Document:

EX-10.2

 Exhibit 10.2 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN 

OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY 

IF PUBLICLY DISCLOSED. 
 THIRD
AMENDMENT TO FORBEARANCE AGREEMENT 
 This Third Amendment to Forbearance Agreement, dated as of January 10, 2020 (this
“Agreement”) is among KEY ENERGY SERVICES, INC., a Delaware corporation (the “Company”), KEY ENERGY SERVICES, LLC, a Texas limited liability company (“Key Energy
LLC”, and together with the Company, collectively, “Borrowers” or “Borrower”), Lenders party to this Agreement and BANK OF AMERICA, N.A., a national banking association, as administrative
agent for the Lenders (in such capacity, “Administrative Agent”), which amends that certain Forbearance Agreement, dated as of October 29, 2019, as amended by the Amendment to Forbearance Agreement, dated as of
December 6, 2019, and the Second Amendment to Forbearance Agreement and Amendment No. 2 to Loan Agreement, dated as of December 20, 2019 (as amended, the “Forbearance Agreement”), by and among the Borrowers,
the Administrative Agent and the Lenders. 
 W I T N E S S E T H:

 WHEREAS, Borrowers, the Lenders from time to time party thereto and the Administrative Agent are parties to that certain Loan and
Security Agreement dated as of December 15, 2016 (as amended, supplemented, restated or otherwise modified from time to time, the “Loan Agreement”; unless otherwise defined herein, capitalized terms used herein that are
not otherwise defined herein shall have the respective meanings assigned to such terms in the Loan Agreement or the Forbearance Agreement, as applicable); 

WHEREAS, Borrowers, the Lenders and the Administrative Agent are parties to the Forbearance Agreement, pursuant to which the Lenders and the
Administrative Agent agreed to forbear from exercising certain default-related rights and remedies against Borrowers and the other Obligors with respect to the Specified Defaults during the Forbearance Period; 

WHEREAS, the Borrowers have requested that the Lenders and the Administrative Agent agree to amend the Forbearance Agreement to extend the
Forbearance Period set forth therein; and 
 WHEREAS, the Lenders and the Administrative Agent are willing to agree to such amendment on
terms and subject to conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants
contained herein, the parties hereto agree as follows: 
 1.    Amendment.  Subject to the satisfaction
of the conditions set forth in Section 3 hereof, Section 3(a) of the Forbearance Agreement is hereby amended by replacing the reference to “January 10, 2020” set forth therein with “January 31, 2020”. 

2.    No Other Amendments or Waivers. 

This Agreement, and the terms and provisions hereof, constitute the entire agreement among the parties hereto pertaining to the subject matter
hereof and supersedes any and all prior or contemporaneous amendments relating to the subject matter hereof. Except for the forbearance expressly set forth in Section 3 of the Forbearance Agreement (as amended hereby), the Loan Agreement shall
remain unchanged and in full force and effect. Except as expressly set forth in Section 3 of the Forbearance 

 
Agreement (as amended hereby), the execution, delivery, and performance of this Agreement shall not operate as a waiver of or as an amendment of, any right, power, or remedy of Administrative
Agent or the Lenders under the Loan Agreement or any of the other Loan Documents as in effect prior to the date hereof, nor constitute a waiver of any provision of the Loan Agreement or any of the other Loan Documents. The agreements set forth
herein are limited to the specifics hereof, shall not apply with respect to any facts or occurrences other than those on which the same are based, shall not excuse future non-compliance under the Loan
Agreement or other Loan Documents, and shall not operate as a consent to any further or other matter, under the Loan Documents. 

3.    Conditions Precedent.  The effectiveness of this Agreement is subject to the satisfaction of the
following conditions precedent on the date hereof: 
 3.1    Execution of Agreement.  Each Obligor,
Administrative Agent and the Required Lenders shall have duly executed and delivered this Agreement. 
 3.2    Term
Loan Forbearance Agreement Amendment.  Receipt by Administrative Agent of evidence reasonably satisfactory to Administrative Agent that an amendment to the Term Loan Forbearance Agreement has been entered into by all requisite parties
thereto pursuant to which the forbearance period thereunder shall have been extended to January 31, 2020. 

3.3    Accuracy of Representations and Warranties.  All representations and warranties contained in
Section 4 hereof shall be true and correct in all respects. 

3.4    Fees.  The Administrative Agent shall have received for the benefit of each Lender that executes
and delivers a counterpart of this Agreement (each such Lender, a “Consenting Lender”), a fee in an amount equal to (i) [***] payable to Bank of America, N.A., (ii) [***] payable to Wells Fargo Bank, National Association and (iii)
[***] payable to Siemens Financial Services, Inc. 
 4.    Representations and Warranties.  Each
Obligor hereby jointly and severally represents and warrants to Administrative Agent and Lenders, that 
 4.1    the
execution, delivery and performance by the Obligors of this Agreement: 
 (a)    are within each
Obligor’s corporate, limited liability company or partnership powers, as applicable, and have been duly authorized by all necessary corporate, limited liability company or partnership, as applicable, and, if required, equity holder action
(including, without limitation, any action required to be taken by any class of directors or other governing body of any Obligor or any other Person, whether interested or disinterested, in order to ensure the due authorization of the execution,
delivery and performance by the Obligors of this Agreement); 
 (b)    do not require any consent or
approval of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or other equity holders or any class of directors or other governing body, whether interested or
disinterested, of any Obligor or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of this Agreement or the consummation of the transactions contemplated hereby,
except such as have been obtained or made and are in full force and effect other than those third party approvals or consents which, if not made or obtained, would not cause a Default hereunder, or could not reasonably be expected to have a Material
Adverse Effect, 

