Document:

Palatin Technologies, Inc. 8-k 

EXHIBIT
4.2

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD (I) IN THE ABSENCE OF (a)
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (B) PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY, AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS or (II) Unless sold pursuant to rule 144 or rule 144a under said act. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

SERIES
B COMMON STOCK PURCHASE WARRANT CERTIFICATE

Palatin
Technologies, Inc.

No. Series
2012 B ___________

Number
of Shares of Common Stock: _____________

Date
of Issuance: July 3, 2012 (the “Issuance Date”)

 THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________, the
registered holder of this Warrant or its permitted assigns (the “Holder”) is entitled, upon the terms and subject
to the limitations on exercise and the conditions set forth in this Warrant, at any time or times on or after the Authorized Shares
Increase Date, but not after 5:30 p.m., New York City time, on the Expiration Date, to subscribe for and purchase from Palatin
Technologies, Inc., a Delaware corporation (the “Company”), up to ______ shares (the “Warrant Shares”)
of Common Stock.

Section
1.          Definitions. Capitalized terms used in this Warrant have the meanings set forth in this Warrant including Section
14 below; provided, however, that capitalized terms used and not otherwise defined in this Warrant shall have the meanings
set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated July 2, 2012, by
and among the Company, the Holder and the other investors referred to therein.

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Section
2.          Exercise.

a)          Exercise of Warrant. Subject to the terms and conditions of this Warrant (including,
without limitation, the limitation set forth in Section 2(d)), this Warrant may be exercised by the Holder on any day on
or after the Authorized Shares Increase Date, in whole or in part (but not as to fractional shares), by delivery of a written
notice, in the form attached to this Warrant as Exhibit A or in such other form as is
satisfactory to the Company (the “Exercise Notice”), of the Holder’s election to exercise this Warrant.
Within two (2) Trading Days following the Exercise Notice, the Holder shall make payment to the Company of an amount equal to
the applicable Exercise Price (as defined in Section 2(b)) multiplied by the number of Warrant Shares as to which this Warrant
is being exercised (the “Aggregate Exercise Price”) in cash or by wire transfer of immediately available funds,
or by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 2(c)).
The Holder shall not be required to surrender this Warrant in order to effect an exercise under this
Warrant, unless the Holder has purchased all of the Warrant Shares available under this Warrant
and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation as soon as practicable after the date the final Exercise Notice is delivered to the Company. Execution
and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation
of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares.
On or before the second Trading Day following the date on which the Company has received the Exercise Notice, the Company shall
transmit by email or facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and the Company’s
transfer agent for the Common Stock (the “Transfer Agent”). The Company shall deliver any objection to the
Exercise Notice on or before the second Trading Day following the date on which the Company has received the Exercise Notice.
In the event of any discrepancy or dispute as to the remaining number of Warrant Shares, the records of the Company and the Holder’s
broker or brokers shall be controlling and determinative in the absence of manifest error. On or before the third Trading Day
following the date on which the Company has received the Exercise Notice, but not in any event prior to the time the Holder
has delivered the Aggregate Exercise Price (or notice of a Cashless Exercise) (the “Share
Delivery Date”), the Company shall, (X)  provided that the Transfer Agent is participating in the Direct
Registration System (including any successor thereto, “DRS”) or The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program (including any successor thereto, the “FAST Program”), upon the
request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such
exercise to either the Holder’s or its designee’s balance account with DTC through its Deposit /Withdrawal At Custodian
system, or to the Holder’s or its designee’s direct registration account, or (Y), if the Transfer Agent is not participating
in either the DRS or FAST Program, issue and dispatch by overnight courier to the address as specified in the Exercise Notice,
a certificate (which shall be unlegended, provided that the Warrant Shares subject to the Exercise Notice are included
in an effective Registration Statement or all applicable requirements of Rule 144, including the holding period thereof, are met,
and subject in all cases to requirements of, and compliance with,

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securities
laws then in effect), registered in the Company’s share register in the name of the Holder or its designee, for the number
of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Notice, the
Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC or DRS account
or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant is submitted in
connection with any exercise pursuant to this Section 2(a) and the number of Warrant Shares represented by this Warrant submitted
for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable
and in no event later than three Trading Days after any exercise and at its own expense, issue a new Warrant (in accordance with
Section 4(b)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. The Company shall pay any
and all taxes that may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; provided,
however, that the Company shall not be required to pay any stamp or other tax or governmental charge required to be paid
in connection with any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other
than that of the Holder or any other Attribution Party (as defined below), and in the event that any such transfer is involved,
the Company shall not be required to effect any such transfer until such tax or other charge shall have been paid or it has been
established to the Company’s reasonable satisfaction that no such tax or other charge is due. The Holder shall be responsible
for all income tax liability that may arise as a result of holding or transferring this Warrant. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares under this Warrant, the number of Warrant Shares available for purchase under this Warrant
at any given time may be less than the amount stated on the face of this Warrant.

b)          Exercise Price. The exercise price per share of Common Stock issuable under this Warrant shall be $0.01, subject to adjustment
pursuant to the terms of this Warrant (the “Exercise Price”).

c)          Cashless Exercise. Upon exercise of this Warrant, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise, the Holder can elect instead to receive upon such exercise the “Net Number” of
shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

Net Number =
(A x B) - (A x C)

           
                         B

For
purposes of the foregoing formula:

A
= the total number of shares with respect to which this Warrant is then being exercised;

 

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B
= the Weighted Average Price of the shares of Common Stock on the Trading Day immediately preceding the date of the Exercise
Notice; and

C
= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

d)          Beneficial Ownership Limitation on Exercises. The Company shall not effect the exercise of any
portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, to the extent that after
giving effect to such exercise, such Holder together with the other Attribution Parties (as defined below) collectively would
beneficially own in excess of 9.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and
all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon
(i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any other Attribution Party
and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including, without
limitation, any convertible notes or convertible preferred stock or warrants, including the SPA Warrants) beneficially owned by
the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained
in this Section 2(d). For purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d)
of the Exchange Act. For purposes of determining the number of shares of Common Stock the Holder may acquire upon the exercise
of this Warrant without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock
as reflected in (1) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report
on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public
announcement by the Company or (3) any other written notice by the Company or the Transfer Agent setting forth the number of shares
of Common Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives an Exercise
Notice from a Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding
Share Number, the Company shall (i) notify such Holder in writing of the number of shares of Common Stock then outstanding and,
to the extent that such Exercise Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant
to this Section 2(d), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares
to be purchased pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the “Reduction
Shares”) and (ii) as soon as reasonably practicable, the Company shall return to the Holder
any exercise price paid by the Holder for the Reduction Shares.  For any reason at any time, upon the written or oral request
of the Holder, where such request indicates that it is being made pursuant to this Warrant, the Company
shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of shares of Common
Stock then outstanding.

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In
any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including the SPA Warrants, by the Holder and any other Attribution Party since the date as of which
the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Holder upon
the exercise of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially own, in the
aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d)
of the Exchange Act), the number of shares so issued by which the Holder’s and the other Attribution Parties’ aggregate
beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and
shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. As soon as reasonably
practicable after the issuance of the Excess Shares has been deemed null and void, the Company shall return to the Holder the
exercise price paid by the Holder for the Excess Shares. Upon delivery of a written notice to the Company, the Holder may
from time to time increase (with such increase not effective until the sixty-first (61st) day after delivery of such
notice) or decrease the Maximum Percentage to any other percentage not in excess of 19.99% (except that such increased percentage
may exceed 19.99% in the event that (x) the Company obtains the approval of its stockholders as required by the applicable rules
of the Principal Market or applicable Eligible Market for issuances of shares of Common Stock in excess of such amount or (y)
the Company is not subject to rules of the Principal Market or applicable Eligible Market limiting issuances of shares of Common
Stock in excess of such amount) as specified in such notice; provided that (i) any such increase in the Maximum Percentage will
not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such
increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of the SPA Warrants
that is not an Attribution Party. For purposes of clarity, the shares of Common Stock underlying this Warrant in excess of the
Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section
13(d) or Rule 16a-1(a)(1) of the Exchange Act. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to the extent necessary to
correct this paragraph or any portion of this paragraph which may be defective or inconsistent with the intended beneficial ownership
limitation contained in this Section 2(d) or to make changes or supplements necessary or desirable to properly give effect to
such limitation. The limitation as contained in this paragraph may not be waived and shall apply to a successor holder of this
Warrant.

As
used in this Warrant, “Attribution Parties” means, collectively, the following Persons and entities: (i) QVT
Fund IV LP, (ii) QVT Fund V LP, (iii) Quintessence Fund L.P., (iv) QVT Financial LP, (v) QVT Financial GP LLC, (vi) QVT Associates
GP LLC, and (vii) any other investment vehicle, including any other funds, feeder funds or managed accounts, currently, or from
time to time after the Issuance Date, directly or indirectly managed or advised by QVT Financial LP or any of its Affiliates or
principals, (viii) any direct or indirect Affiliates of the Holder or any of the foregoing, (ix) any Person acting or who could
be deemed to be acting as a Group together with the Holder

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 or
any of the foregoing and (x) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be
aggregated with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the Exchange Act. For clarity,
the purpose of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

e)          Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company
shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price.

f)           Failure to Timely Deliver Shares. In addition to any other rights available to the Holder, if the Company fails to deliver
to the Holder a certificate or the certificates representing the Warrant Shares or to credit the Holder’s balance account
with DRS or DTC or through the FAST Program for such number of Warrant Shares to which the Holder is entitled upon the Holder’s
exercise pursuant to an exercise on or before the Share Delivery Date, and if after such date the Holder purchases (in an open
market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares that the Holder anticipated receiving from the Company upon such exercise
(a “Buy-In”), then the Company shall, within three Trading Days after the Holder’s request and in the
Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price
(including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the “Buy-In
Price”), at which point the Company’s obligation to deliver such certificate or credit such Holder’s balance
account with DRS or DTC (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver
to the Holder a certificate or certificates representing such Common Stock or credit the Holder’s balance account with DRS
or DTC and  pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product
of (A) such number of shares of Common Stock, times (B) the Weighted Average Price of the Common Stock on the date of
the event giving rise to the Company’s obligation to deliver such certificate. The Company shall be liable for all payments
to the Holder pursuant to this Section 2(f) and such payments shall be a liability and debt obligation of the Company, and the
Holder shall be a creditor of the Company with respect to such obligation, that is immediately due and payable pursuant to and
in accordance with this Section 2(f).

Section
3.          Certain Adjustments.

a)      
Stock Dividends and Splits. If the Company, at any time from and after the Issuance Date and while this Warrant is outstanding:
(i) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares
of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Shares will be proportionately increased, or (ii) combines (by combination, reverse stock split
or otherwise) one or more classes of its outstanding shares of Common

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 Stock
into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 3(a) shall become effective
at the close of business on the date the subdivision or combination becomes effective. If any event occurs of the type contemplated
by the provisions of this Section 3(a) but not expressly provided for by such provisions (including, without limitation,
the granting of stock appreciation rights, phantom stock rights or other rights with equity features to the holders of the Company’s
equity securities), then the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and
the number of Warrant Shares so as to protect the rights of the Holder as if it had been a holder of
the shares of Common Stock issuable upon exercise of this Warrant (without regard to any limitation on such exercise of this Warrant
and as if the Increased Shares Amendment had, as of such date, been adopted and become effective); provided, that
no such adjustment will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant
to this Section 3(a) in any manner that is adverse to the Holder.

b)      
Par Value. The Company shall not subdivide (by any stock split, stock dividend, recapitalization or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of shares if it would cause the Exercise Price to be less
than the par value of the Common Stock.

c)      
Rights Upon Distribution of Assets. If the Company shall declare or make any dividend or other distributions of its assets
(or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time
after the Issuance Date, then, in each such case, the Holder shall be entitled to participate in such
Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise of this Warrant
and as if the Increased Shares Amendment had, as of such date, been adopted and become effective) immediately before the date
of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s
right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership
of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held
in abeyance for the benefit of the Holder until such time or times as its right thereto would not result in the Holder
and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution
(and any Distributions declared or made on such initial Distribution or on any subsequent Distribution to be held similarly in
abeyance) to the same extent as if there had been no such limitation).

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d)      
Fundamental Transaction.

(1)
         All Fundamental Transactions.

(a)          Upon the occurrence or consummation of any Fundamental Transaction (and it shall be a required condition to the occurrence or
consummation of any Fundamental Transaction that) the Company and the Successor Entity or Successor Entities, jointly and severally,
shall succeed to, and the Company shall cause any Successor Entity or Successor Entities to jointly and severally succeed to,
and be added to the term “Company” under this Warrant (so that from and after the date of such Fundamental Transaction,
each and every provision of this Warrant referring to the “Company” shall refer instead to each of the Company and
the Successor Entity or Successor Entities, jointly and severally), and the Company and the Successor Entity or Successor Entities,
jointly and severally, may exercise every right and power of the Company prior thereto and shall assume all of the obligations
of the Company prior thereto under this Warrant with the same effect as if the Company and such Successor Entity or Successor
Entities, jointly and severally, had been named as the Company in this Warrant.

(b)          No
later than (i) thirty (30) days prior to the occurrence or consummation of any Fundamental Transaction or (ii) if later, the first
Trading Day following the date the Company first becomes aware of the occurrence or potential occurrence of a Fundamental Transaction,
the Company shall deliver written notice thereof via facsimile and overnight courier to the holders of SPA Warrants (a “Fundamental
Transaction Notice”).

(c)          The
provisions of this Section 3(d) shall apply to each and every Fundamental Transaction and multiple Fundamental Transactions.

(2)          Non-Company
Controlled Fundamental Transactions.

(a)          Immediately
upon exercise of this Warrant following the occurrence or consummation of a Non-Company Controlled Fundamental Transaction, the
Company and the Successor Entity or Successor Entities shall deliver to the Holder such shares of stock, securities, cash, assets
or any other property whatsoever (including warrants or other purchase or subscription rights), which for purposes of clarification
may continue to be shares of Common Stock, if any, that the Holder would have been entitled to receive upon the happening of such
Non-Company Controlled Fundamental Transaction or the record, eligibility or other determination date for the event resulting
in such Non-Company Controlled Fundamental Transaction, had this Warrant been exercised immediately prior to such Non-Company
Controlled Fundamental Transaction or the record, eligibility or other determination date for the event resulting in such Non-Company
Controlled Fundamental Transaction (without regard to any limitations on the exercise of this Warrant
and as if the Increased Shares Amendment had, as of such date, been adopted and become effective), as adjusted in accordance
with the provisions of this Warrant.

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(b)          Immediately
upon occurrence or consummation of a Non-Company Controlled Fundamental Transaction (and it shall be a required condition to the
occurrence or consummation of such Non-Company Controlled Fundamental Transaction that) the Company and the Successor Entity or
Successor Entities shall deliver to the Holder confirmation that the Company and the Successor Entity or Successor Entities shall
comply with the requirements set forth in this Warrant.

(c)          It
shall be a required condition to the occurrence or consummation of such Non-Company Controlled Fundamental Transaction that, under
no circumstances may the Holder be treated better or in a manner more advantageous than the holders of shares of Common Stock
in such Non-Company Controlled Fundamental Transaction pursuant to the terms of this Section 3(d).

(3)          Company
Controlled Fundamental Transactions.

(a)          Upon occurrence or consummation of a Company Controlled Fundamental Transaction, the Company and the Successor Entity or Successor
Entities shall deliver to the Holder upon exercise of this Warrant immediately upon the occurrence or consummation of Company
Controlled Fundamental Transaction or at any time thereafter, as elected by the Holder solely at its option, (i) shares of Common
Stock or Successor Capital Stock, (ii) such shares of stock, securities, cash, assets or any other property whatsoever (including
warrants or other purchase or subscription rights), which for purposes of clarification may continue to be shares of Common Stock,
if any, that the Holder would have been entitled to receive upon the happening of such Company Controlled Fundamental Transaction
or the record, eligibility or other determination date for the event resulting in such Company Controlled Fundamental Transaction,
had this Warrant been exercised immediately prior to such Company Controlled Fundamental Transaction or the record, eligibility
or other determination date for the event resulting in such Company Controlled Fundamental Transaction (without regard to any
limitations on the exercise of this Warrant and as if the Increased Shares Amendment had, as of such
date, been adopted and become effective), as adjusted in accordance with the provisions of this Warrant, or (iii) pursuant
to and in accordance with the following paragraph, a cash payment equal to the Black Scholes Value of
the elected portion of this Warrant (or, at the election of the Holder, any elected portion of this Warrant).

(b)          (i)
Without limiting in any manner any other rights, obligations and terms set forth in this Section 3(d) and in addition to any other
rights set forth in this Section 3(d), and regardless of any provision in any agreement, contract or other document to which the
Company or any Successor Entity is a party (including, without limitation the Purchase Agreement
and the Warrants) that may be construed to limit the Company’s or any Successor Entity’s obligation to make a payment
pursuant to this paragraph, at the delivery of a request of the Holder (which request shall be made solely at the option of the
Holder and the Holder has the sole right to determine whether or not to exercise such option) to the Company, the Successor Entity
and/or the Successor

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Entities (a “Fundamental Transaction Early Termination Notice”) at any time and
from time to time after the Holder becoming aware in any way of a Company Controlled Fundamental Transaction (including through
receipt of a Fundamental Transaction Notice), the Company and/or the Successor Entity and/or
Successor Entities, jointly and severally, shall (i) comply with their escrow obligations as set forth
in the following paragraph and (ii) pay to the Holder cash in an amount equal to the Fundamental Transaction Warrant Early
Termination Price with respect to, as elected and determined by the Holder solely at its option,
all or a portion of the Warrant. The Fundamental Transaction Early Termination Notice shall
indicate the portion (which may be all of this Warrant) of this Warrant with respect to which the Holder is electing to receive
the Fundamental Transaction Warrant Early Termination Price. The Company and the Successor Entity
or Successor Entities, jointly and severally, shall become liable for the Fundamental Transaction
Warrant Early Termination Price and such payment shall be a liability and debt obligation of the Company
and the Successor Entity or Successor Entities, jointly and severally, and the Holder shall
be a creditor of the Company and the Successor Entity or Successor Entities, jointly and severally, with
respect to such obligation, that is immediately due and payable upon the delivery by the Holder of the Fundamental Transaction
Early Termination Notice. The Holder may deliver one or more Fundamental Transaction Early Termination Notices pursuant to this
Warrant with respect to all or any portion of the Warrant.

(ii)The
Company and the Successor Entity or Successor Entities shall not effect a Company Controlled Fundamental Transaction unless and
shall not provide for or make any payment (of cash or otherwise) relating to any such Company Controlled Fundamental Transaction
unless (and it shall be a required condition to the occurrence or consummation of any Company Controlled Fundamental Transaction
that) the Company and the Successor Entity or Successor Entities, jointly and severally, shall first (i) place into an escrow
account with an independent escrow agent, at least three (3) Business Days prior to the closing date of the Company Controlled
Fundamental Transaction (the “Fundamental Transaction Escrow Deadline”), an amount of cash equal to the Fundamental
Transaction Warrant Early Termination Price with respect to all SPA Warrants, to be paid by the Company and the Successor Entity
or Successor Entities, jointly and severally, in accordance with this Section 3(d)(3)(b) to holders of SPA Warrants that deliver
any Fundamental Transaction Early Termination Notice in accordance with the preceding paragraph, and (ii) pay to the holders of
SPA Warrants that deliver any Fundamental Transaction Early Termination Notice on or prior to the closing date of the Company
Controlled Fundamental Transaction their applicable Fundamental Transaction Warrant Early Termination Price. Within
five (5) Business Days after receipt of a Fundamental Transaction Early Termination Notice (or, if later, on the effective date
of the Company Controlled Fundamental Transaction), the Company and the Successor Entity or Successor Entities, jointly
and severally, shall pay or shall instruct the escrow agent to pay the Fundamental Transaction Warrant Early Termination Price
to all applicable holders of SPA Warrants that have delivered a Fundamental Transaction Early Termination Notice. For purposes
of determining the amount required to be placed in escrow pursuant to the provisions of this paragraph and without affecting the
amount of the actual Fundamental Transaction Warrant Early Termination Price, the calculation of the price referred to in clause
(iv) of the definition of Black Scholes Value with respect to Closing Sale Price of the Common Stock shall be determined based
on the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date that the funds are deposited with
the escrow agent.

