Document:

EX-10.1

 Exhibit 10.1 
  

 
 Personal and Confidential 

November 20, 2017 
 Howard Benjamin, Ph.D. 

410 Marrett Rd. 
 Lexington, MA 02421 

Re:    Transitional Services and Separation Agreement 

Dear Howard: 
 This letter confirms that you and Repligen
Corporation (“Repligen” or the “Company”) have reached an amicable decision for you to transition from your role as Vice President of Business Development and for your employment relationship to end in accordance with this
Transitional Services and Separation Agreement (the “Agreement”). You and the Company thus agree as follows: 

1.    Separation Date; Transition Period 

Your employment with the Company will end on February 28, 2018, unless you or the Company elects to end your employment on an earlier date, which,
although unlikely, either of you may do despite anything else to the contrary in this Agreement. For purposes of this Agreement, the actual last day of your employment will be referred to as the “Separation Date,” and the period between
the date of this Agreement and the Separation Date is the “Transition Period.” 
 The Company anticipates that the Transition Period will be
divided into two phases, with the first phase lasting until December 31, 2017 and the second lasting from January 1 through February 28, 2018. During the first phase, you will continue in your current role as Vice
President of Business Development with the same duties, subject to the Company’s Chief Executive Officer’s (“CEO”) modification and direction as to your duties, hours and schedule. During this phase, you will continue to receive
your regular base salary rate and benefits. 
 In the second phase, which would begin on January 1, you would remain employed, but on a part-time,
hourly basis, working on an as-needed basis as directed by the CEO. During this phase, the Company will pay you an hourly rate of $141 per hour, which is obtained by dividing your 2017 base salary of $293,117
by 2,080. You will continue to receive your benefits subject to the terms of the Company’s benefit plans. 
 2.    Equity

 During the Transition Period, you will continue to vest in your outstanding time-based equity grants consistent with the Company’s 2012 Stock
Option and Incentive Plan and the applicable award agreements (along with the applicable agreements governing your performance-based 

  
 41 Seyon Street, Building 1, Suite 100,
Waltham, MA 02453, USA | Phone: 781-250-0111 | repligen.com 

 equity, the “Equity Documents”). You agree that your Spectrum performance-based restricted stock units
will not vest during the Transition Period because 2018 revenue will not be known as of the Separation Date. Your current equity rights are summarized on Exhibit A attached, and you agree that the summary is correct. Any equity rights that
are not vested as of the Separation Date shall terminate immediately as of the Separation Date and be null and void as of that Date. Your vested equity rights shall remain subject to the Equity Documents in all respects, both during the Transition
Period and after the Separation Date. 
 3.    Bonuses 

(a)    2017 Bonus. Subject to (i) you executing the Certificate Updating Release of Claims in the form attached
as Exhibit B (the “Certificate”) on or within seven (7) days after the Separation Date and (ii) the discretion of the Compensation Committee, you will be eligible for a 2017 bonus in an amount determined by the
Compensation Committee (the “2017 Bonus”). The Company anticipates that the 2017 Bonus, if any, will be paid no later than March 16, 2018. 

(b)    Spectrum Integration Incentive Bonus. You shall continue to be eligible for the first payout of the Spectrum
Integration Incentive Bonus (the “Spectrum Bonus”). Pursuant to the resolution of the Company’s Compensation Committee on October 5, 2017, the CEO shall, in his sole discretion, determine the amount of any such Spectrum Bonus to
be paid to you, and such amount will be paid at the same time Spectrum Bonuses are paid to other employees, but in any event during the 2018 calendar year. You will not be eligible for the second payout of the Spectrum Bonus. 

4.    Nondisparagement 
 You
agree not to make any disparaging statements (whether written, oral, through social or electronic media or otherwise) concerning the Company or any of its affiliates or current officers, directors, employees, managers products or services. 

