Document:

EXHIBIT 10.34

 

 

Separation
and General Release Agreement

 

This Separation
and General Release Agreement (the "Agreement") is made and entered into, dated for reference purposes
as of February 10, 2017 (the “Agreement Date”), and effective as of the "Effective Date" identified
in Section 8.7, below, by and between EnerJex Resources, Inc., a Nevada
corporation (the "Company"), and Robert G. Watson, Jr. ("Employee"),
with reference to the following facts:

 

Recitals:

  

		A.	Employee has served as Chief Executive Officer of the
Company for more than six (6) years, and in that capacity voluntarily agreed to certain reductions in compensation in order to
assist the Company in responding to limited cash flow.

		 	 

		 	 

		B.	Employee has voluntarily resigned as an employee, Chief
Executive Officer, and a member of the board of directors of the Company.

		 	 

		 	 

		C.	The parties have agreed to execute this Agreement in
order to confirm the termination of Employee's employment with the Company, set forth the terms on which such salary reduction
amounts shall be paid to the Employee as Separation and Consulting Consideration that the Company shall provide to Employee, and
memorialize certain releases and additional agreements between the parties.

 

Agreements:

 

Now,
Therefore, the parties hereto, intending to be legally bound, do hereby agree as follows:

 

		1.	Final Employment
Date

 

1.1              
Confirmation. The parties acknowledge and agree that effective
as of the Agreement Date (the "Termination Date"), Employee voluntarily resigned as an employee, Chief Executive
Officer, and member of the Board of Directors of the Company.

 

1.2              
Receipt of Final Wages. Employee acknowledges and agrees that he
has received payment in full of all accrued wages (including payment for accrued and unused vacation time, if any, subject to the
proviso at the end of Section 2.1, below), expense reimbursements, and all other amounts due from the Company to Employee
with respect to all periods ended on and prior to the Effective Date.

 

     

     

    

 

		2.	Separation
and Consulting Consideration

 

2.1              
Consideration. Provided that this Agreement becomes effective pursuant
to Section 8.7, below, and that Employee discharges his obligations hereunder, the Company agrees that, in order to assist
Employee in his transition to new employment and in consideration of Employee’s past services, his services pursuant to this
Agreement, and Employee’s other covenants hereunder, the Company shall pay to Employee the sum of One Hundred Ten Thousand
Dollars ($110,000) (the "Separation and Consulting Consideration"), which shall be reduced by applicable federal
and state tax withholding. The Separation and Consulting Consideration shall be paid as follows (provided that, in any event,
shall be paid in full on or before December 31, 2017):

 

(a)               
Commencing February 28, 2017, and continuing on the last day of each of the succeeding calendar months, the Company
shall pay to Consultant Five Thousand Dollars ($5,000.00); and

 

(b)              
On the date on which the Company sells or otherwise disposes of all of the assets it currently owns in the States of
Colorado and Texas, the Company shall pay to Consultant the remainder of the Separation and Consulting Consideration;

 

provided, however,
if any payment is not timely made on or before the due date therefor and the Company thereafter fails to make such payment within
two (2) business days following written demand therefor, then (a) all remaining payments of the Separation and Consulting Consideration
thereupon will be accelerated and immediately due, and (b) Employee may assert against the Company a claim for payment of wages
for up to one (1) month's accrued and unpaid vacation time.

 

2.2              
Purpose. Employee acknowledges and agrees that the Separation and
Consulting Consideration is being furnished in order to assist Employee in his transition to new employment and in consideration
of Employee's execution of this Agreement, and that the furnishing of such Separation and Consulting Consideration is not intended
and shall not be construed for any purpose as an admission by the Company of any liability to Employee by reason of the termination
of his employment with the Company.

 

		3.	Other Agreements

 

3.1              
Return of Property. Employee represents, warrants, covenants, and
agrees that:

 

(a)               
Company Property. He has returned to the Company all of the Company
Property in Employee's possession or custody. Employee further covenants and agrees that if he hereafter discovers any other Company
Property in the possession or custody of Employee, then Employee immediately shall return such Company Property to the Chief Financial
Officer of the Company. For purposes of this Agreement, the term "Company Property" shall mean all items of tangible
and intangible property owned by or otherwise belonging to the Company, including but not limited to equipment, records, paper
and electronic files, memoranda, credit cards, keys, confidential and proprietary information, computer files, passwords, and other
physical or personal property and all copies thereof in any form. Company Property shall not include the laptop computer that the
Employee has been using while employed by the Company and it is expressly agreed that Employee may retain and use such laptop.

