Document:

EX-4.2

 Exhibit 4.2 
  

 
 TransEnterix, Inc. 

and 
 Continental Stock
Transfer & Trust Company, as 
 Warrant Agent 
  

 
 Warrant Agency Agreement 

Dated as of March __, 2020 

 WARRANT AGENCY AGREEMENT 

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

W I T N E S S E T H 
 WHEREAS,
pursuant to a registered offering by the Company of shares of common stock, par value $0.001 per share (the “Common Stock”), Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A Preferred
Stock”) and Series C Common Stock Purchase Warrants and Series D Common Stock Purchase Warrants (collectively, the “Warrants”) to purchase Common Stock made pursuant to an effective registration statement on Form S-3 (File No. 333-217865) (the “Registration Statement”), the Company wishes to issue the Warrants in book entry form entitling the respective holders of
the Warrants (the “Holders”, which term shall include a Holder’s transferees, successors and assigns and “Holder” shall include, if the Warrants are held in “street name,” a Participant (as defined below) or
a designee appointed by such Participant) to purchase an aggregate of up to ____ shares of Common Stock at an exercise price of $___ per share (subject to adjustment as provided in the Warrant) (the “Exercise Price”) upon the terms
and subject to the conditions hereinafter set forth (the “Offering”); 
 WHEREAS, the Series C Common Stock Purchase
Warrant has a one-year term from the date of issuance and the Series D Common Stock Purchase Warrant has a five-year term from the date of issuance, otherwise, the Warrants are identical; 

WHEREAS, the shares of Common Stock, Series A Preferred Stock and Warrants to be issued in connection with the Offering shall be immediately
separable and will be issued separately, but will be purchased together in the Offering; and 
 WHEREAS, the Company wishes the Warrant
Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, registration, transfer, exchange, exercise and replacement of the Warrants and, in the Warrant Agent’s capacity as the
Company’s transfer agent, the delivery of the Warrant Shares (as defined below). 
 NOW, THEREFORE, in consideration of the premises
and the mutual agreements herein set forth, the parties hereby agree as follows: 
 Section 1. Certain Definitions. For purposes
of this Agreement, the following terms have the meanings indicated: 
 (a) “Business Day” means any day except any Saturday,
any Sunday, any day which is a federal legal holiday in the United States or any day on which the New York Stock Exchange is authorized or required by law or other governmental action to close. 

(b) “Close of Business” on any given date means 5:00 p.m., New York City time, on such date; provided, however,
that if such date is not a Business Day it means 5:00 p.m., New York City time, on the next succeeding Business Day. 
 (c)
“Person” means an individual, corporation, association, partnership, limited liability company, joint venture, trust, unincorporated organization, government or political subdivision thereof or governmental agency or other entity.

  
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 (d) “Warrant Certificate” means a certificate issued to a Holder,
representing such number of Warrant Shares as is indicated therein. 
 (e) “Warrant Shares” means the shares of Common Stock
underlying the Warrants and issuable upon exercise of the Warrants. 
 All other capitalized terms used but not otherwise defined herein
shall have the meaning ascribed to such terms in the Warrant. 
 Section 2. Appointment of Warrant Agent. The Company hereby
appoints the Warrant Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Warrant Agent hereby accepts such appointment. The Company may from time to time appoint a
Co-Warrant Agent as it may, in its sole discretion, deem necessary or desirable. The Warrant Agent shall have no duty to supervise, and will in no event be liable for the acts or omissions of, any co-Warrant Agent. 
 Section 3. Global Warrants. 

(a) The Warrants shall be issuable in book entry form (the “Global Warrants”). All of the Warrants shall initially be
represented by one or more Global Warrants deposited with the Warrant Agent and registered in the name of Cede & Co., a nominee of The Depository Trust Company (the “Depositary”), or as otherwise directed by the Depositary.
Ownership of beneficial interests in the Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained by (i) the Depositary or its nominee for each Global Warrant or (ii) institutions that
have accounts with the Depositary (such institution, with respect to a Warrant in its account, a “Participant”). For purposes of Regulation SHO, a holder whose interest in a Global Warrant is a beneficial interest in certificate(s)
representing such Warrant held in book-entry form through the Depositary shall be deemed to have exercised its interest in such Warrant upon instructing its broker that is a Participant to exercise its interest in such Warrant, provided that in each
such case payment of the applicable aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two trading days and (ii) the number of trading days comprising the Standard Settlement
Period, in each case following such instruction. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of trading days, on the Company’s primary trading market with respect to the
Common Stock as in effect on the date of delivery of the Exercise Notice. 
 (b) If the Depositary subsequently ceases to make its book-entry
settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding other arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary to have the Warrants
available in, book-entry form, the Warrant Agent shall provide written instructions to the Depositary to deliver to the Warrant Agent for cancellation each Global Warrant, and the Company shall instruct the Warrant Agent to deliver to each Holder a
Warrant Certificate. 
 (c) A Holder has the right to elect at any time or from time to time a Warrant Exchange (as defined below) pursuant
to a Warrant Certificate Request Notice (as defined below). Upon written notice by a Holder to the Warrant Agent for the exchange of some or all of such Holder’s Global Warrants for a Warrant Certificate (in the form set forth in Exhibit 1
hereto) evidencing the same number of Warrants, which request shall be in the form attached hereto as Annex A (a “Warrant Certificate Request Notice” and the date of delivery of such Warrant Certificate Request Notice by the
Holder, the “Warrant Certificate Request Notice Date” and the deemed surrender upon delivery by the Holder of a number of Global Warrants for the same number of Warrants evidenced by a Warrant Certificate, a “Warrant
Exchange”), the Warrant Agent shall promptly effect the Warrant Exchange and shall promptly issue and deliver to the Holder a Warrant Certificate for such number of Warrants in the name set forth in the

