Document:

Exhibit 10.3

 

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

 

ORDINARY SHARE PURCHASE WARRANT

 

P.V. NANO CELL LTD.

 

	Warrant
    Shares: 333,333	Issuance
    Date: August 16, 2017

 

Warrant No: 001

 

THIS COMMON STOCK PURCHASE WARRANT
(the “Warrant”) certifies that, for value received, Alpha Capital Anstalt, with an address at: Lettstrasse 32,
9490 Vaduz, Liechtenstein, or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations
on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”)
and on or prior to the close of business on the five (5) year anniversary of the Initial Exercise Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from P.V. NANO CELL LTD., a company formed under the laws of
the State of Israel (the “Company”), up to 333,333 shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Ordinary Shares. The purchase price of one Ordinary Share under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

Section 1.       Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated August 16, 2017, among the Company and the purchasers signatory
thereto and the Note issued to the Holder contemporaneously with this Warrant.

 

Section 2.       Exercise.

 

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

 

     

     

    

 

(b)       Exercise
Price. The exercise price per share of the Ordinary Shares under this Warrant shall be US$1.20, subject to adjustment
as described herein (“Exercise Price”).

 

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

 

	 	(A)	=	the
VWAP (as defined in the Note) on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant
by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;
	 	 	 	 
	 	(B) 	=	the Exercise
    Price of this Warrant, as adjusted hereunder; and
	 	 	 	 
	 	(X)	=	the number
    of Warrant Shares that would be issuable upon exercise of this Warrant 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, unless the Holder notifies the Company otherwise, if there is no effective Registration
Statement registering the Warrant Shares, or no current prospectus available for the resale of the Warrant Shares by the Holder,
then this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

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(d)       Mechanics
of Exercise.

 

(i)       Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent to the
Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal
at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder
or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the
delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate
Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named
therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to
be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid.
The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in
economic loss to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and
not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $10
per Trading Day (increasing to $20 per Trading Day after the fifth (5th) Trading Day) after the Warrant Share Delivery
Date for each $1,000 of Exercise Price of Warrant Shares for which this Warrant is exercised which are not timely delivered. The
Company shall pay any payments incurred under this Section in immediately available funds upon demand

 

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

 

(iii)       In
addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect
delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise
by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective
positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described
above shall be payable through the date notice of revocation or rescission is given to the Company.

 

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

  

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

 

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

 

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

 

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

 

Section 3.        Certain
Adjustments.

 

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

 

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

 

(c)       Pro
Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Ordinary
Shares (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security other than the Ordinary Shares (which shall be subject to Section 3(b)),
then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator
shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record
date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of the Ordinary Shares as determined by the Board of Directors in good faith. In
either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness
so distributed or such subscription rights applicable to one Ordinary Share. Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned above.

 

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(d)       Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Ordinary
Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares are effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other
Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or
share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of Ordinary Shares (or successor security)
of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of Ordinary Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any
limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of
the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one Ordinary Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the
Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with,
or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the
Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on
the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement
of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and
the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement
of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the
price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date. The Company shall cause any successor entity in a Fundamental Transaction in which the Company
is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under
this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to
written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, if the Successor Entity is a public company or if the shareholders of the
Company have the option to or will become equity holders of the Successor Entity, at the option of the Holder, deliver to the Holder
in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form
and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity
(or its parent entity) equivalent to the Ordinary Shares acquirable and receivable upon exercise of this Warrant (without regard
to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies
the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein. The proposed transaction with Digiflex as described in the SEC Reports as updated by the
Disclosure Schedules to the Agreement is not a Fundamental Transaction.

