Document:

EXHIBIT 10.7

 

FORM OF LOAN AND GUARANTY AGREEMENT

 

THIS LOAN AND GUARANTY
AGREEMENT (this “Agreement”), dated as of [●], 2017, by and among INNOCOLL PHARMACEUTICALS
LIMITED, an Irish private limited company and having its registered office at Unit 9, Block D, Monksland
Business Park, Monksland, Athlone, County Roscommon, Ireland (“Borrower”), INNOCOLL HOLDINGS PUBLIC
LIMITED COMPANY, an Irish public limited company (registration number 544604) and having its registered office at Unit
9, Block D, Monksland Business Park, Monksland, Athlone, County Roscommon, Ireland (the “Guarantor”), and
[●] (“Gurnet”),
provides the terms on which Gurnet shall make the Term Loan (as defined below) to the Borrower and the Borrower shall repay the
Term Loan to Gurnet. The parties agree as follows:

 

INTERPRETATION AND DEFINITIONS

 

		(a)	Interpretation

 

In this Agreement:

 

		(i)	References to Articles and Sections, are, save if explicitly stipulated otherwise, references respectively
to articles and sections of this Agreement.

 

		(ii)	References to a provision of law are references to that provision as amended or re-enacted.

 

		(iii)	References to any other agreement or instrument are references to that other agreement or instrument
as amended, novated, supplemented, extended or restated.

 

		(b)	Definitions

 

In this Agreement:

 

“Accounting
Reference Date” means 31 December.

 

“Act”
means the Irish Companies Act 2014 and all enactments which are to be read as one with, or construed or read together as one with,
the Irish Companies Act 2014.

 

“Acting in Concert”
has the meaning given to that term in the Takeover Panel Act.

 

“Affiliate”
means, in relation to any Person, a Subsidiary of that Person or a Holding Company of that Person or any other Subsidiary of that
Holding Company.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Authorisation”
means an authorisation, permit, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

 

“Borrower”
has the meaning set forth in the preamble.

 

“Borrowing Notice”
is that certain form attached hereto as Exhibit A.

 

     

     

    

 

“BSA”
has the meaning set forth in Section 3.02.

 

“Business Day”
means a day (other than a Saturday or Sunday) on which Gurnet and commercial banks are open for general business in New York.

 

“Business Plan”
has the meaning given to it in the Existing Facility.

 

“CAPEX”
has the meaning given to it in the Existing Facility.

 

“Change of
Control Event” means (a) the termination of the Transaction Agreement by the Guarantor pursuant to Clause 9.1(h)
of the Transaction Agreement to enter into any agreement, understanding or arrangement providing for a Innocoll Superior
Proposal (as term is defined in the Transaction Agreement) or (b) the termination of the Transaction Agreement by
either Guarantor or Gurnet Sub pursuant to Clause 9.1 of the Transaction Agreement and a Innocoll Alternative Proposal
(as defined in the Transaction Agreement) is consummated or a definitive agreement providing for a Innocoll Alternative
Proposal (as defined in the Transaction Agreement) is entered into, in each case prior to the Term Loan Maturity Date (provided,
that a license of the rights to sell XaraColl solely in one or more countries in Europe shall not be deemed to be a Innocoll
Alternative Proposal (as defined in the Transaction Agreement)).

 

“Claims” has the meaning
set forth in Section 9.03(a).

 

“Closing Date”
means [●], 2017.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Compliance
Certificate” means a certificate substantially in the form set out in Schedule E.2 of the Existing Facility.

 

“Concert Parties”,
means, in relation to any party hereto, such Persons as are Acting in Concert with such party (including such Persons as are deemed
to be Acting in Concert with such party pursuant to Rule 3.3 of Part A of the Takeover Rules).

 

“Court”
means the High Court of Ireland.

 

“Credit”
has the meaning given to it in the Existing Facility.

 

“Criminal Offence”
means any of the following criminal offences as applicable: fraud, corruption, coercion, collusion, obstruction, money laundering,
financing of terrorism.

 

“Debenture”
means the debenture dated on or about the date of this Agreement between the Borrower and Gurnet.

 

“Default Rate”
has the meaning set forth in Section 1.03(b).

 

“Disruption
Event” means either or both of:

 

		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with this Agreement; or

 

		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of either Gurnet or the Borrower, preventing that party:

 

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		(i)	from performing its payment obligations under this Agreement; or

 

		(ii)	from communicating with other parties in accordance with the terms of this Agreement,

 

and which disruption (in either such case
as per (a) or (b) above) is not caused by, and is beyond the control of, the party whose operations are disrupted.

 

“Dollars” or “$”
shall mean dollars of the United States.

 

“Drawdown Date”
means the date on which actual drawdown of the Term Loan is made by the Borrower.

 

“Drawdown Period”
means the period commencing on the date falling ten days after the posting of the Scheme Document to the shareholders of the Guarantor
and ending on [●], 2017.

 

“EBITDA”
has the meaning given to it in the Existing Facility.

 

“EIB”
means The European Investment Bank.

 

“EIB Amendment
and Consent” means that certain [●].

 

“Environment”
means the following, in so far as they affect human health and social wellbeing:

 

		(a)	fauna and flora;

 

		(b)	soil, water, air, climate and the landscape; and

 

		(c)	cultural heritage and the built environment,

 

and includes, without limitation, occupational
and community health and safety.

 

“Environmental
Claim” means any claim, proceeding, formal notice or investigation by any Person in respect of any Environmental Law.

 

“Environmental
Law” means:

 

		(a)	European Union law, including principles and standards;

 

		(b)	laws and regulations; and

 

		(c)	applicable international treaties,

 

of which a principal objective is the preservation,
protection or improvement of the Environment.

 

“Euro”
and “€” shall mean the single currency of the European Union as constituted by the Treaty on European Union
and as referred to in the legislative measures of the European Union for the introduction of, changeover to, or operation of the
Euro in one or more member states.

 

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“Event of Default”
means any of the circumstances, events or occurrences specified in Article 6.01.

 

“Excluded Taxes”
means any of the following Taxes imposed on or with respect to Lender or required to be withheld or deducted from a payment to
Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in
each case, (i) imposed as a result of Lender being organized under the laws of, or having its principal office or in the jurisdiction
imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) Taxes attributable
to Lender’s failure to comply with Section 1.06(f), (c) any U.S. federal withholding Taxes imposed under
FATCA, (d) Taxes resulting from the gross negligence or willful misconduct of Gurnet, (e) penalties, interest and additions
to Tax relating to any of the foregoing, (f) Irish withholding tax that arises solely because the Lender is not or has ceased
to be a Qualifying Lender (other than as a result of a change of law after the date it became a Lender under this Agreement or
in the interpretation, administration, or application of any law or tax treaty, or any published practice or published concession
of any relevant tax authority) and (g) Taxes excluded from the definition of Other Taxes.

 

“Existing Facility”
means that certain Finance Contract, dated as of March 27, 2015, by and among the Borrower, the Guarantor and EIB, as in effect
on the date hereof.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof
and any agreement entered into pursuant thereto, including any intergovernmental agreements and any rules or guidance implementing
such intergovernmental agreements, and any substantially comparable non-U.S. law.

 

“Finance Documents”
means:

 

		(a)	this Agreement;

 

		(b)	the Security Documents;

 

		(c)	the Priorities Agreement; and

 

		(d)	any other document the parties agree to designate a Finance Document.

 

“Finance Lease”
means any lease or hire purchase contract which would, in accordance with IFRS, be treated as a finance or capital lease.

 

“Financial Quarter”
means the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

 

“Financial Year”
means the annual accounting period of the Group ending on the Accounting Reference Date.

 

“GAAP”
means in relation to the Borrower and Guarantor (if applicable), generally accepted accounting principles in Ireland, including
IFRS.

 

“Group”
means, collectively, the Guarantor, the Borrower and each of their respective Subsidiaries.

 

“Group Structure
Chart” has the meaning set forth in Section 3.19(cc).

 

“Guarantor”
has the meaning set forth in the preamble.

 

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“Gurnet”
has the meaning set forth in the preamble.

 

“Gurnet
Sub” means Lough Ree Technologies Limited, an Irish private limited company and a wholly-owned Subsidiary of Gurnet
Point L.P., a Delaware limited partnership.

 

“Guarantor Shares”
means the issued or unconditionally allotted ordinary share capital in the Guarantor and any further such shares which may be issued
or unconditionally allotted pursuant to the exercise of any subscription or conversion rights, options or otherwise.

 

“Hedging Policy”
means any derivative transaction by a member of the Group to hedge actual or projected exposure arising in the ordinary course
of trading or any derivative instrument of a member of the Group which is accounted for on a hedge accounting basis and does not
include any derivative transaction and/or instrument for speculative purposes.

 

“HMT”
has the meaning set forth in the definition of “Sanctions”.

 

“Holding Company”
means, in relation to a Person, any other Person in respect of which the first Person is a Subsidiary.

 

“IFRS”
means international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant
financial statements.

 

“Indebtedness”
means any:

 

		(a)	obligations for borrowed money;

 

		(b)	indebtedness under any acceptance credit;

 

		(c)	indebtedness under any bond, debenture, note or similar instrument;

 

		(d)	instrument under any bill of exchange;

 

		(e)	indebtedness in respect of any interest rate or currency swap or forward currency sale or purchase
or other form of interest or currency hedging transaction (including without limit caps, collars and floors);

 

		(f)	indebtedness under any Finance Lease;

 

		(g)	indebtedness (actual or contingent) under any guarantee, bond security, indemnity or other agreement;

 

		(h)	indebtedness (actual or contingent) under any instrument entered into for the purpose of raising
finance;

 

		(i)	indebtedness in respect of a liability to reimburse a purchaser of any receivables sold or discounted
in the event that any amount of those receivables is not paid;

 

		(j)	indebtedness arising under a securitisation; or

 

		(k)	other transaction which has the commercial effect of borrowing.

 

“Indemnified
Person” has the meaning set forth in Section 9.03(a).

 

“Indemnified
Tax” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account
of any obligation of the Borrower under any Finance Document and (b) to the extent not otherwise described in clause (a),
Other Taxes.

 

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

 

“Intellectual
Property Rights” means intellectual property of every designation (including patents, utility patents, copyrights, design
rights, trademarks, service marks and know how), whether capable of registration or not.

 

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

 

“Joint Venture”
means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership
or any other entity.

 

“Legal Reservations”
means:

 

		(a)	the principle that equitable remedies may be granted or refused at the discretion of a court, and
the limitations on enforcement imposed by laws relating to insolvency, reorganisation, and other laws generally affecting the rights
of creditors; and

 

		(b)	similar principles, rights and defences under the laws of any relevant jurisdiction.

 

“Lender”
means, subject to Section 9.01, Gurnet and any Person to which Gurnet or its successors and assigns may sell, transfer,
assign, or negotiate all or any part of, or any interest in, such Person’s obligations, rights, and benefits under this Agreement
and the other Finance Documents; provided that Gurnet shall be considered to become a Lender on the date of this Agreement
and any other Person shall be considered to become a Lender on the date such Person acquires an interest in another Person’s
obligations, rights, and benefits under this Agreement and the other Finance Documents.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other),
charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind
or nature whatsoever (including any conditional sale or other title retention agreement and any capital lease having substantially
the same economic effect as any of the foregoing).

