Document:

NEITHER
THIS WARRANT NOR THE SECURITIES ISSUED UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL
SHALL BE SELECTED BY THE HOLDER BUT PAID FOR BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

 

HANCOCK
JAFFE LABORATORIES, INC.

 

WARRANT
TO PURCHASE ____ SHARES

(SUBJECT
TO ADJUSTMENT)

OF
COMMON STOCK

(Void
after March 8, 2022)

 

	Series
    B Agent Warrant No: __	Issue
    Date: March 8, 2017

 

This
warrant (this “Warrant”) certifies that, for value received, _________ or its registered and permitted
assigns (collectively, the “Holder”), is entitled, subject to the terms set forth below, at any time
from and after the date set forth above (the “Original Issuance Date”) and before 5:00 p.m., Eastern
Time, on May 31,2021 (the date that is the five (5) year anniversary of the Issue Date) (the “Expiration Date”),
to purchase from Hancock Jaffe Laboratories, Inc., a Delaware corporation (the “Company”), _______
shares (subject to adjustment as described herein), of Common Stock of the Company, par value $0.00001 per share (the “Common
Stock”), upon surrender hereof, at the principal office of the Company referred to below, with a duly executed exercise
notice (the “Exercise Notice”) in the form attached hereto as Exhibit A and simultaneous
payment therefor in lawful, immediately available money of the United States, or as otherwise provided herein, at an initial exercise
price per share of $6.00 (the “Exercise Price”). The Exercise Price is subject to adjustment as provided
below, and the term “Common Stock” shall include, unless the context otherwise requires, the stock and
other securities and property at the time receivable upon the exercise of this Warrant. The term “Warrants,”
as used herein, shall mean this Warrant and any other Warrants delivered in substitution or exchange therefor as provided herein.

 

This
Warrant was issued to _______ as partial compensation for ________acting as placement agent for the Company in connection with
the offer and sale by the Company of shares of its Preferred Stock pursuant the Company’s Confidential Information Memorandum
dated December 12, 2016 (the “Memorandum”).

 

1.
Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined
herein shall have the meanings given to such terms in the Memorandum.

 

    	 	1	 

    	 

    

 

2.
Exercise of Warrant.

 

2.1.
Method of Exercise. This Warrant may be exercised at any time or from time to time from and after the Original Issuance
Date and before 5:00 p.m., Eastern Time, on the Expiration Date, on any Business Day (as defined below), for the full number of
shares of Common Stock called for hereby, by surrendering to the Company at the address provided in the Securities Purchase Agreement
(the “Principal Office”), Attention: Chief Executive Officer, with the Exercise Notice duly executed,
together with payment in an amount equal to (a) the number of shares of Common Stock called for on the face of this Warrant, as
adjusted in accordance with this Warrant multiplied (b) by the Exercise Price then in effect. Payment of the Exercise Price may
be made by (i) payment in cash of immediately available funds, or (ii) pursuant to cashless exercise pursuant to Section
2.2. This Warrant may be exercised for less than the full number of shares of Common Stock at the time called for hereby,
except that the number of shares of Common Stock receivable upon the exercise of this Warrant as a whole, and the sum payable
upon the exercise of this Warrant as a whole, shall be proportionately reduced. Upon a partial exercise of this Warrant in accordance
with the terms hereof, this Warrant shall be surrendered to the Company, and a new Warrant of the same tenor and for the purchase
of the number of such shares not purchased upon such exercise shall be issued by the Company to Holder without any charge therefor.
A Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise
(the “Exercise Date”) as provided above, and the Person entitled to receive the shares of Common Stock
issuable upon such exercise shall be treated for all purposes as the holder of such shares of record as of the close of business
on the Exercise Date. Within three (3) Business Days after the Exercise Date, the Company shall issue and deliver to the Person
or Persons entitled to receive the same a certificate or certificates for the number of full shares of Common Stock issuable upon
such exercise. For purposes of this Warrant, “Business Day” means any day that is not a Saturday, a
Sunday, or a day on which banks are required or permitted to be closed in the State of New York.

 

2.2.
Cashless Exercise. In lieu of exercising this Warrant by payment of cash, the Holder may elect to exercise this Warrant
by a cashless exercise and shall receive the number of shares of Common Stock equal to an amount (as determined below) by surrender
of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise in which event the
Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

 

	 	 	X
    = Y - (A)(Y)
	 	 	B
	 	 	 	 
	 	Where	X
    =	the
    number of shares of Common Stock to be issued to the Holder.
	 	 	 	 
	 	 	Y
    =	the
    number of shares of Common Stock issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means
    of a cash exercise rather than a cashless exercise.
	 	 	 	 
	 	 	A
    =	the
    Exercise Price.
	 	 	 	 
	 	 	B
    =	the
    Per Share Market Value of one share of Common Stock on the Business Day immediately preceding the date of such election.