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(iii)Following
the receipt of a Fundamental Transaction Early Termination Notice from the Holder, in the event that the Company or any Successor
Entity attempts to consummate a Company Controlled Fundamental Transaction without placing the Fundamental Transaction Warrant
Early Termination Price in escrow in accordance with the provisions above or without payment of the Fundamental Transaction Warrant
Early Termination Price to the Holder prior to consummation of such Company Controlled Fundamental Transaction, the Holder shall
have the right to apply for an injunction in any state or federal courts sitting in the City of New York, borough of Manhattan
to prevent the closing of such Company Controlled Fundamental Transaction until the Fundamental Transaction Warrant Early Termination
Price is paid to the Holder and the Company and the Successor Entity or Successor Entities agree to waive any requirement by the
Holder to post any bond in connection therewith. It shall be a required condition precedent to the consummation of any Company
Controlled Fundamental Transaction that, and no Company Controlled Fundamental Transaction may be consummated unless, the Company
and the Successor Entity or Successor Entities, jointly and severally, have either (i) complied with the escrow deposit required
above or (ii) confirmed with the Holder in writing that the Holder is not requiring such escrow deposit prior to consummation
of the Company Controlled Fundamental Transaction.

(iv)Notwithstanding
anything to the contrary in this Section 3(d), until the Fundamental Transaction Warrant Early Termination Price is paid in full,
this Warrant may be exercised, in whole or in part, by the Holder into shares of Common Stock and any part of this Warrant not
so exercised or redeemed shall retain all of the other rights set forth in this Warrant.

(v)The
parties hereto agree that in the event of the early termination of any portion of this Warrant under this Section 3(d)(3)(b),
the Holder’s actual damages would be uncertain and difficult to estimate because of the parties’ inability to predict
the losses of the Holder, future Common Stock market prices, other opportunities of the Holder had
it not invested in this Warrant and the uncertainty of the availability of a suitable substitute investment opportunity for the
Holder. Accordingly, any payment due under this Section 3(d)(3)(b) is intended by the parties to be, and shall be deemed,
a fair and reasonable estimate of the amount required to compensate the Holder for the Holder’s loss of its investment opportunity
and not a penalty. In the event that the Holder delivers a Fundamental Transaction Early Termination Notice pursuant to a Clause
C Fundamental Transaction and the Company pays in full to the Holder, pursuant to and in accordance with the terms of this Section
3(d)(3)(b), the related Fundamental Transaction Warrant Early Termination Price, the Holder shall not be entitled to any other
payment for damages under this Warrant solely in connection with such Clause C Fundamental Transaction.

    	11

    	 

    

(c)          
In the event of a Company Controlled Fundamental Transaction, if the Successor Entity and/or Successor Entities is a publicly
traded corporation whose common stock is quoted on or listed for trading on an Eligible Market, then solely at the request of
the Holder (and in addition to and without limiting any other right under this Warrant), such Successor Entity or Entities shall
deliver to the Holder in exchange for this Warrant a security of the Successor Entity and/or Successor Entities evidenced by a
written instrument substantially similar in form and substance to this Warrant. Such security shall be exercisable for a number
of shares of capital stock of the Successor Entity and/or Successor Entities (the “Successor Capital Stock”)
equivalent (as set forth below) to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without
regard to any limitations on the exercise of this Warrant and as if the Increased Shares Amendment
had, as of such date, been adopted and become effective) prior to such Company Controlled Fundamental Transaction. The
number of shares of Successor Capital Stock to be delivered to Holder shall equal the quotient of (A) the Black Scholes Value
of this Warrant at the time of consummation of such Company Controlled Fundamental Transaction divided by (B) the per share Closing
Sale Price of such Successor Capital Stock on the Trading Day immediately prior to the consummation or occurrence of the Company
Controlled Fundamental Transaction. Such security shall be satisfactory to the Holder, and with an identical exercise price to
the Exercise Price under this Warrant. The parties acknowledge that the determination of the number of shares of Successor Capital
Stock as set forth above is for the purpose of protecting after the consummation or occurrence of such Company Controlled Fundamental
Transaction the economic value of this Warrant that was in effect immediately prior to the consummation or occurrence of such
Company Controlled Fundamental Transaction, as elected by the Holder solely at its option.

(d)          Any
security issuable or potentially issuable to the Holder pursuant to the terms of this Warrant upon a Company Controlled Fundamental
Transaction shall be registered and freely tradable by the Holder without any restriction or limitation or the requirement to
be subject to any holding period pursuant to any applicable securities laws.

(4)          Clarifications.
For purposes of clarification and without limiting any rights set forth in this Warrant, (i) upon any Fundamental Transaction
or at any time thereafter, at the Holder’s request, the Holder shall have the right to require the Company and/or the Successor
Entity and/or Successor Entities, jointly and severally, to deliver upon the occurrence or consummation (and it shall be a required
condition to such occurrence or consummation) of the Fundamental Transaction, in satisfaction of this Warrant (but not in lieu
of Distributions and Purchase Rights still issuable under Sections 3(c) and 3(e), which shall continue to be receivable on the
Common Stock or on the such shares of stock, securities, cash, assets or any other property otherwise receivable with respect
to or in exchange for shares of Common Stock), such shares of stock, securities, cash, assets or any other property whatsoever
(including warrants or other purchase or subscription rights and any shares of Common Stock) which the Holder would have been
entitled to receive upon the occurrence or consummation of such Fundamental Transaction or the record, eligibility or other determination
date for the event resulting in

    	12

    	 

    

such Fundamental Transaction, had this Warrant been exercised in full (without regard to any limitations
on exercise of this Warrant and as if the Increased Shares Amendment had, as of such date, been adopted
and become effective) with such Holder becoming a holder of such shares of Common Stock issuable upon such exercise immediately
prior to such Fundamental Transaction or the record, eligibility or other determination date for the event resulting in such Fundamental
Transaction; (ii) the purpose of this Section 3(d) is to assure that in all circumstances of any Fundamental Transaction or similar
corporate type transaction, the Holder will have rights no worse (and, other than in connection with a Company Controlled Fundamental
Transaction, no better) in any way than or adversely affected relative to or in any manner not as advantageous (or, other than
in connection with a Company Controlled Fundamental Transaction, disadvantageous) as those of a holder of the number of shares
of Common Stock issuable upon exercise of this Warrant (without regard to any limitations on exercise of this Warrant
and as if the Increased Shares Amendment had, as of such date, been adopted and become effective) as if this Warrant had
already been exercised into Common Stock (without regard to any limitations on exercise of this Warrant and as if the Increased
Shares Amendment had, as of such date, been adopted and become effective) prior to such Fundamental Transaction or the record,
eligibility or other determination date for the event resulting in such Fundamental Transaction and shall not receive worse (or,
other than in connection with a Company Controlled Fundamental Transaction, better) treatment, be prejudiced or adversely affected
relative to or treated in any manner not as advantageous (or, other than in connection with a Company Controlled Fundamental Transaction,
disadvantageous) as the treatment afforded to any holders of shares of Common Stock in such Fundamental Transaction or similar
corporate type transaction by virtue of the fact that the Holder holds this Warrant rather than the shares of Common Stock issuable
upon exercise of this Warrant (without regard to any limitations on exercise of this Warrant and as if the Increased Shares Amendment
had, as of such date, been adopted and become effective); (iii) it is specifically intended that no Person attempt to structure
a transaction in any manner to circumvent the intent of this Section 3(d) and therefore the provisions
of this Section 3(d) shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this
Section 3(d) to the extent necessary to correct this Section 3(d) or any portion of this Section 3(d) which may be defective or
inconsistent with the intended treatment of the Holder or to make changes or supplements necessary or desirable to properly give
effect to such treatment as no worse (and, other than in connection with a Company Controlled Fundamental Transaction,
no better) in any way than or adversely affected relative to or in any manner not as advantageous
(or, other than in connection with a Company Controlled Fundamental Transaction, disadvantageous) as
a holder of the number of shares of Common Stock issuable upon exercise of this Warrant (without regard to any limitations on
exercise of this Warrant and as if the Increased Shares Amendment had, as of such date, been adopted and become effective) in
any Fundamental Transaction or similar corporate type transaction as contained in this Warrant;
(iv) it is specifically intended, among other events and transactions, that any tender offer or similar transaction made with
respect to the Company or 50% or more of the Common Stock shall be deemed a Fundamental Transaction under this Warrant; (v) notwithstanding
any provision of this Warrant that may be interpreted to the contrary, the Holder has an express right to receive at least the
same proportion and amount of cash, if

 

    	13

    	 

    

 

any, per Warrant Share (provided, that the foregoing shall in no way limit the rights of
the Holder, solely at its option, to receive the Fundamental Transaction Warrant Early Termination Price entirely in cash) that
each holder of a share of Common Stock is entitled to receive from the Company or any Successor Entity or Successor Entities,
upon any Fundamental Transaction (such as a cash merger or cash tender offer) where cash comprises any portion of the applicable
consideration or payment, that it would have been entitled to receive had it exercised this Warrant prior to the Fundamental Transaction
or the record, eligibility or other determination date for the event resulting in such Fundamental Transaction (without
regard to any limitations on the exercise of this Warrant and as if the Increased Shares Amendment
had, as of such date, been adopted and become effective); (vi) the provisions of this Section 3(d) may not be waived, modified
or otherwise implemented otherwise than in strict conformity with the intention of this Section 3(d) and shall apply to a successor
holder of this Warrant and any Successor Entity or Successor Entities; and (vii) notwithstanding any provision of this Warrant,
the Purchase Agreement or any other agreement or contract that could in any way be read to limit the right of the Holder to elect
and receive at any time in perpetuity any payments pursuant to Section 5(a), no provision of this
Warrant, the Purchase Agreement or any other agreement or contract shall limit the rights of the Holder (including, without
limitation, the right to receive any Redemption Price) to receive at any time in perpetuity any
payments pursuant to Section 5(a).

(5)          Section
5(a) Payment Obligation. Notwithstanding anything set forth in this Section 3(d) or anywhere else in this Warrant or in any
other Transaction Document, nothing in this Section 3(d) or anywhere else in this Warrant or in any other Transaction Document
shall limit the rights of the Holder (including, without limitation, the right to receive any Redemption Price) pursuant to Section
5(a).

e)      
Purchase Rights. In addition to any adjustments pursuant to Section 3 above, if at any time after the Issuance Date
and prior to the Expiration Date the Company grants, issues or sells any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase
Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of this Warrant (without regard to any limitations on exercise of this Warrant and as if the Increased Shares
Amendment had, as of such date, been adopted and become effective) immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of
shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however,
that to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder and the
other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase
Right to such extent (and shall not be entitled to beneficial ownership of such Common Shares as a result of such Purchase Right
to such extent) and such Purchase Right (and beneficial ownership) to such extent shall be held in abeyance for the Holder until
such time or times as its right

    	14

    	 

    

thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold
on such initial Purchase Right or on any subsequent Purchase Right to be held similarly in abeyance) to
the same extent as if there had been no such limitation).

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

Section
4.Transfer of Warrant.

a)      
Transferability. Subject to compliance with applicable securities laws, this Warrant and all rights under this Warrant
are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with the Assignment Form, in the form attached to this Warrant as Exhibit B or in such other form as is
satisfactory to the Company, duly executed by the Holder or its agent or attorney and, if any, funds sufficient to pay any transfer
taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned, and this Warrant shall promptly be cancelled. This Warrant, if properly assigned in accordance herewith, may
be exercised by a new holder for the purchase of Warrant Shares prior to having a new Warrant issued. 

b)      
New Warrants. This Warrant may be divided or combined with other Series B Warrants upon presentation of this Warrant at
the aforesaid office of the Company or its designated agent, together with a written notice specifying the names and denominations
in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Notwithstanding anything to the contrary
in this Section 4(b), in no event shall this Warrant be subdivided into units of less than 5,000 Warrant Shares (as adjusted for
stock splits, stock dividends, recapitalizations or similar events) and such new Warrants shall not be further subdivided. Subject
to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute
and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such
notice. All Warrants issued on transfers or exchanges shall include reference to the initial Issuance Date set forth on the first
page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

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

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Section
5.          Increase in Authorized Capital and Reservation of Warrant Shares.

a)      
Increase in Authorized Common Stock. 

(1)          Following
the Issuance Date, the Company shall take all corporate action necessary to call a meeting of its stockholders (the “Stockholders
Meeting”), as soon as practicable, but in no event later than September 30, 2012 (the “First Authorized Shares
Increase Deadline”), for the purpose of seeking approval of the Company’s stockholders to amend the Company’s
Certificate of Incorporation to increase the number of shares of the Company’s authorized Common Stock from 100,000,000
shares to no less than 200,000,000 shares (the “Increased Shares Stockholder Approval”). No later than one
(1) Trading Day following the Increased Shares Stockholder Approval, the Company shall file with the Secretary of State of Delaware
a certificate of amendment to the Company’s Certificate of Incorporation to effect the Increased Shares Stockholder Approval
such that the number of authorized shares of the Company’s Common Stock is at least 200,000,000 shares, which certificate
of amendment shall provide that it shall become immediately effective upon filing (such filing, the “Amendment Filing”,
and the occurrence of both the Increased Shares Stockholder Approval and the Amendment Filing, the “Increased Shares
Amendment”). The date on which the Increased Shares Amendment becomes effective is referred to in this Warrant as the
“Authorized Shares Increase Date”. Without limiting the Company’s obligations under this Section 5, for
the avoidance of doubt, the Company shall not be prohibited from calling additional Stockholders Meetings from time to time.

(2)
       If the Authorized Shares Increase Date has not occurred on or prior to the First Authorized Shares Increase Deadline, the
Company shall take all corporate action necessary to call one or more other Stockholders Meetings, as soon as practicable and
as often as practicable, but in no event later than June 30, 2013 (the “Second Authorized Shares Increase
Deadline”), for the purpose of again seeking approval of the Company’s stockholders for the Increased Shares
Stockholder Approval.

(3)
        If the Authorized Shares Increase Date has not occurred on or prior to the First Authorized Shares Increase Deadline, and
notwithstanding any provision of this Warrant, the Purchase Agreement or any other agreement or contract that could in any
way be read to limit the right of the Holder to elect and receive the following, the Holder at any time and from time to time
thereafter (in perpetuity and with no limitation in time) may require the Company, by delivering one or more notices in
writing (each a “Put Notice” and the date of each such Put Notice, a “Put Notice
Date”), to redeem this Warrant (or, at the option of the Holder, any portion of this Warrant) in full (without
regard to any limitations on exercise of this Warrant), by paying to the Holder cash (the “Redemption
Price”) by wire transfer of immediately available funds in an amount equal to the product of (i) the number of
Warrant Shares set forth by the Holder in each applicable Put Notice and (ii) the highest Redemption Price Average on any
Trading Day during the Put Period. Such Redemption Price shall be paid (i) in the event of a Put Notice delivered prior to
June 30, 2013, on June 30, 2013, and (ii) in the event of a Put Notice delivered on or after June 30, 2013, within five (5)
Trading Days after the applicable Put Notice Date.

    	16

    	 

    

(4)          At
any time and from time to time (in perpetuity and with no limitation in time) after delivering any Put Notice (including, without
limitation, at any time and from time to time prior to or after the Second Authorized Shares Increase Deadline), the Holder shall
have the right, at the Holder’s option, to deliver a notice to the Company (the “Withdrawal Put Notice”),
withdrawing any specified Put Notice previously delivered pursuant to this Warrant and such withdrawal shall be immediately effective,
unless otherwise specified in such Withdrawal Put Notice. For the avoidance of doubt, the delivery of any Withdrawal Put Notice
shall not prejudice in any respect the right of the Holder to deliver any future Put Notice even as to the same Warrant Shares
covered by the withdrawn Put Notices.

(5)          The
Company shall become liable for the applicable Redemption Price relating to any Put Notice immediately following the applicable
Put Notice Date and such amounts shall be a liability and debt obligation of the Company, and the Holder shall be a creditor of
the Company with respect to such obligation, that is immediately due and payable upon the delivery by the Holder of the applicable
Put Notice.

(6)            Each
time the Company seeks the approval of its stockholders for the Increased Shares Stockholder Approval, the Company’s Board
of Directors shall recommend to the Company’s stockholders that the stockholders vote in favor of the Increased Shares Stockholder
Approval at the Stockholders Meeting and take all commercially reasonable action to solicit the approval of the stockholders for
the Increased Shares Stockholder Approval, including filing a proxy statement in a form reasonably acceptable to the Required
Holders and complying with Section 14(a) of the Exchange Act and the rules promulgated thereunder in relation to such proxy statement
and any form of proxy to be sent to the stockholders of the Company in connection with the Stockholders Meeting.

(7)          The
parties hereto agree that in the event of the Company’s failure to adopt the Increased Shares Amendment in accordance with
the terms of this Section 5(a), the Holder’s actual damages would be uncertain and difficult to estimate because of the
parties’ inability to predict the losses of the Holder, future Common Stock market prices, other opportunities of the Holder
had it not invested in this Warrant and the uncertainty of the availability of a suitable substitute investment opportunity for
the Holder. Accordingly, any payment due under this Section 5(a) is intended by the parties to be, and shall be deemed, a fair
and reasonable estimate of the amount required to compensate the Holder for the Holder’s loss of its investment opportunity
as a result of the Company’s failure to perform and not a penalty.

    	17

    	 

    

(8)           If
the Authorized Shares Increase Date has not occurred on or prior to the First Authorized Shares Increase Deadline, then (in addition
to all other rights the Holder has under this Warrant, including without limitation, this Section 5(a)) until either (x) the occurrence
of the Authorized Shares Increase Date or (y) such time that no Series B Warrants are outstanding (such period, the “Interest
Accrual Period”), the Company shall be obligated to pay a cash amount to the Holder by wire transfer of immediately
available funds in an amount equal to the Interest Amount. Any accrued and unpaid Interest Amount shall be paid semi-annually
on each January 1 and July 1 (each such period, commencing as for the first payment of the Interest Amount pursuant to this Section
on the Issuance Date, and otherwise commencing on the date of the payment of the immediately preceding Interest Amount in accordance
with this Section, an “Interest Period”) during the Interest Accrual Period. For purposes of this Section 5(a)(8),
“Interest Amount” shall mean an amount calculated at 10% per annum of the product of (i) the number of shares
underlying the Series B Warrants outstanding during the applicable Interest Period (pro rated for Series B Warrants outstanding
for part of the applicable Interest Period) and (ii) the greater of (x) $0.50 (as adjusted for stock splits, reverse stock splits,
stock dividends, stock combinations, recapitalizations, reorganizations or similar events as necessary to preserve the economic
amount that would result if no such event occurred) and (y) the arithmetic average of the Weighted Average Prices of the Common
Stock for each Trading Day during the applicable Interest Period. The Company shall become liable for the Interest Amount and
such amounts shall be a liability and debt obligation of the Company, and the Holder shall be a creditor of the Company with respect
to such obligation, that is immediately due and payable when due pursuant to the terms of this Warrant.