 

“Mandatory Prepayment/Commitment
Termination Trigger” means:

 

		(a)	the occurrence of a Change of Control Event; or

 

		(b)	the granting of any U.S. rights to XaraColl or any other asset(s) with an aggregate fair market
value in excess of $1,000,000 (as reasonably determined in good faith by the Borrower and Gurnet) of the Guarantor, the Borrower
or any of their Subsidiaries (provided, that a license of the rights to sell XaraColl solely in one or more countries in
Europe shall not be deemed to be rights or assets with an aggregate fair market value in excess of $1,000,000).

 

“Material Adverse
Change” means, any event or change of condition, which has a material adverse effect on:

 

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		(a)	the ability of the Borrower or the Guarantor to perform its obligations under the Finance Documents;

 

		(b)	the business, operations, property, condition (financial or otherwise) or prospects of the Borrower,
the Guarantor or the Group as a whole; or

 

		(c)	the validity or enforceability of the rights or remedies of Gurnet under the Finance Documents.

 

“Non-Transaction
Term Loan Maturity Date” has the meaning set forth in the definition of “Term Loan Maturity Date”.

 

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

 

“OFAC”
has the meaning set forth in the definition of “Sanctions”.

 

“Other Connection
Taxes” means, with respect to Lender, Taxes imposed as a result of a present or former connection between such Lender
and the jurisdiction imposing such Tax (other than connections arising solely from (and that would not have existed but for) such
Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received, engaged
in any other transaction pursuant to or enforced any Finance Document).

 

“Other Taxes”
means all present or future stamp, court or documentary, excise or property, intangible, recording, filing or similar Taxes and
all liabilities with respect thereto (including by reason of any delay in payment hereof) that arise from any payment made under,
from the execution, delivery, performance, enforcement or registration of, from the receipt, or otherwise with respect to, any
Finance Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment, grant of a participation,
designation of a new office for receiving payments by or on account of the Borrower or other transfer (other than an assignment
or designation of a new office made by Lender).

 

“Paid in Full”
means with respect to Gurnet (a) all Obligations to Gurnet (other than contingent claims for indemnification or reimbursement
not then asserted) have been indefeasibly repaid in full in cash and have been fully performed and (b) all commitments of
Gurnet, if any, to extend credit that would constitute Obligations have been terminated or have expired.

 

“Participant”
has the meaning set forth in Section 9.02(b).

 

“Participant
Register” has the meaning set forth in Section 9.02(b).

 

“Permitted Acquisition”
means an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another member
of the Group in circumstances permitted by Article 3.01.

 

“Permitted Disposal”
means any act effecting a sale, transfer, lease or other disposal (other than a sale, transfer, lease or other disposal of the
XaraColl, Cogenzia or CollaGUARD Intellectual Property Rights which is permitted only as covered by paragraph (e) below):

 

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		(a)	related to the sale of finished products and/or services made on arm’s length terms in the
ordinary course of business of a Borrower or other member of the Group;

 

		(b)	by one member of the Group to another member of the Group;

 

		(c)	for cash in an amount reflecting or exceeding the fair market value of such assets, which is reinvested
in assets of comparable or superior type, value and quality;

 

		(d)	made in exchange for other assets comparable or superior as to type, value and quality;

 

		(e)	constituted by a licence of Intellectual Property Rights on an arm’s length basis to a third
party;

 

		(f)	made in relation to non-material assets which have depreciated to less than 25% (twenty five per
cent) of their initial value or which are obsolete; or

 

		(g)	of assets for cash where the higher of the book value and net consideration in aggregate does not
exceed €500,000 in total at all times during the life of the Credit.

 

“Permitted Guarantees”
means guarantees issued by any member of the Group under or in connection with:

 

		(a)	under the Guarantee Agreement (as defined in the Existing Facility);

 

		(b)	under any negotiable instruments issued in the ordinary course of trade;

 

		(c)	in connection with any performance bond issued in the ordinary course of trade;

 

		(d)	in connection with any Permitted Indebtedness;

 

		(e)	issued by one member of the Group in respect of the obligations of another member of the Group;
or

 

		(f)	in connection with the Existing Facility.

 

“Permitted Indebtedness”
means Indebtedness of the Borrower and/or members of the Group incurred:

 

		(a)	in the ordinary course of trading by members of the Group;

 

		(b)	under this Agreement;

 

		(c)	under any finance or capital leases of equipment related to expansion of manufacturing facilities
in line with the Business Plan, if the aggregate liability in respect of the equipment leased does not at any time exceed €2,000,000
(Two Million Euros) (or its equivalent in another currency or currencies);

 

		(d)	under any hedging or derivative transactions entered into in accordance with the Hedging Policy;

 

		(e)	under a Permitted Guarantee;

 

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		(f)	under any overdrafts made available to the Group provided that the aggregate amount of the Indebtedness
in respect of such arrangements for the Group does not exceed €500,000 (or its equivalent in other currencies) in aggregate
at any time;

 

		(g)	arising under any loan made by a member of the Group to another member of the Group;

 

		(h)	any other Indebtedness incurred with the prior written consent of Gurnet; or

 

		(i)	under the Existing Facility.

 

“Permitted Lien”
means:

 

		(a)	Liens arising under this Agreement and the other Finance Documents;

 

		(b)	Liens for taxes, assessments or governmental charges or levies not overdue by more than 30 days
and payable or that are being contested in good faith by appropriate proceedings;

 

		(c)	Liens arising from judgments, decrees or attachments in circumstances not constituting an Event
of Default;

 

		(d)	deposits or pledges (other than a pledge of all assets of the pledger) to secure obligations under
worker’s compensation, social security or similar laws, or under unemployment insurance;

 

		(e)	deposits or pledges (other than a pledge of all assets of the pledger) to secure bids, tenders,
contracts (other than contracts for the payment of money), leases, statutory obligations, surety and appeal bonds and other obligations
of like nature arising in the ordinary course of business;

 

		(f)	Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code (or equivalent
in foreign jurisdiction) on items in the course of collection;

 

		(g)	licenses of Intellectual Property permitted under this Agreement and not interfering in any material
respect with the ordinary conduct of business of the members of the Group;

 

		(h)	to the extent constituting a Lien, escrow arrangements securing indemnification obligations associated
with any acquisition;

 

		(i)	Liens on cash collateral and deposits securing obligations in respect of credit card and/or purchase
card arrangements and payment processing services;

 

		(j)	carriers’, landlords’, bailees’ repairmens’, mechanics’, workers’,
materialmen’s or other like Liens arising by statute and in the ordinary course of business with respect to obligations which
are not yet due and payable or which are being contested in good faith by appropriate proceedings;

 

		(k)	easements, rights-of-way, zoning restrictions, minor defects or irregularities in title and other
similar charges or encumbrances, in each case, which do not interfere in any material respect with the ordinary course of business
of the members of the Group;

 

		(l)	Liens on unearned insurance premiums and proceeds thereof to secure premiums payable under insurance
policies;

 

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		(m)	any interest or title of a lessor or sublessor under any lease permitted by this Agreement;

 

		(n)	Liens in favor of customs and revenue authorities arising as a matter of law which secure payment
of customs duties in connection with the importance of goods in the ordinary course of business;

 

		(o)	intercompany licenses, sublicenses, leases or subleases permitted pursuant to this Agreement; or

 

		(p)	Liens incurred in connection with the Existing Facility.

 

“Permitted Merger”
means any amalgamation, demerger, merger or corporate reconstruction which does not result in a Material Adverse Change and which
is on a solvent basis, and where:

 

		(a)	only members of the Group are involved;

 

		(b)	the resulting entity will not be incorporated or located in a country which is in a jurisdiction
that is blacklisted by any Sanctions Authority in connection with activities such as money laundering, financing of terrorism,
tax fraud and tax evasion or harmful tax practices as such blacklist may be amended from time to time;

 

		(c)	if the Borrower is involved, (i) the rights and obligations of the Borrower under this Agreement
will remain with the Borrower, (ii) the surviving entity would be the Borrower and the statutory seat of the Borrower would not
as a result of such merger be transferred to a different jurisdiction, (iii) the merger will not have an effect on the validity,
legality or enforceability of the Borrower’s obligations under this Agreement; and (iv) all of the business and assets of
the Borrower are retained by it; or

 

		(d)	such amalgamation, demerger, merger or corporate reconstruction is the Transaction.

 

“Permitted Payments”
means

 

		(a)	payments in respect of shares purchased from former employees, former managers or former directors,
provided that such shares were awarded under a share programme of the Borrower or the Guarantor;

 

		(b)	dividends of any member of the Group distributed, or repayments of intercompany loans, to the Guarantor
or any of its Subsidiaries;

 

		(c)	subject to applicable mandatory corporate law and other mandatory regulatory restrictions that
would restrict the distribution of cash or profits, dividends payments or share repurchases by a Borrower or other Group members,
provided that no default has occurred and is continuing and to the extent that any such dividends or repurchases do not
exceed 10 % (ten per cent) of the net earnings as reported in the annual, audited, consolidated accounts for the preceding Financial
Year;

 

		(d)	only if the Transaction has been consummated, any payment made in cash to Gurnet or any of its
Affiliates to pay, or the proceeds of which are applied to Gurnet or such Affiliate to pay, cash dividends and distributions to
Gurnet or such Affiliate; or

 

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		(e)	only if the Transaction has been consummated, repayment of principal and interest under the Existing
Facility on the scheduled maturity date (as of the date hereof) for such facility,

 

in each case without double counting.

 

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

“Premium”
means:

 

		(a)	with respect to Section 1.02(c), an additional fee payable to Gurnet in an amount equal
to (i) on and prior to July 31, 2017, 10% of the amount of the Term Loan being repaid and (ii) on August 1, 2017 and
thereafter until (but not including) the Non-Transaction Term Loan Maturity Date, 5% of the amount of the Term Loan being repaid,
in each case as of the date of such prepayment; and

 

		(b)	with respect to Section 1.02(d), an additional fee payable to Gurnet in an amount equal
to: (i) on and prior to July 31, 2017, $1,000,000 and (ii) on August 1, 2017 and thereafter until (but not including)
the Non-Transaction Term Loan Maturity Date, $500,000, in each case as of the date immediately prior to such prepayment or termination
of commitments, as applicable; provided, that any additional fee payable pursuant to this clause (b) shall be
reduced by any additional fee paid pursuant to clause (a).

 

“Priorities
Agreement” means the priorities agreement dated on or about the date of this Agreement between, amongst others, the Borrower,
EIB and Gurnet.

