Document:

AIT
Therapeutics, Inc. Amended and Restated 2013 EQUITY INCENTIVE PLAN

 

1.
Purpose; Eligibility.

 

1.1
General Purpose. This AIT Therapeutics, Inc. Amended and Restated 2013 Equity Incentive Plan (the “Plan”)
is hereby established by AIT Therapeutics, Inc., a Delaware corporation (the “Company”), which amends and restates
the AIT Therapeutics, Inc. 2013 Equity Incentive Plan. The purposes of the Plan are to (a) enable the Company and any Affiliate
to attract and retain the types of Employees, Consultants and Directors who will contribute to the Company’s long range
success; (b) provide incentives that align the interests of Employees, Consultants and Directors with those of the shareholders
of the Company; and (c) promote the success of the Company’s business.

 

1.2
Eligible Award Recipients. The persons eligible to receive Awards are the Employees, Consultants and Directors of the Company
and its Affiliates and such other individuals designated by the Committee who are reasonably expected to become Employees, Consultants
and Directors after the receipt of Awards.

 

1.3
Available Awards. Awards that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock
Options, (c) Stock Appreciation Rights, (d) Restricted Awards, (e) Performance Share Awards, (f) Cash Awards, and (g) Other Equity-Based
Awards.

 

2.
Definitions.

 

“Affiliate”
means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under
common control with, the Company.

 

“Applicable
Laws” means the requirements related to or implicated by the administration of the Plan under applicable state corporate
law, United States federal and state securities laws, the Code, any stock exchange or quotation system on which the shares of
Common Stock are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under
the Plan.

 

“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non-qualified Stock Option, a Stock Appreciation
Right, a Restricted Award, a Performance Share Award, a Cash Award, or an Other Equity-Based Award.

 

“Award
Agreement” means a written agreement, contract, certificate or other instrument or document evidencing the terms and
conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically
to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities
that such Person has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable
or is exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned”
have a corresponding meaning.

 

“Board”
means the Board of Directors of the Company, as constituted at any time.

 

“Cash
Award” means an Award denominated in cash that is granted under Section 7.4 of the Plan.

 

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“Cause”
means:

 

	 	With
    respect to any Employee or Consultant, unless the applicable Award Agreement states otherwise:
	 	 
	 	(a)
    If the Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such
    agreement provides for a definition of Cause, the definition contained therein; or
	 	 
	 	(b)
    If no such agreement exists, or if such agreement does not define Cause: (i) the commission of, or plea of guilty or no contest
    to, a felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material
    fiduciary breach with respect to the Company or an Affiliate; (ii) conduct that results in or is reasonably likely to result
    in harm to the reputation or business of the Company or any of its Affiliates; (iii) gross negligence or willful misconduct
    with respect to the Company or an Affiliate; or (iv) material violation of state or federal securities laws.

 

	 	With
    respect to any Director, unless the applicable Award Agreement states otherwise, a determination by a majority of the disinterested
    Board members that the Director has engaged in any of the following:
	 	 
	 	(a)
    malfeasance in office;
	 	 
	 	(b)
    gross misconduct or neglect;
	 	 
	 	(c)
    false or fraudulent misrepresentation inducing the director’s appointment;
	 	 
	 	(d)
    wilful conversion of corporate funds; or
	 	 
	 	(e)
    repeated failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings
    in advance.

 

The
Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant
has been discharged for Cause.

 

“Change
in Control”

 

	
	(a)
    The direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
    one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries,
    taken as a whole, to any Person that is not a subsidiary of the Company;
	 	 
	 	(b)
    The Incumbent Directors cease for any reason to constitute at least a majority of the Board;
	 	 
	 	(c)
    The date which is 10 business days prior to the consummation of a complete liquidation or dissolution of the Company;
	 	 
	 	(d)
    The acquisition by any Person of Beneficial Ownership of 50% or more (on a fully diluted basis) of either (i) the then outstanding
    shares of Common Stock of the Company, taking into account as outstanding for this purpose such Common Stock issuable upon
    the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to
    acquire such Common Stock (the “Outstanding Company Common Stock”) or (ii) the combined voting power of
    the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
    Company Voting Securities”); provided, however, that for purposes of this Plan, the following acquisitions
    shall not constitute a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any
    employee benefit plan sponsored or maintained by the Company or any subsidiary, (C) any acquisition which complies with clauses,
    (i), (ii) and (iii) of subsection (e) of this definition or (D) in respect of an Award held by a particular Participant, any
    acquisition by the Participant or any group of persons including the Participant (or any entity controlled by the Participant
    or any group of persons including the Participant); or 

 

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	 	(e)
    The consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction
    involving the Company that requires the approval of the Company’s shareholders, whether for such transaction or the
    issuance of securities in the transaction (a “Business Combination”), unless immediately following such
    Business Combination: (i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination
    (the “Surviving Company”), or (B) if applicable, the ultimate parent entity that directly or indirectly
    has beneficial ownership of sufficient voting securities eligible to elect a majority of the members of the board of directors
    (or the analogous governing body) of the Surviving Company (the “Parent Company”), is represented by the
    Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable,
    is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination),
    and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding
    Company Voting Securities among the holders thereof immediately prior to the Business Combination; (ii) no Person (other than
    any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the Beneficial
    Owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect
    members of the board of directors of the Parent Company (or the analogous governing body) (or, if there is no Parent Company,
    the Surviving Company); and (iii) at least a majority of the members of the board of directors (or the analogous governing
    body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business
    Combination were Board members at the time of the Board’s approval of the execution of the initial agreement providing
    for such Business Combination.

 

“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall
be deemed to include a reference to any regulations promulgated thereunder.

 

“Committee”
means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section
3.3 and Section 3.4.

 

“Common
Stock” means the common stock, $0.0001 par value per share, of the Company, or such other securities of the Company
as may be designated by the Committee from time to time in substitution thereof.

 

“Company”
means AIT Therapeutics, Inc. a Delaware corporation, and any successor thereto.

 

“Consultant”
means any individual or entity which performs bona fide services to the Company or an Affiliate, other than as an Employee or
Director, and who may be offered securities registerable pursuant to a registration statement on Form S-8 under the Securities
Act.

 

“Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant
or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is
no interruption or termination of the Participant’s Continuous Service; provided further that if any Award is subject
to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code.
For example, a change in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption
of Continuous Service. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any
other personal or family leave of absence. The Committee or its delegate, in its sole discretion, may determine whether a Company
transaction, such as a sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result in a
termination of Continuous Service for purposes of affected Awards, and such decision shall be final, conclusive and binding.

 

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“Deferred
Stock Units (DSUs)” has the meaning set forth in Section 7.2 hereof.

 

“Director”
means a member of the Board.

 

“Disability”
means, unless the applicable Award Agreement says otherwise, that the Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining
the term of an Incentive Stock Option pursuant to Section 6.10 hereof, the term Disability shall have the meaning ascribed to
it under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures
established by the Committee. Except in situations where the Committee is determining Disability for purposes of the term of an
Incentive Stock Option pursuant to Section 6.10 hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely
on any determination that a Participant is disabled for purposes of benefits under any long-term disability plan maintained by
the Company or any Affiliate in which a Participant participates.

 

“Disqualifying
Disposition” has the meaning set forth in Section 14.12.

 

“Effective
Date” shall mean the date as of which this Plan is adopted by the Board.

 

“Employee”
means any person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes
of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or
subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s
fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair
Market Value” means, as of any date, the value of the Common Stock as determined below. If the Common Stock is listed
on any established stock exchange or a national market system, including without limitation, the New York Stock Exchange or the
NASDAQ Stock Market, the Fair Market Value shall be the closing price of a share of Common Stock (or if no sales were reported
the closing price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination,
as reported in the Wall Street Journal. In the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Committee and such determination shall be conclusive and binding on all persons.

 

“Fiscal
Year” means the Company’s fiscal year.

 

“Free
Standing Rights” has the meaning set forth in Section 7.1(a).

 

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“Good
Reason” means, unless the applicable Award Agreement states otherwise:

 

	 	(a)
    If an Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such
    agreement provides for a definition of Good Reason, the definition contained therein; or
	 	 
	 	(b)
    If no such agreement exists or if such agreement does not define Good Reason, the occurrence of one or more of the following
    without the Participant’s express written consent, which circumstances are not remedied by the Company within thirty
    (30) days of its receipt of a written notice from the Participant describing the applicable circumstances (which notice must
    be provided by the Participant within ninety (90) days of the Participant’s knowledge of the applicable circumstances):
    (i) any material, adverse change in the Participant’s duties, responsibilities, authority, title, status or reporting
    structure; or (ii) a material reduction in the Participant’s base salary or bonus opportunity.

 

“Grant
Date” means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting
an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution,
then such date as is set forth in such resolution.

 

“Incentive
Stock Option” means an Option that is designated by the Committee as an incentive stock option within the meaning of
Section 422 of the Code and that meets the requirements set out in the Plan.

 

“Incumbent
Directors” means individuals who, on the Effective Date, constitute the Board, provided that any individual becoming
a Director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote of at
least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement
of the Company in which such person is named as a nominee for Director without objection to such nomination) shall be an Incumbent
Director. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election
contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of
any person other than the Board shall be an Incumbent Director.

 

“Non-Employee
Director” means a Director who is a “non-employee director” within the meaning of Rule 16b-3.

 

“Non-qualified
Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock
Option.

 

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

“Option”
means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.

 

“Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

“Option
Exercise Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

 

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“Other
Equity-Based Award” means an Award that is not an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, or Performance Share Award that is granted under Section 7.4 and is payable by delivery of Common Stock and/or which is
measured by reference to the value of Common Stock.

 

“Participant”
means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

“Performance
Goals” means, for a Performance Period, the one or more goals established by the Committee for the Performance Period
based upon business criteria or other performance measures determined by the Committee in its discretion.

 

“Performance
Period” means the one or more periods of time, as the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment of a Performance
Share Award or a Cash Award.

 

“Performance
Share Award” means any Award granted pursuant to Section 7.3 hereof.

 

“Performance
Share” means the grant of a right to receive a number of actual shares of Common Stock or share units based upon the
performance of the Company during a Performance Period, as determined by the Committee.

 

“Permitted
Transferee” means: (a) a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships), any person sharing the Optionholder’s household (other
than a tenant or employee), a trust in which these persons have more than 50% of the beneficial interest, a foundation in which
these persons (or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder)
own more than 50% of the voting interests; (b) third parties designated by the Committee in connection with a program established
and approved by the Committee pursuant to which Participants may receive a cash payment or other consideration in consideration
for the transfer of a Non-qualified Stock Option; and (c) such other transferees as may be permitted by the Committee in its sole
discretion.

 

“Person”
means a person as defined in Section 13(d)(3) of the Exchange Act.

 

“Plan”
means this AIT Therapeutics, Inc. Amended and Restated 2013 Equity Incentive Plan, as amended and/or amended and restated from
time to time.

 

“Related
Rights” has the meaning set forth in Section 7.1(a).

 

“Restricted
Award” means any Award granted pursuant to Section 7.2(a).

 

“Restricted
Period” has the meaning set forth in Section 7.2(a).

 

“Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to
time.

 

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“Securities
Act” means the Securities Act of 1933, as amended.

 

“Stock
Appreciation Right” means the right pursuant to an Award granted under Section 7.1 to receive, upon exercise, an amount
payable in cash or shares equal to the number of shares subject to the Stock Appreciation Right that is being exercised multiplied
by the excess of (a) the Fair Market Value of a share of Common Stock on the date the Award is exercised, over (b) the exercise
price specified in the Stock Appreciation Right Award Agreement.

 

“Stock
for Stock Exchange” has the meaning set forth in Section 6.4.

 

“Substitute
Award” has the meaning set forth in Section 4.6.

 

“Ten
Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

 

“Total
Share Reserve” has the meaning set forth in Section 4.1.

