Document:

Exhibit 10.2

 

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

 

COMMON STOCK PURCHASE WARRANT

 

Combimatrix
Corporation

 

	Warrant Shares: _______	Initial Exercise Date: ______ ___, 20131
	Warrant No. ______	Issue Date:  ________ ___, 2013

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after __________ ___, 2013 (the “Initial Exercise Date”) and on or prior to the close of business on the
five year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe
for and purchase from CombiMatrix Corporation, a Delaware corporation (the “Company”), up to ______ shares2
(as subject to adjustment and certain limitations hereunder, the “Warrant Shares”) of Common Stock. The
purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.          Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated May 3, 2013, among the Company and the purchasers signatory thereto.

 

 

1
                                                                                                                       Insert
                                                                                                                       the date
                                                                                                                       that is
                                                                                                                       six months
                                                                                                                       following
                                                                                                                       the Issue
                                                                                                                       Date.

2 125% warrant coverage on
each Closing Date

 

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Section 2.          Exercise.

 

a)       Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or
agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise form annexed hereto and within three (3)
Trading Days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate
Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank or, if available,
pursuant to the cashless exercise procedure specified in Section 2(c) below. Notwithstanding anything herein to the contrary, the
Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant
Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to
the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder
shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable
number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business
Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant
Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)       Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $____,3 subject to adjustment
hereunder (the “Exercise Price”).

 

c)       Cashless
Exercise. If at any time after the 6 month anniversary of the date of the Purchase Agreement, there is no effective Registration
Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

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

 

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

 

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

 

 

3 For the First Closing, $3.77.
For the Second Closing, 110% of the market value (as defined by Nasdaq rules) of one share of Common Stock on the Second Closing
Date.

 

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d)
      Mechanics of Exercise.

 

i.            Delivery
of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder
by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal
at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder
or (B) the shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and
otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading
Days after the latest of (A) the delivery to the Company of the Notice of Exercise (together with a customary representation letter
of the Holder in the case of shares eligible for resale pursuant to Rule 144), (B) surrender of this Warrant (if required), and
(C) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant
Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated
to be named therein (in compliance with applicable securities laws) shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless
exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance
of such shares, having been paid. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a
Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $2,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date
of the applicable Notice of Exercise), $10 per Trading Day for each Trading Day after the second Trading Day following such Warrant
Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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Section 3.          Certain
Adjustments.

 

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

 

b)      [RESERVED]

 

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

 

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

 

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

 

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

 

g)      Notice
to Holder.

 

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

 

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

 

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Section 4.          Transfer
of Warrant.

 

a)       Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration
rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer, provided that
the transferee is an “accredited investor” as defined in Regulation D promulgated under the Securities Act and agrees
in writing to be bound by the terms and subject to the conditions of this Warrant and the Transaction Documents. Upon such surrender
and, if required, such payment, together with an opinion of counsel reasonably satisfactory to the Company that the transfer of
this Warrant will be in compliance with applicable securities laws, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

d)       Transfer
Restrictions. If,
at the time of the surrender of this Warrant in connection with any transfer of this
Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration
statement under the Securities Act and under applicable state securities or
blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements
pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this
Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

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

 

    	11

    	 

    

 

Section 5.          Miscellaneous.

 

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

 

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

 

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

 

d)       Authorized
Shares.

 

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

 

    	12

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	13

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

    	14

    	 

    

 

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

 

	 	Combimatrix Corporation
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

    	15

    	 

    

 

NOTICE OF EXERCISE

 

		To:	Combimatrix Corporation

 

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

 

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

 

£
in lawful money of the United States; or

 

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

 

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

 

_______________________________

  

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)  Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities
Act of 1933, as amended.

 

(5)  The
undersigned represents and warrants to the Company that in giving effect to the exercise evidenced hereby, the undersigned will
not own in excess of the number of shares of Common Stock permitted to be owned under Section 2(e) of this Warrant to which this
notice relates.

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: _______________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________________

Name of Authorized Signatory: ___________________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________________

Date: _______________________________________________________________________________________________

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

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

 

_______________________________________________
whose address is

 

_______________________________________________________________
and who is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

_______________________________________________________________

 

	 	Dated:  ______________, _______

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

Signature Guaranteed: ___________________________________________

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.3

 

MAX4G, INC.

