Document:

Exhibit

Execution Version

    
US 3981522v.11
THIRTEENTH AMENDMENT TO
CREDIT AGREEMENT
dated as of
January 25, 2016
among
PETROQUEST ENERGY, INC.,
as Parent,
PETROQUEST ENERGY, L.L.C.,
as Borrower,
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent,
and
The Lenders Party Hereto
____________________________
J.P. MORGAN SECURITIES LLC, 
as Lead Arranger
                                                    

THIRTEENTH AMENDMENT TO CREDIT AGREEMENT

THIS THIRTEENTH AMENDMENT TO CREDIT AGREEMENT (this “Thirteenth Amendment”) dated as of January 25, 2016 (the “Thirteenth Amendment Effective Date”), is among PETROQUEST ENERGY, INC., a Delaware corporation, as the Parent, PETROQUEST ENERGY, L.L.C., a Louisiana limited liability company, as the Borrower, JPMORGAN CHASE BANK, N.A., as Administrative Agent, and the Lenders party hereto.
R E C I T A L S
WHEREAS, the Parent, the Borrower, Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of October 2, 2008, as amended by that certain First Amendment to Credit Agreement dated as of March 24, 2009, that certain Second Amendment to Credit Agreement dated as of September 30, 2009, that certain Third Amendment to Credit Agreement dated as of August 5, 2010, that certain Fourth Amendment to Credit Agreement dated as of October 3, 2011, that certain Fifth Amendment to Credit Agreement dated as of March 29, 2013, that certain Sixth Amendment to Credit Agreement dated as of June 19, 2013, that certain Seventh Amendment to Credit Agreement dated as of March 31, 2014, that certain Eighth Amendment to Credit Agreement dated as of September 29, 2014, that certain Ninth Amendment to Credit Agreement dated as of February 26, 2015, that certain Tenth Amendment to Credit Agreement dated as of March 27, 2015, that certain Eleventh Amendment, Limited Consent and Waiver to Credit Agreement dated as of June 4, 2015 and that certain Twelfth Amendment to Credit Agreement dated as of September 8, 2015 (as otherwise amended, restated, supplemented or modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain loans to and extensions of credit for the account of the Borrower; 
WHEREAS, the Borrower has advised the Administrative Agent that the Parent intends to enter into an indenture (the “Senior Secured Indenture”) on the terms set forth in that certain Offering Memorandum and Consent Solicitation Statement, dated as of January 14, 2016 (the “Senior Secured Notes due 2021 Offering Memorandum”), pursuant to which the Parent shall issue “Notes” (as defined the Senior Secured Indenture) with a coupon rate of 10% per annum (such Notes, the “Senior Secured Notes due 2021”);
WHEREAS, the Borrower has advised the Administrative Agent that the proceeds of the Senior Secured Notes due 2021 shall be used to Redeem all or a portion of the Senior Notes due 2017; 
WHEREAS, the Borrower has advised Administrative Agent that it is evaluating the sale of the Oil and Gas Properties listed on Annex A hereto (such sale, the “Oklahoma Asset Sale”), which Oil and Gas Properties constitute the majority of its remaining Oil and Gas Properties located in Oklahoma;
WHEREAS, the Borrower has requested and the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement as more particularly set forth herein, including, without limitation, to consent to the issuance of the Senior Secured Notes due 2021 and 

the transactions contemplated thereby and the Oklahoma Asset Sale, in each case, pursuant to the terms of the Credit Agreement (as amended hereby);
WHEREAS, pursuant to Section 3.2 of the Eleventh Amendment, the Required Lenders have agreed to redetermine the Borrowing Base by reducing the Borrowing Base to $42,000,000.00 as provided herein; and
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term used herein (including, without limitation, in the preamble and recitals) but not otherwise defined herein has the meaning given such term in the Credit Agreement, including, to the extent the context so requires, after giving effect to the amendments to the Credit Agreement contained in this Thirteenth Amendment. Unless otherwise indicated, all article and section references in this Thirteenth Amendment refer to articles and sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.  In reliance on the representations, warranties, covenants and agreements contained in this Thirteenth Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 5 hereof, the Credit Agreement is hereby amended effective as of the Thirteenth Amendment Effective Date in the manner provided in this Section 2.
2.1    Amendments to Section 1.02.  
(a)    The following definitions are hereby amended and restated in their entirety to read in full as follows:
“Agreement” means this Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment and the Thirteenth Amendment as the same may from time to time be further amended, modified, supplemented or restated.
“Applicable Margin” means, for any day, with respect to any Loan or with respect to the Commitment Fee Rate, the applicable rate per annum set forth in the Total Commitments Utilization Grid below based on the Total Commitments Utilization Percentage then in effect on such day: 

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	Total Commitments Utilization Percentage
	< 25%
	≥ 25% < 50%
	≥ 50% < 75%
	≥ 75% < 90%
	≥ 90%

	Eurodollar Loans
	2.000%
	2.250%
	2.500%
	2.750%
	3.000%

	ABR Loans
	1.000%
	1.250%
	1.500%
	1.750%
	2.000%

	Commitment Fee Rate
	0.375%
	0.375%
	0.500%
	0.500%
	0.500%

Each change in the Applicable Margin and the Commitment Fee Rate shall apply during the period commencing on the effective date of such change in the Total Commitments Utilization Percentage and ending on the date immediately preceding the effective date of the next such change; provided, however, that if at any time the Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then the “Applicable Margin” and “Commitment Fee Rate” each shall mean the rate per annum set forth on the grid when the Total Commitments Utilization Percentage is at its highest level until such time as such Reserve Report is delivered, at which time the “Applicable Margin” and “Commitment Fee Rate” each shall revert to the applicable rate per annum set forth in the Total Commitments Utilization Grid above.
 “Permitted Refinancing Debt” means Debt (for purposes of this definition, “new Debt”) incurred in exchange for, or proceeds of which are used to refinance, all of any other Debt (the “Refinanced Debt”); provided that (a) such new Debt is in an aggregate principal amount not in excess of the sum of (i) the aggregate principal amount then outstanding of the Refinanced Debt (or, if the Refinanced Debt is exchanged or acquired for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration thereof, such lesser amount) and (ii) an amount necessary to pay any fees and expenses including premiums, related to such exchange or refinancing; (b) such new Debt has a stated maturity no earlier than stated maturity of the Refinanced Debt and an average life no shorter than the average life of the Refinanced Debt (provided, that if the Refinanced Debt is the Bridge Loan Facility, such new Debt shall have a stated maturity that is not earlier than six (6) months after the Maturity Date and shall not provide for scheduled amortization prior to the stated maturity);  (c) such new Debt has a stated interest rate that is a market-based rate; (d) such new Debt does not contain any covenants which are materially more onerous to the Parent and its Subsidiaries than those imposed by the Refinanced Debt, (e) such new Debt (and any guarantees thereof) is otherwise on terms and documentation satisfactory to the Administrative Agent and (f) (1) such new Debt is secured by no more collateral (if any) than the Refinanced Debt and the property constituting such collateral is not changed and (2) the obligors, whether direct or contingent, in respect of Refinanced Debt are not changed.
 “Permitted Second Lien Debt” means Debt incurred (a) by the Parent pursuant to the Senior Secured Indenture and (b) by the Parent or the Borrower pursuant to one or more other issuances of Debt (including pursuant to a Senior Secured Supplemental Indenture); provided that (i) the aggregate principal amount of all Debt incurred pursuant to this 