 

3.
Administration.

 

3.1
Authority of Committee. The Plan shall be administered by the Committee or, in the Board’s sole discretion, by the
Board. Subject to the terms of the Plan, the Committee’s charter and Applicable Laws, and in addition to other express powers
and authorization conferred by the Plan, the Committee shall have the authority:

 

(a)
to construe and interpret the Plan and apply its provisions;

 

(b)
to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

 

(c)
to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 

(d)
to delegate its authority to one or more Officers of the Company with respect to Awards that do not involve “insiders”
within the meaning of Section 16 of the Exchange Act;

 

(e)
to determine when Awards are to be granted under the Plan and the applicable Grant Date;

 

(f)
from time to time to select, subject to the limitations set forth in this Plan, those eligible Award recipients to whom Awards
shall be granted;

 

(g)
to determine the number of shares of Common Stock to be made subject to each Award;

 

(h)
to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option;

 

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(i)
to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

 

(j)
to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures
that will be used to establish the Performance Goals, the Performance Period(s) and the number of Performance Shares earned by
a Participant;

 

(l)
to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding
Award; provided, however, that if any such amendment impairs a Participant’s rights or increases a Participant’s
obligations under his or her Award or creates or increases a Participant’s federal income tax liability with respect to
an Award, such amendment shall also be subject to the Participant’s consent;

 

(m)
to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination
of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees
under the Company’s employment policies;

 

(n)
to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event
that triggers anti-dilution adjustments;

 

(o)
to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any
instrument or agreement relating to, or Award granted under, the Plan; and

 

(p)
to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration
of the Plan.

 

The
Committee also may modify the purchase price or the exercise price of any outstanding Award, provided that if the modification
effects a repricing, shareholder approval shall be required before the repricing is effective.

 

3.2
Committee Decisions Final. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and
binding on the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary
and capricious.

 

3.3
Delegation. The Committee or, if no Committee has been appointed, the Board may delegate administration of the Plan to
a committee or committees of one or more members of the Board, and the term “Committee” shall apply to any
person or persons to whom such authority has been delegated. The Committee shall have the power to delegate to a subcommittee
any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee
shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions
of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the
Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board.
From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with
or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The
Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members,
the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes
shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed
by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as
it may determine to be advisable.

 

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3.4
Committee Composition. Except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee
Directors. The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements of
Rule 16b-3. However, if the Board intends to satisfy such exemption requirements, with respect to any insider subject to Section
16 of the Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two
or more Non-Employee Directors. Within the scope of such authority, the Board or the Committee may delegate to a committee of
one or more members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible persons who are
not then subject to Section 16 of the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted
under the Plan in the event Awards are granted under the Plan by a compensation committee of the Board that does not at all times
consist solely of two or more Non-Employee Directors.

 

3.5
Indemnification. In addition to such other rights of indemnification as they may have as Directors or members of the Committee,
and to the extent allowed by Applicable Laws, the Committee shall be indemnified by the Company against the reasonable expenses,
including attorney’s fees, actually incurred in connection with any action, suit or proceeding or in connection with any
appeal therein, to which the Committee may be party by reason of any action taken or failure to act under or in connection with
the Plan or any Award granted under the Plan, and against all amounts paid by the Committee in settlement thereof (provided,
however, that the settlement has been approved by the Company, which approval shall not be unreasonably withheld) or paid
by the Committee in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which
it shall be adjudged in such action, suit or proceeding that such Committee did not act in good faith and in a manner which such
person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding, had no reason
to believe that the conduct complained of was unlawful; provided, however, that within 60 days after the institution of
any such action, suit or proceeding, such Committee shall, in writing, offer the Company the opportunity at its own expense to
handle and defend such action, suit or proceeding.

 

4.
Shares Subject to the Plan.

 

4.1
Subject to adjustment in accordance with Section 11, no more than 1,500,000 shares of Common Stock shall be available for the
grant of Awards under the Plan (the “Total Share Reserve”). During the terms of the Awards, the Company shall
keep available at all times the number of shares of Common Stock required to satisfy such Awards.

 

4.2
Shares of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued
shares, treasury shares or shares reacquired by the Company in any manner.

 

4.3
Subject to adjustment in accordance with Section 11, no more than 1,500,000 shares of Common Stock may be issued in the aggregate
pursuant to the exercise of Incentive Stock Options (the “ISO Limit”).

 

4.4
Reserved.

 

4.5
Any shares of Common Stock subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full
number of shares of Common Stock to which the Award related will again be available for issuance under the Plan. Notwithstanding
anything to the contrary contained herein: shares subject to an Award under the Plan shall not again be made available for issuance
or delivery under the Plan if such shares are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by
the Company to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled Stock Appreciation Right or other
Awards that were not issued upon the settlement of the Award.

 

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4.6
Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding
awards previously granted by an entity acquired by the Company or with which the Company combines (“Substitute Awards”).
Substitute Awards shall not be counted against the Total Share Reserve; provided, that, Substitute Awards issued in connection
with the assumption of, or in substitution for, outstanding options intended to qualify as Incentive Stock Options shall be counted
against the ISO limit. Subject to applicable stock exchange requirements, available shares under a shareholder-approved plan of
an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect
such acquisition or transaction) may be used for Awards under the Plan and shall not count toward the Total Share Limit.

 

5.
Eligibility.

 

5.1
Eligibility for Specific Awards. Incentive Stock Options may be granted only to Employees. Awards other than Incentive
Stock Options may be granted to Employees, Consultants and Directors and those individuals whom the Committee determines are reasonably
expected to become Employees, Consultants and Directors following the Grant Date.

 

5.2
Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Option Exercise
Price is at least 110% of the Fair Market Value of the Common Stock on the Grant Date and the Option is not exercisable after
the expiration of five years from the Grant Date.

 

6.
Option Provisions. Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted
shall be subject to the conditions set forth in this Section 6, and to such other conditions not inconsistent with the Plan as
may be reflected in the applicable Award Agreement. All Options shall be separately designated Incentive Stock Options or Non-qualified
Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for
shares of Common Stock purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no
liability to any Participant or any other person if an Option designated as an Incentive Stock Option fails to qualify as such
at any time or if an Option is determined to constitute “nonqualified deferred compensation” within the meaning of
Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The provisions
of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference
in the Option or otherwise) the substance of each of the following provisions:

 

6.1
Term. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, no Incentive Stock Option shall be exercisable
after the expiration of 10 years from the Grant Date. The term of a Non-qualified Stock Option granted under the Plan shall be
determined by the Committee; provided, however, no Non-qualified Stock Option shall be exercisable after the expiration
of 10 years from the Grant Date.

 

6.2
Exercise Price of an Incentive Stock Option. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders,
the Option Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock
subject to the Option on the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option
Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of the Code.

 

6.3
Exercise Price of a Non-qualified Stock Option. The Option Exercise Price of each Non-qualified Stock Option shall be not
less than 100% of the Fair Market Value of the Common Stock subject to the Option on the Grant Date. Notwithstanding the foregoing,
a Non-qualified Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of
Section 409A of the Code.

 

    	 	10	 

    	 

    

 

6.4
Consideration. The Option Exercise Price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted
by applicable statutes and regulations, either (a) in cash or by certified or bank check at the time the Option is exercised or
(b) in the discretion of the Committee, upon such terms as the Committee shall approve, the Option Exercise Price may be paid:
(i) by delivery to the Company of other Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the
date of delivery equal to the Option Exercise Price (or portion thereof) due for the number of shares being acquired, or by means
of attestation whereby the Participant identifies for delivery specific shares of Common Stock that have an aggregate Fair Market
Value on the date of attestation equal to the Option Exercise Price (or portion thereof) and receives a number of shares of Common
Stock equal to the difference between the number of shares thereby purchased and the number of identified attestation shares of
Common Stock (a “Stock for Stock Exchange”); (ii) a “cashless” exercise program established with
a broker; (iii) by reduction in the number of shares of Common Stock otherwise deliverable upon exercise of such Option with a
Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise; (iv) by any combination of the foregoing
methods; or (v) in any other form of legal consideration that may be acceptable to the Committee. Unless otherwise specifically
provided in the Option, the exercise price of Common Stock acquired pursuant to an Option that is paid by delivery (or attestation)
to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common
Stock of the Company that have been held for more than six months (or such longer or shorter period of time required to avoid
a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period for which the Common
Stock is publicly traded (i.e., the Common Stock is listed on any established stock exchange or a national market system) an exercise
by a Director or Officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension
of credit by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited
with respect to any Award under this Plan.

 

6.5
Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise
the Option.

 

6.6
Transferability of a Non-qualified Stock Option. A Non-qualified Stock Option may, in the sole discretion of the Committee,
be transferable to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement.
If the Non-qualified Stock Option does not provide for transferability, then the Non-qualified Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only
by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled
to exercise the Option.

 

6.7
Vesting of Options. Each Option may, but need not, vest and therefore become exercisable in periodic installments that
may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Committee may deem appropriate. The vesting provisions
of individual Options may vary. No Option may be exercised for a fraction of a share of Common Stock. The Committee may, but shall
not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence
of a specified event.

 

6.8
Termination of Continuous Service. Unless otherwise provided in an Award Agreement or in an employment agreement the terms
of which have been approved by the Committee, in the event an Optionholder’s Continuous Service terminates (other than upon
the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier
of (a) the date three months following the termination of the Optionholder’s Continuous Service or (b) the expiration of
the term of the Option as set forth in the Award Agreement; provided that, if the termination of Continuous Service is
by the Company for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable.
If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Award Agreement,
the Option shall terminate.

 

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6.9
Extension of Termination Date. An Optionholder’s Award Agreement may also provide that if the exercise of the Option
following the termination of the Optionholder’s Continuous Service for any reason would be prohibited at any time because
the issuance of shares of Common Stock would violate the registration requirements under the Securities Act or any other state
or federal securities law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate
on the earlier of (a) the expiration of the term of the Option in accordance with Section 6.1 or (b) the expiration of a period
after termination of the Participant’s Continuous Service that is three months after the end of the period during which
the exercise of the Option would be in violation of such registration or other securities law requirements.

 

6.10
Disability of Optionholder. Unless otherwise provided in an Award Agreement, in the event that an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option
(to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such
period of time ending on the earlier of (a) the date 12 months following such termination or (b) the expiration of the term of
the Option as set forth in the Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within
the time specified herein or in the Award Agreement, the Option shall terminate.

 

6.11
Death of Optionholder. Unless otherwise provided in an Award Agreement, in the event an Optionholder’s Continuous
Service terminates as a result of the Optionholder’s death, then the Option may be exercised (to the extent the Optionholder
was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the
right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s
death, but only within the period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration
of the term of such Option as set forth in the Award Agreement. If, after the Optionholder’s death, the Option is not exercised
within the time specified herein or in the Award Agreement, the Option shall terminate.

 

6.12
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time
of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder
during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof
which exceed such limit (according to the order in which they were granted) shall be treated as Non-qualified Stock Options.

 

7.
Provisions of Awards Other Than Options.

 

7.1
Stock Appreciation Rights.

 

(a)
General

 

Each
Stock Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Stock Appreciation Right so granted
shall be subject to the conditions set forth in this Section 7.1, and to such other conditions not inconsistent with the Plan
as may be reflected in the applicable Award Agreement. Stock Appreciation Rights may be granted alone (“Free Standing
Rights”) or in tandem with an Option granted under the Plan (“Related Rights”).

 

(b)
Grant Requirements

 

Any
Related Right that relates to a Non-qualified Stock Option may be granted at the same time the Option is granted or at any time
thereafter but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive Stock Option must
be granted at the same time the Incentive Stock Option is granted.

 

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(c)
Term of Stock Appreciation Rights

 

The
term of a Stock Appreciation Right granted under the Plan shall be determined by the Committee; provided, however, no Stock
Appreciation Right shall be exercisable later than the tenth anniversary of the Grant Date.

 

(d)
Vesting of Stock Appreciation Rights

 

Each
Stock Appreciation Right may, but need not, vest and therefore become exercisable in periodic installments that may, but need
not, be equal. The Stock Appreciation Right may be subject to such other terms and conditions on the time or times when it may
be exercised as the Committee may deem appropriate. The vesting provisions of individual Stock Appreciation Rights may vary. No
Stock Appreciation Right may be exercised for a fraction of a share of Common Stock. The Committee may, but shall not be required
to, provide for an acceleration of vesting and exercisability in the terms of any Stock Appreciation Right upon the occurrence
of a specified event.

 

(e)
Exercise and Payment

 

Upon
exercise of a Stock Appreciation Right, the holder shall be entitled to receive from the Company an amount equal to the number
of shares of Common Stock subject to the Stock Appreciation Right that is being exercised multiplied by the excess of (i) the
Fair Market Value of a share of Common Stock on the date the Award is exercised, over (ii) the exercise price specified in the
Stock Appreciation Right or related Option. Payment with respect to the exercise of a Stock Appreciation Right shall be made on
the date of exercise. Payment shall be made in the form of shares of Common Stock (with or without restrictions as to substantial
risk of forfeiture and transferability, as determined by the Committee in its sole discretion), cash or a combination thereof,
as determined by the Committee.