(9)          Notwithstanding
any provision of this Warrant, the Purchase Agreement or any other agreement or contract that could in any way be read to limit
the right of the Holder to elect and receive at any time in perpetuity any payments pursuant to this Section 5(a), no provision
of this Warrant, the Purchase Agreement or any other agreement or contract shall limit the rights
of the Holder (including, without limitation, the right to receive any Redemption Price) to receive at
any time in perpetuity any payments pursuant to this Section 5(a). 

b)      
Reservation. The Company covenants that it will at all times on and after the Authorized Shares Increase Date reserve and
keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose
of enabling it to issue Warrant Shares upon exercise of this Warrant as provided in this Warrant, the number of shares of Common
Stock which are then issuable and deliverable upon the exercise of this entire Warrant (without regard to any limitations on the
exercise of this Warrant and taking into account the adjustments and restrictions in Section 3),
free from preemptive or any other contingent purchase rights of Persons other than the Holder . The Company covenants that all
shares of Common Stock so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance
with the terms of this Warrant, will be duly and validly authorized, issued and fully paid and nonassessable. The Company will
take all such actions as may be reasonably necessary to assure that such shares of Common Stock may be issued as provided in this
Warrant without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated
quotation system upon which the Common Stock may be listed.

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Section
6.          Miscellaneous.

a)      
No Rights as Stockholder Until Exercise. Except as otherwise provided in this Warrant, this Warrant does not entitle the
Holder to any voting rights nor any right to receive notice of meetings or any other rights as a stockholder of the Company prior
to the exercise of this Warrant as set forth in Section 2.

b)      
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender
and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

c)      
Noncircumvention. The Company covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation,
Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required
to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase
the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect,
(ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant and (iii) shall, from and after the Authorized
Shares Increase Date and for so long as this Warrant is outstanding, take all action necessary to reserve and keep available out
of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, the number
of shares of Common Stock as shall from time to time be necessary to effect the exercise of this Warrant (without regard to any
limitations on exercise of this Warrant).

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

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e)      
Governing Law and Jurisdiction. This Warrant shall be governed by and construed and enforced in accordance with, and all
questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute under this Warrant or in connection herewith
or with any transaction contemplated in this Warrant or discussed in this Warrant, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. The Company hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the address it set forth on the signature page to this Warrant
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained in
this Warrant shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained
in this Warrant shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the
Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or
any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE UNDER
THIS WARRANT OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

f)       
Dispute Resolution. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation
of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via email or facsimile
within two Trading Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the
Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares
within five Trading Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company
shall, within two Trading Days submit via email or facsimile (a) the disputed determination of the Exercise Price to an independent,
reputable investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of
the Warrant Shares to the Company’s independent, outside accountant. The Company shall use reasonable best efforts to cause
the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company
and the Holder of the results no later than 10 Trading Days from the time it receives the disputed determinations or calculations.
Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error. The expenses of the investment bank and accountant will be borne by the Company, unless the
investment bank or accountant determines that the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares by the Company was correct, in which case the expenses of the investment bank and accountant will be borne by the Holder.

    	20

    	 

    
 

g)      
Restrictions and Rule 144. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant are
not registered. For purposes of Rule 144 promulgated under the Securities Act, as in effect on the date of this Warrant, it is
intended that, and the Company acknowledges and agrees that, the Warrant Shares issued in a Cashless Exercise shall be deemed
to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date
this Warrant was originally issued pursuant to the Purchase Agreement. The Company agrees to take all actions, including, without
limitation, the issuance by its legal counsel of any necessary legal opinions required by its transfer agent or otherwise, necessary
to issue the Warrant Shares in a Cashless Exercise without restriction and not containing any restrictive legends without the
need for any action by the Holder; provided, that, in the case of a Cashless Exercise effected between the six month anniversary
and the one year anniversary of the Issuance Date, the Company has satisfied the current public information requirement under
Rule 144(c).

h)      
Nonwaiver. No course of dealing or any delay or failure to exercise any right under this Warrant on the part of Holder
shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies. 

i)        
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Purchase Agreement. The Company shall provide the Holder with
prompt written notice of all actions taken pursuant to this Warrant, including, in reasonable detail, a description of such action
and the reason or reasons therefor. Without limiting the generality of the foregoing, the Company will give written notice to
the Holder (i) reasonably promptly following any adjustment of the Exercise Price or the number of Warrant Shares, setting
forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least 10 days prior to the
date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares
of Common Stock, (B) with respect to any events that give rights to the Holder pursuant to Section 3(e) of this Warrant or
(C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation; provided,
that in each case, such information shall be made known to the public prior to or in conjunction with such notice being provided
to the Holder.

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

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

    	21

    	 

    
 

l)        
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations, including the
limitation contained in Section 2(d) of this Warrant, evidenced hereby shall inure to the benefit of and be binding upon the successors
and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended
to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant
Shares.

m)    
Amendment. This Warrant may be modified or amended or the provisions of this Warrant waived with the written consent of
the Company and the Required Holders; provided, that the provisions of Section 2(d) may not be waived and may not be modified
or amended in any manner inconsistent with the terms and provisions of Section 2(d) and with the intended beneficial ownership
limitation contained in Section 2(d).

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

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

Section
7.           Holder’s Status.

The
Company represents that, as of the Issuance Date, each of the Holder and its other Attribution Parties is, and collectively they
are, not an Affiliate. The Company covenants and agrees not to take a position contrary to this Section 7 assuming the Purchaser
Condition (as defined in the Purchase Agreement) is satisfied and subject to requirements of securities laws then in effect, upon
exercise in accordance with this Warrant, the Warrant Shares will be issued to the Holder without any restrictive legend and will
be freely tradable without restriction on the Principal Market or applicable Eligible Market; provided, in each
case, that the Warrant Shares are included in an effective Registration Statement or all applicable requirements of Rule 144 are
met; provided, further, that notwithstanding the foregoing the Company specifically acknowledges its agreement as
set forth in Section 4.1(c) of the Purchase Agreement. The issuance of this Warrant is duly authorized
and is validly issued and free from all taxes, liens and charges with respect to the issue thereof. Upon exercise in accordance
with this Warrant, the Warrant Shares will be validly issued, fully paid and nonassessable and free from all preemptive or similar
rights, taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to
a holder of Common Stock.

Section
8.          Preferences and Ranking. Any and all payments that the Company is obligated to make to the Holder as a result
of a Company Controlled Fundamental Transaction, pursuant to Section 5(a), as a Buy-In Price pursuant to Section 2(f), or as a
result of a Public Information Failure under the Purchase Agreement shall (i) have preference to, and shall be made by the Company
to the Holder prior to, any other obligations of the Company to another Person pursuant to any other equity security, warrant
(other than the other SPA Warrants), option

    	22

    	 

    
 

or other contract, agreement or document, and (ii) be a
liability and debt obligation of the Company, and the Holder shall be a creditor of the Company with respect to such obligation,
that is immediately due and payable upon the earlier of (x) a notice by the Holder to the Company (if such notice is required
pursuant to the terms of this Warrant) pursuant to the terms of this Warrant, or (y) the occurrence of such condition or other
event pursuant to and in accordance with the terms of this Warrant.

Section
9.          Delinquent Cash Payment.

If
the Company at any time and from time to time fails to make any payment pursuant to and in accordance with the terms of this Warrant
that is due to the Holder pursuant to the terms of this Warrant (a “Delinquent Cash Payment”), the Holder will
be treated as a creditor of the Company in any Federal or State bankruptcy, reorganization, liquidation, receivership, or assignment
for the benefit of creditors of, by, or for the Company or other similar insolvency proceeding affecting Company creditors’
rights and involving any claim under this Warrant to any such Delinquent Cash Payment.

Section
10.            No Stock Buy-Backs.

So
long as any SPA Warrants are outstanding, the Company shall not redeem, repurchase or otherwise reduce the number of outstanding
shares of Common Stock.

Section
11.           Existence of Liens.

So
long as any SPA Warrants are outstanding, the Company shall not, and the Company shall not permit any of its subsidiaries to,
directly or indirectly, allow or suffer to exist any Lien (as defined in the Purchase Agreement) other than Permitted Liens (as
defined in the Purchase Agreement).

Section
12.           Amendments.

So
long as any SPA Warrants are outstanding, the Company shall not (i) amend, waive, modify or terminate any provision of any outstanding
securities (including, without limitation, any warrants) or (ii) be party to any transaction (including, without limitation, any
contract, agreement or other arrangement) or issue any security (including, without limitation, any option or warrant to purchase
Common Stock) or other instrument with a provision or term (including, without limitation, any fundamental transaction, change
of control or similar event provision) which in any way restricts the Company’s ability to issue, or is in any way triggered
by, or could require the Company to make any payment (of cash or otherwise) or adjustment or issue any shares of Common Stock
or other securities as a result of, the Company’s issuance of, any of the securities under this Warrant or under any of
the SPA Warrants. 

Section
13.            No Right to Setoff.

The
Company shall make any and all payments due to the Holder pursuant to and in accordance with the terms of this Warrant without
the Company having any right under this Warrant or pursuant to applicable law to offset any
amounts due and owing (or to become due and owing) under this Warrant to the Holder.

Section
14.             Certain Definitions.

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

    	23

    	 

    
 

a)      
“Affiliate” means, with respect to any Person, any other Person which directly or indirectly through one or
more intermediaries Controls, is controlled by, or is under common control with, such Person as such terms are used in and construed
under Rule 405 and Rule 144 under the Securities Act.

b)      
“Aggregate Exercise Price” has the meaning set forth in Section 2(a). 

c)      
“Amendment Filing” has the meaning set forth in Section 5(a)(1).

d)      
“Attribution Parties” has the meaning set forth in Section 2(d).

e)      
“Authorized Shares Increase Date” shall have the meaning set forth in Section 5(a)(1). 

f)       
“Black Scholes Value” means, at the option of the Holder, (x) the value of this Warrant or the applicable portion
of this Warrant, which value is calculated without taking into account any limitations on exercise
of this Warrant and as if the Increased Shares Amendment had been adopted and become effective, using the Black and Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) a risk-free interest rate corresponding
to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this Warrant as of such date of the Holder’s
request pursuant to Section 3(d)(3)(b)(i) and (2) the remaining term of this Warrant as of the date of consummation of the applicable
Company Controlled Fundamental Transaction or as of the date of the Holder’s request pursuant to Section 3(d)(3)(b)(i) if
such request is prior to the date of the consummation of the applicable Company Controlled Fundamental Transaction, (ii) a strike
price equal to the Exercise Price in effect on the date of the Holder’s request pursuant to Section 3(d)(3)(b)(i), (iii)
an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined
utilizing a 365 day annualization factor) as of the Trading Day immediately following the earlier to occur of (1) the public disclosure
of the applicable Company Controlled Fundamental Transaction and (2) the consummation of the applicable Company Controlled Fundamental
Transaction, and (iv) an underlying price per share equal to the greatest of (1) the highest Closing Sale Price of the Common
Stock during the period beginning on the Trading Day immediately preceding the public disclosure of the applicable Company Controlled
Fundamental Transaction and ending on the Trading Day immediately preceding the consummation of the applicable Company Controlled
Fundamental Transaction or, if the Company Controlled Fundamental Transaction is not publicly announced, the Closing Sale Price
of the Common Stock on the date the Company Controlled Fundamental Transaction is consummated, (2) the highest Closing Sale Price
of the Common Stock during the period beginning on the date the Company Controlled Fundamental Transaction is consummated and
ending on the Trading Day immediately preceding the date of such Holder’s request pursuant to Section 3(d)(3)(b)(i), (3)
the sum of the price per share being offered in cash in the applicable Company Controlled Fundamental Transaction (if any) plus
the value of the non-cash consideration being offered in the applicable Company Controlled Fundamental Transaction (if any) and
(4) any price per share used by any other Person who has received or is entitled to receive a payment based on a Black Scholes
value or otherwise based on a price per share; or (y) in the event of any Clause C Fundamental Transaction
that is triggered by any other Person having received or being entitled to receive a payment based on a Black Scholes value or
otherwise based on a price per share (an “Alternate Black Scholes Value Calculation”), then solely at the option
of the Holder, the Holder may elect that for purposes of this Warrant, to substitute any value of the Black Scholes Value definition
set forth in (x) for any differing value used in the Alternate Black Scholes Value Calculation, including, without limitation,
by using the same price per share used in the Alternate Black Scholes Value Calculation.

    	24

    	 

    
 

g)      
“Bloomberg” means Bloomberg, L.P. 

h)      
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law or executive order to remain closed.

i)        
“Buy-In” has the meaning set forth in Section 2(f).

j)       
“Buy-In Price” has the meaning set forth in Section 2(f).

k)      
“Cashless Exercise” has the meaning set forth in Section 2(c).

l)        
“Clause C Fundamental Transaction” means a Company Controlled Fundamental Transaction triggered solely by the
application of clause (C) of the definition of Company Controlled Fundamental Transaction.

m)    
“Closing Sale Price” means, for any security as of any date, the last closing trade price for such security
on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
does not designate the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., New York Time, as
reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last trade price of such security on the principal securities exchange or trading market where such security is listed or
traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter
market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for
such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the OTC Link or
“pink sheets” by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Sale Price cannot be calculated
for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall
be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree
upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 6(f). All such determinations
to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or other similar transaction
during the applicable calculation period.

n)      
“Common Stock” means (i) the Company’s shares of Common Stock, par value $0.01 per share, and (ii) any
share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such
Common Stock.

o)      
“Company” has the meaning set forth in the Preamble.

    	25

    	 

    
 

p)      
“Company Controlled Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including
through subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into
(whether or not the Company is the surviving corporation) another Subject Entity, (ii) sell, assign, transfer, convey or
otherwise dispose of all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries”
(as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, (iii) make, or allow one or more Subject Entities
to make, or allow the Company to be or have its Common Stock be subject to or party to one or more Subject Entities making, a
purchase, tender or exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding shares of Common
Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all Subject Entities
making or party to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not
outstanding; or (z) such number of shares of Common Stock such that all Subject Entities making or party to, or Affiliated with
any Subject Entity making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as
defined in Rule 13d-3 under the Exchange Act) of at least 50% of the outstanding shares of Common Stock, (iv) consummate
a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with one or more Subject Entities whereby such Subject Entities, individually or in the aggregate, acquire,
either (x) at least 50% of the outstanding shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock
calculated as if any shares of Common Stock held by all the Subject Entities making or party to, or Affiliated with any Subject
Entity making or party to, such stock purchase agreement or other business combination were not outstanding; or (z) such number
of shares of Common Stock such that all Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under
the Exchange Act) of at least 50% of the outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify
its Common Stock, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or become
the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, whether through
acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common Stock,
merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization,
recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented
by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this
Warrant calculated as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage
of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock or other equity securities
of the Company sufficient to allow such Subject Entities to effect a statutory short form merger or other transaction requiring
other shareholders of the Company to surrender their shares of Common Stock without approval of the shareholders of the Company,
(C) directly or indirectly, including

    	26

    	 

    
 

through subsidiaries, Affiliates or otherwise, in one or more related transactions, (i)
the Company allows the occurrence of, or is party to, a fundamental transaction, change of control or similar event under any
Subject Instrument in existence on the Issuance Date or (ii) the Company allows or is party to the acceleration or redemption
of any Subject Instrument in existence on the Issuance Date, (iii) the occurrence of a “Fundamental Transaction” as
defined in or under the Company’s March 1, 2011 Warrant Agreement (including pursuant to the $2,000,000 Series A Warrant,
the $21,000,000 Series B Warrant or any other Series A Warrant or Series B Warrants issued pursuant thereto) by and between the
Company and American Stock Transfer & Trust Company (including the $2,000,000 Series A Warrant, the $21,000,000 Series B Warrant
or any other Series A Warrant or Series B Warrants issued pursuant thereto, the “2011 Warrant Agreement”),
(iv) the acceleration or redemption of (or any payment under) the 2011 Warrant Agreement or any warrant or right thereunder provided
that solely for purposes of the foregoing clauses (i), (ii), (iii) and (iv), the foregoing clauses (i), (ii), (iii) and (iv) shall
not constitute a Company Controlled Fundamental Transaction (x) until the Company is required to pay, or is liable for or obligated
for, or an obligation arises as to, any amount in excess of $1,000,000 individually or in the aggregate for all such clauses,
or (v)(x) the entitlement of any Person to receive, (y) the obligation of the Company to make or (z) the Company making, any payment
relating to any fundamental transaction, change of control or similar event in any circumstance that the Holder would not receive
an identical payment pursuant to the specific terms of this Warrant or that in any way would prevent the Holder from receiving
the Fundamental Transaction Warrant Early Termination Price; (vi) on or after the Issuance Date, the Company entering into, or
issuing, or allowing, or being party to a payment obligation under, any Subject Instrument, or amending or modifying any existing
Subject Instrument whereby the Company becomes subject to a payment obligation thereunder, that provides for rights, payments,
issuances or other benefits in the event of a fundamental transaction, change of control or similar event that is or are in any
way better or more advantageous than the rights, payments, issuances or other benefits of a Holder pursuant to the terms of this
Warrant or otherwise providing for any payment in any way and in any circumstance or event that the Holder would not as a result
thereof or in a similar manner be entitled to receive the Fundamental Transaction Warrant Early Termination Price or that in any
way would prevent the Holder from receiving the Fundamental Transaction Warrant Early Termination Price; or (vii) the Company
making or permitting a fundamental transaction, change of control or similar event under any Subject Instrument in existence on
the Issuance Date; (D) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related
transactions, any breach or other violation by the Company of any or all of the provisions set forth in Section 4.17, Section
4.19, Section 4.21, Section 4.22, Section 4.23 or Section 4.24 of the Purchase Agreement, (E) either (i) the commencement by the
Company or any of its subsidiaries of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated bankrupt or insolvent, or the consent
by it to the entry of a decree or order for relief in respect of the Company or any of its subsidiaries in an involuntary case
or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or the filing
by it of a petition or answer or consent seeking reorganization or relief under

    	27

    	 

    
 

any applicable Federal or State law, or the consent
by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or any of its subsidiaries or of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its
debts generally as they become due, or the taking of corporate action by the Company or any of its subsidiaries in furtherance
of any such action, or (ii) the entry by a court having jurisdiction in the premises of (x) a decree or order for relief in respect
of the Company or any of its subsidiaries of a voluntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (y) in a manner within the control of the Company, a decree or order adjudging
the Company or any of its subsidiaries as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any of its subsidiaries under any applicable Federal
or State law or (z) in a manner within the control of the Company, the appointment of a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or any of its subsidiaries or of any substantial part of its property,
or ordering the winding up or liquidation of its affairs; (F) directly or indirectly, including through subsidiaries, Affiliates
or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured
in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this definition
to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with
the intended treatment of such instrument or transaction; or (G) in the event the Company learns of any third party attempting
or seeking to take action to cause a fundamental transaction, change of control or similar event (including, without limitation,
through a tender or exchange offer), or an event that with the passage of time could result in a fundamental transaction, change
of control or similar event (including, without limitation, through a tender or exchange offer) under any agreement (including,
without limitation, any employment agreement), outstanding security (including, without limitation, any option or warrant to purchase
Common Stock) or other instrument, that

    	28

    	 

    
 

does not conform to the requirements of the Transaction Documents and that does not afford
or grant the Purchasers all of the rights and payments they would receive in a Company Controlled Fundamental Transaction (including,
without limitation, any payments they would receive if they were holders of the shares of Common Stock issuable upon exercise
of the Warrants (without regard to any limitation on the exercise of the Warrants and as if the Increased Shares Amendment had
been adopted and become effective)), the failure of the Company to adopt a poison pill, and to the extent that any previously
adopted poison pill ceases to be effective, to re-adopt a poison pill, or any other anti-takeover provision or method necessary
to prevent a fundamental transaction, change of control or similar event  (including, without limitation, through a tender
or exchange offer), or event that with the passage of time could result in a fundamental transaction, change of control or similar
event (including, without limitation, through a tender or exchange offer) under any agreement (including, without limitation,
any employment agreement), outstanding security (including, without limitation, any option or warrant to purchase Common Stock)
or other instrument, that does not conform to the requirements of the Transaction Documents and that does not afford or grant
the Purchasers all of the rights and payments they would receive in a Company Controlled Fundamental Transaction (including, without
limitation, any payments they would receive if they were holders of the shares of Common Stock issuable upon exercise of this
Warrant (without regard to any limitation on the exercise of this Warrants and as if the Increased Shares Amendment had been adopted
and become effective)).

q)      
“Control” (including the terms “controlling”, “controlled by” or “under common
control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

r)       
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

s)       
“Delinquent Cash Payment” has the meaning set forth in Section 9.

t)       
“Distribution” has the meaning set forth in Section 3(c).

u)      
“DRS” has the meaning set forth in Section 2(a). 

v)      
“DTC” has the meaning set forth in Section 2(a). 

w)     
 “Eligible Market” means the Principal Market, The New York Stock Exchange, Inc.,
or The NASDAQ Stock Market LLC.

x)      
“Excess Shares” has the meaning set forth in Section 2(d).

y)      
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

z)      
“Exercise Notice” has the meaning set forth in Section 2(a).

aa)  
“Exercise Price” has the meaning set forth in Section 2(b). 

bb)  
“Expiration Date” means the ten (10) year anniversary of the Authorized Shares Increase Date.

cc)   
“FAST Program” has the meaning set forth in Section 2(a).

dd)  
“First Authorized Shares Increase Deadline” has the meaning set forth in Section
5(a)(1).

ee)   
“Fundamental Transaction” means any Company Controlled Fundamental Transaction and any Non-Company Controlled
Fundamental Transaction.

ff)    
“Fundamental Transaction Early Termination Notice” has the meaning set forth in
Section 3(d)(3)(b)(i).

gg)   
“Fundamental Transaction Escrow Deadline” has the meaning set forth in Section 3(d)(3)(b)(ii).

hh)  
“Fundamental Transaction Notice” has the meaning set forth in Section 3(d)(1)(b).