 

(b)              
Employee Property. The Company acknowledges that Employee has certain
items of personal property that have been located at the Company's premises or been in the possession or custody of the Company
and that the Employee agrees to leave such personal property in place until such time as Employee has requested its removal at
Employee’s cost.

 

     

     

    

 

3.2              
Representations. Employee represents and warrants to the Company
that:

 

(a)               
Liabilities. Except for obligations and liabilities incurred by
the Company in the ordinary course of Employee's duties as the Company's Chief Executive Officer and in amounts within Employee's
authority and consistent with the Company's past practice, Employee has not knowingly caused or created any material liabilities
in the name of the Company or any of its affiliates.

 

(b)              
Claims. Except as set forth on Schedule 3.2(b), Employee
is not aware of any pending or has received any written notice of any threatened claims by any party which can or may materially
charge or burden the Company, any affiliate of the Company, or any of their respective assets, except for (i) claims by trade vendors
arising in the ordinary course of the Company's business in usual and customary amounts consistent with the Company's historical
experiences, and (ii) such other claims as have been disclosed in writing to the Chief Financial Officer or its board of directors.

 

3.3              
Condition Subsequent. If Employee breaches any of his representations,
warranties, covenants, or agreements set forth in this Agreement, then the Company shall (a) not have any obligation to provide
any further Separation and Consulting Consideration that has not been provided as of the date on which the Company discovers such
breach, and (b) be entitled to recover or rescind the delivery of any portion of the Separation and Consulting Consideration previously
provided by the Company. This remedy shall be in addition to all other remedies the Company may have for any such breach.

 

3.4              
Review and Revocation. Employee acknowledges and agrees that:

 

(a)               
Review. This Agreement was first presented to him by the Company
on January 20, 2017, and Employee has been provided a period of twenty-one (21) days to review and consider this Agreement before
signing it. Employee understands that he may use as much of such 21-day period as he wishes prior to signing, and to the extent
Employee has elected to execute this Agreement prior to the expiration of such 21-day period, Employee has done so at his own initiative.

 

(b)              
Revocation. Employee may revoke this Agreement within seven (7)
days after signing it by delivering a written notice of revocation to the Company within seven (7) days after Employee signs this
Agreement. If Employee so revokes this Agreement within that period of time, then no party shall have any further rights or obligations
under this Agreement (and, thereby, the Company shall not have any obligation to provide the Separation and Consulting Consideration).

 

3.5              
Transition Consulting Services. The parties
agree that the Company will need transition consulting services from Employee in connection with certain matters in which Employee
has been involved during his employment with the Company. Accordingly, in consideration of the covenants of the Company hereunder,
to the extent reasonably requested by the Company from time to time during the earlier of either the closing of the sale by the
Company of the assets that it currently owns in the States of Colorado and Texas or six (6) months following the Agreement Date,
Employee shall:

 

(a)               
Make, execute, and deliver such documents and instruments (e.g., bank signature cards) as may be necessary to
transition operating control of the Company and its assets to successor officers and employees of the Company;

 

(b)              
Assist the Company’s officers and work with the company’s advisors (including but not limited to its petroleum
engineer providing the reserve report for the Company’s assets that will be referenced in the Company’s annual report
on Form 10-K for the period ended December 31, 2016) in connection with their preparation and filing of the Company’s annual
report on Form 10-K for the period ended December 31, 2016;

 

(c)               
Sign such sub-certifications as to factual matters with respect to the operations of the Company during the calendar
year ended December 31, 2016, as may be reasonably requested by the Company in order to support the certifications that the Company’s
officers are required to provide under applicable law in signing the Company’s annual report on Form 10-K for the period
ended December 31, 2016; and

 

(d)              
Attend such meetings, participate in such telephone calls, and respond to such emails and other written inquiries as
may arise from time to time.

 

     

     

    

 

		4.	Nondisclosure
and Non-Circumvention Agreement; Non-Competition; Non-Solicitation.

 

4.1              
Nondisclosure and Non-Circumvention Agreement.
Employee acknowledges that he and the Company previously executed a Nondisclosure and Non-Circumvention Agreement but agrees that
this Agreement shall supersede and replace all prior and contemporaneous agreements and understandings to the extent the same relate
to the matters addressed in this Section 4, including the previously executed Nondisclosure and Non-Circumvention Agreement.

