of the foregoing, any invention, design, development, improvement, process, software program, work of authorship, trademark or technique exists,  Executive grants to the Company a perpetual, paid up, worldwide license to such invention, design, development, improvement, process, software program, work of authorship, trademark or technique. 
23.    Debarment/Exclusion.
Executive hereby certifies to the Company  that, as  provided  in  Section 306(a) and Section 306(b) of  the  U.S. Federal Food, Drug  and Cosmetic Act ( 21 U.S.C. § 335a(a) and 335a(b)) and/or under any equivalent law within or outside the United States, he/she has not in the past been and/or is not currently (or threatened to be or subject to any pending action, suit, claim investigation or  administrative  proceeding  which could  result in  him/her being) (i) debarred or (ii) excluded from participation in any federally funded healthcare program or (iii) otherwise subject to any governmental sanction in any jurisdiction (including disqualification from participation in clinical research) that would affect or has affected Executive’s ability to perform his/her obligations under this Agreement or his/her employment or prevent him/her from working for the Company in any capacity in  any  jurisdiction. Executive hereby confirms that he/she is not  on  any of  the  following  exclusion lists: (a) Food and Drug Administration Debarment List; (b) General Services Administration Excluded Parties List System; or (c) Office of Inspector General List of Excluded Individuals/Entities. Executive warrants and represents to the Company that he/she will notify the Company immediately if any of the foregoing occurs or is threatened and that the obligation to provide such notice will remain in effect following the termination of his/her employment with the Company for any reason, voluntary or involuntary. Any violation of this section by Executive may result in the termination of his/her employment with the Company.  Immediately upon the request of the Company at any time, Executive will certify to the Company in writing his/her compliance with the provisions of this section. 

                    
	
			
	
	

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24.    Miscellaneous.
(a)    All payments and benefits payable to Executive under this Agreement will be subject  to  appropriate  tax withholding and  other  deductions as to the extent required by applicable law.
(b)    Executive’s and the Company’s obligations hereunder shall continue in full force and effect in  the  event  that  Executive’s  job title,  responsibilities, work location or other conditions of his/her employment with the Company change subsequent to the execution of the Agreement, without the need to execute a new Agreement.  
(c)    Executive’s obligations hereunder to the Company shall apply equally to any of the Company’s current and future subsidiaries, affiliates, divisions, successors and assigns for which Executive performs services or about or from which Executive has access to Confidential Information. 
(d)    Executive’s obligations hereunder shall survive the termination of his/her employment with the Company for any reason, voluntary or involuntary. 
(e)    In the event that Executive breaches any of the provisions of Sections 9, 10 or 11 of this Agreement, to the extent permitted by law, the Restricted Period shall be tolled until such breach has been duly cured, it being the intent of the parties that such period shall be extended by any period of time in which Executive is in violation of such sections.
(f)    Executive agrees to provide a copy of Section 8 through 12 of this Agreement to any subsequent employers or prospective employers during the Restricted Period.  Executive specifically authorizes the Company to notify any  subsequent  employers or prospective employers of Executive of the restrictions on Executive contained in this Agreement and of any concerns the Company may have about actual or possible conduct by Executive that may be in breach of this Agreement Executive agrees to promptly notify the Company of any offers to perform services, any engagements to provide services, and/or actual work of any kind, whether as an individual, proprietor, partner, stockholder, officer, employee, director, consultant, joint venturer, investor, lender, or in any other capacity whatsoever during the Restricted Period. Such notice must be provided prior to the commencement of any such services or work.
(g)    The rights and remedies of the parties under this Agreement are cumulative (not alternative) and in addition to all other rights and remedies available to such parties at law, in equity, by contract or otherwise.

