Document:

Exhibit 10.1

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY
AGREEMENT (this “Agreement”) dated as of December 31, 2013 (the “Effective Date”) between
SILICON VALLEY BANK, a California corporation (“Bank”), and GSV CAPITAL CORP., a Maryland corporation
(“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties
agree as follows:

 

1            ACCOUNTING
AND OTHER TERMS

 

Accounting terms not
defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized
terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this
Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.

 

2            LOAN
AND TERMS OF PAYMENT; FEES; TERMINATION

 

2.1         Promise
to Pay. Borrower promises to pay Bank the unpaid principal amount of all Credit Extensions and interest on the unpaid principal
amount of the Credit Extensions as and when due in accordance with this Agreement.

 

2.2         Revolving
Advances. 

 

(a)          Availability.
Subject to the terms of this Agreement, Bank will make Advances not exceeding the lesser of the Revolving Line or the Borrowing
Base. Amounts borrowed under this Section may be repaid from time to time and, prior to the Maturity Date, reborrowed from time
to time during the term of this Agreement subject to the applicable terms herein.

 

(b)          Repayment.
The Revolving Line terminates on the Maturity Date, on which date all Advances shall be immediately payable.

 

(c)          Prepayment.
Subject to Section 2.5(b), if applicable, Borrower may prepay the Advances at any time without fee or penalty, provided that Borrower
shall pay all accrued but unpaid interest on such Advance with such prepayment.

 

2.3         Overadvances.
If Borrower’s Obligations under Section 2.2 exceed the lesser of either the Revolving Line or the Borrowing Base,
Borrower shall immediately pay Bank the excess. If Borrower fails to comply with this Section, in addition to being an Event of
Default under Section 8.2(a), (i) the existing Advances shall accrue interest on the outstanding principal balance at a per annum
rate equal to the greater of (A) eight and three quarters of one percentage point (8.75%) above the Prime Rate or (B) twelve percent
(12.0%) until such time as the overadvance is cured, and (ii) Borrower shall escrow its cumulative Management Fees at an account
with Bank with a designation that Bank shall be the beneficiary of such amounts deposited until such time as Borrower complies
with the covenant.

 

2.4         Interest
Rate, Payments.

 

(a)          Interest
Rate. Accrued and unpaid interest due on the Credit Extensions is payable on the first day
of each month. Subject to Sections 2.3 and 6.6, Advances shall accrue interest on the outstanding principal balance at a per annum
rate equal to the greater of (i) four and three quarters of one percentage point (4.75%) above the Prime Rate or (ii) eight percent
(8.0%). Interest is computed on a 360 day year for the actual number of days elapsed. Upon the occurrence and during the continuation
of an Event of Default, Obligations accrue interest at five percent (5.00%) above the rate effective immediately before the Event
of Default and shall accrue from the initial date of such Event of Default until such Event of Default is waived, and shall be
payable upon demand. The interest rate increases or decreases when the Prime Rate changes. Payment or acceptance of the increased
interest rate provided in this Section 2.4(a) is not a permitted alternative to timely payment and shall not constitute a waiver
of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.

 

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(b)          Payments.
All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds
in U.S. Dollars, without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due. Payments received after 12:00
noon Pacific Time are considered received at the opening of business on the next Business Day. When a payment is due on a day that
is not a Business Day, the payment is due the next Business Day and additional fees or interest accrue.

 

(c)          Debit
of Accounts; Computation. Upon the occurrence and during the continuance of an Event of Default, Bank may debit, or cause to
be debited through exercise of control pursuant to the Account Control Agreement, as applicable, any of Borrower’s deposit
accounts including U.S. Bank National Association Account Number for principal and interest payments owing or any amounts Borrower
owes Bank under this Agreement. These debits are not a set-off. Bank will promptly notify Borrower when it debits Borrower's accounts.
Interest is computed on a 360 day year for the actual number of days elapsed.

 

2.5         Fees.
 Borrower will pay Bank:

 

(a)          Facility
Fee. A fully earned, non-refundable facility fee equal to (i) $180,000 on the Effective Date and (ii) $180,000 on each anniversary
of the Effective Date;

 

(b)          Early
Termination Fee. Upon termination of this Agreement pursuant to Section 2.6, in addition to the payment of any other amounts
then-owing, a termination fee in an amount equal to (i) $90,000, if this Agreement is terminated at any time on or before the first
anniversary of the Closing Date; (ii) $45,000, if this Agreement is terminated at any time after the first anniversary of the Closing
Date through the day before the second anniversary of the Closing Date; or (iii) $22,500, if this Agreement is terminated at any
time on or after the second anniversary of the Closing Date; and

 

(c)          Bank
Expenses. All Bank Expenses that are incurred through and after the date of this Agreement, and such Bank Expenses are payable
when due.

 

2.6         Termination.
 Borrower may terminate this Agreement for any reason and at any time prior to the Maturity Date upon five (5) Business Days
prior written notice to Bank, and such termination shall be effective upon the date specified in such termination notice so long
as all amounts due to Bank pursuant to this Agreement shall be paid to Bank on or before the effective date, at which time Bank
shall not have any further obligation to extend credit to Borrower.

 

3            PROCEDURES;
CONDITIONS OF LOANS

 

3.1         Procedures
for Borrowing. To obtain a Credit Extension, Borrower shall notify Bank by delivering to Bank the Loan Payment/Advance Request
Form attached as Exhibit B by facsimile or electronic mail in portable document format (PDF) by 12:00 noon Pacific Time on the
Business Day that the Credit Extension is to be made (each, a “Credit Extension Date”). Bank will credit the
Advances to Borrower's deposit account on the Credit Extension Date. Bank may make Credit Extensions under this Agreement based
on instructions from a Responsible Officer or his or her designee, provided that Borrower may not use the proceeds of any Credit
Extensions to repay amounts owing to Bank.

 

3.2         Conditions
Precedent to Initial Credit Extension.  Bank’s obligation to make the initial Credit Extension is subject to the condition
precedent that it receives, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as
Bank may reasonably deem necessary or appropriate, including, without limitation:

 

(a)          duly
executed original signatures to any Loan Documents entered into as of the Effective Date;

 

(b)          a
duly executed Corporate Borrowing Certificate;

 

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(c)          the
Schedule, together with any attachments thereto, completed by Borrower;

 

(d)          a
copy of the Organizational Documents of the Borrower;

 

(e)          a
good standing certificate of Borrower certified by the Secretary of State of the jurisdiction in which it is organized as of a
date no earlier than thirty (30) days prior to the Effective Date;

 

(f)          duly
executed original signatures to an account control agreement in form and substance acceptable to Bank; and

 

(g)          payment
of the fees and Bank Expenses then due as specified in Section 2.5 hereof.

 

3.3         Conditions
Precedent to all Credit Extensions.  Bank’s obligations to make each Credit Extension, including the initial Credit Extension,
is subject to the following:

 

(a)          timely
receipt of any Loan Payment/Advance Request Form in accordance with Section 3.1;

 

(b)          the
representations and warranties in this Agreement shall be true, accurate, and complete in all respects on the date of the Loan
Payment/Advance Request Form and on the funding date of each Credit Extension (in each case, except for those representations made
as of a specific date), and no Event of Default shall have occurred and be continuing or result from the Credit Extension Each
Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in this Agreement
remain true, accurate, and complete in all respects (in each case, except for those representations made as of a specific date);
and

 

(c)          Bank’s
obligation to lend the undisbursed portion of the Credit Extensions will terminate if, in Bank’s reasonable discretion, (i)
there has been a material adverse change in the general affairs, management, results of operations, financial or other condition
of Borrower, or the prospect of repayment of the Obligations or (ii) Borrower is competing with Bank in providing loans (other
than bridge financing in the ordinary course of business consistent with past practices) to Borrower’s Portfolio Companies
or a Subsidiary of Borrower either directly or indirectly.