 

4.2              
Non-Competition. Subject to Section 4.4, below, Employee
acknowledges that the nature of the Company's business is such that if Employee were to become employed by, or substantially involved
in, the business of a competitor of the Company during the period of one (1) year following the Agreement Date, then it would be
difficult for Employee not to rely on or use the Company's trade secrets and confidential information in connection with that employment.

 

(a)               
Thus, to avoid the inevitable disclosure of the Company's trade secrets and confidential information, Employee acknowledges
and agrees that his right to receive the Separation and Consulting Consideration shall be conditioned upon Employee not directly
or indirectly engaging in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer,
director or otherwise), or having any ownership interest in or participating in the financing, operation, management or control
of, any person, firm, corporation or business that directly competes with Company or is a customer of the Company and has operations
located within a radius of twenty (20) miles from any property that is leased, owned, or operated by the Company as of the Agreement
Date. If Employee engages, invests, or otherwise participates in any competitive activity described in this Section 4.2,
then the Company shall (i) not have any obligation to provide any further Separation and Consulting Consideration that has not
been provided as of the date on which the Company discovers such activity, and (ii) be entitled to recover or rescind the delivery
of any portion of the Separation and Consulting Consideration previously provided by the Company. This remedy shall be in addition
to all other remedies the Company may have for any such breach.

 

(b)              
Notwithstanding the foregoing, Employee shall not be deemed to be in violation of the foregoing restriction solely by
reason of Employee's owning not more than one percent (1.0%) of the equity securities of any corporation or other business enterprise,
the equity securities of which are listed for trading on a national securities exchange.

 

4.3              
Non-Solicitation. Subject to Section 4.4, below, until the
date that is one (1) year after the Agreement Date, Employee agrees and acknowledges that Employee's right to receive the
Separation and Consulting Consideration shall be conditioned upon Employee not either directly or indirectly soliciting, attempting
to hire, recruiting, encouraging, taking away, hiring any employee of the Company or inducing or otherwise causing an employee
to leave his or her employment with the Company (regardless of whether to commence employment with Employee or with any other entity
or person). If Employee engages in any such activity, then the Company shall (a) not have any obligation to provide any further
Separation and Consulting Consideration that has not been provided as of the date on which the Company discovers such activity,
and (b) be entitled to recover or rescind the delivery of any portion of the Separation and Consulting Consideration previously
provided by the Company. This remedy shall be in addition to all other remedies the Company may have for any such breach.

 

     

     

    

 

4.4              
Exception.

 

(a)               
Notwithstanding anything in this Section 4 to the contrary, (i) Employee shall be permitted to work and (ii)
shall not be deemed to be in violation of his covenants under the foregoing provisions of Section 4 by reason of working
as an employee of or consultant to (including in the circumstances where some portion of the compensation for such employment or
consulting activity is paid in any working interest, performance incentive bonus or other form of equity compensation) any entity
that acquires any portion of the Company's current assets located in Colorado and Texas (an “Excluded Entity”)
following the date of such Excluded Entity’s or Excluded Entities’ purchase of such assets.

 

(b)              
Notwithstanding anything in this Section 4 to the contrary, an Excluded Entity shall not be deemed in violation
of this Section 4 if the Excluded Entity or Employee, as a representative of Excluded Entity, directly or indirectly solicits,
recruits or ultimately employs any employee of the Company.

 

5.                  
Indemnification. The Employee will be
entitled to the continued right to indemnification, (i) in accordance with the terms of the Indemnification Agreement between the
Company and the Employee dated May 10, 2013 (the “Indemnification Agreement”), (ii) any and all rights to indemnification
under the Articles of Incorporation and Bylaws of the Company and (iii) governing statutory and common law. The Company agrees
and acknowledges that the foregoing rights are vested contract rights of the Employee and may not be changed in a manner adverse
to the Employee. After the Termination Date, the Employee’s right to indemnification and advancement of fees from the Company
will continue in accordance with the Indemnification Agreement with respect to all current matters and will be applicable with
respect to any and all continuing and/or future investigations or matters that may arise on or after the Termination Date that
concern the Employee’s activities while an employee or director of the Company. After the Termination Date, the Company will
(a) maintain in force at all times directors’ and officers’ liability insurance for the Employee in an amount and scope
at least as favorable as the coverage presently applicable to directors and officers of the Company, and (b) prior to the expiration
of the term of any such policy, will procure, pay for, and have in full force and effect either (i) an extended term for such policy,
or (ii) a successor or replacement policy of directors’ and officers’ liability insurance, or (iii) a six (6) year
tail coverage policy in respect of the Company’s current directors’ and officers’ liability insurance policy.