  
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Warrant Certificate Request Notice. Such Warrant Certificate shall be dated the original issue date of the Warrants and shall be manually executed by an authorized signatory of the Company. In
connection with a Warrant Exchange, the Company agrees to deliver, or to direct the Warrant Agent to deliver, the Warrant Certificate to the Holder within three (3) Business Days of the Warrant Certificate Request Notice pursuant to the
delivery instructions in the Warrant Certificate Request Notice (“Warrant Certificate Delivery Date”). If the Company fails for any reason to deliver to the Holder the Warrant Certificate subject to the Warrant Certificate Request
Notice by the Warrant Certificate Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares evidenced by such Warrant Certificate (based on the VWAP (as defined in the
Warrant) of the Common Stock on the Warrant Certificate Request Notice Date), $10 per Business Day for each Business Day after such Warrant Certificate Delivery Date until such Warrant Certificate is delivered or, prior to delivery of such Warrant
Certificate, the Holder rescinds such Warrant Exchange. The Company covenants and agrees that, upon the date of delivery of the Warrant Certificate Request Notice, the Holder shall be deemed to be the holder of the Warrant Certificate and,
notwithstanding anything to the contrary set forth herein, the Warrant Certificate shall be deemed for all purposes to contain all of the terms and conditions of the Warrants evidenced by such Warrant Certificate and be subject to the terms of this
Agreement that are applicable, other than this Section 3(c), which shall not apply to the Warrants evidenced by a Warrant Certificate. In the event a beneficial owner requests a Warrant Exchange, upon issuance of the paper Warrant Certificate,
the Company shall act as warrant agent and the terms of the paper Warrant Certificate so issued shall exclusively govern in respect thereof. 

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

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

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

Section 6. Transfer, Split Up, Combination and Exchange of Warrant Certificates; Mutilated, Destroyed, Lost or Stolen Warrant
Certificates. Subject to the provisions of the Warrant and the last sentence of this first paragraph of Section 6 and subject to applicable law, rules or regulations, or any “stop transfer” instructions the Company may give to the
Warrant Agent, at any time after the closing date of the Offering, and at or prior to the Close of Business on the Termination Date, any Warrant Certificate or Warrant Certificates or Global Warrant or Global Warrants may be transferred, split up,

  
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combined or exchanged for another Warrant Certificate or Warrant Certificates or Global Warrant or Global Warrants, entitling the Holder to purchase a like number of shares of Common Stock as the
Warrant Certificate or Warrant Certificates or Global Warrant or Global Warrants surrendered then entitled such Holder to purchase. Any Holder desiring to transfer, split up, combine or exchange any Warrant Certificate or Global Warrant shall make
such request in writing delivered to the Warrant Agent, and shall surrender the Warrant Certificate or Warrant Certificates to be transferred, split up, combined or exchanged at the principal office of the Warrant Agent, provided that no such
surrender is applicable to the Holder of a Global Warrant. Any requested transfer of Warrants, whether a Global Warrant or a Warrant Certificate, shall be accompanied by reasonable evidence of authority of the party making such request that may be
required by the Warrant Agent. Thereupon the Warrant Agent shall, subject to the last sentence of this first paragraph of Section 6, countersign and deliver to the Person entitled thereto any Warrant Certificate or Global Warrant, as the case
may be, as so requested. The Company may require payment from the Holder of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Warrants. The Company
shall compensate the Warrant Agent per the fee schedule mutually agreed upon by the parties hereto and provided separately on the date hereof. 

