Document:

Exhibit 10.13

 

INTELLECTUAL PROPERTY SECURITY AGREEMENT

 

THIS INTELLECTUAL PROPERTY
SECURITY AGREEMENT is made as of December 22, 2014 (this “IP Security Agreement”), by H LICENSING, LLC,
a Delaware limited liability company (“Grantor”), in favor of Bank
Hapoalim B.M. (“Bank”).

 

RECITALS

 

WHEREAS, the Grantor
will enter into credit facilities with the Bank, evidenced by the various loan documents (each, as amended and in effect from time
to time, a “Loan Document” and together, as amended and in effect from time to time, the “Loan Documents”),
including an additional separate and distinct credit facility with the Bank dated as of this date (as may be amended and in effect
from time to time, the “Credit Agreements”, which Credit Agreements shall constitute Loan Documents) with the
Bank pursuant to which the Bank, subject to the terms and conditions contained therein, is to make loans or otherwise to extend
credit to the Grantor; and

 

WHEREAS, it is a condition
precedent to the Bank’s making credit available to the Grantor under the Credit Agreements and to make any loans or otherwise
extend credit to the Grantor under the Loan Documents, that the Grantor execute and deliver to the Bank an intellectual property
security agreement in substantially the form hereof; and

 

WHEREAS, the Grantor
wishes to grant a security interest in favor of the Bank as herein provided.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound, Grantor hereby represents, warrants, covenants and agrees with Bank,
as follows:

 

1.           DEFINED
TERMS. When used in this IP Security Agreement the following terms shall have the following meanings (such meanings being equally
applicable to both the singular and plural forms of the terms defined):

 

1.1           “Collateral”
shall have the meaning assigned to such term in Section 2 of this IP Security Agreement.

 

1.2           “Commodity
Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor
statute.

 

1.3           “Copyright
License” means any written agreement in which Grantor now holds or hereafter acquires any right, title or interest, which
agreement grants any right in or to any Copyright or Copyright registration (whether Grantor is the licensee or the licensor thereunder)
including, without limitation, licenses pursuant to which Grantor has obtained the exclusive right to use a copyright owned by
a third party, a sublicense to use a copyright, a distribution agreement regarding copyrighted works and the right to prepare for
sale, sell or advertise for sale, all of the inventory now or hereafter owned by Grantor and now or hereafter covered by such license
agreements.

 

    	 

    	 

    

 

1.4           “Copyrights”
means all of the following in which Grantor now holds or hereafter acquires any right, title or interest: (a) all copyrights, whether
registered or unregistered, held or existing pursuant to the laws of the United States, any State thereof or any other country;
(b) registrations, applications and recordings in the United States Copyright Office or in any similar office or agency of the
United States, any State thereof or any other country; (c) any continuations, renewals or extensions of any copyright; (d) any
registrations to be issued in any pending applications; (e) any prior versions of works covered by copyright and all works based
upon, derived from or incorporating such works; (f) any original embodiments of a work that are necessary for the manufacture or
production of a copyrighted work including, without limitation, molds, master tapes, master film reels, master CDs, master DVDs,
master disks or other master magnetic or electronic media; (g) any income, royalties, damages, claims and payments now and hereafter
due and/or payable with respect to copyrights, including, without limitation, damages, claims and recoveries for past, present
or future infringement; (h) any rights to sue for past, present and future infringements of any copyright; and (i) any other rights
corresponding to any of the foregoing rights throughout the world.

 

1.5           “Event
of Default” means an event or circumstance defined as an “Event of Default” in any Loan Document, which entitles
the Bank to accelerate the payment of the Secured Obligations.

 

1.6           “Excluded
Swap Obligation” means, with respect to the Grantor, any Swap Obligation if, and to the extent that, all or a portion
of the grant by such Grantor of a security interest to secure such Swap Obligation (or any guaranty thereof) is or becomes illegal
under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application
or official interpretation of any thereof) by virtue of such Grantor’s failure for any reason to constitute an “eligible
contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the grant of such
security interest becomes effective with respect to such Swap Obligation (or guaranty thereof). If a Swap Obligation arises under
a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is
attributable to swaps for which such security interest is or becomes illegal.

 

1.7           “IM
Brands Guaranty” means the guaranty of the obligations of IM Brands, LLC to the Bank executed by Grantor in favor of
the Bank.

 

1.8           “JR
Licensing Guaranty” means the guaranty of the obligations of JR Licensing, LLC to the Bank executed by Grantor in favor
of the Bank.

 

1.9           “Letter
Agreement” means the line letter agreement, dated as of the date hereof and as may be amended, restated, supplemented
or otherwise modified from time to time, between the Grantor and the Bank.

 

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1.10         “License”
means any Copyright License, Patent License, Trademark License or other license of trade secrets now held or hereafter acquired
by Grantor.

 

1.11         “Lien”
means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 

1.12         “Litigation”
means any suits, actions, proceedings (administrative, judicial or in arbitration, mediation or alternative dispute resolution),
claims or counterclaims for infringement, misappropriation, or other violation of any of the Copyrights, Patents, Trademarks and/or
Licenses.

 

1.13         “Patent
License” means any written agreement in which Grantor now holds or hereafter acquires any right, title or interest, which
agreement grants any right with respect to any Patent (whether Grantor is the licensee or the licensor thereunder) including, without
limitation, licenses pursuant to which Grantor has obtained the exclusive right to use a patent owned by a third party, a sublicense
to use a patent, a distribution agreement regarding one or more patented products or processes and the right to prepare for sale,
sell or advertise for sale, all of the inventory now or hereafter owned by Grantor and now or hereafter covered by such license
agreements.

 

1.14         “Patents”
means all of the following in which Grantor now holds or hereafter acquires any right, title or interest: (a) all United States
or foreign patents (including, without limitation, utility, design and plant patents), all registrations and recordings thereof
and all applications for United States or foreign patents, including, without limitation, registrations, recordings and applications
in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or
any other country; (b) all reissues, divisions, continuations, renewals, continuations in part or extensions of any patent; (c)
all petty patents, divisionals and patents of addition; (d) all patents to issue in any such applications; (e) all means of manufacturing
patented products, including, without limitation, trade secrets, formulas, customer lists, manufacturing processes, mask works,
molds and prototypes, (f) any income, royalties, damages, claims and payments now and hereafter due and/or payable with respect
to patents, including, without limitation, damages, claims and recoveries for past, present or future infringement; and (g) any
rights to sue for past, present and future infringements of any patent.

 

1.15         “Secured
Obligations” means all of the indebtedness, obligations and liabilities of the Grantor to the Bank, individually or collectively,
whether direct or indirect, joint or several, absolute or contingent, due or to become due, now existing or hereafter arising under
or in respect of the IM Brands Guaranty, the JR Licensing Guaranty, any of the Loan Documents, any promissory notes or other instruments
or agreements executed and delivered pursuant thereto or in connection therewith, or pursuant to this IP Security Agreement,
provided that Secured Obligations shall in no event include Excluded Swap Obligations.