 

    	 	2	 

    	 

    

 

For
the purpose of this Warrant, “Per Share Market Value” means on any particular date (a) the last closing
price per share of the Common Stock on such market that the Common Stock is then listed, or if there is no closing price on such
date, then the closing bid price on such date, or if there is no closing bid price on such date, then the closing price on such
exchange or quotation system on the date nearest preceding such date, or (b) if the Common Stock is not listed then on a market
or any registered national stock exchange, the last closing price for a share of Common Stock in the over-the-counter market,
as reported by Bloomberg at the close of business on such date, or if there is no closing price on such date, then the closing
bid price on such date, or (c) if the Common Stock is not then reported by the trading market or any registered national stock
exchange or in the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting
prices), then the average of the “Pink Sheet” quotes for the five (5) Business Days preceding such date of determination,
or (d) if the Common Stock is not then publicly traded the fair market value of a share of Common Stock as determined in the reasonable
discretion of the Holder provided, however, that all determinations of the Per Share Market Value shall be appropriately
adjusted for any stock dividends, stock splits or other similar transactions during such period. The determination of fair market
value by a Holder shall be final and binding on all parties. In determining the fair market value of any shares of Common Stock,
no consideration shall be given to any restrictions on transfer of the Common Stock imposed by agreement or by federal or state
securities laws, or to the existence or absence of, or any limitations on, voting rights.

 

2.3.
Limitation on Exercise. Notwithstanding any provisions herein to the contrary, the number of shares of Common Stock that
may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent
necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially
owned by such Holder and its affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with
the Holder’s for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), does not exceed 4.9% (the “Maximum Percentage”) of the total number of issued and
outstanding shares of Common Stock. For such purposes, beneficial ownership shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. This restriction may not be waived.

 

2.4.
Exercise Disputes. In the case of any dispute with respect to the number of shares of Common Stock to be issued upon exercise
of this Warrant and/or the Exercise Price in effect at the time of exercise, the Company shall promptly submit the disputed determinations
or arithmetic calculations to the Holder via fax (or, if the Holder has not provided the Company with a fax number, by overnight
courier) within three (3) Business Days of receipt of the Holder’s Exercise Notice. If the Holder and the Company are unable
to agree as to the determination of the number of shares of Common Stock to be issued upon exercise of this Warrant and/or the
Exercise Price within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the
Holder by the Company, then the Company shall in accordance with this Section, on the next Business Day submit the disputed determination
to its independent auditor. The Company shall cause its independent auditor to perform the determinations or calculations and
notify the Company and the Holder of the results promptly, in writing and in sufficient detail to give the Holder and the Company
a clear understanding of its determinations and calculations. The Company shall then on the next Business Day instruct its transfer
agent to issue certificate(s) representing the appropriate number of shares of Common Stock in accordance with the independent
auditor’s determination and this Section. The prevailing party shall be entitled to reimbursement of all fees and expenses
of such determination and calculation, but in no event shall the Company be liable to the Holder for any diminution of value or
damages therefrom during the period that such exercise is disputed.

 

    	 	3	 

    	 

    

 

2.5.
Shares Fully Paid; Payment of Taxes. All shares of Common Stock issued upon the exercise of this Warrant, in accordance
with the terms of this Warrant, shall be validly issued, fully paid and non-assessable, and the Company shall pay all taxes and
other governmental charges (other than income taxes to the holder) that may be imposed in respect of the issue or delivery thereof.

 

2.6.
Company Acknowledgment. The Company will, at the time of the exercise of the Warrant, upon the request of the Holder hereof,
acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be
entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

2.7. Delivery
of Stock Certificates, etc. on Exercise. The Company agrees that, provided the full purchase price listed in the Exercise
Notice is received as specified in Section 1.2 or Section 1.3 as the case may be, the shares of Common
Stock purchased upon exercise of this Warrant (the “Warrant Shares”) shall be deemed to be issued to
the Holder hereof as the record owner of such shares as of the close of business on the date on which delivery of an Exercise
Notice shall have occurred and payment made for such shares as aforesaid. As soon as practicable after the exercise of this Warrant
in full or in part, and in any event no later than three (3) Business Days thereafter (“Warrant Share Delivery Date”),
the Company at its expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of
and delivered to the Holder hereof, or as such Holder may direct in compliance with applicable securities laws, a certificate
or certificates for the number of duly and validly issued, fully paid and non-assessable shares of Common Stock (or Other Securities)
to which such Holder shall be entitled on such exercise, plus, in lieu of any fractional share to which such Holder would otherwise
be entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full share of Common Stock, together
with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon
such exercise pursuant to Section 1 or otherwise, provided that if (i) the Company is then a participant in the Deposit
Withdrawal Agent Commission (“DWAC”) system, (ii) the Holder has provided its DTC instructions to the
Company and (iii) either (A) there is an effective Registration Statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by the Holder and the Holder agrees in writing to make any resale of the Warrant Shares in accordance
with such Registration Statement or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale
limitations pursuant to Rule 144, the Company shall, or shall have its Transfer Agent, transmit certificates representing the
Warrant Shares purchased to the Holder by crediting the account of the Holder’s broker-dealer with the Depository Trust
Company (“DTC”).