                    
	
			
	
	

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Intending to be legally bound hereby, Executive has signed this Agreement under seal, as of the date set forth below under his/her signature: 

	
		
	EXECUTIVE

Michael Gibertini   
Print Name

/s/ Michael Gibertini   
Signature

Date: 25August 2014   
	INC RESEARCH, LLC

By: /s/ Christopher L. Gaenzle   

Its: CAO & General Counsel   

Date: 25 August 2014Exhibit 4.24

 

  

WARRANT AGENT AGREEMENT

 

WARRANT AGENT AGREEMENT (this “Warrant
Agreement”) dated as of February ___, 2016 (the “Issuance Date”) between LabStyle Innovations Corp.,
a company incorporated under the laws of the State of Delaware (the “Company”), and VStock Transfer, LLC (the
“Warrant Agent”).

 

WHEREAS, pursuant to the terms of that
certain Underwriting Agreement (“Underwriting Agreement”), dated February __, 2016, by and among the Company
and H.C. Wainwright & Co., LLC and Joseph Gunnar & Co., LLC, as representatives of the underwriters set forth therein,
the Company is engaged in a public offering (the “Offering”) of up to ________ shares (the “Shares”)
of common stock, par value $0.0001 per share (the “Common Stock”) of the Company and up to _______ Warrants
(the “Warrants”) to purchase shares of Common Stock (the “Warrant Shares”);

  

WHEREAS, the Company has filed with the
Securities and Exchange Commission (the “Commission”) a Registration Statement, No. 333-209002, on Form S-1
(as the same may be amended from time to time, the “Registration Statement”), for the registration under the
Securities Act of 1933, as amended (the “Securities Act”), of the Shares, Warrants and Warrant Shares, and such
Registration Statement was declared effective on _______, 2016;

 

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

 

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

 

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

 

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

 

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

 

2. Warrants.

 

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

 

2.2. Issuance and Registration of Warrants.

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

 

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

 

3. Terms and Exercise of Warrants.

 

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

 

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

 

3.3. Exercise of Warrants.

 

3.3.1. Exercise and Payment.

(a) Subject to the provisions of this Warrant
Agreement, a Holder (or a Participant acting on behalf of a Holder in accordance with DTC procedures) may exercise Warrants by
(1) delivering to the Warrant Agent, not later than 5:00 P.M., New York City time, on any business day during the Exercise Period
(i) the Warrants to be exercised by (A) surrender of the Warrant Certificate evidencing the Warrants to the Warrant Agent at its
office designated for such purpose or (B) delivery of the Warrants to an account of the Warrant Agent at DTC designated for such
purpose in writing by the Warrant Agent to DTC from time to time, and (ii) an election to purchase the Warrant Shares underlying
the Warrants to be exercised (A) in the form included in Annex B to this Warrant Agreement or (B) via an electronic warrant
exercise through the DTC system (each, an “Election to Purchase”) and (2) delivering to the Company the Exercise
Price for each Warrant to be exercised, in lawful money of the United States of America by certified or official bank check payable
to the Company or bank wire transfer in immediately available funds to ____________________.

 

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

 

     

     

    

 

(c) [Reserved.]

 

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

 

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

 

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

 

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

 

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

 

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

   

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

 

3.3.7 Restrictive Legend Events; Cashless
Exercise Under Certain Circumstances.

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

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

  

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

 

3.3.9 [Reserved.]

   

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

 

     

     

    

 

4. Adjustments.

 

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

 

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

 

     

     

    

 