 

		6.	Release of
Claims

 

6.1              
Representations and Covenants

 

(a)               
No Injuries. Employee hereby represents and warrants to the Company
that, as of the Agreement Date, Employee is not suffering from any physical or mental injury incurred through work performed in
the course and scope of his employment with the Company.

 

(b)              
Ownership of Claims. Employee hereby represents and warrants to
the Company that Employee is the sole owner of, and has not assigned to any other person any rights with respect to, any of the
claims that Employee is waiving under Section 6.2(a), below.

 

(c)               
No Suits, Etc. Employee hereby (i) represents and warrants to the
Company that Employee has not filed any complaints, charges or lawsuits against the Company or any of its affiliates or any of
their respective officers, directors, shareholders, or other agents, or with any governmental agency or in any court based upon
Employee's employment with the Company, the termination of such employment, Employee's service on the Board of Directors of the
Company, or the termination of that service, or the ownership of the stock of the Company; and (ii) covenants and agrees that he
will not file any such complaints, charges, or lawsuits at any time hereafter.

 

     

     

    

 

6.2              
Release and Waiver. Except for "Excluded Claims" (as
defined below):

 

(a)               
Release by Employee.
Employee hereby releases and discharges the Company and its affiliates, and their respective shareholders, officers, directors,
employees, insurance carriers, other agents, vendors, consultants, successors and assigns (all such parties collectively are hereinafter
referred to as the "Company Released Parties"), of and from any and all claims, costs, damages, expenses, liabilities,
obligations and causes of action, whether known or unknown, of every type and kind whatsoever, which Employee has or may hereafter
learn of against any or all of the Company Released Parties, arising from or relating in any way to his employment with the Company
or the termination of such employment, including but not limited to claims based upon or relating to: (a) any express or implied
employment contract (including but not limited to all employee compensation and benefit plans), including that certain Second Amended
and Restated Employment Agreement dated effective December 31, 2014, by and between Employee and the Company; (b) wrongful discharge;
(c) claims of discrimination under Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities
Act, the Age Discrimination in Employment Act, and the Texas Labor Code, including Chapter 21 of the Texas Labor Code, which prohibit
discrimination based on race, color, age, ancestry, national origin, sex, religion, mental or physical disabilities, or marital
status; (d) any other federal, state or local laws or regulations prohibiting employment discrimination; or (e) claims for additional
wages, compensation, retirement benefits or other entitlements or benefits.

 

(b)              
Release by the Company.
The Company hereby releases and discharges Employee of and from any and all claims, costs, damages, expenses, liabilities,
obligations and causes of action, whether known or unknown, of every type and kind whatsoever, which the Company has or may hereafter
learn of against Employee, arising from or relating in any way to Employee's employment with the Company or the termination of
such employment.

 

6.3              
Excluded Claims. For purposes of this Agreement, the term "Excluded
Claims" means any claim arising from (a) a breach by a party of any of his or its obligations, representations (which
is material in nature), covenants, or other agreements under this Agreement, (b) claims under any written stock option agreement
between Employee and the Company, (c) claims for benefits under any qualified retirement plan sponsored by the Company and in which
Employee participates, (d) any right that Employee may have to elect "COBRA" continuation coverage under any group health
plan sponsored by the Company, (e) any right that Employee may have to demand indemnification under the Articles of Incorporation
or Bylaws of the Company, any written indemnification agreement between the Company and Employee, or applicable law, or (f) fraud.

