Document:

nbhc_Ex10_15

		
			Exhibit 10.15 
		

		
			 
		

		
			2014 Omnibus Incentive Plan 
Nonqualified Stock Option Agreement
		

		
			THIS OPTION AGREEMENT (this “Agreement”), dated as of the date indicated in the attached Schedule (the “Date of Grant”), is made by and between National Bank Holdings Corporation, a Delaware corporation (“NBHC”), and the participant indicated in the attached Schedule (“Participant”).  Capitalized terms used herein without definition have the meanings ascribed to such terms in the National Bank Holdings Corporation 2014 Omnibus Incentive Plan (the “Plan”).
		

		
			WHEREAS, NBHC has adopted the Plan pursuant to which Nonqualified Stock Options may be granted to purchase shares of Common Stock; and
		

		
			WHEREAS, the Committee has determined that it would be in the best interests of NBHC and its shareholders to grant Participant Nonqualified Stock Options on the terms and subject to the conditions set forth in this Agreement and the Plan.
		

		
			NOW, THEREFORE, in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:
		

			
	
			
				 1.
			

			
	
			
			Grant of Option.

			
	
			
				 (a)
			

			
	
			
			Grant.  NBHC hereby grants to Participant a Nonqualified Stock Option (the “Option” and any portion thereof, the “Options”) to purchase the number of shares of Common Stock indicated in the attached Schedule (such shares of Common Stock, the “Shares”), on the terms and subject to the conditions set forth in this Agreement and as otherwise provided in the Plan.  The Option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

			
	
			
				 (b)
			

			
	
			
			Incorporation by Reference, Etc.  The provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan.

			
	
			
				 2.
			

			
	
			
			Option; Option Price.

			
	
			
				 (a)
			

			
	
			
			Option Price.  The option price, being the price at which Participant shall be entitled to purchase the Shares upon the exercise of all or any of the Options, shall be the share price indicated in the attached Schedule per Share (the “Option Price”).

			
	
			
				 (b)
			

			
	
			
			Payment of the Option Price.  The Option may be exercised only by written notice, substantially in the form provided by NBHC, delivered in accordance with Section ‎11(d) and accompanied by payment of the Option Price.  The aggregate Option Price shall be payable in cash, or, to the extent permitted by the Committee, by any of the other methods permitted under Section 5(g) of the Plan.

			
	
			
				 3.
			

			
	
			
			Vesting.  Except as may otherwise be provided herein, the Option shall become nonforfeitable (any Options that shall have become nonforfeitable pursuant to this Section ‎3, the “Vested Options”) and shall become exercisable according to the following provisions:

			
	
			
				 (a)
			

			
	
			
			General Vesting.  The Options shall become Vested Options and shall become exercisable according to the vesting schedule indicated in the attached Schedule, subject to Participant not having incurred a Termination of Employment as of the applicable vesting date. 

		
			

		 

		

			
	
			
				 (b)
			

			
	
			
			Vesting upon Retirement.  If Participant incurs a Termination of Employment due to Retirement (as defined below), the Options shall continue to vest and be exercisable according to the terms of this Agreement as though no Termination of Employment had occurred.  For the purposes of this Agreement, “Retirement” shall mean Participant’s voluntary resignation at a time when (i) Participant is at least 60 years of age and (ii) Participant has been employed by NBHC for no less than 10 years.  For the purposes of determining Participant’s eligibility for Retirement under this Agreement, if Participant was employed by a company or entity that NBHC acquired or that merged with NBHC, Participant’s employment with NBHC shall be deemed to have begun on the closing date of the transaction in which NBHC acquired or merged with such company or entity.

			
	
			
				 (c)
			

			
	
			
			Vesting upon Death or Disability.  If Participant incurs a Termination of Employment due to death or Disability, or dies following Participant’s Termination of Employment due to Retirement, all Options that have not theretofore become Vested Options shall become Vested Options and be exercisable in accordance with Section ‎4.

			
	
			
				 (d)
			

			
	
			
			Vesting Following a Change in Control.  If, in connection with a Change in Control, Participant is provided with a Replacement Award (as defined in Section 8) and within two years following such a Change in Control, Participant incurs a Termination of Employment without Cause or due to Participant’s resignation with Good Reason (as defined in Section ‎12), all of the Options (or other form of Replacement Award) that were not theretofore Vested Options shall become Vested Options (or otherwise vest as applicable to the Replacement Award) and shall be exercisable as of the date of such Termination of Employment.  The Option (or other form of Replacement Award) shall remain exercisable, if applicable, as provided in Section ‎4(b).  If no Replacement Award is provided in connection with a Change in Control, the outstanding Option shall vest and become exercisable in full in accordance with Section 8.

			
	
			
				 (e)
			

			
	
			
			Other Termination of Employment.  If Participant incurs a Termination of Employment (i) that is not within two years following a Change in Control or (ii) for any reason other than Retirement, death or Disability, any Options that have not theretofore become Vested Options shall be forfeited by Participant without consideration.

		
			 
		

			
	
			
				 4.
			

			
	
			
			Termination.