 

“Qualifying Lender” means
a body corporate that is:

 

		(a)	resident for tax purposes in a Member State of the EU (other than Ireland) or a country with which
Ireland has a double taxation treaty (a Treaty) and that Member State or country (as the case may be) imposes a tax that generally
applies to interest receivable in that territory or member state by companies from sources outside that territory or member state;

 

		(b)	(i) is exempted from the charge to income tax under a Treaty in force between Ireland and
the country in which the Lender is resident for tax purposes or (ii) would be exempted from the charge to income tax if a
Treaty made on or before the date of payment of the interest between Ireland and the country in which the Lender is resident for
tax purposes, that does not have the force of law under the procedures set out in section 826(1) of the Taxes Consolidation Act
1997, had the force of law when the interest was paid; or

 

		(c)	a United States corporation that is subject to tax in the United States on its worldwide income;
or

 

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		(d)	a United States limited liability company where the ultimate recipients of the interest payable
to it are Qualifying Lenders within clauses (a), (b), or (c) above and the business conducted through the
limited liability company is so structured for market reasons and not for tax avoidance purposes;

 

provided that
in the case of clause (a), (b), (c) and (d) above, such interest is not paid to the body corporate
in connection with a trade or business which is carried on in Ireland by the body corporate through a branch or agency.

 

“Quarter Date”
means each of 31 March, 30 June, 30 September and 31 December from the date of this Agreement until the applicable Term Loan Maturity
Date.

 

“Register”
has the meaning set forth in Section 9.02(a).

 

“Sanctions”
means the economic or financial sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced
by the United States government, the United Nations, the European Union or the United Kingdom, and the governmental institutions
and agencies of each of the foregoing including, without limitation, the Office of Foreign Assets Control of the United States
Department of Treasury (“OFAC”), the United States Department of State, and Her Majesty’s Treasury (“HMT”)
(each a “Sanctions Authority” and together, the “Sanctions Authorities”).

 

“Sanctions Authorities”
has the meaning set forth in the definition of “Sanctions”.

 

“Sanctions List”
means the “Specially Designated Nationals and Blocked Persons” list maintained by OFAC, the “Consolidated List
of Financial Sanctions Targets” maintained by HMT, or any similar publicly available list maintained by, or public announcement
of Sanctions designation made by, any of the Sanctions Authorities, including, but not limited to, the European Union and/or the
United Nations.

 

“Scheme”
means the proposed scheme of arrangement under Chapter 1 of Part 9 of the Act and the related capital reduction
under Sections 84 and 85 of the Act to effect the Transaction pursuant to and on the terms set forth in the Transaction Agreement
and the Rule 2.5 Announcement (as defined in the Transaction Agreement), and in such form not being inconsistent therewith as
the Parties (as defined in the Transaction Agreement), acting reasonably, mutually agree in writing, including any revision thereof
as may be so agreed between the Parties (as defined in the Transaction Agreement) and, as required, by the Irish Takeover Panel
and the Court.

 

“Scheme Document”
means the circular to the shareholders of the Guarantor to be issued by the Guarantor setting out the terms of the Scheme and convening
the Court-ordered meeting of shareholders of the Guarantor in relation to the Scheme.

 

“Security Documents”
means the Debenture and the Share Charge.

 

“Share Charge”
means the charge over shares in the Borrower dated on or about the date of this Agreement between the Guarantor and Gurnet.

 

“Subsidiary”
means an entity of which a Person has direct or indirect control or owns directly or indirectly more than 50% of the voting capital
or similar right of ownership and “control” for this purpose means the power to direct the management and the
policies of the entity, whether through the ownership of voting capital, by contract or otherwise.

 

“Takeover Panel
Act” means the Irish Takeover Panel Act 1997, as amended.

 

“Takeover Rules”
means the Irish Takeover Panel Act 1997, Takeover Rules 2013.

 

    12 

     

    

 

“Tax”
means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable
in connection with any failure to pay or any delay in paying any of the same).

 

“Tax Returns”
has the meaning set forth in Section 3.19(jj).

 

“Term Loan”
has the meaning set forth in Section 1.02(a).

 

“Term Loan Maturity
Date” means December 31, 2017 (such date, the “Non-Transaction Term Loan Maturity Date”); provided,
however, that if the Transaction has occurred prior to such date, such date shall be automatically extended to the date
that is 15 days after the Maturity Date (as defined in the Existing Facility) of the Existing Facility (such date, the “Transaction
Term Loan Maturity Date”).

 

“Total Assets”
means the total consolidated assets of the Group, as shown in the Guarantor’s latest consolidated financial statements.

 

“Transaction”
means the acquisition by Gurnet Point, L.P., a Delaware limited partnership, of at least a majority of the Guarantor Shares
and/or substantially all of the assets of the Guarantor, the Borrower and their respective Subsidiaries.

 

“Transaction
Agreement” means that certain Transaction Agreement, dated as of April 4, 2017, by and among Gurnet Point,
L.P., a Delaware limited partnership, Gurnet Sub and the Guarantor.

 

“Transaction
Term Loan Maturity Date” has the meaning set forth in the definition of “Term Loan Maturity Date”.

 

“Warrant1”
means that certain Warrant, dated as of the date hereof, by and among [●].

 

Article
1

THE TERM LOAN AND TERMS OF REPAYMENT

 

		1.01	Promise to Pay

 

The
Borrower hereby unconditionally promises to pay Gurnet the outstanding principal amount of the Term Loan and accrued and unpaid
interest thereon as and when due in accordance with this Agreement.

 

		1.02	Term Loan

 

		(a)	Availability. Subject to the terms and conditions of this Agreement, Gurnet agrees to make
a term loan, available for drawdown by the Borrower during the Drawdown Period, in an aggregate principal amount not to exceed
Ten Million Dollars ($10,000,000) (the “Term Loan”).

 

		(b)	Repayment. All outstanding principal and accrued and unpaid interest under the Term Loan,
and all other outstanding Obligations with respect to the Term Loan, are due and payable in full in cash on the applicable Term
Loan Maturity Date. Once repaid, the Term Loan may not be re-borrowed.

 

	1NTD:		In
                                         the event the Term Loan is not repaid in full by December 31, 2017, the Guarantor shall
                                         issue 5% of its existing share capital on December 31, 2017 to the Lender at an exercise
                                         price of $0.01 per share.

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		(c)	Voluntary Prepayment. The Borrower shall have the option to prepay all or a portion of the
Term Loan made by Gurnet under this Agreement; provided Borrower (i) provides written notice to Gurnet of (x) its
election to prepay the Term Loan at least five Business Days prior to such prepayment and (y) the amount of such prepayment,
and (ii) pays, on the date of such prepayment (A) the principal amount of such prepayment, (B) accrued and unpaid interest
on such Term Loan so prepaid, (C) prior to the consummation of the Transaction, the applicable Premium (if any), and (D) all
other sums, if any, that shall have become due and payable hereunder, including interest at the Default Rate with respect to any
past due amounts. Notwithstanding anything else herein to the contrary, Gurnet may in its sole discretion elect to waive any applicable
Premium in whole or in part.

 

		(d)	Mandatory Prepayment/Commitment
                                         Termination. In the event that: (i) a Mandatory Prepayment/Commitment Termination
                                         Trigger occurs or (ii) the Term Loan is accelerated by Gurnet following the occurrence
                                         of an Event of Default, the Borrower shall immediately pay to Gurnet an amount in cash
                                         equal to the sum of: (A) all outstanding principal plus accrued interest under the
                                         Term Loan, (B) the Premium, if applicable, and (C) all other sums, if any,
                                         that shall have become due and payable hereunder, including interest at the Default Rate
                                         with respect to any past due amounts; provided, that notwithstanding anything
                                         else herein to the contrary, if such Mandatory Prepayment/Commitment Termination Trigger
                                         occurs prior to the funding of the Term Loan, the commitments hereunder shall immediately,
                                         automatically and permanently terminate and the Borrower shall immediately pay to Gurnet
                                         an amount in cash equal to the applicable Premium; provided, further, if
                                         such Mandatory Prepayment/Commitment Termination Trigger occurs as a result of the entry
                                         into a Innocoll Alternative Proposal (as defined in the Transaction Agreement)
                                         prior to the Term Loan Maturity Date, the amounts set forth in this Section 1.02(d)
                                         shall be payable on the earlier to occur of the consummation of the corresponding
                                         Innocoll Alternative Proposal (as defined in the Transaction Agreement) and December
                                         31, 2017. Notwithstanding anything else herein to the contrary, Gurnet may in its sole
                                         discretion elect to waive any applicable Premium in whole or in part.

 

		(e)	Premium.

 

		(i)	The Premium under Section 1.02(c) and (d) shall be in addition to all other
amounts which may be due to Gurnet from time to time pursuant to the terms of this Agreement and any other Finance Document. The
Term Loan shall be subject to the Premium set forth in Section 1.02(c) and (d) and the payment of any Premium
on a portion or all of the Term Loan or commitments hereunder shall not excuse or reduce any Premium on any subsequent prepayment
or repayment of the Term Loan or termination of the commitments hereunder, as applicable.

 

		(ii)	The Borrower and the Guarantor expressly waive the provisions of any present or future statute
or law that prohibits or may prohibit the collection of the foregoing Premium in connection with any acceleration, in each case,
to the maximum extent such waiver is permitted under applicable law. The Borrower and the Guarantor expressly agree, to the extent
permitted under applicable law, that (A) any applicable Premium is reasonable and is the product of an arm’s length
transaction between sophisticated business people, ably represented by counsel, (B) any applicable Premium shall be payable
notwithstanding the then prevailing market rates at the time payment is made, (C) there has been a course of conduct

 

    14 

     

    

 

between Gurnet
and the Borrower and the Guarantor giving specific consideration in this transaction for such agreement to pay the applicable Premium,
(D) the Borrower and the Guarantor shall be estopped hereafter from claiming differently than as agreed to in Section 1.02(c)
and (d), (E) their agreement to pay any applicable Premium is a material inducement to Gurnet to make the Term Loan
and the commitments hereunder, and (F) any applicable Premium represents a good faith, reasonable estimate and calculation
of the lost profits or damages of Gurnet and that it would be impractical and extremely difficult to ascertain the actual amount
of damages to Gurnet or profits lost by Gurnet as a result of such event.

 

		1.03	Payment of Interest on the Term Loan

 

		(a)	Interest Rate. Subject to Section 1.03(b) and Section 1.05, the
principal amount outstanding under the Term Loan shall (i) until the Term Loan shall be extended until the Transaction Term
Loan Maturity Date, accrue interest at a fixed per annum rate equal to fifteen percent (15.00%), which shall be payable on the
Non-Transaction Term Loan Maturity Date and (ii) if applicable, once the Transaction has been consummated, accrue interest
for each Quarter Date at a fixed per annum rate equal to fifteen percent (15.00%) which accrued interest shall be automatically
capitalized and added to the amount of the Term Loan on the last day of such Quarter Date. In the case of clause (ii), (x) such
accrued interest shall, after being so capitalized, be treated as part of the principal amount of the Term Loan and shall bear
interest in accordance with this Article 1 which shall be payable in accordance with the provisions of this Agreement
and (y) all amounts of capitalized interest must be repaid in full on the Transaction Term Loan Maturity Date. Notwithstanding
anything herein to the contrary, the principal amount outstanding under the Term Loan shall continue to accrue interest after the
Term Loan Maturity Date and such amount shall be payable on demand.

