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Exhibit 10.4

 

THE
SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE
EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

$[●]  August
10, 2017

  New
York , New York

 

For
value received, root9B Holdings, Inc., a Delaware corporation (the
“Company”), promises to
pay to [●] (the “Holder”), or its
registered assigns, in lawful money of the United States of America
the principal amount of [●] ($[●]). Interest shall
accrue from the date of this Secured Convertible Promissory Note
(this “Note”) on the unpaid
principal amount at a rate equal to 10.00% per annum simple
interest. Interest on this Note shall accrue and, unless otherwise
converted in accordance with Section 2 below, shall be payable upon
the Maturity Date (as defined below). This Note is one of a series
of $[1,800,000] of aggregate principal amount of Notes issued or to
be issued as described on Schedule I hereto (collectively, the
“August 2017
Notes”).

 

This
Note is subject to the following terms and conditions:

 

1. Payments.

 

(a) Repayment.

 

(i) Repayment upon Maturity Date.
If this Note is not earlier converted pursuant to Section 2, the
entire then-outstanding and unpaid principal amount of this Note,
together with any accrued but unpaid interest thereon (the
“Outstanding
Amount”), shall be due and payable upon the earlier to
occur of (i) September 9, 2019 (the “Maturity Date”), and (ii)
following the occurrence of an Event of Default (as defined below),
when such amounts are declared due and payable by the Holder in
accordance with the terms hereof. All payments shall be made, at
the Holder’s option, in either (i) lawful money of the United
States of America at such place as the Holder hereof may from time
to time designate in writing to the Company or (ii) shares of the
Company’s common stock, par value $0.001 (the
“Common
Stock”) pursuant to Section 2(b) below. Subject to
Section 2 below, interest shall accrue on this Note but shall not
be due and payable until the Maturity Date.

 

(ii) Optional
Repayment Upon a Minimum Threshold Sale. In the event that
the Company consummates a Minimum Threshold Sale (as defined
below), then Holder shall have the one-time right, exercisable by
delivering to the Company written notice (the “Optional Repayment
Notice”) at any time during the Option Period (as
defined below), to demand repayment of an amount equal to up to
twenty-five percent (25%) of the Outstanding Amount (which amount
shall be specified in the Optional Repayment Notice) (the
“Minimum Threshold
Repayment”), in cash at such place as the Holder
hereof may designate in writing to the Company, with such payment
to be made within three (3) business days of receipt of the
Optional Repayment Notice. Notwithstanding anything to the contrary
contained herein, including, but not limited to, Section 1(c)
below, any such Optional Repayment shall not be subject to any
prepayment penalty. For the avoidance of doubt, the right to demand
the Minimum Threshold Repayment shall expire upon the expiration of
the Option Period.

 

(iii) Optional
Repayment Upon a Maximum Threshold Sale. In the event that
the Company consummates a Maximum Threshold Sale (as defined
below), then Holder shall have the one-time right, exercisable by
delivering to the Company an Optional Repayment Notice during the
Option Period, to demand repayment of an amount equal to up to
fifty percent (50%) of the Outstanding Amount (which amount shall
be specified in the Optional Repayment Notice) (the
“Maximum Threshold
Repayment”), in cash at such place as the Holder
hereof may designate in writing to the Company, with such payment
to be made within three (3) business days of receipt of the
Optional Repayment Notice. Notwithstanding anything to the contrary
contained herein, including, but not limited to, Section 1(c)
below, any such Optional Repayment shall not be subject to any
prepayment penalty. For the avoidance of doubt, the right to demand
the Maximum Threshold Repayment shall expire upon the expiration of
the Option Period.

 

 

1

 

 

(b) Interest
Payment. The Interest Payment shall be paid by the Company
on each Payment Date. The Interest Payment shall be payable in, at
the option of the Holder, either (i) lawful money of the United
States of America at such place as the Holder hereof may from time
to time designate in writing to the Company or (ii) such number of
shares of Common Stock (the “Interest Shares”) equal
to the quotient obtained by dividing (i) the Interest Payment by
(ii) Interest Conversion Rate (the “Interest Payment Type”).
Notwithstanding the foregoing, Holder may not request the Interest
Payment to be paid in Interest Shares if such issuance shall result
in a Share Reserve Failure. Holder shall notify the Company in
writing no fewer than three (3) business days prior to the
applicable Payment Date the Interest Payment Type such
Holder’s Interest Payment shall be payable in on the
applicable Payment Date.

 

(c) Prepayment.
The Company shall have the right at any time prior to the twelve
month anniversary (the “Anniversary Date”) of the
date of issuance of this Note, with the prior written consent of
the Holder, to prepay all or some of the outstanding Principal
Amount of this Note together with accrued interest then due (the
“Prepayment
Amount”) by paying to the Holder an amount equal to
(1) the unpaid principal to be repaid plus (2) any accrued but unpaid
interest plus (3) an amount
equal to the interest which has not accrued as of the Optional
Prepayment Date (as defined below) but would accrue on the
principal to be repaid during the period beginning on the Optional
Prepayment Date and ending on the Anniversary Date (the
“Early Prepayment
Price”). Following the Anniversary Date, the Company
shall have the right, exercisable on not less than three (3)
Trading Days prior written notice to the Holder of the Note, to
prepay all or some of the outstanding Principal Amount of this Note
together with accrued interest then due by paying to the Holder an
amount equal to (1) the unpaid principal to be repaid plus (2) any accrued but unpaid
interest plus (3) an amount
equal to one-half of the interest which has not accrued as of the
Optional Prepayment Date (as defined below) but would accrue on the
principal to be repaid during the period beginning on the Optional
Prepayment Date and ending on the Maturity Date (the
“Subsequent
Prepayment Price” and, together with the Early
Prepayment Price, the “Prepayment Price”). Any
notice of prepayment hereunder (an “Optional Prepayment
Notice”) shall be delivered to the Holder at its
registered address and shall state: (1) that the Company is
exercising its right to prepay the Note, (2) the Prepayment Amount,
(3) the applicable Prepayment Price and (4) the date of prepayment
which shall be not more than three (3) Trading Days from the date
of the Optional Prepayment Notice. On the date fixed for prepayment
(the “Optional
Prepayment Date”), the Company shall make payment of
the applicable Prepayment Price to or upon the order of the Holder
as specified by the Holder in writing to the Company at least one
(1) business day prior to the Optional Prepayment Date. The Company
covenants and agrees that it will honor all Notices of Conversion
(as defined below) tendered from the time of delivery of the
Optional Prepayment Notice through the date all amounts owing
thereon are due and paid in full. Notwithstanding the provisions of
this Section 1(c), the Company shall only be permitted to prepay
this Note if concurrently with such prepayment the Company prepays
all of the August 2017 Notes and the SPA Notes (as defined below)
on a pro-rata basis.

 

(d) Security.
Subject to the execution of that certain Joinder to Security
Agreement and Waiver of Secured Convertible Promissory Notes in the
form attached hereto as Exhibit A, the payment
obligations arising under this Note are secured pursuant to the
terms of that certain Security Agreement, dated September 9, 2016,
by and among the Company and the investors parties thereto (as
amended from time to time, the “Security Agreement”).
Reference hereby is made to the Security Agreement for a
description of the nature and extent of the collateral serving as
security for this Note and the rights of the Holder with respect to
such security.

 

(e) Ranking. The
Note shall rank pari passu
with the secured convertible promissory notes (as amended and
restated, the “SPA
Notes”) issued pursuant to that certain Securities
Purchase Agreement, dated September 9, 2016, by and among the
Company and the investors party thereto, as amended, and senior in
all respects to indebtedness, liabilities or obligations of the
Company to other parties outstanding as of the date of this Note,
and shall rank pari passu
with each of the August 2017 Notes.

 

(f) Definitions.

 

(i) “Interest Conversion Rate”
means a per share price equal to 85% of the quotient of the sum of
the VWAP of the Common Stock as of each Trading Day during the five
(5) consecutive Trading Day period ending and including the
Trading Day ended immediately prior to the Additional Closing Date,
divided by five (5), but in no event less than $10.00 per
share.

 

(ii) “Interest
Payment” means an amount equal to any accrued but
unpaid interest under this Note as of each Payment
Date.

 

(iii) IPSA
Sale” means a sale of substantially all of the assets
of IPSA (as defined below).

 

(iv) “Maximum
Threshold Sale” means an IPSA Sale from which the
Company receives cash proceeds of not less than $10,000,000 at the
closing of such transaction (exclusive of any earn out amounts,
milestone payments or similar contingent payments).