Upon receipt by the Warrant Agent of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of a Warrant
Certificate, which evidence shall include an affidavit of loss, or in the case of mutilated certificates, the certificate or portion thereof remaining, and, in case of loss, theft or destruction, of indemnity in customary form and amount, and
satisfaction of any other reasonable requirements established by Section 8-405 of the Uniform Commercial Code as in effect in the State of Delaware, and reimbursement to the Company and the Warrant Agent
of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate if mutilated, the Company will make and deliver a new Warrant Certificate of like tenor to the Warrant Agent for
delivery to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated. 
 Section 7. Exercise of
Warrants; Exercise Price; Termination Date. 
 (a) The Warrants shall be exercisable commencing on the Initial Exercise Date. The
Warrants shall cease to be exercisable and shall terminate and become void, and all rights thereunder and under this Agreement shall cease, at or prior to the Close of Business on the Termination Date. Subject to the foregoing and to
Section 7(b) below, the Holder of a Warrant may exercise the Warrant in whole or in part upon providing the items required by Section 7(c) below to the Warrant Agent at the principal office of the Warrant Agent or to the office of one of
its agents as may be designated by the Warrant Agent from time to time. In the case of the Holder of a Global Warrant, the Holder shall deliver the executed Exercise Notice and payment of the Exercise Price pursuant to Section 2(a) of the
Warrant. Notwithstanding any other provision in this Agreement, a holder whose interest in a Global Warrant is a beneficial interest in a Global Warrant held in book-entry form through the Depositary (or another established clearing corporation
performing similar functions), shall effect exercises by delivering to the Depositary (or such other clearing corporation, as applicable) the appropriate instruction form for exercise, complying with the procedures to effect exercise that are
required by the Depositary (or such other clearing corporation, as applicable). The Company acknowledges that the bank accounts maintained by the Warrant Agent in connection with the services provided under this Agreement will be in its name and
that the Warrant Agent may receive investment earnings in connection with the investment at Warrant Agent risk and for its benefit of funds held in those accounts from time to time. Neither the Company nor the Holders will receive interest on any
deposits or Exercise Price. No ink original Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Exercise Notice be required. 

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

(c) Upon the Warrant Agent’s receipt, at or prior to the Close of Business on the Termination Date set forth in a Warrant, of (i) the
executed Exercise Notice, (ii) payment of the Exercise Price pursuant to Section 2(a) of the Warrant for the shares to be purchased (other than in the case of a Cashless Exercise), and an amount equal to any applicable tax, governmental
charge or expense reimbursement referred to in Section 6, in cash or by certified check or bank draft payable to the order of the Warrant Agent, and (iii) in the case of an exercise of a Warrant in the form of a Warrant Certificate for all
of the Warrant Shares represented thereby, the Warrant Certificate, then the Warrant Agent shall cause the Warrant Shares underlying such Warrant to be delivered to or upon the order of the Holder of such Warrant, registered in such name or names as
may be designated by such Holder, no later than the Warrant Share Delivery Date. If the Company is then a participant in the DWAC system of the Depositary and either (A) there is an effective registration statement permitting the issuance of
the Warrant Shares to or resale of the Warrant Shares by Holder or (B) the Warrant is being exercised via Cashless Exercise, then the certificates for Warrant Shares shall be transmitted by the Warrant Agent to the Holder by crediting the
account of the Holder’s broker with the Depositary through its DWAC system. For the avoidance of doubt, if the Company becomes obligated to pay any amounts to any Holders pursuant to Section 2(d)(i) or 2(d)(iv) of the Warrant, such
obligation shall be solely that of the Company and not that of the Warrant Agent. Notwithstanding anything else to the contrary in this Agreement, except in the case of a Cashless Exercise, if any Holder fails to duly deliver payment to the Warrant
Agent of an amount equal to the aggregate Exercise Price of the Warrant Shares to be purchased upon exercise of such Holder’s Warrant as set forth in Section 7(a) hereof, the Warrant Agent will not obligated to deliver certificates
representing any such Warrant Shares (via DWAC or otherwise) until following receipt of such payment, and the applicable Warrant Share Delivery Date shall be deemed extended by one day for each day (or part thereof) until such payment is delivered
to the Warrant Agent. 
 (d) The Warrant Agent shall deposit all funds received by it in payment of the Exercise Price for all Warrants in
the account of the Company maintained with the Warrant Agent for such purpose (or to such other account as directed by the Company in writing) and shall advise the Company via telephone at the end of each day on which funds for the exercise of any
Warrant are received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephonic advice to the Company in writing. 

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

Section 8. Cancellation and Destruction of Warrant Certificates. All Warrant Certificates surrendered for the purpose of exercise,
transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Warrant Agent for cancellation or in canceled form, or, if surrendered to the Warrant Agent, shall be canceled by it, and
no Warrant Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Warrant Agent for cancellation and retirement, and the Warrant Agent shall so cancel
and retire, any other Warrant Certificate purchased or acquired by the Company otherwise than 

  
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upon the exercise thereof. The Warrant Agent shall deliver all canceled Warrant Certificates to the Company, or shall, at the written request of the Company, destroy such canceled Warrant
Certificates, and in such case shall deliver a certificate of destruction thereof to the Company, subject to any applicable law, rule or regulation requiring the Warrant Agent to retain such canceled certificates. 