    	29

    	 

    
 

ii)      
“Fundamental Transaction Warrant Early Termination Price” means, as elected by the Holder solely at its option
as indicated in the applicable Fundamental Transaction Early Termination Notice, either (x) the Black Scholes Value of this Warrant
(or, if so elected by the Holder, the portion of this Warrant as to which the Holder has elected to receive the Fundamental Transaction
Warrant Early Termination Price as set forth in the applicable Fundamental Transaction Early Termination Notice) or (y) if the
Company Controlled Fundamental Transaction relating to the delivery of the applicable Fundamental Transaction Early Termination
Notice results from any event or transaction whereby any other Person has the right to demand or receive redemption of or any
payment related to any securities of the Company (such redemption or payment to any other Person, an “Alternate Payment”),
the product of (1) the number of Warrant Shares underlying the Warrant (or, if elected by the Holder, the portion of this Warrant
as to which the Holder has elected to receive the Fundamental Transaction Warrant Early Termination Price as set forth in the
applicable Fundamental Transaction Early Termination Notice) and (2) the price per share used in calculating the Alternate Payment
to such other Person.

jj)     
“Group” means a “group” as that term is used in Section 13(d) of the
Exchange Act and as defined in Rule 13d-5 thereunder.

kk)  
“Holder” has the meaning set forth in the Preamble.

ll)     “Increased Shares Amendment” has the meaning set forth in Section 5(a)(1).

mm) “Increased Shares Stockholder Approval” has the meaning set forth in Section 5(a)(1).

nn)  
“Interest Accrual Period” has the meaning set forth in Section 5(a)(8).

oo)  
“Interest Amount” has the meaning set forth in Section 5(a)(8). 

pp)  
“Interest Period” has the meaning set forth in Section 5(a)(8).

qq)  
“Issuance Date” has the meaning set forth in the Preamble.

rr)     “Maximum Percentage” has the meaning set forth in Section 2(d).

ss)    “Non-Company Controlled Fundamental Transaction” means that in a manner
not within the control of the Company, (A) any Subject Entity individually or the Subject Entities in the aggregate shall become
the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of at least 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock; or (B) (i) the commencement of any involuntary bankruptcy or
insolvency case or proceeding against it; or (ii) the entry, in a manner out of the control of the Company, by a court having
jurisdiction in the premises of (x) a decree or order adjudging the Company or any of its subsidiaries as bankrupt or insolvent,
or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the
Company or any of its subsidiaries under any applicable Federal or State law or (y) the appointment of a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any of its subsidiaries or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs. 

    	30

    	 

    
 

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

uu)  
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, including
any such entity whose common stock or equivalent equity security is quoted or listed on an Eligible Market (or, if so elected
by the Holder, any other market, exchange or quotation system), or, if there is more than one such Person or such entity, such
Person or entity designated by the Holder or in the absence of such designation, such Person or entity with the largest public
market capitalization as of the date of consummation of the Fundamental Transaction.

vv)  
“Person” means an individual, a limited liability company, a partnership, a limited partnership, a joint venture,
a corporation, a trust, an unincorporated organization, any other entity or a government or political subdivision or any department,
agency or instrumentality thereof.

ww)
“Principal Market” means The NYSE MKT.

xx)  
“Purchase Agreement” has the meaning set forth in Section 1.

yy)  
“Purchase Rights” has the meaning set forth in Section 3(e). 

zz)   
“Put Notice” has the meaning set forth in Section 5(a)(3).

aaa)  “Put Notice Date” has the meaning set forth in Section 5(a)(3).

bbb) “Put Period” means the period commencing on the
Issuance Date and ending on the Trading Day immediately preceding the later of (x) the applicable Put Notice Date and (y) the
Second Authorized Shares Increase Deadline.

ccc)
  “Redemption Price” has the meaning set
forth in Section 5(a)(3).

ddd)  “Redemption Price Average” means, with respect to any Trading Day, the arithmetic average of the Weighted Average
Prices of the Common Stock for the ten (10) consecutive Trading Days prior to such Trading Day.

eee)
“Reduction Shares” has the meaning set forth in Section 2(d).

fff)  
“Reported Outstanding Share Number” has the meaning set forth in Section 2(d). 

ggg)
“Required Holders” means the Holders holding Series B Warrants exercisable for at least a majority of the Warrant
Shares issuable upon the exercise of all then outstanding Series B Warrants (without regard to any limitations on exercise of
the Series B Warrants and as if the Increased Shares Amendment had been adopted and become effective).

hhh)  “Second Authorized Shares Increase Deadline” has the meaning set forth in Section
5(a)(2).

iii)     
“Series B Warrants” has the meaning set forth in the Purchase Agreement.

jjj)   
“Share Delivery Date” has the meaning set forth in Section 2(a).

    	31

    	 

    

kkk)  “SPA Warrants” means, collectively, the Series A Warrants (as defined in the Purchase Agreement) and the Series
B Warrants issued pursuant to the Purchase Agreement.

lll)     
“Stockholders Meeting” has the meaning set forth in Section 5(a)(1). 

mmm) “Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons
or Group.

nnn)   “Subject Instruments” means any agreement (including, without limitation, any employment agreement), outstanding
security (including, without limitation, any option or warrant to purchase Common Stock) or other instrument of the Company.

ooo)   “Successor Capital Stock” has the meaning set forth in Section 3(d)(3)(c). 

ppp)   “Successor Entity” means one or more Person or Persons (or, if so elected by the Holder, the Company or Parent
Entity) formed by, resulting from or surviving any Fundamental Transaction or one or more Person or Persons (or, if so elected
by the Holder, the Company or the Parent Entity) with which such Fundamental Transaction shall have been entered into.

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

rrr)   
“Transfer Agent” has the meaning set forth in Section 2(a). 

sss)  
“Warrant” has the meaning set forth in the Preamble.

ttt)   
“Warrant Register” has the meaning set forth in Section 4(c). 

uuu)   “Warrant Shares” has the meaning set forth in the Preamble.

vvv)   “Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01 a.m., New York City time (or such other time
as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York City time
(or such other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg through
its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m.,
New York City time (or such other time as such market publicly

    	32

    	 

    
 

announces is the official open of trading), and ending at 4:00:00 p.m.,
New York City time (or such other time as such market publicly announces is the official close of trading), as reported by Bloomberg,
or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest
closing bid price and the lowest closing ask price of any of the market makers for such security as reported by the OTC Markets.
If the Weighted Average Price cannot be calculated for such security on such date on any of the foregoing bases, the Weighted
Average Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder.
If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved
pursuant to Section 6(f) with the term “Weighted Average Price” being substituted for the term “Exercise Price”.
All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification
or other similar transaction during the applicable calculation period.

www)  “Withdrawal Put Notice” has the meaning set forth in Section 5(a)(4).

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

 

(Signature
Pages Follow)

 

    	33

    	 

    
 

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

	 	PALATIN TECHNOLOGIES, INC.
	 	 
	 	By:  ________________________
	 	Name: Stephen T. Wills
	 	Title: Executive Vice President, Chief Financial Officer and Chief Operating Officer

 

    	34

    	 

    
 

EXHIBIT
A

 

EXERCISE
NOTICE

TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT
TO PURCHASE COMMON STOCK

PALATIN
TECHNOLOGIES, INC.

 

The
undersigned holder hereby exercises the right to purchase __________________________ of the shares of Common Stock (“Warrant
Shares”) of Palatin Technologies, Inc., a Delaware corporation (the “Company”), evidenced by the attached copy
of the Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used in this Exercise Notice and not otherwise
defined shall have the respective meanings set forth in the Warrant.

1.            Form
of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:

____________a
“Cash Exercise” with respect to _________________ Warrant Shares; and/or

____________a
“Cashless Exercise” in accordance with the terms of the Warrant in connection with the exercise of the Warrant for
_______________ Warrant Shares.

2.            Payment
of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares
to be issued pursuant to this Exercise Notice and the Warrant, the Holder shall pay the Aggregate Exercise Price in the sum of
$___________________ to the Company in accordance with the terms of the Warrant.

3.            Delivery
of Warrant Shares. The Company shall deliver to the holder Warrant Shares in accordance with the terms of the Warrant.

4.            Representations
and Warranties. By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving
effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock
(determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under Section
2(d) of this Warrant to which this notice relates.

 

	Date: _________________, 20___.	 
	 	[Name of Registered Holder]           
	 	By:      _____________________________
	 	Name: _____________________________                
	                 	Title:   _____________________________

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice.  

	 	 
	 	Palatin Technologies, Inc.          
	 	By:    
     _____________________________
	 	Name: _____________________________                
	 	Title:   _____________________________

 

    	 

    	 

    
 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

  

FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned
to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

 

_______________________________________________________________

  

	 	 	Dated:  ______________, _______
	 	 	 	 
	 	 	 	 
	 	 Holder’s Signature:		
	 	 	 	 
	 	 Holder’s Address:Palatin Technologies, Inc. 8-k 

EXHIBIT
10.1

SECURITIES
PURCHASE AGREEMENT

This Securities
Purchase Agreement (this “Agreement”) is dated as of July 2, 2012, between Palatin Technologies, Inc., a Delaware
corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a “Purchaser” and collectively the “Purchasers”).

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement.

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE I.

DEFINITIONS

1.1             
Definitions. In addition to the terms defined
elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section
1.1:

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 and Rule 144 under the Securities Act.

“Agreement”
shall have the meaning set forth in the preamble of this Agreement.

“Approved
Stock Plan” means any employee benefit plan, employment agreement or any other agreement, plan or arrangement which has
been approved by a majority of the non-employee members of the Board of Directors (as defined below) or a majority of the members
of a committee of non-employee directors established for such purpose, pursuant to which the Company’s securities may be
issued to any employee, consultant, officer or director for services provided to the Company.

“Attribution
Parties” shall have the meaning ascribed to such term in the Warrants.

“Basic
Amount” shall have the meaning ascribed to such term in Section 4.18(a)(ii).

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

    	1

    	 	

    
 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States, or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

“Buy-In”
shall have the meaning ascribed to such term in Section 4.1(c).

“Buy-In
Price” shall have the meaning ascribed to such term in Section 4.1(c).

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived.

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

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

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

“Company”
shall have the meaning set forth in the preamble of this Agreement.

“Company
Controlled Fundamental Transaction” shall have the meaning ascribed to such term in the Warrants.

“Company
Counsel” means Thompson Hine LLP, with offices located at, among other places, 335 Madison Avenue, 12th Floor, New York,
New York 10017.

“DRS”
shall have the meaning ascribed to such term in Section 2.2(a)(iii).

“DTC”
shall have the meaning ascribed to such term in Section 2.2(a)(iii).

“DWAC”
shall have the meaning ascribed to such term in Section 2.2(a)(iii).

 

“Effective
Date” means the earliest of the date that (a) the Initial Registration Statement (as defined in the Registration Rights
Agreement) has been declared effective by the Commission or (b) all of the Shares and the Warrant Shares required to be registered
for resale have been sold pursuant to Rule 144 or may be sold pursuant to Rule 144, without the requirement for the Company to
be in compliance with the current public information required under Rule 144 and without volume or manner-of-sale restrictions.

 

    	2

    	 	

    
 

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

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

 

“Excluded
Securities” means any shares of Common Stock issued or issuable: (i) in connection with any Approved Stock Plan; (ii)
upon exercise of the Warrants and (iii) upon conversion or exercise of any Common Stock Equivalents which are outstanding on the
day immediately preceding the date hereof, provided that the terms of such Common Stock Equivalents are not amended, modified or
changed on or after the date hereof.

 

“FAST
Program” shall have the meaning ascribed to such term in Section 2.2(a)(iii).

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(ee).

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(ee).

“Fundamental
Transaction” shall have the meaning ascribed to such term in the Warrants.

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

“Holder”
shall have the meaning ascribed to such term in Section 4.19.

“Increased
Shares Amendment” shall have the meaning ascribed to such term in the Series B Warrants.

“Indebtedness”
of any Person means (i) any individual indebtedness or series of related indebtedness for borrowed money, including all obligations
evidenced by notes, bonds, debentures or similar instruments, in excess of five hundred thousand dollars ($500,000.00), (ii) all
debt securities convertible into or exchangeable or exercisable for Common Stock or Common Stock Equivalents, and (iii) any other
instrument or transaction (such as a sale lease back or factoring transaction) structured in a manner to circumvent the intent
of this definition and Section 4.17 or Section 4.18 in which case this definition shall be construed and implemented in a manner
otherwise than in strict conformity with the terms hereof to the extent necessary to correct this definition or any portion hereof
which may be defective or inconsistent with the intended treatment of such instrument or transaction under Section 4.17 and Section
4.18.

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

    	3

    	 	

    
 

“Issuance
Period End Date” means the later of (A) September 1, 2013, (B) the date that the restrictions listed on Schedule 3.1(hh)(ii)
expire and (C) the Prohibition Period End Date.

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

“Liens”
means a mortgage, lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(gg).

“Notice
of Acceptance” shall have the meaning ascribed to such term in Section 4.18(a)(iii).

“Offer”
shall have the meaning ascribed to such term in Section 4.18(a)(ii).

“Offer
Notice” shall have the meaning ascribed to such term in Section 4.18(a)(ii).

“Offer
Period” shall have the meaning ascribed to such term in Section 4.18(a)(iii).

“Offered
Placement” shall have the meaning ascribed to such term in Section 4.18(a)(ii).

“Permitted
Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary course
of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in the ordinary course of business
with respect to a liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings,
(iv) Liens (A) upon or in any equipment acquired or held by the Company or its Subsidiary to secure the purchase price of such
equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing
on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements
thereon, and the proceeds of such equipment, (v) Liens incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement Lien
shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed
or refinanced does not increase, (vi) leases or subleases and licenses and sublicenses granted to others in the ordinary course
of the Company’s business, not interfering in any material respect with the business of the Company and its Subsidiary taken
as a whole, and (vii) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom
duties in connection with the importation of goods.

    	4

    	 	

    
 

“Person”
means an individual or corporation, partnership, limited partnership, trust, incorporated or unincorporated association, joint
venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any
kind.

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(ee).

“Preferred
Stock” shall have the meaning ascribed to such term in Section 3.1(g)(i).

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened in writing.

“Prohibition
Period End Date” means the earlier of the date that (A) the Increased Shares Amendment is effective and (B) no Series
B Warrants remain outstanding.

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.16.

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.16.

“Purchaser(s)”
shall have the meaning set forth in the preamble of this Agreement.

“Purchaser
Amount” shall have the meaning ascribed to such term in Section 4.18(a)(ii).

“Purchaser
Condition” means the satisfaction of either of the following: (i) the Maximum Percentage not being in excess of 9.99%,
or (ii) such Purchaser has delivered to the Company an opinion of counsel in a form reasonably satisfactory to the Company that
the Purchaser is not an Affiliate of the Company.

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.9.

“Refused
Placement” shall have the meaning ascribed to such term in Section 4.18(a)(iv).

    	5

    	 	

    
 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated the date hereof, among the Company and the Purchasers,
in the form of Exhibit B attached hereto.

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement.

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“Required
Reserve Amount” shall have the meaning ascribed to such term in Section 4.10.

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

“Securities”
means the Shares, the Warrants and the Warrant Shares.

“Securities
Act” shall have the meaning ascribed to such term in the preamble of this Agreement.

“Series
A Warrants” means the warrants required to be delivered to the Purchasers at the Closing in accordance with Section 2.2(a)
hereof, in substantially the form of Exhibit A-1 attached hereto (with any changes thereto being acceptable to the Purchasers).

“Series
B Warrants” means the warrants required to be delivered to the Purchasers at the Closing in accordance with hereof, in
substantially the form of Exhibit A-2 attached hereto (with any changes thereto being acceptable to the Purchasers).

“Series
B Warrant Shares” means, the shares of Common Stock issuable pursuant to the Series B Warrants.

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement, but excluding the Warrant Shares.

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but
shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Shares and Warrants purchased hereunder,
as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription
Amount,” in United States dollars and in immediately available funds.

    	6

    	 	

    
 

“Subsequent
Debt Placement” means, the Company or any Subsidiary thereof shall, either directly or indirectly, offer, sell, grant
any option to purchase, incur, guarantee, assume or suffer to exist (or announce any offer, sale, grant of any option to purchase,
incurrence, guarantee, assumption or suffering to exist of or enter into any discussions or negotiations as to) any Indebtedness
that is not (i) issued in connection with any Subsequent Equity Placement, (ii) issued in conjunction with or related to any issuance
or potential issuance of Common Stock or Common Stock Equivalents or (iii) convertible into or exchangeable or exercisable for
Common Stock or Common Stock Equivalents, including any other instrument or transaction (such as a sale lease back or factoring
transaction) structured in a manner to circumvent the intent of this definition and Section 4.17 or Section 4.18 in which case
this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms hereof to the
extent necessary to correct this definition or any portion hereof which may be defective or inconsistent with the intended treatment
of such instrument or transaction under Section 4.17 and Section 4.18.

