Document:

Exhibit
10.58

 

CERTAIN
INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE
REGISTRANT IF PUBLICLY DISCLOSED. 

 

[***]
INDICATES THAT INFORMATION HAS BEEN REDACTED. 

 

AMENDED
AND RESTATED DISTRIBUTION AGREEMENT 

FOR

“PRIVATE
LABELED” PRODUCTS

 

This
Amended and Restated Distribution Agreement (this “Agreement”) is made and entered into on this 10th
day of December, 2020 (“Effective Date”), by and between: NanoVibronix, Inc., having
its principal place of business at 525 Executive Boulevard, Elmsford, NY 10523 (hereinafter, the “Supplier”);
and Ultra Pain Products Inc., having its principal place of business at 745 Shotgun Road, Suite D, Sunrise, FL 33326 (hereinafter,
the “Purchaser”) (the aforesaid herein referred to individually as a “Party” and
together as the “Parties”).

 

RECITALS

 

WHEREAS,
Supplier own certain intellectual property rights in connection with its proprietary PainShield® technology, and is engaged in the
manufacture of certain PainShield® products incorporating said technology and relating to acoustic treatment of tissues for a variety
of medical applications

 

WHEREAS,
on June 19, 2020, the Parties entered into and executed that certain Distribution Agreement (hereinafter, the “Original Agreement”),
effective as of said execution date, pursuant to which Supplier granted Purchaser certain exclusive rights to sell and distribute the
Products in the Field within the Territory;

 

WHEREAS,
Section 2.2 of that Original Agreement grants Purchaser certain rights to negotiate a separate contract with Supplier for “private
labeled” Products;

 

WHEREAS,
pursuant to that Section 2.2 of that Original Agreement, and subject to the terms and conditions set forth herein, Supplier and
Purchaser desire to hereby enter into such a contract for the manufacture and supply of “private labeled” Products;

 

WHEREAS,
subject to the terms and conditions of this Agreement, Supplier agrees to sell, and Purchaser agrees to purchase, the Private Labeled
Products, and Purchaser shall have the exclusive right to purchase such Private Labeled Products from Supplier;

 

WHEREIN,
in the interest of consistency in language and uniformity of the Parties’ conduct, the Parties desire that the Original Agreement
be amended and restated in its entirety as set forth herein; and

 

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NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein, the receipt and sufficiency of which is hereby
acknowledged, the Original Agreement is hereby amended and restated in its entirety as follows:

 

	1.	DEFINITIONS

 

	 	1.1.	“Products”
    means Supplier’s proprietary PainShield® devices and any related accessories, components thereof, and attachments
    thereto, which utilize acoustic ultrasound for medical treatments, including pain relief and the inhibition of infections not relating
    to wound care, as more specifically identified in the attached Appendix A. Should Supplier release, during the Term of this
    Agreement, any new or updated versions of the subject PainShield® devices, related accessories, components thereof, or attachments
    thereto, including (but not limited to) Supplier’s recently released PainShield®PlusTM, such new or updated
    versions shall be included within the scope of Products as defined herein. For the avoidance of doubt, the Products shall not encompass
    Supplier’s certain other products relating to its other proprietary technologies, such as and specifically including Supplier’s
    WoundShield® and UroShield® devices and related technologies.
	 	 	 
	 	1.2.	“Private
    Labeled Products” means products that are substantially the same as Supplier’s Products that have been manufactured
    and “private labeled” for Purchaser in accordance with Purchaser’s approved Specifications, for resale by Purchaser
    under Purchaser’s label(s), brand(s), or trademark(s).
	 	 	 
	 	1.3.	“Specifications”
    as used herein refers to one or more of the overall aesthetic design, visual appearance and color, form, functional performance,
    compatibility and operational characteristics, raw materials, labeling, packaging, and instructions relating to manufacture or use
    of the Private Labeled Products, as well as compliance with applicable standards relating to the Private Labeled Products.
	 	 	 
	 	1.4.	“Territory”
    means the United States of America.
	 	 	 
	 	1.5.	“DME
    Distributor” as used herein means a domestic (U.S.) individual or entity licensed by a local, state, or regional organization
    to supply medical products classified as “Durable Medical Equipment (“DME”), Prosthetics, Orthotics and Supplies”
    (“DMEPOS”) to customers or end users within the Territory. 
	 	 	 
	 	1.6.	“Protected
    Customers” means customers or end users to whom Purchaser or Purchaser’s DME Distributors sell the Private Labeled
    Products during the Term, as established from sales records provided to Supplier pursuant to Purchaser’s and Purchaser’s
    DME Suppliers’ reporting obligations under Section 3.10.
	 	 	 
	 	1.7.	“Field”
    as used in connection with the exclusive right granted to Purchaser hereunder means (a) Purchaser’s sales of the Private
    Labeled Products within the Territory to or through DME Distributors; and (b) Purchaser’s continued sales of the Private Labeled
    Products and Products to its Protected Customers. Specifically excluded from the Field are: (a) direct sales of Products that have
    not been privately labeled, except for direct sales of Products to Purchaser’s Protected Customers; (b) any sales of
    Products or Private Labeled Products to any Veteran’s Facilities; and (c) any sales of Products or Private Labeled Products
    made pursuant to a Federal Supply Schedule.

 

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	 	1.8.	“Registration”
    means all registrations, permissions, consents, approvals, or licenses (including, without limitation, those required to
    be made with or given by (as appropriate) any governmental department or any enforcement body constituted under the law of the Territory
    for licensing or other regulatory purposes relating to the Products) required to enable the Products to be lawfully marketed, distributed,
    and sold in the Territory.
	 	 	 
	 	1.9.	“Confidential
    Information” means information of a Party that is identified or reasonably understood as being confidential or constitutes
    proprietary or trade secret information, that is disclosed to the other Party or otherwise becomes known by the other Party during
    the Term or that was disclosed to the other Party or otherwise became known by the other Party between the effective date of the
    Original Agreement and the Effective Date hereof. Such Confidential Information may include, without limitation: business plans,
    customer lists, financial statements, flow charts, product plans, technical information, and/or relevant intellectual property know-how.
    Moreover, all contents, terms, and conditions of this Agreement, as well as any documents or verbally-shared information relating
    to this Agreement, constitute Confidential Information.
	 	 	 
	 	1.10.	“Control”
    as used in Section 7.2 herein, means the direct or indirect possession of power to direct or cause the direction of
    management or policies of a Party, whether through ownership, stock, or other securities, by contract, or otherwise. Ownership of
    more than fifty percent (50%) of the beneficial interest of a Party shall be conclusive evidence that Control of such Party exists.
    

 

	2.	GRANT
    OF RIGHTS 

 

	 	2.1.	Pursuant
    to this Agreement, and in consideration of Purchaser paying Supplier, on even date herewith, an up-font sum of $30,000 (USD)
    (as the separate “licensing fee” referenced in Section 2.2 of Original Agreement), Supplier hereby grants to Purchaser,
    for the Term of this Agreement, the exclusive right to domestic (U.S. ) sales of the Private Labeled Products within the Field as
    defined in Section 1.7. 
	 	 	 