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

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

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

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

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

Section 10. Common Stock Record Date. Each Holder shall be deemed to have become the holder of record for the Warrant Shares
pursuant to Section 2(d)(i) of the Warrants. 
 Section 11. Adjustment of Exercise Price, Number of Shares of Common Stock or
Number of the Company Warrants. The Exercise Price, the number of shares covered by each Warrant and the number of Warrants outstanding are subject to adjustment from time to time as provided in Section 3 of the Warrant. In the event that
at any time, as a result of an adjustment made pursuant to Section 3 of the Warrant, the Holder of any Warrant thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock,
thereafter the number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares
contained in Section 3 of the Warrant, and the provisions of Sections 7, 9 and 13 of this Agreement with respect to the shares of Common Stock shall apply on like terms to any such other shares. All Warrants originally

  
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issued by the Company subsequent to any adjustment made to the Exercise Price pursuant to the Warrant shall evidence the right to purchase, at the adjusted Exercise Price, the number of shares of
Common Stock purchasable from time to time hereunder upon exercise of the Warrants, all subject to further adjustment as provided herein. 

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

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

(b) The Company shall not issue fractions of shares of Common Stock upon exercise of Warrants or distribute stock certificates that evidence
fractional shares of Common Stock. Whenever any fraction of a share of Common Stock would otherwise be required to be issued or distributed, the actual issuance or distribution in respect thereof shall be made in accordance with Section 2(d)(v)
of the Warrant. 
 Section 14. Conditions of the Warrant Agent’s Obligations. The Warrant Agent accepts its obligations
herein set forth upon the terms and conditions hereof, including the following to all of which the Company agrees and to all of which the rights hereunder of the Holders from time to time of the Warrant shall be subject: 

 

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

  

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

 

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

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

  

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

  

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

  

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

  

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

 

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

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

  
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shall not have been countersigned, any successor Warrant Agent may countersign such Warrants either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and
in all such cases such Warrants shall have the full force provided in the Warrants and in this Agreement. 
 In case at any time the name of
the Warrant Agent shall be changed and at such time any of the Warrants shall have been countersigned but not delivered, the Warrant Agent may adopt the countersignature under its prior name and deliver Warrants so countersigned; and in case at that
time any of the Warrants shall not have been countersigned, the Warrant Agent may countersign such Warrants either in its prior name or in its changed name; and in all such cases such Warrants shall have the full force provided in the Warrants and
in this Agreement. 
 Section 16. Duties of Warrant Agent. The Warrant Agent undertakes the duties and obligations imposed by
this Agreement upon the following terms and conditions, by all of which the Company, by its acceptance hereof, shall be bound: 
 (a) The
Warrant Agent may consult with legal counsel reasonably acceptable to the Company (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Warrant Agent as to any
action taken or omitted by it in good faith and in accordance with such opinion. 
 (b) Whenever in the performance of its duties under this
Agreement the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chief Executive Officer, Chief Financial Officer or Chief Legal Officer of the Company; and such certificate shall be full
authentication to the Warrant Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate. 

(c) Subject to the limitation set forth in Section 14, the Warrant Agent shall be liable hereunder only for its own gross negligence, bad
faith or willful misconduct, or for a breach by it of this Agreement. 
 (d) The Warrant Agent shall not be liable for or by reason of any of
the statements of fact or recitals contained in this Agreement or in the Warrants (except its countersignature thereof) by the Company or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made
by the Company only. 
 (e) The Warrant Agent shall not be under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by the Warrant Agent) or in respect of the validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible for the adjustment of the Exercise Price or the making of any change in the number of shares of Common Stock required under the provisions of
Section 11 or 13 or responsible for the manner, method or amount of any such change or the ascertaining of the existence of facts that would require any such adjustment or change (except with respect to the exercise of Warrants evidenced by
Warrant Certificates after actual notice of any adjustment of the Exercise Price); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued
pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock will, when issued, be duly authorized, validly issued, fully paid and nonassessable. 

  
 10 

 (f) Each party hereto agrees that it will perform, execute, acknowledge and deliver or cause
to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the other party hereto for the carrying out or performing by any party of the provisions of this
Agreement. 
 (g) The Warrant Agent is hereby authorized to accept instructions with respect to the performance of its duties hereunder from
the Chief Executive Officer, Chief Financial Officer or Chief Legal Officer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable and shall be indemnified and held harmless
for any action taken or suffered to be taken by it in good faith in accordance with instructions of any such officer, provided Warrant Agent carries out such instructions without gross negligence, bad faith or willful misconduct. 