 

7.                  
Voluntary Execution. EMPLOYEE HEREBY ACKNOWLEDGES AND AGREES THAT:
(A) EMPLOYEE HAS CAREFULLY READ THIS AGREEMENT; (B) EMPLOYEE FULLY UNDERSTANDS HIS RIGHT TO DISCUSS THIS AGREEMENT WITH HIS
ATTORNEY AND, TO THE EXTENT THAT EMPLOYEE SO DESIRED, EMPLOYEE HAS AVAILED HIMSELF OF THIS RIGHT; (C) EMPLOYEE UNDERSTANDS
AND AGREES WITH EACH OF THE TERMS AND CONDITIONS OF THIS AGREEMENT; AND (D) EMPLOYEE HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT
FREELY AND WITHOUT COERCION.

 

     

     

    

 

		8.	Miscellaneous

 

8.1              
Notices. All notices permitted or required by this Agreement shall
be in writing, and shall be deemed to have been delivered and received (a) when personally delivered, (b) on the third
(3rd) business day after the date on which deposited in the United States mail, postage prepaid, certified or registered
mail, return receipt requested, (c) on the date on which transmitted by facsimile or other electronic means producing a tangible
receipt evidencing a successful transmission, or (d) on the next business day after the date on which deposited with a nationally-recognized
private courier (e.g., FedEx, DHL, UPS, etc.) for overnight delivery, addressed to the party for whom intended at
the mailing address, email address, or facsimile number set forth on the signature page of this Agreement for such party, or such
other mailing address, email address, or facsimile number, notice of which has been delivered in a manner permitted by this Section 8.1.

 

8.2              
Further Assurances. Each party agrees, upon the request of another
party, to make, execute, and deliver such agreements, instruments, and other documents, and to take such additional actions, as
may be reasonably necessary to effectuate the purposes of this Agreement.

 

8.3              
Complete Agreement; Amendments. This Agreement contains the entire
agreement and understanding between the parties and supersedes and replaces all prior and contemporaneous agreements and understandings,
whether oral or written, concerning Employee's employment with the Company and the termination thereof; and shall not be modified
or amended, except by a written instrument executed after the Effective Date hereof by the party sought to be charged with such
amendment or modification.

 

8.4              
Governing Law; Jurisdiction; Venue. This Agreement shall be governed
by and construed in accordance with the applicable provisions of the law of the State of Texas (other than its conflict-of-law
principles). Each party hereby consents to the jurisdiction of the courts of the State of Texas for purposes of all actions commenced
to construe or enforce this Agreement. The parties agree that the exclusive venue for all actions arising hereunder shall be the
courts of the State of Texas located in San Antonio, Texas, and hereby covenant and agree not to assert that such forum is in any
way inconvenient or inappropriate.

 

8.5              
Attorneys' Fees. If any action is commenced to construe this Agreement
or enforce the rights and duties set forth herein, then the party prevailing in that action shall be entitled to recover its costs
and fees in that action, as well as the costs and fees of enforcing any judgment entered therein.

 

8.6              
Counterparts; Electronic Signatures.
This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which, taken together, shall
constitute one and the same instrument, binding on each signatory thereto. A copy of this Agreement that is executed by a party
and transmitted by that party to the other party by facsimile or as an attachment (e.g., in ".tif" or ".pdf"
format) to an email shall be binding upon the signatory to the same extent as a copy hereof containing that party's original signature.

 

8.7              
Effective Date. The "Effective Date" of this Agreement
shall be the first day as of which Employee's seven-day revocation period described in Section 3.4(b), above, expires without
Employee having delivered to the Company a written notice of revocation of this Agreement.

 

 

[Signatures appear on the following page.]

 

 

 

     

     

    

 

In
Witness Whereof, the parties hereto have executed this Separation and General Release Agreement, to be effective as
of the Effective Date.

 

	"Company:"	 	"Employee:"	 
		 	 	 	         
 
	EnerJex Resources, Inc., a Nevada corporation	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 			 
	 	Name:	 	Robert G. Watson, Jr.	 
	 	Title:	 	 	 
	 	 	 	 	 
	Date:	 	 	 Date:	 	 

 

 

	Address, Facsimile No. and Email for Notices	 	Address, Facsimile No. and Email for Notices:	 
	 	 	 	 
	EnerJex Resources, Inc.	 	 	 
	Attn:  Chief Financial Officer	 	Mr. Robert G. Watson, Jr.	 
	EnerJex Resources, Inc	 	123 Evans Avenue	 
	4040 Broadway, Ste. 508 	 	San Antonio, TX 78209	 
	San Antonio, TX 78209	 	 	 
	 	 	 	 