4.3. Reclassification, Consolidation, Purchase, Combination,
Sale or Conveyance. If, at any time while the Warrants are outstanding, (i) the Company, directly or indirectly, in one or
more related transactions effects any merger or consolidation of the Company with or into another person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock (not including any Common Stock held by the other person or other persons making or party to, or associated
or affiliated with the other persons making, such purchase offer, tender offer or exchange offer), (iv) the Company, directly or
indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock
or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with another person whereby such other person acquires more than 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated or
affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination) (each
a “Fundamental Transaction”), then, upon any subsequent exercise of a Warrant, each Holder shall have the right
to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction (without regard to any limitation in Section 3.3.10 on the exercise of the Warrants), the same amount and
kind of securities, cash or property, if any, of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder of the number of shares of Common Stock for which each Warrant is exercisable immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 3.3.10 on the exercise of the Warrants). For purposes
of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration that such Holder receives upon any exercise of each Warrant following such Fundamental Transaction. The Company shall
cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”)
and for which stockholders received any equity securities of the Successor Entity and for which stockholders received any equity
securities of the Successor Entity, to assume in writing all of the obligations of the Company under this Warrant Agreement in
accordance with the provisions of this Section 4.3 pursuant to written agreements and shall, upon the written request of such Holder,
deliver to such Holder in exchange for the applicable Warrants created by this Warrant Agreement a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to the Warrants which are exercisable for a corresponding
number of shares of capital stock of such Successor Entity (or its parent entity), if any, plus any Alternate Consideration, receivable
as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which the Warrants are exercisable
immediately prior to such Fundamental Transaction, and with an exercise price which applies the Exercise Price hereunder to such
shares of capital stock, if any, plus any Alternate Consideration (but taking into account the relative value of the shares of
Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock plus Alternative consideration
after that Fundamental Transaction for the purpose of protecting the economic value of such Warrant immediately prior to the consummation
of such Fundamental Transaction). Upon the occurrence of any such Fundamental Transaction the Successor Entity shall succeed to,
and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant Agreement
and the Warrants referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right
and power of the Company and shall assume all of the obligations of the Company under this Warrant Agreement and the Warrants with
the same effect as if such Successor Entity had been named as the Company herein and therein.

 

     

     

    

 

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

  

4.4. Adjustment Upon Issuance of Common
Stock. If and whenever on or after the Issuance Date and prior to _____, 20161 (the “Applicable Period”),
the Company issues, sells or delivers, or in accordance with this Section 4 is deemed to have issued, sold or delivered, any Common
Stock (including the issuance, sale or delivery of Common Stock owned or held by or for the account of the Company, but excluding
any Excluded Securities issued or sold or deemed to have been issued, sold or delivered) for a consideration per share less than
a price equal to the Exercise Price in effect immediately prior to such issuance, sale or delivery or deemed issuance, sale or
delivery (such Exercise Price then in effect is referred to as the “Applicable Price”) (the foregoing a “Dilutive
Issuance”), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to the
New Issuance Price (as defined in Section 10).

  

For all purposes of the foregoing (including,
without limitation, determining the adjusted Exercise Price and consideration per share under this Section 4.4), the following
shall be applicable:

 

(i) Issuance of Options. If the
Company grants or sells any Options (other than Options that qualify as Excluded Securities) during the Applicable Period and the
lowest price per share for which one share is issuable upon the exercise of any such Option or upon conversion, exercise or exchange
of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share shall
be deemed to be outstanding and to have been issued and sold or delivered by the Company at the time of the granting or sale of
such Option for the New Issuance Price. For purposes of this Section 4.4(i), the “lowest price per share for which one share
of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities
issuable upon exercise of any such Option” shall be equal to (1) the sum of the lowest amounts of consideration (if any)
received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of such Option, upon
exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option
minus (2) the sum of all amounts paid or payable to the holder of such Option (or any other person or entity) upon the granting
or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable
upon exercise of such Option plus the value of any other consideration received or receivable by, or benefit conferred on, the
holder of such Option (or any other person or entity). Except as contemplated below, no further adjustment of the Exercise Price
shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such
Options.

