Document:

Exhibit 4.1

 

THIS PROMISSORY NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE DISPOSED OF, AND NO TRANSFER OF THIS PROMISSORY NOTE WILL BE MADE BY THE COMPANY OR ITS TRANSFER
AGENT IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

15% SUBORDINATED PROMISSORY NOTE

 

	$	Durham, North Carolina
	 	[__________]   (the “Issue Date”)

 

FOR VALUE RECEIVED,
Icagen, Inc., a Delaware corporation (the “Company”), with its principal place of business at 4222 Emperor
Boulevard, Suite 350, Research Triangle Park, Durham, North Carolina 27703, its successors and assigns (the “Company”),
promises to pay to the order of [_________________] (“Payee”), having an address at [_______________________],
the principal sum of [_________________] Dollars ($[_________________]) on or before February 28, 2023 (the “Maturity
Date”), together with interest on the principal amount hereof at the rate of fifteen percent (15%) per annum (“PIK
Interest”), which PIK Interest shall be added to increase the outstanding balance of the Note. Payments of principal are
to be made in lawful money of the United States of America unless Payee agrees to another form of payment. The PIK Interest shall
be calculated based on a 360-day year and shall accrue commencing on the Issue Date of the Note until payment in full of the outstanding
principal together with all accrued and unpaid PIK Interest

 

1. THIS
NOTE SHALL BE SUBORDINATED IN RIGHT OF PAYMENT IN ALL RESPECTS TO (A) THAT CERTAIN CREDIT AGREEMENT AND GUARANTY, DATED AS OF AUGUST
31, 2018, AMONG THE COMPANY, AS BORROWER, THE GUARANTORS PARTY THERETO, THE LENDERS FROM TIME TO TIME PARTY THERETO AND PERCEPTIVE
CREDIT HOLDINGS II, LP (“PERCEPTIVE”), AS ADMINISTRATIVE AGENT (B) THAT CERTAIN CREDIT AGREEMENT AND GUARANTY,
DATED AS OF AUGUST 31, 2018, AMONG ICAGEN-T, INC., A DELAWARE CORPORATION, AS BORROWER, THE COMPANY, AS GUARANTOR, THE OTHER GUARANTORS
PARTY THERETO, THE LENDERS FROM TIME TO TIME PARTY THERETO AND PERCEPTIVE, AS ADMINISTRATIVE AGENT AND (C) ANY ADDITIONAL LOANS
MADE BY PERCEPTIVE TO THE COMPANY (COLLECTIVELY, AS SUCH CREDIT AGREEMENTS MAY BE MODIFIED, AMENDED OR RESTATED IN THEIR ENTIRETY
OR OTHERWISE FROM TIME TO TIME, THE “CREDIT AGREEMENTS”). IF ANY PAYMENT IN ANY FORM WITH RESPECT TO THIS NOTE
IS COLLECTED OR RECEIVED BY PAYEE (OTHER THAN ANY PAYMENT OF PIK INTEREST NOT PAID IN CASH), SUCH PAYMENT SHALL BE HELD BY PAYEE
IN TRUST FOR THE BENEFIT OF THE CREDITORS UNDER THE CREDIT AGREEMENTS AND SHALL FORTHWITH BE PAID OVER TO PERCEPTIVE, IN ITS CAPACITY
AS ADMINISTRATIVE AGENT UNDER EACH CREDIT AGREEMENT, TO BE CREDITED AND APPLIED AGAINST THE OBLIGATIONS DUE TO THE CREDITORS UNDER
SUCH CREDIT AGREEMENTS, BUT WITHOUT AFFECTING, IMPAIRING OR LIMITING IN ANY MANNER THE LIABILITY OF THE COMPANY UNDER ANY OTHER
PROVISION OF THIS NOTE.

 

     

     

    

  

2. If
the Company shall make a general assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts
as they become due, or shall file a petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent, then, and upon the
happening of any such event, the Payee at its option, may declare the entire unpaid balance of the principal hereunder immediately
due and payable with interest thereon as herein provided.

 

3. Amounts
not paid when due hereunder shall bear interest from the due date until such amounts are paid at the rate of one percent (1%) per
month; provided, however, that in the event such interest rate would violate any applicable usury law, the default
rate shall be the highest lawful interest rate permitted under such usury law.

 

4. Presentment,
demand, protest or notice of any kind are hereby waived by the Company. The Company may not set off against any amounts due to
Payee hereunder any claims against Payee or other amounts owed by Payee to the Company.

 

5. All
rights and remedies of Payee under this Note are cumulative and in addition to all other rights and remedies available at law or
in equity, and all such rights and remedies may be exercised singly, successively and/or concurrently. Failure to exercise any
right or remedy shall not be deemed a waiver of such right or remedy.

 

6. The
Company agrees to pay all reasonable costs of collection, including attorneys' fees which may be incurred in the collection of
this Note or any portion thereof and, in case an action is instituted for such purposes, the amount of all attorneys' fees shall
be such amount as the court shall adjudge reasonable.

 

7. This
Note is made and delivered in, and shall be governed, construed and enforced under the laws of the State of New York.

 

8. This
Note shall be subject to prepayment, at the option of the Company, in whole or in part, at any time and from time to time, without
premium or penalty.

 

9. This
Note or any benefits or obligations hereunder may not be assigned or transferred by the Company.

 

	 	ICAGEN, INC.
	 	 	 
	 	By:	 
	 	Name:	Richard Cunningham
	 	Title:	Chief Executive OfficerExhibit 4.2

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE HOLDER OR THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. ANY TRANSFEREE OF THESE SECURITIES SHOULD CAREFULLY REVIEW THE TERMS HEREIN. THE NUMBER OF SHARES OF
COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION
1(a) OF THIS WARRANT.

 

ICAGEN,
INC. 