 

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(e)       Adjustment
Upon Issuance of Ordinary Shares. If and whenever on or after the date hereof, the Company issues or sells, or in accordance
with this Section 3 is deemed to have issued or sold, any Ordinary Shares (including the issuance or sale of Ordinary
Shares owned or held by or for the account of the Company, but excluding any Exempt Issuance issued or sold or deemed to have been
issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to the Exercise
Price in effect immediately prior to such issue or sale or deemed issuance or sale (such Exercise Price then in effect is referred
to as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then immediately after
such Dilutive Issuance, the Exercise Price then in effect shall be reduced to the New Issuance Price. For all purposes of the foregoing
(including, without limitation, determining the adjusted Exercise Price and consideration per share under this Section 3(e)),
the following shall be applicable:

 

(i)       Issuance
of Options. If the Company in any manner grants or sells any options (other than options that qualify as Exempt Issuances)
and the lowest price per share for which one Ordinary Share is issuable upon the exercise of any such option or upon conversion,
exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option is less than the Applicable Price,
then such Ordinary Shares shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the
granting or sale of such option for such price per share. For purposes of this Section 3(e)(i), the “lowest price per
share for which one Ordinary Share is issuable upon the exercise of any such options or upon conversion, exercise or exchange of
any Ordinary Shares Equivalents issuable upon exercise of any such option” shall be equal to (1) the lower of (x) the sum
of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one Ordinary Share upon
the granting or sale of such option, upon exercise of such option and upon conversion, exercise or exchange of any Ordinary Shares
Equivalent issuable upon exercise of such option and (y) the lowest exercise price set forth in such option for which one Ordinary
Share is issuable upon the exercise of any such options or upon conversion, exercise or exchange of any Ordinary Shares Equivalents
issuable upon exercise of any such option minus (2) the sum of all amounts paid or payable to the holder of such option (or any
other Person) upon the granting or sale of such option, upon exercise of such Option and upon conversion, exercise or exchange
of any Ordinary Shares Equivalent issuable upon exercise of such option plus the value of any other consideration received or receivable
by, or benefit conferred on, the holder of such option (or any other Person). Except as contemplated below, no further adjustment
of the Exercise Price shall be made upon the actual issuance of such Ordinary Shares or of such Ordinary Shares Equivalents upon
the exercise of such options or upon the actual issuance of such Ordinary Shares upon conversion, exercise or exchange of such
Ordinary Shares Equivalents.

 

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(ii)       Issuance
of Ordinary Shares Equivalents. If the Company in any manner issues or sells any Ordinary Shares Equivalents (other than Ordinary
Shares Equivalents that qualify as Exempt Issuances) and the lowest price per share for which one Ordinary Share is issuable upon
the conversion, exercise or exchange thereof is less than the Applicable Price, then such Ordinary Shares shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Ordinary Shares Equivalents
for such price per share. For the purposes of this Section 3(e)(ii), the “lowest price per share for which one Ordinary
Share is issuable upon the conversion, exercise or exchange thereof” shall be equal to (1) the lower of (x) the sum of the
lowest amounts of consideration (if any) received or receivable by the Company with respect to one Ordinary Share upon the issuance
or sale of the Ordinary Shares Equivalent and upon conversion, exercise or exchange of such Ordinary Shares Equivalent and (y)
the lowest conversion price set forth in such Ordinary Shares Equivalent for which one Ordinary Share is issuable upon conversion,
exercise or exchange thereof minus (2) the sum of all amounts paid or payable to the holder of such Ordinary Shares Equivalent
(or any other Person) upon the issuance or sale of such Ordinary Shares Equivalent plus the value of any other consideration received
or receivable by, or benefit conferred on, the holder of such Ordinary Shares Equivalent (or any other Person). Except as contemplated
below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such Ordinary Shares upon conversion,
exercise or exchange of such Ordinary Shares Equivalents, and if any such issue or sale of such Ordinary Shares Equivalents is
made upon exercise of any options for which adjustment of this Note has been or is to be made pursuant to other provisions of this
Section 3(e), except as contemplated below, no further adjustment of the Exercise Price shall be made by reason of
such issue or sale.