 

1.16         “Swap
Obligation” means, with respect to the Grantor, any obligation to pay or perform under any agreement, contract or transaction
that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

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1.17         “Trademark
License” means any written agreement in which Grantor now holds or hereafter acquires any right, title or interest, which
agreement grants any license right in and to any Trademark (whether Grantor is the licensee or the licensor thereunder) including,
without limitation, licenses pursuant to which Grantor has obtained the exclusive right to use a trademark owned by a third party,
a sublicense to use a trademark, a distribution agreement relating to goods or services covered by one or more trademarks and the
right to prepare for sale, sell or advertise for sale, all of the inventory now or hereafter owned by Grantor and now or hereafter
covered by such license agreements.

 

1.18         “Trademarks”
means any of the following in which Grantor now holds or hereafter acquires any right, title or interest: (a) any United States
or foreign trademarks, trade names, corporate names, company names, business names, trade styles, trade dress, service marks, logos,
other source or business identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or acquired,
all registrations and recordings thereof and any applications in connection therewith, including, without limitation, registrations,
recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country (collectively, the “Marks”); (b) any reissues, extensions or renewals
of any Marks, (c) the goodwill of the business symbolized by or associated with the Marks, (d) all domain names, (e) all means
of manufacturing goods or offering services covered by the Marks, including, without limitation, trade secrets, formulas, recipes,
customer lists, manufacturing processes, molds, designs, plans and prototypes, (f) any income, royalties, damages, claims and payments
now and hereafter due and/or payable with respect to the Marks, including, without limitation, payments under all licenses entered
into in connection with the Marks and damages, claims, payments and recoveries for past, present or future infringement and (g)
any rights to sue for past, present and future infringements of the Marks.

 

1.19         “UCC”
means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided, however,
in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of Bank’s
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State
of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes
of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions.

 

1.20         In
addition, the following terms shall be defined terms having the meaning set forth for such terms in the UCC: “accounts,”
“account debtor,” “deposit account,” “general intangibles,” and “proceeds”.
Each of the foregoing defined terms shall include all of such items now owned or existing, or hereafter arising or acquired by
Grantor.

 

1.21         All
capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Loan Documents.

 

2.           GRANT
OF SECURITY INTEREST. As collateral security for the prompt and complete payment and performance when due (whether at stated maturity,
by acceleration or otherwise) of all the Secured Obligations and in order to induce Bank to enter into the Credit Agreements, Grantor
hereby grants to Bank a security interest in all of Grantor’s right, title and interest, if any, in, to and under the following,
whether now owned or existing or hereafter arising or acquired and wheresoever located (collectively, the “Collateral”):

 

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2.1           All
Copyrights, Patents and Trademarks including, without limitation, the Copyrights, Patents and Trademarks listed in Schedule
A, all Licenses including, without limitation, the Licenses listed in Schedule B, and any presently pending Litigation
including, without limitation, the Litigation listed in Schedule C;

 

2.2           All
accounts, contract rights and general intangibles arising under or relating to each and every License (including, without limitation,
(A) all moneys due and to become due under any License, (B) any damages arising out of or for breach or default in respect of any
such License, (C) all other amounts from time to time paid or payable under or in connection with any such License, and (D) the
right of Grantor to terminate any such License or to perform and to exercise all remedies thereunder); and

 

2.3           To
the extent not otherwise included, all proceeds of each of the foregoing and all accessions to, substitutions and replacements
for and rents, profits and products of each of the foregoing.

 

Notwithstanding the
foregoing, the Collateral shall not include (i) any intent-to-use application for a Trademark to the extent that, and solely during
the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use
application under United States federal law and (ii) any contractual obligation entered into by Grantor that prohibits or requires
the consent of any Person other than Grantor and its affiliates which has not been obtained as a condition to the creation by Grantor
of a lien on any right, title or interest in such contractual obligation, but only to the extent, and for as long as, such prohibition
is not terminated or rendered unenforceable or otherwise deemed ineffective by the UCC; provided, however, any proceeds,
products, substitutions or replacements of such items shall constitute Collateral.

 

3.           RIGHTS
OF SECURED PARTY; COLLECTION OF ACCOUNTS.

 

3.1           Notwithstanding
anything contained in this IP Security Agreement to the contrary, Grantor expressly agrees that it shall remain liable under each
of its Licenses to observe and perform in all material respects all the conditions and obligations to be observed and performed
by it thereunder and that it shall perform all of its duties and obligations thereunder, all in accordance with and pursuant to
the terms and provisions of each such License. Bank shall not have any obligation or liability under any License by reason of or
arising out of this IP Security Agreement or the granting to Bank of a Lien therein or the receipt by Bank of any payment relating
to any License pursuant hereto, nor shall Bank be required or obligated in any manner to perform or fulfill any of the obligations
of Grantor under or pursuant to any License, or to make any payment, or to make any inquiry as to the nature or the sufficiency
of any payment received by it or the sufficiency of any performance by any party under any License, or to present or file any claim,
or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or
to which it may be entitled at any time or times. Grantor agrees that any rights granted under this IP Security Agreement to Bank
with respect to all of the Collateral shall be worldwide and without any liability for royalties or other related charges from
Bank to Grantor.

 

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3.2           Bank
authorizes Grantor to, at any time no Event of Default exists, collect its accounts related to the sale, license, settlement, judgment
or other disposition of, or otherwise arising from, any of the Collateral, provided that such collection is performed in a commercially
reasonable manner, and Bank may, upon the occurrence and during the continuation of any Event of Default and with prior written
notice to Grantor, limit or terminate said authority at any time. Upon the occurrence and during the continuation of any Event
of Default (beyond any applicable cure period), at the request of Bank, Grantor shall deliver all original and other documents
evidencing and relating to such accounts, including, without limitation, all original orders, invoices and shipping receipts.

 

3.3           Bank
may at any time, upon the occurrence and during the continuation of any Event of Default, without prior written notice to Grantor
of its intention to do so, notify any account debtors of Grantor or any parties to the Licenses of Grantor that the accounts and
the right, title and interest of Grantor in and under such Licenses have been assigned to Bank and that payments shall be made
directly to Bank. Upon the request of Bank at any time after the occurrence and during the continuation of an Event of Default,
Grantor shall so notify such account debtors and parties to such Licenses. Upon the occurrence and during the continuation of any
Event of Default, Bank may, in its name or in the name of others, communicate with such account debtors and parties to such Licenses
to verify with such parties, to Bank’s reasonable satisfaction, the existence, amount and terms of any such accounts or Licenses.