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

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

  
 11 

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

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

	 	(a)	 If to the Company, to: 

TransEnterix, Inc. 
 635 Davis
Drive, Suite 300 
 Morrisville, North Carolina 27560 

Attention: Chief Executive Officer and Chief Legal Officer 
  

	 	(b)	 If to the Warrant Agent, to: 

Continental Stock Transfer & Trust Company 

1 State Street, 30th Floor 

New York, New York 10004 

Attention: Steven Vacante 
 For
any notice delivered by email to be deemed given or made, such notice must be followed by notice sent by overnight courier service to be delivered on the next business day following such email, unless the recipient of such email has acknowledged via
return email receipt of such email. 
 (c) If to the Holder of any Warrant Certificate, to the address of such Holder as shown on the
registry books of the Company. Any notice required to be delivered by the Company to the Holder of any Warrant may be given by the Warrant Agent on behalf of the Company. Notwithstanding any other provision of this Agreement, where this Agreement
provides for notice of any event to a Holder of any Warrant Certificate, for a Global Warrant, such notice shall be sufficiently given if given to the Depositary (or its designee) pursuant to the procedures of the Depositary or its designee. 

  
 12 

 Section 20. Supplements and Amendments. 

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

(b) In addition to the foregoing, with the consent of Holders of Warrants, the Company and the Warrant Agent may modify this Agreement for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Warrant Agreement or modifying in any manner the rights of the Holders of the Warrant Certificates; provided, however, that no
modification of the terms (including but not limited to the adjustments described in Section 11) upon which the Warrants are exercisable or reducing the percentage required for consent to modification of this Agreement may be made without the
consent of the Holder of each outstanding warrant certificate affected thereby. As a condition precedent to the Warrant Agent’s execution of any amendment, the Company shall deliver to the Warrant Agent a certificate from a duly authorized
officer of the Company that states that the proposed amendment complies with the terms of this Section 20. Notwithstanding the foregoing, no amendment under this Section 20 will affect any terms of any Warrant Certificate issued in a
Warrant Exchange. 
 Section 21. Successors. All covenants and provisions of this Agreement by or for the benefit of the Company
or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
 Section 22.
Benefits of this Agreement. Nothing in this Agreement shall be construed to give any Person other than the Company, the Holders of Warrant Certificates and the Warrant Agent any legal or equitable right, remedy or claim under this Agreement;
but this Agreement shall be for the sole and exclusive benefit of the Company, the Warrant Agent and the Holders of the Warrant Certificates. 

Section 23. Governing Law. This Agreement and each Warrant issued hereunder shall be governed by, and construed in accordance
with, the laws of the State of New York without giving effect to the conflicts of law principles thereof. 
 Section 24.
Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 Section 25. Captions. The captions of the sections of this Agreement have been inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof. 
 Section 26. Information. The Company agrees to
promptly provide to the Holders of the Warrants any information it provides to all holders of the Common Stock, except to the extent any such information is publicly available on the EDGAR system (or any successor thereof) of the Securities and
Exchange Commission. 

  
 13 

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

[Signature page follows.] 

  
 14 

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

			
	TRANSENTERIX, INC.
		
	By:	 	
                 

	Name:
	Title:
	
	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
		
	By:	 	
                 

	Name:
	Title:

 [Signature page to Warrant Agency Agreement] 

 Annex A: Form of Warrant Certificate Request Notice 

WARRANT CERTIFICATE REQUEST NOTICE 
 To:
Continental Stock Transfer & Trust Company, as Warrant Agent for TransEnterix, Inc. (the “Company”) 
 The undersigned Holder of [Series
C] [Series D] Common Stock Purchase Warrants (“Warrants”) in the form of Global Warrants issued by the Company hereby elects to receive a Warrant Certificate evidencing the Warrants held by the Holder as specified below: 

 

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

 

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

  

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

 

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

 

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

  

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

 
  

 
  

 
  

 
  

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

	
	 [SIGNATURE OF HOLDER]

	
	 Name of Investing Entity:
  

____________________________________________________

	
	 Signature of Authorized Signatory of Investing Entity:

_________________________________________

	
	 Name of Authorized Signatory:

________________________________________________

	
	 Title of Authorized Signatory:

________________________________________________

 Date: _______________________________________________________________ 

 Exhibit 1: Form of Warrant 

 Exhibit 2: Warrant Agent FeesExhibit 4.1

 

THIS INTEREST HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR UNDER THE SECURITIES LAWS OF ANY STATES IN THE UNITED STATES. THIS INTEREST IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM.

 

ROYALTY INTEREST

 

	Effective Date: March 4, 2020	U.S.
$500,000.00

 

FOR
VALUE RECEIVED, Jaguar Health, Inc., a Delaware corporation (“Company”),
promises to pay to Iliad Research and Trading, L.P., a Utah limited partnership,
or its successors or assigns (“Investor”), $500,000.00 and any interest, fees, and charges in accordance with
the terms set forth herein (the “Royalty Repayment Amount”) and to pay interest on the Royalty Repayment
Amount at the rate of ten percent (10%) per annum from the Purchase Price Date until the same is paid in full. This Royalty Interest
(this “Interest”) is issued and made effective as of March 4, 2020 (the “Effective Date”).
This Interest is issued pursuant to that certain Royalty Interest Purchase Agreement dated March 4, 2020, as the same may
be amended from time to time, by and between Company and Investor (the “Purchase Agreement”). All interest calculations
hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound
daily and shall be payable in accordance with the terms of this Interest. Certain capitalized terms used herein are defined in
Attachment 1 attached hereto and incorporated herein by this reference.