 

(f)
Exercise Price

 

The
exercise price of a Free Standing Right shall be determined by the Committee. A Related Right granted simultaneously with or subsequent
to the grant of an Option and in conjunction therewith or in the alternative thereto shall have the same exercise price as the
related Option, shall be transferable only upon the same terms and conditions as the related Option, and shall be exercisable
only to the same extent as the related Option; provided, however, that a Stock Appreciation Right, by its terms, shall
be exercisable only when the Fair Market Value per share of Common Stock subject to the Stock Appreciation Right and related Option
exceeds the exercise price per share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless the
Committee determines that the requirements of Section 7.1(b) are satisfied.

 

(g)
Reduction in the Underlying Option Shares

 

Upon
any exercise of a Related Right, the number of shares of Common Stock for which any related Option shall be exercisable shall
be reduced by the number of shares for which the Stock Appreciation Right has been exercised. The number of shares of Common Stock
for which a Related Right shall be exercisable shall be reduced upon any exercise of any related Option by the number of shares
of Common Stock for which such Option has been exercised.

 

    	 	13	 

    	 

    

 

7.2
Restricted Awards.

 

(a)
General

 

A
Restricted Award is an Award of actual shares of Common Stock (“Restricted Stock”) or hypothetical Common Stock
units (“Restricted Stock Units”) having a value equal to the Fair Market Value of an identical number of shares
of Common Stock, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise
disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any
other purpose for such period (the “Restricted Period”) as the Committee shall determine. Each Restricted Award
granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions
set forth in this Section 7.2, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable
Award Agreement.

 

(b)
Restricted Stock and Restricted Stock Units

 

(i)
Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted
Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines
that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release
of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A)
an escrow agreement satisfactory to the Committee, if applicable and (B) the appropriate blank stock power with respect to the
Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Stock
and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth
in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Stock, including
the right to vote such Restricted Stock and the right to receive dividends; provided that, any cash dividends and stock
dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant’s account, and interest
may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee.
The cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock
(and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee,
in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of
restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

 

(ii)
The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock
shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the
payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.
The Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting
date until the occurrence of a future payment date or event set forth in an Award Agreement (“Deferred Stock Units”).
At the discretion of the Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one share of Common Stock)
may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one share of Common Stock
(“Dividend Equivalents”).

 

(c)
Restrictions

 

(i)
Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted
Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement
is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further
obligation on the part of the Company.

 

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(ii)
Restricted Stock Units and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration
of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the
applicable Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights of
the Participant to such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part
of the Company and (B) such other terms and conditions as may be set forth in the applicable Award Agreement.

 

(iii)
The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Stock Units
and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances
arising after the date the Restricted Stock or Restricted Stock Units or Deferred Stock Units are granted, such action is appropriate.

 

(d)
Restricted Period

 

With
respect to Restricted Awards, the Restricted Period shall commence on the Grant Date and end at the time or times set forth on
a schedule established by the Committee in the applicable Award Agreement.

 

(e)
Delivery of Restricted Stock and Settlement of Restricted Stock Units

 

Upon
the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in Section
7.2(c) and the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth
in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant,
or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock which have not then
been forfeited and with respect to which the Restricted Period has expired (to the nearest full share). Upon the expiration of
the Restricted Period with respect to any outstanding Restricted Stock Units, or at the expiration of the deferral period with
respect to any outstanding Deferred Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without
charge, one share of Common Stock for each such outstanding vested Restricted Stock Unit or Deferred Stock Unit (“Vested
Unit”); provided, however, that, if explicitly provided in the applicable Award Agreement, the Committee may,
in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering only shares of Common Stock
for Vested Units. If a cash payment is made in lieu of delivering shares of Common Stock, the amount of such payment shall be
equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period lapsed in the case of Restricted
Stock Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested Unit.

 

(f)
Stock Restrictions

 

Each
certificate representing Restricted Stock awarded under the Plan shall bear a legend in such form as the Company deems appropriate.

 

7.3
Performance Share Awards.

 

(a)
Grant of Performance Share Awards

 

Each
Performance Share Award granted under the Plan shall be evidenced by an Award Agreement. Each Performance Share Award so granted
shall be subject to the conditions set forth in this Section 7.3, and to such other conditions not inconsistent with the Plan
as may be reflected in the applicable Award Agreement. The Committee shall have the discretion to determine: (i) the number of
shares of Common Stock or stock-denominated units subject to a Performance Share Award granted to any Participant; (ii) the Performance
Period applicable to any Award; (iii) the conditions that must be satisfied for a Participant to earn an Award; and (iv) the other
terms, conditions and restrictions of the Award.

 

    	 	15	 

    	 

    

 

(b)
Earning Performance Share Awards

 

The
number of Performance Shares earned by a Participant will depend on the extent to which the performance goals established by the
Committee are attained within the applicable Performance Period, as determined by the Committee.

 

7.4
Other Equity-Based Awards and Cash Awards. The Committee may grant Other Equity-Based Awards, either alone or in tandem
with other Awards, in such amounts and subject to such conditions as the Committee shall determine in its sole discretion. Each
Equity-Based Award shall be evidenced by an Award Agreement and shall be subject to such conditions, not inconsistent with the
Plan, as may be reflected in the applicable Award Agreement. The Committee may grant Cash Awards in such amounts and subject to
such Performance Goals, other vesting conditions, and such other terms as the Committee determines in its discretion. Cash Awards
shall be evidenced in such form as the Committee may determine.

 

8.
Securities Law Compliance. Each Award Agreement shall provide that no shares of Common Stock shall be purchased or sold
thereunder unless and until (a) any then applicable requirements of state or federal laws and regulatory agencies have been fully
complied with to the satisfaction of the Company and its counsel and (b) if required to do so by the Company, the Participant
has executed and delivered to the Company a letter of investment intent in such form and containing such provisions as the Committee
may require. The Company shall use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction
over the Plan such authority as may be required to grant Awards and to issue and sell shares of Common Stock upon exercise of
the Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act
the Plan, any Award or any Common Stock issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company
is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure
to issue and sell Common Stock upon exercise of such Awards unless and until such authority is obtained.

 

9.
Use of Proceeds from Stock. Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall
constitute general funds of the Company.

 

10.
Miscellaneous.

 

10.1
Acceleration of Exercisability and Vesting. The Committee shall have the power to accelerate the time at which an Award
may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding
the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.

 

10.2
Shareholder Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Award unless and until
such Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made
for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for
which the record date is prior to the date such Common Stock certificate is issued, except as provided in Section 11 hereof.

 

    	 	16	 

    	 

    

 

10.3
No Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto
shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the
time the Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee
with or without notice and with or without Cause or (b) the service of a Director pursuant to the By-laws of the Company or an
Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated,
as the case may be.

 

10.4
Transfer; Approved Leave of Absence. For purposes of the Plan, no termination of employment by an Employee shall be deemed
to result from either (a) a transfer of employment to the Company from an Affiliate or from the Company to an Affiliate, or from
one Affiliate to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved
by the Company, if the Employee’s right to reemployment is guaranteed either by a statute or by contract or under the policy
pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except
to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

 

10.5
Withholding Obligations. To the extent provided by the terms of an Award Agreement and subject to the discretion of the
Committee, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition
of Common Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation
paid to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company
to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value
exceeding the maximum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered
shares of Common Stock of the Company.

 

11.
Adjustments Upon Changes in Stock. In the event of changes in the outstanding Common Stock or in the capital structure
of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate
transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change
in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise
price of Options and Stock Appreciation Rights, the Performance Goals to which Performance Share Awards and Cash Awards are subject,
the maximum number of shares of Common Stock subject to all Awards stated in Section 4 will be equitably adjusted or substituted,
as to the number, price or kind of a share of Common Stock or other consideration subject to such Awards to the extent necessary
to preserve the economic intent of such Award. In the case of adjustments made pursuant to this Section 11, unless the Committee
specifically determines that such adjustment is in the best interests of the Company or its Affiliates, the Committee shall, in
the case of Incentive Stock Options, ensure that any adjustments under this Section 11 will not constitute a modification, extension
or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code and in the case of Non-qualified
Stock Options, ensure that any adjustments under this Section 11 will not constitute a modification of such Non-qualified Stock
Options within the meaning of Section 409A of the Code. Any adjustments made under this Section 11 shall be made in a manner which
does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. The Company shall give each Participant
notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

 

12.
Effect of Change in Control.

 

12.1
Unless otherwise provided in an Award Agreement, notwithstanding any provision of the Plan to the contrary:

 

(a)
In the event of a Participant’s termination of Continuous Service without Cause or for Good Reason during the 3-month period
following a Change in Control, notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary, all
outstanding Options and Stock Appreciation Rights shall become immediately exercisable with respect to 100% of the shares subject
to such Options or Stock Appreciation Rights, and/or the Restricted Period shall expire immediately with respect to 100% of the
outstanding shares of Restricted Stock or Restricted Stock Units as of the date of the Participant’s termination of Continuous
Service.

 

    	 	17	 

    	 

    

 

(b)
With respect to Performance Share Awards and Cash Awards, in the event of a Change in Control, all incomplete Performance Periods
in respect of such Awards in effect on the date the Change in Control occurs shall end on the date of such change and the Committee
shall (i) determine the extent to which Performance Goals with respect to each such Performance Period have been met based upon
such audited or unaudited financial information then available as it deems relevant and (ii) cause to be paid to the applicable
Participant partial or full Awards with respect to Performance Goals for each such Performance Period based upon the Committee’s
determination of the degree of attainment of Performance Goals or, if not determinable, assuming that the applicable “target”
levels of performance have been attained, or on such other basis determined by the Committee.

 

To
the extent practicable, any actions taken by the Committee under the immediately preceding clauses (a) and (b) shall occur in
a manner and at a time which allows affected Participants the ability to participate in the Change in Control with respect to
the shares of Common Stock subject to their Awards.

 

12.2
In addition, in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days’ advance
notice to the affected persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination
thereof, the value of such Awards based upon the price per share of Common Stock received or to be received by other shareholders
of the Company in the event. In the case of any Option or Stock Appreciation Right with an exercise price (or SAR Exercise Price
in the case of a Stock Appreciation Right) that equals or exceeds the price paid for a share of Common Stock in connection with
the Change in Control, the Committee may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

 

12.3
The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the
merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to
all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.

 

13.
Amendment of the Plan and Awards.

 

13.1
Amendment of Plan. The Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided
in Section 11 relating to adjustments upon changes in Common Stock and Section 13.3, no amendment shall be effective unless approved
by the shareholders of the Company to the extent shareholder approval is necessary to satisfy any Applicable Laws. At the time
of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on shareholder
approval.

 

13.2
Shareholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for shareholder approval.

 

13.3
Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems
necessary or advisable to provide eligible Employees, Consultants and Directors with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options or to the nonqualified
deferred compensation provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance
therewith.

 

13.4
No Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment
of the Plan unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

 

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13.5
Amendment of Awards. The Committee at any time, and from time to time, may amend the terms of any one or more Awards; provided,
however, that the Committee may not affect any amendment which would otherwise constitute an impairment of the rights under
any Award unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

 

14.
General Provisions.

 

14.1
Forfeiture Events. The Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits
with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain
events, in addition to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition,
non-solicitation, confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable
to the Participant, a termination of the Participant’s Continuous Service for Cause, or other conduct by the Participant
that is detrimental to the business or reputation of the Company and/or its Affiliates.

 

14.2
Clawback. Notwithstanding any other provisions in this Plan, the Company may cancel any Award, require reimbursement of
any Award by a Participant, and effect any other right of recoupment of equity or other compensation provided under the Plan in
accordance with any Company policies that may be adopted and/or modified from time to time (“Clawback Policy”).
In addition, a Participant may be required to repay to the Company previously paid compensation, whether provided pursuant to
the Plan or an Award Agreement, in accordance with the Clawback Policy. By accepting an Award, the Participant is agreeing to
be bound by the Clawback Policy, as in effect or as may be adopted and/or modified from time to time by the Company in its discretion
(including, without limitation, to comply with applicable law or stock exchange listing requirements).

 

14.3
Other Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

 

14.4
Sub-Plans. The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying securities,
tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations
and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of
the Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

 

14.5
Deferral of Awards. The Committee may establish one or more programs under the Plan to permit selected Participants the
opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other
event that absent the election would entitle the Participant to payment or receipt of shares of Common Stock or other consideration
under an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments
of, and accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms,
conditions, rules and procedures that the Committee deems advisable for the administration of any such deferral program.