	Facsimile No.:  (210) 451-5546 	 	Facsimile No.:  (210) 451-5546	 
	 	 	 	 
	Email:  dwright@enerjexresources.com	 	Email:  rwatson@enerjexresources.com	 
	 	 	 	 
	 	 	 	 
	With a copies to:	 	 	 
	 	 	 	 
	Michael E. Pfau, Esq.	 	 	 
	Reicker, Pfau, Pyle & McRoy LLP	 	 	 
	1421 State Street, Suite B	 	 	 
	Santa Barbara, California 93101	 	 	 
	 	 	 	 
	Facsimile No.:  (805) 966-3320	 	 	 
	Email:  mpfau@rppmh.com	 	 	 

 

     

     

    

 

Schedule 3.2(b)

 

Claims

 

		·	Geronimo Holding Corporation and Randall Capps vs.
American Standard Energy Corp., a Nevada Corp.; American Standard Energy Corp., A Delaware Corp.; Loeb & Loeb, LLP; Bernard
Given; Baylor Operating, LLC; and Enerjex Resources, Inc.

		·	C & F Ranch, L.L.C. vs. Enerjex Kansas, Inc.Exhibit 4.1

 

Form of Representative’s Warrant
Agreement

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE
OTHER THAN (I) AEGIS CAPITAL CORP. OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE
OFFICER OR PARTNER OF AEGIS CAPITAL CORP. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS ONE YEAR FROM THE DATE OF THE UNDERWRITING AGREEMENT]. VOID
AFTER 5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE DATE OF THE UNDERWRITING AGREEMENT].

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [_____] Shares of Common
Stock

of

DARIOHEALTH CORP.

 

1.           Purchase
Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. (“Holder”),
as registered owner of this Purchase Warrant, to DarioHealth Corp., a Delaware corporation (the “Company”),
Holder is entitled, at any time or from time to time from [________________] [DATE THAT IS ONE YEAR FROM THE DATE OF THE UNDERWRITING
AGREEMENT] (the “Commencement Date”), and at or before 5:00p.m., Eastern time, [____________] [DATE
THAT IS FIVE YEARS FROM THE DATE OF THE UNDERWRITING AGREEMENT] (the ”Expiration Date”), but not
thereafter, to subscribe for, purchase and receive, in whole or in part, up to [____] shares of common stock of the Company, par
value $0.0001 per share (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration
Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the
next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date,
the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable
at $[___] per Share [125% of the price of the Shares sold in the Offering]; provided, however, that upon the
occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise
price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise
Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context.

 

     

     

    

 

2.           Exercise.

 

2.1           Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or
official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2           Cashless
Exercise.  If at any applicable time after the Commencement Date there is no effective registration statement registering,
or no current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant
by payment of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the
number of Shares equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase
Warrant to the Company, together with the exercise form attached hereto, in which event the Company shall issue to Holder, Shares
in accordance with the following formula:

 

	X	=	Y(A-B)	 
	 	 	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

For purposes of this Section 2.2, the fair
market value of a Share is defined as follows:

 

		(i)	if the Company’s common stock is traded on a securities exchange, the value shall be deemed
to be the closing price on such exchange prior to the exercise form being submitted in connection with the exercise of the Purchase
Warrant; or

 

		(ii)	if the Company’s common stock is actively traded over-the-counter, the value shall be deemed
to be the closing bid prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; if there
is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company’s
Board of Directors.

 

2.3          Legend.
Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities
have been registered under the Securities Act of 1933, as amended (the “Act”):

 

“The securities
represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration
under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

     

     

    

 

3.           Transfer.

 

3.1           General
Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder
will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days
following the Effective Date to anyone other than: (i) Aegis Capital Corp. (“Aegis”) or an underwriter or a
selected dealer participating in the Offering, or (ii) a bona fide officer or partner of Aegis or of any such underwriter or selected
dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase Warrant or the securities issuable
hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On
and after 180 days after the Effective Date, transfers to others may be made subject to compliance with or exemptions from applicable
securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached
hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection
therewith. The Company shall within five (5) Business Days transfer this Purchase Warrant on the books of the Company and shall
execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing
the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated
by any such assignment.