 

		(b)	Default Rate. Immediately upon the occurrence and during the continuance of an Event of
Default, the Obligations shall bear interest at a rate per annum which is five percentage points (5.00%) above the rate that is
otherwise applicable thereto (the “Default Rate”) unless Gurnet otherwise elects from time to time in its sole
discretion to impose a smaller increase. Fees and expenses which are required to be paid by the Borrower pursuant to the Finance
Documents but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations
(including the Default Rate). Payment or acceptance of the increased interest rate provided in this Section 1.03(b)
is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice
or limit any rights or remedies of Gurnet. All interest accruing pursuant to this Section 1.03(b) shall be payable
on demand and in cash.

 

		(c)	Computation: 365-Day Year. In computing interest, the date of the making of the Term Loan
shall be included and the date of payment shall be excluded; provided, however, that if the Term Loan is repaid on
the same day on which it is made, such day shall be included in computing interest on such Term Loan. Interest shall be computed
on the basis of a 365-day year for the actual number of days elapsed.

 

		1.04	Fees

 

The
Borrower shall pay to Gurnet the Premium, when due hereunder.

 

    15 

     

    

 

		1.05	Payments

 

All
cash payments (including prepayments) to be made by the Borrower under any Finance Document shall be made in immediately available
funds in Dollars, without setoff or counterclaim, before 10:00 a.m. New York time on the date when due; provided, that if
any demand for payment is made by Gurnet after 1:00 p.m. New York time on any Business Day, the Borrower shall make such payment
before 10:00 a.m. New York time on the following Business Day. Payments of principal and/or interest received after 10:00 a.m.
New York time are considered received at the opening of business on the next Business Day. When a payment is due on a day that
is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue
to accrue until paid.

 

		1.06	Taxes

 

		(a)	Defined Terms. For purposes of this Section 1.06, the term “applicable
law” includes FATCA.

 

		(b)	Except as otherwise provided in this Section 1.06 or as required by any applicable
law, each payment by the Borrower under any Finance Document shall be made free and clear of all Indemnified Taxes.

 

		(c)	If any Indemnified Taxes shall be required by any applicable law to be deducted from or in respect
of any amount payable under any Finance Document to Lender, (i) such amount shall be increased as necessary to ensure that,
after all required deductions for Indemnified Taxes are made (including deductions applicable to any increases to any amount under
this Section 1.06), Lender receives the amount it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, (iii) the Borrower shall timely pay the full amount deducted to the relevant taxing authority
or other authority in accordance with applicable law and (iv) within 30 days after such payment is made, the Borrower shall
deliver to Lender an original or certified copy of a receipt evidencing such payment or other evidence of payment reasonably satisfactory
to Lender.

 

		(d)	In addition, the Borrower agrees to pay, any Other Taxes. Within 30 days after such payment is
made, the Borrower shall deliver to Lender an original or certified copy of a receipt evidencing such payment or other evidence
of payment reasonably satisfactory to Lender.

 

		(e)	No Lender shall be entitled to receive any greater payment under this Section 1.06
than the Lender as of the date of this Agreement would have been entitled to receive, taking into account any change in applicable
law that would have been applicable to such Lender.

 

The Borrower
shall reimburse and indemnify, within 30 days after receipt of demand therefor, Lender for Indemnified Taxes (including any Indemnified
Taxes on amounts payable under this Section 1.06) paid by Lender and any liabilities arising therefrom or with respect
thereto, whether or not such Indemnified Taxes were correctly or legally asserted. A certificate of Lender claiming any compensation
under this clause (f), setting forth the amounts to be paid thereunder and delivered to the Borrower, shall be conclusive,
binding and final for all purposes, absent manifest error.

 

    16 

     

    

 

		(f)	Status of Lender.

 

		(i)	To the extent it is entitled to an exemption from or reduction of withholding Tax with respect
to payments made under any Finance Document, Lender shall deliver to the Borrower, at the time or times reasonably requested by
the Borrower, such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments
to be made without withholding or at a reduced rate of withholding. In addition, Lender, if reasonably requested by the Borrower,
shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower as will enable the
Borrower to determine whether or not Lender is subject to backup withholding or information reporting requirements.

 

		(ii)	Without limiting the generality of Section 1.06(f)(i), the Lender shall, to the extent
it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the Borrower) on or
prior to the date on which Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request
of the Borrower), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction
in U.S. federal withholding Tax, if applicable to the Borrower and Lender, duly completed, together with such supplementary documentation
as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made.

 

		(iii)	Without limiting the generality of Section 1.06(f)(i), Lender shall, to the extent it is
legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the Borrower) on or prior
to the date on which the Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request
of Borrower), if applicable, Forms W-8 or W-9 (establishing that such Lender is entitled to an exemption from U.S. backup withholding
tax).

 

		(iv)	Without limiting the generality of Section 1.06(f)(i), if a payment made to Lender
under any Finance Document would be subject to U.S. federal withholding Tax imposed by FATCA if the Lender were to fail to comply
with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code,
as applicable), the Lender shall deliver to the Borrower at the time or times prescribed by law and at such time or times reasonably
requested by the Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i)
of the Code) and such additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply
with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA
or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (iv),
“FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

		(v)	Lender agrees that if any form or certification it previously delivered expires or becomes obsolete
or inaccurate in any respect, it shall update such form or certification, provide such successor form, or promptly notify the Borrower
in writing of its legal inability to do so.

 

    17 

     

    

 

		(vi)	The Lender confirms that, on the day this Agreement is entered into, it is a Qualifying Lender.

 

Article
2

CONDITIONS PRECEDENT

 

		2.01	Conditions Precedent to the Closing Date

 

The
effectiveness of this Agreement and the occurrence of the Closing Date is subject to the following conditions precedent:

 

		(a)	a Rule 2.5 announcement concerning the Transaction shall have occurred;

 

		(b)	this Agreement shall be executed and delivered by each of the parties hereto;

 

		(c)	the Warrant, the Debenture and the Share Charge shall each be executed and delivered by each of
the parties party thereto;

 

		(d)	the Priorities Agreement shall be entered into by each of the parties party thereto in form and
substance satisfactory to Gurnet;

 

		(e)	Gurnet (or its counsel) shall have received certified copies of (i) the constitutional documents
of each of the Borrower and the Guarantor; (ii) resolutions of the board of directors of each of the Borrower and the Guarantor
approving and authorizing such Person’s execution, delivery and performance of the Finance Documents to which it is party
and the transactions contemplated thereby; (iii) signature and incumbency certificates of the officers and/or managers of
each of the Borrower and the Guarantor executing any of the Finance Documents, each of which such Person hereby certifies to be
true and complete, and in full force and effect without modification, it being understood that Gurnet may conclusively rely on
each such document and certificate until formally advised by the Borrower or the Guarantor, as applicable, of any changes therein;
and (iv) companies registration office, judgment and winding up petitions searches against each of the Borrower and the Guarantor;

 

		(f)	a certificate from the Guarantor confirming that the provisions of Section 239 of the Act do not
prohibit the execution by the Guarantor of any of the Finance Documents which it is intended that the Guarantor will execute by
reason of the fact that that the Guarantor and the Borrower are members of a Group consisting of a Holding Company and its Subsidiaries
for the purpose of Section 243(2) of the Act;

 

		(g)	a legal opinion of [●], legal adviser to the Borrower, addressed to Gurnet in form and substance
satisfactory to Gurnet, on the legality, validity and enforceability of this Agreement and the Security Documents and the valid
existence of the Borrower and the Guarantor and the authority and capacity of the Borrower and the Guarantor to enter into the
Finance Documents and on the due execution and choice of law of the Finance Documents;

 

		(h)	a Form C1 in respect of the Debenture shall have been delivered to Gurnet;

 

		(i)	a copy of all notices required to be sent under the Security Documents shall have been delivered
prior to the Closing Date;

 

    18 

     

    

 

		(j)	the Borrower, the Guarantor and EIB shall have entered into the EIB Amendment and Consent in form
and substance satisfactory to Gurnet; and

 

		(k)	the Borrower shall certify that (i) the representations and warranties in this Agreement shall
be true, accurate, and complete in all material respects on the Closing Date; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof; and provided, further that those representations and warranties expressly referring to a specific
date shall be true, accurate and complete in all material respects as of such date, and (ii) no Event of Default shall have
occurred and be continuing or result from the entering into of this Agreement.

 

		2.02	Conditions Precedent to the Drawdown Date

 

Gurnet’s
obligation to make the Term Loan available to the Borrower on the Drawdown Date is subject to the following conditions precedent:

 

		(a)	the Drawdown Date shall have occurred during the Drawdown Period;

 

		(b)	the posting of the Scheme Document to the shareholders of the Guarantor shall have occurred;

 

		(c)	the Borrower shall have complied with Section 2.03;

 

		(d)	the Borrower shall certify that (i) the representations and warranties in this Agreement shall
be true, accurate, and complete in all material respects on the Drawdown Date; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof; and provided, further that those representations and warranties expressly referring to a specific
date shall be true, accurate and complete in all material respects as of such date, and (ii) no Event of Default shall have
occurred and be continuing or result from the making of the Term Loan; and

 

		(e)	the Borrower shall certify that no default or Event of Default exists under and as defined in the
Existing Facility on the Drawdown Date.

 

		2.03	Procedures for Borrowing

 

Subject
to the prior satisfaction of all other applicable conditions to the making of the Term Loan set forth in this Agreement, to obtain
the Term Loan, the Borrower shall notify Gurnet (which notice shall be irrevocable) by electronic mail or facsimile by 10:00 a.m.
New York time ten Business Days before the proposed
Drawdown Date. Together with any such electronic or facsimile notification, the Borrower shall deliver to Gurnet by electronic
mail or facsimile a completed Borrowing Notice executed by an officer of the Borrower or his or her designee.

 

    19 

     

    

 

Article
3

BORROWER UNDERTAKINGS AND REPRESENTATIONS

 

The undertakings in this Article 3
remain in force from the date of this Agreement for so long as any amount is outstanding under this Agreement.

 

		A.	General undertakings

 

		3.01	Disposal of assets

 

		(a)	Except as provided below, the Borrower shall not, and shall procure that no other member of the
Group will, either in a single transaction or in a series of transactions whether related or not and whether voluntarily or involuntarily
dispose of all or any part of its business, undertaking or assets, including any Intellectual Property Rights unless:

 

		(i)	with the prior written consent of Gurnet; or

 

		(ii)	such disposal is a Permitted Disposal.

 

For the purposes of this Article 3,
“dispose” and “disposal” includes any act effecting sale, transfer, lease or other disposal.

 

		3.02	Compliance with laws

 

The Borrower and the Guarantor
shall comply in all material respects with all laws and regulations to which it is subject. In addition, without limiting the foregoing
sentence, each member of the Group shall (a) ensure, and cause each Subsidiary to ensure, that no person who owns a controlling
interest in or otherwise controls such member of the Group or any Subsidiary is or shall be listed on any Sanctions List, (b) not
use or permit the use of the proceeds of the Term Loan to violate any of the foreign asset control regulations of OFAC or any enabling
statute or Executive Order relating thereto, or to the extent such action is prohibited under any applicable Sanctions, and (c) comply,
and cause each Subsidiary to comply, with all applicable Bank Secrecy Act (“BSA”) laws and regulations, as amended.