Series B Convertible Preferred Stock

 

SUBSCRIPTION AND INVESTMENT LETTER

 

THIS SUBSCRIPTION AND INVESTMENT LETTER
(the “Agreement”) is dated as of the date set forth on the signature page hereto by and between MAX4G, Inc., a Delaware
corporation (the “Company”), and the Subscriber set forth on the signature page hereto (the “Subscriber”.
In consideration of the mutual promises contained herein, and other good and valuable consideration, the parties hereto agree as
follows:

 

1.          AGREEMENT
OF SALE. Subscriber agrees to purchase from the Company, and upon acceptance hereof by the Company,
the Company agrees to sell to Subscriber, the number of shares of the Company’s Series B Convertible Preferred Stock, $.001
par value per share, set forth on the signature page hereto for $0.50 per share. The Series B Convertible Preferred Stock is hereinafter
referred to as the “Securities”. The minimum subscription per investor is $100,000, unless waived by the Company.

 

2.          PAYMENT
OF PURCHASE PRICE. Subscriber has delivered along with this
Agreement, a check made payable to “MAX4G, Inc.” in the amount on the signature page as the “Aggregate Purchase
Price” as payment of the purchase price. There is no minimum investment amount before the Company can start using the funds
invested. Accordingly, the Company will close on each investment on a rolling basis as subscriptions for Securities are received.

 

3.          REPRESENTATIONS
AND WARRANTIES OF SUBSCRIBER. In consideration of the Company’s officer to sell the Securities,
Subscriber hereby represents and warrants to the Company as follows:

 

a.           Information
About the Company. Subscriber has received a copy of the Company’s Confidential Private Placement Memorandum, dated as
of March 15, 2013, as may be supplemented from time to time, including all of the exhibits thereto (the “Private Placement
Memorandum”) and has reviewed the Private Placement Memorandum, including the risk factors contained therein. Subscriber
has had an opportunity to ask questions of, and receive answers from the Company, concerning the business, management and financial
affairs of the Company and the terms and conditions of the purchase of the Securities contemplated hereby. Subscriber has had an
opportunity to obtain, and has received, any additional information deemed necessary by the Subscriber to verify such information
in order to for a decision concerning an investment in the Company. Subscriber is aware that the Company has no operating history.
Subscriber represents that Subscriber has relied solely on the Private Placement Memorandum in deciding to invest in the Company
and has not relied on any other information provided to Subscriber prior to the Subscriber’s receipt of the Private Placement
Memorandum. Subscriber has been advised to seek legal counsel concerning Subscriber’s investment in the Company.

 

    	 

    	 

    

 

b.           High
Degree of Risk. Subscriber realizes that an investment in the Securities involves a high degree of risk, including the risks
of receiving no return on the investment and of losing Subscriber’s entire investment in the Company. Subscriber is able
to bear the economic risk of investment in the Securities, including the total loss of such investment. The Company can make no
assurance regarding its future financial performance or as to the future profitability of the Company. The Company makes no assurance
whatsoever concerning the present and prospective value of the Securities to be acquired.

 

c.           No
Market for Securities; Restrictions on Transfer. Subscriber realizes that (i) there are substantial restrictions on the transfer
of the Securities; (ii) there is not currently, and it is unlikely that in the future there will exist, a public market for the
Securities, and (iii) accordingly, for the above and other reasons, Subscriber may not be able to liquidate an investment in the
Securities for an indefinite period. Subscriber realizes that the Securities have not been registered for sale under the Securities
Act of 1933, as amended (the “Securities Act”), or applicable state securities laws (the “State Laws”),
and may be sold only pursuant to registration under the Securities Act and State Laws, or an opinion of counsel acceptable to the
Company that such registration is not required.

 

d.           Suitability.
Subscriber has such knowledge and experience in financial and business matters that Subscriber is capable of evaluating the merits
and risks of an investment in the Securities. Subscriber has obtained, to the extent deemed necessary, personal professional advice
with respect to the risks inherent in, and the suitability of, an investment in the Securities in light of Subscriber’s financial
condition and investment needs. Subscriber believes that the investment in the Securities is suitable for Subscriber based upon
Subscriber’s investment objectives and financial needs, and Subscriber has adequate means for providing for Subscriber’s
current financial needs and personal contingencies and has no need for liquidity of investment with respect to the Securities.
Subscriber understands that no federal or state agency has made any finding or determination as to the fairness for investment,
nor any recommendation or endorsement, of the Securities.