 

4            CREATION
OF SECURITY INTEREST

 

4.1         Grant
of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations,
a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired
or arising, and all proceeds and products thereof. Borrower acknowledges that it previously has entered, and/or may in the future
enter, into Bank Services Agreements with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any
amounts Borrower owes Bank thereunder during the term of this Agreement shall be deemed to be Obligations hereunder and that it
is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security interest in the
Collateral granted herein during the term of this Agreement.

 

           Borrower agrees
that, unless otherwise agreed in a writing signed by Bank and Borrower, if, on the effective date of the termination of this Agreement,
there are (A) any outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount
equal to (i), if the letter of credit is denominated in U.S. Dollars, one hundred five percent (105%) of the face amount of all
such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in
its good faith business judgment) and (ii), if the letter of credit is denominated in Foreign Currency, one hundred ten percent
(110%) of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become
due in connection therewith (as estimated by Bank in its good faith business judgment), in each case, to secure all of the Obligations
relating to such Letters of Credit and (B) any obligations outstanding under any other Bank Service Agreements, then on such date
Borrower shall provide to Bank cash collateral in an amount reasonably satisfactory to Bank.

 

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4.2         Priority
of Security Interest. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at
all times continue to be a first priority perfected security interest in the Collateral, except to the extent otherwise provided
herein. If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower
of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank.

 

If this Agreement
is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations)
are repaid in full in cash. Promptly following the payment in full in cash of the Obligations and at such time as Bank’s
obligation to make Credit Extensions and this Agreement have terminated, Bank shall, at Borrower’s sole cost and expense,
execute and deliver such documents as are necessary to release its Liens in the Collateral and all rights therein shall revert
to Borrower or the person lawfully entitled thereto.

 

4.3         Authorization
to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with
all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition
of the Collateral, by Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code.

 

5            REPRESENTATIONS
AND WARRANTIES

 

Borrower represents
and warrants as follows:

 

5.1         Due
Organization and Authorization. Borrower is duly existing and in good standing in its jurisdiction of formation and qualified
and licensed to do business in, and in good standing in, any jurisdiction in which the conduct of its business or its ownership
of property requires that it be qualified, except where the failure to do so could not reasonably be expected to cause a Material
Adverse Change. Borrower has not changed its jurisdiction of formation or its organizational form or type or any organizational
number (if any) assigned by its jurisdiction of formation. The execution, delivery and performance of the Loan Documents entered
into as of the Effective Date and, for those entered into after the Effective Date, on such future date, have been duly authorized,
and do not conflict with Borrower's formation documents, nor constitute an event of default under any material agreement by which
Borrower is bound. Borrower has obtained any and all necessary consents to enter into this Agreement. Borrower is not in default
under any agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse
Change.

 

5.2         Collateral.
Borrower has good title to the Collateral, free of Liens except Permitted Liens.

 

5.3         Organizational
Documents. The Organizational Documents of Borrower given to the Bank as of the Effective Date are true and correct copies
of such documents and are in full force and effect. There are no restrictions in any such agreements on Borrower’s entering
into and performing its obligations under this Agreement.

 

5.4         Litigation.
Except as shown in the Schedule, there are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible
Officers, threatened by or against Borrower in which a likely adverse decision could reasonably be expected to cause a Material
Adverse Change.

 

5.5         No
Material Adverse Change in Financial Statements.  All financial statements for Borrower delivered to Bank fairly present in
all material respects Borrower's financial condition and Borrower's results of operations. There has not been any material deterioration
in Borrower’s financial condition since the date of the most recent financial statements submitted to Bank.

 

5.6         Solvency.
The fair salable value of Borrower's assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities;
the Borrower will not be left with unreasonably small capital after the transactions in this Agreement; and Borrower will be able
to pay its debts (including trade debts) as they mature.

 

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5.7         Investments.
Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments.

 

5.8         Regulatory
Compliance. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations
T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor
Standards Act. Borrower has not violated in any material respect any material laws, ordinances or rules. None of Borrower's properties
or assets has been used by Borrower or, to the best of Borrower's knowledge, by previous Persons, in disposing, producing, storing,
treating, or transporting any hazardous substance other than legally. Borrower has timely filed all required tax returns and paid,
or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under
GAAP. Borrower has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all
notices to, all government authorities that are necessary to continue its business as currently conducted.

 

5.9         Use
of Proceeds. Borrower shall use the proceeds of each Advance solely as follows: (a) to make Investments in Portfolio Companies,
(b) for working capital and general corporate purposes, including for the avoidance of doubt payment of dividends in accordance
with the terms of this Agreement, and (c) to pay costs and expenses required to be paid pursuant to this Agreement, in each case,
not in contravention of any applicable law and not in violation of this Agreement.

 

5.10       Full
Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement given
to Bank in connection with the negotiation of this Agreement and the other Loan Documents entered into as of the Effective Date
and, for those entered into after the Effective Date, on such future date, or delivered hereunder or thereunder (as modified or
supplemented by other information so furnished) when taken as a whole (and after giving effect to all updates, modifications and
supplements) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements
contained therein, in light of the circumstances under which they were made, not misleading, it being recognized by Bank that the
projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and
that actual results during the period or periods covered by such projections and forecasts may differ from the projected and forecasted
results.

 

5.11       Definition
of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s
knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or
awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers.

 

6            AFFIRMATIVE
COVENANTS

 

Borrower shall do all
of the following:

 

6.1         Government
Compliance. Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions
of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to
have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply,
in all material respects, with all laws, ordinances and regulations to which it is subject.

 

6.2         Financial
Statements, Reports, Certificates. Provide Bank with the following:

 

(a)          Quarterly
Valuation Report. As soon as available, but no later than forty-five (45) days after the last day of each calendar quarter,
a valuation report for each Portfolio Company in a form acceptable to Bank; provided, however, that the foregoing shall in no way
restrict or limit the authority and discretion of Borrower’s Board of Directors to determine the fair value of each Portfolio
Company;

 

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(b)          Quarterly
Compliance Certificate. With the delivery of the financial statements in Section 6.2(f), a duly completed Compliance Certificate,
in the form set forth in Exhibit C attached hereto, signed by a Responsible Officer, certifying that as of the end of such quarter,
Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing
compliance with the financial covenants set forth in this Agreement and such other information as Bank may reasonably request;

 

(c)          Borrowing
Base Certificate. Within forty-five (45) days after the last day of each quarter, a duly completed Borrowing Base Certificate,
in the form set forth in Exhibit B attached hereto, signed by a Responsible Officer and such other information as Bank may reasonably
request;

 

(d)          Annual
Operating Budget and Financial Projections. Within forty-five (45) days after the last day of each quarter, a rolling eight
(8) quarter liquidity forecast;

 

(e)          Loans
to Portfolio Borrowers. Within forty-five (45) days after the last day of each quarter, a report listing each loan made by
Borrower to a Portfolio Company, including term, interest rate, amount.