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definition shall not exceed $300,000,000.00, (ii) such Debt shall be used by the Parent or the Borrower in connection with the Redemption of the Senior Notes substantially concurrently with the incurrence of such Permitted Second Lien Debt; (iii) with respect to Debt incurred pursuant to clause (b) of this definition, such Debt shall (A) not provide for any scheduled payment of principal (subject to other payments permitted by the Intercreditor Agreement), scheduled mandatory Redemption or scheduled sinking fund payment before the date that is 180 days following the date in clause (a) of the definition of “Maturity Date”, (B) be secured solely by junior Liens on Mortgaged Property which Liens do not have priority over the Liens in favor of the Administrative Agent securing the Indebtedness; and (C) be evidenced and governed by definitive documentation containing (1) with respect to any Senior Secured Supplemental Indenture, the same terms (excluding the effect of any most favored nations clause) as, or terms less onerous to the Parent than, the Senior Secured Indenture or (2) customary market terms and conditions and otherwise satisfactory to the Administrative Agent in its sole discretion (provided, that solely with respect to any proposed Permitted Second Lien Debt transaction pursuant to this clause (2), the term sheet for such proposed Permitted Second Lien Debt transaction shall be submitted to the Administrative Agent for its approval in its sole discretion and the definitive documentation of such Permitted Second Lien Debt transaction shall be deemed acceptable to the Administrative Agent if the terms of such definitive documentation reflect the terms and conditions set forth in the approved term sheet and contain customary market terms and conditions and otherwise are satisfactory to the Administrative Agent in its sole discretion); and (iv) all Debt incurred pursuant to this definition shall at all times be subject to the Intercreditor Agreement.
“Security Instruments” means the Guaranty Agreement, the Account Control Agreements, the mortgages, deeds of trust and other agreements, instruments or certificates described or referred to in Exhibit F-1, and any and all other agreements, instruments, consents or certificates now or hereafter executed and delivered by the Borrower or any other Person (other than Swap Agreements with the Lenders or any Affiliate of a Lender or participation or similar agreements between any Lender and any other lender or creditor with respect to any Indebtedness pursuant to this Agreement) in connection with, or as security for the payment or performance of the Indebtedness, the Notes, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may be amended, modified, supplemented or restated from time to time.
(b)    The following definitions are added where alphabetically appropriate: 
“Account Control Agreement” shall mean an agreement which grants the Administrative Agent “control” as defined in the Uniform Commercial Code in effect in the applicable jurisdiction over the applicable Deposit Account, in form and substance acceptable to the Administrative Agent. 
“Deposit Account” means any operating, administrative, cash management, collection activity, demand, time, savings, passbook or other deposit account maintained with a bank or other financial institution.

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“Deposit Account Control Agreement Compliance Date” means the earlier of (a) February 24, 2016 and (b) the date on which a Lien is granted over any Deposit Account to secure the Senior Secured Notes due 2021. 
“Excluded Deposit Account” means any Deposit Account which is solely used for purposes of funding payroll, payroll taxes or employee benefit payments or which solely contains cash of any Person, other than the Parent or any Subsidiary, and which cash is held in such Deposit Account solely on behalf of, and for the benefit of, such third party.
“Interest Expense” means, for any period determined as to the Parent and its Consolidated Subsidiaries on a consolidated basis, the sum of (a) all interest expense (including, without limitation, interest expense attributable to Capital Leases and all net payment obligations pursuant to interest rate Swap Agreements) for such period, in accordance with GAAP, less (b) cash interest income received, less (c) non-cash interest expense (such as amortization of deferred financing costs).  
“Oklahoma Assets” means all or a portion of those certain Oil and Gas Properties set forth on Annex A to the Thirteenth Amendment.
 
“Oklahoma Asset Sale” means the disposition of the Oklahoma Assets to a qualified third party purchaser pursuant to the Oklahoma Sale Agreement.
“Oklahoma Sale Agreement” means a Purchase and Sale Agreement entered into between the Borrower and a qualified third party purchaser, pursuant to which Borrower will sell the Oklahoma Assets to such qualified third party purchaser.
“Oklahoma Sale Documents” means, collectively, the Oklahoma Sale Agreement and all bills of sale, assignments, instruments, and documents executed in connection therewith.
“Senior Notes Supplemental Indenture” means a supplemental indenture to the Senior Indenture amending, among other things, Section 4.06(3) and Section 4.03 thereof, as set forth in the Senior Secured Notes due 2021 Offering Memorandum.
“Senior Secured Indenture” means an indenture on the terms set forth in the Senior Secured Notes due 2021 Offering Memorandum pursuant to which the Senior Secured Notes due 2021 are issued, as in effect on the Thirteenth Amendment Effective Date.
“Senior Secured Notes due 2021” has the meaning given to the term “Notes” as defined in the Senior Secured Indenture with a coupon rate of 10% per annum, in each case as guaranteed by the Borrower and TDC Energy LLC.
“Senior Secured Notes due 2021 Offering Memorandum” means that certain Offering Memorandum and Consent Solicitation Statement, dated as of January 14, 2016.

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“Senior Secured Supplemental Indenture” means a supplemental indenture to the Senior Secured Indenture.
 “Thirteenth Amendment” means the Thirteenth Amendment to Credit Agreement dated as of January 25, 2016 among the Parent, the Borrower, the Guarantor, the Administrative Agent, and the Lenders party thereto.
“Thirteenth Amendment Effective Date” means January 25, 2016.

2.2    Amendment to Section 3.04 of the Credit Agreement.  Section 3.04 of the Credit Agreement is hereby amended to amend subsection (c)(iii) by inserting “or Section 9.12(f)” immediately after “Section 9.12(d)” therein. 

2.3    Amendment to Section 6.02 of the Credit Agreement.  Section 6.02 of the Credit Agreement is hereby amended to add a new subsection (f) and amend and restate the paragraph immediately thereafter in its entirety, in each case, to read in full as follows:

(f) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, the Borrower shall be in pro forma compliance with Section 9.01.
Each request for a Borrowing and each request for the issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in Section 6.02(a) through (f).
2.4    Amendment to Section 8.01 of the Credit Agreement.  Section 8.01 of the Credit Agreement is hereby amended to amend and restate subsection (l) in its entirety and to add a new subsection (u), in each case, to read in full as follows:

(l)    Issuance of Permitted Refinancing Debt. In the event the Parent or the Borrower intends to refinance any Debt with the proceeds of Permitted Refinancing Debt as contemplated by Section 9.02(h) or (l), prior written notice of such intended offering therefor, the amount thereof and the anticipated date of closing and will furnish a copy of the preliminary offering memorandum (if any) and the final offering memorandum (if any).
(u)    Deposit Account Control Agreements.  Promptly, and no later than five (5) Business Days after the opening thereof, written notice (such notice to include reasonably detailed information regarding the account number, purpose and location of such Deposit Account) to the Administrative Agent of any Deposit Account opened by the Parent or any of its Subsidiaries; provided that the Parent or such Subsidiary shall at all times comply with Section 8.20. 
2.5    Amendment to Section 8.11 of the Credit Agreement.  Section 8.11 of the Credit Agreement is hereby amended to add a new subsection (c) to read in full as follows:

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(c)    Notwithstanding any provision in any of the Loan Documents to the contrary, in no event is any Excluded Deposit Account encumbered by any Security Instrument; provided, that the Parent shall not, and shall not permit any of its Subsidiaries to, permit to exist any Lien on any Excluded Deposit Account except Liens permitted by Section 9.03(e).
2.6    Amendment to Section 8.12 of the Credit Agreement.  Section 8.12 of the Credit Agreement is hereby amended to restate subsections (a) and (b) in their entirety, in each case, to read in full as follows:

(a) On or before March 16th and September 16th of each year, commencing March 16th, 2016, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report evaluating the Oil and Gas Properties of the Borrower and the Borrower’s Subsidiaries as of the immediately preceding January 1st and July 1st.  The Reserve Report as of January 1 of each year shall be prepared by one or more Approved Petroleum Engineers, and the July 1st Reserve Report of each year shall be prepared by or under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report to be true and accurate and to have been prepared in accordance with the procedures used in the immediately preceding January 1st Reserve Report.
(b)    In the event of an Interim Redetermination, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report prepared by or under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report to be true and accurate and to have been prepared in accordance with the procedures used in the immediately preceding January 1st Reserve Report.  For any Interim Redetermination requested by the Administrative Agent or the Borrower pursuant to Section 2.07(b) or required pursuant to Section 3.2 of the Thirteenth Amendment, the Borrower shall provide such Reserve Report as soon as possible, but in any event (i) no later than thirty days following the receipt of such request pursuant to Section 2.07(b), with an “as of” date as required by the Administrative Agent, or (ii) with respect to Interim Redeterminations required pursuant to Section 3.2 of the Thirteenth Amendment, on or before July 16th, with an “as of” date of the immediately preceding May 1st, and December 16th, with an “as of” date of the immediately preceding October 1st, of each year, commencing July 16th, 2016, as applicable.   
2.7    Amendment to Article VIII of the Credit Agreement.  Article VIII of the Credit Agreement shall be amended by inserting new Sections 8.20, 8.21 and 8.22, which shall each read in full as follows:
Section 8.20  Deposit Accounts.  The Parent and each Subsidiary will maintain one or more of the Lenders as its principal depository bank, including for the maintenance of any Deposit Account for the conduct of its business.  All such Deposit Accounts (other than Excluded Deposit Accounts) shall at all times be subject to an Account Control Agreement; provided that, subject to Section 8.21, Account Control Agreements with respect to Deposit Accounts (other than any Excluded Deposit Account) in existence on the Thirteenth 

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Amendment Effective Date shall not be required until the Deposit Account Control Agreement Compliance Date.
Section 8.21  Post Closing; Account Control Agreements.  The Parent and each Subsidiary shall, no later than the Deposit Account Control Agreement Compliance Date (or such later time as the Administrative Agent may agree in its sole discretion), deliver to the Administrative Agent duly executed Account Control Agreements with respect to each Deposit Account (other than any Excluded Deposit Account) in existence on the Thirteenth Amendment Effective Date.

Section 8.22  Post Closing; Senior Secured Indenture; Senior Notes Supplemental Indenture.  (a) The Parent shall, on the date on which the Parent issues the Senior Secured Notes due 2021, deliver to the Administrative Agent an executed copy of the Senior Secured Indenture (including all exhibits thereto and deliverables (including certificates and legal opinions) thereunder), all as certified by a Responsible Officer as true and complete as of such date.

(b) The Parent shall, no later than sixty (60) days after the date on which the Parent issues the Senior Secured Notes due 2021 (or such later date, if any, provided under the Senior Secured Indenture), deliver to the Administrative Agent executed copies of the security documents, which security documents shall be in form and substance substantially similar to the Security Instruments (as amended, amended and restated, modified or supplemented), granting Liens to secure the Senior Secured Notes due 2021, all as certified by a Responsible Officer as true and complete as of such date.

(c) Promptly, but no later than on the effective date thereof, the Administrative Agent shall have received an executed copy of the Senior Notes Supplemental Indenture certified by a Responsible Officer as true and complete as of such date. 

2.8    Amendment to Section 9.01 of the Credit Agreement.  Section 9.01 of the Credit Agreement is hereby amended to restate subsections (a)(ii) and (b) in their entirety and to add a new subsection (c), in each case, to read in full as follows:

(a)(ii)    so long as the Borrower has Unused Availability under this Agreement greater than or equal to 75% of the aggregate Commitments at all times during the consecutive three (3) month period prior to and including the date of such calculation, (A) 4.50 to 1.0 as of the last day of the fiscal quarter ending December 31, 2015, (B) 5.00 to 1.0 as of the last day of the fiscal quarter ending March 31, 2016, (C) 5.50 to 1.0 as of the last day of the fiscal quarter ending June 30, 2016, (D) 5.75 to 1.0 as of the last day of the fiscal quarters ending September 30, 2016 and December 31, 2016 and (E) 4.25 to 1.0 as of the last day of any fiscal quarter ending on or after March 31, 2017; provided that, for purposes of determining compliance with this Section 9.01(a)(ii) for each of the four consecutive fiscal quarter periods ending December 31, 2015, March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, “Total Debt” shall be reduced by the amount of (1) unencumbered and unrestricted cash of the Parent and its Subsidiaries and (2) cash of the 

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Parent and its Subsidiaries subject to an Account Control Agreement securing the Indebtedness;
(b)    [Intentionally Deleted].
(c)    Interest Coverage Ratio. The Parent will not permit its ratio of (i) EBITDAX for the period of four previous consecutive fiscal quarters to (ii) Interest Expense for the period of four previous consecutive fiscal quarters, as of the last day of any fiscal quarter, to be less than 1.0 to 1.0.
2.9    Amendment to Section 9.02 of the Credit Agreement.  Section 9.02 of the Credit Agreement is hereby amended to restate subsections (h) and (l) in its entirety to read in full as follows:
(h)    Debt (i) under the Senior Notes and any guarantees thereof, in each case incurred on or before the Thirteenth Amendment Effective Date, the principal amount of which does not exceed $350,000,000 in the aggregate and (ii) Debt which constitutes Permitted Refinancing Debt of such Senior Notes and any guarantees thereof; provided that the aggregate principal amount of all such Debt permitted under this Section 9.02(h) does not exceed $350,000,000.00 in the aggregate.
(l) (i) Permitted Second Lien Debt and guarantees thereof by any Guarantor and (ii) Debt which constitutes Permitted Refinancing Debt of such Permitted Second Lien Debt permitted under the Intercreditor Agreement and any guarantees thereof; in each case, so long as (A) no Default, Event of Default or Borrowing Base Deficiency exists or results from the incurrence of any such Debt (including any incremental advances made to the Parent or Borrower in respect of such Debt under any such credit or loan document or indenture related thereto), (B) after giving effect to such incurrence of Debt (including any such incremental advances), the Borrower is in pro forma compliance with Section 9.01 and (C) the aggregate principal amount of all such Debt permitted under this Section 9.02(l) does not exceed $300,000,000.00 in the aggregate.
2.10    Amendment to Section 9.03 of the Credit Agreement. Section 9.03 of the Credit Agreement is hereby amended to restate subsection (e) in its entirety to read in full as follows:
(e)    Liens on (i) Property not constituting collateral for the Indebtedness or (ii) cash in Excluded Deposit Accounts, in either case, not otherwise permitted by the foregoing clauses of this Section 9.03; provided that (x) the principal or face amount of all Debt secured under Section 9.03(e)(i) and (y) the aggregate fair market value (determined as of the date such Lien is incurred) of the assets subject to such Lien (as to the Parent and all Subsidiaries) does not exceed $5,000,000 in the aggregate at any one time. 
2.11    Amendment to Section 9.04 of the Credit Agreement. Section 9.04 of the Credit Agreement is hereby amended to restate subsections (a)  and (b) in their entirety to read in full as follows:

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(a)    Restricted Payments.  The Parent will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, return any capital to its Equity Interest holders or make any distribution of its Property to its Equity Interest holders, except:  (i) the Parent may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock), (ii) Subsidiaries of the Borrower may declare and pay dividends ratably with respect to their Equity Interests, (iii) the Parent may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Parent and its Subsidiaries and (iv) so long as no Default, Event of Default or Borrowing Base Deficiency exists or would result therefrom, the Borrower may declare and pay dividends to Parent.
(b)    Redemption of Senior Notes and Bridge Loans; Amendment of Senior Indenture and Bridge Loan Facility. The Parent will not, and will not permit any of its Subsidiaries to, prior to the date that is ninety-one (91) days after the Maturity Date: (i) call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes, the Bridge Loans, the Converted Term Loan, Senior Exchange Notes or any Permitted Refinancing Debt in respect thereof; provided that the Borrower and/or the Parent may (x) prepay the Senior Notes and/or the Bridge Loans, the Converted Term Loan and the Senior Exchange Notes with (A) the  proceeds of any Permitted Refinancing Debt (or with the proceeds of Second Lien Permitted Debt) or (B) the net cash proceeds of any sale of Equity Interests (other than Disqualified Capital Stock) of the Parent and, in the case of Senior Notes, following the completion of a tender offer which is substantially concurrent with the issuance of such Permitted Refinancing Debt (or with the proceeds of Second Lien Permitted Debt), (y) issue additional Equity Interests (other than Disqualified Capital Stock) of the Parent in exchange for all or a portion of the Senior Notes or (z) Redeem (in part) the Senior Notes with cash (other than cash constituting proceeds of any Loan); provided that (A) the Borrower shall have, on a pro-forma basis after giving effect to such Redemption, Unused Availability under this Agreement of not less than 50% of the aggregate Commitments, (B) no Default or Event of Default shall have occurred and be continuing and (C) after giving effect to such Redemption, the Borrower is in pro forma compliance with Section 9.01; or (ii) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of the Senior Notes, the Bridge Loan Facility, the Converted Term Loan, the Senior Exchange Notes or any Permitted Refinancing Debt or the Senior Indenture if the effect thereof would be to shorten its maturity or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon.
2.12    Amendment to Section 9.12 of the Credit Agreement.  Section 9.12 of the Credit Agreement is hereby amended to (a) delete the word “and” after “;” at the end of subsection (d)(iii) thereof, (b) delete the “.” at the end of subsection (e) thereof and replace it with “; and” and (c) insert a new subsection (f) which shall read in full as follows:

(f)    the Oklahoma Asset Sale; provided that:

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(i)    the closing date of the Oklahoma Asset Sale occurs on or prior to the effectiveness of the March 31, 2016 Scheduled Redetermination of the Borrowing Base;
(ii)    no Default, Event of Default or Borrowing Base Deficiency exists or results from the Oklahoma Asset Sale after giving effect to the reduction of the Borrowing Base pursuant to Section 9.12(f)(vi) and the mandatory prepayment of the Borrowings pursuant to Section 3.04(c)(iii);
(iii)    100% of the consideration received in respect of the Oklahoma Asset Sale shall be cash; 
(iv)    the consideration received in respect of the Oklahoma Asset Sale shall be equal to or greater than the fair market value of the Oklahoma Assets (as reasonably determined by the board of directors (or comparable governing body) of the Borrower and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that effect); 
(v)    the Administrative Agent shall have received a final, fully-executed copy of the Oklahoma Sale Agreement and the material Oklahoma Sale Documents, each in form and substance reasonably satisfactory to the Administrative Agent (including all schedules and exhibits thereto) and a certificate of a Responsible Officer of Borrower, dated as of any closing date of the Oklahoma Asset Sale, certifying that (i) such material Oklahoma Sale Documents are true and correct copies thereof, (ii) no material rights or obligations of any party to any Oklahoma Sale Document have been waived and that no party to any Oklahoma Sale Document is in default of its material obligations or in material breach of any representations or warranties made thereunder and (iii) as of such date, that such closing date of the Oklahoma Asset Sale has occurred in compliance with the Oklahoma Sale Agreement; and
(vi) the Borrowing Base shall reduce immediately and automatically by an amount equal to $10,000,000 as of the closing date of the Oklahoma Asset Sale.
2.13    Amendment to Section 9.23 of the Credit Agreement. Section 9.23 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:
Section 9.23    Repayment of Permitted Second Lien Debt; Amendment of Terms of Permitted Second Lien Debt Documents.  The Parent will not, and will not permit any of the Parent’s Subsidiaries to, prior to the date that is 180 days after the date in clause (a) of the definition of “Maturity Date”: (a) call, make or offer to make any optional or voluntary Redemption of, or otherwise optionally or voluntarily Redeem (whether in whole or in part), any Permitted Second Lien Debt; provided, that the Borrower and/or Parent may voluntarily Redeem Permitted Second Lien Debt (i) with the  proceeds of any Permitted Refinancing Debt permitted under the Intercreditor Agreement, (ii) with cash proceeds of an offering of Equity Interests (other than Disqualified Capital Stock) of the Parent, (iii) with cash proceeds from a sale of any Property other than (A) a sale of any Property that contains proved reserves 

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or (B) a sale, assignment, monetization, transfer, cancellation, termination, unwinding or other disposition of any Swap Agreement (iv) with the issuance of additional Equity Interests (other than Disqualified Capital Stock) of the Parent in exchange for all or a portion of the Permitted Second Lien Debt, so long as, in the case of the foregoing clauses (ii), (iii) and (iv), no Default or Borrowing Base Deficiency has occurred and is continuing both before and after giving effect to such Redemption and such Redemption occurs substantially contemporaneously with, and in any event within three (3) Business Days following, the receipt of proceeds or confirmation of exchange, as applicable, in respect of such Redemption or (b) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to any of the terms of the Permitted Second Lien Debt Documents other than amendments or other modifications that are permitted under the Intercreditor Agreement.  
2.14    Amendment to Section 10.01 of the Credit Agreement.  Section 10.01 of the Credit Agreement is hereby amended to restate subsection (d) in its entirety to read in full as follows:

(d)    the Parent, the Borrower or any Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in Section 8.01(h), Section 8.01(m), Section 8.02, Section 8.03, Section 8.14, Section 8.15, Section 8.19, Section 8.20, Section 8.21, Section 8.22 or in Article IX.