 

(iii)       Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Ordinary Shares Equivalents, or the rate at which any Ordinary
Shares Equivalents are convertible into or exercisable or exchangeable for Ordinary Shares increases or decreases at any time,
the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have
been in effect at such time had such options or Ordinary Shares Equivalents provided for such increased or decreased purchase price,
additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or
sold. For purposes of this Section 3(e)(iii), if the terms of any option or Ordinary Shares Equivalent that was outstanding
as of the date of issuance of this Note are increased or decreased in the manner described in the immediately preceding sentence,
then such option or Ordinary Shares Equivalent and the Ordinary Shares deemed issuable upon exercise, conversion or exchange thereof
shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 3(e)
shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

 

    	 	9	 

     

    

 

(iv)       Calculation
of Consideration Received. If any option and/or Ordinary Shares Equivalent and/or Adjustment Right is issued in connection
with the issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the Holder, the “Primary
Security”, and such option and/or Ordinary Shares Equivalent and/or Adjustment Right, the “Secondary Securities”),
together comprising one integrated transaction, the consideration per Ordinary Shares with respect to such Primary Security shall
be deemed to be equal to the difference of (x) the lowest price per share for which one Ordinary Share was issued in such integrated
transaction (or was deemed to be issued pursuant to Section 3(e)(i) or 3(e)(ii) above, as applicable) solely with respect
to such Primary Security, minus (y) with respect to such Secondary Securities, the sum of (I) the Black Scholes Consideration Value
of each such option, if any, (II) the fair market value (as determined by the Holder) or the Black Scholes Consideration Value,
as applicable, of such Adjustment Right, if any, and (III) the fair market value (as determined by the Holder) of such Ordinary
Shares Equivalent, if any, in each case, as determined on a per share basis in accordance with this Section 3(e)(iv). If any
Ordinary Shares, options or Ordinary Shares Equivalents are issued or sold or deemed to have been issued or sold for cash, the
consideration received therefor (for the purpose of determining the consideration paid for such Ordinary Shares, option or Ordinary
Shares Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration Value) will be deemed to be the
net amount of consideration received by the Company therefor. If any Ordinary Shares, options or Ordinary Shares Equivalents are
issued or sold for a consideration other than cash (for the purpose of determining the consideration paid for such Ordinary Shares,
option or Ordinary Shares Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration Value), the
amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration
consists of publicly traded securities, in which case the amount of consideration received by the Company for such securities will
be the arithmetic average of the VWAPs of such security for each of the five (5) Trading Days immediately preceding the date of
receipt. If any Ordinary Shares, options or Ordinary Shares Equivalents are issued to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving entity (for the purpose of determining the consideration paid
for such Ordinary Shares, option or Ordinary Shares Equivalent, but not for the purpose of the calculation of the Black Scholes
Consideration Value), the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets
and business of the non-surviving entity as is attributable to such Ordinary Shares, options or Ordinary Shares Equivalents, as
the case may be. The fair value of any consideration other than cash or publicly traded securities (for the purpose of determining
the consideration paid for such Ordinary Shares, option or Ordinary Shares Equivalent, but not for the purpose of the calculation
of the Black Scholes Consideration Value) will be determined jointly by the Company and the Holder. If such parties are unable
to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”),
the fair value of such consideration will be determined within five (5) Trading Days after the tenth (10th) day following
such Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of
such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall
be borne by the Company.

 

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

 

(g)       Notice
to Holder.

 

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

 

    	 	10	 

     

    

 

(ii)       Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares,
(C) the Company shall authorize the granting to all holders of the Ordinary Shares rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Ordinary Shares, any consolidation or merger to which the Company is a party, any
sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Ordinary
Shares are converted into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, to the extent that such information constitutes material non-public
information (as determined in good faith by the Company) the Company shall follow the procedure described in Section 13 of the
Subscription Agreement and shall deliver to the Holder at its last address as it shall appear upon the Warrant Register of the
Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if
a record is not to be taken, the date as of which the holders of the Ordinary Shares of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Ordinary Shares of record shall be entitled to exchange their shares of the Ordinary Shares for securities, cash
or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that
the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period
commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly
set forth herein.

 

(h)       Increase
in Warrant Shares. In the event the Exercise Price is reduced for any reason, including but not limited to pursuant to Section 3(e)
of this Warrant the number of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise Price payable
hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to
such adjustment.

 

Section 4.        Transfer
of Warrant.

 

(a)       Transferability.
Subject to compliance with any applicable securities laws and the provisions of the Purchase Agreement, this Warrant and all rights
hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this
Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially
in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver
a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified
in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new
holder for the purchase of Warrant Shares without having a new Warrant issued.