 

14.6
Unfunded Plan. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish
any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.

 

14.7
Recapitalizations. Each Award Agreement shall contain provisions required to reflect the provisions of Section 11.

 

    	 	19	 

    	 

    

 

14.8
Delivery. Upon exercise of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts due
within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have,
for purposes of this Plan, 30 days shall be considered a reasonable period of time.

 

14.9
No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Committee
shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional
shares of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated.

 

14.10
Other Provisions. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent with
this Plan, including, without limitation, restrictions upon the exercise of Awards, as the Committee may deem advisable.

 

14.11
Section 409A. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly,
to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described
in the Plan that are due within the “short-term deferral period” as defined in Section 409A of the Code shall not
be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the
Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would
otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately
following the Participant’s termination of Continuous Service shall instead be paid on the first payroll date after the
six-month anniversary of the Participant’s separation from service (or the Participant’s death, if earlier). Notwithstanding
the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of
any additional tax or penalty on any Participant under Section 409A of the Code and neither the Company nor the Committee will
have any liability to any Participant for such tax or penalty.

 

14.12
Disqualifying Dispositions. Any Participant who shall make a “disposition” (as defined in Section 424 of the
Code) of all or any portion of shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from
the Grant Date of such Incentive Stock Option or within one year after the issuance of the shares of Common Stock acquired upon
exercise of such Incentive Stock Option (a “Disqualifying Disposition”) shall be required to immediately advise
the Company in writing as to the occurrence of the sale and the price realized upon the sale of such shares of Common Stock.

 

14.13
Section 16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable
requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit
of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability
under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent
expressed in this Section 14.13, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid
such conflict.

 

14.14
Beneficiary Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by
whom any right under the Plan is to be exercised in case of such Participant’s death. Each designation will revoke all prior
designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when
filed by the Participant in writing with the Company during the Participant’s lifetime.

 

14.15
Expenses. The costs of administering the Plan shall be paid by the Company.

 

14.16
Severability. If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable,
whether in whole or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity,
illegality or unenforceability and the remaining provisions shall not be affected thereby.

 

    	 	20	 

    	 

    

 

14.17
Plan Headings. The headings in the Plan are for purposes of convenience only and are not intended to define or limit the
construction of the provisions hereof.

 

14.18
Non-Uniform Treatment. The Committee’s determinations under the Plan need not be uniform and may be made by it selectively
among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the
Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform
and selective Award Agreements.

 

15.
Effective Date of Plan. The Plan shall become effective as of the Effective Date.

 

16.
Termination or Suspension of the Plan. The Plan shall terminate automatically on June ___, 2028. No Award shall be granted
pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or terminate
the Plan at any earlier date pursuant to Section 13.1 hereof. No Awards may be granted under the Plan while the Plan is suspended
or after it is terminated.

 

17.
Choice of Law. The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation
of this Plan, without regard to such state’s conflict of law rules.

 

As
adopted by the Board of Directors of AIT Therapeutics, Inc. on June ___, 2018.

 

    	 	21	 

    	 

    

 

ANNEX
A 

TO
THE AMENDED AND RESTATED 2013 EQUITY INCENTIVE PLAN

OF

AIT
THERAPEUTICS, INC. 

 

    	 	22	 

    	 

    

 

 DEFINITIONS

 

For
purposes of this Annex and the Grant Notification Letter, the following definitions shall apply:

 

		(a)	“Affiliate”
                                         - any “employing company” within the meaning of Section 102(a) of the Ordinance.
	 	 	 
		(b)	“Approved
                                         102 Option” - an Option granted pursuant to Section 102(b) of the Ordinance
                                         and held in trust by a Trustee for the benefit of the Grantee.
	 	 	 
		(c)	“Capital
                                         Gain Option (CGO)” - an Approved 102 Option elected and designated by the Company
                                         to qualify under the capital gain tax treatment in accordance with the provisions of
                                         Section 102(b)(2) of the Ordinance.
	 	 	 
		(d)	“Controlling
                                         Shareholder” - shall have the meaning ascribed to it in Section 32(9) of the
                                         Ordinance.
	 	 	 
		(e)	“Date
                                         of Grant” – the date upon which the Option is granted to the Grantee.
	 	 	 
		(f)	“Employee”
                                         - a person who is employed by the Company or its Affiliates, including an individual
                                         who is serving as a director or an office holder, but excluding any Controlling Shareholder,
                                         all as determined in Section 102 of the Ordinance.
	 	 	 
		(g)	“Grantee”
                                         – a person who receives an Option under this Annex.
	 	 	 
		(h)	“ITA”
                                         - the Israeli Tax Authorities.
	 	 	 
		(i)	“Non-Employee”
                                         - a consultant, adviser, service provider, Controlling Shareholder or any other
                                         person who is not an Employee.
	 	 	 
		(j)	“Ordinary
                                         Income Option (OIO)” - an Approved 102 Option elected and designated by the
                                         Company to qualify under the ordinary income tax treatment in accordance with the provisions
                                         of Section 102(b)(1) of the Ordinance.
	 	 	 
		(k)	“102
                                         Option” - any Option granted to Employees pursuant to Section 102 of
                                         the Ordinance.
	 	 	 
		(l)	“3(i)
                                         Option” - an Option granted pursuant to Section 3(i) of the Ordinance
                                         to any person who is a Non-Employee.
	 	 	 
		(m)	“Ordinance”
                                         - the Israeli Income Tax Ordinance [New Version] 1961 as now in effect or as hereafter
                                         amended.
	 	 	 
		(n)	“Section
                                         102” - Section 102 of the Ordinance and any regulations, rules, orders
                                         or procedures promulgated thereunder as now in effect or as hereafter amended.
	 	 	 
		(o)	“Trustee”
                                         - any individual appointed by the Company to serve as a trustee and approved by
                                         the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.
	 	 	 
		(p)	“Unapproved
                                         102 Option” - an Option granted pursuant to Section 102(c) of the Ordinance
                                         and not held in trust by a Trustee.

 

For
the avoidance of any doubt, it is hereby clarified that any capitalized terms not specifically defined in this Annex shall be
construed according to the interpretation given to it in the Plan.

 

    	 	23	 

    	 

    

 

ANNEX
A - ISRAEL

 

1.
GENERAL

 

		1.1.	This
                                         Annex (the: “Annex”) shall apply only to Grantees who are residents
                                         of the State of Israel at the Date of Grant or those who are deemed to be residents of
                                         the state of Israel for the payment of tax at the Date of Grant. The provisions specified
                                         hereunder shall form an integral part of Section 4 of the Amended and Restated 2013 Equity
                                         Incentive Plan (the: “Plan”) of AIT Therapeutics, Inc. (the: “Company”)
                                         and in particular Section 4 of the Plan (hereinafter: the “Scheme”),
                                         which applies to the issuance of options to purchase shares of Common Stock (the “Shares”)
                                         of the Company. According to the Scheme, Options to purchase the Company’s Shares
                                         may be issued to employees, directors, consultants and service provides of the Company
                                         or its affiliates. The tax rules and the US tax provisions and regulations shall not
                                         apply to any grants hereunder to a Grantee who is a resident of the State of Israel at
                                         the Date of Grant or those who are deemed to be residents of the State of Israel for
                                         the payment of tax at the Date of Grant.
	 	 	 
		1.2	This
                                         Annex is effective with respect to Options granted following Amendment no. 132 of the
                                         Ordinance, which entered into force on January 1, 2003.
	 	 	 
		1.3	This
                                         Annex is to be read as a continuation of the Scheme and only modifies Options granted
                                         to Israeli Grantees so that they comply with the requirements set by the Israeli law
                                         in general, and in particular with the provisions of Section 102 (as specified herein),
                                         as may be amended or replaced from time to time. For the avoidance of doubt, this Annex
                                         does not add to or modify the Scheme in respect of any other category of Grantees.
	 	 	 
		1.4	The
                                         Scheme and this Annex are complimentary to each other and shall be deemed as one. In
                                         any case of contradiction, whether explicit or implied, between the provisions of this
                                         Annex and the Scheme, the provisions set out in the Annex shall prevail.

 

2.
ISSUANCE OF OPTIONS

 

		2.1	The
                                         persons eligible for participation in the Scheme as Grantees shall include any Employees
                                         and/or Non-Employees of the Company or of any Affiliate; provided, however, that
                                         (i) Employees may only be granted 102 Options; and (ii) Non-Employees and/or Controlling
                                         Shareholders may only be granted 3(i) Options.
	 	 	 
		2.2	The
                                         Company may designate Options granted to Employees pursuant to Section 102 as Unapproved
                                         102 Options or Approved 102 Options.
	 	 	 
		2.3	The
                                         grant of Approved 102 Options shall be made under this Annex adopted by the Board, and
                                         shall be conditioned upon the approval of this Annex by the ITA.
	 	 	 
		2.4	Approved
                                         102 Options may either be classified as Capital Gain Options (“CGOs”)
                                         or Ordinary Income Options (“OIOs”).
	 	 	 
		2.5	No
                                         Approved 102 Options may be granted under this Annex to any eligible Employee, unless
                                         and until, the Company’s election of the type of Approved 102 Options as CGO or
                                         OIO granted to Employees (the: “Election”), is appropriately filed
                                         with the ITA. Such Election shall become effective beginning the first date of grant
                                         of an Approved 102 Option under this Annex and shall remain in effect at least until
                                         the end of the year following the year during which the Company first granted Approved
                                         102 Options. The Election shall obligate the Company to grant only the type of
                                         Approved 102 Option it has elected, and shall apply to all Grantees who were granted
                                         Approved 102 Options during the period indicated herein, all in accordance with the provisions
                                         of Section 102(g) of the Ordinance. For the avoidance of doubt, such Election shall not
                                         prevent the Company from granting Unapproved 102 Options simultaneously.

 

    	 	24	 

    	 

    

 

		2.6	All
                                         Approved 102 Options must be held in trust by a Trustee, as described in Section 3 below.
	 	 	 
		2.7	For
                                         the avoidance of doubt, the designation of Unapproved 102 Options and Approved 102 Options
                                         shall be subject to the terms and conditions set forth in Section 102.

 

3.
TRUSTEE

 

		3.1	Approved
                                         102 Options which shall be granted under this Annex and/or any Shares allocated or issued
                                         upon exercise of such Approved 102 Options and/or other shares received subsequently
                                         following any realization of rights, including without limitation bonus shares, shall
                                         be allocated or issued to the Trustee and held for the benefit of the Grantees for such
                                         period of time as required by Section 102 or any regulations, rules or orders or procedures
                                         promulgated thereunder (the: “Holding Period”). In the case the requirements
                                         for Approved 102 Options are not met, then the Approved 102 Options may be regarded as
                                         Unapproved 102 Options, all in accordance with the provisions of Section 102.
	 		 
		3.2	Notwithstanding
                                         anything to the contrary, the Trustee shall not release any Shares allocated or issued
                                         upon exercise of Approved 102 Options prior to the full payment of the Grantee’s
                                         tax liabilities arising from Approved 102 Options which were granted to him and/or any
                                         Shares allocated or issued upon exercise of such Options.
	 	 	 
		3.3	With
                                         respect to any Approved 102 Option, subject to the provisions of Section 102 and any
                                         rules or regulation or orders or procedures promulgated thereunder, a Grantee shall not
                                         sell or release from trust any Share received upon the exercise of an Approved 102 Option
                                         and/or any share received subsequently following any realization of rights, including
                                         without limitation, bonus shares, until the lapse of the Holding Period required under
                                         Section 102 of the Ordinance. Notwithstanding the above, if any such sale or release
                                         occurs during the Holding Period, the sanctions under Section 102 of the Ordinance and
                                         under any rules or regulation or orders or procedures promulgated thereunder shall apply
                                         to and shall be borne by such Grantee.
	 		 
		3.4	Upon
                                         receipt of Approved 102 Option, the Grantee will sign an undertaking in which he or she
                                         will give his or her consent to the grant of the Option under Section 102, and will undertake
                                         to comply with the terms of Section 102 and the trust agreement between the Company and
                                         the Trustee. Furthermore, each Grantee shall sign and execute an undertaking in relation
                                         to the voting of any Share received upon the exercise of an Approved 102 Option.