Section 3.    Borrowing Base.  
3.1    Redetermination of Borrowing Base.  The Lenders party hereto hereby agree that for the period from and including the Thirteenth Amendment Effective Date, but until the next Redetermination Date, the amount of the Borrowing Base shall be reduced to $42,000,000.00.  The Lenders party hereto, the Borrower and the Parent agree that the redetermination provided for in this Section 3 shall constitute the Interim Redetermination of the Borrowing Base for December 1, 2015 pursuant to Section 3.2 of the Eleventh Amendment.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 8.13(c), Section 8.16 and Section 9.12(d) of the Credit Agreement or Section 3.2.
3.2    Irrevocable Election of Interim Redeterminations.  The Borrower and the Administrative Agent, at the direction of the Lenders party hereto, hereby each irrevocably elect to cause the Borrowing Base to be redetermined on July 31 and December 31 of each year, commencing July 31, 2016 (or, in either case, such date promptly thereafter as reasonably practicable), and such redeterminations provided for in this Section 3.2 shall each constitute an additional Interim Redetermination of the Borrowing Base for the purposes of the Credit Agreement, in addition to those Interim Redeterminations permitted under Section 2.07(b) of the Credit Agreement.  This Section 3.2 shall constitute the New Borrowing Base Notice delivered under Section 2.07(d) of the Credit Agreement with respect to the Interim Redetermination of the Borrowing Base for December 1, 2015 pursuant to Section 3.2 of the Eleventh Amendment. 

12

Section 4.    Deposit Accounts.  Schedule I attached hereto sets forth the account numbers, purposes and locations of all Deposit Accounts of the Parent and its Subsidiaries as of the Thirteenth Amendment Effective Date.
Section 5.    Conditions Precedent.  The amendments to the Credit Agreement contained in Section 2 hereof and the provisions of Section 3 hereof shall each be effective on the date that each of the following conditions precedent is satisfied or waived in accordance with Section 12.02 of the Credit Agreement:
5.1    Counterparts. Administrative Agent shall have received from the Required Lenders, the Parent, the Borrower and each Guarantor, counterparts (in such number as may be requested by the Administrative Agent) of this Thirteenth Amendment signed on behalf of such Persons.
5.2    Fees and Expenses.  The Borrower shall have paid to Administrative Agent any and all fees and expenses payable to Administrative Agent or the Lenders pursuant to or in connection with this Thirteenth Amendment.
5.3    No Default/No Event of Default/No Borrowing Base Deficiency.  No Default, Event of Default or Borrowing Base Deficiency shall have occurred and be continuing.
5.4    Offering Memorandum.  The Administrative Agent shall have received an executed copy of the Senior Secured Notes due 2021 Offering Memorandum, certified by a Responsible Officer as true and complete as of such date.
5.5    Other Documents.  Administrative Agent shall have received such other documents as Administrative Agent or counsel to Administrative Agent may reasonably request.
Administrative Agent is hereby authorized and directed to declare this Thirteenth Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of Administrative Agent, compliance with the conditions set forth in this Section 5.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 6.    Miscellaneous.
6.1    Confirmation.  Any and all of the terms and provisions of the Credit Agreement and the other Loan Documents shall, except as modified hereby, remain in full force and effect following the effectiveness of this Thirteenth Amendment.  
6.2    Ratification and Affirmation; Representations and Warranties.  Each of the Borrower and each Guarantor hereby (a) ratifies and affirms its respective obligations under, and acknowledges, renews and extends its respective continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein and (b) represents and warrants to the Lenders that, as of the date hereof, after giving effect to the terms of this Thirteenth Amendment:  (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct, except to the extent 

13

any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct as of such specified earlier date, (ii) no Default has occurred and is continuing and (iii) no Material Adverse Effect has occurred.
6.3    Loan Document.  This Thirteenth Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
6.4    Counterparts.  This Thirteenth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Thirteenth Amendment by facsimile transmission or via .pdf shall be effective as delivery of a manually executed counterpart hereof.
6.5    NO ORAL AGREEMENT.  THIS THIRTEENTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY SEPARATE LETTER AGREEMENTS WITH RESPECT TO FEES PAYABLE TO ADMINISTRATIVE AGENT CONSTITUTE THE ENTIRE CONTRACT AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND SUPERSEDE ANY AND ALL PREVIOUS AGREEMENTS AND UNDERSTANDINGS, ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF. THIS THIRTEENTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
6.6    GOVERNING LAW.  THIS THIRTEENTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 
6.7    FATCA.  From and after the Thirteenth Amendment Effective Date, the Borrower shall indemnify the Administrative Agent, and hold it harmless from, any and all losses, claims, damages, liabilities and related expenses, including Taxes and the fees, charges and disbursements of any counsel for any of the foregoing, arising in connection with the Administrative Agent’s treating, for purposes of determining withholding Taxes imposed under FATCA, the Thirteenth Amendment as qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).
6.8    RELEASE.  EACH OF THE PARENT AND ITS SUBSIDIARIES (IN ITS OWN RIGHT AND ON BEHALF OF ITS PREDECESSORS, SUCCESSORS, LEGAL REPRESENTATIVES AND ASSIGNS) HEREBY EXPRESSLY AND UNCONDITIONALLY ACKNOWLEDGES AND AGREES THAT IT HAS NO SETOFFS, COUNTERCLAIMS, ADJUSTMENTS, RECOUPMENTS, DEFENSES, CLAIMS, CAUSES OF ACTION, ACTIONS OR DAMAGES OF ANY CHARACTER OR 