	 	2.2.	In
    addition Purchaser’s aforementioned exclusive right to sell Private Labeled Products within the Field, Supplier further grants
    Purchaser the exclusive right to sell Products and the Private Labeled Products to its Protected Customers for a period of twelve
    (12) months following the date of Purchaser’s or a DME Supplier’s first sale to the Protected Customers, which shall
    be based on records submitted to Supplier in accordance with Purchaser’s and DME Distributors’ reporting obligations
    under Section 3.10. The Private Labeled Products manufactured for and supplied to Purchaser by Supplier pursuant to this Agreement
    shall conform to Purchaser’s approved Specifications. Supplier agrees that it shall not itself produce or manufacture, or authorize,
    request, or permit any third-party to produce or manufacture the Private Labeled Products. 
	 	 	 
	 	2.3.	Supplier
    retains the exclusive right to modify: (a) the Products, and, by extension, the Private Labeled Products based upon such Products,
    including by deleting and/or adding certain Products, related accessories, components thereof, or attachments thereto; and (b) subject
    to Section 5.1 (guaranteeing prices through the end of 2021), the prices for any Private Labeled Products as currently listed
    in Appendix A. 

 

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	 	2.3.1.	Modification
    of Products. Supplier’s right to modify Private Labeled Products under this Section is subject to such modification (i)
    being reasonable, (ii) not materially altering the Specifications for the Private Labeled Products, and (iii) Supplier providing
    Purchaser with written notice of the modification at least sixty (60) days prior to such modification becoming effective. Any modifications
    to Private Labeled Products departing from the original Specifications shall require the mutual written agreement of the Parties.
    
	 	 	 
	 	2.3.2.	Modification
    of Price. Supplier’s right to modify the pricing of the Private Labeled Products under this Section is subject to such
    modification (i) being reasonable, (ii) not increasing the current prices by more than [***]%, and (iii) Supplier providing
    Purchaser with written notice of the price modification at least sixty (60) days prior to such modification becoming effective. 

 

	 	2.4.	The
    rights granted under this Section 2 are contingent on and subject to Purchaser (a) paying the up-front sum of $30,000 (USD)
    pursuant to Section 2.1, and (b) having met its obligations under the Original Agreement through the end of the current
    fiscal year (2020), specifically the minimum order requirements and payments of all associated invoices pursuant to the terms of
    the Original Agreement. For clarification, the foregoing are prerequisites to this Agreement becoming effective.

 

3.
GENERAL RIGHTS AND OBLIGATIONS 

 

	 	3.1.	Private
    Labeled Products. Purchaser hereby agrees to purchase Private Labeled Products exclusively and solely from Supplier, and Supplier
    hereby agrees to manufacture Private Labeled Products in accordance with Purchaser’s Specifications and to supply Purchaser
    with Private Labeled Products in quantities set forth in Accepted Purchase Orders. 
	 	 	 
	 	3.2.	Minimum
    Order Requirement. In order to meet the quarterly and yearly minimum order requirements of this Agreement, Purchaser hereby agrees
    that it shall purchase the Private Labeled Products in at least the quantities specified in Tables 1-4 of Appendix C.
    
	 	 	 
	 	3.3.	Specifications
    for Private Labeled Products. In consideration Purchaser’s up-front payment of $30,000 concurrently made on the
    Effective Date of this Agreement, Supplier agrees to provide Purchaser with certain proposed Specifications for the Private Labeled
    Products no later than February 1, 2020. Subject to Purchaser’s final approval, the final Specifications for the Private
    Labeled Products shall be mutually agreed upon by the Parties. Specifications approved by Purchaser for the Private Labeled Products
    must be able to be manufactured in a manner that is reasonably similar to the Supplier’s current manufacturing process. 
	 	 	 
	 	3.4.	Promotion
    of Private Labeled Products. It is the sole responsibility of Purchaser to, in a commercially reasonable manner: (i) market and
    promote the Private Labeled Products at relevant tradeshows, conferences, and other networking events; (ii) line up and interact
    with DME Distributors; (iii) educate DME Distributors and/or end users about the Private Labeled Products; and (iv) service reasonable
    requests from end users (including patients and physicians) relating to the Private Labeled Products. For purposes of promoting the
    Private Labeled Products, Purchaser and DME Distributors to whom Purchaser sells the Private Labeled Products shall have the right
    and a royalty-free license to use Supplier’s relevant trademarks for purposes of promoting, marketing or selling Private Labeled
    Products in the Territory. 
	 	 	 
	 	3.5.	Purchaser
    Pricing of Labeled Products. Purchaser and any DME Distributors to whom Purchaser sells Private Labeled Products shall have the
    right to set resale prices, bill, and collect payments for its sales of Private Labeled Products, subject to the following:

 

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	 	3.5.1.	Information
    or documents relating to Purchaser’s and any DME Distributors’ pricing of the Private Labeled Product shall not be publicized,
    including (but not limited to) on any websites, in public forums, events, or discussions, on any social media platform, or in printed
    publications. Furthermore, Purchaser’s and any DME Distributor’s pricing of the Private Labeled Products shall not be
    disclosed to any third-party that has not specifically requested a price quote for the Private Labeled Products.
	 	 	 
	 	3.5.2.	Any
    non-public pricing set by Purchaser and any DME Distributor in connection with its resale of the Private Labeled Products to end
    users or consumers shall not be below the manufacturer’s list price. That is, the manufacturer’s list price is the minimum
    price at which Purchaser and any DME Distributor may sell the Private Labeled Products, and excludes any applicable sales tax,
    VAT, and freight charges.
	 	 	 
	 	3.5.3.	The
    manufacturer’s list price for the Products (not privately labeled) as of the Effective Date of this Agreement is $[***].
    Any change in the manufacturer’s list price for the Products shall be communicated to Purchaser in writing. 

 

	 	3.6.	Limitations.
    Purchaser hereby acknowledges that the exclusive right granted under this Agreement is for the purchase of Private Labeled Products
    from Supplier, and the subsequent domestic sale of said Private Labeled Products to or through DME Distributors. 
	 	 	 
	 	3.7.	Modifications
    and Branding. Purchaser acknowledges that in no event shall Purchaser or any DME Distributor alter, disassemble, reassemble,
    or modify in any way any Private Labeled Products purchased from Supplier. Purchaser further acknowledges that it shall not alter
    any of the Supplier’s trademarks appearing on the Private Labeled Products, packaging, or inserts. 
	 	 	 
	 	3.8.	Warranties.
    Purchaser acknowledges that it shall sell the Private Labeled Products under Supplier’s Limited Warranty, included in Appendix
    B hereto. Purchaser agrees that it shall not make any representations or give any warranties concerning the Private Labeled Products
    or the capabilities of the Private Labeled Products which are false or misleading in any way or go beyond the warranties and representations
    made by Supplier in this Agreement. 
	 	 	 
