Document:

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

 

COMMON
STOCK PURCHASE WARRANT

 

STEALTH
TECHNOLOGIES INC.

 

	Warrant
    Shares: 3,000,000	Issuance
    Date: September 16, 2019

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, BHP CAPITAL NY INC.,
a New York corporation, or its registered assigns (the “Holder”), with an address at: 45 SW 9th St., Suite 1603 Miami,
Florida 33130, is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business
on the fifth anniversary of the Issuance Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from STEALTH TECHNOLOGIES INC., a Nevada corporation (the “Company”), up to 3,000,000 shares
(as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share
of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated September 16, 2019, among the Company and the
purchasers signatory thereto and the note issued to the Holder contemporaneously with this Warrant (the “Note”).
This Warrant is subject to cancellation as set forth in the Purchase Agreement.

 

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Section
2. Exercise.

 

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

 

b)       Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $0.005, subject to adjustment as described
herein (“Exercise Price”). When exercising this Warrant for cash, other than as a result of a Call Notice,
the Holder may pay for fifty percent (50%) of the Exercise Price for any warrants purchased pursuant to an Exercise Notice submitted
in response to a Call Notice by cancelling a portion of the debt owed on the Note equal to such amount.

 

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

 

	 	(A)
    =	the
    VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless
    exercise,” as set forth in the applicable Notice of Exercise;
	 	 	 
	 	(B)
    =	the
    Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)
    =	the
    number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise.

 

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Notwithstanding
anything herein to the contrary, on the Termination Date, unless the Holder notifies the Company otherwise, if there is no effective
Registration Statement registering the Warrant Shares, or no current prospectus available for, the resale of the Warrant Shares
by the Holder, then this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

d)
Mechanics of Exercise.

 

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

 

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

 

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iii.       Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right, at any
time prior to issuance of such Warrant Shares, to rescind such exercise.

 

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

 

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

 

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

 

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

 

e)       Holder’s
Exercise Limitations. From and after the date that the Conversion Shares are of a class of equity of the borrower registered
under Section 12(g) of the Exchange Act or the Company is subject to the reporting requirements of Section 13 or Section 15(d)
of the Exchange Act, the Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess
of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in
the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned
by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion
of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request
of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect
to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the
date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder may decrease the Beneficial Ownership Limitation at any time
and the Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation
provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise
of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase will not
be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall
be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein
contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

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f)
      Call Provision. If, at any time after the Initial Exercise Date, (i) the VWAP of the
Common Stock on the principal Trading Market as reported by Bloomberg L.P. exceeds 140% of the Exercise Price in effect for ten
(10) consecutive Trading Days (the “Measurement Period”); (ii) the aggregate value of the shares of the Company’s
common stock traded on its principal Trading Market as reported by Bloomberg, L.P. during the previous five (5) trading Days exceeds
two and a half (2.5) times the amount of shares being cancelled by the relevant Call Notice, (iii)there is an effective registration
statement under the Securities Act of 1933, as amended covering the resale of the shares of Common Stock issuable upon exercise
of this Warrant, (iv) the Holder is not in possession of any information provided by the Company that constitutes material nonpublic
information, (v) the number of shares being called will not result in the Holder exceeding the Beneficial Ownership Limitation,
and (vi) an Event of Default (as defined in the Note) nor an event which with the passage of time or the giving of notice could
become an Event of Default is not pending, then the Company may call for cancellation of that portion of this Warrant for which
an Exercise Notice has not yet been delivered as of the date of the Call Notice (as defined below) for consideration equal to
$.001 per Warrant Share. The Company shall deliver to the Holder a written notice (a “Call Notice”) of any
call for cancellation of the Warrants pursuant to this Section 2(f) within three (3) Trading Days following the last day of the
Measurement Period. On the fifteenth (15th) trading day after the date of the Call Notice (the “Call Date”),
the portion of this Warrant for which an Exercise Notice shall not have been received by the Call Date must be exercised by 5:30
p.m. (local time in New York City, New York). In furtherance of the foregoing, the Company covenants and agrees that it will honor
all Exercise Notices that are tendered on or before 5:29 p.m. (local time in New York City, New York) on the Call Date. A Call
Notice may not be given to the Holder with respect to any Warrants which if exercised pursuant to Section 2(a) would cause such
Holder to exceed the Beneficial Ownership Limitation. A Call Notice may not be given later than sixty (60) days before the Expiration
Date, nor more often than one time each 10 Trading Days. Unless otherwise agreed to by the Holder of this Warrant, a Call Notice
must be given to all other holders of Warrants issued pursuant to the Purchase Agreement in proportion to the amount of Warrants
held by all such Holders on the date of the Call Notice without giving effect to the Beneficial Ownership Limitation. When exercising
this Warrant as a result of a Call Notice, the Holder may pay for ten percent (10%) of the Exercise Price for any warrants purchased
pursuant to an Exercise Notice submitted in response to a Call Notice by cancelling a portion of the debt owed on the Note equal
to such amount. In the event the during the 10 Trading Days after the Holder exercises this Warrant pursuant to a Call Notice,
the price of the Company’s Common Stock on the Trading Market falls below the Exercise Price pursuant to which Warrant Shares
were acquired pursuant to such Call Notice (such lower price the “Reset Price”), then the Company shall issue additional
shares of Common Stock so that the per share purchase price of the Warrant Shares purchased pursuant to such Call Notice shall
equal the Reset Price.

 

Section
3. Certain Adjustments.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	9	 

    	 

    

 

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

 

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

 

    	 	10	 

    	 

    

 

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

 

    	 	11	 

    	 

    

 

f)        Voluntary
Reduction. The Company may unilaterally reduce the Exercise Price at any time.

 

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

 

h)
Notice to Holder.