 

Warrant
To Purchase Common Stock

 

Warrant
No.: ICGI-2019-[_____]

 

Issuance
Date: [__________] (“Issuance Date”)

 

Icagen,
Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, [________________] the registered holder hereof or his, her or its permitted
assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at
the Exercise Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants
to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [______________________]
([_______]) (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined
below) (the “Warrant Shares). Except as otherwise defined herein, capitalized terms in this Warrant shall have the
meanings set forth in Section 17. This Warrant was issued pursuant to Section 2.1 of that certain Securities Purchase
Agreement, dated as of [__________] (the “Subscription Date”), by and among the Company, the Holder and the
other investors named therein, as amended from time to time (the “Securities Purchase Agreement”).

 

1. EXERCISE
OF WARRANT.

 

(a)
 Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations
set forth in Section 1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date (an “Exercise
Date”), in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached
hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this
Warrant. Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the
Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares
as to which this Warrant was so exercised (the “Aggregate Exercise Price”) in cash, check or via wire transfer
of immediately available funds if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant
to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original of this Warrant
in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant
Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the
right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining
Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares
in accordance with the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has received
an Exercise Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of
such Exercise Notice, in the form attached hereto as Exhibit B, to the Holder and the Company’s transfer agent
(the “Transfer Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process
such Exercise Notice in accordance with the terms herein. On or before the third (3rd) Trading Day following the date
on which the Company has received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable
law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), (the
“Share Delivery Deadline”), the Company shall; provided that the Aggregate Exercise Price has been delivered
in the time period set forth above, unless the Aggregate Exercise Price is paid through a Cashless Exercise (X) provided that
the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer
Program, credit such aggregate number of shares of Common Stock to which the Holder’s or its designee’s balance account
with DTC through its Deposit/Withdrawal at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast
Automated Securities Transfer Program, upon the request of the Holder, issue and deliver (via reputable overnight courier) to
the address as specified in the Exercise Notice, a certificate, registered in the name of the Holder or its designee, for the
number of shares of Common Stock to which the Holder shall be entitled pursuant to such exercise. Upon delivery of an Exercise
Notice, 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 such Warrant Shares are credited to the Holder’s DTC
account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted
in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise and upon surrender of this
Warrant to the Company by the Holder, then, at the request of the Holder, the Company shall as soon as practicable and in no event
later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee)
a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares
of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and all transfer, stamp,
issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent) that may
be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant.

     

     

    

 

(b)
 Exercise Price. For purposes of this Warrant, “Exercise Price” means $3.50, subject to
adjustment as provided herein.

 

(c)
 Company’s Failure to Timely Deliver Securities. If the Company is a Trading
Issuer and fails on or prior to the Share Delivery Deadline to issue and deliver to the Holder (or its designee) a certificate
and register such shares of Common Stock on the Company’s share register or, credit the balance account of the Holder or
the Holder’s designee with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise hereunder (as the case may be pursuant to this Section 1(c) and/or pursuant to the Company’s obligation
pursuant to clause (ii) below) and if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of
shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder’s
request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total
purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”),
at which point the Company’s obligation to so issue and deliver such certificate (and to issue such shares of Common Stock)
or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of Warrant
Shares to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such Warrant
Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates
representing such Warrant Shares or credit the balance account of such Holder or such Holder’s designee, as applicable,
with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder’s exercise hereunder (as the case
may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such
number of Warrant Shares multiplied by (B) the lowest Closing Sale Price or Closing Bid Price (as the case may be) of the Common
Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of
such issuance and payment under this clause (ii) (the “Buy-In Payment Amount”). Nothing shall limit the Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise of this Warrant as required
pursuant to the terms hereof.

 

    2

     

    

 

(d)
 Cashless Exercise. If the Company is a Trading Issuer and at the applicable time
an effective registration statement is not available for the issuance of Warrant Shares and notwithstanding anything contained
herein to the contrary (other than Section 1(f) below), the Holder may, in its sole discretion, exercise this Warrant in
whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in
payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of Warrant
Shares determined according to the following formula (a “Cashless Exercise”):

 

Net
Number = (A x B) - (A x C)

D

For
purposes of the foregoing formula:

 

A=
the total number of shares with respect to which this Warrant is then being exercised.

 

B
= the lowest Closing Bid Price or Closing Sale Price (as the case may be) during the ten (10) consecutive Trading Days ending
at the close of business on the Principal Market immediately prior to the time of exercise as set forth in the applicable Exercise
Notice.

 

C
= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

D
= as applicable: the Closing Sale Price or Closing Bid Price (as the case may be) of the Common Stock on the Trading Day immediately
preceding the date of the applicable Exercise Notice.

 

For
purposes of Rule 144(d) promulgated under the Securities Act, as in effect on the Subscription Date, it is intended that the Warrant
Shares issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Securities Purchase Agreement.

 

(e)
 Disputes. In the case of a dispute as to the determination of the Exercise Price
or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly
issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section
13.

 

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(f)
 Limitations on Exercises. The Company shall not effect the exercise of any portion
of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to the terms and conditions
of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent that after giving effect
to such exercise, the Holder together with the other Attribution Parties collectively would beneficially own in excess of 9.99%
(the “Maximum Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such
exercise, such determination by the Company to be based solely upon the Reported Outstanding Share Number (as defined below) and
the number of shares disclosed to the Company by Holder as being beneficially owned by the Holder and the other Attribution Parties.
For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder and the
other Attribution Parties shall include the number of shares of Common Stock held by the Holder and all other Attribution Parties
plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (A) exercise of the remaining, unexercised
portion of this Warrant beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company (including, without limitation, any convertible
notes or convertible preferred stock or warrants, including, without limitation, the Warrant) beneficially owned by the Holder
or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this
Section 1(f)(i). For purposes of this Section 1(f)(i), beneficial ownership shall be calculated in accordance with
Section 13(d) of the 1934 Act. For purposes of determining the number of outstanding shares of Common Stock the Holder may acquire
upon the exercise of this Warrant without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares
of Common Stock as reflected in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q,
Current Report on Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by the
Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of shares of Common
Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives an Exercise Notice from
the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share
Number, the Company shall (i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the
extent that such Exercise Notice would otherwise cause the Holder’s beneficial ownership, as determined pursuant to this
Section 1(f)(i), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares
to be acquired pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the “Reduction
Shares”) and (ii) as soon as reasonably practicable, the Company shall return to the Holder any exercise price paid
by the Holder for the Reduction Shares. For any reason at any time, upon the written or oral request of the Holder, the Company
shall within one (1) Business Day confirm orally and in writing or by electronic mail to the Holder the number of 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 and any other Attribution Party
since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common
Stock to the Holder upon exercise of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially
own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under
Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s and the other Attribution Parties’
aggregate beneficial ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and
void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares.
As soon as reasonably practicable after the issuance of the Excess Shares has been deemed null and void, the Company shall return
to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery of a written notice to the Company, the
Holder may from time to time increase (with such increase not effective until the sixty-first (61st) day after delivery of such
notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided
that any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered
to the Company. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess of
the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section
13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph shall have any
effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 1(f)(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may be
defective or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f)(i) or to make
changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph
may not be waived and shall apply to a successor holder of this Warrant.