“Subsequent
Equity Placement” means, the Company or any Subsidiary thereof shall, either directly or indirectly, offer, sell, grant
any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option to purchase or other disposition
of or enter into any discussions or negotiations as to) any of the Company’s or its Subsidiaries’ equity or equity
equivalent securities, including preferred stock or other instrument or security (including any debt security) that is convertible
into or exchangeable or exercisable for Common Stock or Common Stock Equivalents and any Indebtedness that is (i) issued in connection
with any Subsequent Equity Placement, (ii) issued in conjunction with or related to any issuance or potential issuance of Common
Stock or Common Stock Equivalents or (iii) convertible into or exchangeable or exercisable for Common Stock or Common Stock Equivalents
(other than the issuance of restricted stock units and options to purchase Common Stock pursuant to the Company’s 2011 Stock
Incentive Plan, so long as no such restricted stock units vest and no such options become exercisable prior to the Issuance Period
End Date and the number of shares of Common Stock issued or issuable thereunder does not exceed the 1,886,351 shares of Common
Stock (as adjusted for any stock split, stock dividend, stock combination, reclassification, termination or expiration of any grant
under the Company’s 2011 Stock Incentive Plan or other similar transaction after the date hereof), that are currently reserved
for issuance thereunder and securities are only issued to employees, consultants, officers or directors of the Company for services
provided to the Company, or pursuant to any Approved Stock Plan), including, without limitation, any other transaction (other than
a Subsequent Debt Placement) whereby the Company raises or could receive any consideration and any other instrument or transaction
structured in a manner to circumvent the intent of this definition and Section 4.17 or Section 4.18 in which case this definition
shall be construed and implemented in a manner otherwise than in strict conformity with the terms hereof to the extent necessary
to correct this definition or any portion hereof which may be defective or inconsistent with the intended treatment of such instrument
or transaction under Section 4.17 and Section 4.18.

“Subsequent
Placement” means, any Subsequent Debt Placement and any Subsequent Equity Placement with any offer, sale, grant, disposition,
incurrence, guarantee, assumption or suffering to exist, announcement, discussion or negotiation in connection with any Subsequent
Debt Placement or any Subsequent Equity Placement specifically intended and deemed to include any method whereby the Company raises
or could receive any consideration.

    	7

    	 	

    
 

“Subsequent
Placement Agreement” shall have the meaning ascribed to such term in Section 4.18(a)(iv).

“Subsequent
Placement Documents” shall have the meaning ascribed to such term in Section 4.18(a)(vii).

“Subsequent
Placement Notice” shall have the meaning ascribed to such term in Section 4.18(a)(i).

“Subsequent
Placement Structuring Period” shall have the meaning ascribed to such term in Section 4.18(a)(i).

“Subsidiary”
means RhoMed Incorporated, a New Mexico corporation.

“Successor
Entity” shall have the meaning ascribed to such term in the Warrants.

“Trading
Day” means a day on which the principal Trading Market is open for trading.

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE Amex, the Nasdaq Stock Market, the New York Stock Exchange, the OTC Bulletin Board, or the OTC Markets
(or any successors to any of the foregoing).

“Transaction
Documents” means this Agreement, the Warrants, the Registration Rights Agreement, all exhibits and schedules thereto
and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer
Agent” means American Stock Transfer & Trust Company, LLC, the current transfer agent of the Company, with a mailing
address of 6201 15th Avenue, Brooklyn, New York 11219 and a facsimile number of (718) 765-8718, and any successor transfer agent
of the Company.

“Warrants”
means the Series A Warrants and the Series B Warrants required to be delivered to the Purchasers at the Closing in accordance with
Section 2.2(a) hereof.

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

    	8

    	 	

    
 

ARTICLE II.

PURCHASE AND SALE

2.1             
Closing. On the Closing Date, upon
the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement
by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase hereunder,
(i) that aggregate number of Shares set forth on such Purchaser’s signature page hereto (which aggregate number of Shares
for all Purchasers shall be 3,873,000), (ii) Series A Warrants to purchase that number of shares of Common Stock set forth on such
Purchaser’s signature page hereto and (iii) Series B Warrants to purchase that number of shares of Common Stock set forth
on such Purchaser’s signature page hereto, at the aggregate Subscription Amount set forth on such Purchaser’s signature
page hereto. Each Purchaser shall deliver to the Company, via wire transfer or a certified check of immediately available funds
in an amount equal to such Purchaser’s Subscription Amount as set forth on its signature page hereto and the Company shall
deliver to each Purchaser its respective Shares and Warrants being purchased hereunder, and the Company and each Purchaser shall
deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions
set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of the Company Counsel or such other location as the
parties shall mutually agree. For all purposes of this Agreement, the Shares, Series A Warrants and Series B Warrants shall be
deemed to be issued in all respects simultaneously and under no circumstance shall any of the Shares, Series A Warrants or Series
B Warrants be deemed to be issued prior to or after any other Shares, Series A Warrants or Series B Warrants.

2.2             
Deliveries.

(a)               
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each
Purchaser the following:

(i)                 
this Agreement duly executed by the Company; 

(ii)               
a legal opinion of Company Counsel reasonably satisfactory to the Purchasers; 

(iii)              
the number of Shares set forth on such Purchaser’s signature page to this Agreement,
via (X) upon the request of the Purchaser, credit to the Purchaser’s or its designee’s balance account with The Depository
Trust Company (“DTC”) through its Deposit Withdrawal At Custodian system (“DWAC”), or to
the Purchaser’s or its designee’s direct registration account, provided that the Transfer Agent is participating
in the Direct Registration System (“DRS”) or The DTC Fast Automated Securities Transfer Program (the “FAST
Program”), or (Y) if the Transfer Agent is not participating in either the DRS or FAST Program, a certificate registered
in the Company’s share register in the name of the Purchaser;

(iv)             
a Series A Warrant certificate, in a form acceptable to the Purchasers, registered in the
name of such Purchaser to purchase such number of shares of Common Stock as is set forth on the Purchaser’s signature page
to this Agreement, with an exercise price equal to $0.01 per share, subject to adjustment therein; 

    	9

    	 	

    
 

(v)               
a Series B Warrant certificate, in a form acceptable to the Purchasers, registered in the
name of such Purchaser to purchase such number of shares of Common Stock as is set forth on the Purchaser’s signature page
to this Agreement, with an exercise price equal to $0.01 per share, subject to adjustment therein; 

(vi)             
a copy of the Irrevocable Transfer Agent Instructions, in the form of Exhibit A attached
hereto, which instructions shall have been delivered to and acknowledged in writing by the Company’s Transfer Agent; 

(vii)            
the Registration Rights Agreement duly executed by the Company, in a form acceptable to the
Purchasers; 

(viii)          
the Schedules to this Agreement shall be in a form acceptable to the Purchasers; and

(ix)             
a certificate, executed by the Secretary of the Company and dated as of the Closing Date,
as to the resolutions consistent with the first sentence of Section 3.1(hh) as adopted by the Company’s Board of Directors
in a form reasonably acceptable to such Purchaser.

(b)              
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to
the Company the following:

(i)                 
this Agreement duly executed by such Purchaser; 

(ii)               
such Purchaser’s Subscription Amount by wire transfer to the account as specified in
writing by the Company or a certified check of immediately available funds; and

(iii)              
the Registration Rights Agreement duly executed by such Purchaser.

2.3             
Closing Conditions.

(a)          The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

(i)                 
the accuracy in all material respects when made and on the Closing Date of the representations
and warranties of the Purchasers contained herein (unless as of a specific date therein in which case they shall be accurate as
of such date);

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(ii)               
all obligations, covenants and agreements of each Purchaser required to be performed at or
prior to the Closing Date shall have been performed; and

(iii)              
the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)
          The respective obligations of the Purchasers hereunder in connection with the Closing are
subject to the following conditions being met:

(i)                 
the accuracy in all material respects (except for those representations and warranties that
are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) when made and on the
Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein, in which
case they shall be accurate as of such date);

(ii)               
all obligations, covenants and agreements of the Company required to be performed at or prior
to the Closing Date shall have been performed; 

(iii)              
the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; 

(iv)             
there shall have been no Material Adverse Effect with respect to the Company since the date
hereof; 

(v)               
from the date hereof to the Closing Date, trading in the Common Stock shall not have been
suspended by the Commission or the Company’s principal Trading Market (except for any suspension of trading of limited duration
agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date,
trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall
not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking
moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material
outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material
adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable
or inadvisable to purchase the Securities at the Closing; and

(vi)             
from the date hereof to the Closing Date: (i) the Company shall not have taken any of the
actions set forth in Section 3(a) of the Warrants, declared or made any Distribution (as defined in the Warrants) or granted, issued
or sold any Purchase Rights (as defined in the Warrants); and (ii) no Fundamental Transaction shall have occurred.

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ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1             
Representations and Warranties of the Company.
Except as described in the SEC Reports or any information contained or incorporated therein, the Company hereby makes the following
representations and warranties as of the date hereof and as of the Closing Date to each Purchaser (unless as of a specific date
therein) and as set forth herein covenants and agrees:

(a)               
Subsidiary. The Subsidiary of the Company is described in the SEC Reports. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of the Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of the Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities. The Subsidiary is inactive, and has no employees,
liabilities or assets other than certain patents not material to the business of the Company.

(b)              
Organization and Qualification. Each of the Company and the Subsidiary is an entity
duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as
currently conducted. Neither the Company nor the Subsidiary is in violation nor default of any of the provisions of its respective
certificate or articles of incorporation, bylaws or other organizational or charter documents, except to the extent that any such
default, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the operations, results of operations, assets, business, prospects
or condition (financial or otherwise) of the Company and the Subsidiary, individually or taken as a whole, or (iii) a material
adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) provided, that none of the following
alone shall be deemed, in and of itself, to constitute a Material Adverse Effect: (i) a change in the market price or trading volume
of the Common Stock or (ii) changes in general economic conditions or changes affecting the industry in which the Company operates
generally (as opposed to Company-specific changes) so long as such changes do not have a materially disproportionate effect on
the Company. Each of the Company and the Subsidiary is duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or
reasonably be expected to result in a Material Adverse Effect and no Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 

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(c)               
Authorization; Enforcement. The Company has the requisite corporate power and authority
to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and
(but solely with respect to the issuance of the Series B Warrant Shares, subject to effecting the Increased Shares Amendment) otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of each of this Agreement and the other Transaction
Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized
by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or
the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals. This
Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms (assuming due execution and delivery by all other parties
thereto), except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

(d)              
No Conflicts. The execution, delivery and performance by the Company of this Agreement
and the other Transaction Documents to which it is a party, the issuance and sale of the Securities (assuming the exercise in full
of the Warrants without regard to any limitations on exercise of the Warrants) and the consummation by it of the transactions contemplated
hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or the Subsidiary’s
certificate or articles of incorporation (with respect to the issuance of the Series B Warrant Shares, subject to effecting the
Increased Shares Amendment) or bylaws, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time
or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, or require the Company to make any payment (of cash or otherwise) or adjustment or issue any shares of Common Stock or
other securities under, any agreement (including, without limitation, any employment or similar agreement), security (including,
without limitation, any option or warrant to purchase Common Stock), credit facility, debt or any other instrument (evidencing
a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company
is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject
(including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected;
except in the case of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse
Effect.

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(e)               
Filings, Consents and Approvals. The Company is not required to obtain any consent,
waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state,
local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company
of this Agreement or the other Transaction Documents, other than: (i) the filings required pursuant to Section 4.6 of this Agreement,
(ii) the filing with the Commission of the Registration Statements in accordance with the terms of the Registration Rights Agreement,
(iii) solely with respect to the issuance of the Series B Warrant Shares, the approval of the Company’s stockholders of the
Increased Shares Amendment, (iv) solely with respect to the issuance of the Series B Warrant Shares, the Company’s filing
of the Amendment Filing (as defined in the Series B Warrants), which filing the Company is required to make as set forth in Section
5 of the Series B Warrants, (v) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of
the Securities and the listing of the Shares and Warrant Shares for trading thereon in the time and manner required thereby, and
(vi) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws
(collectively, the “Required Approvals”). Except for any reduction required by the Securities and Exchange Commission
to the number of Registrable Securities permitted to be registered for resale on a Registration Statement (as such terms are defined
in the Registration Rights Agreement), the Company is unaware of any facts or circumstances that might prevent the Company from
obtaining or effecting any of the registration, application or filings pursuant to the preceding sentence. The Company is not in
violation of the listing requirements of its principal Trading Market and has no knowledge of any facts that would reasonably lead
to delisting or suspension of the Common Stock in the foreseeable future. The issuance by the Company of the Securities shall not
have the effect of delisting or suspending the Common Stock from the Company’s principal Trading Market.

(f)                
Issuance of the Securities. The Securities (with respect to the Series B Warrant Shares,
subject to the Increased Shares Amendment) are duly authorized and, when issued and paid for in accordance with this Agreement
and the other applicable Transaction Documents, will be duly and validly issued, fully paid and non-assessable, free and clear
of all Liens imposed by the Company other than restrictions on transfer provided for in this Agreement or the other Transaction
Documents. The Warrant Shares (with respect to the Series B Warrant Shares, subject to the Increased Shares Amendment), when issued
in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and non-assessable, free and clear
of all Liens imposed by the Company other than restrictions on transfer provided for in this Agreement or the other Transaction
Documents. The Company has or will have, prior to issuance (with respect to the Series B Warrant Shares, subject to effecting the
Increased Shares Amendment), reserved from its duly authorized capital stock solely for the benefit of the Purchasers and any other
holders of Warrants, the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. 

(g)               
Capitalization. 

(i)
     The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock, par value $0.01 per share and 10,000,000
shares of preferred stock, par value $0.01 per share (“Preferred Stock”). There are 35,074,912 shares of Common
Stock and 4,697 shares of Preferred Stock, all of which are Series A Convertible Preferred Stock (which converts into 25,416 shares
of Common Stock), outstanding as of the Closing Date.

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(ii)     There
are options to purchase 2,181,853 shares of Common Stock outstanding as of the Closing Date.

(iii)     There
are restricted stock units to acquire 250,000 shares of Common Stock outstanding as of the Closing Date.

(iv)     There
are warrants to purchase 24,720,317 shares of Common Stock outstanding as of the Closing Date with the exercise prices and expiration
dates as set forth on Schedule 3.1(g)(iv).

(v)     There
are 1,886,351 shares reserved for future issuance under the Company’s 2011 Stock Incentive Plan.

(vi)     No
Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(g)(vi) and except as to the Purchasers as
a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents. Except as set forth on Schedule 3.1(g)(vi), the issuance and sale of the Securities will not obligate
the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in
a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable,
have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation
of any preemptive rights or similar rights to subscribe for or purchase securities. Except for the Required Approvals, no further
approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.
Except as disclosed in the SEC Reports or in any exhibit thereto, there are no stockholders agreements, voting agreements or other
similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the
Company, between or among any of the Company’s stockholders.

(vii)     As
of the Closing Date, the Company will have reserved 35,861,151 shares of Common Stock for the purpose of enabling the Company to
issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

(viii)     Other
than as set forth on Schedule 3.1(g)(viii), since March 1, 2011, the Company has not issued any shares of Common Stock or
Common Stock Equivalents.

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(ix)
     As of March 1, 2011, there were 34,854,028 shares of Common Stock issued and outstanding.

(h)               
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant
to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required
by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received
a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of
their respective dates, the SEC Reports complied as to form in all material respects with the requirements of the Securities Act
and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the
SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its Subsidiary as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

(i)                 
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of
the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report
filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that could reasonably be
expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other
than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B)
liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made
with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer, director or
Affiliate, except pursuant to existing Company equity plans. The Company does not have pending before the Commission any request
for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as disclosed
in the SEC Reports, no event, liability, fact, circumstance, occurrence or development (including, without limitation, any fundamental
transaction, change of control or similar event under any agreement (including, without limitation, any employment agreement))
has occurred or exists, or is reasonably expected to occur or exist, with respect to the Company or its business, properties, operations,
assets or financial condition that, but for the passage of time, would be required to be disclosed by the Company under applicable
securities laws at the time this representation is made that has not been publicly disclosed at least one (1) Trading Day prior
to the date that this representation is made.

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(j)                
Litigation. There is no action, suit, written notice of an inquiry or investigation,
notice of violation or proceeding pending or, to the knowledge of the Company, threatened against or affecting the Company, the
Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency, trading
market or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which
(i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor the Subsidiary is or has been the subject of any Action involving a claim of violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty. To the knowledge of the Company, no director or officer of the
Company or the Subsidiary is the subject of any Action involving a claim of violation of or liability under federal or state securities
laws or a claim of breach of fiduciary duty. The Commission has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company under the Exchange Act or the Securities Act. 

(k)              
Labor Relations. No material labor dispute exists or, to the knowledge of the Company,
is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse
Effect. None of the Company’s employees is a member of a union that relates to such employee’s relationship with the
Company, the Company is not a party to a collective bargaining agreement, and the Company believes that its relationship with its
employees is good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material
term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement,
or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each
such executive officer does not subject the Company to any liability with respect to any of the foregoing matters. The Company
is in compliance with all material U.S. federal, state, local and foreign laws and regulations relating to employment and employment
practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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(l)                 
Compliance. Neither the Company nor the Subsidiary (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by
the Company under), nor has the Company or the Subsidiary received written notice of a claim that it is in default under or that
it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of
any judgment, decree or order of any court, arbitrator or governmental authority, and (iii) is in violation of any statute, rule,
ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws
applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be
expected to result in a Material Adverse Effect.

(m)             
Regulatory Permits. The Company possesses all certificates, authorizations and permits
issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct its business as currently
conducted as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to
result in a Material Adverse Effect (“Material Permits”), and the Company has not received any notice of proceedings
relating to the revocation or modification of any Material Permit.

(n)               
Title to Assets. The Company has good and marketable title in fee simple to all real
property and good and marketable title in all personal property owned by it that is material to the business of the Company, in
each case free and clear of all Liens, except for (i) Liens that do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and (ii) Liens for the payment of
federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and the payment of
which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company are held
by it under valid, subsisting and enforceable leases with which the Company is in compliance except where the failure to be in
compliance would not reasonably be expected to have a Material Adverse Effect. 

(o)              
Patents and Trademarks. The Company and its Subsidiary own or possess adequate rights
or licenses to use, all patents, patent rights, patent applications, trademarks, trademark applications, service marks, trade names,
trade secrets, inventions, copyrights, licenses, approvals, government authorizations, trade secrets and other intellectual property
rights and similar rights necessary or required for use in connection with their respective businesses (collectively, the “Intellectual
Property Rights”). None of the Company’s or the Subsidiary’s material Intellectual Property Rights have expired
or terminated or have been abandoned or are expected to expire or terminate or are expected to be abandoned, within three years
from the date of this Agreement. Neither the Company nor its Subsidiary has received a notice (written or otherwise) that any of
the Intellectual Property Rights used by the Company or its Subsidiary violates or infringes upon the rights of any Person. To
the knowledge of the Company, all such Intellectual Property Rights are enforceable. There is no existing infringement by another
Person of any of the Intellectual Property Rights which would reasonably be expected to have a Material Adverse Effect. Neither
the Company nor the Subsidiary is aware of any facts or circumstances which might give rise to any of the foregoing infringements
or claims, actions or proceedings. The Company and its Subsidiary have taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

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(p)              
Insurance. The Company is insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the business in which the Company is engaged.
The Company has no reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant
increase in cost.

