Document:

rely_Ex10_1

		

			EXHIBIT 10.1

		

		

			Execution Version

		

		
			GOLDMAN SACHS & CO. LLC
		

		
			200 West Street
		

		
			New York, New York 10282-2198
		

		
			 
		

		
			PERSONAL AND CONFIDENTIAL
		

		
			 
		

		
			December 21, 2017
		

		
			 
		

		
			Real Industry, Inc.
		

		
			3700 Park East Drive, Suite 300
		

		
			Beachwood, Ohio 44122
		

		
			Attention: Michael J. Hobey
		

		
			 
		

		
			Commitment Letter
		

		
			Ladies and Gentlemen:
		

		
			Goldman Sachs & Co. LLC (or one of its affiliates) (“Goldman Sachs” or the “Commitment Party”), is pleased to confirm the arrangements under which the Commitment Party commits to provide financing to Real Industry, Inc. (the “Borrower” or “you”) as described herein, on the terms and subject to the conditions set forth in this letter and the attached Exhibits A through G hereto (collectively, this “Commitment Letter”). To the extent not defined in the body of this Commitment Letter, each capitalized term used in this Commitment Letter shall have the meaning assigned to it in the Term Sheet attached as Exhibit A hereto (the “Term Sheet”).
		

		
			You have informed us that the Borrower desires to, in accordance with this Commitment Letter:
		

			
	
			
				i.
			

			
	
			
			enter into a senior secured superiority debtor-in-possession note (the “RELY DIP Facility”) which will be provided to the Borrower after the entry date of the DIP Order in an aggregate amount not to exceed $4,000,000; and

			
	
			
				ii.
			

			
	
			
			issue to the Commitment Party on the Effective Date an amount of common stock in the Reorganized Borrower such that the Commitment Party shall own, or have the right to own, 45-49% of such common stock as of such date (after taking into account a distribution of any common stock in the Reorganized Borrower to Goldman on account of the Upfront Fee) upon payment of a purchase price of $10,000,000 (the “Equity Commitment”)1;

		
			in each case, subject to the satisfaction of certain conditions to be specified in the RELY DIP Documents, including, without limitation, those conditions described in the Commitment Letter.
		

		

		
			1The purchase price of $10.0 million assumes that Goldman would acquire 49% of the outstanding stock and will be adjusted downward in the event that Goldman acquires less than 49% of the stock.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			The proceeds of the RELY DIP Facility are expected to be used, in accordance with the Budget, Term Sheet and the RELY DIP Documents, as applicable, to fund general working capital and operational expenses and restructuring expenses of the Borrower.
		

			
	
			
				 1.
			

			
	
			
			Commitment; Titles and Roles.

		
			The Commitment Party is pleased to commit to provide the Borrower 100% of the RELY DIP Facility and the Equity Commitment on the terms and subject to the conditions contained in this Commitment Letter and the Term Sheet.  The foregoing commitment by the Commitment Party is not subject to syndication.
		

		
			The Borrower agrees that, except as contemplated in the paragraph above, no agents, co-agents or arrangers will be appointed, no other titles will be awarded and no compensation (other than as contemplated by this Commitment Letter and the Term Sheet) will be paid in connection with the RELY DIP Facility unless you and we shall so agree.
		

			
	
			
				 2.
			

			
	
			
			Conditions Precedent.

		
			The Commitment Party’s commitment and agreement hereunder, including without limitation the Equity Commitment, are subject to the entry of an order by the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) approving the Borrower’s execution, delivery and performance of this Commitment Letter. In addition, the Commitment Party’s commitment and agreement hereunder are subject to there not having occurred, since the date hereof, any event that has resulted in or could reasonably be expected to result in a Material Adverse Change.  For purposes hereof, “Material Adverse Change” means any condition, development or event that has resulted in, or would reasonably be expected to result in, a material adverse change in or materially adverse effect on the financial condition or results of operations of the Borrower (including, without limitation, a material impairment of any of Borrower’s assets), taken as a whole, other than the events typically resulting from the filing of the Chapter 11 cases of the Borrower and its subsidiaries, as applicable.  The Commitment Party’s commitment and agreement are also subject to (i) the conditions in the section entitled “Conditions Precedent to the RELY DIP Financing” in Exhibit B hereto, including, without limitation, the execution and delivery of appropriate definitive loan documents relating to the RELY DIP Facility that are substantially consistent with the terms set forth in this Commitment Letter and are otherwise acceptable to the Commitment Party and the Borrower; (ii) the Commitment Party not becoming aware after the date hereof of any new or inconsistent information or other matter not previously disclosed to the Commitment Party relating to the Borrower or the transactions contemplated by this Commitment Letter which the Commitment Party, in its reasonable judgment, deems material and adverse relative to the information or other matters disclosed to the Commitment Party prior to the date hereof; (iii) the payment by SGGH, LLC of $50,000 to the Commitment Party’s counsel for fees and expenses incurred by the Commitment Party in connection with this Commitment Letter and the transactions contemplated herein by no later than December 22, 2017; (iv) the satisfactory completion of all financial, legal, accounting, and tax diligence with respect to the Borrower and the RELY DIP Facility by the Commitment Party no later than January 17, 2018; and (iv) the receipt by the Commitment Party of all internal approvals with respect to the RELY DIP Facility and the transactions contemplated herein no later than January 17, 2018.
		

		
			Furthermore, conditions precedent with respect to the RELY DIP Facility include, but are not limited to, those customary for facilities of this nature and for this transaction in particular the following, including: (i) the occurrence of the entry date of the DIP Order; (ii) the delivery of the Budget; (iii) no default or Event of Default (as defined in the Term Sheet) shall have occurred or be continuing; and (iv) the accuracy of the representations and warranties, including the specified representations and warranties attached in Exhibit E (including, without limitation, the representation and warranty as to the absence of a 
		

		
			
		

		
			

		 

		

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			breach of any affirmative covenant attached in Exhibit F or any negative covenant attached in Exhibit G), in all material respects.
		

			
	
			
				 3.
			

			
	
			
			Information.

		
			Borrower represents and covenants that (i) all written information, documentation and materials made available to the Commitment Party in connection with the transactions and agreements contemplated hereby (collectively, the “Information”) (other than financial projections, forecasts and other forward looking statements (collectively, the “Projections”)) is and will be, when taken as a whole, complete and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading and (ii) the financial projections that have been or will be made available to Commitment Party by or on behalf of the Borrower have been and will be prepared in good faith based upon assumptions that are believed by the preparer thereof to be reasonable at the time such financial projections are furnished to Commitment Party, it being understood and agreed that financial projections are not a guarantee of financial performance and actual results may differ from financial projections and such differences may be material.  You agree that if at any time prior to the DIP Closing Date, any of the representations in the preceding sentence would be incorrect in any material respect if the information and financial projections were being furnished, and such representations were being made, at such time, then you will promptly supplement, or cause to be supplemented, the information and financial projections so that such representations will be correct in all material respects under those circumstances. The Commitment Party will have no obligation to conduct any independent evaluation or appraisal of the assets or liabilities of the Borrower or any other party or to advise or opine on any related solvency issues.
		

			
	
			
				 4.
			

			
	
			
			Indemnification and Related Matters.

		
			In connection with arrangements such as this, it is our policy to receive indemnification.  The Borrower agrees to the provisions with respect to our indemnity and other matters set forth in Exhibit D, which is incorporated by reference into this Commitment Letter.
		

			
	
			
				 5.
			

			
	
			
			Assignments.

		
			This Commitment Letter may not be assigned by you without the prior written consent of the Commitment Party (and any purported assignment without such consent will be null and void), is intended to be solely for the benefit of the Commitment Party and the Borrower, and, except as set forth in Section  4 above (including Exhibit D), is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto.  This Commitment Letter may not be amended nor any term or provision hereof or thereof waived or otherwise modified except by an instrument in writing signed by each of the parties hereto or thereto, as applicable, and any term or provision hereof or thereof may be amended or waived only by a written agreement executed and delivered by all parties hereto or thereto.
		

			
	
			
				 6.
			

			
	
			
			Confidentiality.

		
			Please note that this Commitment Letter and any written communications provided by, or oral discussions with, the Commitment Party in connection with this arrangement are exclusively for the information of the Borrower and may not be disclosed by you to any third party or circulated or referred to publicly without our prior written consent except, after providing written notice to the Commitment Party, pursuant to a subpoena or order issued by a court of competent jurisdiction or by a judicial, administrative or legislative body or committee; provided that the Commitment Party hereby consents to your disclosure of (i) this Commitment Letter and such communications and discussions to the Borrower’s affiliates and 
		

		
			
		

		
			

		 

		

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			the Borrower’s and its affiliates’ respective officers, directors, agents and advisors who are directly involved in the consideration of the RELY DIP Facility and who have been informed by you of the confidential nature of such advice and this Commitment Letter and who have agreed to treat such information confidentially; (ii) this Commitment Letter or the information contained herein to the extent required in motions or any required SEC disclosures, each in form and substance reasonably satisfactory to the Commitment Party, that may be filed with the Bankruptcy Court in connection with obtaining the entry of an order approving your execution, delivery and performance of this Commitment Letter and/or the definitive RELY DIP Documents; (iii) this Commitment Letter or the information contained herein may be disclosed to any official committee appointed in the Borrower’s cases on a confidential basis, and (iv) this Commitment Letter as required by applicable law or compulsory legal process (in which case you agree to inform us promptly thereof).
		

			
	
			
				 7.
			

			
	
			
			Absence of Fiduciary Relationship; Affiliates; Etc.

		
			As you know, the Commitment Party (together with its affiliates, the “Related Parties”) is a financial institution engaged, either directly or through its respective affiliates, in a broad array of activities, including, as applicable, commercial and investment banking, financial advisory, market making and trading, investment management (both public and private investing), investment research, principal investment, financial planning, benefits counseling, risk management, hedging, financing, brokerage and other financial and non-financial activities and services globally.  In the ordinary course of their various business activities, the Related Parties and, as applicable, funds or other entities in which a Related Party invests or with which it co-invest, may, as applicable, at any time purchase, sell, hold or vote long or short positions and investments in securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the accounts of their customers.  In addition, the Related Parties may at any time communicate independent recommendations and/or publish or express independent research views in respect of such assets, securities or instruments.  Any of the aforementioned activities may involve or relate to assets, securities and/or instruments of the Borrower and/or other entities and persons which may (i) be involved in transactions arising from or relating to the arrangement contemplated by this Commitment Letter or (ii) have other relationships with the Borrower or its affiliates.  In addition, the Related Parties may provide investment banking, commercial banking, underwriting and financial advisory services to such other entities and persons.  The arrangement contemplated by this Commitment Letter may have a direct or indirect impact on the investments, securities or instruments referred to in this paragraph, and employees working on the financing contemplated hereby may have been involved in originating certain of such investments and those employees may receive credit internally therefor.  Although the Related Parties in the course of such other activities and relationships may acquire information about the transaction contemplated by this Commitment Letter or other entities and persons which may be the subject of the financing contemplated by this Commitment Letter, the Related Parties shall have no obligation to disclose such information, or the fact that such Related Parties are in possession of such information, to the Borrower or to use such information on the Borrower’s behalf.  Notwithstanding the foregoing, Borrower acknowledges and agrees that in the event that a Related Party is appointed or elected as a director or officer of the Borrower, such individual shall be subject to customary fiduciary duties applicable to such service under applicable law.
		

		
			 
		

		
			Consistent with the Related Parties’ policies to hold in confidence the affairs of their customers, the Related Parties will not furnish confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter to any of their other customers.  Furthermore, you acknowledge that neither the Related Parties nor any of their respective affiliates has an obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, confidential information obtained or that may be obtained by them from any other person.
		

		
			
		

		
			

		 

		

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			The Related Parties may have economic interests that conflict with those of the Borrower, its equity holders and/or its affiliates.  You agree that the Related Parties will act under this Commitment Letter as independent contractors and that nothing in this Commitment Letter or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between the Related Parties and the Borrower, its equity holders or its affiliates.  You acknowledge and agree that the transactions contemplated by this Commitment Letter (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Related Parties, on the one hand, and the Borrower, on the other, and in connection therewith and with the process leading thereto, (i) the Related Parties have not assumed an advisory or fiduciary responsibility in favor of the Borrower, its equity holders or its affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether the Related Parties have advised, are currently advising or will advise the Borrower, its equity holders or its affiliates on other matters) or any other obligation to the Borrower except the obligations expressly set forth in this Commitment Letter and (ii) the Related Parties are acting solely as principals and not as an agent or fiduciary of the Borrower, its management, equity holders, affiliates, creditors or any other person.  The Borrower acknowledges and agrees that the Borrower has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  The Borrower agrees that it will not claim that the Related Parties have rendered advisory services of any nature or respect, or owe fiduciary or similar duties to the Borrower, in connection with such transactions or the process leading thereto.  In addition, the Commitment Party may employ the services of its affiliates in providing services and/or performing their obligations hereunder and may exchange with such affiliates information concerning the Borrower and other companies that may be the subject of this arrangement, and such affiliates will be entitled to the benefits afforded to the Commitment Party hereunder.
		

		
			 
		

		
			In addition, please note that the Related Parties do not provide accounting, tax or legal advice.    Notwithstanding anything herein to the contrary, Borrower (and each employee, representative or other agent of the Borrower) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the DIP Facility and all materials of any kind (including opinions or other tax analyses) that are provided to the Borrower relating to such tax treatment and tax structure.  However, any information relating to the tax treatment or tax structure will remain subject to the confidentiality provisions hereof (and the foregoing sentence will not apply) to the extent reasonably necessary to enable the parties hereto, their respective affiliates, and their respective affiliates’ directors and employees to comply with applicable securities laws.  For this purpose, “tax treatment” means U.S. federal or state income tax treatment, and “tax structure” is limited to any facts relevant to the U.S. federal income tax treatment of the transactions contemplated by this Commitment Letter but does not include information relating to the identity of the parties hereto or any of their respective affiliates.
		