 

4.
THE OPTIONS

 

The
terms and conditions, upon which the Options shall be issued and exercised, shall be as specified in a letter to be executed pursuant
to the Scheme and to this Annex (the: “Grant Notification Letter”). Each Grant Notification Letter shall state,
inter alia, the number of Shares to which the Option relates, the type of Option granted thereunder (whether a CGO, OIO, Unapproved
102 Option or a 3(i) Option), the vesting provisions and the Purchase Price.

 

5.
FAIR MARKET VALUE

 

Without
derogating from the definition of “Fair Market Value” enclosed in the Scheme and solely for the purpose of determining
the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the date of grant the Company’s shares are listed
on any established stock exchange or a national market system or if the Company’s shares will be registered for trading
within ninety (90) days following the date of grant of the CGOs, the fair market value of the Shares at the date of grant shall
be determined in accordance with the average value of the Company’s shares on the thirty (30) trading days preceding the
date of grant or on the thirty (30) trading days following the date of registration for trading, as the case may be.

 

    	 	25	 

    	 

    

 

6.
EXERCISE OF OPTIONS

 

		6.1	Options
                                         shall be exercised by the Grantee by giving a written notice to the Company and/or to
                                         any third party designated by the Company (the: “Representative”),
                                         in such form and method as may be determined by the Company and, when applicable, by
                                         the Trustee, in accordance with the requirements of Section 102, which exercise shall
                                         be effective upon receipt of such notice by the Company and/or the Representative and
                                         the payment of the Purchase Price for the number of Shares with respect to which the
                                         option is being exercised, at the Company’s or the Representative’s principal
                                         office. The notice shall specify the number of Shares with respect to which the option
                                         is being exercised.
	 		 
		6.2	Without
                                         derogating from Section 11(2) of the Plan, and in addition thereto, with respect to Approved
                                         102 Options, any shares of Common Stock allocated or issued upon the exercise of an Approved
                                         102 Option, shall be voted in accordance with the provisions of Section 102 and any rules,
                                         regulations or orders promulgated thereunder.

 

7.
ASSIGNABILITY AND SALE OF OPTIONS

 

	 	7.1	Notwithstanding
                                         any other provision of the Scheme, no Option or any right with respect thereto, purchasable
                                         hereunder, whether fully paid or not, shall be assignable, transferable or given as collateral
                                         or any right with respect to them given to any third party whatsoever, and during the
                                         lifetime of the Grantee each and all of such Grantee’s rights to purchase Shares
                                         hereunder shall be exercisable only by the Grantee.
	 	 	 
	 	 	Any
                                         such action made directly or indirectly, for an immediate validation or for a future
                                         one, shall be void.
	 	 	 
		7.2	As
                                         long as Options or Shares purchased pursuant to thereto are held by the Trustee on behalf
                                         of the Grantee, all rights of the Grantee over the shares are personal, cannot be transferred,
                                         assigned, pledged or mortgaged, other than by will or laws of descent and distribution.

 

8.
INTEGRATION OF SECTION 102 AND TAX ASSESSING OFFICER’S PERMIT

 

		8.1	With
                                         regards to Approved 102 Options, the provisions of the Scheme and/or the Annex and/or
                                         the Grant Notification Letter shall be subject to the provisions of Section 102 and the
                                         Tax Assessing Officer’s permit, and the said provisions and permit shall be deemed
                                         an integral part of the Scheme and of the Annex and of the Grant Notification Letter.
	 		 
		8.2	Any
                                         provision of Section 102 and/or the said permit which is necessary in order to receive
                                         and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified
                                         in the Scheme or the Annex or the Grant Notification Letter, shall be considered binding
                                         upon the Company and the Grantees.

 

9.
DIVIDEND

 

Subject
to the Company’s incorporation documents, with respect to all Shares (but excluding, for avoidance of any doubt, any unexercised
options) allocated or issued upon the exercise of Options and held by the Grantee or by the Trustee as the case may be, the Grantee
shall be entitled to receive dividends in accordance with the quantity of such shares, and subject to any applicable taxation
on distribution of dividends, and when applicable subject to the provisions of Section 102 and the rules, regulations or orders
promulgated thereunder.

 

    	 	26	 

    	 

    

 

10.
TAX CONSEQUENCES

 

		10.1 	Any
                                         tax consequences arising from the grant or exercise of any Option, from the payment for
                                         Shares covered thereby or from any other event or act (of the Company, and/or its Affiliates,
                                         and the Trustee or the Grantee), hereunder, shall be borne solely by the Grantee. The
                                         Company and/or its Affiliates, and/or the Trustee shall withhold taxes according to the
                                         requirements under the applicable laws, rules, and regulations, including withholding
                                         taxes at source. Furthermore, the Grantee shall agree to indemnify the Company and/or
                                         its Affiliates and/or the Trustee and hold them harmless against and from any and all
                                         liability for any such tax or interest or penalty thereon, including without limitation,
                                         liabilities relating to the necessity to withhold, or to have withheld, any such tax
                                         from any payment made to the Grantee.
	 	 	 
		10.2 	The
                                         Company and/or, when applicable, the Trustee shall not be required to release any share
                                         certificate to a Grantee until all required payments have been fully made.
	 	 	 
		10.3 	With
                                         respect to Unapproved 102 Option, if the Grantee ceases to be employed by the Company
                                         or any Affiliate, the Grantee shall extend to the Company and/or its Affiliate a security
                                         or guarantee for the payment of tax due at the time of sale of Shares, all in accordance
                                         with the provisions of Section 102 and the rules, regulation or orders promulgated thereunder.

 

11.
GOVERNING LAW & JURISDICTION

 

This
Annex shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts
made and to be performed therein, without giving effect to the principles of conflict of laws. The competent courts of the State
of Delaware shall have sole jurisdiction in any matters pertaining to this Annex.

 

*
* *

 

    	 	27Exhibit 4.1

 

WARRANT AGENT AGREEMENT

 

WARRANT AGENT AGREEMENT
(this “Warrant Agreement”) dated as of August 16, 2018 (the “Issuance Date”) between Ameri
Holdings, Inc., a Delaware corporation (the “Company”), and Corporate Stock Transfer, Inc. (the “Warrant
Agent”).

 

WHEREAS, pursuant to the
terms of that certain Amendment Agreement, dated June 22, 2018, by and between the Company and Lone Star Value Investors, LP, the
Company intends to issue 5,000,000 warrants (the “Warrants”) to purchase shares (the “Warrant Shares”)
of common stock of the Company, par value $0.01 per share (the “Common Stock”);

 

WHEREAS, the Company intends
to file with the Securities and Exchange Commission (the “Commission”) a registration statement (as the same
may be amended from time to time, the “Registration Statement”), for the registration under the Securities Act
of 1933, as amended (the “Securities Act”), of the Warrants and Warrant Shares;

 

WHEREAS, the Company desires
the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in accordance with the terms set
forth in this Warrant Agreement in connection with the issuance, registration, transfer, exchange and exercise of the Warrants;

 

WHEREAS, the Company desires
to provide for the provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights,
limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS, all acts and things
have been done and performed which are necessary to make the Warrants the valid, binding and legal obligations of the Company,
and to authorize the execution and delivery of this Warrant Agreement.

 

NOW, THEREFORE, in consideration
of the mutual agreements herein contained, the parties hereto agree as follows:

 

1.Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company with respect to the Warrants,
and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and conditions
set forth in this Warrant Agreement (and no implied terms or conditions).

 

2.Warrants.

 

2.1.Form
of Warrants. The Warrants shall be evidenced by a global certificate (“Global Certificate”) in the form
of Exhibit A to this Warrant Agreement, which shall be deposited on behalf of the Company with the Warrant Agent, which
shall make arrangements for book-entry settlement of the Warrants. In the event that the Warrants are not eligible for, or it is
no longer necessary to have the Warrants available in, book-entry form, the Company may instruct the Warrant Agent to cancel the
Global Certificate, and the Company shall deliver to the Warrant Agent separate certificates evidencing Warrants (“Definitive
Certificates” and, together with the Global Certificate, “Warrant Certificates”).

 

    	1

     

    

 

2.2.Issuance
and Registration of Warrants.

 

2.2.1.Warrant
Register. The Warrant Agent shall maintain books (“Warrant Register”) for the registration of original issuance
and the registration of transfer of the Warrants.

 

2.2.2.Issuance
of Warrants. Upon the initial issuance of the Warrants, the Company shall issue the Global Certificate to the Warrant Agent
to establish the Warrants in book-entry form. Ownership of security entitlements in the Warrants shall be shown on, and the transfer
of such ownership shall be effected through, records maintained by the Warrant Agent.

 

2.2.3.Beneficial
Owner; Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may
deem and treat the person in whose name that Warrant shall be registered on the Warrant Register (the “Holder”)
as the absolute owner of such Warrant for purposes of any exercise thereof, and for all other purposes, and neither the Company
nor the Warrant Agent shall be affected by any notice to the contrary. The rights of beneficial owners in a Warrant evidenced by
the Global Certificate shall be exercised by the Holder through the Warrant Agent, except to the extent set forth herein or in
the Global Certificate.

 

2.2.4.Execution.
The Warrant Certificates shall be executed on behalf of the Company by any authorized officer of the Company (an “Authorized
Officer”), which need not be the same authorized signatory for all of the Warrant Certificates, either manually or by
facsimile signature. The Warrant Certificates shall be countersigned by an authorized signatory of the Warrant Agent, which need
not be the same signatory for all of the Warrant Certificates, and no Warrant Certificate shall be valid for any purpose unless
so countersigned. In case any Authorized Officer of the Company that signed any of the Warrant Certificates ceases to be an Authorized
Officer of the Company before countersignature by the Warrant Agent and issuance and delivery by the Company, such Warrant Certificates,
nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person
who signed such Warrant Certificates had not ceased to be such officer of the Company; and any Warrant Certificate may be signed
on behalf of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be an Authorized
Officer of the Company authorized to sign such Warrant Certificate, although at the date of the execution of this Warrant Agreement
any such person was not such an Authorized Officer.

 

    	2

     

    

 

2.2.5.Registration
of Transfer. At any time at or prior to the Expiration Date (as defined below), a transfer of any Warrants may be registered
and any Warrant Certificate or Warrant Certificates may be split up, combined or exchanged for another Warrant Certificate or Warrant
Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant Certificates surrendered. Any Holder
desiring to register the transfer of Warrants or to split up, combine or exchange any Warrant Certificate shall make such request
in writing delivered to the Warrant Agent, and shall surrender to the Warrant Agent the Warrant Certificate or Warrant Certificates
evidencing the Warrants the transfer of which is to be registered or that is or are to be split up, combined or exchanged and,
in the case of registration of transfer, shall provide a signature guarantee. Thereupon, the Warrant Agent shall countersign and
deliver to the person entitled thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The
Company and the Warrant Agent may require payment, by the Holder requesting a registration of transfer of Warrants or a split-up,
combination or exchange of a Warrant Certificate (but, for purposes of clarity, not upon the exercise of the Warrants and issuance
of Warrant Shares to the Holder), of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with such registration of transfer, split-up, combination or exchange, together with reimbursement to the Company and the Warrant
Agent of all reasonable expenses incidental thereto.

 

2.2.6.Loss,
Theft and Mutilation of Warrant Certificates. Upon receipt by the Company and the Warrant Agent of evidence reasonably satisfactory
to them of the loss, theft, destruction or mutilation of a Warrant Certificate, and, in case of loss, theft or destruction, of
indemnity or security in customary form and amount, and reimbursement to the Company and the Warrant Agent of all reasonable expenses
incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate if mutilated, the Warrant
Agent shall, on behalf of the Company, countersign and deliver a new Warrant Certificate of like tenor to the Holder in lieu of
the Warrant Certificate so lost, stolen, destroyed or mutilated. Unless the initial Warrant Certificate cannot be confirmed delivered
by the Company or Warrant Agent, the Warrant Agent may charge the Holder an administrative fee for processing the replacement of
lost Warrant Certificates, which shall be charged only once in instances where a single surety bond obtained covers multiple certificates.
The Warrant Agent may receive compensation from the surety companies or surety agents for administrative services provided to them.

 

2.2.7.Proxies.
The Holder of a Warrant may grant proxies or otherwise authorize any person to take any action that a Holder is entitled to take
under this Agreement or the Warrants; provided, however, that at all times that Warrants are evidenced by a Global
Certificate, exercise of those Warrants shall be effected in accordance with the procedures administered by the Warrant Agent.

 

3.Terms
and Exercise of Warrants.