 

(g)
 Reservation of Shares.

 

(i)
 Required Reserve Amount. Commencing on the Closing Date and continuing as long
as this Warrant remains outstanding, the Company shall at all times keep reserved for issuance under this Warrant at least 100%
of the maximum number of shares of Common Stock as shall from time to time be necessary to satisfy the Company’s obligation
to issue shares of Common Stock under this Warrant (without regard to any limitations on exercise and assuming for purposes of
this Section 1(g) that the Holder does not exercise any portion of this Warrant on a Cashless Exercise basis and in any
event does not exercise this Warrant until the last calendar date prior to the Expiration Date) (the “Required Reserve
Amount”); provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 1(g)(i)
be reduced.

 

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(ii)
 Insufficient Authorized Shares. If, notwithstanding Section 1(g)(i) above,
and not in limitation thereof, at any time while this Warrants remains outstanding, the Company does not have a sufficient number
of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized
Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized
shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for this Warrant. Without
limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share
Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall
either (i) hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock,
or (ii) have cured the Authorized Share Failure by, among other required items, obtaining a written consent of the required percentage
of holders of shares Common Stock for the required increase in authorized shares and had taken any and all other such action necessary
to rectify the Authorized Share Failure including, but not limited to, providing the non-consenting stockholders with an information
statement and a Form 14(C) and filed with the SEC such Form 14(C). In connection with such meeting as set forth in (i) above,
the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’
approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders
that they approve such proposal. In the event that the Company is prohibited from issuing shares of Common Stock upon an exercise
of this Warrant due to the failure by the Company to have sufficient shares of Common Stock available out of the authorized but
unissued shares of Common Stock (such unavailable number of shares of Common Stock, the “Authorization Failure Shares”),
in lieu of delivering such Authorization Failure Shares to the Holder, the Company shall pay cash in exchange for the cancellation
of such portion of this Warrant exercisable into such Authorized Failure Shares at a price equal to the sum of (i) the product
of (x) such number of Authorization Failure Shares and (y) the greatest Closing Sale Price or Closing Bid Price (as the case may
be) of the Common Stock on any Trading Day during the period commencing on the date the Holder delivers the applicable Exercise
Notice with respect to such Authorization Failure Shares to the Company and ending on the date of such issuance and payment under
this Section 1(g) (or the Exercise Price if the Company is not then a Trading Issuer); and (ii) to the extent the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder
of Authorization Failure Shares, any Buy-In Payment Amount, brokerage commissions and other out-of-pocket expenses, if any, of
the Holder incurred in connection therewith. Nothing contained in this Section 1(g) shall limit any obligations of the
Company under any provision of the Securities Purchase Agreement.

 

2.
 ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES; RESET OF EXERCISE PRICE.
The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section 2.

 

(a)
 Stock Dividends and Splits. Without limiting any provision of Section 2(b)
or Section 4, if the Company, at any time on or after the Subscription Date, (i) pays a stock dividend on one or more
classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is
payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or
more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination,
reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of
shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number
of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares
of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution,
and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date
of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an
Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect
such event.

 

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(b)
 Adjustment Upon Issuance of Shares of Common Stock Prior to the Closing Date of a
Qualifying PO. In addition to and not in limitation of any other rights of the Holder under this Warrant including, but not
limited to, Section 2 hereof and/or any other Transaction Document, if, at any time this Warrant is outstanding and whenever
on or after the Subscription Date but prior to the closing date of a Qualifying PO (as defined in the Company’s Certificate
of Designation of Powers, Preferences and Rights of Series C Convertible Redeemable Preferred Stock), the Company , in any manner
sells or grants any option to purchase, issues or sells or grants any right to reprice, and/or otherwise sells, disposes of and/or
issues any shares of Common Stock or Common Stock Equivalents (as defined below) (including upon conversion, exercise or otherwise)
entitling any Person to acquire shares of Common Stock at a price per share of Common Stock that is lower than the then Exercise
Price (such lower price, the “New Issuance Price” and each such issuance, a “Dilutive Issuance”
and collectively, “Dilutive Issuances”), (if the holder of shares of Common Stock or Common Stock Equivalents
so issued and/or any holder of Common Stock and/or Common Stock Equivalents as of the Subscription Date or issued subsequent thereto,
shall at any time, whether by amendment, supplement, operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise be entitled under the terms of any such instruments to receive shares of Common Stock
at a price per share that is lower than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance), then the then Exercise Price shall be reduced to equal the New Issuance Price. For
purposes of clarification, if the Company issues, sells and/or otherwise disposes of any shares of Common Stock at a price less
than the then Exercise Price, the then Exercise Price shall immediately be reduced to the New Issuance Price on the date of such
Dilutive Issuance. All adjustments provided for in this Section 2(b) shall be made whenever any such Common Stock or Common
Stock Equivalents are issued. Notwithstanding anything to the contrary in the foregoing, if a Dilutive Issuance consists of the
issuance and/or sale of both Common Stock and Common Stock Equivalents or two or more Common Stock Equivalents as units (each,
a “Share and/or a CSE Issuance”), in determining the value of the component parts of the unit issued and/or
sold in a Share and/or a CSE Issuance no value will be attributed to Common Stock Equivalents and the New Issuance Price as a
result thereof will be the lowest of (i) the lowest purchase price per unit, (ii) the lowest conversion, exercise and/or exchange
price to acquire one (1) share of Common Stock of any Common Stock Equivalent included in a unit if a unit also includes shares
of Common Stock, and (iii) if no shares of Common Stock are included in a unit, the lowest exercise, conversion and/or exchange
price to acquire one (1) share of Common Stock of the Common Stock Equivalents comprising a unit, such lowest price of (i)-(iii)
shall be the “Lowest Price;” provided, however, a Dilutive Issuance and a resulting New Issuance
Price relating to a Share and/or a CSE Issuance shall only occur if the Lowest Price relating to a Share and/or a CSE Issuance
is lower than the then Exercise Price. Notwithstanding the foregoing, no adjustment will be made under this Section 2(b)
in respect of an Exempt Issuance (as defined in the Company’s Certificate of Designation of Powers, Preferences and Rights
of Series C Convertible Redeemable Preferred Stock). The Company shall notify the Holder in writing, no later than the first Trading
Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 2(b), indicating therein
the applicable Lowest Price, issuance price, reset price, exchange price, conversion price and Exercise Price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of
shares of Common Stock based upon the New Issuance Price on or after the date of such Dilutive Issuance, regardless of whether
the Holder accurately refers to the New Issuance Price in any Exercise Notice. For purposes hereof, the term “Common
Stock Equivalents” means any securities (as defined under the Securities Act) including, but not limited to, any Options
and/or Convertible Securities of the Company and/or any subsidiary of the Company (a “Subsidiary”) which would entitle
the Holder thereof to acquire at any time shares of Common Stock, including, without limitation, any debt, preferred stock, right,
option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles
the Holder thereof to receive, shares of Company Common Stock. If the Company, the Company and/or any Subsidiary enters into a
Variable Rate Transaction, the Company shall be deemed to have issued shares of Common Stock or Common Stock Equivalents at the
lowest possible price at which such securities may be converted, exchanged and/or exercised under the terms of such Variable Rate
Transaction.