			
	
			
				 8.
			

			
	
			
			Miscellaneous.

		
			The commitment and agreement of the Commitment Party hereunder will terminate upon the first to occur of (i) January 22, 2018 at 11:59 p.m. New York City time, unless the DIP Closing Date shall have occurred on or before such date; (ii) the entry into an agreement by the Borrower, or the request of the Borrower seeking any approval of the Bankruptcy Court, in respect to debtor-in-possession financing or equity investment other than as contemplated by the Term Sheet; and (iii) a material breach by the Borrower under this Commitment Letter.
		

		
			By executing this Commitment Letter, the Borrower agrees on its behalf and on behalf of its affiliates that from the date hereof until the earlier to occur of (i) the date of entry of the DIP Order and (ii) the termination of the commitment and agreement hereunder pursuant to the preceding paragraph, the Borrower and its affiliates will cease any discussion with other potential financing providers and will not 
		

		
			
		

		
			

		 

		

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			directly or indirectly engage in discussion with, provide any information to, or transmit any letter of intent, indicative terms or other document or response to, any person or entity other than the Commitment Party in connection with soliciting or receiving from such financing provider, person or entity a proposal, commitment, exclusivity arrangement, or definitive agreement to provide debt or equity financing (including any modification, extension or continuation of existing equity or debt financing) that is in lieu of, inconsistent with, or reasonably expected to interfere with the RELY DIP Facility if the Commitment Party is ready, willing and able to provide the proceeds of the RELY DIP Facility on the terms and conditions substantially as set forth in this Commitment Letter.
		

		
			 
		

		
			By executing this Commitment Letter, you agree to (i) reimburse the Commitment Party from time to time on demand for all reasonable out-of-pocket fees and expenses (including, but not limited to, the reasonable fees, disbursements and other charges of all legal counsel to the Commitment Party (including, but not limited to, special and local counsel to the Commitment Party) and examiners, search fees, due diligence expenses, transportation expenses, and appraisal, environmental, audit, and consultant costs and expenses) incurred in connection with the RELY DIP Facility, the preparation of the definitive documentation therefor and the other transactions contemplated hereby, regardless of whether any of the transactions contemplated hereby are consummated, as such expenses may be expressly limited by the Term Sheet, and (ii) pay all fees as contemplated by the Term Sheet, including, without limitation, the Upfront Fee upon entry of the DIP Order.
		

		
			 
		

		
			As you know, the Commitment Party is a full-service securities firm engaged, either directly or through its affiliates in various activities, including securities trading, investment management, financing and brokerage activities and financial planning and benefits counseling for both companies and individuals.  In the ordinary course of these activities, the Commitment Party or its affiliates may actively trade the debt and equity securities (or related derivative securities) of the Borrower and other companies which may be the subject of the arrangements contemplated by this letter, including any of their respective affiliates, for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities.  The Commitment Party or its affiliates may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities or other debt obligations of the Borrower or other companies which may be the subject of the arrangements contemplated by this letter and any of their respective affiliates.  The Commitment Party and its affiliates bear their own responsibility for compliance with applicable laws, including federal securities laws, with respect to such activities.
		

		
			 
		

		
			The provisions set forth under Sections  3, 4 (including Exhibit D), 6 and 7 hereof and this Section 8 hereof will remain in full force and effect regardless of whether definitive RELY DIP Documents are executed and delivered. Other than to the extent otherwise provided herein, the provisions set forth under Sections 3, 4 (including Exhibit D), 6 and 7 hereof and this Section 8 will remain in full force and effect notwithstanding the expiration or termination of this Commitment Letter or the Commitment Party’s commitment and agreement hereunder.
		

		
			 
		

		
			Notwithstanding any other provision of this Commitment Letter, the obligations under this Commitment Letter with respect to the RELY DIP Facility are joint and several obligations of the Borrower and the Guarantors.
		

		
			 
		

		
			The Borrower for itself and its affiliates agrees that any suit or proceeding arising in respect of this Commitment Letter or the Commitment Party’s commitment or agreement hereunder will be tried exclusively in the Bankruptcy Court or, if the Bankruptcy Court does not have subject matter jurisdiction, in any Federal court of the United States of America sitting in the Borough of 
		

		
			
		

		
			

		 

		

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			Manhattan or, if that court does not have subject matter jurisdiction, in any state court located in the City and County of New York, and the Borrower hereby submits to the exclusive jurisdiction of, and to venue in, such court.  Any right to trial by jury with respect to any action or proceeding arising in connection with or as a result of either the Commitment Party’s commitment or agreement or any matter referred to in this Commitment Letter is hereby waived by the parties hereto.  The Borrower for itself and its affiliates agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Service of any process, summons, notice or document by registered mail or overnight courier addressed to any of the parties hereto at the addresses above shall be effective service of process against such party for any suit, action or proceeding brought in any such court.  This Commitment Letter will be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.
		

		
			The Commitment Party hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 10756 (signed into law October 26, 2001)) (the “Patriot Act”)  the Commitment Party may be required to obtain, verify and record information that identifies the Borrower and each of the Guarantors, which information includes the name and address of the Borrower and each of the Guarantors and other information that will allow the Commitment Party to identify the Borrower and each of the Guarantors in accordance with the Patriot Act.  This notice is given in accordance with the requirements of the Patriot Act and is effective for the Commitment Party.
		

		
			This Commitment Letter may be executed in any number of counterparts, each of which when executed will be an original, and all of which, when taken together, will constitute one agreement.  Delivery of an executed counterpart of a signature page of this Commitment Letter by facsimile transmission or electronic transmission (in pdf format) will be effective as delivery of a manually executed counterpart hereof.  This Commitment Letter is the only agreement that has been entered into among the parties hereto with respect to the RELY DIP Facility and set forth the entire understanding of the parties with respect thereto and supersede any prior written or oral agreements among the parties hereto with respect to the RELY DIP Facility.
		

		
			 
		

		
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			Please confirm that the foregoing is in accordance with your understanding by signing and returning to the Commitment Party the enclosed copy of this Commitment Letter on or before 11:59 p.m. New York City time on December 21, 2017, whereupon this Commitment Letter will become a binding agreement between us.  If this Commitment Letter has not been signed and returned as described in the preceding sentence by such date, this offer will terminate on such date.  We look forward to working with you on this transaction.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						Very truly yours,

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GOLDMAN SACHS & CO. LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Daniel S. Oneglia

				
	
					
						 

					
					
						 

					
					
						Daniel S. Oneglia

				
	
					
						 

					
					
						 

					
					
						Authorized Signatory

				

		
			 
		

		
			
		

		
			

		 

		

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			ACCEPTED AND AGREED AS OF DECEMBER 21, 2017:
		

		
			 
		

		
			REAL INDUSTRY, INC.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Michael J. Hobey

					
					
						 

				
	
					
						Name: Michael J. Hobey

				
	
					
						Title: President, Interim Chief Executive Officer and CFO

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

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			Exhibit A
		

		
			Term Sheet
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			Exhibit A-1

		

 

		

		
			REAL INDUSTRY INC.
		

		
			SUMMARY OF GS PROPOSED DIP FINANCING
		

		
			 
		

		
			The proposed DIP financing and Emergence Equity contribution will be used to facilitate the continuation of the Borrower/Debtor’s business strategy to acquire businesses and assets to increase free cash flow and create a sustainably profitable enterprise.
		

			
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						Real Industry, Inc. (the “Borrower” and after the Effective Date (as defined below), the “Reorganized Borrower”), a debtor in possession in the Chapter 11 case (the “Case”) filed with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) (jointly administered under Case No. 17-12464) on November 17, 2017 (the “Petition Date”). 

				
	
					
						 

					
					
						 

				
	
					
						GUARANTORS:

					
					
						Each of the Borrower’s existing and newly acquired or created domestic U.S. direct or indirect subsidiaries, which exclude the debtors in the Case other than Borrower, listed on Annex 1 to this Term Sheet (collectively, the “Guarantors”) will unconditionally guarantee the obligations of the Borrower in respect of the RELY DIP Financing (as defined below) on a joint and several basis.

				
	
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						Goldman Sachs & Co. LLC (or one of its affiliates) (“Goldman” or “Lender”).

				
	
					
						 

					
					
						 

				
	
					
						RELY DIP FINANCING:

					
					
						The “RELY DIP Financing” shall be a senior secured superpriority debtor-in-possession note in an aggregate principal amount not to exceed $4,000,000, to be made available to the Borrower in accordance with the Budget (as defined below) after the date on which the Bankruptcy Court enters an order approving the RELY DIP Financing in form and substance consistent with this Term Sheet and otherwise acceptable to Goldman (the “DIP Order”).   Portions of the RELY DIP Financing that are repaid or prepaid may not be reborrowed. 

				
	
					
						 

					
					
						 

				
	
					
						DIP CLOSING DATE:

					
					
						The closing date with respect to the RELY DIP Financing (the “DIP Closing Date”) shall be no later than three (3) business days following the date of entry of the DIP Order, subject to (a) entry of the DIP Order, (b) satisfaction of all applicable conditions precedent and (c) the definitive documents, including a note purchase, security, collateral and guarantee agreements, having been executed and/or delivered in connection with the RELY DIP Financing (together with all documentation related to the RELY DIP Financing, collectively, the “RELY DIP Documents”).

				
	
					
						 

					
					
						 

				
	
					
						MATURITY DATE:

					
					
						The RELY DIP Financing and all other obligations of the Borrower and the Guarantors thereunder and under the RELY DIP Documents (the “DIP Obligations”) shall be repaid in full in cash at the earliest of:

				
	
					
						 

					
					
						 

				

		 

		

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						(i)one (1) year following the Petition Date (the “Stated Maturity Date”);

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(ii)the effective date of a plan of reorganization for the Borrower  which is confirmed by an order of the Bankruptcy Court; and

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(iii)the acceleration of the RELY DIP Financing and related termination of the commitments under the RELY DIP Documents, including, without limitation, as a result of the occurrence of an Event of Default under the RELY DIP Documents or default under the DIP Order (any such date in clauses (i) through (iii), the “Maturity Date”).

				
	
					
						 

					
					
						 

				
	
					
						USE OF PROCEEDS:

					
					
						Subject to a budget to be agreed upon and updated on a monthly basis (or more frequently, at the request of Goldman) (the “Budget”), the proceeds shall be used to fund general working capital, operational expenses and restructuring expenses of the Borrower, solely to the extent permitted by the DIP Orders, the Budget and the RELY DIP Documents, as applicable.  The proceeds of the RELY DIP Financing shall not be used by the Borrower to assert or prosecute any claim, demand, or cause of action against the Lender, including, in each case, without limitation, any action, suit, or other proceeding for breach of contract or tort or pursuant to Sections 105, 510, 544, 547, 548, 549, 550, or 552 of the Bankruptcy Code, or under any other applicable law (state, federal, or foreign), or otherwise.  The initial Budget is attached hereto as Annex 2.

				
	
					
						 

					
					
						 

				
	
					
						OPTIONAL COMMITMENT REDUCTIONS AND REPAYMENTS:

					
					
						The commitments in respect of the RELY DIP Financing may be voluntarily reduced or terminated, and amounts borrowed under the RELY DIP Financing may be voluntarily repaid, in each case, upon two (2) business days’ notice to the Lender by the Borrower, at a redemption price equal to the sum of (i) 100% of the principal amount of the RELY DIP Financing being redeemed plus accrued and unpaid interest thereon as of the date of such redemption; plus (ii) (x) in the event of a repayment for specified events, 2.0% of the amount of the repayment or (y) in all other cases, the Make-Whole Amount (as defined below). For the avoidance of doubt, no Make-Whole Amount will be due in connection with a repayment of the RELY DIP Financing on the Maturity Date.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						“Make-Whole Amount” means the greater of (x) 2.0% of the amount of the repayment and (y) an amount equal to the difference between (A) the aggregate amount of interest which would have otherwise been payable on the amount of the repayment from the date of repayment until the Maturity Date, minus (B) the aggregate amount of interest Lender would earn if the prepaid amount were reinvested for the period from the date of repayment until the Maturity Date at the Treasury Rate (to be defined) plus 50 basis points.

				
	
					
						 

					
					
						 

				

		 

		

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						MANDATORY REPAYMENTS:

					
					
						The RELY DIP Financing will be subject to customary and appropriate mandatory prepayment events, acceptable to Goldman, including the net proceeds of (a) any issuance of debt or equity securities (other than as contemplated by this Term Sheet) and (b) any asset sale, catastrophic event or extraordinary receipts of the Borrower, subject to certain exceptions and specified events to be included in definitive documentation.  Any mandatory prepayment and any payments upon acceleration shall be at the purchase price applicable to an optional redemption occurring on such date, plus accrued and unpaid interest.