5.    Release of Claims 
 In
consideration for, among other terms, the Transition Period, to which you acknowledge you would not otherwise be entitled, you voluntarily release and forever discharge the Company, its affiliated and related entities, its and their respective
predecessors, successors and assigns, its and their respective employee benefit plans and fiduciaries of such plans, and the current and former officers, directors, shareholders, employees, attorneys, accountants and agents of each of the foregoing
in their official and personal capacities (collectively referred to as the “Releasees”) generally from all claims, demands, debts, damages and liabilities of every name and nature, known or unknown (“Claims”) that,
as of the date when you sign this Agreement, you have, ever had, now claim to have or ever claimed to have had against any or all of the Releasees. This release includes, without limitation, all Claims: 

 

	 	•	 	relating to your employment by the Company and your decision to terminate your employment with the Company; 

  

	 	•	 	under federal, state or local law (including, without limitation, Claims of discrimination or retaliation under the Age Discrimination in Employment Act); 

  
 2 

	 	•	 	for wages, bonuses, incentive compensation, stock, stock options, restricted stock units, severance, vacation pay or any other compensation or benefits, either under the Massachusetts Wage Act, M.G.L. c. 149, §§148-150C, or otherwise; and 

  

	 	•	 	for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees. 

provided, however, that this release shall not affect your rights under this Agreement. 

6.    Protected Disclosures and Other Protected Actions; Defend Trade Secrets Act 

Nothing contained in this Agreement (including Section 5) or the Restrictive Covenant Agreement limits your ability to (i) file a charge or complaint
with, communicate with, or participate in an investigation (including providing documents in connection with an investigation) with any federal, state or local governmental agency or commission (a “Government Agency”); or
(ii) truthfully testify in litigation. If you file any charge or complaint with any Government Agency and if the Government Agency pursues any claim on your behalf, or if any other third party pursues any claim on your behalf, you waive any
right to monetary or other individualized relief (either individually or as part of any collective or class action); provided that nothing in this Agreement limits any right you may have to receive a whistleblower award or bounty for
information provided to the Securities and Exchange Commission. 
 In addition, under the federal Defend Trade Secrets Act of 2016, you shall not be held
criminally or civilly liable under any federal or state trade secret law or under this Agreement or the Restrictive Covenant Agreement (as defined below) for the disclosure of a trade secret that (a) is made (i) in confidence to a federal,
state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a
lawsuit or other proceeding, if such filing is made under seal. 
 7.    Other Provisions 

(a)    Enforceability and Interpretation. This Agreement shall be governed by Massachusetts law and any dispute
under this Agreement shall be heard by Massachusetts courts. No waiver of any provision of this Agreement shall be effective unless made in writing and signed by the waiving party. If any part of this Agreement is found to be unenforceable, such
part shall be reformed and enforced to its maximum permissible extent, and the rest of the Agreement shall remain enforceable. In signing this Agreement, you are not relying upon any promises or representations made by anyone at or on behalf of the
Company. 
 (b)    Entire Agreement. This Agreement constitutes the entire agreement between you and the Company
and supersedes any previous agreements or understanding between you and the Company, including the Offer Letter dated December 2, 2008, except for the Equity Documents and the Confidentiality, Non-Solicit, and Patent Agreement signed by you on
June 17, 2013 (the “Restrictive Covenant Agreement”). The terms of the Restrictive Covenant Agreement are incorporated by reference into this Agreement. 

  
 3 

 (c) Time for Consideration; Effective Date. You have the opportunity to consider this
Agreement for up to twenty-one (21) days (the “Consideration Period”). To accept this Agreement, you must return a signed, unmodified original or PDF copy of this Agreement so that it is
received by me at or before the expiration of the Consideration Period. You have seven (7) days from the day you enter into this Agreement to revoke it (the “Revocation Period”). To revoke this Agreement, you must provide a
written notice so that it is received by me on or before the last day of the Revocation Period. This Agreement shall become effective on the first business day following the Revocation Period, provided that you do not revoke it (the “Effective
Date”). You acknowledge that you have been advised to discuss all aspects of this Agreement with your attorney. 
 Please indicate your agreement to
the terms of this Agreement by signing and returning to me the this letter (either the original or a PDF copy is fine) within the Consideration Period. 

