EXHIBIT 10.7


 


THE SECURITIES EVIDENCED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD, TRANSFERRED, OR ASSIGNED, UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING SUCH SECURITIES, OR THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER
THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION UNDER THE SECURITIES ACT.


 


	Warrant Stock: ___________	Date: ____________ (the “Date”)


 


WARRANT


TO PURCHASE CLASS B COMMON STOCK


OF


RMR INDUSTRIALS, INC. 


 


THIS WARRANT is being
issued in connection with a private placement offering of up to _________ shares of RMR Industrials, Inc., a Nevada corporation
(the “Company”) Class B Common Stock, par value $0.001 per share and the corresponding subscription agreement
between the Company and _______ (the “Holder”).


 


1.    Issuance
of Warrant. FOR VALUE RECEIVED, on and after the date of issuance of this Warrant, and subject to the terms and conditions
herein set forth, the Holder is entitled to purchase from RMR Industrials, Inc., a Nevada corporation (the “Company”),
at any time during the Exercise Period (as defined below), at a price per share equal to the Warrant Price (as defined below and
subject to adjustment as described below), the Warrant Stock (as defined below and subject to adjustment as described below) upon
exercise of this warrant (this “Warrant”) pursuant to Section 6 hereof. This Warrant is being issued pursuant
to the terms of the Subscription Agreement, dated as of even date herewith by and between the Company and the Holder (the “Agreement”).
Capitalized terms not otherwise defined herein shall have the meanings given to them in the Agreement.


 


2.    Definitions.
As used in this Warrant, the following terms have the definitions ascribed to them below:


 


(a)    “Common
Stock” means the Class B Common Stock, $0.001 par value, of the Company.


 


(b)    “Exercise
Period” means the period commencing on the Date and ending at 5:00 p.m. Pacific Standard Time on the Termination Date
(as defined below); provided, however, the Exercise Period shall end and this Warrant shall no longer be exercisable
and shall become null and void (except the right to receive the securities and property to which the Holder is entitled by virtue
of exercising or converting this Warrant in connection with any Termination Event) upon consummation of any of the following (each,
a “Termination Event”): (i) the lease of all or substantially all of the assets of the Company or the exclusive
license of all or substantially all of the Company’s intellectual property to a third party, (ii) the acquisition of the
Company by another entity by means of any transaction or series of related transactions (including without limitation, any reorganization,
merger or consolidation, but excluding any merger or conversion effected exclusively for the purpose of changing the domicile of
the Company), (iii) the sale, conveyance or disposal of all or substantially all of the assets of the Company, unless the Company’s
shareholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or
sale (by virtue of securities issued as consideration for the Company’s acquisition or sale or otherwise) hold at least fifty
percent (50%) of the voting power of the surviving or acquiring entity, or (iv) upon redemption by the Company under Section 7
of this Warrant. Notwithstanding anything to the contrary herein, this Warrant shall continue in full force and effect until the
Termination Date unless (y) no less than thirty (30) days prior to any Termination Event, the Company shall have given the Holder
notice of such Termination Event, which notice shall include a reasonably detailed description of the terms of such Termination
Event, and (z) the Company shall have given the Holder a reasonable opportunity to exercise or convert this Warrant.


 




     


     


    

 


(c)    “Termination
Date” means the earlier of a) one (1) year from the Date, or b) the Company shares are uplisted and traded on either
The New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Capital Market, the NASDAQ Global Select Market or the NYSE MKT.


 


(d)     “Warrant
Price” means a price per Warrant Stock equal to $15.00, subject to adjustment hereunder.


 


(e)     “Warrant
Stock” means the shares of Common Stock purchasable upon exercise of this Warrant.


 


3.    Adjustments
and Notices. The Warrant Price and the number of shares of Warrant Stock shall be subject to adjustment from time to time in
accordance with this Section 3.


 


(a)     Adjustments
to Warrant Stock. When any adjustment is required to be made to the Warrant Price, the number of shares of Warrant Stock purchasable
upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number
of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Warrant Price in effect
immediately prior to such adjustment, by (ii) the Warrant Price in effect immediately after such adjustment.


 


(b)     Reclassification,
Exchange, Substitution, In-Kind Distribution. Upon any reclassifications, exchange, substitution or other event that results
in a change of the number and/or class of the securities issuable upon exercise of this Warrant or upon the payment of a dividend
in securities or property other than shares of Common Stock, the Holder shall be entitled to receive, upon exercise of this Warrant,
the number and kind of securities and property that Holder would have received if this Warrant had been exercised or converted
immediately before the record date for such reclassification, exchange, substitution, or other event or immediately prior to the
record date for such dividend. The Company or its successor shall promptly issue to Holder a new warrant for such new securities
or other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant. The provisions of this Section 3(b) shall similarly apply to successive reclassifications,
exchanges, substitutions, or other events and successive dividends.


 


(c)     Certificate
of Adjustment. In each case of an adjustment or readjustment of the Warrant Price, the Company, at its own expense, shall compute
such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate executed by the Company’s
Chief Financial Officer showing such adjustment or readjustment, and shall mail such certificate, by first class mail, postage
prepaid, to the Holder.


 


(d)     No
Impairment. The Company shall not, by amendment of its Articles of Incorporation or through a reorganization, transfer of assets,
consolidation, 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 to be observed or performed under this Warrant by the Company, but shall at all times in good faith
assist in carrying out all of the provisions of this Section 3 and in taking all such action as may be necessary or appropriate
to protect the Holder’s rights under this Section 3 against impairment.


 


(e)     Fractional
Shares. No fractional shares shall be issuable upon exercise or conversion of the Warrant and the number of shares to be issued
shall be rounded to the nearest whole share. If a fractional share interest arises upon any exercise or conversion of the Warrant,
the Company shall eliminate such fractional share interest by paying the Holder an amount computed by multiplying the fractional
interest by the fair market value of a full share.