	 	3.9.	FDA
    Requirements. To ensure continued compliance with the U.S. Food and Drug Administration’s (“FDA”) requirements,
    Purchaser and any DME Distributors to whom Purchaser sells Private Labeled Products shall not, directly or indirectly, supply any
    Private Labeled Products comprising a PainShield® device to patients without first obtaining an order or prescription from a
    physician, if applicable FDA rules or regulations so require. Purchaser and any DME Distributors to whom Purchaser sells Private
    Labeled Products shall be responsible for maintaining records of all such physician prescriptions for orders of Private Labeled Products
    that include a PainShield® device.

 

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	 	3.10.	Reporting.
    To ensure compliance with FDA requirements as set forth in Section 3.9 above and also in the event of any Private Labeled
    Product becoming subject to a recall, Purchaser and any DME Distributors to whom Purchaser sells Private Labeled Products shall maintain,
    during the Term, a complete record of all sales and distributions of Private Labeled Products, including all invoices, including
    at least the following information: customer name, date of sale, shipment date, serial number(s) of Private Labeled Products, and
    any physician prescriptions for any orders of Private Labeled Products that include a PainShield® device pursuant to Section
    3.9 above. The complete records maintained by Purchaser and DME Distributors shall be promptly supplied to Supplier on at least
    a bi-annual basis, subject to any applicable rules, regulations, or statutes regarding patient or consumer privacy and other applicable
    laws and regulations. Failure to comply with the reporting obligations under this Section shall void Supplier’s general warranty
    (provided in Appendix B) for any Private Labeled Products not reflected in Purchaser’s or DME Distributors’ records.
	 	 	 
	 	3.11.	Confidentiality.
    Each Party hereto agrees that, except as otherwise required by law, it shall keep confidential and not publicly disclose during
    the Term, and for a period of three (3) years thereafter, any Confidential Information as defined in Section 1.10 hereof,
    including the contents of this Agreement. Notwithstanding the foregoing, each Party’s confidentiality obligations with respect
    to Confidential Information that constitutes a trade secret under the laws of any jurisdiction within the Territory shall survive
    until such Confidential Information is no longer deemed to be a trade secret under such applicable law.
	 	 	 
	 	3.12.	DME
    Distributors. Purchaser shall be responsible for all DME Distributors to whom it sells Products or Private Labeled Products adhering
    to the terms set forth in Sections 3.5-3.11 above. The failure of Purchaser or any DME Distributor to whom it sells Products
    or Private Labeled Products to comply with the requirements of this section and as specifically set forth in Sections 3.5-3.11
    above, and Purchaser’s or DME Distributor’s failure to remedy such noncompliance within ten (10) days after receiving
    written notice thereof, shall constitute a breach and result in Supplier having the unilateral right to terminate this Agreement.
    As acknowledgment of Supplier’s liability assumed hereunder, Supplier has executed a written acknowledgment of its obligations
    and the obligations assumed with respect to any DME Distributors to whom it sells Private Labeled Products in Appendix D hereto.
    
	 	 	 
	 	3.13.	No
    Assignment. Neither Party shall assign or delegate to a third-party any of its rights, interests, or obligations under this Agreement
    without prior written consent from the other Party. No assignment, delegation, or subcontract by either Party shall relieve such
    Party from its obligations and liabilities under this Agreement. 
	 	 	 
	 	3.14.	Non-Compete.
    Purchaser hereby acknowledges that, during the Term and continuing for a period of six (6) months after expiration or termination
    of this Agreement, Purchaser shall not market, distribute, or sell in the Territory any medical or pain management devices that compete
    with Supplier’s Products.

 

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	4.	PURCHASE
    ORDERS 

 

	 	4.1.	Purchase
    Orders. Purchaser’s orders for Private Labeled Products shall be submitted to Supplier in a form mutually agreed upon by
    the Parties and consistent with the terms of this Agreement (“Purchase Order”). At a minimum, a Purchase
    Order for Purchaser’s requested Private Labeled Products must: (a) identify the specific Private Labeled Products being ordered
    (e.g., by model or product number(s)) and designated quantities thereof; and (b) allow for a lead time of at least thirty (30) business
    days commencing on the date of Supplier’s receipt of the Purchase Order. 
	 	 	 
	 	4.2.	Acceptance
    of Purchase Orders. Upon written confirmation from Supplier specifying (a) the lead time needed for manufacture of Private Labeled
    Products listed in a Purchase Order, and (b) the Total Cost thereof, the subject Purchase Order shall be deemed “accepted”
    (“Accepted Purchase Order”). An Accepted Purchase Order cannot be canceled and the Total Cost specified
    in an Accepted Purchase Order is not refundable. 

 

	5.	PRICING
    AND PAYMENT TERMS

 

	 	5.1.	Pricing.
    The prices at which Supplier will sell Private Labeled Products to Purchaser are set forth in Appendix A hereto. All prices
    or cost schedules included with this Agreement for Private Labeled Products constitute an introductory start-up price that is guaranteed
    by Supplier through the end of the 2021 calendar year. Thereafter, pursuant and subject to Section 2.2 of this Agreement and
    the limitations thereof, one or more of the Private Labeled Products and/or the prices of such Private Labeled Products are subject
    to modification by Supplier. For clarification, the prices of Private Labeled Products in this Section refer to the prices at which
    Supplier agrees to manufacture and sell Private Labeled Products to Supplier and Supplier agrees to purchase the Private Labeled
    Products from Supplier in quantities meeting the minimum order obligations of Section 2.2 and set forth in Appendix C.
	 	 	 
	 	5.2.	Taxes.
    Any prices listed herein for Private Labeled Products do not include applicable sales, use, value-added, excise or any other
    tax, duty, or charge that may now be or later become imposed by applicable federal, state, or other authority. Any such applicable
    taxes, duties, or other charges are the sole responsibility and shall be included in the Total Cost to be fully paid by Purchaser
    pursuant to, or in addition to (if charges incurred later) Supplier’s invoiced amounts for each Accepted Purchase Order.
	 	 	 
	 	5.3.	Invoicing.
    Supplier’s invoice for Private Labeled Products sold to Purchaser will be remitted to Purchaser on the date Supplier accepts
    a Purchase Order in the form of or as part of the Accepted Purchase Order. The invoiced amount of an Accepted Purchase Order (“Total
    Cost”) includes: (a) the cost of Private Labeled Products based on the type(s) and quantity(ies) of Private Labeled
    Product(s) specified in Purchaser’s Purchase Order based on the applicable pricing schedule; (b) any applicable sales, use,
    value added, excise or any other tax, duty, or charge that is in effect or will be imposed by any federal, state or other authority
    (see Section 5.2 above); (c) all applicable shipping and freight costs; and (d) 10% of any shipping insurance costs. 
	 	 	 