 

3.1.Exercise
Price. Each Warrant shall entitle the Holder, subject to the provisions of the applicable Warrant Certificate and of this Warrant
Agreement, to purchase from the Company the number of shares of Common Stock stated therein, at the price of $1.50 per whole share,
subject to the subsequent adjustments provided in Section 4 hereof. The term “Exercise Price” as used in this
Warrant Agreement refers to the price per share at which shares of Common Stock may be purchased at the time a Warrant is exercised.

 

    	3

     

    

 

3.2.Duration
of Warrants. Warrants may be exercised only during the period (“Exercise Period”) commencing on the Issuance
Date and terminating at 5:00 P.M., New York City time (the “close of business”) on August 16, 2023 (“Expiration
Date”); provided that in the event that the closing price of the Common Stock is $2.00 or higher for 10 Trading
Days in any period of 15 consecutive Trading Days, the Company shall have the option, in its sole discretion, to elect to accelerate
the Expiration Date to such date that is 30 days (or such other period as is determined in the Company’s sole discretion)
following the date of such election. In the event that the Company elects to accelerate the Expiration Date in accordance with
the terms of this Section 3.2, the Company shall promptly notify the Warrant Agent and the Holder(s) of such election, with corresponding
proof of delivery of such notification, and do and perform or cause to be done and performed all such acts, deeds and things, and
to make, execute and deliver, or cause to be made, executed and delivered, all such agreements, undertakings, documents, instruments
or filings in the name or on behalf of the Company, as may be reasonably requested by the Warrant Agent or as required by applicable
laws or regulations to effectuate the acceleration of the Expiration Date. Each Warrant not exercised on or before the Expiration
Date (including as such may be accelerated pursuant to the terms of this Section 3.2) shall become void, and all rights thereunder
and all rights in respect thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date. The
Holder acknowledges and agrees that the Warrants may expire in accordance with the terms of this Agreement if the Warrants are
not exercised prior to the Expiration Date (including as such may be accelerated pursuant to the terms of this Section 3.2) and
acknowledges that notice to the Warrant Agent and the Holder(s) of termination of the Warrant by the Company shall constitute appropriate
notice to any holder of the Warrants, as the case may be, at the time of such notice.

 

3.3.Exercise
of Warrants.

 

3.3.1.Exercise
and Payment.

 

(a) Subject to the provisions
of this Warrant Agreement, a Holder may exercise Warrants by delivering to the Warrant Agent, not later than 5:00 P.M., New York
City time, on any business day during the Exercise Period an election to purchase the Warrant Shares underlying the Warrants to
be exercised in the form included in Exhibit B to this Warrant Agreement (an “Election to Purchase”).
No later than two (2) Trading Days following delivery of an Election to Purchase, the Holder shall: (i) surrender the Warrant Certificate
evidencing the Warrants to the Warrant Agent at its office designated for such purpose, and (ii) deliver to the Company the Exercise
Price for each Warrant to be exercised, in lawful money of the United States of America by certified or official bank check payable
to the Company or bank wire transfer in immediately available funds to:

 

	 	Account Name - Ameri Holdings Inc.
	 	Account Number - 6700092361
	 	ABA Number - 026007773
	 	Bank Name & Address:	Sterling National Bank,
	 	 	310 Crossways Park Dr., Woodbury, NY 11797

 

Any person so designated by the Holder to receive
Warrant Shares shall be deemed to have become holder of record of such Warrant Shares as of the time that an appropriately completed
and duly signed Election to Purchase has been delivered to the Warrant Agent, provided that the Holder makes delivery of the deliverables
referenced in the immediately preceding sentence by the date that is two (2) Trading Days after the delivery of the Election to
Purchase. If the Holder fails to make delivery of such deliverables on or prior to the Trading Day that is within two (2) days
following delivery of the Election to Purchase, such Election to Purchase shall be void ab initio.

 

    	4

     

    

 

(b) If any of (i) the Warrants,
(ii) the Election to Purchase, or (iii) the Exercise Price therefor, is received by the Warrant Agent on any date after 5:00 P.M.,
New York City time, or on a date that is not a Trading Day, the Warrants with respect thereto will be deemed to have been received
and exercised on the Trading Day next succeeding such date. The “Exercise Date” will be the date on which the
materials in the foregoing sentence are received by the Warrant Agent (if by 5:00 P.M., New York City time), or the following Trading
Day (if after 5:00 P.M., New York City time), regardless of any earlier date written on the materials. “Business day”
means a day other than a Saturday or Sunday on which commercial Banks in New York City are open for the general conduct of banking
business. If the Warrants are received or deemed to be received after the Expiration Date, the exercise thereof will be null and
void and any funds delivered to the Company will be returned to the Holder as soon as practicable. In no event will interest accrue
on any funds deposited with the Company in respect of an exercise or attempted exercise of Warrants.

 

(c) If less than all the
Warrants evidenced by a surrendered Warrant Certificate are exercised, the Warrant Agent shall split the surrendered Warrant Certificate
and return to the Holder a Warrant Certificate evidencing the Warrants that were not exercised at no charge to the Holder.

 

3.3.2.Issuance
of Warrant Shares.

 

(a) The Warrant Agent shall,
by 11:00 a.m., New York City time, on the Trading Day following the Exercise Date of any Warrant, advise the Company, the transfer
agent and registrar for the Company’s Common Stock, in respect of (i) the number of Warrant Shares indicated on the Election
to Purchase as issuable upon such exercise with respect to such exercised Warrants, (ii) the instructions of the Holder provided
to the Warrant Agent with respect to the delivery of the Warrant Shares and the number of Warrants that remain outstanding after
such exercise and (iii) such other information as the Company or such transfer agent and registrar shall reasonably request.

 

(b) The Company shall, by
no later than 5:00 P.M., New York City time, on the third Trading Day following the Exercise Date of any Warrant and the clearance
of the funds in payment of the Exercise Price (such date and time, the “Delivery Time”), cause its registrar
to electronically book the Warrant Shares issuable upon that exercise.

 

3.3.3.Valid
Issuance. All Warrant Shares issued by the Company upon the proper exercise of a Warrant in conformity with this Warrant Agreement
shall be validly issued, fully paid and non-assessable.

 

3.3.4.No
Fractional Exercise. No fractional Warrant Shares will be issued upon the exercise of the Warrant. If, by reason of any adjustment
made pursuant to Section 4, a Holder would be entitled, upon the exercise of such Warrant, to receive an amount in cash equal to
the fractional amount multiplied by the exercise price or a number of Warrant Shares rounded up to the next whole share.

 

    	5

     

    

 

3.3.5.No
Transfer Taxes. The Company shall not be required to pay any stamp or other tax or governmental charge required to be paid
in connection with any transfer involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that
any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Shares until such tax or other
charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge is
due.

 

3.3.6.Date
of Issuance. The Company will treat an exercising Holder as a beneficial owner of the Warrant Shares as of the Exercise Date,
except that, if the Exercise Date is a date when the stock transfer books of the Company are closed, such person shall be deemed
to have become the holder of such shares at the open of business on the next succeeding date on which the stock transfer books
are open.

 

3.3.7.Restrictive
Legend Events. (a) The Company shall use it reasonable best efforts to obtain the effectiveness of the Registration Statement
and the current status of the prospectus included therein covering the Warrants and the Warrant Shares at any time that the Warrants
are exercisable in accordance with the Amendment Agreement entered into by the Company on June 22, 2018. Until such Registration
Statement becomes effective, the Warrant Shares shall be subject to the Restrictive Legend (defined below). Upon the effectiveness
of such Registration Statement, the Company shall provide to the Warrant Agent and each Holder prompt written notice of any time
that the Company is unable to deliver the Warrant Shares without restrictive legend because (i) the Commission has issued a stop
order with respect to the Registration Statement, (ii) the Commission otherwise has suspended or withdrawn the effectiveness of
the Registration Statement, either temporarily or permanently, (iii) the Company has suspended or withdrawn the effectiveness of
the Registration Statement, either temporarily or permanently, (iv) the prospectus contained in the Registration Statement is not
available for the issuance of the Warrant Shares to the Holder or (v) otherwise. As used herein, the “Restrictive Legend”
shall be as follows:

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES
OR “BLUE SKY LAWS”, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE
REGISTRATION THEREOF UNDER THE ACT, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY
AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED

 

3.3.8.       Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares
issuable in connection with any exercise, the Company shall promptly deliver to the Holder the number of Warrant Shares that are
not disputed.

 

    	6

     

    

 

3.3.9       Beneficial
Ownership Limitation. A Holder shall not have the right to exercise any Warrants to the extent that after giving effect to
the issuance of Warrant Shares after exercise as set forth on the applicable Election to Purchase, such Holder or a person holding
through such Holder (together with such Holder’s or person’s Affiliates (as defined in Rule 405 under the Securities
Act), and any other persons acting as a group together with that Holder or person or any of that Holder’s or person’s
Affiliates), would beneficially own in excess of 4.99% (“Beneficial Ownership Limitation”) of the Company’s
Common Stock. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by a person shall
include the number of Warrant Shares that would be owned by that person issuable upon exercise of the Warrants with respect to
which such determination is being made, but shall exclude the number of shares of Common Stock (a) which would be issuable upon
exercise of the remaining, non-exercised Warrants beneficially owned by that person or any of its Affiliates and (b) underlying
any other securities of the Company held by such Holder or its Affiliates that are exercisable or convertible into Common Stock
and subject to a limitation on conversion or exercise that is analogous to the limitation contained in this Section 3.3.9. Except
as set forth in the preceding sentence, for purposes of this Section 3.3.9, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and
regulations promulgated thereunder, it being acknowledged by the Holder that neither the Warrant Agent nor the Company is representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder or beneficial owner
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 3.3.9 applies, the determination of whether a Warrant is exercisable and of the number of Warrants that are exercisable
shall be in the sole discretion of the Holder, and the submission of an Election to Purchase shall be deemed to be the Holder’s
determination of whether such Warrant is exercisable and of the number of Warrants that are exercisable, and neither the Warrant
Agent nor the Company shall have any obligation to verify or confirm the accuracy of such determination and neither of them shall
have any liability for any error made by the Holder or any other person. 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 3.3.9, in determining the number of outstanding shares of Common Stock, a Holder or other
person 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 Securities and Exchange 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 Company’s transfer agent setting forth the number of
shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of a person that represents that
it is or is acting on behalf of a Holder, the Company shall, within two (2) Trading Days, confirm orally or in writing or by e-mail
to that person the number of shares of Common Stock then outstanding. Upon delivery of a written notice to the Company, the Holder
may from time to time increase or decrease the Beneficial Ownership Limitation to any other percentage as specified in such notice,
provided that any increase in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st)
day after such notice is delivered to the Company and any such increase or decrease will apply only to the Holder and its Affiliates
and not to any other holder of Warrants. The provisions of this Section 3.3.9 shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 3.3.9 to correct this subsection (or any portion hereof) which may be
defective or inconsistent with the intended beneficial ownership limitation herein contained.

 

    	7

     

    

 

4.Adjustments.

 

4.1.Adjustment
upon Subdivisions or Combinations. If the Company at any time after the Issuance Date subdivides (by any stock split, stock
dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock into a greater
number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number
of Warrant Shares will be proportionately increased. If the Company at any time after the Issuance Date combines (by any stock
split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock
into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 4.1 shall become effective
at the close of business on the date the subdivision or combination becomes effective. The Company shall promptly notify Warrant
Agent of any such adjustment and give specific instructions to Warrant Agent with respect to any adjustments to the warrant register.
In the event any adjustment hereunder results in a fractional Warrant Share, a Holder shall be entitled to receive a whole Warrant
Share in lieu of any such fractional Warrant Share.

 

4.2.Adjustment
for Other Distributions. In the event the Company shall fix a record date for the making of a dividend or distribution to all
holders of Common Stock of any evidences of indebtedness or assets or subscription rights, options or warrants (excluding those
referred to in Section 4.1 or other dividends paid out of retained earnings), then in each such case the Holder will, upon the
exercise of Warrants, be entitled to receive, in addition to the number of Warrant Shares issuable thereupon, and without payment
of any additional consideration therefor, the amount of such dividend or distribution, as applicable, which such Holder would have
held on the date of such exercise had such Holder been the holder of record of such Warrant Shares as of the date on which holders
of Common Stock became entitled to receive such dividend or distribution. Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned above.