 

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

 

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

 

    	 	12	 

    	 

    

 

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

 

Section
4. Transfer of Warrant.

 

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

 

    	 	13	 

    	 

    

 

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

 

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

 

Section
5. Miscellaneous.

 

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

 

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

 

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

 

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

 

    	 	14	 

    	 

    

 

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

 

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

 

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

 

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

 

    	 	15	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 (Signature
Page Follows)

 

    	 	16	 

    	 

    

 

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

 

	 	STEALTH
    TECHNOLOGIES INC.
	 	 	 
	 	By:	/s/
    Brian McFadden
	 	Name:	Brian
    McFadden
	 	Title:	Chief
    Executive Officer

 

    	 	17	 

    	 

    

 

NOTICE
OF EXERCISE

 

TO:
STEALTH TECHNOLOGIES INC.

 

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

 

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

 

[  ]
in lawful money of the United States;

 

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

 

[  ]
by cancelling $________ of the amount due on the Note issued by the Company to the undersigned.

 

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

 

_______________________________

 

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

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________

 

Signature
of Authorized Signatory of Investing Entity: __________________________________________

 

Name
of Authorized Signatory: ___________________________________________________________

 

Title
of Authorized Signatory: ____________________________________________________________

 

Date:
______________________________________________________________________________

 

    	 	 	 

    	 

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do
not use this form to exercise the warrant.)

 

STEALTH
TECHNOLOGIES INC.

 

FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned
to _______________________________________________ whose address is _______________________________________________________________.

 

_______________________________________________________________

 

Dated:
______________, _______

 

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

        

 

Signature
Guaranteed: ___________________________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.EXHIBIT 10.1

 

SECOND AMENDED
AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

This SECOND AMENDED
AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into, and effective, as of
the 16th day of September, 2019 (the “Effective Date”), by and between AudioEye, Inc., a Delaware corporation
with an address at 5210 E Williams Circle, Suite 750, Tucson, Arizona 85711 (the “Company”), and Todd Bankofier,
a natural person (“Executive”).

 

WITNESSETH:

 

WHEREAS, Executive
was employed by the Company as its Chief Executive Officer pursuant to an Amended and Restated Executive Employment Agreement effective
January 1, 2019 (the “Original Agreement”);

 

WHEREAS, the Company
delivered a timely notice of its intention not to renew the Original Agreement to Executive on August 31, 2019 (the
“Non-Renewal Notice”);

 

WHEREAS, the Company
and Executive have agreed to amend and restate the Original Agreement, and to enter into this Agreement;

 

NOW, THEREFORE, in
consideration of the foregoing recitals and the respective covenants and agreements of the parties contained in this document,
the Company and Executive hereby agree as follows:

 

1.                 
Employment and Duties. The Company agrees to employ Executive and Executive agrees to serve in the position of Chief
Revenue Officer (the “Position”). Executive shall report to the Chief Executive Officer of the Company (“CEO”),
or if the CEO is not available, to the Executive Chairman or Chairman of the Board of Directors of the Company (the “Board”).
Executive is responsible for all Direct Enterprise sales, which is defined as pdf document remediation engagements, and annual
subscription contracts with values equal to or greater than $10,000 for accessibility solutions deployed on kiosks, websites and
the Developer Accessibility Platform (DAP), and such additional duties and responsibilities as the CEO, Executive Chairman, Chairman
or Board may from time to time reasonably assign to Executive.

 

Executive shall devote
such amount of his time, attention, and energies to the business of the Company as the Company and Executive shall reasonably and
mutually agree is necessary for Executive to fulfill the duties and responsibilities of the Position. Provided that none of the
additional activities materially interfere with the performance of the duties and responsibilities of Executive, nothing in this
Section 1 shall prohibit Executive from (a) serving as a director or member of a committee of, making investments in, or consulting
or working with entities that do not, in the good faith determination of the Board, compete directly with the Company or otherwise
create, in the good faith determination of the Board, a conflict of interest with the business of the Company; (b) delivering lectures,
fulfilling speaking engagements, and any writing or publication relating to Executive’s area of expertise; (c) serving as
a director or trustee of any governmental, charitable or educational organization; or (d) engaging in additional activities in
connection with personal investments and community affairs; provided that such activities are not inconsistent with Executive’s
duties under this Agreement and do not violate the terms of Section 14. For the avoidance of doubt, Executive agrees that this
is a full-time position with the Company, and any such additional activities will not interfere with the fulfillment of the duties
and responsibilities of the Position.

 

    	 	1	 

     

    

 

2.                 
Term. The term of this Agreement shall be the one-year period from September 16, 2019, through September 15,
2020 (the “Term”), subject to the termination provisions of Section 12 of this Agreement. If Executive continues
in employment after the Term, then such employment will be on an at-will basis and will be subject to the terms of this Agreement,
including without limitation Section 12 of this Agreement. “Employment Period” shall mean the initial one-year
Term plus any time after the Term that Executive is employed by the Company.

 

3.                 
Place of Employment. Executive’s job site shall be at an office sublet to Audio Eye in Scottsdale, Arizona
and at 5210 E Williams Circle, Suite 750, in Tucson, Arizona (the “Job Site”). Executive shall primarily work
from the Scottsdale office location, and shall work occasionally from the Tucson office location. The parties acknowledge, however,
that Executive may be required to travel in connection with the performance of his duties hereunder.

 

4.                 
Base Salary. For all services to be rendered by Executive pursuant to this Agreement, the Company agrees to pay Executive
a base salary (the “Base Salary”) during the Employment Period at an annual rate of: (a) $300,000 per year for
the remainder of 2019, and (b) $ 230,000 per year during 2020 and thereafter, provided, however, the Board may, in its sole discretion,
adjust the Base Salary after the expiration of the Term at any time by providing written notice to Executive of such adjustment
(provided that any reduction in Base Salary will only take effect 45 days after delivery of such notice). Base Salary shall be
paid in periodic installments in accordance with the Company’s regular payroll practices.