Very truly yours, 
 REPLIGEN CORPORATION 

 

							
	By:	  	 /s/ Tony J. Hunt
	  		  	 November 20, 2017

		  	Tony J. Hunt	  		  	Date
		  	President and CEO	  		  	
			
	 The foregoing is agreed to and accepted by:
	  		  	
			
	 /s/ Howard Benjamin
	  		  	 November 21, 2017

	Howard Benjamin	  		  	Date

  
 4 

 Exhibit A 

Repligen Corporation 
 Participant
Holdings 
 Report Date Range: 1/1/1900-11/15/2017 

 

																																																	
	Participant ID	 	Holding Group	 	 	Grant Number/	 	 	Plan/Security	 	Grant Type/	 	 	Date	 	Shares	 	 	Share	 	 	Grant/ Share	 	 	Exer. w/ Early-	 	 	Vested &	 	 	Cancelled or	 	 	Opt/SARS	 	 	Opt/SARS	 
	 	 	 	 	 	Certificate	 	 	 	 	Grant No. Ref.	 	 	 	 	Granted	 	 	Holdings	 	 	Price	 	 	Exer. Shares/	 	 	Earned	 	 	WHTC Shares	 	 	Outstanding	 	 	Exercisable/	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Releases/Value	 	 	 	 	 	 	 	 	RS & DEs	 	 	RS Awards	 
	 YFP000188
	 				 				 		 				 		 				 				 				 				 				 				 				 			
	 Options/SARs
	 				 				 		 				 		 				 				 				 				 				 				 				 			
	 YFP000188
	 	 
	Options/
SARs	
 	 	 	0000000000759	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	ISO	 	 	2/27/2014	 	 	3,969	 	 				 	$	15.910000	 	 	 	1,323.00	 	 	 	3,969	 	 	 	0	 	 	 	2,646	 	 	 	2,646	 
		 				 	 	0000000000841	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	ISO	 	 	2/26/2015	 	 	4,280	 	 				 	$	26.200000	 	 	 	0.00	 	 	 	1,270	 	 	 	0	 	 	 	4,280	 	 	 	1,270	 
		 				 	 	0000000000954	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	NQSO	 	 	2/26/2015	 	 	4,751	 	 				 	$	26.200000	 	 	 	0.00	 	 	 	4,751	 	 	 	0	 	 	 	4,751	 	 	 	4,751	 
		 				 	 	0000000000976	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	ISO	 	 	2/26/2016	 	 	4,649	 	 				 	$	26.050000	 	 	 	0.00	 	 	 	0	 	 	 	0	 	 	 	4,649	 	 	 	0	 
		 				 	 	0000000000977	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	NQSO	 	 	2/26/2016	 	 	7,537	 	 				 	$	26.050000	 	 	 	0.00	 	 	 	4,062	 	 	 	0	 	 	 	7,537	 	 	 	4,062	 
		 				 	 	1066	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	ISO	 	 	2/23/2017	 	 	2,763	 	 				 	$	32.400000	 	 	 	0.00	 	 	 	0	 	 	 	0	 	 	 	2,763	 	 	 	0	 
		 				 	 	1066N	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	NQSO	 	 	2/23/2017	 	 	5,526	 	 				 	$	32.400000	 	 	 	0.00	 	 	 	0	 	 	 	0	 	 	 	5,526	 	 	 	0	 
	 Options/SARs Total
	 				 				 		 				 		 	 	33,475	 	 	 	0	 	 				 				 				 				 				 			
														
	 RS Awards
	 				 				 		 				 		 				 				 				 				 				 				 				 			
		 	 	RS Awards	 	 	 	0000000000765	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	RSU	 	 	2/27/2014	 	 	5,962	 	 				 	$	0.000000	 	 	 	5,962.00	 	 	 	5,962	 	 	 	0	 	 	 	0	 	 	 	0	 
		 				 	 	0000000000825	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	RSU	 	 	2/26/2015	 	 	4,691	 	 				 	$	0.000000	 	 	 	3,127.00	 	 	 	3,127	 	 	 	0	 	 	 	1,564	 	 	 	0	 
		 				 	 	0000000000962	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	RSU	 	 	2/26/2016	 	 	6,263	 	 				 	$	0.000000	 	 	 	2,088.00	 	 	 	2,088	 	 	 	0	 	 	 	4,175	 	 	 	0	 
		 				 	 	1073	 	 	Repligen Corp 2012	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Stock Option &	 				 		 				 				 				 				 				 				 				 			
		 				 				 	Incentive Plan	 	 	RSU	 	 	2/23/2017	 	 	4,506	 	 				 	$	0.000000	 	 	 	0.00	 	 	 	0	 	 	 	0	 	 	 	4,506	 	 	 	0	 
	 RS Awards Total
	 				 				 		 				 		 	 	21,422	 	 	 	0	 	 				 				 				 				 				 			
														