 

3.2          Restrictions
Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until:
(i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption
from registration under the Securities Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Reed Smith LLP shall be deemed satisfactory
evidence of the availability of an exemption), or (ii) a registration statement or a post-effective amendment to the Registration
Statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities
and Exchange Commission (the ”Commission”) and compliance with applicable state securities law has been
established.

 

4.           Registration
Rights.

 

4.1           Demand
Registration.

 

4.1.1           Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the Purchase
Warrants and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all or any portion
of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”). On such occasion,
the Company will file a registration statement with the Commission covering the Registrable Securities within sixty (60) days after
receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter,
subject to compliance with review by the Commission; provided, however, that the Company shall not be required to
comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback
registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate in the offering covered
by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities
of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such
offering is consummated. The demand for registration may be made at any time during a period of four (4) years beginning on the
Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holder(s)
to all other registered Holders of the Purchase Warrants and/or the Registrable Securities within ten (10) days after the date
of the receipt of any such Demand Notice.

 

     

     

    

 

4.1.2          Terms.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 4.1.1,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts
to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such
States as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required
to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register
or license to do business in such State or submit to general service of process in such State, or (ii) the principal shareholders
of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration
statement filed pursuant to the demand right granted under Section 4.1.1 to remain effective for a period of at least twelve (12)
consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first
given the opportunity to sell all of such securities or until all shares registered thereunder have been sold by the Holders. The
Holders shall only use the prospectuses provided by the Company to sell the shares covered by such registration statement, and
will immediately cease to use any prospectus furnished by the Company if the Company advises the Holder that such prospectus may
no longer be used due to a material misstatement or omission. Notwithstanding the provisions of this Section 4.1.2, the Holder
shall be entitled to a demand registration under this Section 4.1.2 on only one (1) occasion and such demand registration right
shall terminate on Expiration Date in accordance with FINRA Rule 5110(f)(2)(G)(iv).

 

4.2          “Piggy-Back”
Registration.

 

4.2.1           Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right,
for a period of no more than seven (7) years from the date of effectiveness of the registration statement in accordance with FINRA
Rule 5110(f)(2)(G)(v), to include the Registrable Securities as part of any other registration of securities filed by the Company
(other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form
S-8 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public
offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation
on the number of shares of Common Stock which may be included in the Registration Statement because, in such underwriter(s)’
judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall
be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to
which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities
shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities
sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable Securities
unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities
in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

     

     

    

 

4.2.2          Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.2.1 hereof,
but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company
shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to
the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable
registration statement filed by the Company until such time as all of the Registrable Securities have been sold by the Holder.
The holders of the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written
notice within ten (10) days of the receipt of the Company’s notice of its intention to file a registration statement. Except
as otherwise provided in this Purchase Warrant, there shall be no limit on the number of times the Holder may request registration
under this Section 4.2.2; provided, however, that such registration rights shall terminate on the sixth anniversary
of the Commencement Date.

 

4.3          General
Terms.

 

4.3.1           Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which
the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement between the Underwriters
and the Company, dated as of [___________], 2017. The Holder(s) of the Registrable Securities to be sold pursuant to such registration
statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act
or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for
specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section
5.2 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

 

4.3.2          Exercise
of Purchase Warrants. Nothing contained in this Purchase Warrant shall be construed as requiring the Holder(s) to exercise
their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

 

4.3.3          Documents
Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each
underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of
counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold
comfort” letter dated the effective date of such registration statement (and, if such registration includes an underwritten
public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered
public accounting firm which has issued a report on the Company’s financial statements included in such registration statement,
in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein)
and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements,
as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in
underwritten public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering
requesting the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence
between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or
its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable
advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary
to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties
and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent
and at such reasonable times as any such Holder shall reasonably request.

 

     

     

    

 

4.3.4          Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this Section 4, which managing underwriter shall be reasonably
satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder
and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other
terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to
any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that
any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be
made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or
agreements with the Company or the underwriters except as they may relate to such Holders, their Shares and their intended methods
of distribution.

 

4.3.5          Documents
to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company
a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

4.3.6          Damages.
Should the registration or the effectiveness thereof required by Sections 4.1 and 4.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to
the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened
breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the
necessity of posting bond or other security.

