EXHIBIT 4.3



 


THIS
WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SUCH ACT AND ANY APPLICABLE STATE
SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO WINDSTREAM TECHNOLOGIES, INC. THAT SUCH REGISTRATION IS NOT
REQUIRED.


 


WINDSTREAM
TECHNOLOGIES, INC.


 


WARRANT
#1 TO PURCHASE SHARES OF COMMON STOCK


 


1.
Issuance. In consideration of good and valuable consideration as set forth in the Purchase Agreement (defined below), including
without limitation the Initial Cash Purchase Price (as defined in the Purchase Agreement), the receipt and sufficiency of which
are hereby acknowledged by WindStream Technologies, Inc., a Wyoming corporation
(“Company”); Typenex Co- Investment, LLC, a Utah limited liability
company, its successors and/or registered assigns (“Investor”), is hereby granted the right to purchase at
any time on or after the Issue Date (as defined below) until the date which is the last calendar day of the month in which the
fifth anniversary of the Issue Date occurs (the “Expiration Date”), a number of fully paid and non-assessable
shares (the “Warrant Shares”) of Company’s common stock, par value $0.001 per share (the “Common
Stock”), equal to $137,500.00 divided by the Market Price (as defined in the Note, as of the Issue Date), as such number
may be adjusted from time to time pursuant to the terms and conditions of this Warrant #1 to Purchase Shares of Common Stock (this
“Warrant”). This Warrant is being issued pursuant to the terms of that certain Securities Purchase Agreement
dated September 26, 2014, to which Company and Investor are parties (as the same may be amended from time to time, the “Purchase
Agreement”).


 


Unless
otherwise indicated herein, capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Purchase
Agreement.


 


This
Warrant was originally issued to Investor on September 26, 2014 (the “Issue Date”). For the avoidance of doubt,
the Initial Cash Purchase Price constitutes payment in full for this Warrant.


 


2.
Exercise of Warrant.


 


2.1.
General.


 


(a)
This Warrant is exercisable in whole or in part at any time and from time to time commencing on the Issue Date and ending on the
Expiration Date. Such exercise shall be effectuated by submitting to Company (either by delivery to Company or by email or facsimile
transmission) a completed and duly executed Notice of Exercise substantially in the form attached to this Warrant as Exhibit
A (the “Notice of Exercise”). The date such Notice of Exercise is either faxed, emailed or delivered to
Company shall be the “Exercise Date,” provided that, if such exercise represents the full exercise of the outstanding
balance of the Warrant, Investor shall tender this Warrant to Company within five (5) Trading Days thereafter, but only if the
Warrant Shares to be delivered pursuant to the Notice of Exercise have been delivered to Investor as of such date. The Notice
of Exercise shall be executed by Investor and shall indicate (i) the number of Delivery Shares (as defined below) to be issued
pursuant to such exercise, and (ii) if applicable (as provided below), whether the exercise is a cashless exercise.


 




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For
purposes of this Warrant, the term “Trading Day” means any day during which the principal market on which the
Common Stock is traded (the “Principal Market”) shall be open for business.


 


(b)
Notwithstanding any other provision contained herein or in any other Transaction Document to the contrary, at any time prior to
the Expiration Date, Investor may elect a “cashless” exercise of this Warrant for any Warrant Shares whereby Investor
shall be entitled to receive a number of shares of Common Stock equal to (i) the excess of the Current Market Value (as defined
below) over the aggregate Exercise Price of the Exercise Shares (as defined below), divided by (ii) the Adjusted Price of the
Common Stock (as defined below).


 


For
the purposes of this Warrant, the following terms shall have the following meanings:


 


“Adjusted
Price of the Common Stock” shall mean the lower of (i) the Conversion Price (as defined in the Note), as such Conversion
Price may be adjusted from time to time pursuant to the terms of the Note (solely for the purpose of determining the then-current
Conversion Price under this definition of “Adjusted Price of the Common Stock,” each cashless exercise of this Warrant
shall be deemed a conversion under the Note), and (ii) the Market Price (as defined in the Note), without regard to whether the
Note remains outstanding or has been fully repaid, cancelled or otherwise retired, on any relevant Exercise Date.