 

    	 	4	 

    	 

    

 

2.8.
Obligation Absolute. The Company’s obligation to issue and deliver the Warrant Shares upon exercise of this Warrant
in accordance with the terms hereof is absolute and unconditional, irrespective of any action or inaction by a Holder to enforce
the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such
Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by such Holder or any
other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to such Holder
in connection with the issuance of such Warrant Shares. In the event a Holder shall elect to exercise this Warrant, in whole or
in part, the Company may not refuse exercise based on any claim that such Holder or any one associated or affiliated with such
Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice
to Holder, restraining and/or enjoining exercise of this Warrant shall have been sought and obtained, and the Company posts a
surety bond for the benefit of such Holder in the amount of 300% of the payment to be provided by the Holder to the Company pursuant
to the applicable Exercise Notice, or in a cashless exercise, that would have be provided by the Holder in a cash exercise for
the same number of Warrant Shares, which is subject to the injunction, which bond shall remain in effect until the completion
of arbitration/litigation (including, but not limited to, through any and all appeals process), of the underlying dispute and
the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the
Company shall issue the Warrant Shares purchased and, if applicable, cash, upon delivery of an Exercise Notice.

 

2.9.
Partial Liquidated Damages. The Company understands that a delay in the delivery of Warrant Shares beyond the Warrant Share
Delivery Date could result in economic loss to the Holder. If the Company fails to deliver to the Holder such shares by the Warrant
Share Delivery Date, the Company shall pay to such Holder, in cash, an amount per Business Day for each Business Day until such
shares are delivered an amount equal to the greater of (i) (A) 1% of the payment to be provided by the Holder to the Company pursuant
to the applicable Exercise Notice, or in a cashless exercise, that would have be provided by the Holder in a cash exercise for
the same number of Warrant Shares, for each of the first three (3) Business Days after the Delivery Date and (B) 2% of the payment
to be provided by the Holder to the Company pursuant to the applicable Exercise Notice, or in a cashless exercise, that would
have be provided by the Holder in a cash exercise for the same number of Warrant Shares, on each Business Day thereafter, and
(ii) $2,000 per day (which amount shall be paid as partial liquidated damages and not as a penalty). Nothing herein shall limit
a Holder’s right to pursue actual damages for the Company’s failure to deliver certificates representing the Warrant
Shares purchased upon exercise of this Warrant and such Holder shall have the right to pursue all remedies available to it at
law or in equity (including, without limitation, a decree of specific performance and/or injunctive relief). Notwithstanding anything
to the contrary contained herein, the Holder shall be entitled to withdraw an Exercise Notice, and upon such withdrawal, the Company
shall only be obligated to pay the liquidated damages accrued in this section through the date the Exercise Notice is withdrawn.

 

    	 	5	 

    	 

    

 

2.10.
Compensation for Buy-In on Failure to Timely Deliver Certificates. Upon Exercise. In addition to any other rights
available to the Holder, if the Company fails for any reason to deliver to a Holder the applicable certificate or certificates
by the Warrant Share Delivery Date and if after such Warrant Share Delivery Date, such Holder is required by its brokerage firm
to purchase (in an open market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of
Common Stock to deliver in satisfaction of a sale by such Holder of the Warrant Shares which such Holder was entitled to receive
upon the exercise relating to such Warrant Share Delivery Date (a “Buy-In”), then the Company shall
(1) pay in cash to such Holder (in addition to any other remedies available to or elected by such Holder) the amount, if any,
by which (x) such Holder’s total purchase price (including any brokerage commissions) for the Common Stock so purchased
exceeds (y) the product of (A) the aggregate number of Warrant Shares that such Holder was entitled to receive from the exercise
at issue multiplied by (B) the actual sale price at which the sell order giving rise to such purchase obligation was executed
(including any brokerage commissions) and (2) at the option of such Holder, either reissue (if surrendered) a Warrant to purchase
such number of Warrant Shares as submitted for exercise in the Exercise Notice in question (in which case, such exercise shall
be deemed rescinded) or deliver to such Holder the number of Warrant Shares that would have been issued if the Company had timely
complied with its delivery requirements set forth in this Warrant. For example, if a Holder purchases Warrant Shares having a
total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of the Warrant with respect to which the
actual sale price of the Warrant Shares (including any brokerage commissions) giving rise to such purchase obligation was a total
of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be required to pay such Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable to such Holder in respect of the Buy-In and, upon
request of the Company, reasonable evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing the Warrant Shares
issuable upon exercise of all or any portion of this Warrant as required pursuant to the terms hereof.