 

(v) “Minimum Threshold Sale”
means an IPSA Sale from which the Company receives cash proceeds of
not less than $8,000,000 and not greater than $9,999,999.99 at the
closing of such transaction (exclusive of any earn out amounts,
milestone payments or similar contingent payments).

 

(vi) “Option
Period” means the 30 calendar day period following
either a Minimum Threshold Sale or Maximum Threshold Sale, as
applicable.

 

(vii) “Payment
Date” means each March 31, June 30, September 30 and
December 31, commencing September 30, 2017 or, in each case, if
such day is not a business day, the first business day immediately
thereafter until the earlier of (i) the Outstanding Amount is
repaid pursuant to Section
1(a) or (ii) the Outstanding Amount is converted pursuant to
Section
2.

 

 

2

 

 

(viii) “Trading
Day” means a day on which the principal Trading Market
is open for trading.

 

(ix) “Trading
Market” means any of the following markets or
exchanges on which the Common Stock is listed or quoted for trading
on the date in question: the NYSE MKT, the Nasdaq Capital Market,
the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange, the OTC Bulletin Board or the “Pink
Sheets” published by Pink OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting
prices) (or any successors to any of the foregoing).

 

(x) “VWAP” means, for any
date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted
on a Trading Market, the daily volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the
Trading Market on which the Common Stock is then listed or quoted
as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)),
(b) if the OTC Bulletin Board is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or
the nearest preceding date) on the OTC Bulletin Board, (c) if
the Common Stock is not then listed or quoted for trading on the
OTC Bulletin Board and if prices for the Common Stock are then
reported in the “Pink Sheets” published by Pink OTC
Markets, Inc. (or a similar organization or agency succeeding to
its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as
determined by an independent appraiser selected in good faith by
the Holders of a majority in interest of the Securities then
outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

 

2. Conversion.

 

(a) Conversion.
Subject to the limitations set forth in Section 2(d) and Section 3 below, at any time on
or after December 31, 2017, unless the Outstanding Amount has
previously been repaid or converted as provided herein, the Holder
may elect to convert, in whole or in part, the Outstanding Amount
into fully paid and non-assessable shares of Common Stock. The
number of shares of Common Stock to be issued upon conversion of
this Note pursuant to this Section 2(a) shall be equal to
the quotient obtained by dividing (i) the Outstanding Amount
elected by the Holder to be converted, by (ii) $10.00 (subject to
appropriate adjustment in the event of any stock dividend, stock
split, combination or similar recapitalization affecting such
shares) (the “Conversion Price”),
rounded down to the nearest whole share.

 

(b) Rights, Preferences
and Privileges of Common Stock. Upon conversion of this Note
pursuant to this Section
2, the Company shall issue shares of Common Stock (the
“Conversion
Shares”) which shall have the rights, preferences and
privileges set forth in the Company’s Certificate of
Incorporation, as amended from time to time and then in
effect.

 

(c) Mechanics and
Effect of Conversion.
This Note may be converted by the Holder in whole or in part
pursuant to Section
2(a), on any Trading Day, by submitting to the Company a
notice (by facsimile, e-mail or other reasonable means of
communication dispatched on the date of conversion prior to 4:00
p.m., New York, New York time) specifying the Outstanding Amount to
be so converted (the “Notice of Conversion”).
Any Notice of Conversion submitted after 4:00 p.m., New York, New
York time, shall be deemed to have been delivered and received on
the next Trading Day. No fractional shares of the Common Stock will
be issued upon conversion of this Note. In lieu of any fractional
share to which the Holder would otherwise be entitled, the Company
will pay to the Holder in cash the amount of the unconverted
outstanding and unpaid principal amount of this Note that would
otherwise be converted into such fractional share. Upon conversion
of this Note pursuant to this Section 2, the Holder
shall surrender this Note, duly endorsed, at the principal offices
of the Company or any transfer agent of the Company. At its
expense, the Company will, as soon as practicable thereafter, issue
and deliver to such Holder, at such principal office, a certificate
or certificates for the number of shares to which such Holder is
entitled upon such conversion, together with any other securities
and property to which the Holder is entitled upon such conversion
under the terms of this Note, including a check payable to the
Holder for any cash amounts payable as described herein. Upon
conversion of this Note, the Company will be forever released from
all of its obligations and liabilities under this Note with regard
to that portion of the principal amount being converted including
without limitation the obligation to pay such portion of the
principal amount.

 

(d) Limitations on
Exercise. This Note shall not be converted by the Holder to
the extent (but only to the extent) that, following such
conversion, the Holder or any of its affiliates would beneficially
own in excess of 9.99% (the “Maximum Percentage”) of
the Outstanding Shares of Common Stock (as defined below). No prior
limitation on the number of shares of Common Stock subject to this
Note or the inability to convert this Note pursuant to this
Section 2 shall
have any effect on the applicability of the provisions of this
Section 2 with
respect to any subsequent determinations of the number of shares
subject to the Note or the conversion hereof. For the purpose of
this Section 2(d),
beneficial ownership and all determinations and calculations
(including, without limitation, with respect to calculations of
percentage ownership) shall be determined in accordance with
Section 13(d) of the Securities Exchange Act. For clarification,
the foregoing calculation of beneficial ownership shall take into
account all securities which give rise to beneficial ownership by
the Holder or its Affiliates of such Common Stock under such rules
and regulations and not solely this Note. The provisions of this
Section 2(d) shall
be implemented in a manner otherwise than in strict conformity with
the terms of this Section
2(d) in order to correct this Section 2(d) or any portion
hereof which may be defective or inconsistent with the intended
Maximum Percentage beneficial ownership limitation herein contained
or to make changes or supplements necessary or desirable to
properly give effect to such Maximum Percentage limitation. The
limitations contained in this Section 2(d) shall apply to a
successor holder of this Note. “Affiliate” means, with
respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, is
controlled by or is under common control with such Person, as such
terms are used in and construed under Rule 405 under the Securities
Act of 1933, as amended. With respect to the Holder, any investment
fund or managed account that is managed on a discretionary basis by
the same investment manager Holder will be deemed to be an
Affiliate of Holder. “Person” means any
individual, firm, corporation, partnership, limited liability
company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or
political subdivision thereof, or other entity of any kind and
includes any successor (by merger or otherwise) of such entity.
“Outstanding Shares
of Common Stock” means, as of any particular
measurement time, the sum of (i) the total number of outstanding
shares of Common Stock of the Company as of such time, and (ii) the
total number of shares of Common Stock which Holder has the right
to acquire beneficial ownership of within sixty days of such
measurement time (to the extent not included in (i)), including but
not limited to any right to acquire shares of Common Stock through
the exercise of any option, warrant or right or through the
conversion of another security (including this Note).
“Exchange
Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Securities and
Exchange Commission thereunder.

 

 

3

 

 

(e) No Rights as
Stockholder. This Note does not by itself entitle the Holder
to any voting rights or other rights as a stockholder of the
Company. In the absence of conversion of this Note, no provisions
of this Note, and no enumeration herein of the rights or privileges
of the Holder shall cause the Holder to be a stockholder of the
Company for any purpose.

 

3. Share
Reserve.

 

(a) Notwithstanding
anything herein to the contrary, the Holder acknowledges and agrees
that this Note may not be converted nor any shares issued in
payment of accrued interest pursuant to Section 1(b), if, at the time
of such conversion or share payment, as applicable, the Company
does not have a sufficient number of authorized shares of Common
Stock pursuant to the Company’s Certificate of Incorporation
(the “Certificate of
Incorporation”), as in effect as of such date, to
cover such issuance (a “Share Reserve Failure”).
The Company will at all times reserve and keep available out of its
authorized but unissued stock, solely for the issuance and delivery
upon the conversion of the Notes or issuance of shares as provided
in Section 1(b),
and free of preemptive rights, such number of its duly authorized
shares of Common Stock as from time to time shall be issuable upon
the conversion of the Notes or issuance of shares as provided in
Section 1(b)
without regard to any limitation on exercise set forth herein or
therein. All of the shares of Common Stock issuable upon the
conversion of the Notes or issuance of shares as provided in
Section 1(b), when
issued and delivered in accordance with the terms hereof and
thereof, will be duly authorized, validly issued, fully paid and
non-assessable, subject to no lien or other encumbrance other than
restrictions on transfer arising under applicable securities laws
and restrictions imposed hereof.

 

(b) [Reserved.]