 

    	8

     

    

 

4.3.Reclassification,
Consolidation, Purchase, Combination, Sale or Conveyance. If, at any time while the Warrants are outstanding, (a) the Company,
directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another
person, (b) 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, (c) 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 (not including any Common Stock held by the other person or other persons making
or party to, or associated or affiliated with the other persons making, such purchase offer, tender offer or exchange offer), (d)
the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property, or (e) 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 whereby such other person 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 a Warrant, each 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 (without regard to any limitation in Section 3.3.9 on the exercise of the Warrants), the same amount
and kind of securities, cash or property, if any, 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 each Warrant is exercisable immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 3.3.9 on the exercise of the Warrants). 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 that such Holder receives upon any exercise of each Warrant following such Fundamental Transaction. The Company shall
cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”)
and for which shareholders received any equity securities of the Successor Entity, to assume in writing all of the obligations
of the Company under this Warrant Agreement in accordance with the provisions of this Section 4.3 pursuant to written agreements
and shall, upon the written request of such Holder, deliver to such Holder in exchange for the applicable Warrants created by this
Warrant Agreement a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to the Warrants which are exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity), if any, plus any Alternate Consideration, receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which the Warrants are exercisable immediately prior to such Fundamental Transaction, and with an
exercise price which applies the Exercise Price hereunder to such shares of capital stock, if any, plus any Alternate Consideration
(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 plus Alternative consideration after that Fundamental Transaction for the purpose of protecting
the economic value of such Warrant immediately prior to the consummation of such Fundamental Transaction). 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 Agreement and the Warrants 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 Agreement and the Warrants with the same effect as if such Successor Entity had been
named as the Company herein and therein. The Company shall instruct the Warrant Agent in writing to mail by first class mail, postage
prepaid, to each Holder, written notice of the execution of any such amendment, supplement or agreement with the Successor Entity.
Any supplemented or amended agreement entered into by the successor corporation or transferee shall provide for adjustments, which
shall be as nearly equivalent as may be practicable to the adjustments provided for in this Section 4.3. The Warrant Agent shall
have no duty, responsibility or obligation to determine the correctness of any provisions contained in such agreement or such notice,
including but not limited to any provisions relating either to the kind or amount of securities or other property receivable upon
exercise of warrants or with respect to the method employed and provided therein for any adjustments, and shall be entitled to
rely conclusively for all purposes upon the provisions contained in any such agreement. The provisions of this Section 4.3 shall
similarly apply to successive reclassifications, changes, consolidations, mergers, sales and conveyances of the kind described
above.

 

    	9

     

    

 

4.4.Other
Events. If any event occurs of the type contemplated by the provisions of Section 4.1 or 4.2 but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights, Adjustment Rights, phantom stock
rights or other rights with equity features to all holders of Common Stock for no consideration), then the Company's Board of Directors
will, at its discretion for the benefit of Holders and in good faith, make an adjustment in the Exercise Price and the number of
Warrant Shares or designate such additional consideration to be deemed issuable upon exercise of a Warrant, so as to protect the
rights of the registered Holder. No adjustment to the Exercise Price will be made pursuant to more than one sub-section of this
Section 4 in connection with a single issuance.

 

4.5.Notices
of Changes in Warrant. Upon every adjustment of the Exercise Price or the number of Warrant Shares issuable upon exercise of
a Warrant, the Company shall immediately give written notice thereof to the Warrant Agent, which notice shall state the Exercise
Price resulting from such adjustment and the increase or decrease, if any, in the number of Warrant Shares purchasable at such
price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such
calculation is based. Upon the occurrence of any event specified in Sections 4.1 or 4.2, then, in any such event, the Company shall
give written notice to each Holder, at the last address set forth for such holder in the Warrant Register, as of the record date
or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity
of such event. The Warrant Agent shall be entitled to rely conclusively on, and shall be fully protected in relying on, any certificate,
notice or instructions provided by the Company with respect to any adjustment of the Exercise Price or the number of shares issuable
upon exercise of a Warrant, or any related matter, and the Warrant Agent shall not be liable for any action taken, suffered or
omitted to be taken by it in accordance with any such certificate, notice or instructions or pursuant to this Warrant Agreement.
The Warrant Agent shall not be deemed to have knowledge of any such adjustment unless and until it shall have received written
notice thereof from the Company.

 

5.Restrictive
Legends; Fractional Warrants. In the event that a Warrant Certificate surrendered for transfer bears a restrictive legend,
the Warrant Agent shall not register that transfer until the Warrant Agent has received an opinion of counsel for the Company stating
that such transfer may be made and indicating whether the Warrants must also bear a restrictive legend upon that transfer. The
Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the transfer of or
delivery of a Warrant Certificate for a fraction of a Warrant.

 

    	10

     

    

 

6.Other
Provisions Relating to Rights of Holders of Warrants.

 

6.1.No
Rights as Shareholder. Except as otherwise specifically provided herein, a Holder, solely in its capacity as a holder of Warrants,
shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor
shall anything contained in this Warrant Agreement be construed to confer upon a Holder, solely in its capacity as the registered
holder of Warrants, any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to any corporate
action (whether any reorganization, issue of stock, reclassification of share capital, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights or rights to participate in new issues of shares, or otherwise,
prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of Warrants.

 

6.2.Reservation
of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of
Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant
Agreement.

 

7.Concerning
the Warrant Agent and Other Matters.

 

7.1.Any
instructions given to the Warrant Agent orally, as permitted by any provision of this Warrant Agreement, shall be confirmed in
writing by the Company as soon as practicable. The Warrant Agent shall not be liable or responsible and shall be fully authorized
and protected for acting, or failing to act, in accordance with any oral instructions which do not conform with the written confirmation
received in accordance with this Section 7.1.

 

7.2.(a)
Whether or not any Warrants are exercised, for the Warrant Agent’s services as agent for the Company hereunder, the Company
shall pay to the Warrant Agent such fees as may be separately agreed between the Company and Warrant Agent and the Warrant Agent’s
out of pocket expenses in connection with this Warrant Agreement, including, without limitation, the fees and expenses of the Warrant
Agent’s counsel. While the Warrant Agent endeavors to maintain out-of-pocket charges (both internal and external) at competitive
rates, these charges may not reflect actual out-of-pocket costs, and may include handling charges to cover internal processing
and use of the Warrant Agent’s billing systems.

 

(b) All amounts owed by
the Company to the Warrant Agent under this Warrant Agreement are due within 30 days of the invoice date. Delinquent payments are
subject to a late payment charge of one percent (1.0%) per month commencing 45 days from the invoice date. The Company agrees to
reimburse the Warrant Agent for any attorney’s fees and any other costs associated with collecting delinquent payments.

 

(c) No provision of this
Warrant Agreement shall require Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties under this Warrant Agreement or in the exercise of its rights.

 

    	11

     

    

 

7.3.As
agent for the Company hereunder the Warrant Agent: (a) shall have no duties or obligations other than those specifically set forth
herein or as may subsequently be agreed to in writing by the Warrant Agent and the Company; (b) shall be regarded as making no
representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of the Warrants or any Warrant
Shares; (c) shall not be obligated to take any legal action hereunder; if, however, the Warrant Agent determines to take any legal
action hereunder, and where the taking of such action might, in its judgment, subject or expose it to any expense or liability
it shall not be required to act unless it has been furnished with an indemnity reasonably satisfactory to it; (e) may rely on and
shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter,
telegram, telex, facsimile transmission or other document or security delivered to the Warrant Agent and believed by it to be genuine
and to have been signed by the proper party or parties; (f) shall not be liable or responsible for any recital or statement contained
in the Registration Statement or any other documents relating thereto; (g) shall not be liable or responsible for any failure on
the part of the Company to comply with any of its covenants and obligations relating to the Warrants, including without limitation
obligations under applicable securities laws; (h) may rely on and shall be fully authorized and protected in acting or failing
to act upon the written, telephonic or oral instructions with respect to any matter relating to its duties as Warrant Agent covered
by this Warrant Agreement (or supplementing or qualifying any such actions) of officers of the Company, and is hereby authorized
and directed to accept instructions with respect to the performance of its duties hereunder from the Company or counsel to the
Company, and may apply to the Company, for advice or instructions in connection with the Warrant Agent’s duties hereunder,
and the Warrant Agent shall not be liable for any delay in acting while waiting for those instructions; any applications by the
Warrant Agent for written instructions from the Company may, at the option of the Warrant Agent, set forth in writing any action
proposed to be taken or omitted by the Warrant Agent under this Warrant Agreement and the date on or after which such action shall
be taken or such omission shall be effective; the Warrant Agent shall not be liable for any action taken by, or omission of, the
Warrant Agent in accordance with a proposal included in such application on or after the date specified in such application (which
date shall not be less than five business days after the date such application is sent to the Company, unless the Company shall
have consented in writing to any earlier date) unless prior to taking any such action, the Warrant Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted; (i) may consult with counsel satisfactory
to the Warrant Agent, including its in-house counsel, and the advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance with the advice
of such counsel; (j) may perform any of its duties hereunder either directly or by or through nominees, correspondents, designees,
or subagents, and it shall not be liable or responsible for any misconduct or negligence on the part of any nominee, correspondent,
designee, or subagent appointed with reasonable care by it in connection with this Warrant Agreement; (k) is not authorized, and
shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person; and (l) shall not be required hereunder
to comply with the laws or regulations of any country other than the United States of America or any political subdivision thereof.

 

    	12

     

    

 

7.4.(a)
In the absence of gross negligence or willful or illegal misconduct on its part, the Warrant Agent shall not be liable for any
action taken, suffered, or omitted by it or for any error of judgment made by it in the performance of its duties under this Warrant
Agreement. Anything in this Warrant Agreement to the contrary notwithstanding, in no event shall Warrant Agent be liable for special,
indirect, incidental, consequential or punitive losses or damages of any kind whatsoever (including but not limited to lost profits),
even if the Warrant Agent has been advised of the possibility of such losses or damages and regardless of the form of action. Any
liability of the Warrant Agent will be limited in the aggregate to the amount of fees paid by the Company hereunder. The Warrant
Agent shall not be liable for any failures, delays or losses, arising directly or indirectly out of conditions beyond its reasonable
control including, but not limited to, acts of government, exchange or market ruling, suspension of trading, work stoppages or
labor disputes, fires, civil disobedience, riots, rebellions, storms, electrical or mechanical failure, computer hardware or software
failure, communications facilities failures including telephone failure, war, terrorism, insurrection, earthquakes, floods, acts
of God or similar occurrences.

 

(b) In the event any question
or dispute arises with respect to the proper interpretation of the Warrants or the Warrant Agent’s duties under this Warrant
Agreement or the rights of the Company or of any Holder, the Warrant Agent shall not be required to act and shall not be held liable
or responsible for its refusal to act until the question or dispute has been judicially settled (and, if appropriate, it may file
a suit in interpleader or for a declaratory judgment for such purpose) by final judgment rendered by a court of competent jurisdiction,
binding on all persons interested in the matter which is no longer subject to review or appeal, or settled by a written document
in form and substance satisfactory to Warrant Agent and executed by the Company and each such Holder. In addition, the Warrant
Agent may require for such purpose, but shall not be obligated to require, the execution of such written settlement by all the
Holders and all other persons that may have an interest in the settlement.

 

7.5.The
Company covenants to indemnify the Warrant Agent and hold it harmless from and against any loss, liability, claim or expense (“Loss”)
arising out of or in connection with the Warrant Agent’s duties under this Warrant Agreement, including the costs and expenses
of defending itself against any Loss, unless such Loss shall have been determined by a court of competent jurisdiction to be a
result of the Warrant Agent’s gross negligence or willful misconduct.

 

7.6.Unless
terminated earlier by the parties hereto, this Agreement shall terminate 90 days after the earlier of the Expiration Date (including
the acceleration thereof pursuant to Section 3.2) and the date on which no Warrants remain outstanding (the “Termination
Date”). On the business day following the Termination Date, the Agent shall deliver to the Company any entitlements,
if any, held by the Warrant Agent under this Warrant Agreement. The Agent’s right to be reimbursed for fees, charges and
out-of-pocket expenses as provided in this Section 7 shall survive the termination of this Warrant Agreement.

 

7.7.If
any provision of this Warrant Agreement shall be held illegal, invalid, or unenforceable by any court, this Warrant Agreement shall
be construed and enforced as if such provision had not been contained herein and shall be deemed an Agreement among the parties
to it to the full extent permitted by applicable law.