	 Stock
	 				 				 		 				 		 				 				 				 				 				 				 				 			
		 	 	Stock	 	 	 	373	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000711)	 	 	6/5/2014	 				 	 	10,000	 	 	$	6.230000	 	 	 	325,300.00	 	 				 				 				 			
		 				 	 	374	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000711)	 	 	3/18/2015	 				 	 	10,000	 	 	$	6.230000	 	 	 	325,300.00	 	 				 				 				 			
		 				 	 	375	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000711)	 	 	5/24/2016	 				 	 	10,000	 	 	$	6.230000	 	 	 	325,300.00	 	 				 				 				 			
		 				 	 	407	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000759)	 	 	3/18/2015	 				 	 	1,323	 	 	$	15.910000	 	 	 	43,037.19	 	 				 				 				 			
		 				 	 	430	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000754)	 	 	3/18/2015	 				 	 	2,484	 	 	$	15.910000	 	 	 	80,804.52	 	 				 				 				 			
		 				 	 	437	 	 	Repligen	 	 	RSU(#0000000000	 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	765)	 	 	2/27/2015	 				 	 	1,988	 	 	$	25.710000	 	 	 	64,669.64	 	 				 				 				 			
		 				 	 	438	 	 	Repligen	 	 	RSU(#0000000000	 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	765)	 	 	2/29/2016	 				 	 	1,987	 	 	$	26.050000	 	 	 	64,637.11	 	 				 				 				 			
		 				 	 	456	 	 	Repligen	 	 	RSU(#0000000000	 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	825)	 	 	2/29/2016	 				 	 	1,564	 	 	$	26.050000	 	 	 	50,876.92	 	 				 				 				 			
		 				 	 	526	 	 	Repligen	 	 	RSU(#0000000000	 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	962)	 	 	2/26/2017	 				 	 	2,088	 	 	$	32.430000	 	 	 	67,922.64	 	 				 				 				 			
		 				 	 	587	 	 	Repligen	 	 	RSU(#0000000000	 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	825)	 	 	2/26/2017	 				 	 	1,563	 	 	$	32.430000	 	 	 	50,844.39	 	 				 				 				 			
		 				 	 	595	 	 	Repligen	 	 	RSU(#0000000000	 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	765)	 	 	2/27/2017	 				 	 	1,987	 	 	$	32.430000	 	 	 	64,637.11	 	 				 				 				 			
		 				 	 	621	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000711)	 	 	3/20/2017	 				 	 	10,000	 	 	$	6.230000	 	 	 	325,300.00	 	 				 				 				 			
		 				 	 	622	 	 	Repligen	 	 
	Opt/
SAR(#000000	
 	 		 				 				 				 				 				 				 				 			
		 				 				 	Corporation	 	 	0000754)	 	 	3/20/2017	 				 	 	4,968	 	 	$	15.910000	 	 	 	161,609.04	 	 				 				 				 			
	 Stock Total
	 				 				 		 				 		 	 	0	 	 	 	59,952	 	 				 				 				 				 				 			
	 YFP000188 Total
	 				 				 		 				 		 	 	54,897	 	 	 	59,952	 	 				 				 				 				 				 			

  
 5 

 Exhibit B 

CERTIFICATE UPDATING RELEASE OF CLAIMS 

I, Howard Benjamin, hereby acknowledge and certify that I entered into a Transitional Services and Separation Agreement (the
“Agreement”) with Repligen Corporation, a Delaware corporation (the “Company”), dated November 20, 2017 (the “Agreement”). Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to
them in the Agreement. Pursuant to the Agreement, I am required to execute this certificate, which updates the release of claims set forth in Section 5 of the Agreement (this “Certificate”) in order to be eligible to receive and
retain the 2017 Bonus. I understand that I may not sign this Certificate until on or after the Separation Date and that I must return it to the Company within seven (7) days after the Separation Date. 