 


“Current
Market Value” shall mean an amount equal to the Market Price of the Common Stock (as defined below), multiplied by the
number of Exercise Shares specified in the applicable Notice of Exercise.


 


“Closing
Price” shall mean the 4:00 P.M. last sale price of the Common Stock on the Principal Market on the relevant Trading
Day(s), as reported by Bloomberg LP (or if that service is not then reporting the relevant information regarding the Common Stock,
a comparable reporting service of national reputation selected by Investor and reasonably acceptable to Company) (“Bloomberg”)
for the relevant date.


 


“Delivery
Shares” means those shares of Common Stock issuable and deliverable upon the exercise of this Warrant.


 


“Exercise
Price” shall mean $0.80 per share of Common Stock, as the same may be adjusted from time to time pursuant to the terms
and conditions of this Warrant.


 


“Exercise
Shares” shall mean those Warrant Shares subject to an exercise of the Warrant by Investor. By way of illustration only
and without limiting the foregoing, if (i) the Warrant is initially exercisable for 4,180,000 Warrant Shares and Investor has
not previously exercised the Warrant, and (ii) Investor were to make a cashless exercise with respect to 5,000 Warrant Shares
pursuant to which 6,000 Delivery Shares would be issuable to Investor, then (1) the Warrant shall be deemed to have been exercised
with respect to 5,000 Exercise Shares, (2) the Warrant would remain exercisable for 4,175,000 Warrant Shares, and (3) the Warrant
shall be deemed to have been exercised with respect to 6,000 Delivery Shares.


 




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“Market
Price of the Common Stock” shall mean the higher of: (i) the Closing Price of the Common Stock on the Issue Date; and
(ii) the VWAP (as defined below) of the Common Stock for the Trading Day that is two (2) Trading Days prior to the Exercise Date.


 


“Note”
shall mean that certain Secured Convertible Promissory Note issued by Company to Investor pursuant to the Purchase Agreement,
as the same may be amended from time to time, and including any promissory note(s) that replace or are exchanged for such referenced
promissory note.


 


“Transaction
Documents” or “Transaction Document” shall have the meaning set forth in the Purchase Agreement.


 


“VWAP”
shall mean the volume-weighted average price of the Common Stock on the Principal Market for a particular Trading Day or set
of Trading Days, as the case may be, as reported by Bloomberg.


 


(c)
If the Notice of Exercise form elects a “cash” exercise (or if the cashless exercise referred to in the immediately
preceding subsection (b) is not available in accordance with the terms hereof), the Exercise Price per share of Common Stock for
the Delivery Shares shall be payable, at the election of Investor, in cash or by certified or official bank check or by wire transfer
in accordance with instructions provided by Company at the request of Investor.


 


(d)
Upon the appropriate payment to Company, if any, of the Exercise Price for the Delivery Shares, Company shall promptly, but in
no case later than the date that is three (3) Trading Days following the date the Exercise Price is paid to Company (or with respect
to a “cashless exercise,” the date that is three (3) Trading Days following the Exercise Date) (the “Delivery
Date”), deliver or cause Company’s Transfer Agent to deliver the applicable Delivery Shares electronically via
the Deposit/Withdrawal at Custodian (“DWAC”) system to the account designated by Investor on the Notice of
Exercise. If for any reason Company is not able to so deliver the Delivery Shares via the DWAC system, notwithstanding its best
efforts to do so, such shall constitute a breach of this Warrant (and thus an Event of Default under the Note), and Company shall
instead, on or before the applicable date set forth above in this subsection, issue and deliver to Investor or its broker (as
designated in the Notice of Exercise), via reputable overnight courier, a certificate, registered in the name of Investor or its
designee, representing the applicable number of Delivery Shares. For the avoidance of doubt, Company has not met its obligation
to deliver Delivery Shares within the required timeframe set forth above unless Investor or its broker, as applicable, has actually
received the Delivery Shares (whether electronically or in certificated form) no later than the close of business on the latest
possible delivery date pursuant to the terms set forth above.