 

    	 	11	 

     

    

 

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

 

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

 

Section 5.         Miscellaneous.

 

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

 

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

 

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

 

    	 	12	 

     

    

 

(d)       Authorized
Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued
Ordinary Shares a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase
rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the
Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of the Trading Market upon which the Ordinary Shares may be listed. The Company covenants that
all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise
of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized,
validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). Except and to the extent
as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate
of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary
or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon
such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant. Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

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

 

(f)       Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, or unless exercised
in a cashless exercise when Rule 144 is available, and the Holder does not utilize cashless exercise, will have restrictions upon
resale imposed by state and federal securities laws.

 

(g)       Non-waiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

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

 

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

 

    	 	13	 

     

    

 

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

 

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

 

(l)       Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders
of not less than a majority of the outstanding Warrants issued pursuant to the Purchase Agreement.

 

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

 

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

 

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

(Signature Page Follows)

 

    	 	14	 

     

    

 

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

 

	 	P.V.
    NANO CELL LTD.
	 	 	 
	 	By:	/s/
    Fernando de la Vega
	 	Name: 	Dr.
    Fernando de la Vega
	 	Title:	CEO

 

 

    	 	15	 

     

    

 

NOTICE OF EXERCISE

 

TO:       P.V.
NANO CELL LTD.

 

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

 

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

 

☐ in lawful money of the United
States; or

 

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

 

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

 

_______________________________

 

(4) After
giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

The Warrant Shares shall be delivered to the following
DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

P.V.
NANO CELL LTD.

 

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

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

Dated: ______________, _______

 

	 	Holder’s Signature:	_____________________________
	 	 	 
	 	Holder’s Signature:	_____________________________
	 	 	 
	 	 	_____________________________

 

Signature Guaranteed: ___________________________________________

 

NOTE: The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.EXHIBIT 4.1

[FACE OF NOTE]

THIS SECURITY IS A REGISTERED
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO THE NOMINEE
OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

the
western union company

 

	Floating Rate Note Due May 22, 2019	
        CUSIP: 959802 AV1

        ISIN: US959802AV18

	No. R-1	$250,000,000

The Western Union Company, a Delaware
corporation (the “Company,” which term includes any successor under the Indenture hereinafter referred to),
for value received, promises to pay to Cede & Co., or its registered assigns, the principal sum of TWO HUNDRED FIFTY MILLION
DOLLARS ($250,000,000), or such other amount as indicated on the Schedule of Exchanges of Notes attached hereto, on May 22, 2019.

Issue Date: August 22, 2017.

Interest Payment Dates: February
22, May 22, August 22 and November 22, commencing November 22, 2017.

Regular Record Dates: February 7, May
7, August 7 and November 7.

Reference is hereby made to the further
provisions of this Note set forth on the reverse hereof, which shall for all purposes have the same effect as if set forth at this
place.

[Signature page follows]

IN WITNESS WHEREOF, the Company
has caused this Note to be signed manually or by facsimile by its duly authorized officer.

	Date: August 22, 2017	THE WESTERN UNION COMPANY
	 	 
	 	 
	 	By:  	 
	 	 	Name:  	Brad Windbigler
	 	 	Title:	Senior Vice President and 

Treasurer

[Corporate Seal]

(Trustee’s Certificate of Authentication)

This is one of the Securities authorized
to be issued pursuant to the Indenture referred to in this Note.

	WELLS FaRGO BanK, NatIOnaL 

ASSOCIATIOn, as Trustee
	 
	 
	By:  	 
	 	Authorized Signatory

REVERSE SIDE OF NOTE

The
western union company

Floating Rate Note Due May 22, 2019

1. Definitions.

Terms not otherwise defined herein shall
have the meanings ascribed to such terms in the Indenture dated as of November 17, 2006, as amended by the Supplemental Indenture
dated as of September 6, 2007 (as amended from time to time, the “Indenture”), between the Company and Wells
Fargo Bank, National Association, as trustee (the “Trustee”).