				
	
					
						 

					
					
						 

				
	
					
						SUPER PRIORITY ADMINISTRATIVE CLAIMS:

					
					
						Subject and subordinate to the Carve-Out in all respects, the DIP Obligations shall constitute allowed superpriority administrative expense claims under Sections 364(c)(1), 503(b), 507(a)(2) and 507(d) of the Bankruptcy Code and shall in each case have priority over all other allowed chapter 11 and chapter 7 administrative expense claims specified or ordered pursuant to any provision of the Bankruptcy Code, including, but not limited to, Bankruptcy Code sections 105, 326, 328, 330, 331, 503(a), 503(b), 506(c), 507(a), 507(b), 546(c), 546(d), 726, 1113 and 1114 and including, for the avoidance of doubt, the expenses of a chapter 11 or chapter 7 trustee.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						“Carve-Out” means (i) all fees required to be paid to the Clerk of the Bankruptcy Court and to the Office of the United States Trustee under section 1930(a) of title 28 of the United States Code; (ii) all accrued, allowed and unpaid fees and expenses of the Borrower’s professionals and the professionals for any official committee appointed in the Case through  and included the date of delivery of a Carve-Out Trigger Notice up to the amounts set forth in the Budget; and (iii) $150,000 for any fees and expenses of the Borrower’s professionals and the professionals for any official committee appointed in the Case following the delivery of a Carve-Out Trigger Notice; provided that, notwithstanding the foregoing, the fees and expenses described in clauses (i) through (iii) above shall include solely those fees and expenses directly relating to the chapter 11 case of the Borrower and Guarantors, if any, and any fees allocable to the Borrower pursuant to the Interim Compensation Procedures Order entered in the Borrower’s cases (and, for the avoidance of doubt, no fees or expenses directly related to the chapter 11 cases of any other affiliate of the Borrower).

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						No portion of the Carve-Out or proceeds of the RELY DIP Financing or any other amounts may be used for the payment of the fees and expenses of any person incurred in prosecuting any claims or causes of actions against the Lender under the RELY DIP Financing, their respective advisors, agents and sub-agents, including formal discovery proceedings in anticipation thereof, and/or any lien of the Lender under the RELY DIP Financing.

				
	
					
						 

					
					
						 

				

		 

		

			13

		

 

	
					
						

					
						RELY DIP LIENS:

					
					
						Subject to the prior payment of the Carve-Out from the proceeds of Collateral, pursuant to Sections 364(c)(2), and 364(d) of the Bankruptcy Code, the DIP Obligations shall be secured by senior priming liens (the “RELY DIP Liens”) on substantially all assets and property of the Borrower and the Guarantors,  wherever located, whether now owned or hereafter acquired, and all products and proceeds thereof, including, without limitation, intercompany claims and equity pledges (such assets and property, the “Collateral”) including, subject to the entry of the DIP Order, proceeds of the Borrower’s and the Guarantors’ claims and causes of action under sections 502(d), 544, 545, 547, 548, 549, 550 and 553 of the Bankruptcy Code and any other avoidance or similar action under the Bankruptcy Code or similar state or municipal law and the proceeds of each of the foregoing (collectively, the “Avoidance Actions”).

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Except as set forth above, all of the RELY DIP Liens shall be effective and perfected upon entry of the DIP Order and without the necessity of the execution, delivery, or filing of mortgages, security agreements, pledge agreements, financing statements, intellectual property filings, any other filing or notice with any governmental authority or other agreements or instruments.

				
	
					
						 

					
					
						 

				
	
					
						INTEREST RATE:

					
					
						The interest rate for any funded RELY DIP Financing shall be twelve percent (12%) per annum, accruing and payable monthly.

				
	
					
						 

					
					
						 

				
	
					
						DEFAULT INTEREST:

					
					
						The default interest rate shall be the interest rate then in effect plus two percent (2%) per annum.

				
	
					
						 

					
					
						 

				
	
					
						UPFRONT FEE:

					
					
						In consideration for the RELY DIP Financing and the Equity Commitment (as defined below), Goldman shall receive payment of an Upfront Fee upon the DIP Closing Date equal to $300,000 in cash plus shares of common stock equal to 4.9% of the outstanding stock of Borrower pursuant to a private placement, subject to customary registration rights.

				
	
					
						 

					
					
						 

				
	
					
						BREAK-UP FEE:

					
					
						$450,000 to be approved pursuant to the DIP Order and paid as provided below.

				
	
					
						 

					
					
						 

				
	
					
						ACQUISITION FINANCING DURING CHAPTER 11 CASE:

					
					
						Lender will be granted a right of first refusal upon an offer by any third-party to provide financing of the Borrower’s acquisition activities during the period prior to the Maturity Date.  In connection with any such financing by Goldman, Goldman shall be entitled to certain customary fees to be agreed in the RELY DIP Documents.

				
	
					
						 

					
					
						 

				
	
					
						CONDITIONS PRECEDENT TO RELY DIP FINANCING:

					
					
						The obligation of the Lender to make the RELY DIP Financing will be subject to conditions precedent that are usual and customary for transactions of this kind, acceptable to Goldman, including, among others: (i) the execution of the RELY DIP Documents; (ii) entry by

				
	
					
						 

					
					
						 

				

		 

		

			14

		

 

	
					
						

					
						 

					
					
						the Bankruptcy Court of the DIP Order; and (iii) the conditions specified in the Commitment Letter, including in Exhibit B thereto.

				
	
					
						 

					
					
						 

				
	
					
						REPRESENTATIONS AND WARRANTIES:

					
					
						To be applicable to the Borrower and Guarantors, including but not limited to the representation and warranties listed on Exhibit E to the Commitment Letter, as well as the following: corporate existence and good standing; authority to enter into and due execution, delivery and enforceability of, the RELY DIP Documents; validity and continued effectiveness of the DIP Order, as applicable, including the creation, validity, perfection and priority of the RELY DIP Liens and Lender’s claims granted thereunder; governmental approvals; non-violation of organizational documents and material debt agreements (other than as a result of the commencement of the Case); accuracy of disclosure, including financial statements and information concerning the Borrower’s tax attributes (including the amount of net operating loss carryforwards of the Borrower and Guarantors, any limitations on the use thereof under section 382 of the Internal Revenue Code, and the degree to which past transactions could contribute to an “ownership change” of the Borrower within the meaning of section 382 of the Internal Revenue Code; no material litigation not stayed by reason of the Case; intellectual property; ownership of properties; compliance in all material respects with environmental, pension/ERISA and other laws (including, without limitation, FCPA, OFAC and the PATRIOT Act and similar laws applicable to sanctioned persons and any other anti-terrorism, anti-money laundering and anti-corruption and anti-bribery laws);  use of proceeds; payment of taxes; insurance; permits and licenses; absence of default or Event of Default; no material adverse change; the Borrower having not failed to disclose any material  assumptions or liabilities with respect to the Budget; and affirmation of the reasonableness of the assumptions and projections in the Budget by an appropriate financial officer of the Borrower.

				
	
					
						 

					
					
						 

				
	
					
						COVENANTS:

					
					
						The RELY DIP Documents will contain such affirmative and negative covenants as are customary in debtor-in-possession financings and acceptable to the Lender, which shall be applicable to the Borrower and the Guarantors and shall include, without limitation, the affirmative covenants provided in Exhibit F to the Commitment Letter and the negative covenants provided in Exhibit G to the Commitment Letter, as well as the following: (i) the Borrower shall deliver to Goldman detailed budgets (in the form consistent with Annex 2), which shall be subject in all respects to Goldman’s approval, and variation from the Budget not to exceed 10%, tested on a rolling four-week basis beginning one week following approval of the DIP Order1 and each week thereafter (each, a “Budget Period”) for each of the categories of

				
	
					
						 

					
					
						 

				

		
			 
		

		

		
			1The initial test shall include one week following approval of the DIP Order and the three weeks prior to such approval.
		

		
			
		

		

		 

		

			15

		

 

	
					
						

					
						 

					
					
						 

				
	
					
						 

					
					
						Payroll/Benefits, Occupancy, Discontinued Operations, Ordinary Course Professionals, and SG&A; provided that (x) amounts in all other categories and the portion of SG&A relating to amounts paid pursuant to D&O tail insurance shall be tested on a line-item basis, (y) the fees and expenses of Goldman and its professionals are not required to be included in the Budget and shall be excluded for determining any variance and (z) any cash receipts shall be excluded for all calculations of any variance; (ii) Borrower shall deliver in advance to Goldman all draft pleadings and public announcements relating to the Borrower’s and Guarantors assets and business plan and consider Goldman’s comments thereto in good faith; and (iii) Borrower and Guarantors shall not take any action to materially impair the assets of the Borrower or its subsidiaries including with respect to the availability of any tax attributes of the Borrower or its subsidiaries.

				
	
					
						 

					
					
						 

				
	
					
						MILESTONES:

					
					
						The RELY DIP Documents (to be executed no later than January 15, 2018) shall include the following milestones (the “DIP Milestones”):

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(i)no later than January 31, 2018, the Borrower shall have filed a chapter 11 plan (the “Plan”) and Disclosure Statement with respect to the Plan (the “Disclosure Statement”), in each case in form satisfactory to the Lender;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(ii)entry by the Bankruptcy Court of an order approving the Disclosure Statement in form and substance acceptable to the Lender by no later than March 7, 2018, subject to court availability;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(iii)execution of the definitive documents related to the Equity Commitment no later than five (5) days before the hearing to consider confirmation of the Plan;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(iv)entry by the Bankruptcy Court of an order confirming the Plan in form and substance acceptable to the Lender (the “Confirmation Order”) by no later than April 13, 2018, subject to court availability; and

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(v)no later than 10 days after entry of the Confirmation Order, the Borrower shall have taken all steps reasonably necessary to satisfy all conditions for consummating the Plan.

				
	
					
						 

					
					
						 

				
	
					
						EVENTS OF DEFAULT:

					
					
						The RELY DIP Financing shall have usual and customary events of default for transactions of this kind (an “Event of Default”), acceptable to Lender, including:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(i)default shall be made in the payment of any principal of or interest on the DIP Financing or in the payment of any fee 

				
	
					
						 

					
					
						 

				

		 

		

			16

		

 

	
					
						

					
						 

					
					
						or other amount due under the DIP Orders, RELY DIP Documents or the RELY DIP Financing, in each case, when and as the same shall become due and payable, whether at the due date thereof or by acceleration thereof or otherwise;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(ii)any representation or warranty made or deemed made in any RELY DIP Document, or any representation or warranty contained in any certificate, or other document furnished in connection with or pursuant to any RELY DIP Document or the RELY DIP Financing, including the Commitment Letter, shall prove to have been false or misleading in any material respect when so made, deemed made or furnished;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(iii)breach of any covenant that is not cured within 30 days;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(iv)a Change of Control (to be defined in the RELY DIP Documents) shall have occurred;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(v)the Borrower fails to meet any DIP Milestone;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(vi)any prohibited variance from the Budget;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(vii)the DIP Order shall not have been entered within 30 calendar days after the filing of the motion to approve the RELY DIP Financing;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(viii)the Borrower shall obtain, or the Bankruptcy Court shall enter an order approving, any additional financing from a party other than the Lender, including from any of its subsidiaries;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(ix)the Borrower files a motion, or the Bankruptcy Court enters an order subordinating, disallowing, or otherwise challenging the claims and liens of the Lender under the RELY DIP Financing;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(x)any other claim which is senior to or pari passu with the Lenders' administrative claim or any lien on any assets or property of the Borrower shall be granted without the Lender’s consent, except as expressly permitted by the RELY DIP Documents;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xi)the Borrower shall (A) contest the validity or enforceability of any RELY DIP Document in writing or deny in writing that it has any further liability thereunder or (B) contest the validity or perfection of the liens and security interests securing the RELY DIP Financing;

				
	
					
						 

					
					
						 

				

		 

		

			17

		

 

	
					
						

					
						 

					
					
						(xii)any attempt by the Borrower to invalidate or otherwise impair the RELY DIP Financing or the liens granted to the Lender with respect to the RELY DIP Financing;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xiii)the DIP Order shall be reversed, stayed or vacated, shall be amended, supplemented or otherwise modified without the prior written consent of the Lender, or shall otherwise cease to be in full force and effect;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xiv)the filing of any plan in the Case by the Borrower, or the confirmation of any plan in the Case, that does not provide for the termination of the commitments under the RELY DIP Financing and the payment in full in cash of all DIP Obligations on or before the effective date of such plan;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xv)the Borrower fails to comply in any material respect with the DIP Order;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xvi)any sale or other disposition of all or a material portion of the Collateral pursuant to section 363 of the Bankruptcy Code other than as permitted by the DIP Orders or pursuant to a transaction that is permitted under the RELY DIP Documents;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xvii)conversion of the Case to a case under Chapter 7 of the Bankruptcy Code or the dismissal of the Case;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xviii)the determination of the Borrower, whether by vote of the Borrower’s board of directors or otherwise, to suspend the operation of the Borrower’s business in the ordinary course, liquidate all or substantially all of the Borrower’s assets or the filing of a motion or other application in the Case seeking authority to do any of the foregoing;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xix)the filing of a plan of reorganization or liquidation by the Borrower that is not acceptable to the Lender or does not provide for the payment in full of the DIP Obligations;

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xx)appointment of a trustee, interim receiver or receiver, or manager or a responsible officer or person or an examiner with enlarged powers (having powers beyond the investigatory and reporting powers set forth in the Bankruptcy Code sections 1106(a)(3) and (4)) in the Case; and

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						(xxi)the Borrower shall take any action, including the filing of an application, seeking or supporting of any of the foregoing or any person other than the Borrower shall do so and such application is not contested in good faith by the Borrower.

				
	
					
						 

					
					
						 

				

		 

		

			18

		

 

	
					
						

					
						REMEDIES:

					
					
						Among other remedies to be specified in the RELY DIP Documents, upon the occurrence and during the continuance of an Event of Default the Lender may suspend the availability of the RELY DIP Financing and, after giving five business days’  notice to the Borrower and the Guarantors (the “Remedies Notice Period”), which notice may be given simultaneously to the Bankruptcy Court, the automatic stay provided in Section 362 of the Bankruptcy Code shall be deemed automatically vacated without further action or order of the Bankruptcy Court, and the Lender, after the Remedies Notice Period, shall have relief from the automatic stay to exercise remedies under the RELY DIP Documents, including relief to foreclose on all or any portion of the security for the RELY DIP Financing, collect accounts receivable and apply the proceeds thereof to the DIP Obligations or otherwise exercise remedies against the Collateral permitted by applicable non-bankruptcy law. During the Remedies Notice Period, the Borrower shall be entitled to seek an emergency hearing before the Bankruptcy Court; provided that the only issue that may be raised at such hearing shall be whether an Event of Default has in fact occurred and is continuing. Subject to section 363(k) of the Bankruptcy Code, the Lender shall also have the authority to credit bid all or a portion of the amounts owed under the RELY DIP Financing, whether pursuant to a sale under section 363 of the Bankruptcy Code, a plan pursuant to section 1129(b) of the Bankruptcy Code or otherwise, but only to the extent the DIP Obligations have been discharged concurrently with the consummation of the transactions in respect of such credit bid.