 

e.           Investment
Intent. Subscriber has been advised that the Securities are not being registered under the Securities Act or the relevant State
Laws but are being offered and sold pursuant to exemptions from such laws and that the Company’s reliance upon such exemptions
is predicated in part on Subscriber’s representations to the Company as contained herein. Subscriber represents and warrants
that the Securities are being purchased for Subscriber’s own account and for Subscriber’s investment and without the
intention of reselling or redistributing the same, that Subscriber has made no agreement with others regarding any of such Securities
and that Subscriber’s financial condition is such that it is not likely that it will be necessary to dispose of any of the
Securities in the forseeable future. Subscriber is aware that, in the view of the Securities and Exchange Commission, a purchase
of the Securities with an intent to resell by reason of any forseeable specific contingency or anticipated change in market values,
or any change in the condition of the Company, or in connection with a contemplated liquidation or settlement of any loan obtained
for the acquisition of the Securities and for which the Securities were pledged as security, would represent an intent inconsistent
with the representations set forth above.

 

    	MAX4G, Inc. Series B Subscription Agreement	Page 2

    	 

    

 

f.            Residence.
Subscriber represents and warrants to the Company that Subscriber is a bona fide resident of, or entity duly formed pursuant to
the laws of, and is domiciled in, the state or country set forth in Subscriber’s address s provided below and that the Securities
are being purchased by Subscriber in Subscriber’s name solely for Subscriber’s own beneficial interest and not as nominee
for, or on behalf of, or for the beneficial interest of, or with the intention to transfer to, any other person, trust or organization,
except as specifically set forth in this Agreement.

 

g.           Tax
Liability. Subscriber has reviewed with Subscriber’s own tax advisors the federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Agreement, and has and will rely solely on such advisors and not on
any statements or representations of the Company or any of its agents. Subscriber understands that Subscriber (and not the Company)
will be responsible for Subscriber’s own tax liability that may arise as a result of this investment or the transactions
contemplated by this Agreement.

 

4.          ACCREDITED
STATUS. Subscriber represents and warrants that Subscriber is an “accredited investor”
as defined in Regulation D promulgated under the Securities Act. Subscriber represents and warrants that it meets such status due
to satisfying the criteria set forth on Exhibit A attached hereto.

 

PARAGRAPH 4 IS REQUIRED IN CONNECTION WITH
THE EXEMPTIONS FROM THE SECURITIES ACT AND STATE LAWS BEING RELIED ON BY THE COMPANY WITH RESPECT TO THE OFFER AND SALE OF THE
SECURITIES. ALL OF SUCH INFORMATION WILL BE KEPT CONFIDENTIAL AND WILL BE REVIEWED ONLY BY THE COMPNY AND ITS COUNSEL. THE UNDERSIGNED
AGREES TO FURNISH ANY ADDITIONAL INFORMATION THAT THE COMPANY AND ITS COUNSEL DEEM NECESSARY TO VERIFY THE RESPONSES SET FORTH
BELOW.

 

5.          RESTRICTIVE
LEGEND. Subscriber agrees that the Company shall place a restrictive legend on the Securities
containing substantially the following language:

 

The Securities represented by this certificate have
not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and have not been registered
under any state securities laws. These Securities may not be sold, offered for sale or transferred without first obtaining (i)
an opinion of counsel satisfactory to the Company that such sale or transfer lawfully is exempt from registration under the Securities
Act and under the applicable state securities laws or (ii) such registration.

 

6.          MISCELLANEOUS.

 

a.           Survival
of Representations and Warranties; Indemnification. Subscriber understands the meaning and legal consequences of the agreements,
representations and warranties contained herein, agrees that such agreements, representations and warranties shall survive and
remain in full force and effect after the execution hereof and payment for the Securities, and further agrees to indemnify and
hold harmless the Company and each current and future officer, director, employee, agent and shareholder of the Company from and
against any and all loss, damage or liability due to, or arising out of, a breach of any agreement, representation or warranty
of the undersigned contained herein.

 

    	MAX4G, Inc. Series B Subscription Agreement	Page 3

    	 

    

 

b.           No
Assignment or Revocation; Binding Effect. Neither this Agreement, nor any interest herein, will be assignable by Subscriber
without prior written consent of the Company. Subscriber hereby acknowledges and agrees that Subscriber is not entitled to cancel,
terminate or revoke this Agreement and that it shall survive the death, incapacity or bankruptcy of Subscriber. The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective heirs, legal representations,
successors and assigns.