 

(f)           SEC
Filings. Within five (5) days of filing, copies of all periodic and other reports, proxy statements, and other materials, including
but not limited to audited annual financial statements and quarterly financial statements included in Borrower’s Form 10-K
and Form 10-Q, as applicable, filed by Borrower with the SEC, any Governmental Authority succeeding to any or all of the functions
of the SEC, or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required
to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date on which Borrower
posts such documents, or provides a link thereto, on Borrower’s website on the Internet at Borrower’s website address;
provided, however, Borrower shall promptly notify Bank in writing (which may be by electronic mail) of the posting of any such
documents;

 

(g)          Legal
Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries,
including without limitation any notices by the SEC or any Governmental Authority, that could result in damages or costs to Borrower
or any of its Subsidiaries of, individually or in the aggregate $100,000) or more, but only to the extent that Borrower is not
prohibited from disclosing such information; and

 

(h)          Other
Financial Information. Other financial information reasonably requested by Bank.

 

6.3         Insurance.
Keep its business insured for risks and in amounts as are customary for Borrower’s type of business.

 

6.4         Taxes.
Make timely payment of all material federal, state, and local taxes or assessments and will deliver to Bank, on demand, appropriate
certificates attesting to the payment.

 

6.5         Primary
Bank Accounts. Maintain its primary depository and operating account relationship with Bank, and cause GSV Asset Management,
LLC, in each case, within six (6) months of the Effective Date, to maintain its primary depository and operating account relationship
with Bank; provided, however, that Borrower and GSV Asset Management, LLC, may maintain other accounts, including custody accounts,
as each may deem appropriate or necessary in its reasonable discretion, including, for the avoidance of doubt, any custody account
with U.S. Bank National Association, provided if required by Bank, any accounts in the aggregate that exceed $50,000 shall be subject
to an account control agreement satisfactory to Bank.

 

6.6         Out
of Debt.  Borrower shall cause all Credit Extensions to be repaid, with no balance to be outstanding hereunder, for a period
of thirty (30) consecutive days per every twelve months; provided, if Borrower fails to satisfy the foregoing covenant, in addition
to being an Event of Default under Section 8.2(a), (i) Borrower shall pay to Bank within thirty (30) days, an amount equal to one
percent (1%) of the outstanding Obligations, (ii) outstanding Advances shall accrue interest on the outstanding principal balance
at a per annum rate equal to the greater of (A) eight and three quarters of one percentage point (8.75%) above the Prime Rate or
(B) twelve percent (12.0%) until Borrower is in compliance with this covenant, and (iii) Borrower shall escrow its cumulative Management
Fees at an account with Bank with a designation that Bank shall be the beneficiary of such amounts deposited until such time as
Borrower complies with the covenant.

 

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6.7         Minimum
Liquidity.  Maintain at all times a minimum aggregate of (a) cash at Bank of at least $2,500,000 plus (b) Marketable
Securities of at least the greater of (X) four (4) quarters of projected fees and expenses or (Y) $10,000,000.

 

6.8         Notification
of Liquidity Events and Distributions. Borrower will notify Bank (i) within ten (10)
days of all closed Liquidity Events for its Portfolio Companies that result in a realized loss of ten percent (10%) or greater
in the value of Borrower’s investment in such Portfolio Company and (ii) five (5) days prior to payment of any dividend.

 

6.9         Organizational
Documents. Operate in accordance with the terms of the Organizational Documents or as otherwise permitted in accordance with
Section 7.9 hereof.

 

6.10       Valuation
Reports. From the date hereof and continuing through the termination of this Agreement, Borrower shall permit SVB Analytics
to submit proposals to provide valuation services to Borrower, including with respect to the preparation of initial and quarterly
valuation reports for each new Portfolio Company; provided that, Borrower shall be under no obligation to retain SVB Analytics.

 

6.11       Litigation
Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without
expense to Bank, Borrower and its officers, employees and agents and Borrower's books and records, to the extent that Bank may
deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank relating
to Borrower.

 

6.12       Further
Assurances. Borrower will execute any further instruments and take further action as Bank reasonably requests to perfect or
continue Bank's security interest in the Collateral or to effect the purposes of this Agreement.

 

7            NEGATIVE
COVENANTS

 

Borrower shall not
do any of the following:

 

7.1         Dispositions.
Convey, sell, lease, transfer or otherwise dispose of all or substantially all of its business or property outside the ordinary
course of business of Borrower.

 

7.2         Changes
in Business, Change in Adviser, Dissolution. (a) Engage in any business other than the businesses set forth in Borrower’s
Investment Policies or businesses reasonably related thereto; (b) cease to have GSV Asset Management, LLC, serve as Borrower’s
investment adviser without the prior consent of Bank; (c) if a Fundamental Change (as defined under the 2013 Convertible Notes
Indenture) occurs or (d) dissolve, or permit any circumstance to occur that permits any Person to seek the dissolution of Borrower.

 

7.3         Mergers
or Acquisitions. Merge or consolidate with or into any other Person, unless Borrower is the continuing or surviving entity
in such a transaction.

 

7.4         Indebtedness.
(a) Create, incur, assume, or be liable for any Indebtedness, other than Permitted Indebtedness not to exceed fifty percent (50%)
of Borrower’s then-applicable Net Asset Value or (b) permit any Subsidiary to create, incur, assume, or be liable for any
Indebtedness.

 

7.5         Encumbrance.
Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, or permit any
of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security
interest granted herein, except for Borrower’s assets pledged to secure the Secured Obligations in connection with the 2013
Convertible Notes Indebtedness or any assets pledged under substantially similar terms to secure Additional Convertible Notes Indebtedness.

 

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7.6         Investments.
Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments.

 

7.7         Distributions.
Pay any dividends or make any distribution or payment to its shareholders except pursuant to and in accordance with the Organizational
Documents of Borrower in the ordinary course of business at any time that an Event of Default has not occurred or would not exist
after giving effect to such dividend, distribution or payment. Notwithstanding the preceding sentence, Borrower may declare, pay
or make any distribution or dividend necessary to qualify or to maintain its qualification as a regulated investment company (as
defined under Section 851 of the Internal Revenue Code) or to avoid the imposition of a federal excise tax on undistributed earnings
under Section 4982 of the Internal Revenue Code.

 

7.8         Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower
except (i) for transactions that are in the ordinary course of Borrower's business, upon fair and reasonable terms that are no
less favorable to Borrower than would be obtained in an arm's length transaction with a nonaffiliated Person and (ii) for transactions
provided in the Investment Advisory Agreement and the Administration Agreement.

 

7.9         Organizational
Documents. Permit any provision in the Organizational Documents of Borrower to be amended or waived in a manner adverse to
Bank.