 

3.
Certain Adjustments. The Exercise Price in effect at any time and the number and kind of securities issuable upon exercise
of this Warrant shall be subject to adjustment from time to time upon the happening of certain events as follows:

 

3.1.
Adjustment for Stock Splits and Combinations. If the Company at any time or from time to time on or after the Original
Issuance Date effects a stock split or subdivision of the outstanding Common Stock, the Exercise Price then in effect immediately
before that stock split or subdivision shall be proportionately decreased and the number of shares of Common Stock theretofore
receivable upon the exercise of this Warrant shall be proportionately increased. If the Company at any time or from time to time
effects a reverse stock split or combines the outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price then in effect immediately before that reverse stock split or combination shall be proportionately increased and the number
of shares of Common Stock theretofore receivable upon the exercise of this Warrant shall be proportionately decreased. Each adjustment
under this Section 3.1 shall become effective at the close of business on the date the stock split, subdivision,
reverse stock split or combination becomes effective.

 

    	 	6	 

    	 

    

 

3.2.
Adjustment for Certain Dividends and Distributions. If the Company at any time or from time to time on or after the Original
Issuance Date makes or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in additional shares of Common Stock, then and in each such event the Exercise Price then in effect
shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on
such record date, by multiplying the Exercise Price then in effect by a fraction (1) the numerator of which is the total number
of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such
record date and (2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately
prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution; provided, however, that if such record date is fixed and such dividend is not fully
paid or if such distribution is not fully made on the date fixed therefor, the Exercise Price shall be recomputed accordingly
as of the close of business on such record date and thereafter the Exercise Price shall be adjusted pursuant to this Section
3.2 as of the time of actual payment of such dividends or distributions.

 

3.3.
Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time on or after
the Original Issuance Date makes, or fixes a record date for the determination of holders of Common Stock entitled to receive
a dividend or other distribution payable in securities of the Company other than shares of Common Stock, then and in each such
event provision shall be made so that the Holder of this Warrant shall receive upon conversion thereof, in addition to the number
of shares of Common Stock receivable thereupon, the amount of securities of the Company which the Holder would have received had
this Warrant been exercised on the date of such event and had Holder thereafter, during the period from the date of such event
to and including the conversion date, retained such securities receivable by the Holder as aforesaid during such period, subject
to all other adjustments called for during such period under this Section 3.3 with respect to the rights of the
Holder of this Warrant.

 

3.4. Adjustment
for Recapitalization, Reorganization, Reclassification, Consolidation, Merger or Sale. In case the Company after the Issue
Date shall do any of the following (each, a “Recap Event”): (a) consolidate or merge with or into any
other Person and the Company shall not be the continuing or surviving corporation of such consolidation or merger, or (b) permit
any other Person to consolidate with or merge into the Company and the Company shall be the continuing or surviving Person but,
in connection with such consolidation or merger, any Common Stock of the Company shall be changed into or exchanged for securities
of any other Person or cash or any other property, or (c) transfer all or substantially all of its properties or assets to any
other Person, or (d) effect a capital reorganization or reclassification of its Common Stock, then, and in the case of each such
Recap Event, proper provision shall be made to the Exercise Price and the number of shares of Common Stock that may be
purchased upon conversion of this Warrant so that, upon the basis and the terms and in the manner provided in this Warrant, the
Holder shall be entitled upon the conversion hereof at any time after the consummation of such Recap Event, to the extent this
Warrant is not converted prior to such Recap Event, to receive at the Exercise Price in effect at the time immediately
prior to the consummation of such Recap Event, in lieu of the Common Stock issuable upon such conversion of this Warrant prior
to such Recap Event, the securities, cash and property to which such Holder would have been entitled upon the consummation of
such Recap Event if such Holder had exercised the rights represented by this Warrant immediately prior thereto (including the
right of a shareholder to elect the type of consideration it will receive upon a Recap Event), subject to adjustments (subsequent
to such corporate action) as nearly equivalent as possible to the adjustments provided for elsewhere in this Section 3;
provided, however, the Holder at its option may elect to receive an amount in unregistered shares of the common
stock of the surviving entity equal to the value of this Warrant calculated in accordance with the Black-Scholes formula; provided,
further, such shares of common stock shall be valued at a [thirty-five (35%) percent] discount to the VWAP of the common
stock for the twenty (20) Business Days immediately prior to the Recap Event. Immediately upon the occurrence of a Recap Event,
the Company shall notify the Holder in writing of such Recap Event and provide the calculations in determining the adjusted number
of Warrant Shares and the adjusted Exercise Price. Upon the Holder’s request, the continuing or surviving corporation as
a result of such Recap Event shall issue to the Holder a new debenture of like tenor evidencing the right to purchase the adjusted
number of and the adjusted Exercise Price pursuant to the terms and provisions of this Section 3.