 

c.           Remedies.
The Subscriber acknowledges that the Company may not have an adequate remedy at law in the event of any breach of this Agreement
by the Subscriber and, therefore, the Company will be entitled, in addition to any other available remedies, to injunctive and/or
other equitable relief to prevent or remedy a breach of this Agreement and to attorneys’ fees and other costs incurred by
the Company in commencing suit or taking other action to enforce the terms and conditions of this Agreement.

 

d.           Modifications.
This Agreement may not be changed, modified, released, discharged, abandoned or otherwise amended, in whole or in part, except
by an instrument in writing, signed by the Subscriber and the Company. No delay or failure of the Company in exercising any right
under this Agreement will be deemed to constitute a waiver of such right or of any other rights.

 

e.           Entire
Agreement. This Agreement and the exhibits hereto are the entire agreement between the parties with respect to the subject
matter hereto and thereto. This Agreement, including the exhibits, supersede any previous oral or written communications, representations,
understandings or agreements with the Company or with any officers or representatives of the Company.

 

f.            Severability.
In the event that any paragraph or provision of this Agreement shall be held to be illegal or unenforceable in any jurisdiction,
such paragraph or provision shall, as to that jurisdiction, be adjusted and reformed, if possible, in order to achieve the intent
of the parties, and if such paragraph or provision cannot be adjusted and reformed, such paragraph or provision shall, for the
purposes of that jurisdiction be voided and severed from this Agreement, and the entire Agreement shall not fail on account thereof
but shall otherwise remain in full force and effect.

 

g.           Governing
Law. This Agreement shall be governed by, subject to, and construed in accordance with the laws of the State of Delaware without
regard to conflict of law principles.

 

h.           Jurisdiction
and Venue. The Subscriber and the Company consent to jurisdiction of the courts of the State of Minnesota and/or the federal
district courts, District of Minnesota, for the purpose of resolving all issues of law, equity, or fact, arising out of or in connection
with this Agreement. Any action involving claims of a breach of this Agreement may be brought in such courts. The Subscriber and
the Company consent to personal jurisdiction in the stand and/or federal courts of Minnesota and hereby waive any defense of lack
of personal jurisdiction. Venue, for the purpose of all such suits, will be in Hennepin or Ramsey County, State of Minnesota.

 

[remainder of page left intentionally
blank]

 

    	MAX4G, Inc. Series B Subscription Agreement	Page 4

    	 

    

  

	INDIVIDUAL(S):	 	ENTITY:
	 	 	 
	 	 	Entity Name: Mill City Ventures III, Ltd.
	Name:	 	 	 
	Address:	 	 	 
	 	 	 	 	By: /s/ Douglas Polinsky
	 	 	 	 	Name: Douglas Polinsky
	Social Security Number:	 	 	 	Its: CEO
	 	 	 	 
	(if joint shareholder)	 	 	Federal Tax ID: 90-0316651

 

	 	 	Address:  130 Lake St. W.
	Name:	 	 	Wayzata, MN 55391

 

	Social Security Number: 	 	 

 

	Number of Shares Purchased: 300,000
	Purchase Price Per Share:  $0.50
	Aggregate Purchase Price: $150,000.00
	 
	The Subscriber desires that the Securities be held as follows (check one):
	 	 	 	 	 	 	 
	 ̈	Individual Ownership	 	x	Corporation*
	 ̈	Community Property	 	 ̈	Trust*
	 ̈	Jt. Tenant with Right of Survivorship	 	 ̈	Limited Liability Company*
	 	(both parties must sign)	 	 ̈	Partnership*
	 ̈	Tenants in Common	 	 ̈	Other (please describe):
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	* If Securities are being subscribed for by an entity, the Certificate of Signatory attached as Exhibit B to this agreement must also be completed.

 

The Company hereby accepts the subscription
evidenced by this Subscription and Investment Letter:

 

	Date: ________________________________	MAX4G, INC.
	(which date shall be the effective	 
	date of this Agreement)	 
	 	By:   	 
	 	Vladimir Kelman
	 	President and Chief Executive Officer

  

    	 

    	 

    

 

EXHIBIT A

 

ACCREDITED INVESTOR CRITERIA

[Initial as applicable]

 

	_____	The undersigned is an individual with a net worth, or a join net worth together with his or her spouse, in excess of $1,000,000.  (In computing net worth, the value of the Subscriber’s primary residence must be excluded from the calculation of total assets.  Indebtedness that is secured by the Subscriber’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of Securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability).  Indebtedness that is secured by the Subscriber’s primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of Securities shall be included as a liability.)
	 	 