	 	5.4.	Payments.
    Pursuant to Section 5.2 above, Purchaser shall be provided the Total Cost of each Purchase Order in the form of an Accepted
    Purchase Order. Upon issuance of an Accepted Purchase Order, the Total Cost provided therein shall be due and payable as specified
    below.

 

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	 	5.4.1.	Initial
    50% of Total Cost Before Manufacture. At least half (50%) of the Total Cost set forth in an Accepted Purchase Order shall be
    paid by Purchaser within 2 business days following the issuance date of the Accepted Purchase Order. As this initial payment by Purchaser
    is a prerequisite to Supplier beginning manufacture of the Private Labeled Products specified in the Accepted Purchase Order, delayed
    payment by Purchaser is reasonably likely to delay and extend the estimated lead times for Supplier’s completion of the Purchase
    Order. 
	 	 	 
	 	5.4.2.	Remaining
    50% of Total Cost Before Final Delivery. The remaining 50% of the Total Cost shall be paid by Purchaser upon receipt of Supplier’s
    written notification confirming that the Private Labeled Products specified in the Accepted Purchase Order have been manufactured
    and are ready for Final Delivery. As Purchaser’s payment in full of the Total Cost is a prerequisite for the Final Delivery
    of the Private Labeled Products to Purchaser, delayed payment by Purchaser will delay Final Delivery of the Private Labeled Products
    to Purchaser by at least the same extent. 
	 	 	 
	 	5.4.3.	Late
    Payments. Purchaser’s timely payments of invoices for accompanying Accepted Purchase Orders are essential for achieving
    the objectives of this Agreements. Any invoiced amount not timely paid in full within thirty (30) days shall incur an interest charge
    of 10%. For purposes of this Section, timeliness of Purchaser’s payment shall be calculated from: (a) the issuance date of
    the Accepted Purchase Order with respect to the payment due under Section 5.4.1, and (b) Supplier’s written notification
    of manufactured Private Labeled Products being ready for Final Shipment with respect to the payment due under Section 5.4.2.

 

	6.	COMMERCIAL
    TERMS

 

	 	6.1.	Shipping:
    Supplier shall serve as the fulfillment center for Purchaser’s orders of Private Labeled Products. All “final shipments”
    of Private Labeled Products to Purchaser will be from Tyler, Texas via United States Postal Service Priority Mail, UPS, and/or Fed
    Ex (as specified) (“Final Shipment”). Although costs of shipping Products to Purchaser are not reflected
    in Supplier’s pricing of the Private Labeled Products, Purchaser shall be solely responsible for all costs of the “final
    shipments” of Private Labeled Products, and also for 10% of any shipping insurance charges, as reflected in the Total Cost.
	 	 	 
	 	6.2.	Delivery.
    Private Labeled Products purchased from Supplier by Purchaser shall be delivered consistent with the terms of this Agreement
    and in accordance with Purchaser’s standard terms for Purchase Orders. Title and risk of loss for Private Labeled Products
    shall be deemed to pass to Purchaser upon Supplier’s tender of the Private Labeled Products for Final Shipment to the delivery
    location designated by Purchaser in the applicable Purchase Order (or to such other location as mutually agreed by the Parties) (“Delivery
    Location”). “Final Delivery” means that the relevant Private Labeled Products have been delivered
    to the Delivery Location and accepted by Purchaser (or the applicable DME Distributor if the Delivery Location is a location owned
    or controlled by a DME Distributor). 

 

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	 	6.3.	Warranty
    & Returns. Pursuant to Supplier’s “General Warranty and Return Policy” included in Appendix B hereto,
    Private Labeled Products sold to Purchaser pursuant to this Agreement are warranted by Supplier for twelve (12) months following
    the date of Final Delivery and shall (a) conform to the applicable Specifications, (b) be fit for their intended purpose and operate
    as intended, (c) be merchantable, (d) and not infringe or misappropriate any third party’s patent or other intellectual property
    rights. Supplier’s warranty of the Private Labeled Products shall pass through and apply to end-users that purchase the Private
    Labeled Products from Purchaser or from a DME Distributor to whom Purchaser sold the Private Labeled Products. Supplier’s warranty
    does not apply to shields (patches). Although included in the Private Labeled Products of this Agreement, the shields are warranted
    only to be merchantable, suitable for their intended use, and shall not infringe or misappropriate any third party’s patent
    or other intellectual property rights, and such warranty ceases to apply following first use/application of said shield. Also specifically
    excluded by Supplier’s warranty are Private Labeled Products that have been subject to: (i) misuse or accident; (ii) attempted
    repair by a person that has not been specifically authorized by Supplier to perform said repair; or (iii) use in a manner that is
    not specifically authorized or approved in the User Manual for such Private Labeled Products.
	 	 	 
	 	6.4	Inspection
    and Rejection of Nonconforming Products. Purchaser (or the applicable DME Distributor if a shipment is sent directly to a DME
    Distributor) has the right to inspect the Private Labeled Products on or after the date of delivery. Purchaser (or the applicable
    DME Distributor), at its sole option, may inspect all or a sample of the Private Labeled Products in such shipment, and may reject
    all or any portion of such Private Labeled Products if it determines such Private Labeled Products are nonconforming (including by
    failure to adhere to the Specifications), damaged, or defective. If Purchaser (or a DME Distributor) rejects any portion of the Private
    Labeled Products, Purchaser (or the applicable DME Distributor) has the right, effective upon written notice to Supplier, to require
    replacement of such rejected Private Labeled Products from Supplier pursuant to Supplier’s General Warranty and Return Policy.

 

	7.	TERM
    AND TERMINATION

 

	 	7.1.	Term.
    Subject to the termination of this Agreement by a Party as set forth herein, the Term of this Agreement shall begin on the Effective
    Date and continue until the end of the 2023 calendar year (“Initial Term”). At the end of the Initial Term,
    and annually thereafter, the Agreement will automatically renew for an additional one (1) year term (“Renewal Term,”
    and, together with the Initial Term, the “Term”), or for one or more additional Renewal Term(s) as the
    case may be, provided that: (a) Purchaser has met the minimum purchase requirements as set forth herein; and (b) neither Party
    has provided written notice to the other Party of its desire to not renew the Agreement. Should a Party desire to not renew
    the Agreement for a Renewal Term, written notice of the same must be provided to the other Party at least thirty (30) days prior
    to the end of the Initial Term or any subsequent Renewal Term then in effect. 
	 	 	 
	 	7.2.	Termination
    by Parties. Either Party may terminate this Agreement upon providing the other Party with written notice of its desire to terminate
    no less than ninety (90) days before the date of termination. A Party’s exercise of its rights to terminate under this Section
    shall not affect or eliminate its or the other Party’s obligations under this Agreement during the prerequisite notice period,
    i.e., before the date of the termination.

 

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	 	7.3.	Failure
    to Meet Minimum Order Requirements. Should Purchaser fail to meet (a) the minimum quarterly order requirements for any two (2)
    successive calendar quarters, or (b) the minimum yearly order requirement for any one (1) calendar year, Supplier shall have the
    right to unilaterally terminate this Agreement. 
	 	 	 