 

(ii) Issuance of Convertible Securities.
If the Company issues or sells any Convertible Securities (other than Convertible Securities that qualify as Excluded Securities)
during the Applicable Period and the lowest price per share for which one share of Common Stock is issuable upon the conversion,
exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding
and to have been issued and sold or delivered by the Company at the time of the issuance or sale of such Convertible Securities
for the New Issuance Price. For the purposes of this Section 4.4(ii), the “lowest price per share for which one share of
Common Stock is issuable upon the conversion, exercise or exchange thereof” shall be equal to (x) the sum of the lowest amounts
of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or
sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security minus (2) the sum of all
amounts paid or payable to the holder of such Convertible Security (or any other person or entity) upon the issuance or sale of
such Convertible Security plus the value of any other consideration received or receivable by, or benefit conferred on, the holder
of such Convertible Security (or any other person or entity). Except as contemplated below, no further adjustment of the Exercise
Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible
Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment
of Warrants has been or is to be made pursuant to other provisions of this Section 4.4, except as contemplated below, no further
adjustment of the Exercise Price shall be made by reason of such issue, sale or delivery.

 

 

 

 

 

		1	8
month anniversary of Issuance Date

 

     

     

    

 

(iii) Change in Option Price. If
during the Applicable Period the purchase or exercise price provided for in any Options, the additional consideration, if any,
payable upon the issue, conversion, exercise or exchange of any Convertible Securities or the rate at which any Convertible Securities
are convertible into or exercisable or exchangeable for Common Stock increases or decreases at any time, the Exercise Price in
effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been in effect at such
time had such revised terms been in effect. For purposes of this Section 4.4(iii), if the terms of any Option or Convertible Security
that was outstanding as of the original issuance of the Warrants are increased or decreased in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion
or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to
this Section 4.4 shall be made if such adjustment would result in an increase of the Exercise Price then in effect. For purposes
of clarity, if the Company enters into a Variable Rate Transaction (as defined in the Underwriting Agreement), despite the prohibition
thereon in the Underwriting Agreement, the Company shall be deemed to have issued Common Stock, Options or Convertible Securities
at the lowest possible conversion or exercise price at which such securities may be converted or exercised. For purposes herein,
no Variable Rate Transaction shall be Excluded Securities.

 

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

 

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

 

5. Restrictive Legends; Fractional Warrants.

 

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

  

 

     

     

    

 

6. [RESERVED]

 

 

 

 

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

 

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

 

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

 

8. Concerning the Warrant Agent and
Other Matters.

 

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

 

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

 

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

 

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

 

8.3 As agent for the Company hereunder
the Warrant Agent:

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8.11. Except as expressly set forth elsewhere
in this Warrant Agreement, all notices, instructions and communications under this Agreement shall be in writing, shall be effective
upon receipt and shall be addressed, if to the Company, to its address set forth beneath its signature to this Agreement, or, if
to the Warrant Agent, to _____________, Attention:

  

, or to such other address of which a party
hereto has notified the other party.

 

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

 

     

     

    

 

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

 

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

 

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

  

8.14 Resignation of Warrant Agent.

 

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

 

     

     

    

 

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

 

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

 

9. Miscellaneous Provisions.

 

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

 

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

 

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

 

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

 

10. Certain Definitions.

 

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

 

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

 

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

 

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

 

     

     

    

 