 

4. Events of
Default. Promptly following the Company becoming aware of an
occurrence of any Event of Default, the Company shall furnish to
the Holder written notice of the occurrence thereof. The occurrence
of any of the following shall constitute an “Event of Default” under
this Note:

 

(a) Failure to
Pay. The Company shall fail to pay (i) when due any
outstanding and unpaid principal amount on any due date hereunder
or (ii) any other payment required under the terms of this
Note on the date due, and in the case of (ii), such payment shall
not have been made within five (5) business days following the
Company’s receipt of Holder’s written notice to the
Company of such failure to pay;

 

(b) Voluntary
Bankruptcy or Insolvency Proceedings. The Company shall
(i) apply for or consent to the appointment of a receiver,
trustee, liquidator or custodian of itself or of all or a
substantial part of its property, (ii) make a general
assignment for the benefit of its or any of its creditors, or
(iii) commence a voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to itself
or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect or consent to any such relief or to the
appointment of or taking possession of its property by any official
in an involuntary case or other proceeding commenced against
it;

 

(c) Involuntary
Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a
receiver, trustee, liquidator or custodian of the Company or of all
or a substantial part of the property thereof, or an involuntary
case or other proceedings seeking liquidation, reorganization or
other relief with respect to the Company or the debts thereof under
any bankruptcy, insolvency or other similar law now or hereafter in
effect shall be commenced and an order for relief entered or such
proceeding shall not be challenged, dismissed or discharged within
sixty (60) days of commencement;

 

(d) Dissolution.
The dissolution or winding up of the Company;

 

(e) Cessation or
Suspension of Trading. The Common Stock is (i) no longer
listed for trading or authorized for quotation (as the case may be)
on a Trading Market or (ii) suspended from trading on a Trading
Market for a period of five (5) consecutive Trading Days or for
more than an aggregate of ten (10) Trading Days in any 365-day
period;

 

(f) Failure to Deliver
Shares. The Company shall fail to timely deliver any shares
of Common Stock when so required pursuant to the terms of this
Note;

 

(g) Cross-Default.
There shall have occurred an “Event of Default” (or
other comparable event) under any currently or future existing
indebtedness of the Company and such “Event of Default”
(or other comparable event) shall be continuing and not subject to
forbearance. For clarity, a default under any Note shall constitute
a default under this Section 4(g);

 

(h) Breach of
Representations, Warranties or Covenants. Any representation
or warranty of the Company in this Note or any other document or
agreement delivered by the Company to the Holder shall not be true
and complete, or the Company shall fail to observe or perform any
other covenant, obligation, condition or agreement contained in
this Note or any other document or agreement delivered by the
Company to the Holder;

 

 

4

 

 

(i)           Working
Capital. The Company, excluding IPSA International, Inc.,
the Company’s wholly-owned subsidiary (“IPSA”), shall fail to
maintain positive Working Capital (at least $1) as of each month
end. For purposes of this Note, “Working Capital” shall
mean cash plus accounts
receivable within 60 days old minus accounts payable more than 60
days old of a measurement date; or

 

(j)           Payroll
Requirement. The Company, excluding IPSA, shall fail to have
sufficient cash on hand (“COH”) equal to or greater
than 1.0 times the largest salary payroll paid during the preceding
90 days, as adjusted for any reductions in force. COH will be
computed at the end of each calendar month and equal to the average
COH for that month. For purposes of clarity, this payroll amount is
exclusive of any severance, bonus or commission payments made but
shall include payroll taxes on salary.”

 

5. Rights of Holder
upon Default.

 

(a) Rights upon Default. Upon the
occurrence or existence of any Event of Default (other than an
Event of Default referred to in Sections 4(b), 4(c), or 4(h)) and
at any time thereafter during the continuance of such Event of
Default, following the applicable cure or grace period, the Holder,
may, by written notice to the Company, declare all Outstanding
Amounts hereunder to be immediately due and payable without
presentment, demand, protest or any other notice of any kind, all
of which are hereby expressly waived, anything contained herein to
the contrary notwithstanding. Upon the occurrence or existence of
any Event of Default described in Sections 4(b), 4(c) or 4(h),
immediately and without notice, all Outstanding Amounts payable by
the Company hereunder shall automatically become immediately due
and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived,
anything contained herein to the contrary notwithstanding. In
addition to the foregoing remedies, upon the occurrence or
existence of any Event of Default, and following the applicable
cure or grace period (if any), Holder may exercise any other right
power or remedy granted to it by this Note or otherwise permitted
to it by law, either by suit in equity or by action at law, or
both. Any payment made by the Company upon an Event of Default
shall be made on a pro-rata, pari
passu basis to each Holder of an August 2017 Notes and the
SPA Notes.

 

(b)           [Reserved.]

 

(c)           Right
of First Refusal. In addition to any other right or remedy,
upon the occurrence or existence of any Event of Default, until
such Event of Default is cured, Holder shall have a right of first
refusal to match any Deal offered by a third party (which may
include directors, officers or stockholders, or affiliates or
associates thereof). A “Deal” shall mean any
written proposal or offer involving (i) a debt or equity financing
transaction involving the receipt by the Company of at least
$2,000,000, or (ii) the sale or exclusive license of substantially
all of the Company’s assets or acquisition of control of the
Company in whatever form. The Company shall provide to Holder
written notice of the Company’s receipt of any proposal
relating to a Deal that the Company receives after the occurrence
of an Event of Default until such Event of Default is cured, which
Holder shall maintain in confidence until publicly disclosed by the
Company. If more than one Holder of an August 2017 Note or SPA Note
exercises its right of first refusal, then the right shall be
apportioned based on the principal owed to each Holder. Holder must
provide written notice of its desire to match any proposal relating
to a Deal within 7 business days of its receipt of written notice
of such proposal, and if one or more holders of Notes elects to
match such proposal, the parties shall endeavor to close any such
Deal as promptly as practicable thereafter.

 

6. Rights Upon a
Fundamental Transaction. As a condition of the consummation
of any Fundamental Transaction occurring at any time prior to the
repayment or conversion in full of the Outstanding Amount, the
Company shall cause any Successor Entity in a Fundamental
Transaction to assume in writing all of the obligations of the
Company under this Note in accordance with the provisions of this
Section 6 pursuant to written agreements in form and
substance reasonably satisfactory to the Holder, including
agreements to deliver to the Holder in exchange for this Note a
security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Note,
including, without limitation, which is, at the time of
consummation of the Fundamental Transaction, convertible into a
corresponding number of shares of capital stock equivalent to the
shares of Common Stock acquirable and receivable upon conversion of
this Note (without regard to any limitations on the conversion of
this Note) prior to such Fundamental Transaction, and with a
conversion price equal to the Conversion Price (but taking into
account the relative value of the shares of Common Stock pursuant
to such Fundamental Transaction and the value of such shares of
capital stock, such adjustments to the number of shares of capital
stock and such exercise price being for the purpose of protecting
the economic value of this Note immediately prior to the
consummation of such Fundamental Transaction). Upon the
consummation of each Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after
the date of the applicable Fundamental Transaction, the provisions
of this Note 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 Note with the same effect as if such Successor
Entity had been named as the Company herein. Notwithstanding
anything to the contrary, the Company or any Successor Entity
shall, at the Holder’s option, exercisable at any time
concurrently with, or within 30 days after, the consummation of the
Fundamental Transaction, purchase all or any portion of the
Outstanding Amount under this Note from the Holder by paying to the
Holder an amount of cash equal to the applicable Prepayment Amount
set forth is Section
1(c) above. The foregoing provisions of this Section 6 shall
similarly apply to successive Fundamental
Transactions.

 

 

5

 

 

(a) Definitions.

 

(i) “Fundamental Transaction”
means that the Company shall, directly or indirectly, in one or
more related transactions, (i) consolidate or merge with or into
(whether or not the Company is the surviving corporation) another
Person or Persons, if the holders of the Voting Stock (not
including any shares of Voting Stock held by the Person or Persons
making or party to, or associated or affiliated with the Persons
making or party to, such consolidation or merger) immediately prior
to such consolidation ormerger shall hold or have the right to
direct the voting of less than 50% of the Voting Stock or such
voting securities of such other surviving Person immediately
following such transaction, or (ii) sell, assign, transfer, convey
or otherwise dispose of all or substantially all of the properties
or assets of the Company (other than the sale of IPSA, or any
assets related to IPSA) to another Person, or (iii) allow another
Person to make a purchase, tender or exchange offer that is
accepted by the holders of more than the 50% of the outstanding
shares of Voting Stock of the Company (not including any shares of
Voting Stock held by the Person or Persons making or party to, or
associated or affiliated with the Persons making or party to, such
purchase, tender or exchange offer) (other than the acquisition of
the Voting Stock of IPSA), or (iv) consummate a stock purchase
agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme
of arrangement) with another Person whereby such other Person
acquires more than the 50% of the outstanding shares of Voting
Stock of the Company (not including any shares of Voting Stock held
by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to,
such stock purchase agreement or other business combination) (other
than a sale of the Voting Stock of IPSA), (v) reorganize,
recapitalize or reclassify its Common Stock (other than pursuant to
the Amendment, if approved) or (vi) any “person” or
“group” (as these terms are used for purposes of
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) is or shall become the “beneficial owner” (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended), directly or indirectly, of 50% of the aggregate ordinary
voting power represented by issued and outstanding Common
Stock.