 

		3.03	Hedging

 

The Borrower shall not, and shall
procure that each other member of the Group shall not, enter into any derivative transaction other than in accordance with the
Hedging Policy.

 

		3.04	Change in business

 

The Borrower shall procure that
no substantial change is made to the general nature of the business of the Borrower or the Group and the Guarantor as a whole from
that carried on at the date of this Agreement except as contemplated by the Transaction.

 

		3.05	Merger

 

The Borrower shall not, and shall
ensure that no other member of the Group shall, enter into any amalgamation, demerger, merger or corporate reconstruction unless:

 

		(a)	with the prior written consent of Gurnet; or

 

		(b)	such amalgamation, demerger, merger or corporate reconstruction is a Permitted Merger.

 

    20 

     

    

 

		3.06	Minimal worth of Borrower

 

The Borrower shall ensure that
at all times:

 

		(a)	gross revenues of the Borrower represent not less than 85% of the consolidated gross revenues of
the Group taken as a whole;

 

		(b)	Total Assets of the Borrower and the Guarantor represent not less than 85% of the consolidated
total assets of the Group taken as a whole; and

 

		(c)	EBITDA of the Borrower represents not less than 85% of the consolidated EBITDA of the Group,

 

each as calculated
based on the then latest consolidated audited accounts of the Group.

 

		3.07	Expenditure covenant

 

For the period from 1 January
2016 until 31 December 2020, the Borrower shall ensure that the total expenditure of the Group in respect of clinical trials, internal
research and development and CAPEX from 1 January 2015 to the relevant test date shall be no less than 75% of the figure for such
expenditure set out in the Business Plan for such period.

 

		3.08	Financial Testing

 

		(a)	The covenant set out in Section 3.06 shall be tested semi-annually on a 12-month rolling
consolidated basis with respect to the end of each Financial Year and the end of the second Financial Quarter in each Financial
Year.

 

		(b)	The covenant set out in in Section 3.07 shall be tested semi-annually on a consolidated
basis for the relevant period specified in in Section 3.07 ending on 31 December and 30 June in each year.

 

		3.09	Ownership

 

The Borrower shall promptly notify
Gurnet in the event of a new entity (including the Guarantor) becoming a majority owned Subsidiary (meaning ownership of 50.1%
(fifty point one per cent) or more) through any means, including but not limited to acquisition, creation and spin-off.

 

		3.10	Books and records

 

The Borrower shall ensure that
it has kept and will continue to keep proper books and records of account, in which full and correct entries, in all material respects,
shall be made of all financial transactions and the assets and business of that Borrower in accordance with GAAP as in effect from
time to time.

 

		3.11	Acquisitions

 

The Borrower shall not, and shall
ensure that no other member of the Group shall invest in or acquire any entity or a business going concern or an undertaking (whether
whole or substantially the whole of the assets or business), or any division or operating unit thereof, or any shares or securities
of any entity or a business or undertaking (or in each case, any interest in any of them) (or agree to any of the foregoing), unless:

 

		(a)	with the prior written consent of Gurnet; or

 

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		(b)	such acquisition is a Permitted Acquisition.

 

		3.12	Indebtedness

 

The Borrower shall not, and shall
ensure that no other member of the Group shall incur any Indebtedness, unless:

 

		(a)	with the prior written consent of Gurnet; or

 

		(b)	such Indebtedness is Permitted Indebtedness.

 

		3.13	Guarantees

 

The Borrower shall not, and shall
procure that no other member of the Group will issue or allow to remain outstanding any guarantees in respect of any liability
or obligation of any Person unless:

 

		(a)	with the prior written consent of Gurnet; or

 

		(b)	such guarantees are Permitted Guarantees.

 

		3.14	Permitted Payments; Investments

 

The Borrower shall not, and shall
procure that no other member of the Group shall, declare or distribute dividends, or make any payment in respect of any intercompany
loan or the Existing Facility, or return or purchase shares, or directly or indirectly make any Investment, unless:

 

		(a)	with the prior written consent of Gurnet;

 

		(b)	such payments are Permitted Payments; or

 

		(c)	the payment is a distribution in the solvent liquidation or reorganisation of any member of the
Group which is not a Borrower or the Guarantor so long as any payments or assets distributed as a result of such liquidation or
reorganisation are distributed to other members of the Group.

 

		3.15	Intellectual Property Rights

 

The Borrower shall, and shall
procure that each other member of the Group shall, (i) safeguard and maintain its rights with respect to the Intellectual
Property Rights in accordance with this Agreement, including complying in all material respects with all material contractual provisions
and (ii) ensure that any Intellectual Property Rights will be owned by or licensed to the Borrower, and where such Intellectual
Property Rights which are owned by a member of the Group are capable of registration and it is commercially reasonable to do so,
are registered in the name of the Borrower or the Guarantor.

 

		3.16	Maintenance of Status

 

The Borrower shall, and shall
procure that each other member of the Group shall, remain duly incorporated and validly existing as a corporate entity with limited
liability under the jurisdiction in which it is incorporated and, other than in respect of the Guarantor’s tax domiciliation
in Ireland and the business carried out and assets owned by the Borrower in the Federal Republic of

 

    22 

     

    

 

Germany, that it will have no
centre of main interests, permanent establishment or place of business outside the jurisdiction in which it is incorporated, and
that it will continue to have the power to carry on its business as it is now being conducted and continue to own its property
and other assets.

 

		3.17	Encumbrance

 

The
Borrower shall not, and shall procure that no other member of the Group shall, create, incur, allow, or suffer any Lien on any
of its property, or assign or convey any right to receive income, except for Permitted Liens, or enter into any agreement, document,
instrument or other arrangement with any Person which directly or indirectly prohibits or has the effect of prohibiting the Borrower
or any member of the Group from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of
the Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in herein.

 

		3.18	Taxes; Pensions

 

The
Borrower shall, and shall procure that each other member of the Group shall, timely file all required Tax Returns and reports and
timely pay all foreign, federal, state and local taxes, assessments, deposits and contributions owed by the Borrower and any other
member of the Group (unless contested in good faith and with the Borrower or any other member of the Group, as applicable, maintaining
reserves with respect thereto in accordance with GAAP), and shall deliver to Gurnet, on demand, appropriate certificates attesting
to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in
accordance with their terms.

 

		3.19	General Representations and Warranties

 

The Borrower (or, where the Guarantor
is specifically referred to below, the Guarantor) represents and warrants to Gurnet, as of the Closing Date and the Drawdown Date,
that:

 

		(a)	the Borrower is duly incorporated and validly existing as a company with limited liability under
the laws of Ireland , and the Guarantor is duly incorporated and validly existing as a company with limited liability under the
laws of Ireland, and it has power to carry on its business as it is now being conducted and to own its property and other assets;

 

		(b)	it has the power to execute, deliver and perform its obligations under the Finance Documents and
all necessary corporate, shareholder and other action has been taken to authorise the execution, delivery and performance of the
same by it;

 

		(c)	subject to the Legal Reservations, each Finance Document to which the Borrower and the Guarantor
is a party constitutes the legally valid, binding and enforceable obligations of the Borrower or the Guarantor (as applicable);

 

		(d)	the execution and delivery of, the performance of the Borrower’s and the Guarantor’s
obligations under and compliance with the provisions of the Finance Documents to which each of them is a party do not and will
not:

 

		(i)	contravene or conflict in any material respect with any applicable law, statute, rule or regulation,
or any judgment, decree or permit to which it is subject in its

 

    23 

     

    

 

jurisdiction
of incorporation or in any jurisdiction in which it has its centre of main interests or owns any assets;

 

		(ii)	contravene or conflict with any agreement or other instrument binding upon it which could reasonably
be expected to have a material adverse effect on its ability to perform its obligations under such Finance Documents;

 

		(iii)	contravene or conflict with any provision of its constitutional documents;

 

		(e)	the latest available consolidated audited accounts of the Guarantor and the latest available unaudited
accounts of the Borrower have been prepared on a basis consistent with previous years and have been approved by its auditors as
representing a true and fair view of the results of its operations for that year and accurately disclose, in accordance with GAAP,
or reserve against all the liabilities (actual or contingent) of the Guarantor;

 

		(f)	there has been no Material Adverse Change since the date of the latest audited accounts of the
Guarantor;

 

		(g)	no event or circumstance which constitutes an Event of Default has occurred and is continuing unremedied
or unwaived;

 

		(h)	no litigation, arbitration, administrative proceedings or investigation is current or to its knowledge
is threatened or pending before any court, arbitral body or agency which has resulted or if adversely determined (after giving
effect to any insurance maintained by the Group) is reasonably likely to result in a Material Adverse Change, nor is there subsisting
against it or any of its Subsidiaries any unsatisfied judgment or award (unless contested in good faith and with the Borrower or
the Guarantor maintaining, in accordance with GAAP, reserves with respect thereto);

 

		(i)	each of the Borrower and the Guarantor has obtained all Authorisations that are necessary for such
Person to lawfully comply with all of its obligations under the Finance Documents to which it is a party, and all such Authorisations
are in full force and effect;

 

		(j)	the Borrower and the Guarantor (as applicable) is the sole legal and beneficial owner and has good title to the assets which
it charges or purports to charge pursuant to the Security Documents;

 

		(k)	the Borrower has complied in all material respects with all of the covenants and other terms contained
in the Existing Facility and no default or Event of Default (as defined thereunder) has occurred and is continuing thereunder;

 

		(l)	to the best of its knowledge and belief (having made due and careful enquiry) no material Environmental
Claim has been commenced or is threatened against it not previously disclosed to Gurnet;

 

		(m)	[reserved];

 

		(n)	the Group Structure Chart is true, complete and accurate in all material respects and represents
the complete corporate structure of the Group as at the date of this Agreement;

 

    24 

     

    

 

		(o)	it is not required to make any deduction for or on account of any Tax from any payment it may make
under this Agreement to a Qualifying Lender;

 

		(p)	[reserved];

 

		(q)	[reserved];

 

		(r)	[reserved];

 

		(s)	[reserved];

 

		(t)	[reserved];

 

		(u)	it is not necessary that any Finance Document be filed, recorded or enrolled with any court or
other authority in Ireland or that any stamp, registration or similar tax be paid on or in relation to any Finance Document, or
the transactions contemplated by any Finance Document;

 

		(v)	any factual information (including the Business Plan) provided by the Borrower or any member of
the Group for the purposes of entering into this Agreement and any related documentation was true and accurate in all material
respects as at the date it was provided or as at the date (if any) at which it is stated; any financial projections contained in
the Business Plan have been prepared on the basis of recent historical information and on the basis of reasonable assumptions;
nothing has occurred or been omitted from the Business Plan and no information has been given or withheld that results in the information
contained in the Business Plan being untrue or misleading in any material respect;