				
	
					
						 

					
					
						 

				
	
					
						EMERGENCE:

					
					
						In connection with the RELY DIP Financing, Goldman shall commit to purchase on the effective date of the Plan (the “Effective Date”) an amount of common stock in the Reorganized Borrower such that Goldman shall own, or have the right to own, 45-49%2 of such common stock as of such date (after taking into account a distribution of any common stock in the Reorganized Borrower to Goldman on account of the Upfront Fee) for a purchase price of $10.00 million3 (the “Equity Commitment”), subject to the satisfaction of certain conditions to be specified in the RELY DIP Documents, including without limitation, (i) the Bankruptcy Court shall have entered an order, acceptable to Goldman, confirming the Plan and shall have approved all documents relating thereto, which documents shall be acceptable to Goldman; (ii) adoption of new governance documents and approval of related documents by the Reorganized Borrower acceptable to Goldman, including (a) articles of incorporation and by-laws that provide usual and customary rights for transactions of this kind, including among 

				

		
			 
		

		

		
			2Final amount to be determined based on applicable tax limitations.
		

		
			3Purchase price shall be used, among other things, to pay in full any amounts owned to Lender under the RELY DIP Financing. The purchase price amount of $10.0 million assumes that Goldman acquires 49% of the stock in Reorganized Borrower and will be adjusted downward in the event that Goldman acquires less than 49% of the stock.
		

		
			 
		

		
			
		

		

		 

		

			19

		

 

	
					
						

					
						 

					
					
						 

				
	
					
						 

					
					
						other things, (1) requirements for 55%4 shareholder approval for certain transactions (e.g., incurrence or guarantee of any material indebtedness for borrowed money, incurrence of any liens in respect of the same, issuance of common or preferred stock,  making of any prohibited restricted payments), (2) board structure and composition to be agreed, which generally reflects the relative share ownership of Goldman and as reasonably acceptable to Goldman, including the appointment of at least one independent board member, (3) requirement for such independent board member’s approval for certain types of transactions (e.g., material transactions, waiver of stock transfer restrictions described below),  and (4) requirement that any transfer of stock in the Reorganized Borrower by or to a 4.75% holder of such stock (defined as appropriate for purposes of avoiding an “ownership change” of the Reorganized Borrower within the meaning of section 382 of the Internal Revenue Code) shall be null and void ab initio unless specifically approved in writing by board of directors of the Reorganized Borrower (which board may not provide such approval without the prior written consent of Goldman), (b) a new Shareholder Agreement between and among the Lender, the Borrower and the shareholders of the Reorganized Borrower (the “Shareholders”) and a registration rights agreement between and among the Lender and the Reorganized Borrower, that provide usual and customary rights for transactions of this kind, including among other things drag and tag rights, and (c) a right of first refusal to Goldman with respect to any financing for the Borrower’s acquisition activities for the two-year period following the Effective Date (and certain fees to be agreed among the parties prior to the Effective Date); (iii) no material impairment of the assets of the Borrower including with respect to the availability of any tax attributes of the Borrower after the Petition Date; (iv) no Change of Control (to be defined in the RELY DIP Documents); (v) the receipt by Lender of customary opinions of counsel for a transaction of this kind, including an opinion from nationally recognized tax counsel or a “Big 4” accounting firm regarding the reorganization of the Borrower in connection with the Plan; (vi) the absence of any events that would be an Event of Default under the RELY DIP Financing; (vii) the payment in full in cash of all amounts due under the RELY DIP Financing; and (viii) all direct and indirect subsidiaries of Borrower shall either be retained by Borrower or disposed of or abandoned by Borrower in a manner acceptable to Goldman.  In the event that the Reorganized Borrower determines not to proceed with the equity purchase transaction contemplated by this paragraph, Goldman shall be entitled to the Break-Up Fee.

				

		
			 
		

		

		
			4The supermajority voting requirement of 55% for certain transactions assumes that Goldman acquires 49% of stock and will be adjusted downward if Goldman acquires less than 49% of the stock.
		

		
			 
		

		
			
		

		

		 

		

			20

		

 

	
					
						

					
						 

					
					
						 

				
	
					
						WAIVERS AND AMENDMENTS:

					
					
						Customary for financing of this nature.

				
	
					
						 

					
					
						 

				
	
					
						CERTAIN MISCELLANEOUS PROVISIONS:

					
					
						Customary for financing of this nature, including assignments, yield protection (including changes in reserve, capital adequacy, liquidity and capital requirements, illegality, unavailability and other requirements of law), taxes (including the imposition of or changes in certain withholding or other taxes), indemnity and expenses (including “breakage costs”, if any) and funding protections to be set forth in the RELY DIP Documents.

				
	
					
						 

					
					
						 

				
	
					
						TAXES:

					
					
						The RELY DIP Documents will provide that all payments are to be made free and clear of any taxes (other than franchise taxes and taxes on overall net income), imposes, assessments, withholdings or other deductions whatsoever.  

				
	
					
						 

					
					
						 

				
	
					
						GOVERNING LAW:

					
					
						The RELY DIP Documents, and the interpretation, construction and enforcement of the terms thereof, shall be governed by the laws of the State of New York and (to the extent applicable) the Bankruptcy Code.

				
	
					
						 

					
					
						 

				
	
					
						OUT-OF-POCKET EXPENSES:

					
					
						All reasonable and documented (subject to redaction for privileged, confidential or otherwise sensitive information) fees, including legal, accounting and other professional (including financial advisors) fees for the Lender, including no more than one counsel for each relevant material jurisdiction, in connection with the transactions described in this Term Sheet are to be paid by the Borrower without the need for the filing of any applications with the Bankruptcy Court but subject to customary notice requirements to Borrower, the United States Trustee and any official committee.

				
	
					
						 

					
					
						 

				
	
					
						INDEMNITY:

					
					
						Customary indemnity by the Borrower of the Lender and their respective partners, directors, officers, employees, agents and advisors, in respect of the RELY DIP Financing.

				

		
			 
		

		
			
		

		
			

		 

		

			21

		

 

		

		
			Annex 1
		

		
			Guarantors
		

		
			 
		

		
			SGGH, LLC
		

		
			Cosmedicine LLC
		

		
			 
		

		
			 
		

		
			

		 

		

			22

		

 

		

			 

		

		

		
			Annex 2
		

		
			Initial Budget
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Nov

					
					
						Nov

					
					
						Dec

					
					
						Dec

					
					
						Dec

					
					
						Dec

					
					
						Jan

					
					
						Jan

					
					
						Jan

					
					
						Jan

					
					
						Jan

					
					
						Feb

				
	
					
						 

					
					
						DIP Forecast

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(US Dollars)

					
					
						11/24/17

					
					
						12/01/17

					
					
						12/08/17

					
					
						12/15/17

					
					
						12/22/17

					
					
						12/29/17

					
					
						01/05/18

					
					
						01/12/18

					
					
						01/19/18

					
					
						01/26/18

					
					
						02/02/18

					
					
						02/09/18

				
	
					
						 

					
					
						 

					
					
						Week 1

					
					
						Week 2

					
					
						Week 3

					
					
						Week 4

					
					
						Week 5

					
					
						Week 6

					
					
						Week 7

					
					
						Week 8

					
					
						Week 9

					
					
						Week 10

					
					
						Week 11

					
					
						Week 12

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(1)
					
					
						Total Operating Receipts

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

				
	
(2)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(3)
					
					
						Operating Disbursements:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(4)
					
					
						Payroll / Benefits

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(8)
					
					
						Total Payroll / Benefits

					
					
						-

					
(106,797)
					
					
						-

					
(72,096)
					
					
						-

					
(72,096)
					
					
						-

					
(72,096)
					
					
						-

					
					
						-

					
(72,096)
					
					
						-

				
	
(9)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(10)
					
					
						Occupancy

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(16)
					
					
						Total Occupancy

					
					
						-

					
(1,760)
					
					
						-

					
					
						-

					
					
						-

					
(1,760)
					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
(1,760)
					
					
						-

				
	
(17)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(18)
					
					
						SG&A

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(23)
					
					
						Total SG&A

					
(9,400)
					
(74,040)
					
(13,000)
					
(4,000)
					
(1,000)
					
(13,140)
					
(469,400)
					
(26,000)
					
(1,000)
					
(1,000)
					
(23,040)
					
(16,000)
				
	
(24)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(25)
					
					
						Discontinued Operations

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(30)
					
					
						Total Discontinued Operations

					
					
						-

					
(11,000)
					
					
						-

					
					
						-

					
					
						-

					
(11,000)
					
(5,500)
					
					
						-

					
					
						-

					
					
						-

					
(11,000)
					
(5,500)
				
	
(31)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(32)
					
					
						Ordinary Course Professionals

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(39)
					
					
						Ordinary Course Professionals

					$
(33,750)
					
					
						$-

					$
(20,000)
					$
(60,000)
					
					
						$-

					$
(39,000)
					$
(78,300)
					
					
						$-

					$
(60,000)
					$
(39,000)
					$
(90,000)
					
					
						$-

				
	
(40)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(41)
					
					
						Total Operating Disbursements

					$
(43,150)
					$
(193,597)
					$
(33,000)
					$
(136,096)
					$
(1,000)
					$
(136,996)
					$
(553,200)
					$
(98,096)
					$
(61,000)
					$
(40,000)
					$
(197,896)
					$
(21,500)
				
	
(42)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(43)
					
					
						Total Operating Cash Flow

					$
(43,150)
					$
(193,597)
					$
(33,000)
					$
(136,096)
					$
(1,000)
					$
(136,996)
					$
(553,200)
					$
(98,096)
					$
(61,000)
					$
(40,000)
					$
(197,896)
					$
(21,500)
				
	
(44)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(45)
					
					
						Restructuring:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(46)
					
					
						Restructuring (Project Connery)

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
(50,000)
					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
(1,510,000)
					
					
						-

				
	
(47)
					
					
						Total Restructuring

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					$
(50,000)
					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					$
(1,510,000)
					
					
						$-

				
	
(48)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(49)
					
					
						DIP Fees and Interest

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(50)
					
					
						DIP Fees

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
(300,000)
					
					
						-

					
					
						-

				
	
(51)
					
					
						DIP Interest

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
(20,000)
					
					
						-

				
	
(52)
					
					
						DIP Fees and Interest

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					$
(300,000)
					$
(20,000)
					
					
						$-

				
	
(53)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(54)
					
					
						Total Cash Flow - After Restructuring Items

					$
(43,150)
					$
(193,597)
					$
(33,000)
					$
(136,096)
					$
(51,000)
					$
(136,996)
					$
(553,200)
					$
(98,096)
					$
(61,000)
					$
(340,000)
					$
(1,727,896)
					$
(21,500)
				

		
			 
		

		
			
		

		

		 

		

			Exhibit A-1

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Feb

					
					
						Feb

					
					
						Feb

					
					
						Mar

					
					
						Mar

					
					
						Mar

					
					
						Mar

					
					
						Apr

					
					
						Apr

					
					
						Apr

					
					
						Apr

					
					
						May

					
					
						 

					
					
						 

				
	
					
						 

					
					
						DIP Forecast

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(US Dollars)

					
					
						02/16/18

					
					
						02/23/18

					
					
						03/02/18

					
					
						03/09/18

					
					
						03/16/18

					
					
						03/23/18

					
					
						03/30/18

					
					
						04/06/18

					
					
						04/13/18

					
					
						04/20/18

					
					
						04/27/18

					
					
						05/04/18

					
					
						 

					
					
						Total

				
	
					
						 

					
					
						 

					
					
						Week 13

					
					
						Week 14

					
					
						Week 15

					
					
						Week 16

					
					
						Week 17

					
					
						Week 18

					
					
						Week 19

					
					
						Week 20

					
					
						Week 21

					
					
						Week 22

					
					
						Week 23

					
					
						Week 24

					
					
						 

					
					
						11/24 - 5/4

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(1)
					
					
						Total Operating Receipts

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					
					
						 

					
					
						$-

				
	
(2)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(3)
					
					
						Operating Disbursements:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(4)
					
					
						Payroll / Benefits

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(8)
					
					
						Total Payroll / Benefits

					
(72,096)
					
					
						-

					
(72,096)
					
					
						-

					
(62,769)
					
					
						-

					
(62,769)
					
					
						-

					
(62,769)
					
					
						-

					
(62,769)
					
(35,576)
					
					
						 

					
(826,023)
				
	
(9)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(10)
					
					
						Occupancy

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(16)
					
					
						Total Occupancy

					
					
						-

					
					
						-

					
(1,760)
					
					
						-

					
					
						-

					
					
						-

					
(1,760)
					
					
						-

					
					
						-

					
					
						-

					
(1,760)
					
					
						-

					
					
						 

					
(10,560)
				
	
(17)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(18)
					
					
						SG&A

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(23)
					
					
						Total SG&A

					
(1,000)
					
(1,000)
					
(20,240)
					
(16,000)
					
(1,000)
					
(1,000)
					
(62,040)
					
(25,700)
					
(4,000)
					
(1,000)
					
(17,540)
					
(15,700)
					
					
						 

					
(817,240)
				