	 	7.4.	Effect
    of Termination. Termination of this Agreement by either Party shall not affect Purchaser’s accrued obligations to pay for
    Private Labeled Products ordered by Purchaser pursuant to an Accepted Purchase Order as set forth herein. 

 

	8.	NOTICE

 

Any
notice, demand, or communication required, permitted, or desired to be given hereunder shall be in writing and shall be deemed to be
sufficiently served for all purposes if delivered by registered or prepaid certified mail to the Parties’ designated addresses
provided below, or upon a Party’s receipt if sent and delivered by electronic mail (email) or facsimile.

 

	NanoVibronix,
    Inc.

    525
    Executive Boulevard

    Elmsford,
    NY 10523
	 	Ultra
    Pain Products, Inc.

    23-25
    31st Street

    Astoria,
    NY 11105

 

	9.	OTHER
    PROVISIONS

 

	 	9.1.	Relationship
    of the Parties. Nothing in this Agreement shall be deemed to constitute or suggest that either Party is an agent or representative
    of the other party, or that the Parties are partners. Accordingly, neither Party shall (i) be responsible for acts or omissions of
    the other Party, (ii) have authority to speak or act on behalf of or in a representative capacity for the other Party, or (iii) obligate
    the other Party in any way without prior written grant of such authority from the other Party. 
	 	 	 
	 	 9.2.	Representations
    and Warranties. Supplier represents and warrants that (a) all Private Labeled Products tendered under this Agreement shall be
    free and clear of any liens or encumbrances; (b) all Private Labeled Products shall be in conformity with the warranties set forth
    in Section 6.3; and (c) throughout the Term, Supplier shall remain in compliance with all applicable laws, regulations, and
    ordinances affecting the Private Labeled Products and this Agreement, including, without limitation, Supplier’s obligation
    to maintain in good standing any applicable licenses, permissions, authorizations, consents, and permits that it needs to carry out
    its obligations under this Agreement. Each Party further warrants that it has the authority to enter into this Agreement and perform
    its respective obligations hereunder, and that executing this Agreement will not cause it to violate the terms of any preexisting
    obligations or agreement. Further, each Party represents that it shall obtain and maintain, for the Term of this Agreement: (a) adequate
    and appropriate insurance coverage; and (b) all registrations with governmental agencies, commercial registries, or any other offices
    which may be required under local, state, or federal laws to perform its obligations under this Agreement. 

 

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                                            10 of
                                            17

     

    

 

	 	9.3.	Limitations
    on Liability. With the exception of Supplier’s obligations to indemnify Purchaser pursuant to Section 9.4, in no
    event shall either Party be liable to the other Party for any incidental, consequential, indirect, special, or punitive damages arising
    out of or relating to this Agreement, regardless of whether such liability is based on breach of contract, tort (including negligence),
    strict liability, breach of warranties, failure of essential purpose, or otherwise, even if advised of the possibility of such damages.
    Notwithstanding the foregoing, and with the exception of (a) a breach of Confidentiality as set forth herein, or (b) infringement
    of Supplier’s intellectual property rights, each Party’s total liability to the other Party shall be limited to amounts
    paid or payable by Purchaser to Supplier during the twelve (12) month period preceding the interposition of a claim.
	 	 	 
	 	9.4	Indemnification.
    Supplier shall indemnify, defend, and hold harmless Purchaser and its shareholders, officers, directors, employees, agents, affiliates,
    successors, and permitted assigns (collectively, “Indemnified Party”) against any claims, actions, judgments,
    or expenses associated therewith, including reasonable attorneys’ fees and costs, fees and the costs of enforcing any right
    to indemnification under this Agreement, and the cost of pursuing any insurance providers, incurred by Indemnified Party (collectively,
    “Losses”), relating to, arising out of, or resulting from:

 

	 	(a)	any
    claim of a purchaser or end-user of a Product or Private Labeled Product that arises out of or relates to the Product or Private
    Labeled Product, provided that such claim is not attributable to negligence, willful misconduct, or breach of this Agreement by Purchaser
    or a DME Distributor to whom Purchaser has sold Private Labeled Products; or
	 	 	 
	 	(b)	Supplier’s
    negligence, willful misconduct, or breach of its representations or warranties under Section 9.2).

 

	 	9.5.	Force
    Majeure. Neither Party shall bear responsibility of complete or partial non-performance of any of its obligations if the non-performance
    results from unforeseeable circumstances, such as natural calamities, fire, changes of export/import regulations or laws of any countries
    or territories with authority and jurisdiction, failure of transport, world or national pandemic, or any other circumstances beyond
    the Parties’ foreseeable control. Upon such occurrence, the time for fulfillment of the Parties’ respective obligations
    shall be extended for a period that is reasonable to accommodate the duration of the particular circumstances.
	 	 	 
	 	9.6.	Jurisdiction.
    This Agreement shall be governed in accordance with the laws and regulations of New York, without reference to any Conflict of
    Laws provisions thereof. Nothing in this Agreement is to prevent a Party from brining an action for equitable or injunctive relief
    in a court of competent jurisdiction to compel the other party to comply with its obligations under this Agreement. 

 

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                                            17

     

    

 

	10.	AGREEMENT
    CONSTRUCTION AND EFFECT

 

	 	10.1.	Incorporation
    by Reference. The recitals set forth above are hereby incorporated by reference into this Agreement. 
	 	 	 
	 	10.2.	Headings.
    The headings of this Agreement are for ease of reference only and are not intended to constitute a substantive part of this Agreement
    for purposes of construction.
	 	 	 
	 	10.3.	Amendments.
    No amendments, modification, termination or possible waiver of any provision of this Agreement shall be valid unless provided
    in writing and signed by both Parties hereto. 
	 	 	 
	 	10.4.	Complete
    Agreement. This Agreement, including all exhibits and appendices hereto, embodies and constitutes the entire agreement and understanding
    of the Parties with respect to the subject matter hereof, and supersedes all prior agreements, contracts, understandings, and communications
    – whether oral, written, express, or implied – between the Parties relating to such subject matter, including the Original
    agreement. For the avoidance of doubt, the Parties’ Original Agreement, amended and restated in its entirety herein, shall
    be deemed null, void, and of no further force or effect as of the Effective Date of this Agreement.
	 	 	 
	 	10.5	Severability.
    If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality,
    or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
    or provision in any other jurisdiction.
	 	 	 
	 	10.6	Waiver.
    No waiver by any Party of any of the provisions of this Agreement shall be effective unless explicitly set forth in writing and signed
    by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights,
    remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall any single or
    partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise
    of any other right, remedy, power, or privilege.
	 	 	 
	 	10.7	Counterparts.
    This Agreement may be executed in counterparts (including electronically), each of which is deemed an original, but all of which
    together are deemed to be one and the same agreement.