  
 2 

 (c)    will not violate any Sanctions and Applicable Law
or any Organic Documents of any Obligor or any Restricted Subsidiary, or any order of any Governmental Authority, 

(d)    will not violate or result in a default under any Material Contract, or give rise to a right
thereunder to require any payment to be made by any Obligor or any Restricted Subsidiary and 
 (e)    
will not result in the creation or imposition of any Lien on any Property of any Obligor or any Restricted Subsidiary (other than the Liens created by the Loan Documents); 

4.2    this Agreement has been duly executed and delivered by such Obligor and constitutes a legal, valid and binding
obligation of such Obligor, as applicable, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles
of equity, regardless of whether considered in a proceeding in equity or at law; and 
 4.3    no Default or Event of
Default (other than any Specified Default) has occurred and is continuing. 

5.    Reaffirmation.  Each of the Obligors hereby confirms its respective guarantees, pledges, grants of
security interests and other obligations, as applicable, under and subject to the terms of each of the Loan Documents to which it is party, and agrees that such guarantees, pledges, grants of security interests and other obligations, and the terms
of each of the Loan Documents to which it is a party, are not impaired or affected in any manner whatsoever and shall continue to be in full force and effect. Each Obligor acknowledges and agrees that any of the Loan Documents to which it is a party
or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Agreement. 

6.    Miscellaneous. 

6.1    Captions.  Section captions used in this Agreement are for convenience only, and
shall not affect the construction of this Agreement. 
 6.2    Governing
Law.  UNLESS EXPRESSLY PROVIDED IN ANY LOAN DOCUMENT, THIS AGREEMENT AND ALL CLAIMS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES EXCEPT FEDERAL LAWS RELATING TO
NATIONAL BANKS. 
 6.3    Severability.  Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be valid under Applicable Law. If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining provisions of this
Agreement shall remain in full force and effect. 
 6.4    Successors and
Assigns.  This Agreement shall be binding upon the parties hereto and their respective successors and assigns, and shall inure to the sole benefit of the parties and their respective successors and assigns. 

  
 3 

 6.5    References.  Any reference to
the Loan Agreement contained in any notice, request, certificate, or other document executed concurrently with or after the execution and delivery of this Agreement shall be deemed to include this Agreement unless the context shall otherwise
require. 
 6.6    Loan Document.  This Agreement shall be deemed to be and shall
constitute a Loan Document. 
 6.7    Continued Effectiveness.  Notwithstanding
anything contained herein, the terms of this Agreement are not intended to and do not serve to effect a novation as to the Loan Agreement. The Loan Agreement and each of the Loan Documents remain in full force and effect. 

6.8    Entire Agreement.  This Agreement constitutes the entire agreement, and supersede
all prior understandings and agreements, among the parties relating to the subject matter thereof. 

6.9    Counterparts; Execution.  This Agreement may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement shall become effective when Administrative Agent has received counterparts bearing the signatures of all parties hereto.
Delivery of a signature page of this Agreement by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart of such agreement. Any signature, contract formation or record-keeping through electronic means
shall have the same legal validity and enforceability as manual or paper-based methods, to the fullest extent permitted by Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic
Signatures and Records Act, or any similar state law based on the Uniform Electronic Transactions Act. 
 [Remainder of Page Intentionally
Left Blank] 

  
 4 

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

			
	BORROWERS:
	
	KEY ENERGY SERVICES, INC.
		
	By 	 	    /s/ J. Marshall Dodson
		 	 Name:  J. Marshall Dodson

Title:    Interim Chief Executive Officer,

Senior Vice President and

Chief Financial Officer

 
			
	
	KEY ENERGY SERVICES, LLC.
		
	By 	 	    /s/ J. Marshall Dodson
		 	 Name:  J. Marshall Dodson

Title:    Interim Chief Executive Officer,

Senior Vice President and

Chief Financial Officer

  

  
 

 

 
			
	ADMINISTRATIVE AGENT AND LENDERS:
	
	 BANK OF AMERICA, N.A., as Administrative Agent

and a Lender

		
	By 	 	    /s/ Ajay Jagsi
		 	 Name:  Ajay Jagsi

Title:    Vice President

  

  
 

 

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

		
	By 	 	    /s/ William M. Plough
		 	 Name:   William M. Plough

Title:    Vice President

  

  
 

 

 
			
	 SIEMENS FINANCIAL SERVICES, INC.,

as a Lender

		
	By 	 	    /s/ Michael L. Zion
		 	 Name:  Michael L. Zion

Title:    Vice President

 
			
	
	
		
	By 	 	    /s/ John Finore
		 	 Name:  John Finore

Title:    Vice PresidentExhibit 4.2

 

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-[●]
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 [●], 20[●] [DATE THAT
IS 180 DAYS FROM THE CLOSING OF THE OFFERING]. VOID AFTER 5:00 P.M., EASTERN TIME, [●], 20[●]
[DATE THAT IS THREE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].

 

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 [●], 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 [●], 20[●]
(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, [●], 20[●] [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 $[●] 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.

 

 

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

 

     

     

    

 

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.

 

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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