 

7.10       Compliance.
Undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of
the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to (a)
meet the minimum funding requirements of ERISA, (b) prevent a Reportable Event or Prohibited Transaction, as defined in ERISA,
from occurring, or (c) comply with the Federal Fair Labor Standards Act, the failure of any of the conditions described in
clauses (a) through (c) which could reasonably be expected to have a Material Adverse Change as provided for under Section 8.3(a);
or violate any other law or regulation, if the violation could reasonably be expected to have a Material Adverse Change as provided
for under Section 8.3(a), or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation
in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension,
profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including
any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 

8            EVENTS
OF DEFAULT

 

Any one of the following
is an Event of Default:

 

8.1         Payment
Default.  If Borrower fails to pay any of the Obligations within 3 days after their due date (which 3 day cure period shall
not apply to payments due on the Maturity Date); During such cure period no Credit Extensions will be made;

 

8.2         Covenant
Default. 

 

(a)          If
Borrower fails to perform any obligation under Sections 2.3, 6.6, 6.7, 6.8 or violates any of the covenants contained in Section
7 of this Agreement,

 

(b)          If
Borrower fails to perform any obligation under Sections 6.2, 6.3, 6.4, 6.5 and as to any such default, has failed to cure the default
within ten (10) days after the occurrence thereof; or

 

(c)          Borrower
fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement
or other Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision,
condition, covenant or agreement that can be cured, has failed to cure the default within fifteen (15) days after the occurrence
thereof; provided, however, that if the default cannot by its nature be cured within the fifteen (15) day period or cannot after
diligent attempts by Borrower be cured within such fifteen (15) day period, and such default is likely to be cured within a reasonable
time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such
default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no
Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among other
things, to the covenants set forth in clause (a) above;

 

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8.3         Material
Adverse Change. If there (a) occurs a material adverse change in the business, operations, or condition (financial or otherwise)
of Borrower, or (b) is a material impairment of the prospect of repayment of any portion of the Obligations; or (c) is a material
impairment of the value or priority of Bank’s security interests in the Collateral (the foregoing being defined as a “Material
Adverse Change”);

 

8.4         Attachment.
If any material portion of Borrower's Collateral is attached, seized, levied on, or comes into possession of a trustee or receiver
and the attachment, seizure or levy is not removed in ten (10) days, or if Borrower is enjoined, restrained, or prevented by court
order from conducting a material part of its business or if a judgment or other claim becomes a Lien on a material portion of Borrower's
Collateral, or if a notice of lien, levy, or assessment is filed against any of Borrower's Collateral by any government agency
and not paid within ten (10) days after Borrower receives notice; provided, however, for clarity, this Section 8.4 shall not apply
to any of Borrower’s assets that are excluded from Collateral and pledged to secure the Secured Obligations in connection
with the 2013 Convertible Notes Indebtedness or any assets that are permitted to be subsequently excluded from Collateral and pledged
under substantially similar terms to secure Additional Convertible Notes Indebtedness. These are not Events of Default if stayed
or if a bond is posted pending contest by Borrower (but no Credit Extensions will be made during the cure period);

 

8.5         Insolvency.
If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or an Insolvency Proceeding is begun against Borrower
and not dismissed or stayed within 30 days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed);

 

8.6         Other
Agreements. There is, under any agreement to which Borrower is a party with a third party or parties, (a) any default resulting
in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount
individually or in the aggregate in excess of One Million Dollars ($1,000,000) (it being understood that none of: (w) the conversion
features under the 2013 Convertible Notes Indebtedness, the Additional Convertible Notes Indebtedness, or other convertible notes
issued by Borrower; (x) the triggering and/or settlement thereof or in respect of the repurchase of such notes at the option of
the holder, or (y) any cash payment made in respect thereof, shall constitute the acceleration of maturity for purposes of this
clause (a)); or (b) any breach or default by Borrower, the result of which could have a Material Adverse Change as provided
for under Section 8.3(a) herein;

 

8.7         Organizational
Documents. If any of the Organizational Documents of Borrower ceases to be in full force and effect;

 

8.8         Investment
Advisory Agreement. If the Investment Advisory Agreement ceases to be in full force and effect;

 

8.9         Judgments.
If a money judgment(s) in the aggregate of at least $500,000 in excess of applicable insurance coverage is rendered against
Borrower and is not satisfied, stayed, vacated, or discharged for 15 days (but no Credit Extensions will be made before the judgment
is stayed, satisfied, vacated, or discharged);

 

8.10       Governmental
Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not
renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing
with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority
taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification
or non-renewal (i) cause, or could reasonably be expected to cause, a Material Adverse Change, or (ii) adversely affects the legal
qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such
revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications
of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction; or

 

    	9

    	 

    

 

8.11       Misrepresentations.
If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in
any warranty or representation in this Agreement or in any writing delivered to Bank or to induce Bank to enter this Agreement
or any Loan Document.

 

9            BANK'S
RIGHTS AND REMEDIES

 

9.1         Rights
and Remedies. When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following:

 

(a)          declare
all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately
due and payable without any action by Bank);

 

(b)          stop
advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower
and Bank;

 

(c)          apply
to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit
or the account of Borrower;

 

(d)          Settle
or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that Bank considers advisable;
notify any Person owing Borrower money of Bank's security interest in the funds and verify the amount of the Account. Borrower
must collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received
from the account debtor, with proper endorsements for deposit;

 

(e)          for
any Letters of Credit, demand that Borrower (i) deposit cash with Bank in an amount equal to (y), if the letter of credit
is denominated in U.S. Dollars, 105% of the aggregate face amount of all Letters of Credit remaining undrawn (plus all interest,
fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)) and (z),
if the letter of credit is denominated in Foreign Currency, 110% of the Dollar Equivalent of the aggregate face amount of all Letters
of Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank
in its good faith business judgment)), in each case, to secure all of the Obligations relating to such Letters of Credit, as collateral
security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such
amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters
of Credit;

 

(f)           terminate
any FX Contracts;

 

(g)          Bank
may place a “hold” on any account maintained with Bank by Borrower only and deliver a notice of exclusive control,
any entitlement order, or other directions or instructions pursuant to any control agreement or similar agreements providing control
of any Collateral relating to such account;

 

(h)          Make
any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower
will assemble the Collateral if Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral
is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien on the
Collateral which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a
license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies;

 

(i)           Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral; and

 

(j)           Dispose
of the Collateral according to the Code.

 

    	10

    	 

    

 

9.2         Right
of Setoff; Deposit Accounts. Upon the occurrence and during the continuance of an Event of Default, Bank may at any time and
from time to time, (a) set off against, and to appropriate and apply to the payment of, the obligations and liabilities of the
Borrower under the Loan Documents (whether matured or unmatured, fixed or contingent or liquidated or unliquidated) any and all
amounts owing by Bank to Borrower (whether payable in U.S. Dollars or any other currency, whether matured or unmatured, and, in
the case of deposits, whether general or special, time or demand and however evidenced) and (b) pending any such action, the extent
necessary, to hold such amounts as collateral to secure such obligations and liabilities and to return as unpaid for insufficient
funds any and all checks and other items drawn against any deposits so held as Bank in its sole discretion may elect.

 

9.3         Power
of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and
during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or
security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c)
settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines
reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien,
charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise
take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the
Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary
to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event of Default
has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions
hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers,
coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation
to provide Credit Extensions terminates.

 

9.4         Bank
Expenses. Upon the occurrence and during the continuance of an Event of Default, (a) if Borrower fails to pay any amount or
furnish any required proof of payment to third persons, Bank may make all or part of the payment or obtain insurance policies required
in Section 6.4, and take any action under the policies Bank deems prudent and (b) any amounts paid by Bank are Bank Expenses and
immediately due and payable, bearing interest at the then applicable rate and secured by the Collateral. No such payments by Bank
are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default.