 

4.           REPRESENTATIONS
AND WARRANTIES. Grantor hereby represents and warrants to Bank that:

 

4.1           Except
for the Liens disclosed on Schedule 4.1 and the security interest granted to Bank under this IP Security Agreement, Grantor
is the legal and equitable owner of all right, title and interest in and to each item of the Collateral in which it purports to
grant a security interest hereunder, having good and marketable title thereto, free and clear of any and all Liens, and will continue
to be the legal and equitable owner of all right, title and interest in and to each item of the Collateral, so long as the Copyrights,
Patents, Trademarks and Licenses shall continue in force, except to the extent that dispositions are permitted pursuant to the
Letter Agreement.

 

4.2           Except
for this IP Security Agreement and for the Liens disclosed on Schedule 4.1, (i) no effective security agreement, financing
statement, equivalent security or lien instrument or continuation statement covering all or any part of the Collateral exists,
and (ii) Grantor has made no previous assignment, transfer or agreements in conflict herewith or constituting a present or future
assignment, transfer or encumbrance on any of the Collateral.

 

4.3           This
IP Security Agreement creates a legal and valid security interest on and in all of the Collateral in which Grantor now has rights.
Upon the filing of appropriate financing statements and the filing of a copy of this IP Security Agreement with the United
States Copyright Office and the United States Patent and Trademark Office, Bank will have a fully perfected security interest in
all of the Collateral in which a security interest can be perfected by the filing of financing statements and the filing of a copy
of this IP Security Agreement with the United States Copyright Office and the United States Patent and Trademark Office.

 

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4.4           Except
as set forth on Schedule 4.1, so long as any Secured Obligation remains outstanding, Grantor will not execute, and there
will not be on file in any public office, any effective financing statement or other document or instrument covering the Collateral.

 

4.5           On
the date hereof, Grantor’s chief executive office, principal place of business and the place where Grantor maintains its
records concerning the Collateral are located at the address set forth on the signature page hereof on the date hereof, and Grantor’s
name, type of organization, jurisdiction of organization, and organizational identification number set forth on the signature page
hereof on the date hereof are all true and correct.

 

4.6           Grantor
has the full right and power to grant the security interest in the Collateral made hereby.

 

4.7           All
information furnished to Bank concerning the Collateral and proceeds thereof, for the purpose of inducing Bank to enter into the
Credit Agreements and the transactions contemplated thereby, is or will be at the time the information is furnished, accurate and
correct in all material respects.

 

4.8           To
the best of Grantor’s knowledge and belief following diligent inquiry, except as set forth on Schedule 4.8, no infringement,
breach or unauthorized use presently is being made of any of the Collateral which has or may reasonably be expected to have, alone
or in the aggregate, a material adverse effect on the value or enforceability of, or any rights of Grantor or Bank in, any Collateral.
Grantor has advised Bank of the existence of all contractual restrictions on the use of the Collateral, including, without limitation,
those set forth on Schedule 4.8 hereto.

 

4.9           Except
as set forth on Schedule 4.8, to the best of Grantor’s knowledge and belief following diligent inquiry, (i) there
are no obligations to, covenants to or restrictions (other than those disclosed pursuant to Section 4.8) from third parties affecting
Grantor’s use, disclosure, enforcement, transfer or licensing of the Collateral (other than this IP Security Agreement);
(ii) Grantor has taken all actions necessary to maintain and protect all Collateral and no loss of such Collateral is pending,
reasonably foreseeable or threatened; (iii) there has been no claim made or threatened by or against Grantor asserting the invalidity,
misuse or unenforceability of any item of Collateral or challenging Grantor’s right to use or ownership of any item of Collateral,
and there are no grounds for any such claim or challenge; (iv) there is not and has not been any actual or threatened infringement,
misappropriation, breach or other violation of any Collateral, and there are no facts raising a likelihood of infringement, misappropriation,
breach or other violation; (v) the consummation of the transactions contemplated by (A) this IP Security Agreement and (B) the
Credit Agreements will not alter, impair or extinguish any rights of Grantor in the Collateral; (vi) Grantor has not infringed,
misappropriated or otherwise violated, and Grantor does not infringe, misappropriate, or otherwise violate, any intellectual property
or proprietary right of any other person or entity; and (vii) there has been no claim made or, to Grantor’s knowledge, threatened
against Grantor alleging infringement, misappropriation or other violation of intellectual property.

 

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5.           COVENANTS.
Grantor covenants and agrees with Bank that from and after the date of this IP Security Agreement and until the Secured Obligations
have been performed and paid in full:

 

5.1           Disposition
of Collateral. Grantor shall not sell, lease, assign, transfer or otherwise dispose of any of the Collateral, or contract to
do so, except as permitted by the Letter Agreement.

 

5.2           Relocation
of Business or Collateral. Grantor shall not relocate its chief executive office, principal place of business or its records
from such address(es) provided to Bank pursuant to Section 4.5 above without prior written notice to Bank.

 

5.3           Limitation
on Liens on Collateral. Except as disclosed on Schedules 4.1 and 4.8, Grantor shall not, directly or indirectly, create,
permit or suffer to exist, and shall defend the Collateral against and take such other action as is necessary to remove, any Lien
on the Collateral.

 

5.4           Maintenance
of Records. Grantor shall keep and maintain at its own cost and expense records of the Collateral that are complete in all
material respects.

 

5.5           Registration
and Maintenance of Intellectual Property Rights. Except as would not have a materially adverse effect on the value or enforceability
of, or any rights of Grantor or Bank in, any Collateral, Grantor shall (i) use commercially reasonable efforts to prosecute any
Patent, Trademark or Copyright pending as of the date hereof or thereafter, (ii) promptly make applications for, register or cause
to be registered (to the extent not already registered and consistent with good faith business judgment) any Copyright, Copyright
License, any Patent, Patent License, any Trademark or Trademark License, which is (a) set forth in Schedule A or Schedule
B or (b) is individually or in the aggregate, material to the conduct of Grantor’s business, with the United States Copyright
Office or Patent and Trademark Office, as applicable, including, without limitation, in all such cases the filing and payment of
maintenance, registration and/or renewal fees, the filing of applications for renewal, affidavits of use, affidavits of noncontestability,
the filing and diligent prosecution of opposition, interference and cancellation proceedings, and promptly responding to all United
States Copyright Office or Patent and Trademark Office requests and inquiries. Except as would not have a material adverse effect
on the value or enforceability of, or any rights of Grantor or Bank in, any Collateral, Grantor also agrees to take commercially
reasonable steps to preserve and maintain all rights in the Collateral. Any expenses incurred in connection with prosecution, registration
and maintenance shall be borne by Grantor. Grantor further agrees to retain experienced patent, trademark and copyright attorneys
for the filing and prosecution of all such applications and other proceedings when and if applicable. Except as would not have
a material adverse effect on the value or enforceability of, or any rights of Grantor or Bank in, any Collateral, no Grantor shall,
without Bank’s prior written consent, abandon any rights in or fail to pay any maintenance or renewal fee for any Patent,
Trademark or Copyright listed in Schedule A or breach, terminate, fail to renew or extend, or fail to perform any duties
or obligations for any License listed in Schedule B. Grantor further agrees that it will not take any action, or permit
any action to be taken by any person or entity to the extent that such person or entity is subject to its control, including licensees,
or fail to take any action, which would affect the validity, priority, perfection or enforcement of the rights granted to Bank
under this IP Security Agreement, and any such action if it shall take place shall be null and void and of no effect whatsoever.
If Grantor fails to comply with any of the foregoing provisions of this Section 5.5, Bank shall have the right (but shall
not be obligated) to do so on behalf of Grantor to the extent permitted by law, but at Grantor’s expense, and Grantor hereby
agrees to reimburse Bank in full for all reasonable documented expenses, including the reasonable fees and disbursements of counsel
incurred by Bank in procuring, protecting, defending and maintaining the Collateral. In the event that Grantor shall fail to pay
when due any fees required to be paid by it hereunder, or shall fail to comply with any other duty under this IP Security Agreement,
Bank may, but shall not be required to, pay, satisfy, discharge or bond the same for the account of Grantor, and all monies so
paid out shall be Secured Obligations of Grantor repayable on demand, together with interest at the rate in effect pursuant to
the Credit Agreements at such time.