 




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(e)
If Delivery Shares are delivered later than as required under subsection (d) immediately above, Company agrees to pay, in addition
to all other remedies available to Investor in the Transaction Documents, a late charge equal to the greater of (i) $500.00 and
(ii) 2% of the product of (1) the sum of the number of shares of Common Stock not issued to Investor on a timely basis and to
which Investor is entitled multiplied by (2) the closing bid price of the Common Stock on the Trading Day immediately preceding
the last possible date which Company could have issued such shares of Common Stock to Investor without violating this Warrant,
per Trading Day until such Delivery Shares are delivered (the “Late Fees”). Company shall pay any Late Fees
incurred under this subsection in immediately available funds upon demand; provided, however, that, at the option of Investor
(without notice to Company), such amount owed may be added to the principal amount of the Note. Furthermore, in addition to any
other remedies which may be available to Investor, in the event that Company fails for any reason to effect delivery of the Delivery
Shares as required under subsection (d) immediately above, Investor may revoke all or part of the relevant Warrant exercise by
delivery of a notice to such effect to Company, whereupon Company and Investor shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant, except that the Late Fees described above shall be
payable through the date notice of revocation or rescission is given to Company. Finally, as liquidated damages in the event Company
fails to deliver any Delivery Shares to Investor for a period of ninety (90) days from the Delivery Date, Investor may elect,
in its sole discretion, to stop the accumulation of the Late Fees as of such date and require Company to pay to Investor a cash
amount equal to (i) the total amount of all Late Fees that have accumulated prior to the date of Investor’s election, plus
(ii) the product of the number of Delivery Shares deliverable to Investor on such date if it were to exercise this Warrant with
respect to the remaining number of Exercise Shares as of such date multiplied by the closing price of the Common Stock on the
Delivery Date (the “Cash Settlement Amount”). At such time that Investor makes an election to require Company
to pay to it the Cash Settlement Amount, such obligation of Company shall be a valid and binding obligation of Company and shall
for all purposes be deemed to be a debt obligation of Company owed to Investor as of the date it makes such election. Upon Company’s
payment of the Cash Settlement Amount to Investor, the Warrant shall be deemed to have been satisfied and Investor shall return
the original Warrant to Company for cancellation. In addition, and for the avoidance of doubt, even if Company could not deliver
the number of Delivery Shares deliverable to Investor if it were to exercise this Warrant with respect to the remaining number
of Exercise Shares on the date of repayment due to the provisions of Section 2.2, the provisions of Section 2.2 will not apply
with respect to Company’s payment of the Cash Settlement Amount.


 


(f)
Investor shall be deemed to be the holder of the Delivery Shares issuable to it in accordance with the provisions of this Section
2.1 on the Exercise Date.


 


2.2.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Warrant or the other Transaction Documents,
if at any time Investor shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance
would cause Investor (together with its affiliates) to own a number of shares exceeding 4.99% of the number of shares of Common
Stock outstanding on such date (the “Maximum Percentage”), Company must not issue to Investor shares of the
Common Stock which would exceed the Maximum Percentage. The shares of Common Stock issuable to Investor that would cause the Maximum
Percentage to be exceeded are referred to herein as the “Ownership Limitation Shares”. Company will reserve
the Ownership Limitation Shares for the exclusive benefit of Investor. From time to time, Investor may notify Company in writing
of the number of the Ownership Limitation Shares that may be issued to Investor without causing Investor to exceed the Maximum
Percentage. Upon receipt of such notice, Company shall be unconditionally obligated to immediately issue such designated shares
to Investor, with a corresponding reduction in the number of the Ownership Limitation Shares. Notwithstanding the forgoing, the
term “4.99%” above shall be replaced with “9.99%” at such time as the Market Capitalization of the Common
Stock is less than $10,000,000.00. Notwithstanding any other provision contained herein, if the term “4.99%” is replaced
with “9.99%” pursuant to the preceding sentence, such change to “9.99%” shall be permanent. For purposes
of this Warrant, the term “Market Capitalization of the Common Stock” shall mean the product equal to (A) the
average VWAP of the Common Stock for the immediately preceding fifteen (15) Trading Days, multiplied by (B) the aggregate number
of outstanding shares of Common Stock as reported on Company’s most recently filed Form 10-Q or Form 10-K. By written notice
to Company, Investor may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be effective
until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and non-waivable
and shall apply to all affiliates and assigns of Investor.