 

(c)
 Calculations. All calculations under this Section 2 shall be made by rounding
to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any
given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares
shall be considered an issuance or sale of Common Stock.

 

(d)
 Voluntary Adjustment By Company. The Company may at any time during the term
of this Warrant, with the prior written consent of the Holders, reduce the then current Exercise Price to any amount and for any
period of time deemed appropriate by the board of directors of the Company.

 

(e)
 Certain Reset Right Upon a Qualifying PO. If on or after the Subscription Date,
the Company consummates a Qualifying PO, and on the closing date of such Qualifying PO, the then Exercise Price in effect on such
date is greater than the Qualifying PO Per Share Sale Price (as defined below), then the Exercise Price shall automatically and
without any action by the Company or otherwise, be reset to the Qualifying PO Per Share Sale Price. A “Qualifying PO
Per Share Sale Price” shall be as applicable (i) the gross purchase price a share of Common Stock is sold to the public
in the Qualifying PO if only shares of Common Stock are sold to the public in such Qualifying PO, (ii) the gross purchase price
a unit consisting of shares of Common Stock and Common Stock Equivalents is sold to the public in the Qualifying PO, or (iii)
the sum equal to the gross purchase price of (a) one (1) share of Common Stock, and (b) a Common Stock Equivalent if such are
sold to each purchaser in a Qualifying PO but not in a unit.

 

    6

     

    

 

3.
 RIGHTS UPON DISTRIBUTION OF ASSETS. In addition to any adjustments provided for
elsewhere in this Warrant including, but not limited to, pursuant to Section 2 above, 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,
options, evidence of indebtedness or any other assets 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 or restrictions on exercise of this Warrant, including without limitation,
the Maximum Percentage) immediately before the date on 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, that to the extent that the Holder’s right to participate in any such Distribution would
result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled
to participate in such Distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common
Stock as a result of such Distribution (and beneficial ownership) to such extent) and the portion of such Distribution shall be
held in abeyance for the benefit of the Holder until such time or times, if ever, as its right thereto would not result in the
Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted
such Distribution (and any Distributions declared or made on such initial Distribution or on any subsequent Distribution held
similarly in abeyance) to the same extent as if there had been no such limitation).

 

4.
 PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)
 Purchase Rights. In addition to any adjustments provided for elsewhere in this
Warrant including, but not limited to, pursuant to Section 2 above, if at any time the Company grants, issues or sells
any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class 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 or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issuance or sale of such Purchase
Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not
be entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial ownership of such shares
of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such Purchase Right to such
extent shall be held in abeyance for the benefit of the Holder until such time or times, if ever, as its right thereto would not
result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall
be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase
Right held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    7

     

    

 

(b)
 Fundamental Transactions. Subject to the rights of (i) the Company or a Successor
Entity (as the case may be) to redeem this Warrant pursuant to Section 4(c)(i), and (ii) the Holder to require the redemption
of this Warrant by the Company or the Successor Entity (as the case may be) pursuant to Section 4(c)(ii), the Company shall
not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in writing all of the obligations
of the Company under this Warrant and the other Transaction Documents (as defined in the Securities Purchase Agreement) in accordance
with the provisions of this Section 4(b) pursuant to written agreements in form and substance satisfactory to the Holder
and approved by the Holder prior to such Fundamental Transaction, including agreements to deliver to the Holder in exchange for
this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent
to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder
to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such
exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of
such Fundamental Transaction); and (ii) the Successor Entity is a publicly traded corporation whose shares of common stock are
quoted or listed on an Eligible Market. Upon the closing on the closing date of a Fundamental Transaction (an “FT Closing
Date”), and subject to the rights of (A) the Company or a Successor Entity (as the case may be) to redeem this Warrant
pursuant to Section 4(c)(i), and (B) the Company or the Successor Entity (as the case may be) to redeem this Warrant pursuant
to a demand of the Holder pursuant to Section 4(c)(ii), the Successor Entity shall succeed to, and be substituted for (so
that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction,
unless there is a redemption under 4(c)(i) or 4(c)(ii), the Successor Entity shall deliver to the Holder confirmation that there
shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in
lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under
Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant
prior to the applicable Fundamental Transaction, such shares of publicly traded common stock (or its equivalent) of the Successor
Entity which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this
Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise
of this Warrant), as adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any
other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common
Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate
Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive
upon any full or partial (as proportionately determined) exercise of this Warrant at any time (i) prior to the FT Closing Date,
and/or (ii) at any time following a FT Closing Date if no redemption occurred on the FT Closing Date unless there is a redemption
under Section 4(c)(i) or Section 4(c)(ii) but prior to the Expiration Date, in lieu of the shares of the Common
Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a)
above, which shall continue to be receivable thereafter) issuable upon the exercise of the Warrant prior to such Fundamental Transaction,
such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had
this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on
the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory
to the Holder; provided, however, notwithstanding anything to the contrary or elsewhere, if the Company or the Successor
Entity, elects to redeem this Warrant pursuant to Section 4(c)(i) and complies with such related provisions and if on the
FT Closing Date this Warrant or any portion of this Warrant is outstanding, the Company shall have the right to redeem this Warrant
as provided in Section 4(c)(i) below.