	
(24)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(25)
					
					
						Discontinued Operations

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(30)
					
					
						Total Discontinued Operations

					
					
						-

					
					
						-

					
(11,000)
					
					
						-

					
					
						-

					
					
						-

					
(11,000)
					
					
						-

					
					
						-

					
					
						-

					
(11,000)
					
					
						-

					
					
						 

					
(77,000)
				
	
(31)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(32)
					
					
						Ordinary Course Professionals

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(39)
					
					
						Ordinary Course Professionals

					$
(60,000)
					$
(39,000)
					
					
						$-

					
					
						$-

					$
(60,000)
					
					
						$-

					$
(39,000)
					$
(4,000)
					$
(60,000)
					
					
						$-

					$
(16,750)
					
					
						$-

					
					
						 

					$
(698,800)
				
	
(40)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(41)
					
					
						Total Operating Disbursements

					$
(133,096)
					$
(40,000)
					$
(105,096)
					$
(16,000)
					$
(123,769)
					$
(1,000)
					$
(176,569)
					$
(29,700)
					$
(126,769)
					$
(1,000)
					$
(109,819)
					$
(51,276)
					
					
						 

					$
(2,429,623)
				
	
(42)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(43)
					
					
						Total Operating Cash Flow

					$
(133,096)
					$
(40,000)
					$
(105,096)
					$
(16,000)
					$
(123,769)
					$
(1,000)
					$
(176,569)
					$
(29,700)
					$
(126,769)
					$
(1,000)
					$
(109,819)
					$
(51,276)
					
					
						 

					$
(2,429,623)
				
	
(44)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(45)
					
					
						Restructuring:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(46)
					
					
						Restructuring (Project Connery)

					
					
						-

					
(545,000)
					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
(540,000)
					
					
						-

					
					
						-

					
					
						-

					
(790,000)
					
					
						-

					
					
						 

					
(3,435,000)
				
	
(47)
					
					
						Total Restructuring

					
					
						$-

					$
(545,000)
					
					
						$-

					
					
						$-

					
					
						$-

					
					
						$-

					$
(540,000)
					
					
						$-

					
					
						$-

					
					
						$-

					$
(790,000)
					
					
						$-

					
					
						 

					$
(3,435,000)
				
	
(48)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(49)
					
					
						DIP Fees and Interest

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(50)
					
					
						DIP Fees

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						-

					
					
						 

					
(300,000)
				
	
(51)
					
					
						DIP Interest

					
					
						-

					
					
						-

					
(40,000)
					
					
						-

					
					
						-

					
					
						-

					
(40,000)
					
					
						-

					
					
						-

					
					
						-

					
(40,000)
					
					
						-

					
					
						 

					
(140,000)
				
	
(52)
					
					
						DIP Fees and Interest

					
					
						$-

					
					
						$-

					$
(40,000)
					
					
						$-

					
					
						$-

					
					
						$-

					$
(40,000)
					
					
						$-

					
					
						$-

					
					
						$-

					$
(40,000)
					
					
						$-

					
					
						 

					$
(440,000)
				
	
(53)
					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
(54)
					
					
						Total Cash Flow - After Restructuring Items

					$
(133,096)
					$
(585,000)
					$
(145,096)
					$
(16,000)
					$
(123,769)
					$
(1,000)
					$
(756,569)
					$
(29,700)
					$
(126,769)
					$
(1,000)
					$
(939,819)
					$
(51,276)
					
					
						 

					$
(6,304,623)
				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			24

		

 

		

		
			Exhibit B
		

		
			Conditions Precedent to the Closing Date
		

		
			The obligation of the Commitment Party to provide the DIP Financing and to fund the Equity Commitment will be subject to customary conditions precedent, including, without limitation, the following conditions precedent:
		

			
	
			
				 (i)
			

			
	
			
			All public statements and pleadings filed by Borrower and the Alloy Debtors after the date hereof relating to the RELY DIP Financing and the Borrower’s assets and business plan shall be in form and substance acceptable to the Commitment Party.

			
	
			
				 (ii)
			

			
	
			
			Entry by the Bankruptcy Court of the DIP Order, which DIP Order approves the transactions and fees contemplated herein and grants superpriority administrative expense claim status and liens on the Collateral, as described in the Term Sheet, and such DIP Order shall be in form and substance acceptable to the Commitment Party and shall not have been reversed, modified, amended, stayed, vacated or subject to any pending appeal.

			
	
			
				 (iii)
			

			
	
			
			No Material Adverse Change shall have occurred since the date hereof, other than the events typically resulting from the filing of Chapter 11 cases, as determined by the Commitment Party in its reasonable business judgment.

			
	
			
				 (iv)
			

			
	
			
			The Commitment Party shall have received the Budget, which shall be in the form and substance acceptable to the Commitment Party, and, as of the Closing Date, any variation from the Budget shall not exceed 10% on a cumulative basis from the Budget attached to the DIP Term Sheet excluding any cash receipts from any variance calculations.

			
	
			
				 (v)
			

			
	
			
			The representations and warranties of the Borrower to the Commitment Party, including without limitation those set forth in Exhibit E hereto, shall be true and correct in all material respects.

			
	
			
				 (vi)
			

			
	
			
			No default or Event of Default under the DIP Order shall have occurred or be continuing.

			
	
			
				 (vii)
			

			
	
			
			The Borrower and Guarantors shall be in compliance in all respects with the DIP Order.

			
	
			
				 (viii)
			

			
	
			
			Execution and delivery of the RELY DIP Documents (including without limitation control agreements with respect to all cash accounts of the Borrower and Guarantors) in form and substance satisfactory to the Commitment Party, and the satisfaction of the conditions precedent contained therein.

			
	
			
				 (ix)
			

			
	
			
			All necessary governmental, shareholder and third party approvals, consents, licenses, franchises and permits in connection with the RELY DIP Facility and the operation by the Borrower and Guarantors of their businesses shall have been obtained and remain in full force and effect.

			
	
			
				 (x)
			

			
	
			
			The Borrower shall have paid to the Commitment Party all fees and expenses then owing to the Commitment Party in connection with this Commitment Letter and the RELY DIP Facility.

			
	
			
				 (xi)
			

			
	
			
			The Commitment Party shall be satisfied that it has been granted, and still continues to hold, a perfected superpriority lien on all collateral of the Borrower and Guarantors, as described in the RELY DIP Documents, on and after the Closing Date, which collateral shall not be subject to any other liens, except existing liens acceptable to the Commitment Party.

		
			
		

		
			

		 

		

			Exhibit B-1

		

 

		

			
	
			
				 (xii)
			

			
	
			
			The cash balance of the Borrower shall be no less than $950,000.

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit B-2

		

 

		

		
			Exhibit C
		

		
			[Reserved]
		

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit C-1

		

 

		

		
			Exhibit D
		

		
			In the event that Goldman Sachs, or any of the partners, directors or equivalents, agents, employees and controlling persons or entities (if any), as the case may be, of Goldman Sachs (each, an “Indemnified Person”) becomes involved in any capacity in any action, proceeding or investigation brought by or against any person or entity, including any of your affiliates, shareholders, partners, members or other equity holders of the Borrower or any of its affiliates, but excluding any Indemnified Person, in connection with or as a result of either this arrangement or any matter referred to in this Commitment Letter, the Borrower and/or Guarantors agrees to periodically reimburse such Indemnified Person for its legal and other expenses (including the cost of any investigation and preparation) incurred in connection therewith. The Borrower also agrees to indemnify and hold each Indemnified Person harmless against any and all losses, claims, damages or liabilities to any such person or entity in connection with or as a result of either this arrangement or any matter referred to in the Commitment Letter (whether or not such investigation, litigation, claim or proceeding is brought by you, your equity holders or creditors, but excluding any Indemnified Person, and whether or not any such indemnified person is otherwise a party thereto and without regard to the exclusive or contributory negligence of any such Indemnified Person), except to the extent that such loss, claim, damage or liability has been found by a final, non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of an Indemnified Person in performing the services that are the subject of the Commitment Letter or from the Commitment Party’s breach of this Commitment Letter.  If for any reason the foregoing required indemnification is unavailable to any Indemnified Person or insufficient to hold it harmless, then the Borrower will contribute to the amount paid or payable by such Indemnified Person as a result of such loss, claim, damage, penalty, expense or liability in such proportion as is appropriate to reflect the relative economic interests of (i) the Borrower and the Guarantors and their respective affiliates, shareholders, partners, members or other equity holders on the one hand and (ii) such Indemnified Person on the other hand in the matters contemplated by the Commitment Letter as well as the relative fault of (x) the Borrower and the Guarantors and their respective affiliates, shareholders, partners, members or other equity holders on the one hand and (y) such Indemnified Person with respect to such loss, claim, damage, penalty, expense or liability and any other relevant equitable considerations.  The reimbursement, indemnity and contribution obligations of the Borrower under this paragraph will be in addition to any liability which the Borrower may otherwise have, will extend upon the same terms and conditions to any affiliate of any Indemnified Person and the partners, members, directors, agents, employees and controlling persons or entities (if any), as the case may be, of such Indemnified Person and any such affiliate, and will be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Borrower, any Indemnified Person, any such affiliate and any such person. The Borrower also agrees that neither any Indemnified Person nor any of such affiliates, partners, members, directors, agents, employees or controlling persons will have any liability based on its or their exclusive or contributory negligence or otherwise to the Borrower or any person or entity asserting claims on behalf of or in right of the Borrower or any other person or entity in connection with or as a result of either this arrangement or any matter referred to in the Commitment Letter, except in the case of the Borrower to the extent that any losses, claims, damages, penalties, liabilities or expenses incurred by the Borrower or its affiliates, shareholders, partners or other equity holders have been found by a final, non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of an Indemnified Party in performing the services that are the subject of the Commitment Letter; provided,  however, that in no event will such Indemnified Person or such other parties have any liability for any indirect, consequential, special or punitive damages in connection with or as a result of such Indemnified Person’s or such other parties’ activities related to the Commitment Letter.  The provisions of this paragraph will survive any termination or completion of the arrangement provided by the Commitment Letter.
		

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit D-1

		

 

		

		
			Exhibit E
		

		
			Specified Representations and Warranties
		

		
			The following representations and warranties will be applicable to the DIP Financing and will also be incorporated into the RELY DIP Documents and the Equity Commitment (subject to certain exceptions, qualifications and carveouts to be set forth therein):
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Financial Statements; No Change.  (a) The audited consolidated balance sheet of the Borrower and its subsidiaries (on a combined basis) (the “Financial Statement Entities”) dated December 31, 2016, and the related audited consolidated statements of income and of cash flows for the fiscal year of the Financial Statement Entities (on a combined basis) ended on that date (i) were prepared in accordance with GAAP applied consistently throughout the period reflected therein and with prior periods, except as disclosed therein, and (ii) fairly present in all material respects the consolidated financial condition of the Financial Statement Entities (on a combined basis) as of the date thereof and their consolidated results of operations and consolidated cash flows for the period covered thereby; (b) The unaudited consolidated balance sheets of the Financial Statement Entities(on a combined basis) dated September 30, 2017, and the related unaudited consolidated statements of income and of cash flows for the relevant quarterly period of the 2017 fiscal year of such Financial Statement Entities ended on that date (i) were prepared in accordance with GAAP (except that such financial statements may include abbreviated notes) applied consistently throughout the period reflected therein and with prior periods, except as disclosed therein, and (ii) fairly present in all material respects the consolidated financial condition of the Financial Statement Entities (on a combined basis) as of the date thereof and their consolidated results of operations and consolidated cash flows for the period covered thereby.  (c) Since November 17, 2017, there has been no development or event that has had or could reasonably be expected to have a Material Adverse Change.

		
			 
		

			
	
			
				 2.
			

			
	
			
			Existence; Compliance with Law.  The Borrower and each of the Guarantors is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, except for absences of such good standing in respect of such Subsidiaries as could not, in the aggregate, reasonably be expected to have a Material Adverse Change, (b) has the organizational power and authority and the legal right, to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, except for absences of such power, authority or right as could not, in the aggregate, reasonably be expected to have a Material Adverse Change, and (c) is in compliance with all requirements of law, including any laws that require the maintenance and effect of any permits or licenses, except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Change.

		
			 
		

			
	
			
				 3.
			

			
	
			
			Power; Authorization; Enforceable Obligation.  The Borrower and each of the Guarantors has the organizational power and authority, and the legal right to make, deliver and perform the RELY DIP Documents. The Borrower and each of the Guarantors has taken all necessary action under its organizational documents and material debt agreements (other than as a result of the commencement of the Case) to authorize the execution, delivery and performance of the RELY DIP Documents. No consent or authorization of, filing with, notice to or other act by or in respect of, any governmental authority or any other person is required in connection with the RELY DIP Documents or with the execution, delivery, performance, validity or enforceability of the RELY DIP Documents. The RELY DIP Documents have been duly executed and delivered on behalf of the Borrower and each of the Guarantors. The RELY DIP Documents upon execution will constitute, a legal, valid and binding obligation of the Borrower and each of the Guarantors, 

		
			
		

		
			

		 

		

			Exhibit E-1

		

 

		

		
			enforceable against the Borrower and each of the Guarantors in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			No Legal Bar.  The execution, delivery and performance of the RELY DIP Documents, the extension of credit thereunder and the use of proceeds thereof will not violate law or any material contractual obligation, including any post-petition agreement, of the Borrower and each of the Guarantors and will not result in, or require, the creation or imposition of any lien on any of their respective properties or revenues pursuant to any requirement of law or any such contractual obligation, other than RELY DIP Liens created under the RELY DIP Documents and the DIP Orders. No law or contractual obligation applicable to the Borrower and each of the Guarantors could reasonably be expected to have a Material Adverse Change.