14

NATURE, WHETHER CONTINGENT, NONCONTINGENT, LIQUIDATED, UNLIQUIDATED, FIXED, MATURED, UNMATURED, DISPUTED, UNDISPUTED, LEGAL, EQUITABLE, SECURED OR UNSECURED, KNOWN OR UNKNOWN, ACTUAL OR PUNITIVE, FORESEEN OR UNFORESEEN, DIRECT, OR INDIRECT, AGAINST THE ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY LENDER (COLLECTIVELY, THE “CREDIT PARTIES”), ANY OF ANY CREDIT PARTY’S AFFILIATES OR ANY OF ITS OFFICERS, DIRECTORS, AGENTS, EMPLOYEES, ATTORNEYS OR REPRESENTATIVES OR ANY OF THEIR RESPECTIVE PREDECESSORS, SUCCESSORS OR ASSIGNS (COLLECTIVELY, THE “LENDER-RELATED PARTIES”) OR ANY GROUNDS OR CAUSE FOR REDUCTION, MODIFICATION, SET ASIDE OR SUBORDINATION OF THE SECURED OBLIGATIONS OR ANY LIENS OR SECURITY INTERESTS OF THE CREDIT PARTIES.  IN PARTIAL CONSIDERATION FOR THE AGREEMENT OF ADMINISTRATIVE AGENT AND LENDERS PARTY HERETO TO ENTER INTO THIS AGREEMENT, EACH OF THE PARENT AND ITS SUBSIDIARIES HEREBY KNOWINGLY AND UNCONDITIONALLY WAIVES AND FULLY AND FINALLY RELEASES AND FOREVER DISCHARGES THE LENDER-RELATED PARTIES FROM, AND COVENANTS NOT TO SUE THE LENDER-RELATED PARTIES FOR, ANY AND ALL SETOFFS, COUNTERCLAIMS, ADJUSTMENTS, RECOUPMENTS, CLAIMS, CAUSES OF ACTION, ACTIONS, GROUNDS, CAUSES, DAMAGES, COSTS AND EXPENSES OF EVERY NATURE AND CHARACTER, WHETHER CONTINGENT, NONCONTINGENT, LIQUIDATED, UNLIQUIDATED, FIXED, MATURED, UNMATURED, DISPUTED, UNDISPUTED, LEGAL, EQUITABLE, SECURED OR UNSECURED, KNOWN OR UNKNOWN, ACTUAL OR PUNITIVE, FORESEEN OR UNFORESEEN, DIRECT OR INDIRECT, ARISING OUT OF OR FROM OR RELATED TO ANY OF THE LOAN DOCUMENTS, WHICH THE PARENT OR ANY SUBSIDIARY NOW OWNS AND HOLDS, OR HAS AT ANY TIME HERETOFORE OWNED OR HELD, SUCH WAIVER, RELEASE AND DISCHARGE BEING MADE WITH FULL KNOWLEDGE AND UNDERSTANDING OF THE CIRCUMSTANCES AND EFFECTS OF SUCH WAIVER, RELEASE AND DISCHARGE AND AFTER HAVING CONSULTED LEGAL COUNSEL OF ITS OWN CHOOSING WITH RESPECT THERETO.  THIS SECTION IS IN ADDITION TO ANY OTHER RELEASE OF ANY OF THE LENDER-RELATED PARTIES BY THE PARENT OR ANY SUBSIDIARY AND SHALL NOT IN ANY WAY LIMIT ANY OTHER RELEASE, COVENANT NOT TO SUE, OR WAIVER BY THE PARENT OR ANY SUBSIDIARY IN FAVOR OF ANY OF THE LENDER-RELATED PARTIES.
6.9    Payment of Expenses.  The Borrower agrees to pay or reimburse Administrative Agent for all of its out-of-pocket costs and expenses incurred in connection with this Thirteenth Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to Administrative Agent.
6.10    Severability.  Any provision of this Thirteenth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such 

15

prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
6.11    Successors and Assigns.  This Thirteenth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

[SIGNATURES BEGIN NEXT PAGE]

16

IN WITNESS WHEREOF, the parties hereto have caused this Thirteenth Amendment to be duly executed as of the date first written above.

BORROWER:    PETROQUEST ENERGY, L.L.C.
/s/ J. Bond Clement                    
J. Bond Clement
Executive Vice President, Chief Financial Officer
and Treasurer

PARENT:    PETROQUEST ENERGY, INC.
/s/ J. Bond Clement                    
J. Bond Clement
Executive Vice President, Chief Financial Officer
and Treasurer

GUARANTOR:    TDC ENERGY LLC
/s/ J. Bond Clement                    
J. Bond Clement
Executive Vice President, Chief Financial Officer  
and  Treasurer

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT] 

ADMINISTRATIVE AGENT:    JPMORGAN CHASE BANK, N.A.
		
	AND LENDER
	individually, as a Lender, as Administrative Agent and as Issuing Bank

By:      /s/ Correne S. Loeffler                
Name:  Correne S. Loeffler
Title:   Authorized Officer

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT] 

LENDER:                    WELLS FARGO BANK, N.A.

By:                              
Name:  
Title:

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT] 

LENDER:                    CAPITAL ONE, NATIONAL ASSOCIATION

By:      /s/ Laurel Varney                
Name:  Laurel Varney
Title:   Vice President

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT] 

LENDER:    IBERIABANK
By:      /s/ W. Bryan Chapman            
Name:  W. Bryan Chapman
Title:   Executive Vice President

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT] 

LENDER:                    BANK OF AMERICA, N.A.

By:      /s/ Raza Jafferi                    
Name:  Raza Jafferi
Title:   Vice President

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT] 

LENDER:                    THE BANK OF NOVA SCOTIA

By:      /s/ Alan Dawson                
Name:  Alan Dawson
Title:    Director    

[SIGNATURE PAGE TO PETROQUEST THIRTEENTH AMENDMENT]Exhibit 4.30

 

iSign Solutions
Inc.

 

WARRANT TO PURCHASE
COMMON STOCK

 

Warrant
No.:                                                                                  Number of Warrant Shares: 
 

Date of Issuance:
[____ [•], 2016] (“Issuance Date”) 

Expiration Date:
[_____ [•], 2021] (“Expiration Date”)

 

iSign Solutions
Inc., a Delaware corporation (the “Company”), certifies that, for good and valuable consideration, the receipt
and sufficiency of which are acknowledged,                               , the registered holder hereof 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 surrender 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 date hereof (the “Exercisability
Date”), but not after 5:30 p.m., New York Time, on the Expiration Date, such number of shares, as set forth above, of
fully paid and nonassessable 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 16.

 

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(d)),
this Warrant may be exercised by the Holder on any day on or after the Exercisability Date, in whole or in part (but not as to
fractional shares), by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise
Notice”), of the Holder’s election to exercise this Warrant and (ii) if both (A) the Holder is not electing
a Cashless Exercise (as defined below) pursuant to Section 1(c) of this Warrant and (B) a registration statement registering
the issuance of the Warrant Shares under the Securities Act of 1933, as amended (the “Securities Act”), is effective
and available for the issuance of the Warrant Shares, payment to the Company of an amount equal to the applicable Exercise Price
multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”)
in cash or wire transfer of immediately available funds (a “Cash Exercise”). The Holder shall not be required
to surrender this Warrant in order to effect an exercise hereunder, provided that in the event of an exercise
of this Warrant for all Warrant Shares then issuable hereunder, the Holder shall surrender this Warrant to the Company by the third
(3rd) Trading Day following the Share Delivery Date (as defined below). On or before the first (1st) Trading Day following the
date on which the Company has received the Exercise Notice, the Company shall transmit by email or facsimile an acknowledgment
of confirmation of receipt of the Exercise Notice to the Holder and American Stock Transfer & Trust Company, LLC, the Company’s
transfer agent for the Common Stock and Warrants (the “Transfer Agent”). On or before the later of (i) the third
(3rd) Trading Day following the date on which the Company has received the Exercise Notice duly completed and executed
by the Holder, so long as the Aggregate Exercise Price, in the case of a Cash Exercise, is delivered to the Company within two
(2) Trading Days following delivery of the Exercise Notice and (ii) if the Holder has not delivered the Aggregate Exercise Price
to the Company, in the case of a Cash Exercise, within two (2) Trading Days following delivery of the Exercise Notice, the first
(1st) Trading Day following the date on which the Holder delivers such Aggregate Exercise Price (such later date, the
“Share Delivery Date”), the Company shall, upon the request of the Holder, credit such aggregate number of shares
of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance
account with The Depository Trust Company (“DTC”) through its Deposit Withdrawal At Custodian system, or if
the Transfer Agent is not participating in the Fast Automated Securities Transfer Program (the “FAST Program”)
or if the Warrant Shares are required by law to bear a legend regarding restriction on transferability, issue and dispatch by overnight
courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in
the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such
exercise. The Company shall deliver any objection to the Exercise Notice on or before the Trading Day following the date on which
the Exercise Notice has been delivered to the Company. Upon delivery of the Exercise Notice, so long as the Aggregate Exercise
Price, in the case of a Cash Exercise, is delivered to the Company within two (2) Trading Days following delivery of the 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, then the Company shall as soon as practicable
and in no event later than three (3) Trading Days after any exercise and at the Company’s own expense, issue a new Warrant
(in accordance with Section 7(e)) 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. The
Company shall pay any and all taxes that are required to be paid by the Company with respect to the issuance and delivery of Warrant
Shares upon exercise of this Warrant; provided, however, that the Company shall not be required to pay
any tax which may be payable based on the income of the Holder or in respect of any transfer involved in the registration of any
certificates for Warrant Shares or Warrants in a name other than that of the Holder or an affiliate thereof. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