 

[Remainder
of Page Intentionally Blank]

**Signatures
to Follow**

 

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                                            17

     

    

 

Intending
to be bound, the Parties hereto have executed this Agreement as of the Effective Date.

 

	SUPPLIER	 	PURCHASER
	 	 	 
	NanoVibronix,
    Inc.	 	Ultra
    Pain Products, Inc.
	525
    Executive Boulevard	 	745
    Shotgun Road, Suite D
	Elmsford,
    NY 10523	 	Sunrise,
    FL 33326
	 	 	 	 	 
	By:
    	/s/
    Brian Murphy	 	By:	/s/
    Ari Alayev
	Name:
    	Brian
    Murphy 	 	Name:	Ari
    Alayev
	Title:
    	CEO	 	Title:	President
	Date:
    	12/9/2020	 	Date:	__________

 

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                                            13 of
                                            17

     

    

 

APPENDIX
A

 

PRODUCTS
AND PRICING SCHEDULE

 

	PRODUCT
    NO.	 	DESCRIPTION	 	UNIT
    PRICE
	10-100-0008	 	PainShield®
    Kit: 

    PainShield®
    MD driver unit 

    Transducer

    30
    small patches

     

    User
    Manual and Quick Start

    Charger
    unit

     
	 	$[***]

     

	10-100-0002	 	Monthly
    Small Patch Kit:

    1
    Transducer

    30
    Acrylic Patches

     
	 	$[***]
	10-100-0004	 	Monthly
    Small Patch Kit:

    1
    Transducer

    30
Silicone Patches
	 	$[***]

     

	 	 	 	 	 
	[TBD]	 	PainShield®PlusTM
    Kit:

    PainShield®
    MD driver unit

    2
    Transducers

    60
    small patches

     

    User
    Manual and Quick Start

    Charger
    unit

     
	 	$[***]

     

	[TBD]	 	Monthly
    Small Patch Kit:

    2
    Transducers

    60
    Acrylic Patches

     
	 	$[***]
	[TBD]	 	Monthly
    Small Patch Kit:

    2
    Transducers

    60
    Silicone Patches
	 	$[***]

 

*
Listed prices are in U.S. Dollars ($).

 

**
Listed prices do not include applicable taxes, VAT, or freight charges.

 

***
Listed prices are guaranteed through end of fiscal year 2021.

 

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                                            14 of
                                            17

     

    

 

APPENDIX
B

 

General
Warranty and Return Policy 

PainShield®
and PainShield®PlusTM

 

NanoVibronix
warrants that the PainShield® MD driver shall be defect-free for a period of one year from the product date of shipment.

 

The
liability of NanoVibronix under this warranty is limited to the repair or replacement (at NanoVibronix’s choice) of any allegedly
defective part or parts under warranty by NanoVibronix at its expense. The defective driver shall be returned to NanoVibronix accompanied
by a notice that describes the nature of the problem.

 

This
warranty shall not apply to a product which has been subject to misuse, unauthorized use, negligence, accident, (including but not limited
to fire, water, explosion, smoke, or vandalism) or which has not been operated in compliance with NanoVibronix instructions of use.

 

Without
derogating from the above, this warranty is void, if at any time anyone other than NanoVibronix authorized personnel removes the product
casing and/or attempts to make any internal changes, removals, attachments or additions to the product or its components.

 

Sheaths/patches
used with the PainShield® MD driver are not covered by this warranty, as they are warranted as suitable for intended use. No warranty
of use applies to sheaths/patches upon first application.

 

    	Page
                                            15 of
                                            17

     

    

 

APPENDIX
C

 

Table
1

 

	Effective
Date of Agreement → End of Fiscal Year 2021

	DESCRIPTION	 	Q1	 	 	Q1	 	 	Q1	 	 	Q1	 	 	TOTAL	 
	Private Labeled Product* Kit	 	 	1,250	 	 	 	1,250	 	 	 	1,250	 	 	 	1,250	 	 	 	5,000	 

 

Table
2

 

	Fiscal
Year 2022

	DESCRIPTION	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	TOTAL	 
	Private Labeled Product* Kit	 	 	2,500	 	 	 	2,500	 	 	 	2,500	 	 	 	2,500	 	 	 	10,000	 

 

Table
3

 

	Fiscal
Year 2023

	DESCRIPTION	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	TOTAL	 
	Private Labeled Product* Kit	 	 	2,500	 	 	 	2,500	 	 	 	3,000	 	 	 	3,000	 	 	 	11,000	 

 

Table
4

 

	Renewal
Term(s) 

	DESCRIPTION	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	TOTAL	 
	Private Labeled Product* Kit	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	3,000	 	 	 	12,000	 

 

*
Private Labeled Product denotes one or more Products as identified in Appendix A.

 

Purchaser’s
yearly and quarterly minimum order quotas (Tables 1-4) may be satisfied by units of the PainShield® Kit, PainShield®PlusTM
Kit, or any combinations thereof.

 

Pricing
of Purchaser’s orders will be determined based on the Product (i.e., PainShield® or PainShield®PlusTM and
the units thereof, or of each if a combination is desired.

 

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                                            16 of
                                            17

     

    

 

APPENDIX
D

 

Pursuant
to the appended Agreement entered into by the Parties on this ___ day of December, 2020, and as specifically provided in Section
3.12 thereof, Purchaser hereby acknowledges its obligations and assumed liability for any DME Distributors to whom it sells Products
or Private Labeled Products adhering to and complying with:

 

	 	(a)	limitations
    on pricing of Private Labeled Products, and specifically on publicized pricing of any kind, as set forth in Section 3.5 of
    the Agreement;
	 	 	 
	 	(b)	all
    sales of Private Labeled Products being limited to the Territory, as set forth in Section 3.6 of the Agreement;
	 	 	 
	 	(c)	the
    prohibitions against any modifications of the Private Labeled Products, as set forth in Section 3.7 of the Agreement;
	 	 	 
	 	(d)	Supplier’s
    limited warranty with respect to any Private Labeled Products, as set forth in Section 3.8 of the Agreement;
	 	 	 
	 	(e)	Any
    applicable FDA requirements for obtaining physician prescriptions as a prerequisite to selling Private Labeled Products, including
    Supplier’s PainShield® device, to customers and maintaining records thereof, as set forth in Section 3.9 of the
    Agreement;
	 	 	 
	 	(f)	the
    reporting obligations set forth in Section 3.10 of the Agreement, and supplying complete reports to Supplier on at least bi-annual
    basis; and
	 	 	 
	 	(g)	the
    duty of confidentiality set forth in Section 3.11 of the Agreement. 