			
	
			
				 (a)
			

			
	
			
			The Options (to the extent not otherwise forfeited) shall automatically terminate and shall become null and void, be unexercisable and be of no further force and effect upon the earliest of:

			
	
			
				 (i)
			

			
	
			
			the tenth anniversary of the Date of Grant;

			
	
			
				 (ii)
			

			
	
			
			the first anniversary of Participant’s Termination of Employment in the case of a Termination of Employment due to death or Disability;

			
	
			
				 (iii)
			

			
	
			
			the 90th day following Participant’s Termination of Employment in the case of a Termination of Employment by NBHC without Cause or a Termination of Employment due to Participant’s resignation for any reason; and

			
	
			
				 (iv)
			

			
	
			
			the day of Participant’s Termination of Employment in the case of a Termination of Employment for Cause.

			
	
			
				 (b)
			

			
	
			
			Notwithstanding the provisions of Section ‎4(a) to the contrary, in the event of Participant’s Termination of Employment for any reason (other than due to a Termination of Employment for Cause) during the two-year period following a Change in Control, the Option (or other form of Replacement Award, if applicable) shall remain outstanding and exercisable until the earlier of (i) the tenth anniversary of the Date of Grant and (ii) the fifth anniversary of such Termination of Employment.

		
			

		 

		

			
	
			
				 5.
			

			
	
			
			Compliance with Legal Requirements.  The grant and exercise of the Option and any other obligations of NBHC under this Agreement shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required.  The Committee, in its sole discretion, may postpone the issuance or delivery of the Shares as the Committee may consider appropriate, and may require Participant to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of the Shares in compliance with applicable laws, rules and regulations.

			
	
			
				 6.
			

			
	
			
			Non-Transferability.  The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against NBHC, its Subsidiaries or Affiliates; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.  The Option and any Shares received upon exercise thereof shall be subject to the restrictions set forth in the Plan and this Agreement.

			
	
			
				 7.
			

			
	
			
			Adjustment.  In the event of any event described in Section 3(h) of the Plan occurring after the Date of Grant, the adjustment provisions as provided for under Section 3(h) of the Plan shall apply to the Option.

			
	
			
				 8.
			

			
	
			
			Change in Control.  Notwithstanding anything in the Plan or otherwise set forth in this Agreement to the contrary, upon the occurrence of a Change in Control, the Option, if outstanding, shall vest and become exercisable in full, except to the extent that another award meeting the requirements of this Section ‎8 is provided to Participant to replace the Option (any award meeting the requirements of this Section ‎8, a “Replacement Award”).  An award shall meet the conditions of this Section ‎8 (and hence qualify as a Replacement Award) if: (a) it is a stock option or stock appreciation right in respect of publicly traded equity securities of NBHC or the surviving corporation or the ultimate parent of the applicable entity following the Change in Control, (b) it has a value at least equal to the value of the Option as of the date of the Change in Control (other than in respect of customary fractional rounding of share amounts and exercise price), (c) it contains terms relating to vesting and exercisability (including with respect to Termination of Employment) that are substantially identical to those of the Option, and (d) its other terms and conditions are not less favorable to Participant than the terms and conditions of the Option (including provisions that apply in the event of a subsequent Change in Control) as of the date of the Change in Control.  Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the Option if the requirements of the preceding sentence are satisfied.  The determination of whether the conditions of this Section ‎8 are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion. 

			
	
			
				 9.
			

			
	
			
			Tax Withholding.  As a condition to exercising the Option, in whole or in part, Participant will pay to NBHC, or, to the extent permitted by the Committee, make provisions satisfactory to NBHC for payment of, any federal, state or local tax in respect of the exercise or the transfer of the Shares pursuant to Section 14(d) of the Plan.

			
	
			
				 10.
			

			
	
			
			Forfeiture.  Participant agrees that, notwithstanding any other provision of any agreement to which he or she is subject with NBHC or NBH Bank (collectively, the “Company”), and in addition to and not in contravention of any clawback provision or policy applicable to Participant as in effect from time to time (including any clawback policies or provisions implemented pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable laws):

			
	
			
				 (a)
			

			
	
			
			If the Company is required to prepare an accounting restatement due to material noncompliance of the Company as a result of Participant’s misconduct in connection with any financial reporting requirement under the federal securities laws, Participant shall reimburse the Company for all amounts received under this Agreement from the Company during the 12-month period following the first public issuance or filing with the Securities and Exchange Commission (whichever first occurs) of the financial document embodying such financial reporting requirement, and any amounts received with respect to, or amounts realized upon, the exercise of Options or the subsequent sale of the underlying Shares that were issued upon the exercise of the Options or the cancellation of the Options during that 12-month period;

		
			

		 

		

			
	
			
				 (b)
			

			
	
			
			If the Committee shall determine that Participant has engaged in a serious breach of conduct, the Committee may terminate this Agreement, cancel all Options and/or require Participant to repay gain realized on the exercise of Options; and

			
	
			
				 (c)
			

			
	
			
			If Participant is found guilty of misconduct by any judicial or administrative authority in connection with any (i) formal investigation by the Securities and Exchange Commission or (ii) other federal or state regulatory investigation, then the Committee may terminate this Agreement, require Participant to forfeit Options and/or may require the repayment of any gain realized on the exercise of any Options without regard to the timing of the determination of misconduct in relation to the timing of the exercise of the Option.