 

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5.6           Notification
Regarding Changes in Intellectual Property. Grantor shall, not less frequently than on a quarterly basis as provided below,
advise Bank of any right, title or interest of Grantor obtained after the date hereof in or to any Copyright, Patent, Trademark
or License not specified on Schedule A or Schedule B hereto, the provisions of Section 2 above shall automatically
apply thereto, and Grantor hereby authorizes and appoints Bank as Grantor’s attorney-in-fact solely to the extent necessary
to modify or amend such Schedule, as necessary, to reflect any addition or deletion to such ownership rights, and pursuant to Schedule
D, to make any additional filings. In addition to any requirements in this IP Security Agreement for notification, Grantor
shall also provide Bank with quarterly reports within sixty (60) days of the end of each of the first three (3) calendar quarters
and within ninety (90) days of the end of the fourth calendar quarter that identify the status of any new Copyrights, Patents,
Trademarks and/or Licenses, any newly filed applications, the status of any pending applications, the status of Litigation and
licensing, any threats of Litigation, the identification of any known or suspected infringers and the discovery of any prior art
or any other information that may affect the validity or enforceability of the Collateral.

 

5.7           Defense
of Intellectual Property. Grantor shall (i) protect, defend and maintain the validity and enforceability of all current and
future Copyrights, Patents and Trademarks, (ii) use its commercially reasonable efforts to detect infringements of such Copyrights,
Patents and Trademarks and promptly advise Bank in writing of infringements detected and (iii) not allow any Copyrights, Patents
or Trademarks that are material to the conduct of Grantor’s business or are related to the maintenance of the value of the
brand name created by Grantor to be abandoned, forfeited or dedicated to the public.

 

5.8           Further
Assurances; Pledge of Instruments. At any time and from time to time, upon the written request of Bank, and at the sole expense
of Grantor, Grantor shall promptly and duly execute and deliver any and all such further instruments and documents and take such
further action as Bank may reasonably deem necessary or desirable to obtain the full benefits of this IP Security Agreement, including,
without limitation, facilitating the filing of UCC-1 Financing Statements in all applicable jurisdictions and this IP Security
Agreement (and any amendment hereto) or any other document that Bank may reasonably deem necessary, including, without limitation,
any filing described in Schedule D or any other collateral assignment, (and any amendments thereto) with the United States
Copyright Office, Patent and Trademark Office and/or, to the extent commercially reasonable, the state or foreign equivalents of
these offices, as applicable.

 

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5.9           Right
of Inspection and Audit. Subject to the limitations set forth in Section 4(s) of the Letter Agreement, upon reasonable notice
to Grantor (unless an Event of Default has occurred and is continuing, in which case no notice is necessary), Bank shall at all
times have full and free access during normal business hours (or during an Event of Default at any time) to all the books, records,
correspondence, office, facilities and operations of Grantor, including, without limitation, Grantor’s quality control processes,
and Bank or any agents or representatives of Bank may examine the same, take extracts therefrom and make photocopies thereof, and
Grantor agrees to render to Bank, at Grantor’s cost and expense, such clerical and other assistance as may be reasonably
requested with regard thereto, provided, however, that (unless an Event of Default has occurred and is continuing)
(a) Grantor shall have the right to be present during Bank’s examination and (b) such examination shall not unreasonably
interfere with the conduct of Grantor’s business.

 

5.10         Continuous
Perfection. Grantor shall not change its name, identity, corporate structure, jurisdiction of organization or corporation identification
number in any manner which might make any financing or continuation statement filed in connection herewith seriously misleading
within the meaning of Section 9-506 of the UCC (or any other then applicable provision of the UCC) unless Grantor gives Bank thirty
(30) days prior written notice thereof and takes all action necessary or reasonably requested by Bank to amend such financing statement
or continuation statement so that it is not seriously misleading.

 

5.11         Power
of Attorney. Grantor hereby irrevocably appoints Bank (and any of Bank’s designated officers or employees) as Grantor’s
true and lawful attorney to in accordance with the terms hereof: (a) send requests for verification of accounts and Licenses or
notify account debtors or licensees of Bank’s security interest in the accounts and Licenses; (b) endorse Grantor’s
name on any checks or other forms of payment or security that may come into Bank’s possession in connection with the Collateral;
(c) sign Grantor’s name on any invoice or bill of lading relating to any account, drafts against account debtors, schedules
and assignments of accounts and Licenses, verifications of accounts and Licenses, and notices to account debtors and licensees,
(d) make, settle and adjust all claims under and decisions with respect to Grantor’s policies of insurance relating to the
Collateral; (e) settle and adjust disputes and claims respecting the accounts and Licenses directly with account debtors and licensees,
for amounts and upon terms which Bank determines to be reasonable; (f) modify, in its sole discretion, any intellectual property
security agreement entered into between Grantor and Bank without first obtaining Grantor’s approval of or signature to such
modification by amending reference to any right, title or interest in any Copyright, Patent, Trademark or License, acquired by
Grantor after the execution hereof or to delete any reference to any right, title or interest in any Copyright, Patent, Trademark
or License, in which Grantor no longer has or claims any right, title or interest; (g) endorse Grantor’s name on all applications,
documents, papers and instruments necessary or desirable for Bank in the use of the Collateral, (h) take any other actions with
respect to the Collateral as Bank deems in the best interest of Bank (consistent with any enforceable restrictions in Licenses
to Grantor); (i) grant or issue any exclusive or non-exclusive license under the Collateral to anyone (consistent with any enforceable
restrictions in Licenses to Grantor) or (j) assign, pledge, convey or transfer title in or dispose of the Collateral to anyone,
including Bank or a third party to the extent permitted under the UCC, free and clear of any encumbrance upon title thereof (other
than any encumbrance created by this IP Security Agreement and consistent with any enforceable restrictions in Licenses to Grantor).
Grantor hereby irrevocably appoints Bank (and any of Bank’s designated officers or employees) as Grantor’s true and
lawful attorney to and in accordance with the terms hereof: (x) file, in its sole discretion, one or more financing or continuation
statements and amendments thereto, relative to any of the Collateral without the signature of Grantor where permitted by law; and
(y) with respect to the Trademarks, file a copy of this IP Security Agreement with the U.S. Patent and Trademark Office. The appointment
of Bank as Grantor’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest,
is irrevocable until all of the Secured Obligations have been fully repaid and performed and Bank’s obligation to provide
advances hereunder is terminated. Grantor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue
of this IP Security Agreement. Notwithstanding the foregoing, Bank agrees not to exercise its rights under the foregoing powers
(other than as respects clauses (x) and (y) above) unless an Event of Default has occurred and is continuing.