 

	 	1.	A copy of this Certificate was attached to the Agreement as Exhibit B. 

  

	 	2.	In consideration for being eligible to receive and retain the 2017 Bonus, for which I become eligible only if I sign this Certificate, I hereby extend the release of claims set forth in the Agreement to any and all
claims that arose after the date I signed the Agreement through the date I signed this Certificate, subject to all other exclusions and terms set forth in the Agreement. 

 

	 	3.	I have carefully read and fully understand all of the provisions of this Certificate, I knowingly and voluntarily agree to all of the terms set forth in this Certificate, and I acknowledge that in entering into this
Certificate, I am not relying on any representation, promise or inducement made by the Company or its representatives with the exception of those promises contained in this Certificate and the Agreement. 

 

	 	4.	I agree that this Certificate is part of the Agreement. 

  

			
	  
	 	
	Howard Benjamin	 	
		
	  
	 	
	DateExhibit
4.2

 

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 180 DAYS FOLLOWING THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT
(DEFINED BELOW) TO ANYONE OTHER THAN (I) JOSEPH GUNNAR & CO., LLC OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH
THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF JOSEPH GUNNAR & CO., LLC OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

 

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

 

WARRANT
TO PURCHASE COMMON STOCK 

 

ADIAL
PHARMACEUTICALS, INC.

 

Warrant
Shares: _______

Initial
Exercise Date: ______, 2018

 

THIS
WARRANT TO PURCHASE COMMON STOCK (the “Warrant”) certifies that, for value received, _____________ or its assigns
(the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after ____, 2018 (the one-year anniversary of the Effective Date, the “Initial Exercise
Date”) and, in accordance with FINRA Rule 5110(f)(2)(G)(i), prior to or at 5:00 p.m. (New York time) on the date that
is five (5) years following the Effective Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from ADIAL PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), up to ______ shares
of Common Stock, par value $0.001 per share, of the Company (the “Warrant Shares”), as subject to adjustment
hereunder. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section 2(b).

 

Section
1. Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings
indicated in this Section 1:

 

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

 

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

 

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

 

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

 

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

 

    	 	1	 

     

    

 

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

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Trading
Day” means a day on which the New York Stock Exchange is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American LLC, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
or the New York Stock Exchange (or any successors to any of the foregoing).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market,
the volume weighted average price of a share of Common Stock for such date (or the nearest preceding date) on the OTCQB or OTCQX
as applicable, (c) if Common Stock is not then listed or quoted for trading on the OTCQB or OTCQX and if prices for Common Stock
are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of Common Stock so reported, or (d) in all other
cases, the fair market value of the Common Stock as determined by an independent appraiser selected in good faith by the Holder
and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

Section
2. Exercise.

 

a)
Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after
the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of
the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books
of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise Form annexed hereto. Within
two (2) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the
shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank
unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. 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 two (2) Trading Days of the date the final Notice
of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number
of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder
in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of
Exercise 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.

 

    	 	2	 

     

    

 

b)
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $_______1,
subject to adjustment hereunder (the “Exercise Price”).

 

c)
Cashless Exercise. If at any time after the 6 month anniversary of the Initial Exercise Date, there is no effective registration
statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder,
then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which
the Holder shall be entitled to receive the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by
(A), where:

 

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

 

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

 

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

 

If
Warrant Shares are issued in such a “cashless exercise,” the parties acknowledge and agree that in accordance with
Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised,
and the holding period of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares.  The
Company agrees not to take any position contrary to this Section 2(c). 

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)
Mechanics of Exercise.