 

    	 	7	 

    	 

    

 

3.5.
Adjustment for Sale of Shares Below Exercise Price.

 

(a)
In the event the Company shall at any time issue Additional Stock (as defined below) at a price per share less than the Exercise
Price in effect at the time of such issuance or without consideration (a “Trigger Issuance”), then the
Exercise Price then in effect upon each such Trigger Issuance shall be changed to a price equal to the consideration per share
received by the Company in respect of the shares of Additional Stock issued in such Trigger Issuance (rounded to the nearest tenth
of a cent). Such adjustment shall be made successively whenever such an issuance is made.

 

(b)
“Additional Stock” shall mean Common Stock or options, warrants or other rights to acquire or securities
convertible into or exchangeable for shares of Common Stock, including shares held in the Company’s treasury, and shares
of Common Stock issued upon the exercise of any options, rights or warrants to subscribe for shares of Common Stock and shares
of Common Stock issued upon the direct or indirect conversion or exchange of securities for shares of Common Stock, other than
securities:

 

	 	(i)	issued
    or issuable upon the exercise of any Warrants and/or Agent Warrants issued in connection with the Offering;
	 	 	 
	 	(ii)	issued
    or issuable as a result of any anti-dilution in any outstanding securities of the Company that are outstanding on the Original
    Issuance Date; or
	 	 	 
	 	(iii)	issued
    or issuable to employees, officers or directors pursuant to stock option plans approved by the independent members of the
    Company’s Board of Directors and the stockholders of the Company.

 

    	 	8	 

    	 

    

 

3.6.
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Exercise Price pursuant to this Section
3, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof
and furnish to each holder of a Warrant a certificate setting forth such adjustment or readjustment and showing in detail the
facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of any holder
of a Warrant, furnish or cause to be furnished to such holder a like certificate setting forth (i) such adjustments and readjustments,
(ii) Exercise Price at the time in effect, and (iii) the number of shares of Common Stock and the amount, if any, of other property
which at the time would be received upon the exercise of the Warrant.

 

3.7.
Notices of Record Date. In case:

 

(a)
the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the
exercise of the Warrants) for the purpose of entitling them to receive any dividend or other distribution, or any right to subscribe
for or purchase any shares of stock of any class or any other securities, or to receive any other right, or

 

(b)
of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger
of the Company with or into another corporation, or any conveyance of all or substantially all of the assets of the Company to
another corporation, or

 

(c)
of any voluntary dissolution, liquidation or winding-up of the Company, then, and in each such case, the Company will mail or
cause to be mailed to each holder of a Warrant at the time outstanding a notice specifying, as the case may be, (a) the date on
which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of
such dividend, distribution or right, or (b) the date on which such reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up is expected to take place, and the time, if any is to be fixed, as of which the holders
of record of Common Stock (or such stock or securities at the time receivable upon the exercise of the Warrants) shall be entitled
to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon
such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up, such notice
shall be mailed at least ten (10) days prior to the date therein specified.

 

3.8.
Loss or Mutilation. Upon receipt by the Company of evidence satisfactory to it (in the exercise of reasonable discretion)
of the ownership of and the loss, theft, destruction or mutilation of any Warrant and (in the case of loss, theft or destruction)
of indemnity satisfactory to it (in the exercise of reasonable discretion), and (in the case of mutilation) upon surrender and
cancellation thereof, the Company will execute and deliver in lieu thereof a new Warrant of like tenor.

 

    	 	9	 

    	 

    

 

3.9.
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of
a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued
and outstanding.

 

3.10.
Notice to Holder.

 

(a)
Adjustment to Purchase Price. Whenever the Purchase Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly mail to the Holder a notice setting forth the Purchase Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

 

(b)
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed
to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 30 calendar days prior
to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken
for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or
in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent
that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of
the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    	 	10	 

    	 

    

 

4.
Assignment; Exchange of Warrant. Subject to compliance with applicable securities laws and subject to three (3) days prior
written notice, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”).
On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B
attached hereto (the “Transferor Endorsement Form”) and together with an opinion of counsel reasonably
satisfactory to the Company and the fees for which shall be paid by the Company that the transfer of this Warrant will be in compliance
with applicable securities laws, the Company will issue and deliver to or on the order of the Transferor thereof a new Warrant
or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form
(each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of shares
of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor.

 

5.
Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement or security reasonably satisfactory in form and amount to the Company, the Company, at its expense, twice only, will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

6.
Warrant Agent. The Company may, by written notice to the Holder of the Warrant, appoint an agent (a “Warrant
Agent”) for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to
Section 1, exchanging this Warrant pursuant to Section 5, and replacing this Warrant pursuant to Section
6, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made
at such office by such Warrant Agent.

 

7.
Transfer on the Company’s Books. Until this Warrant is transferred on the books of the Company, the Company may treat
the registered Holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

8.
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
(iv) transmitted by hand delivery, telegram, email or facsimile, addressed as set forth below or to such other address as such
party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given
hereunder shall be deemed effective (a) when sent, if by email, upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

 

    	 	11	 

    	 

    

 

If
to the Company, to:

 

Hancock
Jaffe Laboratories, Inc.