 

    	10

    	 

    

 

5.12         Intent-to-Use
Trademark Applications. To the extent that any of the Trademarks consist of intent-to-use based trademark applications, if
at any time Grantor commences using such Trademark in its business, Grantor shall take such actions as may be reasonably requested
by Bank to convert, within the time provided by the United Stated Patent and Trademark Office, such intent-to-use trademark application
to a use-based application.

 

6.           RIGHTS
AND REMEDIES UPON DEFAULT.

 

6.1           If
any Event of Default shall occur and be continuing, Bank may exercise in addition to all other rights and remedies granted to it
under this IP Security Agreement and under any other instrument or agreement securing, evidencing or relating to the Secured Obligations,
all rights and remedies of a secured party under the UCC. Without limiting the generality of the foregoing, Grantor expressly agrees
that in any such event, and during the existence and continuation of an Event of Default, Bank, without demand of performance or
other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale)
to or upon Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to
the maximum extent permitted by the UCC and other applicable law), may forthwith maintain, collect, receive, appropriate and realize
upon the Collateral, or any part thereof, and may forthwith sell, lease, license, assign, give an option or options to purchase
or sell or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof (consistent with any enforceable
restrictions in Licenses to Grantor), in one or more parcels at public or private sale or sales, at any exchange or broker’s
board or at any of Bank’s offices or elsewhere at such prices as it may deem best, for cash or on credit or for future delivery
without assumption of any credit risk. Bank shall have the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part of said Collateral so sold, free of any right or
equity of redemption, which equity of redemption Grantor hereby releases. During the period of any Event of Default, all use of
the Trademarks by Grantor shall inure to the benefit of Bank. Bank shall apply the net proceeds of any such collection, recovery,
receipt, appropriation, realization or sale as provided in Section 6.4 hereof, Grantor remaining liable for any deficiency
remaining unpaid after such application, and to the extent required by the UCC, only after so paying over such net proceeds and
after the payment by Bank of any other amount required by any provision of law, need Bank account for the surplus, if any, to Grantor.
To the maximum extent permitted by applicable law, Grantor waives all claims, damages, and demands against Bank arising out of
the repossession, retention or sale of the Collateral except such as arise out of the gross negligence or willful misconduct of
Bank. Grantor agrees that Bank need not give more than ten (10) days’ notice (which notification shall be deemed given when
mailed or delivered on an overnight basis, postage prepaid, addressed to Grantor at its address set forth on the signature page
hereof) of the time and place of any public sale or of the time after which a private sale may take place and that such notice
is reasonable notification of such matters. Grantor shall remain liable for any deficiency if the proceeds of any sale or disposition
of the Collateral are insufficient to pay all amounts to which Bank is entitled, Grantor also being liable for the reasonable fees
of any attorneys employed by Bank to collect such deficiency.

 

    	11

    	 

    

 

6.2           Grantor
also agrees, to pay all documented fees, costs and expenses of Bank, including, without limitation, reasonable attorneys’
fees, reasonably incurred in connection with the enforcement of any of its rights and remedies hereunder.

 

6.3           Grantor
hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection
with this IP Security Agreement or any Collateral.

 

6.4           The
proceeds of any sale, disposition or other realization upon all or any part of the Collateral shall be distributed by Bank in the
following order of priorities:

 

FIRST, to Bank in an
amount sufficient to pay in full the reasonable costs of Bank in connection with such sale, disposition or other realization, including
all fees, costs, expenses, liabilities and advances reasonably incurred or made by Bank in connection therewith, including, without
limitation, reasonable attorneys’ fees;

 

SECOND, to Bank in an
amount equal to the then unpaid Secured Obligations; and

 

FINALLY, upon payment
in full of the Secured Obligations, to Grantor or its representatives, in accordance with the UCC or as a court of competent jurisdiction
may direct.

 

7.           BANK’S
RIGHT TO SUE. From and after the occurrence and during continuation of an Event of Default, Bank shall have a right, but shall
in no way be obligated, to bring suit for past, present and future damages in its own name and for its own benefit to enforce the
Copyrights, Patents, Trademarks and Licenses, and if Bank commence any such suit, Grantor shall, at the request of Bank, use commercially
reasonable efforts to do any and all lawful acts and execute any and all proper documents required by Bank in aid of such enforcement.

 

8.           LIMITATION
ON BANK’S DUTY IN RESPECT OF COLLATERAL. Bank shall deal with the Collateral in the same manner as it deals with similar
property for its own account. Bank shall be deemed to have acted reasonably in the custody, preservation and disposition of any
of the Collateral if it takes such action as Grantor requests in writing, but failure of Bank to comply with any such request shall
not in itself be deemed a failure to act reasonably and no failure of Bank to do any act not so requested shall be deemed a failure
to act reasonably.

 

    	12

    	 

    

 

9.           MISCELLANEOUS.

 

9.1         No
Waiver; Cumulative Remedies.

 

9.1.1           Bank
shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder, nor shall
any single or partial exercise of any right or remedy hereunder on any one occasion preclude the further exercise thereof or the
exercise of any other right or remedy.

 

9.1.2           The
rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently and are not exclusive of any
rights and remedies provided by law. Grantor acknowledges and agrees that this IP Security Agreement is not intended to limit or
restrict in any way the rights and remedies of Bank but rather is intended to facilitate the exercise of such rights and remedies.
Bank shall have, in addition to all other rights and remedies given it by the terms of the Security Agreement, all rights and remedies
allowed by law and the rights and remedies of a secured party under the UCC. Recourse to security will not be required at any time.

 

9.1.3           None
of the terms or provisions of this IP Security Agreement may be waived, altered, modified or amended except by an instrument in
writing, duly executed by Grantor and Bank.