 

i. Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by its
transfer agent to the Holder by crediting the account of the Holder’s or its designee’s balance account 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 Holder, or (B) the Warrant Shares are eligible for resale by the
Holder without volume or manner-of-sale limitations pursuant to Rule 144 and, in either case, the Warrant Shares have been
sold by the Holder prior to the Warrant Share Delivery Date (as defined below), and otherwise by physical delivery of a
certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of
Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice
of Exercise by the date that is three (3) Trading Days after the delivery to the Company of the Notice of Exercise and
payment of cash if the exercise is a cash exercise pursuant to Section 2(a) above (such date, the “Warrant Share
Delivery Date”). If the Warrant Shares can be delivered via DWAC, the transfer agent shall have received from the
Company any legal opinions or other documentation required by it to deliver such Warrant Shares without legend (subject to
receipt by the Company of reasonable back up documentation from the Holder, including with respect to affiliate status) and,
if applicable and requested by the Company prior to the Warrant Share Delivery Date, the transfer agent shall have received
from the Holder a confirmation of sale of the Warrant Shares (provided the requirement of the Holder to provide a
confirmation as to the sale of Warrant Shares shall not be applicable to the issuance of unlegended Warrant Shares upon a
cashless exercise of this Warrant if the Warrant Shares are then eligible for resale pursuant to Rule 144(b)(1)). The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed
to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with
payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the
Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company
fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the second Trading Day
following the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a
penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of
the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after
such liquidated damages begin to accrue) for each Trading Day after the second Trading Day following such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

 

1
125% of the public offering price per share of common stock and warrant in the offering.

 

    	 	3	 

     

    

 

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

 

iii. Rescission
Rights. If the Company fails to cause its transfer agent to deliver to the Holder the Warrant Shares pursuant to Section
2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise; provided, however,
that the Holder shall be required to return any Warrant Shares or Common Stock subject to any such rescinded exercise notice
concurrently with the return to Holder of the aggregate Exercise Price paid to the Company for such Warrant Shares and the
restoration of Holder’s right to acquire such Warrant Shares pursuant to this Warrant (including, issuance of a
replacement warrant certificate evidencing such restored right).

 

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

 

    	 	4	 

     

    

 

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

 

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

 

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

 

viii. Signature.
This Section 2 and the exercise form attached hereto set forth the totality of the procedures required of the Holder in order
to exercise this Purchase Warrant.  Without limiting the preceding sentences, no ink-original exercise form shall be
required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any exercise form be required in
order to exercise this Purchase Warrant.  No additional legal opinion, other information or instructions shall be
required of the Holder to exercise this Purchase Warrant.  The Company shall honor exercises of this Purchase Warrant
and shall deliver Shares underlying this Purchase Warrant in accordance with the terms, conditions and time periods set forth
herein.

 

    	 	5	 

     

    

 

e) Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such
issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the
Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall
include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the
remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise
or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without
limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is
not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in
the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any
Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation,
and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a
determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B)
a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s
transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a
Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common
Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership
Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect
to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may
increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions
of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until
the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein
contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitations contained in this paragraph shall apply to a successor holder of this Warrant. 

 

Section
3. Certain Adjustments.

 

a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent
securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock
issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number
of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number
of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then
in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall
be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall
remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date
for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification. For the purposes of
clarification, the Exercise Price of this Warrant will not be adjusted in the event that the Company or any Subsidiary
thereof, as applicable, sells or grants any option to purchase, or sell or grant any right to reprice, or otherwise dispose
of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or
Common Stock Equivalents, at an effective price per share less than the Exercise Price then in effect.

 

    	 	6	 

     

    

 

b)
[RESERVED]

 

c) Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to
the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder
could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this
Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership
Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for
the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to
participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the
Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of
Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in
abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation).

 

d) Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any
dividend (other than cash dividends) or other distribution of its assets (or rights to acquire its assets) to holders of
shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of shares
or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of
arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this
Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that
the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation
in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such
Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled
to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result
of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the
Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution,
such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this
Warrant.

 

    	 	7	 

     

    

 

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

 

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

 

    	 	8	 

     

    

 

g) Notice
to Holder.

 

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

 

ii. Notice to Allow
Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be
required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is
a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the
Company shall cause to be mailed a notice to the Holder at its last address as it shall appear upon the Warrant Register of
the Company, at least five (5) calendar days prior to the applicable record or effective date hereinafter specified, 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 provide such notice or any defect therein 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.

 

    	 	9	 

     

    

 

Section
4. Transfer of Warrant.