 

    8

     

    

 

(c)
 Redemption of Warrant in Certain Events.

 

(i)
 Company/Successor Entity Fundamental Redemption Right. Subject to the rights of the Holder pursuant to Section
4(c)(ii) and notwithstanding anything to the contrary provided in Section 4(b) above, the Company or any
Successor Entity (as the case may be) shall have the right on a FT Closing Date to redeem this Warrant provided the Company
or the Successor Entity (as the case may be) provides to the Holder written notice of such election pursuant to Section
8 hereof, and paying to the Holder in full, in cash on the FT Closing Date the Black Scholes Value or the Event of
Default Black Scholes Value (if on the FT Closing Date an Event of Default (as defined in the Notes) has occurred and is
continuing), the “Warrant Redemption Price”, in accordance with and pursuant to this Section
4(c)(i), and on such FT Closing Date the Company or the Successor Entity (as the case may be) shall also provide written
notice to the Holder of the payment of the Warrant Redemption Price, the amount thereof and the calculations as to how such
Warrant Redemption Price was determined (including whether such was the Black Scholes Value or the Event of Default Black
Scholes Value). Notwithstanding that the Company or the Successor Entity (as the case may be) has delivered notice of
election to redeem this Warrant pursuant to this Section 4(c)(i) the Holder may nevertheless exercise this Warrant in
whole or in part at any time and from time to time through and including the last Trading Day prior to the FT Closing Date.
If the Warrant Redemption Price is not received by the Holder in full, in cash (by wire transfer or bank check) by 11:59 p.m.
(New York City time) by the first (1st) Trading Day following the FT Closing Date, the right of the Company or the
Successor Entity (as the case may be) shall terminate with respect to that Fundamental Change as shall all future redemption
rights of the Company (including to have a Successor Entity do the same) to elect to redeem this Warrant pursuant to Section
4(c)(i) or otherwise and the Holder shall have the same rights set forth in Section 4(b) it would have had but for
the election of the Company pursuant to this Section 4(c)(i). The agreement governing the Fundamental Transaction
shall make provision for redemption of the Warrant by the Company or the Successor Entity and also for if the Company or the
Successor Entity (as the case may be) elects to redeem this Warrant pursuant to Section 4(c)(i) but fails to
timely honor all of their respective obligations pursuant to Section 4(c)(i).

 

(ii)
 Mandatory Fundamental Transaction Redemption at the Request of the Holder. Notwithstanding
the provisions of Sections 4(b) and/or 4(c)(i), at the request of the Holder delivered at any time commencing on the earliest
to occur of (x) the public disclosure of any Fundamental Transaction, (y) the consummation of any Fundamental Transaction and
(z) the Holder first becoming aware of any Fundamental Transaction through the date that is thirty (30) days after the public
disclosure of the consummation of such Fundamental Transaction by the Company pursuant to a Current Report on Form 8-K filed with
the SEC, the Company or the Successor Entity (as the case may be) shall purchase this Warrant from the Holder on the date of such
request by paying to the Holder cash an amount equal to the Black Scholes Value (or the Event of Default Black Scholes Value if
on the date of the required redemption payment to the Holder, an Event of Default exists). Notwithstanding anything to the contrary
contained herein, if the FT Closing Date occurs prior to the foregoing thirty (30) day time period, the Company or Successor Entity
(as the case may be) may pay the Warrant Redemption Price on the FT Closing Date and thereafter, if all the redemption procedures
required herein including Section 8 are followed and the Warrant is redeemed in full, this Warrant shall terminate.

 

(iii)
 Event of Default Redemption. Notwithstanding Section 4(c)(i) and (ii)
and Section 4(b) above, at the request of the Holder delivered at any time after the occurrence of an Event of Default
(as defined in the Notes and regardless of if the Notes are no longer outstanding), the Company or the Successor Entity (as the
case may be) shall purchase this Warrant from the Holder on the date of such request by paying to the Holder cash in an amount
equal to the Event of Default Black Scholes Value.

 

(d)
 Application. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental
Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully
exercisable and without regard to any limitations on the exercise of this Warrant (provided that the Holder shall continue to
be entitled to the benefit of the Maximum Percentage, applied however with respect to shares of capital stock registered
under the 1934 Act and thereafter receivable upon exercise of this Warrant (or any other warrant)).

 

5.
 NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its
Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of
arrangement, dissolution, issuance 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, and will at all times in good faith carry out all the
provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the
generality of the foregoing, the Company (a) shall not increase the par value of any shares of Common Stock receivable upon
the exercise of this Warrant above the Exercise Price then in effect, and (b) shall take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock
upon the exercise of this Warrant. Notwithstanding anything herein to the contrary, if after the sixty (60) calendar day
anniversary of the Issuance Date, the Holder is not permitted to exercise this Warrant in full for any reason (other than
pursuant to restrictions set forth in Section 1(f) hereof), the Company shall use its best efforts to promptly remedy
such failure, including, without limitation, obtaining such consents or approvals as necessary to permit such exercise into
shares of Common Stock.