		
			The foregoing provisions of this Section 10 shall cease to apply following a Change in Control, except as otherwise required by applicable law.
		

			
	
			
				 11.
			

			
	
			
			Miscellaneous.

			
	
			
				 (a)
			

			
	
			
			Confidentiality of this Agreement.  Participant agrees to keep confidential the terms of this Agreement, unless and until such terms have been disclosed publicly other than through a breach by Participant of this covenant.  This provision does not prohibit Participant from providing this information on a confidential and privileged basis to Participant’s attorneys or accountants for purposes of obtaining legal or tax advice or as otherwise required by law.

			
	
			
				 (b)
			

			
	
			
			Restrictive Covenants.  The grant and vesting of the Options pursuant to this Agreement shall be in partial consideration and subject to Participant’s continued compliance with (i) any restrictive covenants set forth in an Individual Agreement or (ii) if there are no confidentiality and/or non-solicitation provisions in an Individual Agreement, the restrictive covenants as set forth in Annex A hereto.  For the avoidance of doubt, if there are confidentiality and/or non-solicitation provisions in an Individual Agreement, the restrictive covenants in the Individual Agreement shall govern.

			
	
			
				 (c)
			

			
	
			
			Waiver and Amendment.  The Committee may waive any conditions or rights under, or amend any terms of, this Agreement and the Option granted hereunder; provided that any such waiver or amendment that would impair the rights of any Participant or any holder or beneficiary of any Option heretofore granted shall not to that extent be effective without the consent of Participant.  No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.  No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

			
	
			
				 (d)
			

			
	
			
			Notices.  All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested, facsimile, courier service or personal delivery:

		
			if to NBHC to:
National Bank Holdings Corporation
7800 East Orchard Road, Suite 300
Greenwood Village, CO 80111
Facsimile:  (855) 576-3479
Attention:  Legal Department
		

		
			if to Participant:  at the address last on the records of NBHC.
		

		
			All such notices, demands and other communications shall be deemed to have been duly given (i) when delivered by hand, if personally delivered; (ii) when delivered by courier, if delivered by commercial courier service; (iii) five business days after being deposited in the mail, postage prepaid, if mailed; and (iv) when receipt is mechanically acknowledged, if by facsimile.
		

		
			 
		

		
			

		 

		

			
	
			
				 (e)
			

			
	
			
			Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

			
	
			
				 (f)
			

			
	
			
			No Rights to Service.  Nothing contained in this Agreement shall be construed as giving Participant any right to be retained, in any position, as an employee, consultant or director of NBHC or its Affiliates or shall interfere with or restrict in any way the right of NBHC or its Affiliates, which is hereby expressly reserved, to remove, terminate or discharge Participant at any time for any reason whatsoever.

			
	
			
				 (g)
			

			
	
			
			Beneficiary.  Participant may file with NBHC a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, change or revoke such designation by filing a new designation with NBHC.  The last such designation received by NBHC shall be controlling; provided,  however, that no designation, or change or revocation thereof, shall be effective unless received by NBHC prior to Participant’s death, and in no event shall it be effective as of a date prior to such receipt.  If no beneficiary designation is filed by Participant, the beneficiary shall be deemed to be his or her spouse or, if Participant is unmarried at the time of death, his or her estate.

			
	
			
				 (h)
			

			
	
			
			Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of NBHC, its successors and assigns, and of Participant and the beneficiaries, executors, administrators, heirs and successors of Participant.

			
	
			
				 (i)
			

			
	
			
			Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations with respect thereto.

			
	
			
				 (j)
			

			
	
			
			Bound by the Plan.  By signing this Agreement, Participant acknowledges that he or she has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

			
	
			
				 (k)
			

			
	
			
			Governing Law.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction that could cause the application of the laws of any jurisdiction other than the State of Delaware.

			
	
			
				 (l)
			

			
	
			
			Headings.  The headings of the Sections of this Agreement are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

			
	
			
				 (m)
			

			
	
			
			Counterparts.  This Agreement may be signed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

			
	
			
				 12.
			

			
	
			
			 Certain Definitions and Administration.

			
	
			
				 (a)
			

			
	
			
			Termination for Cause.  Unless otherwise provided under the termination with “cause” provisions of an Individual Agreement, to invoke a termination for Cause, NBHC must provide written notice to Participant of the existence of such grounds within 30 days following NBHC’s knowledge of the existence of such grounds, specifying in reasonable detail the grounds constituting Cause, and, with respect to the grounds enumerated in clauses (A), (C), (D) and (E) of the definition of Cause in the Plan, Participant shall have 30 days following receipt of such written notice during which he or she may remedy the ground if such ground is reasonably subject to cure as determined by NBHC.  