 

    	1

    	 

    

In
addition to any other rights available to the Holder, but subject to the terms hereof, if the Company fails to cause the Transfer
Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares or to credit the Holder’s
balance account with DTC for such number of Warrant Shares to which the Holder is entitled upon the Holder’s exercise pursuant
to an exercise on or before the Share Delivery Date, and if after such date the Holder purchases (in an open market transaction
or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder was entitled to receive anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall within three (3) Trading 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,
if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such Warrant Shares or credit such Holder’s balance account with DTC)
shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing
such Warrant Shares or credit such Holder’s balance account with DTC 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 shares of Common Stock, times (B) the Weighted
Average Price of a share of Common Stock on the date of exercise. While this Warrant remains outstanding, the Company shall maintain
a transfer agent that participates in the DTC’s FAST Program.

 

(b) Exercise
Price. For purposes of this Warrant, “Exercise Price” means [$] per share of Common Stock, subject
to adjustment as provided herein.

 

(c) Cashless
Exercise. Notwithstanding anything contained in this Warrant to the contrary, but only if a registration statement registering
the issuance of the Warrant Shares under the Securities Act is not effective or available for the issuance of the Warrant Shares,
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 shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

 

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

B  

 

For purposes of the foregoing formula:  

 

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

 

B= the Weighted Average Price of the shares of Common Stock (as reported by Bloomberg) on the date immediately preceding the date of the Exercise Notice.  

 

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

 

    	2

    	 

    

The
Company hereby agrees that the Warrant Shares issued in a Cashless Exercise shall be deemed to have been acquired by the Holder
pursuant to Rule 3(a)(9) and the Warrant Shares shall take on the registered characteristics of the Warrants being exercised.

 

(d) Limitations
on Exercises. (1) Notwithstanding anything contained in this Warrant to the contrary the Company shall not effect the
exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect
to such exercise, such Holder (together with such Holder’s affiliates and any other Persons acting as a group together (“Attribution
Parties”)) would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common
Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number
of shares of Common Stock beneficially owned by such Person and its affiliates and Attribution Parties shall include the number
of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being
made, but shall exclude shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion
of this Warrant beneficially owned by such Person and its affiliates and Attribution Parties and (ii) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its affiliates
and Attribution Parties (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject
to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence,
for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), it being acknowledged 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. For purposes of this Warrant, in determining the number of outstanding
shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s
most recent Form 10-K, Proxy Statement, Form 10-Q, Current Report on Form 8-K or other public filing made by the Company with the
Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any
other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason
at any time, upon the written or oral request of the Holder, where such request indicates that it is being made pursuant to this
Warrant, the Company shall within one (1) Trading Day 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 the Warrants, by the Holder and its affiliates and Attribution
Parties since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company,
the Holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided,
that (i) any such increase will not be effective until the 61st day after such notice is delivered to the Company and (ii) any
such increase or decrease will apply only to the Holder and not to any other holder of Warrants. 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(d) 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 supplement necessary or desirable to properly give effect to such limitation.

 

(e) 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 that the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise
Price.

 

    	3

    	 

    

2. ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

 

(a) Adjustment
upon Subdivision or Combination of Shares of Common Stock. If the Company at any time on or after the Issuance Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines
(by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller
number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the
number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(a) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

(b) Other
Events. If any event occurs of the type contemplated by the provisions of Section 2(a) but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features to the holders of the Company’s equity securities), then the Company’s Board of Directors will
make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided,
that no such adjustment pursuant to this Section 2(b) will increase the Exercise Price or decrease the number of Warrant Shares
as otherwise determined pursuant to this Section 2.

 

(c) Par
Value. Notwithstanding anything to the contrary in this Warrant, in no event shall the Exercise Price be reduced below the
par value of the Company’s Common Stock.

 

3. RIGHTS
UPON DISTRIBUTION OF ASSETS. 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:

 

(a)
any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders
of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Exercise Price by a fraction of which (i) the numerator shall be the
Weighted Average Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value
of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock,
and (ii) the denominator shall be the Weighted Average Price of the shares of Common Stock on the Trading Day immediately
preceding such record date; and

 

(b)
the number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable
immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock
entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding paragraph
(a); provided, that in the event that the Distribution is of shares of Common Stock or common stock of a company whose
common shares are traded on a national securities exchange or a national automated quotation system (“Other Shares of
Common Stock”), then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an
increase in the number of Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant
shall be exercisable for the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant
to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise
price equal to the product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution
pursuant to the terms of the immediately preceding paragraph (a) and the number of Warrant Shares calculated in accordance
with the first part of this paragraph (b).

 

    	4

    	 

    

4. PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a) Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time prior to the Expiration Date the Company
grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property
pro rata to all of 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 the exercise of this Warrant) 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, that to
the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Maximum
Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
of such 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
Maximum Percentage, at which time the Holder shall be granted such right to the same extent as if there had been no such limitation).

 

(b) Fundamental
Transactions. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.
Upon consummation of the Fundamental Transaction, 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 Fundamental Transaction, in lieu of the shares
of the Common Stock (or other securities, cash, assets or other property purchasable 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), if any, that the Holder would have been entitled to receive upon the happening of such
Fundamental Transaction had this Warrant been exercised immediately prior to such Fundamental Transaction, 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 any 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 ensure that the Holder will thereafter have the right to receive upon exercise of this Warrant within
90 days after the consummation of the Fundamental Transaction but, in any event, prior to the Expiration Date, in lieu of the shares
of the Common Stock (or other securities, cash, assets or other property) purchasable 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 such Fundamental
Transaction had the Warrant been exercised immediately prior to such Fundamental Transaction.

 

5. RESERVATION
OF WARRANT SHARES. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of shares of Common Stock which are then issuable and deliverable upon the exercise
of this entire Warrant, free from preemptive or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions in Section 2). Such reservation shall comply with the provisions of Section 1.
The Company covenants that all shares of Common Stock so issuable and deliverable shall, upon issuance and the payment of the applicable
Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. The
Company will take all such actions as may be reasonably necessary to assure that such shares of Common Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation
system upon which the Common Stock may be listed.