 




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3.
Mutilation or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this Warrant, Company will execute and deliver to Investor
a new Warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.


 


4.
Rights of Investor. Investor shall not, by virtue of this Warrant alone, be entitled to any rights of a stockholder in
Company, either at law or in equity, and the rights of Investor with respect to or arising under this Warrant are limited to those
expressed in this Warrant and are not enforceable against Company except to the extent set forth herein.


 


5.
Protection Against Dilution and Other Adjustments.


 


5.1.
Capital Adjustments. If Company shall at any time prior to the expiration of this Warrant subdivide the Common Stock, by
split-up or stock split, or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock as a dividend,
the number of Warrant Shares issuable upon the exercise of this Warrant shall forthwith be automatically increased proportionately
in the case of a subdivision, split or stock dividend, or proportionately decreased in the case of a combination. Appropriate
adjustments shall also be made to the Exercise Price, Conversion Price (in the event of a cashless exercise), and other applicable
amounts, but the aggregate purchase price payable for the total number of Warrant Shares purchasable under this Warrant (as adjusted)
shall remain the same. Any adjustment under this Section 5.1 shall become effective automatically at the close of business on
the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no
record date is fixed, upon the making of such dividend.


 


5.2.
Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization, or change
in the capital stock of Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section
5.1 above), then Company shall make appropriate provision so that Investor shall have the right at any time prior to the expiration
of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of
shares of stock and other securities and property receivable in connection with such reclassification, reorganization, or change
by a holder of the same number of shares of Common Stock as were purchasable by Investor immediately prior to such reclassification,
reorganization, or change. In any such case appropriate provisions shall be made with respect to the rights and interest of Investor
so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property
deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per Warrant Share payable hereunder,
provided the aggregate purchase price shall remain the same.


 




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5.3.
Subsequent Equity Sales. If Company or any subsidiary thereof, as applicable, at any time and from time to time while this
Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose
of, sell or issue (or announce any offer, sale, grant or any option to purchase or other disposition of) any Common Stock (including
any Common Stock issued under the Note, whether upon any type of conversion or any Deemed Issuance (as defined in the Note)),
preferred shares convertible into Common Stock, or debt, warrants, options or other instruments or securities which are convertible
into or exercisable for shares of Common Stock (together herein referred to as “Equity Securities”), at an
effective price per share less than the Exercise Price (such lower price, the “Base Share Price” and such issuance
collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Equity Securities so issued shall
at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices
or otherwise, or due to warrants, options, or rights per share which are issued in connection with such issuance, be entitled
to receive shares of Common Stock at an effective price per share that is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance), then (a) the Exercise Price shall
be reduced and only reduced to equal the Base Share Price, and (b) the number of Warrant Shares issuable upon the exercise of
this Warrant shall be increased to an amount equal to the number of Warrant Shares Investor could purchase hereunder for an aggregate
Exercise Price, as reduced pursuant to subsection (a) above, equal to the aggregate Exercise Price payable immediately prior to
such reduction in Exercise Price, provided that the increase in the number of Exercise Shares issuable under to this Warrant made
pursuant to this Section 5.3 shall not at any time exceed a number equal to three (3) times the number of Exercise Shares issuable
under this Warrant as of the Issue Date (for the avoidance of doubt, the foregoing cap on the number of Exercise Shares issuable
hereunder shall only apply to adjustments made pursuant to this Section 5.3 and shall not apply to adjustments made pursuant to
Sections 5.1, 5.2 or any other section of this Warrant). Such adjustments shall be made whenever such Common Stock or Equity Securities
are issued. Company shall notify Investor, in writing, no later than the Trading Day following the issuance of any Common Stock
or Equity Securities subject to this Section 5.3, indicating therein the applicable issuance price, or applicable reset price,
exchange price, conversion price, or other pricing terms (such notice, the “Dilutive Issuance Notice”). For
purposes of clarification, whether or not Company provides a Dilutive Issuance Notice pursuant to this Section 5.3, upon the occurrence
of any Dilutive Issuance, after the date of such Dilutive Issuance, Investor is entitled to receive the increased number of Warrant
Shares provided for in subsection (b) above at an Exercise Price equal to the Base Share Price regardless of whether Investor
accurately refers to the Base Share Price in the Notice of Exercise. Additionally, following the occurrence of a Dilutive Issuance,
all references in this Warrant to “Warrant Shares” shall be a reference to the Warrant Shares as increased pursuant
to subsection (b) above, and all references in this Warrant to “Exercise Price” shall be a reference to the Exercise
Price as reduced pursuant to subsection (a) above, as the same may occur from time to time hereunder.