 

5.                 
Bonuses.

 

(a)              
Executive shall be eligible to receive an annual bonus for 2019, subject to the condition that Executive is employed by
the Company through December 31, 2019 (the “2019 Bonus”), in an amount to be determined by the Compensation
Committee of the Board (the “Compensation Committee”) if the Company and Executive meet or exceed criteria adopted
by the Compensation Committee for earning a bonus in 2019. The 2019 Bonus will be paid in cash; provided, however,
that the Company and Executive can mutually agree that any particular Bonus can be paid in equity of the Company or a combination
of cash and equity of the Company. Payment of any 2019 Bonus will be made in 2020 within fifteen (15) days after the Audit Committee
of the Company’s Board approves the Company’s annual financial statements for 2019 but in no event later than the last
day of 2020.

 

(b)              
For 2020 and any subsequent years, Executive will be eligible to be awarded quarterly target bonuses (each, a “Quarterly
Bonus”) based on the achievement of quarterly “New Domain Bookings” and “In-Year Sales” goals for
each quarter that are established by the Board (respectively, the “Bookings Goal” and the “Sales Goal”),
which will be earned when the customer payment equal to in-year sales (“Customer Payment”) is received by the
Company and will be paid within thirty (30) days after the end of the quarter (for Customer Payments received during the quarter
or within twenty one (21) days after the end of the quarter) or within thirty days after the end of the month in which the Customer
Payment is received (for Customer Payments received more than twenty one (21) days after the end of the quarter).  For purposes
of determining the achievement of the Bookings Goal and Sales Goal in a quarter, the Company will take into account the applicable
amount booked based on the assumption that the entire applicable booked amount will ultimately be paid by the customer.

 

    	 	2	 

     

    

 

(i)                
For purposes of this Agreement, a “New Domain Booking” means a contract between the Company and a new customer
of the Company for pdf document remediation services or an annual subscription contract for accessibility solutions deployed on
kiosks, websites and the Developer Accessibility Platform (DAP), and “In-Year Sales” means the first 12 month period
of the booking amount.

 

(ii)             
The amount of the Quarterly Bonus that Executive is eligible to earn (when Customer Payments are made) will be equal to
the sum of (i) three-quarters of a percent (0.75%) (the “Bookings Percentage”) of the amount of the New Domain
Bookings for the quarter, provided, however, (A) in any quarter in which the Bookings Goal is not achieved, the Bookings
Percentage will be fifty six and one quarter of a percent (0.5625%) of total New Domain Bookings paid for the quarter, and (B)
in any quarter in which New Domain Bookings exceed the Bookings Goal, the Bookings Percentage applicable to paid Domain Bookings
that are greater than the Bookings Goal will be ninety three and three quarters of a percent (0.9375%), plus (ii) one percent
(1%) (the “Sales Percentage”) of the amount of the corresponding In-Year Sales to the Company in the quarter,
provided, however, (A) in any quarter in which the Sales Goal is not achieved, the Sales Percentage will be three quarters
of a percent (0.75%), and (B) in any quarter in which In-Year Sales achievement exceeds the Sales Goal, the Sales Percentage
applicable to paid In-Year Sales that are greater than the Sales Goal will be one and one quarter of a percent (1.25%). Notwithstanding
the foregoing, if Customer Payments are not received, in whole or part, within nine (9) months after the date of a New Domain Booking
(“the Customer Payment Deadline”), then (A) the portion of the booking that was not paid will reduce the achievement
of the Bookings Goal and Sales Goal, as applicable, for the quarter in which the booking occurred, and (B) in the event such reduction
would have resulted in decreasing the applicable Bookings Percentage or Sales Percentage that was used to calculate a Quarterly
Bonus payment for such quarter, such unpaid customer obligations will reduce the New Domain Bookings and In-Year Sales, as applicable,
in calculating the Quarterly Bonus for the quarter in which the Customer Payment Deadline occurs.

 

(iii)           
For example, if there is a two year New Domain Booking for $2,400,000 in March 2020 that requires the customer to pay 50%
of the total within thirty days, and the customer pays $1,200,000 on or before April 21, 2020, then $2,400,000 will be applied
to the Bookings Goal, and $1,200,000 will be applied to the Sales Goal, in calculating the Quarterly Bonus for the first quarter
of 2020, and the related bonus amount will be earned for the first quarter and payable by April 30, 2020. However, if the Customer
Payment is not received by April 21, 2020, then $2,400,000 will be applied to the Bookings Goal, and $1,200,000 will be applied
to the Sales Goal, in calculating the applicable Bookings Percentage and Sales Percentage for the first quarter Quarterly Bonus,
but no bonus has been earned for the first quarter with respect to that $2,400,000 New Domain Booking, and a bonus will only be
earned when cash equal to in-year sales is collected from the customer with respect to that booking.

 

    	 	3	 

     

    

 

(iv)            
If Executive’s employment with the Company ends during a quarter, then the Quarterly Bonus for that quarter will be
calculated using only Customer Payments received by the Company through the last day of Executive’s employment.