 

9.2         Releases.

 

9.2.1           This
IP Security Agreement is made for collateral purposes only. Subject to Section 9.2.2 below, at such time as the Secured
Obligations shall have been paid and performed in full and Grantor has no further obligations under or with respect to the Credit
Agreements, the Collateral shall be automatically released from the Liens created hereby, and this IP Security Agreement and all
obligations of Bank and Grantor hereunder shall automatically terminate, all without delivery of any instrument or performance
of any act by any party, and all rights to the Collateral shall revert to Grantor. At the request and sole expense of Grantor following
any such termination, Bank shall deliver to Grantor all termination statements, releases or other instruments as may be necessary
or proper to revest in Grantor (without recourse to or warranty by Bank, except for encumbrances created by Bank, provided that
no such recourse or warranty shall apply to any Collateral sold or otherwise disposed of by Bank pursuant to this IP Security Agreement)
full title to the Collateral granted in this IP Security Agreement, subject to any acceptance or disposition of Collateral which
may have been made by Bank pursuant to this IP Security Agreement.

 

9.2.2           This
IP Security Agreement and the security interests granted herein shall remain in full force and effect and continue to be effective
if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, avoided,
rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as
a “voidable preference,” “fraudulent conveyance” or otherwise, all as though such payment or performance
had not been made. In the event that any payment, or any part thereof, is avoided, rescinded, reduced, restored or returned, the
Secured Obligations and the security interests granted herein shall be reinstated and the Secured Obligations shall be deemed reduced
only by such amount paid and not so avoided, rescinded, reduced, restored or returned. The provisions of this Section 9.2.2
shall survive repayment of all of the Secured Obligations, and the termination of this IP Security Agreement in any manner.

 

    	13

    	 

    

 

9.3           Successor
and Assigns. This IP Security Agreement and all obligations of Grantor hereunder shall be binding upon the successors and permitted
assigns of Grantor, and shall, together with the rights and remedies of Bank hereunder, inure to the benefit of Bank, any future
holder of any of the Secured Obligations and their respective successors and assigns. Bank may, without cost or expense to Grantor,
assign all or any part of, or any interest (undivided or divided) in, Bank’s rights and benefits under this IP Security Agreement
including, without limitation, the right, title or interest in and to the Collateral. To the extent of any assignment by Bank,
the assignee shall have the same rights and benefits against Grantor hereunder as it would have had if such assignee were Bank.
Grantor may not assign this IP Security Agreement without the prior written consent of Bank, which consent may be granted or withheld
at the sole discretion of Bank. No sales of participations, other sales, assignments, transfers or other dispositions of any agreement
governing or instrument evidencing the Secured Obligations or any portion thereof or interest therein shall in any manner affect
the lien granted to Bank hereunder.

 

9.4           Notices.
All notifications and other communications permitted or required under this Agreement shall be in writing and shall be delivered
in accordance with the terms of the Note.

 

9.5           Counterparts.
This IP Security Agreement may be executed in any number of separate counterparts, each of which, when so executed, shall be deemed
an original, and all of said counterparts taken together shall be deemed to constitute but one and the same instrument.

 

9.6           Severability.
If any provision of this IP Security Agreement is held to be unenforceable under applicable law for any reason, it shall be adjusted,
if possible, rather than voided in order to achieve the intent of the parties to the extent possible. In any event, all other provisions
of this IP Security Agreement shall be deemed valid and enforceable to the fullest extent possible under applicable law.

 

9.7           Governing
Law; Consent to Jurisdiction. THIS IP SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK. The Grantor agrees that any suit for the enforcement of this IP Security Agreement may be brought in the
courts of the State of New York sitting in New York County, or any federal court sitting therein, and consents to the non-exclusive
jurisdiction of such courts and to service of process in any such suit being made upon the Grantor, by mail, at the address specified
on the signature page of this IP Security Agreement, or at any address specified for the Grantor in any Loan Document. The Grantor
hereby waives any objection that it may now or hereafter have to the venue of any such suit or any such court or that such suit
is brought in an inconvenient court.

 

    	14

    	 

    

 

9.8           Waiver
of Jury Trial. EACH PARTY HERETO WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE
IN CONNECTION WITH THIS IP SECURITY AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS.
Except as prohibited by law, the Grantor waives any right which it may have to claim or recover in any litigation referred to in
the preceding sentence any special, exemplary, punitive or consequential damages or any damages other than, or in addition to,
actual damages. The Grantor (i) certifies that neither the Bank nor any representative, agent or attorney of the Bank has represented
expressly or otherwise, that the Bank would not, in the event of litigation, seek to enforce the foregoing waivers and (ii) acknowledges
that, in entering into the Credit Agreement and the other Loan Documents to which the Bank is a party, the Bank is relying upon,
among other things, the waivers and certifications contained in this Section 9.8.

 

9.9           Advice
of Counsel. Grantor represents to Bank that Grantor’s attorneys have reviewed this IP Security Agreement and that it
has discussed this IP Security Agreement with its attorneys.

 

9.10         Section
and Heading Titles. The section and heading titles are for convenience and reference only and shall not affect in any way the
interpretation of any of the provisions of this IP Security Agreement.

 

(Remainder of page intentionally left blank)

 

    	15

    	 

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused this IP Security Agreement to be executed and delivered by its duly authorized officer on
the date first set forth above.

 

H LICENSING, LLC

 

	By:	XCEL BRANDS, INC.
	 	Its Manager

 

	By:	/s/ James Haran	 
	 	Name: James Haran
	 	Title:   CFO

 

ADDRESS OF GRANTOR:

 

Chief Executive Office

 

475 Tenth Avenue

New York, New York 10018

 

Principal Accounting Office

 

475 Tenth Avenue

New York, New York 10018

 

TYPE OF ORGANIZATION: Limited Liability Company

JURISDICTION OF ORGANIZATION: Delaware

ORGANIZATIONAL ID NUMBER: 5617462 

 

SIGNATURE PAGE TO

IP SECURITY AGREEMENT

 

    	 

    	 

    

 

	STATE OF NEW YORK	)
	 	) SS.
	COUNTY OF NEW YORK	)

 

On December __, 2014,
before me, ___________________________, Notary Public, personally appeared _________________________________, personally known
to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his authorized capacity(ies), and that by his signature on the instrument the
person, or the entity upon behalf of which the person acted, executed the instrument.

 

WITNESS my hand and official seal.

 

	 	 
	SIGNATURE OF NOTARY	[SEAL]

 

NOTARY PAGE TO

IP SECURITY AGREEMENT

 

    	 

    	 

    

 

ACCEPTED AND ACKNOWLEDGED BY:

 

BANK HAPOALIM B.M.