 

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

 

(iii) “Voting
Stock” of a Person means capital stock of such Person
of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint,
at least a majority of the board of directors, managers or trustees
of such Person (irrespective of whether or not at the time capital
stock of any other class or classes shall have or might have voting
power by reason of the happening of any contingency).

 

7. Negative
Covenants. Until the Note has been converted, redeemed or
otherwise satisfied in accordance with their terms, the Company
shall not and, the Company shall not permit any of its
subsidiaries, without the prior written consent of the Holder to,
directly or indirectly

 

(a) incur or guarantee,
assume or suffer to exist any indebtedness senior or pari passu to the Note;

 

(b) allow or suffer to
exist any mortgage, lien, pledge, charge, security interest or
other encumbrance upon or in any property or assets (including
accounts and contract rights) owned by the Company or any of its
subsidiaries (collectively, “Liens”) other than (i)
the Liens contemplated by the Security Agreement , (ii) any Lien
for taxes not yet due or delinquent or being contested in good
faith by appropriate proceedings for which adequate reserves have
been established in accordance with United States generally
accepted accounting principles, consistently applied during the
periods involved, (iii) any statutory Lien arising in the ordinary
course of business by operation of law with respect to a liability
that is not yet due or delinquent, (iv) any Liens created by that
certain Factoring and Security Agreement by and between IPSA and
Advance Payroll Funding Ltd., as amended, and any similar
agreements and (v) any Lien created by operation of law, such as
materialmen’s liens, mechanics’ liens and other similar
liens, arising in the ordinary course of business with respect to a
liability that is not yet due or delinquent or that are being
contested in good faith by appropriate proceedings, (v) Liens (A)
upon or in any equipment acquired or held by the Company or any of
its subsidiaries to secure the purchase price of such equipment or
indebtedness incurred solely for the purpose of financing the
acquisition or lease of such equipment, or (B) existing on such
equipment at the time of its acquisition, provided that the Lien is
confined solely to the property so acquired and improvements
thereon, and the proceeds of such equipment, (vi) Liens incurred in
connection with the extension, renewal or refinancing of the
indebtedness secured by Liens of the type described in clause (v)
above, provided that any extension, renewal or replacement Lien
shall be limited to the property encumbered by the existing Lien
and the principal amount of the Indebtedness being extended,
renewed or refinanced does not increase, (vii) leases or subleases
and licenses and sublicenses granted to others in the ordinary
course of the Company’s business, not interfering in any
material respect with the business of the Company and its
subsidiaries taken as a whole, (viii) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payments
of custom duties in connection with the importation of goods, and
(ix) Liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default;

 

 

6

 

 

(c) redeem, defease,
repurchase, repay or make any payments in respect of, by the
payment of cash or cash equivalents (in whole or in part, whether
by way of open market purchases, tender offers, private
transactions or otherwise), all or any portion of (i) any
indebtedness of the Company which is junior in priority to the
Note, (ii) the SPA Notes, or (iii) any indebtedness if at the time
such payment is due or is otherwise made or, after giving effect to
such payment, an event constituting, or that with the passage of
time and without being cured would constitute, an Event of Default
has occurred and is continuing, in each case, whether by way of
payment in respect of principal of (or premium, if any) or interest
on, such indebtedness;

 

(d) redeem or
repurchase for cash the Common Stock;

 

(e) declare or pay any
cash dividend on the Common Stock;

 

(f) enter into any
agreement that conflicts with any provision set forth in this Note
and/or restricts or prohibits the Company’s compliance with
any provision of this Note; or

 

(g) amend any of the
term of any of the August 2017 Notes or the SPA Notes to be,
individually or in the aggregate, more favorable than the terms of
this Note.

 

8. Transfer;
Successors and Assigns. The terms and conditions of this Note
shall inure to the benefit of and be binding upon the respective
successors and permitted assigns of the parties. Notwithstanding
the foregoing, neither the Company nor the Holder may assign or
transfer any of its obligations or rights under this Note without
the prior written approval of the other party hereto. Subject to
the preceding sentence, this Note may be transferred only upon
surrender of the original Note for registration of transfer, duly
endorsed, or accompanied by a duly executed written instrument of
transfer in form satisfactory to the Company. Thereupon, a new note
for the same principal amount and interest will be issued to, and
registered in the name of, the transferee. Interest and principal
are payable only to the Holder of this Note. The Company shall
maintain at its offices a register for the recordation of the names
and addresses of each Holder and assignee or transferee of such
Holder, and the principal amounts (and stated interest) under the
Note owing to, the Holder or any such assignee or transferee
pursuant to the terms hereof from time to time (the
“Register”). The entries
in the Register shall be conclusive absent manifest error, and the
Company, the Holder and any such assignee or transferee shall treat
each Person whose name is recorded in the Register pursuant to the
terms hereof as a Holder for all purposes hereunder.

 

9. Governing
Law. This Note and
all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and
interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of
law.

 

10. Notices.
All notices and other communications given or made pursuant to this
Note shall be in writing and shall be deemed effectively given upon
the earlier of actual receipt or: (i) personal delivery to the
party to be notified, (ii) when sent, if sent by electronic mail or
facsimile during normal business hours of the recipient, and if not
sent during normal business hours, then on the recipient’s
next business day, provided that in either case it is followed
promptly by a confirming copy of the notice given via another
authorized means for that recipient, (iii) two (2) business days
after deposit with a nationally recognized overnight courier,
freight prepaid for delivery, specifying next business day
delivery, with written verification of receipt, addressed to the
party to be notified at such party’s address as set forth on
the signature page hereto, or as subsequently modified by written
notice, and if to the Company, with a copy to DLA Piper LLP (US),
2525 East Camelback Road, Suite 1000, Phoenix, Arizona 85016,
Attention: Steven D. Pidgeon.

 

11. Amendments and
Waivers. Any term of
this Note may be amended only with the written consent of the
Company and the Holder. Any amendment or waiver effected in
accordance with this Section 11 shall be binding
upon the Company, the Holder and each transferee of the Note. No
consideration shall be offered or paid to the Holder or any holder
of any August 2017 Note (other than this Note) or any SPA Note
(together, the “Other Notes”) to amend or
consent to a waiver or modification of any provision of this Note
and/or the Other Notes unless the same consideration is also
offered to the Holder and all holders of Other Notes.

 

12. Entire
Agreement. This Note
constitutes the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other
written or oral agreements relating to the subject matter hereof
existing between the parties hereto are expressly
canceled.

 

 

7

 

 

13. Counterparts;
Electronic Delivery.
This Note may be executed in two (2) counterparts, each of which
shall be deemed an original, but both of which together shall
constitute one and the same instrument. Counterparts may be
executed electronically and delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the
U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other
transmission method and any counterpart so delivered shall be
deemed to have been duly and validly delivered and be valid and
effective for all purposes.

 

14. Stockholders,
Officers and Directors Not Liable. In no event shall any stockholder,
officer or director of the Company be liable for any amounts due or
payable pursuant to this Note.

 

15. Company
Covenants.

 

(a) On or before August
11, 2017 at 4:00pm Eastern Time, and within fifteen (15) days
following each month end thereafter, the Company shall deliver to
Holder a certificate setting forth the Company’s Working
Capital at the end of such month (or, in the case of the
certificate delivered on August 11, 2017, with respect to July
2017) certified by the Company’s chief financial officer and
accompanied by reasonable supporting documentation. The
Company’s (i) failure to timely provide Holder with a
certification pursuant to this section or (ii) failure to provide a
certification pursuant to this section that is accurate in all
respects shall constitute an “Event of Default”
pursuant to Section 4(h).