 

6.                 
Severance Compensation.If the Company terminates Executive without Cause (as defined below) or Executive terminates
his employment with Good Reason (as defined below), then the Company shall pay or provide all of the following to Executive:

 

(a)       Executive
shall be entitled to (1) reimbursement of any and all business expenses paid or incurred by Executive through the termination date,
pursuant to Section 10 below, (2) receipt of any accrued but unused paid time off through the termination date in accordance with
Company policy, as in effect as of the date of termination, (3) receipt of any earned but unpaid Base Salary accrued through Executive’s
last date of employment with the Company, and (4) receipt of an amount equal to a portion of the Executive’s Base Salary,
as set forth in Section 6(c) below (all of these payments are collectively the “Separation Payment”), provided
that to be eligible to be paid the Base Salary portion of the Separation Payment described in Section

6(a)(4), Executive must execute an agreement releasing Company and its affiliates from any liability associated with this Agreement
in form and terms satisfactory to the Company and that all time periods imposed by law permitting cancellation or revocation of
such release by Executive shall have passed or expired; and

 

(b)       Subject
to Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”) with respect to the Company’s group health insurance plans in which the Employee
participated immediately prior to the termination date (“COBRA Continuation Coverage”), the Company will pay
the cost of COBRA Continuation Coverage for Executive and his eligible dependents until the earlier of (i) Executive and his eligible
dependents, as the case may be, ceasing to be eligible under COBRA, or (ii) four (4) months following the termination date (the
benefits provided under this Section 6(b), the “Medical Continuation Benefits”) or until such time as Executive
shall obtain reasonably equivalent benefits for him and his eligible dependents from subsequent employment or spousal benefits.

 

(c)       The
Base Salary portion of the Separation Payment described in Section 6(a)(4) above shall be four (4) months of Executive’s
Base Salary (at the rate that was in effect at the time of termination), less Base Salary paid to Executive for any portion of
the Notice Period (defined below) that Executive is directed by the Company not to work. Such Base Salary portion shall be paid
at such time and in such manner as such Base Salary would have been paid had Executive remained employed in accordance with the
customary payroll practices of the Company, except that, to the extent Executive becomes entitled to a Separation Payment on account
of a separation from service that occurs within 120 days after a Change of Control (to the extent such Change of Control meets
the requirements for a change in control event under Section 409A), the Base Salary portion of such Separation Payment shall be
payable in a lump sum within 60 days following such separation from service subject to all other terms and conditions herein. Notwithstanding
anything herein to the contrary, in the event that the period in which a release agreement could be considered and become irrevocable
spans two taxable years, any Separation Payment that becomes payable hereunder shall be paid or commence in the later of the two
taxable years, subject to all other terms and conditions herein.

 

    	 	4	 

     

    

 

7.                 
Equity Awards. Executive shall be eligible for such grants of awards at the discretion of the Compensation Committee
(or the Board, if there is no Compensation Committee) may from time to time determine (the “Share Awards”).
Awards shall be subject to the applicable Plan terms and conditions; provided, however, that Awards shall be subject to
any additional terms and conditions as are provided herein or in any award certificate(s), which shall supersede any conflicting
provisions governing Share Awards provided under the Plan. Subject to the approval by the Compensation Committee, Executive will
receive a grant of restricted stock units having a value equal to approximately $50,000 as of the date of grant, which would be
subject to vesting requirements as determined by the Compensation Committee.

 

8.                 
Deductions and Withholdings. The Company shall deduct and withhold, from all payments made hereunder, all applicable
taxes, including income tax, FICA and FUTA, and other deductions and withholdings required by law.

 

9.                 
Clawback Rights. All amounts paid to Executive by the Company during the Employment Period and any time thereafter
(other than Executive’s Base Salary, Bonuses, accrued but unused paid time off, reimbursement of expenses pursuant to Section
10 hereof, Medical Continuation Benefits, and the Separation Payment) and any and all stock based compensation (such as options
and equity awards) granted during the Employment Period and any time thereafter (collectively, the “Clawback Benefits”)
shall be subject to “Clawback Rights” as follows: during the period that Executive is employed by the Company
and upon the termination or expiration of Executive’s employment and for a period of three (3) years thereafter, if any of
the following events occur, Executive agrees to repay or surrender to the Company the Clawback Benefits if a restatement (a “Restatement”)
of any financial results from which any Clawback Benefits to Executive shall have been determined (such restatement resulting from
material non-compliance of the Company with any financial reporting requirement under the federal securities laws and shall not
include a restatement of financial results resulting from subsequent changes in accounting pronouncements or requirements which
were not in effect on the date the financial statements were originally prepared), then Executive agrees to immediately repay or
surrender upon demand by the Company any Clawback Benefits which were determined by reference to any Company financial results
which were later restated, but only to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that
would have been paid, based on the restatement of the Company’s financial information. All Clawback Benefits amounts resulting
from such Restatements shall be retroactively adjusted by the Compensation Committee (or the Board, if there is no Compensation
Committee) to take into account the restated results and if any excess portion of the Clawback Benefits resulting from such restated
results is not so repaid or surrendered by Executive within ninety (90) days of the revised calculation being provided to Executive
by the Company following a publicly announced restatement, the Company shall have the right to take any and all action to effectuate
such adjustment.

 

The Clawback Rights
shall terminate following a Change of Control, subject to applicable law, rules and regulations. The amount of Clawback Benefits
to be repaid or surrendered to the Company shall be determined by the Compensation Committee (or the Board, if there is no Compensation
Committee) in accordance with applicable law, rules and regulations. All determinations by the Compensation Committee (or the Board,
if there is no Compensation Committee) with respect to the Clawback Rights shall be final and binding on the Company and Executive.
The parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects
to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”)
and requires recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd Frank Act and any
and all rules and regulations promulgated thereunder from time to time in effect. Accordingly, the terms and provisions of this
Agreement shall be deemed automatically amended from time to time to assure compliance with the Dodd Frank Act and such rules and
regulation as hereafter may be adopted and in effect.

 

    	 	5	 

     

    

 

10.             
Expenses. Executive shall be entitled to prompt reimbursement by the Company for all reasonable ordinary and necessary
travel, entertainment, and other expenses incurred by Executive while employed (in accordance with the policies and procedures
established by the Company for its senior executive officers) in the performance of his duties and responsibilities under this
Agreement; provided, that Executive shall properly account for such expenses in accordance with Company policies and procedures.