 

9.5         Bank's
Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral
in the possession or under the control of Bank, Bank is not liable for: (a) the safekeeping of the Collateral; (b) any loss or
damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman,
bailee, or other person. Except as provided above, Borrower bears all risk of loss, damage or destruction of the Collateral.

 

9.6         Payments
Collection. At any time after the occurrence and during the continuance of an Event of Default, Bank may notify any Person
owing funds to Borrower of Bank’s security interest in such funds and verify the amount so owing. Borrower shall collect
all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such payments
to Bank in their original form as received from the account debtor, with proper endorsements for deposit.

 

9.7         No
Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any provision
of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict
performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the party granting the
waiver and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies
under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by
law, or in equity. Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising
any other remedy under this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of Default
is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence.

 

9.8         Demand
Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment
at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees
held by Bank on which Borrower is liable.

 

    	11

    	 

    

 

10          NOTICES

 

All notices, consents,
requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing
and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3)
Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage
prepaid; (b) upon transmission, when sent by facsimile or electronic mail transmission; (c) one (1) Business Day after
deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger,
all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated
below. Bank or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written
notice thereof in accordance with the terms of this Section 10.

 

	If to Borrower	GSV CAPITAL CORP.
	 	2925 Woodside Road
	 	Woodside, CA 94062
	 	Attn:  Steve Bard
	 	E-mail:  sbard@gsvam.com
	 	 
	If to Bank	Silicon Valley Bank 
	 	3000 Sand Hill Road, Building 3, Suite 150
	 	Menlo Park, CA 94025
	 	Attn:  Frank Amoroso 
	 	Fax:  (650) 233-9031
	 	Email:  famoroso@svb.com

 

11          CHOICE
OF LAW; VENUE; JURY TRIAL WAIVER AND JUDICIAL REFERENCE

 

California law governs
the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed
to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral
or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits
and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any
objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents
to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service
of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints,
and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10 of this
Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof
or three (3) days after deposit in the U.S. mails, proper postage prepaid.

 

TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT
OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND
ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS
WAIVER WITH ITS COUNSEL.

 

    	12

    	 

    

 

WITHOUT INTENDING IN
ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right
to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between
them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot
agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code
of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction
of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction
of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code
of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional
relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and
appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall
be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been
appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California
Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before
a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall
be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings.
The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings in the
same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide
all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to
the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time
to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine
all issues relating to the applicability, interpretation, and enforceability of this paragraph.

 

12          GENERAL
PROVISIONS

 

12.1       Successors
and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may
not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted
or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to Borrower, to sell, transfer, assign,
negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under
this Agreement and the other Loan Documents to one or more Persons (a “Transferee”); provided, however, unless
an Event of Default has occurred, no such Transferee shall be a BDC or venture capital fund or a wholly-owned Subsidiary of a BDC
or venture capital fund.

 

12.2       Indemnification.
Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees, agents, attorneys, or any other Person
affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (i) all obligations, demands,
claims, and liabilities (collectively, “Claims”) claimed or asserted by any other party in connection with the transactions
contemplated by the Loan Documents; and (ii) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or
paid by such Indemnified Person as a result of, following from, consequential to, or arising from transactions between Bank and
Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified
Person’s gross negligence or willful misconduct.

 

This Section 12.2 shall
survive until all statutes of limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have
run.

 

12.3       Time
of Essence. Time is of the essence for the performance of all obligations in this Agreement.

 

12.4       Severability
of Provisions.  Each provision of this Agreement is severable from every other provision in determining the enforceability
of any provision.

 

12.5       Amendments
in Writing, Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or termination of
any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth
in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing,
no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate
as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be
limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether
similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents
represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements,
understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents
merge into the Loan Documents.

 

    	13

    	 

    

 

12.6       Reserved.

 

12.7       Counterparts.
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, constitute one Agreement.

 

12.8       Electronic
Execution of Documents. The words “execution,” “signed,” “signature” and words of like
import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based
recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation,
any state law based on the Uniform Electronic Transactions Act.

 

12.9       Construction
of Agreement. The parties mutually acknowledge that they and their attorneys have participated in the preparation and negotiation
of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the
uncertainty to exist.

 

12.10    Survival.
All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated
pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their
terms, are to survive the termination of this Agreement) have been paid in full and satisfied. Without limiting the foregoing,
except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the
termination of all Bank Services Agreements. The obligation of Borrower in Section 12.2 to indemnify Bank shall survive until the
statute of limitations with respect to such claim or cause of action shall have run.

 

12.11    Confidentiality.
In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary
information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates,
together with Bank, collectively, “Bank Entities”); (b) to prospective transferees or purchasers of any interest in
the Credit Extensions (provided, however, Bank shall use commercially reasonable efforts to obtain any prospective transferee’s
or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d)
to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers
appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service
providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein. Confidential
information does not include information that is either: (i) in the public domain or in Bank’s possession when disclosed
to Bank, or becomes part of the public domain (other than as a result of its disclosure by Bank in violation of this Agreement)
after disclosure to Bank; or (ii) disclosed to Bank by a third party, if Bank does not know that the third party is prohibited
from disclosing the information. Bank Entities may use anonymous forms of confidential information for aggregate datasets, for
analyses or reporting, and for any other uses not expressly prohibited in writing by Borrower. The provisions of the immediately
preceding sentence shall survive termination of this Agreement.

 

12.12    Attorneys’
Fees, Costs and Expenses. In any action or proceeding between Borrower and Bank arising out of the Loan Documents, the prevailing
party will be entitled to recover its reasonable attorneys’ fees and other reasonable costs and expenses incurred, in addition
to any other relief to which it may be entitled.

 

13          DEFINITIONS

 

As used in the Loan
Documents, the word “shall” is mandatory, the word “may” is permissive, the word “or” is not
exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and
numbers denoting amounts that are set off in brackets are negative. As used in this Agreement, the following capitalized terms
have the following meanings:

 

    	14

    	 

    

 

“Account Control
Agreement” means that certain Account Control Agreement, dated as of December 31, 2013, by and among GSV Capital Corp.,
Silicon Valley Bank, and U.S. Bank National Association (as such may be amended, modified or supplemented from time to time in
accordance with the terms thereof and hereof).

 

“Account Debtor”
is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 

“Accounts”
are all existing and later arising accounts, contract rights, and other obligations owed Borrower in connection with its sale or
lease of goods (including licensing software and other technology) or provision of services, all credit insurance, guaranties,
other security and all merchandise returned or reclaimed by Borrower and Borrower's Books relating to any of the foregoing, as
such definition may be amended from time to time according to the Code.

 

“Additional
Convertible Notes Indebtedness” means Indebtedness incurred by Borrower pursuant to Section 2.10 of the 2013 Convertible
Notes Indenture whereby Borrower may reopen such indenture and issue additional convertible senior notes thereunder, as provided
for in the 2013 Convertible Notes Indenture, or a future issuance by Borrower of convertible notes on substantially similar terms
to the 2013 Convertible Notes Indebtedness.

 

“Administration
Agreement” means that that certain Administration Agreement, dated as of March 8, 2013, by and between Borrower and GSV
Capital Service Company, LLC, as administrator, as such agreement may be amended, modified or supplemented from time to time in
accordance with the terms thereof and hereof.