 

		(w)	the Borrower and each other member of the Group has no Indebtedness outstanding other than the
Permitted Indebtedness;

 

		(x)	neither it nor the Guarantor, nor any of their respective assets, is entitled to immunity from
suit, execution, attachment or other legal process;

 

		(y)	[reserved];

 

		(z)	[reserved];

 

		(aa)	the pension schemes for the time being operated by the Borrower and the Guarantor (if any) are
funded in accordance with their rules and to the extent required by law or otherwise comply with the requirements of any law applicable
in the jurisdiction in which the relevant pension scheme is maintained;

 

		(bb)	each of the Borrower and the Guarantor is in compliance in all material respects with all applicable
European Union legislation and the legislation of its jurisdiction of incorporation, including any applicable anti-corruption legislation;

 

		(cc)	other than as set out in the Group structure chart provided to Gurnet prior to the Closing Date
(the “Group Structure Chart”), the Borrower and the Guarantor own no other equity and/or shares in any other
business entity;

 

    25 

     

    

 

		(dd)	it has read and understood this Agreement and determined that it is in its best commercial interest
and consistent with its purpose of operations to enter into this Agreement;

 

		(ee)	no member of the Group is dormant;

 

		(ff)	it is in compliance with Section 3.06 and Section 3.07;

 

		(gg)	the fair salable value of the Borrower’s assets (including goodwill minus disposition costs)
exceeds the fair value of its liabilities, the Borrower is not left with unreasonably small capital after the transactions in this
Agreement and the Borrower is able to pay its debts (including trade debts) as they mature;

 

		(hh)	the Borrower shall use the proceeds of the Term Loan solely for working capital purposes;

 

		(ii)	the Borrower is not an “investment company” or a company “controlled” by
an “investment company” under the Investment Company Act of 1940, as amended and the Borrower is not engaged as one
of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of
Governors);

 

		(jj)	all material returns, reports and statements with respect to material amounts of federal, state,
local and foreign income and franchise and other Taxes (collectively, the “Tax Returns”) required to be filed
by the Borrower, the Guarantor or any of their Subsidiaries have been filed with the appropriate authorities; and

 

		(kk)	all material amounts of Taxes payable by the Borrower, the Guarantor or any of their Subsidiaries
or required to be withheld and paid over by any of the Borrower, the Guarantor or any of their Subsidiaries (other than Taxes which
are not delinquent) have been paid except those not delinquent by more than 30 days or, if more than 30 days delinquent, those
that are being contested in good faith by appropriate proceedings which stay the enforcement of any lien and for which adequate
reserves if required have been provided for in accordance with GAAP.

 

The representations and warranties
set out above shall survive the execution of this Agreement and are, with the exception of the representations set out in paragraphs
(n), (o), (u) and (v) above, deemed repeated on the Drawdown Date by reference to the facts and circumstances
then existing (except if any such representation and warranty relates to an earlier date it shall refer to the facts and circumstances
as of such earlier date).

 

Article
4

GUARANTY

 

		4.01	Guaranty

 

		(a)	The Guarantor hereby unconditionally and irrevocably, as a primary obligor and not only a surety,
guarantees to Gurnet and its successors and permitted assigns, the prompt and complete payment and performance by the Borrower
of the Obligations when due (whether at the stated maturity, by acceleration or otherwise).

 

    26 

     

    

 

		(b)	The guaranty contained in this Article 4 is a guaranty of payment and not of collection
and shall remain in full force and effect until all of the Obligations to Gurnet under this Agreement shall have been Paid in Full.

 

		(c)	No payment made by Borrower, the Guarantor or any other Person or received or collected by Gurnet
from the Borrower, the Guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application
at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or
otherwise affect the liability of the Guarantor hereunder which the Guarantor shall, notwithstanding any such payment (other than
any payment received or collected from the Guarantor in respect of the Obligations), remain liable for the Obligations until the
Obligations to Gurnet under the Agreement are Paid in Full. Upon the Obligations to Gurnet under this Agreement being Paid in Full,
the guaranty under this Agreement shall be terminated automatically without any further action.

 

		4.02	No Subrogation

 

Notwithstanding
any payment made by the Guarantor hereunder or any set-off or application of funds of the Guarantor by Gurnet, the Guarantor shall
not be entitled to be subrogated to any of the rights of Gurnet against the Borrower or right of offset held by Gurnet for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or reimbursement from the Borrower
in respect of payments made by the Guarantor hereunder, until all of the Obligations to Gurnet under this Agreement are Paid in
Full. If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all of the Obligations
to Gurnet under this Agreement shall not have been Paid in Full, such amount shall be held by the Guarantor in trust for Gurnet,
segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor, be turned over to Gurnet in the
exact form received by the Guarantor (duly indorsed by the Guarantor to Gurnet, if required), to be applied against the Obligations,
whether matured or unmatured, in a manner consistent with the provisions of this Agreement.

 

		4.03	Amendments, etc. with respect to the Obligations

 

		(a)	The Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of
rights against the Guarantor and without notice to or further assent by the Guarantor, any demand for payment of any of the Obligations
made by Gurnet may be rescinded by Gurnet and any of the Obligations continued, and the Obligations, or the liability of any other
Person upon or for any part thereof, or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or released by Gurnet, and this Agreement and any other
documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part,
as Gurnet may deem advisable from time to time.

 

		(b)	Gurnet may, from time to time, in its reasonable discretion and without notice to the Guarantor,
take any or all of the following actions: (a) retain or obtain the primary or secondary obligation of any obligor or obligors,
in addition to the undersigned, with respect to any of the Obligations, (b) extend or renew any of the Obligations for one
or more periods (whether or not longer than the original period), alter or exchange any of the Obligations, or release or compromise
any obligation of any of the undersigned hereunder or any obligation of any nature of any other obligor with respect to any of
the

 

    27 

     

    

 

Obligations,
(c) release any guaranty or right of offset, or extend or renew for one or more periods (whether or not longer than the original
period), and (d) resort to the undersigned (or any of them) for payment of any of the Obligations when due, whether or not
Gurnet shall have proceeded against any other of the undersigned or any other obligor primarily or secondarily obligated with respect
to any of the Obligations.

 

		4.04	Waivers

 

		(a)	To the extent permitted by applicable law, the Guarantor waives any and all notice of the creation,
renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by Gurnet upon the guaranty contained
in this Article 4 or acceptance of the guaranty set forth in this Article 4. The Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the guaranty contained in this Article 4, and all dealings between Borrower and the Guarantor, on the one hand,
and Gurnet, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guaranty
contained in this Article 4. To the extent permitted by applicable law, the Guarantor waives (a) diligence, presentment,
protest, demand for payment and notice of default, dishonor or nonpayment and all other notices whatsoever to or upon the Borrower
or the Guarantor with respect to the Obligations, (b) notice of the existence or creation or non-payment of all or any of
the Obligations and (c) all diligence in collection or protection of or realization upon any Obligations or guaranty of any
Obligations.

 

		(b)	Upon the existence and continuance of an Event of Default, Gurnet in its sole discretion, without
prior notice to or consent of the Guarantor, may elect to: (i) compromise or adjust the Obligations or any part of it or make
any other accommodation with the Borrower or the Guarantor or (ii) exercise any other remedy against the Borrower or the Guarantor.
No such action by Gurnet shall release or limit the liability of the Guarantor, who shall remain liable under the guaranty set
forth in this Agreement after the action, even if the effect of the action is to deprive such Guarantor of any subrogation rights,
rights of indemnity, or other rights to collect reimbursement from the Borrower or the Guarantor for any sums paid to Gurnet, whether
contractual or arising by operation of law or otherwise. The Guarantor expressly agrees that under no circumstances shall it be
deemed to have any right, title, interest or claim in or to any real or personal property to be held by Gurnet or any third party
after any foreclosure or transfer in lieu of foreclosure of any security for the Obligations.

 

		4.05	Payments

 

The
Guarantor hereby guaranties that payments hereunder will be paid to Gurnet without set-off or counterclaim in Dollars at the office
of Gurnet specified in the notice provisions hereof.

 

Article
5

INFORMATION CONCERNING THE GROUP

 

		5.01	[Reserved]

 

    28 

     

    

 

		5.02	Information concerning the Group

 

The Borrower shall:

 

		(a)	deliver to Gurnet:

 

		(i)	as soon as they become available but in any event within 180 days after the end of each of its
financial years the Guarantor’s audited consolidated annual report, balance sheet, profit and loss account and auditors report
for that financial year, and the Borrower’s unaudited annual report, balance sheet, profit and loss account, together with
a Compliance Certificate as set out in the Existing Facility signed by two directors confirming compliance by the Borrower with
the covenants pursuant to Sections 3.06 and 3.07 and with evidence of such compliance and related calculations;

 

		(ii)	as soon as they become publicly available but in any event within 90 days after the end of each
of the relevant accounting periods the Guarantor’s and the Borrower’s interim consolidated and unconsolidated semi-annual
report, balance sheet and profit and loss account for the first half-year of each of its financial years, together with a Compliance
Certificate as set out in the Existing Facility signed by two directors confirming compliance by the Borrower with the covenants
pursuant to Sections 3.06 and 3.07 and with evidence of such compliance and related calculations;

 

		(iii)	as soon as they become publicly available but in any event within 45 days after the end of each
of the relevant accounting periods the Guarantor’s and the Borrower’s interim consolidated and unconsolidated quarterly
reports, balance sheet and profit and loss account for the first and the third quarter of each of its financial years;

 

		(iv)	as soon as they are delivered to the board of directors, the monthly management accounts as delivered
to the board of directors on a monthly basis;

 

		(v)	as soon as they are delivered to the board of directors, the annual budgets delivered to the board
of directors on an annual basis; and

 

		(vi)	from time to time, such further information on its general financial situation as Gurnet may reasonably
require or such certificates of compliance with the undertakings of Article 3 as Gurnet may deem necessary;

 

and

 

		(b)	inform Gurnet promptly of:

 

		(i)	any material alteration to the constitutional documents (as applicable) or shareholding structure
of the Borrower or the Guarantor and of any change of ownership of 5% or more of the Borrower or Guarantor shares after the Closing
Date;

 

		(ii)	any fact which obliges it to prepay any financial indebtedness or any European Union funding;

 

    29 

     

    

 

		(iii)	any event or decision that constitutes or may result in a Mandatory Prepayment/Commitment Termination
Trigger;

 

		(iv)	any intention on its part to grant any security over any of its assets in favor of a third party;

 

		(v)	[reserved];

 

		(vi)	any fact or event that is reasonably likely to prevent the substantial fulfillment of any obligation
of the Borrower under this Agreement;

 

		(vii)	any event listed in Article 6 having occurred or being threatened or anticipated;

 

		(viii)	any investigations concerning the integrity of the members of the Borrower’s board of directors
or managers;

 

		(ix)	to the extent permitted by law, any material litigation, arbitration, administrative proceedings
or investigation carried out by a court, administration or similar public authority, which, to the best of its knowledge and belief,
is current, imminent or pending against the Borrower or its controlling entities or members of the Borrower’s management
bodies in connection with Criminal Offences related to the Term Loan; or

 

		(x)	any litigation, arbitration or administrative proceedings or investigation which is current, threatened
or pending and which might if adversely determined result in a Material Adverse Change.