(q)              
Transactions With Affiliates and Employees. None of the officers or directors of the
Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with
the Company or its Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than for: (i)
payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and
(iii) other employee benefits, including stock option, restricted stock or other compensation-related agreements under any equity
plan of the Company.

(r)                
Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance
with all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable
rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date.
The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance
that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required
to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered
by the Company’s most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
Since the Evaluation Date, there have been no changes in the Company’s internal control over financial reporting (as such
term is defined in the Exchange Act) that have materially affected, or are reasonably likely to materially affect, the Company’s
internal control over financial reporting.

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(s)               
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable
by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section
that may be due in connection with the transactions contemplated by the Transaction Documents.

(t)                
Private Placement. Assuming the accuracy of the Purchasers’ representations and
warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities
by the Company to the Purchasers as contemplated hereby. 

(u)               
Investment Company. The Company is not, and immediately after receipt of payment for
the Securities, and for so long as any Purchaser holds any Securities, will not be, an “investment company” within
the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will
not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended. The
Company is not controlled by an “investment company” and shall not take any actions that would cause the Company to
be controlled by an “investment company”.

(v)               
Registration Rights. Except as disclosed in the SEC Reports or in any exhibit thereto,
other than each of the Purchasers pursuant to the Registration Rights Agreement, no Person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the Company.

(w)             
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section
12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have
the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification
that the Commission is contemplating terminating such registration. Except as described in the SEC Reports, the Company has not,
in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed
or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market.

(x)               
Disclosure. Except with respect to the material terms and conditions of the transactions
contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided
any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material,
non-public information. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting
transactions in securities of the Company. The disclosure furnished by or on behalf of the Company to the Purchasers regarding
the Company, the Subsidiary, their respective businesses and the transactions contemplated hereby does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in the Transaction Documents.

    	20

    	 	

    
 

(y)               
No Integrated Offering. Assuming the accuracy of the Purchasers’ representations
and warranties set forth in Section 3.2, neither the Company, nor the Subsidiary, nor any of their respective Affiliates, nor any
Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers
to buy any security, under circumstances that would reasonably cause this offering of the Securities to be integrated with prior
offerings by the Company for purposes of (i) the Securities Act, which would require the registration of any such securities under
the Securities Act, or (ii) any applicable stockholder approval provisions, including, without limitation, of any Trading Market
on which any of the securities of the Company are listed or designated.

(z)               
Tax Status. Except for matters that would not, individually or in the aggregate, have
or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiary has filed all necessary federal,
state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has
no knowledge of a tax deficiency which has been asserted or threatened against the Company or its Subsidiary.

(aa)           
No General Solicitation. Neither the Company nor any person acting on behalf of the
Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered
the Securities for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule
501 under the Securities Act.

(bb)          
Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company,
any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment
to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate
funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which
the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt
Practices Act of 1977, as amended.

(cc)           
Accountants. The Company’s registered public accounting firm is KPMG LLP. To
the Company’s knowledge, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act
and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report
for the fiscal year ending June 30, 2012.

    	21

    	 	

    
 

(dd)          
Regulation M Compliance.  The Company has not, and to its knowledge no one acting
on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased,
or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any
compensation for soliciting another to purchase any other securities of the Company.

(ee)           
FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration
(“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”)
that is being studied by the Company (each such product, a “Pharmaceutical Product”), such Pharmaceutical Product
is being manufactured, packaged, labeled, and tested by the Company, or to the Company’s knowledge on behalf of the Company,
in compliance with all applicable requirements under the FDCA relating to registration, investigational use, good manufacturing
practices, good laboratory practices, good clinical practices, labeling, record keeping and filing of reports, except where the
failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company’s
knowledge, threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge,
complaint, or investigation) relating to the Pharmaceutical Products against the Company or the Subsidiary, and neither the Company
nor the Subsidiary has received any written notice, warning letter or other written communication from the FDA or any other governmental
entity, which (i) imposes a clinical hold on any clinical investigation by the Company, (ii) enters or proposes to enter into a
consent decree of permanent injunction with the Company, or (iii) otherwise alleges any violation of the FDCA and the related rules
or regulations by the Company or the Subsidiary, and which, either individually or in the aggregate, would have a Material Adverse
Effect. The properties, business and operations of the Company have been and are being conducted
in all material respects in accordance with all applicable laws, rules and regulations of the FDA. The Company has not been informed
by the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed,
produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product
being developed or proposed to be developed by the Company.

(ff)              
Office of Foreign Assets Control. Neither the Company nor,
to the Company’s knowledge, any director, officer, agent, employee or Affiliate of the Company is currently subject to any
U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department.

(gg)           
Money Laundering. The operations of the Company are and have
been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and
Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations
thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court
or governmental agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is
pending or, to the knowledge of the Company, threatened.

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(hh)           
Application of Takeover Protections. The Company and its Board of Directors have taken
all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s certificate
of incorporation or bylaws or the restrictions on business combinations set forth in Section 203 of the Delaware General Corporation
Law and any other similar applicable anti-takeover law that is or could become applicable to each Purchaser as a result of such
Purchaser, any other Attribution Party and the Company fulfilling their obligations or exercising their rights under the Transaction
Documents, including without limitation as a result of the Company’s issuance of the Shares, Warrants or Warrant Shares and
such Purchaser’s ownership of any of, or rights to, any such Securities including upon any exercise of any and all of the
Warrants (assuming the exercise in full of the Warrants without regard to any limitations on exercise of the Warrants and as if
the Increased Shares Amendment had, as of the date hereof, been adopted and become effective). The Company hereby represents that
the Board has approved the transactions contemplated under the Transaction Documents for purposes of Section 203 of the Delaware
General Corporation Law. The Company hereby represents and warrants that there will be no consequence under Section 203 of the
Delaware General Corporation Law to any Purchaser or any other Attribution Party by virtue of such Purchaser becoming an “Interested
Stockholder” or an “Affiliate” or “Associate” of an “Interested Stockholder” (as such
terms are defined in Section 203 of the Delaware General Corporation Law) as a result of the Company’s issuance of the Shares,
Warrants or Warrant Shares and such Purchaser’s ownership of any of, or rights to, any such Securities including upon any
exercise of any and all of the Warrants (assuming the exercise in full of the Warrants without regard to any limitations on exercise
of the Warrants and as if the Increased Shares Amendment had, as of the date hereof, been adopted and become effective). For the
avoidance of doubt, such Purchaser’s ownership of any or all of such Securities shall not be taken into account when calculating
such Purchaser’s percentage ownership in the Company and shall not count towards any ownership threshold for purposes of
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement), or other
similar anti-takeover provision under the Company’s certificate of incorporation or bylaws or the laws of its state of incorporation
(including Section 203 of the Delaware General Corporation Law). The Company has no control share acquisition, business combination,
poison pill or similar anti-takeover provision under any agreement (other than the letter agreement, dated October 7, 2011, between
the Company and Biotechnology Value Fund, L.P. filed with the Current Report on Form 8-K filed by the Company with the Commission
on October 7, 2011) or the Company’s certificate of incorporation or bylaws. The Company has no fundamental transaction,
change of control or similar provision under any agreement (including, without limitation, any employment agreement), outstanding
security (including, without limitation, any option or warrant to purchase Common Stock) or other instrument (other than as set
forth on Schedule 3.1(hh)(i)). The execution, delivery and performance by the Company of this Agreement and the other Transaction
Documents to which it is a party, and the issuance of the Shares and Warrants on the Closing Date do not and will not result in
any fundamental transaction, change of control or similar event, the requirement to make any payment or adjustment or issue any
shares of Common Stock or other securities with respect to any fundamental transaction, change of control or similar event, or
an event that with the passage of time could result in a fundamental transaction, change of control or similar event under any
agreement (including, without limitation, any employment agreement), outstanding security (including, without limitation, any option
or warrant to purchase Common Stock) or other instrument. Other than as set forth on Schedule 3.1(hh)(ii), the exercise
in full of the Warrants (without regard to any limitations on exercise of the Warrants and as if the Increased Shares Amendment
had, as of the date hereof, been adopted and become effective) will not result in any fundamental transaction, change of control
or similar event, the requirement to make any payment (whether of cash or otherwise) or adjustment or issue any shares of Common
Stock or other securities with respect to any fundamental transaction, change of control or similar event, or an event that with
the passage of time could result in a fundamental transaction, change of control or similar event under any agreement (including,
without limitation, any employment agreement), outstanding security (including, without limitation, any option or warrant to purchase
Common Stock) or other instrument. 

    	23

    	 	

    
 

(ii)               
Shell Company Status. The Company is not and has never been, prior to the date hereof,
an issuer subject to Rule 144(i) under the Securities Act.

(jj)              
Acknowledgment Regarding Purchaser’s Purchase of Securities. The Company acknowledges
and agrees that each Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction
Documents and the transactions contemplated hereby and thereby and that no Purchaser, together with its other Attribution Parties,
is (i) an officer or director of the Company or the Subsidiary, (ii) assuming the accuracy of the Purchasers’ representation
set forth in Section 3.2(g), an Affiliate of the Company or the Subsidiary or (iii) assuming the accuracy of the Purchasers’
representations and warranties set forth in Section 3.2(g), to the knowledge of the Company, a “beneficial owner” (as
defined for purposes of Rule 13d-3 of the 1934 Act) of more than 10% of the aggregate number of shares of Common Stock currently
outstanding. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company or
the Subsidiary (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby
and thereby, and any advice given by a Purchaser or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to such Purchaser’s purchase of the Securities.
The Company further represents to each Purchaser that the Company’s decision to enter into the Transaction Documents has
been based solely on the independent evaluation by the Company and its representatives. 

(kk)          
U.S. Real Property Holding Corporation. The Company is not, has never been, and so
long as any Securities remain outstanding, shall not become, a U.S. real property holding corporation within the meaning of Section
897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon any Purchaser’s request.

(ll)               
Acknowledgement Regarding Buyers’ Trading Activity. The Company acknowledges
and agrees that, other than as specifically set forth in Section 4.13, none of the Purchasers have been asked to agree, nor has
any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative”
securities based on securities issued by the Company. The Company further understands and acknowledges that one or more Purchasers
may engage in hedging and/or trading activities (including long and short sales) at various times during the period that the Securities
are outstanding. The Company acknowledges that such aforementioned hedging and/or trading activities (including long and short
sales) do not constitute a breach of this Agreement, the Securities or any of the documents executed in connection herewith.

(mm)       
Increased Shares Stockholder Approval. From and after the Authorized Shares Increase
Date (as defined in the Series B Warrants), the Increased Shares Amendment will increase the number of shares of the Company’s
authorized Common Stock to a number of shares of Common Stock that will be sufficient to allow the Company to issue all shares
of Common Stock that could be issuable pursuant to this Agreement and the Warrants (without regard to any limitation on exercise
contained therein).

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3.2 
             Representations and Warranties of the Purchasers.
Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing
Date (unless as of a specific date therein) to the Company as follows:

(a)               
Organization; Authority. Such Purchaser
is either an individual or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization with full right, corporate, partnership, limited partnership, limited liability company or similar power and authority
to enter into and to consummate the transactions contemplated by this Agreement and the other Transaction Documents and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and the other Transaction Documents
and performance by such Purchaser of the transactions contemplated by this Agreement and the other Transaction Documents have been
duly authorized by all necessary corporate, partnership, limited partnership, limited liability company or similar action, as applicable,
on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when
delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such
Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

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(b)              
Own Account. Such Purchaser (i) understands that the Securities
are “restricted securities” and have not been registered under the Securities Act or any applicable state securities
law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such
Securities or any part thereof in violation of the Securities Act or any applicable state securities law, (ii) has no present
intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law, and
(iii) has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution
of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty
not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course
of its business.

(c)               
Purchaser Status. At the time such Purchaser was offered the Securities,
it was, and as of the date hereof it is, and on each date on which it exercises any Warrants it will be, an “accredited
investor” as defined in Rule 501 under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer
under the Exchange Act.

(d)              
Experience of Such Purchaser.Such Purchaser, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks
of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser
is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss
of such investment.

(e)               
No Tax or Legal Advice. Such Purchaser understands that nothing
in this Agreement, any other Transaction Document or any other materials presented to such Purchaser in connection with the purchase
and sale of the Securities constitutes legal, tax or investment advice. Such Purchaser has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securities.

(f)               
General Solicitation. Such Purchaser is not purchasing the Securities
as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper,
magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation
or general advertisement.

(g)              
Ownership. Except for the Securities acquired pursuant to this Agreement,
such Purchaser does not own any securities of the Company.

(h)              
Certain Transactions and Confidentiality. Other than consummating
the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding
with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of
the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from
the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder
and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed
investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio
managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager
that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this
Agreement and the Purchaser’s employees, representatives and agents, such Purchaser has maintained the confidentiality of
all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding
the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any
actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect
Short Sales or similar transactions in the future.

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The Company
acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby.

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1             
Transfer Restrictions.

(a)               
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or Rule 144 (in connection with which the Company may
require the Purchaser to provide reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule
144), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor
and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company,
to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. Notwithstanding
the foregoing, the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement
secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Purchaser effecting a pledge of Securities shall be required to provide the Company with any notice thereof
or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document.

(b)              
The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities
in the following form:

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR (B) PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, THE SUBSTANCE
OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY, OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

(c)                Certificates
evidencing the Shares and Warrant Shares, or the applicable portion thereof, shall not contain any legend (including the
legend set forth in Section 4.1(b) hereof), (i) once a registration statement (including the Registration Statement) covering
the resale of such Shares and the Warrant Shares is effective under the Securities Act, (ii) following any sale of
such Shares or Warrant Shares pursuant to Rule 144, or (iii) if such Shares or Warrant Shares are eligible for sale under
Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule
144 as to such Shares and Warrant Shares and without volume or manner-of-sale restrictions. At the Purchaser’s request,
for the applicable portion of the Shares and Warrant Shares, the Company shall cause its counsel to issue a legal opinion to
the Transfer Agent within two (2) Trading Days after the Effective Date if required by the Transfer Agent to effect the
removal of the legend hereunder. When the Shares or Warrant Shares may be sold under Rule 144 without the requirement for the
Company to be in compliance with the current public information required under Rule 144 as to such Shares or Warrant Shares
and without volume or manner-of-sale restrictions, then such Warrant Shares shall be issued free of all legends. The Company
agrees that following the Effective Date of a Registration Statement with respect to the Shares and Warrant Shares registered
on such Registration Statement, or at such time as such legend is no longer required under this Section 4.1(c), it will, no
later than three (3) Trading Days following the delivery by a Purchaser to the Company or the Transfer Agent of (A) a
certificate representing the applicable portion of the Shares or Warrant Shares, as the case may be, issued with a
restrictive legend and (B) to the extent the Purchaser is an Affiliate of the Company (it being agreed and acknowledged that
the Purchaser shall not be deemed to be an Affiliate of the Company at any time that the Purchaser Condition is satisfied)
any documentation reasonably requested by the Company demonstrating such Purchaser’s compliance with all of the
applicable requirements of Rule 144 (such third (3rd) Trading Day, the “Legend Removal Date”), deliver or
cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other
legends. If the Company shall fail for any reason or for no reason to issue to such Purchaser of the Securities on or
before the Legend Removal Date a certificate without such legend or to issue such Securities to such Purchaser by electronic
delivery at the applicable balance account at DTC, and if on or after such Trading Day the Purchaser purchases (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Purchaser of such
Securities that the Purchaser anticipated receiving without legend from the Company (a “Buy-In”), then the
Company 

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shall,
within three (3) Trading Days after the Purchaser’s request and in the Purchaser’s discretion, either (i) pay cash
to the Purchaser in an amount equal to the Purchaser’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such unlegended Securities shall terminate, or (ii) promptly honor its obligation to deliver to the Purchaser
such unlegended Securities or to issue such Securities to such Purchaser by electronic delivery at the applicable balance account
at DTC as provided above and pay cash to the Purchaser in an amount equal to the excess (if any) of the Buy-In Price over the
product of (A) such number of shares of Common Stock, times (B) the Weighted Average Price (as defined in the Warrants) of the
Common Stock on the Legend Removal Date. The Company may not make any notation on its records or give instructions to the Transfer
Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Securities subject to legend removal
hereunder shall be transmitted by the Transfer Agent to the Purchaser by (X) upon the request of the Purchaser, crediting
the Purchaser’s or its designee’s balance account with the DTC through DWAC, or to the Purchaser’s or its designee’s
direct registration account, provided that the Transfer Agent is participating in the DRS or FAST Program, or (Y)
if the Transfer Agent is not participating in either the DRS or FAST Program, issuing and dispatching by overnight courier to
the address as specified in the notice section hereof, a certificate registered in the Company’s share register in the name
of the Purchaser.

(d)              
Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell
any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement (including the Registration
Statement), they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal
of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s
reliance upon this understanding.

4.2             
Continued Registration; Public Information. Until such time that
the Purchaser owns no Securities, the Company covenants to use reasonable best efforts to maintain the registration of the Common
Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within
the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act
even if the Company is not then subject to the reporting requirements of the Exchange Act, and if the Company is not required
to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance
with Rule 144(c) such information as is required for the Purchasers to sell the Securities, including without limitation, under
Rule 144.

4.3             
Integration. The Company shall not sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be
integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of
the sale of the Securities or that would be integrated with the offer or sale of the Securities such that it would require stockholder
approval for purposes of the rules and regulations of any Trading Market or otherwise unless stockholder approval is obtained
before the closing of such subsequent transaction.

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4.4             
Warrants. The Company hereby covenants and agrees to comply with
each and every one of its obligations and other terms set forth in the Warrants, including, without limitation, Section 3(d) of
the Warrants and Section 5 of the Series B Warrants, for so long as any such Warrants remain outstanding.

4.5             
Shareholder Rights Plan and Anti-Takeover Plans. Assuming that the
Purchaser does not beneficially own any Common Stock or Common Stock Equivalents immediately prior to the execution of this Agreement,
at no time following the Company’s issuance of the Shares, Warrants or Warrant Shares (assuming the exercise in full of
the Warrants without regard to any limitations on exercise of the Warrants and as if the Increased Shares Amendment had, as of
the date hereof, been adopted and become effective) will any claim be raised or enforced by the Company or, with the consent of
or without the opposition of the Company, any other Person, that (i) any Purchaser is an “Acquiring Person” or functionally
equivalent Person under any control share acquisition, business combination, poison pill (including any distribution under a rights
agreement), or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company or other similar anti-takeover
provision under the Company’s certificate of incorporation or the laws of its state of incorporation, (ii) any Purchaser
could be deemed to trigger the provisions of any such plan or arrangement or other anti-takeover provision, in whole or in part,
by virtue of receiving Shares or Warrants under this Agreement or Warrant Shares upon exercise of any such Warrants or under any
other agreement between the Company and the Purchasers, assuming that the facts and circumstances that exist as of the Closing
Date are not materially changed by a Purchaser (it being agreed and acknowledged by the Company that neither an exercise of any
or all of the Warrants (assuming the exercise in full of the Warrants without regard to any limitations on exercise of the Warrants
and as if the Increased Shares Amendment had, as of the date hereof, been adopted and become effective) nor any waiver of Section
2(d) of the Warrants in accordance with the terms thereof shall be deemed to be a material change in the facts and circumstances
that exist as of the Closing Date), or (iii) any Purchaser is an “Interested Stockholder” or an “Affiliate”
or “Associate” of an “Interested Stockholder” (as such terms are defined in Section 203 of the Delaware
General Corporation Law). For the avoidance of doubt, no Purchaser’s ownership of any or all of the Securities shall be
taken into account when calculating such Purchaser’s percentage ownership in the Company and shall not count towards any
ownership threshold for purposes of any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement), or other similar anti-takeover provision under the Company’s certificate of incorporation or
bylaws or the laws of its state of incorporation (including Section 203 of the Delaware General Corporation Law).