			
	
			
				 (b)
			

			
	
			
			“Good Reason” shall have the meaning given to such term in an Individual Agreement, or if there is no such Individual Agreement or if it does not define Good Reason then Good Reason shall mean the occurrence of the following, in the absence of Participant’s written consent:

		
			

		 

		

			
	
			
				 (i)
			

			
	
			
			 a material diminution in Participant’s annual base salary from that in effect immediately prior to a Change in Control; or

			
	
			
				 (ii)
			

			
	
			
			the assignment to Participant of any duties materially inconsistent with Participant’s positions (including status, offices, titles and reporting requirements), authority, duties or responsibilities, or any other action by NBHC that results in a material diminution in such positions, authority, duties or responsibilities, in each case, from those in effect immediately prior to a Change in Control; or

		
			provided that, in each case, (A) Participant provides written notice to NBHC of the existence of one or more of the conditions described in clauses (i) through (ii) above within 30 days following Participant’s knowledge of the initial existence of such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason; (B) NBHC and its Affiliates fail to cure such event or condition within 30 days following the receipt of such notice; and (C) Participant incurs a Termination of Employment within 30 days following the expiration of such cure period.
		

		
			[Signature Page Follows]
		

		
			 
		

		
			

		 

		

		
			IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

		

		
			NATIONAL BANK HOLDINGS CORPORATION
		

		
			 
		

		
			 
		

		
			By: ____________________________________
Name:   
Title:     
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			By:  ____________________________________
Name:   
Title:     
		

		
			 
		

		
			 
		

		
			PARTICIPANT
		

		
			 
		

		
			 
		

		
			_______________________________________
		

		
			[Participant]
		

		
			 
		

		
			

		 

		

			 

		

		

		
			Annex A
Restrictive Covenants
		

			
	
			
				 1.
			Confidential Information.  Participant agrees that, during his or her employment with NBHC and at all times thereafter, he or she shall hold for the benefit of NBHC all secret or confidential information, knowledge, or data relating to NBHC or any of its Affiliates, and their respective businesses, which shall have been obtained by Participant during Participant’s employment by NBHC or during his or her consultation with NBHC after his or her termination of employment, and which shall not be or become public knowledge (other than by acts by Participant or representatives of Participant in violation of this Agreement).  Except in the good faith performance of his or her duties for NBHC, Participant shall not, without the prior written consent of NBHC or as may otherwise be required or permitted by law or legal process, communicate or divulge any such information, knowledge, or data to anyone other than NBHC and those designated by it.

		
			Notwithstanding the above confidentiality provisions, nothing in this Agreement, in any other agreement, or in the Company’s policies should be interpreted as prohibiting Participant from: (1) reporting possible violations of federal law or regulations, including any securities laws violations, to any governmental agency or entity, including but not limited to the Department of Justice, the U.S. Securities & Exchange Commission, the U.S. Congress, or any agency Inspector General; (2) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations; or (3) otherwise fully participating in any federal whistleblower programs.
		

		
			Please refer to the NBHC Associate Handbook, a copy of which is available upon request, regarding Participant’s rights related to the disclosure of the Company’s trade secrets.
		

			
	
			
				 2.
			Nonsolicitation.  Participant agrees that, while he or she is employed by NBHC and during the one-year period following his or her termination of employment with NBHC (the “Restricted Period”), Participant shall not, directly or indirectly, (a) solicit any individual who is, on the date on which Participant incurs a Termination of Employment (the “Date of Termination”) (or was, during the six-month period prior to the Date of Termination), employed by NBHC or any of its Affiliates to terminate or refrain from renewing or extending such employment or to become employed by or become a consultant to any other individual or entity other than NBHC or such Affiliate, (b)  initiate discussions with any such individual for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity on behalf of Participant’s employer, (c) solicit any client or customer of NBHC or any of its Affiliates to transact business with a Competitive Enterprise (as defined below), or (d) induce or attempt to induce any client, customer, or investor (in each case, whether former, current, or prospective), vendor, supplier, licensee, or other business relation of NBHC or any of its Affiliates to reduce or cease doing business with NBHC or any such Affiliate, or in any way interfere with the relationship between any such client, customer, investor, vendor, supplier, licensee, or business relation, on the one hand, and NBHC or any such Affiliate, on the other hand.  For purposes hereof, “Competitive Enterprise” means any business enterprise that either (i) engages in any activity closely associated with commercial banking or any other financial services business, including the operations of an institution, the deposits of which are insured by the Federal Deposit Insurance Corporation, that is competitive with any portion of the business conducted by NBHC or any of its Affiliates.

			
	
			
				 3.
			Equitable Remedies.  Participant acknowledges that NBHC would be irreparably injured by a violation of Section ‎1 or Section ‎2 of this Annex A and he or she agrees that NBHC, in addition to any other remedies available to it for such breach or threatened breach, on meeting the standards required by law, shall be entitled to a preliminary injunction, temporary restraining order, or other equivalent relief, restraining Participant from any actual or threatened breach of Section ‎1 or Section ‎2 of this Annex A.  If a bond is required to be posted in order for NBHC to secure an injunction or other equitable remedy, the parties agree that said bond need not be more than a nominal sum.

			
	
			
				 4.
			Severability; Blue Pencil.  Participant acknowledges and agrees that he or she has had the opportunity to seek advice of counsel in connection with this Agreement and the restrictive covenants contained herein are reasonable in geographical scope, temporal duration, and in all other respects.  If it is determined that any provision of this Annex A is invalid or unenforceable, the remainder of the provisions of this Annex A shall not thereby be affected and shall be given full effect, without regard to the invalid portions.  If any court or other decision-maker of competent jurisdiction determines that any of the covenants in this Annex A is unenforceable because of the duration or geographic scope of such provision, then after such determination becomes final and unappealable, the duration or scope of such provision, as 

		 

		

			 

		

		

			 

		

	the case may be, shall be reduced so that such provision becomes enforceable, and in its reduced form, such provision shall be enforced.