 

(b) On or before August
11, 2017 at 4:00pm Eastern Time, and within fifteen (15) days
following each month end thereafter, the Company shall provide
written notice to Holder, the Company shall deliver to Holder a
certificate, certified by the Company’s chief financial
officer and accompanied by reasonable supporting documentation,
stating that the Company has sufficient cash on hand
(“COH”) equal to or greater than 1.0 times the largest
salary payroll paid during the preceding 90 days, as adjusted for
any reductions in force and excluding IPSA. In addition the Company
shall provide written notice to Holder, within twenty four hours of
a determination by the Company, excluding IPSA, that it ceases to
have sufficient COH equal to or greater than 1.0 times the largest
salary payroll paid during the preceding 90 days, as adjusted for
any reductions in force. COH will be computed at the end of each
calendar month (or, in the case of the certificate delivered on
August 11, 2017, with respect to July 2017) and equal to the
average COH for that month. For purposes of clarity, this payroll
amount is exclusive of any severance, bonus or commission payments
made but shall include payroll taxes on salary. The Company’s
(i) failure to timely provide Holder with a certification pursuant
to this section or (ii) failure to provide a certification pursuant
to this section that is accurate in all respects shall constitute
an “Event of Default” pursuant to Section
4(h).

 

16. Registration
Rights.

 

(a) At any time on or
prior to December 31, 2017, the Company shall file a registration
statement covering the resale of the Conversion Shares by the
Holder. The Company shall use its commercially reasonable efforts
to cause the registration statement to be declared effective by the
Commission as promptly as possible after the filing thereof and
shall use commercially reasonable efforts to keep the registration
statement continuously effective under the Securities Act until the
earlier of (i) the date that all securities covered by such
registration statement have been sold or may be sold without volume
or manner-of-sale restrictions pursuant to Rule 144 and without the
requirement for the Company to be in compliance with the current
public information requirement under Rule 144 or (ii) August 10,
2022. The Company shall notify the Purchasers in writing promptly
(and in any event within two business days) after receiving
notification from the Commission that the Registration Statement
has been declared effective.

 

(b) The Company may, by
written notice to Holder, suspend sales under the registration
statement after the effective date thereof and/or require that
Holder immediately cease the sale of shares of Common Stock
pursuant thereto and/or defer the filing of the registration
statement if the Company is engaged in a material merger,
acquisition or sale or any other pending development that the
Company believes may be material, and the Board of Directors
determines in good faith, by appropriate resolutions, that, as a
result of such activity, (A) it would be materially detrimental to
the Company (other than as relating solely to the price of the
Common Stock) to maintain the registration statement at such time
or (B) it is in the best interests of the Company to suspend sales
under such registration at such time. Upon receipt of such notice,
Holder agrees to immediately discontinue any sales of the
Conversion Shares pursuant to the registration statement until
Holder is advised in writing by the Company that the current
prospectus or amended prospectus, as applicable, may be used. In no
event, however, shall this right be exercised to suspend sales
beyond the period during which (in the good faith determination of
the Board of Directors) the failure to require such suspension
would be materially detrimental to the Company. The Company’s
rights under this Section 16(b) may be exercised for a period of no
more than 20 business days at a time with a subsequent permitted
trading window of at least 90 business days, and not more than two
times in any twelve-month period. Immediately after the end of any
suspension period under this Section 16(b), the Company shall take
all necessary actions (including filing any required supplemental
prospectus) to restore the effectiveness of the registration
statement and the ability of Holder to publicly resell the
Conversion Shares pursuant to the effective registration
statement.

 

 

8

 

 

(c) All expenses, other
than underwriting discounts and commissions relating to the
Conversion Shares and the fees and disbursements of any counsel for
Holder, incurred in connection with registrations, filings or
qualifications pursuant to Section 16 for Holder, including
(without limitation) all registration, filing and qualification
fees, printers’ and accounting fees, fees and disbursements
of counsel for the Company shall be borne by the
Company.

 

[Remainder
of Page Intentionally Left Blank]

 

9

 

The
Company has caused this Note to be issued as of the date first
written above.

 

COMPANY:

 

 

 

	

 

	
ROOT9B
HOLDINGS, INC.

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
/s/ 

	

 

	

 

	

 

	
William
Hoke

	

 

	

 

	

 

	

Chief Financial
Officer

	

 

 

AGREED TO AND ACCEPTED:

 

[●]

 

 

 

 

 

 

Address:

 

 

 

 

10

 

 

Exhibit A

 

Joinder
to Security Agreement and Waiver of Secured Convertible Promissory
Notes

 

 

11

 

 

 

Schedule I

 

	

1.            Dan
Wachtler

	

$900,000

	

2.            Joseph
J. Grano, Jr.

	

$100,000

	

3.            Gable
Family Trust

	

$600,000

	

4.            Guerino
Ciampi

	

$50,000

	

5.            Quad
Select Portfolio A, LLC

	

$50,000

	

6.            Bay
Pond Partners, L.P.

	

$17,200

	

7.            Bay
Pond Investors (Bermuda) L.P.

	

$15,700

	

8.            Wolf
Creek Partners, L.P.

	

$3,900

	

9.            Ithan
Creek Master Investors (Cayman) L.P.

	

$63,200

 

 
12Blueprint

Exhibit 10.5

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
WARRANT NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN
OPINION OF COUNSEL TO THE REGISTERED HOLDER (IF REQUESTED BY THE
COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR
ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.

 

	

Warrant No.:
2017-_____

	

Number
of Shares: ________

	

Date
of Issuance: August 10, 2017

	

(subject to
adjustment)

 

 

______________________________________________________________________________________

 

ROOT9B HOLDINGS, INC.

A Delaware Corporation

______________________________________________________________________________________

 

Warrant

 

root9B
Holdings, Inc., a Delaware corporation (the “Company”),
for value received, hereby certifies that _____________ (the “Initial
Holder”), or its registered assigns (the Initial
Holder or such registered assigns shall be referred to as the
“Registered
Holder”), is entitled, subject to the terms set forth
below, to purchase from the Company at any time on or after the
Exercise Date (as hereinafter defined) and on or before the
Expiration Date (as hereinafter defined), in whole or in part,
________ shares (as adjusted
from time to time pursuant to the provisions of this Warrant) of
the Company’s common stock, $0.001 par value per share
(“Common
Stock”), at an Exercise Price equal to $10.00 per
share (the “Exercise
Price”). The shares purchasable upon exercise of this
Warrant are sometimes hereinafter referred to as the
“Warrant
Stock”. “Exercise
Date” means any date on or after December 31, 2017
(the “Initial Exercise
Date”) and prior to the Expiration Date on which the
Registered Holder elects by written notice to the Company to
exercise this Warrant. This Warrant is one of a series of Warrants
(the “August 2017
Warrants”) issued in connection with the issuance by
the Company to the Initial Holder of a secured convertible
promissory note due 2019.

 

1. Exercise.

 

(a) Manner
of Exercise. This Warrant may
be exercised by the Registered Holder, in whole or in part with the
purchase/exercise form appended hereto as Exhibit A (the
“Notice of
Exercise”) duly executed by such Registered Holder or
by such Registered Holder’s duly authorized attorney, at the
principal office of the Company, or at such other office or agency
as the Company may designate in writing, accompanied by payment in
full of the Exercise Price payable in respect of the number of
shares of Warrant Stock purchased upon such exercise. The Exercise
Price may be paid by cash, check, or wire transfer in immediately
available funds.

 

(b) Effective
Time of Exercise. Each exercise of
this Warrant shall be deemed to have been effected immediately
prior to the close of business as of the date the Warrant has been
exercised pursuant to a Notice of Exercise, with payment to the
Company of the Exercise Price and all transfer taxes required to be
paid by the Holder, if any, prior to the issuance of such shares,
having been paid. At such time, the person or persons in whose name
or names any certificates for Warrant Stock shall be issuable upon
such exercise as provided in Section 1(c) below shall be deemed to
have become the holder or holders of record of the Warrant Stock
represented by such certificates.

 

(c) Delivery
to Holder. As soon as
practicable after the exercise of this Warrant, in whole or in
part, and in any event within ten (10) calendar days thereafter,
the Company at its expense will cause to be issued in the name of,
and delivered to, the Registered Holder, or as such Registered
Holder (upon payment by such Registered Holder of any applicable
transfer taxes) may direct, certificates for Warrant Stock
purchased hereunder which shall be transmitted by the
Company’s transfer agent to the Registered Holder by (i)
crediting the account of the Registered Holder’s broker with
the Depository Trust Company through its Deposit Withdrawal Agent
Commission (“DWAC”)
system if the Company is then a participant in such system and
either (A) there is an effective registration statement permitting
the resale of the Warrant Stock by the Registered Holder or (B) the
Warrant Stock is eligible for resale without volume or
manner-of-sale limitations pursuant to Rule 144 of the Act, as
amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC having substantially the same effect
as such Rule (“Rule
144”), or (ii) if the conditions specified in (i)(A)
or (i)(B) are not satisfied, by physical delivery to the address
specified by the Registered Holder in the Notice of
Exercise.