 

“Advance”
or “Advances” means an advance (or advances) under the Revolving Line.

 

“Affiliate”
of a Person is a Person that (a) that, directly or indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person, (b) who is a director, senior executive officer, partner, or manager (in the case
of a limited liability company) (i) of such Person, (ii) of any Subsidiary of such Person, or (iii) of any Person
described in clause (a) above with respect to such Person, or (c) which, directly or indirectly through one or more intermediaries,
is the beneficial or record owner (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended, as the same is
in effect on the date hereof) of five percent (5%) or more of any class of the outstanding voting equity interests, securities
or other equity or ownership interests of such Person. For purposes of this definition, the term “control” (and the
correlative terms, “controlled by” and “under common control with”) shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management or policies, whether through ownership of securities
or other interests, by contract or otherwise. Notwithstanding anything herein to the contrary, the term “Affiliate”
shall not include any Person that constitutes a Portfolio Company.

 

“Bank Expenses”
are all costs and expenses (including reasonable attorneys’ fees and expenses) incurred by Bank for preparing, amending,
negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection
with appeals or Insolvency Proceedings), subject to any applicable limitations provided in Sections 12.2 and 12.12.

 

“Bank Services”
are any products, credit services, and/or financial accommodations provided to Borrower during the term of this Agreement by Bank
or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation,
merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements,
and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto
(each, a “Bank Services Agreement”).

 

“BDC”
means a “business development company” under the Investment Company Act.

 

“Borrower’s
Books” are all of Borrower's books and records including ledgers, records regarding Borrower's assets or liabilities,
the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information.

 

    	15

    	 

    

 

“Borrowing
Base” means 20% of Net Asset Value.

 

“Borrowing
Resolutions” are, with respect to any Person, those resolutions substantially in the form attached hereto.

 

“Business
Day” is any day that is not a Saturday, Sunday or a day on which the Bank is closed.

 

“Code”
is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided,
that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently
in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided
further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority
of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a
jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted
and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection,
priority, or remedies and for purposes of definitions relating to such provisions.

 

“Collateral”
is the property described on Exhibit A, which excludes assets pledged by Borrower as Collateral (as defined in the Pledge and Escrow
Agreement) to secure the Secured Obligations under the Pledge and Escrow Agreement.

 

“Contingent
Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any
indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed,
endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable;
(b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest
rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated
to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation”
does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined
amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated
liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the
guarantee or other support arrangement.

 

“Credit Extension”
is each Advance or any other extension of credit by Bank for Borrower’s benefit.

 

“Dollars,”
“dollars” or use of the sign “$” means only lawful money of the United States and not any other currency,
regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful
money of the United States.

 

“Dollar Equivalent”
is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated
in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing
rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign
Currency.

 

“Effective
Date” is defined in the preamble to this Agreement.

 

“Equipment”
is all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments
in which Borrower has any interest.

 

“ERISA”
is the Employment Retirement Income Security Act of 1974, and its regulations.

 

“Foreign Currency”
means lawful money of a country other than the United States.

 

“FX Contract”
is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank
a specific amount of Foreign Currency on a specified date.

 

    	16

    	 

    

 

“GAAP”
is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession,
which are applicable to the circumstances as of the date of determination.

 

“Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration,
filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 

“Governmental
Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization.

 

“Indebtedness”
is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations
for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital
lease obligations and (d) Contingent Obligations.

 

“Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or
a proceeding seeking reorganization, arrangement, or other relief.

 

“Internal
Revenue Code” shall mean the Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated thereunder.

 

“Investment”
is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

 

“Investment
Advisory Agreement” means that certain Investment Advisory Agreement, dated as of March 8, 2013, by and between Borrower
and GSV Asset Management, LLC, as adviser, as such agreement may be amended, modified or supplemented from time to time in accordance
with the terms thereof and hereof.

 

“Investment
Company Act” means the Investment Company Act of 1940, as amended from time to time.

 

“Investment
Policies” means the investment objectives, policies, restrictions and limitations set forth in the Registration Statement
on Form N-2 as filed with the SEC in September 2013 including any amendments, changes, supplements or modifications to such investment
objectives, policies, restrictions and limitations; provided that any amendment, change, supplement or modification thereto that
(a) is, or could reasonably be expected to be, materially adverse to Bank and (b) was effected without the prior written consent
of Bank shall be deemed excluded from the definition of “Investment Policies” for purposes of this Agreement.

 

“Letter of
Credit” is a standby or commercial letter of credit issued by Bank upon request of a Borrower based upon an application,
guarantee, indemnity, or similar agreement.

 

“Lien”
is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 

“Liquidity
Event” means the receipt by Borrower of the proceeds from the sale or other disposition of the securities of any Portfolio
Company, including in connection with any merger or acquisition or initial public offering involving any Portfolio Company and
including proceeds received directly from a purchaser or indirectly through an escrow or agent.

 

“Loan Documents”
are, collectively, this Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed
by Borrower, and any other present or future agreement by Borrower with or for the benefit of Bank in connection with this Agreement
or Bank Services, all as amended, restated, or otherwise modified.

 

    	17

    	 

    

 

“Management
Fees” is any fees due or to become due to GSV Asset Management, LLC for the provision of services to Borrower under the
Investment Advisory Agreement.

 

“Marketable
Securities” means one hundred percent (100%) of unrestricted publicly traded stock plus eighty percent (80%) of publicly
traded stock subject to any trading restrictions.

 

“Material
Adverse Change” is defined in Section 8.3.

 

“Maturity
Date” is December 31, 2016.

 

“Net Asset
Value” means Borrower’s net asset value determined on a quarterly basis and
set forth in Borrower’s current quarterly report on Form 10-Q or annual report on Form 10-K, as applicable.

 

“Obligations”
are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses, and other amounts Borrower owes
Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, any interest
accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance
of Borrower’s duties under the Loan Documents.

 

“Organizational
Documents” means, for any entity, certified true copies of its constituent or organizational documents, including: (a)
in the case of any partnership, trust or other form of business entity, the partnership or other applicable agreement of formation
and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation with the secretary
of state or other department in the state of its formation, in each case, as the same may be amended, restated, amended and restated,
supplemented or otherwise modified from time to time; (b) in the case of any limited liability company, the articles or certificate
of formation and its operating agreement or limited liability company agreement, as the same may be amended, restated, amended
and restated, supplemented or otherwise modified from time to time; and (c) in the case of a corporation, the certificate and articles
of incorporation and its bylaws, as the same may be amended, restated, amended and restated, supplemented or otherwise modified
from time to time.

 

“Other Permitted
Indebtedness” means (a) accrued expenses and current trade accounts payable incurred in the ordinary course of the
Borrower’s business which are not overdue for a period of more than 90 days or which are being contested in good faith by
appropriate proceedings, (b) Indebtedness (other than Indebtedness for borrowed money) arising in connection with transactions
in the ordinary course of the Borrower’s business in connection with its purchasing of securities, derivatives transactions,
reverse repurchase agreements or dollar rolls to the extent such transactions are permitted under the Investment Company Act and
the Borrower’s Investment Policies, provided that such Indebtedness does not arise in connection with the purchase of Investments
other than Cash Equivalents and U.S. Government Securities and (c) Indebtedness in respect of judgments or awards that have
been in force for less than the applicable period for taking an appeal so long as such judgments or awards do not constitute an
Event of Default under Section 8.