 

a) Transferability.
Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be
sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call
transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days
immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is
being issued, except the transfer of any security:

 

i. by operation of law or by
reason of reorganization of the Company;

 

ii. to any FINRA member firm
participating in the offering and the officers or partners thereof, if all securities so transferred remain subject to the
lock-up restriction in this Section 4(a) for the remainder of the time period;

 

iii. if the aggregate amount
of securities of the Company held by the Holder or related person do not exceed 1% of the securities being offered;

 

iv. that is beneficially owned
on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise
directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity in the
fund; or

 

v. the exercise or conversion
of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder
of the time period.

 

Subject
to the foregoing restriction, any applicable securities laws and the conditions set forth in Section 4(d), this Warrant and all
rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be cancelled. 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.

 

    	 	10	 

     

    

 

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 initial issuance date of this Warrant and shall be identical with this Warrant except as to the
number of Warrant Shares issuable pursuant thereto.

 

c) Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the
“Warrant Register”), in the name of the record Holder 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) Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon
any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to
or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any
applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section
5. Registration Rights.

 

a) Demand
Registration–Grant of Right. The Company, upon written demand (a “Demand Notice”) of the
Holder(s) of at least 51% of the Warrants and/or the underlying Shares (“Majority Holders”), agrees to
register, on one occasion, all or any portion of the Warrants and the underlying Shares (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 commercially reasonable 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 5(c) 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 one year after the Effective 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 Warrants and/or the Registrable Securities within ten (10) days after the date of the receipt of
any such Demand Notice.

 

    	 	11	 

     

    

 

b) Demand
Registration–Terms. The Company shall bear all fees and expenses attendant to the registration of the Registrable
Securities pursuant to Section 5(a), 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 commercially reasonable 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
5(a) 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
5(b), the Holder shall be entitled to a demand registration under this Section 5(b) 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).

 

c)
“Piggy-Back” Registration–Grant of Right. In addition to the demand right of registration described in
Section 5(a) hereof, the Holder shall have the right, for a period of six (6) years commencing one year after the Effective
Date, 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 promulgated under the 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.

 

d)
“Piggy-Back” Registration–Terms. The Company shall bear all fees and expenses attendant to registering
the Registrable Securities pursuant to Section 5(c) 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 Warrant, there shall be no limit on the number
of times the Holder may request registration under this Section 5(d); provided, however, that such registration rights
shall terminate on the seventh anniversary of the Effective Date in accordance with FINRA Rule 5110(f)(2)(G)(v).

 

Section
6. Miscellaneous.

 

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

 

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 certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which,
in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant
or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and
dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

    	 	12	 

     

    

 

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

 

d) Authorized
Shares.

 

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

 

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

 

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

 

e) Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in
accordance with the provisions of the underwriting agreement, dated [•], 2017, by and between the Company and Joseph
Gunnar & Co., LLC as representatives of the underwriters set forth therein (the “Underwriting
Agreement”).

 

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

 

    	 	13	 

     

    

 

g) Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any
other provision of this Warrant or the Underwriting Agreement, if the Company willfully and knowingly fails to comply
with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder
such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h) Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be
delivered in accordance with the notice provisions of the Underwriting Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature
Page Follows)

 

    	 	14	 

     

    

 

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.

 

	 	ADIAL PHARMACEUTICALS, INC.
	 	 	 
	 	By:	                           
	 	 	Name:
	 	 	Title:

 

    	 	 	 

     

    

 

NOTICE
OF EXERCISE

 

	To:	ADIAL
    PHARMACEUTICALS, 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):

 

☐ in
lawful money of the United States; or

 

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

 

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

 

_______________________________

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4) Accredited
Investor. If the Warrant is being exercised via cash exercise, the undersigned is an “accredited investor” as
defined in Regulation D promulgated under the Securities Act of 1933, as amended

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

 

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

 

Name
of Authorized Signatory: ___________________________________________________________________

 

Title
of Authorized Signatory: ____________________________________________________________________

 

Date:
________________________________________________________________________________________

 

    	 	 	 

     

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

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

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

Dated:
______________, _______

 

Holder’s
Signature: ___________________________

 

Holder’s
Address: ____________________________

 

_____________________________

 

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. Officers of corporations 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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