 

 

 

 

(d) Delivery of New Warrants Upon
Exercise. If this Warrant shall have been exercised in part,
the Company shall, at the request of the Registered Holder, at the
time of delivery of the certificate or certificates representing
the Warrant Stock, deliver to the Registered Holder a new Warrant
evidencing the rights of Registered Holder to purchase the
unpurchased Warrant Stock called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.
The Registered Holder shall not be required to deliver the original
of this Warrant in order to effect an exercise
hereunder.

 

(e) Limitations on Exercise. This
Warrant shall not be exercisable by the Registered Holder to the
extent (but only to the extent) that, following exercise, the
Registered Holder or any of its Affiliates would beneficially own
in excess of 9.99% (the “Maximum
Percentage”) of the Outstanding Shares of Common
Stock. No prior limitation on the number of shares of Common Stock
subject to this Warrant or the inability to exercise this Warrant
pursuant to this Section 1(e) shall have any effect on the
applicability of the provisions of this Section 1(e) with respect
to any subsequent determinations of the number of shares subject to
a Warrant or the exercisability hereof. For the purpose of this
Section 1(e), beneficial ownership and all determinations and
calculations (including, without limitation, with respect to
calculations of percentage ownership) shall be determined in
accordance with Section 13(d) of the Exchange Act. For
clarification, the foregoing calculation of beneficial ownership
shall take into account all securities which give rise to
beneficial ownership by the Registered Holder or its Affiliates of
such Common Stock under such rules and regulations and not solely
this Warrant. The provisions of this Section 1(e) shall be
implemented in a manner otherwise than in strict conformity with
the terms of this Section 1(e) in order to correct this Section
1(e) or any portion hereof which may be defective or inconsistent
with the intended Maximum Percentage beneficial ownership
limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such Maximum
Percentage limitation. The limitations contained in this Section
1(e) shall apply to a successor holder of this Warrant.
“Affiliate”
means, with respect to any Person, any other Person that, directly
or indirectly through one or more intermediaries, Controls, is
controlled by or is under common control with such Person, as such
terms are used in and construed under Rule 405 under the Securities
Act. With respect to the Registered Holder, any investment fund or
managed account that is managed on a discretionary basis by the
same investment manager Registered Holder will be deemed to be an
Affiliate of Registered Holder. “Person”
means any individual, firm, corporation, partnership, limited
liability company, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or
political subdivision thereof, or other entity of any kind and
includes any successor (by merger or otherwise) of such entity.
“Outstanding Shares
of Common Stock” means, as of any particular
measurement time, the sum of (i) the total number of outstanding
shares of Common Stock of the Company as of such time, and (ii) the
total number of shares of Common Stock which Registered Holder has
the right to acquire beneficial ownership of within sixty days of
such measurement time (to the extent not included in (i)),
including but not limited to any right to acquire shares of Common
Stock through the exercise of any option, warrant or right
(including this Warrant) or through the conversion of another
security. “Exchange
Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Securities and
Exchange Commission thereunder.

 

2. Adjustments.

 

(a) Stock
Splits and Dividends. If outstanding
shares of the Company’s Common Stock shall be subdivided into
a greater number of shares or a dividend in Common Stock shall be
paid in respect of Common Stock, then the Exercise Price in effect
immediately prior to such subdivision or at the record date of such
dividend shall simultaneously with the effectiveness of such
subdivision or immediately after the record date of such dividend
be proportionately reduced. If outstanding shares of Common Stock
shall be combined into a smaller number of shares, then the
Exercise Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination,
be proportionately increased. When any adjustment is required to be
made in the Exercise Price, the number of shares of Warrant Stock
purchasable upon the exercise of this Warrant shall be changed to
the number determined by dividing (i) an amount equal to the
number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Exercise
Price in effect immediately prior to such adjustment, by
(ii) the Exercise Price in effect immediately after such
adjustment.

 

 

2

 

 

(b) Reclassification,
Etc. As a condition of
the consummation of any Fundamental Transaction occurring at any
time while any portion of this Warrant remains outstanding, the
Company shall cause any Successor Entity in such Fundamental
Transaction to assume in writing all of the obligations of the
Company under this Warrant in accordance with the provisions of
this Section 2(b) pursuant to written agreements in form and
substance reasonably satisfactory to the Holder, including
agreements to 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,
including, without limitation, which is, at the time of
consummation of the Fundamental Transaction, exercisable into a
corresponding number of shares of capital stock of the Successor
Entity equivalent to the shares of Common Stock acquirable and
receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such
Fundamental Transaction, and with an exercise price equal to the
Exercise Price (but taking into account the relative value of the
shares of Common Stock pursuant to such Fundamental Transaction and
the value of such shares of capital stock, such adjustments to the
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). Upon the consummation of each Fundamental
Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of the applicable
Fundamental Transaction, the provisions of this Warrant referring
to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this
Warrant with the same effect as if such Successor Entity had been
named as the Company herein. Notwithstanding anything to the
contrary, the Company or any Successor Entity shall, at the
Holder’s option, exercisable at any time concurrently with,
or within 30 days after, the consummation of the Fundamental
Transaction, (a) purchase all or any portion of 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 such
Warrant on the date of such Fundamental Transaction or (b) deliver,
in exchange for surrender of this Warrant, the same amount and kind
of securities, cash or property as such Holder would have been
entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundament
Transaction, the holder of the number of shares of Warrant Stock
then issuable upon exercise in full of the Warrant (without regard
to any limitations on the exercise of this Warrant).

 

"Fundamental
Transaction" means that the Company shall, directly or
indirectly, in one or more related transactions, (i) consolidate or
merge with or into (whether or not the Company is the surviving
corporation) another Person or Persons, if the holders of the
Voting Stock (not including any shares of Voting Stock held by the
Person or Persons making or party to, or associated or affiliated
with the Persons making or party to, such consolidation or merger)
immediately prior to such consolidation or merger shall hold or
have the right to direct the voting of less than 50% of the Voting
Stock or such voting securities of such other surviving Person
immediately following such transaction, or (ii) sell, assign,
transfer, convey or otherwise dispose of all or substantially all
of the properties or assets of the Company (other than the sale of
IPSA International, Inc., the Company’s wholly-owned
subsidiary (“IPSA”),
or any assets related to IPSA) to another Person, or (iii) allow
another Person to make a purchase, tender or exchange offer that is
accepted by the holders of more than the 50% of the outstanding
shares of Voting Stock of the Company (not including any shares of
Voting Stock held by the Person or Persons making or party to, or
associated or affiliated with the Persons making or party to, such
purchase, tender or exchange offer) (other than the acquisition of
the Voting Stock of IPSA), or (iv) consummate a stock purchase
agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme
of arrangement) with another Person whereby such other Person
acquires more than the 50% of the outstanding shares of Voting
Stock of the Company (not including any shares of Voting Stock held
by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to,
such stock purchase agreement or other business combination) (other
than a sale of the Voting Stock of IPSA), (v) reorganize,
recapitalize or reclassify its Common Stock (other than pursuant to
the Amendment, if approved) or (vi) any "person" or "group" (as
these terms are used for purposes of Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) is or shall become
the "beneficial owner" (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended), directly or
indirectly, of 50% of the aggregate ordinary voting power
represented by issued and outstanding Common Stock.

 

 

3

 

 

“Successor
Entity” means the Person formed by, resulting from or
surviving any Fundamental Transaction or the Person with which such
Fundamental Transaction shall have been entered into.

 

"Voting
Stock" of a Person means capital stock of such Person of the
class or classes pursuant to which the holders thereof have the
general voting power to elect, or the general power to appoint, at
least a majority of the board of directors, managers or trustees of
such Person (irrespective of whether or not at the time capital
stock of any other class or classes shall have or might have voting
power by reason of the happening of any contingency).