“Calculation Agent”
means a financial institution appointed by the Company to calculate the interest rate payable on this Note in respect of each Interest
Period, which Calculation Agent shall initially be the Trustee.

“Determination Date”
with respect to an Interest Period will be the second London Banking Day preceding the first day of such Interest Period.

“Interest Period”
means the period commencing on and including an interest payment date and ending on and including the day immediately preceding
the next succeeding interest payment date, with the exception that the first Interest Period shall commence on and include the
issue date and end on and include November 21, 2017.

“Interest Reset Date”
means the first day of any Interest Period.

“LIBOR,” with respect
to an Interest Period, will be the rate (expressed as a percentage per annum) for deposits in U.S. dollars for a three-month period
beginning on the second London Banking Day after the Determination Date that appears on the display on Page LIBOR01 of Reuters
(or any successor service) for the purpose of displaying the London interbank offered rates of major banks for U.S. dollars (or
such other page as may replace that page on that service (or any successor service) for the purpose of displaying such rates) as
of 11:00 a.m., London time, on the Determination Date. If such page does not include such a rate or is unavailable on a Determination
Date, the Company will request the principal London office of each of four major banks in the London interbank market, as selected
by the Company, to provide such bank’s offered quotation (expressed as a percentage per annum), as of approximately 11:00
a.m., London time, on such Determination Date, to prime banks in the London interbank market for deposits in a Representative Amount
in U.S. dollars for a three-month period beginning on the second London Banking Day after the Determination Date. If at least two
such offered quotations are so provided, the rate for the Interest Period will be the arithmetic mean of such quotations. If fewer than two such
quotations are so provided, the Company will request each of three major banks in New York City, as selected by the Company, to
provide such bank’s rate (expressed as a percentage per annum), as of approximately 11:00 a.m., New York City time, on such
Determination Date, for loans in a Representative Amount in U.S. dollars to leading European banks for a three-month period beginning
on the second London Banking Day after the Determination Date. If at least two such rates are so provided, the rate for the Interest
Period will be the arithmetic mean of such rates. If fewer than two such rates are so provided, then the rate for the Interest
Period will be the rate in effect with respect to the immediately preceding Interest Period.

1

“London Banking Day”
means any day on which dealings in U.S. dollars are transacted or, with respect to any future date, are expected to be transacted
in the London interbank market.

“Representative Amount”
means a principal amount of not less than $1,000,000 for a single transaction in the relevant market at the relevant time.

2. Principal and Interest.

The Company promises to pay the principal
of this Note on May 22, 2019. If the maturity date of this Note is not a Business Day, then the principal amount of the Note plus
accrued and unpaid interest thereon shall be paid on the next succeeding Business Day with the same effect as if payment were made
on the maturity date, and no interest shall accrue for the maturity date, or thereafter.

The Company promises to pay interest
on the principal amount of this Note on each interest payment date, as set forth on the face of this Note, at the rate per annum,
reset quarterly, equal to LIBOR plus 0.80%, as determined by the Calculation Agent (subject to adjustment as provided below). The
amount of interest for each day that this Note is outstanding (the “Daily Interest Amount”) will be calculated
by dividing the interest rate in effect for such day by 360 and multiplying the result by the principal amount of the Note then
outstanding. The amount of interest to be paid on this Note for each Interest Period will be calculated by adding the Daily Interest
Amounts for each day in the Interest Period. All percentages resulting from any of the above calculations will be rounded, if necessary,
to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point being rounded upwards
(e.g., 3.876545% (or .03876545) being rounded to 3.87655% (or .0387655)) and all dollar amounts used in or resulting from such
calculations will be rounded to the nearest cent (with one-half cent being rounded upwards). The interest rate on this Note will
in no event be higher than the maximum rate permitted by New York law as the same may be modified by United States law of general
application. The Calculation Agent will, upon the request of any Holder of this Note, provide the interest rate then in effect with respect to this Note.
All calculations made by the Calculation Agent in the absence of manifest error will be conclusive for all purposes and binding
on the Company and the Holder of this Note.

2

Interest shall be payable quarterly (to
the holders of record of this Note at the close of business on the February 7, May 7, August 7 and November 7 immediately preceding
the interest payment date) on each interest payment date, commencing November 22, 2017.