17
Doppler

Irvine,
CA 92618

Attention:
William Abbott

Fax:
(949) 261-2992

 

If
to the Holder:

 

To
the address and facsimile number appearing on the books and

records of the Company.

 

9.
Governing Law, Jurisdiction. This Warrant shall be governed by and construed in accordance with the laws of the State of
New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the
transactions contemplated by this Warrant or any other Transaction Document shall be brought only in the state courts of New York
or in the federal courts located in the state and county of New York. The Company and the Holder hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. The Company and the Holder irrevocably agree to submit to the in personam
jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. The Company and the Holder hereby irrevocably waive personal
service of process and consent to process being served in any suit, action or proceeding in connection with this Warrant or any
other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this Warrant or any other Transaction Document and agree
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other manner permitted by law.

 

10.
Registration Rights. The Holder of this Warrant is entitled to have the shares of Common Stock issuable upon exercise of
this Warrant registered for resale under the Securities Act, pursuant to and in accordance with the Investor Rights Agreements
by and between the Purchasers in the Offering and the Company which rights are expressly incorporated and made a part of this
Warrant.

 

11.
Automatic Exercise upon Expiration. In the event that, upon the Expiration Date, the Per Share Market Value of one share
of Common Stock (or other security issuable upon the exercise hereof) as determined in accordance with this Warrant above is greater
than the Exercise Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised
pursuant to a Cashless Exercise as to all shares (or such other securities) for which this Warrant shall not previously have been
exercised or converted, and the Company shall promptly deliver a certificate representing the shares (or such other securities)
issued upon such exercise to the Holder.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	12	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

	 	HANCOCK JAFFE LABORATORIES, INC. 
	 	 
	 	By:	 
	 	Name:	William
    Abbott
	 	Title:	Chief
    Financial Officer

 

    	 

    	 

    

 

Exhibit
A

 

FORM
OF EXERCISE NOTICE

(to
be signed only on exercise of Warrant)

 

TO:
HANCOCK JAFFE LABORATORIES, INC.

 

The
undersigned, pursuant to the provisions set forth in the attached Agent Warrant (No. 1), hereby irrevocably elects to purchase
(check applicable box):

 

___      
________ shares of the Common Stock covered by such Warrant; or

 

___      
the maximum number of shares of Common Stock covered by such Warrant.

 

The
undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant,
which is $___________. Such payment takes the form of (check applicable box or boxes):

 

___
       $__________ in lawful money of the United States; and/or

 

___
        the cancellation of such portion of the attached Warrant as is exercisable for a
total of _______ shares of Common Stock (using a Fair Market Value of $_______ per share for purposes of this calculation);
and/or

 

___
the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section
2, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless
exercise procedure set forth in Section 2.

 

The
undersigned requests that the certificates for such shares be issued in the name of, and delivered to _____________________________________________________
whose address is

_______________________________________________________________________. 

 

The
undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the
within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities
Act”), or pursuant to an exemption from registration under the Securities Act.

 

	Dated:	 	 	 
	 	 	 	(Signature must conform to name of holder as

                                                         specified on the face of the Warrant)

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	(Address)

 

    	 

    	 

    

 

Exhibit
B

 

FORM
OF TRANSFEROR ENDORSEMENT

(To
be signed only on transfer of Warrant)

 

For
value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees”
the right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of Hancock Jaffe Laboratories,
Inc. to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on
the books of Hancock Jaffe Laboratories, Inc. with full power of substitution in the premises.

 

	Transferees	 	Percentage
    Transferred	 	Number
    Transferred
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

	Dated:
    ______________, ___________	 	 
	 	 	(Signature must conform to name of holder as

                                                         specified on the face of the warrant)

	 	 	 
	Signed
    in the presence of:	 	 
	 	 	 
	 	 	 
	(Name)	 	 
	 	 	(address)
	 	 	 
	ACCEPTED
    AND AGREED:	 	 
	[TRANSFEREE]	 	 
	 	 	(address)
	 	 	 
	 	 	 
	(Name)NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF CORPORATE COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

COMMON
STOCK PURCHASE WARRANT 

HANCOCK
JAFFE LABORATORIES, INC

 

	Warrant
    Shares: [  ] 	Original
    Issue Date: June 15, 2017

 

THIS
COMMON UNIT PURCHASE WARRANT (the “Warrant”) certifies that, for value received [  ] or its assigns
(the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth and in the Securities Purchase Agreement between the Company and the Holder (the “Purchase Agreement”),
at any time on or after the Original Issue Date and on or prior to the close of business on the fifth anniversary of the Original
Issue Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Hancock Jaffe Laboratories,
Inc, a Delaware corporation (the “Company”), up to [  ] Common Shares (as subject to adjustment hereunder,
the “Warrant Shares”); provided, however, the number of Warrant Shares exercisable pursuant to this Warrant
shall increase from 50% to 75% (i) in the event the Company does not consummate an IPO by January 11, 2018 or (ii) in the event
and Event of Default (as defined in the Notes) has occurred and has not been cured. The purchase price of one Common Share under
this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Senior
Secured Convertible Notes (the “Notes”), dated June 15, 2017, issued by the Company to the purchasers pursuant
to the Purchase Agreement.