 

Company agrees to pay
$10,000.00 to Investor to cover Investor’s legal fees, accounting costs, due diligence, monitoring and other transaction
costs incurred in connection with the purchase and sale of this Interest, which amount is included in the initial balance of this
Interest.

 

1.            Payment;
Prepayment.

 

1.1.           Payment.
All payments owing hereunder shall be in lawful money of the United States of America as provided for herein, and delivered
to Investor at the address or bank account furnished to Company for that purpose. All payments shall be applied first to (a) costs
of collection, if any, then to (b) fees and charges, if any, then to (c) accrued and unpaid interest, and thereafter,
to (d) principal.

 

1.2.           Prepayment.
Company may repay the Royalty Repayment Amount at any time without penalty.

 

2.            Royalty.

 

2.1.           Royalty
Payments. Until such time as the Royalty Repayment Amount has been paid in full, Company will pay Investor ten percent (10%)
of Company’s Net Sales on Included Products and ten percent (10%) of worldwide revenues related to upfront licensing fees
and milestone payments from licensees and/or distributors, but specifically excluding licensing fees and/or milestone payments
that are reimbursements of clinical trial expenses (“Royalty Payments”). Company shall pay the Royalty Payments
in arrears on the tenth (10th) day of each month for the prior month. For the avoidance of doubt, the first Royalty
Payment will be due on April 10, 2020 (on a pro-rated basis for the month of March).

 

     

     

    

 

2.2.           Minimum
Royalty Payment. Beginning on the six-month anniversary of the Purchase Price Date and continuing until the 12-month anniversary
of the Purchase Price Date, the monthly Royalty Payment shall be the greater of (a) $25,000.00, and (b) the actual Royalty
Payment amount Investor is entitled to for such month pursuant to Section 2.1 above. Beginning on the 12-month anniversary
of the Purchase Price Date and continuing until the Revenue Repayment Amount has been paid in full, the monthly Royalty Payment
shall be the greater of (a) $43,750.00, and (b) the actual Royalty Payment amount Investor is entitled to for such month
pursuant to Section 2.1 above.

 

3.            Defaults
and Remedies.

 

3.1.           Defaults.
The following are events of default under this Interest (each, an “Event of Default”): (a) Company fails
to pay any principal or any interest, fees, charges, or any other amount when due and payable hereunder, which default remains
uncured for a period of three (3) Business Days; (b) a receiver, trustee or other similar official shall be appointed
over Company or a material part of its assets and such appointment shall remain uncontested for thirty (30) calendar days or shall
not be dismissed or discharged within sixty (60) calendar days; (c) [INTENTIONALLY LEFT BLANK]; (d) Company makes a general
assignment for the benefit of creditors; (e) Company files a petition for relief under any bankruptcy, insolvency or similar
law (domestic or foreign); (f) an involuntary bankruptcy proceeding is commenced or filed against Company which is not dismissed
or discharged within sixty (60) calendar days; (g) Company defaults or otherwise fails to observe or perform any covenant,
obligation, condition or agreement of Company contained herein or in any other Transaction Document (as defined in the Purchase
Agreement), other than those specifically set forth in this Section 3.1 and Section 4 of the Purchase Agreement, which
default continues for a period of thirty (30) calendar days following notice by Investor to Company thereof; (h) any representation,
warranty or other statement made or furnished by or on behalf of Company to Investor herein or in any Transaction Document, is
false, incorrect, incomplete or misleading in any material respect when made or furnished; (i) the occurrence of a Fundamental
Transaction without Investor’s prior written consent, such consent shall not be unreasonably withheld; (j) Company effectuates
a reverse split of its common stock, $0.0001 par value per share (“Common Stock”), without twenty (20) Business
Days prior written notice to Investor (other than such splits effectuated to remain listed with NASDAQ); (k) any money judgment,
writ or similar process is entered or filed against Company or any subsidiary of Company or any of its property or other assets
for more than $1,000,000.00, and shall remain unpaid, unvacated, unbonded or unstayed for a period of thirty (30) calendar days
unless otherwise consented to by Investor; (l) Company fails to observe or perform any covenant set forth in Section 4
of the Purchase Agreement, which default continues for a period of thirty (30) calendar days following the occurrence of the applicable
breach; or (m) Company breaches any covenant or other term or condition contained in any Other Agreements, which default continues
for a period of thirty (30) calendar days following notice by Investor to Company thereof.

 

3.2.           Remedies.
At any time following the occurrence of any Event of Default, Investor may, at its option, elect to increase the Royalty Repayment
Amount by applying the Default Effect (subject to the limitation set forth below) via written notice to Company without accelerating
the Royalty Repayment Amount, in which event the Royalty Repayment Amount shall be increased as of the date of the occurrence of
the applicable Event of Default pursuant to the Default Effect. At any time following the occurrence of any Event of Default, upon
written notice given by Investor to Company, interest shall accrue on the Royalty Repayment Amount beginning on the date the applicable
Event of Default occurred at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable
law (“Default Interest”). Nothing herein shall limit Investor’s right to pursue any other remedies available
to it at law or in equity.