 

Article
6

EVENTS OF DEFAULT

 

		6.01	Right to Demand Repayment

 

The Borrower shall repay all
or part of the Term Loan (as requested by Gurnet) forthwith, together with accrued return under Section 1.03 and all
other accrued or outstanding amounts under this Agreement including the Premium, upon written demand being made by Gurnet if any
of the following events occur.

 

		6.01A	Immediate Demand

 

Gurnet may make such demand immediately:

 

		(a)	if the Borrower does not pay on the due date any amount payable by it pursuant to this Agreement
at the place and in the currency in which it is expressed to be payable, unless (i) its failure to pay is caused by an administrative
or technical error or a Disruption Event and (ii) payment is made within three Business Days of its due date;

 

		(b)	if any information or document given to Gurnet by or on behalf of the Borrower or the Guarantor
or any representation, warranty or statement made or deemed to be made by the Borrower in or pursuant to this Agreement is or proves
to have been incorrect, incomplete or misleading in any material respect;

 

    30 

     

    

 

		(c)	if, following any default of the Borrower or the Guarantor or any other member of the Group in
relation to any loan, or any obligation arising out of any financial transaction, other than the Term Loan,

 

		(i)	the Borrower or the Guarantor or any other member of the Group is required or is capable of being
required or will, following expiry of any applicable contractual grace period, be required or be capable of being required to prepay,
discharge, close out or terminate ahead of maturity such other loan or obligation; or

 

		(ii)	any financial commitment for such other loan or obligation is cancelled or suspended;

 

		(d)	if the Borrower or the Guarantor or any member of the Group is unable to pay its debts as they
fall due, or suspends its debts, or makes or seeks to make a composition with its creditors including a moratorium, or commences
negotiations with one or more of its creditors (or, in the case of the Borrower, is unable or admits inability to pay its debts
within the meaning of section 570 of the Act) with a view to rescheduling any of its financial indebtedness;

 

		(e)	if any corporate action, legal proceedings or other procedure or step is taken in relation to the
suspension of payments, a moratorium of any indebtedness, dissolution, administration, examinership or reorganisation (by way of
voluntary arrangement, scheme of arrangement or otherwise) or an order is made or an effective resolution is passed for the winding
up of the Borrower or the Guarantor or any member of the Group, or if the Borrower or the Guarantor or any member of the Group
takes steps towards a substantial reduction in its capital, is declared insolvent or ceases or resolves to cease to carry on the
whole or any substantial part of its business or activities;

 

		(f)	if an encumbrancer takes possession of, or a receiver, liquidator, administrator, administrative
receiver, examiner or similar officer is appointed, whether by a court of competent jurisdiction or by any competent administrative
authority or by any Person, of or over, any part of the business or assets of the Borrower or the Guarantor or any member of the
Group;

 

		(g)	[reserved];

 

		(h)	if any distress, execution, sequestration or other process is levied or enforced upon the property
of the Borrower and is not discharged or stayed within 14 days;

 

		(i)	if a Material Adverse Change occurs, as compared with the Borrower’s or the Guarantor’s
condition at the date of this Agreement;

 

		(j)	if it is or becomes unlawful for the Borrower or the Guarantor to perform any of its obligations
under this Agreement or the Security Documents or this Agreement or the Security Documents are not effective in accordance with
its terms or is alleged by the Borrower or the Guarantor to be ineffective in accordance with its terms;

 

		(k)	if the Borrower or the Guarantor fail to comply with or neglect to perform any obligation or violate
any covenant, as applicable, in Sections 3.01, 3.03 to 3.09, 3.11 to 3.14, 3.17
and 5.02;

 

    31 

     

    

 

		(l)	if the Borrower or the Guarantor fail or neglect to perform, keep or observe any other term, provision,
condition, covenant or agreement contained in this Agreement or any Finance Document, and as to any default (other than those specified
in this Article 6) under such other term, provision, condition, covenant or agreement that can be cured, has failed
to cure the default within 30 days after the occurrence thereof; provided, however, that if the default cannot by
its nature be cured within the 30 day period or cannot after diligent attempts by the Borrower or the Guarantor, as applicable,
be cured within such ten day period, and such default is likely to be cured within a reasonable time, then the Borrower or the
Guarantor, as applicable, shall have an additional period (which shall not in any case exceed 30 days) to attempt to cure such
default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no
Term Loan shall be made during such cure period);

 

		(m)	if one or more final judgments, orders, or decrees for the payment of money in an amount, individually
or in the aggregate, of at least $500,000 (not covered by independent third-party insurance as to which liability has been accepted
by such insurance carrier) shall be rendered against the Borrower or the Guarantor and the same are not, within 30 days after the
entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the
expiration of any such stay (provided that the Term Loan will not be made prior to the discharge, stay, or bonding of such
judgment, order, or decree); or

 

		(n)	at any time any material provision of any Security Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or thereunder or as a result of facts or omissions by Gurnet
or the satisfaction in full of the all the Obligations, ceases to be in full force and effect; or any member of the Group contests
in writing the validity or enforceability of any provision of any Security Document; or any member of the Group denies in writing
that it has any further liability or obligations under any Security Document (other than as a result of repayment in full of the
Obligations), or purports in writing to revoke or rescind any Security Document, in each case with respect to a material provisions
of such Security Document.

 

		6.02	Other rights at law

 

Section 6.01
shall not restrict any other right of Gurnet at law to require prepayment of the Term Loan when such prepayment is otherwise required
pursuant to the terms of this Agreement.

 

		6.03	Indemnity

 

In case of demand under Section 6.01,
the Borrower shall pay to Gurnet the amount demanded. Amounts due by the Borrower pursuant to this Section 6.03 shall
be payable before 10:00 a.m. New York time on the date of payment specified in Gurnet’s demand; provided, that if
any demand for payment is made by Gurnet after 1:00 p.m. New York time on any Business Day, the Borrower shall make such payment
before 10:00 a.m. New York time on the following Business Day.

 

		6.04	Non-Waiver

 

No failure or delay or single
or partial exercise by Gurnet in exercising any of its rights or remedies under this Agreement shall be construed as a waiver of
such right or remedy. The rights

 

    32 

     

    

 

and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

Article
7

NOTICES

 

All notices, consents,
requests, approvals, demands, or other communication by any party to this Agreement or any other Finance Document must be in writing
and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three Business
Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid;
(b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one Business Day after deposit with a reputable
overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed
to the party to be notified and sent to the address, facsimile number, or email address indicated below. Gurnet or the Borrower
may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance
with the terms of this Article 7.

 

	For Gurnet:	Gurnet Point Capital, L.P.
	 	c/o Waypoint International GP LLC
	 	55 Cambridge Parkway, Suite 401
	 	Cambridge, MA 02142
	 	Attention: James Singleton
	 	Email: James.Singleton@waypointcapital.net
	 	 
	 	with a copy to:
	 	 
	 	Weil, Gotshal & Manges LLP
	 	767 Fifth Avenue
	 	New York, NY 10153
	 	Attention: Daniel S. Dokos
	 	Email: daniel.dokos@weil.com
	 	 
	For the Borrower:	Innocoll Pharmaceuticals Limited
	 	Unit 9, Block D, Monksland Business Park,
	 	Monksland, Athlone,
	 	County Roscommon, Ireland
	 	Attention: Anthony Zook
	 	Email: TZook@innocoll.com
	 	 
	 	 
	 	with a copy to:
	 	 
	 	Dentons US LLP
	 	1221 Avenue of the Americas
	 	New York, NY 10020
	 	Attention: Jeffrey A. Baumel; Ilan Katz
	 	Email: jeffrey.baumel@dentons.com;

    ilan.katz@dentons.com
	 	

 

    33 

     

    

 

	For Guarantor:	Innocoll Holdings Public Limited Company
	 	Unit 9, Block D, Monksland Business Park,
	 	Monksland, Athlone,
	 	County Roscommon, Ireland
	 	Attention: Anthony Zook
	 	Email: TZook@innocoll.com
	 	 
	 	 
	 	with a copy to:
	 	 
	 	Dentons US LLP
	 	1221 Avenue of the Americas
	 	New York, NY 10020
	 	Attention: Jeffrey A. Baumel; Ilan Katz
	 	Email: jeffrey.baumel@dentons.com;

    ilan.katz@dentons.com

 

Article
8

CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

 

This Agreement shall
be governed by and construed in accordance with New York law. The Borrower and each Lender submit to the exclusive jurisdiction
of the State and Federal courts in New York, New York; provided, however, that nothing in this Agreement shall be
deemed to operate to preclude any Lender from bringing suit or taking other legal action in any other jurisdiction to enforce a
judgment or other court order in favor of such Lender. The Borrower and each Lender expressly submit and consent in advance to
such jurisdiction in any action or suit commenced in any such court, and the Borrower and each Lender hereby waive any objection
that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting
of such legal or equitable, relief as is deemed appropriate by such court. The Borrower and each Lender hereby waives personal
service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints,
and other process may be made by registered or certified mail addressed to the address set forth in Article 7 of this
Agreement and that service so made shall be deemed completed upon the earlier to occur of the Borrower’s or each Lender’s,
as the case may be, actual receipt thereof or three days after deposit in the U.S. mails, proper postage prepaid.

 

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

 

Article
9

GENERAL PROVISIONS

 

		9.01	Successors and Assigns

 

This
Agreement binds and is for the benefit of the successors and permitted assigns of each party. The Borrower may not assign this
Agreement or any rights or obligations under it without Gurnet’s prior written consent (which may be granted or withheld
in Gurnet’s discretion). Gurnet has the right (with the consent of the Borrower (not to be unreasonably withheld, delayed
or conditioned), unless an Event of Default has occurred and is continuing or the applicable Term Loan Maturity Date has occurred
in either such case no such consent shall be required), to sell, transfer, assign, negotiate, or grant participation in all or
any part of, or any interest in, Gurnet’s obligations, rights, and benefits under this Agreement and the other Finance Documents.

 

		9.02	Register and Participants

 

		(a)	Each Lender shall provide, and Borrower shall maintain at its offices, a copy of each agreement
pursuant to which any Lender purports to sell, transfer, assign, negotiate, or

 

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grant participation
in all or any part of, or any interest in, such Lender’s obligations, rights, and benefits under this Agreement and the other
Finance Documents. The Borrower shall maintain at its offices a register for the recordation of the names and addresses of the
Lenders, and the commitments of, and principal amounts (and stated interest) owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and
the Borrower and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
and the owner of the amounts owing to it under the Finance Documents as reflected in the Register for all purposes of the Finance
Documents. The Register shall be available for inspection by any Lender, at any reasonable time and from time to time upon reasonable
prior notice. No sale, transfer, assignment or negotiation of all or any part of, or any interest in, such a Lender’s obligations,
rights, and benefits under this Agreement and the other Finance Documents shall be permitted or effective unless it is recorded
on the Register.