(iv). “Excluded Securities”
means (1) Common Stock or options or other rights to purchase Common Stock or other awards issued to directors, officers, employees,
consultants or other service providers of the Company in their capacity as such pursuant to an Approved Stock Plan, provided that
(A) all such issuances (taking into account the Common Stock issuable upon exercise of such options) after the date hereof pursuant
to this clause (i) do not, in the aggregate, exceed more than 15% of the Common Stock issued and outstanding immediately prior
to the date hereof and (B) the exercise price of any such options is not lowered, none of such options are amended to increase
the number of shares issuable thereunder in each case other than pursuant to the terms hereof (including any anti-dilution provisions
contained therein) and none of the terms or conditions of any such options are otherwise materially changed in any manner that
adversely affects any of the holders of Warrants; (2) Common Stock issued upon the conversion or exercise of Convertible Securities
(other than options or other rights to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause
(i) above) issued prior to the date hereof, provided that the conversion price of any such Convertible Securities (other than options
or other rights to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (1) above) is not
lowered through the amendment or waiver of such Convertible Security, none of such Convertible Securities (other than options or
other rights to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (1) above) are amended
to increase the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other
than options or other rights to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (1)
above) are otherwise materially changed in any manner that adversely affects any of the holders of Warrants; (3) Common Stock issuable
upon exercise of the Warrants; and (4) securities issuable in connection with strategic license agreements, other partnering arrangements
or acquisitions or mergers where the purchaser or acquirer of the securities in such issuance solely consists of (A) either (x)
the actual participants in such strategic license, strategic alliance, strategic partnership or other partnering arrangements,
(y) the actual owners of such assets or securities acquired in such acquisition or merger or (z) the stockholders, partners or
members of the foregoing persons or entities and (B) number or amount of securities issued to such person or entity by the Company
shall not be disproportionate (as determined in good faith by the Board of Directors of the Company) to either (x) the fair market
value of such person’s or entity’s actual contribution to such strategic alliance or strategic partnership or (y) the
proportional ownership of such assets or securities to be acquired by the Company, as applicable; provided, that, notwithstanding
the foregoing, such purchaser or acquirer of the securities in such issuance shall not include any person regularly engaged in
the business of buying or selling securities.

 

(v) [RESERVED]

 

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

EP2 = EP1* (A + B)
÷ (A + C).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

(viii) Reserved.

 

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

 

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

 

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

 

     

     

    

 

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

 

	 	LABSTYLE INNOVATIONS CORP.
	 	 
	 	By:	                   
	 	Name: 
	 	Title:
	 	 
	 	Address for notices:
	 	 
	 	 
	 	Attention:
	 	Telephone:
	 	Facsimile:
	 	E-mail:
	 	 	 
	 	___________________
	 	As Warrant Agent
	 	 	 
	 	By:	  
	 	Name:
	 	Title:

 

Annex A Form of Warrant Certificates

Annex B Election to Purchase

Annex C Authorized Representatives

     

     

    

 

ANNEX A

 

[TO
BE INCLUDED IN THE GLOBAL CERTIFICATE]

 

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

 

LABSTYLE INNOVATIONS CORP.

WARRANT CERTIFICATE

NOT EXERCISABLE AFTER ________, 2021

 

This certifies that
the person whose name and address appears below, or registered assigns, is the registered owner of the number of Warrants set forth
below. Each Warrant entitles its registered holder to purchase from LabStyle Innovations Corp., a company incorporated under the
laws of the State of Delaware (the “Company”), at any time prior to 5:00 P.M. (New York City time) on ______,
2021, one share of common stock, par value $0.0001 per share, of the Company (each, a “Warrant Share” and collectively,
the “Warrant Shares”), at an exercise price of $____ per share, subject to possible adjustments as provided
in the Warrant Agreement (as defined below).

 

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

 

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

 

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

 

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

 

	 	LABSTYLE INNOVATIONS CORP.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

	Dated: ______, 2016	 
	Countersigned:	 
	 	 
	__________________,	 
	as Warrant Agent	 
	 	 	 
	By:	               	 
	Name:	 
	Title:	 

 

PLEASE DETACH HERE

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

 

Certificate No.:_________ Number of Warrants:__________

 

WARRANT CUSIP NO.: ___________

 

LABSTYLE INNOVATIONS CORP.

 

	[Name & Address of Holder]	_______________, Warrant

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

 

     

     

    

 

ANNEX B

 

[Form of Election to Purchase]

 

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

 

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

 

OR

 

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

 

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

 

	 	 	Signature
	 	 
	Date:	 	 
	 	 
	 	 	 
	 	 	Signature Guaranteed

 

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

 

     

     

    

 

ANNEX C

 

AUTHORIZED REPRESENTATIVES

 

	Name	 	Title	 	Signature

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