 

11.             
Other Benefits; Vacation. During the Employment Period, Executive shall be eligible to participate in incentive,
stock purchase, savings, retirement (401(k)), and welfare benefit plans, including, without limitation, health, medical, dental,
vision, life (including accidental death and dismemberment) and disability insurance plans (collectively, “Benefit Plans”),
in substantially the same manner and at substantially the same levels as the Company makes such opportunities available to the
Company’s managerial or salaried executive employees. During the term of this Agreement, Executive shall be entitled to accrue,
on a pro

rata basis, twenty (20) paid vacation days per year, which if not taken, will accrue and be carried forward into the next year.
No carry forward of vacation past the second year will be granted without the approval of the Compensation Committee of the Board.
Vacation shall be taken at such times as are mutually convenient to Executive and the Company and no more than twenty (20) consecutive
days shall be taken at any one time without the advance approval of the Board.

 

12.             
Termination of Employment.

 

(a)       Death.
If Executive dies during the Employment Period, this Agreement and Executive’s employment with the Company shall automatically
terminate and the Company shall have no further obligations to Executive or his heirs, administrators or executors with respect
to compensation and benefits accruing thereafter, except for the obligation to pay to Executive’s spouse if living (and in
the event she predeceases Executive, then to his heirs, administrators or executors): (i) any earned but unpaid Base Salary accrued
through the date of death, (ii) reimbursement of any and all business expenses paid or incurred by Executive through the termination
date, pursuant to Section 10 above, (iii) any accrued but unused paid time off through the termination date in accordance with
Company policy, and (iv) an amount equal to three (3) months of Executive’s Base Salary (at the rate that was in effect at
the time of death) to be paid within 10 days of Executives' death. In addition, Executive’s spouse and minor children shall
be entitled to Medical Continuation Benefits.

 

(b)       Disability.
In the event that, during the Employment Period, Executive shall be prevented from performing, with or without reasonable accommodation,
his essential duties and responsibilities as Chief Executive Officer by reason of Disability (as defined below), this Agreement
and Executive’s employment with the Company shall automatically terminate and the Company shall have no further obligations
or liability to Executive or his heirs, administrators or executors with respect to compensation and benefits accruing thereafter,
except for the obligation to pay Executive or his spouse if living (and in the event she predeceases Executive, then his heirs,
administrators or executors): (i) any earned but unpaid Base Salary accrued through Executive’s last date of employment with
the Company, (ii) reimbursement of any and all business expenses paid or incurred by Executive through the period ending on the
termination date, pursuant to Section 10 above, and (iii) any accrued but unused paid time off through the termination date in
accordance with Company policy. In addition, Executive’s spouse and minor children shall be entitled to Medical Continuation
Benefits. For purposes of this Agreement, “Disability” shall mean a physical or mental disability that prevents
the performance by Executive, with or without reasonable accommodation, of the essential duties of his job as Chief Executive Officer
for a period of not less than an aggregate of three (3) months during any twelve (12) consecutive months.  The Company shall
provide reasonable accommodations to Executive in accordance with applicable federal, state and local law.

 

    	 	6	 

     

    

 

(c)       Cause.

 

(1)       The
Company may terminate this Agreement and Executive’s employment hereunder for Cause, either during or after the Term. For
purposes of this Agreement, “Cause” shall mean: (a) the willful and continued failure of Executive to perform substantially
his duties and responsibilities for the Company (other than any such failure resulting from Executive’s death or Disability)
after a written demand by the Board for substantial performance is delivered to Executive by the Company, which specifically identifies
the manner in which the Board believes that Executive has not substantially performed his duties and responsibilities, which willful
and continued failure is not cured by Executive within thirty (30) days of his receipt of such written demand; (b) the conviction
of, or plea of guilty or nolo contendere to, a felony, or (c) fraud, dishonesty or gross misconduct which is materially
and demonstratively injurious to the Company. Termination under clauses (b) or (c) of this Section 12(c)(1) shall not be subject
to cure.

 

(2)       For
purposes of this Section 12(c), no act, or failure to act, on the part of Executive shall be considered “willful” unless
done, or omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in, or not opposed
to, the best interest of the Company. Prior to any termination for Cause, Executive will be given five (5) business days written
notice specifying the alleged Cause event and will be entitled to appear (with counsel) before the full Board to present information
regarding his views on the Cause event, and after such hearing, there is at least a majority vote of the full Board (other than
Executive) to terminate him for Cause. After providing the notice in foregoing sentence, the Board may suspend Executive with full
pay and benefits until a final determination pursuant to this Section 12(c) has been made.

 

(3)       Upon
termination of this Agreement for Cause, the Company shall have no further obligations or liability to Executive or his heirs,
administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay Executive (i)
any earned but unpaid Base Salary accrued through Executive’s last date of employment with the Company, (ii) reimbursement
of any and all business expenses paid or incurred by Executive through the period ending on the termination date, pursuant to Section
10 above, and (iii) any accrued but unused paid time off through the termination date in accordance with Company policy.

 

    	 	7	 

     

    

 

(d)       Good
Reason and Without Cause.

 

(1)       The
Company may terminate this Agreement and Executive’s employment with the Company for a reason other than Cause or Disability,
either during or after the Term, by providing prior written notice that will be effective thirty (30) days after delivery of the
notice to Executive, provided, however, the Company in its sole discretion may direct Executive to cease performing services for
the Company during all or any portion of such thirty day period (the “Notice Period”) but will continue to pay Base
Salary and provide benefits through the end of the Notice Period. Subject to the conditions set forth in Section 12(d)(2) below,
Executive may terminate this Agreement and Executive’s employment with the Company for “Good Reason.” For purposes
of this Agreement, “Good Reason” shall mean the occurrence of any of the following events: (A) the assignment, without
Executive’s written consent, to Executive of a title that is not an officer title; (B) a material breach by the Company of
this Agreement; or (C) the re-location of Executive to an office that is more than twenty (20) miles from the Job Site.