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			SCHEDULE
		

		
			Date of Grant: 
		

		
			Participant:
		

		
			Shares: 
		

		
			Option Price (per share): 
		

		
			Vesting Schedule:
		

			
					
						Date

					
					
						Shares VestedExhibit 4.1

 

Form
of Underwriter’s Warrant

 

THE
REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES BY HIS, HER OR ITS ACCEPTANCE HEREOF, THAT SUCH HOLDER WILL NOT FOR A PERIOD
OF ONE HUNDRED EIGHTY (180) DAYS FOLLOWING THE EFFECTIVE DATE (AS DEFINED BELOW) OF THE REGISTRATION STATEMENT NO.: 333-234807
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION: (A) SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT
TO ANYONE OTHER THAN OFFICERS OR PARTNERS OF NETWORK 1, EACH OF WHOM SHALL HAVE AGREED TO THE RESTRICTIONS CONTAINED HEREIN, IN
ACCORDANCE WITH FINRA CONDUCT RULE 5110(G)(1), OR (B) CAUSE THIS PURCHASE WARRANT OR THE SECURITIES ISSUABLE HEREUNDER TO
BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION
OF THIS PURCHASE WARRANT OR THE SECURITIES HEREUNDER, EXCEPT AS PROVIDED FOR IN FINRA RULE 5110(G)(2).

 

THIS
PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO AUGUST 24, 2020. VOID AFTER 5:00 P.M., EASTERN TIME, FEBRUARY 21, 2023.

 

CLASS
A ORDINARY SHARES PURCHASE WARRANT

 

For
the Purchase of [●] Class A Ordinary Shares

 

of

 

ZHONGCHAO
INC.

 

1.
Purchase Warrant. THIS CLASS A ORDINARY SHARES PURCHASE
WARRANT (this “Purchase Warrant”) certifies that, pursuant to that certain Underwriting Agreement by and between
Zhongchao Inc., a Cayman Islands exempted company (the “Company”) and Network 1 Financial Securities, Inc.
(“Network 1”), dated February 24, 2020 (the “Underwriting Agreement”), Network 1 (in such
capacity with its permitted successors or assigns, the “Holder”), as registered owner of this Purchase Warrant,
is entitled, at any time or from time to time from August 25, 2020 (the “Exercise Date”) [THE DATE THAT IS
180 DAYS AFTER THE CLOSING OF THE OFFERING], and at or before 5:00 p.m., Eastern time, February 21, 2023 [DATE THAT IS THREE YEARS
FROM THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT] (the “Expiration Date”), but not thereafter, to subscribe
for, purchase and receive, in whole or in part, up to [●] Class A Ordinary Shares of the Company, par value $0.0001 per
share (the “Shares”)1, subject to adjustment as provided in Section 5 hereof.
If the Expiration Date is a day on which banking institutions are authorized by law or executive order to close, then this Purchase
Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period
commencing on the date hereof and ending on the Expiration Date, the Company agrees not to take any action that would terminate
this Purchase Warrant. This Purchase Warrant is initially exercisable at $5.00 per Share (125% of the price of the Shares sold
in the Offering); provided, however, that upon the occurrence of any of the events specified in Section 5 hereof,
the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon
such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise
price or the adjusted exercise price, depending on the context. Any term not defined herein shall have the meaning ascribed thereto
in the Underwriting Agreement.

 

2.
Exercise.

 

2.1
Exercise Form. In order to exercise this Purchase Warrant, the exercise form attached hereto as Exhibit A
(the “Exercise Form”) must be duly executed and completed and delivered to the Company, together with this
Purchase Warrant and payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately
available funds to an account designated by the Company or by certified check or official bank check to the order of the Company.
If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date,
this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease
and expire.

 

 

 

1
9% of the number of Class A Ordinary Shares sold in the
Offering. 

 

     

     

    

 

2.2
Cashless Exercise. In lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the
Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of
this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together
with the Exercise Form, in which event the Company shall issue to Holder, Shares in accordance with the following formula:

 

	 X   =
	Y(A
    – B)	 
	A	 

 

	Where,	X   =    The
    number of Shares to be issued to Holder;

Y   =    The
number of Shares that would be issuable upon exercise of this Purchase Warrant in accordance with the terms of this Purchase Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise;

 

A   =    The
fair market value of one Share; and

 

B   =    The
Exercise Price of this Purchase Warrant, as adjusted hereunder.

 

For
purposes of this Section 2.2, the fair market value of a Share is defined as follows:

 

(i)
if the Company’s Class A Ordinary Shares are traded on a securities exchange, the value shall be deemed to be the closing
price on such exchange on the trading day immediately prior to the Exercise Form being submitted in connection with the exercise
of this Purchase Warrant; or

 

(ii)
if the Company’s Class A Ordinary Shares are actively traded over-the-counter, the value shall be deemed to be the closing
bid price on the trading day immediately prior to the Exercise Form being submitted in connection with the exercise of the Purchase
Warrant; if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by
the Company’s Board of Directors.