 

    9

     

    

 

6.
 WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided
herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or
be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed
to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company
or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights,
or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise
of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities
are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the
Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously
with the giving thereof to the stockholders.

 

7.
 REISSUANCE OF WARRANTS.

 

(a)
 Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender
this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant
(in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number
of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant
is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase
the number of Warrant Shares not being transferred.

 

(b)
 Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification
and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of
any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation,
upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance
with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

 

(c)
 Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender
hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d))
representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new
Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of
such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

 

(d)
 Issuance of New Warrants. Whenever the Company is required to issue a new Warrant
pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as
indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case
of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder
which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance,
does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on
the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this
Warrant.

 

    10

     

    

 

8.
 NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise
provided herein, such notice shall be given in accordance with Section 8.1 of the Securities Purchase Agreement. The Company shall
provide the Holder with prompt written notice of all actions taken pursuant to this Warrant (other than the issuance of shares
of Common Stock upon exercise in accordance with the terms hereof), including in reasonable detail a description of such action
and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder
(for purposes of clauses (ii) and (iii) below, disclosure in a press release or filing with the SEC shall be deemed to satisfy
the notice obligation)(i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth
in reasonable detail, and certifying, the calculation of such adjustment(s), (ii) at least ten (10) days prior to the date on
which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common
Stock or (B) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided
in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided
to the Holder, (iii) at least ten (10) Trading Days prior to an FT Closing Date, and (iv) within one (1) Business Day of the occurrence
of an Event of Default (as defined in the Notes), setting forth in reasonable detail any material events with respect to such
Event of Default and any efforts by the Company to cure such Event of Default. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information regarding the Company or any of its Subsidiaries, the Company shall
simultaneously file such notice with the SEC (as defined in the Securities Purchase Agreement) pursuant to a Current Report on
Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall
be definitive and may not be disputed or challenged by the Company.

 

9.
 AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of
this Warrant (other than Section 1(f)) may be amended and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No
waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

10.
 SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise
determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited,
invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the
invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so
long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to
the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially
impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that
would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited,
invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the
prohibited, invalid or unenforceable provision(s).

 

11.
 GOVERNING LAW. This Warrant shall be governed by and construed and enforced in
accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall
be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York. The Company hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to the Company at the address set forth in Section 8.1
of the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall
be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction
to collect on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    11

     

    

 

12.
 CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by
the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are
for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant
but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date (as defined
in the Securities Purchase Agreement) in such other Transaction Documents unless otherwise consented to in writing by the Holder.

 

13.
 DISPUTE RESOLUTION.

 

(a)
 Submission to Dispute Resolution.

 

(i)
 In the case of a dispute relating to the Exercise Price, the Closing Sale Price, the
Closing Bid Price, the Lowest Price, the Black Scholes Value, the Event of Default Black Scholes Value or fair market value or
the arithmetic calculation of the number of Warrant Shares (as the case may be) (including, without limitation, a dispute relating
to the determination of any of the foregoing), the Company or the Holder (as the case may be) shall submit the dispute to the
other party via facsimile (A) if by the Company, within two (2) Business Days after the occurrence of the circumstances giving
rise to such dispute or (B) if by the Holder, at any time after the Holder learned of the circumstances giving rise to such dispute.
If the Holder and the Company are unable to promptly resolve such dispute relating to such Exercise Price, such Closing Sale Price,
such Closing Bid Price, such Lowest Price, such Black Scholes Value, such Event of Default Black Scholes Value or such fair market
value or such arithmetic calculation of the number of Warrant Shares (as the case may be), at any time after the second (2nd)
Business Day following such initial notice by the Company or the Holder (as the case may be) of such dispute to the Company or
the Holder (as the case may be), then the Holder may, at its sole option, select an independent, reputable investment bank to
resolve such dispute.

 

(ii)
 The Holder and the Company shall each deliver to such investment bank (A) a copy of
the initial dispute submission so delivered in accordance with the first sentence of this Section 13 and (B) written documentation
supporting its position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5th)
Business Day immediately following the date on which the Holder selected such investment bank (the “Dispute Submission
Deadline”) (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to
herein as the “Required Dispute Documentation”) (it being understood and agreed that if either the Holder or
the Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who
fails to so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver
or submit any written documentation or other support to such investment bank with respect to such dispute and such investment
bank shall resolve such dispute based solely on the Required Dispute Documentation that was delivered to such investment bank
prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by both the Company and the Holder or otherwise
requested by such investment bank, neither the Company nor the Holder shall be entitled to deliver or submit any written documentation
or other support to such investment bank in connection with such dispute (other than the Required Dispute Documentation).

 

(iii)
 The Company and the Holder shall cause such investment bank to determine the resolution
of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days immediately following
the Dispute Submission Deadline. The fees and expenses of such investment bank shall be borne solely by the Company, and such
investment bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error.

 

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(b)
 Miscellaneous. The Company expressly acknowledges and agrees that (i) this Section 13 constitutes
an agreement to arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under the rules then
in effect under § 7501, et seq. of the New York Civil Practice Law and Rules (“CPLR”) and that
the Holder is authorized to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to
compel compliance with this Section 13, (ii) a dispute relating to the Exercise Price includes, without limitation,
disputes as to (A) whether an issuance or sale or deemed issuance or sale of Common Stock occurred under Section 2(b),
(B) the consideration per share at which an issuance or deemed issuance of Common Stock occurred, (C) whether any issuance or
sale or deemed issuance or sale of Common Stock was an issuance or sale or deemed issuance or sale of Excluded Securities,
(D) whether an agreement, instrument, security or the like constitutes and Option or Convertible Security and (E) whether
a Dilutive Issuance occurred, (iii) the terms of this Warrant and each other applicable Transaction Document shall serve as
the basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be
entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank
determines are required to be made by such investment bank in connection with its resolution of such dispute (including,
without limitation, determining (A) whether an issuance or sale or deemed issuance or sale of Common Stock occurred under Section
2(b), (B) the consideration per share at which an issuance or deemed issuance of Common Stock occurred, (C) whether
any issuance or sale or deemed issuance or sale of Common Stock was an issuance or sale or deemed issuance or sale of
Excluded Securities, (D) whether an agreement, instrument, security or the like constitutes and Option or Convertible
Security and (E) whether a Dilutive Issuance occurred) and in resolving such dispute such investment bank shall apply such
findings, determinations and the like to the terms of this Warrant and any other applicable Transaction Documents, (iv) the
Holder (and only the Holder), in its sole discretion, shall have the right to submit any dispute described in this Section
13 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of utilizing the
procedures set forth in this Section 13 and (v) nothing in this Section 13 shall limit the Holder from
obtaining any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters
described in this Section 13).