Interest on this Note shall accrue from
the most recent date on which interest has been paid or provided for on this Note or the Note surrendered in exchange for this
Note (or, if there is no existing default in the payment of interest and if this Note is authenticated between a regular record
date and the next interest payment date, from such interest payment date) or, if no interest has been paid, from the Issue Date
to and including the day immediately preceding the next interest payment date.

If any interest payment date falls on
a day that is not a Business Day, then payment shall be made on the next succeeding Business Day, without additional interest and with the same effect as if it were made on the originally scheduled date, unless the next succeeding Business
Day is in the next succeeding calendar month, in which case payment shall be made on the immediately preceding Business Day without
additional interest and with the same effect as if it were made on the originally scheduled date.

Interest not paid when due and any interest
on principal, premium or interest not paid when due shall be paid to the Persons that are Holders on a special record date, which
shall be the 15th day next preceding the date fixed by the Company for the payment of such interest, whether or not such day is
a Business Day. At least 10 days before a special record date, the Company shall send to each Holder and to the Trustee a notice
that sets forth the special record date, the payment date and the amount of interest to be paid.

3. Indenture.

This is one of the Securities issued
under the Indenture. The terms of this Note include those stated in or otherwise provided in accordance with the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act. This Note is subject to all such terms, and Holders are
referred to the Indenture and the Trust Indenture Act for a statement of all such terms. To the extent permitted by applicable
law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of this Note shall
control.

This Note is a general unsecured obligation
of the Company. The Indenture does not limit the original aggregate principal amount of the Notes, or any additional Securities that may be issued pursuant to
the Indenture, and the Notes and all such additional Securities vote together for all purposes as a single class.

3

4. Change of Control Repurchase; Redemption;
Discharge Prior to Redemption or Maturity.

If a Change of Control Triggering Event
(as defined below) occurs, the Company shall make an offer (the “Change of Control Offer”) to each holder of
the Notes to repurchase all or any part (equal to $2,000 and integral multiples of $1,000 in excess thereof) of that holder’s
Notes on the terms set forth in this Section 4. In the Change of Control Offer, the Company shall offer payment in cash equal to
101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased
to, but not including, the date of repurchase (the “Change of Control Payment”). Within 30 days following any
Change of Control Triggering Event or, at the option of the Company, prior to any Change of Control, but after public announcement
of the transaction that constitutes or may constitute the Change of Control, a notice shall be mailed (or sent electronically in
accordance with applicable DTC procedures) to holders of the Notes, with a copy to the Trustee, describing the transaction that
constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified
in the applicable notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed
or sent (the “Change of Control Payment Date”). The notice shall, if mailed or sent prior to the date of consummation
of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring
on or prior to the applicable Change of Control Payment Date.

On each Change of Control Payment Date,
the Company shall, to the extent lawful:

		(1)	accept for payment all Notes or portions of Notes properly tendered pursuant to the applicable
Change of Control Offer and not withdrawn; 
		(2)	deposit with the paying agent an amount equal to the Change of Control Payment in respect of
all Notes or portions of Notes properly tendered and not withdrawn; and 
		(3)	deliver or cause to be delivered to the Trustee the Notes properly accepted together with an
Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased. 

The Company shall not be required to
make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer
in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the
third party purchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase
any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture,
other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

4

The Company shall comply with the requirements
of Rule 14e-1 under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities
laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the
Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations
conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations
and shall not be deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of
any such conflict and compliance.

If holders of not less than 90% in aggregate
principal amount of the outstanding Notes properly tender and do not withdraw the Notes in a Change of Control Offer (or an offer
made by a third party as described above) and the Company, or any third-party making an offer in lieu of the Company, as described
above, purchases all of the Notes properly tendered and not withdrawn by such holders, the Company or the third party making such
offer shall have the right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30 days following
such purchase pursuant to the Change of Control Offer or offer by such third party described above, to redeem all Notes that remain
outstanding following such purchase at a redemption price in cash equal to the applicable Change of Control Payment.