 

		(b)	Any Lender may at any time grant participations to any Person (other than a natural Person, or
a Holding Company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the
Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion
of such Lender’s rights and/or obligations under this Agreement and other Finance Documents; provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, and (iii) the Borrower and Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement
or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right
to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement. The Borrower
agrees that each Participant shall be entitled to the benefits of Section 1.06 (subject to the requirements and limitations
therein, including the requirements under Section 1.06(f) (it being understood that the documentation required under
Section 1.06(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to Section 9.01; provided that such Participant shall not be entitled
to receive any greater payment under Section 1.06(f) with respect to any participation, than its participating Lender
would have been entitled to receive. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary
agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts
(and stated interest) of each Participant’s interest in the Term Loan or other obligations under the Finance Documents (the
“Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion
of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest
in any commitments, loans, letters of credit or its other obligations under any Finance Document) to any Person except to the extent
that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered
form under Section 5f.103-1(c) of the United States Treasury Regulations, or is otherwise required thereunder. The entries
in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded
in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to
the contrary. No grant of a participation to any Person shall be permitted or effective unless it is recorded on the Participant
Register.

 

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		9.03	Indemnification; Expenses

 

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

 

		(b)	Expenses. Gurnet agrees
                                         to reimburse the Borrower on the Drawdown Date for any fees paid by the Borrower, the
                                         Guarantor or any of their respective Subsidiaries to EIB (the “EIB Fees”)
                                         in connection with the EIB Amendment and Consent. The Borrower agrees to pay (i) all
                                         reasonable and documented expenses incurred by Gurnet and its Affiliates (including the
                                         reasonable fees and disbursements of counsel to Gurnet, in connection with the preparation,
                                         negotiation, execution, delivery and administration of this Agreement and the Finance
                                         Documents or any amendments, modifications or waivers of the provisions hereof or thereof
                                         (whether or not the transactions contemplated hereby or thereby shall be consummated));
                                         provided, that the Borrower shall not be responsible for any such expenses in
                                         excess of $135,000 in the aggregate, (ii) all reasonable and documented expenses
                                         incurred by Gurnet (including the reasonable fees and disbursements of counsel to Gurnet,
                                         in connection with the enforcement or protection of its rights (A) in connection
                                         with this Agreement and the Finance Documents, including its rights under this Section 9.03(b)
                                         or (B) in connection with the Obligations, including all such expenses incurred
                                         during any workout, restructuring or negotiations in respect of the Obligations), (iii) all
                                         reasonable and documented costs and expenses incurred by Gurnet (and/or any third party
                                         employed by Gurnet) in exercising its rights under this Agreement and (iv) any EIB
                                         Fees with respect to which Gurnet has reimbursed the Borrower, the Guarantor or any of their respective Subsidiaries in connection with the
                                         EIB Amendment and Consent. The foregoing amounts incurred after the Closing Date shall
                                         be due and payable within 30 days after invoice date; provided, however,
                                         that the amounts set forth in this Section 9.03(b) may be capitalized and
                                         added to the amount of the Term Loan that is paid on the Term Loan Maturity Date; provided,
                                         further, however, that if an Event of Default shall have occurred and be
                                         continuing, the amounts set forth in this Section 9.03(b) are due and payable
                                         on demand.

 

		9.04	Time of Essence

 

Time
is of the essence for the performance of all Obligations in this Agreement.

 

		9.05	Severability of Provisions

 

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

 

    36 

     

    

 

		9.06	Amendments in Writing; Waiver; Integration

 

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

 

		9.07	Counterparts

 

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

 

		9.08	Survival

 

All covenants,
representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its
terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive
the termination of this Agreement) have been Paid in Full. The obligation of the Borrower in Section 9.03(a) to indemnify
Gurnet shall survive until the statute of limitations with respect to such claim or cause of action shall have run.

 

		9.09	Confidentiality

 

In handling
any confidential information, each Lender shall exercise the same degree of care that it exercises for its own proprietary information,
but disclosure of information may be made: (a) to each Lender’s Subsidiaries or Affiliates; (b) to prospective
transferees or purchasers of any interest in the Term Loan (provided, however, each Lender shall use its best efforts
to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required
by law, regulation, subpoena, or other order; and (d) as each Lender considers appropriate in exercising remedies under the
Finance Documents. Confidential information does not include information that is either: (i) in the public domain or in a
Lender’s possession when disclosed to such Lender, or becomes part of the public domain after disclosure to such Lender;
or (ii) disclosed to a Lender by a third party if such Lender does not know that the third party is prohibited from disclosing
the information.

 

		9.10	Electronic Execution of Documents

 

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

 

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		9.11	Captions

 

The headings
used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.

 

		9.12	Construction of Agreement

 

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

 

		9.13	Relationship

 

The relationship
of the parties to this Agreement is determined solely by the provisions of this Agreement. The parties do not intend to create
any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of
parties to an arm’s-length contract.

 

		9.14	Third Parties

 

Nothing in
this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies under or by reason
of this Agreement on any Persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve
or discharge the obligation or liability of any Person not an express party to this Agreement; or (c) give any Person not
an express party to this Agreement any right of subrogation or action against any party to this Agreement.

 

[Signature Pages Follow]

 

    38 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized
as of the date first written above.

 

	 	INNOCOLL
    PHARMACEUTICALS LIMITED, as Borrower
	 	 	 
	 	By:	 
	 	 	Director / Attorney

 

Signature Page to Loan Agreement

 

     

     

    

 

	 	INNOCOLL
    HOLDINGS PUBLIC LIMITED COMPANY, as Guarantor
	 	 	 
	 	By:	 
	 	 	Director / Attorney

 

Signature Page to Loan Agreement

 

     

     

    

 

	[●],
    as Lender	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Loan Agreement

 

     

     

    

 

Exhibit
A

 

[FORM OF]
BORROWING NOTICE

 

[●],
2017

 

Reference is
made to the Loan and Guaranty Agreement, dated as of [●], 2017 (as it may be amended, amended and restated, extended,
refinanced, replaced, supplemented or otherwise modified from time to time, the “Agreement”; the terms
defined therein and not otherwise defined herein being used herein as therein defined), by and among INNOCOLL PHARMACEUTICALS
LIMITED, an Irish private limited company incorporated and having its registered office at Unit 9, Block D,
Monksland Business Park, Monksland, Athlone, County Roscommon, Ireland (“Borrower”), INNOCOLL
HOLDINGS PUBLIC LIMITED COMPANY, an Irish public limited company (registration number 544604) and having its
registered office at Unit 9, Block D, Monksland Business Park, Monksland, Athlone, County Roscommon, Ireland (the
“Guarantor”) and [●] (“Gurnet”).

 

Pursuant to Section
2.03 of the Agreement, the undersigned hereby requests that Gurnet make a Term Loan to the Borrower in accordance with the
terms and conditions of the Agreement on [__], 2017 (the “Drawdown Date”), which shall be on a Business Day
during the Drawdown Period, in the amount of $10,000,000.

 

The account of the
Borrower to which the proceeds of the Term Loan requested on the Drawdown Date are to be made available by the Gurnet to the Borrower
in accordance with the wire instructions is set forth below:

 

[INSERT ACCOUNT INFORMATION]

 

[Remainder
of page intentionally left blank]

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned
has caused this Borrowing Notice to be duly executed and delivered as of the date and at the place first written above.

 

	 	INNOCOLL
    PHARMACEUTICALS LIMITED, as Borrower
	 	 	 
	 	By:	 
	 	 	Director / Attorney

 

Signature
Page to Borrowing NoticeOHR Pharmaceutical, Inc. - 8-K

Exhibit
4.1

 

COMMON
STOCK PURCHASE WARRANT

 

ohr
pharmaceutical, inc.

 

	 	Initial Exercise Date: April [__], 2017
	Warrant Shares: [_______]	Issue Date: April [___], 2017

  

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

 

Section
1.            Definitions. Capitalized terms used and
not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the
“Purchase Agreement”), dated April 5, 2017, among the Company and the purchasers signatory
thereto.

 

Section
2.            Exercise.

 

a)          Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or
agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) of a duly executed facsimile copy (or e-mail attachment) 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 for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on
a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice
of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall
not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for
cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises
of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant
Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date
of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of
such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions
of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available
for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

    1

     

    

 

b)           Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $1.00,
subject to adjustment hereunder (the “Exercise Price”).

 

c)            Cashless
Exercise. Following the one (1) year anniversary of the Issue Date, 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
Shares 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 Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
if such exercise were by means of a cash exercise rather than a cashless exercise.

 

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

 

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

 

    2

     

    

 

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

 

d)             Mechanics
of Exercise.

 

i.          Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical
delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the
Notice of Exercise by the date that is the earlier of (i) one (1) Trading Day 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 Share
Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have
become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date
of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless
exercise) is received within the earlier of (i) three (3) Trading Days and (ii) the number of Trading Days comprising the Standard
Settlement Period following delivery of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant
in the FAST program so long as this Warrant remains outstanding and exercisable. 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.

 

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

 

    3

     

    

 

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

 

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

 

    4

     

    

 

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

 

vi.        Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the
Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
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 stockholder 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. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and
any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution
Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii)
exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation,
any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein
beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence,
for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible
for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties)
and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a
Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a
more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder
or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder,
upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided
that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions
of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until
the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained
in this paragraph shall apply to a successor holder of this Warrant.

 

    6

     

    

 

Section
3.            Certain Adjustments.

 

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

 

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

 

    7

     

    

 

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

 

d)          Fundamental
Transaction. If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have
the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate
Consideration”). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one shares of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of shares
of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following
such Fundamental Transaction. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include
terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and insuring that the
Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction. “Fundamental Transaction” means any of the following: (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination).

 

    8

     

    

 

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

 

f)           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 deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email
to the Holder at its last facsimile number or email 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 Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common
Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such
notice or any defect therein or in the delivery 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 Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the
date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    9

     

    

 

Section
4.             Transfer of Warrant.

 

a)           Transferability.
This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment
of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient
to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company
shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the
Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3)
Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant,
if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having
a new Warrant issued.

 

b)          New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of
the Company, together with a written notice specifying the names and denominations in which new Warrants are to be 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 Issue
Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

    10

     

    

 

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.

 

Section
5.             Miscellaneous.

 

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

 

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

 

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

 

d)         Authorized
Shares.

 

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

 

    11

     

    

 

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

 

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

 

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

 

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

 

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

 

    12

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature
Page Follows)

 

    13

     

    

 

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.

 

	 	OHR PHARMACEUTICAL, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    14

     

    

 

NOTICE
OF EXERCISE

 

To:          ohr
pharmaceutical, inc.

 

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

 

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

 

[   ] in lawful money of the United States; or

 

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

 

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

 

_______________________________

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date:
________________________________________________________________________________________

 

    

     

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

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

 

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

 

	Name:	
	 	(Please
    Print)
	 	 
	Address:	
	 	(Please
Print)
	 	 
	Phone
        Number:	 
	 	 
	

        Email
Address: 
	

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

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