 

(2)       Except
with respect to subparagraph “(B)” in Section 12(d)(1) above, Executive shall only be entitled to terminate this Agreement
for Good Reason if: (i) he shall have delivered written notice to the Company within one hundred and eighty (180) days of the date
upon which the facts giving rise to Good Reason occurred (the “Good Reason Date”) of his intention to terminate this
Agreement and his employment with the Company for Good Reason, which notice specifies in reasonable detail the circumstances claimed
to provide the basis for such termination for Good Reason, (ii) the Company shall not have eliminated the circumstances constituting
Good Reason within thirty (30) days of its receipt from Executive of such written notice; and (iii) Executive’s employment
with the Company ends within two hundred and forty (240) days after the Good Reason Date.

 

(3)       In
the event that Executive terminates this Agreement and his employment with the Company for Good Reason or the Company terminates
this Agreement and Executive’s employment with the Company without Cause, the Company shall pay or provide to Executive (or,
following his or her death, to Executive’s spouse if living; but in the event she predeceases Executive, then to his heirs,
administrators or executors) the Separation Payment amount and Medical Continuation Benefits, pursuant to Section 6 above.

 

(4)       Executive
shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise,
nor shall the amount of any payment provided for in this Agreement be reduced by any compensation earned by Executive as the result
of employment by another employer or business or by profits earned by Executive from any other source at any time before and after
the termination date. The Company’s obligation to make any payment pursuant to, and otherwise to perform its obligations
under, this Agreement shall not be affected by any offset, counterclaim or other right that the Company may have against Executive
for any reason.

 

(e)       Without
“Good Reason” by Executive. At any time during or after the Term, Executive shall be entitled to terminate this
Agreement and Executive’s employment with the Company without Good Reason by providing prior written notice that will be
effective thirty (30) days after delivery of the notice to the Company, provided, however, the Company in its sole discretion may
direct Executive to cease performing services for the Company during all or any portion of such thirty day notice period, but will
continue to pay Base Salary and provide benefits through the end of such notice period. Upon termination by Executive of this Agreement
or Executive’s employment with the Company without Good Reason, the Company shall have no further obligations or liability
to Executive or his heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation
to pay Executive (i) any earned but unpaid Base Salary accrued through Executive’s last date of employment with the Company,
(ii) reimbursement of any and all business expenses paid or incurred by Executive through the period ending on the termination
date, pursuant to Section 10 above, and (iii) any accrued but unused paid time off through the termination date in accordance with
Company policy.

 

    	 	8	 

     

    

 

(f)       Change
of Control. For purposes of this Agreement, “Change of Control” shall mean the occurrence of any one or more of
the following: (i) the accumulation (if over time, in any consecutive twelve (12) month period), whether directly, indirectly,
beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended) of 50.1% or more of the shares of the outstanding common stock of the Company, whether by merger,
consolidation, sale or other transfer of shares of Company common stock (other than a merger or consolidation where the stockholders
of the Company prior to the merger or consolidation are the holders of a majority of the voting securities of the entity that survives
such merger or consolidation), (ii) a sale of all or substantially all of the assets of the Company, or (iii) during any period
of twelve (12) consecutive months, the individuals who, at the beginning of such period, constitute the Board, and any new director
whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning of the 12-month period or whose election
or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board; provided,
however, that the following acquisitions shall not constitute a Change of Control for the purposes of this Agreement: (A) any
acquisitions of Company common stock or securities convertible, exercisable or exchangeable into Company common stock directly
from the Company, or (B) any acquisition of Company common stock or securities convertible, exercisable or exchangeable into Company
common stock by any employee benefit plan (or related trust) sponsored by or maintained by the Company.

 

(g)       Any
termination of Executive’s employment by the Company or by Executive (other than termination by reason of Executive’s
death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes of this Agreement,
a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision
in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated, provided, however, failure to provide timely
notification shall not affect the employment status of Executive.

 

13.             
Confidential Information.

 

(a)       Disclosure
of Confidential Information. Executive recognizes, acknowledges and agrees that he has had and will continue to have access
to non-public, secret, and confidential information regarding the Company, its subsidiaries and their respective businesses (“Confidential
Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply,
customer dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter
become part of the public domain, or become known to others through no fault of Executive. Executive acknowledges that such information
is of great value to the Company, is the sole property of the Company, and has been and will be acquired by him in confidence.
In consideration of the obligations undertaken by the Company herein, Executive will not, at any time, during or after his employment
hereunder, reveal, divulge or make known to any person, any Confidential Information acquired by Executive during the course of
his employment, which is treated as confidential by the Company, and not otherwise in the public domain or publicly accessible.
Nothing in this Section 13 prohibits Executive from disclosing Confidential Information, in the course and scope of his employment,
to employees and/or agents of the Company who have a need to know and/or receive such Confidential Information to perform their
duties on behalf of the Company. The provisions of this Section 13 shall survive the termination of Executive’s employment
hereunder for a period of three (3) years. Information will not be deemed to be Confidential Information if: (i) the information
was in Executive’s possession or within Executive’s knowledge before the Company disclosed it to Executive; (ii) the
information was or became generally known to those who could take economic advantage of it; (iii) Executive obtained the information
from a third party that was not known by Executive to be bound by a confidentiality agreement or other obligation of confidentiality
to the Company or any other party with respect to such information; or (iv) Executive is required to disclose the information pursuant
to legal process (e.g. a subpoena), provided that Executive notifies the Company promptly upon receiving or becoming aware
of such legal process.