 

4.            Unconditional
Obligation; No Offset. Company acknowledges that this Interest is an unconditional, valid, binding and enforceable obligation
(except as may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights and by general
principles of equity) of Company not subject to offset, deduction or counterclaim of any kind. Company hereby waives any rights
of offset it now has or may have hereafter against Investor, its successors and assigns, and agrees to make the payments called
for herein in accordance with the terms of this Interest.

 

    2

     

    

 

5.            Waiver.
No waiver of any provision of this Interest shall be effective unless it is in the form of a writing signed by the party granting
the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or
consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent
or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.

 

6.            Payment
of Collection Costs. If this Interest is placed in the hands of an attorney for collection or enforcement prior to commencing
arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Investor otherwise
takes action to collect amounts due under this Interest or to enforce the provisions of this Interest, then Company shall pay the
reasonable and documented out-of-pocket costs incurred by Investor for such collection, enforcement or action including, without
limitation, reasonable and documented attorneys’ fees and disbursements.

 

7.            Governing
Law; Venue. This Interest shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Interest shall be governed by, the internal laws of the State of Utah, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the
Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

8.           Arbitration
of Disputes. By its acceptance of this Interest, each party agrees to be bound by the Arbitration Provisions (as defined in
the Purchase Agreement) set forth in the Purchase Agreement.

 

9.           Cancellation.
After repayment of the entire Royalty Repayment Amount, this Interest shall be deemed paid in full, shall automatically be deemed
canceled, and shall not be reissued.

 

10.         Amendments.
The prior written consent of both parties hereto shall be required for any change or amendment to this Interest.

 

11.         Assignments.
Company may not assign this Interest without the prior written consent of Investor. This Interest may not be offered, sold, assigned
or transferred by Investor without the prior written consent of Company, which consent shall not be unreasonably withheld.

 

12.         Time
is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Interest and the
documents and instruments entered into in connection herewith.

 

13.         Notices.
Whenever notice is required to be given under this Interest, unless otherwise provided herein, such notice shall be given in accordance
with the subsection of the Purchase Agreement titled “Notices.”

 

14.         Liquidated
Damages. Investor and Company agree that in the event Company fails to comply with any of the terms or provisions of this Interest, Investor’s
damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’ inability to
predict future interest rates, future share prices, future trading volumes and other relevant factors. Accordingly, Investor
and Company agree that any fees, balance adjustments, Default Interest or other charges assessed under this Interest are
not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages.

 

    3

     

    

 

15.         Waiver
of Jury Trial. EACH OF INVESTOR AND COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS INTEREST OR THE RELATIONSHIPS OF THE PARTIES HERETO
BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING
SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

16.         Voluntary
Agreement. Company has carefully read this Interest and has asked any questions needed for Company to understand the terms,
consequences and binding effect of this Interest and fully understand them. Company has had the opportunity to seek the advice
of an attorney of Company’s choosing, or has waived the right to do so, and is executing this Interest voluntarily and without
any duress or undue influence by Investor or anyone else.

 

17.         Severability.
If any part of this Interest is construed to be in violation of any law, such part shall be modified to achieve the objective of
Company and Investor to the fullest extent permitted by law and the balance of this Interest shall remain in full force and effect.

 

[Remainder of page intentionally
left blank; signature page follows]

 

    4

     

    

 

IN WITNESS WHEREOF,
Company has caused this Interest to be duly executed as of the Effective Date.

 

	 	COMPANY:

		 

		Jaguar Health, Inc.

 

	 	By:	/s/ Lisa Conte

	 	Name:	Lisa Conte

	 	Title:	President and CEO

 

ACKNOWLEDGED, ACCEPTED AND AGREED:

 

INVESTOR:

 

Iliad
Research and Trading, L.P.

 

By: Iliad Management, LLC, its General
Partner

 

		By:	Fife Trading, Inc., its Manager

 

	 	By:	/s/ John M. Fife	 
	 	 	John M. Fife, President

 

[Signature Page to Royalty Interest]

 

    

     

    

 

ATTACHMENT 1

 

DEFINITIONS

 

For
purposes of this Interest, the following terms shall have the following meanings:

 

A1.       “Business
Day” means any day other than a Saturday, Sunday or any day on which banks located in the State of California or Utah
are authorized or obligated to close.

 

A2.       “Default
Effect” means multiplying the Royalty Repayment Amount as of the date the applicable Event of Default occurred by 15%.