 

    	B-1

    	 

    

 

Section
2. Exercise.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any
time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such
other office or agency of the Company as the Company may designate by notice in writing to the registered Holder at the address
of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise form annexed
hereto and within three (3) Trading Days of the date said Notice of Exercise is delivered to the Company, the Company shall have
received payment of the aggregate Exercise Price of the Common Shares thereby purchased by wire transfer to an account designated
by the Company or cashier’s check drawn on a United States bank or, if available, pursuant to the cashless exercise procedure
specified in Section 2(c) below. If the amount of payment received by the Company is less than the aggregate Exercise Price of
the Common Shares being purchased, the Holder shall make payment of the deficiency within three (3) Trading Days following notice
thereof. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant
to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised
in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days
of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases
of a portion of the total number of Warrant Shares available hereunder shall automatically reduce the outstanding number of Warrant
Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company
shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver
any objection to any Notice of Exercise Form within two (2) Business Days of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time
may be less than the amount stated on the face hereof.

 

b)
Exercise Price. The exercise price per Common Share under this Warrant shall be the lesser of (a) $7.20 or (b) 120% of
the Conversion Price (the “Exercise Price”).

 

c)
Cashless Exercise. In connection with a Cashless Exercise, this Warrant shall represent the right to subscribe for and
acquire the number of Warrant Shares equal to (i) the number of Warrant Shares specified by the Holder in its Notice of Exercise
(the “Total Number”) less (ii) the number of Warrant Shares equal to the quotient obtained by dividing (A)
the product of the Total Number and the applicable existing Exercise Price by (B) the Fair Market Value. “Fair Market
Value” shall mean: (1) if the Warrant Shares are listed on the NYSE MKT (formerly NYSE AMEX), the Nasdaq Capital Market,
the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board or the Pink OTC
Markets (or any successors to any of the foregoing), the last reported sale price of the Warrant Shares on such exchange or Nasdaq
on the date for which the determination is being made; or (2) if the Warrant Shares are not so listed, “Fair Market Value”
shall be determined in good faith by the Board of Directors of the Company.

 

d)
Mechanics of Exercise.

 

i.
Delivery of Certificates Upon Exercise at IPO. If Holder exercises this Warrant in connection with the Company’s
initial public offering (the “IPO”), certificates for Common Shares purchased hereunder shall be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such
system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale
of the Warrant Shares by the Holder and such Warrant Shares have been sold or (B) the Common Shares are eligible for resale by
the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that is five (5) Trading Days after the latest of (A) the delivery
to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required), and (C) payment of the aggregate Exercise
Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”).
The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall
be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised in
accordance with the requirements of the preceding sentence and with payment to the Company of the Exercise Price (or by cashless
exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance
of such Common Shares, having been paid.

 

    	B-2

    	 

    

 

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

 

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

 

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

 

    	B-3

    	 

    

 

v.
No Fractional Common Shares. No fractional Common Shares shall be issued upon the exercise of this Warrant. As to any fraction
of a Common Share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election,
either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise
Price or round to the nearest whole Common Share.

 

Section
3. Certain Adjustments.

 

a)
Issuance of Additional Common Shares.

 

i.
Until the Company consummates its IPO, in the event the Company shall issue any Additional Common Shares (as defined below), at
a price per share less than the Exercise Price then in effect or without consideration, then the Exercise Price upon each such
issuance shall be adjusted to that price determined by multiplying the Exercise Price then in effect by a fraction:

 

(A)
the numerator of which shall be equal to the sum of (x) the number of outstanding Common Shares (assuming full exercise, conversion
or exchange of all warrants and other securities which are convertible into or exercisable or exchangeable for, and any right
to subscribe for, Common Shares) immediately prior to the issuance of such Additional Common Shares plus (y) the number of Common
Shares (rounded to the nearest whole Common Share) which the aggregate consideration for the total number of such Additional Common
Shares so issued would purchase at a price per share equal to the Exercise Price then in effect, and

 

(B)
the denominator of which shall be equal to the number of outstanding Common Shares (assuming full exercise, conversion or exchange
of all warrants and other securities which are convertible into or exercisable or exchangeable for, and any right to subscribe
for, Common Shares) immediately after the issuance of such Additional Common Shares.