 

    	13

     

    

 

7.8.The
Company represents and warrants that: (a) it is duly incorporated and validly existing under the laws of its jurisdiction of incorporation;
(b) the offer and sale of the Warrants and the execution, delivery and performance of all transactions contemplated thereby (including
this Warrant Agreement) have been duly authorized by all necessary corporate action and will not result in a breach of or constitute
a default under the certificate of incorporation, bylaws or any similar document of the Company or any indenture, agreement or
instrument to which it is a party or is bound; (c) this Warrant Agreement has been duly executed and delivered by the Company and
constitutes the legal, valid, binding and enforceable obligation of the Company; (d) the Warrants will comply in all material respects
with all applicable requirements of law; and (e) to the best of its knowledge, there is no litigation pending or threatened as
of the date hereof in connection with the offering of the Warrants.

 

7.9.In
the event of inconsistency between this Warrant Agreement and the descriptions in the Registration Statement, as they may from
time to time be amended, the terms of this Warrant Agreement shall control.

 

7.10.Set
forth in Exhibit C hereto is a list of the names and specimen signatures of the persons authorized to act for the Company
under this Warrant Agreement (the “Authorized Representatives”). The Company shall, from time to time, certify
to you the names and signatures of any other persons authorized to act for the Company under this Warrant Agreement.

 

7.11.Except
as expressly set forth elsewhere in this Warrant Agreement, all notices, instructions and communications under this Agreement shall
be in writing, shall be effective upon receipt and shall be addressed, if to the Company, to its address set forth beneath its
signature to this Agreement, or, if to the Warrant Agent, to Corporate Stock Transfer, Inc., Attn: Carylyn Bell, 3200 Cherry Creek
South Drive, Suite 430, Denver, CO 80209, Fax: (303)282-5800, or to such other address of which a party hereto has notified the
other party.

 

7.12.(a)
This Warrant Agreement shall be governed by and construed in accordance with the laws of the State of New York. All actions and
proceedings relating to or arising from, directly or indirectly, this Warrant Agreement may be litigated in courts located within
the Borough of Manhattan in the City and State of New York. The Company hereby submits to the personal jurisdiction of such courts
and consents that any service of process may be made by certified or registered mail, return receipt requested, directed to the
Company at its address last specified for notices hereunder. Each of the parties hereto hereby waives the right to a trial by jury
in any action or proceeding arising out of or relating to this Warrant Agreement.

 

(b) This Warrant Agreement
shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. This Warrant Agreement may
not be assigned, or otherwise transferred, in whole or in part, by either party without the prior written consent of the other
party, which the other party will not unreasonably withhold, condition or delay; except that (i) consent is not required for an
assignment or delegation of duties by Warrant Agent to any affiliate of Warrant Agent and (ii) any reorganization, merger, consolidation,
sale of assets or other form of business combination by Warrant Agent or the Company shall not be deemed to constitute an assignment
of this Warrant Agreement.

 

    	14

     

    

 

(c) No provision of this
Warrant Agreement may be amended, modified or waived, except in a written document signed by both parties. The Company and the
Warrant Agent may amend or supplement this Warrant Agreement without the consent of any Holder for the purpose of (i) curing any
ambiguity in good faith and which cure shall not adversely affect the interests of the Holders, (ii) curing, correcting or supplementing
any defective provision contained herein, (iii) providing for the deposit of the Global Certificate with a custodian for The Depository
Trust Company (“DTC”), registered in the name of Cede & Co., a nominee of DTC, electronic settlement of
the Warrants by DTC and procedures and terms related thereto, or (iv) adding or changing any other provisions with respect to matters
or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties determine, in good
faith, shall not adversely affect the interest of the Holders. In the event that the Company and the Warrant Agent amend or supplement
this Agreement for one of the foregoing purposes, the Company shall do and perform or cause to be done and performed all such acts,
deeds and things, and to make, execute and deliver, or cause to be made, executed and delivered, all such agreements, undertakings,
documents, instruments or filings in the name or on behalf of the Company, as may be reasonably requested by the Warrant Agent
or as required by applicable laws or regulations to effectuate such amendment or modification. All other amendments and supplements
shall require the vote or written consent of Holders of at least 50.1% of the then outstanding Warrants, provided that adjustments
may be made to the Warrant terms and rights in accordance with Section 4 without the consent of the Holders as specifically stated
therein.

 

7.13.Payment
of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the
Warrant Agent in respect of the issuance or delivery of Warrant Shares upon the exercise of Warrants, but the Company may require
the Holders to pay any transfer taxes in respect of the Warrants or such shares. The Warrant Agent may refrain from registering
any transfer of Warrants or any delivery of any Warrant Shares unless or until the persons requesting the registration or issuance
shall have paid to the Warrant Agent for the account of the Company the amount of such tax or governmental charge, if any, or shall
have established to the reasonable satisfaction of the Company and the Warrant Agent that such tax or governmental charge, if any,
has been paid.

 

    	15

     

    

   

7.14.Resignation
of Warrant Agent.

 

7.14.1.Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company, or such
shorter period of time agreed to by the Company. The Company may terminate the services of the Warrant Agent, or any successor
Warrant Agent, after giving thirty (30) days’ notice in writing to the Warrant Agent or successor Warrant Agent, or such
shorter period of time as agreed. If the office of the Warrant Agent becomes vacant by resignation, termination or incapacity to
act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company
shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity
by the Warrant Agent, then the Warrant Agent or any Holder may apply to any court of competent jurisdiction for the appointment
of a successor Warrant Agent at the Company’s cost. Pending appointment of a successor to such Warrant Agent, either by the
Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. Any successor Warrant Agent (but
not including the initial Warrant Agent), whether appointed by the Company or by such court, shall be a person organized and existing
under the laws of any state of the United States of America, in good standing, and authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant
Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent
with like effect as if originally named as Warrant Agent hereunder, without any further act or deed, and except for executing and
delivering documents as provided in the sentence that follows, the predecessor Warrant Agent shall have no further duties, obligations,
responsibilities or liabilities hereunder, but shall be entitled to all rights that survive the termination of this Warrant Agreement
and the resignation or removal of the Warrant Agent, including but not limited to its right to indemnity hereunder. If for any
reason it becomes necessary or appropriate or at the request of the Company, the predecessor Warrant Agent shall execute and deliver,
at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights
of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge,
and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant
Agent all such authority, powers, rights, immunities, duties, and obligations.

 

7.14.2.Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such appointment.

 

7.14.3.Merger
or Consolidation of Warrant Agent. Any person into which the Warrant Agent may be merged or converted or with which it may
be consolidated or any person resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party
or any person succeeding to the shareowner services business of the Warrant Agent or any successor Warrant Agent shall be the successor
Warrant Agent under this Warrant Agreement, without any further act or deed. For purposes of this Warrant Agreement, “person”
shall mean any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust or other
entity, and shall include any successor (by merger or otherwise) thereof or thereto.

 

    	16

     

    

 

8.Miscellaneous
Provisions.

 

8.1.Persons
Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from
any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the parties hereto and the Holders any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant,
condition, stipulation, promise, or agreement hereof.

 

8.2.Examination
of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office of the
Warrant Agent designated for such purpose for inspection by any Holder. Prior to such inspection, the Warrant Agent may require
any such holder to provide reasonable evidence of its interest in the Warrants.

 

8.3.Counterparts.
This Warrant Agreement may be executed in any number of original, facsimile or electronic counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

8.4.Effect
of Headings. The Section headings herein are for convenience only and are not part of this Warrant Agreement and shall not
affect the interpretation thereof.

 

    	17

     

    

 

9.Certain
Definitions. As used herein, the following terms shall have the following meanings:

 

(a) “Adjustment
Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance,
sale or delivery (or deemed issuance, sale or delivery in accordance with Section 4) of Common Stock (other than rights of the
type described in Section 4.2 and 4.3 hereof) that could result in a decrease or increase in the net consideration received by
the Company in connection with, or with respect to, such securities (including, without limitation, any cash settlement rights,
cash adjustment or other similar rights).

 

(b) “Trading Day”
means any day on which the Common Stock is traded on the Trading Market, or, if the Trading Market is not the principal trading
market for the Common Stock, then on the principal securities exchange or securities market in the United States on which the Common
Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is are scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00 P.M., New York City time).

 

(c) “Trading Market”
means NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange.

 

[Signature Page to Follow]

 

    	18

     

    

 

IN WITNESS WHEREOF, this
Warrant Agent Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	 	AMERI HOLDINGS, INC.
	 	 
	 	By:	
        /s/ Brent Kelton

	 	Name:	
        Brent Kelton

	 	Title:	
        Chief Executive Officer

	 	 
	 	CORPORATE STOCK TRANSFER, INC.
	 	 
	 	By:	
        /s/ Carylyn Bell

	 	Name:	
        Carylyn Bell

	 	Title:	
        President

 

    	19

     

    

 

EXHIBIT A

 

[TO BE INCLUDED IN THE GLOBAL CERTIFICATE]

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR
 “BLUE SKY LAWS”, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION
THEREOF UNDER THE ACT, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT REQUIRED

 

 

 

AMERI HOLDINGS, INC.

WARRANT CERTIFICATE

NOT EXERCISABLE AFTER [__________], 2023

 

This certifies that the
person whose name and address appears below, or registered assigns, is the registered owner of the number of Warrants set forth
below. Each Warrant entitles its registered holder to purchase from Ameri Holdings, Inc., a Delaware corporation (the “Company”),
at any time prior to 5:00 P.M. (New York City time) on [_________], 2023 (or such other earlier Expiration Date as provided for
in the Warrant Agreement, defined below), one share of common stock, par value $0.01 per share, of the Company (each, a “Warrant
Share” and collectively, the “Warrant Shares”), at an exercise price of $1.50 per share, subject to
possible adjustments as provided in the Warrant Agreement (as defined below).

 

This Warrant Certificate,
with or without other Warrant Certificates, upon surrender at the designated office of the Warrant Agent, may be exchanged for
another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant
Certificates surrendered. A transfer of the Warrants evidenced hereby may be registered upon surrender of this Warrant Certificate
at the designated office of the Warrant Agent by the registered holder in person or by a duly authorized attorney, properly endorsed
or accompanied by proper instruments of transfer, a signature guarantee, and such other and further documentation as the Warrant
Agent may reasonably request and duly stamped as may be required by the laws of the State of New York and of the United States
of America.

 

The terms and conditions
of the Warrants and the rights and obligations of the holder of this Warrant Certificate are set forth in the Warrant Agent Agreement
dated as of [_________], 2018 (the “Warrant Agreement”) between the Company and Corporate Stock Transfer, Inc.
(the “Warrant Agent”). A copy of the Warrant Agreement is available for inspection during business hours at
the office of the Warrant Agent.

 

This Warrant Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by an authorized signatory of the Warrant
Agent.

 

    	20

     

    

 

WITNESS the facsimile signature
of a proper officer of the Company.

 

	 	AMERI HOLDINGS, INC.
	 	 
	 	By:	
   

	 	Name:	
   

	 	Title:	
   

 

Dated: _______________

 

Countersigned:

 

CORPORATE STOCK TRANSFER, INC.

 

By: ______________________________

Name: ____________________________

Title: _____________________________

 

	PLEASE DETACH HERE
	 

 

Certificate No.:_________ Number of Warrants:__________

 

WARRANT CUSIP NO.:

 

AMERI HOLDINGS, INC.

 

    	21

     

    

 

EXHIBIT B

 

[Form of Election to Purchase]

 

(To Be Executed Upon Exercise Of Warrants not
evidenced by a Global Certificate)

 

The undersigned hereby
irrevocably elects to exercise the right, represented by Warrants evidenced by this Warrant Certificate, to receive ____________
Warrant Shares and herewith tenders payment for such Warrant Shares to the order of _______________________, in the amount of $
_________ in accordance with the terms hereof.

 

The undersigned requests
that a certificate for such Warrant Shares be registered in the name of ___________________________, whose address is _____________________________
and that such certificate be delivered to _______________________________, whose address is _____________________________________.
If the number of Warrants being exercised hereby is less than all the Warrants evidenced by this Warrant Certificate, the undersigned
requests that a new Warrant Certificate representing the remaining unexercised Warrants be registered in the name of ___________________________,
whose address is _____________________________ and that such Warrant Certificate be delivered to ______________________________________
whose address is _________________________________.

 

 

	 	Signature,
	 	 
	Date:	 
	 	 
	 	[Signature Guarantee]

 

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

 

 

    	22

     

    

 

EXHIBIT C

 

AUTHORIZED REPRESENTATIVES

 

	
        Name
	
        Title
	
        Signature

	 	 	 
	Brent Kelton	Chief Executive Officer	 
	 	 	 
	Viraj Patel	Chief Financial Officer	 

 

    	23

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