 

Executed
on even date herewith by and on behalf of:

 

	Purchaser	Ultra
    Pain Products, Inc.	 
	 	745
    Shotgun Road, Suite D	 
	 	Sunrise,
    FL 33326	 
	 	 	 	 
	 	By:
    	 	 
	 	Name:
    	Ari
    Alayev	 
	 	Title:
    	President	 

 

    	Page
                                            17 of
                                            17shmp_ex4-1

  Exhibit 4.1

 

COMMON STOCK PURCHASE WARRANT

 

NATURALSHRIMP INCORPORATED

 

	

Warrant
Shares: 10,000,000

	

Issue
Date: April 14, 2021

 

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received, GHS Investments LLC or its assigns (the
“Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the Issue
Date to subscribe for and purchase from NaturalShrimp Incorporated,
a Nevada corporation (the “Company”), up to
10,000,000 shares (as subject to adjustment hereunder, the
“Warrant
Shares”) of Common Stock. This Warrant shall expire on
the five (5) year anniversary of the Issue Date. 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 April 14, 2021, among the Company
and the purchasers signatory thereto.

 

Section 2.  Exercise.

 

a) Exercise
of Warrant. 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 Issue 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 (or e-mail attachment) of the Notice of Exercise in the 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. No
ink-original Notice of Exercise shall be required, nor shall any
medallion guarantee (or other type of guarantee or notarization) of
any Notice of Exercise form be required. Notwithstanding anything
herein to the contrary, 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
within one (1) Business Day of receipt 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
$0.75, subject to adjustment hereunder (the “Exercise
Price”).

 

c)

Mechanics of
Exercise.

 

i. Delivery of Warrant Shares Upon
Exercise. Warrant Shares purchased hereunder shall be
transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s or its designee’s balance
account 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) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of-sale limitations pursuant to Rule 144,
and otherwise by physical delivery of a certificate, registered in
the Company’s share register in the name of the Holder or its
designee, for the number of Warrant Shares to which the Holder is
entitled pursuant to such exercise to the address specified by the
Holder in the Notice of Exercise by the date that is one (1)
Trading Day after the delivery to the Company of the Notice of
Exercise (such date, the “Warrant Share Delivery
Date”). Upon delivery of the Notice of Exercise the
Holder shall be deemed for all corporate purposes to have become
the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of
delivery of the Warrant Shares; provided payment of the aggregate
Exercise Price is received within three Trading Days of delivery of
the Notice of Exercise. If the Company fails for any reason to
deliver to the Holder the Warrant Shares subject to a Notice of
Exercise by the Warrant Share Delivery Date, the Company shall pay
to the Holder, in cash, as liquidated damages and not as a penalty,
for each $1,000 of Warrant Shares subject to such exercise (based
on the VWAP of the Common Stock on the date of the applicable
Notice of Exercise), $10 per Trading Day (increasing to $20 per
Trading Day on the fifth Trading Day after such liquidated damages
begin to accrue) for each Trading Day after such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder
rescinds such exercise. The Company agrees to maintain a transfer
agent that is a participant in the FAST program so long as this
Warrant remains outstanding and exercisable. For purposes hereof,
“VWAP”
means, for any date, the price determined by the first of the
following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted
average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is
then listed or quoted as reported by Bloomberg L.P. (based on a
Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New
York City time)), (b)  if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for
such date (or the nearest preceding date) on OTCQB or OTCQX as
applicable, (c) if the Common Stock is not then listed or quoted
for trading on OTCQB or OTCQX and if prices for the Common Stock
are then reported in the “Pink Sheets” published by OTC
Markets Group, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price
per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as
determined by an independent appraiser selected in good faith by
the Purchasers of a majority in interest of the Securities then
outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

 

 

2

 

 

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 Warrant
Shares, deliver to the Holder a new Warrant evidencing the rights
of the Holder to purchase the unpurchased Warrant Shares called for
by this Warrant, which new Warrant shall in all other respects be
identical with this Warrant.

 

iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to
transmit to the Holder the Warrant Shares pursuant to Section
2(d)(i) by the Warrant Share Delivery Date, then the Holder will
have the right to rescind such exercise.

 

iv. Compensation for Buy-In on Failure to
Timely Deliver Warrant Shares 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 the Warrant
Shares in accordance with the provisions of Section 2(d)(i) above
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 shares of Common Stock
upon exercise of the Warrant as required pursuant to the terms
hereof.

 

 

 

3

 

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

 

vi. Charges, Taxes and Expenses.
Issuance of 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 Warrant Shares, all of which taxes
and expenses shall be paid by the Company, and such Warrant Shares
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 that
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 and all
fees to the Depository Trust Company (or another established
clearing corporation performing similar functions) required for
same-day electronic delivery of the Warrant Shares.

 

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.

 

 

 

4

 

 

e)           Holder’s
Exercise Limitations. The Company shall not effect any
exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, pursuant to Section 2 or
otherwise, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Notice of Exercise,
the Holder (together with the Holder’s Affiliates, and any
other Persons acting as a group together with the Holder or any of
the Holder’s Affiliates (such Persons, “Attribution Parties”)),
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 and Attribution Parties 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 or Attribution Parties 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 or Attribution
Parties.  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 Attribution Parties) 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 Attribution Parties) 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 three 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 or
Attribution Parties 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, upon notice to the Company,
may increase or decrease 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 increase in the Beneficial
Ownership Limitation will not be effective until the 61st day after such
written 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.

 

 

5

 

 

(f)           Automatic
Exercise. In the event the
closing price of a share of Common Stock equals or exceeds $1.85
(subject to adjustment as set forth in Section 3 herein) for at
least ten (10) consecutive Trading Days, this Warrant, on the third
(3rd)
Trading Day following the end of such ten (10) consecutive Trading
Day period, be automatically exercised for the remaining number of
Warrant Shares, subject to the Beneficial Ownership
Limitation.

 

Section 3.  Certain
Adjustments.

 

a) Stock Dividends, Splits and
Reclassifications. 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), (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.

 

b) Subsequent Equity Sales. If the
Company or any subsidiary thereof, as applicable, at any time while
this Warrant is outstanding, shall sell, enter into an agreement to
sell, or grant any option to purchase, or sell or grant any right
to reprice, or otherwise dispose of or issue (or announce any
offer, sale, grant or any option to purchase or other disposition)
any Common Stock or Common Stock Equivalents, at an effective price
per share less than the Exercise Price then in effect (such lower
price, the “Base
Share Price” and such issuances collectively, a
“Dilutive
Issuance”) (it being understood and agreed that if the
holder of the Common Stock or Common Stock Equivalents so issued
shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or
exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be
entitled to receive shares of Common Stock at an effective price
per share that is less than the Exercise Price, such issuance shall
be deemed to have occurred for less than the Exercise Price on such
date of the Dilutive Issuance at such effective price), then
simultaneously with the consummation (or, if earlier, the
announcement) of each Dilutive Issuance the Exercise Price shall be
reduced and only reduced to equal the Base Share Price.
Notwithstanding the foregoing, no adjustments shall be made, paid
or issued under this Section 3(b) in respect of an Exempt Issuance.
The Company shall notify the Holder, in writing, no later than the
Trading Day following the issuance or deemed issuance of any Common
Stock or Common Stock Equivalents subject to this Section 3(b),
indicating therein the applicable issuance price, or applicable
reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance
Notice”). For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to
this Section 3(b), upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Warrant Shares based
upon the Base Share Price regardless of whether the Holder
accurately refers to the Base Share Price in the Notice of
Exercise. If the Company enters into a variable rate transaction,
the Company shall be deemed to have issued Common Stock or Common
Stock Equivalents at the actual price of any conversion of the
variable rate instrument.