4.6             
Securities Laws Disclosure; Publicity. The Company shall (a) by
5:30 p.m. (New York City time) on July 2, 2012, issue a press release disclosing the material terms of the transactions contemplated
hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission
within the time required by the Exchange Act. From and after the issuance of such press release, the Company shall have publicly
disclosed all material, non-public information delivered to any of the Purchasers by the Company, the Subsidiary or any of their
respective officers, directors, employees or agents, that is not disclosed in the press release.

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4.7             
Non-Public Information. From and after the filing of the press release
contemplated by Section 4.6, the Company covenants and agrees that neither it, the Subsidiary, nor any other Person acting on
its or their behalf, will provide any Purchaser or its agents or counsel with any material non-public information, unless prior
thereto such Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in the Securities of the Company. If a Purchaser has, or believes it has, received any such material, nonpublic information
regarding the Company or the Subsidiary from the Company, the Subsidiary or any of their respective officers, directors, Affiliates
or agents, it may provide the Company with written notice thereof. The Company shall, within two (2) Trading Days of receipt of
such notice, make public disclosure of such material, nonpublic information. To the extent that the Company delivers any material,
non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such
Purchaser shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public
information.

4.8             
Use of Proceeds. The Company shall use the net proceeds from the
sale of the Securities hereunder primarily for the ongoing development of bremelanotide for treatment of female sexual dysfunction,
preclinical and clinical development of its melanocortin receptor-1 peptide program, preclinical and clinical development of its
PL-3994 product and preclinical and clinical development of other portfolio products, and for working capital and general corporate
purposes.

4.9             
Indemnification of Purchasers. Subject to the provisions of this
Section 4.9, the Company will indemnify and hold each Purchaser and its Affiliates, investment manager, directors, officers, stockholders,
members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section
15 of the Securities Act and Section 20 of the Exchange Act), and the Affiliates, directors, officers, stockholders, agents, members,
partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any breach of, failure to comply with
or adhere to, misrepresentation with respect to or 

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relating to, or any act or omission inconsistent with, any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents, including, without
limitation, and for purposes of clarification, any claims any Purchaser Party may have against the Company for any such breach,
failure misrepresentation, act or omission pursuant to any provision of any Transaction Document, including, without limitation,
Sections 4.4, 4.5 and 4.17 through 4.24 of this Agreement, or (b) any action instituted against the Purchaser Parties in any
capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser
Parties, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a
breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements
or understandings such Purchaser Parties may have with any such stockholder or any violations by such Purchaser Parties of state
or federal securities laws or any conduct by such Purchaser Parties which constitutes fraud, gross negligence, willful misconduct
or willful malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the
right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser
Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof
has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable written opinion of counsel to the Purchasers
furnished to the Company, a material conflict on any material issue between the position of the Company and the position of such
Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such
separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser
Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z)
to the extent, but only to the extent, that a loss, claim, damage or liability is attributable to any Purchaser Party’s
breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in
the other Transaction Documents or any agreements or understandings such Purchaser
Parties may have with any such stockholder or any violations by such Purchaser Parties of state or federal securities laws or
any conduct by such Purchaser Parties which constitutes fraud, gross negligence, willful misconduct or willful malfeasance. Except
as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under this Section 4.9
shall be the same as those set forth in Section 5 of the Registration Rights Agreement.

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4.10         
Reservation of Common Stock. As of the date hereof, the Company
has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient
number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement and Warrant
Shares pursuant to any exercise of the Warrants (solely with respect to the reservation of the Series B Warrant Shares, subject
to effecting the Increased Shares Amendment). The Company shall reserve and so long as any Securities are outstanding, the Company
shall continue to reserve and keep available at all times, free of preemptive rights, a number of shares of Common Stock equal
to the maximum number of Shares issuable pursuant to this Agreement and Warrant Shares issuable pursuant to any exercise of the
Warrants (without regard to any restrictions on exercise thereof) (solely with respect to the reservation of the Series B Warrant
Shares, subject to effecting the Increased Shares Amendment) (the “Required Reserve Amount”).

4.11         
Listing of Common Stock.
The Company hereby agrees to use commercially reasonable efforts to maintain the listing or quotation of the Common Stock on the
Trading Market on which it is currently listed, and the Company shall apply to list or quote the Shares and Warrant Shares on
such Trading Market (solely with respect to the listing or quotation of the Series B Warrant Shares, subject to effecting the
Increased Shares Amendment) and use commercially reasonable efforts to secure the listing of the Shares and Warrant Shares (solely
with respect to the listing of the Series B Warrant Shares, subject to effecting the Increased Shares Amendment) on such Trading
Market in the time and manner required thereby. The Company further agrees, if the Company applies to have the Common Stock traded
on any other Trading Market, it will then include in such application the Shares and Warrant Shares (solely with respect to the
of the Series B Warrant Shares, subject to effecting the Increased Shares Amendment), and will take such other action as is necessary
to cause the Shares and Warrant Shares to be listed or quoted (solely with respect to the listing or quotation of the Series B
Warrant Shares, subject to effecting the Increased Shares Amendment) on such other Trading Market in the time and manner required
thereby. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on
a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws
or rules of the Trading Market.

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4.12         
Equal Treatment of Purchasers. No consideration (including any modification
of any Transaction Document) shall be offered or paid to any Purchaser (or any Affiliate of a Purchaser) to amend or consent to
a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to
all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted
to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers
as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise.

4.13         
Certain Transactions and Confidentiality. Each Purchaser, severally
and not jointly with the other Purchasers, covenants that neither it nor any Affiliate acting on its behalf or pursuant to any
understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s securities during
the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this
Agreement are first publicly announced pursuant to the initial press release as described in Section 4.6. 
Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions
contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section
4.6, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included
in the Transaction Documents. Notwithstanding the foregoing, any Purchaser may disclose the existence and terms of this transaction
and the information included in the Transaction Documents if it reasonably believes it is required to make such disclosure in
order to comply with applicable law, regulation or rule (including, without limitation, any rule, regulation or policy statement
of (i) any organized securities exchange, market or automated quotation system on which the Company’s securities are listed
or quoted, (ii) any self-regulatory organization of which a party is a member, or (iii) any legal or judicial process) or
as part of any audit or regulatory examination. Notwithstanding the foregoing and notwithstanding
anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser nor
any other Attribution Party makes any representation, warranty or covenant hereby that it or any other Attribution Party will
not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this
Agreement are first publicly announced pursuant to the initial press release as described in Section 4.6, (ii) no Purchaser nor
any other Attribution Party shall be restricted or prohibited from effecting any transactions in any securities of the Company
in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are
first publicly announced pursuant to the initial press release as described in Section 4.6, and (iii) no Purchaser nor any other
Attribution Party shall have any duty of confidentiality to the Company after the issuance of the initial press release as described
in Section 4.6. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct
knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets,
the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made
the investment decision to purchase the Securities covered by this Agreement.

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4.14         
Form D; Blue Sky Filings. The Company agrees to timely file a Form
D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser.
The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for,
or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or “Blue Sky”
laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.

4.15         
Acknowledgment of Dilution. The Company and each of the Purchasers
acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of Common Stock, which dilution
may be substantial under certain market conditions. The Company further acknowledges that its obligations under the Transaction
Documents, including, without limitation, its obligation to issue the Shares and Warrant Shares pursuant to the Transaction Documents,
are not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any
claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership
of the other stockholders of the Company.

4.16         
Public Information. At any time during the period commencing on
the six (6) month anniversary of the Closing Date and ending at such time that all of the Securities, if a registration statement
is not available for the resale of all of the Securities, may be sold without restriction or limitation pursuant to Rule 144 and
without the requirement to be in compliance with Rule 144(c)(1), if the Company shall (i) fail to use its best efforts to satisfy
the requirements of Rule 144(c)(1), including, without limitation, the failure to satisfy the current public information requirement
under Rule 144(c) or (ii) if the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the
future, and the Company shall fail to use its best efforts to satisfy any condition set forth in Rule 144(i)(2) (a “Public
Information Failure”) then, as partial relief for the damages to any Purchaser
or other holder of Securities by reason of any such delay in or reduction of its ability to sell the Securities (which remedy
shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to each such Purchaser and
holder an amount in cash equal to one percent (1.0%) of the aggregate Subscription Amount of such Purchaser or holder’s
Securities on the day of a Public Information Failure and on every thirtieth (30th) day (pro rated for periods totaling less than
thirty (30) days) thereafter until the earlier of (i) the date such Public Information Failure is cured and (ii) such time that
such public information is no longer required pursuant to Rule 144. The payments to which a Purchaser and other holders shall
be entitled pursuant to this Section 4.16 are referred to herein as “Public Information Failure Payments.”
Public Information Failure Payments shall be paid on the earlier of (I) the last day of the calendar month during which
such Public Information Failure Payments are incurred and (II) the third Business Day after the event or failure giving
rise to the Public Information Failure Payments is cured. In the event the Company fails to make Public Information Failure
Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month
(prorated for partial months) until paid in full. The Company shall be liable for all payments to each Purchaser pursuant to this
Section 4.16 and such payments shall be a liability and debt obligation of the Company, and each Purchaser shall be a creditor
of the Company with respect to such obligation, that is immediately due and payable pursuant to and in accordance with this Section
4.16.

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4.17         
Additional Issuances of Securities and Indebtedness. From the date
hereof until the Issuance Period End Date, the Company shall not enter into any Subsequent Equity Placement or any Subsequent
Debt Placement and neither any Subsequent Equity Placement nor any Subsequent Debt Placement shall occur. Upon any increase in
the number of authorized shares of Common Stock of the Company following the date hereof including in connection with the Increased
Shares Amendment, the Company shall use such increased number of authorized shares to satisfy its obligations to keep the Required
Reserve Amount of shares reserved for the Purchasers before reserving or using shares for any other purpose. The Company shall
provide the Purchasers with notice of all issuances, including, without limitation upon exercise or conversion of any Common Stock
Equivalents, of any shares of Common Stock issued from and after the date hereof through September 30, 2013.

4.18         
Right of Participation. (a) From and after the Issuance Period End
Date (it being acknowledged and agreed that prior to such date the Company is subject to the prohibitions set forth in the first
sentence of Section 4.17 above) until the six (6) year anniversary of the Closing Date, so long as the Purchasers in the aggregate
beneficially own Common Stock or Common Stock Equivalents equal to or convertible or exercisable, as the case may be, into at
least 20% of the Company’s outstanding shares of Common Stock (calculated as if the Warrants were exercised in full without
regard to any limitations on exercise of the Warrants and as if the Increase Shares Amendment has been adopted and become effective),
the Company shall not, and the Company shall not permit its Subsidiary to, directly or indirectly, effect any Subsequent Placement
unless the Company shall have first complied with this Section 4.18.

(i)                
If the Company desires to raise any capital, incur any Indebtedness or otherwise effect any Subsequent Placement, the Company
shall give notice of such desired Subsequent Placement (the “Subsequent Placement Notice”) to the Purchasers
prior to the Company or any representative of the Company contacting or entering into any discussions with any other Person with
respect to any such desired Subsequent Placement. For a period of ten (10) Business Days after receipt of the Subsequent Placement
Notice (the “Subsequent Placement Structuring Period”), the Company shall negotiate in good faith and provide
the Purchasers the opportunity to structure and negotiate with the Company a Subsequent Placement on terms mutually acceptable
to the Company and the Purchasers. If the Company and the Purchasers agree upon mutually acceptable terms with respect to a Subsequent
Placement, (x) the Company shall offer to issue and sell to or exchange with the Purchasers all of the securities contemplated
pursuant to such Subsequent Placement, allocated among such Purchasers as indicated by the Purchasers and (y) the parties shall
negotiate definitive documentation in good faith in accordance with the agreed upon terms of such Subsequent Placement.

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(ii)              
If the Company and the Purchasers do not agree to terms of a Subsequent Placement during the Subsequent Placement Structuring
Period, during the twenty (20) Business Day period following the Subsequent Placement Structuring Period the Company may contact
other investors or agents about a potential Subsequent Placement. Prior to entering into any Subsequent Placement with any Person
other than the Purchasers, the Company shall deliver to each Purchaser an irrevocable written notice (the “Offer Notice”)
of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities or Indebtedness being
offered (the “Offered Placement”) in a Subsequent Placement, which Offer Notice shall (w) offer to issue and
sell to or exchange with such Purchasers at least 55% of the Offered Placement (the “Purchaser Amount”), in
each instance allocated among such Purchasers as indicated by the Purchasers, (x) identify and describe the Offered Placement,
(y) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the securities
or Indebtedness comprising the Offered Placement to be issued, sold or exchanged and (z) identify the persons or entities (if
known) to which or with which the securities or Indebtedness comprising the Offered Placement are to be offered, issued, sold
or exchanged (the “Basic Amount”).

(iii)            
To accept an Offer, whether of the entirety of the Purchaser Amount or a portion thereof, such Purchaser must deliver
a written notice to the Company prior to the end of the tenth (10th) Business Day after such Purchaser’s receipt
of the Offer Notice (the “Offer Period”), setting forth the portion of such Purchaser’s Purchaser Amount,
which may be all or any portion of such Purchaser’s Purchaser Amount, that such Purchaser elects to purchase (the “Notice
of Acceptance”). Notwithstanding anything to the contrary contained herein, if the Company desires to modify or amend
the terms and conditions of the Offer prior to the expiration of the Offer Period, the Company may deliver to the Purchasers a
new Offer Notice and the Offer Period shall expire on the tenth (10th) Business Day after such Purchaser’s receipt
of such new Offer Notice.

(iv)            
The Company shall have twenty (20) Business Days from the expiration of the Offer Period above to consummate the Subsequent
Placement with respect to all or any part of such Offered Placement as to which a Notice of Acceptance has not been given by the
Purchasers (the “Refused Placement”) pursuant to a definitive agreement (the “Subsequent Placement
Agreement”) but only upon terms and conditions (including, without limitation, unit prices and interest rates) that
are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer Notice.

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(v)              
In the event the Company shall propose to sell less than 80% of all the securities or Indebtedness comprising the Refused
Placement (any such sale to be in the manner and on the terms specified in Section 4.18(a)(iv) above), then prior to the end of
the fifth (5th) Business Day after such Purchaser’s receipt of written notice of the Company’s proposal
to sell such reduced amount of securities or Indebtedness comprising the Refused Placement, each Purchaser may, at its sole option
and in its sole discretion, reduce the number or amount of the securities or Indebtedness comprising the Offered Placement specified
in its Notice of Acceptance or revoke its Notice of Acceptance. In the event the Company shall propose to sell less than 100%
but 80% or more of all the securities or Indebtedness comprising the Refused Placement (any such sale to be in the manner and
on the terms specified in Section 4.18(a)(iv) above), then prior to the end of the fifth (5th) Business Day after such
Purchaser’s receipt of written notice of the Company’s proposal to sell such reduced amount of securities or Indebtedness
comprising the Refused Placement, each Purchaser may, at its sole option and in its sole discretion, proportionally reduce the
number or amount of the securities or Indebtedness comprising the Offered Placement specified in its Notice of Acceptance. In
the event that any Purchaser so elects to reduce the number or amount of securities or Indebtedness comprising the Offered Placement
specified in its Notice of Acceptance or revoke its Notice of Acceptance, the Company may not issue, sell or exchange more than
the reduced number or amount of the Offered Placement unless and until such securities have again been offered to the Purchasers
in accordance with Section 4.18(a)(ii) above.

(vi)            
Any securities or Indebtedness comprising the Offered Placement not acquired by the Purchasers or other Persons in accordance
with Section 4.18(a)(iv) above may not be issued, sold or exchanged until they are again offered to the Purchasers under the procedures
specified in this Agreement.

(vii)          
The purchase by the Purchasers of any securities or Indebtedness comprising the Offered Placement is subject in all cases
to the preparation, execution and delivery by the Company and the Purchasers of a purchase agreement relating to such Offered
Placement reasonably satisfactory in form and substance to the Purchasers and their respective counsel. The Company and the Purchasers
agree that if any Purchaser elects to participate in the Offer, neither the Subsequent Placement Agreement with respect to such
Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”)
shall include any term or provisions whereby any Purchaser shall be required to agree to any restrictions in trading as to any
securities of the Company owned by such Purchaser prior to such Subsequent Placement.

(viii)        
Notwithstanding anything to the contrary in this Section 4.18 and unless otherwise agreed to by the Purchasers, the Company
shall either confirm in writing to the Purchasers that the transaction with respect to the proposed Subsequent Placement has been
abandoned or shall publicly disclose its intention to consummate the transactions contemplated by the proposed Subsequent Placement,
in either case in a manner such that the Purchasers will not be in possession of material non-public information, by the twentieth
(20th) Business Day following delivery of any Subsequent Placement Notice or Offer Notice. If by the twentieth (20th)
Business Day following delivery of any Subsequent Placement Notice or an Offer Notice no public disclosure regarding a transaction
with respect to the proposed Subsequent Placement has been made, and no notice regarding the abandonment of such transaction has
been received by the Purchasers, such transaction shall be deemed to have been abandoned and the Purchasers shall not be deemed
to be in possession of any material, non-public information with respect to the Company. Should the Company decide to pursue such
transaction with respect to the proposed Subsequent Placement, the Company shall provide each Purchaser with another Subsequent
Placement Notice and, if applicable, another Offer Notice and each Purchaser will again have the right of participation set forth
in this Section 4.18(a). The Company shall not be permitted to deliver more than one Subsequent Placement Notice or Offer Notice
to the Purchasers in any forty (40) Business Day period.

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(b) The
restrictions contained in this Section 4.18 shall not apply in connection with the issuance of any Excluded Securities. Notwithstanding
anything to the contrary contained herein, all rights of any Purchaser set forth in this Section 4.18 shall be assignable at the
election of any Purchaser to one or more of any Purchaser’s Affiliates, but not otherwise. For purposes of clarification,
the provisions of this Section 4.18 are to apply to any Subsequent Placement, including multiple Subsequent Placements, whether
related or unrelated, during the period covered hereby.