 

6. WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
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
such Person’s 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 such Person 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)
or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.

 

    	5

    	 

    

7. REGISTRATION
AND REISSUANCE OF WARRANTS.

 

(a) Registration
of Warrant. The Company or its Transfer Agent shall register this Warrant, upon the records to be maintained by the Company
or its Transfer Agent 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. The
Company or its Transfer Agent shall also register any transfer, exchange, reissuance or cancellation of any portion of this Warrant
in the Warrant Register. 

 

(b) Transfer
of Warrant. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, except
as may otherwise be required by applicable securities laws. Subject to applicable securities laws, if this Warrant is to be transferred,
the Holder shall surrender this Warrant to the Company or its Transfer Agent, as directed by the Company, together with all applicable
transfer taxes, whereupon the Company will, or will cause its Transfer Agent to, forthwith issue and deliver upon the order of
the Holder a new Warrant (in accordance with Section 7(e)), 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(e)) to the Holder representing the
right to purchase the number of Warrant Shares not being transferred. The acceptance of the new Warrant by the transferee thereof
shall be deemed the acceptance by such transferee of all of the rights and obligations in respect of the new Warrant that the Holder
has in respect of this Warrant.

 

(c) 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, and, in the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Company in customary form or the provision of reasonable security by the Holder to the Company and, in the case
of mutilation, upon surrender and cancellation of this Warrant, the Company or its Transfer Agent, as directed by the Company,
shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(e)) representing the right to purchase
the Warrant Shares then underlying this Warrant.

 

(d) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company or its Transfer Agent, as directed by the Company, together with all applicable transfer taxes, for a new Warrant or Warrants
(in accordance with Section 7(e)) 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, that the Company or its Transfer Agent,
as directed by the Company, shall not be required to issue Warrants for fractional shares of Common Stock hereunder.

 

(e) Issuance
of New Warrants. Whenever the Company or its Transfer Agent, as directed by the Company, is required to issue a new Warrant
pursuant to the terms of this Warrant, such new Warrant shall (i) be of like tenor with this Warrant, (ii) 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(b) 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) have an issuance date, as indicated on the
face of such new Warrant which is the same as the Issuance Date and (iv) have the same rights and conditions as this Warrant.

 

8. NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with the information set forth in the Warrant Register. The Company shall give written notice to the Holder (i) reasonably
promptly following any adjustment of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of
such adjustment and (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, (B) with respect to any grants, issuances
or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to
all of the record holders of any class of shares of Common Stock or (C) for determining rights to vote with respect to any
Fundamental Transaction, dissolution or liquidation; provided, that in each case, such information shall be made known
to the public prior to or in conjunction with such notice being provided to the Holder.

 

    	6

    	 

    

9. 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, 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, 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 (i) 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, (ii) shall use all
reasonable efforts to take all such actions as may be necessary or appropriate in order that the Company may validly and legally
issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant and (iii) shall, so long as any of
the Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the exercise of the Warrants, the number of shares of Common Stock as shall
from time to time be necessary to effect the exercise of the Warrants then outstanding (without regard to any limitations on exercise).

 

10. AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant 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. 

 

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

 

12. 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.

 

13. 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.

 

14. DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via email or facsimile within two (2) Trading
Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within five (5) Trading
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within one
(1) Trading Day submit via email or facsimile (a) the disputed determination of the Exercise Price to an independent, reputable
investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant
Shares to the Company’s independent, outside accountant. The Company shall cause the investment bank or the accountant, as
the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than
ten (10) Trading Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. The expenses of
the investment bank and accountant will be borne by the Company unless the investment bank or accountant determines that the determination
of the Exercise Price or the arithmetic calculation of the Warrant Shares by the Holder was incorrect, in which case the expenses
of the investment bank and accountant will be borne by the Holder.

 

15. REMEDIES,
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, 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 damages for any failure by the Company
to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder may 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 seek an injunction restraining any breach. Notwithstanding the foregoing or anything else herein to the contrary,
if the Company is for any reason unable to issue and deliver Warrant Shares upon exercise of this Warrant as required pursuant
to the terms hereof, the Company shall have no obligation to pay to the Holder any cash or other consideration or otherwise “net
cash settle” this Warrant.

 

    	7

    	 

    

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

 

(a)
“Bloomberg” means Bloomberg Financial Markets.

 

(b)
RESERVED.

 

(c)
“Common Stock” means (i) the Company’s shares of Common Stock, $0.0001 par value per share, and (ii) any
share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such
Common Stock.

 

(d)
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

 

(e)
“Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., the NYSE Amex LLC, The Nasdaq
Stock Market, or the OTCQB.

 

(f)
“Fundamental Transaction” means that (A) the Company shall, directly or indirectly, in one or more related
transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person,
or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the
Company to another Person, or (iii) allow another Person providing to make a purchase, tender or exchange offer that is accepted
by the holders of more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock 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 (iv) consummate a stock purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person 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 purchase agreement
or other business combination), or (v) reorganize, recapitalize or reclassify the Common Stock or (B) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall
become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of
the aggregate ordinary voting power represented by issued and outstanding Common Stock.

 

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

 

(h)
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

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

 

(j)
“Principal Market” means The Nasdaq Capital Market.

 

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

 

    	8

    	 

    

(l)
“Trading Day” means 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).

 

(m)
“Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00 p.m.,
New York City time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply,
the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such
security during the period beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00 p.m., New York City time, as reported
by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average
of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in
the “pink sheets” by OTC Markets Group Inc. If the Weighted Average Price cannot be calculated for such security on
such date on any of the foregoing bases, the Weighted Average Price 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 pursuant to Section 14 with the term “Weighted Average Price”
being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted for any share
dividend, share split or other similar transaction during such period.

 

[Signature
Page Follows]

 

    	9

    	 

    

 

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.

 

	 	ISIGN SOLUTIONS INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	10

    	 

    

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED
BY THE REGISTERED HOLDER TO EXERCISE THIS 

WARRANT TO PURCHASE
COMMON STOCK

 

ISIGN SOLUTIONS
INC.

 

The undersigned
holder hereby exercises the right to purchase [•] of the shares of Common Stock (“Warrant Shares”)
of iSign Solutions Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant to Purchase
Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective
meanings set forth in the Warrant.

 

1. Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as (check one):

 

o Cash
Exercise under Section 1(a).

 

o Cashless
Exercise under Section 1(c).

 

2. Cash
Exercise. If the Holder has elected a Cash Exercise, the Holder shall pay the sum of [$] to the Company in accordance
with the terms of the Warrant.

 

3. Delivery
of Warrant Shares. The Company shall deliver to the holder [•] Warrant Shares in accordance with the terms
of the Warrant.

 

4. Representations
and Warranties. By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving
effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock
(determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under
Section 1(d) of this Warrant to which this notice relates.

 

DATED:                                 

 

	(Signature must conform in all respects
	to name of the Holder as specified on
	the face of the Warrant)
	 	 
	 
	Registered Holder
	 	 
	Address:	 
	 

 

    	11

    	 

    

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice.

 

	 	ISIGN SOLUTIONS INC.
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

	American Stock Transfer & Trust Company, LLC ,	 
	as Warrant Agent	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	12

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