 

2.3
Legend. Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless
such securities have been registered under the Securities Act of 1933, as amended (the “Act”):

 

“The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the
Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

3.
Transfer.

 

3.1
General Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that
such Holder will not for a period of one hundred eighty (180) days following the Effective Date of the Registration Statement:
(a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant to anyone other than: (i) Network 1 or a selected dealer
participating in the Offering contemplated by the Underwriting Agreement, or (ii) officers or partners of Network 1, each of whom
shall have agreed to the restrictions contained herein, in accordance with FINRA Rule 5110(g)(1), or (b) cause this Purchase
Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided
for in FINRA Rule 5110(g)(2). On and after that date that is one hundred eighty (180) days after the Effective Date of the Registration
Statement, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order
to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto as Exhibit B
duly executed and completed, together with this Purchase Warrant and payment of all transfer taxes, if any, payable in connection
therewith. The Company shall within five (5) Business Days transfer this Purchase Warrant on the books of the Company and shall
execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing
the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated
by any such assignment.

 

    2

     

    

 

3.2
Restrictions Imposed by the Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and
until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an
exemption from registration under the Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company, (ii) a Registration Statement relating to the offer and sale of such securities that includes
a current prospectus has been filed and declared effective by the Securities and Exchange Commission (the “Commission”)
and compliance with applicable state securities law has been established.

 

4.
New Purchase Warrants to be Issued.

 

4.1
Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may
be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of
this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay
any Exercise Price and/or transfer tax if exercised pursuant to Section 2.1 hereof, the Company shall cause to
be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder
evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has
not been exercised or assigned.

 

4.2
Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation
of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and
deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such
loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

5.
Adjustments.

 

5.1
Adjustments to Exercise Price and Number of Shares. The Exercise Price and the number of Shares underlying this Purchase
Warrant shall be subject to adjustment from time to time as hereinafter set forth:

 

5.1.1
Share Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 5.3 below,
the number of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar
event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such
increase in outstanding shares, and the Exercise Price shall be proportionately decreased.

 

5.1.2
Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 5.3 below,
the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event,
then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease
in outstanding shares, and the Exercise Price shall be proportionately increased.

 

5.1.3
Replacement of Shares upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares
other than a change covered by Section 5.1.1 or Section 5.1.2 hereof or that solely affects
the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation of the Company with
or into another corporation (other than a consolidation or share reconstruction or amalgamation in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any
sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety
in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until
the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate
Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or
property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation,
or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon
exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares
covered by Section 5.1.1 or Section 5.1.2, then such adjustment shall be made pursuant to Section
5.1.1, Section 5.1.2 and this Section 5.1.3. The provisions of this Section 5.1.3 shall
similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales
or other transfers.

 

    3

     

    

 

5.1.4
Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to
this Section 5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number
of Shares as are stated in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of
the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an
adjustment occurring after the date hereof or the computation thereof.

 

5.2
Substitute Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation
of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does
not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share
reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder
of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of
such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities
and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of
the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction
or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to
the adjustments provided for in this Section 5. The above provision of this Section 5 shall similarly
apply to successive consolidations or share reconstructions or amalgamations.

 

5.3
Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of
Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional
interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or
down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.

 

6.
Registration Rights.

 

6.1
Demand Registration.

 

6.1.1
Grant of Right. Unless all of the Registrable Securities (defined as below) are included in an effective registration statement
with a current prospectus, the Company, upon written demand (“Demand Notice”) of the Holder(s) of at least
51% of the Underwriter’s Warrants and/or the underlying securities (“Majority Holder(s)”), agrees to
register on two occasions, all or any portion of the remaining Class A Ordinary Shares (collectively, the “Registrable
Securities”) as requested by the Majority Holder(s) in the Demand Notice, provided that no such registration will be
required unless the Holders request registration of an aggregate of at least 51% of the outstanding Registrable Securities. On
such occasion, the Company will file a new registration statement or a post-effective amendment to the Registration Statement
covering the Registrable Securities within sixty (60) days after receipt of the Demand Notice and use its best efforts to have
such registration statement or post-effective amendment declared effective as soon as possible thereafter. The demand for registration
may be made at any time after one (1) year from the date of effectiveness of the Registration Statement, but no later than three
(3) years from the effective date of the Registration Statement. The Company covenants and agrees to give written notice of its
receipt of any Demand Notice by any Holder(s) to all other registered Holders of the Underwriter’s Warrants and/or the Registrable
Securities within ten (10) days from the date of the receipt of any such Demand Notice, who shall have five days from the receipt
of such Notice in which to notify the Company of their desire to have their Registrable Securities included in the Registration
Statement.

 

    4

     

    

 

6.1.2
Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities upon the first
Demand Notice, including the reasonable expenses of any legal counsel selected by the Holders to represent them in connection
with the sale of the Registrable Securities, but the Holders shall pay any and all underwriting commissions, if any. The Holders
shall bear all fees and expenses attendant to registering the Registrable Securities upon the second Demand Notice. The Company
agrees to use its commercially reasonable efforts to qualify or register the Registrable Securities in such States as are reasonably
requested by the Majority Holder(s); provided, however, that in no event shall the Company be required to register the Registrable
Securities in a State in which such registration would cause (i) the Company to be obligated to qualify to do business in such
State or execute a general consent to service of process, or would subject the Company to taxation as a foreign corporation doing
business in such jurisdiction or (ii) the principal shareholders of the Company to be obligated to escrow their shares of capital
stock of the Company. The Company shall cause any registration statement or post-effective amendment filed pursuant to the demand
rights granted under Section 6.1.1 to remain effective for a period of twelve (12) consecutive months from the effective
date of such registration statement or post-effective amendment or until the Holders have completed the distribution of the Registrable
Securities included in the Registration Statement, whichever occurs first.