 

    	 	9	 

     

    

 

(b)       Executive
affirms that he will not rely upon the protected trade secrets or confidential or proprietary information of any prior employer(s)
in providing services to the Company or its subsidiaries.

 

(c)       In
the event that Executive’s employment with the Company terminates for any reason, Executive shall deliver forthwith to the
Company any and all originals and copies, including those in electronic or digital formats, of Confidential Information; provided,
however, Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited
to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing
his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax
purposes, and (iv) copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company.

 

14.             
Non-Competition and Non-Solicitation.

 

(a)       Executive
agrees and acknowledges that the non-competition restrictions set forth herein are reasonable and necessary and do not impose undue
hardship or burdens on Executive. Executive also acknowledges that the products and services developed or provided by the Company,
its affiliates and/or its clients or customers are or are intended to be sold, provided, licensed and/or distributed to customers
and clients primarily in and throughout the United States (the “Territory”) (to the extent the Company comes
to operate, either directly or through the engagement of a distributor or joint or co-venturer, or sell a significant amount of
its products and services to customers located, in areas other than the United States during the term of the Employment Period,
the definition of Territory shall be automatically expanded to cover such other areas), and that the Territory, scope of prohibited
competition, and time duration set forth in the non-competition restrictions set forth below are reasonable and necessary to maintain
the value of the Confidential Information of, and to protect the goodwill and other legitimate business interests of, the Company,
its affiliates and/or its clients or customers. The provisions of this Section 14 shall survive the termination of Executive’s
employment hereunder.

 

    	 	10	 

     

    

 

(b)       Executive
hereby agrees and covenants that he shall not without the prior written consent of the Company, directly or indirectly, in any
capacity whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder, officer,
director or any other individual or representative capacity (other than (i) as a holder of less than ten (10%) percent of the outstanding
securities of a Company whose shares are traded on any national securities exchange or (ii) as a limited partner, passive minority
interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may hold an equity or
debt position in portfolio companies that are competitive with the Company; provided however, that Executive shall be precluded
from serving as an operating partner, general partner, manager or governing board designee with respect to such portfolio companies),
or whether on Executive’s own behalf or on behalf of any other person or entity or otherwise, during the “Non-Competition
and Non-Solicitation Period” (as defined below) and within the Territory:

 

(1)       Engage,
own, manage, operate, control, be employed by, consult for, or participate in the ownership, management, operation or control of
any business in competition with the business of the Company.

 

(2)       Recruit,
solicit or hire, or attempt to recruit, solicit or hire, any employee, or independent contractor of the Company to leave the employment
(or independent contractor relationship) thereof, whether or not any such employee or independent contractor is party to an employment
agreement, for the purpose of competing with the business of the Company;

 

(3)       Attempt
in any manner to solicit from any customer of the Company, with whom Executive had significant contact during Executive’s
employment by the Company (whether under this Agreement or otherwise), business that is competitive with the business done by the
Company, or to persuade or attempt to persuade any such customer to cease to do business or to reduce the amount of business which
such customer has customarily done with the Company, or if any such customer elects to move its business to a person other than
the Company, provide any services of the kind or competitive with the business of the Company for such customer, or have any discussions
regarding any such service with such customer, on behalf of such other person; or

 

(4)       Interfere
with any relationship, contractual or otherwise, between the Company and any other party, including, without limitation, any supplier,
distributor, co-venturer or joint venturer of the Company, for the purpose of soliciting such other party to discontinue or reduce
its business with the Company.

 

With respect to the
activities described in Paragraphs (1), (2), (3) and (4) above, the restrictions of this Section 14(b) shall continue during the
Employment Period and until one (1) year after the termination of Executive’s employment with the Company (hereinafter the
“Non-Competition and Non-Solicitation Period”); provided, however, that if this Agreement or Executive’s
employment is terminated by Executive for Good Reason or by the Company without Cause, then the restrictions of this Section 14
shall terminate concurrently with the termination and shall be of no further effect.

 

    	 	11	 

     

    

 

15.             
Inventions. All systems, inventions, discoveries, apparatus, techniques, methods, know-how, formulae or improvements
made, developed or conceived by Executive during Executive’s employment by the Company that (i) are directly relevant to
the Company’s business as then constituted, (ii) are developed as a part of the tasks and assignments that are the duties
and responsibilities of Executive, and (iii) were created using substantially the Company’s resources, such as time, materials
and space, shall be and continue to remain the Company’s exclusive property, without any added compensation or any reimbursement
for expenses to Executive (except expenses pursuant to Section 10 must be paid to Executive), and upon the conception of any and
every such invention, process, discovery or improvement during the Employment Period and without waiting to perfect or complete
it, Executive promises and agrees that Executive will immediately disclose it to the Company and to no one else and thenceforth
will treat it as the property and secret of the Company. Executive will also execute any instruments requested from time to time
by the Company to vest in it complete title and ownership to such invention, discovery or improvement and will, at the request
of the Company, do such acts and execute such instruments as the Company may require, but at the Company’s expense to obtain
patents, trademarks or copyrights in the United States and foreign countries, for such invention, discovery or improvement and
for the purpose of vesting title thereto in the Company, all without any reimbursement for expenses (except as provided in Section
10 or otherwise) and without any additional compensation of any kind to Executive.

 

16.             
Section 409A.

 

The provisions of this
Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and any final regulations and guidance promulgated thereunder (“Section 409A”) and shall be construed in a manner
consistent with the requirements for avoiding taxes or penalties under Section 409A. The Company and Executive agree to work together
in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or
desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

To the extent that
Executive will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A, (a) the
right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount of expenses
eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement,
or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (b) shall not be violated
with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are
subject to a limit related to the period the arrangement is in effect and (c) such payments shall be made on or before the last
day of the taxable year following the taxable year in which you incurred the expense.