 

14.
 REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.
The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and
the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief),
and nothing herein shall limit the right of the Holder to pursue actual and consequential damages for any failure by the Company
to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning
this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises
and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly
provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such
breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder
of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without
the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information
and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance
with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance
of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to
the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required
to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name
other than the Holder or its agent on its behalf.

 

15.
 PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant is placed
in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the holder
otherwise takes action to collect amounts due under this Warrant or to enforce the provisions of this Warrant or (b) there occurs
any bankruptcy, reorganization, receivership of the company or other proceedings affecting company creditors’ rights and
involving a claim under this Warrant, then the Company shall pay the costs incurred by the Holder for such collection, enforcement
or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation,
attorneys’ fees and disbursements.

 

16.
 TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned
without the consent of the Company, except as may otherwise be required by Section 3 of the Securities Purchase Agreement.

 

    13

     

    

 

17.
 CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall
have the following meanings:

 

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

 

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

 

(c)
 “Affiliate” or “affiliate” means, with respect
to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such
Person, it being understood for purposes of this definition that “control” of a Person means the power directly or
indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such Person or
direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(d)
 “Attribution Parties” means, collectively, the following Persons
and entities: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time
after the Issuance Date, directly or indirectly managed or advised by the Holder’s investment manager or any of its Affiliates
or principals, (ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could
be deemed to be acting as a Group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial
ownership of the Company’s Common Stock would or could be aggregated with the Holder’s and the other Attribution Parties
for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively the Holder
and all other Attribution Parties to the Maximum Percentage.

 

(e)
 “Black Scholes Value” means the value of the unexercised portion
of this Warrant remaining on the date of the Holder’s applicable request pursuant to Section 4(c)(ii) or the Company’s
or the Successor Entity’s election (as the case may be) pursuant to Section 4(c)(i), as a result of a Fundamental
Transaction, which value is calculated using the Black Scholes Option Pricing Model obtained from the “OV” function
on Bloomberg utilizing (i) an underlying price per share equal to the greater of (1) the highest Closing Sale Price or Closing
Bid Price (as the case may be) of the Common Stock during the period beginning on the Trading Day immediately preceding the announcement
of the applicable Fundamental Transaction (or the consummation of the applicable Fundamental Transaction, if earlier) and ending
on the Trading Day of the Holder’s request pursuant to Section 4(c)(ii) or the Company’s or the Successor Entity’s
election (as the case may be) pursuant to Section 4(c)(i), and (2) as a result of a Fundamental Transaction, the sum of
the price per share being offered in cash in the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration
being offered in the applicable Fundamental Transaction (if any), (ii) a strike price equal to the Exercise Price in effect on
the date of the Holder’s request pursuant to Section 4(c)(ii) or the Company’s or the Successor Entity’s
election (as the case may be) pursuant to Section 4(c)(i) as a result of a Fundamental Transaction, (iii) a risk-free interest
rate corresponding to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this Warrant as of
the date of the aforementioned request pursuant to either Section 4(c)(i) or Section 4(c)(ii) as a result of a Fundamental
Transaction and (2) the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction
or as of the date of the aforementioned request pursuant to either Section 4(c)(i) or Section 4(c)(ii) as a result
of a Fundamental Transaction if such request is prior to the date of the consummation of the applicable Fundamental Transaction,
(iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and the 30 day volatility obtained from
the “HVT” function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately
following the earliest to occur of (A) the public disclosure of the applicable Fundamental Transaction, (B) the consummation of
the applicable Fundamental Transaction and (C) the date on which the Holder first became aware of the applicable Fundamental Transaction.

 

(f)
 “Bloomberg” means Bloomberg, L.P.

 

(g)
 “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in
The City of New York are authorized or required by law to remain closed.

 

    14

     

    

 

(h)
 “Closing Sale Price” or “Closing Bid Price” means,
for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the
Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing bid price or the closing trade price (as the case may be) then the last bid price or last trade price,
respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is
not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively,
of such security on the principal securities exchange or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in
the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask
prices, respectively, of any market makers for such security as reported in the “pink sheets” by OTC Markets Group
Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price (as the case may be) of such security on such
date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable
to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in
Section 24. All such determinations shall be appropriately adjusted for any stock splits, stock dividends, stock combinations,
recapitalizations or other similar transactions during such period.

 

(i)
 “Common Stock” means (i) the Company’s shares of common stock,
$0.001 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital
resulting from a reclassification of such common stock.

 

(j)
 “Convertible Securities” means any stock or other security (other
than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable
for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

 

(k)
 “Eligible Market” means The New York Stock Exchange, the NYSE American,
the Nasdaq Capital Market, the Nasdaq Global Select Market, the Nasdaq Global Market or the Principal Market.

 

(l)
 “Event of Default Black Scholes Value” means the value of the unexercised portion of this Warrant
remaining on the date of the Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default,
which value is calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg utilizing (i) an underlying price per share equal to the highest Closing Sale Price or Closing Bid Price (as the
case may be) of the Common Stock during the period beginning on the date of the occurrence of the Event of Default through
the date all Events of Default have been cured or, if earlier, the Trading Day of the Holder’s request pursuant to Section
4(c)(ii) as a result of an Event of Default, (ii) a strike price equal to the Exercise Price in effect on the date of the
Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default, (iii) a risk-free interest
rate corresponding to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this Warrant as
of the date of the Holder’s request pursuant to Section 4(c)(ii) as a result of an Event of Default and (2) the
remaining term of this Warrant as of the date of the occurrence of such Event of Default, (iv) a zero cost of borrow and (v)
an expected volatility equal to the greater of 100% and the 30 day volatility obtained from the “HVT” function on
Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following later of (x) the
date of the occurrence of such Event of Default and (y) the date of the public announcement of such Event of
Default.