4.19         
Fundamental Transactions. The Company covenants and agrees while
any Warrants are outstanding, it (i) will not permit (to the extent within its control), (ii) will take all necessary action to
prevent both the occurrence or consummation of (including, without limitation, adopting a poison pill or other similar anti-takeover
provision or method) and the requirement to make any payment or adjustment or issue any shares of Common Stock or other securities
with respect to, and (iii) will not be party to, any fundamental transaction, change of control or similar event, or an event
that with the passage of time could result in a fundamental transaction, change of control or similar event under any agreement
(including, without limitation, any employment agreement), outstanding security (including, without limitation, any option or
warrant to purchase Common Stock) or other instrument or make any announcement of any of the foregoing. In
furtherance of the foregoing and without limiting in any manner any other rights of the Purchasers or obligations of the Company
set forth in any of the Transaction Documents, in the event the Company learns of any third party attempting or seeking to take
action to cause a fundamental transaction, change of control or similar event (including, without limitation, through a tender
or exchange offer), or an event that with the passage of time could result in a fundamental transaction, change of control or
similar event (including, without limitation, through a tender or exchange offer) under any agreement (including, without limitation,
any employment agreement), outstanding security (including, without limitation, any option or warrant to purchase Common Stock)
or other instrument, that does not conform to the requirements of the Transaction Documents and that does not afford or grant
the Purchasers all of the rights and payments they would receive in a Company Controlled Fundamental Transaction (including, without
limitation, any payments they would receive if they were holders of the shares of Common Stock issuable upon exercise of the Warrants
(without regard to any limitation

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on
the exercise of the Warrants and as if the Increased Shares Amendment had been adopted and become effective)), subject to the
exercise by the Board of Directors of the Company of its fiduciary duties in accordance with applicable law, the Company covenants
and agrees to take all reasonable efforts to adopt a poison pill, and to the extent that any previously
adopted poison pill ceases to be effective, to re-adopt a poison pill, or any other anti-takeover provision or method necessary
to prevent such fundamental transaction, change of control or similar event (including, without limitation, through a tender or
exchange offer), or event that with the passage of time could result in a fundamental transaction, change of control or similar
event (including, without limitation, through a tender or exchange offer) under any agreement or other instrument, that does not
conform to the requirements of the Transaction Documents and that does not afford or grant the Purchasers all of the rights and
payments they would receive in a Company Controlled Fundamental Transaction (including, without limitation, any payments they
would receive if they were holders of the shares of Common Stock issuable upon exercise of the Warrants (without regard to any
limitation on the exercise of the Warrants and as if the Increased Shares Amendment had been adopted and become effective)).
In addition, in no event will the Company permit any Company Controlled Fundamental Transaction if after such Company Controlled
Fundamental Transaction any Series B Warrant will not be fully exercisable without limitation by reason of there being insufficient
authorized and reserved capital stock of any applicable Successor Entity or Successor Entities involved in such Company Controlled
Fundamental Transaction. The Company covenants and agrees while any Warrants are outstanding, that it will not permit, will take
all necessary action to prevent (including, without limitation, adopting a poison pill or other similar anti-takeover provision),
and will not be party to, any Fundamental Transaction unless the Company and each applicable acquirer or beneficial owner of securities
that is directly or indirectly party to or associated with any applicable Fundamental Transaction, including each Successor Entity
or Successor Entities, jointly and severally agrees (x) to the requirements and other provisions set forth in the Warrants, including,
without limitation, Section 3(d) thereto and all requirements to issue cash, securities (including, without limitation any options
or warrants to purchase Common Stock) or other assets thereunder, and (y) to treat each holder of the Warrants (each, a “Holder”)
in all respects no worse than as if such Holder was a holder of Warrant Shares and no worse (and, other than in connection with
a Company Controlled Fundamental Transaction (as defined in the Warrants), no better) than its treatment of any other holder of
shares of Common Stock. For purposes of clarification, the foregoing shall mean that no Fundamental Transaction shall occur or
be consummated unless (i) to the extent set forth in the Warrants, each Holder shall have the right to require the Company and/or
the Successor Entity and/or Successor Entities, jointly and severally, to deliver upon the occurrence or consummation, and it
shall be a required condition to such occurrence or consummation, of the Fundamental Transaction or at any time thereafter, in
satisfaction of the Warrants, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants
or other purchase or subscription rights and any shares of Common Stock) which each Holder would have been entitled to receive
upon the happening of such Fundamental Transaction or the record, eligibility or other determination date for the event 

    	39

    	 

    
resulting
in such Fundamental Transaction, had the Warrants been exercised in full (without regard to any limitations on exercise of the
Warrants and as if the Increased Shares Amendment had, as of such date, been adopted and become effective) with such Holder becoming
a holder of such shares of Common Stock issuable upon such exercise immediately prior to such Fundamental Transaction or the record,
eligibility or other determination date for the event resulting in such Fundamental Transaction; (ii) it is recognized that the
purpose of this Section 4.19 is to assure that in all circumstances of any Fundamental Transaction or similar corporate type transaction,
each Holder will have rights pursuant to the terms of the Warrants no worse (and, other than in connection with a Company Controlled
Fundamental Transaction, no better) in any way than or adversely affected relative to or in any manner not as advantageous (or,
other than in connection with a Company Controlled Fundamental Transaction, disadvantageous) as those of a holder of the number
of shares of Common Stock issuable upon exercise of the Warrants (without regard to any limitations on exercise of the Warrants
and as if the Increased Shares Amendment had, as of such date, been adopted and become effective) as if the Warrants had already
been exercised into Common Stock (without regard to any limitations on exercise of the Warrants and as if the Increased Shares
Amendment had, as of such date, been adopted and become effective) prior to such Fundamental Transaction or the record, eligibility
or other determination date for the event resulting in such Fundamental Transaction and shall not receive worse (or, other than
in connection with a Company Controlled Fundamental Transaction pursuant to the terms of the Warrants, better) treatment, be prejudiced
or adversely affected relative to (or treated in any manner not as advantageous or, other than in connection with a Company Controlled
Fundamental Transaction, disadvantageous) as the treatment afforded to any holders of shares of Common Stock in such Fundamental
Transaction or similar corporate type transaction by virtue of the fact that a Holder holds a Warrant rather than the shares of
Common Stock issuable upon exercise of the Warrant (without regard to any limitations on exercise of the Warrant and as if the
Increased Shares Amendment had, as of such date, been adopted and become effective); (iii) it is specifically intended that no
Person attempt to structure a transaction in any manner to circumvent the intent of this Section 4.19 and therefore the provisions
of this Section 4.19 shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this
Section 4.19 and pursuant to the terms of the Warrants to the extent necessary to correct this paragraph or any portion hereof
which may be defective or inconsistent with the intended treatment of each Holder, or to make changes or supplements necessary
or desirable to properly give effect to such treatment, as no worse (or, other than in connection with a Company Controlled Fundamental
Transaction, no better) in any way than or adversely effected relative to or in any manner not as advantageous (or, other than
in connection with a Company Controlled Fundamental Transaction, disadvantageous) as a holder of the number of shares of Common
Stock issuable upon exercise of the Warrants (without regard to any limitations on exercise of the Warrants and as if the Increased
Shares Amendment had, as of such date, been adopted and become effective) in any Fundamental Transaction or similar corporate
type transaction as herein contained; (iv) it is specifically intended, among other events and transactions, that any tender offer
or similar transaction made with respect to the Company or 50% or more of the Common Stock is deemed a Fundamental Transaction
under the Warrants; (v) it is acknowledged that notwithstanding any provision that may be interpreted to the contrary, as provided
in the Warrants each Holder has an express right to receive at least the same proportion and amount of cash, if any, per Warrant
Share (provided, that the foregoing shall in no way limit the rights of the Holder to get any Fundamental Transaction Warrant
Early Termination Price (as defined in the Warrants) entirely in cash) that each holder of a share of Common Stock is entitled
to receive from the Company or any Successor Entity or Successor Entities, upon any Fundamental Transaction (such as a cash merger
or cash tender offer) where cash comprises any portion of the applicable consideration or payment, that they would have been entitled
to receive had they exercised their SPA Warrants prior to the Fundamental 

    	40

    	 

    
Transaction or the record, eligibility or other determination
date for the event resulting in such Fundamental Transaction (without regard to any limitations on the exercise of this Warrant
and as if the Increased Shares Amendment had, as of such date, been adopted and become effective); (vi) it is acknowledged that
the provisions of this Section 4.19 may not be waived, modified or otherwise implemented otherwise than in strict conformity with
the intention hereof and shall apply to a successor holder of the Warrants and any Successor Entity or Successor Entities, and
(vii) notwithstanding any provision of this Agreement, the Warrants or any other agreement or contract that could in any way be
read to limit the right of any Holder to elect and receive at any time in perpetuity any payments pursuant to Section 5(a) of
the Warrants, no provision of this Agreement, the Warrants or any other agreement or contract shall limit the rights of any Holder
(including, without limitation, the right to receive any Redemption Price (as defined in the Warrants)) to receive at any time
in perpetuity any payments pursuant to Section 5(a) of the Warrants. The Purchasers shall be third party beneficiaries to any
agreements between the Company and any applicable Successor Entity in order to give effect to this Section 4.19.

4.20         
Subdivisions. So long as any Warrants are outstanding, the Company
shall not subdivide (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares or take any other action or otherwise allow the Exercise Price (as defined
in the Warrants) of the Warrants to be less than the par value of the Common Stock.

4.21         
Contrary Positions. The Company covenants and agrees not to take
any position contrary to (x) the representations set forth in Section 3.1(hh) and Section 3.1(jj), as if each such representation
was made on any date from and after the Closing Date assuming (i) the facts and circumstances that exist as of the Closing Date
are not materially changed by a Purchaser and (ii) with respect to the representation in clause (ii) of the first sentence of
Section 3.1(jj), the Purchaser Condition is satisfied or (y) any of its other representations set forth herein, as if each such
representation was made on the Closing Date, assuming the facts and circumstances that exist as of the Closing Date with respect
to such representations are not materially changed. The Company acknowledges and agrees that, with respect to Section 3.1(hh)
neither an exercise of any or all of the Warrants (assuming the exercise in full of the Warrants without regard to any limitations
on exercise of the Warrants and as if the Increased Shares Amendment had, as of the date hereof, been adopted and become effective)
nor any waiver of Section 2(d) of the Warrants in accordance with the terms thereof shall be deemed to be a material change in
the facts and circumstances that exist as of the Closing Date.

4.22         
No Stock Buy-Backs, Dividends or Purchase Rights. So long as any
Purchaser holds any of the Securities, the Company shall not redeem, repurchase or otherwise reduce the number of outstanding
shares of Common Stock. So long as the Purchasers in the aggregate beneficially own Common Stock or Common Stock Equivalents equal
to or convertible or exercisable, as the case may be, into at least 20% of the Company’s outstanding shares of Common Stock
(calculated as if the Warrants were exercised in full without regard to any limitations on exercise of the Warrants and as if
the Increase Shares Amendment has been adopted and become effective), the Company shall not, and the Company shall not permit
its Subsidiary to, directly or indirectly, (x) declare or make any dividend or other distributions of its assets (or rights to
acquire its assets) to any or all holders of its Common Stock, capital stock or Common Stock Equivalents, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options
by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
or (y) grant, issue or sell any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro
rata to the record holders of any class of its capital stock or Common Stock Equivalents.

    	41

    	 

    

4.23         
Existence of Liens. So long as the Purchasers in the aggregate beneficially
own Common Stock or Common Stock Equivalents equal to or convertible or exercisable, as the case may be, into at least 20% of
the Company’s outstanding shares of Common Stock (calculated as if the Warrants were exercised in full without regard to
any limitations on exercise of the Warrants and as if the Increase Shares Amendment has been adopted and become effective), the
Company shall not, and the Company shall not permit its Subsidiary to, directly or indirectly, allow or suffer to exist any Lien
other than Permitted Liens.

4.24         
Amendments and Future Agreements. So long as any Purchaser holds
any of the Warrants, the Company shall not (i) amend, waive, modify or terminate any provision of any outstanding securities (including,
without limitation, any warrants) or (ii) be party to any transaction, including any contract, agreement or other arrangement
or issue any security (including, without limitation, any option or warrant to purchase Common Stock) or other instrument with
a provision or term (including, without limitation, any fundamental transaction, change of control or similar event provision)
which in any way restricts the Company’s ability to issue, or is in any way triggered by, or could require the Company to
make any payment or adjustment or issue any shares of Common Stock or other securities as a result of, the Company’s issuance
of, any of the Securities to the Purchasers hereunder or under the Warrants.

ARTICLE V.

MISCELLANEOUS

5.1             
Survival. Other than as specifically set forth herein, this Agreement,
the representations and warranties contained herein and the obligations contained herein, including, without limitation, the covenants
and indemnification obligations contained herein, and other terms hereunder shall survive indefinitely.

5.2             
Fees and Expenses. At Closing, the Company shall reimburse the Purchasers
or their designee(s) for all reasonable costs and expenses up to $250,000, in the aggregate, incurred in connection with the transactions
contemplated by the Transaction Documents (including all reasonable legal fees and disbursements in connection therewith, documentation
and implementation of the transactions contemplated by the Transaction Documents and due diligence in connection therewith), which
amount may be withheld by each Purchaser from its Subscription Amount at the Closing. Except as expressly set forth in herein
and in the other Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties
levied in connection with the delivery of any Securities to the Purchasers.

    	42

    	 

    

5.3             
Entire Agreement. The Transaction Documents, together with the exhibits
and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and
supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

5.4             
Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of:
(a) the date of transmission, if such notice or communication is delivered via facsimile or email delivery at the facsimile number
or email address set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day,
(b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email delivery
at the facsimile number or email address set forth on the signature pages attached hereto on a day that is not a Trading Day or
later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

5.5             
Amendments; Waivers. No provision of this Agreement may be waived,
modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers
holding at least a majority in interest of the Securities then outstanding or, in the case of a waiver, by the party against whom
enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder
in any manner impair the exercise of any such right.

5.6             
Headings. The headings herein are for convenience only, do not constitute
a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

5.7             
Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any
rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger or otherwise by operation
of law). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or
transfers any Securities, provided that such transferee agrees in writing
to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers”.

5.8             
No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.9.

    	43

    	 

    

5.9             
Governing Law and Jurisdiction. All questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement
and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers,
stockholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in
the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents),
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law.

5.10         
Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart.
In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data
file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

5.11         
Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.
It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

5.12         
Replacement of Securities. If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution
for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument,
but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction, and, if requested
by the Company, the posting of a customary bond. The applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

    	44

    	 

    

5.13         
Remedies. In addition to being entitled to exercise all rights provided
herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance
under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred
by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any
action for specific performance of any such obligation the defense that a remedy at law would be adequate. The Company therefore
agrees that the Holders shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages and without posting a bond or other security. In the event that the Purchaser delivers a Fundamental
Transaction Early Termination Notice (as defined in the Warrants) pursuant to a Clause C Fundamental Transaction (as defined in
the Warrants) and the Company pays in full to the Purchaser, pursuant to and in accordance with the terms of Section 3(d) of the
Warrants, the related Fundamental Transaction Warrant Early Termination Price (as defined in the Warrants), the Purchaser shall
not be entitled to any other payment for damages hereunder with respect to such redeemed Warrants solely in connection with such
Clause C Fundamental Transaction.

5.14         
Independent Nature of Purchasers’ Obligations and Rights.
The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser,
and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser
under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser
pursuant hereof or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect
to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled, at its own
expense, to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement
or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review
and negotiation of the Transaction Documents.

5.15         
Saturdays, Sundays, Holidays, etc. If the last or appointed day
for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such
action may be taken or such right may be exercised on the next succeeding Business Day.

5.16         
Construction. The parties agree that each of them and/or their respective
counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction
to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of
the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common
Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

    	45

    	 

    

WAIVER OF JURY
TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY
ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE
LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature
Pages Follow)

    	46

    	 

    

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	 PALATIN TECHNOLOGIES, INC. 	 
	 	 	 
	 By:	 /s/ Stephen T. Wills	 
	 	 Name: 	Stephen T. Wills	 
	 	 Title: 	Executive Vice President, Chief Financial Officer and Chief Operating Officer	 

 

Address for Notice:

 

Palatin Technologies, Inc.

4-B Cedar Brook Drive

Cedar Brook Corporate Center

Cranbury, NJ 08512

Attention: Stephen A. Slusher, Chief Legal Officer

Facsimile number: (609) 495-2202

Electronic mail: sslusher@palatin.com

 

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

 

Faith L. Charles, Esq.

Thompson Hine LLP

335 Madison Avenue

12th Floor

New York, NY 10017

Facsimile number: (212) 344-6101

Electronic mail: Faith.Charles@thompsonhine.com

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	47

    	 

    

 

 [PURCHASER SIGNATURE PAGES TO PTN SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

Name of Purchaser: QVT FUND
IV LP, by its general partner QVT Associates GP LLC

Signature of Authorized Signatory
of Purchaser: /s/ Tracy Fu

Name
                                     of Authorized Signatory: Tracy Fu

Title of Authorized Signatory: Managing
Member

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: ______________________________________

Address for Notice to Purchaser:

QVT Fund IV LP

c/o QVT Financial LP

1177 Avenue of the Americas, 9th Floor

New York, New York 10036

Attention: General Counsel

Email: legalnotices@qvt.com

 

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

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer Klein, Esq.

Facsimile number: (212) 593-5955

Electronic mail: eleazer.klein@srz.com

 

Address for Delivery of Securities to Purchaser (if not same as
address for notice):

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer Klein, Esq.

Facsimile number: (212) 593-5955

Electronic mail: eleazer.klein@srz.com

 

Subscription Amount: $4,532,500.00

501,360  Shares,

Series A Warrants to purchase 4,140,866 shares of Common Stock,
and

Series B Warrants to purchase 4,593,971 shares of Common Stock

 

EIN Number: [PROVIDED UNDER SEPARATE COVER]

 

    	48

    	 

    

 

[PURCHASER SIGNATURE PAGES TO PTN SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

Name of Purchaser: QUINTESSENCE
FUND L.P., by its general partner QVT Associates GP LLC

Signature of Authorized Signatory
of Purchaser: /s/ Tracy Fu

Name of Authorized Signatory: Tracy
Fu

Title of Authorized Signatory: Managing
Member

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: ______________________________________

Address for Notice to Purchaser:

QVT Fund IV LP

c/o QVT Financial LP

1177 Avenue of the Americas, 9th Floor

New York, New York 10036

Attention: General Counsel

Email: legalnotices@qvt.com

 

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

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer Klein, Esq.

Facsimile number: (212) 593-5955

Electronic mail: eleazer.klein@srz.com

 

Address for Delivery of Securities to Purchaser (if not same as
address for notice):

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer Klein, Esq.

Facsimile number: (212) 593-5955

Electronic mail: eleazer.klein@srz.com

 

Subscription Amount: $3,927,000.00

434,628  Shares,

Series A Warrants to purchase 3,589,710 shares of Common Stock,
and

Series B Warrants to purchase 3,982,506 shares of Common Stock

 

EIN Number: [PROVIDED UNDER SEPARATE COVER]

 

    	49

    	 

    

 

[PURCHASER SIGNATURE PAGES TO PTN SECURITIES
PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

Name of Purchaser: QVT
FUND V LP, by its general partner QVT Associates GP LLC

Signature of Authorized Signatory of
Purchaser: /s/ Tracy Fu_

Name of Authorized Signatory: Tracy
Fu

Title of Authorized Signatory: Managing
Member

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: ______________________________________

Address for Notice to Purchaser:

QVT Fund IV LP

c/o QVT Financial LP

1177 Avenue of the Americas, 9th Floor

New York, New York 10036

Attention: General Counsel

Email: legalnotices@qvt.com

 

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

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer Klein, Esq.

Facsimile number: (212) 593-5955

Electronic mail: eleazer.klein@srz.com

 

Address for Delivery of Securities to Purchaser (if not same as
address for notice):

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention: Eleazer Klein, Esq.

Facsimile number: (212) 593-5955

Electronic mail: eleazer.klein@srz.com

 

Subscription Amount: $26,540,500.00

2,937,012  Shares,

Series A Warrants to purchase 24,257,575 shares of Common Stock,
and

Series B Warrants to purchase 26,911,903 shares of Common Stock

 

EIN Number: [PROVIDED UNDER SEPARATE COVER]

50

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