		
			 
		

			
	
			
				 5.
			

			
	
			
			Litigation.  Other than the Case, no litigation, investigation or proceeding of or before any arbitrator or governmental authority (not stayed by reason of the Case) is pending or, to the knowledge of the Borrower and each of the Guarantors, threatened by or against the Borrower and each of the Guarantors or against any of their respective properties or revenues (a) with respect to any of the RELY DIP Documents or any of the transactions contemplated hereby or thereby, or (b) that could reasonably be expected to have a Material Adverse Change.

		
			 
		

			
	
			
				 6.
			

			
	
			
			Claims.  The following have been disclosed, in writing, to the Commitment Party, and such disclosure is accurate in all material respects: (i) all claims (as such term is defined in 11 U.S.C. § 101(5)) of unaffiliated third parties against the Borrower or Guarantors and (ii) all indebtedness, liabilities or guarantees of any obligations of the Guarantors to any other person or entity, including each of the Alloy Debtors.  Excluding ordinary course expenses related to intercompany services2, none of the Borrower’s affiliates that have filed Chapter 11 cases (collectively, the “Alloy Debtors”) have any claims (whether asserted or not asserted) against the Borrower or any of the Guarantors.  Neither the Borrower nor any Guarantor is aware of any claim of a creditor of the Alloy Debtors against the Borrower or a Guarantor.

		
			 
		

			
	
			
				 7.
			

			
	
			
			No Breach of Covenant.  No breach of any affirmative covenant attached in Exhibit F or any negative covenant attached in Exhibit G has occurred since the entry of the DIP Order or is continuing.

		
			 
		

			
	
			
				 8.
			

			
	
			
			No Default.  Other than as a result of the commencement of the Case, none of the Borrower or any of the Guarantors is in default under or with respect to any of its contractual obligations in any respect that could reasonably be expected to have a Material Adverse Change. No default or event of default under the RELY DIP Facility has occurred and is continuing.

		
			 
		

			
	
			
				 9.
			

			
	
			
			Ownership of Property.  The Borrower and each of the Guarantors has title in fee simple to, or a valid leasehold interest in, all its material real property, and good title to, or a valid leasehold interest in, all its other material property, and none of such property is subject to any lien except as permitted by the RELY DIP Documents.

		
			 
		

			
	
			
				 10.
			

			
	
			
			Intellectual Property.  The Borrower and each of the Guarantors owns, or is licensed to use, all Intellectual Property necessary for the conduct of its business in all material respects as currently conducted. No material claim has been asserted and is pending by any person

		

		
			2NTD:  Subject to Commitment Party’s receipt and review of information regarding the definition and scope of these intercompany services.
		

		
			
		

		
			

		 

		

			Exhibit E-2

		

 

		

		
			challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor does the Borrower nor any Guarantor know of any valid basis for any such claim. The use of Intellectual Property by the Borrower and each of the Guarantors does not infringe on the rights of any person in any material respect.
		

		
			 
		

			
	
			
				 11.
			

			
	
			
			Taxes.  The Borrower and each of the Guarantors has timely filed or caused to be timely filed all foreign, national, state and local income and other material tax returns that are required to be filed (taking into account all proper extensions) and has timely paid all income Taxes and other material taxes required to be paid and paid any assessments made against it or any of its property and all other income taxes and other material taxes, fees or other charges imposed on it or any of its property by any governmental authority (other than any taxes, fees or other charges the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the Borrower and each of the Guarantors, as the case may be); no tax lien has been filed, and, to the knowledge of the Borrower or any Guarantor, no claim is being asserted, with respect to any tax, fee or other charge. Under the laws of its relevant jurisdiction it is not necessary that any stamp, registration, notarial or similar taxes or fees be paid on or in relation to the RELY DIP Documents or the transactions contemplated by the RELY DIP Documents.

		
			 
		

			
	
			
				 12.
			

			
	
			
			Environmental Matters.  Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Change:  (a) the facilities and properties owned, leased or operated by the Borrower and each of the Guarantors (the “Properties”) do not contain, and have not previously contained, any materials of environmental concern in amounts or concentrations or under circumstances that constitute or constituted a violation of, or could give rise to liability under, any environmental law; (b) has received or is aware of any notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with environmental laws with regard to any of the Properties, nor do the Borrower or any of the Guarantors have knowledge or reason to believe that any such notice will be received or is being threatened; and (c) none of the Borrower or any of the Guarantors has assumed any liability of any other person under the environmental laws.

		
			 
		

			
	
			
				 13.
			

			
	
			
			Accuracy of Information. No statement or information, including information concerning the Borrower’s tax attributes (including the amount of net operating loss carryforwards of the Borrower and Guarantors, any limitations on the use thereof under section 382 of the Internal Revenue Code, and the degree to which past transactions could contribute to an “ownership change” of the Borrower within the meaning of section 382 of the Internal Revenue Code), contained in any RELY DIP Document, or any other document, certificate or statement furnished by or on behalf of the Borrower or any of the Guarantors to the Commitment Party, or any of them, for use in connection with the transactions contemplated by the RELY DIP Documents, contained as of the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein not misleading.

		
			 
		

			
	
			
				 14.
			

			
	
			
			Disclosure and Affirmation of Budget.  The Borrower has not failed to disclose any material assumptions or liabilities or any other material information with respect to the Budget or the accuracy of such Budget.  The Borrower has provided a written affirmation made by an appropriate financial officer of the Borrower to the Commitment Party affirming the reasonableness of each of the assumptions and projections in the Budget.

		
			
		

		
			

		 

		

			Exhibit E-3

		

 

		

			
	
			
				 15.
			

			
	
			
			AML Laws; Anti-corruption Laws and Sanctions.  The Borrower and each of the Guarantors and has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower and each of other Guarantors and their respective directors, officers, employees and agents with anti- corruption laws and applicable sanctions. The Borrower and each of the Guarantors, any of their respective subsidiaries or, to the knowledge of either the Borrower or any Guarantor, any of their respective directors or officers, or any of their respective employees or affiliates, or (b) to the knowledge of either the Borrower or any Guarantor, any agent of the Borrower or Guarantors or other of its affiliates that will act in any capacity in connection with or benefit from the RELY DIP Facility, (i) is not a sanctioned person, (ii) is in compliance in all material respects with anti-corruption laws and sanctions, (iii) to the extent applicable, is in compliance in all material respects with anti-money laundering laws. No extension of credit under the RELY DIP Facility, use of proceeds thereof by the Borrower or any of other Guarantors or their respective subsidiaries or other transaction contemplated by the RELY DIP Documents will cause a violation of AML Laws, Anti-Corruption Laws or applicable Sanctions. The Borrower and each of the Guarantors represents that neither it nor any of its subsidiaries, or, to its knowledge, its parent company or any other of its affiliates has engaged in or intends to engage in any unlawful dealings or transactions with, or for the benefit of, any sanctioned person or with or in any sanctioned country.

			
	
			
				 16.
			

			
	
			
			Security Interest.  (a) Upon entry of the DIP Order, such DIP Order shall be effective to create in favor of the Commitment Party, for the benefit of the Commitment Party, a legal, valid, enforceable and perfected security interest in the Collateral of the Borrower and proceeds thereof, as contemplated thereby, as described in the RELY DIP Documents. (b) The provisions of the RELY DIP Documents shall be effective to create in favor of the Commitment Party, for the benefit of the Commitment Party, a legal, valid, enforceable and perfected security interest and hypothecate in the Collateral3 of the Borrower and the Guarantors and proceeds thereof, contemplated thereby, as described in the RELY DIP Documents.

			
	
			
				 17.
			

			
	
			
			DIP Financing Orders.  (a) At all times after its entry by the Bankruptcy Courts, the DIP Order, is in full force and effect, and has not been vacated, reversed, terminated, stayed modified or amended in any manner without the reasonable written consent of the Commitment Party  (b) Upon the occurrence of the maturity date (whether by acceleration or otherwise) of any of the obligations under the RELY DIP Facility, the Commitment Party shall, subject to the provisions of the “Events of Default” section in the Term Sheet and the applicable provisions of the DIP Order, be entitled to immediate payment of such obligations, and to enforce the remedies provided for under the RELY DIP Documents in accordance with the terms thereof and such DIP Order, as applicable, without further application to or order by the Bankruptcy Court. (c) If the DIP Order is the subject of a pending appeal in any respect, none of such DIP Order, the extension of credit or the performance by the Borrower of any of its obligations under any of the RELY DIP Documents shall be the subject of a presently effective stay pending appeal. The Borrower and the Commitment Party shall be entitled to rely in good faith upon the DIP Order, notwithstanding objection thereto or appeal therefrom by any interested party.    The Borrower and the Guarantors shall be permitted and required to perform their  respective obligations in compliance with the RELY DIP Documents notwithstanding any such objection or appeal unless the DIP Order has been stayed by a court of competent jurisdiction.

			
	
			
				 18.
			

			
	
			
			Superpriority Claims; Liens.  Upon entry of the DIP Order, such DIP Order and the RELY DIP Loan Documents are sufficient to provide the DIP superpriority claims of the Commitment Party and security interests and liens on the Collateral of the Borrower described in, and with the priority provided in the RELY DIP Documents.

		
			 
		

		

		
			3NTD: The definition of Collateral in the definitive documentation shall not include any real property or mortgages (excluding securities) in which the Guarantors have bare legal title.
		

		
			
		

		
			

		 

		

			Exhibit E-4

		

 

		

			
	
			
				 19.
			

			
	
			
			Assets of Guarantors.  All material assets of the Guarantors have been disclosed, in writing, to the Commitment Party, and such disclosure is accurate in all material respects.

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit E-5

		

 

		

		
			Exhibit F
		

		
			 
		

		
			Affirmative Covenants
		

		
			 
		

		
			The following affirmative covenants of the Borrower and the Guarantors will be applicable to the DIP Financing and will also be incorporated into the RELY DIP Documents (subject to certain exceptions, qualifications and carveouts to be set forth in the applicable RELY DIP Documents):
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Preservation and maintenance of existence, business and properties.

		
			 
		

			
	
			
				 2.
			

			
	
			
			Payment of income and other material taxes and other claims.

		
			 
		

			
	
			
				 3.
			

			
	
			
			Timely preparation of all financial statements, reports, and related documents and public filings.

		
			 
		

			
	
			
				 4.
			

			
	
			
			The proceeds of the RELY DIP Financing shall be used for purposes set forth in the “Use of Proceeds” section in the Term Sheet.

		
			 
		

			
	
			
				 5.
			

			
	
			
			Prompt delivery of litigation and other notices, including, but not limited to, with respect to (i) the occurrence of a default or Event of Default under the RELY DIP Documents of the Alloy Debtors debtor-in-possession financing agreements, (ii) after the Petition Date, any default under any contractual obligation of the Borrower or any of the Guarantors or litigation, investigation or proceeding that may exist at any time between the Borrower and any of the Guarantors and any governmental authority, that in either case, if not cured or if adversely determined, as the case may be, could reasonably be expected to have a Material Adverse Change, (iii) after the Petition Date, the commencement of any litigation or proceeding affect the Borrower or any of the Guarantors (1) in which the amount involved is $100,000 or more and not covered by insurance, (2) in which material injunctive or similar relief is sought or (3) which relates to any RELY DIP Document, (iv) any developments or event that has had or could reasonably be expected to have a Material Adverse Change and (v) such other information (financial or otherwise) with respect to the Borrower or any of the Guarantors as the Commitment Party may reasonably request.

		
			 
		

			
	
			
				 6.
			

			
	
			
			Compliance with laws and regulations.

		
			 
		

			
	
			
				 7.
			

			
	
			
			Maintenance of records, access to properties and inspections.

		
			 
		

			
	
			
				 8.
			

			
	
			
			Compliance with environmental laws.

		
			 
		

			
	
			
				 9.
			

			
	
			
			Provision of additional collateral, guarantees and mortgages; further assurances.

		
			 
		

			
	
			
				 10.
			

			
	
			
			Compliance in all respects, after entry thereof, with all requirements and obligations set forth in the DIP Order, “first day” orders and “second day” orders, as each order is amended and in effect from time to time in accordance with this Commitment and the RELY DIP Documents, as applicable.

		
			 
		

			
	
			
				 11.
			

			
	
			
			Bi-weekly update calls for the Commitment Party and its advisors.

		
			 
		

			
	
			
				 12.
			

			
	
			
			Borrower and Guarantors shall use its reasonable best efforts to enter into the RELY DIP Documents.

		
			
		

		
			

		 

		

			Exhibit F-1

		

 

		

			
	
			
				 13.
			

			
	
			
			Borrower shall deliver such other information (financial or otherwise, including detailed quarterly budgets, which shall be subject in all respects to the Commitment Party’s approval), as the Commitment Party may reasonably request.

		
			 
		

			
	
			
				 14.
			

			
	
			
			Variation from the Budget shall not exceed 10%, provided that (i) all variance calculations shall exclude any cash receipts and (ii) any proceeds of the DIP Financing that are available under the Budget but not used in a previous week shall be available in subsequent weeks notwithstanding a variance exceeding the permitted amount.

		
			 
		

			
	
			
				 15.
			

			
	
			
			Borrower shall deliver in advance to the Commitment Party all (i) draft pleadings and public announcements relating to the Borrower’s assets (including without limitation any tax attributes) and business plan and consider the Commitment Party’s comments thereto in good faith, and (ii) pleadings, motions, applications, judicial information, financial information and other documents filed by or on behalf of the Borrower or any of the Guarantors with the Bankruptcy Court, or distributed by or on behalf of any of the Borrower or any of the Guarantors to any appointed in the Case.