For purposes of the Change of Control
Offer provisions of the Notes, the following definitions shall apply:

“Change of Control”
means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or more series of related transactions, of the Company’s assets and
the assets of its subsidiaries substantially as an entirety or as an entirety, taken as a whole, to any person, other than the
Company or one of its subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation)
the result of which is that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of more than 50% of the Company’s outstanding Voting Stock or other Voting Stock into which the Company’s
Voting Stock is reclassified, consolidated, exchanged or changed in such transaction, measured by voting power rather than number
of shares; (3) the Company consolidates with, or merges with
or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction
in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged
for cash, securities or other property, other than any such transaction where the shares of the Company’s Voting Stock outstanding
immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the outstanding Voting
Stock of the surviving person or any direct or indirect parent company of the surviving person immediately after giving effect
to such transaction; (4) the first day on which a majority of the members of the Company’s board of directors are not Continuing
Directors; or (5) the adoption of a plan relating to the Company’s liquidation or dissolution. Notwithstanding the foregoing,
a transaction will not be deemed to involve a Change of Control under clause (2) or (3) above if (i) the Company becomes a direct
or indirect wholly owned subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such
holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting
Stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company
satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock
of such holding company. The term “person,” as used in this definition, has the meaning given thereto in Section
13(d)(3) of the Exchange Act.

5

“Change of Control Triggering
Event” means the occurrence of both a Change of Control and a Rating Event.

“Continuing Directors”
means, as of any date of determination, any member of the Company’s board of directors who (1) was a member of such board
of directors on the date the Notes were issued or (2) was nominated for election, elected or appointed to such board of directors
with the approval of a majority of the continuing directors who were members of such board of directors at the time of such nomination,
election or appointment (either by a specific vote or resolution adopted by the Company’s board of directors or by approval
by the Company’s board of directors of the Company’s proxy statement in which such member was named as a nominee for
election as a director).

“Fitch” means Fitch
Inc., and its successors.

“Investment Grade Rating”
means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s, BBB- (or the equivalent) by S&P and BBB-
(or the equivalent) by Fitch, and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies
selected by the Company.

“Moody’s” means
Moody’s Investors Service, Inc., and its successors.

6

“Rating Agencies”
means (1) each of Moody’s, S&P and Fitch; and (2) if any or all of Moody’s, S&P or Fitch ceases to rate the
Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally
recognized statistical rating organization” within the meaning of Section 3(a)(62) under the Exchange Act selected by the
Company (as certified by a resolution of the Company’s board of directors) as a replacement agency for Moody’s, S&P
or Fitch, or all of them, as the case may be.

“Rating Event” means
the rating on the Notes is lowered by all three of the Rating Agencies from an Investment Grade Rating to below an Investment Grade
Rating, in any case on any day during the period (which period will be extended so long as the rating of the Notes is under publicly
announced consideration for a possible downgrade by any of the Rating Agencies) commencing upon the first public notice by the
Company of the occurrence of a Change of Control or the Company’s intention to effect a Change of Control and ending 60 days
following the consummation of the Change of Control; provided, however, that a Rating Event otherwise arising by
virtue of a particular reduction in rating will not be deemed to have occurred in respect of a particular Change of Control (and
thus will not be deemed a Rating Event for purposes of the definition of Change of Control Triggering Event) if any of the Rating
Agencies does not announce or publicly confirm or inform the Company that the reduction in ratings was the result, in whole or
in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control has been consummated at the time of the Rating Event).

“S&P” means Standard & Poor’s Ratings Services, a division of S&P Global Inc., and its successors.

“Voting Stock” means,
with respect to any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date,
the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such
person.

There is no sinking fund or mandatory
redemption applicable to this Note.

If the Company deposits with the Trustee
money or U.S. Government Obligations sufficient to pay the then outstanding principal of, premium, if any, and accrued interest
on this Note to maturity, the Company may in certain circumstances be discharged from the Indenture and the Notes
or may be discharged from certain of its obligations under certain provisions of the Indenture.