 

A termination of employment
shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or
benefits upon or following a termination of employment unless such termination constitutes a “Separation from Service”
within the meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,”
“termination of employment” or like terms shall mean Separation from Service.

 

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Each installment payable
hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation
Section 1.409A-2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral” rule set forth
in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule. Each other payment
is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii),
et. seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from Code Section 409A being subject
to Code Section 409A.

 

Notwithstanding anything
to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A, any payment
otherwise due to Executive on or within the six (6) month period following Executive’s termination will accrue during such
six (6) month period and will become payable in one lump sum cash payment on the date six (6) months and one (1) day following
the date of Executive’s termination of employment, to the extent required to avoid any adverse tax consequences under Section
409A. Any remaining payment(s) will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding
anything herein to the contrary, if Executive dies following termination but prior to the six (6) month anniversary of Executive’s
termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum upon the date of Executive’s
death and all other amounts will be payable in accordance with the payment schedule applicable to each payment or benefit, to the
extent and in a manner consistent with Section 409A.

 

17.             
Release. By executing this Agreement, and in consideration of the promises by the Company in this Agreement, Executive
waives, releases, and forever discharges the Company and its current and former parents, subsidiaries, affiliates, divisions, shareholders,
owners, members, officers, directors, attorneys, agents, employees, successors, and assigns, and the Company’s parents’,
subsidiaries’, and affiliates’ divisions, shareholders, owners, members, officers, directors, attorneys, agents, employees,
successors, and assigns (collectively referred to as the “Company Releasees”) from any and all rights, causes of action,
claims or demands, whether express or implied, known or unknown, arising on or before the date that Employee executes this Agreement,
which Employee has or may have against the Company and/or the Company Releasees, that arise from, or are related to, the Original
Agreement and the formation of this Agreement, including without limitation any claim that the Company breached the Original Agreement;
that Company failed to pay any obligation owed to Executive pursuant to the Original Agreement; that the Company’s Non-Renewal
Notice did not comply with the Original Agreement; or that this Agreement is not a binding, enforceable and valid contract.

 

18.             
Miscellaneous.

 

(a)       Executive
acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique and extraordinary
character and that it would be difficult or impossible to replace such services. Furthermore, the parties acknowledge that monetary
damages alone would not be an adequate remedy for any breach by Executive of Section 13 or Section 14 of this Agreement. Accordingly,
Executive agrees that any breach by Executive of Section 13 or Section 14 of this Agreement shall entitle the Company, in addition
to all other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such breach. The
parties understand and intend that each restriction agreed to by Executive hereinabove shall be construed as separable and divisible
from every other restriction, that the unenforceability of any restriction shall not limit the enforceability, in whole or in part,
of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part as applicable law
allows. If any provision in this Agreement is determined to be invalid or unenforceable by a court of competent jurisdiction, the
parties agree that the remaining provisions of the Agreement will nevertheless continue to be valid and enforceable. The remedy
of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies that the Company
may have at law or in equity.

 

    	 	13	 

     

    

 

(b)       Neither
Executive nor the Company may assign or delegate any of their rights or duties under this Agreement without the express written
consent of the other; provided, however, that the Company shall have the right to delegate its obligation of payment
of all sums due to Executive hereunder, provided that such delegation shall not relieve the Company of any of its obligations
hereunder.

 

(c)       During
the term of this Agreement, the Company (i) shall indemnify and hold harmless Executive and his heirs and representatives as, and
to the extent, provided in the Company’s bylaws and (ii) shall cover Executive under the Company’s directors’
and officers’ liability insurance on the same basis as it covers other senior executive officers and directors of the Company.

 

(d)       This
Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to Executive’s
employment by the Company, supersedes all prior understandings and agreements, whether oral or written, between Executive and the
Company, and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged (it
being understood that, pursuant to Section 7, Share Awards shall govern with respect to the subject matter thereof). The invalidity
or partial

invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No waiver by
either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same time or any prior or subsequent time.

 

(e)       This
Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors,
heirs, beneficiaries and permitted assigns.

 

(f)       The
headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

(g)       All
notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by reputable national overnight delivery service (e.g. Federal Express) for overnight delivery to the Company at its
principal executive office or to Executive at his address of record in the Company’s records, or to such other address as
either party may hereafter give the other party notice of in accordance with the provisions hereof. Notices shall be deemed given
on the sooner of the date actually received or the third business day after deposited in the mail or one business day after deposited
with an overnight delivery service for overnight delivery.

 

    	 	14	 

     

    

 

(h)       This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Arizona without reference to
principles of conflicts of laws and each of the parties hereto irrevocably consents to the jurisdiction and venue of the federal
and state courts located in the County of Pima, State of Arizona.

 

(i)       This
Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date set forth
above.

 

(j)       Executive
represents and warrants to the Company that he has the full power and authority to enter into this Agreement and to perform his
obligations hereunder and that the execution and delivery of this Agreement and the performance of his obligations hereunder will
not conflict with any agreement to which Executive is a party.

 

(k)       The
Company represents and warrants to Executive that it has the full power and authority to enter into this Agreement and to perform
its obligations hereunder and that the execution and delivery of this Agreement and the performance of its obligations hereunder
will not conflict with any agreement to which the Company is a party.

 

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

 

    	 	15	 

     

    

 

IN WITNESS
WHEREOF, Executive and the Company have caused this Executive Employment Agreement to be executed as of the date first above written.

 

	 	THE COMPANY:
	 	 	 
	 	AUDIOEYE, INC.
	 	 	 
	 	By:	/s/ Carr Bettis
	 	 	Name: Carr Bettis
	 	 	Title: Executive Chairman
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	/s/ Todd Bankofier
	 	Todd Bankofier

  

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