 

ii.
“Additional Common Shares” means all Common Shares issued by the Company after the date hereof, except: (i)
securities issued (other than for cash) in connection with a merger, acquisition, or consolidation, (ii) securities issued pursuant
to the conversion or exercise of convertible or exercisable securities issued or outstanding on or prior to the date of the Purchase
Agreement or issued pursuant to the Purchase Agreement (so long as the conversion or exercise price in such securities are not
amended to lower such price and/or adversely affect the Holders), (iii) the Warrant Shares, (iv) securities issued in connection
with bona fide strategic license agreements or other partnering arrangements so long as such issuances are not for the purpose
of raising capital, (v) Common Shares issued to the Company’s employees, directors or advisors, and (vi) any warrants issued
to any placement agent and its designees for the transactions contemplated by the Purchase Agreement.

 

    	B-4

    	 

    

 

c)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a Common
Share, as the case may be. For purposes of this Section 3, the number of Common Shares deemed to be issued and outstanding as
of a given date shall be the sum of the number of Common Shares issued and outstanding.

 

d)
Notice to Holder.

 

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

 

ii.
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend on the Common Shares, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common Shares, (C) the Company shall authorize the granting
to all holders of the Common Shares rights or warrants to subscribe for or purchase any Common Shares of any class or of any rights,
(D) the approval of any members of the Company shall be required in connection with any reclassification of the Common Shares,
any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of
the Company, or any compulsory share exchange whereby the Common Shares are converted into other securities, cash or property,
or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company,
then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant
Register of the Company, at least 10 calendar days prior to the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such dividend, redemption, rights or warrants, or if
a record is not to be taken, the date as of which the holders of the Common Shares of record to be entitled to such dividend,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or Common Share exchange is expected to become effective or close, and the date as of which it is expected that holders
of the Common Shares of record shall be entitled to exchange their Common Shares for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or Common Share exchange; provided that the failure to mail
such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to
be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall simultaneously publicly disclose such notice. The Holder shall
remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the
event triggering such notice except as may otherwise be expressly set forth herein.

 

    	B-5

    	 

    

 

e)
Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise
Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

Section
4. Transfer of Warrant.

 

a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole
or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written
assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and
funds sufficient to pay any transfer taxes payable upon the making of such transfer, but only after such transferee agrees to
be bound by the provisions of this Agreement. Upon such surrender and, if required, such payment, the Company shall execute and
deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be
exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the Original Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

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

 

d)
Transfer Restrictions. The Warrant may only be disposed of in compliance with state and federal securities laws and shall
not transferred unless the Warrant is (i) registered pursuant to an effective registration statement under the Securities Act
and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144.

 

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

 

    	B-6

    	 

    

 

Section
5. Miscellaneous.

 

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

 

b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

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

 

d)
Authorized Common Shares.

 

The
Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common
Shares may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant
Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens
and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

 

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

 

    	B-7

    	 

    

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body having jurisdiction thereof.

 

e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof.

 

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

 

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

 

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

 

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

 

    	B-8

    	 

    

 

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

 

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

 

l)
Amendment. This Warrant may be modified or amended or the provisions hereof waived in accordance with the Purchase Agreement.
Holder acknowledges and agrees that this Warrant is subject to the Operating Agreement.

 

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

 

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

 

    	B-9

    	 

    

 

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

 

	 	HANCOCK
    JAFFE LABORATORIES, INC
	 	 	 
	 	By:
    	 
	 	Name:
    	William
    Abbott
	 	Title:
    	Chief
    Financial Officer

 

    	 

    	 

    

 

NOTICE
OF EXERCISE

 

TO:
HANCOCK JAFFE LABORATORIES, INC

 

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

 

(2)
Payment shall take the form of (check applicable box): [  ] lawful money of the United States; or [  ] if
permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3)
If in connection with any IPO conducted by the Company, please issue a certificate or certificates representing said Warrant Shares
in the name of the undersigned or in such other name as is specified below:

 

______________________________________________

 

The
Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

______________________________________________

 

______________________________________________

 

______________________________________________

 

(4)
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under
the Securities Act of 1933, as amended, and that the aforesaid Common Shares are being acquired for the account of the undersigned
for investment and not with a view to, or for resale, in connection with the distribution thereof, and that the undersigned has
no present intention of distributing or reselling such Common Shares.

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: _____________________

 

Signature
of Authorized Signatory of Investing Entity: __________________________

 

Name
of Authorized Signatory: __________________________

 

Title
of Authorized Signatory: ______________________

 

Date:
______________________________

 

    	 

    	 

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do
not use this form to exercise the warrant.)

 

FOR
VALUE RECEIVED, [______] all of or [_____] Common Shares of the foregoing Warrant and all rights evidenced thereby are hereby
assigned to

 

__________________________________________________________________________________whose address is

___________________________________________________________________________________________.

 

_______________________________________________________________________

 

Dated:
__________________, ____________

 

Holder’s
Signature:        ___________________________________

 

Holder’s
Address: :        ___________________________________

 ___________________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of limited liability companies
and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.

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