 


5.4.
Notice of Adjustment. Without limiting any other provision contained herein, when any adjustment is required to be made
in the number or kind of shares purchasable upon exercise of this Warrant, or in the Exercise Price, pursuant to the terms hereof,
Company shall promptly notify Investor of such event and of the number of Warrant Shares or other securities or property thereafter
purchasable upon exercise of this Warrant.


 


5.5.
Exceptions to Adjustment. Notwithstanding the provisions of Sections 5.3 and 5.4, no adjustment to the Exercise Price shall
be effected as a result of an Excepted Issuance. “Excepted Issuances” shall mean, collectively, (a) Company’s
issuance of securities in connection with strategic license agreements and other partnering arrangements so long as any such issuances
are not for the purpose of raising capital and in which holders of such securities or debt are not at any time granted registration
rights, and (b) Company’s issuance of Common Stock or the issuance or grant of options to purchase Common Stock to employees,
directors, officers and consultants, authorized by Company’s board of directors pursuant to plans or agreements which are
authorized, constituted or in effect as of the Issue Date.


 


6.
Certificate as to Adjustments. In each case of any adjustment or readjustment in the shares of Common Stock issuable on
the exercise of this Warrant, Company at its expense will promptly cause its Chief Financial Officer or other appropriate designee
to compute such adjustment or readjustment in accordance with the terms of this Warrant and prepare a certificate setting forth
such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including
a statement of (a) the consideration received or receivable by Company for any additional shares of Common Stock issued or sold
or deemed to have been issued or sold, (b) the number of shares of Common Stock outstanding or deemed to be outstanding, and (c)
the Exercise Price and the number of shares of Common Stock to be received upon exercise of this Warrant, in effect immediately
prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant. Company will forthwith mail
a copy of each such certificate to Investor and any Warrant Agent (as defined below) appointed pursuant to Section 8 hereof. Nothing
in this Section 6 shall be deemed to limit any other provision contained herein.


 




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7.
Transfer to Comply with the Securities Act. This Warrant, and the Warrant Shares, have not been registered under the 1933
Act. None of the Warrant Shares may be sold, transferred, pledged or hypothecated without (a) an effective registration statement
under the 1933 Act relating to such security or (b) an opinion of counsel reasonably satisfactory to Company that registration
is not required under the 1933 Act; provided, however, that the foregoing restrictions on transfer shall not apply to the
transfer of any security to an affiliate of Investor. Until such time as registration has occurred under the 1933 Act, each certificate
for this Warrant and any Warrant Shares shall contain a legend, in form and substance satisfactory to counsel for Company, setting
forth the restrictions on transfer contained in this Section 7. Any such transfer shall be accompanied by a transferor assignment
substantially in the form attached to this Warrant as Exhibit B (the “Transferor Assignment”), executed
by the transferor and the transferee and submitted to Company. Upon receipt of the duly executed Transferor Assignment, Company
shall register the transferee thereon as the new holder on the books and records of Company and such transferee shall be deemed
a “registered holder” or “registered assign” for all purposes hereunder, and shall have all the rights
of Investor.