 


4.    Reservation
of Stock. On and after the Date, the Company shall reserve from its authorized and unissued Common Stock a sufficient number
of shares to provide for the issuance of Warrant Stock upon the exercise or conversion of this Warrant. Issuance of this Warrant
shall constitute full authority to the Company’s officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for shares of Warrant Stock issuable upon the exercise or conversion of this Warrant.


 




     


     


    

 


5.    Exercise
of Warrant.


 


(a)     This
Warrant may be exercised as a whole or part by the Holder, at any time after the date hereof prior to the termination of this Warrant,
by the surrender of this Warrant, together with the Notice of Exercise and Investment Representation Statement in the forms attached
hereto as Attachments 1 and 2, respectively, duly completed and delivered to the principal office of the Company, specifying
the portion of the Warrant to be exercised and accompanied by payment in full of the Warrant Price in cash or by check with respect
to the shares of Warrant Stock being purchased. This Warrant shall be deemed to have been exercised immediately prior to the close
of business on the date of its surrender for exercise as provided above, and the person entitled to receive the shares of Warrant
Stock issuable upon such exercise shall be treated for all purposes as the holder of such shares of record as of the close of business
on such date. As promptly as practicable after such date, the Company shall issue and deliver to the person or persons entitled
to receive the same a certificate or certificates for the number of full shares of Warrant Stock issuable upon such exercise. If
this Warrant shall be exercised for less than the total number of shares of Warrant Stock then issuable upon exercise, promptly
after surrender of this Warrant upon such exercise, the Company will execute and deliver a new warrant, dated the date hereof,
evidencing the right of the Holder to the balance of this Warrant Stock purchasable hereunder upon the same terms and conditions
set forth herein.


 


(b)     Notwithstanding
anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder hereof to the extent (but
only to the extent) necessary to ensure that, following such exercise, the total number of shares of Common Stock then beneficially
owned by Holder and its affiliates and any other persons whose beneficial ownership of Common Stock would be aggregated with the
Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.999% of the total number of issued and outstanding
shares of Company Common Stock. For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations thereunder. Notwithstanding the foregoing, Holder may waive such limitation on exercise
contained in this Section 5(b) or increase or decrease such limitation percentage to any other percentage as specified in a written
notice to the Company no less than sixty (60) days from the effective date of such increase or decrease.


 


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


 


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


 


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


 


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


 


Notwithstanding anything herein
to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this
Section 5(c).


 


6.    Transfer
of Warrant. Notwithstanding anything to the contrary herein, subject to applicable securities laws, this Warrant may be transferred
or assigned in whole or in part by the Holder, and the Company shall permit such transfer or assignment to an affiliate of the
Holder.


 




     


     


    

 


7.    Redemption


 


(a)     Warrants
may be redeemed, at the option of the Company, at any time after they become exercisable and prior to the Termination Date, upon
the notice referred to in Section 7(b) at the price of $0.01 per Warrant (the “Redemption Price”), provided,
however, that (a) (i) the last reported sales price of the Common Stock has been equal to or greater than $20.00 for each trading
day in the 7-trading-day period ending on the third business day prior to the notice of redemption to the Holder, or (ii) the Common
Stock is quoted on or listed for trading on either The New York Stock Exchange, The Nasdaq
Global Market, The NASDAQ Capital Market, The Nasdaq Global Select Market or the
NYSE MKT.


 


(b)     In
the event the Company shall elect to redeem the Warrant, the Company shall fix a date for the redemption. Notice of redemption
shall be mailed by first class mail, postage prepaid, by the Company not less than thirty (30) days prior to the date fixed for
redemption to the Holder at their last addresses as they shall appear on the registration books. Any notice mailed in the manner
herein provided shall be conclusively presumed to have been duly given on the date sent whether or not the Holder received such
notice.


 


(c)     The
Warrant may be exercised for cash in accordance with Section 5 of this Warrant at any time after notice of redemption shall have
been given by the Company and prior to the time and date fixed for redemption. On and after the redemption date, the record holder
of the Warrant shall have no further rights except to receive the Redemption Price upon surrender of the Warrant.


 


(d)     The Company
understands that the redemption rights provided for by this Section 7 apply only to outstanding Warrants. To the extent a person
holds rights to purchase Warrant, such purchase rights shall not be extinguished by redemption. However, once such purchase rights
are exercised, the Company may redeem the Warrant issued upon such exercise provided that the criteria for redemption is met, including
the opportunity of the holders to exercise prior to redemption pursuant to Section 7.


 


8.    Termination.
This Warrant shall terminate at 5:00 p.m. Pacific Standard Time on the Termination Date, subject to earlier termination as set
forth in Section 2(c) hereof.


 


9.    Miscellaneous.
This Warrant shall be governed by the laws of the State of Nevada, as such laws are applied to contracts to be entered into and
performed entirely in Nevada. In the event of any dispute among the Holder and the Company arising out of the terms of this Warrant,
the parties hereby consent to the exclusive jurisdiction of the federal and state courts located in the State of Nevada for resolution
of such dispute, and agree not to contest such exclusive jurisdiction or seek to transfer any action relating to such dispute
to any other jurisdiction. The headings in this Warrant are for purposes of convenience and reference only, and shall not be deemed
to constitute a part hereof. Neither this Warrant nor any term hereof may be changed or waived orally, but only by an instrument
in writing signed by the Company and the Holder of this Warrant.


 


	 	RMR Industrials, Inc.	 
	 	 	 	 
	 	By	 	 
	 	 	Name: Gregory M. Dangler	 
	 	 	Title: President