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit F-2

		

 

		

		
			Exhibit G
		

		
			 
		

		
			Negative Covenants
		

		
			 
		

		
			The following negative covenants of the Borrower and the Guarantors will be applicable to the DIP Financing and will also be incorporated into the RELY DIP Documents (subject to certain exceptions, qualifications and carveouts to be set forth in the applicable RELY DIP Documents):
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			No incurrence of indebtedness for borrowed money shall be permitted.

		
			 
		

			
	
			
				 2.
			

			
	
			
			Limitations on liens, except that the following liens shall be permitted:

		
			 
		

			
	
			
				 a.
			

			
	
			
			liens for taxes not yet due;

		
			 
		

			
	
			
				 b.
			

			
	
			
			leases, licenses, subleases or sublicenses granted to others in the ordinary course of business which do not secure any indebtedness; and

		
			 
		

			
	
			
				 c.
			

			
	
			
			liens securing the obligations under the RELY DIP Financing.

		
			 
		

			
	
			
				 3.
			

			
	
			
			No sale and leaseback transactions shall be permitted.

		
			 
		

			
	
			
				 4.
			

			
	
			
			No investments, loans and advances (collectively, the “Investments”) shall be permitted, except any Investments necessary in connection with the reorganization subject to the consent of the Commitment Party (not to be unreasonably withheld or delayed.

		
			 
		

			
	
			
				 5.
			

			
	
			
			Limitations on mergers, consolidations, sales of assets, including any sale of the assets owned by the Guarantors, (“Dispositions”) and acquisitions, except that the following shall be permitted:

		
			 
		

			
	
			
				 a.
			

			
	
			
			the Plan subject to the consent of the Commitment Party (not to be unreasonably withheld or delayed) and, to the extent permitted by the Bankruptcy Court, any other corporate reorganization;

		
			 
		

			
	
			
				 b.
			

			
	
			
			Specified transactions detailed in the definitive documentation that would not trigger a mandatory prepayment, subject to the consent of the Commitment Party.

		
			 
		

			
	
			
				 c.
			

			
	
			
			any other Dispositions permitted by the applicable order of the Bankruptcy Court and not otherwise prohibited by the RELY DIP Financing; and

		
			 
		

			
	
			
				 d.
			

			
	
			
			Dispositions made to comply with any order of any governmental authority or any applicable laws.

		
			 
		

			
	
			
				 6.
			

			
	
			
			No dividends and distributions shall be permitted, except for any dividend or distribution by a Guarantor to the Borrower.

		
			 
		

			
	
			
				 7.
			

			
	
			
			No action to materially impair the assets of the Borrower or its subsidiaries, including with respect to the availability of any tax attributes of the Borrower or its subsidiaries, shall be permitted without the prior written consent of the Commitment Party.

		
			 
		

			
	
			
				 8.
			

			
	
			
			Limitations on transactions with affiliates, except for:

		
			
		

		
			

		 

		

			Exhibit G-1

		

 

		

			
	
			
				 a.
			

			
	
			
			any transaction among Borrower and the Guarantors;

		
			 
		

			
	
			
				 b.
			

			
	
			
			ordinary course administration and transactions by the Borrower of the Alloy Debtors;

		
			 
		

			
	
			
				 c.
			

			
	
			
			any transactions in connection with the reorganization of the Borrower, subject to the consent of the Commitment Party (not to be unreasonably withheld or delayed);

		
			 
		

			
	
			
				 d.
			

			
	
			
			transactions in existence on the DIP Closing Date and any similar transaction among Borrower and the Guarantors as consistent with past practice; and

		
			 
		

			
	
			
				 e.
			

			
	
			
			any transaction on terms that are no less favorable to the Borrower or any of the Guarantors than might be obtained at the time in a comparable arm’s length transaction from a person who is not an affiliate.

		
			 
		

			
	
			
				 9.
			

			
	
			
			No payment and modification of subordinated or other prepetition indebtedness of the Borrower or Guarantors, except in the case of prepetition debt, pursuant to “first day” or other orders entered by the Bankruptcy Court that are in form and substance satisfactory to the Commitment Party.

		 

		

			Exhibit G-2Exhibit 4.6

 

NEITHER THIS SECURITY
NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

PLACEMENT AGENT WARRANT TO PURCHASE ORDINARY
SHARES 

REPRESENTED BY AMERICAN DEPOSITARY SHARES

 

CELLECT BIOTECHNOLOGY LTD.

 

	Warrant No.: 2017 - September- PA _____	Initial Exercise Date: September 11, 2017

  

Number of American Depositary Shares: ________________

 

THIS WARRANT TO PURCHASE
ORDINARY SHARES REPRESENTED BY AMERICAN DEPOSITARY SHARES (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 September 11, 2017 (the “Initial Exercise Date”)
and on or prior to the close of business on the one-year anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Cellect Biotechnology Ltd., an Israeli limited company (the “Company”),
up to ______ Ordinary Shares (the “Warrant Shares”) represented by ________ American Depositary Shares (“ADSs”),
as subject to adjustment hereunder (the “Warrant ADSs”). The purchase price of one Warrant ADS shall be equal
to the Exercise Price, as defined in Section 2(b). This Warrant is issued pursuant to that certain Engagement Agreement, dated
September 6, 2017, between the Company and H.C. Wainwright & Co., LLC.

 

Section 1.Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated September 7, 2017, 2017, among the Company and the purchasers signatory thereto.

 

    	 	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 it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) and the Depositary of a duly executed facsimile copy (or .pdf copy via e-mail) of the Notice
of Exercise in the form annexed hereto. Within the earlier of (i) three (3) Trading Days and (ii) the number of Trading Days comprising
the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid the Holder shall
deliver the aggregate Exercise Price of the Warrant ADSs thereby purchased by wire transfer 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. No ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice
of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of the Warrant ADSs 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 ADSs available hereunder shall have the effect of lowering the outstanding number of
Warrant ADSs purchasable hereunder in an amount equal to the applicable number of Warrant ADSs purchased. The Holder and the Company
shall maintain records showing the number of Warrant ADSs purchased and the date of such purchases. The Company shall deliver any
objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance
of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion
of the Warrant ADSs hereunder, the number of Warrant ADSs 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 ADS under this Warrant shall be $10.125, subject to adjustment hereunder (the “Exercise
Price”).

 

c) Cashless
Exercise. If at any time after the Initial Exercise Date there is no effective Registration Statement registering, or no current
prospectus available for, the resale of the Warrant ADSs by 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 a number of Warrant
ADSs equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A)  =	the last VWAP immediately preceding the time of delivery of the Notice of Exercise giving rise to the applicable “cashless exercise”, as set forth in the applicable Notice of Exercise (to clarify, the “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used in this calculation);
	 	 	 
	 	(B)  =	the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)  =	the number of Warrant ADSs that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

    	 	2	 

     

    

 

If
Warrant ADSs 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 ADSs shall
take on the 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 ADSs. The Company agrees not to take any position
contrary to this Section 2(c).

 

		d)	Mechanics of Exercise.

 

		i.	Delivery of Warrant ADSs Upon Exercise. Within 1 Trading day of the date that a Notice of
Exercise is delivered to the Company, the Company shall deposit the Warrant Shares subject to such exercise with The Bank of New
York Mellon, the Depositary for the ADSs (the “Depositary”) and instruct the Depositary to credit the account
of the Holder’s prime broker with The Depository Trust Company through its Deposit/Withdrawal At Custodian system (“DWAC”)
if the Depositary is then a participant in such system and either (A) there is an effective registration statement registering
for resale of the Warrant Shares represented by the Warrant ADSs by the Holder or (B) the Warrant Shares represented by the Warrant
ADSs are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 and the Warrant ADSs
have been sold by the Holder prior to the Warrant ADS Delivery Date (as defined below), and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise, by the date that is the earlier of (i) three (3) Trading Days and (ii)
the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise
(such date, the “Warrant ADS Delivery Date”). If the Warrant ADSs can be delivered via DWAC, then in addition
to the delivery of the Warrant Shares to the Depositary, within 2 Trading Days of the applicable exercise, the Depositary shall
have received from the Company any legal opinions or other documentation required by the Depositary to deliver such ADSs without
legend and, if applicable and requested by the Company prior to the Warrant ADS Delivery Date, the Depositary shall have received
from the Holder a confirmation of sale of the Warrant ADSs (provided the requirement of the Holder to provide a confirmation as
to the sale of Warrant ADSs shall not be applicable to the issuance of unlegended Warrant ADS’s upon a cashless exercise
of this Warrant if the Warrant ADSs are then eligible for resale pursuant to Rule 144(b)(1)). The Warrant Shares represented by
the Warrant ADSs 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 the beneficial owner of such Warrant Shares represented by the Warrant ADSs 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 Warrant ADSs having
been paid. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a
number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date
of delivery of the Notice of Exercise.

 

    	 	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 ADSs, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant ADSs 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 the Warrant ADSs pursuant to Section 2(d)(i)
by the Warrant ADS 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 ADSs or Warrant Shares 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 ADSs and the restoration of Holder’s
right to acquire such Warrant ADSs 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 ADSs Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Depositary to deliver to the Holder the Warrant ADSs in accordance with the provisions of Section
2(d)(i) above pursuant to an exercise on or before the Warrant ADS 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,
ADSs to deliver in satisfaction of a sale by the Holder of the Warrant ADSs 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 ADSs so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant ADSs 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 ADSs for which such exercise was not honored
(in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of ADSs that would have been issued
had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases ADSs
having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of ADSs 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 ADSs upon
exercise of the Warrant as required pursuant to the terms hereof.

 

    	 	4	 

     

    

 

v. No
Fractional Shares or Scrip. No fractional Warrant Shares or Warrant ADSs shall be issued upon the exercise of this Warrant.
As to any fraction of an ADS 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 ADS.

 

vi. Charges,
Taxes and Expenses. Issuance of Warrant ADSs shall be made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of Warrant ADSs, all of which taxes and expenses shall be paid by the Company, and
such Warrant ADSs 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 ADSs 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 Depositary fees required for same-day processing of any Notice of Exercise and all fees to the Depository
Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery
of the Warrant Shares.

 

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

 

    	 	5	 

     

    

 

e) Holder’s
Exercise Limitations. Notwithstanding anything to the contrary contained herein, the Company shall not effect the exercise
of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to the
terms and conditions of this Warrant and any such exercise shall be null and void and treated if never made, to the extent that
after giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially own
in excess of 4.99% (the “Maximum Percentage”) of the number of Ordinary Shares outstanding immediately after
giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Ordinary Shares beneficially owned
by the Holder and the other Attribution Parties shall include the number of Ordinary Shares underlying ADSs held by the Holder
and all other Attribution Parties plus the number of Ordinary Shares underlying ADSs issuable upon exercise of this Warrant with
respect to which the determination of such sentence is being made, but shall exclude the number of Ordinary Shares underlying ADSs
which would be issuable upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder
or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise
analogous to the limitation contained in this Section 2(e). For purposes of this Section 2(e), beneficial ownership shall be calculated
in accordance with Section 13(d) of the Exchange Act. For purposes of this Warrant, in determining the number of Ordinary Shares
underlying ADSs the Holder may acquire upon the exercise of this Warrant without exceeding the Maximum Percentage, the Holder may
rely on the number of Ordinary Shares as reflected in (x) the Company's most recent Annual Report on Form 20-F, Current Report
on Form 6-K or other public filing with the Commission, as the case may be, (y) a more recent public announcement by the Company
or (3) any other written notice by the Company setting forth the number of Ordinary Shares outstanding (the “Reported
Outstanding Share Number”). If the Company receives an Exercise Notice from the Holder at a time when the actual number
of outstanding Ordinary Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing
of the number of Ordinary Shares then outstanding and, to the extent that such Exercise Notice would otherwise cause the Holder's
beneficial ownership, as determined pursuant to this Section 2(e), to exceed the Maximum Percentage, the Holder must notify the
Company of a reduced number of Warrant ADSs to be purchased pursuant to such Exercise Notice (the number of shares by which such
purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable, the Company shall return
to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason at any time, upon the written or oral
request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail to the
Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and any other
Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance
of Ordinary Shares to the Holder upon exercise of this Warrant results in the Holder and the other Attribution Parties being deemed
to beneficially own, in the aggregate, more than the Maximum Percentage of the number of outstanding Ordinary Shares (as determined
under Section 13(d) of the Exchange Act), the number of shares so issued by which the Holder's and the other Attribution Parties'
aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and
void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. As soon
as reasonably practicable after the issuance of the Excess Shares has been deemed null and void, the Company shall return to the
Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery of a written notice to the Company, the Holder
may from time to time increase (with such increase not effective until the sixty-first (61st) day after delivery of
such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided
that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such
notice is delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution
Parties and not to any other holder of Warrants that is not an Attribution Party of the Holder. For purposes of clarity, the Ordinary
Shares issuable pursuant to the terms of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially
owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section
2(e) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective or inconsistent
with the intended beneficial ownership limitation contained in this Section 2(e) or to make changes or supplements necessary or
desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived and shall apply
to a successor holder of this Warrant. “Attribution Parties” means, collectively, the following Persons and
entities: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after
the issuance date, directly or indirectly managed or advised by the Holder's investment manager or any of its Affiliates or principals,
(ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to
be acting as a group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of
the Company's Ordinary Shares would or could be aggregated with the Holder's and the other Attribution Parties for purposes of
Section 13(d) of the Exchange Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and all other
Attribution Parties to the Maximum Percentage.

 

    	 	6	 

     

    

 

Section 3.Certain
Adjustments.