 

(c) Adjustment Certificate. When
any adjustment is required to be made in the Warrant Stock or the
Exercise Price pursuant to this Section 2, the Company shall
promptly mail to the Registered Holder a certificate setting forth
(i) a brief statement of the facts requiring such adjustment,
(ii) the Exercise Price after such adjustment and
(iii) the kind and amount of stock or other securities or
property into which this Warrant shall be exercisable after such
adjustment.

 

3. Transfers.

 

(a) Unregistered
Security. Each Registered
Holder acknowledges that this Warrant and the Warrant Stock have
not been registered under the Securities Act of 1933, as amended
(the “Act”),
and agrees not to sell, pledge, distribute, offer for sale,
transfer or otherwise dispose of this Warrant or any Warrant Stock
issued upon its exercise in the absence of (i) an effective
registration statement under the Act as to this Warrant or such
Warrant Stock and registration or qualification of this Warrant or
such Warrant Stock under any applicable U.S. federal or state
securities law then in effect or (ii) an opinion of counsel,
reasonably satisfactory to the Company, that such registration or
qualification is not required. Each certificate or other instrument
for Warrant Stock issued upon the exercise of this Warrant shall
bear a legend substantially to the foregoing effect.

 

(b) Transferability.
Subject to the provisions of Section 3(a) hereof, this
Warrant and all rights hereunder are transferable, in whole or in
part, upon surrender of the Warrant with a properly executed
assignment (in the form of Exhibit B
hereto) at the principal office of the Company. The Company shall,
upon receipt of a transfer notice and appropriate documentation,
register any transfer on the Company’s warrant register;
provided, however, that the Company may require, as a condition to
such transfer, an opinion reasonably satisfactory to the Company
that said transfer does not require registration pursuant to one or
more exemptions provided under the Act.

 

(c) Warrant
Register. The Company will
maintain a register containing the names and addresses of the
Registered Holders of this Warrant. Until any transfer of this
Warrant is made in the warrant register, the Company may treat the
Registered Holder of this Warrant as the absolute owner hereof for
all purposes; provided, however, that if this Warrant
is properly assigned in blank, the Company may (but shall not be
required to) treat the bearer hereof as the absolute owner hereof
for all purposes, notwithstanding any notice to the contrary. Any
Registered Holder may change such Registered Holder’s address
as shown on the warrant register by written notice to the Company
requesting such change.

 

4. No Impairment. The Company will
not, by amendment of its charter or through reorganization,
consolidation, merger, dissolution, sale of assets 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 action as may be necessary or
appropriate in order to protect the rights of the holder of this
Warrant against impairment. Notwithstanding any other provision of
this Agreement to the contrary (including by way of implication),
the Company (a) will not increase the par value of any shares of
Common Stock receivable on the exercise of any Warrant above the
amount payable therefor on such exercise and (b) will take all such
action as may be necessary or appropriate so that the Company may
validly and legally issue fully paid and nonassessable shares of
Common Stock on the exercise of any Warrant. The Company covenants
and agrees that it shall not, without the prior written consent of
the Registered Holder, enter into or agree to become subject to any
term, condition, provision or agreement that would restrict in any
material way the performance of the Company’s obligations
under this Agreement. The Company represents to each Holder that
the Company is not subject to or bound by any such term, condition,
provision or agreement as of the date hereof.

 

 

4

 

 

5. Termination. This
Warrant (and the right to purchase securities upon exercise hereof)
shall terminate five (5) years from the date of issuance of this
Warrant (the “Expiration
Date”).

 

6. Notices of Certain
Transactions. In case:

 

(a) the Company shall
take a record of the holders of its Common Stock (or other stock or
securities at the time deliverable upon the exercise of this
Warrant) for the purpose of entitling or enabling them to receive
any dividend or other distribution, or to receive any right to
subscribe for or purchase any shares of stock of any class or any
other securities, or to receive any other right, to subscribe for
or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

 

(b) of any
reclassification of the capital stock of the Company,
or

 

(c) of the voluntary or
involuntary dissolution, liquidation or winding-up of the Company
((a), (b) and (c) of this Section 6 being referred to herein as a
“Liquidation
Event”), then, and in each such case, the Company will
mail or cause to be mailed to the Registered Holder of this Warrant
a notice specifying, as the case may be, (i) the date on which
a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such
dividend, distribution or right, or (ii) the effective date on
which such reclassification, dissolution, liquidation or winding-up
is to take place, and the time, if any is to be fixed, as of which
the holders of record of Common Stock (or such other stock or
securities at the time deliverable upon such reclassification,
dissolution, liquidation or winding-up) are to be determined. Such
notice shall be mailed at least ten (10) days prior to the record
date or effective date for the event specified in such notice.
Failure to so notify a Registered Holder shall not invalidate any
such action.

 

7. Reservation of
Stock.

 

(a) Notwithstanding
anything herein to the contrary, the Registered Holder acknowledges
and agrees that this Warrant may not be exercised if, at the time
of such exercise, the Company does not have a sufficient number of
authorized shares of Common Stock pursuant to the Company’s
Certificate of Incorporation (the “Certificate of
Incorporation”), as in effect as of such date, to
cover such issuance. The Company will at all times reserve and keep
available out of its authorized but unissued stock, solely for the
issuance and delivery upon the exercise of this Warrant and other
similar Warrants, and free of preemptive rights, such number of its
duly authorized shares of Common Stock as from time to time shall
be issuable upon the exercise in full of this Warrant and other
similar Warrants without regard to any limitation on exercise set
forth herein or therein. All of the shares of Common Stock issuable
upon exercise of this Warrant and other similar Warrants, when
issued and delivered in accordance with the terms hereof and
thereof, will be duly authorized, validly issued, fully paid and
non-assessable, subject to no lien or other encumbrance other than
restrictions on transfer arising under applicable securities laws
and restrictions imposed by Section 3 hereof.

 

(b) [Reserved.]

 

8. Exchange of Warrants. Upon the
surrender by the Registered Holder of any Warrant or Warrants,
properly endorsed, to the Company at the principal office of the
Company, the Company will, subject to the provisions of Section 3
hereof, issue and deliver to or upon the order of such Registered
Holder, at the Company’s expense, a new Warrant or Warrants
of like tenor, in the name of such Registered Holder or as such
Registered Holder (upon payment by such Registered Holder of any
applicable transfer taxes) may direct, calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock
called for on the face or faces of the Warrant or Warrants so
surrendered.

 

9. Replacement of Warrants. Upon
receipt of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant and (in the
case of loss, theft or destruction) upon delivery of an indemnity
agreement (with surety if reasonably required) in an amount
reasonably satisfactory to the Company, or (in the case of
mutilation) upon surrender and cancellation of this Warrant, the
Company will issue, in lieu thereof, a new Warrant of like
tenor.

 

 

5

 

 

10. Notices.
All notices, demands, requests,
consents, approvals, and other communications required or permitted
hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid,
(iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, electronic mail or
facsimile, addressed as set forth below or to such other address as
such party shall have specified most recently by written notice.
Any notice or other communication required or permitted to be given
hereunder shall be deemed effective (a) upon hand delivery,
electronic mail or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, if
sent by electronic mail with confirmed receipt, at the address or
number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the
first business day following such delivery (if delivered other than
on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the
date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur.

 

If to the
Company:          

root9B Holdings,
Inc.

102 N.
Cascade Avenue, Suite 220

Colorado Springs,
CO 80919

Attn:
Chief Financial Officer

If to the Registered
Holder: 

At the address
provided by the Registered Holder.

 

11. No Rights as Stockholder. Until
the exercise of this Warrant, the Registered Holder of this Warrant
shall not have or exercise any rights by virtue hereof as a
stockholder of the Company, and this Warrant shall not impose on
the Registered Holder any obligation to purchase any securities or
impose any liability on such Registered Holder as a stockholder
whether such obligation or liabilities are asserted by the Company
or creditors of the Company.

 

12. Representations of Registered
Holder. The Registered Holder hereby represents and
acknowledges to the Company that:

 

(a) It understands that
this Warrant and the Warrant Stock will be “restricted securities” as
such term is used in the rules and regulations under the Act and
that such securities have not been and will not be registered under
the Act or any state securities law, and that such securities must
be held indefinitely unless registration is effected or transfer
can be made pursuant to appropriate exemptions;

 

(b) the Registered
Holder has read, and fully understands, the terms of this Warrant
set forth on its face and the attachments hereto, including the
restrictions on transfer contained herein;

 

(c) the Registered
Holder is purchasing for investment for its own account and not
with a view to or for sale in connection with any distribution of
this Warrant and the Warrant Stock and it has no intention of
selling such securities in a public distribution in violation of
the federal securities laws or any applicable state securities
laws; provided that nothing contained herein will prevent the
Registered Holder from transferring such securities in compliance
with the terms of this Warrant and the applicable federal and state
securities laws; and

 

(d) the Company may
affix the following legend (in addition to any other legend(s), if
any, required by applicable state corporate and/or securities laws)
to certificates for shares issued upon exercise of this
Warrant:

 

“These
securities have not been registered under the Securities Act of
1933, as amended. They may not be sold, offered for sale, pledged
or hypothecated in the absence of a registration statement in
effect with respect to the securities under such Act or an opinion
of counsel satisfactory to the Company that such registration is
not required or unless sold pursuant to Rule 144 of such
Act.”