 

	By:	Authorized Signatory	 
	 	Name:
	 	Title:

 

	By:	Authorized Signatory	 
	 	Name:
	 	Title:

 

ADDRESS:

 

1177 Avenue of the Americas

New York, New York 10036-2790

Attention: Mitchell Barnett

 

SIGNATURE PAGE TO

IP SECURITY AGREEMENT

 

    	 

    	 

    

 

Schedule A To Security Agreement

 

INTELLECTUAL PROPERTY

 

Trademarks

 

I. United States Trademarks

 

See attached.

 

    	 

    	 

    

 

II. Foreign

 

See attached.

 

    	 

    	 

    

 

Schedule B To Security Agreement

 

LICENSES

 

		1.	License Agreement dated as of December 22, 2014, by and
among QVC, Inc., H Licensing, LLC and XCel Brands, Inc.

 

		2.	Master License Agreement dated as of December 22, 2014,
by and between H Licensing, LLC and The H Company IP, LLC.

 

    	 

    	 

    

 

Schedule C To Security Agreement

 

PENDING LITIGATION

 

None.

 

    	 

    	 

    

 

Schedule D To Security Agreement

 

UCC FILING JURISDICTIONS

 

		Ø	Delaware

 

Other Filings

 

		1.	U.S. Copyright Office

 

A.           Upon
the occurrence of an Event of Default that is continuing, Grantor agrees to execute and deliver to Bank an assignment of Copyright
Licenses and Copyrights set forth in Schedules A and B hereto and hereby authorizes Bank to file the assignments with the
U.S. Patent and Trademark Office (or the appropriate foreign copyright office).

 

B.           Grantor
hereby authorizes Bank to file a copy of this IP Security Agreement with the U.S. Copyright Office for each Copyright License and
Copyright set forth in Schedules A and B hereto.

 

		2.	U.S. Patent and Trademark Office

 

A.           Patents.
Upon the occurrence of an Event of Default that is continuing, Grantor agrees to execute and deliver to Bank conditional for each
Patent License and Patent set forth in Schedule A and B hereto and hereby authorizes Bank to file the conditional assignments
with the U.S. Patent and Trademark Office (or the appropriate foreign patent office).

 

B.           Trademarks

 

1.          Upon
the occurrence of an Event of Default that is continuing, Grantor agrees to execute and deliver to Bank an assignment of Trademark
Licenses and Trademarks set forth in Schedules A and B hereto and hereby authorizes Bank to complete and record with the
U.S. Patent and Trademark (or the appropriate foreign or state office).

 

2.          Grantor
hereby authorizes Bank to file a copy of this IP Security Agreement with the U.S. Patent and Trademark Office for each Trademark
License and Trademark now or hereafter set forth in Schedules A and B hereto.

 

3.           Foreign
Filings

 

Grantor shall promptly
and duly execute, deliver and/or file any and all documents and instruments with any foreign recording office with respect to the
Collateral and take such further action as Bank may reasonably deem necessary or desirable to perfect its security interest in
the Collateral in any foreign jurisdiction, including, without limitation, any foreign patent, trademark and/or copyright office.

 

    	 

    	 

    

 

Schedule 4.1 To Security Agreement

 

EXISTING LIENS

 

None.

 

    	 

    	 

    

 

Schedule 4.8 To Security Agreement

 

RESTRICTIONS

 

None.EXHIBIT 4.2

 

Form of Underwriters’ Warrant Agreement

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE
OTHER THAN (I) AEGIS CAPITAL CORP., CHARDAN CAPITAL MARKETS, LLC OR AN UNDERWRITER OR A SELECTED DEALER PARTICIPATING IN THE OFFERING,
OR (II) A BONA FIDE OFFICER OR PARTNER OF AEGIS CAPITAL CORP., CHARDAN CAPITAL MARKETS, LLC OR OF ANY SUCH UNDERWRITER OR SELECTED
DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF THE OFFERING]. VOID AFTER
5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [_____] Shares of Common
Stock

 

of

 

Eyegate
Pharmaceuticals, Inc.

 

1.          Purchase
Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of [Aegis Capital Corp./ Chardan Capital
Markets, LLC] (“Holder”), as registered owner of this Purchase Warrant, to Eyegate Pharmaceuticals, Inc., a
Delaware corporation (the “Company”), Holder is entitled, at any time or from time to time from [________________]
[DATE THAT IS ONE YEAR FROM THE EFFECTIVE DATE OF THE OFFERING] (the “Commencement Date”), and until
at or before 5:00p.m., Eastern time, [____________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING]
(the ”Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in
part, up to [____] shares of common stock of the Company, par value $0.01 per share (the “Shares”), subject
to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking institutions are authorized by
law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with
the terms herein. During the period commencing on the Effective Date and ending on the Expiration Date, the Company agrees not
to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $[___] per Share
[125% of the price of the Company’s common stock sold in the Offering]; provided, however, that upon
the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise
price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise
Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context. The term “Effective
Date” shall mean [        ], the date on which the Registration Statement on
Form S-1 (File No. 333-197725) of the Company was declared effective by the Securities and Exchange Commission.

 

    	 

    	 

    

 

2.          Exercise.

 

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

 

2.2           Cashless
Exercise.  If at any time after the Commencement Date there is no effective registration statement registering, or no
current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant by payment
of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares
equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to
the Company, together with the exercise form attached hereto, in which event the Company shall issue to Holder Shares in accordance
with the following formula:

 

	X	=	Y(A-B)	 
	A	 
	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

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

 

(i)       if
the Company’s common stock is traded on a securities exchange, the value shall be deemed to be the closing price on such
exchange on the trading day prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant;
or

 

(ii)      if
the Company’s common stock is actively traded over-the-counter, the value shall be deemed to be the closing bid price on
the trading day prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; or

 

(iii)     if
there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company’s
Board of Directors.

 

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

 

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

 

    	 

    	 

    

 

3.          Transfer.

 

3.1           General
Restrictions. The Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder will not: (a)
sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days following the
Effective Date to anyone other than: (i) Aegis Capital Corp. (“Aegis”), Chardan Capital Markets, LLC (“Chardan”)
or an underwriter or a selected dealer participating in the offering contemplated by the Underwriting Agreement (the “Offering”),
or (ii) a bona fide officer or partner of Aegis, Chardan or of any such underwriter or selected dealer, provided that, in each
case (i) or (ii), such transfer shall be in accordance with FINRA Rules 5110(g)(1) and 5110(g)(2)(A)(ii), or (b) cause this Purchase
Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided
for in FINRA Rule 5110(g)(2). On and after 180 days after the Effective Date, transfers of this Purchase Warrant to others may
be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment hereof,
the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase
Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) business
days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase
Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares
purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

3.2          Restrictions
Imposed by the Securities Act. The securities evidenced by this Purchase Warrant, shall not be transferred unless and until:
(i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption
from registration under the Securities Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C. shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement or a post-effective
amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the Company and declared
effective by the U.S. Securities and Exchange Commission (the “Commission”) and compliance with applicable
state securities law has been established.