 

(m)
 “Expiration Date” means the date that is the seventh (7th) anniversary
of the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the
Principal Market (a “Holiday”), the next date that is not a Holiday.

 

(n)
 “Fundamental Transaction” means that (i) the Company or any of its
Subsidiaries shall, directly or indirectly, in one or more related transactions (1) consolidate or merge with or into (whether
or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (2) sell, lease, license, assign,
transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person,
or (3) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of
the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person
or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange
offer), or (4) consummate a stock or share purchase agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires
more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company
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), or (ii) any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder)
is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company. Notwithstanding
the above, a Fundamental Transaction shall not be deemed to occur as a result of a reincorporation merger of the Company provided
other than the place of incorporation of the Company no other material changes occur to the Company, as a result of such reincorporation
merger.

 

    15

     

    

 

(o)
 “Options” means any rights, warrants or options to subscribe for
or purchase shares of Common Stock or Convertible Securities.

 

(p)
 “Option Value” means (I) if the Company is a Trading Issuer, the
value of the applicable Option or Convertible Security (as the case may be) using the Black Scholes Option Pricing model obtained
from the “OV” function on Bloomberg determined as of the date of issuance of the Option or Convertible Security (as
the case may be) utilizing (i) an underlying price per share equal to the Closing Bid Price or Closing Sale Price (as the case
may be) of the Common Stock on the Trading Day immediately preceding the public announcement of the execution of definitive documents
with respect to the issuance of such Option or Convertible Security (as the case may be), (ii) a risk-free interest rate corresponding
to the U.S. Treasury rate for a period equal to the remaining term of such Option or Convertible Security (as the case may be)
as of the date of issuance of such Option or Convertible Security (as the case may be), (iii) a zero cost of borrow and (iv) an
expected volatility equal to the greater of 100% and the 100 day volatility obtained from the “HVT” function on Bloomberg
(determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the date of issuance of such
Option or Convertible Security (as the case may be)., or (II) if the Company is not a Trading Issuer (or the value of an Option
cannot be determined pursuant to (I)), of this definition of “Option Value,” the value of an Option or Convertible
Security (as the case may be) shall be determined pursuant to Section 24.

 

(q)
 “Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or
agency thereof.

 

(r)
 “Principal Market” means as of a particular date, the Eligible Market
on such date that the Common Stock is principally traded or quoted on.

 

 

(s)
 “SEC” means the United States Securities and Exchange Commission
or the successor thereto.

 

(t)
 “Successor Entity” means the Person formed by, resulting from or
surviving any Fundamental Transaction or the Person (or, if so elected by the Holder with which such Fundamental Transaction shall
have been entered into.

 

(u)
 “Trading Day” means, as applicable, (x) with respect to all price
or trading volume determinations relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market,
or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange
or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day
on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common
Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does
not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m.,
New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or (y) with respect to all determinations
other than price determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto)
is open for trading of securities.

 

(v)
 Trading Issuer” means the Company at such time as the Common Stock is then traded or quoted on an Eligible
Market.

 

    16

     

    

 

(w)
 Variable Rate Transaction” means “a transaction in which the Company (i) issues or sells any debt or
equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional
shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon,
and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance
of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some
future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into,
or effects a transaction under, any agreement, including, but not limited to, an equity line of credit, an at-the-market
offering (as defined in SEC Rule 415) or a similarly structured transaction, whereby the Company may issue securities at a
future determined price.

 

(x)
 “Voting Stock” of a Person means capital stock of such Person of
the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint,
at least a majority of the board of directors, managers, trustees or other similar governing body of such Person (irrespective
of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the
happening of any contingency).

 

[Signature
page follows]

 

    17

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date
set out above.

 

	 	ICAGEN,
INC.

	 	 	 
	 	By:	 
	 	Name: 	Richard Cunningham
	 	Title:	Chief Executive Officer

 

    18

     

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

 

TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT
TO PURCHASE COMMON STOCK

 

ICAGEN,
INC.

 

The
undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”)
of Icagen, Inc., a Delaware corporation (the “Company”), evidenced by Warrant to Purchase Common Stock No.
_______ (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective
meanings set forth in the Warrant.

 

1.
Form of Exercise Price. The Holder intends that payment of the Aggregate Exercise Price shall be made as:

 

	 	____________	 	a
        “Cash Exercise” with respect to _________________ Warrant Shares; and/or

         

	 	 	 	 
	 	 	 	 
	 	____________

         
	 	a
    “Cashless Exercise” with respect to _______________ Warrant Shares.

 

In
the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder at __________ [a.m.][p.m.]
on the date set forth below and (ii) if applicable, the Closing Sale Price or Closing Bid Price as of such time of execution of
this Exercise Notice was $________.

 

☐
If this Exercise Notice is being delivered after the Alternate Exercise Eligibility Date, check here if Holder is electing to
use the following Alternate Exercise Price in this exercise:____________.

 

2.
Payment of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the
Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $___________________
to the Company in accordance with the terms of the Warrant.

 

3.
Delivery of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________
Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

☐
Check here if requesting delivery as a certificate to the following name and to the following address:

 

	 	Issue
    to:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    Ex A-1

     

    

 

☐
Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	 	DTC
    Participant:	 
	 	 	 
	 	DTC
    Number:	 
	 	 	 
	 	Account
    Number:	 

 

	Date:	 	 
	 	 	 
	 	 	 
	Name
    of Registered Holder	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	Tax
    ID:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	E-mail
    Address:	 

 

    Ex A-2

     

    

 

EXHIBIT
B

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares
of Common Stock in accordance with the Transfer Agent Instructions dated ___________, 2018, from Icagen, Inc. and acknowledged
and agreed to by _______________.

 

	 	ICAGEN, INC.
	 	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

Ex
B-1

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