 

6.1.3.
Deferred Filing. If (i) in the good faith judgment of the Board, filing a registration statement pursuant to Section
6.1 would be seriously detrimental to the Company and the Board concludes, as a result, that it is essential to defer the
filing of such registration statement at such time, and (ii) the Company shall furnish to such Holders a certificate signed by
the President of the Company stating that in the good faith judgment of the Board it would be seriously detrimental to the Company
for such registration statement to be filed in the near future and that it is, therefore, essential to defer the filing of such
registration statement, then the Company shall have the right to defer such filing on two occasions for an aggregate of not more
than one hundred and twenty (120) days in any twelve-month period.

 

6.1.4.
No Cash Settlement Option. The Company is only required to use its best efforts to cause a registration statement covering
issuance of the Registrable Securities underlying the Underwriter’s Warrant to be declared effective, and once effective,
only to use its best efforts to maintain the effectiveness of the registration statement. The Company will not be obligated to
deliver securities, and there are no contractual penalties for failure to deliver securities, if a registration statement is not
effective at the time of exercise. Additionally, in no event is the Company obligated to settle any Underwriter’s Warrant,
in whole or in part, for cash in the event it is unable to register the Registrable Securities.

 

6.2
“Piggy-Back” Registration.

 

6.2.1
Grant of Right. Unless all of the Registrable Securities are included in an effective registration statement with a current
prospectus, the Holders of the Underwriter’s Warrants shall have the right for a period of not more than three (3) years
from the date of effectiveness of the Registration Statement, to include the remaining Registrable Securities as part of any other
registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated
under the Act or pursuant to Form S-8 or any successor or equivalent form); provided, however, that if, in the written opinion
of the Company’s managing underwriter or underwriters, if any, for such offering, the inclusion of the Registrable Securities,
when added to the securities being registered by the Company or the selling shareholder(s), will exceed the maximum amount of
the Company’s securities which can be marketed (i) at a price reasonably related to their then current market value, and
(ii) without materially and adversely affecting the entire offering, then the Company will still be required to include the Registrable
Securities, but may require the Holders to agree, in writing, to delay the sale of all or any portion of the Registrable Securities
for a period of ninety (90) days from the effective date of the offering, provided, further, that if the sale of any Registrable
Securities is so delayed, then the number of securities to be sold by all shareholders in such public offering shall be apportioned
pro rata among all such selling shareholders, including all holders of the Registrable Securities, according to the total amount
of securities of the Company owned by said selling shareholders, including all holders of the Registrable Securities.

 

    5

     

    

 

6.2.2
Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities, including the
expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities,
but the Holders shall pay any and all underwriting commissions. In the event of such a proposed registration, the Company shall
furnish the then Holders of outstanding Registrable Securities with not less than fifteen (15) days written notice prior to the
proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable
registration statement filed (during the period in which the Underwriter’s Warrant is exercisable) by the Company until
such time as all of the Registrable Securities have been registered and sold. The holders of the Registrable Securities shall
exercise the “piggy back” rights provided for herein by giving written notice, within ten (10) business days of the
receipt of the Company’s notice of its intention to file a registration statement. The Company shall use its best efforts
to cause any registration statement filed pursuant to the above “piggyback” rights that does not relate to a firm
commitment underwritten offering to remain effective for at least nine (9) consecutive months from the effective date of such
registration statement or until the Holders have completed the distribution of the Registrable Securities in the registration
statement, whichever occurs first.

 

7.
Reservation and Listing. The Company shall at all times
reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of this Purchase Warrant,
such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants
and agrees that, upon exercise of this Purchase Warrant and payment of the Exercise Price therefor, in accordance with the terms
hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable
and not subject to preemptive rights of any shareholder. The Company further covenants and agrees that upon exercise of this Purchase
Warrant and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall be duly
and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as this Purchase
Warrant shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise
of this Purchase Warrant to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable,
on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be
listed and/or quoted.

 

8.
Certain Notice Requirements.

 

8.1
Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote
or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever
as a shareholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise,
any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall
give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the
transfer books (the “Notice Date”) for the determination of the shareholders entitled to such dividend, distribution,
conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding
the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other shareholders of the Company at
the same time and in the same manner that such notice is given to the shareholders.

 

8.2
Events Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon
one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling
them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise
than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company,
(ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company or securities
convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor,
or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction
or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed.

 

8.3
Notice of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price
pursuant to Section 5 hereof, send notice to the Holders of such event and change (“Price Notice”).
The Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being
true and accurate by the Company’s Chief Financial Officer.