 

5.           New
Purchase Warrants to be Issued.

 

5.1           Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in
whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation,
together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax
if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase
Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number
of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

5.2          Lost
Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver
a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft,
mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

     

     

    

 

6.           Adjustments.

 

6.1          Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth:

 

6.1.1           Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

6.1.2          Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased
by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the
number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and the Exercise
Price shall be proportionately increased.

 

6.1.3           Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than
a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share
reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than a consolidation or
share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification
or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the
property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder
of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant)
to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the
kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization,
share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder
of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if
any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant
to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications,
reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.

 

6.1.4          Changes
in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1,
and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in
the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase
Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the
Commencement Date or the computation thereof.

 

     

     

    

 

6.2          Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company
with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in
any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share reconstruction
or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase
Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant)
to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable
upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such
Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale
or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided
for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions
or amalgamations.

 

6.3          Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the
exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being
the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may
be, to the nearest whole number of Shares or other securities, properties or rights.

 

7.            Reservation
and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose
of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be
issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of
the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. The Company
further covenants and agrees that upon exercise of the Purchase Warrants and payment of the exercise price therefor, all Shares
and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject
to preemptive rights of any shareholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially
reasonable efforts to cause all Shares issuable upon exercise of the Purchase Warrants to be listed (subject to official notice
of issuance) on all national securities exchanges (or, if applicable, on the OTC Bulletin Board or any successor trading market)
on which the Shares issued to the public in the Offering may then be listed and/or quoted.

 

8.           Certain
Notice Requirements.

 

8.1           Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to
receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder
of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event
at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the determination
of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder
a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that such notice is
given to the shareholders.

 

     

     

    

 

8.2          Events
Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer
to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale
of all or substantially all of its property, assets and business shall be proposed.

 

8.3          Notice
of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to
Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall
describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the
Company’s Chief Financial Officer.

 

8.4          Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company,
to following address or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 18th Floor

New York, New York 10019

Attn: Mr. David Bocchi, Managing Director of Investment Banking

Fax No.: (212) 813-1047

 

with a copy (which shall not constitute notice) to:

Sheppard Mullin Richter & Hampton LLP

30 Rockefeller Plaza

New York, New York 10112

Attn: Jeffrey Fessler, Esq.

Fax No.:  212-653-8700

 

If to the Company:

 

DarioHealth Corp.

9 Halamish Street

Caesarea Industrial Park

38900, Israel

Attention: Chief Executive Officer

Fax No: +(972)-(4) 770 4060

  

     

     

    

  

with a copy (which shall not constitute notice) to:

 

Zysman, Aharoni, Gayer and Sullivan & Worcester
LLP

1633 Broadway

New York, NY 10019

Attention: Oded Har-Even, Esq.

Fax No: (212) 660-3001

 

9.            Miscellaneous.

 

9.1          Amendments.
The Company and Aegis may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company
and Aegis may deem necessary or desirable and that the Company and Aegis deem shall not adversely affect the interest of the Holders.
All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement
of the modification or amendment is sought.

 

9.2          Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

9.3.       Entire
Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection
with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

9.4          Binding
Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and
their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed
to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions
herein contained.

 

9.5          Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served
upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall
be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees
and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on
its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby
irrevocably waive, 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.

 

     

     

    

 

9.6          Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not
be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or
any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase
Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be
effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver
is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any
other or subsequent breach, non-compliance or non-fulfillment.

 

9.7          Execution
in Counterparts. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and
the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and
delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic
transmission.

 

9.8          Exchange
Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any
time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Aegis enter into an agreement (“Exchange
Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Signature Page
Follows]

 

     

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2017.

 

	DARIOHEALTH CORP.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

[Form to be used to exercise Purchase
Warrant]

 

Date: __________, 20___

 

The undersigned
hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.0001 per share (the
“Shares”), of DarioHealth Corp., a Delaware corporation (the “Company”), and hereby makes
payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as
to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase
Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned
hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares,
as determined in accordance with the following formula:

 

	 	X	=	Y(A-B)	 
	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $______ per share

 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a
new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

 

	Signature	 	 

 

	Signature Guaranteed	 	 

 

     

     

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

	Name:	 	 
	 	(Print in Block Letters)	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

     

     

    

 

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

 

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.0001 per share, of DarioHealth
Corp., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the
Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

 

	Signature	 	 

 

	Signature Guaranteed	 	 

 

NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must
be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national
securities exchange.

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