 

A3.       “Fundamental
Transaction” means that, except in connection with the transactions contemplated by the Merger Agreement and the S-4
Transactions, (a) (i) Company shall, directly or indirectly, in one or more related transactions, consolidate or merge
with or into (whether or not Company or any of its subsidiaries is the surviving corporation) any other person or entity, or (ii) Company
shall, directly or indirectly, in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise
dispose of all or substantially all of its respective properties or assets to any other person or entity, or (iii) Company
or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, allow any other person or entity
to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of voting
stock of Company (not including any shares of voting stock of Company held by the person or persons making or party to, or associated
or affiliated with the persons or entities making or party to, such purchase, tender or exchange offer), or (iv) Company shall,
directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or
entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of Company (not including
any shares of voting stock of Company held by the other persons or entities making or party to, or associated or affiliated with
the other persons or entities making or party to, such stock or share purchase agreement or other business combination), or (v) Company
shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize or reclassify the Common Stock, other
than an increase in the number of authorized shares of Company’s Common Stock, or (b)  any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act),
directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of Company.
Notwithstanding the foregoing, a Fundamental Transaction shall not include any transaction where Company, directly or indirectly,
in one or more related transactions, including, without limitation, business development transactions entered into for the purpose
of licensing any or all of Company’s technology or products, consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
person or entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of Company
if such person or entity agrees to a non-disturb of the terms of this Interest and such person or entity has the ability to fulfill
the obligations of this Interest.

 

A4.       “Included
Products” means the pharmaceutical drug known as Mytesi, including any improvements or modifications thereto and any
follow-on products, owned or controlled by Company, including Lechlemer for any indications that would cannibalize Mytesi indication(s) or
any other chronic indication. For the avoidance of doubt, this includes without limitation any future indications for which Mytesi
is approved, such as cancer therapy-related diarrhea and irritable bowel syndrome, among others.

 

A5.       “Merger
Agreement” means the Agreement and Plan of Merger, dated March 31, 2017, by and among Napo Pharmaceuticals, Inc.,
a Delaware corporation, Company and Napo Acquisition Corporation, a Delaware corporation, as amended.

 

A6.       “Net
Sales” means, with respect to any given period, the gross amount invoiced for the sale of the Included Products to unaffiliated
third parties (other than sublicensees) (the “Invoiced Sales”) less deductions for:

 

6.1.           normal
and customary trade, quantity and cash discounts and sales returns and allowances, including (i) those granted on account
of price adjustments, billing errors, rejected goods, damaged goods and returns, (ii) administrative and other fees and reimbursements
and similar payments to wholesalers and other distributors, buying groups, pharmacy benefit management organizations, health care
insurance carriers and other institutions, (iii) allowances, rebates and fees paid to distributors, and (iv) chargebacks;

 

Attachment
1 to Secured Promissory Interest, Page 1

 

    

     

    

 

6.2.           freight,
postage, shipping and insurance expenses to the extent that such items are included in the Invoiced Sales;

 

 

6.3.           customs
and excise duties and other duties related to the sales to the extent that such items are included in the Invoiced Sales;

 

6.4.           rebates
and similar payments made with respect to sales paid for by any governmental or regulatory authority such as, by way of illustration
and not in limitation of the parties’ rights hereunder Federal or state Medicaid, Medicare or similar state program or equivalent
foreign governmental program;

 

6.5.           sales
and other taxes and duties directly related to the sale or delivery of Included Products (but not including taxes assessed against
the income derived from such sale);

 

6.6.           any
other similar and customary deductions that are consistent with GAAP, or in the case of non-United States sales, other applicable
accounting standards;

 

6.7.           distribution
expenses to the extent that such items are included in the Invoiced Sales; and

 

6.8.           any
such invoiced amounts that are not collected by Company or its affiliates.

 

For purposes of determining Net Sales,
the Included Products shall be deemed to be sold when invoiced and a “sale” shall not include transfers or dispositions
for charitable, promotional, pre-clinical, clinical, regulatory or governmental purposes to the extent no amount is received by
Company, its affiliates, or sublicensees in connection therewith.

 

For purposes of calculating Net Sales,
sales between or among Company, its affiliates and its sublicensees shall be excluded from the computation of Net Sales, but sales
by Company, its affiliates or its sublicensees to third parties (other than sublicensees) shall be included in the computation
of Net Sales.

 

A7.       “Other
Agreements” means, collectively, (a) all existing and future agreements and instruments between, among or by Company
(or an affiliate), on the one hand, and Investor (or an affiliate), on the other hand, and (b) any financing agreement or
a material agreement that affects Company’s ongoing business operations.

 

A8.       “Purchase
Price Date” means the date the Purchase Price (as defined in the Purchase Agreement) is delivered by Investor to Company.

 

A9.       “S-4
Transactions” means any and all transactions individually or in the aggregate and documents and agreements referenced
and/or filed as exhibits as disclosed or contemplated in that certain Form S-4 Registration Statement relating to Company
and filed with the United States Securities and Exchange Commission on April 18, 2017, as amended, modified or supplemented
from time to time.

 

Attachment
1 to Secured Promissory Interest, Page 2

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