 


8.
Warrant Agent. Company may, by written notice to Investor, appoint an agent (a “Warrant Agent”) for
the purpose of issuing shares of Common Stock on the exercise of this Warrant pursuant hereto, exchanging this Warrant pursuant
hereto, and replacing this Warrant pursuant hereto, or any of the foregoing, and thereafter any such issuance, exchange or replacement,
as the case may be, shall be made at such office by such Warrant Agent.


 


9.
Transfer on Company’s Books. Until this Warrant is transferred on the books of Company, Company may treat Investor
as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.


 


10.
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by reference.


 


11.
Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in writing
signed by the parties hereto. This Warrant, together with the Purchase Agreement and all the other Transaction Documents, taken
together, contain the full understanding of the parties hereto with respect to the subject matter hereof and thereof and there
are no representations, warranties, agreements or understandings with respect to the subject matter hereof and thereof other than
as expressly contained herein and therein.


 


12.
Governing Law. This Warrant shall be governed by and interpreted in accordance with the laws of the State of Utah, without
giving effect to the principles thereof regarding the conflict of laws.


 


13.
Waiver of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY
HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS
OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON
LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING
ITS RIGHT TO DEMAND TRIAL BY JURY.


 




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14.
Purchase Agreement; Arbitration of Disputes; Calculation Disputes. This Warrant is subject to the terms, conditions and
general provisions of the Purchase Agreement and the other Transaction Documents, including without limitation the Arbitration
Provisions set forth as an Exhibit to the Purchase Agreement. In addition, notwithstanding the Arbitration Provisions, in the
case of a dispute as to any Calculations, such dispute will be resolved in the manner set forth in the Purchase Agreement.


 


15.
Remedies. The remedies at law of Investor under this Warrant in the event of any default or threatened default by Company
in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and, without limiting
any other remedies available to Investor in the Transaction Documents, at law or equity, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise.


 


16.
Counterparts. This Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. Signatures delivered
via facsimile or email shall be considered original signatures for all purposes hereof.


 


17.
Attorneys’ Fees. In the event of any arbitration, litigation or dispute arising from this Warrant, the parties agree
that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled
to an additional award of the full amount of the attorneys’ fees and expenses paid by said prevailing party in connection
with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving rise to
the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and
expenses for frivolous or bad faith pleading.


 


18.
Severability. Whenever possible, each provision of this Warrant shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be invalid or unenforceable in any jurisdiction, such
provision shall be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Warrant or the validity or enforceability of this Warrant
in any other jurisdiction.


 


19.
Time of the Essence. Time is expressly made of the essence with respect to each and every provision of this Warrant.


 


20.
Descriptive Headings. Descriptive headings of the sections of this Warrant are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof.


 


[Remainder
of page intentionally left blank; signature page follows]


 




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IN
WITNESS WHEREOF, Company has caused this Warrant to be duly executed by an officer thereunto duly authorized as of the Issue Date.


 


	 	COMPANY:
	 	 	 
	 	WindStream
    Technologies, Inc.
	 	 	 
	 	By:	/s/
    Dan Bates
	 	Name:	Dan
    Bates
	 	Title:	President



 


[Signature
Page to Warrant #1]


 



    	 



    	 



    


 


EXHIBIT
A


 


NOTICE
OF EXERCISE OF WARRANT


 


	TO:	WINDSTREAM
                                         TECHNOLOGIES, INC.