 

“Permitted
Indebtedness” is:

 

		(a)	Borrower’s indebtedness to Bank under this Agreement
or any other Loan Document;

 

		(b)	Indebtedness existing on the Effective Date and shown
on the Schedule;

 

		(c)	Subordinated Debt not to exceed $60,000,000;

 

		(d)	the 2013 Convertible Notes Indebtedness;

 

		(e)	Additional Convertible Notes Indebtedness;

 

    	18

    	 

    

 

		(f)	Unsecured Longer-Term Indebtedness so long as no Default
exists at the time of the incurrence thereof;

 

		(g)	repurchase obligations arising in the ordinary course of business with respect to U.S. Government
Securities;

 

		(h)	obligations payable to clearing agencies, brokers or
dealers in connection with the purchase or sale of securities in the ordinary course of business; and

 

		(i)	Other Permitted Indebtedness.

 

“Permitted
Investments” are:

 

		(a)	Investments shown on the Schedule and existing on the
Effective Date; and

 

(b)          (i) marketable
direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year
from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating
from either Standard & Poor's Corporation or Moody's Investors Service, Inc., and (iii) Bank’s certificates
of deposit issued maturing no more than 1 year after issue; and

 

(c)          Investments
made in accordance with the Borrower’s Investment Policies.

 

“Permitted
Liens” are:

 

(a)          Liens
existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents;

 

(b)          Liens
for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good
faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed
or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder;

 

(c)          purchase
money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more
than $250,000 in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the
property and improvements and the proceeds of the Equipment;

 

(d)          Liens
created by and pursuant to the 2013 Convertible Notes Indenture and the Pledge and Escrow Agreement, including with respect to
both the 2013 Convertible Notes Indebtedness and the Additional Convertible Notes Indebtedness;

 

(e)          Liens
of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business
so long as such Liens attach only to Inventory and which are not delinquent or remain payable without penalty or which are being
contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of
the property subject thereto;

 

(f)          Liens
to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations
incurred in the ordinary course of business (other than Liens imposed by ERISA); and

 

(g)           Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but
any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount
of the indebtedness may not increase

 

“Person”
is any individual, sole proprietorship, partnership, limited liability company, joint venture, company association, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government
agency.

 

    	19

    	 

    

 

“Pledge and
Escrow Agreement” means that certain Pledge and Escrow Agreement, dated as of September 17, 2013, by and among GSV Capital
Corp., as pledgor, U.S. Bank National Association, as trustee, and U.S. Bank National Association, as securities intermediary and
escrow agent (as such may be amended, modified or supplemented from time to time in accordance with the terms thereof and hereof),
which agreement was entered into with respect to the 2013 Convertible Notes Indebtedness and was filed with the SEC on September
18, 2013, as part of Borrower’s Current Report on Form 8-K.

 

“Portfolio
Company” means Persons in which Borrower has made and retains direct Investments (not through a Subsidiary) in accordance
with its Investment Policies.

 

“Prime Rate”
is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor
publication thereto as the “prime rate” then in effect; provided that if such rate of interest, as set forth from time
to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime
Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in
the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in
connection with extensions of credit to debtors).

 

“Responsible
Officer” is each of Persons listed on the Borrowing Certificate.

 

“Revolving
Line” is an aggregate principal amount equal to Eighteen Million Dollars ($18,000,000).

 

“Schedule”
is the attached schedule of exceptions.

 

“SEC”
means the Securities and Exchange Commission.

 

“Secured Obligations”
shall have the meaning given to it in the Pledge and Escrow Agreement.

 

“2013 Convertible
Notes Indebtedness” means Indebtedness of Borrower, incurred in September 2013, in an aggregate principal amount of Sixty
Nine Million Dollars ($69,000,000) with respect to Borrower’s issuance of 5.25% convertible senior notes due 2018 pursuant
to the 2013 Convertible Notes Indenture.

 

“2013 Convertible
Notes Indenture” means that certain indenture dated as of September 17, 2013, by and between Borrower and U.S. Bank National
Association with respect to Borrower’s 5.25% convertible senior notes due 2018, which indenture was filed with the SEC on
September 18, 2013, as part of Borrower’s Current Report on Form 8-K.

 

“Subordinated
Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter indebtedness to Bank
(pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into
between Bank and the other creditor), on terms acceptable to Bank.

 

“Subsidiary”
is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership
interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of
the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership
or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or
more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall
be a reference to a Subsidiary of Borrower.

 

“U.S. Government
Securities” means securities that are direct obligations of, and obligations the timely payment of principal and interest
on which is fully guaranteed by, the United States or any agency or instrumentality of the United States the obligations of which
are backed by the full faith and credit of the United States and in the form of conventional bills, bonds, and notes.

 

    	20

    	 

    

 

“Unsecured
Longer-Term Indebtedness” means any Indebtedness of Borrower that (a) has no amortization prior to, and a final maturity
date not earlier than, six months after the Maturity Date (after giving effect to any extensions of the Maturity Date that have
been exercised at the time of incurrence of the Indebtedness but not giving effect to any extensions exercised after the incurrence
of such Indebtedness), (b) is incurred pursuant to documentation that is substantially comparable to market terms for substantially
similar debt of other similarly situated borrowers as determined by the Borrower in its reasonable judgment and (c) is not secured
by any assets of Borrower.

 

[SIGNATURE PAGE FOLLOWS.]

 

    	21

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed as of the Effective Date.

 

BORROWER:

 

GSV CAPITAL CORP.

 

	By:	 	 
	Name:	 	 
	Title:		 

 

BANK:

 

SILICON VALLEY BANK

 

	By:	 	 
	Name:	 	 
	Title:		 

 

    	 

    	 

    

 

EXHIBIT A

 

The Collateral
consists of all of Borrower’s right, title and interest in and to the following personal property:

 

All goods,
Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles, commercial tort claims, documents, instruments (including any promissory
notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or
not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and
financial assets, whether now owned or hereafter acquired, wherever located; and all Borrower’s Books relating to the foregoing,
and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories,
accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

 

Notwithstanding
the foregoing, the Collateral shall exclude Borrower’s assets pledged to secure the Secured Obligations (as defined in the
Pledge and Escrow Agreement) in connection with the 2013 Convertible Notes Indebtedness and the Additional Convertible Notes Indebtedness.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 EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS 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. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

SERIES A COMMON STOCK PURCHASE WARRANT

 

vycor
medical, inc.

	Warrant Shares: _______	 	Initial Exercise Date: January 2, 2014
	 	 	 

THIS SERIES A COMMON
STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the
“Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close
of business on the three (3) year anniversary of the Initial Exercise Date (the “Termination Date”) but not
thereafter, to subscribe for and purchase from Vycor Medical, Inc., a Delaware corporation (the “Company”),
up to ______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase
price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

Section 1.          Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated January 2, 2014, among the Company and the purchasers signatory thereto.