 

a) Share
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a share dividend or otherwise
makes a distribution or distributions on its Ordinary Shares or ADSs or any other equity or equity equivalent securities payable
in Ordinary Shares or ADSs (which, for avoidance of doubt, shall not include any ADSs issued by the Company upon exercise of this
Warrant), as applicable, (ii) subdivides outstanding Ordinary Shares or ADSs into a larger number of shares or ADSs, as applicable,
(iii) combines (including by way of reverse share split) outstanding Ordinary Shares or ADSs into a smaller number of shares or
ADSs, as applicable, or (iv) issues by reclassification of Ordinary Shares, ADSs or any shares of capital stock of the Company,
as applicable, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number
of ADSs (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the
number of ADSs 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 shareholders entitled
to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

b) [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 Ordinary Share Equivalents or rights to purchase shares, warrants, securities or other property pro rata to the record
holders of any class of Ordinary Shares or ADSs (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 Ordinary Shares or ADSs acquirable upon complete exercise of this Warrant (without regard
to any limitations on exercise hereof, including without limitation, the Maximum Percentage) 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 Ordinary Shares or ADSs 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 Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial
ownership of such ADSs 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 Maximum
Percentage).

 

    	 	7	 

     

    

 

d) Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend (other
than cash) or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares or ADSs, by way
of return of capital or otherwise (including, without limitation, any distribution ofshares 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 Ordinary Shares or ADSs acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Maximum Percentage) 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 Ordinary Shares or ADSs 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 Maximum Percentage, then the Holder shall not
be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Ordinary Shares or ADSs 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 Maximum Percentage).

 

e) Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction (as defined below) unless the Successor
Entity (as defined below) assumes in writing all of the obligations of the Company under this Warrant and the other Transaction
Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements, including agreements, if so requested
by the Holder, to deliver to each holder of the Warrants in exchange for such Warrants a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted
exercise price equal to the value for the Ordinary Shares reflected by the terms of such Fundamental Transaction, and exercisable
for a corresponding number of shares of capital stock equivalent to the Ordinary Shares represented by ADSs 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 Ordinary Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock,
such adjustments to the 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). Any security issuable or potentially
issuable to the Holder pursuant to the terms of this Warrant on the consummation of a Fundamental Transaction shall be registered
and freely tradable by the Holder without any restriction or limitation or the requirement to be subject to any holding period
pursuant to any applicable securities laws if any securities issued to any other equityholder of the Company are registered on
Form F-4 or any successor form. Upon the occurrence or consummation of any Fundamental Transaction, and it shall be a required
condition to the occurrence or consummation of any Fundamental Transaction that, the Company and the Successor Entity or Successor
Entities, jointly and severally, shall succeed to, and the Company shall cause any Successor Entity or Successor Entities to jointly
and severally succeed to, and be added to the term “Company” under this Warrant (so that from and after the date of
such Fundamental Transaction, each and every provision of this Warrant referring to the “Company” shall refer instead
to each of the Company and the Successor Entity or Successor Entities, jointly and severally), and the Company and the Successor
Entity or Successor Entities, jointly and severally, may exercise every right and power of the Company prior thereto and shall
assume all of the obligations of the Company prior thereto under this Warrant with the same effect as if the Company and such Successor
Entity or Successor Entities, jointly and severally, had been named as the Company in this Warrant, and, solely at the request
of the Holder, if the Successor Entity and/or Successor Entities is a publicly traded corporation whose common stock is quoted
on or listed for trading on a Trading Market in the United States, shall deliver (in addition to and without limiting any right
under this Warrant) to the Holder in exchange for this Warrant a security of the Successor Entity and/or Successor Entities evidenced
by a written instrument substantially similar in form and substance to this Warrant and exercisable for a corresponding number
of shares of capital stock of the Successor Entity and/or Successor Entities (the “Successor Capital Stock”)
equivalent to the Ordinary Shares underlying the ADSs acquirable and receivable upon exercise of this Warrant (without regard to
any limitations on the exercise of this Warrant) prior to such Fundamental Transaction (such corresponding number of shares of
Successor Capital Stock to be delivered to the Holder shall be equal to the quotient of (i) the aggregate dollar value of all consideration
(including cash consideration and any consideration other than cash (“Non-Cash Consideration”), in such Fundamental
Transaction, as such values are set forth in any definitive agreement for the Fundamental Transaction that has been executed at
the time of the first public announcement of the Fundamental Transaction or, if no such value is determinable from such definitive
agreement, as determined in accordance with Section 5(a) with the term "Non-Cash Consideration" being substituted for
the term "Exercise Price") that the Holder would have been entitled to receive upon the happening of such Fundamental
Transaction or the record, eligibility or other determination date for the event resulting in such Fundamental Transaction, had
this Warrant been exercised immediately prior to such Fundamental Transaction or the record, eligibility or other determination
date for the event resulting in such Fundamental Transaction (without regard to any limitations on the exercise of this Warrant)
divided by (ii) the per share closing sale price of such corresponding capital stock on the Trading Day immediately prior to the
consummation or occurrence of the Fundamental Transaction), and with an identical exercise price to the Exercise Price hereunder
(such adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting after the
consummation or occurrence of such Fundamental Transaction the economic value of this Warrant that was in effect immediately prior
to the consummation or occurrence of such Fundamental Transaction, as elected by the Holder solely at its option). Upon occurrence
or consummation of the Fundamental Transaction, and it shall be a required condition to the occurrence or consummation of such
Fundamental Transaction that, the Company and the Successor Entity or Successor Entities shall deliver to the Holder confirmation
that there shall be issued upon exercise of this Warrant at any time after the occurrence or consummation of the Fundamental Transaction,
as elected by the Holder solely at its option, ADSs, Successor Capital Stock or, in lieu of the ADSs or Successor Capital Stock
(or other securities, cash, assets or other property purchasable upon the exercise of this Warrant prior to such Fundamental Transaction),
such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription
rights), which for purposes of clarification may continue to be ADSs, if any, that the Holder would have been entitled to receive
upon the happening of such Fundamental Transaction or the record, eligibility or other determination date for the event resulting
in such Fundamental Transaction, had this Warrant been exercised immediately prior to such Fundamental Transaction or the record,
eligibility or other determination date for the event resulting in such Fundamental Transaction (without regard to any limitations
on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant.

 

    	 	8	 

     

    

 

In addition to and not in substitution
for any other rights hereunder, prior to the occurrence or consummation of any Fundamental Transaction pursuant to which holders
Ordinary Shares or ADSs are entitled to receive securities, cash, assets or other property with respect to or in exchange for Ordinary
Shares or ADSs (a “Corporate Event”), the Company shall make appropriate provision to insure that, and any applicable
Successor Entity or Successor Entities shall ensure that, and it shall be a required condition to the occurrence or consummation
of such Corporate Event that, the Holder will thereafter have the right to receive upon exercise of this Warrant at any time after
the occurrence or consummation of the Corporate Event, ADSs or Successor Capital Stock or, if so elected by the Holder, in lieu
of ADSs (or other securities, cash, assets or other property) purchasable upon the exercise of this Warrant prior to such Corporate
Event (but not in lieu of such items still issuable under Sections 3(c) and 3(d), which shall continue to be receivable on the
ADSs or on the such shares of stock, securities, cash, assets or any other property otherwise receivable with respect to or in
exchange for ADSs), such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other
purchase or subscription rights and any Ordinary Shares) which the Holder would have been entitled to receive upon the occurrence
or consummation of such Corporate Event or the record, eligibility or other determination date for the event resulting in such
Corporate Event, had this Warrant been exercised immediately prior to such Corporate Event or the record, eligibility or other
determination date for the event resulting in such Corporate Event (without regard to any limitations on exercise of this Warrant).
The provisions of this Section 3(e) shall apply similarly and equally to successive Fundamental Transactions and Corporate Events.
“Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through subsidiaries,
Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company
is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially
all of the properties or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation
S-X) to one or more Persons, or (iii) make, or allow one or more Persons to make, or allow the Company to be subject to or have
its Ordinary Shares be subject to or party to one or more persons making, a purchase, tender or exchange offer that is accepted
by the holders of at least either (x) 50% of the outstanding Ordinary Shares, (y) 50% of the outstanding Ordinary Shares calculated
as if any Ordinary Shares held by all Persons making or party to, or Affiliated with any Persons making or party to, such purchase,
tender or exchange offer were not outstanding; or (z) such number of Ordinary Shares such that all Persons making or party to,
or Affiliated with any Person making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners
(as defined in Rule 13d-3 under the Exchange Act) of at least 50% of the outstanding Ordinary Shares, or (iv) consummate a securities
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with one or more Persons whereby all such Persons, individually or in the aggregate, acquire, either (x)
at least 50% of the outstanding Ordinary Shares, (y) at least 50% of the outstanding Ordinary Shares calculated as if any Ordinary
Shares held by all the Persons making or party to, or Affiliated with any Person making or party to, such securities purchase agreement
or other business combination were not outstanding; or (z) such number of Ordinary Shares such that the Persons become collectively
the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of at least 50% of the outstanding Ordinary Shares, or
(v) reorganize, recapitalize or reclassify its Ordinary Shares such that such modified Ordinary Shares no longer have the residual
right to dividends or distributions from the Company or the residual right to vote on matters given to the common shareholders
under Israeli law, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, allow any Person individually or the Persons in the aggregate to be or become the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, whether through acquisition, purchase, assignment,
conveyance, tender, tender offer, exchange, reduction in outstanding Ordinary Shares, merger, consolidation, business combination,
reorganization, recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise
in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding
Ordinary Shares, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Ordinary Shares
not held by all such Persons as of the date of this Warrant calculated as if any Ordinary Shares held by all such Persons were
not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding Ordinary Shares
or other equity securities of the Company sufficient to allow such Persons to effect a statutory short form merger or other transaction
requiring other shareholders of the Company to surrender their Ordinary Shares without approval of the shareholders of the Company
or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, the
issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that circumvents,
the intent of this definition in which case this definition shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this definition to the extent necessary to correct this definition or any portion of this definition
which may be defective or inconsistent with the intended treatment of such instrument or transaction. Notwithstanding anything
contained herein, any transaction which results in a Company subsidiary that is not wholly-owned by the Company becoming a wholly-owned
subsidiary of the Company shall not be considered a "Fundamental Transaction" and shall not otherwise trigger any adjustment
or rights under this Warrant. “Successor Entity” means one or more Person or Persons (or, if so elected by the
Holder, the Company or Parent Entity (as defined below)) formed by, resulting from or surviving any Fundamental Transaction or
one or more Person or Persons (or, if so elected by the Holder, the Company or the Parent Entity) with which such Fundamental Transaction
shall have been entered into. “Parent Entity” of a Person means an entity that, directly or indirectly, controls
the applicable Person, including such entity whose common stock or equivalent equity security is quoted or listed on a Trading
Market, or, if there is more than one such Person or such entity, such Person or entity with the largest public market capitalization
as of the date of consummation of the Fundamental Transaction.

 

    	 	9	 

     

    

 

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

 

g) Notice
to Holder.

 

i. Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of
Warrant ADSs 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
Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares or
ADSs, (C) the Company shall authorize the granting to all holders of the Ordinary Shares or ADSs 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 shareholders of the Company
shall be required in connection with any reclassification of the Ordinary Shares or ADSs, 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 Ordinary 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
20 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 Ordinary Shares or ADSs 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
Ordinary Shares of record shall be entitled to exchange their Ordinary Shares 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 in this Warrant 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 Report on Form 6-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	 

     

    

 

Section 4.Transfer
of Warrant.

 

a) Transferability.
Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant ADSs 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 and 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 underwriter and related persons 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 and subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder are transferable,
in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with
a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney
and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading
Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned
in accordance herewith, may be exercised by a new holder for the purchase of Warrant ADSs without having a new Warrant issued.

 

    	 	11	 

     

    

 

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
Exercise Date and shall be identical with this Warrant except as to the number of Warrant ADSs issuable pursuant thereto.

 

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

 

d) Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of the Purchase Agreement, including
Section 4.13 thereof.

 

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 ADSs issuable upon such exercise, for its own account and not with a view to or for distributing
or reselling such Warrant ADSs 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.

 

    	 	12	 

     

    

 

Section 5. Miscellaneous.

 

a) [RESERVED]

 

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

 

c) 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
ADSs, 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.

 

d) Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted 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.

 

e) Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Ordinary Shares and a sufficient
number of shares to provide for the issuance of the Warrant ADSs and underlying Ordinary Shares upon the exercise of any purchase
rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this
Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant ADSs may be issued as
provided herein without violation of any applicable law or regulation, or of any requirements of the applicable Trading Market
upon which the Ordinary Shares and ADSs 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 ADSs 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).

 

    	 	13	 

     

    

 

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 ADSs 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.

 

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

 

g) Restrictions.
The Holder acknowledges that the Warrant Shares and Warrant ADSs 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.

 

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

 

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

 

    	 	14	 

     

    

 

j) Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant ADSs, 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 Ordinary Shares or ADSs or as a shareholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.

 

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

 

l) 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 ADSs.

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

    	 	15	 

     

    

 

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

 

	 	CELLECT BIOTECHNOLOGY LTD.
	 	 	 
	 	By:	     
	 	 	Name:
	 	 	Title:

 

    	 	16	 

     

    

 

NOTICE OF EXERCISE

 

		To:	CELLECT BIOTECHNOLOGY
LTD.

The
Bank of New York Mellon

 

(1)  The
undersigned hereby elects to purchase ________ Warrant ADSs 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 ADSs 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 ADSs purchasable pursuant to the cashless exercise procedure set forth in subsection
2(c).

 

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

 

DTC Participant
name and number: ________________________

Contact of
DTC Participant: _______________________

Telephone Number
of Participant Contact: _____________________

 

(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: ___________________________________________________________________________________________

 

     

     

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

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

 

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

 

	Name:	
	 	(Please Print)
	 	 
	Address:	
	 	(Please Print)

 

	Dated: _______________ __, ______	 
	 	 
	Holder’s Signature:                                                                   	 
	 	 
	Holder’s Address:

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