        ATTN:
        _______________

        VIA
        FAX TO: (  ) _______________



 


The
undersigned hereby irrevocably elects to exercise the right, represented by the Warrant #1 to Purchase Shares of Common Stock
dated as of September 26, 2014 (the “Warrant”), to purchase shares of the common stock, $0.001 par value
(“Common Stock”), of WINDSTREAM TECHNOLOGIES, INC., and tenders herewith payment in accordance with Section 2
of the Warrant, as follows:


 


	______ 	CASH:
    $____________________________ = (Exercise Price x Delivery Shares)
	 	 
	______ 	Payment
    is being made by:





	 	______ 	enclosed
    check
	 	______	wire
    transfer
	 	______	other
	 	 	 
	______	CASHLESS
    EXERCISE:



 

	 	Net
    number of Delivery Shares to be issued to Investor: ______*



 


	 	*
    based on:	Current
                                         Market Value - (Exercise Price x Exercise Shares)

                          Adjusted
        Price of the Common Stock



 

	Where:	=	$_____________
	Market
    Price of the Common Stock [“MP”]	=	______________
	Exercise
    Shares	=	$_____________
	Current
    Market Value [MP x Exercise Shares]	=	$_____________
	Exercise
    Price	=	$_____________
	Adjusted
    Price of the Common Stock	=	$_____________


 


Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to them in the Warrant.


 


It
is the intention of Investor to comply with the provisions of Section 2.2 of the Warrant regarding certain limits on Investor’s
right to receive shares thereunder. Investor believes this exercise complies with the provisions of such Section 2.2. Nonetheless,
to the extent that, pursuant to the exercise effected hereby, Investor would receive more shares of Common Stock than permitted
under Section 2.2, Company shall not be obligated and shall not issue to Investor such excess shares until such time, if ever,
that Investor could receive such excess shares without violating, and in full compliance with, Section 2.2 of the Warrant.


 


As
contemplated by the Warrant, this Notice of Exercise is being sent by facsimile to the fax number and officer indicated above.


 


If
this Notice of Exercise represents the full exercise of the outstanding balance of the Warrant, Investor will surrender (or cause
to be surrendered) the Warrant to Company at the address indicated above by express courier within five (5) Trading Days after
the Warrant Shares to be delivered pursuant to this Notice of Exercise have been delivered to Investor.


 


Exhibit
A to Warrant #1 Page 1


 




    	 



    	 



    


 


To
the extent the Delivery Shares are not able to be delivered to Investor via the DWAC system, please deliver certificates representing
the Delivery Shares to Investor via reputable overnight courier after receipt of this Notice of Exercise (by facsimile transmission
or otherwise) to:


_______________________________________


_______________________________________


_______________________________________


 


	Dated:
    _________________________	 
	 	 
	______________________________	 
	[Name
    of Investor]	 
	 	 
	By:
    ___________________________	 



 


Exhibit
A to Warrant #1 Page 2


 



    	 



    	 



    


 


EXHIBIT
B


 


FORM
OF TRANSFEROR ENDORSEMENT


(To
be signed only on transfer of the Warrant)


 


For
value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees”
the right represented by the Warrant #1 to Purchase Shares of Common Stock dated as of September 26, 2014 (the “Warrant”)
to purchase the percentage and number of shares of common stock, $0.001 par value (“Common Stock”), of
WINDSTREAM TECHNOLOGIES, INC. specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s), and appoints each such person attorney-in-fact to transfer the undersigned’s
respective right on the books of WINDSTREAM TECHNOLOGIES, INC. with full power of substitution.


 





	Transferees	 	Percentage
    Transferred	 	Number
    Transferred


 


 


 


 


 


	Dated:                   
     ,          	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	[Transferor
    Name must conform to the name of Holder
    as specified on the face of the Warrant]
	 	 	 	 	
	 	 	 	By:	
	 	 	 	Name:	
	 	 	 	 	 
	Signed in the presence of:	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	(Name)	 	 	 	 
	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	[TRANSFEREE]	 	 	 
	 	 	 	 	 
	By:	 		 	 
	Name:	 		 	 


 


Exhibit
B to Warrant #1 Page 1