Section 2.          Exercise.

a)                 
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or
such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of
the Holder appearing on the books of the Company) of a duly executed facsimile or email copy of the Notice of Exercise in the form
annexed hereto and within one (1) Trading Day of the date said Notice of Exercise

1

  

is delivered
to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire
transfer utilizing the instructions attached hereto as Exhibit C, or, if available, pursuant to the cashless exercise procedure
specified in Section 2(c) below. Notwithstanding the foregoing, in no event shall the Company be obligated to deliver the Warrant
Shares prior to the payment in full of the aggregate Exercise Price. No ink-original Notice of Exercise shall be required, nor
shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the
Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice
of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number
of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder
in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of
Exercise within one (1) Business Day of receipt of such notice. 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
hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on
the face hereof.

b)                 
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $2.05, subject
to adjustment hereunder (the “Exercise Price”).

c)                 
Cashless Exercise. If at any time after the nine month anniversary of the later of (i) Initial Exercise Date or (ii)
Offering Termination Date, there is no effective Registration Statement registering, or no current prospectus available for, the
resale of the Warrant Shares by the Holder, then this Warrant may only be exercised, in whole or in part, at such time by means
of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

(A) = the VWAP
on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;

 

(B) = the Exercise
Price of this Warrant, as adjusted hereunder; and

 

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

 

2

  

Notwithstanding
anything herein to the contrary, on the Termination Date, if there is no effective Registration Statement registering, or no current
prospectus available for, the resale of the Warrant Shares by the Holder this Warrant shall be automatically exercised via cashless
exercise pursuant to this Section 2(c).

 

d)                 
Mechanics of Exercise.

		 	          i.           
Delivery of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit
or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A)
there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by
the Holder or (B) the shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule
144, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three
(3) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”).
The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall
be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with
payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder,
if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company fails for any reason
to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, provided that the
Holder has paid any required Exercise Price for the portion of this Warrant being exercised, the Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP
of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on
the tenth Trading Day after such liquidated damages begin to accrue) for each Trading Day after the Third Trading Day following
such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

		 	          ii.                    
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at
the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver
to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant.

  

3

  

		 	          iii.                 
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares
pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

		 	          iv.                 
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to an exercise on or before the Warrant Share Delivery Date, provided that the Holder has paid any required Exercise Price for
the portion of this Warrant being exercised, and if after such date the Holder is required by its broker to purchase (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 which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have
been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

		 	          v.                 
No Fractional Shares or Scrip. 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

  

4

  

shall, at its
election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Exercise Price or round up to the next whole share.

		 	          vi.                 
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue
or transfer tax or other incidental expense in respect of the issuance of Warrant Shares, all of which taxes and expenses shall
be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for
any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice
of Exercise.

		 	          vii.                 
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

e)                 
Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth
in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section

  

5

  

2(e) applies,
the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any
Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission
of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each
case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy
of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e),
in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common
Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may
be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent
setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company
shall within three Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. 
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 this Warrant, by the Holder or its Affiliates since the date as of which such number of
outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable
upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease
the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.
Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.
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(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

Section 3.          Certain
Adjustments.

a)                 
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent

  

6

  

securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

b)                 
Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, until the 12 month anniversary
of the Effective Date, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose
of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock
Equivalents, at an effective price per share less than the Exercise Price then in effect (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed
that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation of each Dilutive
Issuance the Exercise Price shall be reduced and only reduced to equal the Base Share Price and the number of Warrant Shares issuable
hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account the decrease in
the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustments shall be made, paid or
issued under this Section 3(b) in respect of an Exempt Issuance. The Company shall notify the Holder, in writing, no later than
the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject to this Section
3(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence of any Dilutive Issuance, the Holder is
entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers
to the Base Share Price in the Notice of Exercise. If the Company enters

  

7

  

into a Variable
Rate Transaction, despite the prohibition thereon in the Purchase Agreement, the Company shall be deemed to have issued Common
Stock or Common Stock Equivalents at the lowest possible conversion or exercise price at which such securities may be converted
or exercised.

c)                 
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above,
if at any time the Company grants, issues or sells any Common Stock Equivalents 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 hereof, including without limitation, the Beneficial Ownership Limitation)
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, to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

d)                 
Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders
of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or
warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(b)), then in
each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record
date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall
be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date
less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness or rights
or warrants so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good
faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences
of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made
whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

e)                 
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer,

  

8

  

conveyance or
other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted
by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the
Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another
Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock
(not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction,
at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares
of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon

  

9

  

exercise of
this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with
an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative
value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

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.

g)                 
Notice to Holder.

		 	          i.           
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

		 	          ii.           
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior

  

10

  

to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose
of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective
or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided
hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company
shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

Section 4.          Transfer
of Warrant.

a)                 
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) 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 a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and 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. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this
Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning
this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase
of Warrant Shares without having a new Warrant issued.

b)                 
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid
office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be

  

11

  

issued, signed
by the Holder or its agent or attorney. 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 be dated the Initial
Exercise Date 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 hereof from time to time. The Company may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

d)                 
Transfer Restrictions. If, at the time of the surrender of this Warrant in connection
with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration
statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume
or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition
of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section
5.7 of the Purchase Agreement.

e)                 
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring
this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and
not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act
or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

Section 5.          Miscellaneous.

a)                 
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly
set forth in Section 3.

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 (which, in
the case of the Warrant, shall not include the posting of any bond), 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.

  

12

  

c)                 
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.

d)                 
Authorized Shares.

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be
listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by
the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such
issue).

Except and to
the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, 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, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or

  

13

  

consents thereto,
as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

e)                 
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement.

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

g)                 
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
any of its rights, powers or remedies hereunder.

h)                 
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.

i)                   
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to
any liability of the 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.

j)                   
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.

k)                 
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations 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.

  

14

  

l)                   
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and the Holder.

m)               
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.

n)                 
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.

 

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

 

 

(Signature
Page Follows)

  

15

  

 

 

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.

 

	 	vycor
    medical, inc.
	 	 	 
	 	 	/s/ David Cantor
	 	By:	 
	 	 	Name: David Cantor
	 	 	Title: President

 

  

16

  

 

NOTICE OF EXERCISE

 

	To:	 	vycor
    medical, inc.
	FAX:	 	(561) 894-2265
	Email:	 	investorinfo@vycormedical.com

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any.

(2)  
Payment shall take the form of (check applicable box):

[ ] in lawful
money of the United States; or

[ ] if permitted,
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in subsection 2(c).

(3)  
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

	 	 
	 	 

 

The Warrant Shares shall be delivered to the
following DWAC Account Number:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

(4)  
Accredited Investor.
The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933,
as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: __________________________________________________

Name of Authorized Signatory: ____________________________________________________________________

Title of Authorized Signatory: _____________________________________________________________________

Date: _________________________________________________________________________________________

 

 

 

  

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

(To assign the
foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

	Name:	 
	 	(Please Print)
	Address:	 
	 	(Please Print)
	Dated: _______________ __, ______	 
	Holder’s Signature: ___________________________________________	 
	Holder’s Address: ____________________________________________	 

 

  

EXHIBIT
C

 

WIRE TRANSFER INSTRUCTIONS

 

For: Vycor Medical, Inc.

 

6401 Congress Ave, Ste 140

Boca Raton, FL 33487

 

Citibank, N.A.

Boca Via Mizner

Boca Raton, FL 33432

 

Swift: CitiUS33

ABA: 266086554

Account#: 9118592146

EIN#: 20-3369218

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]