7

5. Covenant Defeasance

The provisions in Article 8 of the Indenture
relating to Discharge and Defeasance (including Sections 8.01 and 8.05) shall be applicable to the Notes, including the provisions
relating to Change of Control Offers; provided that the Notes may only be discharged in the Interest Period in which the Notes mature. For the purposes of the Section 8.05(e) of the Indenture, the term “Holder”
shall refer to the beneficial owner.

6. Other Provisions.

With respect to the Notes, Section 4.08(a)
as set forth in the Indenture shall read as follows: “(a) the sum of the aggregate sale price of property involved in the
Sale and Leaseback Transactions not otherwise permitted plus the aggregate amount of indebtedness secured by Liens referred to
in subsection (11) of the definition of “Permitted Liens” does not exceed the greater of $300 million or 15% of Consolidated
Net Worth;”.

With respect to the Notes, subsection
(11) of the definition of “Permitted Liens” as set forth in the Indenture shall read as follows: “(11) Liens
not otherwise permitted if the aggregate amount of the indebtedness secured by those Liens, plus the aggregate sales price of property
involved in Sale and Leaseback Transactions referred to in Section 4.08(a), does not exceed the greater of $300 million or 15%
of Consolidated Net Worth.”

With respect to the Notes, the definition
of “Financing Lease” shall read as follows: “‘Financing Lease’ means any lease of property, real
or personal, the obligations of the lessee in respect of which are required in accordance with GAAP as it exists on August 15,
2017 to be capitalized on a balance sheet of the lessee.”

7. Registered Form; Denominations;
Transfer; Exchange.

The Notes are in registered form without coupons and shall only be in denominations
of $2,000 and in integral multiples of $1,000 in excess of $2,000. A Holder may register the transfer or exchange of Notes in accordance
with the Indenture. The Trustee may require a Holder to furnish appropriate endorsements and transfer documents and to pay any
taxes and fees required by law or permitted by the Indenture. Pursuant to the Indenture, there shall be certain periods during
which the Trustee may not be required to issue, register the transfer of or exchange any Note or certain portions of a Note.

8. Defaults and Remedies.

If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding Notes may declare all the Notes to be due and payable immediately. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before
it enforces the Indenture or the Notes. Subject to certain limitations provided in the Indenture, Holders of a majority in principal
amount of the Notes then outstanding may direct the Trustee in its exercise of remedies.

8

9. Amendment and Waiver.

The Indenture and this Note may be amended,
or default thereunder may be waived, in accordance with provisions set forth in the Indenture.

10. Authentication.

This Note is not valid until the Trustee
(or Authenticating Agent) signs the certificate of authentication on the other side of this Note.

11. Governing Law.

The laws of the State of New York shall
govern this Note, without regard to conflicts of law principles thereof.

12. Abbreviations.

Customary abbreviations may be used in
the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint
tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to Minors Act).

The Company shall furnish a copy of the
Indenture to any Holder upon written request and without charge.

9

[FORM OF TRANSFER NOTICE]

FOR VALUE RECEIVED the undersigned registered
holder hereby sell(s), assign(s) and transfer(s) unto

	Insert Taxpayer Identification No.
	 
	 
	(Please print or typewrite name and address including zip code of assignee)
	 
	the within Note and all rights thereunder, hereby irrevocably constituting and appointing
	 

 

attorney to transfer said Note on the books of the Company with
full power of substitution in the premises.

	Date:  	 
	 
	Seller
	By  	 
	 	 	 

	NOTICE: The signature to this assignment must correspond
with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change
whatsoever.

	Signature

Guarantee:1  	           
	 	By	    
		To be executed by an executive officer

____________________

1 Signatures must be guaranteed by an “eligible guarantor
institution” meeting the requirements of the Registrar, which requirements include membership or participation in the
Securities Transfer Association Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

SCHEDULE OF EXCHANGES OF NOTES

The following exchanges of a part of this Registered Global
Security for other Securities or a part of another Registered Global Security have been made:

	
      Date of Exchange
	      	
      Amount of decrease
in principal amount
of this
      Registered
Global Security
	      	
      Amount of increase
in principal amount
of this
      Registered
Global Security
	      	
      Principal amount of
this Registered
Global
      Security
following such
decrease (or
increase)
	      	
      Signature of
authorized officer
    of
Trustee

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