 

 

6

 

 

c) 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 all
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).

 

d) Pro
Rata Distributions. During such time as this Warrant is
outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets)
to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of
cash, stock or other securities, property or options by way of a
dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a
"Distribution"), at
any time after the issuance of this Warrant, then, in each such
case, the Holder shall be entitled to participate in such
Distribution to the same extent that the Holder would have
participated therein 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 of which a record is taken for such
Distribution, 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 participation in such Distribution (provided, however, to the extent that the
Holder's right to participate in any such Distribution would result
in the Holder exceeding the Beneficial Ownership Limitation, then
the Holder shall not be entitled to participate in such
Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such
extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as
its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation).

 

 

7

 

 

e) Fundamental
Transaction.

 

(1) 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
(other than as a result of a stock split, combination or
reclassification of shares of Common Stock covered by Section 3(a)
above), 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 (or, if
later, the date of the public announcement of the
applicable

 

 

8

 

 

Fundamental
Transaction), purchase this Warrant
from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value (as defined below) of the
remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction; provided, however, that, if the
Fundamental Transaction is not within the Company's control,
including not approved by the Company's Board of Directors, Holder
shall only be entitled to receive from the Company or any Successor
Entity the same type or form of consideration (and in the same
proportion), at the Black Scholes Value of the unexercised portion
of this Warrant, that is being offered and paid to the holders of
Common Stock of the Company in connection with the Fundamental
Transaction, whether that consideration be in the form of cash,
stock or any combination thereof, or whether the holders of Common
Stock are given the choice to receive from among alternative forms
of consideration in connection with the Fundamental Transaction;
provided,
further, that if
holders of Common Stock of the Company are not offered or paid any
consideration in such Fundamental Transaction, such holders of
Common Stock will be deemed to have received common stock of the
Successor Entity (which Entity may be the Company following such
Fundamental Transaction) in 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 greater of (i) 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 (ii) the highest VWAP during the period
beginning on the Trading Day immediately preceding the announcement
of the applicable Fundamental Transaction (or the consummation of
the applicable Fundamental Transaction, if earlier) and ending on
the Trading Day of the Holder’s request pursuant to this
Section 3(e) 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 and (E) a zero cost of borrow.
The payment of the Black Scholes Value
will be made by wire transfer of immediately available funds within
five Business Days of the Holder’s election (or, if later, on
the consummation date of the Fundamental
Transaction). 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.

 

 

9

 

 

f) Calculations. All calculations
under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of
this Section 3, the number of 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.

 

g) Notice to Holder.

 

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly deliver to the Holder
by facsimile or email 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, cash
or property, 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, the Company shall cause to be
delivered by facsimile or email to the Holder at its last facsimile
number or email address as it shall appear upon the Warrant
Register of the Company, at least ten (10) 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 deliver such notice or any
defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such
notice. To the extent that any notice provided in this Warrant
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.

 

 

10

 

 

Section 4.  Transfer of
Warrant.

 

a) Transferability. Subject to
compliance with any applicable securities laws and the conditions
set forth in Section 4(d) hereof and to the provisions of Section
4.1 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 Holder shall be
required to physically surrender this Warrant to the Company within
three (3) Trading Days of the date the Holder delivers an
assignment form to the Company assigning this Warrant
full. 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.

 

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

 

d) Transfer
Restrictions. If, at the
time of the surrender of this Warrant
in connection with any transfer of this Warrant, the transfer of
this Warrant shall not be either (i) registered pursuant to an
effective registration
 statement under the
Securities Act and under
applicable state securities or blue sky laws or (ii) eligible for
resale without volume or manner-of-sale restrictions or current
public information requirements pursuant to Rule 144, the Company
may require, as a condition of allowing such transfer, that the
Holder or transferee of this Warrant, as the case may be, comply
with the provisions of Section 5.7 of the Purchase
Agreement.

 

 

11

 

 

e) Representation by the Holder.
The Holder, by the acceptance hereof, represents and warrants that
it is acquiring this Warrant and, upon any exercise hereof, will
acquire the Warrant Shares issuable upon such exercise, for its own
account and not with a view to or for distributing or reselling
such Warrant Shares or any part thereof in violation of the
Securities Act or any applicable state securities law, except
pursuant to sales registered or exempted under the Securities
Act.

 

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), except as expressly set forth in Section 3.

 

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

 

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

 

 

12

 

Except
and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of
all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may
be, necessary to enable the Company to perform its obligations
under this Warrant.

 

Before
taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction
thereof.

 

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

 

f) Legends. The Company and Holder
acknowledge that the Warrant Shares shall be issued without
legend.

 

g) Nonwaiver 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. If the Company willfully and knowingly fails to comply
with any provision of this Warrant, which results in any material
damages to the Holder, the Company shall pay to the Holder such
amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by the Holder in
collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies
hereunder.

 

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

 

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

 

 

13

 

 

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

 

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

 

l) Amendment. This Warrant may be
modified or amended or the provisions hereof waived with the
written consent of the Company and the
Holder.

 

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

 

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

 

 

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

 

 

(Signature Page Follows)

 

 

 

14

 

 

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

 

 

 

	

NATURALSHRIMP INCORPORATED

 

 

	

By:/s/
Gerald Easterling

     Name:
Gerald Easterling

     Title:
Chief Executive Officer

 

 

 

 

15

 

 

NOTICE OF EXERCISE

 

TO:            

NATURALSHRIMP
INCORPORATED

 

(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.

 

Payment
shall take the form of lawful money of the United
States.

 

(2) Please issue said
Warrant Shares in the name of the undersigned or in such other name
as is specified below:

 

_______________________________

 

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)
Accredited
Investor. The undersigned is an “accredited
investor” as defined in Regulation D promulgated under the
Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of
Investing Entity:
________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity:
_________________________________________________

Name of
Authorized Signatory:
___________________________________________________________________

Title
of Authorized Signatory:
____________________________________________________________________

Date:
________________________________________________________________________________________

  

 

 

 

 

  EXHIBIT B

 

ASSIGNMENT FORM

 (To assign the foregoing Warrant, execute this form and
supply required information. Do not use this form to purchase
shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

	

Name:

	
 

	
 

	

(Please Print)

 

	

Address:

	
 

	

 

 

Phone Number:

Email Address:

 

	

(Please
Print)

______________________________________

______________________________________

 

	

Dated: _______________ __, ______

 

	
 

	

Holder’s
Signature:                                                                 

 

	
 

	

Holder’s
Address:

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