	_____	The undersigned is an individual that had an individual income in excess of $200,000 in each of the prior two years and reasonably expects an income in excess of $200,000 in the current year.
	 	 
	_____	The undersigned is an individual that had with his or her spouse join income in excess of $300,000 in each of the prior two years and reasonably expects joint income in excess of $300,000 in the current year.
	 	 
	_____	The undersigned is a director or executive officer of the Company.
	 	 
	_____	The undersigned is an entity, and is an “Accredited Investor” as defined in Rule 501(a) of Regulation D under the Securities Act.  This representation is based on the following (check on or more, as applicable):

 

	 	_____	The undersigned is an entity in which all equity owners are accredited investors. (If relying on this category alone, each equity owner must complete a separate copy of this Agreement.)
	 	 	 
	 	_____	The undersigned (or, in the case of a trust, the undersigned trustee) is a bank or savings and loan association as defined in Sections 3(a)(2) and 3(a)(5)(A), respectively, of the Securities Act acting either in its individual or fiduciary capacity.
	 	 	 
	 	_____	The undersigned is an insurance company as defined in Section 2(13) of the Securities Act.
	 	 	 
	 	_____	The undersigned is broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.
	 	 	 
	 	_____	The undersigned is an investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of the Securities Act.

 

    	 

    	 

    

 

	 	_____	The undersigned is a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c_ or (d) of the Small Business Investment Act of 1958.
	 	 	 
	 	_____	The undersigned is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 and either (check one or more, as applicable):
	 	 	 
	 	 	_____  the investment decision is made by a plan fiduciary, as defined in Section 3(21) of the Securities Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser; or
	 	 	 
	 	 	_____  the employee benefit plan has total assets in excess of $5,000,000; or
	 	 	 
	 	 	_____  the plan is a self-directed plan with investment decisions made solely by persons who are “Accredited Investors” as defined under the Securities Act.
	 	 	 
	 	__X__	The undersigned is a business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.
	 	 	 
	 	_____	The undersigned has total assets in excess of $5,000,000, was not formed for the specific purpose of acquiring Securities and is one or more of the following (check one or more, as applicable):
	 	 	 
	 	 	 _____  an organization described in Section 501(c)(3) of the Internal Revenue Code; or
	 	 	 
	 	 	_____  a corporation; or
	 	 	 
	 	 	_____  a Massachusetts or similar business trust; or
	 	 	 
	 	 	_____  a partnership.
	 	 	 
	 	_____	The undersigned is a trust with total assets exceeding $5,000,000, which was not formed for the specific purpose of acquiring Securities and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that Subscriber is capable of evaluating the merits and risks of the investment in the Securities.

 

    	 

    	 

    

 

EXHIBIT B

 

LEGAL ENTITY SUBSCRIBER

CERTIFCATE OF SIGNATORY

 

Name of Subscriber: Mill City Ventures III, Ltd.

 

	 	 ̈  Corporation	 ̈  Partnership	 ̈  Trust	 ̈  Limited Liability Company	 ̈  Other

 

	Date Organized: 	1/10/2006
	 	 
	Purpose of Organization:	Business Development Company
	 	 
	Federal Tax ID #:	90-0316651

 

1.     Individual(s)
authorized to execute documents on behalf of the entity in connection with this investment:

 

Douglas Polinsky, CEO

Joseph Geraci, CFO

 

NOTE: A power of attorney or other evidence of authority
is required if the Partnership, Limited Liability Company or Trust Agreement or bylaws do not specifically authorize the above-named
individual(s) to make this investment for the Partnership, Corporation, Limited Liability Company or Trust. In any event, authorizing
documents should accompany this Investment Letter.

 

2.     How
many individuals comprise the entity? 2

 

3.     Is
the entity relying on the judgment of a particular individual other than a member of the entity in making the investment decision?
If yes, whom? No

 

This Certificate of Signatory has been executed as
of the date printed below by the authorized person listed below.

 

Date:    5/29/13

 

	 	By: /s/ Douglas Polinsky
	 	Name:  Douglas Polinsky
	 	Its: CEO

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