 

    6

     

    

 

8.4
Transmittal of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in
writing and shall be deemed to have been duly made (1) when hand delivered, (2) when mailed by express mail or private courier
service, (3) if sent by electronic mail, on the day the notice was sent if during regular business hours and, if sent outside
of regular business hours, on the following business day, or (4) when the event requiring notice is disclosed in all material
respects and filed in a Current Report on Form 6-K prior to the Notice Date: (i) if to the registered Holder of the Purchase Warrant,
to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to following address or to such
other address as the Company may designate by notice to the Holders:

 

If
to the Holder:

 

Network
1 Financial Securities, Inc.

2
Bridge Ave., Suite 241

Red
Bank, NJ 07701

Attention:
Damon Testaverde, Managing Director

Email:
ddtestaverde@netw1.com

 

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

 

VCL
Law LLP

8300
Boone Boulevard, Suite 500

Vienna,
VA 22182

Attention:
Fang Liu, Partner

Email:
fliu@vcllegal.com

 

If
to the Company:

 

Zhongchao
Inc.

Nanxi
Creative Center, Suite 218

841
Yan’An Middle Road

Jing’An
District, Shanghai, China 200040

Attention:
Weiguang Yang, CEO

Email:
yangweiguang@mdmooc.org

 

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

 

Hunter
Taubman Fischer & Li LLC

1450
Broadway, 26th Floor

New
York, NY 10018

Attn:
Arila Zhou, Esq., Partner

Fax:
212-202-6380

Email:
azhou@htflawyers.com

 

9.
Miscellaneous.

 

9.1
Amendments. The Company and Network 1 may from time to time supplement or amend this Purchase Warrant without the approval
of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective
or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder
that the Company and Network 1 may deem necessary or desirable and that the Company and Network 1 deem shall not adversely affect
the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party
against whom enforcement of the modification or amendment is sought.

 

9.2
Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way
limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

    7

     

    

 

9.3
Entire Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or
in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter
hereof.

 

9.4
Binding Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the
Company and their permitted assignees and respective successors and no other person shall have or be construed to have any legal
or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.

 

9.5
Governing Law; Submission to Jurisdiction. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the Borough of Manhattan in The City of New York (each, a “New York Court”), and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be
served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to
it at the address set forth in Section 8.4 hereof. Such mailing shall be deemed personal service and shall be
legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies)
in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the preparation therefor.

 

9.6
Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant
shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase
Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this
Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant
shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement
of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to
be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

9.7
Exchange Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees
that, at any time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Network 1 enter into an
agreement (“Exchange Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be
exchanged for securities or cash or a combination of both, then Holder shall agree to such exchange and become a party to the
Exchange Agreement.

 

9.8
Execution in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties
hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute
one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto
and delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic
transmission.

 

9.9
Restrictions. The Holder acknowledges that the Shares acquired upon the exercise of this Purchase Warrant, if not registered,
and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities
laws.

 

9.10
Severability. Wherever possible, each provision of this Purchase Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Purchase Warrant shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Purchase Warrant.

 

[Remainder
of page intentionally left blank]

 

    8

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ____ day
of _______, 2020.

 

	ZHONGCHAO
                    INC.
	 
	 	 	 
	By:	 	 
	 	Name: Weiguang Yang	 
	 	Title: Chief Executive Officer	 

 

    9

     

    

 

EXHIBIT
A

EXERCISE
FORM

 

Form
to be used to exercise Purchase Warrant:

 

Date:
__________, 20___

 

The
undersigned hereby elects irrevocably to exercise the Purchase Warrant for ______ Shares of Zhongchao Inc., a Cayman Islands exempted
company (the “Company”) and hereby makes payment of $____ (at the rate of $____ per Share) in payment of the
Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the
instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase
Warrant has not been exercised.

 

or

 

The
undersigned hereby elects irrevocably to convert its right to purchase ___ Shares under the Purchase Warrant for ______ Shares,
as determined in accordance with the following formula:

 

	 	X
	=	Y(A-B)	 
	 	 	 	A	 

 

Where,

 

X   =   The
number of Shares to be issued to Holder;

 

Y   =   The
number of Shares that would be issuable upon exercise of this Purchase Warrant in accordance with the terms of this Purchase Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise;

 

A   =   The
fair market value of one Share; and

 

B   =   The
Exercise Price of this Purchase Warrant, as adjusted hereunder

 

The
undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement
with respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please
issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable,
a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

Signature

 

Signature
Guaranteed

 

INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

 

Name:

 

(Print
in Block Letters)

 

Address:

 

NOTICE:
The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by
a firm having membership on a registered national securities exchange.

 

    10

     

    

 

EXHIBIT
B

ASSIGNMENT
FORM

 

Form
to be used to assign Purchase Warrant:

 

(To
be executed by the registered Holder to effect a transfer of the within Purchase Warrant):

 

FOR
VALUE RECEIVED, does hereby sell, assign and transfer unto the right to purchase shares of Zhongchao Inc., a Cayman Islands exempted
company (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the Company to transfer
such right on the books of the Company to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

Dated:  ____________,
20__

 

Holder’s
Signature: _____________________________

 

Holder’s
Address:   _____________________________

 

_____________________________

 

Signature
Guaranteed: ___________________________________________

 

NOTICE:
The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Purchase
Warrant.

 

 

11

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