 

4.          Registration
Rights.

 

4.1           Demand
Registration.

 

4.1.1           Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the Purchase
Warrants and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all or any
portion of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”). On such
occasion, the Company will file a registration statement with the Commission covering the Registrable Securities within sixty (60)
days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective
promptly thereafter, subject to compliance with review by the Commission; provided, however, that the Company shall
not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder
is entitled to piggyback registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate
in the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary
offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty
(30) days after such offering is consummated. The demand for registration may be made at any time during a period of four (4) years
beginning on the Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice
by any Holder(s) to all other registered Holders of the Purchase Warrants and/or the Registrable Securities within ten (10) days
after the date of the receipt of any such Demand Notice.

 

    	 

    	 

    

 

4.1.2          Terms.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts
to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such
states as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required
to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such state, or (ii) the principal shareholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration
statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12)
consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first
given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell
the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if
the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding
the provisions of this Section 4.1.2, the Holder shall be entitled to a demand registration under this Section 4.1.2 on only one
(1) occasion and such demand registration right shall terminate on the fifth anniversary of the Effective Date in accordance with
FINRA Rule 5110(f)(2)(G)(iv).

 

4.2           “Piggy-Back”
Registration.

 

4.2.1           Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right,
for a period of no more than seven (7) years from the Effective Date in accordance with FINRA Rule 5110(f)(2)(G)(v), to include
the Registrable Securities as part of any other registration of securities filed by the Company (other than in connection with
a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form S-8 or any equivalent form);
provided, however, that if, solely in connection with any primary underwritten public offering for the account of
the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of shares
of common stock which may be included in the Registration Statement because, in such underwriter(s)’ judgment, marketing
or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to
include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Holder
requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities shall be made
pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities sought
to be included by such Holders; provided, however, that the Company shall not exclude any Registrable Securities
unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities
in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

    	 

    	 

    

 

4.2.2           Terms. The
Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company
shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to
the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration
statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder. The holders of
the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written notice within
ten (10) days of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise
provided in this Purchase Warrant, there shall be no limit on the number of times the Holder may request registration under this
Section 4.2.2; provided, however, that such registration rights shall terminate on the sixth anniversary of the Commencement
Date.

 

4.3           General
Terms.

 

4.3.1         Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement between Aegis (as Representative
of the several Underwriters named on Schedule 1 attached thereto) and the Company, dated as of [___________], 2015. The Holder(s)
of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally,
and not jointly, indemnify the Company, its directors, its officers who signed the registration statement and persons who control
the Company within the meaning of Section 15 of the Securities Act of Section 20 of the Exchange Act, against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act
or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for
specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section
5.2 of the Underwriting Agreement pursuant to which the Underwriters have hereby agreed to indemnify the Company and such persons.

 

4.3.2         Exercise of
Purchase Warrants. Nothing contained in this Purchase Warrant shall be construed as requiring the Holder(s) to exercise their
Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

 

    	 

    	 

    

4.3.3         Documents Delivered
to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter
of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of counsel to the
Company, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering,
an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort”
letter dated the effective date of such registration statement (and, if such registration includes an underwritten public offering,
a letter dated the date of the closing under the underwriting agreement) signed by the independent registered public accounting
firm which has issued a report on the Company’s financial statements included in such registration statement, in each case
covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and,
in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten
public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering requesting
the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence between
the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff
with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance
notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to
comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties
and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent
and at such reasonable times as any such Holder shall reasonably request.

 

4.3.4         Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably
satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder
and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to
any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that
any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be
made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or
agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods
of distribution.

 

4.3.5        Documents to
be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company
a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6        Damages.
Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to
the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened
breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the
necessity of posting bond or other security.

 

5.          New
Purchase Warrants to be Issued.

 

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

    	 

    	 

    

 

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

 

6.          Adjustments.

 

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

 

6.1.1           Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

6.1.2           Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares
is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date
thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and
the Exercise Price shall be proportionately increased.

 

6.1.3           Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other
than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of
any share reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation
or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the
property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the
Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase
Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such
event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification,
reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer,
by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such
event; and if any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment
shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply
to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.

 

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

    	 

    	 

    

 

6.2             Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company
with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in
any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction
or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase
Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant)
to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable
upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which
such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation,
sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments
provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share
reconstructions or amalgamations.

 

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

 

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

 

8.          Certain
Notice Requirements.

 

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

 

    	 

    	 

    

 

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

 

8.3            Notice
of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant
to Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice
shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate
by the Company’s Chief Executive Officer.

 

8.4            Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company,
to following address or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 18th Floor

New York, New York 10019

Attention: Mr. David Bocchi, Managing Director of Investment Banking

Fax No.: (212) 813-1047

 

If to Chardan:

 

Chardan Capital Markets, LLC

17 State Street, Suite 1600

New York, NY 10004

Attention: Mr. Jonas Grossman, Managing Partner, Head
of Global Capital Markets

Fax No.: (646) 465-9091

 

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

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Chrysler Center

666 Third Avenue

New York, New York 10017

 

    	 

    	 

    

 

Attention: Ivan K. Blumenthal, Esq.

Fax No: (212) 983-3115

 

If to the Company:

 

Eyegate Pharmaceuticals, Inc.

271 Waverley Oaks Road

Suite 108

Waltham, Massachusetts 02452

Attention: Stephen From

Fax No: [•]

 

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

 

Burns and Levinson LLP

125 Summer Street

Boston, Massachusetts 02110

Attention: Josef B. Volman, Esq.

Fax No: 617-345-3299

 

9.          Miscellaneous.

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

9.5            Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served
upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall
be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees
and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on
its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby
irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

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

 

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

 

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

 

[Signature Page
Follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Company has caused
this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2015.

 

EYEGATE PHARMACEUTICALS,
INC.

 

	By:	 	 
	 	Name: 	 
	 	Title: 	 

 

    	 

    	 

    

 

[Form to be used to exercise Purchase
Warrant]

 

Date: __________, 20___

 

The undersigned
hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.01 per share (the “Shares”),
of Eyegate Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and hereby makes payment of $____
(at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase
Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the
number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

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

 

	 	X	=	Y(A-B)	 
	A	 
	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $______ per share

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

 

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

 

	Signature ___________________________________	 
	 	 	 
	Signature Guaranteed __________________________	 

 

    	 

    	 

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

 

	Name:	 	 
	 	(Print in Block Letters)	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 

 

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

 

    	 

    	 

    

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

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

 

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.01 per share, of Eyegate
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does hereby
authorize the Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

 

	Signature___________________________________	 
	 	 	 
	Signature Guaranteed__________________________	 

 

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

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