 

 

6

 

 

13. No Fractional Shares. No
fractional shares will be issued in connection with any exercise
hereunder. In lieu of any fractional shares which would otherwise
be issuable, the Company shall pay cash equal to the product of
such fraction multiplied by the fair market value of one such share
on the date of exercise, as determined in good faith by the
Company’s Board of Directors.

 

14. Securities Law Reporting
Requirements. The Company covenants and agrees that it will
comply with the reporting requirements of Sections 13 and 15(d) of
the Exchange Act and will comply with all other public information
reporting requirements of the Securities and Exchange Commission
(including Rule 144 promulgated under the Securities Act) from time
to time in effect and applicable to the Company and relating to the
availability of an exemption from the Securities Act for the sale
of restricted securities.

 

15. Amendment or Waiver. Any term
of this Warrant may be amended or waived upon written consent of
the Company and the Registered Holder. No consideration shall be
offered or paid to the Registered Holder or to the initial holder
or registered assigns of any warrant to purchase Common Stock
(other than this Warrant) issued by the Company pursuant to the
Purchase Agreement (the "Other Warrants") to amend or consent to a
waiver or modification of any provision of this Warrant and/or the
Other Warrants unless the same consideration is also offered to the
Registered Holder and all initial holders or registered assigns of
the Other Warrants.

 

16. Entire
Agreement. This Warrant
constitutes the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other
written or oral agreements relating to the subject matter hereof
existing between the parties hereto are expressly
canceled.

 

17. Headings. The headings in this
Warrant are for purposes of reference only and shall not limit or
otherwise affect the meaning of any provision of this
Warrant.

 

18. Governing Law. All questions
concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of
Delaware, without regard to the principles of conflicts of law
thereof. Each party agrees that all proceedings concerning the
interpretations, enforcement and defense of the transactions
contemplated by this Agreement shall be commenced exclusively in
courts of the State of Delaware (the “Delaware
Courts”). Each party hereto hereby irrevocably submits
to the exclusive jurisdiction of the Delaware Courts for the
adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any
proceeding, any claim that it is not personally subject to the
jurisdiction of any such Delaware Court, or that such proceeding
has been commenced in an improper or inconvenient forum. Each party
hereto hereby irrevocably waives personal service of process and
consents to process being served in any such proceeding by mailing
a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

19. More Favorable Terms. So long
as this Warrant remains outstanding, if after the date hereof the
Company amends the terms of any of the August 2017 Warrants or the
warrants issued in connection with the Securities Purchase
Agreement, dated as of September 9, 2016, as amended, by and among
the Company and the investors referred to therein (the
“2016 SPA
Warrants” and, together with the August 2017 Warrants,
the “Secured
Warrants”) and such amendment to the Secured Warrants
has terms and conditions that are, individually or in the
aggregate, more favorable than the terms and conditions granted to
the Holder hereunder, then this Warrant shall be deemed to
immediately be amended as of the date of such Secured Warrant
amendment to reflect substantially equivalent terms and conditions
to the Holder hereunder. For purposes of this Section 19, the
determination regarding whether any such terms and conditions are
more favorable than those granted hereunder shall be made by the
Company’s Board of Directors in its reasonable good faith
judgment.

 

 

7

 

 

20. Registration
Rights.

 

(a) At any time on or
prior to December 31, 2017, the Company shall file a registration
statement covering the resale of the Warrants Stock by the Holder.
The Company shall use its commercially reasonable efforts to cause
the registration statement to be declared effective by the
Securities and Exchange Commission as promptly as possible after
the filing thereof and shall use commercially reasonable efforts to
keep the registration statement continuously effective under the
Securities Act until the earlier of (i) the date that all
securities covered by such registration statement have been sold or
may be sold without volume or manner-of-sale restrictions pursuant
to Rule 144 and without the requirement for the Company to be in
compliance with the current public information requirement under
Rule 144 or (ii) the Expiration Date. The Company shall notify the
Purchasers in writing promptly (and in any event within two
business days) after receiving notification from the Securities and
Exchange Commission that the Registration Statement has been
declared effective.

 

(b) The Company may, by
written notice to Holder, suspend sales under the registration
statement after the effective date thereof and/or require that
Holder immediately cease the sale of shares of Common Stock
pursuant thereto and/or defer the filing of the registration
statement if the Company is engaged in a material merger,
acquisition or sale or any other pending development that the
Company believes may be material, and the Board of Directors
determines in good faith, by appropriate resolutions, that, as a
result of such activity, (A) it would be materially detrimental to
the Company (other than as relating solely to the price of the
Common Stock) to maintain the registration statement at such time
or (B) it is in the best interests of the Company to suspend sales
under such registration at such time. Upon receipt of such notice,
Holder agrees to immediately discontinue any sales of Warrant Stock
pursuant to the registration statement until Holder is advised in
writing by the Company that the current prospectus or amended
prospectus, as applicable, may be used. In no event, however, shall
this right be exercised to suspend sales beyond the period during
which (in the good faith determination of the Board of Directors)
the failure to require such suspension would be materially
detrimental to the Company. The Company’s rights under this
Section 20(b) may be exercised for a period of no more than 20
business days at a time with a subsequent permitted trading window
of at least 90 business days, and not more than two times in any
twelve-month period. Immediately after the end of any suspension
period under this Section 20(b), the Company shall take all
necessary actions (including filing any required supplemental
prospectus) to restore the effectiveness of the registration
statement and the ability of Holder to publicly resell the Warrant
Stock pursuant to the effective registration
statement.

 

(c) All expenses, other
than underwriting discounts and commissions relating to the Warrant
Stock and the fees and disbursements of any counsel for Holder,
incurred in connection with registrations, filings or
qualifications pursuant to Section 20 for Holder, including
(without limitation) all registration, filing and qualification
fees, printers’ and accounting fees, fees and disbursements
of counsel for the Company shall be borne by the
Company.

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

8

 

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

 

ROOT9B
HOLDINGS, INC. , a Delaware corporation

 

Signed:                                                          

By:                 

Title:

 

 

Company
Address:           
root9B Holdings, Inc.

102 N.
Cascade Avenue, Suite 220

Colorado Springs,
CO 80919

Attn:
Chief Financial Officer

 

 

 

 

 

 

EXHIBIT A

 

PURCHASE/EXERCISE FORM

 

	

To:
ROOT9B HOLDINGS, INC.

	
 

	

Dated:_________________

 

The
undersigned holder, pursuant to the provisions set forth in the
attached Warrant No. ___, hereby exercises the right to purchase
_________________ shares of Common Stock covered by such Warrant.
Capitalized terms used herein and not otherwise defined shall have
the respective meanings set forth in the Warrant.

 

1.           Form
of Exercise Price. The undersigned holder intends that
payment of the Exercise Price shall be made as:

 

____________ 

a
“Cash
Exercise” with respect to _________________ shares of
Warrant Stock; and

 

2.           Payment
of Exercise Price. The Registered Holder shall pay the
aggregate Exercise Price in the sum of $___________________ to the
Company in accordance with the terms of the Warrant.

 

The
undersigned acknowledges that it has reviewed the representations
and warranties contained in Section 13 of the Warrant and by its
signature below hereby makes such representations and warranties to
the Company.

 

Signature:                                                                    

 

Name
(print):                                                              

 

Title (if
applic.)                                                
          

 

Company (if
applic.): ________________________

 

 

 

 

 

EXHIBIT B

 

ASSIGNMENT FORM

 

FOR
VALUE RECEIVED, _________________________________________ hereby
sells, assigns and transfers all of the rights of the undersigned
under the attached Warrant No. ___ with respect to the number of
shares of Common Stock covered thereby set forth below,
to:

 

	

Name of Assignee

	

Address/Fax Number

	

No. of Shares

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

	

Dated:

	

Signature:                                                       

	
 

	
 

	
 

	

Witness:
_______________________

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